affected states and local governments (including direct compliance
costs, notification costs, and state program costs) are approximately
$9 million. This is not considered to be a substantial compliance cost
under federalism requirements. Thus, EO 13132 does not apply to this
action.
    In the spirit of Executive Order 13132, and consistent with EPA
policy to promote communications between EPA and State and local
governments, EPA specifically solicits comment on this proposed action
from State and local officials.

F. Executive Order 13175: Consultation and Coordination With Indian
Tribal Governments

    Subject to the Executive Order 13175 (65 FR 67249, November 9,
2000) EPA may not issue a regulation that has tribal implications, that
imposes substantial direct compliance costs, and that is not required
by statute, unless the Federal government provides the funds necessary
to pay the direct compliance costs incurred by tribal governments, or
EPA consults with tribal officials early in the process of developing
the proposed regulation and develops a tribal summary impact statement.
    EPA concluded that this action will have tribal implications to the
extent that tribally-owned entities with UST systems on Indian country
would be affected. However, it will neither impose substantial direct
compliance costs on tribal governments, nor preempt tribal law. Total
annualized costs for tribally-owned UST systems in Indian country are
estimated to be $0.7 million.
    EPA consulted with tribal officials early in the process of
developing this proposed regulation to welcome meaningful and timely
input into its development. EPA began its consultation with Tribes on
possible changes to the UST regulation shortly after the passage of the
Energy Policy Act of 2005. The Energy Policy Act directed EPA to
coordinate with Tribes to develop and implement an UST program strategy
in Indian country to supplement the program's existing approach. EPA
and Tribes worked collaboratively to develop a tribal strategy.
    There are certain key provisions of the Energy Policy Act that
apply to states receiving federal Subtitle I money, but do not apply in
Indian country. Nonetheless, EPA's goal is to establish in Indian
country similar federal requirements to these Energy Policy Act
provisions as an important step in achieving more consistent program
results in release prevention. Both EPA and Tribes recognize the
importance of having policies that can help ensure parity in program
implementation between states and in Indian country.
    In addition to our early consultation with Tribes, EPA also reached
out again to Tribes as we started the official rulemaking process and
throughout the development of this proposed regulation. EPA sent
letters to leaders of over 500 Tribes as well as to Tribal regulatory
staff to invite their participation in the development of the
regulation. EPA heard from both Tribal officials who work as regulators
as well as representatives of owners and operators of UST systems in
Indian country. The Tribal regulators raised concerns about ensuring
parity of environmental protection between states and Indian country.
    EPA finds that today's proposed changes to the UST regulation are
needed to ensure parity between UST systems in states and in Indian
country. This regulation is also needed to ensure equipment is not just
installed but is working properly to protect the environment from
potential releases.
    EPA specifically solicits additional comment on this proposed
action from Tribal officials.

G. Executive Order 13045: Protection of Children From Environmental
Health And Safety Risks

    This action is not subject to EO 13045 (62 FR 19885, April 23,
1997) because the Agency does not believe the environmental health
risks or safety risks addressed by this action present a
disproportionate risk to children. EPA's risk assessment for this
proposed rulemaking examines potential impacts to groundwater and
subsequent chemical transport, exposure and risk. While the risk
assessment did not specifically measure exposure to children, the
general exposure scenarios reflect four exposure pathways that have the
most significant potential for human health impacts. These are: (1)
Ingestion of chemicals in groundwater that have migrated from the
source area to residential drinking water wells; (2) inhalation of
volatile chemicals when showering with contaminated groundwater; (3)
dermal contact with chemicals while bathing or showering with
contaminated groundwater; and (4) inhalation of vapors that may migrate
upward from contaminated groundwater into overlying buildings.
    Adults and children can potentially be exposed through all four
exposure pathways considered. For adults, inhalation of vapors while
showering is the most significant exposure pathway; for children,
ingestion is the most significant pathway, because they are assumed to
take baths and are, therefore, not exposed via shower vapor inhalation.
As a result of the longer exposure from showering, adults are the more
sensitive receptors for cancer effects compared to children,
particularly those under five who are assumed to take more baths and
fewer showers.\74\
---------------------------------------------------------------------------

    \74\ United States Department of Health and Human Services,
Public Health Service, Agency for Toxic Substances and Disease
Registry, ``Toxicological Profile for Polycyclic Aromatic
Hydrocarbons,'' August 1995.
---------------------------------------------------------------------------

    While the screening level risk assessment is limited in that it
only examines benzene impacts, the proposed rule would likely reduce
other contaminant exposures to children in a similar pattern and would
not create significant adverse impacts on children's health.
    The screening level population analysis performed to examine EO
12898 shows that children under 18 years and children under five years
are slightly less likely to be found in the vicinity of UST facilities.
This suggests that the impacts of the proposed rule will not have a
disproportionate impact on children's health. Moreover, because all
regulatory options proposed today would increase regulatory stringency
and reduce the number and size of releases, EPA does not expect the
proposed regulation to have any disproportionate adverse impact on
children. The public is invited to submit comments or identify peer-
reviewed studies and data that assess effects of early life exposure to
petroleum products.

H. Executive Order 13211: Actions That Significantly Affect Energy
Supply, Distribution, or Use

    This action is not a ``significant energy action'' as defined in
Executive Order 13211 (66 FR 28355 (May 22, 2001)), because it is not
likely to have a significant adverse effect on the supply,
distribution, or use of energy. The following summarizes EPA's
assessment of the energy impacts that the proposed rulemaking will have
on energy supply, distribution, and use.

    The proposed regulation consists of additional regulatory
requirements that apply to the owners and operators of underground
storage tanks. To the extent that the proposed regulation affects the
motor fuel sector, it does so at the retail motor fuel sales level,
rather than the level of refineries or distributors, who supply the
retail stations with motor fuel. Therefore, we do not expect the
proposed regulation to have a significant adverse impact on energy
supply or distribution.
    The additional regulatory requirements contained in the proposed
regulation may increase compliance costs for owners and operators of
retail motor fuel stations. If owners and operators of retail motor
fuel stations affected by the proposed regulation can pass through
their increased compliance costs, energy use may be affected via higher
energy prices caused by the proposed regulation. However, we do not
expect a significant change in retail gasoline prices to result from
this proposed regulation for the following reasons: (1) Economic
analyses of retail fuel prices have revealed that demand for gasoline
is highly sensitive to price (elastic) within localized geographic
areas. As a result, if one motor fuel retailer in an area passes
through increases in compliance costs by increasing gasoline prices,
while another does not, the one with higher prices is at a competitive
disadvantage; and (2) retail motor fuel stations often have associated
stores and/or services, such as car washes, repair operations, and
convenience outlets, on which they can more successfully pass through
increases in compliance costs.
    Furthermore, when considered in the context of total fuel
consumption in the United States, the proposed rule would represent
only a very small fraction of motor fuel prices even if it was fully
passed through to consumers. According to the Bureau of Transportation
Statistics, the United States consumed approximately 171 billion
gallons of motor fuel (including gasoline and diesel) in 2008 at an
average price of $3.27.\75\ This implies that U.S. consumers spent $558
billion in 2008 on motor fuel. The overall cost of the proposed
regulation is approximately $210 million, less than one-tenth of 1
percent of the amount spent by end users on motor fuel in 2008. In
comparison, an increase of 1 cent in the average price of motor fuel in
2008 would have increased the total cost to consumers by approximately
$1.7 billion. Given these circumstances, the proposed regulations
should not have a measurable impact on retail motor fuel prices. As a
result, EPA does not expect the proposed regulations to have a
significant adverse impact on energy prices or use.
---------------------------------------------------------------------------

    \75\ The 2008 prices per gallon for all grades of retail motor
gasoline and No. 2 diesel fuel (all concentrations of sulfur) were
$3.32 and $3.15, respectively, as reported by the Bureau of
Transportation Statistics in Table 3-8: Sales Price of
Transportation Fuel to End-Users in National Transportation
Statistics 2010 (at http://www.bts.gov/publications/national_transportation_statistics/pdf/entire.pdf). We weight these prices
according to prime supplier sales volumes in 2009 published by the
Energy Information Administration, which summed to 362,798.5
thousands of gallons per day for gasoline and 132,489.3 thousands of
gallons per day for all grades of diesel fuel (at http://www.eia.gov/dnav/pet/pet_cons_prim_dcu_nus_a.htm).
---------------------------------------------------------------------------

I. National Technology Transfer and Advancement Act

    Section 12(d) of the National Technology Transfer and Advancement
Act of 1995 (``NTTAA''), Public Law 104-113 (15 U.S.C. 272 note)
directs EPA to use voluntary consensus standards in its regulatory
activities unless to do so would be inconsistent with applicable law or
otherwise impractical. Voluntary consensus standards are technical
standards (e.g., materials specifications, test methods, sampling
procedures, and business practices) that are developed or adopted by
voluntary consensus standards bodies. NTTAA directs EPA to provide
Congress, through OMB, explanations when the Agency decides not to use
available and applicable voluntary consensus standards.
    This proposed regulation involves technical standards. EPA is
proposing to use voluntary consensus standards, called codes of
practice identified in section E-2 of the preamble. These codes of
practice meet the objectives of today's proposed regulation by
establishing criteria for the design, construction, and maintenance of
underground storage tanks.
    EPA welcomes comments on this aspect of the proposed regulation
and, specifically, invites the public to identify potentially
applicable voluntary consensus standards and to explain why such
standards should be used in this regulation.

J. Executive Order 12898: Federal Actions To Address Environmental
Justice in Minority Populations and Low-Income Populations

    Executive Order 12898 (59 FR 7629 (Feb. 16, 1994)) establishes
federal executive policy on environmental justice. Its main provision
directs federal agencies, to the greatest extent practicable and
permitted by law, to make environmental justice part of their mission
by identifying and addressing, as appropriate, disproportionately high
and adverse human health or environmental effects of their programs,
policies, and activities on minority populations and low-income
populations in the United States.
    To inform us about the socioeconomic characteristics of communities
potentially affected by the proposed regulation, EPA conducted a
screening analysis to examine whether there is a statistically
significant disparity between socioeconomic characteristics of
populations located near UST facilities and those that are not.\76\ As
discussed in the RIA, the results indicate that minority and low-income
populations are slightly more likely to be located near UST facilities.
An environmental justice analysis would then require an assessment of
whether there would be disproportionate and adverse impacts on these
populations. However, because all regulatory options considered in this
proposed regulation would increase regulatory stringency and reduce the
number and size of releases, EPA does not anticipate the proposed
regulation to have any disproportionately high and adverse human health
or environmental effects on these minority or low-income communities or
any community.
---------------------------------------------------------------------------

    \76\ Note that the affected populations identified in the
screening analysis summarized here are simply defined by specific
demographics surrounding UST locations. These affected populations
are not necessarily equivalent to communities that others have
specifically identified as ``environmental justice communities.''
---------------------------------------------------------------------------

List of Subjects

40 CFR Part 280

    Environmental protection, Administrative practice and procedures,
Confidential business information, Groundwater, Hazardous materials,
Petroleum, Reporting and recordkeeping requirements, Underground
storage tanks, Water pollution control, Water supply.

40 CFR Part 281

    Environmental protection, Administrative practice and procedures,
Hazardous substances, Petroleum, State program approval, Underground
storage tanks.

    Dated: October 25, 2011.
Lisa P. Jackson,
Administrator.

    For the reasons stated in the preamble, Title 40 Chapter I of Code
of Federal Regulations is proposed to be amended as follows.

PART 280--TECHNICAL STANDARDS AND CORRECTIVE ACTION REQUIREMENTS
FOR OWNERS AND OPERATORS OF UNDERGROUND STORAGE TANKS (UST)

    1. The authority citation for part 280 is revised to read as
follows:

    Authority: 42 U.S.C. 6912, 6991, 6991(a), 6991(b), 6991(c),
6991(d), 6991(e), 6991(f), 6991(g), 6991(h), 6991(i).

    2. Revise Sec.  280.10 to read as follows:

Sec.  280.10  Applicability.

    (a) The requirements of this part apply to all owners and operators
of an UST system as defined in Sec.  280.12 except as otherwise
provided in paragraphs (b) and (c) of this section.
    (1) Previously deferred UST systems. UST systems previously
deferred from subparts B, C, D, E, G and H (airport hydrant fuel
distribution systems, UST systems with field-constructed tanks, and
wastewater treatment tank systems) and UST systems previously deferred
from subpart D (UST systems that store fuel solely for use by emergency
power generators) must begin meeting the requirements of this part as
follows:
    (i) UST systems installed on or before [effective date of rule]
must meet the schedule in the following table.

