[Senate Report 107-316]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 732
107th Congress                                                   Report
                                 SENATE
 2d Session                                                     107-316

======================================================================



 
          THE UNDERGROUND STORAGE TANK COMPLIANCE ACT OF 2002

                                _______
                                

                October 16, 2002.--Ordered to be printed

                                _______
                                

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

                              R E P O R T

                         [to accompany S. 1850]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Environment and Public Works, to which was 
referred a bill (S. 1850) to amend the Solid Waste Disposal Act 
to bring underground storage tanks into compliance with 
subtitle I of that Act, to promote cleanup of leaking 
underground storage tanks, to provide sufficient resources for 
such compliance and cleanup, and for other purposes, having 
considered the same reports favorably thereon with an amendment 
and recommends that the bill, as amended, do pass.

                    General Statement and Background

    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.
    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. The program required EPA to 
develop leak detection and prevention standards for underground 
storage tanks (USTs), and authorized the Agency to compel tank 
owners and operators to take corrective action to clean up 
leaking tanks and comply with standards for USTs, or to close 
them. States have largely taken the lead in implementing and 
enforcing the program requirements, including corrective action 
requirements.
    States receive Federal funds from the LUST Trust Fund, 
which is paid for by a one-tenth of one cent tax on all 
petroleum products, to carry out the requirements. This tax 
generates approximately $170 million per year, and the interest 
on the principal in the fund generates approximately $70 
million annually (roughly the amount of annual appropriations 
from the LUST Trust Fund). Amounts are appropriated each year 
from the Trust Fund for the States and EPA to implement and 
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 to seek reimbursement of costs 
expended from the Fund to clean up sites. The balance of the 
Trust Fund is approximately $1.3 billion. The annual 
appropriation from the LUST Trust Fund for fiscal year 2002 is 
expected to be approximately $72 million. Congress has 
appropriated approximately $10 million per year from general 
revenues for State implementation of leak prevention and 
detection programs. 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.
    While over a million leaking USTs have been closed under 
this program, EPA estimates that there are currently over 
740,000 active USTs containing petroleum products. Some of 
these tanks have leaks, causing potential harm to human health 
and the environment. A number of recent, high profile 
contamination cases have highlighted the problem. Methyl 
tertiary butyl ether (MTBE) has been detected at thousands of 
leaking UST sites. In some cases, drinking water wells have 
been closed due to these releases of MTBE. According to EPA, 
States have reported more than 400,000 confirmed releases from 
USTs. Cleanups have been initiated for approximately 357,000 
releases and almost 242,000 cleanups have been completed. In 
spite of this progress, many thousands of cleanups remain to be 
completed. EPA, States, and the private sector have suggested 
that lack of resources, both for cleanup and for inspections 
and enforcement, have limited efforts to fully address MTBE 
contamination and leaking USTs.
    S. 1850 strengthens the existing statutory framework for 
underground storage tanks. The bill amends Subtitle I to 
require that EPA distribute at least 80 percent 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.

                     Objectives of the Legislation

    On May 4, 2001, the U.S. General Accounting Office (GAO) 
released a report entitled ``Environmental Protection: Improved 
Inspections and Enforcement Would Better Ensure the Safety of 
Underground Storage Tanks.'' This report found that 89 percent 
of the total number of regulated tanks, or 616,865 tanks, 
received federally required equipment upgrades by the end of 
fiscal year 2000. In addition, GAO estimated that about 29 
percent of the regulated tanks, or 201,001 tanks, were not 
being operated or maintained properly, increasing the risk of 
soil and groundwater contamination.
    S. 1850 was crafted to improve the compliance of 
underground storage tanks nationwide. The legislation provides 
resources for the cleanup of tanks that have already leaked, 
but more importantly provides increased emphasis on leaked 
prevention so communities can be spared from the problems and 
expense that are often associated with leaking tanks, 
especially when drinking water supplies become contaminated.
    This legislation improves the current law by: requiring 
that all regulated underground storage tanks undergo onsite 
inspections every 2 years; requiring EPA to issue guidance on 
how to train operators of USTs; requiring States to develop 
operator training strategies; providing enforcement flexibility 
for UST owners that have operator training programs in place; 
providing EPA authority to prohibit fuel delivery to tanks that 
are not in compliance; requiring States to prepare 
implementation reports for bringing tanks owned by State and 
local governments into compliance; requiring Federal agencies 
to prepare implementation reports for bringing federally owned 
tanks into compliance; increasing funding for UST programs.

                      Section-by-Section Analysis

Section 1. Short Title
    Sets forth the short tile of the bill as the ``Underground 
Storage Tank Compliance Act of 2002.''
Sec. 2. Leaking Underground Storage Tanks

                                SUMMARY

    Section 2 gives 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. This section also provides for the allocation of funds 
to States by the Administrator.

                               DISCUSSION

    This section adds a new subsection (f) to Section 9004 of 
the Solid Waste Disposal Act to guarantee that States will 
receive a minimum of 80 percent of the annual appropriation 
from the LUST Trust Fund. This percentage 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. The committee expects EPA to distribute more than 
the statutory minimum of 80 percent of the appropriated LUST 
funds annually if the Agency's annual budgetary needs, 
including needs for implementation of the LUST program with 
respect to tanks within Tribal jurisdiction, are less than 20 
percent of appropriated funds.
    New subsection (f)(1)(A)(iii) 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. In making the determination of whether an owner or 
operator has the ability to pay, the State must take into 
consideration any funding received by the tank owner from the 
State.
    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. The committee intends that 
the distribution of Federal funding recognize the importance of 
enforcement and corrective action requirements to the 
protection of human health and the environment.
    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 utilized 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 tax 
revenue contributed to the Trust Fund from all sources within 
the State; the number of confirmed releases from federally 
regulated USTs; the number of federally regulated 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. The committee intends that any revisions to the 
current allocation process should maintain an inclusive process 
for EPA consultation with States to ensure that EPA obtains 
necessary information from States.
    Subsection (f)(3) requires distributions from the Trust 
Fund be made directly to the State agency and distributed in 
accordance with the cooperative agreement with EPA. Subsection 
(f)(4) prohibits the use of funds from the Trust Fund 
distributed under subsection (f)(1)(A)(iii) from being used for 
cost recovery by the Administrator under section 9006(h)(6).
Sec. 3. Inspection of Underground Storage Tanks

                                SUMMARY

    Section 3 directs the Administrator, or a State with an 
approved program, to require that all USTs regulated under 
Subtitle I undergo onsite inspections every 2 years. A June 
2000 report released by EPA entitled ``Report to Congress on a 
Compliance Plan for the Underground Storage Tank Program'' 
estimates that the cost of this bi-annual inspection 
requirements will be $35 million for each of the first 2 years 
and $20 million for every year after that. Section 9 authorizes 
that level of funding to pay for this inspection requirement.

                               DISCUSSION

    Section 3 creates a new section 9005(a) which requires the 
Administrator or a State with an approved UST program to 
inspect each UST not later than 2 years after the date of 
enactment and at least once every 2 years thereafter. The 
committee does not intend that this section prevent States from 
adopting more stringent or frequent UST inspection programs or 
from permitting States to maintain existing inspection programs 
that are more stringent or frequent than the requirements of 
subtitle I. Rather, this section establishes a minimum level of 
frequency, although States may require more frequent 
inspections provided a State's inspection program is not 
inconsistent with the provisions of the subtitle. States are 
encouraged to implement innovative methods to carry out the 
requirements of this section.
    The committee intends that the onsite inspections required 
under this section must include a comprehensive inspection of 
all readily accessible portions of each UST system, including 
equipment and records. The committee recognizes that a 
substantial portion of each UST system is installed below grade 
with a concrete covering. The committee does not intend that 
the onsite inspections required under this section involve 
inspection of these inaccessible components of each UST system, 
although visible above-ground signs of leakage from below-
ground fixtures should be sought. At the same time, a review of 
paperwork and records without physically inspecting the 
equipment would not satisfy the requirement in this section 
that the inspections be undertaken ``onsite.''
Sec. 4. Operator Training

                                SUMMARY

    Section 4 requires the Administrator to publish guidelines, 
after notice and comment, which specify methods for training 
operators of underground storage tanks. The guidelines must 
take into account existing training programs put into place by 
States and operators, the high turnover rate of operators, the 
frequent improvements in tank technology, and the nature of the 
businesses in which operators are engaged.
    From the date on which the Administrator publishes the 
guidelines, States have 2 years to develop and implement a 
strategy for the training of operators of underground storage 
tanks that are consistent with the guidelines that are 
developed in cooperation with owners and operators, and that 
take into consideration existing operator training programs. 
This section allows the Administrator to provide a grant up to 
$50,000 if the State develops and implements a State operator 
training strategy.

