[House Report 105-58]
[From the U.S. Government Publishing Office]
105th Congress Rept. 105-58
HOUSE OF REPRESENTATIVES
1st Session Part 1
_______________________________________________________________________
LEAKING UNDERGROUND STORAGE TANK TRUST FUND AMENDMENTS ACT OF 1997
_______
April 17, 1997.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______________________________________________________________________
Mr. Bliley, from the Committee on Commerce, submitted the following
R E P O R T
[To accompany H.R. 688]
[Including cost estimate of the Congressional Budget Office]
The Committee on Commerce, to whom was referred the bill
(H.R. 688) to amend the Solid Waste Disposal Act to require at
least 85 percent of funds appropriated to the Environmental
Protection Agency from the Leaking Underground Storage Tank
Trust Fund to be distributed to States for cooperative
agreements for undertaking corrective action and for
enforcement of subtitle I of such Act, having considered the
same, report favorably thereon without amendment and recommend
that the bill do pass.
CONTENTS
Page
Purpose and Summary.............................................. 2
Background and Need for Legislation.............................. 2
Hearings......................................................... 3
Committee Consideration.......................................... 3
Rollcall Votes................................................... 4
Committee Oversight Findings..................................... 4
Committee on Government Reform and Oversight..................... 4
New Budget Authority and Tax Expenditures........................ 4
Committee Cost Estimate.......................................... 4
Congressional Budget Office Estimate............................. 4
Federal Mandates Statement....................................... 6
Advisory Committee Statement..................................... 6
Constitutional Authority Statement............................... 6
Applicability to Legislative Branch.............................. 6
Committee Correspondence......................................... 7
Section-by-Section Analysis of the Legislation................... 9
Changes in Existing Law Made by the Bill, as Reported............ 11
Purpose and Summary
H.R. 688 strengthens the Underground Storage Tank program
by providing more flexibility to States in the use of Federal
funding, and helps States meet rising enforcement needs brought
about by the U.S. Environmental Protection Agency's (EPA) leak
detection and prevention regulations.
H.R. 688 amends Subtitle I of the Solid Waste Disposal Act
to require that the EPA give out at least 85 percent of its
annual appropriation from the Leaking Underground Storage Tank
Trust Fund to States under cooperative agreements, and
authorizes several new uses for that funding. Those uses
include enforcement of EPA's leak detection and prevention
regulations; administration of State financial assurance funds;
and payments into State financial assurance funds for
reimbursements to owners and operators of leaking tanks in
cases where the cost of corrective action would create a
financial hardship.
Background and Need for Legislation
The Underground Storage Tank (UST) program was enacted as
part of the Resource Conservation and Recovery Act (RCRA) in
1984, and has been codified as Subtitle I. The program requires
the EPA to set forth leak detection and prevention standards
for USTs and gives the agency authority to compel tank owners
and operators to take corrective action to clean up leaking
tanks or to close the tanks. It also gives the agency authority
to set financial assurance requirements for tank owners, i.e.,
requirements that they have insurance or some other form of
financial backing to pay for cleanup and third-party claims in
case of a leak.
In 1986, as part of the Superfund Amendments and
Reauthorization Act, Congress passed the Leaking Underground
Storage Tank (LUST) Trust Fund, paid for with a one-tenth of
one cent tax on motor fuel sales. The trust fund is to be used
by EPA or the States, in accordance with Federal law, to
enforce the UST corrective action requirements; to conduct
cleanups where no solvent responsible party can be found, where
there is a known but recalcitrant responsible party, or where a
responsible party does not have enough financial assurance to
pay for the entire cleanup; to take corrective action in cases
of emergency; and to take cost recovery actions against
parties.