------------------------------------------------------------------------
     Type of UST system        Subpart or Section      Effective date
------------------------------------------------------------------------
UST systems that store fuel   D...................  [1 Year after
 solely for use by emergency                         effective date of
 power generators.                                   rule].
------------------------------------------------------------------------
Airport hydrant fuel          B (except Sec.        [3 Years after
 distribution systems; UST     280.22) and C.        effective date of
 systems with field-          D...................   rule].
 constructed tanks; and       Sec.   280.22 of      See the phase in
 wastewater treatment tank     subpart B, E, G and   schedule in Sec.
 systems.                      H.                    280.40(c).
                                                    [effective date of
                                                     rule].
------------------------------------------------------------------------

    (ii) UST systems installed after [effective date of rule] must meet
all requirements at installation.
    (2) Any UST system listed in paragraph (c) of this section must
meet the requirements of Sec.  280.11.
    (b) The following UST systems are excluded from the requirements of
this part:
    (1) Any UST system holding hazardous wastes listed or identified
under Subtitle C of the Solid Waste Disposal Act, or a mixture of such
hazardous waste and other regulated substances.
    (2) Any wastewater treatment tank system that is part of a
wastewater treatment facility regulated under Section 402 or 307(b) of
the Clean Water Act.
    (3) Equipment or machinery that contains regulated substances for
operational purposes such as hydraulic lift tanks and electrical
equipment tanks.
    (4) Any UST system whose capacity is 110 gallons or less.
    (5) Any UST system that contains a de minimis concentration of
regulated substances.
    (6) Any emergency spill or overflow containment UST system that is
expeditiously emptied after use.
    (c) Deferrals. Subparts B, C, D, E, and G of this part do not apply
to:
    (1) Aboveground tanks associated with:
    (i) Airport hydrant fuel distribution systems; and
    (ii) UST systems with field-constructed tanks;
    (2) Any UST systems containing radioactive material that are
regulated under the Atomic Energy Act of 1954 (42 USC 2011 and
following); and
    (3) Any UST system that is part of an emergency generator system at
nuclear power generation facilities regulated by the Nuclear Regulatory
Commission under 10 CFR part 50.
    3. In Sec.  280.11 revise the Note at the end of the section to
read as follows:

Sec.  280.11  Interim prohibition for deferred UST systems.

* * * * *

    Note to paragraphs (a) and (b): The following codes of practice
may be used as guidance for complying with this section:
    (A) NACE International Recommended Practice RP 0285, ``Corrosion
Control of Underground Storage Systems by Cathodic Protection'';
    (B) NACE International Standard Practice SP 0169, ``Control of
External Corrosion on Underground or Submerged Metallic Piping
Systems'';
    (C) American Petroleum Institute Recommended Practice 1632,
``Cathodic Protection of Underground Petroleum Storage Tanks and
Piping Systems''; or
    (D) Steel Tank Institute Recommended Practice R892,
``Recommended Practice for Corrosion Protection of Underground
Piping Networks Associated with Liquid Petroleum Storage and
Dispensing Systems''.
    4. Section 280.12 is amended as follows:

    a. By adding in alphabetical order definitions for ``Airport
hydrant fuel distribution system,'' ``Class A operator,'' ``Class B
operator,'' ``Class C operator,'' ``Dispenser system,'' ``Replaced,''
``Secondary containment,'' ``Training program,'' and ``Under-dispenser
containment,'' and
    b. By revising the definitions for ``Motor fuel,'' ``Regulated
substance,'' ``Repair,'' and ``Underground storage tank.''

Sec.  280.12  Definitions.

* * * * *
    Airport hydrant fuel distribution system means an UST system that
is a combination of one or more tanks directly connected to underground
hydrant piping used to fuel aircraft. These systems do not have a
dispenser at the end of the piping run, but rather have a hydrant (fill
stand). If an aboveground storage tank (AST) is feeding an intermediary
tank or tanks, this definition does not include the AST, but does
include all underground piping entering and leaving the intermediary
tank(s) and the intermediary tank(s). Intermediary tanks are those
tanks directly connected to the hydrant piping.
* * * * *
    Class A operator means the individual who has primary
responsibility to operate and maintain the UST system in accordance
with applicable requirements and standards established by the
implementing agency. The Class A operator typically manages resources
and personnel, such as establishing work assignments, to achieve and
maintain compliance with regulatory requirements.
    Class B operator means the individual who has day-to-day
responsibility for implementing applicable regulatory requirements and
standards established by the implementing agency. The Class B operator
typically implements in-field aspects of operation, maintenance, and
associated recordkeeping for the UST system.
    Class C operator means the employee responsible for initially
addressing emergencies presented by a spill or release from an UST
system. The Class C operator typically controls or monitors the
dispensing or sale of regulated substances.
* * * * *
    Dispenser system means equipment located aboveground that meters
the amount of regulated substances transferred to a point of use
outside the UST system, such as a motor vehicle.

This system includes the equipment necessary to connect the dispenser
to the underground storage tank system.
* * * * *
    Motor fuel means petroleum or a petroleum-based substance that is
typically used in the operation of a motor engine, such as motor
gasoline, aviation gasoline, No. 1 or No. 2 diesel fuel, or any blend
containing one or more of these substances (for example: motor gasoline
blended with alcohol).
* * * * *
    Regulated substance means
    (a) Any substance defined in section 101(14) of the Comprehensive
Environmental Response, Compensation and Liability Act (CERCLA) of 1980
(but not including any substance regulated as a hazardous waste under
subtitle C), and
    (b) Petroleum, including crude oil or any fraction thereof that is
liquid at standard conditions of temperature and pressure (60 degrees
Fahrenheit and 14.7 pounds per square inch absolute). The term
``regulated substance'' includes but is not limited to petroleum and
petroleum-based substances comprised of a complex blend of
hydrocarbons, such as motor fuels, jet fuels, distillate fuel oils,
residual fuel oils, lubricants, petroleum solvents, and used oils.
* * * * *
    Repair means to restore a tank, pipe, spill prevention equipment,
overfill prevention equipment, corrosion protection equipment, release
detection equipment or other UST system component that has caused a
release or a suspected release of product from the UST system or has
failed to function properly.
    Replaced means
    (a) For a tank--to remove a tank and install another tank.
    (b) For piping--to remove 50 percent or more of piping and install
other piping, excluding connectors, connected to a single tank. For
tanks with multiple piping runs, this definition applies independently
to each piping run.
* * * * *
    Secondary containment or Secondarily contained means a release
prevention and release detection system for a tank and/or piping. These
systems have an inner and outer barrier with an interstitial space that
is monitored for leaks.
* * * * *
    Training program means any program established by the implementing
agency that provides information to and evaluates the knowledge of a
Class A, Class B, or Class C operator regarding requirements and
standards for UST systems.
    Under-dispenser containment or UDC means containment underneath a
dispenser system designed to prevent dispenser system leaks from
reaching soil or groundwater.
* * * * *
    Underground storage tank or UST means any one or combination of
tanks (including underground pipes connected thereto) that is used to
contain an accumulation of regulated substances, and the volume of
which (including the volume of underground pipes connected thereto) is
10 percent or more beneath the surface of the ground. This 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):
    (1) Which is regulated under U.S.C. chapters 601 and 603, or
    (2) Which is an intrastate pipeline facility regulated under state
laws as provided in U.S.C. 49 chapters 601 and 603,and which is
determined by the Secretary of Transportation 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 wastewater 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 or UST does not include any pipes
connected to any tank which is described in paragraphs (a) through (i)
of this definition.
* * * * *
    5. Revise Subpart B to read as follows:

Subpart B--UST Systems: Design, Construction, Installation and
Notification

Sec.
280.20 Performance standards for new UST systems.
280.21 Upgrading of existing UST systems.
280.22 Notification requirements.

Subpart B--UST Systems: Design, Construction, Installation and
Notification

Sec.  280.20  Performance standards for new UST systems.

    In order to prevent releases due to structural failure, corrosion,
or spills and overfills for as long as the UST system is used to store
regulated substances, all owners and operators of new UST systems must
meet the following requirements.
    (a) Tanks. Each tank must be properly designed and constructed, and
any portion underground that routinely contains product must be
protected from corrosion, in accordance with a code of practice
developed by a nationally recognized association or independent testing
laboratory as specified in paragraphs (a)(1) through (a)(5) of this
section. In addition, all new or replaced tanks where installation
began after [effective date of rule] must be secondarily contained in
accordance with paragraph (a)(6) of this section:
    (1) The tank is constructed of fiberglass-reinforced plastic; or

    Note to paragraph (a)(1): The following codes of practice may be
used to comply with paragraph (a)(1) of this section:
    (A) Underwriters Laboratories Standard 1316, ``Glass-Fiber-
Reinforced Plastic Underground Storage Tanks for Petroleum Products,
Alcohols, and Alcohol-Gasoline Mixtures''; or
    (B) Underwriter's Laboratories of Canada S615, ``Standard for
Reinforced Plastic Underground Tanks for Flammable and Combustible
Liquids''.

    (2) The tank is constructed of steel and cathodically protected in
the following manner:
    (i) The tank is coated with a suitable dielectric material;
    (ii) Field-installed cathodic protection systems are designed by a
corrosion expert;
    (iii) Impressed current systems are designed to allow determination
of current operating status as required in Sec.  280.31(c); and
    (iv) Cathodic protection systems are operated and maintained in
accordance with Sec.  280.31 or according to guidelines established by
the implementing agency; or

    Note to paragraph (a)(2): The following codes of practice may be
used to comply with paragraph (a)(2) of this section:
    (A) Steel Tank Institute Specification ``sti-P3[supreg]
Specification and Manual for External Corrosion Protection of
Underground Steel Storage Tanks'';

    (B) Underwriters Laboratories Standard 1746, ``Standard for
External Corrosion Protection Systems for Steel Underground Storage
Tanks'';

    (C) Underwriters Laboratories of Canada S603, ``Standard for
Steel Underground Tanks for Flammable and Combustible Liquids,'' and
S603.1, ``Standard for External Corrosion Protection Systems for
Steel Underground Tanks for Flammable and Combustible Liquids,'' and
S631, ``Standard for Isolating Bushings for Steel Underground Tanks
Protected with External Corrosion Protection Systems'';
    (D) Steel Tank Institute Standard F841, ``Standard for Dual Wall
Underground Steel Storage Tanks''; or
    (E) NACE International Recommended Practice RP 0285, ``Corrosion
Control of Underground Storage Systems by Cathodic Protection,'' and
Underwriters Laboratories Standard 58, ``Standard for Steel
Underground Tanks for Flammable and Combustible Liquids''.
    (3) The tank is constructed of steel and clad or jacketed with a
non-corrodible material; or

    Note to paragraph (a)(3): The following codes of practice may be
used to comply with paragraph (a)(3) of this section:
    (A) Underwriters Laboratories Standard 1746, ``Standard for
External Corrosion Protection Systems for Steel Underground Storage
Tanks'';
    (B) Steel Tank Institute Specification F894, ``ACT-100[supreg]
Specification for External Corrosion Protection of FRP Composite
Steel USTs'';
    (C) Steel Tank Institute Specification F961, ``ACT-100-U[supreg]
Specification for External Corrosion Protection of Composite Steel
Underground Storage Tanks''; or
    (D) Steel Tank Institute Specification F922, ``Steel Tank
Institute Specification for Permatank[supreg]''.

    (4) The tank is constructed of metal without additional corrosion
protection measures provided that:
    (i) The tank is installed at a site that is determined by a
corrosion expert not to be corrosive enough to cause it to have a
release due to corrosion during its operating life; and
    (ii) Owners and operators maintain records that demonstrate
compliance with the requirements of paragraph (a)(4)(i) of this section
for the remaining life of the tank; or
    (5) The tank construction and corrosion protection are determined
by the implementing agency to be designed to prevent the release or
threatened release of any stored regulated substance in a manner that
is no less protective of human health and the environment than
paragraphs (a)(1) through (4) of this section; or
    (6) The tank is secondarily contained. Secondary containment must
be periodically tested in accordance with Sec.  280.36. Secondarily
contained tanks must meet the following:
    (i) Be able to contain regulated substances leaked from the primary
containment until they are detected and removed; and
    (ii) Be able to prevent the release of regulated substances to the
environment at any time during the operational life of the UST system.

    Note to paragraph (a)(6): The following codes of practice may be
used to comply with paragraph (a)(6) of this section:
    (A) Underwriters Laboratories Standard 58, ``Standard for Steel
Underground Tanks for Flammable and Combustible Liquids'';
    (B) Underwriters Laboratories Standard 1316, ``Glass-Fiber-
Reinforced Plastic Underground Storage Tanks for Petroleum Products,
Alcohols, and Alcohol-Gasoline Mixtures'';
    (C) Underwriters Laboratories Standard 1746, ``Standard for
External Corrosion Protection Systems for Steel Underground Storage
Tanks'';
    (D) Steel Tank Institute Standard F841, ``Standard for Dual Wall
Underground Steel Storage Tanks''; or
    (E) Steel Tank Institute Specification F922, ``Steel Tank
Institute Specification for Permatank[supreg]''.

