oEPA
United States
Environmental Protection
Agency
Office of
Solid Waste and
Emergency Response
DIRECTIVE NUMBER:
TITLE:
9630.5
FY-90 STATE UST PROGRAM GRANT GUIDANCE
APPROVAL DATE: April 1,
EFFECTIVE DATE: Aprii i, 1939
ORIGINATING OFFICE: Office of Underground Storage
m FINAL TankS (°UST)
: D DRAFT
STATUS:
REFERENCE (other documents):
OSWER OSWER OSWER
VE DIRECTIVE DIRECTIVE Dl
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vvEPA
United States
Environmental Protection
Agency
Office of
Solid Waste and
Emergency Response
DIRECTIVE NUMBER:
TITLE:
9630.5
FY-90 STATE UST PROGRAM GRANT GUIDANCE
APPROVAL DATE:
EFFECTIVE DATE:
April 1,
April 1, 1989
ORIGINATING OFFICE: Office of Underground Storage
B FINAL TankS (°UST)
D DRAFT
STATUS:
REFERENCE (other documents):
OSWER OSWER OSWER
'E DIRECTIVE DIRECTIVE D
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£LCD/\ Washington, DC 20460
wcrjn OSWER Directive Initiation Request ^30.5
2. Orlqlnator Information
Name of Contact Person Mail Code Office
Josh Bavlsnn ns - A?n OS!
3. Title
FY-90 State Program Grant Guidance
Telephone Code
JRR/niKT A7S-Q79S
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-90.
5. Keywords
underground storage tanks, grants
6a. Does This Directive Supersede Previous Directive(s)?
No i
b. Does It supplement previous uirecirve(s) >
. X No
7. Draft Level
A - Signed by AA/DAA B - Signed by Office Director
i
>( Yes What directive (number, title)
OSWER Directive 9630.4 - FY 89
__ . Ci-Qho TTCT Pv-dt-it- Pi in A r\\^f^f\
ouaue Uoi uiant buiaauce
Yes What directive (number, title)
C - For Review & Comment D - In Development
8. Document to be distributed to States by Headquarters?
Yes
x
No
This Request Meets OSWER Directives System Format Standards.
9. Signature of Lead Office Qjrectives Coordinatorx7
fa_ '^&ZZ&) <^r, St>ln*s^C
Beverly Thprjjas , OUST DIRECTIVES COORDINATOR
10. Name aod'Title'pf Approving Official
/ /->-=* ~ **-' /£>..-''Zs~r-^* —
Ronald Brand, Director OUST
Date
S/3/W
Date
^M?
EPA Form 1315-17 (Rev. 5-87) Previous editions are obsolete.
OSWER OSWER OSWER 0
VE DIRECTIVE DIRECTIVE DIRECTIVE
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MT-
UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON. D.C. 20460
OFFICE OF
SOLID WASTE AND EMERGENCY RESPONSE
OSWER DIRECTIVE 9630.5
MEMORANDUM
SUBJECT: FY 90 State UST Program Grant Guidance
y-f7 -> .'
FROM: Ron Brand, Director A1'^ /^-v^*—*—"
Office of Underground Storage Tanks ;
TO: Waste Management Division Directors, Regions I-III , V-IX
Water Management Division Directors, Regions IV and X
Attached is the FY 90 State UST Program Grant Guidance.
Overall the document has not changed very much from the one sent
to you for review in early March. Please note, however, that
"number of UST closures" has been added to the reporting
requirements listed under Grant Administration, Section IV. The
Federal regulations require owners and operators to provide the
States with advance notice of closure. Therefore, this
requirement will create a minimal reporting burden on the States.
This addition is the result of a comprehensive review of measures
and reporting requirements undertaken as part of an OUST project
to develop effective national program measures. The remainder of
the changes to the document are largely editorial.
The total amount of awards for State Program Grants for FY 90
has remained $9 million. Accordingly the proposed Regional
allocations will remain $162.5 thousand per State (plus Puerto
Rico and the District of Columbia) and $137.5 thousand for
remaining territories. The priority tasks (listed in priority
order) eligible for funding with FY 90 grants are: State program
development, program approval application, outreach efforts to
promote compliance, and compliance monitoring and enforcement.
They have not changed from the FY 89 guidance.
ATTACHMENT
cc: John Cannon, Acting Assistant Administrator, OSWER
OSWER Office Directors
Regional UST Program Managers
Harvey Pippin, Director, Grants Administration Division
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OSWER DIRECTIVE 9630.5
.April 1, 1989
FY 90 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 90. As a supplement to the grant
regulations under 40 CFR Sections 31 and 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
accordance with national guidance adapted to individual State
situations in order to stimulate and assist State program
development and implementation, monitor progress, and evaluate
grant fund expenditures.
Additional implementation guidance may be found in the "FY
1990 Agency Operating Guidance" (EPA, March 1989), the "FY 1989-
FY 1990 Transition Strategy for the Underground Storage Tank
Program" (EPA, April 1988, OSWER Directive 9610.5) and the
"Transition Tasks List" (EPA, January 1989, OSWER Directive
9610.5-1). 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. Many States have already
developed or are developing mechanisms; i.e. tank fees, gas
taxes, etc., to provide a consistent State funding base for their
prevention program.
