[Senate Report 105-360]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 682
105th Congress                                                   Report
                                 SENATE

 2d Session                                                     105-360
_______________________________________________________________________


 
   LEAKING UNDERGROUND STORAGE TANK TRUST FUND AMENDMENTS ACT OF 1998

                                _______
                                

October 1 (legislative day, September 29), 1998.--Ordered to be printed

_______________________________________________________________________


    Mr. Chafee, from the Committee on Environment and Public Works, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 555]

    The Committee on Environment and Public Works, to which was 
referred a bill (S. 555) to amend the Solid Waste Disposal Act 
to require that at least 85 percent of funds appropriated to 
the Environmental Protection Agency from the Leaking 
Underground Storage Tank Trust Fund be distributed to States to 
carry out cooperative agreements for undertaking corrective 
action and for enforcement of subtitle I of that Act, having 
considered the same, reports favorably thereon with amendments, 
and an amendment to the title, and recommends that the bill, as 
amended, do pass.

          General Statement and Objectives of the Legislation

    The Environmental Protection Agency (EPA) estimates that 
there are currently over 909,000 active underground storage 
tanks (USTs) containing petroleum products. Many of these tanks 
have leaks, causing potential harm to human health and the 
environment. Since 1984, underground storage tanks have been 
regulated under Subtitle I of the Solid Waste Disposal Act, 
with the States largely taking the lead in implementing and 
enforcing the program requirements, including corrective action 
requirements. States receive Federal funds from the Leaking 
Underground Storage Tank Trust Fund to carry out the 
requirements.
    S. 555 strengthens the existing statutory framework for 
underground storage tanks. The bill amends Subtitle I to 
require that EPA distribute at least 80 percent (amended from 
the 85 percent requirement in the bill as introduced) of its 
annual appropriation from the Leaking Underground Storage Tank 
Trust Fund to States under cooperative agreements. The bill 
also gives States greater flexibility to use the funds for 
enforcement of the program; administrative costs; and 
corrective action and compensation programs. Finally, the bill 
affirms that EPA may use funds from the Trust Fund for 
enforcement of the UST program.
Background
    In 1984, Congress enacted as Subtitle I of the Solid Waste 
Disposal Act a comprehensive program to address the problem of 
leaking underground storage tanks. Among other things, the 
program required EPA to develop leak detection and prevention 
standards for USTs, and additionally authorized the Agency to 
compel tank owners and operators to take corrective action to 
clean up leaking tanks or to close them. Under this program, 
owners and operators of existing underground storage tank 
systems (i.e., those systems for which installation commenced 
on or before December 22, 1988), had 10 years to December 22, 
1998, to upgrade, replace, or close tanks and undertake any 
necessary corrective action.
    Over a million USTs have been closed under this program, 
but corrective action is still needed at over 166,000 that have 
been identified by the States as having leaks for which cleanup 
is not completed. The number of USTs that will require 
corrective action is expected to increase as owners and 
operators continue to identify and upgrade existing tanks to 
comply with the 1998 deadline. EPA estimates that over the next 
3 years, releases will be detected at an additional 55,000 
USTs.
    In 1986, to help implement the program, Congress created 
the Leaking Underground Storage Tank (LUST) Trust Fund, which 
is paid for by a one-tenth of one cent tax on all petroleum 
products. Amounts are appropriated each year from the Trust 
Fund for the States and EPA to enforce the UST corrective 
action requirements; to conduct cleanups in certain limited 
situations where there is no financially viable responsible 
party or where a responsible party fails to undertake the 
appropriate corrective action; to take corrective action in 
cases of emergency; and to bring cost recovery actions against 
parties who fail to comply with the requirements of Subtitle I. 
The balance of the Trust Fund is approximately $1.5 billion. 
The annual appropriation for fiscal year 1999 is expected to be 
approximately $75 million.
    In addition to the Federal LUST Trust Fund, many States 
have also established funds, capitalized through State gas 
taxes, fees, and other mechanisms, to pay for cleanups and to 
provide assistance to tank owners in complying with other 
requirements. States spend approximately $1 billion per year 
from their trust funds. However, in recent years, the claims 
against those funds have risen dramatically and are expected to 
increase even more due to 1998 requirements. As result 
nationwide, annual claims are expected to exceed payments into 
the State funds by more than $100 million.