    (b) Piping. The piping that routinely contains regulated substances
and is in contact with the ground must be properly designed,
constructed, and protected from corrosion in accordance with a code of
practice developed by a nationally recognized association or
independent testing laboratory as specified in paragraphs (b)(1)
through (b)(4) of this section. In addition, except for suction piping
that meets the requirements of 280.41(b)(1)(ii)(A) through (E) and
piping associated with field-constructed tanks and airport hydrant fuel
distribution systems, all new or replaced piping where installation
began after [effective date of rule] must be secondarily contained in
accordance with paragraph (b)(5) of this section. The entire piping run
must be replaced when 50 percent or more of a piping run is replaced.
    (1) The piping is constructed of a non-corrodible material; or

    Note to paragraph (b)(1): The following codes of practice may be
used to comply with paragraph (b)(1) of this section:
    (A) Underwriters Laboratories Standard 971, ``Standard for Non-
Metallic Underground Piping for Flammable Liquids''; or
    (B) Underwriters Laboratories of Canada Standard S660, ''
Standard for Non-Metallic Underground Piping for Flammable
Liquids''.

    (2) The piping is constructed of steel and cathodically protected
in the following manner:
    (i) The piping is coated with a suitable dielectric material;
    (ii) Field-installed cathodic protection systems are designed by a
corrosion expert;
    (iii) Impressed current systems are designed to allow determination
of current operating status as required in Sec.  280.31(c); and
    (iv) Cathodic protection systems are operated and maintained in
accordance with Sec.  280.31 or guidelines established by the
implementing agency; or

    Note to paragraph (b)(2): The following codes of practice may be
used to comply with paragraph (b)(2) of this section:
    (A) American Petroleum Institute Recommended Practice 1632,
``Cathodic Protection of Underground Petroleum Storage Tanks and
Piping Systems'';
    (B) Underwriters Laboratories Subject 971A, ``Outline of
Investigation for Metallic Underground Fuel Pipe'';
    (C) Steel Tank Institute Recommended Practice R892,
``Recommended Practice for Corrosion Protection of Underground
Piping Networks Associated with Liquid Petroleum Storage and
Dispensing Systems'';
    (D) NACE International Standard Practice SP 0169, ``Control of
External Corrosion on Underground or Submerged Metallic Piping
Systems''; or
    (E) NACE International Recommended Practice RP 0285, ``Corrosion
Control of Underground Storage Systems by Cathodic Protection''.

    (3) The piping is constructed of metal without additional corrosion
protection measures provided that:
    (i) The piping is installed at a site that is determined by a
corrosion expert to not be corrosive enough to cause it to have a
release due to corrosion during its operating life; and
    (ii) Owners and operators maintain records that demonstrate
compliance with the requirements of paragraph (b)(3)(i) of this section
for the remaining life of the piping; or
    (4) The piping construction and corrosion protection are determined
by the implementing agency to be designed to prevent the release or
threatened release of any stored regulated substance in a manner that
is no less protective of human health and the environment than the
requirements in paragraphs (b)(1) through (3) of this section; or
    (5) The piping is secondarily contained. Secondary containment must
be periodically tested in accordance with Sec.  280.36. Secondarily
contained piping must meet the following:
    (i) Be able to contain regulated substances leaked from the primary
containment until they are detected and removed; and
    (ii) Be able to prevent the release of regulated substances to the
environment at any time during the operational life of the UST system.

    Note to paragraph (b)(5): The following codes of practice may be
used to comply with paragraph (b)(5) of this section:
    (A) Underwriters Laboratories Standard 971, ``Standard for Non-
Metallic Underground Piping for Flammable Liquids''; or

    (B) Underwriters Laboratories Subject 971A, ``Outline of
Investigation for Metallic Underground Fuel Pipe''.

    (c) Spill and overfill prevention equipment.
    (1) Except as provided in paragraphs (c)(2) and (c)(3) of this
section, to prevent spilling and overfilling associated with product
transfer to the UST system, owners and operators must use the following
spill and overfill prevention equipment:
    (i) Spill prevention equipment that will prevent release of product
to the environment when the transfer hose is detached from the fill
pipe (for example, a spill catchment basin); and
    (ii) Overfill prevention equipment that will:
    (A) Automatically shut off flow into the tank when the tank is no
more than 95 percent full; or
    (B) Alert the transfer operator when the tank is no more than 90
percent full by restricting the flow into the tank or triggering a
high-level alarm; or
    (C) Restrict flow 30 minutes prior to overfilling, alert the
transfer operator with a high level alarm one minute before
overfilling, or automatically shut off flow into the tank so that none
of the fittings located on top of the tank are exposed to product due
to overfilling.
    (2) Owners and operators are not required to use the spill and
overfill prevention equipment specified in paragraph (c)(1) of this
section if:
    (i) Alternative equipment is used that is determined by the
implementing agency to be no less protective of human health and the
environment than the equipment specified in paragraph (c)(1)(i) or (ii)
of this section; or
    (ii) The UST system is filled by transfers of no more than 25
gallons at one time.
    (3) Flow restrictors used in vent lines may not be used to comply
with paragraph (c)(1)(ii) of this section when overfill prevention is
installed or replaced after [effective date of rule].
    (4) Spill and overfill prevention equipment must be periodically
tested in accordance with Sec.  280.35.
    (d) Installation. All tanks and piping must be properly installed
in accordance with a code of practice developed by a nationally
recognized association or independent testing laboratory and in
accordance with the manufacturer's instructions.

    Note to paragraph (d): Tank and piping system installation
practices and procedures described in the following codes of
practice may be used to comply with the requirements of paragraph
(d) of this section:
    (A) American Petroleum Institute Publication 1615,
``Installation of Underground Petroleum Storage System'';
    (B) Petroleum Equipment Institute Publication RP100,
``Recommended Practices for Installation of Underground Liquid
Storage Systems''; or
    (C) National Fire Protection Association Standard 30,
``Flammable and Combustible Liquids Code'' and Standard 30A, ``Code
for Motor Fuel Dispensing Facilities and Repair Garages''.

    (e) Certification of installation. All owners and operators must
ensure that one or more of the following methods of certification,
testing, or inspection is used to demonstrate compliance with paragraph
(d) of this section by providing a certification of compliance on the
UST notification form in accordance with Sec.  280.22.
    (1) The installer has been certified by the tank and piping
manufacturers; or
    (2) The installer has been certified or licensed by the
implementing agency; or
    (3) The installation has been inspected and certified by a
registered professional engineer with education and experience in UST
system installation; or
    (4) The installation has been inspected and approved by the
implementing agency; or
    (5) All work listed in the manufacturer's installation checklists
has been completed; or
    (6) The owner and operator have complied with another method for
ensuring compliance with paragraph (d) of this section that is
determined by the implementing agency to be no less protective of human
health and the environment.
    (f) Dispenser Systems. Each UST system must be equipped with under-
dispenser containment for any new dispenser system installed.
    (1) A dispenser system is considered new when both the dispenser
and the equipment needed to connect the dispenser to the underground
storage tank system are installed at an UST facility. The equipment
necessary to connect the dispenser to the underground storage tank
system includes check valves, shear valves, unburied risers or flexible
connectors, or other transitional components that are beneath the
dispenser and connect the dispenser to the underground piping.
    (2) Under-dispenser containment must be liquid-tight on its sides,
bottom, and at any penetrations. Under-dispenser containment must allow
for visual inspection and access to the components in the containment
system or be continuously monitored for leaks from the dispenser
system.

Sec.  280.21  Upgrading of existing UST systems.

    In accordance with subpart G of this part, owners and operators
must permanently close any UST system that does not meet the new UST
system performance standards in Sec.  280.20 or has not been upgraded
in accordance with paragraphs (b) through (d) of this section. This
does not apply to previously deferred UST systems described in
paragraph (e) of this section and where an upgrade is determined to be
appropriate by the implementing agency.
    (a) Alternatives allowed. All existing UST systems must comply with
one of the following requirements:
    (1) New UST system performance standards under Sec.  280.20;
    (2) The upgrading requirements in paragraphs (b) through (d) of
this section; or
    (3) Closure requirements under subpart G of this part, including
applicable requirements for corrective action under subpart F.
    (b) Tank upgrading requirements. Steel tanks must be upgraded to
meet one of the following requirements in accordance with a code of
practice developed by a nationally recognized association or
independent testing laboratory:
    (1) Interior lining. Tanks upgraded by internal lining must meet
the following:
    (i) The lining was installed in accordance with the requirements of
Sec.  280.33, and
    (ii) Within 10 years after lining, and every 5 years thereafter,
the lined tank is internally inspected and found to be structurally
sound with the lining still performing in accordance with original
design specifications. If the internal lining is no longer performing
in accordance with original design specifications and cannot be
repaired in accordance with a code of practice developed by a
nationally recognized association or independent testing laboratory,
then the lined tank must be permanently closed in accordance with
subpart G of this part.
    (2) Cathodic protection. Tanks upgraded by cathodic protection must
meet the requirements of Sec.  280.20(a)(2)(ii), (iii), and (iv) and
the integrity of the tank must have been ensured using one of the
following methods:
    (i) The tank was internally inspected and assessed to ensure that
the tank was structurally sound and free of corrosion holes prior to
installing the cathodic protection system; or
    (ii) The tank had been installed for less than 10 years and is
monitored

monthly for releases in accordance with Sec.  280.43(d) through (i); or
    (iii) The tank had been installed for less than 10 years and was
assessed for corrosion holes by conducting two tightness tests that
meet the requirements of Sec.  280.43(c). The first tightness test must
have been conducted prior to installing the cathodic protection system.
The second tightness test must have been conducted between three and
six months following the first operation of the cathodic protection
system; or
    (iv) The tank was assessed for corrosion holes by a method that is
determined by the implementing agency to prevent releases in a manner
that is no less protective of human health and the environment than
paragraphs (b)(2)(i) through (iii) of this section.
    (3) Internal lining combined with cathodic protection. Tanks
upgraded by both internal lining and cathodic protection must meet the
following:
    (i) The lining was installed in accordance with the requirements of
Sec.  280.33; and
    (ii) The cathodic protection system meets the requirements of Sec.
280.20(a)(2)(ii), (iii), and (iv).

    Note to paragraph (b): The following historical codes of
practice were listed as options for complying with paragraph (b) of
this section:
    (A) American Petroleum Institute Publication 1631, ``Recommended
Practice for the Interior Lining of Existing Steel Underground
Storage Tanks'';
    (B) National Leak Prevention Association Standard 631, ``Spill
Prevention, Minimum 10 Year Life Extension of Existing Steel
Underground Tanks by Lining Without the Addition of Cathodic
Protection'';
    (C) National Association of Corrosion Engineers Standard RP-02-
85, ``Control of External Corrosion on Metallic Buried, Partially
Buried, or Submerged Liquid Storage Systems''; and
    (D) American Petroleum Institute Publication 1632, ``Cathodic
Protection of Underground Petroleum Storage Tanks and Piping
Systems''.

    Note to paragraph (b)(1)(ii): The following codes of practice
may be used to comply with the periodic lining inspection
requirement of this section:
    (A) American Petroleum Institute Recommended Practice 1631,
``Interior Lining and Periodic Inspection of Underground Storage
Tanks'';
    (B) National Leak Prevention Association Standard 631, ``Entry,
Cleaning, Interior Inspection, Repair, and Lining of Underground
Storage Tanks''; or
    (C) Ken Wilcox Associates Recommended Practice, ``Recommended
Practice for Inspecting Buried Lined Steel Tanks Using a Video
Camera''.

    (c) Piping upgrading requirements. Metal piping that routinely
contains regulated substances and is in contact with the ground must be
cathodically protected in accordance with a code of practice developed
by a nationally recognized association or independent testing
laboratory and must meet the requirements of Sec.  280.20(b)(2)(ii),
(iii), and (iv).

    Note to paragraph (c): The codes of practice listed in the note
following Sec.  280.20(b)(2) may be used to comply with this
requirement.

    (d) Spill and overfill prevention equipment. To prevent spilling
and overfilling associated with product transfer to the UST system, all
existing UST systems must comply with new UST system spill and overfill
prevention equipment requirements specified in Sec.  280.20(c).
    (e) Upgrade requirements for previously deferred UST systems.
Previously deferred wastewater treatment tank systems, airport hydrant
fuel distribution systems, and UST systems with field-constructed tanks
where installation commenced on or before [effective date of rule] must
meet the following requirements according to the time table in subpart
A or be permanently closed pursuant to subpart G of this part.
    (1) Corrosion protection. UST system components in contact with the
ground that routinely contain regulated substances must meet one of the
following:
    (i) The new UST system performance standards for tanks at Sec.
280.20(a) and for piping at Sec.  280.20(b); or
    (ii) Be constructed of metal and cathodically protected according
to a code of practice developed by a nationally recognized association
or independent testing laboratory and meets the following:
    (A) Cathodic protection must meet the requirements of Sec.
280.20(a)(2)(ii), (iii) and (iv) for tanks, and Sec.  280.20(b)(2)(ii),
(iii), and (iv) for piping.
    (B) Tanks greater than 10 years old without cathodic protection
must be assessed to ensure the tank is structurally sound and free of
corrosion holes prior to adding cathodic protection. The assessment
must be by internal inspection or another method determined by the
implementing agency to adequately assess the tank for structural
soundness and corrosion holes.

