Underground Storage Tank Program Srant Guidelines             State Compliance Reports OH
                                Government Underground Storage Tanks
       Grant Guidelines To States For Implementing
     The Provision Of The Energy Policy Act Of 2005
    Requiring States To Report On The Compliance Of
         Government Underground Storage Tanks
               U.S. Environmental Protection Agency
               Office Of Underground Storage Tanks
                    Washington, D.C.  20460
                      www. epa.gov/oust

                       EPA510-R-07-003
                          April 2007

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Underground Storage Tank Program Srant Guidelines                State Compliance Reports OH
                                     Government Underground Storage Tanks
                              Contents
Overview Of The Government Underground Storage Tanks
Compliance Report Grant Guidelines                                  1
     Why Is EPA Issuing These Guidelines?	1
     When Do These Guidelines Take Effect?	1
     To Whom Do These Guidelines Apply?	1

Requirements For The Government Underground Storage Tanks
Compliance Report                                                   2
     What Must A State Compliance Report On Government Underground Storage
       Tanks Include?	2
     What Definitions Are Used In These Guidelines?	3
     When And Where Must A State Submit Its Compliance Report On Government
       Underground Storage Tanks?	3
     How Will States Demonstrate Compliance With These Guidelines?	4
     How Must A State Ensure The Quality Of  Its Government Underground Storage
       Tanks Report Data?	4
     How Will EPA Enforce States' Compliance With The Requirements In These
       Guidelines?	4

For More Information On The Government Underground Storage
Tanks Compliance Report Grant Guidelines                           5
     Background About The Energy Policy Act Of 2005	5

Appendix - Inspection Requirements Of The Energy Policy Act: Determining Which
Underground Storage Tanks Have Undergone An Inspection Since December 22, 1998
(JuneS, 2006 EPA Memorandum) 	A-1

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Underground Storage Tank Program Srant Guidelines                  State Compliance Reports OH
                                         Government Underground Storage Tanks
       Overview Of The Government Underground Storage Tanks
                   Compliance Report Grant Guidelines


Why Is EPA Issuing These Guidelines?

      The U.S. Environmental Protection Agency (EPA), in consultation with states,
developed these grant guidelines to implement the provision in Section 9003(j)1 of the
Solid Waste Disposal Act, enacted by the Underground Storage Tank Compliance Act,
part of the Energy Policy Act of 2005 signed by President Bush on August 8, 2005.

      Subsection (b) of Section 1526 of the Energy Policy Act amends Subtitle I of the
Solid Waste Disposal Act by requiring states that receive Subtitle I funding to report on
the compliance status of their government-owned and/or -operated underground
storage tanks (UST). EPA must require each state that receives funding under Subtitle I
to submit a state compliance report on government underground storage tanks no later
than two years after the date of enactment of the Act.  States must submit their
compliance reports to the EPA Administrator. The Administrator will make the  reports
available to the public. The law specifies that each state report:

     1.  List the  location and owner of each underground storage tank regulated under
         Subtitle I and  owned or operated by the federal, state,  or local government in
         the state that, as of the date of submission of the report, is not in compliance
         with Section 9003;
     2.  Specify the date of the last inspection; and
     3.  Describe the actions that have been and will be taken to ensure compliance of
         the government underground storage tank listed.

When Do These Guidelines Take Effect?

      States must submit reports to EPA on or before August 8, 2007. This is a one-
time report required under Subsection (b) of Section 1526 of the Energy Policy Act.

To Whom Do These Guidelines Apply?

      Any state receiving Subtitle I funding must submit to EPA a state compliance
report on government underground storage tanks.
1 This provision, originally identified as 9003(i) in the Energy Policy Act, was changed to 9003(j) in Public Law 109-
168, January 10, 2006.

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Underground Storage Tank Program Srant Guidelines                  State Compliance Reports OH
                                           Government Underground Storage Tanks
                    Requirements For The Government
             Underground Storage Tanks Compliance Report
What Must A State Compliance Report On Government Underground Storage
Tanks Include?