                               DISCUSSION

    The May 2001 GAO report concludes that 29 percent of USTs 
regulated under subtitle I are not being operated or maintained 
properly. After millions of dollars have been spent bringing 
USTs into compliance with Federal standards in order to reduce 
the threat of leaking and the resulting problems, leaking tanks 
due to operator error is unacceptable. Human errors will always 
occur, but steps must be taken to minimize their occurrence.
    The committee has received testimony that there are some 
operator training programs in effect at the retail level, but a 
29 percent failure rate demands that more emphasis be placed on 
this very important aspect. Section 4 creates a new section 
9010 in subtitle I to ensure that greater emphasis is placed on 
operator training. Section 9010(a) requires the Administrator 
to promulgate, within 2 years of enactment, guidelines that 
specify methods for training tank operators. The guidelines 
must take into account (A) State training programs in existence 
as of the date of publication of the guidelines; (B) training 
programs that are being employed by owners and operators as of 
the date of enactment of this paragraph; (C) the high turnover 
rate of operators; (D) the frequency of improvement in 
underground storage tank equipment technology; (E) the nature 
of the businesses in which the operators are engaged; and (F) 
such other factors as the Administrator determines to be 
necessary to carry out this section.
    The considerations explicitly direct the Administrator to 
take into account existing State and operator training programs 
because this program will be most successful if it builds on 
successful models that may exist. Also, the Administrator must 
take into consideration the nature of the business in which 
operators are engaged. The guidelines must take into 
consideration the high turnover rate of employees at retail 
gasoline stations and not require a level of training that 
would be impractical given the nature of the business.
    Section 9010(b) requires each State to develop and 
implement a strategy for the training of operators within 2 
years after the date in which the Administrator publishes the 
operator training guidelines required in subsection (a). The 
State strategies must be consistent with the EPA guidelines 
promulgated under subsection (a) and must take into 
consideration the training programs implemented by owners and 
operators as of the date of enactment of this subsection. 
Rather than penalizing States for not complying with this 
section, it is the intent of this new section to provide States 
with performance bonuses of up to $50,000 for compliance with 
this section.
Sec. 5. Remediation of MTBE Contamination

                                SUMMARY

    Section 5 authorizes the Administrator and States to carry 
out remediation of methyl tertiary butyl ether (MTBE) releases 
that present a threat to human health or welfare or the 
environment. Section 9 authorizes $125 million for each of 
fiscal years 2003 through 2007 for this purpose, for a total of 
$625 million over 5 years.

                               DISCUSSION

    Relatively low levels of MTBE can be detected in 
groundwater. The detection of MTBE, by taste and smell, can 
make the water unpalatable, but not necessarily harmful. 
Section 5 amends Section 9003 of the Solid Waste Disposal Act 
to clarify that the Administrator and the States may undertake 
corrective actions whenever the presence of MTBE in groundwater 
presents a threat to public welfare, even in situations where 
the level of MTBE is not so high as to present a threat to 
human health or when the release is not from an underground 
storage tank.
    New section 9003(h)(12) reconfirms the authority of the 
Administrator and the States to use funds from the LUST Trust 
Fund for the cleanup of sites contaminated by MTBE from leaking 
USTs. In addition, section 9003(h)(12) authorizes the 
Administrator and the States to conduct such cleanup activities 
using designated funds made available under new section 
9014(2)(B) from the LUST Trust Fund. In order to undertake a 
corrective action under this subsection, the Administrator or a 
State must still comply with the requirements of Section 
9003(h)(2) of the Solid Waste Disposal Act. States are to 
exercise this authority in accordance with their cooperative 
agreements.
Sec. 6. Release Compliance and Prevention

                                SUMMARY

    Section 6 provides a range of measures intended to promote 
and enhance the compliance and prevention of releases from 
underground storage tanks through a combination of mechanisms. 
Those mechanisms include increased funding for enforcement 
activities, increased focus on tanks owned by State and local 
governments, enforcement incentives for owners and operators, 
authority for the Environmental Protection Agency to prohibit 
the delivery of regulated substances to underground storage 
tanks, and the creation of a public record.

                               DISCUSSION

    Section 6(a) amends Subtitle I of the Solid Waste Disposal 
Act by creating a new Section 9011 giving States greater 
flexibility in their use of LUST funds. New Section 9011 
authorizes EPA and the States to use funds appropriated from 
the LUST Trust Fund to conduct inspections, issue orders, or 
bring actions under Subtitle I. Funding authorized under this 
section is for both formal enforcement actions, such as 
judicial actions and administrative orders, and related 
measures to secure compliance, such as notices of violation or 
warnings. This increased funding for inspections and 
enforcement-related activities will enable States and EPA to 
secure greater compliance with UST standards. Increased 
compliance will prevent future releases and resulting cleanup 
costs. Funds authorized under this provision may be used for 
cost recovery.
    This section does not affect current law on State authority 
under authorized programs or Federal authority to enforce the 
requirements of Subtitle I. Nor does this provision 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 inspection and enforcement related 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 receiving, and will continue to receive, from sources 
other than the LUST Trust Fund.
    In addition to authorizing funding for States and EPA for 
federally authorized programs, this section authorizes States 
to use funds to undertake inspection and enforcement related 
actions for State tank leak detection, prevention, and other 
requirements through State programs with requirements that are 
similar or identical to Subtitle I. State agencies currently 
receive funding from EPA from sources other than the LUST Trust 
Fund to undertake such 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-related 
activities by States should supplement funds that the States 
have been receiving, and will continue to receive.
    Section 6(b) adds new subsection (i) to section 9003 which 
requires States to submit to EPA a strategy to ensure 
compliance of tanks owned by State or local governments with 
the provisions of the subtitle. This section allows the 
Administrator to provide a grant up to $50,000 if the State 
develops the implementation report. Every UST in the Nation, 
whether owned by a private party or a State or local 
government, was required under Federal law to be upgraded or 
closed by December 22, 1998. According to the 2001 report by 
the General Accounting Office, a sizable portion of the USTs 
which have not been upgraded, as of 2001, were owned by State 
and local governments. The committee intends this section to 
provide incentives for these governmental entities to comply 
with the Federal UST requirements at the earliest possible 
date.
    Section 6(b) does not provide these governmental entities 
with an extension of the 1998 upgrade deadline. Rather, it 
mandates that these governmental entities provide EPA with a 
detailed report on the status of all publicly owned UST systems 
under their jurisdiction within 2 years of enactment, including 
a list of the locations of all non-compliant government-owned 
USTs. It is the committee's expectation that these governmental 
entities will strive to comply with the tank requirements 
rather than submit lengthy lists of noncompliant tanks.
    Section 6(c) provides enforcement flexibility to EPA when 
determining the terms of a compliance orders or the amount of a 
civil penalty. The Administrator may provide this leniency if 
the owner or operator has a history of operating underground 
storage tanks in accordance with applicable law or if they have 
implemented an operator training program. Conversely, the 
Administrator shall not provide leniency to owners and 
operators that have repeatedly violated Federal and State UST 
requirements. The intent of this section is not to penalize 
owners and operators for paperwork violations deemed to be 
minor.
    Section 6(d) provides the Administrator, or States with an 
approved program, with authority to prohibit the delivery of 
regulated substances to underground storage tanks that are not 
in compliance with a requirement or standard promulgated by the 
Administrator or a State. Prior to exercising this authority, 
EPA must promulgate regulations that describe the circumstances 
under which the authority may be used and the process by which 
the authority will be used consistently and fairly.
    New section 9006(f) authorizes the Administrator or a State 
to prohibit deliveries of motor fuels to USTs that are not in 
compliance with Federal or State UST regulations (so-called 
``red-tag'' authority). Such delivery prohibitions are an 
important tool in UST enforcement, as it imposes potential 
liability not just on the UST owner/operator but also on the 
supplier of the motor fuels being delivered to a non-compliant 
tank. States that have adopted such delivery prohibitions have 
witnessed an increase in UST compliance.
    It is possible that such delivery prohibitions, as well as 
the 1998 requirement to upgrade or close USTs, could result in 
the closure of motor fuel outlets in remote locations where 
alternative fueling locations are not readily at hand. 
Consequently, section 9006(f) adopts a temporary limitation on 
the use of delivery prohibitions for locations in areas where 
the closure of the outlet with the non-compliant UST would 
leave motorists with no other fueling alternative.
    This limitation, however, is not intended to prohibit the 
Administrator or a State from enforcing the 1998 UST standards 
against the owners and operators of such remote USTs. These UST 
owners/operators have had since 1986 to upgrade these USTs and 
have now been in violation of Federal and State law for 4 
years. The remote location of the UST is not an excuse for 
failure to upgrade the UST fuel leaking from such a tank is 
just as likely as any other UST to contaminate local water 
supplies.
    Therefore, the 180-day limitation on this authority is not 
intended to limit the Administrator's or a State's authority to 
close such remote location tanks immediately for failure to 
comply with Federal or State UST standards. Rather, the 
limitation restricts the Administrator's or a State's use of 
the delivery prohibition authority authorized by this section 
with respect to such remote USTs, and gives these UST owner/
operators an opportunity to bring tanks into compliance with 
the statute. This limitation only applies for 180 days after 
the Administrator or a State has given the UST owner/operator 
notice of non-compliance. After 180 days, the committee 
encourages the Administrator or a State to use delivery 
prohibition against the UST owner/operator if the UST has not 
yet been brought into compliance with Federal and State UST 
standards.
    The Administrator is directed to issue guidelines which 
define the term ``specified geographic areas'' and it is 
expected that the term would be defined narrowly. The committee 
expects that few USTs would qualify for this limitation and 
that the burden must be on the subject UST owner/operator to 
show that the closure of the subject UST would make motor fuel 
unavailable to motorists in a small town or area.
    Section 6(e) directs the Administrator to require States 
and Indian tribes to maintain, update at least annually, and 
make available to the public, a record of USTs regulated under 
this subtitle. EPA shall make each public record available to 
the public electronically.
Sec. 7. Federal Facilities

                                SUMMARY

    Section 7 requires the Administrator, in cooperation with 
Federal agencies which own or operate USTs or which manage land 
on which USTs are located, to review the status of compliance 
of those tanks within 1 year of enactment. Within 2 years of 
enactment, each Federal agency which owns or operates USTs or 
which manage land on which USTs are located must develop 
strategies to bring their tanks into compliance with applicable 
law.

