until final administrative disposition of the standardized permit application is made, except as provided under 40 CFR part 264, subpart S.

Section 267.3 How does this part affect an imminent hazard action?

Notwithstanding any other provisions of this part, enforcement actions may be brought pursuant to section 7003 of RCRA.

Subpart B General Facility Standards Section 267.10 Does this subpart apply to me?

This subpart applies to you if you own or operate a facility that treats or stores hazardous waste under a 40 CFR part 270, subpart J standardized permit, except as provided in Sec. 267.1( b).

Section 267.11 What must I do to comply with this subpart?

To comply with this subpart, you must obtain an identification number, and follow the requirements below for waste analysis, security, inspections, training, special waste handling, and location standards.

Section 267.12 How do I obtain an identification number?

You must apply to EPA for an EPA identification number following the EPA notification procedures and using EPA form 8700 12. You may obtain information and required forms from your state hazardous waste regulatory agency or from your EPA regional office.

Section 267.13 What are my waste analysis requirements?

( a) Before you treat or store any hazardous wastes, you must obtain a detailed chemical and physical analysis of a representative sample of the wastes. At a minimum, the analysis must contain all the information needed to treat or store the waste to comply with this part and 40 CFR part 268. 124 ( 1) You may include data in the analysis that was developed under 40 CFR part 261, and published or documented data on the hazardous waste or on hazardous waste generated from similar processes.

( 2) You must repeat the analysis as necessary to ensure that it is accurate and up to date. At a minimum, you must repeat the analysis if the process or operation generating the hazardous wastes has changed.

( b) You must develop and follow a written waste analysis plan that describes the procedures you will follow to comply with paragraph ( a) of this section. You must keep this plan at the facility. If you receive wastes generated from off site, and are eligible for a standardized permit, you also must have submitted the waste analysis plan with the Notice of Intent. At a minimum, the plan must specify all of the following:

( 1) The hazardous waste parameters that you will analyze and the rationale for selecting these parameters ( that is, how analysis for these parameters will provide sufficient information on the waste's properties to comply with paragraph ( a) of this section).

( 2) The test methods you will use to test for these parameters.

( 3) The sampling method you will use to obtain a representative sample of the waste to be analyzed. You may obtain a representative sample using either:

( i) One of the sampling methods described in appendix I of 40 CFR part 261; or ( ii) An equivalent sampling method.

( 4) How frequently you will review or repeat the initial analysis of the waste to ensure that the analysis is accurate and up to date.

( 5) Where applicable, the methods you will use to meet the additional waste analysis requirements for specific waste management methods as specified in 40 CFR 264.17, 264.1034( d),

264.1063( d), and 264.1083.

Section 267.14 What are my security requirements?

( a) You must prevent, and minimize the possibility for, livestock and unauthorized people from entering the active portion of your facility.

( b) Your facility must have: 125 ( 1) A 24 hour surveillance system ( for example, television monitoring or surveillance by guards or facility personnel) that continuously monitors and controls entry onto the active portion of the facility; or ( 2) An artificial or natural barrier ( for example, a fence in good repair or a fence combined with a cliff) that completely surrounds the active portion of the facility; and ( 3) A means to control entry, at all times, through the gates or other entrances to the active portion of the facility ( for example, an attendant, television monitors, locked entrance, or controlled roadway access to the facility).

( c) You must post a sign at each entrance to the active portion of a facility, and at other prominent locations, in sufficient numbers to be seen from any approach to this active portion. The sign must bear the legend " Danger Unauthorized Personnel Keep Out." The legend must be in English and in any other language predominant in the area surrounding the facility ( for example,

facilities in counties bordering the Canadian province of Quebec must post signs in French, and facilities in counties bordering Mexico must post signs in Spanish), and must be legible from a distance of at least 25 feet. You may use existing signs with a legend other than " Danger Unauthorized Personnel Keep Out" if the legend on the sign indicates that only authorized personnel are allowed to enter the active portion, and that entry onto the active portion can be dangerous.

Section 267.15 What are my general inspection requirements?

( a) You must inspect your facility for malfunctions and deterioration, operator errors, and discharges that may be causing, or may lead to:

( 1) Release of hazardous waste constituents to the environment; or ( 2) A threat to human health. You must conduct these inspections often enough to identify problems in time to correct them before they result in harm to human health or the environment.

( b) You must develop and follow a written schedule for inspecting, monitoring equipment,

safety and emergency equipment, security devices, and operating and structural equipment ( such as dikes and sump pumps) that are important to preventing, detecting, or responding to environmental or human health hazards.

( 1) You must keep this schedule at the facility. 126 ( 2) The schedule must identify the equipment and devices you will inspect and what problems you look for, such as malfunctions or deterioration of equipment ( for example, inoperative sump pump, leaking fitting, etc.).

( 3) The frequency of your inspections may vary for the items on the schedule. However, the frequency should be based on the rate of deterioration of the equipment and the probability of an environmental or human health incident if the deterioration, malfunction, or any operator error goes undetected between inspections. Areas subject to spills, such as loading and unloading areas,

must be inspected daily when in use. At a minimum, the inspection schedule must include the items and frequencies required in Sections 267.174, 267.193, 267.195, 267.1103, and 40 CFR 264.1033,

264.1052, 264.1053, 264.1058, and 264.1083 through 264.1089, where applicable.

( c) You must remedy any deterioration or malfunction of equipment or structures that the inspection reveals in time to prevent any environmental or human health hazard. Where a hazard is imminent or has already occurred, you must take remedial action immediately.

( d) You must record all inspections. You must keep these records for at least three years from the date of inspection. At a minimum, you must include the date and time of the inspection, the name of the inspector, a notation of the observations made, and the date and nature of any repairs or other remedial actions.

Section 267.16 What training must my employees have?

( a) Your facility personnel must successfully complete a program of classroom instruction or on the job training that teaches them to perform their duties in a way that ensures the facility's compliance with the requirements of this part. You must ensure that this program includes all the elements described in the documents that are required under paragraph ( d)( 3) of this section.

( 1) A person trained in hazardous waste management procedures must direct this program, and must teach facility personnel hazardous waste management procedures ( including contingency plan implementation) relevant to their employment positions.

( 2) At a minimum, the training program must be designed to ensure that facility personnel are able to respond effectively to emergencies by including instruction on emergency procedures,

emergency equipment, and emergency systems, including all of the following, where applicable:

( i) Procedures for using, inspecting, repairing, and replacing facility emergency and monitoring equipment ( ii) Key parameters for automatic waste feed cut off systems.

( iii) Communications or alarm systems. 127 ( iv) Response to fires or explosions.

( v) Response to ground water contamination incidents.

( vi) Shutdown of operations.

( b) Facility personnel must successfully complete the program required in paragraph ( a) of this section within six months after the date of their employment or assignment to a facility, or to a new position at a facility, whichever is later. Employees hired after the effective date of your standardized permit must not work in unsupervised positions until they have completed the training requirements of paragraph ( a) of this section.

( c) Facility personnel must take part in an annual review of the initial training required in paragraph ( a) of this section.

( d) You must maintain the following documents and records at your facility:

( 1) The job title for each position at the facility related to hazardous waste management, and the name of the employee filling each job;

( 2) A written job description for each position listed under paragraph ( d)( 1) of this section. This description must include the requisite skill, education, or other qualifications, and duties of employees assigned to each position;

( 3) A written description of the type and amount of both introductory and continuing training that will be given to each person filling a position listed under paragraph ( d)( 1) of this section;

( 4) Records that document that facility personnel have received and completed the training or job experience required under paragraphs ( a), ( b), and ( c) of this section.

( e) You must keep training records on current personnel until your facility closes. You must keep training records on former employees for at least three years from the date the employee last worked at your facility. Personnel training records may accompany personnel transferred within your company.

Section 267.17 What are the requirements for managing ignitable, reactive, or incompatible wastes?

( a) You must take precautions to prevent accidental ignition or reaction of ignitable or reactive waste by following these requirements:

( 1) You must separate these wastes and protect them from sources of ignition or reaction such as: open flames, smoking, cutting and welding, hot surfaces, frictional heat, sparks ( static, 128 electrical, or mechanical), spontaneous ignition ( for example, from heat producing chemical reactions), and radiant heat.

( 2) While ignitable or reactive waste is being handled, you must confine smoking and open flames to specially designated locations.

( 3) " No Smoking" signs must be conspicuously placed wherever there is a hazard from ignitable or reactive waste.

( b) If you treat or store ignitable or reactive waste, or mix incompatible waste or incompatible wastes and other materials, you must take precautions to prevent reactions that:

( 1) Generate extreme heat or pressure, fire or explosions, or violent reactions.

( 2) Produce uncontrolled toxic mists, fumes, dusts, or gases in sufficient quantities to threaten human health or the environment.

( 3) Produce uncontrolled flammable fumes or gases in sufficient quantities to pose a risk of fire or explosions.

( 4) Damage the structural integrity of the device or facility.

( 5) Threaten human health or the environment in any similar way.

( c) You must document compliance with paragraph ( a) or ( b) of this section. You may base this documentation on references to published scientific or engineering literature, data from trial tests ( for example bench scale or pilot scale tests), waste analyses ( as specified in Section 267.13), or the results of the treatment of similar wastes by similar treatment processes and under similar operating conditions.

Section 267.18 What are the standards for selecting the location of my facility?

( a) You may not locate portions of new facilities where hazardous waste will be treated or stored within 61 meters ( 200 feet) of a fault that has had displacement in Holocene time.

( 1) " Fault" means a fracture along which rocks on one side have been displaced with respect to those on the other side.

( 2) " Displacement" means the relative movement of any two sides of a fault measured in any direction.

( 3) " Holocene" means the most recent epoch of the Quaternary period, extending from the end of the Pleistocene to the present. 129 Note to paragraph ( a)( 3): Procedures for demonstrating compliance with this standard are specified in 40 CFR 270.14( b)( 11). Facilities which are located in political jurisdictions other than those listed in appendix VI of 40 CFR part 264, are assumed to be in compliance with this requirement.

( b) If your facility is located in a 100 year flood plain, it must be designed, constructed,

operated, and maintained to prevent washout of any hazardous waste by a 100 year flood.

( 1) " 100 year flood plain" means any land area that is subject to a one percent or greater chance of flooding in any given year from any source.

( 2) " Washout" means the movement of hazardous waste from the active portion of the facility as a result of flooding.

( 3) " 100 year flood" means a flood that has a one percent chance of being equaled or exceeded in any given year.

Subpart C Preparedness and Prevention Section 267.30 Does this subpart apply to me?

This subpart applies to you if you own or operate a facility that treats or stores hazardous waste under a 40 CFR part 270, subpart J standardized permit, except as provided in Section 267.1( b).

Section 267.31 What are the general design and operation standards?

You must design, construct, maintain, and operate your facility to minimize the possibility of a fire, explosion, or any unplanned sudden or non sudden release of hazardous waste or hazardous waste constituents to air, soil, or surface water that could threaten human health or the environment.

Section 267.32 What equipment am I required to have?

Your facility must be equipped with all of the following, unless none of the hazards posed by waste handled at the facility could require a particular kind of equipment specified below: 130 ( a) An internal communications or alarm system capable of providing immediate emergency instruction ( voice or signal) to facility personnel.

( b) A device, such as a telephone ( immediately available at the scene of operations) or a hand held two way radio, capable of summoning emergency assistance from local police departments, fire departments, or State or local emergency response teams.

( c) Portable fire extinguishers, fire control equipment ( including special extinguishing equipment, such as that using foam, inert gas, or dry chemicals), spill control equipment, and decontamination equipment.

( d) Water at adequate volume and pressure to supply water hose streams, or foam producing equipment, or automatic sprinklers, or water spray systems.

Section 267.33 What are the testing and maintenance requirements for the equipment?

You must test and maintain all required facility communications or alarm systems, fire protection equipment, spill control equipment, and decontamination equipment, as necessary, to assure its proper operation in time of emergency.

Section 267.34 When must personnel have access to communication equipment or an alarm system?

( a) Whenever hazardous waste is being poured, mixed, spread, or otherwise handled, all personnel involved in the operation must have immediate access to an internal alarm or emergency communication device, either directly or through visual or voice contact with another employee,

unless the device is not required under Section 267.32.

