Pt.

280

40 CFR Ch. I (7198 Edition)

PART 280TECHNICAL STANDARDS

AND CORRECTIVE ACTION REQUIREMENTS FOR OWNERS AND
OPERATORS OF UNDERGROUND
STORAGE TANKS (UST)
Subpart AProgram Scope and Interim
Prohibition
Sec.
280.10 Applicability.
280.11 Interim prohibition for deferred UST
systems.
280.12 Definitions.

Subpart BUST Systems: Design,

Construction, Installation and Notification

280.64 Free product removal.

280.65 Investigations for soil and groundwater cleanup.
280.66 Corrective action plan.
280.67 Public participation.

Subpart GOut-of-Service UST Systems

and Closure
280.70 Temporary closure.
280.71 Permanent closure and changes-inservice.
280.72 Assessing the site at closure or
change-in-service.
280.73 Applicability to previously closed
UST systems.
280.74 Closure records.

Subpart HFinancial Responsibility

280.20 Performance standards for new UST

systems.
280.21 Upgrading of existing UST systems.
280.22 Notification requirements.

Subpart CGeneral Operating

Requirements
280.30 Spill and overfill control.
280.31 Operation and maintenance of corrosion protection.
280.32 Compatibility.
280.33 Repairs allowed.
280.34 Reporting and recordkeeping.

Subpart DRelease Detection

280.40 General requirements for all UST systems.
280.41 Requirements for petroleum UST systems.
280.42 Requirements for hazardous substance UST systems.
280.43 Methods of release detection for
tanks.
280.44 Methods of release detection for piping.
280.45 Release detection recordkeeping.

Subpart ERelease Reporting,

Investigation, and Confirmation
280.50 Reporting of suspected releases.
280.51 Investigation due to off-site impacts.
280.52 Release investigation and confirmation steps.
280.53 Reporting and cleanup of spills and
overfills.

Subpart FRelease Response and Corrective Action for UST Systems Containing
Petroleum or Hazardous Substances
280.60 General.
280.61 Initial response.
280.62 Initial abatement measures and site
check.
280.63 Initial site characterization.

280.90
Applicability.
280.91
Compliance dates.
280.92
Definition of terms.
280.93
Amount and scope of required financial responsibility.
280.94
Allowable mechanisms and combinations of mechanisms.
280.95
Financial test of self-insurance.
280.96
Guarantee.
280.97
Insurance and risk retention group
coverage.
280.98
Surety bond.
280.99
Letter of credit.
280.100 Use of state-required mechanism.
280.101 State fund or other state assurance.
280.102 Trust fund.
280.103 Standby trust fund.
280.104 Local government bond rating test.
280.105 Local government financial test.
280.106 Local government guarantee.
280.107 Local government fund.
280.108 Substitution of financial assurance
mechanisms by owner or operator.
280.109 Cancellation or nonrenewal by a provider of financial assurance.
280.110 Reporting by owner or operator.
280.111 Recordkeeping.
280.112 Drawing on financial assurance
mechanisms.
280.113 Release from the requirements.
280.114 Bankruptcy or other incapacity of
owner or operator or provider of financial assurance.
280.115 Replenishment of guarantees, letters
of credit, or surety bonds.
280.116 Suspension of enforcement. [Reserved]

Subpart ILender Liability

280.200 Definitions.
280.210 Participation in management.
280.220 Ownership of an underground storage tank or underground storage tank
system or facility or property on which
an underground storage tank or underground storage tank system is located.

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280.12

280.230 Operating an underground storage

tank or underground storage tank system.
APPENDICES TO PART 280
APPENDIX I TO PART 280NOTIFICATION FOR
UNDERGROUND STORAGE TANKS (FORM)
APPENDIX II TO PART 280LIST OF AGENCIES
DESIGNATED TO RECEIVE NOTIFICATIONS
APPENDIX III TO PART 280STATEMENT FOR
SHIPPING TICKETS AND INVOICES
AUTHORITY: 42 U.S.C. 6912, 6991, 6991a, 6991b,
6991c, 6991d, 6991e, 6991f, 6991g, 6991h.
SOURCE: 53 FR 37194, Sept. 23, 1988, unless
otherwise noted.

Subpart AProgram Scope and

Interim Prohibition
280.10 Applicability.
(a) The requirements of this part
apply to all owners and operators of an
UST system as defined in 280.12 except
as otherwise provided in paragraphs
(b), (c), and (d) of this section. Any
UST system listed in paragraph (c) of
this section must meet the requirements of 280.11.
(b) The following UST systems are
excluded from the requirements of this
part:
(1) Any UST system holding hazardous wastes listed or identified under
Subtitle C of the Solid Waste Disposal
Act, or a mixture of such hazardous
waste and other regulated substances.
(2) Any wastewater treatment tank
system that is part of a wastewater
treatment facility regulated under section 402 or 307(b) of the Clean Water
Act.
(3) Equipment or machinery that
contains regulated substances for operational purposes such as hydraulic lift
tanks and electrical equipment tanks.
(4) Any UST system whose capacity
is 110 gallons or less.
(5) Any UST system that contains a
de minimis concentration of regulated
substances.
(6) Any emergency spill or overflow
containment UST system that is expeditiously emptied after use.
(c) Deferrals. Subparts B, C, D, E, and
G do not apply to any of the following
types of UST systems:
(1) Wastewater treatment tank systems;

(2) Any UST systems containing radioactive material that are regulated
under the Atomic Energy Act of 1954
(42 U.S.C. 2011 and following);
(3) Any UST system that is part of an
emergency generator system at nuclear
power generation facilities regulated
by the Nuclear Regulatory Commission
under 10 CFR part 50, appendix A;
(4) Airport hydrant fuel distribution
systems; and
(5) UST systems with field-constructed tanks.
(d) Deferrals. Subpart D does not
apply to any UST system that stores
fuel solely for use by emergency power
generators.
280.11 Interim prohibition for deferred UST systems.
(a) No person may install an UST
system listed in 280.10(c) for the purpose of storing regulated substances
unless the UST system (whether of
single- or double-wall construction):
(1) Will prevent releases due to corrosion or structural failure for the operational life of the UST system;
(2) Is cathodically protected against
corrosion, constructed of noncorrodible
material, steel clad with a noncorrodible material, or designed in a manner
to prevent the release or threatened release of any stored substance; and
(3) Is constructed or lined with material that is compatible with the stored
substance.
(b) Notwithstanding paragraph (a) of
this section, an UST system without
corrosion protection may be installed
at a site that is determined by a corrosion expert not to be corrosive enough
to cause it to have a release due to corrosion during its operating life. Owners
and operators must maintain records
that demonstrate compliance with the
requirements of this paragraph for the
remaining life of the tank.
NOTE: The National Association of Corrosion Engineers Standard RP0285, Control
of External Corrosion on Metallic Buried,
Partially Buried, or Submerged Liquid Storage Systems, may be used as guidance for
complying with paragraph (b) of this section.

280.12 Definitions.
Aboveground release means any release to the surface of the land or to
surface water. This includes, but is not

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40 CFR Ch. I (7198 Edition)

limited to, releases from the aboveground portion of an UST system and
aboveground releases associated with
overfills and transfer operations as the
regulated substance moves to or from
an UST system.
Ancillary equipment means any devices including, but not limited to,
such devices as piping, fittings, flanges,
valves, and pumps used to distribute,
meter, or control the flow of regulated
substances to and from an UST.
Belowground release means any release to the subsurface of the land and
to ground water. This includes, but is
not limited to, releases from the belowground portions of an underground
storage tank system and belowground
releases associated with overfills and
transfer operations as the regulated
substance moves to or from an underground storage tank.
Beneath the surface of the ground
means beneath the ground surface or
otherwise covered with earthen materials.
Cathodic protection is a technique to
prevent corrosion of a metal surface by
making that surface the cathode of an
electrochemical cell. For example, a
tank system can be cathodically protected through the application of either galvanic anodes or impressed current.
Cathodic protection tester means a person who can demonstrate an understanding of the principles and measurements of all common types of cathodic
protection systems as applied to buried
or submerged metal piping and tank
systems. At a minimum, such persons
must have education and experience in
soil resistivity, stray current, structure-to-soil potential, and component
electrical isolation measurements of
buried metal piping and tank systems.
CERCLA means the Comprehensive
Environmental Response, Compensation, and Liability Act of 1980, as
amended.
Compatible means the ability of two
or more substances to maintain their
respective physical and chemical properties upon contact with one another
for the design life of the tank system
under conditions likely to be encountered in the UST.
Connected piping means all underground piping including valves, elbows,

joints, flanges, and flexible connectors

attached to a tank system through
which regulated substances flow. For
the purpose of determining how much
piping is connected to any individual
UST system, the piping that joins two
UST systems should be allocated equally between them.
Consumptive use with respect to heating oil means consumed on the premises.
Corrosion expert means a person who,
by reason of thorough knowledge of the
physical sciences and the principles of
engineering and mathematics acquired
by a professional education and related
practical experience, is qualified to engage in the practice of corrosion control on buried or submerged metal piping systems and metal tanks. Such a
person must be accredited or certified
as being qualified by the National Association of Corrosion Engineers or be
a registered professional engineer who
has certification or licensing that includes education and experience in corrosion control of buried or submerged
metal piping systems and metal tanks.
Dielectric material means a material
that does not conduct direct electrical
current. Dielectric coatings are used to
electrically isolate UST systems from
the surrounding soils. Dielectric bushings are used to electrically isolate
portions of the UST system (e.g., tank
from piping).
Electrical equipment means underground equipment that contains dielectric fluid that is necessary for the operation of equipment such as transformers and buried electrical cable.
Excavation zone means the volume
containing the tank system and backfill material bounded by the ground
surface, walls, and floor of the pit and
trenches into which the UST system is
placed at the time of installation.
Existing tank system means a tank
system used to contain an accumulation of regulated substances or for
which installation has commenced on
or before December 22, 1988. Installation is considered to have commenced
if:
(a) The owner or operator has obtained all federal, state, and local approvals or permits necessary to begin
physical construction of the site or installation of the tank system; and if,

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280.12

(b)(1) Either a continuous on-site

physical construction or installation
program has begun; or,
(2) The owner or operator has entered
into contractual obligationswhich
cannot be cancelled or modified without substantial lossfor physical construction at the site or installation of
the tank system to be completed within a reasonable time.
Farm tank is a tank located on a
tract of land devoted to the production
of crops or raising animals, including
fish, and associated residences and improvements. A farm tank must be located on the farm property. Farm includes fish hatcheries, rangeland and
nurseries with growing operations.
Flow-through process tank is a tank
that forms an integral part of a production process through which there is a
steady, variable, recurring, or intermittent flow of materials during the
operation of the process. Flow-through
process tanks do not include tanks
used for the storage of materials prior
to their introduction into the production process or for the storage of finished products or by-products from the
production process.
Free product refers to a regulated substance that is present as a non-aqueous
phase liquid (e.g., liquid not dissolved
in water.)
Gathering lines means any pipeline,
equipment, facility, or building used in
the transportation of oil or gas during
oil or gas production or gathering operations.
Hazardous substance UST system
means an underground storage tank
system that contains a hazardous substance defined in section 101(14) of the
Comprehensive
Environmental
Response, Compensation and Liability
Act of 1980 (but not including any substance regulated as a hazardous waste
under subtitle C) or any mixture of
such substances and petroleum, and
which is not a petroleum UST system.
Heating oil means petroleum that is
No. 1, No. 2, No. 4light, No. 4heavy,
No. 5light, No. 5heavy, and No. 6
technical grades of fuel oil; other residual fuel oils (including Navy Special
Fuel Oil and Bunker C); and other fuels
when used as substitutes for one of
these fuel oils. Heating oil is typically

used in the operation of heating equipment, boilers, or furnaces.

Hydraulic lift tank means a tank holding hydraulic fluid for a closed-loop
mechanical system that uses compressed air or hydraulic fluid to operate lifts, elevators, and other similar
devices.
Implementing agency means EPA, or,
in the case of a state with a program
approved under section 9004 (or pursuant to a memorandum of agreement
with EPA), the designated state or
local agency responsible for carrying
out an approved UST program.
Liquid trap means sumps, well cellars,
and other traps used in association
with oil and gas production, gathering,
and extraction operations (including
gas production plants), for the purpose
of collecting oil, water, and other liquids. These liquid traps may temporarily collect liquids for subsequent
disposition or reinjection into a production or pipeline stream, or may collect and separate liquids from a gas
stream.
Maintenance means the normal operational upkeep to prevent an underground storage tank system from releasing product.
Motor fuel means petroleum or a petroleum-based substance that is motor
gasoline, aviation gasoline, No. 1 or No.
2 diesel fuel, or any grade of gasohol,
and is typically used in the operation
of a motor engine.
New tank system means a tank system
that will be used to contain an accumulation of regulated substances and
for which installation has commenced
after December 22, 1988. (See also Existing Tank System.)
Noncommercial purposes with respect
to motor fuel means not for resale.
On the premises where stored with respect to heating oil means UST systems located on the same property
where the stored heating oil is used.
Operational life refers to the period
beginning when installation of the
tank system has commenced until the
time the tank system is properly
closed under Subpart G.
Operator means any person in control
of, or having responsibility for, the
daily operation of the UST system.

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40 CFR Ch. I (7198 Edition)

Overfill release is a release that occurs

when a tank is filled beyond its capacity, resulting in a discharge of the regulated substance to the environment.
Owner means:
(a) In the case of an UST system in
use on November 8, 1984, or brought
into use after that date, any person
who owns an UST system used for storage, use, or dispensing of regulated
substances; and
(b) In the case of any UST system in
use before November 8, 1984, but no
longer in use on that date, any person
who owned such UST immediately before the discontinuation of its use.
Person means an individual, trust,
firm, joint stock company, Federal
agency, corporation, state, municipality, commission, political subdivision
of a state, or any interstate body.
Person also includes a consortium, a
joint venture, a commercial entity, and
the United States Government.
Petroleum UST system means an underground storage tank system that
contains petroleum or a mixture of petroleum with de minimis quantities of
other regulated substances. Such systems include those containing motor
fuels, jet fuels, distillate fuel oils, residual fuel oils, lubricants, petroleum
solvents, and used oils.
Pipe or Piping means a hollow cylinder or tubular conduit that is constructed of non-earthen materials.
Pipeline facilities (including gathering
lines) are new and existing pipe rightsof-way and any associated equipment,
facilities, or buildings.
Regulated substance means:
(a) Any substance defined in section
101(14) of the Comprehensive Environmental Response, Compensation and
Liability Act (CERCLA) of 1980 (but
not including any substance regulated
as a hazardous waste under subtitle C),
and
(b) Petroleum, including crude oil or
any fraction thereof that is liquid at
standard conditions of temperature and
pressure (60 degrees Fahrenheit and
14.7 pounds per square inch absolute).
The term regulated substance includes but is not limited to petroleum
and petroleum-based substances comprised of a complex blend of hydrocarbons derived from crude oil though
processes of separation, conversion, up-

grading, and finishing, such as motor

fuels, jet fuels, distillate fuel oils, residual fuel oils, lubricants, petroleum
solvents, and used oils.
Release means any spilling, leaking,
emitting, discharging, escaping, leaching or disposing from an UST into
ground water, surface water or subsurface soils.
Release detection means determining
whether a release of a regulated substance has occurred from the UST system into the environment or into the
interstitial space between the UST system and its secondary barrier or secondary containment around it.
Repair means to restore a tank or
UST system component that has
caused a release of product from the
UST system.
Residential tank is a tank located on
property used primarily for dwelling
purposes.
SARA means the Superfund Amendments and Reauthorization Act of 1986.
Septic tank is a water-tight covered
receptacle designed to receive or process, through liquid separation or biological digestion, the sewage discharged from a building sewer. The effluent from such receptacle is distributed for disposal through the soil and
settled solids and scum from the tank
are pumped out periodically and hauled
to a treatment facility.
Storm-water or wastewater collection
system means piping, pumps, conduits,
and any other equipment necessary to
collect and transport the flow of surface water run-off resulting from precipitation, or domestic, commercial, or
industrial wastewater to and from retention areas or any areas where treatment is designated to occur. The collection of storm water and wastewater
does not include treatment except
where incidental to conveyance.
Surface impoundment is a natural
topographic depression, man-made excavation, or diked area formed primarily of earthen materials (although
it may be lined with man-made materials) that is not an injection well.
Tank is a stationary device designed
to contain an accumulation of regulated substances and constructed of
non-earthen materials (e.g., concrete,
steel, plastic) that provide structural
support.