In the wake of the Federal legislation, many States also
created trust funds, capitalized through State gas taxes, fees,
and other mechanisms, to pay for cleanups. The Federal statute
envisioned that States would create these financial assurance
trust funds to act as a dedicated source for tank cleanups, and
that those funds could serve as evidence that a tank owner or
operator had adequate funds to pay for a cleanup and/or third-
party claims. States spend about $1 billion per year from their
trust funds. However, in recent years, the claims against those
funds have risen dramatically, so that nationwide, annual
claims now exceed payments into the State funds by some $300
million. Numerous States now have claims against their funds
that exceed fund balances.
In accordance with statutory requirements, EPA issued leak
detection and prevention standards in 1988. The leak prevention
standards for USTs that were in the ground in 1988 do not
become effective until December 22, 1998. However, a survey
conducted last year by the Association of State and Territorial
Solid Waste Management Officials (ASTSWMO) of 24 States
revealed that only 26 percent of existing active tanks
currently meet the 1998 technical compliance standards. Both
ASTSWMO and the EPA testified this year that only about 30
percent of underground storage tanks currently meet the
standards. There are approximately 1.2 million operating tanks
nationwide, and 315,000 leaks that have been detected, in many
cases as a result of the upgrading process.1 This leaves
regulators facing a large bulge over the next two years, both
in terms of the number of sites where corrective action will be
required and the number of tanks for which upgrades will be
required. Although the Committee does not have data on the
issue, it is likely that many of those who have not yet
complied with the 1998 regulations are small owners and
operators whose ability to comply is questionable.
---------------------------------------------------------------------------
\1\ EPA Office of Underground Storage Tanks 1996 data.
---------------------------------------------------------------------------
The LUST tax has raised roughly $1.7 billion since 1987,
and just $655 million or 38 percent has been spent, leaving an
accumulated balance of more than $1 billion. The LUST tax
expired on December 31, 1995. The accumulation of a large
balance in the LUST Trust Fund has provided motivation to
industry members on whose product the tax is levied to seek
higher appropriation levels for the LUST program.
H.R. 688 is identical to H.R. 3391 which passed the House
in the 104th Congress under Suspension of the Rules by a voice
vote on September 25, 1996.
Hearings
The Subcommittee on Finance and Hazardous Materials held a
hearing on H.R. 688 on March 20, 1997. Testimony was received
from the following witnesses: Mr. Michael Shapiro, Acting
Deputy Assistant Administrator, Office of Solid Waste and
Emergency Response, U.S. Environmental Protection Agency; Ms.
Mary Jean Yon, President, Association of State and Territorial
Solid Waste Management Officials; Mr. Jeffrey L. Leiter,
Counsel, Collier, Shannon Rill & Scott, PLLC, representing the
Society of Independent Gasoline Marketers of America and the
National Association of Convenience Stores; Mr. Jeff Lykins,
Vice President, The Lykins Companies, on behalf of the Ohio
Petroleum Marketers Association and the Petroleum Marketers
Association of America; and Mr. Jim Daskal, Counsel, National
Coalition of Petroleum Retailers.
Committee Consideration
On March 20, 1997, the Subcommittee on Finance and
Hazardous Materials met in open markup session and approved
H.R. 688, the Leaking Underground Storage Tank Trust Fund
Amendments Act of 1997, for Full Committee consideration,
without amendment, by a voice vote.
On April 16, 1997, the Full Committee met in open markup
session and ordered H.R. 688 reported to the House, without
amendment, by a voice vote.
Rollcall Votes
Clause 2(l)(2)(B) of rule XI of the Rules of the House
requires the Committee to list the recorded votes on the motion
to report legislation and amendments thereto. There were no
recorded votes taken in connection with ordering H.R. 688
reported. A motion by Mr. Bliley to order H.R. 688 reported to
the House, without amendment, was agreed to by a voice vote, a
quorum being present.
Committee Oversight Findings
Pursuant to clause 2(l)(3)(A) of rule XI of the Rules of
the House of Representatives, the Committee held a legislative
hearing and made findings that are reflected in this report.
Committee on Government Reform and Oversight
Pursuant to clause 2(l)(3)(D) of rule XI of the Rules of
the House of Representatives, no oversight findings have been
submitted to the Committee by the Committee on Government
Reform and Oversight.
