In response to a lawsuit brought by enviros, the U.S. EPA yesterday rejected the San Francisco Bay area’s plan to clean up its smog-laden air. Local air-quality officials must now come up with a plan that satisfies the feds by next January, or risk losing more than $1 billion in federal highway dollars. Under the Clean Air Act, the Bay area had until last November to be in compliance with air-quality standards, but it missed the deadline and still violates them once or twice a year.