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280.20

Underground area means an underground room, such as a basement, cellar, shaft or vault, providing enough
space for physical inspection of the exterior of the tank situated on or above
the surface of the floor.
Underground release means any belowground release.
Underground storage tank or UST
means any one or combination of tanks
(including underground pipes connected thereto) that is used to contain
an accumulation of regulated substances, and the volume of which (including the volume of underground
pipes connected thereto) is 10 percent
or more beneath the surface of the
ground. This term does not include
any:
(a) Farm or residential tank of 1,100
gallons or less capacity used for storing motor fuel for noncommercial purposes;
(b) Tank used for storing heating oil
for consumptive use on the premises
where stored;
(c) Septic tank;
(d) Pipeline facility (including gathering lines) regulated under:
(1) The Natural Gas Pipeline Safety
Act of 1968 (49 U.S.C. App. 1671, et seq.),
or
(2) The Hazardous Liquid Pipeline
Safety Act of 1979 (49 U.S.C. App. 2001,
et seq.), or
(3) Which is an intrastate pipeline facility regulated under state laws comparable to the provisions of the law referred to in paragraph (d)(1) or (d)(2) of
this definition;
(e) Surface impoundment, pit, pond,
or lagoon;
(f) Storm-water or wastewater collection system;
(g) Flow-through process tank;
(h) Liquid trap or associated gathering lines directly related to oil or gas
production and gathering operations;
or
(i) Storage tank situated in an underground area (such as a basement, cellar, mineworking, drift, shaft, or tunnel) if the storage tank is situated
upon or above the surface of the floor.
The term underground storage tank
or UST does not include any pipes
connected to any tank which is described in paragraphs (a) through (i) of
this definition.

Upgrade means the addition or retrofit of some systems such as cathodic

protection, lining, or spill and overfill
controls to improve the ability of an
underground storage tank system to
prevent the release of product.
UST system or Tank system means an
underground storage tank, connected
underground piping, underground ancillary equipment, and containment
system, if any.
Wastewater treatment tank means a
tank that is designed to receive and
treat an influent wastewater through
physical, chemical, or biological methods.

Subpart BUST Systems: Design,

Construction, Installation and
Notification
280.20 Performance standards for
new UST systems.
In order to prevent releases due to
structural failure, corrosion, or spills
and overfills for as long as the UST
system is used to store regulated substances, all owners and operators of
new UST systems must meet the following requirements.
(a) Tanks. Each tank must be properly designed and constructed, and any
portion underground that routinely
contains product must be protected
from corrosion, in accordance with a
code of practice developed by a nationally recognized association or independent testing laboratory as specified
below:
(1) The tank is constructed of fiberglass-reinforced plastic; or
NOTE: The following industry codes may be
used to comply with paragraph (a)(1) of this
section: Underwriters Laboratories Standard
1316, Standard for Glass- Fiber-Reinforced
Plastic Underground Storage Tanks for Petroleum Products; Underwriters Laboratories of Canada CAN4S615M83, Standard
for Reinforced Plastic Underground Tanks
for Petroleum Products; or American Society of Testing and Materials Standard D4021
86, Standard Specification for Glass-FiberReinforced Polyester Underground Petroleum Storage Tanks.

(2) The tank is constructed of steel

and cathodically protected in the following manner:
(i) The tank is coated with a suitable
dielectric material;

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40 CFR Ch. I (7198 Edition)

(ii) Field-installed cathodic protection systems are designed by a corrosion expert;

(iii) Impressed current systems are
designed to allow determination of current operating status as required in
280.31(c); and
(iv) Cathodic protection systems are
operated and maintained in accordance
with 280.31 or according to guidelines
established by the implementing agency; or
NOTE: The following codes and standards
may be used to comply with paragraph (a)(2)
of this section:
(A) Steel Tank Institute Specification for
STIP3 System of External Corrosion Protection of Underground Steel Storage
Tanks;
(B) Underwriters Laboratories Standard
1746, Corrosion Protection Systems for Underground Storage Tanks;
(C) Underwriters Laboratories of Canada
CAN4S603M85, Standard for Steel Underground Tanks for Flammable and Combustible Liquids, and CAN4G03.1M85, Standard for Galvanic Corrosion Protection Systems for Underground Tanks for Flammable
and Combustible Liquids, and CAN4S631
M84, Isolating Bushings for Steel Underground Tanks Protected with Coatings and
Galvanic Systems; or
(D) National Association of Corrosion Engineers Standard RP0285, Control of External Corrosion on Metallic Buried, Partially Buried, or Submerged Liquid Storage
Systems, and Underwriters Laboratories
Standard 58, Standard for Steel Underground Tanks for Flammable and Combustible Liquids.

(3) The tank is constructed of a steelfiberglass-reinforced-plastic composite;

or
NOTE: The following industry codes may be
used to comply with paragraph (a)(3) of this
section: Underwriters Laboratories Standard
1746, Corrosion Protection Systems for Underground Storage Tanks, or the Association for Composite Tanks ACT100, Specification for the Fabrication of FRP Clad Underground Storage Tanks.

(4) The tank is constructed of metal

without additional corrosion protection measures provided that:
(i) The tank is installed at a site that
is determined by a corrosion expert not
to be corrosive enough to cause it to
have a release due to corrosion during
its operating life; and
(ii) Owners and operators maintain
records that demonstrate compliance

with the requirements of paragraphs

(a)(4)(i) for the remaining life of the
tank; or
(5) The tank construction and corrosion protection are determined by the
implementing agency to be designed to
prevent the release or threatened release of any stored regulated substance
in a manner that is no less protective
of human health and the environment
than paragraphs (a) (1) through (4) of
this section.
(b) Piping. The piping that routinely
contains regulated substances and is in
contact with the ground must be properly designed, constructed, and protected from corrosion in accordance
with a code of practice developed by a
nationally recognized association or
independent testing laboratory as specified below:
(1) The piping is constructed of fiberglass-reinforced plastic; or
NOTE: The following codes and standards
may be used to comply with paragraph (b)(1)
of this section:
(A) Underwriters Laboratories Subject 971,
UL Listed Non-Metal Pipe;
(B) Underwriters Laboratories Standard
567, Pipe Connectors for Flammable and
Combustible and LP Gas;
(C) Underwriters Laboratories of Canada
Guide ULC107, Glass Fiber Reinforced
Plastic Pipe and Fittings for Flammable
Liquids; and
(D) Underwriters Laboratories of Canada
Standard CAN 4S633M81, Flexible Underground Hose Connectors.

(2) The piping is constructed of steel

and cathodically protected in the following manner:
(i) The piping is coated with a suitable dielectric material;
(ii) Field-installed cathodic protection systems are designed by a corrosion expert;
(iii) Impressed current systems are
designed to allow determination of current operating status as required in
280.31(c); and
(iv) Cathodic protection systems are
operated and maintained in accordance
with 280.31 or guidelines established
by the implementing agency; or
NOTE: The following codes and standards
may be used to comply with paragraph (b)(2)
of this section:
(A) National Fire Protection Association
Standard 30, Flammable and Combustible
Liquids Code;

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280.20

(B) American Petroleum Institute Publication 1615, Installation of Underground Petroleum Storage Systems;
(C) American Petroleum Institute Publication 1632, Cathodic Protection of Underground Petroleum Storage Tanks and Piping
Systems; and
(D) National Association of Corrosion Engineers Standard RP0169, Control of External Corrosion on Submerged Metallic Piping Systems.

(3) The piping is constructed of metal

without additional corrosion protection measures provided that:
(i) The piping is installed at a site
that is determined by a corrosion expert to not be corrosive enough to
cause it to have a release due to corrosion during its operating life; and
(ii) Owners and operators maintain
records that demonstrate compliance
with the requirements of paragraph
(b)(3)(i) of this section for the remaining life of the piping; or
NOTE: National Fire Protection Association Standard 30, Flammable and Combustible Liquids Code; and National Association of Corrosion Engineers Standard RP01
69, Control of External Corrosion on Submerged Metallic Piping Systems, may be
used to comply with paragraph (b)(3) of this
section.

(4) The piping construction and corrosion protection are determined by

the implementing agency to be designed to prevent the release or threatened release of any stored regulated
substance in a manner that is no less
protective of human health and the environment than the requirements in
paragraphs (b) (1) through (3) of this
section.
(c) Spill and overfill prevention equipment. (1) Except as provided in paragraph (c)(2) of this section, to prevent
spilling and overfilling associated with
product transfer to the UST system,
owners and operators must use the following spill and overfill prevention
equipment:
(i) Spill prevention equipment that
will prevent release of product to the
environment when the transfer hose is
detached from the fill pipe (for example, a spill catchment basin); and
(ii) Overfill prevention equipment
that will:
(A) Automatically shut off flow into
the tank when the tank is no more
than 95 percent full; or

(B) Alert the transfer operator when

the tank is no more than 90 percent
full by restricting the flow into the
tank or triggering a high-level alarm;
or
(C) Restrict flow 30 minutes prior to
overfilling, alert the operator with a
high level alarm one minute before
overfilling, or automatically shut off
flow into the tank so that none of the
fittings located on top of the tank are
exposed to product due to overfilling.
(2) Owners and operators are not required to use the spill and overfill prevention equipment specified in paragraph (c)(1) of this section if:
(i) Alternative equipment is used
that is determined by the implementing agency to be no less protective of
human health and the environment
than the equipment specified in paragraph (c)(1) (i) or (ii) of this section; or
(ii) The UST system is filled by
transfers of no more than 25 gallons at
one time.
(d) Installation. All tanks and piping
must be properly installed in accordance with a code of practice developed
by a nationally recognized association
or independent testing laboratory and
in accordance with the manufacturers
instructions.
NOTE: Tank and piping system installation
practices and procedures described in the following codes may be used to comply with the
requirements of paragraph (d) of this section:
(i) American Petroleum Institute Publication 1615, Installation of Underground Petroleum Storage System; or
(ii) Petroleum Equipment Institute Publication RP100, Recommended Practices for
Installation of Underground Liquid Storage
Systems; or
(iii) American National Standards Institute Standard B31.3, Petroleum Refinery
Piping, and American National Standards
Institute Standard B31.4 Liquid Petroleum
Transportation Piping System.

(e) Certification of installation. All

owners and operators must ensure that
one or more of the following methods
of certification, testing, or inspection
is used to demonstrate compliance
with paragraph (d) of this section by
providing a certification of compliance
on the UST notification form in accordance with 280.22.
(1) The installer has been certified by
the tank and piping manufacturers; or

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40 CFR Ch. I (7198 Edition)

(2) The installer has been certified or

licensed by the implementing agency;
or
(3) The installation has been inspected and certified by a registered
professional engineer with education
and experience in UST system installation; or
(4) The installation has been inspected and approved by the implementing agency; or
(5) All work listed in the manufacturers installation checklists has been
completed; or
(6) The owner and operator have complied with another method for ensuring
compliance with paragraph (d) of this
section that is determined by the implementing agency to be no less protective of human health and the environment.
[53 FR 37194, Sept. 23, 1988, as amended at 56
FR 38344, Aug. 13, 1991]

280.21 Upgrading of existing UST

systems.
(a) Alternatives allowed. Not later
than December 22, 1998, all existing
UST systems must comply with one of
the following requirements:
(1) New UST system performance
standards under 280.20;
(2) The upgrading requirements in
paragraphs (b) through (d) of this section; or
(3) Closure requirements under subpart G of this part, including applicable requirements for corrective action
under subpart F.
(b) Tank upgrading requirements. Steel
tanks must be upgraded to meet one of
the following requirements in accordance with a code of practice developed
by a nationally recognized association
or independent testing laboratory:
(1) Interior lining. A tank may be upgraded by internal lining if:
(i) The lining is installed in accordance with the requirements of 280.33,
and
(ii) Within 10 years after lining, and
every 5 years thereafter, the lined tank
is internally inspected and found to be
structurally sound with the lining still
performing in accordance with original
design specifications.
(2) Cathodic protection. A tank may be
upgraded by cathodic protection if the
cathodic protection system meets the

requirements of 280.20(a)(2) (ii), (iii),

and (iv) and the integrity of the tank is
ensured using one of the following
methods:
(i) The tank is internally inspected
and assessed to ensure that the tank is
structurally sound and free of corrosion holes prior to installing the cathodic protection system; or
(ii) The tank has been installed for
less than 10 years and is monitored
monthly for releases in accordance
with 280.43 (d) through (h); or
(iii) The tank has been installed for
less than 10 years and is assessed for
corrosion holes by conducting two (2)
tightness tests that meet the requirements of 280.43(c). The first tightness
test must be conducted prior to installing the cathodic protection system.
The second tightness test must be conducted between three (3) and six (6)
months following the first operation of
the cathodic protection system; or
(iv) The tank is assessed for corrosion holes by a method that is determined by the implementing agency to
prevent releases in a manner that is no
less protective of human health and
the environment than paragraphs (b)(2)
(i) through (iii) of this section.
(3) Internal lining combined with cathodic protection. A tank may be upgraded by both internal lining and cathodic protection if:
(i) The lining is installed in accordance with the requirements of 280.33;
and
(ii) The cathodic protection system
meets the requirements of 280.20(a)(2)
(ii), (iii), and (iv).
NOTE: The following codes and standards
may be used to comply with this section:
(A) American Petroleum Institute Publication 1631, Recommended Practice for the Interior Lining of Existing Steel Underground
Storage Tanks;
(B) National Leak Prevention Association
Standard 631, Spill Prevention, Minimum 10
Year Life Extension of Existing Steel Underground Tanks by Lining Without the Addition of Cathodic Protection;
(C) National Association of Corrosion Engineers Standard RP0285, Control of External Corrosion on Metallic Buried, Partially
Buried, or Submerged Liquid Storage Systems; and
(D) American Petroleum Institute Publication 1632, Cathodic Protection of Underground Petroleum Storage Tanks and Piping
Systems.

454

Environmental Protection Agency

280.22

(c) Piping upgrading requirements.

Metal piping that routinely contains
regulated substances and is in contact
with the ground must be cathodically
protected in accordance with a code of
practice developed by a nationally recognized association or independent
testing laboratory and must meet the
requirements of 280.20(b)(2) (ii), (iii),
and (iv).
NOTE: The codes and standards listed in the
note following 280.20(b)(2) may be used to
comply with this requirement.

(d) Spill and overfill prevention equipment. To prevent spilling and overfilling associated with product transfer to
the UST system, all existing UST systems must comply with new UST system spill and overfill prevention equipment
requirements
specified
in
280.20(c).
280.22 Notification requirements.
(a) Any owner who brings an underground storage tank system into use
after May 8, 1986, must within 30 days
of bringing such tank into use, submit,
in the form prescribed in appendix I of
this part, a notice of existence of such
tank system to the state or local agency or department designated in appendix II of this part to receive such notice.
NOTE: Owners and operators of UST systems that were in the ground on or after May
8, 1986, unless taken out of operation on or
before January 1, 1974, were required to notify the designated state or local agency in
accordance with the Hazardous and Solid
Waste Amendments of 1984, Pub. L. 98616, on
a form published by EPA on November 8, 1985
(50 FR 46602) unless notice was given pursuant to section 103(c) of CERCLA. Owners and
operators who have not complied with the
notification requirements may use portions I
through VI of the notification form contained in appendix I of this part.