      A state compliance report on government underground storage tanks must
provide the following information for each noncompliant federal-, state-, and local-
government underground storage tank in its jurisdiction:

      1.     The location and owner of each government underground storage tank2
            that, as of the date of submission of the report,3 is not in compliance with
            40 CFR Part 280 or with state requirements that are part of a state
            underground storage tank program EPA has approved under the state
            program approval (SPA) procedures.  At a minimum, states must include
            the owner's name; LIST identification number(s); facility address(es); and
            city, county, state, and zip code. The compliance determination should be
            based on the following areas:

            •   Notification (failure to notify)
            •   Corrosion protection
                   -  tanks and piping have appropriate corrosion protection
                   -  documentation available including testing, inspections, and
                     other records
            •   Overfill  prevention in place and operational
            •   Spill prevention in place and operational
            •   Tank and piping release detection
                   -  appropriate method and appropriate equipment or procedures in
                     place
                   -  documentation of proper monitoring and testing
            •   Reporting suspected releases
            •   Records of tank and piping repairs
            •   Secondary containment where required
            •   Financial responsibility
            •   Temporary closure

            If a state is reporting compliance based on a determination pursuant to
            requirements that are more stringent than Subtitle I, the state should
            identify and may list its more stringent requirements.
 If a state is unable to separate violations on a tank-by-tank basis, the state may list all tanks at the facility.
3 In order to provide each state agency adequate time to meet the August 8, 2007, reporting submittal deadline, ea
state should base its noncompliance determination cutoff on the date that its report was submitted for final review.

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Underground Storage Tank Program Srant Guidelines                  State Compliance Reports OH
                                          Government Underground Storage Tanks
      2.     The date of the last on-site inspection that was used to identify each
            noncompliant underground storage tank. Alternatively, for compliance
            monitoring activities that occurred prior to August 8, 2005, states may
            report the date of the last compliance monitoring activity as described in
            the June 8, 2006, EPA memorandum (see Appendix).

      3.     The actions that have been and will be taken to ensure the compliance of
            each noncompliant underground storage tank identified.  Note:  States are
            not expected to divulge enforcement confidential information in the report.

      States may submit their reports in whatever format they deem appropriate.

What Definitions Are Used In These Guidelines?

On-site inspection is defined in these guidelines as an inspection that is:
            •  On-site;
            •  Conducted by a state, local (when contracted or delegated by a state),
               EPA, or certified third-party inspector; and
            »  Sufficient to determine compliance with federal underground storage
               tank requirements in Subtitle I or state requirements that are part of a
               state underground storage tank program EPA has approved under the
               SPA procedures in 40 CFR Part 281.

Local government shall have the meaning given this term by applicable state law. The
term is generally intended to include: (1) Counties, municipalities, townships, separately
chartered and operated special districts (including local government public transit
systems and redevelopment authorities), and independent school districts authorized as
governmental bodies  by state charter or constitution; and (2) Special districts and
independent school districts established by counties,  municipalities, townships, and
other general purpose governments to provide essential services.

Operator is defined in 40 CFR 280.12 (http://www.epa.gov/oust/fedlaws/280_a.pdf).

Owner is defined in 40 CFR 280.12 (http://www.epa.gov/oust/fedlaws/280_a.pdf).

Underground Storage Tank (LIST) has the  same meaning as defined in 40 CFR
280.12, except it does not include those tanks identified in 40 CFR 280.10(b) and
280.10(c) as excluded or deferred (http://www.epa.gov/oust/fedlaws/280_a.pdf).

When And Where Must A  State Submit Its Compliance Report On Government
Underground Storage Tanks?

      Each state that receives Subtitle I funding must submit its government
underground storage  tanks compliance report to the EPA Administrator on or before
August 8, 2007.

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Underground Storage Tank Program Srant Guidelines                  State Compliance Reports OH
                                         Government Underground Storage Tanks
      The state report should be sent to the U.S. EPA Administrator. The mailing
address is: Administrator, Attn: State Government LIST Compliance Report Submittal,
U.S. Environmental Protection Agency, 1200 Pennsylvania Avenue, NW, MC 0001,
Washington, DC 20460-0001. An electronic submittal can be e-mailed to
Johnson.Stephen@epa.gov with the title "Submittal of State Government UST
Compliance Report" in the subject field.

How Will States Demonstrate Compliance With These Guidelines?

      After August 8, 2007, and before receiving future grant funding, each state must
provide one of the following to its EPA Regional Office:

     1.  If a state has submitted its compliance report to the EPA Administrator, nothing
        more needs to be submitted, or
     2.  For a state that has not yet submitted its compliance report, a document that
        describes the progress that the state has made so far, the plans for future
        efforts to complete the compliance report, and the date by which the state
        expects to meet the requirements.

