oEPA
United States
Environmental Protection
Agency
Off tee of
Solid Waste and
Emergency Response
DIRECTIVE NUMBER: 9477.00-4
U UTLc. Liability Requirements for Facilities Seeking
a RCPA Permit 'v
APPROVAL DATE: March 2> 1987
EFFECTIVE DATE: March 2> 1987
ORIGINATING OFFICE: office of solid waste
9 FINAL
D DRAFT
STATUS:
REFERENCE (other documents)
[ ] A- Pending OMB approval
[ ] B- Pending AA-OSWER approval
[ ] C- For review &/or comment
[ ] D- In development or circulating
headquarters
OSWER OSWER OSWER
VE DIRECTIVE DIRECTIVE Dl
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&EPA
Slat**
Environment*! Protection
Off ic« of
Solid Wi«ta *nd
Em*rg*ncv R*«pons*
DIRECTIVE NUMBER:
TITLE:
9477.00-4
Liability Requirements for Facilities Seeking
a RCRA Permit N
APPROVAL DATE: March 2j 1987
EFFECTIVE DATE: March 2, 1987
ORIGINATING OFFICE: ^ ice of
g FINAL
Waste
D DRAFT
STATUS:
REFERENCE (other documents):
[ ] A- Pending OMB approval
[ •] B- Pending AA-OSWER approval
[ ] C- For review &/or comment
[ ] D- In development or circulating
headquarters
O.QWPA?
DIRECTIVE
DIRECTIVE D
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4>EPA
Washington. DC 20460
OSWER Directive initiation Request
ir.;er.n,
9477.00-4
Originator Informafon
ame of Contact Person
lizabeth Cotsworth
Man Code - Branch
WH-563 Permits Branch
Telepnone-'Numoer
202-382-4746
ead Office
D OERR
E OSW.
Q OUST
CD OWPE
D AA-OSWER
Approved 'or Review
Signature of Office Director
Date
tie
Liability Requirements for Facilities Seeking a RCRA Permit
ummary of Directive • ,
Announces policy of allowing facilities which would otherwise qualify for a RCRA
permit additional time to secure insurance or alternative mechanisms for compliance
with 40CFR 264.147 liability coverage requirements. In the event liability coverage
cannot be demonstrated at the end of the extra time, the RCRA permit must be denied.
Also requests information on land disposal facilities which do not comply with
3 264.147 and which face permit denial solely due to this non-compliance
^ ' liability coverage; insurance; permits; FY 1987 SPMS; financial responsibilit
ype of Directive (Manual. Policy Directive. Announcement, etc.)
•
policy directive
' Status
I
I
D Draft
£D Final
D New
LJ Revision
Yes [j No
Do«» this Directive Supersede Previous Directiveis;? |_J Yes [^ No Does It Supplement Previous Directive(sP
"Yes" to Either Question. What Directive (number, title)
#9901 - Enforcement of Liability Requirements for Operating RCRA Treatment, Storage,
and Disposal Facilities _ : __ • _
eview Plan
© AA-QSWER
O OERR
SB OSW
D OUST
(El OWPE
LJ Regions
CD OECM
D OGC
D OPPE
D
Other (Specify!
his Request Meets OSWER Directives System Format
Signature of Lead Office Directives Officer
(Date
Signature of OSWER Directives Officer
[Date
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• OSv/ER DIRECTIVE WO. 9477.00-4
UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON, D.C. 20460
I 1987
OFFICE OF
SOLID WASTE AND EMERGENCY flESPONSE
MEMORANDUM
SUBJECT: Liability Requirements for Facilities Actively
Seeking a RCRA Permit -
/y - -i/ &-
A/Z^-^ fff^&T*
FROM: J. Winston 'Porter"
Assistant Administrator
TO: Waste Management Division Directors
Regions I - X.
As you know, before a treatment, storage, or disposal facility
is issued a RCRA permit, §270.14(b)(17 ) requires that the facility
demonstrate its ability to comply with the liability coverage
requirements of §264.147.