(b) In states where state law, regulations, or procedures require owners to

use forms that differ from those set
forth in appendix I of this part to fulfill
the requirements of this section, the
state forms may be submitted in lieu of
the forms set forth in Appendix I of
this part. If a state requires that its
form be used in lieu of the form presented in this regulation, such form

must meet the requirements of section

9002.
(c) Owners required to submit notices
under paragraph (a) of this section
must provide notices to the appropriate agencies or departments identified in appendix II of this part for each
tank they own. Owners may provide
notice for several tanks using one notification form, but owners who own
tanks located at more than one place
of operation must file a separate notification form for each separate place of
operation.
(d) Notices required to be submitted
under paragraph (a) of this section
must provide all of the information in
sections I through VI of the prescribed
form (or appropriate state form) for
each tank for which notice must be
given. Notices for tanks installed after
December 22, 1988 must also provide all
of the information in section VII of the
prescribed form (or appropriate state
form) for each tank for which notice
must be given.
(e) All owners and operators of new
UST systems must certify in the notification form compliance with the following requirements:
(1) Installation of tanks and piping
under 280.20(e);
(2) Cathodic protection of steel tanks
and piping under 280.20 (a) and (b);
(3) Financial responsibility under
subpart H of this part; and
(4) Release detection under 280.41
and 280.42.
(f) All owners and operators of new
UST systems must ensure that the installer certifies in the notification
form that the methods used to install
the tanks and piping complies with the
requirements in 280.20(d).
(g) Beginning October 24, 1988, any
person who sells a tank intended to be
used as an underground storage tank
must notify the purchaser of such tank
of the owners notification obligations
under paragraph (a) of this section. The
form provided in appendix III of this
part may be used to comply with this
requirement.

455

 280.30

40 CFR Ch. I (7198 Edition)

Subpart CGeneral Operating

Requirements
280.30 Spill and overfill control.
(a) Owners and operators must ensure
that releases due to spilling or overfilling do not occur. The owner and operator must ensure that the volume available in the tank is greater than the
volume of product to be transferred to
the tank before the transfer is made
and that the transfer operation is monitored constantly to prevent overfilling
and spilling.
NOTE: The transfer procedures described in
National Fire Protection Association Publication 385 may be used to comply with paragraph (a) of this section. Further guidance
on spill and overfill prevention appears in
American Petroleum Institute Publication
1621, Recommended Practice for Bulk Liquid Stock Control at Retail Outlets, and
National Fire Protection Association Standard 30, Flammable and Combustible Liquids
Code.

(b) The owner and operator must report, investigate, and clean up any
spills and overfills in accordance with
280.53.
280.31 Operation and maintenance of
corrosion protection.
All owners and operators of steel
UST systems with corrosion protection
must comply with the following requirements to ensure that releases due
to corrosion are prevented for as long
as the UST system is used to store regulated substances:
(a) All corrosion protection systems
must be operated and maintained to
continuously provide corrosion protection to the metal components of that
portion of the tank and piping that
routinely contain regulated substances
and are in contact with the ground.
(b) All UST systems equipped with
cathodic protection systems must be
inspected for proper operation by a
qualified cathodic protection tester in
accordance with the following requirements:
(1) Frequency. All cathodic protection
systems must be tested within 6
months of installation and at least
every 3 years thereafter or according to
another reasonable time frame established by the implementing agency;
and

(2) Inspection criteria. The criteria

that are used to determine that cathodic protection is adequate as required by this section must be in accordance with a code of practice developed by a nationally recognized association.
NOTE: National Association of Corrosion
Engineers Standard RP0285, Control of
External Corrosion on Metallic Buried, Partially Buried, or Submerged Liquid Storage
Systems, may be used to comply with paragraph (b)(2) of this section.

(c) UST systems with impressed current cathodic protection systems must
also be inspected every 60 days to ensure the equipment is running properly.
(d) For UST systems using cathodic
protection, records of the operation of
the cathodic protection must be maintained (in accordance with 280.34) to
demonstrate compliance with the performance standards in this section.
These records must provide the following:
(1) The results of the last three inspections required in paragraph (c) of
this section; and
(2) The results of testing from the
last two inspections required in paragraph (b) of this section.
280.32

Compatibility.

Owners and operators must use an

UST system made of or lined with materials that are compatible with the
substance stored in the UST system.
NOTE: Owners and operators storing alcohol blends may use the following codes to
comply with the requirements of this section:
(a) American Petroleum Institute Publication 1626, Storing and Handling Ethanol and
Gasoline-Ethanol Blends at Distribution Terminals and Service Stations; and
(b) American Petroleum Institute Publication 1627, Storage and Handling of GasolineMethanol/Cosolvent Blends at Distribution
Terminals and Service Stations.

280.33

Repairs allowed.

Owners and operators of UST systems must ensure that repairs will prevent releases due to structural failure
or corrosion as long as the UST system
is used to store regulated substances.
The repairs must meet the following
requirements:

456

Environmental Protection Agency

280.34

(a) Repairs to UST systems must be

properly conducted in accordance with
a code of practice developed by a nationally recognized association or an
independent testing laboratory.
NOTE: The following codes and standards
may be used to comply with paragraph (a) of
this section: National Fire Protection Association Standard 30, Flammable and Combustible Liquids Code; American Petroleum
Institute Publication 2200, Repairing Crude
Oil, Liquified Petroleum Gas, and Product
Pipelines; American Petroleum Institute
Publication 1631, Recommended Practice
for the Interior Lining of Existing Steel Underground Storage Tanks; and National
Leak Prevention Association Standard 631,
Spill Prevention, Minimum 10 Year Life Extension of Existing Steel Underground Tanks
by Lining Without the Addition of Cathodic
Protection.

(b) Repairs to fiberglass-reinforced

plastic tanks may be made by the manufacturers authorized representatives
or in accordance with a code of practice developed by a nationally recognized association or an independent
testing laboratory.
(c) Metal pipe sections and fittings
that have released product as a result
of corrosion or other damage must be
replaced. Fiberglass pipes and fittings
may be repaired in accordance with the
manufacturers specifications.
(d) Repaired tanks and piping must
be tightness tested in accordance with
280.43(c) and 280.44(b) within 30 days
following the date of the completion of
the repair except as provided in paragraphs (d) (1) through (3), of this section:
(1) The repaired tank is internally inspected in accordance with a code of
practice developed by a nationally recognized association or an independent
testing laboratory; or
(2) The repaired portion of the UST
system is monitored monthly for releases in accordance with a method
specified in 280.43 (d) through (h); or
(3) Another test method is used that
is determined by the implementing
agency to be no less protective of
human health and the environment
than those listed above.
(e) Within 6 months following the repair of any cathodically protected UST
system, the cathodic protection system
must be tested in accordance with

280.31 (b) and (c) to ensure that it is

operating properly.
(f) UST system owners and operators
must maintain records of each repair
for the remaining operating life of the
UST system that demonstrate compliance with the requirements of this section.
280.34

Reporting and recordkeeping.

Owners and operators of UST systems must cooperate fully with inspections, monitoring and testing conducted by the implementing agency, as
well as requests for document submission, testing, and monitoring by the
owner or operator pursuant to section
9005 of Subtitle I of the Resource Conservation and Recovery Act, as amended.
(a) Reporting. Owners and operators
must submit the following information
to the implementing agency:
(1) Notification for all UST systems
( 280.22), which includes certification
of installation for new UST systems
( 280.20(e)),
(2) Reports of all releases including
suspected releases ( 280.50), spills and
overfills ( 280.53), and confirmed releases ( 280.61);
(3) Corrective actions planned or
taken including initial abatement
measures ( 280.62), initial site characterization ( 280.63), free product removal ( 280.64), investigation of soil
and ground-water cleanup ( 280.65), and
corrective action plan ( 280.66); and
(4) A notification before permanent
closure or change-in-service ( 280.71).
(b) Recordkeeping. Owners and operators must maintain the following information:
(1) A corrosion experts analysis of
site corrosion potential if corrosion
protection equipment is not used
( 280.20(a)(4); 280.20(b)(3)).
(2) Documentation of operation of
corrosion
protection
equipment
( 280.31);
(3) Documentation of UST system repairs ( 280.33(f));
(4) Recent compliance with release
detection requirements ( 280.45); and
(5) Results of the site investigation
conducted
at
permanent
closure
( 280.74).

457

 280.40

40 CFR Ch. I (7198 Edition)

(c) Availability and Maintenance of

Records. Owners and operators must
keep the records required either:
(1) At the UST site and immediately
available for inspection by the implementing agency; or
(2) At a readily available alternative
site and be provided for inspection to
the implementing agency upon request.
(3) In the case of permanent closure
records required under 280.74, owners
and operators are also provided with
the additional alternative of mailing
closure records to the implementing
agency if they cannot be kept at the
site or an alternative site as indicated
above.

Subpart DRelease Detection

280.40 General requirements for all
UST systems.
(a) Owners and operators of new and
existing UST systems must provide a
method, or combination of methods, of
release detection that:
(1) Can detect a release from any portion of the tank and the connected underground piping that routinely contains product;
(2) Is installed, calibrated, operated,
and maintained in accordance with the
manufacturers instructions, including
routine
maintenance
and
service
checks for operability or running condition; and
(3) Meets the performance requirements in 280.43 or 280.44, with any performance claims and their manner of
determination described in writing by
the equipment manufacturer or installer. In addition, methods used after
the date shown in the following table
corresponding with the specified method except for methods permanently installed prior to that date, must be capable of detecting the leak rate or
quantity specified for that method in
the corresponding section of the rule
(also shown in the table) with a probability of detection (Pd) of 0.95 and a
probability of false alarm (Pfa) of 0.05.
Method
Manual Tank
Gauging.
Tank Tightness
Testing.

Section

Date after which Pd/Pfa

must be demonstrated

280.43(b)

December 22, 1990.

280.43(c)

December 22, 1990.

Method

Section

Automatic Tank
Gauging.
Automatic Line
Leak Detectors.
Line Tightness
Testing.

Date after which Pd/Pfa

must be demonstrated

280.43(d)

December 22, 1990.

280.44(a)

September 22, 1991.

280.44(b)

December 22, 1990.

(b) When a release detection method

operated in accordance with the performance standards in 280.43 and
280.44 indicates a release may have occurred, owners and operators must notify the implementing agency in accordance with subpart E.
(c) Owners and operators of all UST
systems must comply with the release
detection requirements of this subpart
by December 22 of the year listed in the
following table:
SCHEDULE FOR PHASE-IN OF RELEASE
DETECTION
Year system
was installed

Year when release detection is required (by

December 22 of the year indicated)
1989

Before 1965
or date unknown.
196569 ......
197074 ......
197579 ......
198088 ......

RD

1990

1991

1992

1993

P/RD
P
P
P

RD
RD
RD

New tanks (after December 22) immediately upon installation.

P=Must begin release detection for all pressurized piping as
defined in 280.41(b)(1).
RD=Must begin release detection for tanks and suction piping in accordance with 280.41(a), 280.41(b)(2), and
280.42.

(d) Any existing UST system that

cannot apply a method of release detection that complies with the requirements of this subpart must complete
the closure procedures in subpart G by
the date on which release detection is
required for that UST system under
paragraph (c) of this section.
[53 FR 37194, Sept. 23, 1988, as amended at 55
FR 17753, Apr. 27, 1990; 55 FR 23738, June 12,
1990; 56 FR 26, Jan. 2, 1991]

280.41 Requirements for petroleum

UST systems.
Owners and operators of petroleum
UST systems must provide release detection for tanks and piping as follows:
(a) Tanks. Tanks must be monitored
at least every 30 days for releases using

458

Environmental Protection Agency

280.42

one of the methods listed in 280.43 (d)

through (h) except that:
(1) UST systems that meet the performance standards in 280.20 or
280.21, and the monthly inventory
control requirements in 280.43 (a) or
(b), may use tank tightness testing
(conducted
in
accordance
with
280.43(c)) at least every 5 years until
December 22, 1998, or until 10 years
after the tank is installed or upgraded
under 280.21(b), whichever is later;
(2) UST systems that do not meet the
performance standards in 280.20 or
280.21 may use monthly inventory
controls (conducted in accordance with
280.43(a) or (b)) and annual tank tightness testing (conducted in accordance
with 280.43(c)) until December 22, 1998
when the tank must be upgraded under
280.21 or permanently closed under
280.71; and
(3) Tanks with capacity of 550 gallons
or less may use weekly tank gauging
(conducted
in
accordance
with
280.43(b)).
(b) Piping. Underground piping that
routinely contains regulated substances must be monitored for releases
in a manner that meets one of the following requirements:
(1) Pressurized piping. Underground
piping that conveys regulated substances under pressure must:
(i) Be equipped with an automatic
line leak detector conducted in accordance with 280.44(a); and
(ii) Have an annual line tightness
test conducted in accordance with
280.44(b) or have monthly monitoring
conducted
in
accordance
with
280.44(c).
(2) Suction piping. Underground piping
that conveys regulated substances
under suction must either have a line
tightness test conducted at least every
3 years and in accordance with
280.44(b), or use a monthly monitoring
method conduct in accordance with
280.44(c). No release detection is required for suction piping that is designed and constructed to meet the following standards:
(i) The below-grade piping operates
at less than atmospheric pressure;
(ii) The below-grade piping is sloped
so that the contents of the pipe will
drain back into the storage tank if the
suction is released;

(iii) Only one check valve is included

in each suction line;
(iv) The check valve is located directly below and as close as practical
to the suction pump; and
(v) A method is provided that allows
compliance with paragraphs (b)(2) (ii)
(iv) of this section to be readily determined.
280.42 Requirements for hazardous
substance UST systems.
Owners and operators of hazardous
substance UST systems must provide
release detection that meets the following requirements:
(a) Release detection at existing UST
systems must meet the requirements
for petroleum UST systems in 280.41.
By December 22, 1998, all existing hazardous substance UST systems must
meet the release detection requirements for new systems in paragraph (b)
of this section.
(b) Release detection at new hazardous substance UST systems must meet
the following requirements:
(1) Secondary containment systems
must be designed, constructed and installed to:
(i) Contain regulated substances released from the tank system until they
are detected and removed;
(ii) Prevent the release of regulated
substances to the environment at any
time during the operational life of the
UST system; and
(iii) Be checked for evidence of a release at least every 30 days.
NOTE. The provisions of 40 CFR 265.193,
Containment and Detection of Releases, may
be used to comply with these requirements.

(2) Double-walled tanks must be designed, constructed, and installed to:

(i) Contain a release from any portion of the inner tank within the outer
wall; and
(ii) Detect the failure of the inner
wall.
(3) External liners (including vaults)
must be designed, constructed, and installed to:
(i) Contain 100 percent of the capacity of the largest tank within its
boundary;
(ii) Prevent the interference of precipitation or ground-water intrusion
with the ability to contain or detect a
release of regulated substances; and

459

 280.43

40 CFR Ch. I (7198 Edition)

(iii) Surround the tank completely

(i.e., it is capable of preventing lateral
as well as vertical migration of regulated substances).
(4) Underground piping must be
equipped with secondary containment
that satisfies the requirements of paragraph (b)(1) of this section (e.g., trench
liners, jacketing of double-walled pipe).
In addition, underground piping that
conveys regulated substances under
pressure must be equipped with an
automatic line leak detector in accordance with 280.44(a).
(5) Other methods of release detection may be used if owners and operators:
(i) Demonstrate to the implementing
agency that an alternate method can
detect a release of the stored substance
as effectively as any of the methods allowed in 280.43(b) through (h) can detect a release of petroleum;
(ii) Provide information to the implementing agency on effective corrective
action technologies, health risks, and
chemical and physical properties of the
stored substance, and the characteristics of the UST site; and,
(iii) Obtain approval from the implementing agency to use the alternate
release detection method before the installation and operation of the new
UST system.
280.43 Methods of release detection
for tanks.
Each method of release detection for
tanks used to meet the requirements of
280.41 must be conducted in accordance with the following:
(a) Inventory control. Product inventory control (or another test of equivalent performance) must be conducted
monthly to detect a release of at least
1.0 percent of flow-through plus 130 gallons on a monthly basis in the following manner:
(1) Inventory volume measurements
for regulated substance inputs, withdrawals, and the amount still remaining in the tank are recorded each operating day;
(2) The equipment used is capable of
measuring the level of product over the
full range of the tanks height to the
nearest one-eighth of an inch;
(3) The regulated substance inputs
are reconciled with delivery receipts by

measurement of the tank inventory

volume before and after delivery;
(4) Deliveries are made through a
drop tube that extends to within one
foot of the tank bottom;
(5) Product dispensing is metered and
recorded within the local standards for
meter calibration or an accuracy of 6
cubic inches for every 5 gallons of product withdrawn; and
(6) The measurement of any water
level in the bottom of the tank is made
to the nearest one-eighth of an inch at
least once a month.
NOTE: Practices described in the American
Petroleum Institute Publication 1621, Recommended Practice for Bulk Liquid Stock
Control at Retail Outlets, may be used,
where applicable, as guidance in meeting the
requirements of this paragraph.