    Note to paragraph (e): The following codes of practice may be
used to comply with this paragraph:
    (A) NACE International Recommended Practice RP 0285, ``Control
of Underground Storage Tank Systems by Cathodic Protection'';
    (B) NACE International Standard Practice SP 0169, ``Control of
External Corrosion on Underground or Submerged Metallic Piping
Systems'';
    (C) National Leak Prevention Association Standard 631, ``Entry,
Cleaning, Interior Inspection, Repair, and Lining of Underground
Storage Tanks''; or
    (D) American Society for Testing and Materials Standard G158,
``Standard Guide for Three Methods of Assessing Buried Steel
Tanks''.

    (2) Spill and overfill prevention equipment. To prevent spilling
and overfilling associated with product transfer to the UST system, all
previously deferred UST systems must comply with new UST system spill
and overfill prevention equipment requirements specified in Sec.
280.20(c).

Sec.  280.22  Notification requirements.

    (a) After May 8, 1986, an owner must submit notice of a tank
system's existence to the implementing agency within 30 days of
bringing the underground storage tank system into use. Owners must use
the form in Appendix I of this part.

    Note to paragraph (a): Owners and operators of UST systems that
were in the ground on or after May 8, 1986, unless taken out of
operation on or before January 1, 1974, were required to notify the
designated state or local agency in accordance with the Hazardous
and Solid Waste Amendments of 1984, Public Law 98-616, on a form
published by EPA on November 8, 1985 (50 FR 46602) unless notice was
given pursuant to section 103(c) of CERCLA. Owners and operators who
have not complied with the notification requirements may use
portions I through VI of the notification form contained in Appendix
I of this part.

    (b) Within 30 days of acquisition, any person who assumes ownership
of a regulated underground storage tank system, except as described in
paragraph (a) of this section, must submit a notice of the ownership
change to the implementing agency, using the form in Appendix II of
this part.
    (c) In states where state law, regulations, or procedures require
owners to use forms that differ from those set forth in Appendix I and
Appendix II of this part to fulfill the requirements of this section,
the state forms may be submitted in lieu of the forms set forth in
Appendix I and Appendix II of this part. If a state requires that its
form be used in lieu of the form presented in Appendix I and Appendix
II of this part, such form must, at a minimum, collect the information
prescribed in Appendix I and Appendix II of this part.
    (d) Owners required to submit notices under paragraph (a) or (b) of
this section must provide notices to the appropriate

implementing agency for each tank they own. Owners may provide notice
for several tanks using one notification form, but owners who own tanks
located at more than one place of operation must file a separate
notification form for each separate place of operation.
    (e) All owners and operators of new UST systems must certify in the
notification form compliance with the following requirements:
    (1) Installation of tanks and piping under Sec.  280.20(e);
    (2) Cathodic protection of steel tanks and piping under Sec.
280.20(a) and (b);
    (3) Financial responsibility under subpart H of this part; and
    (4) Release detection under Sec. Sec.  280.41 and 280.42.
    (f) All owners and operators of new UST systems must ensure that
the installer certifies in the notification form that the methods used
to install the tanks and piping complies with the requirements in Sec.
280.20(d).
    (g) Beginning October 24, 1988, any person who sells a tank
intended to be used as an underground storage tank must notify the
purchaser of such tank of the owner's notification obligations under
paragraph (a) of this section. The statement provided in Appendix III
of this part, when used on shipping tickets and invoices, may be used
to comply with this requirement.
    (h) Within 30 days of [Effective date of rule], all owners of
previously deferred UST systems must submit a notice of tank system
existence to the implementing agency, using the form in Appendix I of
this part.
    6. In Sec.  280.30 revise the Note to read as follows:

Sec.  280.30  Spill and overfill control.

* * * * *

    Note: The transfer procedures described in National Fire
Protection Association Standard 385, ``Standard for Tank Vehicles
for Flammable and Combustible Liquids'' or American Petroleum
Institute Recommended Practice 1007, ``Loading and Unloading of MC
306/DOT 406 Cargo Tank Motor Vehicles'' may be used to comply with
paragraph (a) of this section. Further guidance on spill and
overfill prevention appears in American Petroleum Institute
Recommended Practice 1621, ``Bulk Liquid Stock Control at Retail
Outlets''.

* * * * *
    7. In Sec.  280.31 revise the introductory text and the Note to
read as follows:

Sec.  280.31  Operation and maintenance of corrosion protection.

    All owners and operators of metal UST systems with corrosion
protection must comply with the following requirements to ensure that
releases due to corrosion are prevented until the UST system is
permanently closed or undergoes a change-in-service pursuant to Sec.
280.71:
* * * * *

    Note to paragraph (b): The following codes of practice may be
used to comply with paragraph (b) of this section:
    (A) NACE International Test Method TM 0101, ``Measurement
Techniques Related to Criteria for Cathodic Protection on
Underground or Submerged Metallic Tank Systems'';
    (B) NACE International Test Method TM0497, ``Measurement
Techniques Related to Criteria for Cathodic Protection on
Underground or Submerged Metallic Piping Systems'';
    (C) Steel Tank Institute Recommended Practice R051, ``Cathodic
Protection Testing Procedures for sti-P3 USTs'';
    (D) NACE International Recommended Practice RP 0285, ``Control
of Underground Storage Tank Systems by Cathodic Protection''; or
    (E) NACE International Standard Practice SP 0169, ``Control of
External Corrosion on Underground or Submerged Metallic Piping
Systems''.

* * * * *
    8. Amend Sec.  280.32 to revise paragraph (a) and to add paragraphs
(b) and (c) to read as follows:

Sec.  280.32  Compatibility.

* * * * *
    (a) Owners and operators must use an UST system made of or lined
with materials that are compatible with the substance stored in the UST
system.
    (b) Owners and operators storing any regulated substance containing
greater than 10 percent ethanol or greater than 20 percent biodiesel,
or any other regulated substance identified by the implementing agency,
must use one or more of the following methods to demonstrate UST system
compatibility with these regulated substances:
    (1) Certification or listing of UST system components by a
nationally recognized, independent testing laboratory for use with the
regulated substance stored;
    (2) Equipment or component manufacturer approval. The
manufacturer's approval must be in writing, indicate an affirmative
statement of compatibility, specify the range of biofuel blends the
component is compatible with, and be from the equipment or component
manufacturer; or
    (3) Another method determined by the implementing agency to be no
less protective of human health and the environment than the methods
listed in paragraphs (b)(1) or (b)(2) of this section.
    (c) Owners and operators must maintain the following records (in
accordance with Sec.  280.34) for the life of the equipment or
component:
    (1) Documentation of compliance with paragraph (b) of this section,
as applicable; and
    (2) Records of all equipment or components installed or replaced
after [effective date of rule]. At a minimum, each record must include
the date of installation or replacement, manufacturer, and model.
    9. Revise Sec.  280.33 to read as follows:

Sec.  280.33  Repairs allowed.

    Owners and operators of UST systems must ensure that repairs will
prevent releases due to structural failure or corrosion as long as the
UST system is used to store regulated substances. The repairs must meet
the following requirements:
    (a) Repairs to UST systems must be properly conducted in accordance
with a code of practice developed by a nationally recognized
association or an independent testing laboratory.

    Note to paragraph (a): The following codes of practice may be
used to comply with paragraph (a) of this section:
    (A) National Fire Protection Association Standard 30,
``Flammable and Combustible Liquids Code'';
    (B) American Petroleum Institute Recommended Practice RP 2200,
``Repairing Crude Oil, Liquified Petroleum Gas, and Product
Pipelines'';
    (C) American Petroleum Institute Recommended Practice RP 1631,
``Interior Lining and Periodic Inspection of Underground Storage
Tanks'';
    (D) National Fire Protection Association Standard 326,
``Safeguarding of Tanks and Containers for Entry, Cleaning, or
Repair'';
    (E) National Leak Prevention Association Standard 631, ``Entry,
Cleaning, Interior Inspection, Repair, and Lining of Underground
Storage Tanks'';
    (F) Steel Tank Institute Recommended Practice R972,
``Recommended Practice for the Addition of Supplemental Anodes to
sti-P3[supreg] Tanks'';
    (G) NACE International Recommended Practice RP 0285, ``Control
of Underground Storage Tank Systems by Cathodic Protection''; or
    (H) Fiberglass Tank and Pipe Institute Recommended Practice T-
95-02, ``Remanufacturing of Fiberglass Reinforced Plastic (FRP)
Underground Storage Tanks''.

    (b) Repairs to fiberglass-reinforced plastic tanks may be made by
the manufacturer's authorized representatives or in accordance with a
code of practice developed by a nationally recognized association or an
independent testing laboratory.
    (c) Metal pipe sections and fittings that have released product as
a result of corrosion or other damage must be

replaced. Non-corrodible pipes and fittings may be repaired in
accordance with the manufacturer's specifications.
    (d) Repaired tanks and piping must be tightness tested in
accordance with Sec.  280.43(c) and Sec.  280.44(b) within 30 days
following the date of the completion of the repair except as provided
in paragraphs (d)(1) through (4), of this section:
    (1) The repaired tank is internally inspected in accordance with a
code of practice developed by a nationally recognized association or an
independent testing laboratory; or
    (2) The repaired portion of the UST system is monitored monthly for
releases in accordance with a method specified in Sec.  280.43(d)
through (i);
    (3) UST systems with secondary containment must be tested as
specified in Sec.  280.36 within 30 days following the completion of
any repair. Tanks using interstitial sensors must be tested using a
vacuum, pressure, or liquid method in accordance with one of the
criteria listed in Sec.  280.36(a)(1)(ii) following any repair; or
    (4) Another test method is used that is determined by the
implementing agency to be no less protective of human health and the
environment than those listed above.
    (e) Within 6 months following the repair of any cathodically
protected UST system, the cathodic protection system must be tested in
accordance with Sec.  280.31(b) and (c) to ensure that it is operating
properly.
    (f) Within 30 days following any repair to spill or overfill
prevention equipment, the repaired spill or overfill prevention
equipment must be tested in accordance with Sec.  280.35 to ensure it
is operating properly.
    (g) UST system owners and operators must maintain records (in
accordance with Sec.  280.34) of each repair until the UST system is
permanently closed or undergoes a change-in-service pursuant to Sec.
280.71.
    10. Revise Sec.  280.34 to read as follows:

Sec.  280.34  Reporting and recordkeeping.

    Owners and operators of UST systems must cooperate fully with
inspections, monitoring and testing conducted by the implementing
agency, as well as requests for document submission, testing, and
monitoring by the owner or operator pursuant to section 9005 of
Subtitle I of the Solid Waste Disposal Act, as amended.
    (a) Reporting. Owners and operators must submit the following
information to the implementing agency:
    (1) Notification for all UST systems (Sec.  280.22), which includes
certification of installation for new UST systems (Sec.  280.20(e)) and
notification when any person assumes ownership of an UST system (Sec.
280.22(b));
    (2) Reports of all releases including suspected releases (Sec.
280.50), spills and overfills (Sec.  280.53), and confirmed releases
(Sec.  280.61);
    (3) Corrective actions planned or taken including initial abatement
measures (Sec.  280.62), initial site characterization (Sec.  280.63),
free product removal (Sec.  280.64), investigation of soil and ground-
water cleanup (Sec.  280.65), and corrective action plan (Sec.
280.66); and
    (4) A notification before permanent closure or change-in-service
(Sec.  280.71).
    (b) Recordkeeping. Owners and operators must maintain the following
information:
    (1) A corrosion expert's analysis of site corrosion potential if
corrosion protection equipment is not used (Sec.  280.20(a)(4); Sec.
280.20(b)(3)).
    (2) Documentation of operation of corrosion protection equipment
(Sec.  280.31(d));
    (3) Documentation of compatibility for UST systems (Sec.
280.32(c));
    (4) Records for all UST system equipment installed or replaced
after [effective date of rule] (Sec.  280.32(c));
    (5) Documentation of UST system repairs (Sec.  280.33(g));
    (6) Documentation of compliance for spill and overfill prevention
equipment (Sec.  280.35(c));
    (7) Documentation of compliance for tanks, piping, and containment
sumps using interstitial monitoring (Sec.  280.36(c));
    (8) Documentation of periodic walkthrough inspections (Sec.
280.37(b));
    (9) Recent compliance with release detection requirements (Sec.
280.45);
    (10) Results of the site investigation conducted at permanent
closure (Sec.  280.74); and
    (11) Documentation of operator training (Sec.  280.245).
    (c) Availability and Maintenance of Records. Owners and operators
must keep the records required either:
    (1) At the UST site and immediately available for inspection by the
implementing agency; or
    (2) At a readily available alternative site and be provided for
inspection to the implementing agency upon request.
    (3) In the case of permanent closure records required under Sec.
280.74, owners and operators are also provided with the additional
alternative of mailing closure records to the implementing agency if
they cannot be kept at the site or an alternative site as indicated
above.
    11. Add Sec.  280.35 to Subpart C to read as follows:

Sec.  280.35  Periodic testing of spill and overfill prevention
equipment.