( b) If just one employee is on the premises while the facility is operating, that person must have immediate access to a device, such as a telephone ( immediately available at the scene of operation)

or a hand held two way radio, capable of summoning external emergency assistance, unless not required under Section 267.32.

Section 267.35 How do I ensure access for personnel and equipment during emergencies?

You must maintain enough aisle space to allow the unobstructed movement of personnel, fire protection equipment, spill control equipment, and decontamination equipment to any area of 131 facility operation in an emergency, as appropriate, considering the type of waste being stored or treated.

Section 267.36 What arrangements must I make with local authorities for emergencies?

( a) You must attempt to make the following arrangements, as appropriate, for the type of waste handled at your facility and the potential need for the services of these organizations:

( 1) Arrangements to familiarize police, fire departments, and emergency response teams with the layout of the facility, properties of hazardous waste handled at the facility and associated hazards,

places where facility personnel would normally be working, entrances to and roads inside the facility, and possible evacuation routes.

( 2) Agreements designating primary emergency authority to a specific police and a specific fire department where more than one police and fire department might respond to an emergency, and agreements with any others to provide support to the primary emergency authority.

( 3) Agreements with State emergency response teams, emergency response contractors, and equipment suppliers.

( 4) Arrangements to familiarize local hospitals with the properties of hazardous waste handled at the facility and the types of injuries or illnesses that could result from fires, explosions, or releases at the facility.

( b) If State or local authorities decline to enter into such arrangements, you must document the refusal in the operating record.

Subpart D Contingency Plan and Emergency Procedures Sec. 267.50 Does this subpart apply to me?

This subpart applies to you if you own or operate a facility that treats or stores hazardous waste under a 40 CFR part 270, subpart J standardized permit, except as provided in Section 267.1( b).

Section 267.51 What is the purpose of the contingency plan and how do I use it?

( a) You must have a contingency plan for your facility. You must design the plan to minimize hazards to human health or the environment from fires, explosions, or any unplanned sudden or 132 non sudden release of hazardous waste or hazardous waste constituents to air, soil, or surface water.

( b) You must implement the provisions of the plan immediately whenever there is a fire,

explosion, or release of hazardous waste or hazardous waste constituents which could threaten human health or the environment.

Section 267.52 What must be in the contingency plan?

( a) Your contingency plan must:

( 1) Describe the actions facility personnel will take to comply with Sections. 267.51 and 267.56 in response to fires, explosions, or any unplanned sudden or non sudden release of hazardous waste or hazardous waste constituents to air, soil, or surface water at the facility.

( 2) Describe all arrangements agreed upon under Section 267.36 by local police departments,

fire departments, hospitals, contractors, and state and local emergency response teams to coordinate emergency services.

( 3) List names, addresses, and phone numbers ( office and home) of all persons qualified to act as emergency coordinator ( see Section 267.55), and you must keep the list up to date. Where more than one person is listed, one must be named as primary emergency coordinator and others must be listed in the order in which they will assume responsibility as alternates.

( 4) Include a current list of all emergency equipment at the facility ( such as fire extinguishing systems, spill control equipment, communications and alarm systems ( internal and external), and decontamination equipment), where this equipment is required. In addition, you must include the location and a physical description of each item on the list, and a brief outline of its capabilities.

( 5) Include an evacuation plan for facility personnel where there is a possibility that evacuation could be necessary. You must describe signal( s) to be used to begin evacuation, evacuation routes, and alternate evacuation routes ( in cases where the primary routes could be blocked by releases of hazardous waste or fires).

( b) If you have already prepared a Spill Prevention, Control, and Countermeasures ( SPCC) Plan under 40 CFR part 112, or some other emergency or contingency plan, you need only amend that plan to incorporate hazardous waste management provisions that will comply with the requirements of this part. 133 Section 267.53 Who must have copies of the contingency plan?

( a) You must maintain a copy of the plan with all revisions at the facility; and ( b) You must submit a copy with all revisions to all local police departments, fire departments,

hospitals, and state and local emergency response teams that may be called upon to provide emergency services.

Section 267.54 When must I amend the contingency plan?

You must review, and immediately amend the contingency plan, if necessary, whenever:

( a) The facility permit is revised.

( b) The plan fails in an emergency.

( c) You change the facility ( in its design, construction, operation, maintenance, or other circumstances) in a way that materially increases the potential for fires, explosions, or releases of hazardous waste or hazardous waste constituents, or changes the response necessary in an emergency.

( d) You change the list of emergency coordinators.

( e) You change the list of emergency equipment.

Section 267.55 What is the role of the emergency coordinator?

At least one employee must be either on the facility premises or on call at all times ( that is,

available to respond to an emergency by reaching the facility within a short period of time) who has the responsibility for coordinating all emergency response measures. This emergency coordinator must be thoroughly familiar with all aspects of the facility's contingency plan, all operations and activities at the facility, the location and characteristics of waste handled, the location of all records within the facility, and the facility layout. In addition, this person must have the authority to commit the resources needed to carry out the contingency plan.

Section 267.56 What are the required emergency procedures for the emergency coordinator?

( a) Whenever there is an imminent or actual emergency situation, the emergency coordinator ( or his designee when the emergency coordinator is on call) must immediately:

( 1) Activate internal facility alarm or communication systems, where applicable, to notify all facility personnel, and 134 ( 2) Notify appropriate State or local agencies with designated response roles if their help is needed.

( b) Whenever there is a release, fire, or explosion, the emergency coordinator must:

( 1) Immediately identify the character, exact source, amount, and areal extent of any released materials. He may do this by observation or review of facility records or manifests, and, if necessary, by chemical analysis.

( 2) Assess possible hazards to human health or the environment that may result from the release,

fire, or explosion. This assessment must consider both direct and indirect effects of the release,

fire, or explosion. For example, the assessment would consider the effects of any toxic, irritating,

or asphyxiating gases that are generated, or the effects of any hazardous surface water run off from water or chemical agents used to control fire and heat induced explosions.

( c) If the emergency coordinator determines that the facility has had a release, fire, or explosion which could threaten human health, or the environment, outside the facility, he must report his findings as follows:

( 1) If his assessment indicates that evacuation of local areas may be advisable, he must immediately notify appropriate local authorities. He must be available to help appropriate officials decide whether local areas should be evacuated; and ( 2) He must immediately notify either the government official designated as the on scene coordinator for that geographical area, or the National Response Center ( using their 24 hour toll free number 800/ 424 8802). The report must include:

( i) Name and telephone number of the reporter.

( ii) Name and address of facility.

( iii) Time and type of incident ( for example, a release or a fire).

( iv) Name and quantity of material( s) involved, to the extent known.

( v) The extent of injuries, if any.

( vi) The possible hazards to human health or the environment outside the facility.

( d) During an emergency, the emergency coordinator must take all reasonable measures necessary to ensure that fires, explosions, and releases do not occur, recur, or spread to other hazardous waste at the facility. These measures must include, where applicable, stopping processes and operations, collecting and containing release waste, and removing or isolating containers. 135 ( e) If the facility stops operations in response to a fire, explosion, or release, the emergency coordinator must monitor for leaks, pressure buildup, gas generation, or ruptures in valves, pipes,

or other equipment, when appropriate.

Section 267.57 What must the emergency coordinator do after an emergency?

( a) Immediately after an emergency, the emergency coordinator must provide for treating,

storing, or disposing of recovered waste, contaminated soil or surface water, or any other material that results from a release, fire, or explosion at the facility.

( b) The emergency coordinator must ensure that, in the affected area( s) of the facility:

( 1) No waste that may be incompatible with the released material is treated, stored, or disposed of until cleanup procedures are completed.

( 2) All emergency equipment listed in the contingency plan is cleaned and fit for its intended use before operations are resumed.

Section 267.58 What notification and recordkeeping must I do after an emergency?

( a) You must notify the Regional Administrator, and appropriate State and local authorities,

that the facility is in compliance with Section 267.57 ( b) before operations are resumed in the affected area( s) of the facility.

( b) You must note the time, date, and details of any incident that requires implementing the contingency plan in the operating record. Within 15 days after the incident, you must submit a written report on the incident to the Regional Administrator. You must include the following in the report:

( 1) The name, address, and telephone number of the owner or operator.

( 2) The name, address, and telephone number of the facility.

( 3) The date, time, and type of incident ( e. g., fire, explosion).

( 4) The name and quantity of material( s) involved.

( 5) The extent of injuries, if any.

( 6) An assessment of actual or potential hazards to human health or the environment, where this is applicable. 136 ( 7) The estimated quantity and disposition of recovered material that resulted from the incident.

Subpart E Recordkeeping, Reporting, and Notifying Section 267.70 Does this subpart apply to me?

This subpart applies to you if you own or operate a facility that stores or non thermally treats a hazardous waste under a 40 CFR part 270, subpart J standardized permit, except as provided in § 267.1( b). In addition, you must comply with the manifest requirements of 40 CFR part 262 whenever a shipment of hazardous waste is initiated from your facility.

Section 267.71 Use of the Manifest System ( a) If a facility receives hazardous waste accompanied by a manifest, the owner or operator, or his agent, must:

( 1) Sign and date each copy of the manifest to certify that the hazardous waste covered by the manifest was received;

( 2) Note any significant discrepancies in the manifest ( as defined in § 267.72( a)) on each copy of the manifest;

( 3) Immediately give the transporter at least one copy of the signed manifest;

( 4) Within 30 days after the delivery, send a copy of the manifest to the generator; and ( 5) Retain at the facility a copy of each manifest for at least three years from the date of delivery.

( b) If a facility receives, from a rail or water ( bulk shipment) transporter, hazardous waste which is accompanied by a shipping paper containing all the information required on the manifest ( excluding the EPA identification numbers, generator's certification, and signatures), the owner or operator,

or his agent, must:

( 1) Sign and date each copy of the manifest or shipping paper ( if the manifest has not been received) to certify that the hazardous waste covered by the manifest or shipping paper was received; 137 ( 2) Note any significant discrepancies ( as defined in § 267.72( a)) in the manifest or shipping paper ( if the manifest has not been received) on each copy of the manifest or shipping paper.

[ Comment: The Agency does not intend that the owner or operator of a facility whose procedures under § 267.13( c)

include waste analysis must perform that analysis before signing the shipping paper and giving it to the transporter.

Section 267.72( b), however, requires reporting an unreconciled discrepancy discovered during later analysis.]

( 3) Immediately give the rail or water ( bulk shipment) transporter at least one copy of the manifest or shipping paper ( if the manifest has not been received);

( 4) Within 30 days after the delivery, send a copy of the signed and dated manifest to the generator; however, if the manifest has not been received within 30 days after delivery, the owner or operator, or his agent, must send a copy of the shipping paper signed and dated to the generator; and [ Comment: Section 262.23( c) of this chapter requires the generator to send three copies of the manifest to the facility when hazardous waste is sent by rail or water ( bulk shipment).]

( 5) Retain at the facility a copy of the manifest and shipping paper ( if signed in lieu of the manifest at the time of delivery) for at least three years from the date of delivery.

( c) Whenever a shipment of hazardous waste is initiated from a facility, the owner or operator of that facility must comply with the requirements of part 262 of this chapter.

[ Comment: The provisions of § 262.34 are applicable to the on site accumulation of hazardous wastes by generators.

Therefore, the provisions of § 262.34 only apply to owners or operators who are shipping hazardous waste which they generated at that facility.]

( d) Within three working days of the receipt of a shipment subject to 40 CFR part 262, subpart H,

the owner or operator of the facility must provide a copy of the tracking document bearing all required signatures to the notifier, to the Office of Enforcement and Compliance Assurance, Office of Compliance, Enforcement Planning, Targeting and Data Division ( 2222A), Environmental Protection Agency, 1200 Pennsylvania Ave., NW., Washington, DC 20460, and to competent authorities of all other concerned countries. The original copy of the tracking document must be maintained at the facility for at least three years from the date of signature.

Section 267.72 Manifest Discrepancies 138 ( a) Manifest discrepancies are differences between the quantity or type of hazardous waste designated on the manifest or shipping paper, and the quantity or type of hazardous waste a facility actually receives. Significant discrepancies in quantity are:

( 1) For bulk waste, variations greater than 10 percent in weight, and ( 2) for batch waste, any variation in piece count, such as a discrepancy of one drum in a truckload. Significant discrepancies in type are obvious differences which can be discovered by inspection or waste analysis, such as waste solvent substituted for waste acid, or toxic constituents not reported on the manifest or shipping paper.

