Wednesday
June 4, 1986
Part IV
Environmental

Protection Agency

40 CFR Part 280
Hazardous Waste; Interim Prohibition
Against Installation of Unprotected
Underground Storage Tanks; Interpretive
Rule

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   20418
Federal Register / Vol. 51. No.  107  /  Wednesday. June 4.  1986  / Rules and Regulations
   ENVIRONMENTAL PROTECTION
   AGENCY

   40 CFR Part 280
   [FRL 2928-9]

   Hazardous Waste; Interpretive Rule on
   the Interim Prohibition Against
   Installation of Unprotected
   Underground Storage Tanks

   AGENCY: Environmental Protection
  Agency.
  ACTION: Interpretive rule.

  SUMMARY: New Subtitle I of the
  Resource Conservation and Recovery
  Act (RCRA). as amended, provides for
  the regulation of underground storage
  tanks. Section 9003(g) of Subtitle I
  establishes interim requirements for
  underground storage tanks that are
  installed between May 7.1985 and the
  effective date of new tank standards
  required to be promulgated by EPA
  under section 9003(eJ. This notice sets
  forth EPA's interpretation of Section
  9003(g).
  FOR FURTHER INFORMATION CONTACT:
  Pamela Harris.  (202) 382-4814: or Steven
  Way. (202) 475-9328; or the RCRA/
  Superfund Hotline at (800)  424-9346
  (toll free or (202) 382-3000  in
  Washington. DC.
  SUPPLEMENTARY INFORMATION:

  I. Introduction: The Hazardous and Solid
  Waste Amendments of 1984
   On November 8.1984. the President
 signed into law  the Hazardous and Solid
 Waste Amendments of 1984. Public Law
 98-616. These Amendments extend and
 strengthen the provisions of the Solid
 Waste Disposal  Act of 1970 as amended
 by RCRA. A major portion of this new
 legislation. Subtitle I,provides for the
 development and implementation of a
 regulatory program for underground
 storage tanks used to contain regulated
 substances, which include petroleum
 and substances defined as hazardous
 substances under section 101(14) of the
 Comprehensive Environmental
 Response. Compensation and Liability
 Act (CERCLA).1
T,™ UnderHroui'd storage tank" is defined under
RCRA Subtitle I. section 9001(1) as any one or
combination of tanks (including underground pipes
connected thereto) which is used to contain an
accumulation of regulated substances, and the
volume of which (including the volume of the
underground pipes connected thereto] is 10 percent
or more beneath the surface of the ground. Such
term does not include any—
  (A) Farm or residential tank of 1.100 gallons or
less capacity used for storing motor fuel for
noncommercial purposes.
  (B) Tank used for storing heating oil for
consumptive use on the premises where stored.
                                Among the provisions of new Subtitle
                              I. section 9003 requires EPA to
                              prom-ajgate regulations pertaining to the
                              detection, prevention, and correction of
                              releases,from underground storage tanks
                              as may be necessary to  protect human
                              health and the environment.2 Section
                            •  9003(c) sets forth minimum requirements
                              that must be promulgated for all
                              underground storage tanks and section
                              9003(e) sets forth additional
                              requirements that must be promulgated
                              for new underground storage tanks.
                              Regulations under both sections 9003 (c)
                              and (e) for tanks containing petroleum
                              products are to be effective by May 8,
                              1987. With respect to tanks containing
                              hazardous substances, regulations under
                             section 9003(e) for new tanks are to be
                             effective by November 8,1987 and
                             regulations under section 9003(c) for
                             existing tanks are to be effective by
                             November 8,1988.
                               Until new tank standards promulgated
                             under section 9003(e) become effective,
                            section 9003(g)(l) establishes interim
                            requirements for any tank installed on
                            or after May 7,1985. That section
                            provides as follows:
                            • .  . [N]o person may install an underground
                            storage tank for the purpose of storing
                            regulated substances unless such tank
                            (whether of single or double walled
                            construction)—
                              (A) will prevent releases due to corrosion
                            or structural failure for the operational life of
                            the tank:
                              (C) Septic tank.                  •
                              (D) Pipeline facilitjujincluding gathering lines)
                            regulated under-
                              (i) The Natural Gas Pipeline Safety Act of 1968,
                            (49 U.S.C. App. 1671, et seq.).;
                              (ii) The Hazardous Liquid Pipeline Safety Act of
                            1979 (49 U.S.C. App. 2001. et seq.). or
                              (iii). Which is an intrastate pipeline facility
                            regulated under State laws comparable to the
                            provisions of law referred to in clause (i) or (ii) of
                           ""this subparagraph;     '       '
                              (E) Surface impoundment, pit. pond or lagoon,"
                              (F) Storm water or waste water collection system. :
                              (G) Flow-through process tank.      . .    ••  -
                              (H) Liquid trap or associated gathering lines
                            directly related to oil or gas production and
                            gathering operations, or              i
                              (I) Storage tank situated in an underground area
                            (such as a basement, cellar, mineworking. drift.
                            shaft or tunnel) if the storage tank is situated upon
                            or above the surface of the floor.
                             "Regulated substances" are defined under RCRA
                            Subtitle I. section 9001(2) as:
                             (A) Any substance defined in section 101(14) of
                            the Comprehensive  Environmental Response.
                            Compensation, and  Liability Act of 1980 (but not
                            including any substance regulated as a hazardous
                            waste under Subtitle C), and
                             (B) Petroleum, including crude oil or any fraction '
                            thereof which is .liquid at standard conditions of
                            temperature and pressure (80 degrees Fahrenheit
                            and 14.7 pounds per square inch absolute).
                             1 "Release" is defined under RCRA Subtitle I
                           section 9001(5) as any spilling, leaking, emitting.
                           discharging, escaping, leaching, or disposing from
                           an underground storage tank into ground water.
                           surface water or subturface soils.
     (B) is cathodically protected against
   corrosion, constructed of noncorrosive
   material, steel clad with a noncorrosive
   material, or designed in a manner to prevent
   the release or threatened release of any
   stored substance: and
     (C) the material used in the construction or
   lining of the tank is compatible with the,
   substance to be stored.