How Must A State Ensure The Quality Of Its Government Underground Storage
Tanks Report Data?

      To the maximum extent practicable, states must provide accurate and complete
data to EPA. States must use quality assurance practices that will produce data of
quality adequate to meet project objectives and minimize reporting of inaccurate data.

How Will EPA Enforce States' Compliance With The Requirements In  These
Guidelines?

      As a matter of law, each state that receives funding under Subtitle I, which would
include a Leaking Underground Storage Tank (LUST) Cooperative Agreement, must
comply with certain underground storage tank requirements of Subtitle I. EPA
anticipates State and Tribal Assistance Grants (STAG) funds will be available for
inspection and other underground storage  tank compliance activities.  EPA will also
condition STAG grants with compliance with these guidelines. Absent a compelling
reason to the contrary, EPA expects to address noncompliance with these  STAG grant
conditions by utilizing  EPA's grant enforcement authorities under 40 CFR Part 31.43, as
necessary and appropriate.

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Underground Storage Tank Program Srant Guidelines                      State Compliance Reports OH
                                                  Government Underground Storage Tanks
    For More Information On The Government Underground Storage
                  Tanks Compliance Report Grant Guidelines

       Visit the EPA Office of Underground Storage Tanks Web site at www.epa.gov/oust or
call 703-603-9900.
                     Background About The Energy Policy Act Of 2005


On August 8, 2005, President Bush signed the Energy Policy Act of 2005.  Title XV, Subtitle B of this act (titled the
Underground Storage Tank Compliance Act) contains amendments to Subtitle I of the Solid Waste Disposal Act - the
original legislation that created the underground storage tank (LIST) program.  These amendments significantly affect
federal and state underground storage tank programs, will require major changes to the programs, and are aimed at
reducing underground storage tank releases to our environment.

The amendments focus on preventing releases. Among other things, they expand eligible uses of the Leaking
Underground Storage Tank (LUST) Trust Fund and include provisions regarding inspections, operator training,
delivery prohibition, secondary containment and financial responsibility, and cleanup of releases that contain
oxygenated fuel additives.

Some of these provisions require implementation by August 2006; others will require implementation in subsequent
years. To implement the  new law, EPA and states will work closely with tribes, other federal agencies, tank owners
and operators, and other  stakeholders to bring about the mandated changes affecting  underground storage tank
facilities.

To see the full text of this new legislation and for more information about EPA's work to implement the underground
storage tank provisions of the law, see: http://www.epa.qov/oust/fedlaws/nrq05 01.htm

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Underground Storage Tank Program Grant Guidelines
                                 State Compliance Reports on
                   Government Underground Storage Tanks
                                           Appendix
                            UNITED STATES ENViRONMlNTAL PROTECTION AGENCY
                                          WASHINGTON, D.C.
                                              JUN -8
                                                                                     OFFICE OF
                                                                                   SOLID WASTE AND
                                                                                 EMERGENCY RESPONSE
           MEMORANDUM
           SUBJECT:   Inspection Requirements OfThe Energy Policy Act; Determining Which
                        Underground Storage Tanks Have Undergone An Inspection Since December 22,
                        1998
           FROM:      Cliff Rothenstein, Director
                        Office of Underground Storage Tanks

           TO:         EPA Regional UST Division Directors
                        State UST Program Managers

                  1 am writing to share with you the Agency's determination on how to interpret a key
           provision of the Energy Policy Act, that is, the requirement to inspect all underground storage
           tanks (USTs) that have not undergone an inspection since December 22, 1998, To implement
           this provision, states  that receive Solid Waste Disposal Act (SWDA) Subtitle I funding must
           determine which USTs have undergone an inspection in the relevant time frame. As described
           more fully below, USTs that have undergone a compliance monitoring activity since December
           22, 1998, do not need to have an on-site inspection by August 8, 2007.

                  This document applies to USTs regulated under Subtitle I in operation on or before
           December 22, 1998.  As used in this document, USTs means those tanks that satisfy the
           definition of "UST* in 40 C.F.R. § 280.12, except for those tanks identified in 40 C.F.R, §§
           280.10(b) and 280.10(c) as excluded or deferred USTs.  This document does riot apply to USTs
           installed after December 22, 1998, because such USTs are not subject to the two-year inspection
           requirement.