                      Section-By-Section Analysis

Section 1. Short Title
    Section 1 sets forth the short title of this bill as the 
``Leaking Underground Storage Tank Trust Fund Amendments Act of 
1998.''
Sec. 2. Leaking Underground Storage Tanks
    Section 2 adds a new subsection (f) to Section 9004 of the 
Solid Waste Disposal Act to give States greater flexibility to 
implement the underground storage tank program. First, the new 
subsection (f)(1) provides that EPA must distribute to the 
States at least 80 percent of the funds appropriated each year 
from the Leaking Underground Storage Tank Trust Fund. The 
States may use these funds to pay for the reasonable costs of: 
(1) actions to carry out and enforce corrective actions; (2) 
necessary administrative costs of State assurance funds; (3) 
enforcement of a State program; (4) State or local corrective 
actions; and (5) corrective action or compensation programs 
under a State program if there is no financially viable owner 
or operator of an UST.
    The bill, as amended by the committee, guarantees that 
States will receive a minimum of 80 percent of the annual 
appropriation from the LUST Trust Fund. This is intended to be 
a floor; the actual percentage distributed to the States in any 
given year may exceed that level. Historically, EPA has 
distributed varying amounts to the States, ranging from as 
little as 81 percent of the annual appropriation to as much as 
89 percent. The average distribution has been in the range of 
85 percent. Based on that average, the bill, as introduced, 
provided that States would receive at least 85 percent of the 
annual appropriation. That percentage was lowered, in part, to 
provide EPA with greater flexibility to address the problems 
associated with USTs within the exterior boundaries of Indian 
reservations or other areas within Tribal jurisdiction 
(hereinafter referred to as ``Tribal jurisdiction''). EPA is 
expected to distribute more than the statutory minimum of 80 
percent of the LUST funds if the Agency's budgetary needs, 
including for implementation of the LUST program with respect 
to tanks within Tribal jurisdiction, are less than 20 percent 
of allocated funds.
    This new subsection also expands upon the authority that is 
currently provided under Section 9003(h)(7). Under new 
subsection (f)(1)(A)(iii), States may use funds to enforce 
State or local tank leak detection, prevention and other 
requirements through State or local programs. State agencies 
currently receive funding from EPA from sources other than the 
LUST Trust Fund to undertake enforcement activities for leak 
detection and other preventive requirements. It is expected 
that States will continue to receive funding from EPA from 
these other sources, as well as from the LUST Trust Fund, for 
these activities. Any LUST Trust Fund appropriations used for 
enforcement activities by States should supplement funds that 
the States have been receiving, and will continue to receive, 
through grants authorized under Section 2007(f).
    New subsection (f)(1)(A)(v) authorizes a State to make the 
determination of whether an owner or operator of an underground 
storage tank is financially viable (i.e., whether the owner or 
operator has sufficient resources to pay for a corrective 
action without significantly impairing the ability of the owner 
or operator to continue in business), in accordance with 
guidelines to be developed by EPA and the States. Until such 
guidelines are developed, States should use, to the extent 
appropriate, financial information used in EPA's existing ABEL 
and INDIPAY models to evaluate the ability of an owner or 
operator to pay for the costs of corrective action. In making 
the determination of whether an owner or operator has the 
ability to pay, the State must take into consideration any 
funding received from the State. LUST Fund dollars may be used 
to supplement State dollars, in appropriate cases.
    In addition to expanding the uses of the Trust Fund, this 
section reaffirms that States may not use these funds to 
provide financial assistance to owners and operators of tanks 
to comply with existing regulations governing USTs, including 
the requirements for upgrading of existing tanks.
    While the bill allows for several new uses of the LUST 
Trust Fund, the legislation does not prioritize among uses. 
Funding for existing uses (including enforcement of corrective 
action requirements, corrective actions taken by State and 
local governments at responsible party sites, and cost recovery 
actions) most effectively serves the needs for protection of 
human health and the environment. There will be a significant 
funding need in coming years for enforcement of the tank leak 
detection and prevention requirements through State and local 
programs. The distribution of available Federal funding should 
recognize the importance of enforcement to protection of human 
health and the environment.
    Section 2 further directs EPA, in coordination with Indian 
Tribes, to develop and implement a strategy to undertake the 
necessary corrective actions and to implement and enforce other 
requirements in connection with USTs within Tribal 
jurisdiction. Within 2 years of the date of enactment of S. 
555, and every 2 years after that, EPA is to submit to Congress 
a report on the progress of the Agency in implementing the UST 
program with respect to tanks within Tribal jurisdiction.
    According to EPA, implementation of the leaking underground 
storage tank program with respect to tanks within Tribal 
jurisdiction has presented a number of unique challenges. The 
large number of Indian Tribes and their geographic diversity 
can make implementation difficult. In addition, unlike most 
States, which have established separate State cleanup funds 
that contribute to the cleanup of releases from underground 
storage tanks, Indian Tribes generally have not established 
cleanup funds to offset remediation costs.
    As a result of these and other factors, inventories of 
leaking underground storage tanks and implementation of 
corrective measures in connection with tanks within Tribal 
jurisdiction have not progressed sufficiently. As the December 
22, 1998 deadline approaches, EPA expects the number of 
reported releases from these tanks to increase, perhaps 
substantially. As a result, the Agency anticipates a 
significant increase in the number of site assessments and 
necessary corrective actions in connection with tanks within 
Tribal jurisdiction. Where there is no viable owner or operator 
to pay for a cleanup, or a site otherwise meets the criteria 
for funding from the Federal LUST Trust Fund, these activities 
may be funded through that Fund. This bill is intended to 
promote the timely and effective response to contamination from 
leaking underground storage tanks within Tribal jurisdiction.
    Subsection (f)(2) sets forth the process to be used to 
allocate funds among States. In general, EPA is directed to 
distribute funds in accordance with the existing allocation 
process developed by the Agency. The process may be revised 
only after consulting with the States. Any revisions must take 
into consideration a number of factors, including: the total 
revenue contributed by a State to the Trust Fund; the number of 
confirmed releases; the number of USTs in a State; groundwater 
use in a State; program performance in a State; the financial 
needs of a State; and the ability of a State to use its 
allocated funds in any given year. According to EPA, the 
current allocation process takes into consideration these 
factors. Any revisions to the current allocation process should 
maintain an inclusive process for EPA consultation with States 
and ensure that EPA obtains necessary information from States.
    Subsection (f)(3) requires distributions from the Trust 
Fund to be made directly to the State agency that enters into a 
cooperative agreement with EPA. Each State shall limit the 
proportion of the funds that may be used for administrative 
costs in accordance with its State law.
    The intent of this provision is to limit administrative 
expenses to a percentage that is otherwise allowed under State 
law. It should not be interpreted, however, to impose a cap on 
State costs of overseeing corrective action. Some States use 
LUST Trust Funds to cover the costs of oversight of corrective 
actions that are conducted by responsible parties. This is a 
very effective use of the funds. Although some States 
characterize this type of oversight as an administrative 
expense, this provision is not intended to be interpreted to 
include this kind of oversight cost as an administrative 
expense.
    Subsection (f)(5) expressly authorizes EPA to use LUST 
Trust Funds to enforce tank leak detection, prevention and 
other requirements. With the December 22, 1998 deadline 
approaching, it is expected that EPA will need to devote 
resources to Federal oversight and enforcement of the UST 
program in some circumstances. Therefore, this provision 
authorizes the use of LUST Trust Fund dollars by EPA to 
supplement the role of the States in enforcing the UST program. 
States will continue to have the primary responsibility for 
implementation and enforcement of the UST program and its 
regulations. EPA is expected to target the funds received from 
the LUST Trust Fund to activities in States that do not have, 
or are not adequately enforcing, their own programs, and to 
implement the UST program, including corrective actions, with 
respect to tanks within Tribal jurisdiction.
    This provision does not affect EPA's authority to use other 
funds to enforce the UST program. EPA receives funding from 
sources other than the LUST Trust Fund to undertake enforcement 
activities for leak detection and other preventive 
requirements. Any LUST Trust Fund appropriations used for such 
enforcement activities by EPA are expected to supplement funds 
that the Agency has been, and will be, receiving from sources 
other than the LUST Trust Fund.
Sec. 3. Addition to Trust Fund Purposes
    Section 3 amends Section 9508(c)(1) of the Internal Revenue 
Code to authorize the use of the LUST Trust Fund for the 
expanded purposes identified in this bill.
Sec. 4. Study
    Section 4 directs EPA to conduct a study to determine 
whether the gasoline additive methyl tertiary butyl ether 
(MTBE) has a corrosive effect on underground storage tanks.