New Budget Authority and Tax Expenditures
In compliance with clause 2(l)(3)(B) of rule XI of the
Rules of the House of Representatives, the Committee states
that H.R. 688 would result in no new or increased budget
authority or tax expenditures or revenues.
Committee Cost Estimate
The Committee adopts as its own the cost estimate prepared
by the Director of the Congressional Budget Office pursuant to
section 403 of the Congressional Budget Act of 1974 with the
following clarification: The Committee notes that the
Congressional Budget Office finds that enactment of H.R. 688
could lead to an increase in discretionary spending because of
new uses established by the bill. The Committee notes that H.R.
688 does not require any new spending. New uses authorized by
the bill will compete with existing uses for any funds made
available through appropriations. Whether additional funds are
provided for the program continues to be a discretionary
function of the appropriations process.
Congressional Budget Office Estimate
Pursuant to clause 2(l)(3)(C) of rule XI of the Rules of
the House of Representatives, the following is the cost
estimate provided by the Congressional Budget Office pursuant
to section 403 of the Congressional Budget Act of 1974:
U.S. Congress,
Congressional Budget Office,
Washington, DC, April 17, 1997.
Hon. Tom Bliley,
Chairman, Committee on Commerce,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 688, the Leaking
Underground Storage Tank Trust Fund Amendments Act of 1997.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contacts are Kim Cawley
(for federal costs), and Pepper Santalucia (for the state and
local impact).
Sincerely,
June E. O'Neill, Director.
Enclosure.
H.R. 688--Leaking Underground Storage Tank Trust Fund Amendments Act of
1997
Summary: H.R. 688 would direct the Environment Protection
Agency (EPA) to distribute to states at least 85 percent of the
money appropriated to the agency from the Leaking Underground
Storage Tank (LUST) Trust Fund each fiscal year. The bill also
would allow two new uses for federal funds appropriated from
the LUST fund, which could lead to a significant increase in
discretionary spending. CBO has no basis for predicting whether
or to what extent the Congress might increase appropriations to
accommodate the possible new uses of balances in the LUST fund.
Enacting H.R. 688 would not affect direct spending or
receipts. Therefore, pay-as-you-go procedures would not apply
to the bill. The bill contains no private-sector or
intergovernmental mandates as defined in the Unfunded Mandates
Reform Act of 1995 and would not impose any costs on state,
local, or tribal governments.
Estimated cost to the Federal Government: Under this bill,
states could use LUST grant money to help fund state programs
that pay for the cost of cleaning up leaks from regulated
underground storage tanks, or to compensate tank owners for the
cost of conducting such cleanups. States also would be
authorized to use federal funds to enforce federal standards
for preventing leaks from underground storage tanks. The
federal cost to assist states with these efforts would depend
on the amount of appropriations provided. Because the gap
between existing resources and state cleanup needs is large,
there could be significant demand for federal assistance under
this bill.
In 1997, $60 million was appropriated from the LUST fund
for EPA's administration and oversight of the program, and for
funding cooperative agreements with state LUST programs.
(Outlays for these purposes in 1996 were $68 million.) Under
these cooperative agreements, most funds are spent on oversight
of cleanups conducted by private parties, although some funds
may be used to finance cleanups directly when no financially
viable private party exists. Most states operate state
assurance funds, separate from the federal LUST program, to
conduct cleanups and to reimburse owners and operators of
underground tanks for cleanup costs. The most recent data
collected by the states indicates that annual receipts to state
assurance funds are about $1.2 billion, and current balances in
these funds amount to about $1.3 billion. The assurance funds
face outstanding claims of $2.8 billion from tank owners and
operators seeking compensation for cleanups already conducted.
According to EPA, the average cleanup under the LUST program
costs $125,000 and there are over 170,000 underground tanks
currently undergoing or awaiting cleanup over the next decade.
Thus, current cleanup needs may exceed $20 billion, and the
demand for additional monies from the federal LUST fund could
total hundreds of millions of dollars annually for many years.