( b) Upon discovering a significant discrepancy, the owner or operator must attempt to reconcile the discrepancy with the waste generator or transporter ( e. g., with telephone conversations). If the discrepancy is not resolved within 15 days after receiving the waste, the owner or operator must immediately submit to the Regional Administrator a letter describing the discrepancy and attempts to reconcile it, and a copy of the manifest or shipping paper at issue.

Section 267.73 What information must I keep?

( a) You must keep a written operating record at your facility.

( b) You must record the following information, as it becomes available, and maintain the operating record until you close the facility:

( 1) A description and the quantity of each type of hazardous waste generated, and the method( s)

and date( s) of its storage and/ or treatment at the facility as required by Appendix I of 40 CFR part 264;

( 2) The location of each hazardous waste within the facility and the quantity at each location;

( 3) Records and results of waste analyses and waste determinations you perform as specified in Sections 267.13, 267.17, and 40 CFR 264.1034, 264.1063, 264.1083, and 268.7;

( 4) Summary reports and details of all incidents that require you to implement the contingency plan as specified in Section 267.58( b));

( 5) Records and results of inspections as required by Section 267.15( d) ( except you need to keep these data for only three years);

( 6) Monitoring, testing or analytical data, and corrective action when required by subpart F of this part and Sections 267.191, 267.193, 267.195, and 40 CFR 264.1034( c) through 264.1034( f),

264.1035, 264.1063( d) through 264.1063( i), 264.1064, 264.1088, 264.1089, and 264.1090;

( 7) All closure cost estimates under Section 267.142; 139 ( 8) Your certification, at least annually, that you have a program in place to reduce the volume and toxicity of hazardous waste that you generate to the degree that you determine to be economically practicable; and that the proposed method of treatment or storage is that practicable method currently available to you that minimizes the present and future threat to human health and the environment;

( 9) For an on site treatment facility, the information contained in the notice ( except the manifest number), and the certification and demonstration, if applicable, required by you under 40 CFR 268.7; and ( 10) For an on site storage facility, the information in the notice ( except the manifest number),

and the certification and demonstration, if applicable, required by you under 40 CFR 268.7.

( 11) For an off site treatment facility, a copy of the notice, and the certification and demonstration, if applicable, required by the generator or the owner or operator under § 268.7 or § 268.8;

( 12) For an off site storage facility, a copy of the notice, and the certification and demonstration,

if applicable, required by the generator or the owner or operator under § 268.7 or § 268.8.

Section 267.74 Who sees the records?

( a) You must furnish all records, including plans, required under this part upon the request of any officer, employee, or representative of EPA who is duly designated by the Administrator, and make them available at all reasonable times for inspection.

( b) The retention period for all records required under this part is extended automatically during the course of any unresolved enforcement action involving the facility or as requested by the Administrator.

Section 267.75 What reports must I prepare and to whom do I send them?

You must prepare a biennial report and other reports listed in paragraph ( b) of this section.

( a) Biennial report. You must prepare and submit a single copy of a biennial report to the Regional Administrator by March 1 of each even numbered year. The biennial report must be submitted on EPA form 8700 13B. The report must cover facility activities during the previous calendar year and must include:

( 1) The EPA identification number, name, and address of the facility; 140 ( 2) The calendar year covered by the report;

( 3) The method of treatment or storage for each hazardous waste;

( 4) The most recent closure cost estimate under Section 267.142;

( 5) A description of the efforts undertaken during the year to reduce the volume and toxicity of generated waste.

( 6) A description of the changes in volume and toxicity of waste actually achieved during the year in comparison to previous years to the extent such information is available for the years prior to 1984.

( 7) The certification signed by you.

( b) Additional reports. In addition to submitting the biennial reports, you must also report to the Regional Administrator:

( 1) Releases, fires, and explosions as specified in Sections 267.58( b);

( 2) Facility closures specified in Sections 267.117; and,

( 3) As otherwise required by subparts I, J, and DD of this part and part 264, subparts AA, BB,

CC.

( c) For off site facilities, the EPA identification number of each hazardous waste generator from which the facility received a hazardous waste during the year; for imported shipments, the report must give the name and address of the foreign generator;

( d) A description and the quantity of each hazardous waste the facility received during the year.

For off site facilities, this information must be listed by EPA identification number of each generator.

Section 267.76 What notifications must I make?

Before transferring ownership or operation of a facility during its operating life, you must notify the new owner or operator in writing of the requirements of this part and 40 CFR part 270,

subpart J.

Subpart F Releases from Solid Waste Management Units Section 267.90 Who must comply with this section? 141 This subpart applies to you if you own or operate a facility that treats or stores hazardous waste under a 40 CFR part 270, subpart J standardized permit, except as provided in Section 267.1( b),

or unless your facility already has a permit that imposes requirements for corrective action under 40 CFR 264.101.

Section 267.91 267.100 [ Reserved]

Section 267.101 What must I do to address corrective action for solid waste management units?

( a) You must institute corrective action as necessary to protect human health and the environment for all releases of hazardous waste or constituents from any solid waste management unit at the facility, regardless of the time at which waste was placed in such unit.

( b) The Regional Administrator will specify corrective action in the supplemental portion of your standardized permit in accordance with this section and 40 CFR part 264, subpart S. The Regional Administrator will include in the supplemental portion of your standardized permit schedules of compliance for corrective action ( where corrective action cannot be completed prior to issuance of the permit) and assurances of financial responsibility for completing corrective action.

( c) You must implement corrective action beyond the facility property boundary, where necessary to protect human health and the environment, unless you demonstrate to the satisfaction of the Regional Administrator that, despite your best efforts, you were unable to obtain the necessary permission to undertake such actions. You are not relieved of all responsibility to clean up a release that has migrated beyond the facility boundary where off  site access is denied.

On site measures to address such releases will be determined on a case by case basis. You must provide assurances of financial responsibility for such corrective action.

( d) You do not have to comply with this section if you are the owner or operator of a remediation waste site unless your site is part of a facility that is subject to a permit for treating,

storing, or disposing of hazardous wastes that are not remediation wastes.

Subpart G Closure Section 267.110 Does this subpart apply to me? 142 This subpart applies to you if you own or operate a facility that treats or stores hazardous waste under a 40 CFR part 270, subpart J standardized permit, except as provided in Section 267.1( b).

Section 267.111 What general standards must I meet when I stop operating the unit?

You must close the storage and treatment units in a manner that:

( a) Minimizes the need for further maintenance; and ( b) Controls, minimizes, or eliminates, to the extent necessary to protect human health and the environment, post closure escape of hazardous waste, hazardous constituents, leachate,

contaminated run off, or hazardous waste decomposition products to the ground or surface waters or to the atmosphere; and ( c) Meets the closure requirements of this subpart and the requirements of Sections 267.176,

267.201, and 267.1108. If you determine that, when applicable, the closure requirements of § 267.201( tanks) or § 267.1108 ( containment buildings) cannot be met, then you must close the unit in accordance with the requirements that apply to landfills ( § 264.310). In addition, for the purposes of post closure and financial responsibility, such a tank system or containment building is then considered to be a landfill, and you must apply for a post closure care permit in accordance with 40 CFR part 270.

Section 267.112 What procedures must I follow?

( a) To close a facility, you must follow your approved closure plan, and follow notification requirements.

( 1) Your closure plan must be submitted at the time you submitted your Notice of Intent to operate under a standardized permit. Final issuance of the standardized permit constitutes approval of the closure plan, and the plan becomes a condition of the RCRA standardized permit.

( 2) The Director's approval of the plan must ensure that the approved plan is consistent with § § 267.111 through 267.115, 267.176, 267.201, and 267.1108.

( b) Satisfy the requirements for content of closure plan. The closure plan must identify steps necessary to perform partial and/ or final closure of the facility. The closure plan must include, at least:

( 1) A description of how each hazardous waste management unit at the facility subject to this subpart will be closed following Section 267.111. 143 ( 2) A description of how final closure of the facility will be conducted in accordance with Section 267.111. The description must identify the maximum extent of the operations which will be unclosed during the active life of the facility.

( 3) An estimate of the maximum inventory of hazardous wastes ever on site during the active life of the facility and a detailed description of the methods you will use during partial and/ or final closure, such as methods for removing, transporting, treating, storing, or disposing of all hazardous wastes, and identification of the type( s) of off site hazardous waste management units to be used, if applicable.

( 4) A detailed description of the steps needed to remove or decontaminate all hazardous waste residues and contaminated containment system components, equipment, structures, and soils during partial or final closure. These might include procedures for cleaning equipment and removing contaminated soils, methods for sampling and testing surrounding soils, and criteria for determining the extent of decontamination required to satisfy the closure performance standard;

( 5) A detailed description of other activities necessary during the closure period to ensure that partial or final closure satisfies the closure performance standards.

( 6) A schedule for closure of each hazardous waste management unit, and for final closure of the facility. The schedule must include, at a minimum, the total time required to close each hazardous waste management unit and the time required for intervening closure activities that allow tracking of progress of partial or final closure.

( 7) For facilities that use trust funds to establish financial assurance under § 267.143 and that are expected to close prior to the expiration of the permit, an estimate of the expected year of final closure.

( c) You may submit a written notification to the Director for a permit modification to amend the closure plan at any time prior to the notification of partial or final closure of the facility, following the applicable procedures in parts 124.211.

( 1) Events leading to a change in the closure plan, and therefore requiring a modification, may include:

( i.) A change in the operating plan or facility design,

( ii.) A change in the expected year of closure, if applicable, or ( iii.) In conducting partial or final closure activities, an unexpected event requiring a modification of the approved closure plan. 144 ( 2) The written notification or request must include a copy of the amended closure plan for review or approval by the Director. The Director will approve, disapprove, or modify this amended plan in accordance with the procedures in parts 124.211 and 270.320.

( d) Notification before final closure. ( 1) You must notify the Director in writing at least 45 days before the date that you expect to begin final closure of a treatment or storage tank, container storage area, or containment building.

( 2) The date when you " expect to begin closure" must be no later than 30 days after the date that any hazardous waste management unit receives the known final volume of hazardous wastes.

( 3) If your facility's permit is terminated, or if you are otherwise ordered, by judicial decree or final order under Section 3008 of RCRA, to cease receiving hazardous wastes or to close, then the requirements of this paragraph ( d) do not apply. However, you must close the facility following the deadlines established in Sec. 267.115.

Section 267.113 Will the public have the opportunity to comment on the plan?

( a) The Director will provide you and the public, when the draft standardized permit is public noticed, the opportunity to submit written comments on the plan and to the draft permit as allowed by 40 CFR part 124.208. The Director will also, in response to a request or at his/ her own discretion, hold a public hearing whenever such a hearing might clarify one or more issues concerning the closure plan, and the permit.

( b) The Director will give public notice of the hearing 30 days before it occurs. Public notice of the hearing may be given at the same time as notice of the opportunity for the public to submit written comments, and the two notices may be combined.

Section 267.114 ( Reserved)

Section 267.115 After I stop operating, how long until I must close?

( a) Within 90 days after the final volume of hazardous waste is sent to a unit, you must treat or remove from the unit all hazardous wastes following the approved closure plan.

( b) You must complete final closure activities in accordance with the approved closure plan within 180 days after the final volume of hazardous wastes is sent to the unit. The Director may 145 approve an extension of 180 days to the closure period if you comply with all applicable requirements for requesting a modification to the permit and demonstrate that:

( 1) The final closure activities will take longer than 180 days to complete due to circumstances beyond your control, excluding ground water contamination, and ( 2) You have taken and will continue to take all steps to prevent threats to human health and the environment from the unclosed, but not operating hazardous waste management unit or facility,

including compliance with all applicable permit requirements.

( 3) The demonstration must be made at least 30 days prior to the expiration of the initial 180 day period.

( c) Nothing in this section precludes you from removing hazardous wastes and decontaminating or dismantling equipment in accordance with the approved final closure plan at any time before or after notification of final closure.

Section 267.116 What must I do with contaminated equipment, structure, and soils?