                               DISCUSSION

    Compliance of all UST systems with the requirements of 
subtitle I is of paramount importance. The provisions of the 
bill focus equally on privately owned tanks and tanks owned by 
government entities. A tank owned by a unit of government or a 
tank which is located on Federal land must be held to the same 
standards as those tanks owned by private entities.
    To address this balance, section 7 adds a new section 
9007(c) which requires the Administrator, in cooperation with 
each Federal agency that owns or operates USTs or that manages 
land on which USTs are located to review and report on the 
compliance status of federally regulated tanks. While the 
outcome of the Federal UST program must be full compliance, it 
is important that sufficient information be collected in order 
to ensure that limited resources are being channeled toward the 
problem areas. Therefore, within 1 year of enactment, the 
Federal agencies are required to review and report on their 
compliance status. In addition, those same agencies must also 
submit to the Administrator an implementation report which 
lists each UST, which they own or which is located on their 
land, which is not in compliance with subtitle I and describe 
the actions that have been and will be taken to ensure 
compliance. This information must be made available to the 
public. The information will not shield tank owners from any 
penalties or actions to which they are subject under subtitle 
I.
    New section 9007(d) includes a provision which requires 
Federal facilities covered by section 9007(a) to be subject to 
the provisions of 6001(a). This new provision is intended to 
ensure that the requirements under the Solid Waste Disposal Act 
apply equally to private entities and Federal entities.
Sec. 8. Tanks Under the Jurisdiction of Indian Tribes

                                SUMMARY

    Section 8 requires the Administrator, in cooperation with 
Indian tribes, to develop and implement a strategy within 1 
year of enactment that prioritizes UST releases on Indian lands 
and takes necessary corrective actions with respect to those 
prioritized releases. Within 2 years of enactment, and every 2 
years thereafter, the Administrator shall submit to Congress a 
report that summarizes the status of implementation of the UST 
program on Indian lands.

                               DISCUSSION

    Section 8 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. 
1850, and every 2 years thereafter, 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 that 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. This bill is intended to 
promote the timely and effective response to contamination from 
leaking underground storage tanks within Tribal jurisdiction.
Sec. 9. State Authority

                                SUMMARY

    Section 9 clarifies that States have the authority to 
establish requirements that are more stringent than the 
requirements of Subtitle I.

                               DISCUSSION

    The Federal underground storage tank program has proven 
very effective at carrying out the goals of subtitle I. The 
success is often attributed to the effective relationship 
between the Federal Government and the States, whereby all but 
a few States implement the Federal program in a way that is 
consistent with the Federal program, but designed to be 
successful in a particular State. Section 9 adds a new section 
9013 to subtitle I which seeks to clarify the status quo, in 
which nothing prohibits a State from establishing a standard or 
requirement that is more stringent than Federal law.
Sec.10. Authorization of Appropriations

                                SUMMARY

    Section 10 authorizes appropriations for each of the 
various functions that are required in the legislation.

                               DISCUSSION

    Section 10 adds a new section 9014 to subtitle I of the 
Solid Waste Disposal Act. Section 9014(1) provides from general 
revenues an authorization of $25,000,000 for each of fiscal 
years 2003 through 2007 to carry out subtitle I (except the 
leaking underground storage tank program).
    New section 9014(2) provides an authorization for 
appropriation from the Leaking Underground Storage Tank Trust 
Fund for various purposes. The legislation authorizes 
$150,000,000 to carry out the leaking underground storage tank 
program; $125,000,000 for each of fiscal years 2003 through 
2007 for the remediation of MTBE contamination; $35,000,000 for 
each of fiscal years 2003 and 2004 and $20,000,000 for each of 
fiscal years 2005 through 2007 to carry out the biannual 
inspections required in new section 9005(a); and $50,000,000 
for fiscal years 2003 and $30,000,000 for each of fiscal years 
2004 through 2008 to carry out new section 9011.
    The authorization levels in this section are a significant 
increase from the levels which have been appropriated over the 
past several years. The increase in the authorization levels 
signifies the complexity and number of UST releases that exist 
currently and the shortfall of funding with which to address 
the problems. The balance in the Leaking Underground Storage 
Tank Trust Fund has grown every year. Not only does the Trust 
Fund continue to grow with receipts from the petroleum tax, the 
interest on the principal continues to pad the balance of the 
Fund. In fact, the historic appropriations for this program are 
roughly equal to the interest generated by the principal. It is 
the intent of this legislation to bring funding levels to a 
level that is more even with the annual inputs into the Fund.
Sec. 11. Conforming Amendments
Sec. 12. Technical Amendments
    These sections of the bill make conforming and technical 
amendments to the Solid Waste Disposal Act.

                          Legislative History

    On December 19, 2001, Senators Chafee, Carper, Smith of New 
Hampshire, Jeffords, and Inhofe introduced S. 1850, a bill to 
amend the Solid Waste Disposal Act to bring underground storage 
tanks into compliance with subtitle I of that Act, to promote 
cleanup of leaking underground storage tanks, to provide 
sufficient resources for such compliance and cleanup, and for 
other purposes. The Committee on Environment and Public Works 
conducted a hearing on S. 1850 on February 25, 2002 and the 
Subcommittee on Superfund, Toxics, Risk, and Waste Management 
conducted a hearing on May 8, 2002.
    S. 1850, as amended, was reported by the Committee on 
Environment and Public Works on July 25, 2002.

                                Hearings

    On February 25, 2002, the Committee on Environment and 
Public Works conducted a field hearing in Pascoag, Rhode Island 
to receive testimony on S. 1850, the Underground Storage Tank 
Compliance Act of 2001, and the impact of leaking underground 
storage tanks on local communities. The committee received 
testimony from Mr. George Reilly, Pascoag, RI; Mr. Michael 
Wallace, Pascoag, RI; Mr. Jan Reitsma, Director, Rhode Island 
Department of Environmental Management, Providence, RI; Hon. 
Scott Rabideau, Rhode Island State Representative, Harrisville, 
RI; Mr. Arthur J. DeBlois III, President & CEO, DB Companies, 
Inc., Providence, RI, on behalf of the Society of Independent 
Gasoline Marketers of America (SIGMA) and the National 
Association of Convenience Stores (NACS); and Mr. Jeff Kos, 
President, Environmental Council of Rhode Island, Providence, 
RI.
    On May 8, 2002, the Subcommittee on Superfund, Toxics, 
Risk, and Waste Management conducted a hearing to receive 
testimony on S. 1850, the Underground Storage Tank Compliance 
Act of 2001. The subcommittee received testimony from Hon. 
Marianne Horinko, Assistant Administrator, Office of Solid 
Waste and Emergency Response, U.S. Environmental Protection 
Agency, Washington, DC; Mr. John Stephenson, Director, Natural 
Resources and Environment, U.S. General Accounting Office, 
Washington, DC; Mr. Craig Perkins, Director of Environmental & 
Public Works Management, city of Santa Monica, Santa Monica, 
CA; Mr. Grant Cope, Staff Attorney, U.S. Public Interest 
Research Group, Washington, DC; Ms. Kathleen Stiller, ASTSWMO 
Tanks Subcommittee Chair, Delaware Department of Natural 
Resources and Environmental Control, New Castle, DE, on behalf 
of the Association of State and Territorial Solid Waste 
Management Officials (ASTSWMO); Mr. Arthur J. DeBlois III, 
President & CEO, DB Companies, Inc., Providence, RI, on behalf 
of the Society of Independent Gasoline Marketers of America 
(SIGMA) and the National Association of Convenience Stores 
(NACS); and Mr. Roger Brunner, Profits Center Manager, Zurich 
North America, East Lansing, MI.

                             Rollcall Votes

    On July 25, 2002, the Committee on Environment and Public 
Works met to consider S. 1850, the Underground Storage Tank 
Compliance Act of 2001. A manager's amendment offered by 
Senators Chafee and Jeffords was agreed to by voice vote.
    A first degree technical amendment offered by Senators 
Chafee and Jeffords, as amended, was agreed to by voice vote. A 
second degree amendment offered by Senators Smith of New 
Hampshire, Chafee and Jeffords to ensure that funds authorized 
for remediation of MTBE contamination need not be linked to 
underground storage tanks was agreed to by voice vote.
    An amendment offered by Senator Smith of New Hampshire to 
reauthorize and amend provisions relating to recycled oil 
liability under the Comprehensive Environmental Response, 
Liability, and Compensation Act (CERCLA) of 1980 failed to pass 
by a rollcall vote of 5 ayes to 11 nays with 3 not voting. 
Voting in favor were Senators Bond, Crapo, Inhofe, Smith of New 
Hampshire, and Voinovich. Voting against were Senators Baucus, 
Boxer, Carper, Chafee, Clinton, Corzine, Graham, Jeffords, 
Lieberman, Reid, and Wyden. Not voting were Senators Domenici, 
Specter, and Warner.
    An amendment offered by Senator Crapo to reaffirm the 
authority of States to regulate underground storage tanks on 
certain lands was agreed to by voice vote.
    An amendment offered by Senator Chafee (for Senator Wyden) 
to ensure that certain provisions applicable to Federal 
facilities apply with respect to Federal underground storage 
tanks was agreed to by voice vote. Senator Smith of New 
Hampshire asked to be recorded as voting ``no''.