Estimated impact on State, local, and tribal governments:
By requiring EPA to distribute to the states at least 85
percent of the money appropriated to the agency from the LUST
fund each year, the bill would assure states of a specified
minimum proportion of available funds. (According to EPA,
states have received between 81 percent and 89 percent of the
funds appropriated since 1989.) The bill would also grant
states more flexibility in using those funds.
Previous CBO estimate: On September 20, 1996, CBO prepared
a cost estimate for H.R. 3391, a similar bill in the 104th
Congress. The estimated budgetary impact of H.R. 688, as
ordered reported by the Commerce Committee, is the same as that
projected last year for H.R. 3391.
Estimate prepared by: Federal Cost: Kim Cawley. Impact on
State, Local, and Tribal Governments: Pepper Santalucia.
Estimate approved by: Robert A. Sunshine, Deputy Assistant
Director for Budget Analysis.
Federal Mandates Statement
Pursuant to section 423 of the Unfunded Mandates Reform
Act, the Committee finds that the bill contains no private-
sector or intergovernmental mandates and agrees with the
Director of the Congressional Budget Office that the bill would
not impose any cost on State, local or tribal governments.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act are created by this
legislation.
Constitutional Authority Statement
Pursuant to clause 2(l)(4) of rule XI of the Rules of the
House of Representatives, the Committee finds that the
Constitutional authority for this legislation is provided in
Article I, section 8, clause 3, which grants Congress the power
to regulate commerce with foreign nations, among the several
States, and with the Indian tribes.
Applicability to Legislative Branch
The Committee finds that the legislation does not relate
to the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
Committee Correspondence
U.S. House of Representatives,
Committee on Ways and Means,
Washington, DC, April 17, 1997.
Hon. Thomas J. Bliley, Jr.,
Chairman, House Committee on Commerce, Rayburn House Office Building,
Washington, DC.
Dear Chairman Bliley: I understand that on Wednesday, April
16, 1997, the Committee on Commerce ordered reported H.R. 688,
the Leaking Underground Storage Tank Trust Fund Amendments of
1997. The bill, as introduced, was referred to the Committee on
Ways and Means. The legislation contains a conforming amendment
to Section 9508 of the Internal Revenue Code, which is
necessary to allow expenditures from the Leaking Underground
Storage Tank Trust Fund for purposes not included under present
law. As you know, the Trust Fund provisions, including
expenditures purposes and dedication of excise tax revenues,
are within the jurisdiction of the Committee on Ways and Means.
I have been informed that the House is due to consider this
bill on the Floor as early as next week. In order to expedite
the consideration of this legislation, and because the
provision in question is noncontroversial and was approved by
the House of Representatives in the 104th Congress (as part of
H.R. 3391), I do not believe that a markup by the Committee on
Ways and Means will be necessary. However, this is being done
with the understanding that the Committee will be treated
without prejudice in the future as to its jurisdictional
prerogatives on this or similar provisions, and it should not
be considered as precedent for consideration of matters of
jurisdictional interest to the Committee on Ways and Means in
the future.
This is also being done with the understanding that when
the House considers H.R. 688, an amendment will be incorporated
on the Floor to include clarifying statutory language which I
am transmitting with this letter. I am also transmitting an
accompanying technical explanation. Finally, I would appreciate
your response to this letter, confirming this understanding
with respect to H.R. 688, and would ask that all of these
materials be included in the Commerce Committee's report on
H.R. 688.
Thank you for your cooperation and assistance on this
matter. With best personal regards.
Sincerely,
Bill Archer, Chairman.
Amendment to H.R. 688
Page 2, strike line 6, and insert the following:
TITLE I--DISTRIBUTIONS FROM LEAKING UNDERGROUND STORAGE TANK TRUST FUND
SEC. 101. LEAKING UNDERGROUND STORAGE TANKS.
Page 5, strike lines 15 through 18.