You must properly dispose of or decontaminate all contaminated equipment, structures, and soils during the partial and final closure periods. By removing any hazardous wastes or hazardous constituents during partial and final closure, you may become a generator of hazardous waste and must handle that waste following all applicable requirements of 40 CFR part 262.

Section 267.117 How do I certify closure?

Within 60 days of the completion of final closure of each unit under a part 270 subpart J standardized permit, you must submit to the Director, by registered mail, a certification that each hazardous waste management unit or facility, as applicable, has been closed following the specifications in the closure plan. Both you and an independent registered professional engineer must sign the certification. You must furnish documentation supporting the independent registered professional engineer's certification to the Director upon request until he releases you from the financial assurance requirements for closure under Section 267.143( i). 146 SUBPART H  Financial Requirements § 267.140 Who must comply with this subpart, and briefly, what do they have to do?

( a) The regulations in this subpart apply to owners and operators who treat or store hazardous waste under a standardized permit, except as provided in § 267.1( b), or § 267.140( d)

below.

( b) The owner or operator must:

( 1) Prepare a closure cost estimate as required in § 267.142,

( 2) Demonstrate financial assurance for closure as required in § 267.143, and ( 3) Demonstrate financial assurance for liability as required in § 267.147.

( c) The owner or operator must notify the Regional Administrator if the owner or operator is named as a debtor in a bankruptcy proceeding under Title 11 ( Bankruptcy), U. S. Code ( See also § 267.148).

( d) States and the Federal government are exempt from the requirements of this subpart.

§ 267.141 Definitions of terms as used in this subpart.

( a) Closure plan means the plan for closure prepared in accordance with the requirements of § 267.112.

( b) Current closure cost estimate means the most recent of the estimates prepared in accordance with § 267.142 ( a), ( b), and ( c).

( c) [ Reserved]

( d) Parent corporation means a corporation which directly owns at least 50 percent of the voting stock of the corporation which is the facility owner or operator; the latter corporation is deemed a " subsidiary" of the parent corporation.

( e) [ Reserved]

( f) The following terms are used in the specifications for the financial tests for closure and liability coverage. The definitions are intended to assist in the understanding of these regulations and are not intended to limit the meanings of terms in a way that conflicts with generally accepted accounting practices:

Assets means all existing and all probable future economic benefits obtained or controlled by a particular entity.

Current plugging and abandonment cost estimate means the most recent of the estimates prepared in accordance with § 144.62( a), ( b), and ( c) of this chapter. 147 Independently audited refers to an audit performed by an independent certified public accountant in accordance with generally accepted auditing standards.

Liabilities means probable future sacrifices of economic benefits arising from present obligations to transfer assets or provide services to other entities in the future as a result of past transactions or events.

Tangible net worth means the tangible assets that remain after deducting liabilities; such assets would not include intangibles such as goodwill and rights to patents or royalties.

( g) In the liability insurance requirements, the terms bodily injury and property damage shall have the meanings given these terms by applicable State law. However, these terms do not include those liabilities which, consistent with standard industry practices, are excluded from coverage in liability policies for bodily injury and property damage. The Agency intends the meanings of other terms used in the liability insurance requirements to be consistent with their common meanings within the insurance industry. The definitions given below of several of the terms are intended to assist in the understanding of these regulations and are not intended to limit their meanings in a way that conflicts with general insurance industry usage.

Accidental occurrence means an accident, including continuous or repeated exposure to conditions, which results in bodily injury or property damage neither expected nor intended from the standpoint of the insured.

Legal defense costs means any expenses that an insurer incurs in defending against claims of third parties brought under the terms and conditions of an insurance policy.

Sudden accidental occurrence means an occurrence which is not continuous or repeated in nature.

( h) Substantial business relationship means the extent of a business relationship necessary under applicable State law to make a guarantee contract issued incident to that relationship valid and enforceable. A " substantial business relationship" must arise from a pattern of recent or ongoing business transactions, in addition to the guarantee itself, such that a currently existing business relationship between the guarantor and the owner or operator is demonstrated to the satisfaction of the applicable EPA Regional Administrator.

§ 267.142 Cost estimate for closure.

( a) The owner or operator must have at the facility a detailed written estimate, in current dollars, of the cost of closing the facility in accordance with the requirements in § § 267.111 through 267.115 and applicable closure requirements in § § 267.176, 267.201, 267.1108. 148 ( 1) The estimate must equal the cost of final closure at the point in the facility's active life when the extent and manner of its operation would make closure the most expensive, as indicated by the closure plan ( see § 267.112( b)); and ( 2) The closure cost estimate must be based on the costs to the owner or operator of hiring a third party to close the facility. A third party is a party who is neither a parent nor a subsidiary of the owner or operator. ( See definition of parent corporation in § 267.141( d).) The owner or operator may use costs for on site disposal if he can demonstrate that on site disposal capacity will exist at all times over the life of the facility.

( 3) The closure cost estimate may not incorporate any salvage value that may be realized with the sale of hazardous wastes, or non hazardous wastes, facility structures or equipment, land,

or other assets associated with the facility at the time of partial or final closure.

( 4) The owner or operator may not incorporate a zero cost for hazardous wastes, or non hazardous wastes that might have economic value.

( b) During the active life of the facility, the owner or operator must adjust the closure cost estimate for inflation within 60 days prior to the anniversary date of the establishment of the financial instrument( s) used to comply with § 267.143. For owners and operators using the financial test or corporate guarantee, the closure cost estimate must be updated for inflation within 30 days after the close of the firm's fiscal year and before submission of updated information to the Regional Administrator as specified in § 267.143( f)( 2)( iii). The adjustment may be made by recalculating the maximum costs of closure in current dollars, or by using an inflation factor derived from the most recent Implicit Price Deflator for Gross Domestic Product published by the U. S. Department of Commerce in its Survey of Current Business, as specified in paragraphs ( b)( 1)

and ( 2) of this section. The inflation factor is the result of dividing the latest published annual Deflator by the Deflator for the previous year.

( 1) The first adjustment is made by multiplying the closure cost estimate by the inflation factor. The result is the adjusted closure cost estimate.

( 2) Subsequent adjustments are made by multiplying the latest adjusted closure cost estimate by the latest inflation factor.

( c) During the active life of the facility, the owner or operator must revise the closure cost estimate no later than 30 days after the Regional Administrator has approved the request to modify the closure plan, if the change in the closure plan increases the cost of closure. The revised closure cost estimate must be adjusted for inflation as specified in § 267.142( b). 149 ( d). The owner or operator must keep the following at the facility during the operating life of the facility: The latest closure cost estimate prepared in accordance with paragraphs ( a) and ( c)

of this section and, when this estimate has been adjusted in accordance with paragraph ( b) of this section, the latest adjusted closure cost estimate.

§ 267.143 Financial assurance for closure.

The owner of operator must establish financial assurance for closure of each storage or treatment unit that he owns or operates. In establishing financial assurance for closure, the owner or operator must choose from the financial assurance mechanisms in paragraphs ( a), ( b), ( c), ( d),

( e), ( f), and ( g) of this section. The owner or operator can also use a combination of mechanisms for a single facility if they meet the requirement in paragraph ( h) of this section, or may use a single mechanism for multiple facilities as in paragraph ( i) of this section. The Regional Administrator will release the owner or operator from the requirements of this section after the owner or operator meets the criteria under paragraph ( j) of this section.

( a) Closure Trust Fund. Owners and operators can use the " closure trust fund," that is specified in 40 CFR 264.143( a)( 1) and ( 2), and 264.143( a)( 6)( 11). For purposes of this paragraph, the following provisions also apply:

( 1) Payments into the trust fund for a new facility must be made annually by the owner or operator over the remaining operating life of the facility as estimated in the closure plan, or over 3 years, whichever period is shorter. This period of time is hereafter referred to as the " pay in period."

( 2) For a new facility, the first payment into the closure trust fund must be made before the facility may accept the initial storage. A receipt from the trustee must be submitted by the owner or operator to the Regional Administrator before this initial storage of waste. The first payment must be at least equal to the current closure cost estimate, divided by the number of years in the pay in period, except as provided in paragraph ( h) of this section for multiple mechanisms.

Subsequent payments must be made no later than 30 days after each anniversary date of the first payment. The owner or operator determines the amount of each subsequent payment by subtracting the current value of the trust fund from the current closure cost estimate, and dividing this difference by the number of years remaining in the pay in period. Mathematically, the formula is Next Payment = ( Current Closure Estimate  Current Value of the Trust Fund) Divided by Years Remaining in the Pay In Period. 150 ( 3) The owner or operator of a facility existing on the effective date of this paragraph can establish a trust fund to meet this paragraph's financial assurance requirements. If the value of the trust fund is less than the current closure cost estimate when a final approval of the permit is granted for the facility, the owner or operator must pay the difference into the trust fund within 60 days.

( 4) The owner or operator may accelerate payments into the trust fund or deposit the full amount of the closure cost estimate when establishing the trust fund. However, he must maintain the value of the fund at no less than the value that the fund would have if annual payments were made as specified in paragraph ( a)( 2) or ( a)( 3) of this section.

( 5) The owner or operator must submit a trust agreement with the wording specified in 40 CFR 264.151( a)( 1).

( b) Surety Bond Guaranteeing Payment into a Closure Trust Fund. Owners and operators can use the " surety bond guaranteeing payment into a closure trust fund," as specified in 40 CFR 264.143( b), including the use of the surety bond instrument specified at 40 CFR 264.151( b), and the standby trust specified at 40 CFR 264.143( b)( 3).

( c) Surety Bond Guaranteeing Performance of Closure. Owners and operators can use the " surety bond guaranteeing performance of closure," as specified in 40 CFR 264.143( c), the submission and use of the surety bond instrument specified at 40 CFR 264.151( c), and the standby trust specified at 40 CFR 264.143( c)( 3).

( d) Closure Letter of Credit. Owners and operators can use the " closure letter of credit"

specified in 40 CFR 264.143( d), the submission and use of the irrevocable letter of credit instrument specified in 40 CFR 264.151( d), and the standby trust specified in 40 CFR 264.143( d)( 3).

( e) Closure Insurance. Owners and operators can use " closure insurance," as specified in 40 CFR 264.143( e), utilizing the certificate of insurance for closure specified at 40 CFR 264.151( e).

( f) Corporate financial test. An owner or operator that satisfies the requirements of this paragraph may demonstrate financial assurance up to the amount specified in this paragraph:

( 1) Financial component.

( i) The owner or operator must satisfy one of the following three conditions:

( A) A current rating for its senior unsecured debt of AAA, AA, A, or BBB as issued by Standard and Poor's or Aaa, Aa, A or Baa as issued by Moody's; or ( B) A ratio of less than 1.5 comparing total liabilities to net worth; or 151 ( C) A ratio of greater than 0.10 comparing the sum of net income plus depreciation,

depletion and amortization, minus $ 10 million, to total liabilities.

( ii) The tangible net worth of the owner or operator must be greater than:

( A) The sum of the current environmental obligations ( see paragraph ( f)( 2)( i)( A)( 1) of this section), including guarantees, covered by a financial test plus $ 10 million, except as provided in paragraph ( f)( 1)( ii)( B) of this section.

( B) $ 10 million in tangible net worth plus the amount of any guarantees that have not been recognized as liabilities on the financial statements provided all of the environmental obligations ( see paragraph ( f)( 2)( i)( A)( 1) of this section) covered by a financial test are recognized as liabilities on the owner's or operator's audited financial statements, and subject to the approval of the Regional Administrator.

( iii) The owner or operator must have assets located in the United States amounting to at least the sum of environmental obligations covered by a financial test as described in paragraph ( f)( 2)( i)( A)( 1) of this section.

( 2) Recordkeeping and reporting requirements.