(b) Manual tank gauging. Manual

tank gauging must meet the following
requirements:
(1) Tank liquid level measurements
are taken at the beginning and ending
of a period of at least 36 hours during
which no liquid is added to or removed
from the tank;
(2) Level measurements are based on
an average of two consecutive stick
readings at both the beginning and
ending of the period;
(3) The equipment used is capable of
measuring the level of product over the
full range of the tanks height to the
nearest one-eighth of an inch;
(4) A leak is suspected and subject to
the requirements of subpart E if the
variation between beginning and ending measurements exceeds the weekly
or monthly standards in the following
table:
Nominal
tank capacity
550 gallons
or less.
5511,000
gallons.
1,001
2,000
gallons.

Weekly standard (one

test)

Monthly standard (average of four tests)

10 gallons ..................

5 gallons.

13 gallons ..................

7 gallons.

26 gallons ..................

13 gallons.

(5) Only tanks of 550 gallons or less

nominal capacity may use this as the
sole method of release detection.
Tanks of 551 to 2,000 gallons may use
the method in place of manual inventory control in 280.43(a). Tanks of

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Environmental Protection Agency

280.43

greater than 2,000 gallons nominal capacity may not use this method to
meet the requirements of this subpart.
(c) Tank tightness testing. Tank tightness testing (or another test of equivalent performance) must be capable of
detecting a 0.1 gallon per hour leak
rate from any portion of the tank that
routinely contains product while accounting for the effects of thermal expansion or contraction of the product,
vapor pockets, tank deformation, evaporation or condensation, and the location of the water table.
(d) Automatic tank gauging. Equipment for automatic tank gauging that
tests for the loss of product and conducts inventory control must meet the
following requirements:
(1) The automatic product level monitor test can detect a 0.2 gallon per
hour leak rate from any portion of the
tank that routinely contains product;
and
(2) Inventory control (or another test
of equivalent performance) is conducted in accordance with the requirements of 280.43(a).
(e) Vapor monitoring. Testing or monitoring for vapors within the soil gas of
the excavation zone must meet the following requirements:
(1) The materials used as backfill are
sufficiently porous (e.g., gravel, sand,
crushed rock) to readily allow diffusion
of vapors from releases into the excavation area;
(2) The stored regulated substance, or
a tracer compound placed in the tank
system, is sufficiently volatile (e.g.,
gasoline) to result in a vapor level that
is detectable by the monitoring devices
located in the excavation zone in the
event of a release from the tank;
(3) The measurement of vapors by the
monitoring device is not rendered inoperative by the ground water, rainfall,
or soil moisture or other known interferences so that a release could go undetected for more than 30 days;
(4) The level of background contamination in the excavation zone will not
interfere with the method used to detect releases from the tank;
(5) The vapor monitors are designed
and operated to detect any significant
increase in concentration above background of the regulated substance
stored in the tank system, a compo-

nent or components of that substance,

or a tracer compound placed in the
tank system;
(6) In the UST excavation zone, the
site is assessed to ensure compliance
with the requirements in paragraphs
(e) (1) through (4) of this section and to
establish the number and positioning
of monitoring wells that will detect releases within the excavation zone from
any portion of the tank that routinely
contains product; and
(7) Monitoring wells are clearly
marked and secured to avoid unauthorized access and tampering.
(f) Ground-water monitoring. Testing
or monitoring for liquids on the ground
water must meet the following requirements:
(1) The regulated substance stored is
immiscible in water and has a specific
gravity of less than one;
(2) Ground water is never more than
20 feet from the ground surface and the
hydraulic conductivity of the soil(s)
between the UST system and the monitoring wells or devices is not less than
0.01 cm/sec (e.g., the soil should consist
of gravels, coarse to medium sands,
coarse silts or other permeable materials);
(3) The slotted portion of the monitoring well casing must be designed to
prevent migration of natural soils or
filter pack into the well and to allow
entry of regulated substance on the
water table into the well under both
high and low ground-water conditions;
(4) Monitoring wells shall be sealed
from the ground surface to the top of
the filter pack;
(5) Monitoring wells or devices intercept the excavation zone or are as close
to it as is technically feasible;
(6) The continuous monitoring devices or manual methods used can detect the presence of at least one-eighth
of an inch of free product on top of the
ground water in the monitoring wells;
(7) Within and immediately below the
UST system excavation zone, the site
is assessed to ensure compliance with
the requirements in paragraphs (f) (1)
through (5) of this section and to establish the number and positioning of
monitoring wells or devices that will
detect releases from any portion of the
tank that routinely contains product;
and

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40 CFR Ch. I (7198 Edition)

(8) Monitoring wells are clearly

marked and secured to avoid unauthorized access and tampering.
(g) Interstitial monitoring. Interstitial
monitoring between the UST system
and a secondary barrier immediately
around or beneath it may be used, but
only if the system is designed, constructed and installed to detect a leak
from any portion of the tank that routinely contains product and also meets
one of the following requirements:
(1) For double-walled UST systems,
the sampling or testing method can detect a release through the inner wall in
any portion of the tank that routinely
contains product;
NOTE: The provisions outlined in the Steel
Tank Institutes Standard for Dual Wall
Underground Storage Tanks may be used as
guidance for aspects of the design and construction of underground steel double-walled
tanks.

(2) For UST systems with a secondary barrier within the excavation zone,
the sampling or testing method used
can detect a release between the UST
system and the secondary barrier;
(i) The secondary barrier around or
beneath the UST system consists of artificially constructed material that is
sufficiently thick and impermeable (at
least 106 cm/sec for the regulated substance stored) to direct a release to the
monitoring point and permit its detection;
(ii) The barrier is compatible with
the regulated substance stored so that
a release from the UST system will not
cause a deterioration of the barrier allowing a release to pass through undetected;
(iii) For cathodically protected
tanks, the secondary barrier must be
installed so that it does not interfere
with the proper operation of the cathodic protection system;
(iv) The ground water, soil moisture,
or rainfall will not render the testing
or sampling method used inoperative
so that a release could go undetected
for more than 30 days;
(v) The site is assessed to ensure that
the secondary barrier is always above
the ground water and not in a 25-year
flood plain, unless the barrier and monitoring designs are for use under such
conditions; and,

(vi) Monitoring wells are clearly

marked and secured to avoid unauthorized access and tampering.
(3) For tanks with an internally
fitted liner, an automated device can
detect a release between the inner wall
of the tank and the liner, and the liner
is compatible with the substance
stored.
(h) Other methods. Any other type of
release detection method, or combination of methods, can be used if:
(1) It can detect a 0.2 gallon per hour
leak rate or a release of 150 gallons
within a month with a probability of
detection of 0.95 and a probability of
false alarm of 0.05; or
(2) The implementing agency may approve another method if the owner and
operator can demonstrate that the
method can detect a release as effectively as any of the methods allowed in
paragraphs (c) through (h) of this section. In comparing methods, the implementing agency shall consider the size
of release that the method can detect
and the frequency and reliability with
which it can be detected. If the method
is approved, the owner and operator
must comply with any conditions imposed by the implementing agency on
its use to ensure the protection of
human health and the environment.
280.44 Methods of release detection
for piping.
Each method of release detection for
piping used to meet the requirements
of 280.41 must be conducted in accordance with the following:
(a) Automatic line leak detectors. Methods which alert the operator to the
presence of a leak by restricting or
shutting off the flow of regulated substances through piping or triggering an
audible or visual alarm may be used
only if they detect leaks of 3 gallons
per hour at 10 pounds per square inch
line pressure within 1 hour. An annual
test of the operation of the leak detector must be conducted in accordance
with the manufacturers requirements.
(b) Line tightness testing. A periodic
test of piping may be conducted only if
it can detect a 0.1 gallon per hour leak
rate at one and one-half times the operating pressure.
(c) Applicable tank methods. Any of
the methods in 280.43 (e) through (h)

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Environmental Protection Agency

280.52

may be used if they are designed to detect a release from any portion of the
underground piping that routinely contains regulated substances.
280.45 Release
keeping.

detection

record-

All UST system owners and operators

must maintain records in accordance
with 280.34 demonstrating compliance
with all applicable requirements of this
subpart. These records must include
the following:
(a) All written performance claims
pertaining to any release detection system used, and the manner in which
these claims have been justified or
tested by the equipment manufacturer
or installer, must be maintained for 5
years, or for another reasonable period
of time determined by the implementing agency, from the date of installation;
(b) The results of any sampling, testing, or monitoring must be maintained
for at least 1 year, or for another reasonable period of time determined by
the implementing agency, except that
the results of tank tightness testing
conducted in accordance with 280.43(c)
must be retained until the next test is
conducted; and
(c) Written documentation of all calibration, maintenance, and repair of release detection equipment permanently
located on-site must be maintained for
at least one year after the servicing
work is completed, or for another reasonable time period determined by the
implementing agency. Any schedules of
required calibration and maintenance
provided by the release detection
equipment manufacturer must be retained for 5 years from the date of installation.

Subpart ERelease Reporting,

Investigation, and Confirmation
280.50 Reporting
leases.

of

suspected

re-

Owners and operators of UST systems must report to the implementing

agency within 24 hours, or another reasonable time period specified by the
implementing agency, and follow the
procedures in 280.52 for any of the following conditions:

(a) The discovery by owners and operators or others of released regulated

substances at the UST site or in the
surrounding area (such as the presence
of free product or vapors in soils, basements, sewer and utility lines, and
nearby surface water).
(b) Unusual operating conditions observed by owners and operators (such
as the erratic behavior of product dispensing equipment, the sudden loss of
product from the UST system, or an
unexplained presence of water in the
tank), unless system equipment is
found to be defective but not leaking,
and is immediately repaired or replaced; and,
(c) Monitoring results from a release
detection
method
required
under
280.41 and 280.42 that indicate a release may have occurred unless:
(1) The monitoring device is found to
be defective, and is immediately repaired, recalibrated or replaced, and
additional monitoring does not confirm
the initial result; or
(2) In the case of inventory control, a
second month of data does not confirm
the initial result.
280.51 Investigation due to off-site
impacts.
When required by the implementing
agency, owners and operators of UST
systems must follow the procedures in
280.52 to determine if the UST system
is the source of off-site impacts. These
impacts include the discovery of regulated substances (such as the presence
of free product or vapors in soils, basements, sewer and utility lines, and
nearby surface and drinking waters)
that has been observed by the implementing agency or brought to its attention by another party.
280.52 Release investigation and confirmation steps.
Unless corrective action is initiated
in accordance with subpart F, owners
and operators must immediately investigate and confirm all suspected releases of regulated substances requiring reporting under 280.50 within 7
days, or another reasonable time period specified by the implementing
agency, using either the following
steps or another procedure approved by
the implementing agency:

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40 CFR Ch. I (7198 Edition)

(a) System test. Owners and operators

must conduct tests (according to the
requirements for tightness testing in
280.43(c) and 280.44(b)) that determine
whether a leak exists in that portion of
the tank that routinely contains product, or the attached delivery piping, or
both.
(1) Owners and operators must repair,
replace or upgrade the UST system,
and begin corrective action in accordance with subpart F if the test results
for the system, tank, or delivery piping
indicate that a leak exists.
(2) Further investigation is not required if the test results for the system, tank, and delivery piping do not
indicate that a leak exists and if environmental contamination is not the
basis for suspecting a release.
(3) Owners and operators must conduct a site check as described in paragraph (b) of this section if the test results for the system, tank, and delivery
piping do not indicate that a leak exists but environmental contamination
is the basis for suspecting a release.
(b) Site check. Owners and operators
must measure for the presence of a release where contamination is most
likely to be present at the UST site. In
selecting sample types, sample locations, and measurement methods, owners and operators must consider the nature of the stored substance, the type
of initial alarm or cause for suspicion,
the type of backfill, the depth of
ground water, and other factors appropriate for identifying the presence and
source of the release.
(1) If the test results for the excavation zone or the UST site indicate
that a release has occurred, owners and
operators must begin corrective action
in accordance with subpart F;
(2) If the test results for the excavation zone or the UST site do not indicate that a release has occurred, further investigation is not required.
280.53 Reporting and cleanup of
spills and overfills.
(a) Owners and operators of UST systems must contain and immediately
clean up a spill or overfill and report to
the implementing agency within 24
hours, or another reasonable time period specified by the implementing
agency, and begin corrective action in

accordance with subpart F in the following cases:

(1) Spill or overfill of petroleum that
results in a release to the environment
that exceeds 25 gallons or another reasonable amount specified by the implementing agency, or that causes a sheen
on nearby surface water; and
(2) Spill or overfill of a hazardous
substance that results in a release to
the environment that equals or exceeds
its reportable quantity under CERCLA
(40 CFR part 302).
(b) Owners and operators of UST systems must contain and immediately
clean up a spill or overfill of petroleum
that is less than 25 gallons or another
reasonable amount specified by the implementing agency, and a spill or overfill of a hazardous substance that is
less than the reportable quantity. If
cleanup cannot be accomplished within
24 hours, or another reasonable time
period established by the implementing
agency, owners and operators must immediately notify the implementing
agency.
NOTE: Pursuant to 302.6 and 355.40, a release of a hazardous substance equal to or in
excess of its reportable quantity must also
be reported immediately (rather than within
24 hours) to the National Response Center
under sections 102 and 103 of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 and to appropriate state and local authorities under Title
III of the Superfund Amendments and Reauthorization Act of 1986.

Subpart FRelease Response and

Corrective Action for UST Systems Containing Petroleum or
Hazardous Substances
280.60

General.

Owners and operators of petroleum or

hazardous substance UST systems
must, in response to a confirmed release from the UST system, comply
with the requirements of this subpart
except for USTs excluded under
280.10(b) and UST systems subject to
RCRA Subtitle C corrective action requirements under section 3004(u) of the
Resource Conservation and Recovery
Act, as amended.