Page 5, line 19, strike ``(c)'' and insert ``(b)''.
At the end of the bill, insert the following new title:
TITLE II--EXTENSION OF TRUST FUND PURPOSES
SEC. 201. EXTENSION OF TRUST FUND PURPOSES.
Paragraph (1) of section 9508(c) of the Internal Revenue
Code of 1986 (relating to expenditures) is amended by striking
``to carry out section 9003(h)'' and all that follows and
inserting ``to carry out--
``(A) section 9003(h) of the Solid Waste Disposal Act
(as in effect on the date of the enactment of the
Superfund Amendments and Reauthorization Act of 1986),
and
``(B) section 9004(f) of the Solid Waste Disposal Act
(as in effect on the date of the enactment of the
Leaking Underground Storage Tank Trust Fund Amendments
Act of 1997).''
Technical Explanation of Proposed Title II of H.R. 688
Proposed Title II of H.R. 688 amends the Leaking
Underground Storage Tank (``LUST'') Trust Fund provisions of
the Internal Revenue Code (the ``Code'') (sec. 9508) to permit
the expenditures authorized by Title I of the bill. The LUST
Trust Fund balance currently is approximately $1 billion. This
balance is considered adequate to fund both the existing and
new expenditure purposes of the LUST program at anticipated
levels for the foreseeable future.
The current LUST Trust Fund balance was derived primarily
from an excise tax of 0.1 cent per gallon imposed on motor
fuels (i.e., gasoline, diesel fuel, special motor fuels,
aviation fuel, and inland waterway barge fuels) that otherwise
are subject to tax under the Code. Imposition of the tax
terminated after December 31, 1995. H.R. 688 and the proposed
Title II do not reimpose the motor fuels excise tax.
Proposed title II of H.R. 688 authorizes expenditure from
the LUST Trust Fund for the expenditure purposes provided in
the law, as amended by Title I of the bill. Thus, for example,
in addition to the program expenditures authorized under
present law, LUST Trust Fund monies may be spent for certain
State program administrative costs associated with cleanups and
corrective actions, for providing cleanup assistance to tank
owners who would be put out of business without financial help,
and for enforcement of certain 1998 environmental compliance
standards. As provided under Title I of the bill, at least 85
percent of annual appropriations from the LUST Trust Fund must
be allocated to States for underground storage tank program
activities.
The provisions of the proposed Title II are effective on
the date of enactment.
------
House of Representatives,
Committee on Commerce,
Washington, DC, April 17, 1997.
Hon. Bill Archer,
Chairman, Committee on Ways and Means, House of Representatives,
Longworth House Office Building, Washington, DC.
Dear Mr. Chairman: Thank you for your letter regarding your
Committee's jurisdictional interest in H.R. 688, the Leaking
Underground Storage Tank Trust Fund Amendments of 1997.
I acknowledge your interest in this legislation and
appreciate your cooperation in moving the bill to the House
floor expeditiously. The Committee has reviewed your amendment
and agrees to work with your Committee to address your concerns
on the House Floor. I further agree that your decision to forgo
further action on the bill will not prejudice the Ways and
Means Committee with respect to its jurisdictional prerogatives
on this or similar provisions.
Thank you again for your cooperation.
Sincerely,
Tom Bliley, Chairman.
Section-by-Section Analysis of the Legislation
Section 1. Short Title
This section designates the short title of the Act as the
``Leaking Underground Storage Tank Trust Fund Amendments Act of
1997.''
Section 2. Leaking Underground Storage Tanks
This section amends section 9004 of the Solid Waste
Disposal Act by adding at the end a new subsection (f).
The new subsection requires the EPA Administrator to
distribute at least 85 percent of the funds appropriated to the
EPA from the Leaking Underground Storage Tank Trust Fund to the
States for reasonable costs under cooperative agreements
entered into with the Administrator for five purposes. Since
funding is distributed by the EPA through the cooperative
agreements, EPA must approve through the cooperative agreement
all State uses of Federal funds, as it does under existing law.