( i) The owner or operator must submit the following items to the Regional Administrator:

( A) A letter signed by the owner's or operator's chief financial officer that:

( 1) Lists all the applicable current types, amounts, and sums of environmental obligations covered by a financial test. These obligations include both obligations in the programs which EPA directly operates and obligations where EPA has delegated authority to a State or approved a State's program. These obligations include, but are not limited to:

( i) Liability, closure, post closure and corrective action cost estimates required for hazardous waste treatment, storage, and disposal facilities under 40 CFR 264.101, 264.142,

264.144, 264.147, 265.142, 265.144, and 265.147.;

( ii) Cost estimates required for municipal solid waste management facilities under 40 CFR 258.71, 258.72, and 258.73;

( iii) Current plugging cost estimates required for UIC facilities under 40 CFR 144.62;

( iv) Cost estimates required for petroleum underground storage tank facilities under 40 CFR 280.93;

( v) Cost estimates required for PCB storage facilities under 40 CFR 761.65;

( vi) Any financial assurance required under, or as part of an action undertaken under, the Comprehensive Environmental Response, Compensation, and Liability Act; and ( vii) Any other environmental obligations that are assured through a financial test. 152 ( 2) Provides evidence demonstrating that the firm meets the conditions of either paragraph ( f)( 1)( i)( A) or ( f)( 1)( i)( B) or ( f)( 1)( i)( C) of this section and paragraphs ( f)( 1)( ii) and ( f)( 1)( iii) of this section.

( B) A copy of the independent certified public accountant's unqualified opinion of the owner's or operator's financial statements for the latest completed fiscal year. To be eligible to use the financial test, the owner's or operator's financial statements must receive an unqualified opinion from the independent certified public accountant. An adverse opinion, disclaimer of opinion, or other qualified opinion will be cause for disallowance, with the potential exception for qualified opinions provided in the next sentence. The Regional Administrator may evaluate qualified opinions on a case by case basis and allow use of the financial test in cases where the Regional Administrator deems that the matters which form the basis for the qualification are insufficient to warrant disallowance of the test. If the Regional Administrator does not allow use of the test, the owner or operator must provide alternate financial assurance that meets the requirements of this section within 30 days after the notification of disallowance.

( C) If the chief financial officer's letter providing evidence of financial assurance includes financial data showing that the owner or operator satisfies paragraph ( f)( 1)( i)( B) or ( f)( 1)( i)( C) of this section that are different from data in the audited financial statements referred to in paragraph ( f)( 2)( i)( B) of this section or any other audited financial statement or data filed with the SEC, then a special report from the owner's or operator's independent certified public accountant to the owner or operator is required. The special report shall be based upon an agreed upon procedures engagement in accordance with professional auditing standards and shall describe the procedures performed in comparing the data in the chief financial officer's letter derived from the independently audited, year end financial statements for the latest fiscal year with the amounts in such financial statements, the findings of that comparison, and the reasons for any differences.

( D) If the chief financial officer's letter provides a demonstration that the firm has assured for environmental obligations as provided in paragraph ( f)( 1)( ii)( B) of this section, then the letter shall include a report from the independent certified public accountant that verifies that all of the environmental obligations covered by a financial test have been recognized as liabilities on the audited financial statements, how these obligations have been measured and reported, and that the tangible net worth of the firm is at least $ 10 million plus the amount of any guarantees provided.

( ii) The owner or operator of a new facility must submit the items specified in paragraph ( f)( 2)( i) of this section to the Regional Administrator at least 60 days before placing waste in the facility. 153 ( iii) After the initial submission of items specified in paragraph ( f)( 2)( i) of this section, the owner or operator must send updated information to the Regional Administrator within 90 days following the close of the owner or operator's fiscal year. The Regional Administrator may provide up to an additional 45 days for an owner or operator who can demonstrate that 90 days is insufficient time to acquire audited financial statements. The updated information must consist of all items specified in paragraph ( f)( 2)( i) of this section.

( iv) The owner or operator is no longer required to submit the items specified in this paragraph ( f)( 2) of this section or comply with the requirements of this paragraph ( f) when:

( A) The owner or operator substitutes alternate financial assurance as specified in this section that is not subject to these recordkeeping and reporting requirements; or ( B) The Regional Administrator releases the owner or operator from the requirements of this section in accordance with paragraph ( j) of this section.

( v) An owner or operator who no longer meets the requirements of paragraph ( f)( 1) of this section cannot use the financial test to demonstrate financial assurance. Instead an owner or operator who no longer meets the requirements of paragraph ( f)( 1) of this section, must:

( A) Send notice to the Regional Administrator of intent to establish alternate financial assurance as specified in this section. The owner or operator must send this notice by certified mail within 90 days following the close the owner or operator's fiscal year for which the year end financial data show that the owner or operator no longer meets the requirements of this section.

( B) Provide alternative financial assurance within 120 days after the end of such fiscal year.

( vi) The Regional Administrator may, based on a reasonable belief that the owner or operator may no longer meet the requirements of paragraph ( f)( 1) of this section, require at any time the owner or operator to provide reports of its financial condition in addition to or including current financial test documentation as specified in paragraph ( f)( 2) of this section. If the Regional Administrator finds that the owner or operator no longer meets the requirements of paragraph ( f)( 1) of this section, the owner or operator must provide alternate financial assurance that meets the requirements of this section.

( g) Corporate Guarantee.

( 1) An owner or operator may meet the requirements of this section by obtaining a written guarantee. The guarantor must be the direct or higher tier parent corporation of the owner or operator, a firm whose parent corporation is also the parent corporation of the owner or operator,

or a firm with a " substantial business relationship" with the owner or operator. The guarantor must meet the requirements for owners or operators in paragraph ( f) of this section and must 154 comply with the terms of the guarantee. The wording of the guarantee must be identical to the wording in 40 CFR 264.151( h). The certified copy of the guarantee must accompany the letter from the guarantor's chief financial officer and accountants' opinions. If the guarantor's parent corporation is also the parent corporation of the owner or operator, the letter from the guarantor's chief financial officer must describe the value received in consideration of the guarantee. If the guarantor is a firm with a " substantial business relationship" with the owner or operator, this letter must describe this " substantial business relationship" and the value received in consideration of the guarantee.

( 2) For a new facility, the guarantee must be effective and the guarantor must submit the items in paragraph ( g)( 1) of this section and the items specified in paragraph ( f)( 2)( i) of this section to the Regional Administrator at least 60 days before the owner or operator places waste in the facility.

( 3) The terms of the guarantee must provide that:

( i) If the owner or operator fails to perform closure at a facility covered by the guarantee,

the guarantor will:

( A) Perform, or pay a third party to perform closure ( performance guarantee); or ( B) Establish a fully funded trust fund as specified in paragraph ( a) of this section in the name of the owner or operator ( payment guarantee).

( ii) The guarantee will remain in force for as long as the owner or operator must comply with the applicable financial assurance requirements of this Subpart unless the guarantor sends prior notice of cancellation by certified mail to the owner or operator and to the Regional Administrator. Cancellation may not occur, however, during the 120 days beginning on the date of receipt of the notice of cancellation by both the owner or operator and the Regional Administrator as evidenced by the return receipts.

( iii) If notice of cancellation is given, the owner or operator must, within 90 days following receipt of the cancellation notice by the owner or operator and the Regional Administrator, obtain alternate financial assurance, and submit documentation for that alternate financial assurance to the Regional Administrator. If the owner or operator fails to provide alternate financial assurance and obtain the written approval of such alternative assurance from the Regional Administrator within the 90 day period, the guarantor must provide that alternate assurance in the name of the owner or operator and submit the necessary documentation for the alternative assurance to the Regional Administrator within 120 days of the cancellation notice. 155 ( 4) If a corporate guarantor no longer meets the requirements of paragraph ( f)( 1) of this section, the owner or operator must, within 90 days, obtain alternative assurance, and submit the assurance to the Regional Administrator for approval. If the owner or operator fails to provide alternate financial assurance within the 90 day period, the guarantor must provide that alternate assurance within the next 30 days, and submit it to the Regional Administrator for approval.

( 5) The guarantor is no longer required to meet the requirements of this paragraph ( g)

when:

( i) The owner or operator substitutes alternate financial assurance as specified in this section; or ( ii) The owner or operator is released from the requirements of this section in accordance with paragraph ( j) of this section.

( h) Use of Multiple Financial Mechanisms An owner or operator may use more than one mechanism at a particular facility to satisfy the requirements of this section. The acceptable mechanisms are trust funds, surety bonds guaranteeing payment into a trust fund, letters of credit,

insurance, the financial test, and the guarantee, except owners or operators cannot combine the financial test with the guarantee. The mechanisms must be as specified in paragraphs ( a), ( b), ( d),

( e), ( f), and ( g) respectively of this section, except it is the combination of mechanisms rather than a single mechanism that must provide assurance for an amount at least equal to the cost estimate.

If an owner or operator uses a trust fund in combination with a surety bond or letter of credit, he may use the trust fund as the standby trust for the other mechanisms. A single trust fund can be established for two or more mechanisms. The Regional Administrator may use any or all of the mechanisms to provide for closure of the facility.

( i) Use of a financial mechanism for multiple facilities. An owner or operator may use a financial mechanism for multiple facilities, as specified in § 264.143( h) of this chapter.

( j) Release of the owner or operator from the requirements of this section. Within 60 days after receiving certifications from the owner or operator and an independent registered professional engineer that final closure has been completed in accordance with the approved closure plan, the Regional Administrator will notify the owner or operator in writing that the owner or operator is no longer required by this section to maintain financial assurance for final closure of the facility,

unless the Regional Administrator has reason to believe that final closure has not been completed in accordance with the approved closure plan. The Regional Administrator shall provide the owner or operator with a detailed written statement of any such reasons to believe that closure has not been conducted in accordance with the approved closure plan. 156 § 267.144  267.146 [ Reserved]

§ 267.147 Liability requirements.

( a) Coverage for sudden accidental occurrences. An owner or operator of a hazardous waste treatment or storage facility, or a group of such facilities, must demonstrate financial responsibility for bodily injury and property damage to third parties caused by sudden accidental occurrences arising from operations of the facility or group of facilities. The owner or operator must have and maintain liability coverage for sudden accidental occurrences in the amount of at least $ 1 million per occurrence with an annual aggregate of at least $ 2 million, exclusive of legal defense costs. This liability coverage may be demonstrated as specified in paragraphs ( a) ( 1)

through ( a)( 7) of this section:

( 1) Trust fund for liability coverage. An owner or operator may meet the requirements of this section by obtaining a trust fund for liability coverage as specified in 40 CFR 264.147( j).

( 2) Surety bond for liability coverage. An owner or operator may meet the requirements of this section by obtaining a surety bond for liability coverage as specified in 40 CFR 264.147( i).

( 3) Letter of credit for liability coverage. An owner or operator may meet the requirements of this section by obtaining a letter of credit for liability coverage as specified in 40 CFR 264.147( h).

( 4) Insurance for liability coverage. An owner or operator may meet the requirements of this section by obtaining liability insurance as specified in 40 CFR 264.147( a)( 1).

( 5) Financial test for liability coverage. An owner or operator may meet the requirements of this section by passing a financial test as specified in paragraph ( f) of this section.

( 6) Guarantee for liability coverage. An owner or operator may meet the requirements of this section by obtaining a guarantee as specified in paragraph ( g) of this section.

( 7) Combination of mechanisms. An owner or operator may demonstrate the required liability coverage through the use of combinations of mechanisms as allowed by 40 CFR 264.147( a)( 6).

( 8) An owner or operator shall notify the Regional Administrator in writing within 30 days whenever:

( i) A claim results in a reduction in the amount of financial assurance for liability coverage provided by a financial instrument authorized in paragraphs ( a)( 1) through ( a)( 7) of this section; or ( ii) A Certification of Valid Claim for bodily injury or property damages caused by a sudden accidental occurrence arising from the operation of a hazardous waste treatment, storage, 157 or disposal facility is entered between the owner or operator and third party claimant for liability coverage under paragraphs ( a)( 1) through ( a)( 7) of this section; or ( iii) A final court order establishing a judgment for bodily injury or property damage caused by a sudden accidental occurrence arising from the operation of a hazardous waste treatment,

storage, or disposal facility is issued against the owner or operator or an instrument that is providing financial assurance for liability coverage under paragraphs ( a)( 1) through ( a)( 7) of this section.

( b)  ( d) [ Reserved]

( e) Period of coverage. Within 60 days after receiving certifications from the owner or operator and an independent registered professional engineer that final closure has been completed in accordance with the approved closure plan, the Regional Administrator will notify the owner or operator in writing that he is no longer required by this section to maintain liability coverage from that facility, unless the Regional Administrator has reason to believe that closure has not been in accordance with the approved closure plan.