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280.63

280.61 Initial response.

Upon confirmation of a release in accordance with 280.52 or after a release
from the UST system is identified in
any other manner, owners and operators must perform the following initial
response actions within 24 hours of a
release or within another reasonable
period of time determined by the implementing agency:
(a) Report the release to the implementing agency (e.g., by telephone or
electronic mail);
(b) Take immediate action to prevent
any further release of the regulated
substance into the environment; and
(c) Identify and mitigate fire, explosion, and vapor hazards.
280.62 Initial abatement measures
and site check.
(a) Unless directed to do otherwise by
the implementing agency, owners and
operators must perform the following
abatement measures:
(1) Remove as much of the regulated
substance from the UST system as is
necessary to prevent further release to
the environment;
(2) Visually inspect any aboveground
releases or exposed belowground releases and prevent further migration of
the released substance into surrounding soils and ground water;
(3) Continue to monitor and mitigate
any additional fire and safety hazards
posed by vapors or free product that
have migrated from the UST excavation zone and entered into subsurface structures (such as sewers or
basements);
(4) Remedy hazards posed by contaminated soils that are excavated or
exposed as a result of release confirmation, site investigation, abatement, or
corrective action activities. If these
remedies include treatment or disposal
of soils, the owner and operator must
comply with applicable State and local
requirements;
(5) Measure for the presence of a release where contamination is most
likely to be present at the UST site,
unless the presence and source of the
release have been confirmed in accordance with the site check required by
280.52(b) or the closure site assessment of 280.72(a). In selecting sample
types, sample locations, and measure-

ment methods, the owner and operator

must consider the nature of the stored
substance, the type of backfill, depth
to ground water and other factors as
appropriate for identifying the presence and source of the release; and
(6) Investigate to determine the possible presence of free product, and
begin free product removal as soon as
practicable and in accordance with
280.64.
(b) Within 20 days after release confirmation, or within another reasonable period of time determined by the
implementing agency, owners and operators must submit a report to the implementing agency summarizing the
initial abatement steps taken under
paragraph (a) of this section and any
resulting information or data.
280.63 Initial site characterization.
(a) Unless directed to do otherwise by
the implementing agency, owners and
operators must assemble information
about the site and the nature of the release, including information gained
while confirming the release or completing the initial abatement measures
in 280.60 and 280.61. This information
must include, but is not necessarily
limited to the following:
(1) Data on the nature and estimated
quantity of release;
(2) Data from available sources and/
or site investigations concerning the
following factors: surrounding populations, water quality, use and approximate locations of wells potentially affected by the release, subsurface soil
conditions, locations of subsurface sewers, climatological conditions, and land
use;
(3) Results of the site check required
under 280.62(a)(5); and
(4) Results of the free product investigations required under 280.62(a)(6),
to be used by owners and operators to
determine whether free product must
be recovered under 280.64.
(b) Within 45 days of release confirmation or another reasonable period
of time determined by the implementing agency, owners and operators must
submit the information collected in
compliance with paragraph (a) of this
section to the implementing agency in
a manner that demonstrates its applicability and technical adequacy, or in a

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40 CFR Ch. I (7198 Edition)

format and according to the schedule

required by the implementing agency.

(7) The disposition of the recovered

free product.

280.64 Free product removal.

At sites where investigations under
280.62(a)(6) indicate the presence of
free product, owners and operators
must remove free product to the maximum extent practicable as determined
by the implementing agency while continuing, as necessary, any actions initiated under 280.61 through 280.63, or
preparing for actions required under
280.65 through 280.66. In meeting the
requirements of this section, owners
and operators must:
(a) Conduct free product removal in a
manner that minimizes the spread of
contamination
into
previously
uncontaminated zones by using recovery and disposal techniques appropriate to the hydrogeologic conditions
at the site, and that properly treats,
discharges or disposes of recovery byproducts in compliance with applicable
local, State and Federal regulations;
(b) Use abatement of free product migration as a minimum objective for the
design of the free product removal system;
(c) Handle any flammable products in
a safe and competent manner to prevent fires or explosions; and
(d) Unless directed to do otherwise by
the implementing agency, prepare and
submit to the implementing agency,
within 45 days after confirming a release, a free product removal report
that provides at least the following information:
(1) The name of the person(s) responsible for implementing the free product
removal measures;
(2) The estimated quantity, type, and
thickness of free product observed or
measured in wells, boreholes, and excavations;
(3) The type of free product recovery
system used;
(4) Whether any discharge will take
place on-site or off-site during the recovery operation and where this discharge will be located;
(5) The type of treatment applied to,
and the effluent quality expected from,
any discharge;
(6) The steps that have been or are
being taken to obtain necessary permits for any discharge; and

280.65 Investigations for soil and

ground-water cleanup.
(a) In order to determine the full extent and location of soils contaminated
by the release and the presence and
concentrations of dissolved product
contamination in the ground water,
owners and operators must conduct investigations of the release, the release
site, and the surrounding area possibly
affected by the release if any of the following conditions exist:
(1) There is evidence that groundwater wells have been affected by the
release (e.g., as found during release
confirmation or previous corrective action measures);
(2) Free product is found to need recovery in compliance with 280.64;
(3) There is evidence that contaminated soils may be in contact with
ground water (e.g., as found during
conduct of the initial response measures or investigations required under
280.60 through 280.64); and
(4) The implementing agency requests an investigation, based on the
potential effects of contaminated soil
or ground water on nearby surface
water and ground-water resources.
(b) Owners and operators must submit the information collected under
paragraph (a) of this section as soon as
practicable or in accordance with a
schedule established by the implementing agency.
280.66 Corrective action plan.
(a) At any point after reviewing the
information submitted in compliance
with 280.61 through 280.63, the implementing agency may require owners
and operators to submit additional information or to develop and submit a
corrective action plan for responding
to contaminated soils and ground
water. If a plan is required, owners and
operators must submit the plan according to a schedule and format established by the implementing agency. Alternatively, owners and operators may,
after fulfilling the requirements of
280.61 through 280.63, choose to submit a corrective action plan for responding to contaminated soil and
ground water. In either case, owners

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Environmental Protection Agency

280.70

and operators are responsible for submitting a plan that provides for adequate protection of human health and
the environment as determined by the
implementing agency, and must modify their plan as necessary to meet this
standard.
(b) The implementing agency will approve the corrective action plan only
after ensuring that implementation of
the plan will adequately protect human
health, safety, and the environment. In
making this determination, the implementing agency should consider the
following factors as appropriate:
(1) The physical and chemical characteristics of the regulated substance, including its toxicity, persistence, and
potential for migration;
(2) The hydrogeologic characteristics
of the facility and the surrounding
area;
(3) The proximity, quality, and current and future uses of nearby surface
water and ground water;
(4) The potential effects of residual
contamination on nearby surface water
and ground water;
(5) An exposure assessment; and
(6) Any information assembled in
compliance with this subpart.
(c) Upon approval of the corrective
action plan or as directed by the implementing agency, owners and operators
must implement the plan, including
modifications to the plan made by the
implementing agency. They must monitor, evaluate, and report the results of
implementing the plan in accordance
with a schedule and in a format established by the implementing agency.
(d) Owners and operators may, in the
interest of minimizing environmental
contamination and promoting more effective cleanup, begin cleanup of soil
and ground water before the corrective
action plan is approved provided that
they:
(1) Notify the implementing agency
of their intention to begin cleanup;
(2) Comply with any conditions imposed by the implementing agency, including halting cleanup or mitigating
adverse consequences from cleanup activities; and
(3) Incorporate these self-initiated
cleanup measures in the corrective action plan that is submitted to the implementing agency for approval.

280.67

Public participation.

(a) For each confirmed release that

requires a corrective action plan, the
implementing agency must provide notice to the public by means designed to
reach those members of the public directly affected by the release and the
planned corrective action. This notice
may include, but is not limited to, public notice in local newspapers, block
advertisements, public service announcements, publication in a state
register, letters to individual households, or personal contacts by field
staff.
(b) The implementing agency must
ensure that site release information
and decisions concerning the corrective
action plan are made available to the
public for inspection upon request.
(c) Before approving a corrective action plan, the implementing agency
may hold a public meeting to consider
comments on the proposed corrective
action plan if there is sufficient public
interest, or for any other reason.
(d) The implementing agency must
give public notice that complies with
paragraph (a) of this section if implementation of an approved corrective
action plan does not achieve the established cleanup levels in the plan and
termination of that plan is under consideration by the implementing agency.

Subpart GOut-of-Service UST

Systems and Closure
280.70

Temporary closure.

(a) When an UST system is temporarily closed, owners and operators

must continue operation and maintenance of corrosion protection in accordance with 280.31, and any release
detection in accordance with subpart
D. Subparts E and F must be complied
with if a release is suspected or confirmed. However, release detection is
not required as long as the UST system
is empty. The UST system is empty
when all materials have been removed
using commonly employed practices so
that no more than 2.5 centimeters (one
inch) of residue, or 0.3 percent by
weight of the total capacity of the UST
system, remain in the system.

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40 CFR Ch. I (7198 Edition)

(b) When an UST system is temporarily closed for 3 months or more,

owners and operators must also comply
with the following requirements:
(1) Leave vent lines open and functioning; and
(2) Cap and secure all other lines,
pumps, manways, and ancillary equipment.
(c) When an UST system is temporarily closed for more than 12 months,
owners and operators must permanently close the UST system if it does
not meet either performance standards
in 280.20 for new UST systems or the
upgrading requirements in 280.21, except that the spill and overfill equipment requirements do not have to be
met. Owners and operators must permanently close the substandard UST
systems at the end of this 12-month period in accordance with 280.71280.74,
unless the implementing agency provides an extension of the 12-month
temporary closure period. Owners and
operators must complete a site assessment in accordance with 280.72 before
such an extension can be applied for.
280.71 Permanent
closure
and
changes-in-service.
(a) At least 30 days before beginning
either permanent closure or a changein-service under paragraphs (b) and (c)
of this section, or within another reasonable time period determined by the
implementing agency, owners and operators must notify the implementing
agency of their intent to permanently
close or make the change-in-service,
unless such action is in response to corrective action. The required assessment of the excavation zone under
280.72 must be performed after notifying the implementing agency but before completion of the permanent closure or a change-in-service.
(b) To permanently close a tank,
owners and operators must empty and
clean it by removing all liquids and accumulated sludges. All tanks taken out
of service permanently must also be either removed from the ground or filled
with an inert solid material.
(c) Continued use of an UST system
to store a non-regulated substance is
considered a change-in-service. Before
a change-in-service, owners and operators must empty and clean the tank by

removing all liquid and accumulated

sludge and conduct a site assessment in
accordance with 280.72.
NOTE: The following cleaning and closure
procedures may be used to comply with this
section:
(A) American Petroleum Institute Recommended Practice 1604, Removal and Disposal of Used Underground Petroleum Storage Tanks;
(B) American Petroleum Institute Publication 2015, Cleaning Petroleum Storage
Tanks;
(C) American Petroleum Institute Recommended Practice 1631, Interior Lining of
Underground Storage Tanks, may be used
as guidance for compliance with this section;
and
(D) The National Institute for Occupational Safety and Health Criteria for a Recommended Standard * * * Working in Confined Space may be used as guidance for
conducting safe closure procedures at some
hazardous substance tanks.

280.72 Assessing the site at closure or

change-in-service.
(a) Before permanent closure or a
change-in-service is completed, owners
and operators must measure for the
presence of a release where contamination is most likely to be present at the
UST site. In selecting sample types,
sample locations, and measurement
methods, owners and operators must
consider the method of closure, the nature of the stored substance, the type
of backfill, the depth to ground water,
and other factors appropriate for identifying the presence of a release. The
requirements of this section are satisfied if one of the external release detection methods allowed in 280.43 (e) and
(f) is operating in accordance with the
requirements in 280.43 at the time of
closure, and indicates no release has
occurred.
(b) If contaminated soils, contaminated ground water, or free product as
a liquid or vapor is discovered under
paragraph (a) of this section, or by any
other manner, owners and operators
must begin corrective action in accordance with subpart F.
280.73 Applicability to
closed UST systems.

previously

When directed by the implementing

agency, the owner and operator of an
UST system permanently closed before

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Environmental Protection Agency

280.92

December 22, 1988 must assess the excavation zone and close the UST system
in accordance with this subpart if releases from the UST may, in the judgment of the implementing agency, pose
a current or potential threat to human
health and the environment.

gardless of which party complies, the

date set for compliance at a particular
facility is determined by the characteristics of the owner as set forth in
280.91.

280.74 Closure records.

Owners and operators must maintain
records in accordance with 280.34 that
are capable of demonstrating compliance with closure requirements under
this subpart. The results of the excavation zone assessment required in
280.72 must be maintained for at least
3 years after completion of permanent
closure or change-in-service in one of
the following ways:
(a) By the owners and operators who
took the UST system out of service;
(b) By the current owners and operators of the UST system site; or
(c) By mailing these records to the
implementing agency if they cannot be
maintained at the closed facility.

Owners of petroleum underground

storage tanks are required to comply
with the requirements of this subpart
by the following dates:
(a) All petroleum marketing firms
owning 1,000 or more USTs and all
other UST owners that report a tangible net worth of $20 million or more
to the U.S. Securities and Exchange
Commission (SEC), Dun and Bradstreet, the Energy Information Administration, or the Rural Electrification
Administration; January 24, 1989, except that compliance with 280.94(b) is
required by: July 24, 1989.
(b) All petroleum marketing firms
owning 100999 USTs; October 26, 1989.
(c) All petroleum marketing firms
owning 1399 USTs at more than one facility; April 26, 1991.
(d) All petroleum UST owners not described in paragraphs (a), (b), or (c) of
this section, excluding local government entities; December 31, 1993.
(e) All local government entities (including Indian tribes) not included in
paragraph (f) of this section; February
18, 1994.
(f) Indian tribes that own USTs on
Indian lands which meet the applicable
technical requirements of this part;
December 31, 1998.

Subpart HFinancial
Responsibility
SOURCE: 53 FR 43370, Oct. 26, 1988, unless
otherwise noted.

280.90 Applicability.
(a) This subpart applies to owners
and operators of all petroleum underground storage tank (UST) systems except as otherwise provided in this section.
(b) Owners and operators of petroleum UST systems are subject to these
requirements if they are in operation
on or after the date for compliance established in 280.91.
(c) State and Federal government entities whose debts and liabilities are
the debts and liabilities of a state or
the United States are exempt from the
requirements of this subpart.
(d) The requirements of this subpart
do not apply to owners and operators of
any UST system described in 280.10 (b)
or (c).
(e) If the owner and operator of a petroleum underground storage tank are
separate persons, only one person is required to demonstrate financial responsibility; however, both parties are
liable in event of noncompliance. Re-

280.91

Compliance dates.

[53 FR 43370, Oct. 26, 1988, as amended at 54

FR 5452, Feb. 3, 1989; 55 FR 18567, May 2, 1990;
55 FR 46025, Oct. 31, 1990; 56 FR 66373, Dec. 23,
1991; 59 FR 9607, Feb. 28, 1994]

280.92

Definition of terms.

When used in this subpart, the following terms shall have the meanings
given below:
Accidental release means any sudden
or nonsudden release of petroleum from
an underground storage tank that results in a need for corrective action
and/or compensation for bodily injury
or property damage neither expected
nor intended by the tank owner or operator.
Bodily injury shall have the meaning
given to this term by applicable state

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40 CFR Ch. I (7198 Edition)

law; however, this term shall not include those liabilities which, consistent with standard insurance industry
practices, are excluded from coverage
in liability insurance policies for bodily injury.
Chief Financial Officer, in the case of
local government owners and operators, means the individual with the
overall authority and responsibility for
the collection, disbursement, and use
of funds by the local government.
Controlling interest means direct ownership of at least 50 percent of the voting stock of another entity.
Director of the Implementing Agency
means the EPA Regional Administrator, or, in the case of a state with a
program approved under section 9004,
the Director of the designated state or
local agency responsible for carrying
out an approved UST program.
Financial reporting year means the
latest consecutive twelve-month period
for which any of the following reports
used to support a financial test is prepared:
(1) a 10K report submitted to the
SEC;
(2) an annual report of tangible net
worth submitted to Dun and Bradstreet; or
(3) annual reports submitted to the
Energy Information Administration or
the Rural Electrification Administration.
Financial reporting year may thus
comprise a fiscal or a calendar year period.
Legal defense cost is any expense that
an owner or operator or provider of financial assurance incurs in defending
against claims or actions brought,
(1) By EPA or a state to require corrective action or to recover the costs of
corrective action;
(2) By or on behalf of a third party
for bodily injury or property damage
caused by an accidental release; or
(3) By any person to enforce the
terms of a financial assurance mechanism.
Local government shall have the
meaning given this term by applicable
state law and includes Indian tribes.
The term is generally intended to include: (1) Counties, municipalities,
townships, separately chartered and
operated special districts (including

local government public transit systems and redevelopment authorities),

and independent school districts authorized as governmental bodies by
state charter or constitution; and (2)
Special districts and independent
school districts established by counties, municipalities, townships, and
other general purpose governments to
provide essential services.
Occurrence means an accident, including continuous or repeated exposure to conditions, which results in a
release from an underground storage
tank.
NOTE: This definition is intended to assist
in the understanding of these regulations
and is not intended either to limit the meaning of occurrence in a way that conflicts
with standard insurance usage or to prevent
the use of other standard insurance terms in
place of occurrence.