                      Regulatory Impact Statement

    In compliance with section 11(b) of rule XXVI of the 
Standing Rules of the Senate, the committee makes evaluation of 
the regulatory impact of the reported bill. The reported bill 
will have no regulatory impact. This bill will not have any 
adverse impact on the personal privacy of individuals.

                          Mandates Assessment

    In compliance with the Unfunded Mandates Reform Act of 1995 
(Public Law 104-4), the committee finds that S. 555 would 
impose no Federal intergovernmental unfunded mandates on State, 
local, or Tribal governments. All of its governmental 
directives are imposed on Federal agencies. The bill does not 
directly impose any private sector mandates.

                          Legislative History

    S. 555 was introduced on April 10, 1997, by Senator Allard. 
No hearings were held on this bill. On Wednesday, September 23, 
1998, the Committee on Environment and Public Works held a 
business meeting to consider this bill. Senator Baucus offered 
an amendment on behalf of Senator Boxer to require EPA to 
conduct a study. The Boxer amendment was adopted by voice vote. 
Senator Chafee offered a Manager's amendment in the nature of a 
substitute on behalf of himself and Senators Baucus, Smith, and 
Allard. The Manager's amendment was amended by a technical 
amendment, adopted by voice vote, and the bill as amended was 
ordered reported. No rollcall votes occurred on the bill.

                          Cost of Legislation

    Section 403 of the Congressional Budget and Impoundment 
Control Act requires that a statement of the cost of the 
reported bill, prepared by the Congressional Budget Office, be 
included in the report. That statement follows: -

                                     U.S. Congress,
                               Congressional Budget Office,
                                Washington, DC, September 30, 1998.

