vvEPA
               United States
               Environmental Protection
               Agency
            Office of
            Solid Waste and
            Emergency Response
DIRECTIVE NUMBER:  9477.01(83)

TITLE: Applicability of the Subpart H Financial Respon-
     '" sibility Requirements
                APPROVAL DATE:  1-5-83

                EFFECTIVE DATE:  ir5-83
ORIGINATING OFFICE:

0 FINAL

D DRAFT

 STATUS:     [  J
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            [  1
                                Office of Solid Waste
REFERENCE (other documents):
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                               B- Pending AA-OSWER approval
                               C- For review &/or comment
                               D- In development or circulating
                                         headquarters
  OS WER      OS WER      OS WER
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PARTS 264 AND. 265  SUBPART H - FINANCIAL RESPONSIBILITY
                                                DOC:  9477.01(83)
Key Words:

Regulations:

Subject:


Addressee:



Originator:

Source Doc:

Date:

Summary:
Financial Responsibility Requirements

40 CFR 265.140(c), RCRA Subpart H

Applicability of the Subpart H Financial Responsibility
Requirements

Mr. -Bradley E. Dillon, Associate General Counsel,  U.S.  Ecology,
Inc., 9200 Shelbyville Road, Suite 526 P.O.  Box 7246, Louisville,
Kentucky  40207

John H. Skinner,. Acting Director, Office of  Solid  Waste

#9477.01(83)

1-5-83
     Section 265.140(c) exempts State and Federal government from Subpart  H
regulations applying to owners and operators.   While  either  party may  fulfill
the requirements, the Agency may take action against  either  or both parties  in
the event of noncompliance.   The Agency interprets this  to mean that where one
party (the owner or operator) is an exempted party because it is a State or
Federal governmental unit, the other, private  sector  party need not comply with
the Subpart H requirements.   However, a State  or Federal agency owner  may
require the private sector operator by contractual agreement to demonstrate
financial responsibility.
Note;  The RCRA Subpart G regulations,  which stipulate the requirements for
performance of closure and post-closure care, do not contain any such  exempt!
                                                               on.

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                                                                          9^77.Oi (83)
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raents- for performance of-closure and  pest-closure care, do r.o-
contain any  such  ex-ar.ption.  T!:5 ex.-^pticn  applies only to tlv?
5ubp?,rt ." re-j'jlati'^ns,  which contain  the  requirements fcr provir.r-
financial renpcnnibi 1 ity for closure  a-.3  post-clcsure care ?.n-J
for liability  coverage.               •    •         - .
                                    J oh -ft. 3. . S *•: inner-.
                                    Acting  Ciractcr
                                    Office  cf  Solid
cc: Dick Procunier,  Region IX

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MEMORANDUM
SUBJECT:  April 20, 1.983, Memorandum- on Financial. Requirements      ^
        .•".-.-..•'.'                    • - •  '   .    :      -         ffl.
PROM:     John H. Skinner, Director               '•'•"." '•'.'-"•             »
          Office of Solid Waste  (WH-562)                            ^
                                          ........        ......   ,.

TO:       Harry Seraydarian, Director                               ^j
          Toxics and Waste Management Division, Region IX  (T-l)     \
     Your memorandum of April  20,  1983,  suggested  that  a
regulatory interpretation memorandum be  written  to clarify  the
exemption of States and the  Federal government from the RCRA
Subpart H, Financial Requirements  ($5264.140(c)  and 265.140(c)).
However, the interpretation  you  suggest  does  not appear to  be
consistent with the regulations.   Our  interpretation of the
regulations, confirmed by Office of General Counsel staff,  is
that set forth in my Jajniary 5,  lj>8_3_»  letter  sent  to Mr.  Bradley
E. Dillon at OS Ecology, a copy  of which is attached.   A copy
of that letter was also sent to  Richard  Procunier, the  Region
IX financial contact.

   •  Your suggestion that EPA  notify the various State  and
Federal agencies which may be  affected by this exemption may
be pursued at a later date.  However,  since the  owners  and
operators of hazardous waste facilities  are jointly and
severally liable for the other requirements of the Resource
Conservation and Recovery Act  (RCRA) regulations,  I am  not
sure that such a narrowly focused  letter would be  appropriate.
Rather, a letter broadly addressing the  potential  obligations
of the States and the Federal  government under the RCRA
regulations would be sent.

     You can be sure that as we make decisions on  regulatory
reporting to EPA Headquarters, thiu particular section  will be
k*»pt in mind.*  I am certain  that should^** £ir*»r  environmental
         tcaused or^exACJ**"	J *T-  tMa exemption,  we will make*
         "rvrr; to r&viz- tne regulations in a responsive  manner.


Attachment
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