United States
Environmental Protection
Agency
Office of
Solid Waste and
Emergency Response
&EPA
DIRECTIVE NUMBER:
TITLE:
DATE:
ORIGINATING OFFICE:
9630.10
State UST Program Grant Guidance
September 29, 1994
OSWER
OSWER
OSWER
OSWER
DIRECTIVE
DIRECTIVE
DIRECTIVE
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Table of Contents
TRANSMITTAL MEMO 1
I. PURPOSE OF GRANT GUIDANCE 2
II. PURPOSE OF STATE UST PROGRAM GRANTS 2
III. NATIONAL PRIORITIES, GOALS, AND FUND ABLE TASKS 3
A. National Priorities 3
B. Goals 3
1) Corrective Action Streamlining 3
2) Leak Detection Compliance and Enforcement 3
3) State Program Approval 3
4) Encouraging Early Compliance with 1998 Requirements 4
C. Fundable Tasks 4
1) Corrective Action Streamlining 4
2) Leak Detection Compliance and Enforcement 4
3) State Program Approval 5
4) Encouraging Early Compliance with 1998 Requirements 5
Other Tasks 5
IV. ALLOCATION OF STATE GRANT FUNDS 6
V. STATE MATCH 6
VI. GRANT ADMINISTRATION 7
Grant Application 7
Grant Negotiations 7
Grant Awards 7
Suggested Grant Award Schedule 8
OO
Grant Oversight 8
State Reporting Requirements and Schedule 8
ATTACHMENT 1: STARS REPORT 10
ATTACHMENT 2: LEAK DETECTION COMPLIANCE AND ENFORCEMENT REPORTING 11
OSWER Directive 9630.10
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SEP 29, 1994
OFFICE OF
SOLID WASTE AND EMERGENCY
RESPONSE
MEMORANDUM
SUBJECT: OSWER Directive 9630.10: Revised State UST Program Grant
Guidance
FROM: Lisa Lund, Acting Director
Office of Underground Storage Tanks
TO: UST Regional Program Managers
Thank you for your input and comments on the revised UST Program
Grant Guidance. Attached is a copy of the Guidance, which is OSWER
Directive 9630.10. The following areas were either added or modified
in the revised Guidance: Corrective Action, State Program Approval,
Environmental Justice, Comprehensive State Ground Water Protection
Program, 1998 Deadline, Regional Strategic Overview (RSO) Process,
and Leak Detection Compliance and Enforcement Measures. Other
editorial changes were also made to the document.
The UST Guidance is written to cover State grant negotiations in
FY95 and beyond, however, if the publication of the guidance falls
after your Region completes its FY95 grant negotiations, please use
the UST guidance for future State negotiations beginning in FY96. If
you have any questions or comments concerning the guidance, please
contact Josh Baylson at (703) 308-8887 or Any Haseltine at (703)
308—8898. Thank you again for your participation in revising the
State UST Program Grant Guidance.
Attachment
cc: OUST Management Team
Lisa Hunter
OUST Desk Officers
OSWER Directive 9630.10
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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. Instead of sending out guidance every year, this guidance will
serve for all future UST Grant awards, unless it is superseded by an amendment or another document. 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.
EPA 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 (if needed) and implementation, monitor progress, and evaluate grant fund expenditures. In
the interest of s g, the Regions are encouraged to award multi-year grants to the States by setting up two-
to three-year performance periods and amending budget periods annually.
Additional implementation guidance may be found in: 1) OSWER Directive 9650.13 "Streamlined
Implementation of UST Corrective Action Requirements;" 2) "UST/LUST Program Draft Strategic
Framework' (March 1993); 3) OSWER Directive 9610.5 'FY 1989-1990 Transition Strategy for the UST
Program;" and 4) OSWER Directive 9610.5-1 "Transition Tasks List."
II. PURPOSE OF STATE UST PROGRAM GRANTS
The purpose of the UST grant program is to assist States in implementing effective State-run UST
regulatory programs for the prevention, detection, and correction of leaking underground storage
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 and implementation of State programs. Many States have
already developed or are developing alternative or supplemental funding mechanisms (e.g., tank fees or
gas taxes) to provide a consistent funding base for their prevention programs.
In addition to State program grants, EPA has and continues to develop a variety of implementation tools
for use by States, and hosts an annual national forum for States to share information and experiences
concerning their UST programs. EPA is also providing Leaking Underground Storage Tanks (LUST)
Trust Fund monies to States to assist in the oversight and clean up of contamination caused by leaking
petroleum tanks. States that have not yet applied for State Program Approval are expected to make
reasonable progress 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
Region may decide to reward a State's success in receiving State Program Approval with funds from the
LUST Trust Fund.