   '  As a limited exception, section
   9003(g)(2) allows the installation of
   tanks without corrosion protection in
   soil with a resistivity of 12,000 ohm-cm
   or more. Under that provision, soil tests
   must be conducted in accordance with
  American Society for Testing and
  Materials (ASTM) Standard G57-78.

  II. Purpose of the Interpretive Rule

    An interpretive rule is a statement
  issued by an agency to advise the public
  of the agency's construction of the
  statutes and rules that it administers. An
  interpretive rule simply construes the
  language of the statute qr regulation and
  does not impose additional obligations.
  Such rules are exempt from the notice
  and comment requirements of the
  Administrative Procedures Act, 5 U.S.C.
  553(b)(A) (1982). A substantive rale,
  such as the new tank standards
  authorized by section 9003(e), is a rule
  that is issued by an agency pursuant to
  statutory authority that implements the
 .statute. EPA intends this  notice to be an
  interpretive rule, not a substantive rule.
   Section 9003(g) establishes statutory
 requirements that took effect on May 7,
 1985 without prior action on the part of
 EPA. Several of the  requirements set
 forth under section 9003(g) are in the
 form of performance standards. EPA
 believes that the interpretive rule
 clarifies obligations  of the regulated
 community in complying with the
 interim prohibition. The rule also puts
• the regulated community on notice of
 the circumstances under which the
 Agency will proceed with enforcement
 action for noneompliance.

 III. Other Related EPA Activities

   On July 15,1985, EPA codified the
statutory language of section 9003(g) in
its regulations at 40 CFR -280.2.
   EPA is preparing a guidance
document that is available in draft form
in the Regional Offices. This document
discusses methods and technologies for
preventing releases from tanks due to
corrosion, structural  failure, or the
storage of materials that are
incompatible with the tanks'
construction or lining. This guidance will
assist tank users in determining
effective approaches to meet the
performance standards in nection
8003(g).