Hon. John H. Chafee, Chairman,
Committee on Environment and Public Works,
U.S. Senate, Washington, DC.

    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 555, the Leaking 
Underground Storage Tank Trust Fund Amendments Act of 1998.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Kim Cawley 
(for Federal costs), who can be reached at 226-2860, and Pepper 
Santalucia (for the State and local impact), who can be reached 
at 225-3220.

            Sincerely,
                                           June E. O'Neill,
                                                          Director.
                                ------                                


               Congressional Budget Office Cost Estimate

S. 555, Leaking Underground Storage Tank Trust Fund Amendments 
Act of 1998, as ordered reported by the Senate Committee on 
Environment and Public Works on September 23, 1998.

Summary
    S. 555 would direct the Environmental Protection Agency 
(EPA) to distribute to States at least 80 percent of the money 
appropriated to the agency from the Leaking Underground Storage 
Tank (LUST) Trust Fund each fiscal year. The bill also would 
allow two new uses for Federal funds appropriated from the LUST 
fund, which could lead to a significant increase in 
discretionary spending. CBO has no basis for predicting whether 
or to what extent the Congress might increase appropriations to 
accommodate the possible new uses of balances in the LUST fund.
    Enacting S. 555 would not affect direct spending or 
receipts; therefore, pay-as-you-go procedures would not apply. 
The bill contains no private-sector or intergovernmental 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would impose no costs on State, local, or tribal 
governments.
Estimated Cost to the Federal Government
    Under this bill, States could use LUST grant money to help 
fund State programs that pay for the cost of cleaning up leaks 
from regulated underground storage tanks or to compensate tank 
owners for the cost of conducting such cleanups. States also 
would be authorized to use Federal funds to enforce Federal 
standards for preventing leaks from underground storage tanks. 
Because the gap between existing resources and State cleanup 
needs is large, there could be significant demand for Federal 
assistance under this bill.
    In 1998, $65 million was appropriated from the LUST fund 
for EPA's administration and oversight ofthe program, and for 
funding cooperative agreements with State LUST programs. Under 
these cooperative agreements, most funds are spent on oversight 
of cleanups conducted by private parties, although some funds 
may be used to finance cleanups directly when no financially 
viable private party exists. Most States operate State 
assurance funds, separate from the Federal LUST program, to 
conduct cleanups and to reimburse owners and operators of 
underground tanks for cleanup costs. The most recent data 
collected by the States indicates that annual receipts to State 
assurance funds are about $1.2 billion, and current balances in 
these funds amount to about $1.3 billion. The assurance funds 
face outstanding claims of $2.8 billion from tank owners and 
operators seeking compensation for cleanups already conducted. 
According to EPA, the average cleanup under the LUST program 
costs $125,000 and there are over 170,000 underground tanks 
currently undergoing or awaiting cleanup over the next decade. 
Thus, current cleanup needs may exceed $20 billion, and the 
demand for additional monies from the Federal LUST fund could 
total hundreds of millions of dollars annually for many years.

Pay-as-You-Go Considerations: None.
Estimated Impact on State, Local, and Tribal Governments
    The bill contains no intergovernmental mandates as defined 
in UMRA and would impose no costs on State, local, or tribal 
governments. By requiring EPA to distribute to the States at 
least 80 percent of the money appropriated to the agency from 
the LUST fund each year, the bill would assure States of a 
specified minimum proportion of available funds. (According to 
EPA, the percentage of the annual appropriated amounts that 
States have received since 1989 has ranged from 81 percent to 
89 percent). As described above, the bill would also grant 
States more flexibility in using those funds.
Estimated Impact on the Private Sector
    This bill would impose no new private-sector mandates as 
defined in UMRA.

Estimated Prepared by: Federal Costs: Kim Cawley (226-2860); 
Impact on State, Local, and Tribal Governments: Pepper 
Santalucia (225-3220).

Estimate Approved by: Paul N. Van de Water, Assistant Director 
for Budget Analysis.

                        Changes in Existing Law

    In compliance with section 12 of rule XXVI of the Standing 
Rules of the Senate, changes in existing law made by the bill 
as reported are shown as follows: Existing law proposed to be 
omitted is enclosed in [black brackets], new matter is printed 
in italic, existing law in which no change is proposed is shown 
in roman:

                        SOLID WASTE DISPOSAL ACT

           [As Amended Through P.L. 104-186, August 20, 1996]

                     TITLE II--SOLID WASTE DISPOSAL

                     Subtitle A--General Provisions

                   short title and table of contents

      Sec. 1001. This title (hereinafter in this title referred 
to as ``this Act''), together with the following table of 
contents, may be cited as the ``Solid Waste Disposal Act'':

                     Subtitle A--General Provisions

Sec. 1001. Short title and table of contents.
Sec. 1002. Congressional findings.
Sec. 1003. Objectives.
Sec. 1004. Definitions.
Sec. 1005. Governmental cooperation.
Sec. 1006. Application of Act and integration with other Acts.
Sec. 1007. Financial disclosure.
Sec. 1008. Solid waste management information and guidelines.