The solution to the problem of leaking USTs is for States to implement prevention programs and to
streamline their cleanup programs which, over time, will result in a drastic reduction in the number of
leaking USTs. The emphasis of EPA's long-term implementation strategy is to develop strong State and
local programs. EPA focuses its resources and efforts on building and improving State programs while
providing flexibility in approaches and striving for constant improvement. EPA will work in tandem with
States to improve performance, streamline procedures, promote Total Quality Management and ensure,
OSWER Directive 9630.10
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environmental justice in specific program areas, such as enforcement, inspections, site assessments, and
corrective actions.
III. NATIONAL PRIORITIES, GOALS, AND FUNDABLE TASKS
A. National Priorities
EPA has identified four priority areas that are critical to successful implementation of the national UST
program. These priority areas highlight activities that States should conduct. The four priorities are:
Corrective Action Streamlining, Leak Detection Compliance and Enforcement, State Program Approval,
and early compliance with the 1998 Upgrading Deadline. The goals and fundable tasks for each of the
priority areas are discussed below.
The Office of Underground Storage Tanks (OUST) and EPA Regions will continue to hold annual
strategic planning discussions on the status of State programs, and progress in the priority areas. These
discussions will result in a document called the "regional strategic overview" (RSO). The RSO, along
with this guidance, are expected to provide the basis for grant negotiations with States.
B. Goals
1) Corrective Action Streamlining
To promote scientifically-sound, rapid, and cost-effective action at all UST sites requiring
corrective action through the use of streamlined processes, effective technologies, and improved
cross-program coordination.
Note: OUST recognizes that accomplishment of the streamlining corrective action goal will be addressed
primarily under the LUST Trust Fund cooperative agreements because of a greater level of resources
available from the fund. Corrective action quality improvements includes administrative and field
processes, promoting the use of alternative technologies to traditional pump and treat and excavation,
employing risk-based decision making in the corrective action process, and building strong state
assurance funds. While these activities are eligible activities under an UST grant, they will not be
addressed specifically in this guidance. Nevertheless, corrective action quality improvement activities are
in concert with prevention program activities and will augment the growth and effectiveness of State UST
prevention programs.
2) Leak Detection Compliance and Enforcement
To ensure owners and operators routinely and correctly monitor all regulated and piping for leaks
in accordance with the regulations.
3) State Program Approval
To encourage and ensure that all State programs develop sufficient authorities and enforcement
capabilities (to apply for approval from EPA) to operate in lieu of the Federal program.
OSWER Directive 9630.10
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4) Encouraging Early Compliance with 1998 Requirements
To encourage owners and operators to upgrade or replace their of the December 1998 deadline.
C. Fundable Tasks
EPA recognizes that completion of many of these tasks is a process requiring a multiyear effort. For each
task specific outputs for individual States will be decided by negotiations between the State and the EPA
Regional Office. Required activities are only those actually negotiated between an EPA Region and State.
Negotiated tasks will take into account the nature and extent of program needs in each State and the
national priorities. The following tasks are eligible uses of UST grant funds.
1) Corrective Action Streamlining
• develop adequate statutory and regulatory authorities
• establish cleanup policies and write clear guidance for owners and operators
• streamline corrective action procedures
• establish mechanisms to determine and process high, medium and low-risk sites
• consider environmental justice as a qualitative factor in developing priority ranking
systems for state-lead cleanup and enforcement strategies
• maintain data management system for notification information and STARS reporting
• conduct outreach (e.g., training/technical assistance) for State and local personnel,
consultants, owners and operators
• conduct formal and informal corrective action enforcement
• track the solvency of State funds (refer to document "Monitoring the Financial Soundness
of Approved State Assurance Funds," OSWER Directive 9650.14)
• identify need for streamlining and opportunities for non-traditional technologies and risk
based approaches
• consider the use of qualified minority contractors and consultants on state-lead cleanups
2) Leak Detection Compliance and Enforcement
• develop adequate authorities and procedures
• identify, investigate, and enforce State/Federal regulations
• establish a well-trained field presence
• develop and use alternative compliance mechanisms (e.g., field citations)
• establish and maintain a leak detection compliance tracking system
• maintain a data management system for notification information and STARS reporting
• develop and use an enforcement targeting scheme
• consider environmental justice in developing compliance/enforcement strategies
• conduct effective outreach (e.g., training and technical assistance) to local agencies and
owners and operators
• streamline enforcement procedures
OSWER Directive 9630.10
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3) State Program Approval
• implement transition tasks (for States that have not yet received State program approval)
• develop/revise State authorities and regulations to meet Federal standards
• establish enforcement capabilities and procedures
• develop draft State Program Approval application
• complete final State Program Approval application
• investigate additional mechanisms to fund State programs
4) Encouraging Early Compliance with 1998 Requirements
• Obtain statutory authority and develop and promulgate regulations necessary to monitor
and enforce compliance with State or Federal requirements (whichever are applicable) to
upgrade or replace UST systems by December 1998-including authority and regulations
under which substantial penalties can be imposed for failure to meet the deadline
• Design programs to monitor and enforce compliance with the upgrade/replace
requirements-including programs involving cooperation with State agencies responsible
for enforcing compliance with other health, environmental, and consumer protection
requirements applicable to UST owners and operators
• Conduct outreach activities (either alone or in collaboration with trade associations
serving UST owners and operators, equipment vendors, and other stakeholders) to ensure
that UST owners and operators are aware of the upgrade/replace requirements,, help them
understand what they must do and what options they have, and encourage them to come
into compliance as early as possible at all facilities, including those in environmental
justice communities
• Build or improve State capability to track compliance with the upgrade/replace
requirements, maintain complete and accurate data on compliance, and use the data to
periodically summarize and assess the status of compliance state-wide.