Owner or operator, when the owner or

operator are separate parties, refers to
the party that is obtaining or has obtained financial assurances.
Petroleum marketing facilities include
all facilities at which petroleum is produced or refined and all facilities from
which petroleum is sold or transferred
to other petroleum marketers or to the
public.
Petroleum marketing firms are all firms
owning petroleum marketing facilities.
Firms owning other types of facilities
with USTs as well as petroleum marketing facilities are considered to be
petroleum marketing firms.
Property damage shall have the meaning given this term by applicable state
law. This term shall not include those
liabilities
which,
consistent
with
standard insurance industry practices,
are excluded from coverage in liability
insurance policies for property damage.
However, such exclusions for property
damage shall not include corrective action associated with releases from
tanks which are covered by the policy.
Provider of financial assurance means
an entity that provides financial assurance to an owner or operator of an underground storage tank through one of
the mechanisms listed in 280.95
280.103, including a guarantor, insurer,
risk retention group, surety, issuer of a
letter of credit, issuer of a state-required mechanism, or a state.

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Environmental Protection Agency

280.93

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 guarantee contract is
issued incident to that relationship
if it arises from and depends on existing economic transactions between the
guarantor and the owner or operator.
Substantial governmental relationship
means the extent of a governmental relationship necessary under applicable
state law to make an added guarantee
contract issued incident to that relationship valid and enforceable. A guarantee contract is issued incident to
that relationship if it arises from a
clear commonality of interest in the
event of an UST release such as coterminous boundaries, overlapping constituencies, common ground-water aquifer, or other relationship other than
monetary compensation that provides
a motivation for the guarantor to provide a guarantee.
Tangible net worth means the tangible
assets that remain after deducting liabilities; such assets do not include intangibles such as goodwill and rights
to patents or royalties. For purposes of
this definition, assets means all existing and all probable future economic
benefits obtained or controlled by a
particular entity as a result of past
transactions.
Termination under 280.97(b)(1) and
280.97(b)(2) means only those changes
that could result in a gap in coverage
as where the insured has not obtained
substitute coverage or has obtained
substitute coverage with a different
retroactive date than the retroactive
date of the original policy.
[53 FR 43370, Oct. 26, 1988, as amended at 54
FR 47081, Nov. 9, 1989; 58 FR 9050, Feb. 18,
1993]

280.93 Amount and scope of required

financial responsibility.
(a) Owners or operators of petroleum
underground storage tanks must demonstrate financial responsibility for
taking corrective action and for compensating third parties for bodily injury and property damage caused by
accidental releases arising from the operation of petroleum underground stor-

age tanks in at least the following peroccurrence amounts:

(1) For owners or operators of petroleum underground storage tanks that
are located at petroleum marketing facilities, or that handle an average of
more than 10,000 gallons of petroleum
per month based on annual throughput
for the previous calendar year; $1 million.
(2) For all other owners or operators
of petroleum underground storage
tanks; $500,000.
(b) Owners or operators of petroleum
underground storage tanks must demonstrate financial responsibility for
taking corrective action and for compensating third parties for bodily injury and property damage caused by
accidental releases arising from the operation of petroleum underground storage tanks in at least the following annual aggregate amounts:
(1) For owners or operators of 1 to 100
petroleum underground storage tanks,
$1 million; and
(2) For owners or operators of 101 or
more petroleum underground storage
tanks, $2 million.
(c) For the purposes of paragraphs (b)
and (f) of this section, only, a petroleum
underground
storage
tank
means a single containment unit and
does not mean combinations of single
containment units.
(d) Except as provided in paragraph
(e) of this section, if the owner or operator uses separate mechanisms or separate combinations of mechanisms to
demonstrate financial responsibility
for:
(1) Taking corrective action;
(2) Compensating third parties for
bodily injury and property damage
caused by sudden accidental releases;
or
(3) Compensating third parties for
bodily injury and property damage
caused by nonsudden accidental releases, the amount of assurance provided by each mechanism or combination of mechanisms must be in the full
amount specified in paragraphs (a) and
(b) of this section.
(e) If an owner or operator uses separate mechanisms or separate combinations of mechanisms to demonstrate financial responsibility for different petroleum underground storage tanks,

471

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40 CFR Ch. I (7198 Edition)

the annual aggregate required shall be

based on the number of tanks covered
by each such separate mechanism or
combination of mechanisms.
(f) Owners or operators shall review
the amount of aggregate assurance provided whenever additional petroleum
underground storage tanks are acquired or installed. If the number of petroleum underground storage tanks for
which assurance must be provided exceeds 100, the owner or operator shall
demonstrate financial responsibility in
the amount of at least $2 million of annual aggregate assurance by the anniversary of the date on which the mechanism demonstrating financial responsibility became effective. If assurance
is being demonstrated by a combination of mechanisms, the owner or operator shall demonstrate financial responsibility in the amount of at least
$2 million of annual aggregate assurance by the first-occurring effective
date anniversary of any one of the
mechanisms combined (other than a financial test or guarantee) to provide
assurance.
(g) The amounts of assurance required under this section exclude legal
defense costs.
(h) The required per-occurrence and
annual aggregate coverage amounts do
not in any way limit the liability of
the owner or operator.
280.94 Allowable mechanisms and
combinations of mechanisms.
(a) Subject to the limitations of
paragraphs (b) and (c) of this section,
(1) An owner or operator, including a
local government owner or operator,
may use any one or combination of the
mechanisms listed in 280.95 through
280.103 to demonstrate financial responsibility under this subpart for one or
more underground storage tanks, and
(2) A local government owner or operator may use any one or combination
of the mechanisms listed in 280.104
through 280.107 to demonstrate financial responsibility under this subpart
for one or more underground storage
tanks.
(b) An owner or operator may use a
guarantee under 280.96 or surety bond
under 280.98 to establish financial responsibility only if the Attorney(s)
General of the state(s) in which the un-

derground storage tanks are located

has (have) submitted a written statement to the implementing agency that
a guarantee or surety bond executed as
described in this section is a legally
valid and enforceable obligation in
that state.
(c) An owner or operator may use
self-insurance in combination with a
guarantee only if, for the purpose of
meeting the requirements of the financial test under this rule, the financial
statements of the owner or operator
are not consolidated with the financial
statements of the guarantor.
[53 FR 43370, Oct. 26, 1988, as amended at 58
FR 9051, Feb. 18, 1993]

280.95 Financial
ance.

test

of

self-insur-

(a) An owner or operator, and/or

guarantor, may satisfy the requirements of 280.93 by passing a financial
test as specified in this section. To pass
the financial test of self-insurance, the
owner or operator, and/or guarantor
must meet the criteria of paragraph (b)
or (c) of this section based on year-end
financial statements for the latest
completed fiscal year.
(b)(1) The owner or operator, and/or
guarantor, must have a tangible net
worth of at least ten times:
(i) The total of the applicable aggregate amount required by 280.93, based
on the number of underground storage
tanks for which a financial test is used
to demonstrate financial responsibility
to EPA under this section or to a state
implementing agency under a state
program approved by EPA under 40
CFR part 281;
(ii) The sum of the corrective action
cost estimates, the current closure and
post-closure care cost estimates, and
amount of liability coverage for which
a financial test is used to demonstrate
financial responsibility to EPA under
40 CFR 264.101, 264.143, 264.145, 265.143,
165.145, 264.147, and 265.147 or to a state
implementing agency under a state
program authorized by EPA under 40
CFR part 271; and
(iii) The sum of current plugging and
abandonment cost estimates for which
a financial test is used to demonstrate
financial responsibility to EPA under

472

Environmental Protection Agency

280.95

40 CFR 144.63 or to a state implementing agency under a state program authorized by EPA under 40 CFR part 145.
(2) The owner or operator, and/or
guarantor, must have a tangible net
worth of at least $10 million.
(3) The owner or operator, and/or
guarantor, must have a letter signed
by the chief financial officer worded as
specified in paragraph (d) of this section.
(4) The owner or operator, and/or
guarantor, must either:
(i) File financial statements annually
with the U.S. Securities and Exchange
Commission, the Energy Information
Administration, or the Rural Electrification Administration; or
(ii) Report annually the firms tangible net worth to Dun and Bradstreet,
and Dun and Bradstreet must have assigned the firm a financial strength
rating of 4A or 5A.
(5) The firms year-end financial
statements, if independently audited,
cannot include an adverse auditors
opinion, a disclaimer of opinion, or a
going concern qualification.
(c)(1) The owner or operator, and/or
guarantor must meet the financial test
requirements of 40 CFR 264.147(f)(1),
substituting the appropriate amounts
specified in 280.93 (b)(1) and (b)(2) for
the amount of liability coverage
each time specified in that section.
(2) The fiscal year-end financial
statements of the owner or operator,
and/or guarantor, must be examined by
an independent certified public accountant and be accompanied by the
accountants report of the examination.
(3) The firms year-end financial
statements cannot include an adverse
auditors opinion, a disclaimer of opinion, or a going concern qualification.
(4) The owner or operator, and/or
guarantor, must have a letter signed
by the chief financial officer, worded as
specified in paragraph (d) of this section.
(5) If the financial statements of the
owner or operator, and/or guarantor,
are not submitted annually to the U.S.
Securities and Exchange Commission,
the Energy Information Administration or the Rural Electrification Administration, the owner or operator,
and/or guarantor, must obtain a special

report by an independent certified public accountant stating that:

(i) He has compared the data that the
letter form the chief financial officer
specifies as having been derived from
the latest year-end financial statements of the owner or operator, and/or
guarantor, with the amounts in such financial statements; and
(ii) In connection with that comparison, no matters came to his attention
which caused him to believe that the
specified data should be adjusted.
(d) To demonstrate that it meets the
financial test under paragraph (b) or (c)
of this section, the chief financial officer of the owner or operator, or guarantor, must sign, within 120 days of the
close of each financial reporting year,
as defined by the twelve-month period
for which financial statements used to
support the financial test are prepared,
a letter worded exactly as follows, except that the instructions in brackets
are to be replaced by the relevant information and the brackets deleted:
LETTER FROM CHIEF FINANCIAL OFFICER
I am the chief financial officer of [insert:
name and address of the owner or operator,
or guarantor]. This letter is in support of the
use of [insert: the financial test of self-insurance, and/or guarantee] to demonstrate financial responsibility for [insert:
taking corrective action and/or compensating third parties for bodily injury and
property damage] caused by [insert:
suddent accidential releases and/or nonsudden accidential releases] in the amount
of at least [insert: dollar amount] per occurrence and [insert: dollar amount] annual aggregate arising from operating (an) underground storage tank(s).
Underground storage tanks at the following facilities are assured by this financial
test or a financial test under an authorized
State program by this [insert: owner or operator, and/or guarantor]: [List for each
facility: the name and address of the facility
where tanks assured by this financial test
are located, and whether tanks are assured
by this financial test or a financial test
under a State program approved under 40
CFR part 281. If separate mechanisms or
combinations of mechanisms are being used
to assure any of the tanks at this facility,
list each tank assured by this financial test
or a financial test under a State program authorized under 40 CFR part 281 by the tank
identification number provided in the notification submitted pursuant to 40 CFR 280.22
or the corresponding State requirements.]

473

 280.95

40 CFR Ch. I (7198 Edition)

A [insert: financial test, and/or guarantee] is also used by this [insert: owner or
operator, or guarantor] to demonstrate
evidence of financial responsibility in the
following amounts under other EPA regulations or state programs authorized by EPA
under 40 CFR parts 271 and 145:
EPA Regulations
Closure ( 264.143 and 265.143) ...
Post-Closure Care ( 264.145 and
265.145) ...................................
Liability Coverage ( 264.147
and 265.147) ............................
Corrective Action ( 264.101(b))
Plugging and Abandonment
( 144.63) ..................................
Closure .....................................
Post-Closure Care .....................
Liabilitly Coverage ..................
Corrective Action .....................
Plugging and Abandonment .....
Total ...................................

2.

3.
4.
5.

6.

Alternative I
Amount of annual UST
aggregate coverage
being assured by a financial test, and/or
guarantee .....................
Amount of corrective action, closure and postclosure care costs, liability coverage, and
plugging and abandonment costs covered by a
financial test, and/or
guarantee .....................
Sum of lines 1 and 2 .........
Total tangible assets .......
Total liabilities [if any of
the amount reported on
line 3 is included in
total liabilities, you
may deduct that
amount from this line
and add that amount to
line 6] ...........................
Tangible net worth [subtract line 5 from line 4]

8.
9.

Amount
$

10.

$
$
$

11.

$
$
$
$
$
$
$

12.

This [insert: owner or operator, or

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

1.

7.

1.

2.

3.
4.
5.

$
$
$

6.
7.

8.

$
Yes

9.
No

474

Alternative IContinued
Is line 6 at least $10 million? .............................
Is line 6 at least 10 times
line 3? ...........................
Have financial statements for the latest fiscal year been filed with
the Securities and Exchange Commission? ....
Have financial statements for the latest fiscal year been filed with
the Energy Information
Administration? ...........
Have financial statements for the lastest
fiscal year been filed
with the Rural Electrification Administration? .............................
Has financial information
been provided to Dun
and Bradstreet, and has
Dun and Bradstreet provided a financial
strength rating of 4A or
5A? [Answer Yes only
if both criteria have
been met.] ....................
Alternative II
Amount of annual UST
aggregate coverage
being assured by a test,
and/or guarantee ..........
Amount of corrective action, closure and postclosure care costs, liability coverage, and
plugging and abandonment costs covered by a
financial test, and/or
guarantee .....................
Sum of lines 1 and 2 .........
Total tangible assets .......
Total liabilities [if any of
the amount reported on
line 3 is included in
total liabilities, you
may deduct that
amount from this line
and add that amount to
line 6] ...........................
Tangible net worth [subtract line 5 from line 4]
Total assets in the U.S.
[required only if less
than 90 percent of assets are located in the
U.S.] .............................
Is line 6 at least $10 million? .............................
Is line 6 at least 6 times
line 3? ...........................

$
$
$

$
$

$
Yes
$

No

Environmental Protection Agency

280.96

Alternative IContinued
Are at least 90 percent of
assets located in the
U.S.? [If No, complete line 11.] ................
11. Is line 7 at least 6 times
line 3? ...........................
[Fill in either lines 1215 or lines 1618:]
12. Current assets .................
$
13. Current liabilities ...........
14. Net working capital [subtract line 13 from line
12] .................................
Yes No
15. Is line 14 at least 6 times
line 3? ...........................
16. Current bond rating of
most recent bond issue
17. Name of rating service ....
18. Date of maturity of bond
19. Have financial statements for the latest fiscal year been filed with
the SEC, the Energy Information Administration, or the Rural Electrification Administration? .............................
10.