           Energy Policy Act Inspection Requirements

                  The UST provisions in the Energy Policy Act of 2005 contain amendments to Subtitle I
           of SWDA.  Section 1523 of the Energy Policy Act amends section 9005 of SWDA by requiring
           periodic on-site inspections for USTs. In particular, under section 9005(c)(I), USTs that have
           not been inspected since December 22, 1998 must have an on-site inspection by August 8, 2007.
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Underground Storage Tank Program Srant Guidelines                         State Compliance Reports  OH
                                                          Government Underground Storage  Tanks
            Determining Which Underground Storage Tanks Have Undergone An Inspection Since
            December 22,1998

                  In section 9005(c)(l), Congress uses the term "inspection" in connection with
            determining whether an UST had already undergone an inspection between December 22, 1998
            and August 8, 2005. In contrast, however, further in section 9005(c)(l) and then in section
            9005(c)(2), Congress uses the term "on-site inspection" (emphasis added) in connection with
            subsequent inspections that EPA or states must conduct within, respectively, a 2-year or 3-year
            timetable.  When enacting section 9005(c)(l), Congress was aware that the states and EPA were
            using a variety of compliance monitoring activities to determine an owner/operator's compliance
            with  Subtitle I and its implementing regulations or a requirement or standard of a state program
            developed under Subtitle I.1 The use of the term "inspection" without the modifier "on-site" in
            section 9005(c)(l) reflects Congress' understanding of the variety of state and federal activities
            that had been used prior to the enactment of the Energy Policy Act to determine an
            owner/operator's compliance with the applicable UST regulations and is limited to the context of
            this provision in this legislation. By enacting section 9005(c)(2), Congress made  a deliberate
            choice to alter both the frequency of inspections, as well as the variety of existing activities used
            to determine an owner/operator's compliance, by legislating that EPA or a state conduct on-site
            inspections of all USTs every three years.

                  Therefore, solely for purposes of implementing the requirements of section 9005(c)(l),
            USTs that have not undergone a compliance monitoring activity since December 22, 1998, have
            not undergone an inspection under section 9005(c)(l) and thusjnust have an on-site inspection
            by August 8, 2007. For the limited purpose of determining which USTs have undergone a
            compliance monitoring activity since December 22, 1998, the state agency responsible for
            implementing the UST regulatory program may count any of the activities that the state, or an
            entity on behalf of the state, was using from December 22, 1998, through August 8, 2005, to
            reasonably monitor, evaluate, or determine an owner/operator's compliance with the federal UST
            regulations or the regulations of a state approved under section 9004.2 Any UST that had
            undergone such a state or federal activity from December 22,  1998, through August  8, 2005, is
                   1  For instance, the Government Accountability Office (GAO) issued a Report to
            Congress in May 2001 describing the breadth of UST inspection programs which included the
            use of tank owners' self-certification that their tanks were in compliance as one activity used to
            determine UST compliance. The Report also included inspections. EPA considers an inspection
            to be a visit to a facility or site for the purpose of gathering information, including direct
            observations, to determine compliance with a statutory requirement, regulation, or other legal
            obligation.
                   2  While not all such state activities meet EPA's definition of an inspection, based upon
            information before Congress prior to enacting section 9005(c)(l), see n.l, above, such activities
            were described to Congress as ways in which some states determine an owner/operator's
            compliance with the applicable UST regulations.
                                                         A-2

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                                                       Government  Underground Storage  Tanks
           not required to have an oa-site inspection by Aagust 8,2007, under section 900S(e)(l).

           Next Steps

                 This summer OUST expects to publish draft inspection grant guidelines to implement
           section 9005(c) of SWDA Subtitle I as amended by the Energy Policy Act of 2005.  These
           guidelines will incorporate the determination made in this memorandum, and detail what states
           must do to meet the on-site inspection requirements in 9005(c). If you have questions or
           comments about this memorandum or the inspection requirements contained in the Energy
           Policy Act, please contact Tim Smith of my office at smith.timr@epa.gQy or 703-603-7158.
           cc:    EPA Regional UST Branch Chiefs
                 EPA Regional UST Program Managers
                 OUST Managers
                 OUST Rejponal Liaisons
                                                        A-3

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