    (a) Owners and operators of UST systems with spill and overfill
prevention equipment must meet the following requirements to ensure the
equipment is operating properly and will prevent releases to the
environment:
    (1) Spill prevention equipment (such as a catchment basin, spill
bucket, or other spill containment device) must prevent releases to the
environment by meeting one of the following:
    (i) The spill prevention equipment has two walls and the space
between the walls is monitored continuously to ensure the integrity of
the inner and outer walls is maintained; or
    (ii) The spill prevention equipment is tested at installation and
at least once every 12 months to ensure the spill prevention equipment
is liquid tight by using vacuum, pressure, or liquid testing in
accordance with one of the following criteria:
    (A) Requirements developed by the manufacturer (Note: Owners and
operators may use this option only if the manufacturer has developed
testing requirements);
    (B) Code of practice developed by a nationally recognized
association or independent testing laboratory; or
    (C) Requirements determined by the implementing agency to be no
less protective of human health and the environment than the
requirements listed in paragraphs (a)(1)(ii)(A) and (B) of this
section; and
    (2) Overfill prevention equipment must be tested at installation
and at least once every three years. At a minimum, testing must ensure
that overfill prevention equipment is set to activate at the correct
level specified in Sec.  280.20(c) and will activate when regulated
substance reaches that level. Testing must be conducted in accordance
with one of the criteria in paragraph (a)(1)(ii) of this section.
    (b) Owners and operators must begin meeting these requirements as
follows:
    (1) For UST systems in use on or before [Effective date of rule]:
    (i) Not later than [One year after effective date of rule] for
spill prevention equipment; and
    (ii) For overfill prevention equipment, not later than the phase-in
schedule in the following table:

                           Phase-In Schedule for Overfill Prevention Equipment Testing
----------------------------------------------------------------------------------------------------------------
                 Criteria                                Date by which first test must be  conducted
----------------------------------------------------------------------------------------------------------------
One or more USTs at the facility were       [1 year after effective date of rule].
 installed on or before 12/22/1988.
No USTs at the facility were installed on   [2 years after effective date of rule].
 or before 12/22/1988 and at least one UST
 at the facility was installed on or
 before 12/22/1998.
All USTs at the facility were installed     [3 years after effective date of rule].
 after 12/22/1998.
----------------------------------------------------------------------------------------------------------------

     (2) For UST systems brought into use after [Effective date of
rule], these requirements apply at installation.
    (c) Owners and operators must maintain the following records (in
accordance with Sec.  280.34) for spill and overfill prevention
equipment:
    (1) All records of spill prevention equipment testing and overfill
prevention equipment testing must be maintained for three years; and
    (2) For spill prevention equipment not tested every 12 months,
documentation showing that the spill prevention equipment has two walls
and is monitored continuously. Owners and operators must maintain this
documentation for as long as the spill prevention equipment is
monitored continuously, and for three additional years after continuous
monitoring ends.
    12. Add Sec.  280.36 to Subpart C to read as follows:

Sec.  280.36  Periodic testing of secondary containment.

    (a) Owners and operators of UST systems with secondary containment
using interstitial monitoring must ensure the integrity of all
interstitial areas (including all containment sumps used for
interstitial monitoring).
    (1) Tanks must meet one of the following:
    (i) The interstitial space is continuously monitored; or
    (ii) The interstitial space is not continuously monitored and the
integrity of the interstitial space is ensured at least once every
three years by using vacuum, pressure, or liquid testing in accordance
with one of the following criteria:
    (A) Requirements developed by the manufacturer (Note: Owners and
operators may use this option only if the manufacturer has developed
integrity testing requirements);
    (B) Code of practice developed by a nationally recognized
association or independent testing laboratory; or
    (C) Requirements determined by the implementing agency to be no
less protective of human health and the environment than the
requirements listed in paragraphs (a)(1)(ii)(A) and (B) of this
section;
    (2) Piping must meet one of the following:
    (i) The interstitial space is continuously monitored using vacuum,
pressure, or a liquid-filled interstitial space; or
    (ii) The interstitial space is monitored using an interstitial
monitoring method not listed in paragraph (a)(2)(i) of this section and
the integrity of the interstitial space is ensured at least once every
three years by using vacuum, pressure, or liquid testing in accordance
with one of the criteria listed in paragraph (a)(1)(ii) of this
section; and
    (3) Containment sumps must meet one of the following:
    (i) The containment sump has two walls and the space between the
walls is continuously monitored; or
    (ii) The containment sump is tested at least every three years to
ensure the containment sump is liquid tight by using vacuum, pressure,
or liquid testing in accordance with one of the criteria listed in
paragraph (a)(1)(ii) of this section.

    Note to paragraphs (a)(1)(ii), (a)(2)(ii), and (a)(3)(ii): The
following codes of practice may be used to comply with paragraphs
(a)(1)(ii), (a)(2)(ii), and (a)(3)(ii) of this section:
    (A) Steel Tank Institute Recommended Practice R012,
``Recommended Practice for Interstitial Tightness Testing of
Existing Underground Double Wall Steel Tanks''; or
    (B) Fiberglass Tank and Pipe Institute Protocol, ``Field Test
Protocol for Testing the Annular Space of Installed Underground
Fiberglass Double and Triple-Wall Tanks with Dry Annular Space''.

    (b) Owners and operators of UST systems using interstitial
monitoring must begin meeting this requirement as follows:
    (1) For UST systems in use on or before [Effective date of rule],
not later than the phase-in schedule in the following table:

                                 Phase-In Schedule for Interstitial Area Testing
----------------------------------------------------------------------------------------------------------------
                 Criteria                                Date by which first test must be conducted
----------------------------------------------------------------------------------------------------------------
One or more USTs at the facility were       [1 year after effective date of rule].
 installed on or before 12/22/1988.
No USTs at the facility were installed on   [2 years after effective date of rule].
 or before 12/22/1988 and at least one UST
 at the facility was installed on or
 before 12/22/1998.
All USTs at the facility were installed     [3 years after effective date of rule].
 after 12/22/1998.
----------------------------------------------------------------------------------------------------------------

     (2) For UST systems brought into use after [Effective date of
rule], these requirements apply at installation.
    (c) Owners and operators must maintain the following records (in
accordance with Sec.  280.34) for the time frames indicated for each
tank, piping, and containment sump that uses interstitial monitoring:
    (1) Records of interstitial space testing must be maintained for
three years; or
    (2) As appropriate, records demonstrating: the tank is using
continuous interstitial monitoring; the piping is using continuous
interstitial monitoring with vacuum, pressure, liquid-filled
interstitial space; and the containment sump has two walls and uses
continuous interstitial monitoring. Owners and operators must maintain
these records for as long as the tank, piping, or containment sump uses
one of these continuous methods of interstitial monitoring, and for
three additional years after continuous monitoring ends.
    13. Add Sec.  280.37 to Subpart C to read as follows:

Sec.  280.37  Periodic operation and maintenance walkthrough
inspections.

    (a) To properly operate and maintain UST systems, owners and
operators must meet one of the following:

    (1) Conduct a walkthrough inspection at least once every 30 days
that, at a minimum and as appropriate to the facility, checks the
following equipment as specified:
    (i) Spill prevention equipment--open and visually check for any
damage; remove any liquid or debris; check each fill cap to make sure
it is securely on the fill pipe; and for spill prevention equipment
with continuous interstitial monitoring, check for a leak in the
interstitial area,
    (ii) Sumps--open and visually check for any damage, leaks to the
containment area, or releases to the environment; remove any liquid (in
contained sumps) or debris; and for sumps with continuous interstitial
monitoring, check for a leak in the interstitial area,
    (iii) Dispenser cabinets--open and visually check for any damage,
leaks to the containment area, or releases to the environment; remove
any liquid (in dispensers with under-dispenser containment) or debris;
and for under-dispenser containment with continuous interstitial
monitoring, check for a leak in the interstitial area,
    (iv) Monitoring/observation wells--check covers to make sure they
are secured,
    (v) Cathodic protection--check to make sure impressed current
cathodic protection rectifiers are on and operating; and ensure records
of three year cathodic protection testing and 60 day impressed current
system inspections are reviewed and current, and
    (vi) Release detection systems--check to make sure the release
detection system is on and operating with no alarms or other unusual
operating conditions present; check any devices such as tank gauge
sticks, groundwater bailers, and hand-held vapor monitoring devices for
operability and serviceability; and ensure records of release detection
testing are reviewed monthly and current; or
    (2) Conduct operation and maintenance walkthrough inspections at
least once every 30 days according to a standard code of practice
developed by a nationally recognized association or independent testing
laboratory that are comparable to (a)(1) of this section; or
    (3) Conduct operation and maintenance walkthrough inspections
developed by the implementing agency that are comparable to paragraph
(a)(1) of this section.
    (b) Owners and operators must maintain records (in accordance with
Sec.  280.34) of operation and maintenance walkthrough inspections for
one year. The record must include a listing of each area checked,
whether each area checked was acceptable or needed to have any action
taken, and a description of any actions taken to correct an issue.

    Note to paragraph (a)(2): The following code of practice may be
used to comply with paragraph (a)(2) of this section:
    (A) Petroleum Equipment Institute Recommended Practice RP 900,
``Recommended Practices for the Inspection and Maintenance of UST
Systems''.

    14. Revise Subpart D to read as follows:
Subpart D--Release Detection
Sec.
280.40 General requirements for all UST systems.
280.41 Requirements for petroleum UST systems.
280.42 Requirements for hazardous substance UST systems.
280.43 Methods of release detection for tanks.
280.44 Methods of release detection for piping.
280.45 Release detection recordkeeping.
280.46 Alternative methods of release detection for field-
constructed tanks.
280.47 Alternative methods of release detection for bulk piping.

Subpart D--Release Detection

Sec.  280.40  General requirements for all UST systems.

    (a) Owners and operators of UST systems must provide a method, or
combination of methods, of release detection that:
    (1) Can detect a release from any portion of the tank and the
connected underground piping that routinely contains product;
    (2) Is installed and calibrated in accordance with the
manufacturer's instructions;
    (3) Beginning on [One year after effective date of rule], is
operated and maintained, and electronic and mechanical components are
tested for proper operation, in accordance with one of the following:
Manufacturer's instructions; a code of practice developed by a
nationally recognized association or independent testing laboratory; or
requirements developed by the implementing agency. A test of the proper
operation must be performed at least annually and, at a minimum and as
applicable to the facility, cover the following components and
criteria:
    (i) Automatic tank gauge and other controllers: Test alarm; verify
system configuration; test battery backup;
    (ii) Probes and sensors: Inspect for residual buildup, ensure
floats move freely; ensure shaft is not damaged; ensure cables are free
of kinks, bends, and breaks; test alarm operability and communication
with controller;
    (iii) Line leak detector: Test operation to meet criteria in Sec.
280.44(a) by simulating a leak; inspect leak sensing o-ring; and
    (iv) Vacuum pumps and pressure gauges: Ensure proper communication
with sensors and controller.
    (4) Meets the performance requirements in Sec.  280.43, Sec.
280.44, Sec.  280.46, or Sec.  280.47, as applicable, with any
performance claims and their manner of determination described in
writing by the equipment manufacturer or installer. In addition, the
methods listed in Sec.  280.43(b); Sec.  280.43(c); Sec.  280.43(d);
Sec.  280.43(h); Sec.  280.43(i);Sec.  280.44(a); Sec.  280.44(b);
Sec.  280.46; and Sec.  280.47, must be capable of detecting the leak
rate or quantity specified for that method in the corresponding section
of the rule with a probability of detection of 0.95 and a probability
of false alarm of 0.05.
    (b) When a release detection method operated in accordance with the
performance standards in Sec.  280.43, Sec.  280.44, Sec.  280.46, or
Sec.  280.47 indicates a release may have occurred, owners and
operators must notify the implementing agency in accordance with
subpart E.
    (c) Owners and operators of Airport hydrant fuel distribution
systems, UST systems with field-constructed tanks, and wastewater
treatment tank systems must comply with the release detection
requirements of this Subpart according to the following table:

   Schedule for Phase-In of Release Detection for Airport Hydrant Fuel
   Distribution Systems, UST Systems With Field-Constructed Tanks, and
                    Wastewater Treatment Tank Systems
------------------------------------------------------------------------
                                Time frame (after
     Type of UST system        [effective date of      Description of
                                     rule])              requirement
------------------------------------------------------------------------
Bulk piping associated with   Within three years..  Conduct one bulk
 airport hydrant fuel         Between years three    piping tightness
 distribution systems and      and six.              test according to
 field-constructed tanks                             Sec.   280.47(a)
 using Sec.   280.47(a) for                          using the maximum
 piping release detection.                           detectable leak
                                                     rates for
                                                     semiannual testing.
                                                     For bulk piping
                                                     segments not
                                                     capable of meeting
                                                     the up to 3.0
                                                     gallon per hour
                                                     leak rate, owners
                                                     and operators may
                                                     use a leak rate of
                                                     up to 6.0 gallons
                                                     per hour.
                             -------------------------------------------
                              Between years six     Conduct one bulk
                               and seven.            piping tightness
                                                     test according to
                                                     Sec.   280.47(a)
                                                     using the maximum
                                                     detectable leak
                                                     rates for
                                                     semiannual testing.
                             -------------------------------------------
                              After year seven....  Conduct bulk piping
                                                     tightness testing
                                                     according to Sec.
                                                     280.47(a).
------------------------------------------------------------------------
Bulk piping associated with   Within three years..  Perform release
 airport hydrant fuel                                detection according
 distribution systems and                            to this subpart.
 field-constructed tanks not
 using Sec.   280.47(a) for
 piping release detection.
------------------------------------------------------------------------
Underground tanks associated  Within three years..  Perform release
 with hydrant fuel                                   detection according
 distribution systems and                            to this subpart.
 field-constructed tanks.
------------------------------------------------------------------------
Wastewater treatment tank     Within three years..  Perform release
 systems.                                            detection according
                                                     to this subpart.
------------------------------------------------------------------------

    (d) Any UST system that cannot apply a method of release detection
that complies with the requirements of this subpart must complete the
closure procedures in subpart G. For previously deferred UST systems
described in subpart A, this requirement applies after the effective
date for subpart D described in Sec.  280.10(a)(1).

Sec.  280.41  Requirements for petroleum UST systems.

    Owners and operators of petroleum UST systems must provide release
detection for tanks and piping as follows:
    (a) Tanks. Tanks must be monitored for releases as follows:
    (1) Tanks installed on or before [effective date of rule] must be
monitored for releases at least every 30 days using one of the methods
listed in Sec.  280.43(d) through (i) except that:
    (i) UST systems that meet the performance standards in Sec.  280.20
or Sec.  280.21, and the monthly inventory control requirements in
Sec.  280.43(a) or (b), may use tank tightness testing (conducted in
accordance with Sec.  280.43(c)) at least every 5 years until 10 years
after the tank was installed or upgraded under Sec.  280.21(b),
whichever is later;
    (ii) Tanks with capacity of 550 gallons or less and tanks with a
capacity of 551 to 1,000 gallons that meet the tank diameter criteria
in Sec.  280.43(b) may use manual tank gauging (conducted in accordance
with Sec.  280.43(b));
    (iii) Field-constructed tanks greater than 50,000 gallons may use
the alternative release detection requirements in Sec.  280.46; and
    (iv) Tanks using Sec.  280.43(e) or Sec.  280.43(f) to monitor for
releases, must begin using one of the methods listed in Sec.
280.43(d), (g), (h), or (i) not later than [Five years after effective
date of rule].
    (2) Tanks installed after [effective date of rule] must be
monitored for releases at least every 30 days in accordance with Sec.
280.43(g).
    (b) Piping. Underground piping that routinely contains regulated
substances must be monitored for releases in a manner that meets one of
the following requirements:
    (1) Piping installed on or before [effective date of rule] must
meet one of the following:
    (i) Pressurized piping. Underground piping that conveys regulated
substances under pressure must:
    (A) Be equipped with an automatic line leak detector conducted in
accordance with Sec.  280.44(a); and
    (B) Have an annual line tightness test conducted in accordance with
Sec.  280.44(b) or have monthly monitoring conducted in accordance with
Sec.  280.44(c).
    (ii) Suction piping. Underground piping that conveys regulated
substances under suction must either have a line tightness test
conducted at least every 3 years and in accordance with Sec.
280.44(b), or use a monthly monitoring method conducted in accordance
with Sec.  280.44(c). No release detection is required for suction
piping that is designed and constructed to meet the following
standards:
    (A) The below-grade piping operates at less than atmospheric
pressure;
    (B) The below-grade piping is sloped so that the contents of the
pipe will drain back into the storage tank if the suction is released;
    (C) Only one check valve is included in each suction line;
    (D) The check valve is located directly below and as close as
practical to the suction pump; and
    (E) A method is provided that allows compliance with paragraphs
(b)(2)(ii)-(iv) of this section to be readily determined.
    (iii) Bulk piping. Underground piping associated with airport
hydrant fuel distribution systems and field-constructed tanks must meet
one of the following release detection requirements:
    (A) The requirements in paragraphs (b)(1)(i) or (ii) of this
section; or
    (B) The alternative release detection requirements in Sec.  280.47.
    (2) Piping installed or replaced after [effective date of rule]
must meet one of the following:
    (i) Pressurized piping must be monitored for releases at least
every 30

days in accordance with Sec.  280.43(g) and be equipped with an
automatic line leak detector in accordance with Sec.  280.44(a).
    (ii) Suction piping must be monitored for releases at least every
30 days in accordance with Sec.  280.43(g). No release detection is
required for suction piping that meets paragraphs (b)(1)(ii)(A) through
(E) of this section.
    (iii) Underground bulk piping associated with airport hydrant fuel
distribution systems and field-constructed tanks must meet the
requirements in paragraph (b)(1) of this section.

Sec.  280.42  Requirements for hazardous substance UST systems.

    Owners and operators of hazardous substance UST systems must
provide containment that meets the following requirements and monitor
these systems using Sec.  280.43(g) at least every 30 days:
    (a) Secondary containment systems must be designed, constructed and
installed to:
    (1) Contain regulated substances leaked from the primary
containment until they are detected and removed;
    (2) Prevent the release of regulated substances to the environment
at any time during the operational life of the UST system; and
    (3) Be checked for evidence of a release at least every 30 days.

    Note to paragraph (a): The provisions of 40 CFR 265.193,
Containment and Detection of Releases, may be used to comply with
these requirements for tanks installed on or before [effective date
of rule].

    (b) Double-walled tanks must be designed, constructed, and
installed to:
    (1) Contain a release from any portion of the inner tank within the
outer wall; and
    (2) Detect the failure of the inner wall.
    (c) External liners (including vaults) must be designed,
constructed, and installed to:
    (1) Contain 100 percent of the capacity of the largest tank within
its boundary;
    (2) Prevent the interference of precipitation or ground-water
intrusion with the ability to contain or detect a release of regulated
substances; and
    (3) Surround the tank completely (i.e., it is capable of preventing
lateral as well as vertical migration of regulated substances).
    (d) Underground piping must be equipped with secondary containment
that satisfies the requirements of this section (e.g., trench liners,
double-walled pipe). In addition, underground piping that conveys
regulated substances under pressure must be equipped with an automatic
line leak detector in accordance with Sec.  280.44(a).
    (e) For hazardous substance UST systems installed on or before
[Effective date of rule] other methods of release detection may be used
if owners and operators:
    (1) Demonstrate to the implementing agency that an alternate method
can detect a release of the stored substance as effectively as any of
the methods allowed in Sec. Sec.  280.43(b) through (i) can detect a
release of petroleum;
    (2) Provide information to the implementing agency on effective
corrective action technologies, health risks, and chemical and physical
properties of the stored substance, and the characteristics of the UST
site; and,
    (3) Obtain approval from the implementing agency to use the
alternate release detection method before the installation and
operation of the new UST system.

Sec.  280.43  Methods of release detection for tanks.

    Each method of release detection for tanks used to meet the
requirements of Sec.  280.41, except field-constructed tanks installed
on or before [Effective date of rule] with capacities greater than
50,000 gallons that meet Sec.  280.46, must be conducted in accordance
with the following:
    (a) Inventory control. Product inventory control (or another test
of equivalent performance) must be conducted monthly to detect a
release of at least 1.0 percent of flow-through plus 130 gallons on a
monthly basis in the following manner:
    (1) Inventory volume measurements for regulated substance inputs,
withdrawals, and the amount still remaining in the tank are recorded
each operating day;
    (2) The equipment used is capable of measuring the level of product
over the full range of the tank's height to the nearest one-eighth of
an inch;
    (3) The regulated substance inputs are reconciled with delivery
receipts by measurement of the tank inventory volume before and after
delivery;
    (4) Deliveries are made through a drop tube that extends to within
one foot of the tank bottom;
    (5) Product dispensing is metered and recorded within the local
standards for meter calibration or an accuracy of 6 cubic inches for
every 5 gallons of product withdrawn; and
    (6) The measurement of any water level in the bottom of the tank is
made to the nearest one-eighth of an inch at least once a month.

    Note to paragraph (a): Practices described in the American
Petroleum Institute Recommended Practice RP 1621, ``Bulk Liquid
Stock Control at Retail Outlets'' may be used, where applicable, as
guidance in meeting the requirements of this paragraph.

    (b) Manual tank gauging. Manual tank gauging must meet the
following requirements:
    (1) Tank liquid level measurements are taken at the beginning and
ending of a period of at least 36 hours during which no liquid is added
to or removed from the tank;
    (2) Level measurements are based on an average of two consecutive
stick readings at both the beginning and ending of the period;
    (3) The equipment used is capable of measuring the level of product
over the full range of the tank's height to the nearest one-eighth of
an inch;
    (4) A release is suspected and subject to the requirements of
subpart E if the variation between beginning and ending measurements
exceeds the weekly or monthly standards in the following table:

----------------------------------------------------------------------------------------------------------------
                                         Minimum duration of     Weekly standard  (one   Monthly standard  (four
        Nominal tank capacity                    test                    test)                test average)
----------------------------------------------------------------------------------------------------------------
550 gallons or less..................  36 hours...............  10 gallons.............  5 gallons.
551-1,000 gallons (when tank diameter  44 hours...............  9 gallons..............  4 gallons.
 is 64'').
551-1,000 gallons (when tank diameter  58 hours...............  12 gallons.............  6 gallons.
 is 48'').
551-1,000 gallons (also requires       36 hours...............  13 gallons.............  7 gallons.
 periodic tank tightness testing).
1,001-2,000 gallons (also requires     36 hours...............  26 gallons.............  13 gallons.
 periodic tank tightness testing).
----------------------------------------------------------------------------------------------------------------

    (5) Tanks of 550 gallons or less nominal capacity and tanks with a
nominal capacity of 551 to 1,000 gallons that meet the tank diameter
criteria in the table in paragraph (b)(4) of this section may use this
as the sole method