[If No, please attach a report from an

independent certified public accountant certifying that there are no material differences
between the data as reported in lines 418
above and the financial statements for the
latest fiscal year.]
[For both Alternative I and Alternative II
complete the certification with this statement.]
I hereby certify that the wording of this
letter is identical to the wording specified in
40 CFR part 280.95(d) as such regulations
were constituted on the date shown immediately below.
[Signature]
[Name]
[Title]
[Date]

(e) If an owner or operator using the

test to provide financial assurance
finds that he or she no longer meets
the requirements of the financial test
based on the year-end financial statements, the owner or operator must obtain alternative coverage within 150
days of the end of the year for which financial statements have been prepared.
(f) The Director of the implementing
agency may require reports of financial
condition at any time from the owner
or operator, and/or guarantor. If the
Director finds, on the basis of such reports or other information, that the
owner or operator, and/or guarantor, no
longer meets the financial test requirements of 280.95(b) or (c) and (d), the

owner or operator must obtain alternate coverage within 30 days after notification of such a finding.
(g) If the owner or operator fails to
obtain alternate assurance within 150
days of finding that he or she no longer
meets the requirements of the financial test based on the year-end financial statements, or within 30 days of
notification by the Director of the implementing agency that he or she no
longer meets the requirements of the
financial test, the owner or operator
must notify the Director of such failure within 10 days.
280.96

Guarantee.

(a) An owner or operator may satisfy

the requirements of 280.93 by obtaining a guarantee that conforms to the
requirements of this section. The guarantor must be:
(1) A firm that (i) possesses a controlling interest in the owner or operator;
(ii) possesses a controlling interest in a
firm described under paragraph (a)(1)(i)
of this section; or, (iii) is controlled
through stock ownership by a common
parent firm that possesses a controlling interest in the owner or operator;
or,
(2) A firm engaged in a substantial
business relationship with the owner or
operator and issuing the guarantee as
an act incident to that business relationship.
(b) Within 120 days of the close of
each financial reporting year the guarantor must demonstrate that it meets
the financial test criteria of 280.95
based on year-end financial statements
for the latest completed financial reporting year by completing the letter
from the chief financial officer described in 280.95(d) and must deliver
the letter to the owner or operator. If
the guarantor fails to meet the requirements of the financial test at the end
of any financial reporting year, within
120 days of the end of that financial reporting year the guarantor shall send
by certified mail, before cancellation
or nonrenewal of the guarantee, notice
to the owner or operator. If the Director of the implementing agency notifies the guarantor that he no longer
meets the requirements of the financial test of 280.95 (b) or (c) and (d), the

475

 280.96

40 CFR Ch. I (7198 Edition)

guarantor must notify the owner or operator within 10 days of receiving such
notification from the Director. In both
cases, the guarantee will terminate no
less than 120 days after the date the
owner or operator receives the notification, as evidenced by the return receipt. The owner or operator must obtain alternative coverage as specified
in 280.110(c).
(c) The guarantee must be worded as
follows, except that instructions in
brackets are to be replaced with the
relevant information and the brackets
deleted:
GUARANTEE
Guarantee made this [date] by [name of
guaranteeing entity], a business entity organized under the laws of the state of [name of
state], herein referred to as guarantor, to
[the state implementing agency] and to any
and all third parties, and obligees, on behalf
of [owner or operator] of [business address].
Recitals.
(1) Guarantor meets or exceeds the financial test criteria of 40 CFR 280.95 (b) or (c)
and (d) and agrees to comply with the requirements for guarantors as specified in 40
CFR 280.96(b).
(2) [Owner or operator] owns or operates
the following underground storage tank(s)
covered by this guarantee: [List the number
of tanks at each facility and the name(s) and
address(es) of the facility(ies) where the
tanks are located. If more than one instrument is used to assure different tanks at any
one facility, for each tank covered by this instrument, list the tank identification number provided in the notification submitted
pursuant to 40 CFR 280.22 or the corresponding state requirement, and the name and address of the facility.] This guarantee satisfies 40 CFR part 280, subpart H requirements
for assuring funding for [insert: taking corrective action and/or compensating third
parties for bodily injury and property damage caused by either sudden accidental releases or nonsudden accidental releases
or accidental releases; if coverage is different for different tanks or locations, indicate the type of coverage applicable to each
tank or location] arising from operating the
above-identified underground storage tank(s)
in the amount of [insert dollar amount] per
occurrence and [insert dollar amount] annual aggregate.
(3) [Insert appropriate phrase: On behalf
of our subsidiary (if guarantor is corporate
parent of the owner or operator); On behalf
of our affiliate (if guarantor is a related
firm of the owner or operator); or Incident
to our business relationship with (if guar-

antor is providing the guarantee as an incident to a substantial business relationship

with owner or operator)] [owner or operator],
guarantor guarantees to [implementing
agency] and to any and all third parties that:
In the event that [owner or operator] fails
to provide alternative coverage within 60
days after receipt of a notice of cancellation
of this guarantee and the [Director of the
implementing agency] has determined or
suspects that a release has occurred at an
underground storage tank covered by this
guarantee, the guarantor, upon instructions
from the [Director], shall fund a standby
trust fund in accordance with the provisions
of 40 CFR 280.108, in an amount not to exceed
the coverage limits specified above.
In the event that the [Director] determines
that [owner or operator] has failed to perform corrective action for releases arising
out of the operation of the above-identified
tank(s) in accordance with 40 CFR part 280,
subpart F, the guarantor upon written instructions from the [Director] shall fund a
standby trust in accordance with the provisions of 40 CFR 280.108, in an amount not to
exceed the coverage limits specified above.
If [owner or operator] fails to satisfy a
judgment or award based on a determination
of liability for bodily injury or property
damage to third parties caused by [sudden
and/or nonsudden] accidential releases
arising from the operation of the above-identified tank(s), or fails to pay an amount
agreed to in settlement of a claim arising
from or alleged to arise from such injury or
damage, the guarantor, upon written instructions from the [Director], shall fund a
standby trust in accordance with the provisions of 40 CFR 280.108 to satisfy such judgment(s), award(s), or settlement agreement(s) up to the limits of coverage specified
above.
(4) Guarantor agrees that if, at the end of
any fiscal year before cancellation of this
guarantee, the guarantor fails to meet the financial test criteria of 40 CFR 280.95 (b) or
(c) and (d), guarantor shall send within 120
days of such failure, by certified mail, notice
to [owner or operator]. The guarantee will
terminate 120 days from the date of receipt
of the notice by [owner or operator], as evidenced by the return receipt.
(5) Guarantor agrees to notify [owner or
operator] by certified mail of a voluntary or
involuntary proceeding under Title 11 (Bankruptcy), U.S. Code naming guarantor as
debtor, within 10 days after commencement
of the proceeding.
(6) Guarantor agrees to remain bound
under this guarantee notwithstanding any
modification or alteration of any obligation
of [owner or operator] pursuant to 40 CFR
part 280.
(7) Guarantor agrees to remain bound
under this guarantee for so long as [owner or
operator] must comply with the applicable

476

Environmental Protection Agency

280.97

financial responsibility requirements of 40

CFR part 280, subpart H for the above-identified tank(s), except that guarantor may cancel this guarantee by sending notice by certified mail to [owner or operator], such cancellation to become effective no earlier than
120 days after receipt of such notice by
[owner or operator], as evidenced by the return receipt.
(8) The guarantors obligation does not
apply to any of the following:
(a) Any obligation of [insert owner or operator] under a workers compensation, disability benefits, or unemployment compensation law or other similar law;
(b) Bodily injury to an employee of [insert
owner or operator] arising from, and in the
course of, employment by [insert owner or
operator];
(c) Bodily injury or property damage arising from the ownership, maintenance, use, or
entrustment to others of any aircraft, motor
vehicle, or watercraft;
(d) Property damage to any property
owned, rented, loaded to, in the care, custody, or control of, or occupied by [insert
owner or operator] that is not the direct result of a release from a petroleum underground storage tank;
(e) Bodily damage or property damage for
which [insert owner or operator] is obligated
to pay damages by reason of the assumption
of liability in a contract or agreement other
than a contract or agreement entered into to
meet the requirements of 40 CFR 280.93.
(9) Guarantor expressly waives notice of
acceptance of this guarantee by [the implementing agency], by any or all third parties,
or by [owner or operator].
I hereby certify that the wording of this
guarantee is identical to the wording specified in 40 CFR 280.96(c) as such regulations
were constituted on the effective date shown
immediately below.
Effective date:
[Name of guarantor]
[Authorized signature for guarantor]
[Name of person signing]
[Title of person signing]
Signature of witness or notary:

(d) An owner or operator who uses a

guarantee to satisfy the requirements
of 280.93 must establish a standby
trust fund when the guarantee is obtained. Under the terms of the guarantee, all amounts paid by the guarantor
under the guarantee will be deposited
directly into the standby trust fund in
accordance with instructions from the
Director of the implementing agency
under 280.108. This standby trust fund
must meet the requirements specified
in 280.103.

280.97 Insurance and risk retention

group coverage.
(a) An owner or operator may satisfy
the requirements of 290.93 by obtaining liability insurance that conforms
to the requirements of this section
from a qualified insurer or risk retention group. Such insurance may be in
the form of a separate insurance policy
or an endorsement to an existing insurance policy.
(b) Each insurance policy must be
amended by an endorsement worded as
specified in paragraph (b)(1) of this section, or evidenced by a certificate of
insurance worded as specified in paragraph (b)(2) of this section, except that
instructions in brackets must be replaced with the relevant information
and the brackets deleted:
(1) Endorsement
Name: [name of each covered location]

Address: [address of each covered location]

Policy Number:
Period of Coverage: [current policy period]

Name of [Insurer or Risk Retention Group]:

Address of [Insurer or Risk Retention

Group]:

Name of Insured:
Address of Insured:

ENDORSEMENT:
1. This endorsement certifies that the policy to which the endorsement is attached
provides liability insurance covering the following underground storage tanks:
[List the number of tanks at each facility
and the name(s) and address(es) of the facility(ies) where the tanks are located. If
more than one instrument is used to assure different tanks at any one facility,
for each tank covered by this instrument, list the tank identification number provided in the notification submitted pursuant to 40 CFR 280.22, or the corresponding state requirement, and the
name and address of the facility.]
for [insert: taking corrective action and/or
compensating third parties for bodily injury and property damage caused by either

477

 280.97

40 CFR Ch. I (7198 Edition)

sudden accidental releases or nonsudden

accidental releases or accidental releases; in accordance with and subject to
the limits of liability, exclusions, conditions,
and other terms of the policy; if coverage is
different for different tanks or locations, indicate the type of coverage applicable to
each tank or location] arising from operating the underground storage tank(s) identified above.
The limits of liability are [insert the dollar
amount of the each occurrence and annual aggregate limits of the Insurers or
Groups liability; if the amount of coverage
is different for different types of coverage or
for different underground storage tanks or
locations, indicate the amount of coverage
for each type of coverage and/or for each underground storage tank or location], exclusive of legal defense costs, which are subject
to a separate limit under the policy. This
coverage is provided under [policy number].
The effective date of said policy is [date].
2. The insurance afforded with respect to
such occurrences is subject to all of the
terms and conditions of the policy; provided,
however, that any provisions inconsistent
with subsections (a) through (e) of this Paragraph 2 are hereby amended to conform with
subsections (a) through (e);
a. Bankruptcy or insolvency of the insured
shall not relieve the [Insurer or Group]
of its obligations under the policy to which
this endorsement is attached.
b. The [Insurer or Group] is liable for
the payment of amounts within any deductible applicable to the policy to the provider
of corrective action or a damaged thirdparty, with a right of reimbursement by the
insured for any such payment made by the
[Insurer or Group]. This provision does
not apply with respect to that amount of any
deductible for which coverage is demonstrated under another mechanism or combination of mechanisms as specified in 40
CFR 280.95280.102.
c. Whenever requested by [a Director of an
implementing agency], the [Insurer or
Group] agrees to furnish to [the Director]
a signed duplicate original of the policy and
all endorsements.
d. Cancellation or any other termination of
the insurance by the [Insurer or Group],
except for non-payment of premium or misrepresentation by the insured, will be effective only upon written notice and only after
the expiration of 60 days after a copy of such
written notice is received by the insured.
Cancellation for non-payment of premium or
misrepresentation by the insured will be effective only upon written notice and only
after expiration of a minimum of 10 days
after a copy of such written notice is received by the insured.
[Insert for claims-made policies:
e. The insurance covers claims otherwise
covered by the policy that are reported to

the [Insurer or Group] within six

months of the effective date of cancellation
or non-renewal of the policy except where
the new or renewed policy has the same retroactive date or a retroactive date earlier
than that of the prior policy, and which arise
out of any covered occurrence that commenced after the policy retroactive date, if
applicable, and prior to such policy renewal
or termination date. Claims reported during
such extended reporting period are subject to
the terms, conditions, limits, including limits of liability, and exclusions of the policy.]
I hereby certify that the wording of this
instrument is identical to the wording in 40
CFR 280.97(b)(1) and that the [Insurer or
Group] is [licensed to transact the business of insurance or eligible to provide insurance as an excess or surplus lines insurer in
one or more states].
[Signature of authorized representative of
Insurer or Risk Retention Group]
[Name of person signing]
[Title of person signing], Authorized Representative of [name of Insurer or Risk Retention Group]
[Address of Representative]
(2) Certificate of Insurance
Name: [name of each covered location]

Address: [address of each covered location]

Policy Number:
Endorsement (if applicable):
Period of Coverage: [current policy period]

Name of [Insurer or Risk Retention Group]:

Address of [Insurer or Risk Retention

Group]:

Name of Insured:
Address of Insured:

Certification:
1. [Name of Insurer or Risk Retention
Group], [the Insurer or Group], as identified above, hereby certifies that it has
issued liability insurance covering the following underground storage tank(s):
[List the number of tanks at each facility
and the name(s) and address(es) of the facility(ies) where the tanks are located. If
more than one instrument is used to assure different tanks at any one facility,

478

Environmental Protection Agency

280.98

for each tank covered by this instrument, list the tank identification number provided in the notification submitted pursuant to 40 CFR 280.22, or the corresponding state requirement, and the
name and address of the facility.]
for [insert: taking corrective action and/or
compensating third parties for bodily injury and property damage caused by either
sudden accidental releases or nonsudden
accidental releases or accidental releases; in accordance with and subject to
the limits of liability, exclusions, conditions,
and other terms of the policy; if coverage is
different for different tanks or locations, indicate the type of coverage applicable to
each tank or location] arising from operating the underground storage tank(s) identified above.
The limits of liability are [insert the dollar
amount of the each occurrence and annual aggregate limits of the Insurers or
Groups liability; if the amount of coverage
is different for different types of coverage or
for different underground storage tanks or
locations, indicate the amount of coverage
for each type of coverage and/or for each underground storage tank or location], exclusive of legal defense costs, which are subject
to a separate limit under the policy. This
coverage is provided under [policy number].
The effective date of said policy is [date].
2. The [Insurer or Group] further certifies the following with respect to the insurance described in Paragraph 1:
a. Bankruptcy or insolvency of the insured
shall not relieve the [Insurer or Group]
of its obligations under the policy to which
this certificate applies.
b. The [Insurer or Group] is liable for
the payment of amounts within any deductible applicable to the policy to the provider
of corrective action or a damaged thirdparty, with a right of reimbursement by the
insured for any such payment made by the
[Insurer or Group]. This provision does
not apply with respect to that amount of any
deductible for which coverage is demonstrated under another mechanism or combination of mechanisms as specified in 40
CFR 280.95280.102.
c. Whenever requested by [a Director of an
implementing agency], the [Insurer or
Group] agrees to furnish to [the Director]
a signed duplicate original of the policy and
all endorsements.
d. Cancellation or any other termination of
the insurance by the [Insurer or Group],
except for non-payment of premium or misrepresentation by the insured, will be effective only upon written notice and only after
the expiration of 60 days after a copy of such
written notice is received by the insured.
Cancellation for non-payment of premium or
misrepresentation by the insured will be effective only upon written notice and only
after expiration of a minimum of 10 days

after a copy of such written notice is received by the insured.