• Explore the potential value and feasibility of setting up State financial assistance
programs for upgrading or replacement of UST systems
• Design programs to ensure that UST systems that are not upgraded or replaced are
properly closed
Other Tasks
The national program supports efforts on the State level to integrate Comprehensive State Groundwater
Protection Program efforts with UST prevention program activities. The primary of this plan is to avoid
duplication of effort and identify common information needs.
The national program also supports State efforts to achieve environmental justice by developing outreach
materials and targeting programs to low income and minority communities.
OSWER Directive 9630.10
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IV. ALLOCATION OF STATE GRANT FUNDS
For planning purposes, assume that the total State grant allocations remain at $9 million a year. If this
changes in this year or in future years, a memorandum regarding Regional UST grant allocations will be
sent to the Regional Program Managers.
Assuming $ 9 million is the total allocation, 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
Virgin Islands and Pacific Trust Territories. Regions have the ability to move funds among their States
and territories. The following table illustrates how much each Region will be allotted based upon this
formula.
Regional Allotments for 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
812.51k
650k
975k
1062.5k
650k
$9000k
V. STATE MATCH
State UST program grants will continue to require a minimum of 25 % grant match from the States. Of
course, the State match may include in-kind contributions. States are encouraged to provide information
on the size of their commitment of total resources to the program, even when this exceeds 25%.
OSWER Directive 9630.10
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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 and resource commitments as part of its grant agreement. Commitments
should reflect the priorities stated in the RSO and in this guidance.
Designated State agencies may enter into intergovernmental agreements with sub-state or local
government agencies and thereby provide funds for the performance of specific (40 CFR Section 31.36).
The designated State agency retains the ultimate responsibility for ensuring that such funds are expended
properly, in accordance with Federal requirements. Sub-state agencies that intend to contract out for
services must comply with applicable procurement requirements (40 CFR Part 31), and should also
consider the use of qualified minority contractors and consultants.
Grant Awards
All available grant funds should be obligated to the State in the fiscal year in which the grant is awarded.
States should make every effort to use grant monies during the allotted period. Otherwise, carryover funds
may be awarded at the Regional Administrator's discretion, but only for the purposes specified in this
guidance.
UST program grant funds may be used only for eligible activities, e.g., those which are: (1) necessary to
develop and implement an approvable State UST program, and (2) activities which are allowable for
funding (see OMB circular A-87 and 31.22).
When a State does not seek program approval or make sufficient progress toward State 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 to be conducted in a state in which an
acceptable State program does not exist.
OSWER Directive 9630.10
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Suggested Grant Award Schedule
(may vary by Region)
As scheduled by the Region
April-June
July
August
By Sept. 30
October
Hold RSO discussions with HQ
Develop draft grant applications (Regions and
States)
Regions begin grant negotiations with States
States submit final grant applications
Regions have processed grant up to point of award
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 for more frequent reviews with States.
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;
4. areas where EPA or other Federal agencies are a barrier or create problems for the State program,
creating a need for EPA to address such areas.
Copies of all State program evaluation reports and end-of-year grant reports should be sent to Dana Tulis,
Chief, Operations Branch, OUST, within 30 days of completion of the report.