Over the years, EPA has given out an average of 86 percent
of its annual appropriation to the States. At most, EPA has
kept 19 percent of the annual appropriation for its own
expenses; the low has been 11 percent. Existing law provides
that EPA may use its portion to carry out its corrective action
authorities under the statute, but primarily EPA uses the
retained funding to oversee activities undertaken by the
States. By requiring that a specified percentage of annual
appropriations be distributed to the States, the legislation
helps assure that Federal funding will be used efficiently to
serve the purposes of the Act.
Although the amount of Federal funding historically
appropriated is small in comparison with the anticipated
nationwide cost of corrective action and compliance, the
expanded uses of the fund add flexibility for the States, in
cooperation with the EPA, to decide what is the best use within
each State for the Federal funding. Using the funds for
enforcement of the UST 1998 leak prevention standards, as well
as other technical requirements, will help prevent future
leaks, and, therefore, is a most effective use of the Federal
trust funds.
Pursuant to clause (f)(1)(A)(i), States may use the funds
to take actions under 9003(h)(7)(A). These are the existing
purposes for which funding may be used. Those purposes include
enforcement of corrective action requirements, corrective
actions taken by State and local governments at responsible
party sites, and cost recovery actions.
Pursuant to clause (f)(1)(A)(ii), States may use the funds
to cover necessary administrative expenses directly related to
the operation of State financial assurance programs under
9004(c)(1).
Pursuant to clause (f)(1)(A)(iii), States may use the funds
to enforce Federal, State or local tank leak detection,
prevention and other requirements through State and local
programs.
Pursuant to clause (f)(1)(A)(iv), States may continue to
use the funds for State and local corrective actions at
responsible party sites pursuant to section 9003(c)(4). This
provision clarifies the authority of the EPA to continue to
provide funding for States' administrative costs of the
cooperative agreements, including oversight of corrective
action performed by responsible parties.
Pursuant to clause (f)(1)(A)(v), States may use the funds
to take corrective actions and compensate parties for cleanups
of releases through 9004(c)(1) programs in cases where the
State determines that the financial resources of an owner or
operator, excluding resources provided by programs under
9004(c)(1), are not adequate to pay for the corrective action
without significantly impairing the ability of the owner or
operator to continue in business. A concern prompting this
provision is the possibility that the cost of corrective action
could lead to bankruptcy for operators in rural areas which
only have one gas station. Although this legislation does not
require the States to take into account the availability of
State resources provided by programs under 9004(c)(1) in
determining whether an owner or operator has adequate resources
to pay for a corrective action, it is the intent of this
Committee that the States will in the large majority of
instances rely upon available State resources.
While this bill allows for several new uses of the LUST
Trust Fund, the legislation does not prioritize among uses. The
Committee finds, consistent with testimony heard from EPA, the
States and industry representatives, that funding for existing
uses (including enforcement of corrective action requirements,
corrective actions taken by State and local governments at
responsible party sites, and cost recovery actions) most
effectively serves the needs for protection of human health and
the environment. The Committee also finds that there will be a
significant funding need in coming years for enforcement of the
tank leak detection and prevention requirements through State
and local programs. It is this Committee's desire that the
distribution of available Federal funding recognize the
importance of enforcement to protection of human health and the
environment.
The bill prohibits funding to be used for direct financial
assistance to tank owners and operators to meet the 1998 tank
standards.
The Committee notes that decisions about financial
assistance to owners and operators continue to rest primarily
with the States. Despite limitations on the use of Federal
funding, States retain discretion to determine what use to make
of State funding.
The bill also requires EPA to continue distributing funds
in accordance with the allocation process it currently uses,
which is based on the number of releases in each State, the
number of tanks in each State, and the percentage of the
population which depends on groundwater for drinking water and
other purposes. It requires the agency to consult with States
and representatives of owners and operators before making any
changes to the allocation process.