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            Federal Register /  Vol. 51. No.  107 / Wednesday, June 4,  1986 /  Rules and Regulations     20419
 IV. Legislative History of Section 9003 (g)
   Many of the storage tenk provisions
 now contained in Subtitle I, including
 section 9003(g), had then- origins in a bill
 introduced by Senator Dnrenberger on
 February 29,1984 as an amendment to
 the Safe Drinking Water Act, 130 Cong.
 Rec. S2026 (Febr. 29,1984]. Among these
 provisions was a requirement that EPA
 promulgate new tank standards within
 nine months of the date of enactment of
 the proposed amendments. Such
 standards were to include a prohibition
 on bare steel tanks. Id. at S2026. The
 provisions established an exception
 from the bare  steel tank ban "where the
 Administrator finds'there is minimal
 danger of corrosion." Id. In describing
 that provision, Senator Durenberger
 stated that "installation of common but
 less adequate tanks—those made of
 bare steel—would be prohibited unless
 the hydrogeology of the area is such that
 there is a minimal danger of corrosion."
 Id. at S2027.
  On July 25,1984, Senator Durenberger
offered a modified version of his storage
tank provisions as an amendment to
RCRA. 130 Cong. Rec. S9164 (July 25,
1984). This  amendment was passed by
the Senate. Id. at S9201. In this modified
version, the deadline for—new tank
standards was extended and the bare
steel ban was  converted into an interim
requirement that new tanks be installed
in accordance with enforced national
consensus code." This requirement was
to go into effect ninety days after the bill
was passed and remain effective until
 EPA promulgated new tank standards.
 Id. at S9163-64.
  On the House of Representatives side,
 amendments to RCRA were passed but
 did not contain provisions for the
 regulation of underground storage tanks.
 130 Cong. Rec. H9184 (November 3,
 1983). On August 10,1984, however, the
 House passed an underground storage
 tank bill as an amendment to CERCLA.
 130 Cong. Rec. H8938, H9027 (August 10,
 1984). The House bill contained an
 interim prohibition that provided as
 follows:
  Until the effective date of the regulations
 promulgated by the Administrator under
 subsection (a) and after 180 days after the
 date of the enactment of this title, no person
 may install or begin using an underground
 storage tank for the purpose of storing
 hazardous substances unless such tank, of
 either single or double wall construction, is
 cathodically protected against corrosion,
 constructed of noncorrosive material, steel
 clad with a noncorrosive material which
 would prevent corrosion for the operational
 life of the tank,  or contained in a manner
 designed to prevent the release or threatened
 release of any stored hazardous substance
 and unless in all cases the material used in
 the construction or lining of the tank is
 compatible with the substance to be stored.
 W. atH8939.     „  ,    •''•;•;  ,:
   Subsequently, a Conference
 Committee was formed to consider the
 RCRA amendments passed by the
 Senate and the House. Although the
. House CERCLA bill was not officially
 under consideration by the RCRA
 Conference Committee, the conferees
 adopted the language of that bill's
 interim prohibition with several
 significant modifications. 130 Cong. Rec.
 H11121 (Oct. 3,1984). These
 modifications included the requirement
 that every new tank prevent releases
 due  to "Structural failure" for its
 "operational life" (section 9003(g)(A))
 and  the exception from corrosion
 protection requirements for tanks
 located in soil with a resistivity of 12,000
 ohm/cm or more. The Conference
 Report described the  reported provision
 as follows:       •'-,-•     .' .  .  .
   Following enactment, the installation of •
 bare steel tanks, i.e. those which provide
 little or no protection against corrosion, will
 be prohibited until the Administrator
 promulgates regulations establishing the
 conditions for installation. Bare steel tanks
 may be installed (pending promulgation of
 EPA regulations) only where properly
 conducted soil tests show resistivity at 12,000
 ohms/cm or more. This provision replaces the
 provision in the Senate amendment which
 prohibits installation of bare steel tanks
 except in states that enforce a national
 consensus code.
 130 Cong. Rec. 11139 (Oct. 3, 1984).
   The bill, as reported by the
 Conference Committee, ultimately
 passed both houses and was signed by
 the President on November 8,1984.
   The legislative history of section
 9003(g) reveals that, as originally
 introduced in the Senate, the section
 was aimed at preventing the installation
 of steel tank  systems  without corrosion
 protection. Ultimately, however, section
 9003(g) wae expanded not only  to
 prohibit installation of bare steel tanks,
 but also to include requirements
 pertaining to the structural integrity of
 all newly installed tanks and the
 compatibility of the substances stored
 with the materials used in the
 construction and lining of such  tanks.
 V. EPA's Interpretation of Section
 9003(g)
    EPA reviewed the statutory language
 of section 9003(g) and its legislative
 history. Based upon this review, EPA's
 conclusions are  set forth below.
    Section 9003(g) (codified as 40 CFR
 280.2) establishes three requirements
 that must be satisfied by all
 underground storage tanks (including
underground pipes connected to the
tanks) installed between May 7,1985
and the effective date of new tank
standards promulgated under RCRA
section 9003(e), with the exception of
tanks qualifying for the exemption from
corrosion protection requirements under
section 9003(g)(2). There requirements
are: (1) That the tank and underground
piping be designed, constructed, and
installed to prevent releases due to
corrosion for the operational life of the
tank and the piping; (2) that the tank and
underground piping be designed,
constructed, and installed to prevent  ,
releases due to structural failure for the
operational life of the tank and the
piping; and (3) that the materials used in
the construction or lining of the tank and
its underground piping be compatible  ,
with the substance to be stored in the
tank.                      ;
  The first two of the above
requirements are established by section
9003(g)(l)(A), which provides that tanks
must "prevent releases due to corrosion
or structural failure for the operational
life of the tank." The third requirement
is established by section 9003(g)(l)(C).
In addition, section 9003(g)(l)(B) sets
forth minimum requirements for tank
design and construction. Under section
9003(g)(l)(B), tanks must be either
cathodically protected against corrosion,
constructed of noncorrosive material,
steel clad with a noncorrosive material
or designed in a manner to prevent the
release or threatened release of any
stored substance.
  In  addition to cathodically protected
tanks and tanks constructed or clad
with non-corrosive materials, section
9003(g)(l)(B) would permit the use of
other types of tanks and protective
measures if they are "designed in a '    :
manner to prevent the release or
threatened release of any stored
substance." Interested parties may
consult with EPA on a case-by-case
basis concerning the effectiveness of,
particular technoloeies for preventing
releases.
  There are  several examples of tanks
that do not satisfy the requirement of
section 9003(g)(l)(A) that they prevent
releases due to corrosion for the
operational life of the tank. A steel tank
whose only corrosion protection is a
coating of noncorrosive materials that is
applied in such a way'that'it will not
prevent .releases due to corrosion for the'
operational life of the tanx is not
adequate. Similarly, a cathodically
protected tank whose cathodic
protection is not designed to prevent
releases for the operational life of the