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. Under the LUST Trust Fund
Cooperative Agreement Guidelines States are expected to make
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OSWER DIRECTIVE 9630.5
reasonable progress during FY 89 toward submitting a completed
application to EPA for approval of their UST prevention,
corrective action, and financial responsibility programs under
Section 9004 of RCRA. A State's success in making reasonable
progress toward submitting a complete application may be grounds
for increasing State access to the Trust Fund in FY 90. The only
solution to the problem of leaking tanks is for States to
implement prevention programs which, over time, will result in a
drastic reduction in the number of leaking tanks.
EPA recognizes that there is a period of transition
between the effective date of the Federal regulations and the
date State programs are authorized by EPA to operate in lieu of
the Federal program. Consistent with the overall strategy of
building State programs, States will be ask^ed'to implement as
much of the Federal UST program as possible, until such time as
State programs are authorized to operate the program.
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 facilitating the development of new State programs.
Over time EPA's program implementation focus will shift from
helping State's build their own capabilities and approving State
programs to working in tandem with States to improve performance
in specific program areas such as inspections, site assessments,
corrective action, and enforcement.
III. FY 90 NATIONAL PRIORITIES AND FUNDABLE TASKS
The following are fundable tasks for FY 90 grants, listed in
priority order. The priority tasks have not been changed from
the FY 89 UST Program Grant Guidance. EPA recognizes that
completion of these tasks is a process requiring a multi-year
effort. 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
exclusively be doing activities under, for example, Tasks 3 and 4
if it has not previously conducted activities under Tasks 1 or 2.
It is anticipated that much of the work under Task 1, State
program development, will be completed during FY 89 and the focus
of activities during FY 90 will be on the remaining three tasks.
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OSWER DIRECTIVE 9630.5
Priority Tasks;
Task 1: STATE PROGRAM DEVELOPMENT.
o Develop/revise State authorities and regulations for
the State UST program in order to meet Federal
standards.
o Investigate/develop mechanisms to fund the State
program.
o Apply for a State UST program grant for FY 91.
o Develop State authorities and procedures for an
adequate compliance monitoring and enforcement
program.
o Maintain an on-going tank notification program and
capability to report aggregate data derived from the
notification requirements to ERA cjn an annual basis.
o Secure technical assistance and'training for State
and local personnel for UST program implementation.
o Investigate/initiate development of a State fund to
help owners/operators meet financial responsibility
requirements.
Task 2: PROGRAM APPROVAL APPLICATION.
o Develop draft and/or final application for State
program approval, and submit to the EPA Regional
office.
Task 3: OUTREACH EFFORTS TO PROMOTE COMPLIANCE.
o Promote compliance with Federal and State
requirements through outreach efforts designed to
disseminate regulatory and technical information to
local governments and the regulated community.
o Suggested priority areas include information on
standards for new tanks, leak detection, corrective
action, and closure.
Task 4: COMPLIANCE MONITORING AND ENFORCEMENT.
o Identify, investigate and resolve violations of the
Federal regulations.
o Operate and enforce existing State UST programs.
o Suggested priority areas are new tank installations
and leak detection.
o Conduct transition tasks as specified in OSWER
Directive 9610.5-1.
IV. ALLOCATION OF STATE GRANT FUNDS
We expect the total FY 90 State grant allocation to be $9
million. (This figure is based on the President's budget
currently being considered by Congress.)
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OSWER DIRECTIVE 9630.5
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.
Regions have the ability to move funds among their States and
territories.
Regional Allotments for FY 90 State UST Program Grants
Region 1
Region 2
Region 3
Region 4
Region 5
Region 6
Region 7
Region 8
Region 9
Region 10
Total
$ 975K
625K
975K
1300K
975K
812. 5K
650K \
975K
1062. 5K
650K
$9000K
V. STATE MATCH
FY 1990 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: (1) measures UST-1 and
UST-3 of the quarterly SPMS report (2) an annual report of
aggregate tank data derived from the State notification data
base and (3) the number of UST closures reported (permanently
out-of-service without replacement).
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OSWER DIRECTIVE 9630.5
Designated State agencies may enter into intergovernmental
agreements with substate or local government agencies and thereby
provide funds for the performance of specified tasks (40 CFR
Section 31.36). 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 31).
Grant Awards
All available grant funds should be obligated to the States
in FY 90. FY 89 carryover funds will be awarded at the Regional
Administrator's discretion for high priority UiST 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
funding (see OMB circular A-87 and 40 CFR 31.22).
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 or to support a
Federal program conducted in the absence of an acceptable State
program. Funds may not be diverted from Subtitle I or D to
support Subtitle C activities, nor vice versa.
Grant Award Schedule for FY 90
April - June Develop draft FY 90 grant applications (Regions
and States).
July Regions begin grant negotiations with States.
August States submit final grant applications.
By Sept. 30 Regions have processed grant up to point of award.
October Regions begin 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;
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OSWER DIRECTIVE 9630.5
3. areas where EPA assistance could be helpful, including
a plan for action;
4. areas where EPA or other federal agencies are the cause
of problems which should be addressed by EPA.
Copies of all State program evaluation reports and end-of-
year grant reports for FY 90 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 and accurate fashion
the data needed for the quarterly activities report and the
Strategic Planning and Management System (S^MS) report for the
EPA UST program. Regions will need to relay t!his data to OUST/HQ
within 10 working days of the end of each Federal fiscal quarter
(QI, January 12; QII, April 13; QIII, July 13; QIV October 12).
Regions and States may develop reporting schedules that allow
them to meet these deadlines. Regions shall request that States
report annually on aggregate data from their notification data
systems.
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