To ensure that money EPA grants to the States remains with
the States, the bill prohibits EPA from recovering funds from
owners and operators where those funds were provided to owners
and operators through the State financial assurance programs.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3 of rule XIII of the Rules of the
House of Representatives, changes in existing law made by the
bill, as reported, are shown as follows (existing law proposed
to be omitted is enclosed in black brackets, new matter is
printed in italic, existing law in which no change is proposed
is shown in roman):
SOLID WASTE DISPOSAL ACT
TITLE II--SOLID WASTE DISPOSAL
* * * * * * *
Subtitle I--Regulation of Underground Storage Tanks
definitions and exemptions
Sec. 9001. For the purposes of this subtitle--
(1) * * *
* * * * * * *
(3) The term ``owner'' means--
(A) in the case of an underground storage
tank in use on the date of enactment of the
Hazardous and Solid Waste Amendments of 1984,
or brought into use after that date, any person
who owns an underground storage tank used for
the storage, use, or dispensing of regulated
[sustances] substances, and
* * * * * * *
release detection, prevention, and correction regulations
Sec. 9003. (a) * * *
* * * * * * *
(f) Effective Dates.--(1) Regulations issued pursuant to
[subsection] subsections (c) and (d) of this section, and
standards issued pursuant to subsection (e) of this section,
for underground storage tanks containing regulated substances
defined in section 9001(2)(B) (petroleum, including crude oil
or any fraction thereof which is liquid at standard conditions
of temperature and pressure) shall be effective not later than
thirty months after the date of enactment of the Hazardous and
Solid Waste Amendments of 1984.
* * * * * * *
approval of state programs
Sec. 9004. (a) Elements of State Program.--Beginning 30
months after the date of enactment of the Hazardous and Solid
Waste Amendments of 1984, any State may, submit an underground
storage tank release detection, prevention, and correction
program for review and approval by the Administrator. The
program may cover tanks used to store regulated substances
referred to [in 9001(2) (A)] in section 9001(2)(A) or (B) or
both. A State program may be approved by the Administrator
under this section only if the State demonstrates that the
State program includes the following requirements and standards
and provides for adequate enforcement of compliance with such
requirements and standards--
(1) * * *
* * * * * * *
(f) Trust Fund Distribution to States.--
(1) In general.--(A) The Administrator shall
distribute to States at least 85 percent of the funds
appropriated to the Environmental Protection Agency
from the Leaking Underground Storage Tank Trust Fund
(in this subsection referred to as the ``Trust Fund'')
each fiscal year for the reasonable costs under
cooperative agreements entered into with the
Administrator for the following:
(i) States' actions under section
9003(h)(7)(A).
(ii) Necessary administrative expenses
directly related to corrective action and
compensation programs under section 9004(c)(1).
(iii) Enforcement of a State or local program
approved under this section or enforcement of
this subtitle or similar State or local
provisions by a State or local government.
(iv) State and local corrective actions
pursuant to regulations promulgated under
section 9003(c)(4).
(v) Corrective action and compensation
programs under section 9004(c)(1) for releases
from underground storage tanks regulated under
this subtitle in any instance, as determined by
the State, in which the financial resources of
an owner or operator, excluding resources
provided by programs under section 9004(c)(1),
are not adequate to pay for the cost of a
corrective action without significantly
impairing the ability of the owner or operator
to continue in business.
(B) Funds provided by the Administrator under
subparagraph (A) may not be used by States for purposes
of providing financial assistance to an owner or
operator in meeting the requirements respecting
underground storage tanks contained in section 280.21
of title 40 of the Code of Federal Regulations (as in
effect on the date of the enactment of this subsection)
or similar requirements in State programs approved
under this section or similar State or local
provisions.
(2) Allocation.--
(A) Process.--In the case of a State that the
Administrator has entered into a cooperative
agreement with under section 9003(h)(7)(A), the
Administrator shall distribute funds from the
Trust Fund to the State using the allocation
process developed by the Administrator for such
cooperative agreements.
