oEPA
United States
Environmental Protection
Agency
Office of
Solid Waste and
Emergency Response
DIRECTIVE NUMBER: 9630-4
TITLE: FY-89 STATE UST PROGRAM GRANT GUIDANCE
APPROVAL DATE:
EFFECTIVE DATE:
April 1, 1988
April 1, 1988
ORIGINATING OFFICE: Office of Underground Storage
Tanks (OUST)
0 FINAL
D DRAFT
STATUS:
REFERENCE (other documents):
OSWER OSWER OSWER
VE DIRECTIVE DIRECTIVE Dl
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-. ^__ _ United States Environmental Protection Agency -1 Directive Number
C ERA Washington, DC 20460
\/cn-v OSWER Directive Initiation Request 963o.4
2. Originator Information
Name of Contact Person Mail Code Office
Jerry Parker WH-562A
Telephone Code
OSWER/OUST 475-7263
3. Title
FY-89 State UST Program Grant Guidance
4. Summary of Directive (include brief statement of purpose)
Provides the criteria and procedures for allocation of grant funds for state
underground storage tank (UST) program activities in FY-89.
5. Keywords
underground storage tanks, grants
6a. Does This Directive Supersede Previous Directive(s)?
No :
b. Does it Supplement Previous Uirective(s)'.'
X No
7. Draft Level
A - Signed by AA/DAA x B ~ Signed by Office Director
»C Yes What directive (number, title)
OSWER Directive 9630.3 - FY 88
t^^a^p TT9T (7ranf fluirlflnrp
Yes What directive (number, title)
C - For Review & Comment D - In Development
8. Document to be distributed to States by Headquarters?
X
Yes
No
This Request Meets OSWER Directives System Format Standards.
9. Signature of Lead Officespjrectives Coordinator.
(^^ c^, (Z-if^^ _
Betty"^/Arnold, Alterfriat^ Directives Coordinator, OUST
Date
4/8/88
e and™e of Approving jOfticial
Peter Hubbard. OSWER Directives Coordinator
Date
EPA Form 1315-17 (Rev. 5-87) Previous editions are obsolete.
OSWER OSWER OSWER O
VE DIRECTIVE DIRECTIVE DIRECTIVE
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UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON, D.C. 20460
APR -I
OFFICE OF
SOLID WASTE AND EMERGENCY RESPONSE
OSWER DIRECTIVE 9630.4
MEMORANDUM
SUBJECT: FY 89 State UST Program Grant Guidance
FROM:
TO:
Ron Brand, Director OUST
Waste Management Division Directors, Regions I- III,
V-IX
Water Management Division Directors, Regions IV and X
Attached is the FY 89 State UST Program Grant Guidance.
Overall, with a few exceptions, the document has not changed very
much from the one sent to you for review on February 29, 1988.
To summarize the major points of this document briefly:
The total amount of awards for the State Program Grants for
FY 89 has increased to 39 million -- up from $6.58 million in FY
88. The proposed regional allocations have been changed to
reflect the increased monies available. The proposed allocations
have increased from $125 thousand per state and territory in FY
88, to S162.5 thousand per state (plus Puerto Rico and the
District of Columbia) and to $137.5 thousand per remaining
territory in FY 89. In addition, the priority tasks (listed in
priority order) eligible for funding with FY 89 grants have been
changed to: state program development, program approval
application, outreach efforts to promote compliance, and
compliance monitoring and enforcement.
Attachment
cc : J Winston Porter, Assistant Administrator, OSWER
OSWER Office Directors
Regional UST Program Managers
Harvey Pippin, Director, Grants Administration Division
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9630.4
April 1, 1988
FY &9 STATE UST PROGRAM GRANT GUIDANCE
I. PURPOSE OF GRANT GUIDANCE
This guidance provides the criteria and procedures for
allocation of grant funds for state underground storage tank
(UST) program activities in FY 89. As a supplement to the grant
regulations under 40 CFR Sections 30, 33, & 35, this guidance is
to be used in developing and reviewing grant applications,
awarding grants, and monitoring grant activities. Regional
offices are responsible for negotiating grant agreements with
states in a manner to ensure application of national guidance to
individual state situations, progress in state program
development, and accountability for grant fund expenditures.