( f) Financial test for Liability Coverage. An owner or operator that satisfies the requirements of this paragraph ( f) may demonstrate financial assurance for liability up to the amount specified in this paragraph ( f):

( 1) Financial component.

( i) If using the financial test for only liability coverage, the owner or operator must have tangible net worth greater than the sum of the liability coverage to be demonstrated by this test plus $ 10 million.

( ii) The owner or operator must have assets located in the United States amounting to at least the amount of liability covered by this financial test.

( iii) An owner or operator who is demonstrating coverage for liability and any other environmental obligations, including closure under § 267.143( f), through a financial test must meet the requirements of § 267.143( f).

( 2) Recordkeeping and reporting requirements.

( i) The owner or operator must submit the following items to the Regional Administrator:

( A) A letter signed by the owner's or operator's chief financial officer that provides evidence demonstrating that the firm meets the conditions of paragraphs ( f)( 1)( i) and ( f)( 1)( ii) of this section. If the firm is providing only liability coverage through a financial test for a facility or facilities with a permit under § 267, the letter should use the wording in § 267.151( b). If the firm is providing only liability coverage through a financial test for facilities regulated under § 267 and also 158 § 264 or § 265, it should use the letter in § 264.151( g). If the firm is providing liability coverage through a financial test for a facility or facilities with a permit under § 267, and it assures closure costs or any other environmental obligations through a financial test, it must use the letter in § 267.151( a) for the facilities issued a permit under § 267.

( B) A copy of the independent certified public accountant's unqualified opinion of the owner's or operator's financial statements for the latest completed fiscal year. To be eligible to use the financial test, the owner's or operator's financial statements must receive an unqualified opinion from the independent certified public accountant. An adverse opinion, disclaimer of opinion, or other qualified opinion will be cause for disallowance, with the potential exception for qualified opinions provided in the next sentence. The Regional Administrator may evaluate qualified opinions on a case by case basis and allow use of the financial test in cases where the Regional Administrator deems that the matters which form the basis for the qualification are insufficient to warrant disallowance of the test. If the Regional Administrator does not allow use of the test, the owner or operator must provide alternate financial assurance that meets the requirements of this section ( 267.147) within 30 days after the notification of disallowance.

( C) If the chief financial officer's letter providing evidence of financial assurance includes financial data showing that the owner or operator satisfies paragraphs ( f)( 1)( i) and ( ii) of this section that are different from data in the audited financial statements referred to in paragraph ( f)( 2)( i)( B) of this section or any other audited financial statement or data filed with the SEC, then a special report from the owner's or operator's independent certified public accountant to the owner or operator is required. The special report shall be based upon an agreed upon procedures engagement in accordance with professional auditing standards and shall describe the procedures performed in comparing the data in the chief financial officer's letter derived from the independently audited, year end financial statements for the latest fiscal year with the amounts in such financial statements, the findings of that comparison, and the reasons for any differences.

( ii) The owner or operator of a new facility must submit the items specified in paragraph ( f)( 2)( i) of this section to the Regional Administrator at least 60 days before placing waste in the facility.

( iii) After the initial submission of items specified in paragraph ( f)( 2)( i) of this section, the owner or operator must send updated information to the Regional Administrator within 90 days following the close of the owner or operator's fiscal year. The Regional Administrator may provide up to an additional 45 days for an owner or operator who can demonstrate that 90 days is 159 insufficient time to acquire audited financial statements. The updated information must consist of all items specified in paragraph ( f)( 2)( i) of this section.

( iv) The owner or operator is no longer required to submit the items specified in this paragraph ( f)( 2) or comply with the requirements of this paragraph ( f) when:

( A) The owner or operator substitutes alternate financial assurance as specified in this section that is not subject to these recordkeeping and reporting requirements; or ( B) The Regional Administrator releases the owner or operator from the requirements of this section in accordance with paragraph ( j) of this section.

( v) An owner or operator who no longer meets the requirements of paragraph ( f)( 1) of this section cannot use the financial test to demonstrate financial assurance. An owner or operator who no longer meets the requirements of paragraph ( f)( 1) of this section, must:

( A) Send notice to the Regional Administrator of intent to establish alternate financial assurance as specified in this section. The owner or operator must send this notice by certified mail within 90 days following the close of the owner or operator's fiscal year for which the yearend financial data show that the owner or operator no longer meets the requirements of this section.

( B) Provide alternative financial assurance within 120 days after the end of such fiscal year.

( vi) The Regional Administrator may, based on a reasonable belief that the owner or operator may no longer meet the requirements of paragraph ( f)( 1) of this section, require at any time the owner or operator to provide reports of its financial condition in addition to or including current financial test documentation as specified in paragraph ( f)( 2) of this section. If the Regional Administrator finds that the owner or operator no longer meets the requirements of paragraph ( f)( 1) of this section, the owner or operator must provide alternate financial assurance that meets the requirements of this section.

( g) Guarantee for liability coverage. ( 1) Subject to paragraph ( g)( 2) of this section, an owner or operator may meet the requirements of this section by obtaining a written guarantee,

hereinafter referred to as " guarantee." The guarantor must be the direct or higher tier parent corporation of the owner or operator, a firm whose parent corporation is also the parent corporation of the owner or operator, or a firm with a " substantial business relationship" with the owner or operator. The guarantor must meet the requirements for owners or operators in paragraphs ( f)( 1) through ( f)( 3) of this section. The wording of the guarantee must be identical to the wording specified in 40 CFR 264.151( h)( 2). A certified copy of the guarantee must accompany the items sent to the Regional Administrator as specified in paragraph ( f)( 2) of this 160 section. One of these items must be the letter from the guarantor's chief financial officer. If the guarantor's parent corporation is also the parent corporation of the owner or operator, this letter must describe the value received in consideration of the guarantee. If the guarantor is a firm with a " substantial business relationship" with the owner or operator, this letter must describe this " substantial business relationship" and the value received in consideration of the guarantee.

( i) If the owner or operator fails to satisfy a judgment based on a determination of liability for bodily injury or property damage to third parties caused by sudden accidental occurrences arising from the operation of facilities covered by this corporate guarantee, or fails to pay an amount agreed to in settlement of claims arising from or alleged to arise from such injury or damage, the guarantor will do so up to the limits of coverage.

( ii) [ Reserved]

( 2)( i) In the case of corporations incorporated in the United States, a guarantee may be used to satisfy the requirements of this section only if the Attorneys General or Insurance Commissioners of the State in which the guarantor is incorporated, and each State in which a facility covered by the guarantee is located, have submitted a written statement to EPA that a guarantee executed as described in this section and 40 CFR 264.151( h)( 2) is a legally valid and enforceable obligation in that State.

( ii) In the case of corporations incorporated outside the United States, a guarantee may be used to satisfy the requirements of this section only if:

( A) the non U. S. corporation has identified a registered agent for service of process in each State in which a facility covered by the guarantee is located and in the State in which it has its principal place of business, and ( B) the Attorney General or Insurance Commissioner of each State in which a facility covered by the guarantee is located and the State in which the guarantor corporation has its principal place of business, has submitted a written statement to EPA that a guarantee executed as described in this section and 40 CFR 264.151( h)( 2) is a legally valid and enforceable obligation in that State.

§ 267.148 Incapacity of owners or operators, guarantors, or financial institutions.

( a) An owner or operator must notify the Regional Administrator by certified mail of the commencement of a voluntary or involuntary proceeding under Title 11 ( Bankruptcy), U. S. Code,

naming the owner or operator as debtor, within 10 days after commencement of the proceeding. A guarantor of a corporate guarantee as specified in § § 267.143( g) and 267.147 ( g) must make such a 161 notification if he is named as debtor, as required under the terms of the corporate guarantee ( § 264.151( h)).

( b) An owner or operator who fulfills the requirements of § 267.143 or § 267.147 by obtaining a trust fund, surety bond, letter of credit, or insurance policy will be deemed to be without the required financial assurance or liability coverage in the event of bankruptcy of the trustee or issuing institution, or a suspension or revocation of the authority of the trustee institution to act as trustee or of the institution issuing the surety bond, letter of credit, or insurance policy to issue such instruments. The owner or operator must establish other financial assurance or liability coverage within 60 days after such an event.

§ 267.149 [ Reserved]

§ 267.150 State assumption of responsibility.

( a) If a State either assumes legal responsibility for an owner's or operator's compliance with the closure care or liability requirements of this part or assures that funds will be available from State sources to cover those requirements, the owner or operator will be in compliance with the requirements of § 267.143 or § 267.147 if the Regional Administrator determines that the State's assumption of responsibility is at least equivalent to the financial mechanisms specified in this subpart. The Regional Administrator will evaluate the equivalency of State guarantees principally in terms of ( 1) certainty of the availability of funds for the required closure care activities or liability coverage and ( 2) the amount of funds that will be made available. The Regional Administrator may also consider other factors as he deems appropriate. The owner or operator must submit to the Regional Administrator a letter from the State describing the nature of the State's assumption of responsibility together with a letter from the owner or operator requesting that the State's assumption of responsibility be considered acceptable for meeting the requirements of this subpart. The letter from the State must include, or have attached to it, the following information: the facility's EPA Identification Number, name, and address, and the amount of funds for closure care or liability coverage that are guaranteed by the State. The Regional Administrator will notify the owner or operator of his determination regarding the acceptability of the State's guarantee in lieu of financial mechanisms specified in this subpart. The Regional Administrator may require the owner or operator to submit additional information as is deemed necessary to make this determination. Pending this determination, the owner or operator will be deemed to be in compliance with the requirements of § 267.143 or § 267.147, as applicable. 162 ( b) If a State's assumption of responsibility is found acceptable as specified in paragraph ( a)

of this section except for the amount of funds available, the owner or operator may satisfy the requirements of this subpart by use of both the State's assurance and additional financial mechanisms as specified in this subpart. The amount of funds available through the State and Federal mechanisms must at least equal the amount required by this subpart.

§ 267.151 Wording of the instruments ( b) The chief financial officer of an owner or operator of a facility with a standardized permit who use a financial test to demonstrate financial assurance for that facility must complete a letter as specified in Section 267.143( f) of this chapter. The letter must be worded as follows, except that instructions in brackets are to be replaced with the relevant information and the brackets deleted:

I am the chief financial officer of [ name and address of firm]. This letter is in support of this firm's use of the financial test to demonstrate financial assurance for closure costs, as specified in [ insert " subpart H of 40 CFR part 267" or the citation to the corresponding state regulation]. This firm qualifies for the financial test on the basis of having [ insert " a current rating for its senior unsecured debt of AAA, AA, A, or BBB as issued by Standard and Poor's or Aaa, Aa, A or Baa as issued by Moody's" or " a ratio of less than 1.50 comparing total liabilities to net worth" or " a ratio of greater than 0.10 comparing the sum of net income plus depreciation, depletion and amortization, minus $ 10 million, to total liabilities."]

This firm [ insert " is required" or " is not required"] to file a Form 10K with the Securities and Exchange Commission ( SEC) for the latest fiscal year.

The fiscal year of this firm ends on [ month, day]. The figures for the following items marked with an asterisk are derived from this firm's independently audited, year end financial statements for the latest completed fiscal year, ended [ date].

[ If this firm qualifies on the basis of its bond rating fill in the requested information: " This firm has a rating of its senior unsecured debt of" [ insert the bond rating] " from" [ insert " Standard and Poor's" or " Moody's"] . Complete Line 1. Total Liabilities below and then skip the remaining 163 questions in the next section and resume completing the form at the section entitled Obligations Covered by a Financial Test or Corporate Guarantee.]

[ If this firm qualifies for the financial test on the basis of its ratio of liabilities to net worth, or sum of income, depreciation, depletion, and amortization to net worth, please complete the following section.]

* 1. Total Liabilities $__________________

* 2. Net Worth $__________________

* 3. Net Income $__________________

* 4. Depreciation $__________________

* 5. Depletion ( if applicable) $__________________

* 6. Amortization $__________________

* 7. Sum of Lines 3., 4., 5. & 6. $__________________

[ If the above figures are taken directly from the most recent audited financial statements for this firm insert " The above figures are taken directly from the most recent audited financial statements for this firm." If they are not, insert " The following items are not taken directly from the firms most recent audited financial statements" [ insert the numbers of the items and attach an explanation of how they were derived.]]