(B) Revisions to process.--The Administrator
may revise such allocation process only after--
(i) consulting with State agencies
responsible for overseeing corrective
action for releases from underground
storage tanks and with representatives
of owners and operators; and
(ii) taking into consideration, at a
minimum, the total revenue received
from each State into the Trust Fund,
the number of confirmed releases from
leaking underground storage tanks in
each State, the number of notified
petroleum storage tanks in each State,
and the percent of the population of
each State using groundwater for any
beneficial purpose.
(3) Recipients.--Distributions from the Trust Fund
under this subsection shall be made directly to the
State agency entering into a cooperative agreement or
enforcing the State program.
(4) Cost recovery prohibition.--Funds provided to
States from the Trust Fund to owners or operators for
programs under section 9004(c)(1) for releases from
underground storage tanks are not subject to cost
recovery by the Administrator under section 9003(h)(6).
inspections, monitoring, testing, and corrective action
Sec. 9005. (a) Furnishing Information.--For the purposes of
developing or assisting in the development of any regulation,
conducting any [study taking] study, taking any corrective
action, or enforcing the provisions of this subtitle, any owner
or operator of an underground storage tank (or any tank subject
to study under section 9009 that is used for storing regulated
substances) shall, upon request of any officer, employee or
representative of the Environmental Protection Agency, duly
designated by the Administrator, or upon request of any duly
designated officer, employee, or representative of a State
acting pursuant to subsection (h)(7) of section 9003 or with an
approved program, furnish information relating to such tanks,
their associated equipment, their contents, conduct monitoring
or testing, permit such officer at all reasonable times to have
access to, and to copy all records relating to such tanks and
permit such officer to have access for corrective action. For
the purposes of developing or assisting in the development of
any regulation, conducting any study, taking corrective action,
or enforcing the provisions of this subtitle, such officers,
employees, or representatives are authorized--
(1) to enter at reasonable times any establishment or
other place where an underground storage tank is
located;
(2) to inspect and obtain samples from any person of
any regulated substances contained in such tank;
(3) to conduct monitoring or testing of the tanks,
associated equipment, contents, or surrounding soils,
air, surface water or ground water, and
(4) to take corrective action.
Each such inspection shall be commenced and completed with
reasonable promptness.
(b) Confidentiality.--(1) Any records, reports, or
information obtained from any persons under this section shall
be available to the public, except that upon a showing
satisfactory to the Administrator (or the State, as the case
may be) by any person that records, reports, or information, or
a particular part thereof, to which the Administrator (or the
State, as the case may be) or any officer, employee, or
representative thereof has access under this section if made
public, would divulge information entitled to protection under
section 1905 of title 18 of the United States Code, such
information or particular portion thereof shall be considered
confidential in accordance with the purposes of that section,
except that such record, report, document, or information may
be disclosed to other officers, employees, or authorized
representatives of the United States concerned with carrying
out this Act, or when [relevent] relevant in any proceeding
under this Act.
* * * * * * *
(4) Notwithstanding any limitation contained in this
section or any other provision of law, all information reported
to, or otherwise obtained, by the Administrator (or any
representative of the Administrator) under this Act shall be
made available, upon written request of any duly authorized
committee of the Congress, to such committee (including
records, reports, or information obtained by representatives of
the [Evironmental] Environmental Protection Agency).
* * * * * * *
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SECTION 9508 OF THE INTERNAL REVENUE CODE OF 1986
SEC. 9508. LEAKING UNDERGROUND STORAGE TANK TRUST FUND.
(a) Creation of Trust Fund.--
* * * * * * *
(c) Expenditures.--
(1) In general.--Except as provided in paragraph (2),
amounts in the Leaking Underground Storage Tank Trust
Fund shall be available, as provided in appropriation
Acts, only for purposes of making expenditures to carry
out section 9003(h) of the Solid Waste Disposal Act as
in effect on the date of the enactment of the Superfund
Amendments and Reauthorization Act of 1986 and to carry
out section 9004(f) of such Act.
* * * * * * *