   Subtitle B--Office of Solid Waste; Authorities of the Administrator

Sec. 2001. Office of Solid Waste and Interagency Coordinating Committee.
Sec. 2002. Authorities of Administrator.
Sec. 2003. Resource recovery and conservation panels.
Sec. 2004. Grants for discarded tire disposal.
Sec. 2005. Labeling of certain oil.
Sec. 2006. Annual report.
Sec. 2007. General authorization.
Sec. 2008. Office of Ombudsman.

                 Subtitle C--Hazardous Waste Management

Sec. 3001. Identification and listing of hazardous waste.
Sec. 3002. Standards applicable to generators of hazardous waste.
Sec. 3003. Standards applicable to transporters of hazardous waste.
Sec. 3004. Standards applicable to owners and operators of hazardous 
          waste treatment, storage, and disposal facilities.
Sec. 3005. Permits for treatment, storage, or disposal of hazardous 
          waste.
Sec. 3006. Authorized State hazardous waste programs.
Sec. 3007. Inspections.
Sec. 3008. Federal enforcement.
Sec. 3009. Retention of State authority.
Sec. 3010. Effective date.
Sec. 3011. Authorization of assistance to States.
Sec. 3012. Hazardous waste site inventory.
Sec. 3013. Monitoring, analysis, and testing.
Sec. 3014. Restrictions on recycled oil.
Sec. 3015. Expansion during interim status.
Sec. 3016. Inventory of Federal Agency hazardous waste facilities.
Sec. 3017. Export of hazardous waste.
Sec. 3018. Domestic sewage.
Sec. 3019. Exposure information and health assessments.
Sec. 3020. Interim control of hazardous waste injection.
Sec. 3021. Mixed waste inventory reports and plan.
Sec. 3022. Public vessels.
Sec. 3023. Federally owned treatment works.

             Subtitle D--State or Regional Solid Waste Plans

Sec. 4001. Objectives of subtitle.
Sec. 4002. Federal guidelines for plans.
Sec. 4003. Minimum requirements for approval of plans.
Sec. 4004. Criteria for sanitary landfills; sanitary landfills required 
          for all disposal.
Sec. 4005. Upgrading of open dumps.
Sec. 4006. Procedure for development and implementation of State plan.
Sec. 4007. Approval of State plan; Federal assistance.
Sec. 4008. Federal assistance.
Sec. 4009. Rural communities assistance.
Sec. 4010. Adequacy of certain guidelines and criteria.

Subtitle E--Duties of the Secretary of Commerce in Resource and Recovery

Sec. 5001. Functions.
Sec. 5002. Development of specifications for secondary materials.
Sec. 5003. Development of market for recovered materials.
Sec. 5004. Technology promotion.
Sec. 5005. Nondiscrimination requirement.
Sec. 5006. Authorization of appropriations.

                  Subtitle F--Federal Responsibilities

Sec. 6001. Application of Federal, State, and local law to Federal 
          facilities.
Sec. 6002. Federal procurement.
Sec. 6002A. Preference for recycled toner cartidges. \1\
\1\ Editorially supplied.
Sec. 6003. Cooperation with Environmental Protection Agency.
Sec. 6004. Applicability of solid waste disposal guidelines to executive 
          agencies.

                  Subtitle G--Miscellaneous Provisions

Sec. 7001. Employee protection.
Sec. 7002. Citizen suits.
Sec. 7003. Imminent hazard.
Sec. 7004. Petition for regulations; public participation.
Sec. 7005. Separability.
Sec. 7006. Judicial review.
Sec. 7007. Grants or contracts for training projects.
Sec. 7008. Payments.
Sec. 7009. Labor standards.
Sec. 7010. Law enforcement authority.

    Subtitle H--Research, Development, Demonstration, and Information

Sec. 8001. Research, demonstrations, training, and other activities.
Sec. 8002. Special studies; plans for research, development, and 
          demonstrations.
Sec. 8003. Coordination, collection, and dissemination of information.
Sec. 8004. Full-scale demonstration facilities.
Sec. 8005. Special study and demonstration projects on recovery of 
          useful energy and materials.
Sec. 8006. Grants for resource recovery systems and improved solid waste 
          disposal facilities.
Sec. 8007. Authorization of appropriations.

           Subtitle I--Regulation of Underground Storage Tanks

Sec. 9001. Definitions.
Sec. 9002. Notification.
Sec. 9003. Release detection, prevention, and correction regulations.
Sec. 9004. Approval of State programs.
Sec. 9005. Inspections, monitoring, and testing.
Sec. 9006. Federal enforcement.
Sec. 9007. Federal facilities.
Sec. 9008. State authority.
Sec. 9009. Study of underground storage tanks.
Sec. 9010. Authorization of appropriations.