We ara aware that a number of facilities with Part B permit
applications currently undergoing review by SPA and the authorized
States do not have insurance coverage and cannot otherwise demon-
strate compliance with the §264.147 liability coverage require.i.nents.
The permit applicant's inability to demonstrate compliance with this
important financial responsibility requirement is grounds for permit
denial under §270.10(e)(5).
The constrained insurance .market which currently exists makes
the §264.147 requirement difficult to meet. We are especially con-
cerned about facilities that are actively seeking a permit and can
satisfactorily demonstrate compliance with the other Part 264
regulations. Some of these facilities face permit denial solely
because of the limited availability of insurance.
As we agreed at the October, 1986 Division Director's Meeting,
we believe it is appropriate to grant such facilities additional
time prior to final action on the permit, to make concerted efforts
to secure insurance or provide an alternative mechanism for liability
coverage. Six months is suggested as sufficient extra time; however,
facility-specific adjustments can be made in order to be consistent
with compliance orders issued pursuant to the October 29, 1986,
memorandum on "Enforcement of Liability Requirements for Operating
RCRA Treatment, Storage, and Disposal Facilities." Facilities that
are close to either a Notice of Intent to Deny (NOID) or permit
denial solely for failure to meet the §264.147 liability coverage
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OSVO POLICY DIRECTIVE NO.
4': •: . 00-4 3
-2-
requirements should be notified immediately that farther permit
processing will be delayed for the duration or this final opportunity
to demonstrate compliance with §264.147. Some of these facilities,
for instance, may be able to -take advantage of the recently promul-
gated corporate guarantee. Others may now find it easier to locate
an insurer. At the end of the additional period of time, if the
applicant still does not have an acceptable financial instrument
in place, the permit is- to be denied.
It should be understood that approving an additional few
months for facilities to provide the necessary demonstration of
compliance with our §264.147 liability coverage regulations
does not justify delaying any land disposal facility's permit
issuance/denial beyond the November 8, 1988 deadline.
To the extent facilities accorded this additional time are
approaching NOID or permit denial during the next few months, . I.
realize this policy may affect the Regions' abilities to meet . -
quarterly SPI4S targets. Regions should identify, on a.facility-
specific basis, the permitting targets for the second and third
quarters of FY 1987 that will be -missed due to the exercise of
this policy. The revised schedules for draft and/or final permit
determinations should also be provided. This information should
be submitted in writing to Susan Bromm, Act i .19- Director, Permits
and State Programs Division, by March-30, 19-37. The Office
of Solid Waste (OSW) will use this information in the quarterly
SPMS briefings for me and the Deputy Ad minis -ira tor'. In this way,
managers at both the Regional and national level will continue
to focus on the liability coverage issue and the utility of this
policy.
- In -addition to the near-term SPMS reporting information,
OSWER also needs to be able to accurately characterize the problems
that operating hazardous waste facilities are facing in regard to
insurance for liability coverage. VJhereas OSWER has previously
relied upon informally-gathered or anecdotal information, it has
become increasingly important for OSWER to have more facts about
the magnitude of the problem. I am, therefore, asking for
an overall list of the land disposal facilities in your Region
that are currently seeking an operating permit but are not in
compliance with §264.147. Among these, you should identify the
facilities which, in the judgment of the Region, will not
qualify for a RCRA permit due solely to their lack of liability
coverage. This information should be submitted to Susan Bromm
no later than March 17, 1987.
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OSl'O POLICY DIRECTIVE NO.
947-5 * 00--4 £
Please contact Matt Hale (FTS 30?-474G) or Slizabe t;-i Cotsworth
(FTS 3S2-4746) if there are questions regarding this jpolicy or the
i nf o rma t i G n b 2 i ng r eq ue s t ad f r oni e ach . of yo u .
cc: Susan B
Jim Michael
Kim Ogden
Susan .Vosher
Thad Juszczak
Jackie Tenusak
Sue oladek
Elizabeth. Cotsworth -1
^att Halo
Perrr.it Section Chiefs, Regions I-Y.
p.CRA Branch Cniefs, Regions I -K
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