                      Regulatory Impact Statement

    Section 11(b) of rule XXVI of the Standing Rules of the 
Senate requires publication of the report of the committee's 
estimate of the regulatory impact made by the bill as reported. 
No regulatory impact is expected by the passage of S. 1850. The 
bill will not affect the personal privacy of others.

                          Mandates Assessment

    In compliance with the Unfunded Mandates Reform Act of 1995 
(P.L. 104-4), the committee finds that the bill 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.

                          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, August 14, 2002.

Hon. James M. Jeffords, 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. 1850, the 
Underground Storage Tank Compliance Act of 2002.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Susanne S. 
Mehlman, who can be reached at 226-2860.
            Sincerely,
                                            Dan L. Crippen.
                              ----------                              


               Congressional Budget Office Cost Estimate

S. 1850, Underground Storage Tank Compliance Act of 2002, as ordered 
        reported by the Senate Committee on Environment and Public 
        Works on July 25, 2002
Summary
    S. 1850 would authorize the appropriation of funds to 
promote the cleanup of leaking underground storage tank (LUST) 
sites and the prevention of leaks at underground storage tank 
(UST) sites. The bill would authorize the appropriation of 
$1.675 billion from the LUST Trust Fund over the 2003-2007 
period for those purposes. This funding would be used by the 
Environmental Protection Agency (EPA) for grants to States for 
the cleanup and treatment of contamination at LUST sites, 
including contamination from methyl tertiary butyl ether (known 
as MTBE and used as an additive in some gasoline), and for 
enforcement and inspection activities at UST sites. In 
addition, S. 1850 would authorize the appropriation of $125 
million over the next 5 years for EPA to support compliance 
efforts at UST sites, including grants to States to develop 
leak detection programs.
    Assuming appropriation of the specified amounts, CBO 
estimates that implementing this legislation would cost about 
$1.7 billion over the 2003-2007 period. CBO also estimates that 
enactment of S. 1850 would have a negligible effect on receipts 
because the bill would allow EPA to impose civil penalties on 
certain UST operators that do not comply with EPA or State 
standards. Therefore, pay-as-you-go procedures would apply.
    S. 1850 contains no intergovernmental or private-sector 
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
    The estimated budgetary impact of S. 1850 is shown in the 
following table. For this estimate, CBO assumes that the 
authorized amounts will be appropriated for each year and that 
outlays will follow historical spending patterns for similar 
activities. The costs of this legislation fall within budget 
function 300 (natural resources and environment).


                                     By Fiscal Year, in Millions of Dollars
----------------------------------------------------------------------------------------------------------------
                                                                   2002    2003    2004    2005    2006    2007
----------------------------------------------------------------------------------------------------------------
                SPENDING SUBJECT TO APPROPRIATION
LUST and UST Spending Under Current Law:
    Budget Authority\1\.........................................      90       0       0       0       0       0
    Estimated Outlays...........................................      93      60      33      13       5       0
Proposed Changes LUST Grants to States:
    Authorization Level.........................................       0     150     150     150     150     150
    Estimated Outlays...........................................       0     128     150     150     150     150
EPA Support for UST:
    Authorization Level.........................................       0      25      25      25      25      25
    Estimated Outlays...........................................       0      21      25      25      25      25
Biannual Inspections of USTs:
    Authorization Level.........................................       0      35      35      20      20      20
    Estimated Outlays...........................................       0      30      35      22      20      20
MTBE Remediation:
    Authorization Level.........................................       0     125     125     125     125     125
    Estimated Outlays...........................................       0     106     125     125     125     125
Prevention and Compliance Grants:
    Authorization Level.........................................       0      50      30      30      30      30
    Estimated Outlays...........................................       0      43      33      30      30      30
Total Proposed Changes:
    Authorized Level............................................       0     385     365     350     350     350
    Estimated Outlays...........................................       0     328     368     352     350     350
LUST and UST Spending Under S. 1850:
    Authorization Level.........................................      90     385     365     350     350     350
    Estimated Outlays...........................................      93     388     401     365     355    350
----------------------------------------------------------------------------------------------------------------
\1\The 2002 level is the amount appropriated for EPA's LUST and UST programs in that year.

Pay-As-You-Go Considerations
    The Balanced Budget and Emergency Deficit Control Act sets 
up pay-as-you-go procedures for legislation affecting direct 
spending or receipts. Because the civil penalties that could be 
imposed under this bill are classified as receipts, pay-as-you-
go procedures would apply. Because States would mostly be 
responsible for implementing the LUST program, CBO estimates 
that any additional collection of civil penalties under the 
bill by EPA would be insignificant each year.
Intergovernmental and Private-Sector Impact
    S. 1850 contains no intergovernmental or private-sector 
mandates as defined in UMRA and would impose no costs on State, 
local, or tribal governments. The bill would benefit State, 
local, and tribal governments by doubling grants to States for 
the cleanup of LUST sites and other activities. Any costs to 
comply with the conditions of these grants would be voluntary.

Estimate Prepared By: Federal Costs: Susanne S. Mehlman; Impact 
on State, Local, and Tribal Governments: Elyse Goldman; Impact 
on the Private Sector: Jean Talarico.

Estimate Approved By: Peter H. Fontaine Deputy 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. 106-580, Dec. 29, 2000]

                     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. 9002. Notification and public records.
      * * * * * * *
[Sec. 9010. Authorization of appropriations.]
Sec. 9010. Operator training.
Sec. 9011. Use of funds for release prevention and compliance.
Sec. 9012. Tanks under the jurisdiction of Indian tribes.
Sec. 9013. State authority.
Sec. 9014. Authorization of appropriations.

                       definitions and exemptions

      Sec. 9001. [For the purposes of this subtitle--] In this 
subtitle:
            (1) Indian tribe.--
                    (A) In general.--The term ``Indian tribe'' 
                means any Indian tribe, band, nation, or other 
                organized group or community that is recognized 
                as being eligible for special programs and 
                services provided by the United States to 
                Indians because of their status as Indians.
                    (B) Inclusions.--The term ``Indian tribe'' 
                includes an Alaska Native village, as defined 
                in or established under the Alaska Native 
                Claims Settlement Act (43 U.S.C. 1601 et seq.).
            [(1)] (10) The term ``underground storage tank'' 
        means any one or combination of tanks (including 
        underground pipes connected thereto) which is used to 
        contain an accumulation of regulated substances, and 
        the volume of which (including the volume of the 
        underground pipes connected thereto) is 10 per centum 
        or more beneath the surface of the ground. Such term 
        does not include any--
                    (A) farm or residential tank of 1,100 
                gallons or less capacity used for storing motor 
                fuel for noncommercial purposes,
                    (B) tank used for storing heating oil for 
                consumptive use on the premises where stored,
                    (C) septic tank,
                    (D) pipeline facility (including gathering 
                lines)--
                            (i) which is regulated under 
                        chapter 601 of title 49, United States 
                        Code, or
                            (ii) which is an intrastate 
                        pipeline facility regulated under State 
                        laws as provided in chapter 601 of 
                        title 49, United States Code,
                and which is determined by the Secretary to be 
                connected to a pipeline or to be operated or 
                intended to be capable of operating at pipeline 
                pressure or as an integral part of a pipeline,
                    (E) surface impoundment, pit, pond, or 
                lagoon,
                    (F) storm water or waste water collection 
                system,
                    (G) flow-through process tank,
                    (H) liquid trap or associated gathering 
                lines directly related to oil or gas production 
                and gathering operations, or
                    (I) storage tank situated in an underground 
                area (such as a basement, cellar, mineworking, 
                drift, shaft, or tunnel) if the storage tank is 
                situated upon or above the surface of the 
                floor.
        The term ``underground storage tank'' shall not include 
        any pipes connected to any tank which is described in 
        subparagraphs (A) through (I).
            [(2)] (7) The term ``regulated substance'' means--
                    (A) any substance defined in section 
                101(14) of the Comprehensive Environmental 
                Response, Compensation, and Liability Act of 
                1980 (but not including any substance regulated 
                as a hazardous waste under subtitle C), and
                    (B) petroleum.
            [(3)] (4) 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
                    (B) in the case of any underground storage 
                tank in use before the date of enactment of the 
                Hazardous and Solid Waste Amendments of 1984, 
                but no longer in use on the date of enactment 
                of such Amendments, any person who owned such 
                tank immediately before the discontinuation of 
                its use.
            [(4)] (3) The term ``operator'' means any person in 
        control of, or having responsibility for, the daily 
        operation of the underground storage tank.
            [(5)] (8) The term ``release'' means any spilling, 
        leaking, emitting, discharging, escaping, leaching, or 
        disposing from an underground storage tank into ground 
        water, surface water or subsurface soils.
            [(6)] (5) The term ``person'' has the same meaning 
        as provided in section 1004(15), except that such term 
        includes a consortium, a joint venture, and a 
        commercial entity, and the United States Government.
            [(7)] (2) The term ``nonoperational storage tank'' 
        means any underground storage tank in which regulated 
        substances will not be deposited or from which 
        regulated substances will not be dispensed after the 
        date of the enactment of the Hazardous and Solid Waste 
        Amendments of 1984.
            [(8)] (6) The term ``petroleum'' means petroleum, 
        including crude oil or any fraction thereof which is 
        liquid at standard conditions of temperature and 
        pressure (60 degrees Fahrenheit and 14.7 pounds per 
        square inch absolute).
            (9) Trust fund.--The term `Trust Fund' means the 
        Leaking Underground Storage Tank Trust Fund established 
        by section 9508 of the Internal Revenue Code of 1986.