        Subtitle J--Demonstration Medical Waste Tracking Program

Sec. 11001. Scope of demonstration program for medical waste.
Sec. 11002. Listing of medical wastes.
Sec. 11003. Tracking of medical waste.
Sec. 11004. Inspections.
Sec. 11005. Enforcement.
Sec. 11006. Federal facilities.
Sec. 11007. Relationship to State law.
Sec. 11008. Report to Congress.
Sec. 11009. Health impact report.
Sec. 11010. General provisions.
Sec. 11011. Effective date.
Sec. 11012. Authorization of appropriations.

                         congressional findings

      Sec. 1002. (a) Solid Waste.--The Congress finds with 
respect to solid waste--

           *       *       *       *       *       *       *


          Subtitle I--Regulation of Underground Storage Tanks

                       definitions and exemptions

      Sec. 9001. For the purposes of this subtitle--

           *       *       *       *       *       *       *

            (1)  *  *  *

           *       *       *       *       *       *       *

            (3) The term ``owner'' means--
                    (A) in the case of an underground storage 
                tank in use on the date of enactment of the 
                Hazardous and Solid Waste Amendments of 1984, 
                or brought into use after that date, any person 
                who owns an underground storage tank used for 
                the storage, use, or dispensing of regulated 
                [sustances] substances, and

           *       *       *       *       *       *       *


       release detection, prevention, and correction regulations

      Sec. 9003. (a) * * *

           *       *       *       *       *       *       *

      (f) Effective Dates.--(1) Regulations issued pursuant to 
[subsection] subsections (c) and (d) of this section, and 
standards issued pursuant to subsection (e) of this section, 
for underground storage tanks containing regulated substances 
defined in section 9001(2)(B) (petroleum, including crude oil 
or any fraction thereof which is liquid at standard conditions 
of temperature and pressure) shall be effective not later than 
thirty months after the date of enactment of the Hazardous and 
Solid Waste Amendments of 1984.