Additional implementation guidance may be found in the "FY
1989 Agency Operating Guidance" (EPA, March 1988) and the "FY
1989-FY 1990 Transition Strategy for the Underground Storage Tank
Program" (EPA, April 1988). Additional procedural guidance may
be found in the "Policy on Performance-Based Assistance" (EPA,
May 1985) .
II. PURPOSE OF STATE UST PROGRAM GRANTS
The purpose of the UST grant program is to assist states in
developing and implementing effective state-run UST regulatory
programs for the prevention, detection, and correction of leaking
underground tanks containing petroleum and hazardous substances.
It should be noted that Congress intended that federal grant
funds in the UST program be used as "seed" money to assist states
with the development of state programs. There are no plans for
substantial long-term federal funding of state-run programs, and
states are expected to develop their own funding mechanisms.
In addition to state program grants, EPA is developing a
variety of implementation tools for use by states, and is
providing a forum for states to share information and experience
concerning UST programs. EPA is also providing Leaking
Underground Storage Tanks (LUST) Trust Fund monies to states to
assist in cleaning up leaking tanks. After the federal
regulations become effective in early FY 89, access to the LUST
Trust Fund may be enhanced in future years for those states that
are making good progress toward developing regulatory programs
for the prevention of leaking tanks. Specifically, regions will
be looking for reasonable progress in submitting complete
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9630.4
funding (see OMB circular A-87 and 40 CFR 30.410).
When a state does not seek program approval, the Regional
Administrator may use funds not awarded or committed to that
state to supplement awards to other states dr to support a
federal program conducted in the absence of an acceptable state
program. Funds may not be diverted from Subtitle I to support
Subtitle C activities, nor vice versa.
Grant Award Schedule for FY 89
April - June Develop draft FY 89 grant applications (region or
state).
July Region begins grant negotiations with states.
August States submit final grant applications.
By Sept. 30 Region has processed grant up to point of award.
October Region begins to award grants.
Grant Oversight
In accordance with Agency policy, the region must conduct at
least one on-site review. Regions should plan a mid-year and/or
end-of-year review with each state, and forward to OUST/HQ a copy
of each state's performance evaluation final report. Regions may
arrange with states for more frequent reviews.
The comprehensive program review for each state should
discuss progress toward completion of funded tasks. Reviews
should identify:
1. areas of success including approaches that could be
shared with other states;
2. areas for improvement in the UST program;
3. areas where EPA assistance could be helpful, including
a plan for action.
Copies of all state program evaluation reports and end-of-
year grant reports for FY 89 should be sent to Joe Retzer,
Director, Implementation Division, OUST, within 30 days of
completion of the report.
State Reporting Requirements
All states should report in a timely
the data needed for the quarterly activit
Strategic Planning and Management System
EPA UST program. Regions will need to re
within 10 working days of the end of each
quarter. Regions and states may develop
allow them to meet these deadlines. Regi
states report annually on aggregate data
data systems.
and accurate fashion
ies report and the
(SPMS) report for the
lay this data to OUST/HQ
federal fiscal
reporting schedules that
ons shall request that
from their notification
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9630.4
applications for state program approval. The only solution to
the problem of leaking tanks is for states to implement
prevention programs, which over time will result in fewer leaking
tanks.
EPA recognizes that there will be a transition period
between the time—the federal regulations become effective and the
time most states attain state program approval. Consistent with
the overall strategy of building state programs, states will be
asked to implement as much of the federal UST program as
possible, until such time as state programs are authorized to
operate the program. Federal program grants are essential to
ensure the success of EPA's transition strategy.
The emphasis of EPA's program implementation is on the long
term, and the transition period will be characterized by the
continuing growth of a national UST program realized through the
building of state and local programs. It is EPA's objective to
focus federal resources and efforts on improving existing
programs and facil-itating the development of new state programs.
Over time EPA's program implementation focus will shift from
building state capability and approving state programs to
assisting states to improve the performance of state and local
programs.