of release detection. All other tanks with a nominal capacity of 551 to
2,000 gallons may use the method in place of inventory control in Sec.
280.43(a). Tanks of greater than 2,000 gallons nominal capacity may not
use this method to meet the requirements of this Subpart.
    (c) Tank tightness testing. Tank tightness testing (or another test
of equivalent performance) must be capable of detecting a 0.1 gallon
per hour leak rate from any portion of the tank that routinely contains
product while accounting for the effects of thermal expansion or
contraction of the product, vapor pockets, tank deformation,
evaporation or condensation, and the location of the water table.
    (d) Automatic tank gauging. Equipment for automatic tank gauging
that tests for the loss of product and conducts inventory control must
meet the following requirements:
    (1) The automatic product level monitor test can detect a 0.2
gallon per hour leak rate from any portion of the tank that routinely
contains product; and
    (2) The test must be performed with the system operating in one of
the following modes:
    (i) In-tank static testing conducted on a periodic basis; or
    (ii) Continuous in-tank leak detection operating on an
uninterrupted basis or operating within a process that allows the
system to gather incremental measurements to determine the leak status
of the tank at least once every 30 days.
    (e) Vapor monitoring. Testing or monitoring for vapors within the
soil gas of the excavation zone must meet the following requirements:
    (1) The materials used as backfill are sufficiently porous (e.g.,
gravel, sand, crushed rock) to readily allow diffusion of vapors from
releases into the excavation area;
    (2) The stored regulated substance, or a tracer compound placed in
the tank system, is sufficiently volatile (e.g., gasoline) to result in
a vapor level that is detectable by the monitoring devices located in
the excavation zone in the event of a release from the tank;
    (3) The measurement of vapors by the monitoring device is not
rendered inoperative by the ground water, rainfall, or soil moisture or
other known interferences so that a release could go undetected for
more than 30 days;
    (4) The level of background contamination in the excavation zone
will not interfere with the method used to detect releases from the
tank;
    (5) The vapor monitors are designed and operated to detect any
significant increase in concentration above background of the regulated
substance stored in the tank system, a component or components of that
substance, or a tracer compound placed in the tank system;
    (6) In the UST excavation zone, the site is assessed to ensure
compliance with the requirements in paragraphs (e)(1) through (4) of
this section and to establish the number and positioning of monitoring
wells that will detect releases within the excavation zone from any
portion of the tank that routinely contains product; and
    (7) Monitoring wells are clearly marked and secured to avoid
unauthorized access and tampering.
    (f) Ground-water monitoring. Testing or monitoring for liquids on
the ground water must meet the following requirements:
    (1) The regulated substance stored is immiscible in water and has a
specific gravity of less than one;
    (2) Ground water is never more than 20 feet from the ground surface
and the hydraulic conductivity of the soil(s) between the UST system
and the monitoring wells or devices is not less than 0.01 cm/sec (e.g.,
the soil should consist of gravels, coarse to medium sands, coarse
silts or other permeable materials);
    (3) The slotted portion of the monitoring well casing must be
designed to prevent migration of natural soils or filter pack into the
well and to allow entry of regulated substance on the water table into
the well under both high and low ground-water conditions;
    (4) Monitoring wells shall be sealed from the ground surface to the
top of the filter pack;
    (5) Monitoring wells or devices intercept the excavation zone or
are as close to it as is technically feasible;
    (6) The continuous monitoring devices or manual methods used can
detect the presence of at least one-eighth of an inch of free product
on top of the ground water in the monitoring wells;
    (7) Within and immediately below the UST system excavation zone,
the site is assessed to ensure compliance with the requirements in
paragraphs (f)(1) through (5) of this section and to establish the
number and positioning of monitoring wells or devices that will detect
releases from any portion of the tank that routinely contains product;
and
    (8) Monitoring wells are clearly marked and secured to avoid
unauthorized access and tampering.
    (g) Interstitial monitoring. Interstitial monitoring between the
UST system and a secondary barrier immediately around or beneath it may
be used, but only if the system is designed, constructed and installed
to detect a leak from any portion of the tank that routinely contains
product and also meets one of the following requirements:
    (1) For double-walled UST systems, the sampling or testing method
can detect a release through the inner wall in any portion of the tank
that routinely contains product;
    (2) For UST systems with a secondary barrier within the excavation
zone, the sampling or testing method used can detect a release between
the UST system and the secondary barrier;
    (i) The secondary barrier around or beneath the UST system consists
of artificially constructed material that is sufficiently thick and
impermeable (at least 10-6 cm/sec for the regulated
substance stored) to direct a release to the monitoring point and
permit its detection;
    (ii) The barrier is compatible with the regulated substance stored
so that a release from the UST system will not cause a deterioration of
the barrier allowing a release to pass through undetected;
    (iii) For cathodically protected tanks, the secondary barrier must
be installed so that it does not interfere with the proper operation of
the cathodic protection system;
    (iv) The ground water, soil moisture, or rainfall will not render
the testing or sampling method used inoperative so that a release could
go undetected for more than 30 days;
    (v) The site is assessed to ensure that the secondary barrier is
always above the ground water and not in a 25-year flood plain, unless
the barrier and monitoring designs are for use under such conditions;
and,
    (vi) Monitoring wells are clearly marked and secured to avoid
unauthorized access and tampering.
    (3) For tanks with an internally fitted liner, an automated device
can detect a release between the inner wall of the tank and the liner,
and the liner is compatible with the substance stored.
    (4) For UST systems using continuous vacuum, pressure, or liquid-
filled methods of interstitial monitoring, the method must be capable
of detecting a breach in both the inner and outer walls of the tank
and/or piping.
    (h) Statistical inventory reconciliation. Statistically based
testing or monitoring methods must meet the following requirements:
    (1) Report a quantitative result with a calculated leak rate;
    (2) Be capable of detecting a leak rate of 0.2 gallon per hour; and

    (3) Use a threshold that does not exceed one-half the minimum
detectible leak rate.
    (i) Other methods. Any other type of release detection method, or
combination of methods, can be used if:
    (1) It can detect a 0.2 gallon per hour leak rate or a release of
150 gallons within a month with a probability of detection of 0.95 and
a probability of false alarm of 0.05; or
    (2) The implementing agency may approve another method if the owner
and operator can demonstrate that the method can detect a release as
effectively as any of the methods allowed in paragraphs (c) through (h)
of this section. In comparing methods, the implementing agency shall
consider the size of release that the method can detect and the
frequency and reliability with which it can be detected. If the method
is approved, the owner and operator must comply with any conditions
imposed by the implementing agency on its use to ensure the protection
of human health and the environment.

Sec.  280.44  Methods of release detection for piping.

    Each method of release detection for piping used to meet the
requirements of Sec.  280.41, except bulk piping that meets Sec.
280.47, must be conducted in accordance with the following:
    (a) Automatic line leak detectors. Methods which alert the operator
to the presence of a leak by restricting or shutting off the flow of
regulated substances through piping or triggering an audible or visual
alarm may be used only if they detect leaks of 3 gallons per hour at 10
pounds per square inch line pressure within 1 hour. An annual test of
the operation of the leak detector must be conducted in accordance with
Sec.  280.40(a)(3).
    (b) Line tightness testing. A periodic test of piping may be
conducted only if it can detect a 0.1 gallon per hour leak rate at one
and one-half times the operating pressure.
    (c) Applicable tank methods. Except as described in Sec.
280.41(a), any of the methods in Sec.  280.43(e) through (i) may be
used if they are designed to detect a release from any portion of the
underground piping that routinely contains regulated substances.

Sec.  280.45  Release detection recordkeeping.

    All UST system owners and operators must maintain records in
accordance with Sec.  280.34 demonstrating compliance with all
applicable requirements of this subpart. These records must include the
following:
    (a) All written performance claims pertaining to any release
detection system used, and the manner in which these claims have been
justified or tested by the equipment manufacturer or installer, must be
maintained for 5 years, or for another reasonable period of time
determined by the implementing agency, from the date of installation;
    (b) The results of any sampling, testing, or monitoring must be
maintained for at least 1 year, or for another reasonable period of
time determined by the implementing agency, except as follows:
    (1) The results of annual operation tests conducted in accordance
with Sec.  280.40(a)(3) must be maintained for three years. At a
minimum, the results must list each component tested, indicate whether
each component tested meets criteria in Sec.  280.40(a)(3) or needs to
have action taken, and describe any action taken to correct an issue;
and
    (2) The results of tank tightness testing or bulk tank tightness
testing conducted in accordance with Sec.  280.43(c) or Sec.  280.46
must be retained until the next test is conducted; and
    (c) Written documentation of all calibration, maintenance, and
repair of release detection equipment permanently located on-site must
be maintained for at least one year after the servicing work is
completed, or for another reasonable time period determined by the
implementing agency. Any schedules of required calibration and
maintenance provided by the release detection equipment manufacturer
must be retained for 5 years from the date of installation.

Sec.  280.46  Alternative methods of release detection for field-
constructed tanks.

    Owners and operators of field-constructed tanks with a capacity
greater than 50,000 gallons may use one or a combination of the
following alternative methods of release detection:
    (a) Conduct an annual bulk tank tightness test that can detect a
0.5 gallon per hour leak rate;
    (b) Use an automatic tank gauging system to perform release
detection at least every 30 days that can detect a leak rate less than
or equal to one gallon per hour. This method must be combined with a
bulk tank tightness test that can detect a 0.2 gallon per hour leak
rate performed at least every three years;
    (c) Use an automatic tank gauging system to perform release
detection at least every 30 days that can detect a leak rate less than
or equal to two gallons per hour. This method must be combined with a
bulk tank tightness test that can detect a 0.2 gallon per hour leak
rate performed at least every two years; or
    (d) Another method approved by the implementing agency if the owner
and operator can demonstrate that the method can detect a release as
effectively as any of the methods allowed in paragraphs (a) through (c)
of this section. In comparing methods, the implementing agency shall
consider the size of release that the method can detect and the
frequency and reliability of detection. If the method is approved, the
owner and operator must comply with any conditions imposed by the
implementing agency on its use.

Sec.  280.47  Alternative methods of release detection for bulk piping.

    Owners and operators of underground piping associated with airport
hydrant fuel distribution systems and field-constructed tanks may use
one or a combination of the following alternative methods of release
detection:
    (a) Perform a semiannual or annual bulk line tightness test at or
above operating pressure in accordance with the table below. Bulk
piping segments >=100,000 gallons not capable of meeting the maximum
3.0 gallon per hour leak rate for the semiannual test may be tested at
a leak rate up to 6.0 gallons per hour according to the schedule in
Sec.  280.40(c):

          Maximum Detectable Leak Rate per Test Section Volume
------------------------------------------------------------------------
                                    Semiannual test       Annual test
                                  maximum detectable  maximum detectable
  Test section volume (gallons)        leak rate           leak rate
                                  (gallons per hour)  (gallons per hour)
------------------------------------------------------------------------
<50,000.........................                1.0                 0.5
>=50,000 to <75,000.............                1.5                 0.75
>=75,000 to <100,000............                2.0                 1.0
>=100,000.......................                3.0                 1.5
------------------------------------------------------------------------

     (b) Perform continuous interstitial monitoring designed to detect
a release from any portion of the underground piping that routinely
contains product in accordance with Sec.  280.43(g);
    (c) Use an automatic line leak detector that alerts the operator to
the presence of a leak by restricting or shutting off flow of regulated
substances through piping or triggering an audible or visual alarm.
This method may be used only if it can detect a leak of three gallons
per hour at 10 pounds per square inch line pressure within one hour or
equivalent. When using this method, the following must also be met:
    (1) Perform interstitial monitoring, designed to detect a release
from any portion of the underground piping that routinely contains
product, in accordance with Sec.  280.43(g) at least every three
months; and
    (2) Conduct an annual test of the operation of the leak detector in
accordance with Sec.  280.40(a)(3); or
    (d) Another method approved by the implementing agency if the owner
and operator can demonstrate that the method can detect a release as
effectively as any of the methods allowed in paragraphs (a) through (c)
of this section. In comparing methods, the implementing agency shall
consider the size of release that the method can detect and the
frequency and reliability of detection. If the method is approved, the
owner and operator must comply with any conditions imposed by the
implementing agency on its use.
    15. In Sec.  280.50 revise paragraphs (b) and (c) to read as
follows:

Sec.  280.50  Reporting of suspected releases.

* * * * *
    (b) Unusual operating conditions observed by owners and operators
(such as the erratic behavior of product dispensing equipment, the
sudden loss of product from the UST system, an unexplained presence of
water in the tank, or water or product in the interstitial space of
secondarily contained systems), unless system equipment is found to be
defective but not leaking, and is immediately repaired or replaced.
    (c) Monitoring results, including alarms, from a release detection
method required under Sec.  280.41 and Sec.  280.42 that indicate a
release may have occurred unless:
    (1) The monitoring device is found to be defective, and is
immediately repaired, recalibrated or replaced, and additional
monitoring does not confirm the initial result; or
    (2) In the case of inventory control, a second month of data does
not confirm the initial result.
    16. In Sec.  280.52 revise paragraph (a) to read as follows:

Sec.  280.52  Release investigation and confirmation steps.

* * * * *
    (a) System test. Owners and operators must conduct tests (according
to the requirements for tightness testing in Sec.  280.43(c) and Sec.
280.44(b) or, for UST systems with secondary containment and
interstitial monitoring, the integrity testing specified in Sec.
280.36) that determine whether a leak exists in that portion of the
tank that routinely contains product, the attached delivery piping, or
a breach of the interstitial space.
    (1) If the system test confirms a leak, owners and operators must
repair, replace, upgrade, or close the UST system. In addition, owners
and operators must begin corrective action in accordance with subpart F
if the test results for the system, tank, or delivery piping indicate
that a release exists.
    (2) Further investigation is not required if the test results for
the system, tank, and delivery piping do not indicate that a release
exists and if environmental contamination is not the basis for
suspecting a release.
    (3) Owners and operators must conduct a site check as described in
paragraph (b) of this section if the test results for the system, tank,
and delivery piping do not indicate that a release exists but
environmental contamination is the basis for suspecting a release.
* * * * *
    17. In Sec.  280.71 revise the Note at the end of the section to
read as follows:

Sec.  280.71  Permanent closure and changes-in-service.

