United States Office of Solid Waste and EPA 510-f-94-001
Environmental Protection Emergency Response February 1994
Agency Washington, DC 20460
5403W
Office of Underground Storage Tanks
Environmental
Fact Sheet
1998 Financial Responsibility
Compliance Deadline For Indian Tribes
That Own Underground Storage Tanks
On Indian Lands: Final Rule
Background Subtitle I of the Resource Conservation and Recovery Act (RCRA) requires
owners and operators of underground storage tanks (USTs) to show through
insurance coverage or other acceptable financial mechanisms that they can pay
for cleanups and third-party damages resulting from any leaks that may occur.
EPA issued final regulations on October 26,1988 that phased in the financial
responsibility requirements for USTs. The phased-in approach was designed to
balance the need to ensure financial capability for UST releases and the time
owners and operators need to obtain assurance mechanisms. The phased-in
approach set different compliance deadlines for four compliance groups. Group
1, consisting of petroleum marketers owning 1,000 or more USTs and non-
marketers with more than $20 million in tangible net worth, was required to
comply with the financial responsibility requirements as of January 1989. The
regulations required Group 2, consisting of petroleum marketers owning
between 100 to 999 USTs, to show financial responsibility in October 1989.
Group 3, consisting of petroleum marketers owning between 13 and 99 USTs,
was required to comply by April 26,1991. Group 4, consisting of marketers
with 1 to 12 USTs at more than one facility or fewer than 100 USTs at a single
facility and non-marketers with net worth of less than $20 million, was required
to comply by December 31,1993. On February 18,1993, EPA promulgated
four additional assurance mechanisms for local government entities (58 FR
902*0 to comply with the financial responsibility requirements; this rule
extended the compliance deadline for local governments to February 18,1994.
On August 10,1993 EPA proposed a rule that would allow certain members of
Group 4 (i.e., petroleum marketers, local governments, Indian tribes) to become
part of a new compliance group subject to a new financial responsibility compli-
ance deadline (December 31,1998) if they met certain federally determined
criteria.
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Action Taken
Discussion
Rationale For
This 1998
Compliance
Deadline
Contact
On February 18,1994, EPA finalized a rule to extend the financial responsibility
compliance deadline from February 18,1994 to December 31,1998 for feder-
ally recognized Indian tribes that own USTs on Indian lands if those tanks
comply with all current technical requirements (such as leak detection require-
ments).
EPA is not changing the financial responsibility deadline for petroleum
marketers and local governments. The compliance deadline for petroleum
marketers remains December 31,1993. The compliance deadline for local
governments remains February 18,1994.
This final rule allows federally recognized Indian tribes to become part of a new
compliance group subject to a new financial responsibility compliance deadline
of December 31,1998, if they meet a technical compliance criterion. The
technical compliance criterion has been included to protect human health and
the environment on Indian lands. This 1998 compliance deadline corresponds
with the date by which all underground storage tanks must be upgraded or
replaced.
Many individuals and companies rely on state assurance funds to comply with
the financial responsibility requirements. (As of January 1994,39 states have
funds that are considered financial assurance mechanisms.) Because of jurisdic-
tional issues, Indian tribes are unable to rely on these state assurance funds. In
addition, many tribes cannot buy private insurance because they cannot afford to
upgrade their underground storage tanks to meet insurers* underwriting criteria.
A 1998 compliance deadline will provide regulatory relief to Indian tribes
unable to obtain a financial assurance mechanism. The additional time will also
allow EF'A, the Bureau of Indian Affairs, and Indian tribes to explore options for
solving the root problem of lack of funding for past contamination on Indian
lands and further assist tribes with future technical requirements (such as up-
grading underground storage tanks).
For more information, contact EPA's RCRA/Superfund Hotline, Monday
through Friday, 8:30 am to 7:30 p.m. EST. The national toll-free number is
1 800 424-9346; for the hearing impaired, the number is TDD 1 800 553-7672.
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