III. FY 89 NATIONAL PRIORITIES AND FUNDABLE TASKS
The following are fundable tasks for FY 89 grants, listed in
priority order. For each task, specific outputs for individual
states will be determined by negotiations between the state and
the EPA regional office, taking into account the nature and
extent of program needs in that state and the national
priorities. (The activities listed after each priority task are
for illustration only. They are not required to be met in order
to accomplish the priority task. Required activities are those
actually negotiated between the region and the state.) States do
not have to conduct activities in all four fundable task
categories although that approach is encouraged. On the other
hand, a state should not be doing activities under Task 4 if it
fails to agree to activities under Tasks 1, 2, or 3.
Priority Tasks:
Task 1: STATE PROGRAM DEVELOPMENT. Develop/revise state
authorities and regulations for the state UST program
in order to meet federal standards. Investigate/develop
mechanisms to fund the state program. Apply for a
state UST program grant for FY 90. Develop state
authorities and procedures for an adequate compliance
monitoring and enforcement program. Maintain an on-
going tank notification program and capability to
report aggregate data derived from the notification
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9630.4
Task 2
Task 3
Task 4
requirements to EPA on an annual basis. Secure
technical assistance and training for state and local
personnel for UST program implementation.
Investigate/initiate development of a state fund to
help owners/operators meet financial responsibility
requi rements.
PROGRAM APPROVAL APPLICATION. Develop draft and/or
for state program approval, and
final application
submit to the EPA
regional office.
OUTREACH EFFORTS TO PROMOTE COMPLIANCE. Promote
compliance with federal and state requirements through
outreach efforts designed to disseminate regulatory and
technical information to local governments and the
regulated community. Suggested priority areas include
information on standards for new tanks, leak
detection, corrective action, and closure.
COMPLIANCE MONITORING AND ENFORCEMENT. Identify,
investigate and resolve violations of the federal
regulations. Operate and enforce existing state UST
programs. A suggested priority area is new tank
installations.
IV. ALLOCATION OF STATE GRANT FUNDS
We expect the total FY 89 state grant allocation to be $9
million. (This figure is based on the President's budget
currently being considered by Congress.)
The grant funds will be allocated to the regions at the rate
of $162.5 thousand per state (plus Puerto Rico and the District
of Columbia) and $137.5 thousand for the remaining territories.
The objective for this year is to increase the funding level for
all states and territories, in order to continue building
momentum in the development of state and territorial programs.
Regions have the ability to move funds among their states and
territories. However, regions should notify OUST/HQ when a state
has received less than 90% of its funding compared to last year's
grant.
Regional Allotments for FY 89 State UST Program Grants
Region 1
Region 2
Region 3
Region 4
Region 5
Region 6
Region 7
Region 8
$ 975K
625K
975K
1300K
975K
812.5K
650K
975K
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9630.4
Region 9 1062.5K
Region 10 650K
Total S9000K
V. STATE MATCH
FY 1989 state UST program grants will require a minimum 25%
grant match from the states. Of course, the state match can
include in-kind contributions.
VI. GRANT ADMINISTRATION
Grant Application
The state or region may initiate the grant process. A state
may submit a draft grant application to the region, or the region
may provide a draft work plan to its states for consideration.
Grant Negotiations.
Specific activities funded under each state's grant work
plan will be determined through negotiations with the region.
In accordance with the Agency's policy on performance-based
grants, each state will be expected to make specific task
commitments as part of its grant agreement. Commitments should •
reflect the priorities stated in this guidance. In addition, for
each major task funded, the grant agreement must identify the
resources (dollars and FTEs) associated with that task, together
with quarterly work commitments. Regions should negotiate with
states to provide the information needed for measures UST-1 and
UST-3 of the quarterly SPMS report, and an annual report of
aggregate tank data derived from the state notification data
base.
Designated state agencies may enter into intergovernmental
agreements with substate or local government agencies to provide
funds for the performance of specified tasks (40 CFR Section
33.260). The designated state agency retains the ultimate
responsibility for ensuring that such funds are properly expended
in accordance with federal requirements. Substate agencies that
intend to contract out for services must comply with applicable
procurement requirements (40 CFR Part 33).
Grant Awards
All available grant funds should be obligated to the states
in FY 89. FY 88 carryover funds will be awarded at the Regional
Administrator's discretion for high priority UST activities.
UST program grant funds may only be used for eligible
activities, i.e., those which are: (1) necessary to develop and
implement an approvable state UST program, and (2) allowable for
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