           *       *       *       *       *       *       *


                       approval of state programs

      Sec. 9004. (a) Elements of State Program.--

           *       *       *       *       *       *       *

    (f) Trust Fund Distribution.--
            (1) In general.--
                    (A) Amount and permitted use of 
                distribution.--The Administrator shall 
                distribute to States at least 80 percent of the 
                funds appropriated to the Environmental 
                Protection Agency from the Leaking Underground 
                Storage Tank Trust Fund established by section 
                9508 of the Internal Revenue Code of 1986 
                (referred to in this subsection as the `Trust 
                Fund') for each fiscal year for use in paying 
                the reasonable costs, incurred under 
                cooperative agreements with States, of--
                            (i) actions taken by a State under 
                        section 9003(h)(7)(A);
                            (ii) necessary administrative 
                        expenses directly related to corrective 
                        action and compensation programs under 
                        subsection (c)(1);
                            (iii) enforcement by a State or 
                        local government of a State program 
                        approved under this section or of State 
                        or local requirements regulating 
                        underground storage tanks that are 
                        similar or identical to this subtitle;
                            (iv) State or local corrective 
                        actions pursuant to regulations 
                        promulgated under section 9003(c)(4); 
                        or
                            (v) corrective action and 
                        compensation programs under subsection 
                        (c)(1) for releases from underground 
                        storage tanks regulated under this 
                        subtitle if, as determined by the State 
                        in accordance with guidelines developed 
                        between the Environmental Protection 
                        Agency and the States, the financial 
                        resources of an owner or operator 
                        (including resources provided by 
                        programs under subsection (c)(1)) are 
                        not adequate to pay for the cost of a 
                        corrective action without significantly 
                        impairing the ability of the owner or 
                        operator to continue in business.
                    (B) Nonpermitted uses.--Funds provided by 
                the Administrator under subparagraph (A) shall 
                not be used by a State to provide financial 
                assistance to an owner or operator to meet the 
                requirements respecting underground storage 
                tanks contained in section part 280 of title 
                40, Code of Federal Regulations (as in effect 
                on the date of enactment of this subsection), 
                except as provided in subparagraph (A)(v), or 
                similar requirements in State programs approved 
                under this section or similar State or local 
                provisions.
                    (C) Tanks within tribal jurisdiction.--The 
                Administrator, in coordination with Indian 
                tribes, shall--
                            (i) expeditiously develop and 
                        implement a strategy to--
                                    (I) take necessary 
                                corrective action in response 
                                to releases from leaking 
                                underground storage tanks 
                                located wholly within the 
                                exterior boundaries of an 
                                Indian reservation or other 
                                area within the jurisdiction of 
                                an Indian tribe, giving 
                                priority to releases that 
                                present the greatest threat to 
                                human health or the 
                                environment; and
                                    (II) implement and enforce 
                                requirements regulating 
                                underground storage tanks 
                                located wholly within the 
                                exterior boundaries of an 
                                Indian reservation or other 
                                areas within the jurisdiction 
                                of an Indian tribe; and
                            (ii) not later than 2 years after 
                        the date of enactment of this 
                        subsection, and every 2 years 
                        thereafter, submit to Congress a report 
                        summarizing the status of 
                        implementation of the leaking 
                        underground storage tank program 
                        located wholly within the exterior 
                        boundaries of an Indian reservation or 
                        other area within the jurisdiction of 
                        an Indian tribe.
            (2) Allocation.--
                    (A) Process.--Subject to subparagraph (B), 
                in the case of a State with which the 
                Administrator has entered into a cooperative 
                agreement under section 9003(h)(7)(A), the 
                Administrator shall distribute funds from the 
                Trust Fund to the State using the allocation 
                process developed by the Administrator for such 
                cooperative agreements.
                    (B) Revisions to process.--The 
                Administrator may revise the allocation process 
                only after--
                            (i) consulting with State agencies 
                        responsible for overseeing corrective 
                        action for releases from underground 
                        storage tanks and with representatives 
                        of owners and operators; and
                            (ii) taking into consideration, at 
                        a minimum--
                                    (I) the total revenue 
                                received from each State into 
                                the Trust Fund;
                                    (II) the number of 
                                confirmed releases from leaking 
                                underground storage tanks in 
                                each State;
                                    (III) the number of 
                                notified petroleum storage 
                                tanks in each State;
                                    (IV) the percentage of the 
                                population of each State using 
                                groundwater for any beneficial 
                                purpose;
                                    (V) the evaluation of the 
                                program performance of each 
                                State;
                                    (VI) the evaluation of the 
                                financial needs of each State; 
                                and
                                    (VII) the evaluation of the 
                                ability of each State to use 
                                the funds in any year.
            (3) Distributions to state agencies.--
                    (A) In general.--Distributions from the 
                Trust Fund under this subsection shall be made 
                directly to the State agency entering into a 
                cooperative agreement or enforcing the State 
                program.
                    (B) Administrative expenses.--A State 
                agency that receives funds under this 
                subsection shall limit the proportion of those 
                funds that are used to pay administrative 
                expenses to a percentage that the State may 
                establish by law.
            (4) Cost recovery prohibition.--Funds provided to 
        States from the Trust Fund to owners or operators for 
        programs under section 9004(c)(1) for releases from 
        underground storage tanks are not subject to cost 
        recovery by the Administrator under section 9003(h)(6).
            (5) Permitted uses.--In addition to uses authorized 
        by other provisions of this subtitle, the Administrator 
        may use funds appropriated to the Environmental 
        Protection Agency from the Trust Fund for enforcement 
        of any regulation promulgated by the Administrator 
        under this subtitle.

        inspections, monitoring, testing, and corrective action

      Sec. 9005. (a) Furnishing Information.--For the purposes 
of developing or assisting in the development of any 
regulation, conducting any [study taking] study, taking any 
corrective action, or enforcing the provisions of this 
subtitle, any owner or operator of an underground storage tank 
(or any tank subject to study under section 9009 that is used 
for storing regulated substances) shall, upon request of any 
officer, employee or representative of the Environmental 
Protection Agency, duly designated by the Administrator, or 
upon request of any duly designated officer, employee, or 
representative of a State acting parsuant to subsection (h)(7) 
of section 9003 or with an approved program, furnish 
information relating to such tanks, their associated equipment, 
their contents, conduct monitoring or testing, permit such 
officer at all reasonable times to have access to, and to copy 
all records relating to such tanks and permit such officer to 
have access for corrective action. For the purposes of 
developing or assisting in the development of any regulation, 
conducting any study, taking corrective action, or enforcing 
the provisions of this subtitle, such officers, employees, or 
representatives are authorized--

           *       *       *       *       *       *       *

      (b) Confidentiality.--(1) Any records, reports, or 
information obtained from any persons under this section shall 
be available to the public, except that upon a showing 
satisfactory to the Administrator (or the State, as the case 
may be) by any person that records, reports, or information, or 
a particular part thereof, to which the Administrator (or the 
State, as the case may be) or any officer, employee, or 
representative thereof has access under this section if made 
public, would divulge information entitled to protection under 
section 1905 of title 18 of the United States Code, such 
information or particular portion thereof shall be considered 
confidential in accordance with the purposes of that section, 
except that such record, report, document, or information may 
be disclosed to other officers, employees, or authorized 
representatives of the United States concerned with carrying 
out this Act, or when [relevent] relevant in any proceeding 
under this Act.

           *       *       *       *       *       *       *

      (4) Notwithstanding any limitation contained in this 
section or any other provision of law, all information reported 
to, or otherwise obtained, by the Administrator (or any 
representative of the Administrator) under this Act shall be 
made available, upon written request of any duly authorized 
committee of the Congress, to such committee (including 
records, reports, or information obtained by representatives of 
the [Evironmental] Environmental Protection Agency).