           *       *       *       *       *       *       *


                    notification and public records

      Sec. 9002. (a) Underground Storage Tanks.--(1) Within 18 
months after the date of enactment of the Hazardous and Solid 
Waste Amendments of 1984, each owner of an underground storage 
tank shall notify the State or local agency or department 
designated pursuant to subsection (b)(1) of the existence of 
such tank, specifying the age, size, type, location, and uses 
of such tank.
      (2)(A) For each underground storage tank taken out of 
operation after January 1, 1974, the owner of such tank shall, 
within eighteen months after the date of enactment of the 
Hazardous and Solid Waste Amendments of 1984, notify the State 
or local agency, or department designated pursuant to 
subsection (b)(1) of the existence of such tanks (unless the 
owner knows the tank subsequently was removed from the ground). 
The owner of a tank taken out of operation on or before January 
1, 1974, shall not be required to notify the State or local 
agency under this subsection.
      (B) Notice under subparagraph (A) shall specify, to the 
extent known to the owner--
            (i) the date the tank was taken out of operation,
            (ii) the age of the tank on the date taken out of 
        operation,
            (iii) the size, type and location of the tank, and
            (iv) the type and quantity of substances left 
        stored in such tank on the date taken out of operation.
      (3) Any owner which brings into use an underground 
storage tank after the initial notification period specified 
under paragraph (1), shall notify the designated State or local 
agency or department within thirty days of the existence of 
such tank, specifying the age, size, type, location and uses of 
such tank.
      (4) Paragraphs (1) through (3) of this subsection shall 
not apply to tanks for which notice was given pursuant to 
section 103(c) of the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980.
      (5) Beginning thirty days after the Administrator 
prescribes the form of notice pursuant to subsection (b)(2) and 
for eighteen months thereafter, any person who deposits 
regulated substances in an underground storage tank shall 
reasonably notify the owner or operator of such tank of the 
owner's notification requirements pursuant to this subsection.
      (6) Beginning thirty days after the Administrator issues 
new tank performance standards pursuant to section 9003(e) of 
this subtitle, any person who sells a tank intended to be used 
as an underground storage tank shall notify the purchaser of 
such tank of the owner's notification requirements pursuant to 
this subsection.
      (b) Agency Designation.--(1) Within one hundred and 
eighty days after the enactment of the Hazardous and Solid 
Waste Amendments of 1984, the Governors of each State shall 
designate the appropriate State agency or department or local 
agencies or departments to receive the notifications under 
subsection (a)(1), (2), or (3).
      (2) Within twelve months after the date of enactment of 
the Hazardous and Solid Waste Amendments of 1984, the 
Administrator, in consultation with State and local officials 
designated pursuant to subsection (b)(1), and after notice and 
opportunity for public comment, shall prescribe the form of the 
notice and the information to be included in the notifications 
under subsection (a)(1), (2), or (3). In prescribing the form 
of such notice, the Administrator shall take into account the 
effect on small businesses and other owners and operators.
      (c) State Inventories.--Each State shall make 2 separate 
inventories of all underground storage tanks in such State 
containing regulated substances. One inventory shall be made 
with respect to petroleum and one with respect to other 
regulated substances. In making such inventories, the State 
shall utilize and aggregate the data in the notification forms 
submitted pursuant to subsections (a) and (b) of this section. 
Each State shall submit such aggregated data to the 
Administrator not later than 270 days after the enactment of 
the Superfund Amendments and Reauthorization Act of 1986.
    (d) Public Record.--
            (1) In general.--The Administrator shall require 
        each State and Indian tribe that receives Federal funds 
        to carry out this subtitle to maintain, update at least 
        annually, and make available to the public, in such 
        manner and form as the Administrator shall prescribe 
        (after consultation with States and Indian tribes), a 
        record of underground storage tanks regulated under 
        this subtitle.
            (2) Considerations.--To the maximum extent 
        practicable, the public record of a State or Indian 
        tribe, respectively, shall include, for each year--
                    (A) the number, sources, and causes of 
                underground storage tank releases in the State 
                or tribal area;
                    (B) the record of compliance by underground 
                storage tanks in the State or tribal area 
                with--
                            (i) this subtitle; or
                            (ii) an applicable State program 
                        approved under section 9004; and
                    (C) data on the number of underground 
                storage tank equipment failures in the State or 
                tribal area.
            (3) Availability.--The Administrator shall make the 
        public record of each State and Indian tribe under this 
        section available to the public electronically.

       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)] 9001(7)(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.
      (2) Standards issued pursuant to subsection (e) of this 
section (entitled ``New Tank Performance Standards'') for 
underground storage tanks containing regulated substances 
defined in section [9001(2)(A)] 9001(7)(A) shall be effective 
not later than thirty-six months after the date of enactment of 
the Hazardous and Solid Waste Amendments of 1984.
      (3) Regulations issued pursuant to subsection (c) of this 
section (entitled ``Requirements'') and standards issued 
pursuant to subsection (d) of this section (entitled 
``Financial Responsibility'') for underground storage tanks 
containing regulated substances defined in section [9001(2)(A)] 
9001(7)(A) shall be effective not later than forty-eight months 
after the date of enactment of the Hazardous and Solid Waste 
Amendments of 1984.