[ Complete the following calculations]

8. Line 1. ÷ Line 2. = __________________

9. Line 7. ÷ Line 1. = __________________

Is Line 8. less than 1.5? _____ Yes _____ No Is Line 9 greater than 0.10? _____ Yes _____ No [ If you did not answer Yes to either of these two questions, you cannot use the financial test and need not complete this letter. Instead, you must notify the permitting authority for the facility that you intend to establish alternate financial assurance as specified in 40 CFR 267.143. The owner or 164 operator must send this notice by certified mail within 90 days following the close of the owner or operator's fiscal year for which the year end financial data show that the owner or operator no longer meets the requirements of this section. The owner or operator must also provide alternative financial assurance within120 days after the end of such fiscal year.]

Obligations Covered by a Financial Test or Corporate Guarantee [ On the following lines list all obligations that are covered by a financial test or a corporate guarantee extended by your firm. You may add additional lines and leave blank entries that do not apply to your situation.]

Hazardous Waste Facility Name and ID State Closure Post Closure Corrective Action ________________________________ ___ $________ $_________ $____________

________________________________ ___ ________ _________ ____________

Hazardous Waste Third Party Liability $____________

Municipal Waste Facilities State Closure Post Closure Corrective Action ________________________________ ____ $________ $_________ $_____________

________________________________ ____ ________ __________

____________

_

Underground Injection Control State Plugging Costs ____ $_____________

Petroleum Underground Storage Tanks $_____________ 165 PCB Storage Facility Name and ID State Closure ________________________________ ____ $_____________

Any financial assurance required under, or as part of an action undertaken under, the Comprehensive Environmental Response, Compensation, and Liability Act Site Name State Amount _______________________________________ _____ $________

Any other environmental obligations that are assured through a financial test.

Name Amount ______________________________________ $________

* 10 Total of all amounts $___________

* 11 Line 10 + $ 10,000,000 = $___________

* 12. Total Assets $___________

* 13. Intangible Assets $___________

* 14. Tangible Assets ( Line 12.  Line 13) $___________

* 15. Tangible Net Worth ( Line 14.  Line 1.) $___________

* 16. Assets in the United States $___________

Is Line 15 greater than Line 11? _____ Yes _____ No Is Line 16 no less than Line 10? _____ Yes _____ No [ You must be able to answer Yes to both these questions to use the financial test for this facility.] 166 I hereby certify that the wording of this letter is identical to the wording specified in 40 CFR 267.151 as such regulations were constituted on the date shown immediately below.

[ Signature]_____________________________________________________________

[ Name]__________________________________________________________________

[ Title]_________________________________________________________________

[ Date]__________________________________________________________________

[ After completion, a signed copy of the form must be sent to the permitting authority of the state or territory where the facility is located. In addition, a signed copy must be sent to every authority who ( 1) requires a demonstration through a financial test for each of the other obligations in the letter that are assured through a financial test, or ( 2) accepts a guarantee for an obligation listed in this letter.]

( b) The chief financial officer of an owner or operator of a facility with a standardized permit who use a financial test to demonstrate financial assurance only for third party liability for that ( or other standardized permit) facility( ies) must complete a letter as specified in Section 267.147( f) of this chapter. The letter must be worded as follows, except that instructions in brackets are to be replaced with the relevant information and the brackets deleted:

I am the chief financial officer of [ name and address of firm]. This letter is in support of this firm's use of the financial test to demonstrate financial assurance for third party liability, as specified in [ insert " subpart H of 40 CFR part 267" or the citation to the corresponding state regulation]. This firm qualifies for the financial test on the basis of having tangible net worth of at least $ 10 million more than the amount of liability coverage and assets in the United States of at least the amount of liability coverage.

This firm [ insert " is required" or " is not required"] to file a Form 10K with the Securities and Exchange Commission ( SEC) for the latest fiscal year. 167 The fiscal year of this firm ends on [ month, day]. The figures for the following items marked with an asterisk are derived from this firm's independently audited, year end financial statements for the latest completed fiscal year, ended [ date].

[ Please complete the following section.]

* 1. Total Assets $___________

* 2. Intangible Assets $___________

* 3. Tangible Assets ( Line 1  Line 2) $___________

* 4. Total Liabilities $____________

5. Tangible Net Worth ( Line 3  Line 4) $___________

* 6. Assets in the United States $___________

7. Amount of liability coverage $___________

Is Line 5 At least $ 10 million greater than Line 7? _____ Yes _____ No Is Line 6 at least equal to Line 7? _____ Yes _____ No [ You must be able to answer Yes to both these questions to use the financial test for this facility.]

I hereby certify that the wording of this letter is identical to the wording specified in 40 CFR 267.151 as such regulations were constituted on the date shown immediately below.

[ Signature]_____________________________________________________________

[ Name]__________________________________________________________________

[ Title]_________________________________________________________________

[ Date]__________________________________________________________________

[ After completion, a signed copy of the form must be sent to the permitting authority of the state or territory where the facility( ies) is( are) located.] 168 Subpart I Use and Management of Containers Section 267.170 Does this subpart apply to me?

This subpart applies to you if you own or operate a facility that treats or stores hazardous waste in containers under a 40 CFR part 270 subpart J standardized permit, except as provided in Section 267.1( b).

Section 267.171 What standards apply to the containers?

Standards apply to the condition of the containers, to the compatibility of waste with the containers, and to the management of the containers.

( a) Condition of containers. If a container holding hazardous waste is not in good condition ( for example, it exhibits severe rusting or apparent structural defects) or if it begins to leak, you must either:

( 1) Transfer the hazardous waste from this container to a container that is in good condition; or ( 2) Manage the waste in some other way that complies with the requirements of this part.

( b) Compatibility of waste with containers. To ensure that the ability of the container to contain the waste is not impaired, you must use a container made of or lined with materials that are compatible and will not react with the hazardous waste to be stored.

( c) Management of containers. ( 1) You must always keep a container holding hazardous waste closed during storage, except when you add or remove waste.

( 2) You must never open, handle, or store a container holding hazardous waste in a manner that may rupture the container or cause it to leak.

Section 267.172 What are the inspection requirements?

At least weekly, you must inspect areas where you store containers, looking for leaking containers and for deterioration of containers and the containment system caused by corrosion or other factors.

Section 267.173 What standards apply to the container storage areas? 169 ( a) You must design and operate a containment system for your container storage areas according to the requirements in paragraph ( b) of this section, except as otherwise provided by paragraph ( c) of this section.

( b) The design and operating requirements for a containment system are:

( 1) A base must underlie the containers that is free of cracks or gaps and is sufficiently impervious to contain leaks, spills, and accumulated precipitation until the collected material is detected and removed.

( 2) The base must be sloped or the containment system, must be otherwise designed and operated to drain and remove liquids resulting from leaks, spills, or precipitation, unless the containers are elevated or are otherwise protected from contact with accumulated liquids.

( 3) The containment system must have sufficient capacity to contain 10% of the volume of containers, or the volume of the largest container, whichever is greater. This requirement does not apply to containers that do not contain free liquids.

( 4) You must prevent run on into the containment system unless the collection system has sufficient excess capacity, in addition to that required in paragraph ( b)( 3) of this section, to contain the liquid.

( 5) You must remove any spilled or leaked waste and accumulated precipitation from the sump or collection area as promptly as is necessary to prevent overflow of the collection system.

( c) Except as provided in paragraph ( d) of this section, you do not need a containment system as defined in paragraph ( b) of this section for storage areas that store containers holding only wastes with no free liquids, if:

( 1) The storage area is sloped or is otherwise designed and operated to drain and remove liquid resulting from precipitation, or ( 2) The containers are elevated or are otherwise protected from contact with accumulated liquid.

( d) You must have a containment system defined by paragraph ( b) of this section for storage areas that store containers holding FO20, FO21, FO22, FO23, FO26, and FO27 wastes, even if the wastes do not contain free liquids.

Section 267.174 What special requirements must I meet for ignitable or reactive waste? 170 You must locate containers holding ignitable or reactive waste at least 15 meters ( 50 feet) from your facility property line. You must also follow the general requirements for ignitable or reactive wastes that are specified in Section 267.17( a).

Section 267.175 What special requirements must I meet for incompatible wastes?

( a) You must not place incompatible wastes, or incompatible wastes and materials ( see appendix V to 40 CFR part 264 for examples), in the same container, unless you comply with Section 267.17( b).

( b) You must not place hazardous waste in an unwashed container that previously held an incompatible waste or material.

( c) You must separate a storage container holding a hazardous waste that is incompatible with any waste or with other materials stored nearby in other containers, piles, open tanks, or surface impoundments from the other materials, or protect the containers by means of a dike, berm, wall,

or other device.

Section 267.176 What must I do when I want to stop using the containers?

You must remove all hazardous waste and hazardous waste residues from the containment system. You must decontaminate or remove remaining containers, liners, bases, and soil containing, or contaminated with, hazardous waste or hazardous waste residues.

Section 267.177 What air emission standards apply?

You must manage all hazardous waste placed in a container according to the requirements of subparts AA, BB, and CC of 40 CFR part 264. Under a standardized permit, the following control devices are permissible: Thermal vapor incinerator, catalytic vapor incinerator, flame, boiler,

process heater, condenser, and carbon absorption unit.

Subpart J Tank Systems Section 267.190 Does this subpart apply to me? 171 This subpart applies to you if you own or operate a facility that treats or stores hazardous waste in above ground or on ground tanks under a 40 CFR part 270 subpart J standardized permit,

except as provided in Sec. 267.1( b).

( a) You do not have to meet the secondary containment requirements in Section 267.195 if your tank systems do not contain free liquids and are situated inside a building with an impermeable floor. You must demonstrate the absence or presence of free liquids in the stored/

treated waste, using Method 9095B ( Paint Filter Liquids Test) as described in " Test Methods for Evaluating Solid Waste, Physical/ Chemical Methods," EPA Publication SW 846, as incorporated by reference in 40 CFR 260.11.

( b) You do not have to meet the secondary containment requirements of Section 267.195( a) if your tank system, including sumps, as defined in 40 CFR 260.10, is part of a secondary containment system to collect or contain releases of hazardous wastes.

Section 267.191 What are the required design and construction standards for new tank systems or components?

You must ensure that the foundation, structural support, seams, connections, and pressure controls ( if applicable) are adequately designed and that the tank system has sufficient structural strength, compatibility with the waste( s) to be stored or treated, and corrosion protection to ensure that it will not collapse, rupture, or fail. You must obtain a written assessment, reviewed and certified by an independent, qualified registered professional engineer, following 40 CFR 270.11( d), attesting that the tank system has sufficient structural integrity and is acceptable for the storing and treating of hazardous waste. This assessment must include, at a minimum, the following information:

( a) Design standard( s) for the construction of tank( s) and/ or the ancillary equipment.

( b) Hazardous characteristics of the waste( s) to be handled.

( c) For new tank systems or components in which the external shell of a metal tank or any external metal component of the tank system will be in contact with the soil or with water, a determination by a corrosion expert of:

( 1) Factors affecting the potential for corrosion, such as:

( i) Soil moisture content.

( ii) Soil pH.

( iii) Soil sulfides level. 172 ( iv) Soil resistivity.

( v) Structure to soil potential.

( vi) Existence of stray electric current.

( vii) Existing corrosion protection measures ( for example, coating, cathodic protection).

( 2) The type and degree of external corrosion protection needed to ensure the integrity of the tank system during the use of the tank system or component, consisting of one or more of the following:

( i) Corrosion resistant materials of construction such as special alloys, fiberglass reinforced plastic, etc.

( ii) Corrosion resistant coating ( such as epoxy, fiberglass, etc.) with cathodic protection ( for example, impressed current or sacrificial anodes) and ( iii) Electrical isolation devices such as insulating joints, flanges, etc.

( d) Design considerations to ensure that:

( 1) Tank foundations will maintain the load of a full tank.

( 2) Tank systems will be anchored to prevent flotation or dislodgment where the tank system is placed in a saturated zone, or is located within a seismic fault zone subject to the standards of Section 267.18( a).

( 3) Tank systems will withstand the effects of frost heave.

Section 267.192 What handling and inspection procedures must I follow during installation of new tank systems?