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 20420      Federal  Register / Vol. 51, No. 107 /Wednesday. June  4, 1986 / Rules and Regulations
 tank will not be deemed to have
 satisfied this requirement.
   Paint and asphalt coatings are not
 adequate for cathodic protection.
 Asphalt paints are soluble in a number
 of regulated substances that are
 normally stored in tanks, including
 solvents, and hydrocarbons, such as
 gasonne. Applications of both asphalt
 paints and lead paints are thin, easily
 damaged during installation and easily
 won^away during use. They do not
 provide a complete seal for the tank.  .
 such'paint or asphalt coatings do not
 provide corrosion resistance for the
 jperational life of the tank and,
 Jierefore, do not comply with the
 fnterim prohibition.
   Tanks that satisfy the requirement of
 section 9003(g)[l)(A) to prevent releases
 due to corrosion must still satisfy the
 requirements that they prevent releases
 due to "structural failure" and that the
 materials used in the construction of the
 tank be compatible with the substances
 to be stored. For example, a tank
 constructed of noncorrosive material
 that is subject to structural failure
 because of its design or installation
 would not satisfy the requirements of
•section 9003(g)(l). Similarly, a tank
 whose construction materials are not
 compatible with the product to be stored
 would not satisfy the requirements of
 section 9003(g)(l) because, although it
 satisfies the corrosion protection
 requirement of section 9003(g)(l)(A). it
 does not satisfy (he compatibility
 requirement of section 9003(g)(l)(C).
   Section 9003(g)(l) provides that "no
 person may install an underground
 storage tank" unless such tank satisfies
 the requirements of sections 9003(g)(l)
 (A). (B). and (C). EPA interprets the term
 "no person may install an underground
 storage tank" to encompass any persons
 responsible for having a tank installed.
 including'among others owners,
 operators and installers. EPA also
 interprets section 9003(g) as applying to
 all new installations, including
 installation of previously used tanks and
 to any new installation of underground
 piping associated with underground
 tanks subject to the prohibition. When
 the new installation is only piping, only
 the new piping would be subject to the
 standards in section 9003(g).  ,
   With respect to the exemption from
 corrosion protection requirements
 provided by section 9003(g)(2), EPA
 interprets this provision as permitting
 the installation of a tank without
 corrosion protection if a person, prior to
 installation, demonstrates by means of
 soil testing conducted in accordance
 with ASTM Standard G57-58 that the
 soil at the location where the tank is to
 be installed does not have a resistivity
 of less than 12.000 ohm-cm.
   A tank exempted from corrosion
 protection requirements under this
 section, however, must still satisfy the
 requirement that the tank be designed,
 constructed, and installed to prevent
 releases due to the structural failure of
 the tank and that the materials used in
 the construction or lining of the  tank be
 compatible with the substances to be
 stored in the tank. Thus, for example, a
 steel tank without any type of corrosion
 protection may be installed at a location
 where the soil continues to have a
 resistivity of 12,000 ohm-cm during the
 operational  life of the tank. However, if
 the tank is constructed or installed so
 that it suffers structural failure or  is not
 compatible with the stored product and
 releases its contents, the tank would not
 be in compliance with section 9003(g).
 VI. Summary of Supporting Analyses