           *       *       *       *       *       *       *

      (h) EPA Response Program for Petroleum.--
            (1) Before regulations.--Before the effective date 
        of regulations under subsection (c), the Administrator 
        (or a State pursuant to paragraph (7)) is authorized 
        to--
                    (A) require the owner or operator of an 
                underground storage tank to undertake 
                corrective action with respect to any release 
                of petroleum when the Administrator (or the 
                State) determines that such corrective action 
                will be done properly and promptly by the owner 
                or operator of the underground storage tank 
                from which the release occurs; or
                    (B) undertake corrective action with 
                respect to any release of petroleum into the 
                environment from an underground storage tank if 
                such action is necessary, in the judgment of 
                the Administrator (or the State), to protect 
                human health and the environment.
        The corrective action undertaken or required by this 
        paragraph shall be such as may be necessary to protect 
        human health and the environment. The Administrator 
        shall use funds in the [Leaking Underground Storage 
        Tank Trust Fund] Trust Fund for payment of costs 
        incurred for corrective action under subparagraph (B), 
        enforcement action under subparagraph (A), and cost 
        recovery under paragraph (6) of this subsection. 
        Subject to the priority requirements of paragraph (3), 
        the Administrator (or the State) shall give priority in 
        undertaking such actions under subparagraph (B) to 
        cases where the Administrator (or the State) cannot 
        identify a solvent owner or operator of the tank who 
        will undertake action properly.
            (2) After regulations.--Following the effective 
        date of regulations under subsection (c), all actions 
        or orders of the Administrator (or a State pursuant to 
        paragraph (7)) described in paragraph (1) of this 
        subsection shall be in conformity with such 
        regulations. Following such effective date, the 
        Administrator (or the State) may undertake corrective 
        action with respect to any release of petroleum into 
        the environment from an underground storage tank only 
        if such action is necessary, in the judgment of the 
        Administrator (or the State), to protect human health 
        and the environment and one or more of the following 
        situations exists:
                    (A) No person can be found, within 90 days 
                or such shorter period as may be necessary to 
                protect human health and the environment, who 
                is--
                            (i) an owner or operator of the 
                        tank concerned,
                            (ii) subject to such corrective 
                        action regulations, and
                            (iii) capable of carrying out such 
                        corrective action properly.
                    (B) A situation exists which requires 
                prompt action by the Administrator (or the 
                State) under this paragraph to protect human 
                health and the environment.
                    (C) Corrective action costs at a facility 
                exceed the amount of coverage required by the 
                Administrator pursuant to the provisions of 
                subsections (c) and (d)(5) of this section and, 
                considering the class or category of 
                underground storage tank from which the release 
                occurred, expenditures from the [Leaking 
                Underground Storage Tank Trust Fund] Trust Fund 
                are necessary to assure an effective corrective 
                action.
                    (D) The owner or operator of the tank has 
                failed or refused to comply with an order of 
                the Administrator under this subsection or 
                section 9006 or with the order of a State under 
                this subsection to comply with the corrective 
                action regulations.
            (3) Priority of corrective actions.--The 
        Administrator (or a State pursuant to paragraph (7)) 
        shall give priority in undertaking corrective actions 
        under this subsection, and in issuing orders requiring 
        owners or operators to undertake such actions, to 
        releases of petroleum from underground storage tanks 
        which pose the greatest threat to human health and the 
        environment.
            (4) Corrective action orders.--The Administrator is 
        authorized to issue orders to the owner or operator of 
        an underground storage tank to carry out subparagraph 
        (A) of paragraph (1) or to carry out regulations issued 
        under subsection (c)(4). A State acting pursuant to 
        paragraph (7) of this subsection is authorized to carry 
        out subparagraph (A) of paragraph (1) only until the 
        State's program is approved by the Administrator under 
        section 9004 of this subtitle. Such orders shall be 
        issued and enforced in the same manner and subject to 
        the same requirements as orders under section 9006.
            (5) Allowable corrective actions.--The corrective 
        actions undertaken by the Administrator (or a State 
        pursuant to paragraph (7)) under paragraph (1) or (2) 
        may include temporary or permanent relocation of 
        residents and alternative household water supplies. In 
        connection with the performance of any corrective 
        action under paragraph (1) or (2), the Administrator 
        may undertake an exposure assessment as defined in 
        paragraph (10) of this subsection or provide for such 
        an assessment in a cooperative agreement with a State 
        pursuant to paragraph (7) of this subsection. The costs 
        of any such assessment may be treated as corrective 
        action for purposes of paragraph (6), relating to cost 
        recovery.
            (6) Recovery of costs.--
                    (A) In general.--Whenever costs have been 
                incurred by the Administrator, or by a State 
                pursuant to paragraph (7), for undertaking 
                corrective action or enforcement action with 
                respect to the release of petroleum from an 
                underground storage tank, the owner or operator 
                of such tank shall be liable to the 
                Administrator or the State for such costs. The 
                liability under this paragraph shall be 
                construed to be the standard of liability which 
                obtains under section 311 of the Federal Water 
                Pollution Control Act.
                    (B) Recovery.--In determining the equities 
                for seeking the recovery of costs under 
                subparagraph (A), the Administrator (or a State 
                pursuant to paragraph (7) of this subsection) 
                may consider the amount of financial 
                responsibility required to be maintained under 
                subsections (c) and (d)(5) of this section and 
                the factors considered in establishing such 
                amount under subsection (d)(5).
                    (C) Effect on liability.--
                            (i) No transfers of liability.--No 
                        indemnification, hold harmless, or 
                        similar agreement or conveyance shall 
                        be effective to transfer from the owner 
                        or operator of any underground storage 
                        tank or from any person who may be 
                        liable for a release or threat of 
                        release under this subsection, to any 
                        other person the liability imposed 
                        under this subsection. Nothing in this 
                        subsection shall bar any agreement to 
                        insure, hold harmless, or indemnify a 
                        party to such agreement for any 
                        liability under this section.
                            (ii) No bar to cause of action.--
                        Nothing in this subsection, including 
                        the provisions of clause (i) of this 
                        subparagraph, shall bar a cause of 
                        action that an owner or operator or any 
                        other person subject to liability under 
                        this section, or a guarantor, has or 
                        would have, by reason of subrogation or 
                        otherwise against any person.
                    (D) Facility.--For purposes of this 
                paragraph, the term ``facility'' means, with 
                respect to any owner or operator, all 
                underground storage tanks used for the storage 
                of petroleum which are owned or operated by 
                such owner or operator and located on a single 
                parcel of property (or on any contiguous or 
                adjacent property).
            (7) State authorities.--
                    (A) General.--A State may exercise the 
                authorities in paragraphs [(1) and (2) of this 
                subsection] paragraphs (1), (2), and (12), 
                subject to the terms and conditions of 
                paragraphs (3), (5), (9), (10), and (11)[, and 
                including the authorities of paragraphs (4), 
                (6), and (8) of this subsection] and the 
                authority under sections 9005(a) and 9011 and 
                paragraphs (4), (6), and (8), if--
                            (i) the Administrator determines 
                        that the State has the capabilities to 
                        carry out effective corrective actions 
                        and enforcement activities; and
                            (ii) the Administrator enters into 
                        a cooperative agreement with the State 
                        setting out the actions to be 
                        undertaken by the State.
                The Administrator may provide funds from the 
                [Leaking Underground Storage Tank Trust Fund] 
                Trust Fund for the reasonable costs of the 
                State's actions under the cooperative 
                agreement.
                    (B) Cost share.--Following the effective 
                date of the regulations under subsection (c) of 
                this section, the State shall pay 10 per centum 
                of the cost of corrective actions undertaken 
                either by the Administrator or by the State 
                under a cooperative agreement, except that the 
                Administrator may take corrective action at a 
                facility where immediate action is necessary to 
                respond to an imminent and substantial 
                endangerment to human health or the environment 
                if the State fails to pay the cost share.
            (8) Emergency procurement powers.--Notwithstanding 
        any other provision of law, the Administrator may 
        authorize the use of such emergency procurement powers 
        as he deems necessary.
            (9) Definition of owner or operator.--
                    (A) In general.--As used in this subtitle, 
                the terms ``owner'' and ``operator'' do not 
                include a person that, without participating in 
                the management of an underground storage tank 
                and otherwise not engaged in petroleum 
                production, refining, or marketing, holds 
                indicia of ownership primarily to protect the 
                person's security interest.
                    (B) Security interest holders.--The 
                provisions regarding holders of security 
                interests in subparagraphs (E) through (G) of 
                section 101(20) and the provisions regarding 
                fiduciaries at section 107(n) of the 
                Comprehensive Environmental Response, 
                Compensation, and Liability Act of 1980 shall 
                apply in determining a person's liability as an 
                owner or operator of an underground storage 
                tank for the purposes of this subtitle.
                    (C) Effect on rule.--Nothing in 
                subparagraph (B) shall be construed as 
                modifying or affecting the final rule issued by 
                the Administrator on September 7, 1995 (60 Fed. 
                Reg. 46,692), or as limiting the authority of 
                the Administrator to amend the final rule, in 
                accordance with applicable law. The final rule 
                in effect on the date of enactment of this 
                subparagraph shall prevail over any 
                inconsistent provision regarding holders of 
                security interests in subparagraphs (E) through 
                (G) of section 101(20) or any inconsistent 
                provision regarding fiduciaries in section 
                107(n) of the Comprehensive Environmental 
                Response, Compensation, and Liability Act of 
                1980. Any amendment to the final rule shall be 
                consistent with the provisions regarding 
                holders of security interests in subparagraphs 
                (E) through (G) of section 101(20) and the 
                provisions regarding fiduciaries in section 
                107(n) of the Comprehensive Environmental 
                Response, Compensation, and Liability Act of 
                1980. This subparagraph does not preclude 
                judicial review of any amendment of the final 
                rule made after the date of enactment of this 
                subparagraph.
            (10) Definition of exposure assessment.--As used in 
        this subsection, the term ``exposure assessment'' means 
        an assessment to determine the extent of exposure of, 
        or potential for exposure of, individuals to petroleum 
        from a release from an underground storage tank based 
        on such factors as the nature and extent of 
        contamination and the existence of or potential for 
        pathways of human exposure (including ground or surface 
        water contamination, air emissions, and food chain 
        contamination), the size of the community within the 
        likely pathways of exposure, and the comparison of 
        expected human exposure levels to the short-term and 
        long-term health effects associated with identified 
        contaminants and any available recommended exposure or 
        tolerance limits for such contaminants. Such assessment 
        shall not delay corrective action to abate immediate 
        hazards or reduce exposure.
            (11) Facilities without financial responsibility.--
        At any facility where the owner or operator has failed 
        to maintain evidence of financial responsibility in 
        amounts at least equal to the amounts established by 
        subsection (d)(5)(A) of this section (or a lesser 
        amount if such amount is applicable to such facility as 
        a result of subsection (d)(5)(B) of this section) for 
        whatever reason the Administrator shall expend no 
        monies from the [Leaking Underground Storage Tank Trust 
        Fund] Trust Fund to clean up releases at such facility 
        pursuant to the provisions of paragraph (1) or (2) of 
        this subsection. At such facilities the Administrator 
        shall use the authorities provided in subparagraph (A) 
        of paragraph (1) and paragraph (4) of this subsection 
        and section 9006 of this subtitle to order corrective 
        action to clean up such releases. States acting 
        pursuant to paragraph (7) of this subsection shall use 
        the authorities provided in subparagraph (A) of 
        paragraph (1) and paragraph (4) of this subsection to 
        order corrective action to clean up such releases. 
        Notwithstanding the provisions of this paragraph, the 
        Administrator may use monies from the fund to take the 
        corrective actions authorized by paragraph (5) of this 
        subsection to protect human health at such facilities 
        and shall seek full recovery of the costs of all such 
        actions pursuant to the provisions of paragraph (6)(A) 
        of this subsection and without consideration of the 
        factors in paragraph (6)(B) of this subsection. Nothing 
        in this paragraph shall prevent the Administrator (or a 
        State pursuant to paragraph (7) of this subsection) 
        from taking corrective action at a facility where there 
        is no solvent owner or operator or where immediate 
        action is necessary to respond to an imminent and 
        substantial endangerment of human health or the 
        environment.
            (12) Remediation of mtbe contamination.--
                    (A) In general.--The Administrator and the 
                States may use funds made available under 
                section 9014(2)(B) to carry out corrective 
                actions with respect to a release of methyl 
                tertiary butyl ether that presents a threat to 
                human health or welfare or the environment.
                    (B) Applicable authority.--The 
                Administrator or a State shall carry out 
                subparagraph (A)--
                            (i) in accordance with paragraph 
                        (2), except that a release with respect 
                        to which a corrective action is carried 
                        out under subparagraph (A) shall not be 
                        required to be from an underground 
                        storage tank; and
                            (ii) in the case of a State, in 
                        accordance with a cooperative agreement 
                        entered into by the Administrator and 
                        the State under paragraph (7).