           *       *       *       *       *       *       *


          TITLE 26--UNITED STATES CODE--INTERNAL REVENUE CODE

                      Subtitle I--Trust Fund Code

                      CHAPTER 98--TRUST FUND CODE

               Subchapter A--Establishment of Trust Funds

Sec. 9508. Leaking Underground Storage Tank Trust Fund.
    (a) Creation of Trust Fund.--
            There is established in the Treasury of the United 
        States a trust fund to be known as the ``Leaking 
        Underground Storage Tank Trust Fund'', consisting of 
        such amounts as may be appropriated or credited to such 
        Trust Fund as provided in this section or section 
        9602(b).
    (b) Transfers to Trust Fund.--
            There are hereby appropriated to the Leaking 
        Underground Storage Tank Trust Fund amounts equivalent 
        to--(1) taxes received in the Treasury under section 
        4041(d) (relating to additional taxes on motor fuels), 
        (2) taxes received in the Treasury under section 4081 
        (relating to tax on gasoline and diesel fuel) to the 
        extent attributable to the Leaking Underground Storage 
        Tank Trust Fund financing rate under such section, (3) 
        taxes received in the Treasury under section 4091 
        (relating to tax on aviation fuel) to the extent 
        attributable to the Leaking Underground Storage Tank 
        Trust Fund financing rate under such section, (4) taxes 
        received in the Treasury under section 4042 (relating 
        to tax on fuel used in commercial transportation on 
        inland waterways) to the extent attributable to the 
        Leaking Underground Storage Tank Trust Fund financing 
        rate under such section, and (5) amounts received in 
        the Treasury and collected under section 9003(h)(6) of 
        the Solid Waste Disposal Act. For purposes of this 
        subsection, there shall not be taken into account the 
        taxes imposed by sections 4041 and 4081 on diesel fuel 
        sold for use or used as fuel in a diesel-powered boat.
    (c) Expenditures.--
    (1) In general.--Except as provided in paragraph (2), 
amounts in the Leaking Underground Storage Tank Trust Fund 
shall be available, as provided in appropriation Acts, only for 
purposes of making expenditures [to carry out section 9003(h) 
of the Solid Waste Disposal Act as in effect on the date of the 
enactment of the Superfund Amendments and Reauthorization Act 
of 1986.] to carry out--
            (A) section 9003(h) of the Solid Waste Disposal Act 
        (as in effect on the date of enactment of the Superfund 
        Amendments and Reauthorization Act of 1986); and
                    (B) section 9004(f) of the Solid Waste 
                Disposal Act (as in effect on the date of 
                enactment of the Leaking Underground Storage 
                Tank Trust Fund Amendments Act of 1998).
    (2) Transfers from Trust Fund for certain repayments and 
credits.--
            (A) In general.--The Secretary shall pay from time 
        to time from the Leaking Underground Storage Tank Trust 
        Fund into the general fund of the Treasury amounts 
        equivalent to--
                    (i) amounts paid under--(I) section 6420 
                (relating to amounts paid in respect of 
                gasoline used on farms), (II) section 6421 
                (relating to amounts paid in respect of 
                gasoline used for certain nonhighway purposes 
                or by local transit systems), and (III) section 
                6427 (relating to fuels not used for taxable 
                purposes), and
                    (ii) credits allowed under section 34, with 
                respect to the taxes imposed by section 4041(d) 
                or by sections 4081 and 4091 (to the extent 
                attributable to the Leaking Underground Storage 
                Tank Trust Fund financing rate under such 
                sections).
            (B) Transfers based on estimates.--Transfers under 
        subparagraph (A) shall be made on the basis of 
        estimates by the Secretary, and proper adjustments 
        shall be made in amounts subsequently transferred to 
        the extent prior estimates were in excess of or less 
        than the amounts required to be transferred.
    (d) Liability of the United States limited to amount in 
Trust Fund.--
    (1) General rule.--Any claim filed against the Leaking 
Underground Storage Tank Trust Fund may be paid only out of 
such Trust Fund.
    (2) Coordination with other provisions.--Nothing in the 
Comprehensive Environmental Response, Compensation, and 
Liability Act of 1980 or the Superfund Amendments and 
Reauthorization Act of 1986 (or in any amendment made by either 
of such Acts) shall authorize the payment by the United States 
Government of any amount with respect to any such claim out of 
any source other than the Leaking Underground Storage Tank 
Trust Fund.
    (3) Order in which unpaid claims are to be paid.--If at any 
time the Leaking Underground Storage Tank Trust Fund has 
insufficient funds to pay all of the claims out of such Trust 
Fund at such time, such claims shall, to the extent permitted 
under paragraph (1), be paid in full in the order in which they 
were finally determined.

                                 
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