State Reporting Requirements and Schedule
States must report required program activities to the Regions (see Attachments 1 & 2). In addition, all
states are to report in a timely and accurate fashion the data needed for quarterly activities reports and the
STARS reports for the EPA UST program. Regions will need to relay this data to OUST/HQ within 10
working days of the end of each fiscal quarter. Regions and States must develop reporting schedules that
allow them to meet these deadlines. Regions shall request that States add annual data concerning total
number of petroleum tanks and number of hazardous substance tanks (existing and closed) to the
quarterly activities report. States only need to report the information concerning the number of tanks (G-
4) once a year on the second quarter report.
OUST is requesting that Regions validate that States are updating their UST database information,
including the total number of federally-regulated tanks and the number of hazardous substance USTs,
OSWER Directive 9630.10
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prior to submittal of STARS data. Please refer to February 19, 1993 memorandum: "Follow-up to the IG
Audit on the National Tank Inventory" for further details.
OSWER Directive 9630.10
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ATTACHMENT 1: UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
OFFICE OF UNDERGROUND STORAGE TANKS STARS REPORT
State
Region
Quarter
OUST
G-l
G-2
G-4
TF-1
TF-2
TF-3
TF-3
TF-3
TF-5
TF-5
TF-5
TF-5
STARS
UST-
1A
UST-
1B
UST-
2A1
UST-
2A2
UST-
2A3
UST-
2C1
UST-
2C2
UST-
2C3
DESCRIPTION
States submitting
complete applications
for State program
approval.
Number of states with
authorized programs.
Number of closed
tanks.
Number of reported
confirmed releases.
Number of emergency
responses taken.
LUST cleanups
initiated: petroleum,
Responsible Party
lead.
LUST cleanups
initiated: petroleum,
State lead with TF
money.
LUST cleanups
initiated: petroleum,
State lead with State
money.
Site cleanups
completed: petroleum,
Responsible party
lead.
Site cleanups
completed: petroleum,
State lead with TF
money.
Site cleanups
completed: petroleum,
State lead with State
money.
Sites with enforcement
actions.
CUMULATIVE
LAST
QUARTER
ACTIONS
THIS
QUARTER
CORRECTIONS
TO PREVIOUS
DATA
CUMULATIVE
TOTAL
OSWER Directive 9630.10
10
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ATTACHMENT 2: U.S. ENVIRONMENTAL PROTECTION AGENCY OFFICE OF
UNDERGROUND STORAGE TANKS LEAK DETECTION COMPLIANCE AND
ENFORCEMENT REPORTING
Fiscal Quarter
1234
Region
State
MEASURES
Number of Leak Detection
Inspections
Number of Informal Enforcement
Cases
Number of Formal Enforcement
Cases
Corrected numbers for last
quarter
Actions taken this
quarter
Items of note
Count actions which occurred during the current quarter.
Regional and State information will be reported separately - States continue to report to the Regions,
which will then forward separate Regional and State totals to OUST.
LD Measures' Definitions:
1. Number of Leak Detection Inspections: An inspection is defined as a visit to a single facility by a
State employee or designated State agent who checks equipment performance and condition, as
well as the quality of records management. Count general compliance inspections as long as leak
detection methods and records are checked. Count installation inspections if leak detection
systems are checked as part of the inspection. Do not count inspections for piping only. Count the
number of facilities inspected, not the number of UST systems. (Must be used by all States and
Regions).
2. Number of Informal Enforcement Cases: These are any series of actions that are taken to notify
an owner/operator (O/O) of the O/O's responsibilities after the State has made a preliminary
determination that an UST system(s) is out of compliance. These may cite a punitive authority or
potential penalty, but do not actually exercise that authority to require the O/O to return to
compliance. Generally these informal cases may include a series of warning letters, field citations
without penalties, show-cause meetings, re-inspections, etc. For the Regions, these informal cases
include warning letters, NOV's, and 9005 Information Request all other tools should be
considered formal. If this informal case is later escalated to become a formal enforcement case (as
OSWER Directive 9630.10
11
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defined below), it should be counted twice: once as informal and once as formal. (Must be used
by all Regions, States may either use or negotiate a modified definition with the Region, which
must be submitted to HQ in writing).
3. Number of Formal Enforcement Cases: These are any series of formal administrative, civil, or
criminal notices or regulatory actions (depending on the State's authority) that rely on punitive
authority (e.g. penalty, arrest, permit revocation, etc.) to require an O/O to return to compliance.
Generally these formal cases may include a series of notices of violation, administrative
complaints, field citations with penalties, formal referral to State counsel, arrest, etc. (Must be
used by all Regions, States may either use or negotiate a modified definition with the Region,
which must be submitted to HQ in writing).
REPORTS DUE TO OUST: Within 10 working days of the end of each fiscal quarter.
OSWER Directive 9630.10 12
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