           *       *       *       *       *       *       *


                       approval of state programs

      Sec. 9004. (a) Elements of State Program.--Beginning 30 
months after the date of enactment of the Hazardous and Solid 
Waste Amendments of 1984, any State may, submit an underground 
storage tank release detection, prevention, and correction 
program for review and approval by the Administrator. The 
program may cover tanks used to store regulated substances 
referred to [in 9001(2) (A) or (B) or both] in subparagraph (A) 
or (B) of section 9001(7). A State program may be approved by 
the Administrator under this section only if the State 
demonstrates that the State program includes the following 
requirements and standards and provides for adequate 
enforcement of compliance with such requirements and 
standards--

           *       *       *       *       *       *       *

    (f) Trust Fund Distribution.--
            (1) In general.--
                    (A) Amount and permitted uses of 
                distribution.--The Administrator shall 
                distribute to States not less than 80 percent 
                of the funds from the Trust Fund that are made 
                available to the Administrator under section 
                9014(2)(A) for each fiscal year for use in 
                paying the reasonable costs, incurred under a 
                cooperative agreement with any State, of--
                            (i) actions taken by the State 
                        under section 9003(h)(7)(A);
                            (ii) necessary administrative 
                        expenses, as determined by the 
                        Administrator, that are directly 
                        related to corrective action and 
                        compensation programs under subsection 
                        (c)(1);
                            (iii) any corrective action and 
                        compensation program carried out under 
                        subsection (c)(1) for a release from an 
                        underground storage tank regulated 
                        under this subtitle to the extent that, 
                        as determined by the State in 
                        accordance with guidelines developed 
                        jointly by the Administrator and the 
                        State, the financial resources of the 
                        owner or operator of the underground 
                        storage tank (including resources 
                        provided by a program in accordance 
                        with subsection (c)(1)) are not 
                        adequate to pay the cost of a 
                        corrective action without significantly 
                        impairing the ability of the owner or 
                        operator to continue in business;
                            (iv) enforcement by the State or a 
                        local government of State or local 
                        regulations pertaining to underground 
                        storage tanks regulated under this 
                        subtitle; or
                            (v) State or local corrective 
                        actions carried out under regulations 
                        promulgated under section 9003(c)(4).
                    (B) Use of funds for enforcement.--In 
                addition to the uses of funds authorized under 
                subparagraph (A), the Administrator may use 
                funds from the Trust Fund that are not 
                distributed to States under subparagraph (A) 
                for enforcement of any regulation promulgated 
                by the Administrator under this subtitle.
                    (C) Prohibited uses.--Except as provided in 
                subparagraph (A)(iii), under any similar 
                requirement of a State program approved under 
                this section, or in any similar State or local 
                provision as determined by the Administrator, 
                funds provided to a State by the Administrator 
                under subparagraph (A) shall not be used by the 
                State to provide financial assistance to an 
                owner or operator to meet any requirement 
                relating to underground storage tanks under 
                part 280 of title 40, Code of Federal 
                Regulations (as in effect on the date of 
                enactment of this subsection).
            (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.
                    (B) Revisions to process.--The 
                Administrator may revise the allocation process 
                referred to in subparagraph (A) with respect to 
                a State only after--
                            (i) consulting with--
                                    (I) State agencies 
                                responsible for overseeing 
                                corrective action for releases 
                                from underground storage tanks;
                                    (II) owners; and
                                    (III) operators; and
                            (ii) taking into consideration, at 
                        a minimum--
                                    (I) the total tax revenue 
                                contributed to the Trust Fund 
                                from all sources within the 
                                State;
                                    (II) the number of 
                                confirmed releases from 
                                federally regulated underground 
                                storage tanks in the State;
                                    (III) the number of 
                                federally regulated underground 
                                storage tanks in the State;
                                    (IV) the percentage of the 
                                population of the State that 
                                uses groundwater for any 
                                beneficial purpose;
                                    (V) the performance of the 
                                State in implementing and 
                                enforcing the program;
                                    (VI) the financial needs of 
                                the State; and
                                    (VII) the ability of the 
                                State to use the funds referred 
                                to in subparagraph (A) in any 
                                year.
            (3) Distributions to state agencies.--Distributions 
        from the Trust Fund under this subsection shall be made 
        directly to a State agency that--
                    (A) enters into a cooperative agreement 
                referred to in paragraph (2)(A); or
                    (B) is enforcing a State program approved 
                under this section.
            (4) Cost recovery prohibition.--Funds from the 
        Trust Fund provided by States to owners or operators 
        under paragraph (1)(A)(iii) shall not be subject to 
        cost recovery by the Administrator under section 
        9003(h)(6).

        INSPECTIONS, MONITORING, TESTING, AND CORRECTIVE ACTION

      Sec. 9005. (a) Inspection Requirements.--Not later than 2 
years after the date of enactment of the Underground Storage 
Tank Compliance Act of 2002, and at least once every 2 years 
thereafter, the Administrator or a State with a program 
approved under section 9004, as appropriate, shall require that 
all underground storage tanks regulated under this subtitle 
undergo onsite inspections for compliance with regulations 
promulgated under section 9003(c).
      [(a)] (b) Furnishing Information.--For the purposes of 
developing or assisting in the development of any regulation, 
conducting any 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--
            (1) to enter at reasonable times any establishment 
        or other place where an underground storage tank is 
        located;
            (2) to inspect and obtain samples from any person 
        of any regulated substances contained in such tank;
            (3) to conduct monitoring or testing of the tanks, 
        associated equipment, contents, or surrounding soils, 
        air, surface water or ground water, and
            (4) to take corrective action.
Each such inspection shall be commenced and completed with 
reasonable promptness.
      [(b)] (c) 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.
      (2) Any person not subject to the provisions of section 
1905 of title 18 of the United States Code who knowingly and 
willfully divulges or discloses any information entitled to 
protection under this subsection shall, upon conviction, be 
subject to a fine of not more than $5,000 or to imprisonment 
not to exceed one year, or both.
      (3) In submitting data under this subtitle, a person 
required to provide such data may--
            (A) designate the data which such person believes 
        is entitled to protection under this subsection, and
            (B) submit such designated data separately from 
        other data submitted under this subtitle.
A designation under this paragraph shall be made in writing and 
in such manner as the Administrator may prescribe.
      (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).

           *       *       *       *       *       *       *


                          federal enforcement

      Sec. 9006. (a) * * *

           *       *       *       *       *       *       *

    (e) Incentives for Performance.--In determining the terms 
of a compliance order under subsection (a), or the amount of a 
civil penalty under subsection (d), the Administrator, or a 
State under a program approved under section 9004, may take 
into consideration whether an owner or operator--
            (1) has a history of operating underground storage 
        tanks of the owner or operator in accordance with--
                    (A) this subtitle; or
                    (B) a State program approved under section 
                9004;
            (2) has repeatedly violated--
                    (A) this subtitle; or
                    (B) a State program approved under section 
                9004; or
            (3) has implemented a program, consistent with 
        guidelines published under section 9010, that provides 
        training to persons responsible for operating any 
        underground storage tank of the owner or operator.
    (f) Authority To Prohibit Certain Deliveries.--
            (1) In general.--Subject to paragraph (2), 
        beginning 180 days after the date of enactment of this 
        subsection, the Administrator or a State may prohibit 
        the delivery of regulated substances to underground 
        storage tanks that are not in compliance with--
                    (A) a requirement or standard promulgated 
                by the Administrator under section 9003; or
                    (B) a requirement or standard of a State 
                program approved under section 9004.
            (2) Limitations.--
                    (A) Specified geographic areas.--Subject to 
                subparagraph (B), under paragraph (1), the 
                Administrator or a State shall not prohibit a 
                delivery if the prohibition would jeopardize 
                the availability of, or access to, fuel in any 
                specified geographic area.
                    (B) Applicability of limitation.--The 
                limitation under subparagraph (A) shall apply 
                only during the 180-day period following the 
                date of a determination by the Administrator 
                that exercising the authority of paragraph (1) 
                is limited by subparagraph (A).
                    (C) Guidelines.--Not later than 18 months 
                after the date of enactment of this subsection, 
                the Administrator shall issue guidelines that 
                define the term `specified geographic area' for 
                the purpose of subparagraph (A).
            (3) Authority to issue guidelines.--Subject to 
        paragraph (2)(C), the Administrator, after consultation 
        with States, may issue guidelines for carrying out this 
        subsection.
            (4) Enforcement, compliance, and penalties.--The 
        Administrator may use the authority under the 
        enforcement, compliance, or penalty provisions of this 
        subtitle to carry out this subsection.
            (5) Effect on state authority.--Nothing in this 
        subsection affects the authority of a State to prohibit 
        the delivery of a regulated substance to an underground 
        storage tank.

           *       *       *       *       *       *       *


                           federal facilities

      Sec. 9007. (a) * * *

           *       *       *       *       *       *       *

    (c) Review of, and Report on, Federal Underground Storage 
Tanks.--
            (1) Review.--Not later than 1 year after the date 
        of enactment of this subsection, the Administrator, in 
        cooperation with each Federal agency that owns or 
        operates 1 or more underground storage tanks or that 
        manages land on which 1 or more underground storage 
        tanks are located, shall review the status of 
        compliance of those underground storage tanks with this 
        subtitle.
            (2) Implementation report.--
                    (A) In general.--Not later than 2 years 
                after the date of enactment of this subsection, 
                each Federal agency described in paragraph (1) 
                shall submit to the Administrator and to each 
                State in which an underground storage tank 
                described in paragraph (1) is located an 
                implementation report that--
                            (i) lists each underground storage 
                        tank described in paragraph (1) that, 
                        as of the date of submission of the 
                        report, is not in compliance with this 
                        subtitle; and
                            (ii) describes the actions that 
                        have been and will be taken to ensure 
                        compliance by the underground storage 
                        tank with this subtitle.
                    (B) Public availability.--The Administrator 
                shall make each report received under 
                subparagraph (A) available to the public on the 
                Internet.
            (3) Not a safe harbor.--This subsection does not 
        relieve any person from any obligation or requirement 
        under this subtitle.
    (d) Applicability of Certain Requirements.--Section 6001(a) 
shall apply to each department, agency, and instrumentality 
covered by subsection (a).