 1. Executive Order 12291
  Executive Order 12291 [46 FK13193,
February 9.1981] requires that a
regulatory agency determine whether a
new regulation will be "major"
regulation and, if so, that a Regulatory
Impact Analysis be conducted. A major
rule is defined as regulation which is
likely to result in:
  (1) An annual effect on the economy
of $100 million or more;
  (2) A major increase in costs or prices
for consumers, individual industries.
Federal, State, and local government
agencies, or geographic regions;
   (3) Significant adverse effects on  ,
 competition, employment, investment,
 productivity, innovation, or on the
 ability of United States-based
 enterprises to compete with foreign-
 based enterprises in domestic or export
 markets.
   This rule does not have any of the
 impacts listed above. The Agency did
 conduct an economic impact analysis of
 the interim prohibition as part of the
 Hazardous Waste Management System;
 Final Codification Rule published in the
 Federal Register July 15,1985. The
 Regulatory Impact Analysis concludes
 that upper bound cost estimates for the
 Interim Prohibition are under $10 million
 per year.
   The interpretive rule has been
 submitted to the Office of Management
 and Budget (OMB) for review as
 required by Executive Order 12291.
 2. Regulatory Flexibility Act
   Pursuant to the Regulatory Flexibility
 Act, 5 U.S.C. 601 et sea., whenever an
 agency publishes a general notice of
 rulemaking for any proposed or final
 rule, it must prepare and make available
 for public comment a regulatory
 flexibility analysis that describes the .
 impact of the rule on small entities (i.e.,
 small businesses, small organizations,
 small governmental jurisdictions). The
 Administrator may certify, however,
 that the rule will not have a significant
 economic impact on a substantial
 number of small entities.    ,
   The Regulatory Impact Analysis for
 the Final Codification Rule also
 addresses the impact of the Interim
 Prohibition on small entities and
 concludes that the Interim Prohibition
 will not have a significant economic
 impact on a substantial number of small
 entities. This interpretive rule does not,
 therefore, require a regulatory flexibility
 analysis.
  Dated: May 21,1986.
 Lee M. Thomas,
Administrator.
 (FR Doc. 86-12002 Filed 6-3-66; 8:45 am]
BILLING CODE 656O-KM*

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