( a) You must ensure that you follow proper handling procedures to prevent damage to a new tank system during installation. Before placing a new tank system or component in use, an independent, qualified installation inspector or an independent, qualified, registered professional engineer, either of whom is trained and experienced in the proper installation of tank systems or components, must inspect the system for the presence of any of the following items:

( 1) Weld breaks.

( 2) Punctures.

( 3) Scrapes of protective coatings.

( 4) Cracks.

( 5) Corrosion.

( 6) Other structural damage or inadequate construction/ installation. 173 ( b) You must remedy all discrepancies before the tank system is placed in use.

Section 267.193 What testing must I do?

You must test all new tanks and ancillary equipment for tightness before you place them in use.

If you find a tank system that is not tight, you must perform all repairs necessary to remedy the leak( s) in the system before you cover, enclose, or place the tank system into use.

Section 267.194 What installation requirements must I follow?

( a) You must support and protect ancillary equipment against physical damage and excessive stress due to settlement, vibration, expansion, or contraction.

( b) You must provide the type and degree of corrosion protection recommended by an independent corrosion expert, based on the information provided under Section 267.191( c), to ensure the integrity of the tank system during use of the tank system. An independent corrosion expert must supervise the installation of a corrosion protection system that is field fabricated to ensure proper installation.

( c) You must obtain, and keep at the facility, written statements by those persons required to certify the design of the tank system and to supervise the installation of the tank system as required in Sections 267.192, 267.193, and paragraphs ( a) and ( b) of this section. The written statement must attest that the tank system was properly designed and installed and that you made repairs under Sections 267.192 and 267.193. These written statements must also include the certification statement as required in 40 CFR 270.11( d).

Section 267.195 What are the secondary containment requirements?

To prevent the release of hazardous waste or hazardous constituents to the environment, you must provide secondary containment that meets the requirements of this section for all new and existing tank systems.

( a) Secondary containment systems must be:

( 1) Designed, installed, and operated to prevent any migration of wastes or accumulated liquid out of the system to the soil, groundwater, or surface water at any time during the use of the tank system; and 174 ( 2) Capable of detecting and collecting releases and accumulated liquids until the collected material is removed.

( b) To meet the requirements of paragraph ( a) of this section, secondary containment systems must be, at a minimum:

( 1) Constructed of or lined with materials that are compatible with the wastes( s) to be placed in the tank system and must have sufficient strength and thickness to prevent failure owing to pressure gradients ( including static head and external hydrological forces), physical contact with the waste to which it is exposed, climatic conditions, and the stress of daily operation ( including stresses from nearby vehicular traffic).

( 2) Placed on a foundation or base capable of providing support to the secondary containment system, resistance to pressure gradients above and below the system, and capable of preventing failure due to settlement, compression, or uplift.

( 3) Provided with a leak detection system that is designed and operated so that it will detect the failure of either the primary or secondary containment structure or the presence of any release of hazardous waste or accumulated liquid in the secondary containment system within 24 hours.

( 4) Sloped or otherwise designed or operated to drain and remove liquids resulting from leaks,

spills, or precipitation. You must remove spilled or leaked waste and accumulated precipitation from the secondary containment system within 24 hours, or as promptly as possible, to prevent harm to human health and the environment.

Section 267.196 What are the required devices for secondary containment and what are their design, operating and installation requirements?

( a) Secondary containment for tanks must include one or more of the following:

( 1) A liner ( external to the tank).

( 2) A double walled tank.

( 3) An equivalent device; you must maintain documentation of equivalency at the facility.

( b) External liner systems must be:

( 1) Designed or operated to contain 100 percent of the capacity of the largest tank within its boundary.

( 2) Designed or operated to prevent run on or infiltration of precipitation into the secondary containment system unless the collection system has sufficient excess capacity to contain run on or 175 infiltration. The additional capacity must be sufficient to contain precipitation from a 25 year,

24 hour rainfall event.

( 3) Free of cracks or gaps.

( 4) Designed and installed to surround the tank completely and to cover all surrounding earth likely to come into contact with the waste if the waste is released from the tank( s) ( that is, capable of preventing lateral as well as vertical migration of the waste).

( c) Double walled tanks must be:

( 1) Designed as an integral structure ( that is, an inner tank completely enveloped within an outer shell) so that any release from the inner tank is contained by the outer shell.

( 2) Protected, if constructed of metal, from both corrosion of the primary tank interior and of the external surface of the outer shell.

( 3) Provided with a built in continuous leak detection system capable of detecting a release within 24 hours.

Section 267.197 What are the requirements for ancillary equipment?

You must provide ancillary equipment with secondary containment ( for example, trench,

jacketing, double walled piping) that meets the requirements of Section 267.195 ( a) and ( b),

except for:

( a) Above ground piping ( exclusive of flanges, joints, valves, and other connections) that are visually inspected for leaks on a daily basis;

( b) Welded flanges, welded joints, and welded connections, that are visually inspected for leaks on a daily basis;

( c) Sealless or magnetic coupling pumps and sealless valves, that are visually inspected for leaks on a daily basis; and ( d) Pressurized above ground piping systems with automatic shut off devices ( for example,

excess flow check valves, flow metering shutdown devices, loss of pressure actuated shut off devices) that are visually inspected for leaks on a daily basis.

Section 267.198 What are the general operating requirements for my tank systems? 176 ( a) You must not place hazardous wastes or treatment reagents in a tank system if they could cause the tank, its ancillary equipment, or the containment system to rupture, leak, corrode, or otherwise fail.

( b) You must use appropriate controls and practices to prevent spills and overflows from tank or containment systems. These include, at a minimum:

( 1) Spill prevention controls ( for example, check valves, dry disconnect couplings).

( 2) Overfill prevention controls ( for example, level sensing devices, high level alarms, automatic feed cutoff, or bypass to a standby tank).

( 3) Sufficient freeboard in uncovered tanks to prevent overtopping by wave or wind action or by precipitation.

( c) You must comply with the requirements of Section 267.200 if a leak or spill occurs in the tank system.

Section 267.199 What inspection requirements must I meet?

You must comply with the following requirements for scheduling, conducting, and documenting inspections.

( a) Develop and follow a schedule and procedure for inspecting overfill controls.

( b) Inspect at least once each operating day:

( 1) Aboveground portions of the tank system to detect corrosion or releases of waste.

( 2) Data gathered from monitoring and leak detection equipment ( for example, pressure or temperature gauges, monitoring wells) to ensure that the tank system is being operated according to its design.

( 3) The construction materials and the area immediately surrounding the externally accessible portion of the tank system, including the secondary containment system ( for example, dikes) to detect erosion or signs of releases of hazardous waste ( for example, wet spots, dead vegetation).

( c) Inspect cathodic protection systems, if present, according to, at a minimum, the following schedule to ensure that they are functioning properly:

( 1) Confirm that the cathodic protection system is operating properly within six months after initial installation and annually thereafter.

( 2) Inspect and/ or test all sources of impressed current, as appropriate, at least every other month. 177 ( d) Document, in the operating record of the facility, an inspection of those items in paragraphs ( a) through ( c) of this section.

Section 267.200 What must I do in case of a leak or a spill?

If there has been a leak or a spill from a tank system or secondary containment system, or if either system is unfit for use, you must remove the system from service immediately, and you must satisfy the following requirements:

( a) Immediately stop the flow of hazardous waste into the tank system or secondary containment system and inspect the system to determine the cause of the release.

( b) Remove the waste from the tank system or secondary containment system.

( 1) If the release was from the tank system, you must, within 24 hours after detecting the leak,

remove as much of the waste as is necessary to prevent further release of hazardous waste to the environment and to allow inspection and repair of the tank system to be performed.

( 2) If the material released was to a secondary containment system, you must remove all released materials within 24 hours or as quickly as possible to prevent harm to human health and the environment.

( c) Immediately conduct a visual inspection of the release and, based upon that inspection:

( 1) Prevent further migration of the leak or spill to soils or surface water.

( 2) Remove, and properly dispose of, any visible contamination of the soil or surface water.

( d) Report any release to the environment, except as provided in paragraph ( d)( 1) of this section, to the Regional Administrator within 24 hours of its detection. If you have reported the release pursuant to 40 CFR part 302, that report will satisfy this requirement.

( 1) You need not report on a leak or spill of hazardous waste if it is:

( i) Less than or equal to a quantity of one ( 1) pound, and ( ii) Immediately contained and cleaned up.

( 2) Within 30 days of detection of a release to the environment, you must submit a report to the Regional Administrator containing the following information:

( i) The likely route of migration of the release.

( ii) The characteristics of the surrounding soil ( soil composition, geology, hydrogeology,

climate). 178 ( iii) The results of any monitoring or sampling conducted in connection with the release ( if available). If sampling or monitoring data relating to the release are not available within 30 days,

you must submit these data to the Regional Administrator as soon as they become available.

( iv) The proximity to downgradient drinking water, surface water, and populated areas.

( v) A description of response actions taken or planned.

( e) Either close the system or make necessary repairs.

( 1) Unless you satisfy the requirements of paragraphs ( e)( 2) and ( 3) of this section, you must close the tank system according to Section 267.201.

( 2) If the cause of the release was a spill that has not damaged the integrity of the system, you may return the system to service as soon as you remove the released waste and make any necessary repairs.

( 3) If the cause of the release was a leak from the primary tank system into the secondary containment system, you must repair the system before returning the tank system to service.

( f) If you have made extensive repairs to a tank system in accordance with paragraph ( e) of this section ( for example, installation of an internal liner; repair of a ruptured primary containment or secondary containment vessel), you may not return the tank system to service unless the repair is certified by an independent, qualified, registered, professional engineer in accordance with 40 CFR 270.11( d).

( 1) The engineer must certify that the repaired system is capable of handling hazardous wastes without release for the intended life of the system.

( 2) You must submit this certification to the Regional Administrator within seven days after returning the tank system to use.

Section 267.201 What must I do when I stop operating the tank system?

When you close a tank system, you must remove or decontaminate all waste residues,

contaminated containment system components ( liners, etc.), contaminated soils, and structures and equipment contaminated with waste, and manage them as hazardous waste, unless 40 CFR 261.3( d) applies. The closure plan, closure activities, cost estimates for closure, and financial responsibility for tank systems must meet all of the requirements specified in subparts G and H of this part.

Section 267.202 What special requirements must I meet for ignitable or reactive wastes? 179 ( a) You may not place ignitable or reactive waste in tank systems, unless:

( 1) You treat, render, or mix the waste before or immediately after placement in the tank system so that:

( i) You comply with Section 267.17( b), and ( ii) The resulting waste, mixture, or dissolved material no longer meets the definition of ignitable or reactive waste under Sections 261.21 or 261.23 of this chapter, or ( 2) You store or treat the waste in such a way that it is protected from any material or conditions that may cause the waste to ignite or react; or ( 3) You use the tank system solely for emergencies.

( b) If you store or treat ignitable or reactive waste in a tank, you must comply with the requirements for the maintenance of protective distances between the waste management area and any public ways, streets, alleys, or an adjoining property line that can be built upon as required in Tables 2 1 through 2 6 of the National Fire Protection Association's " Flammable and Combustible Liquids Code," ( 1977 or 1981), ( incorporated by reference, see 40 CFR 260.11).

Section 267.203 What special requirements must I meet for incompatible wastes?

( a) You may not place incompatible wastes, or incompatible wastes and materials, in the same tank system, unless you comply with Section 267.17( b).

( b) You may not place hazardous waste in a tank system that has not been decontaminated and that previously held an incompatible waste or material, unless you comply with Section 267.17( b).

Section 267.204 What air emission standards apply?

You must manage all hazardous waste placed in a tank following the requirements of subparts AA, BB, and CC of 40 CFR part 264. Under a standardized permit, the following control devices are permissible: thermal vapor incinerator, catalytic vapor incinerator, flame, boiler, process heater,

condenser, and carbon absorption unit.

Subparts K through CC [ Reserved]

Subpart DD Containment buildings 180 Section 267.1100 Does this subpart apply to me?

This subpart applies to you if you own or operate a facility that treats or stores hazardous waste in containment buildings under a 40 CFR part 270 subpart J standardized permit, except as provided in Section 267.1( b). Storage and/ or treatment in your containment building is not land disposal as defined in 40 CFR 268.2 if your unit meets the requirements of Sections 267.1101,

267.1102, and 267.1103.

Section 267.1101 What design and operating standards must my containment building meet?