           *       *       *       *       *       *       *


                   study of underground storage tanks

      Sec. 9009. (a) Petroleum Tanks.--Not later than twelve 
months after the date of enactment of the Hazardous and Solid 
Waste Amendments of 1984, the Administrator shall complete a 
study of underground storage tanks used for the storage of 
regulated substances defined in section [9001(2)(B)] 
9001(7)(B).
      (b) Other Tanks.--Not later than thirty-six months after 
the date of enactment of the Hazardous and Solid Waste 
Amendments of 1984, the Administrator shall complete a study of 
all other underground storage tanks.
      (c) Elements of Studies.--The studies under subsections 
(a) and (b) shall include an assessment of the ages, types 
(including methods of manufacture, coatings, protection 
systems, the compatibility of the construction materials and 
the installation methods) and locations (including the climate 
of the locations) of such tanks; soil conditions, water tables, 
and the hydrogeology of tank locations; the relationship 
between the foregoing factors and the likelihood of releases 
from underground storage tanks; the effectiveness and costs of 
inventory systems, tank testing, and leak detection systems; 
and such other factors as the Administrator deems appropriate.
      (d) Farm and Heating Oil Tanks.--Not later than thirty-
six months after the date of enactment of the Hazardous and 
Solid Waste Amendments of 1984, the Administrator shall conduct 
a study regarding the tanks referred to in section [9001(1) (A) 
and (B)] subparagraphs (A) and (B) of section 9001(10). Such 
study shall include estimates of the number and location of 
such tanks and an analysis of the extent to which there may be 
releases or threatened releases from such tanks into the 
environment.

           *       *       *       *       *       *       *


SEC. 9010. OPERATOR TRAINING.

    (a) Guidelines.--
            (1) In general.--Not later than 2 years after the 
        date of enactment of the Underground Storage Tank 
        Compliance Act of 2002, in cooperation with States, 
        owners, and operators, the Administrator shall publish 
        in the Federal Register, after public notice and 
        opportunity for comment, guidelines that specify 
        methods for training operators of underground storage 
        tanks.
            (2) Considerations.--The guidelines described in 
        paragraph (1) shall take into account--
                    (A) State training programs in existence as 
                of the date of publication of the guidelines;
                    (B) training programs that are being 
                employed by owners and operators as of the date 
                of enactment of this paragraph;
                    (C) the high turnover rate of operators;
                    (D) the frequency of improvement in 
                underground storage tank equipment technology;
                    (E) the nature of the businesses in which 
                the operators are engaged; and
                    (F) such other factors as the Administrator 
                determines to be necessary to carry out this 
                section.
    (b) State Programs.--
            (1) In general.--Not later than 2 years after the 
        date on which the Administrator publishes the 
        guidelines under subsection (a)(1), each State shall 
        develop and implement a strategy for the training of 
        operators of underground storage tanks that is 
        consistent with paragraph (2).
            (2) Requirements.--A State strategy described in 
        paragraph (1) shall--
                    (A) be consistent with subsection (a);
                    (B) be developed in cooperation with owners 
                and operators; and
                    (C) take into consideration training 
                programs implemented by owners and operators as 
                of the date of enactment of this subsection.
            (3) Financial incentive.--The Administrator may 
        award to a State that develops and implements a 
        strategy described in paragraph (1), in addition to any 
        funds that the State is entitled to receive under this 
        subtitle, not more than $50,000, to be used to carry 
        out the strategy.

SEC. 9011. USE OF FUNDS FOR RELEASE PREVENTION AND COMPLIANCE.

    Funds made available under section 9014(2)(D) from the 
Trust Fund may be used to conduct inspections, issue orders, or 
bring actions under this subtitle--
            (1) by a State, in accordance with a grant or 
        cooperative agreement with the Administrator, of State 
        regulations pertaining to underground storage tanks 
        regulated under this subtitle; and
            (2) by the Administrator, under this subtitle 
        (including under a State program approved under section 
        9004).''.
    (b) Government-Owned Tanks.--Section 9003 of the Solid 
Waste Disposal Act (42 U.S.C. 6991b) is amended by adding at 
the end the following:
    (i) Government-Owned Tanks.--
            (1) Implementation report.--
                    (A) In general.--Not later than 2 years 
                after the date of enactment of this subsection, 
                each State shall submit to the Administrator an 
                implementation report that--
                            (i) lists each underground storage 
                        tank described in subparagraph (B) in 
                        the State that, as of the date of 
                        submission of the report, is not in 
                        compliance with this subtitle; and
                            (ii) describes the actions that 
                        have been and will be taken to ensure 
                        compliance by the underground storage 
                        tank listed under clause (i) with this 
                        subtitle.
                    (B) Underground storage tank.--An 
                underground storage tank described in this 
                subparagraph is an underground storage tank 
                that is--
                            (i) regulated under this subtitle; 
                        and
                            (ii) owned or operated by the State 
                        government or any local government.
                    (C) Public availability.--The Administrator 
                shall make each report received under 
                subparagraph (A) available to the public on the 
                Internet.
            (2) Financial incentive.--The Administrator may 
        award to a State that develops an implementation report 
        described in paragraph (1), in addition to any funds 
        that the State is entitled to receive under this 
        subtitle, not more than $50,000, to be used to carry 
        out the implementation report.
            (3) Not a safe harbor.--This subsection does not 
        relieve any person from any obligation or requirement 
        under this subtitle.''.
    (c) Incentives for Performance.--Section 9006 of the Solid 
Waste Disposal Act (42 U.S.C. 6991e) is amended by adding at 
the end the following:
    (e) Incentives for Performance.--In determining the terms 
of a compliance order under subsection (a), or the amount of a 
civil penalty under subsection (d), the Administrator, or a 
State under a program approved under section 9004, may take 
into consideration whether an owner or operator--
            (1) has a history of operating underground storage 
        tanks of the owner or operator in accordance with--
                    (A) this subtitle; or
                    (B) a State program approved under section 
                9004;
            (2) has repeatedly violated--
                    (A) this subtitle; or
                    (B) a State program approved under section 
                9004; or
            (3) has implemented a program, consistent with 
        guidelines published under section 9010, that provides 
        training to persons responsible for operating any 
        underground storage tank of the owner or operator.

SEC. 9012. TANKS UNDER THE JURISDICTION OF INDIAN TRIBES.

    (a) In General.--The Administrator, in coordination with 
Indian tribes, shall--
            (1) not later than 1 year after the date of 
        enactment of this section, develop and implement a 
        strategy--
                    (A) giving priority to releases that 
                present the greatest threat to human health or 
                the environment, to take necessary corrective 
                action in response to releases from leaking 
                underground storage tanks located wholly within 
                the boundaries of--
                            (i) an Indian reservation; or
                            (ii) any other area under the 
                        jurisdiction of an Indian tribe; and
                    (B) to implement and enforce requirements 
                concerning underground storage tanks located 
                wholly within the boundaries of--
                            (i) an Indian reservation; or
                            (ii) any other area under the 
                        jurisdiction of an Indian tribe;
            (2) not later than 2 years after the date of 
        enactment of this section and every 2 years thereafter, 
        submit to Congress a report that summarizes the status 
        of implementation and enforcement of the underground 
        storage tank program in areas located wholly within--
                    (A) the boundaries of Indian reservations; 
                and
                    (B) any other areas under the jurisdiction 
                of an Indian tribe; and
            (3) make the report described in paragraph (2) 
        available to the public on the Internet.
    (b) Not a Safe Harbor.--This section does not relieve any 
person from any obligation or requirement under this subtitle.
    (c) State Authority.--Nothing in this section applies to 
any underground storage tank that is located in an area under 
the jurisdiction of a State, or that is subject to regulation 
by a State, as of the date of enactment of this section.

SEC. 9013. STATE AUTHORITY.

    Nothing in this subtitle precludes a State from 
establishing any requirement that is more stringent than a 
requirement under this subtitle.''.

SEC. 9014. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the 
Administrator--
            (1) to carry out subtitle I (except sections 
        9003(h), 9005(a), and 9011) $25,000,000 for each of 
        fiscal years 2003 through 2007; and
            (2) from the Trust Fund, notwithstanding section 
        9508(c)(1) of the Internal Revenue Code of 1986--
                    (A) to carry out section 9003(h) (except 
                section 9003(h)(12)) $150,000,000 for each of 
                fiscal years 2003 through 2007;
                    (B) to carry out section 9003(h)(12), 
                $125,000,000 for each of fiscal years 2003 
                through 2007;
                    (C) to carry out section 9005(a)--
                            (i) $35,000,000 for each of fiscal 
                        years 2003 and 2004; and
                            (ii) $20,000,000 for each of fiscal 
                        years 2005 through 2008; and
                    (D) to carry out section 9011--
                            (i) $50,000,000 for fiscal year 
                        2003; and
                            (ii) $30,000,000 for each of fiscal 
                        years 2004 through 2008.

           *       *       *       *       *       *       *


                                       
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