* * * * *
    [Note: The following cleaning and closure procedures may be used
to comply with this section:
    (A) American Petroleum Institute Recommended Practice RP 1604,
``Closure of Underground Petroleum Storage Tanks'';
    (B) American Petroleum Institute Standard 2015, ``Requirements
for Safe Entry and Cleaning of Petroleum Storage Tanks'';
    (C) American Petroleum Institute Recommended Practice 2016,
``Guidelines and Procedures for Entering and Cleaning Petroleum
Storage Tanks'';
    (D) American Petroleum Institute Recommended Practice RP 1631,
``Interior Lining and Periodic Inspection of Underground Storage
Tanks,'' may be used as guidance for compliance with this section;
    (E) National Fire Protection Association Standard 326,
``Safeguarding of Tanks and Containers for Entry, Cleaning, or
Repair''; and
    (F) The National Institute for Occupational Safety and Health
Publication 80-106, ``Criteria for a Recommended Standard * * *
Working in Confined Space'' may be used as guidance for conducting
safe closure procedures at some hazardous substance tanks.]
* * * * *
    18. Revise Sec.  280.90 to read as follows:

Sec.  280.90  Applicability.

    (a) This subpart applies to owners and operators of all petroleum
underground storage tank (UST) systems except as otherwise provided in
this section.
    (b) Owners and operators of petroleum UST systems are subject to
these requirements in accordance with Sec.  280.91.
    (c) State and Federal government entities whose debts and
liabilities are the debts and liabilities of a state or the United
States are exempt from the requirements of this subpart.
    (d) The requirements of this subpart do not apply to owners and
operators of any UST system described in Sec.  280.10 (b), (c)(2) or
(c)(3).
    (e) If the owner and operator of a petroleum underground storage
tank are separate persons, only one person is required to demonstrate
financial responsibility; however, both parties are liable in event of
noncompliance.
    19. Revise Sec.  280.91 to read as follows:

Sec.  280.91  Compliance dates.

    Owners of petroleum underground storage tanks must comply with the
requirements of this subpart. Previously deferred UST systems must
comply with the requirements of this subpart according to the schedule
in Sec.  280.10.
    20. In Sec.  280.92 revise the definitions ``Accidental release,''
``Financial reporting year,'' and ``Provider of financial assurance''
to read as follows:

Sec.  280.92  Definition of terms.

* * * * *
    Accidental release means any sudden or nonsudden release of
petroleum arising from operating an underground storage tank that
results in a need for corrective action and/or compensation for bodily
injury or property damage neither expected nor intended by the tank
owner or operator.
* * * * *
    Financial reporting year means the latest consecutive twelve-month
period for which any of the following reports used to support a
financial test is prepared:
    (1) a 10-K report submitted to the SEC;
    (2) an annual report of tangible net worth submitted to Dun and
Bradstreet; or
    (3) annual reports submitted to the Energy Information
Administration or the Rural Utilities Service.

    ``Financial reporting year'' may thus comprise a fiscal or a
calendar year period.
* * * * *
    Provider of financial assurance means an entity that provides
financial assurance to an owner or operator of an underground storage
tank through one of the mechanisms listed in Sec. Sec.  280.95-280.107,
including a guarantor, insurer, risk retention group, surety, issuer of
a letter of credit, issuer of a state-required mechanism, or a state.
* * * * *
    21. Revise Sec.  280.94 paragraph (a)(1) to read as follows:

Sec.  280.94  Allowable mechanisms and combinations of mechanisms.

    (a) * * *
    (1) An owner or operator, including a local government owner or
operator, may use any one or combination of the mechanisms listed in
Sec. Sec.  280.95 through 280.107 to demonstrate financial
responsibility under this subpart for one or more underground storage
tanks; and
* * * * *
    22. In Sec.  280.95 revise paragraph s(b)(1)(ii), (b)(4)(i), (c)(5)
introductory text, (c)(5)(i) and (d) to read as follows:

Sec.  280.95  Financial test of self-insurance.

* * * * *
    (b) * * *
    (1) * * *
    (ii) The sum of the corrective action cost estimates, the current
closure and post-closure care cost estimates, and amount of liability
coverage for which a financial test is used to demonstrate financial
responsibility to EPA under 40 CFR 264.101, 264.143, 264.145, 265.143,
265.145, 264.147, and 265.147 or to a state implementing agency under a
state program authorized by EPA under 40 CFR part 271; and
    (4) * * *
    (i) File financial statements annually with the U.S. Securities and
Exchange Commission, the Energy Information Administration, or the
Rural Utilities Service; or
* * * * *
    (c) * * *
    (5) If the financial statements of the owner or operator, and/or
guarantor, are not submitted annually to the U.S. Securities and
Exchange Commission, the Energy Information Administration or the Rural
Utilities Service, the owner or operator, and/or guarantor, must obtain
a special report by an independent certified public accountant stating
that:
    (i) He has compared the data that the letter from the chief
financial officer specifies as having been derived from the latest
year-end financial statements of the owner or operator, and/or
guarantor, with the amounts in such financial statements; and
* * * * *
    (d) To demonstrate that it meets the financial test under paragraph
(b) or (c) of this section, the chief financial officer of the owner or
operator, or guarantor, must sign, within 120 days of the close of each
financial reporting year, as defined by the twelve-month period for
which financial statements used to support the financial test are
prepared, a letter worded exactly as follows, except that the
instructions in brackets are to be replaced by the relevant information
and the brackets deleted:

Letter from Chief Financial Officer

    I am the chief financial officer of [insert: name and address of
the owner or operator, or guarantor]. This letter is in support of
the use of [insert: ``the financial test of self-insurance,'' and/or
``guarantee''] to demonstrate financial responsibility for [insert:
``taking corrective action'' and/or ``compensating third parties for
bodily injury and property damage''] caused by [insert: ``sudden
accidental releases'' or ``nonsudden accidental releases'' or
``accidental releases''] in the amount of at least [insert: dollar
amount] per occurrence and [insert: dollar amount] annual aggregate
arising from operating (an) underground storage tank(s).
    Underground storage tanks at the following facilities are
assured by this financial test or a financial test under an
authorized State program by this [insert: ``owner or operator,''
and/or ``guarantor'']: [List for each facility: the name and address
of the facility where tanks assured by this financial test are
located, and whether tanks are assured by this financial test or a
financial test under a State program approved under 40 CFR part 281.
If separate mechanisms or combinations of mechanisms are being used
to assure any of the tanks at this facility, list each tank assured
by this financial test or a financial test under a State program
authorized under 40 CFR part 281 by the tank identification number
provided in the notification submitted pursuant to 40 CFR 280.22 or
the corresponding State requirements.]
    A [insert: ``financial test,'' and/or ``guarantee''] is also
used by this [insert: ``owner or operator,'' or ``guarantor''] to
demonstrate evidence of financial responsibility in the following
amounts under other EPA regulations or state programs authorized by
EPA under 40 CFR parts 271 and 145:

------------------------------------------------------------------------
               EPA Regulations                          Amount
------------------------------------------------------------------------
Closure (Sec.  Sec.   264.143 and 265.143)..  $------
Post-Closure Care (Sec.  Sec.   264.145 and   $------
 265.145).
Liability Coverage (Sec.  Sec.   264.147 and  $------
 265.147).
Corrective Action (Sec.  Sec.   264.101(b)).  $------
Plugging and Abandonment (Sec.   144.63)....  $------
Closure.....................................  $------
Post-Closure Care...........................  $------
Liability Coverage..........................  $------
Corrective Action...........................  $------
Plugging and Abandonment....................  $------
                                             ---------------------------
    Total...................................  $------
------------------------------------------------------------------------

    This [insert: ``owner or operator,'' or ``guarantor''] has not
received an adverse opinion, a disclaimer of opinion, or a ``going
concern'' qualification from an independent auditor on his financial
statements for the latest completed fiscal year.
    [Fill in the information for Alternative I if the criteria of
paragraph (b) of Sec.  280.95 are being used to demonstrate
compliance with the financial test requirements. Fill in the
information for Alternative II if the criteria of paragraph (c) of
Sec.  280.95 are being used to demonstrate compliance with the
financial test requirements.]

------------------------------------------------------------------------

------------------------------------------------------------------------
                Alternative I
------------------------------------------------------------------------
1. Amount of annual UST aggregate coverage     $------
 being assured by a financial test, and/or
 guarantee.
2. Amount of corrective action, closure and    $------
 post-closure care costs, liability coverage,
 and plugging and abandonment costs covered
 by a financial test, and/or guarantee.
3. Sum of lines 1 and 2......................  $------
4. Total tangible assets.....................  $------
5. Total liabilities [if any of the amount     $------
 reported on line 3 is included in total
 liabilities, you may deduct that amount from
 this line and add that amount to line 6].
6. Tangible net worth [subtract line 5 from    $------
 line 4].
------------------------------------------------------------------------
                                               Yes / No
------------------------------------------------------------------------
7. Is line 6 at least $10 million?...........  ------
8. Is line 6 at least 10 times line 3?.......  ------
9. Have financial statements for the latest    ------
 fiscal year been filed with the Securities
 and Exchange Commission?

10. Have financial statements for the latest   ------
 fiscal year been filed with the Energy
 Information Administration?
11. Have financial statements for the latest   ------
 fiscal year been filed with the Rural
 Utilities Service?
12. Has financial information been provided    ------
 to Dun and Bradstreet, and has Dun and
 Bradstreet provided a financial strength
 rating of 4A or 5A? [Answer ``Yes'' only if
 both criteria have been met.]
------------------------------------------------------------------------
                Alternative II
------------------------------------------------------------------------
1. Amount of annual UST aggregate coverage     $------
 being assured by a test, and/or guarantee.
2. Amount of corrective action, closure and    $------
 post-closure care costs, liability coverage,
 and plugging and abandonment costs covered
 by a financial test, and/or guarantee.
3. Sum of lines 1 and 2......................  $------
4. Total tangible assets.....................  $------
5. Total liabilities [if any of the amount     $------
 reported on line 3 is included in total
 liabilities, you may deduct that amount from
 this line and add that amount to line 6].
6. Tangible net worth [subtract line 5 from    $------
 line 4].
7. Total assets in the U.S. [required only if  $------
 less than 90 percent of assets are located
 in the U.S.]
------------------------------------------------------------------------
                                               Yes / No
------------------------------------------------------------------------
8. Is line 6 at least $10 million?...........  ------
9. Is line 6 at least 6 times line 3?........  ------
10. Are at least 90 percent of assets located  ------
 in the U.S.? [If ``No,'' complete line 11.].
11. Is line 7 at least 6 times line 3? [Fill   ------
 in either lines 12-15 or lines 16-18:].
12. Current assets...........................  $------
13. Current liabilities......................  $------
14. Net working capital [subtract line 13      $------
 from line 12].
15. Is line 14 at least 6 times line 3?......  ------
16. Current bond rating of most recent bond    ------
 issue.
17. Name of rating service...................  ------
18. Date of maturity of bond.................  ------
19. Have financial statements for the latest   ------
 fiscal year been filed with the SEC, the
 Energy Information Administration, or the
 Rural Utilities Service?
------------------------------------------------------------------------

    [If ``No,'' please attach a report from an independent certified
public accountant certifying that there are no material differences
between the data as reported in lines 4-18 above and the financial
statements for the latest fiscal year.]
    [For both Alternative I and Alternative II complete the
certification with this statement.]
    I hereby certify that the wording of this letter is identical to
the wording specified in 40 CFR part 280.95(d) as such regulations
were constituted on the date shown immediately below.
    [Signature]
    [Name]
    [Title]
    [Date]
* * * * *
    23. In Sec.  280.96 revise paragraphs (b), (c)(3), and (d) to read
as follows:

Sec.  280.96  Guarantee.

* * * * *
    (b) Within 120 days of the close of each financial reporting year
the guarantor must demonstrate that it meets the financial test
criteria of Sec.  280.95 based on year-end financial statements for the
latest completed financial reporting year by completing the letter from
the chief financial officer described in Sec.  280.95(d) and must
deliver the letter to the owner or operator. If the guarantor fails to
meet the requirements of the financial test at the end of any financial
reporting year, within 120 days of the end of that financial reporting
year the guarantor shall send by certified mail, before cancellation or
nonrenewal of the guarantee, notice to the owner or operator. If the
Director of the implementing agency notifies the guarantor that he no
longer meets the requirements of the financial test of Sec.  280.95 (b)
or (c) and (d), the guarantor must notify the owner or operator within
10 days of receiving such notification from the Director. In both
cases, the guarantee will terminate no less than 120 days after the
date the owner or operator receives the notification, as evidenced by
the return receipt. The owner or operator must obtain alternative
coverage as specified in Sec.  280.114(e).
    (c) * * *
    (3) [Insert appropriate phrase: ``On behalf of our subsidiary'' (if
guarantor is corporate parent of the owner or operator); ``On behalf of
our affiliate'' (if guarantor is a related firm of the owner or
operator); or ``Incident to our business relationship with'' (if
guarantor is providing the guarantee as an incident to a substantial
business relationship with owner or operator)] [owner or operator],