[Insert for claims-made policies:
e. The insurance covers claims otherwise
covered by the policy that are reported to
the [Insurer or Group] within six
months of the effective date of cancellation
or non-renewal of the policy except where
the new or renewed policy has the same retroactive date or a retroactive date earlier
than that of the prior policy, and which arise
out of any covered occurrence that commenced after the policy retroactive date, if
applicable, and prior to such policy renewal
or termination date. Claims reported during
such extended reporting period are subject to
the terms, conditions, limits, including limits of liability, and exclusions of the policy.]
I hereby certify that the wording of this
instrument is identical to the wording in 40
CFR 280.97(b)(2) and that the [Insurer or
Group] is [licensed to transact the business of insurance, or eligible to provide insurance as an excess or surplus lines insurer,
in one or more states].
[Signature of authorized representative of
Insurer]
[Type name]
[Title], Authorized Representative of [name
of Insurer or Risk Retention Group]
[Address of Representative]

(c) Each insurance policy must be

issued by an insurer or a risk retention
group that, at a minimum, is licensed
to transact the business of insurance or
eligible to provide insurance as an excess or surplus lines insurer in one or
more states.
[53 FR 43370, Oct. 26, 1988, as amended at 54
FR 47081, Nov. 9, 1989]

280.98 Surety bond.

(a) An owner or operator may satisfy
the requirements of 280.93 by obtaining a surety bond that conforms to the
requirements of this section. The surety company issuing the bond must be
among those listed as acceptable sureties on federal bonds in the latest Circular 570 of the U.S. Department of the
Treasury.
(b) The surety bond must be worded
as follows, except that instructions in
brackets must be replaced with the relevant information and the brackets deleted:
PERFORMANCE BOND
Date bond executed:
Period of coverage:
Principal: [legal name and business address
of owner or operator]

479

 280.98

40 CFR Ch. I (7198 Edition)

Type of organization: [insert individual,

joint venture, partnership, or corporation]

State of incorporation (if applicable):

Surety(ies): [name(s) and business address(es)]

Scope of Coverage: [List the number of tanks

at each facility and the name(s) and address(es) of the facility(ies) where the tanks
are located. If more than one instrument is
used to assure different tanks at any one facility, for each tank covered by this instrument, list the tank identification number
provided in the notification submitted pursuant to 40 CFR 280.22, or the corresponding
state requirement, and the name and address
of the facility. List the coverage guaranteed
by the bond: taking corrective action and/
or compensating third parties for bodily injury and property damage caused by either
sudden accidental releases or nonsudden
accidental releases or accidental releases
arising from operating the underground
storage tank].
Penal sums of bond:
Per occurrence $
Annual aggregate $
Suretys bond number:
Know All Persons by These Presents, that
we, the Principal and Surety(ies), hereto are
firmly bound to [the implementing agency],
in the above penal sums for the payment of
which we bind ourselves, our heirs, executors, administrators, successors, and assigns
jointly and severally; provided that, where
the Surety(ies) are corporations acting as cosureties, we, the Sureties, bind ourselves in
such sums jointly and severally only for the
purpose of allowing a joint action or actions
against any or all of us, and for all other purposes each Surety binds itself, jointly and
severally with the Principal, for the payment of such sums only as is set forth opposite the name of such Surety, but if no limit
of liability is indicated, the limit of liability
shall be the full amount of the penal sums.
Whereas said Principal is required under
Subtitle I of the Resource Conservation and
Recovery Act (RCRA), as amended, to provide financial assurance for [insert: taking
corrective action and/or compensating
third parties for bodily injury and property
damage caused by either sudden accidental releases or nonsudden accidental releases or accidental releases; if coverage
is different for different tanks or locations,
indicate the type of coverage applicable to
each tank or location] arising from operating the underground storage tanks identified
above, and
Whereas said Principal shall establish a
standby trust fund as is required when a sur-

ety bond is used to provide such financial assurance;

Now, therefore, the conditions of the obligation are such that if the Principal shall
faithfully [take corrective action, in accordance with 40 CFR part 280, subpart F and
the Director of the state implementing agencys instructions for, and/or compensate
injured third parties for bodily injury and
property damage caused by either sudden
or nonsudden or sudden and nonsudden]
accidental releases arising from operating
the tank(s) indentified above, or if the Principal shall provide alternate financial assurance, as specified in 40 CFR part 280, subpart
H, within 120 days after the date the notice
of cancellation is received by the Principal
from the Surety(ies), then this obligation
shall be null and void; otherwise it is to remain in full force and effect.
Such obligation does not apply to any of
the following:
(a) Any obligation of [insert owner or operator] under a workers compensation, disability benefits, or unemployment compensation law or other similar law;
(b) Bodily injury to an employee of [insert
owner or operator] arising from, and in the
course of, employment by [insert owner or
operator];
(c) Bodily injury or property damage arising from the ownership, maintenance, use, or
entrustment to others of any aircraft, motor
vehicle, or watercraft;
(d) Property damage to any property
owned, rented, loaned to, in the care, custody, or control of, or occupied by [insert
owner or operator] that is not the direct result of a release from a petroleum underground storage tank;
(e) Bodily injury or property damage for
which [insert owner or operator] is obligated
to pay damages by reason of the assumption
of liability in a contract or agreement other
than a contract or agreement entered into to
meet the requirements of 40 CFR 280.93.
The Surety(ies) shall become liable on this
bond obligation only when the Principal has
failed to fulfill the conditions described
above.
Upon notification by [the Director of the
implementing agency] that the Principal has
failed to [take corrective action, in accordance with 40 CFR part 280, subpart F and the
Directors instructions, and/or compensate
injured third parties] as guaranteed by this
bond, the Surety(ies) shall either perform
[corrective action in accordance with 40
CFR part 280 and the Directors instructions, and/or third-party liability compensation] or place funds in an amount up
to the annual aggregate penal sum into the
standby trust fund as directed by [the Regional Administrator or the Director] under
40 CFR 280.108.
Upon notification by [the Director] that
the Principal has failed to provide alternate

480

Environmental Protection Agency

280.99

financial assurance within 60 days after the

date the notice of cancellation is received by
the Principal from the Surety(ies) and that
[the Director] has determined or suspects
that a release has occurred, the Surety(ies)
shall place funds in an amount not exceeding
the annual aggregate penal sum into the
standby trust fund as directed by [the Director] under 40 CFR 280.108.
The Surety(ies) hereby waive(s) notification of amendments to applicable laws, statutes, rules, and regulations and agrees that
no such amendment shall in any way alleviate its (their) obligation on this bond.
The liability of the Surety(ies) shall not be
discharged by any payment or succession of
payments hereunder, unless and until such
payment or payments shall amount in the
annual aggregate to the penal sum shown on
the face of the bond, but in no event shall
the obligation of the Surety(ies) hereunder
exceed the amount of said annual aggregate
penal sum.
The Surety(ies) may cancel the bond by
sending notice of cancellation by certified
mail to the Principal, provided, however,
that cancellation shall not occur during the
120 days beginning on the date of receipt of
the notice of cancellation by the Principal,
as evidenced by the return receipt.
The Principal may terminate this bond by
sending written notice to the Surety(ies).
In Witness Thereof, the Principal and Surety(ies) have executed this Bond and have affixed their seals on the date set forth above.
The persons whose signatures appear below
hereby certify that they are authorized to
execute this surety bond on behalf of the
Principal and Surety(ies) and that the wording of this surety bond is identical to the
wording specified in 40 CFR 280.98(b) as such
regulations were constituted on the date this
bond was executed.
Principal
[Signature(s)]
[Names(s)]
[Title(s)]
[Corporate seal]
Corporate Surety(ies)
[Name and address]
[State of Incorporation:
[Liability limit: $
[Signature(s)]
[Names(s) and title(s)]
[Corporate seal]
[For every co-surety, provide signature(s),
corporate seal, and other information in the
same manner as for Surety above.]
Bond premium: $

(c) Under the terms of the bond, the

surety will become liable on the bond
obligation when the owner or operator
fails to perform as guaranteed by the

bond. In all cases, the suretys liability

is limited to the per-occurrence and annual aggregate penal sums.
(d) The owner or operator who uses a
surety bond to satisfy the requirements of 280.93 must establish a
standby trust fund when the surety
bond is acquired. Under the terms of
the bond, all amounts paid by the surety under the bond will be deposited directly into the standby trust fund in
accordance with instructions from the
Director under 280.108. This standby
trust fund must meet the requirements
specified in 280.103.
280.99 Letter of credit.
(a) An owner or operator may satisfy
the requirements of 280.93 by obtaining an irrevocable standby letter of
credit that conforms to the requirements of this section. The issuing institution must be an entity that has
the authority to issue letters of credit
in each state where used and whose letter-of-credit operations are regulated
and examined by a federal or state
agency.
(b) The letter of credit must be worded as follows, except that instructions
in brackets are to be replaced with the
relevant information and the brackets
deleted:
IRREVOCABLE STANDBY LETTER OF CREDIT
[Name and address of issuing institution]
[Name and address of Director(s) of state implementing agency(ies)]
Dear Sir or Madam: We hereby establish
our Irrevocable Standby Letter of Credit No.
in your favor, at the request and for
the account of [owner or operator name] of
[address] up to the aggregate amount of [in
words] U.S. dollars ($[insert dollar amount]),
available upon presentation [insert, if more
than one Director of a state implementing
agency is a beneficiary, by any one of you]
of
(1) your sight draft, bearing reference to
this letter of credit, No.
, and
(2) your signed statement reading as follows: I certify that the amount of the draft
is payable persuant to regulations issued
under authority of Subtitle I of the Resource
Conservation and Recovery Act of 1976, as
amended.
This letter of credit may be drawn on to
cover [insert: taking corrective action
and/or compensating third parties for bodily injury and property damage caused by
either sudden accidental releases or nonsudden accidental releases or accidental

481

 280.100

40 CFR Ch. I (7198 Edition)

releases] arising from operating the underground storage tank(s) identified below in
the amount of [in words] $[insert dollar
amount] per occurrence and [in words]
$[insert dollar amount] annual aggregate:
[List the number of tanks at each facility
and the name(s) and address(es) of the facility(ies) where the tanks are located. If more
than one instrument is used to assure different tanks at any one facility, for each
tank covered by this instrument, list the
tank identification number provided in the
notification submitted pursuant to 40 CFR
280.22, or the corresponding state requirement, and the name and address of the facility.]
The letter of credit may not be drawn on to
cover any of the following:
(a) Any obligation of [insert owner or operator] under a workers compensation, disability benefits, or unemployment compensation law or other similar law;
(b) Bodily injury to an employee of [insert
owner or operator] arising from, and in the
course of, employment by [insert owner or
operator];
(c) Bodily injury or property damage arising from the ownership, maintenance, use, or
entrustment to others of any aircraft, motor
vehicle, or watercraft;
(d) Property damage to any property
owned, rented, loaned to, in the care, custody, or control of, or occupied by [insert
owner or operator] that is not the direct result of a release from a petroleum underground storage tank;
(e) Bodily injury or property damage for
which [insert owner or operator] is obligated
to pay damages by reason of the assumption
of liability in a contract or agreement other
than a contract or agreement entered into to
meet the requirements of 40 CFR 280.93.
This letter of credit is effective as of [date]
and shall expire on [date], but such expiration date shall be automatically extended for
a period of [at least the length of the original term] on [expiration date] and on each
successive expiration date, unless, at least
120 days before the curent expiration date,
we notify [owner or operator] by certified
mail that we have decided not to extend this
letter of credit beyond the current expiration date. In the event that [owner or operator] is so notified, any unused portion of the
credit shall be available upon presentation of
your sight draft for 120 days after the date of
receipt by [owner or operator], as shown on
the signed return receipt.
Whenever this letter of credit is drawn on
under and in compliance with the terms of
this credit, we shall duly honor such draft
upon presentation to us, and we shall deposit
the amount of the draft directly into the
standby trust fund of [owner or operator] in
accordance with your instructions.

We certify that the wording of this letter

of credit is identical to the wording specified
in 40 CFR 280.99(b) as such regulations were
constituted on the date shown immediately
below.
[Signature(s) and title(s) of official(s) of
issuing institution]
[Date]
This credit is subject to [insert the most
recent edition of the Uniform Customs and
Practice for Documentary Credits, published
and copyrighted by the International Chamber of Commerce, or the Uniform Commercial Code].

(c) An owner or operator who uses a

letter of credit to satisfy the requirements of 280.93 must also establish a
standby trust fund when the letter of
credit is acquired. Under the terms of
the letter of credit, all amounts paid
pursuant to a draft by the Director of
the implementing agency will be deposited by the issuing institution directly
into the standby trust fund in accordance with instructions from the Director under 280.108. This standby trust
fund must meet the requirements specified in 280.103.
(d) The letter of credit must be irrevocable with a term specified by the
issuing institution. The letter of credit
must provide that credit be automatically renewed for the same term as the
original term, unless, at least 120 days
before the current expiration date, the
issuing institution notifies the owner
or operator by certified mail of its decision not to renew the letter of credit.
Under the terms of the letter of credit,
the 120 days will begin on the date
when the owner or operator receives
the notice, as evidenced by the return
receipt.
[53 FR 37194, Sept. 23, 1988, as amended at 59
FR 29960, June 10, 1994]

280.100 Use of state-required mechanism.

(a) For underground storage tanks located in a state that does not have an
approved program, and where the state
requires owners or operators of underground storage tanks to demonstrate
financial responsibility for taking corrective action and/or for compensating
third parties for bodily injury and
property damage, an owner or operator
may use a state-required financial
mechanism to meet the requirements

482

Environmental Protection Agency

280.101

of 280.93 if the Regional Administrator

determines that the state mechanism
is at least equivalent to the financial
mechanisms specified in this subpart.
(b) The Regional Administrator will
evaluate the equivalency of a state-required mechanism principally in terms
of: certainty of the availability of
funds for taking corrective action and/
or for compensating third parties; the
amount of funds that will be made
available; and the types of costs covered. The Regional Administrator may
also consider other factors as is necessary.
(c) The state, an owner or operator,
or any other interested party may submit to the Regional Administrator a
written petition requesting that one or
more of the state-required mechanisms
be considered acceptable for meeting
the requirements of 280.93. The submission must include copies of the appropriate state statutory and regulatory requirements and must show the
amount of funds for corrective action
and/or for compensating third parties
assured by the mechanism(s). The Regional Administrator may require the
petitioner to submit additional information as is deemed necessary to make
this determination.
(d) Any petition under this section
may be submitted on behalf of all of
the states underground storage tank
owners and operators.
(e) The Regional Administrator will
notify the petitioner of his determination regarding the mechanisms acceptability in lieu of financial mechanisms
specified in this subpart. Pending this
determination, the owners and operators using such mechanisms will be
deemed to be in compliance with the
requirements of 280.93 for underground storage tanks located in the
state for the amounts and types of
costs covered by such mechanisms.
[53 FR 43370, Oct. 26, 1988; 53 FR 51274, Dec.
21, 1988]

280.101 State fund or other state assurance.

(a) An owner or operator may satisfy
the requirements of 280.93 for underground storage tanks located in a
state, where EPA is administering the
requirements of this subpart, which
assures that monies will be available

from a state fund or state assurance

program to cover costs up to the limits
specified in 280.93 or otherwise assures
that such costs will be paid if the Regional Administrator determines that
the states assurance is at least equivalent to the financial mechanisms specified in this subpart.
(b) The Regional Administrator will
evaluate the equivalency of a state
fund or other state assurance principally in terms of: Certainty of the
availability of funds for taking corrective action and/or for compensating
third parties; the amount of funds that
will be made available; and the types of
costs covered. The Regional Administrator may also consider other factors
as is necessary.
(c) The state must submit to the Regional Administrator a description of
the state fund or other state assurance
to be supplied as financial assurance,
along with a list of the classes of underground storage tanks to which the
funds may be applied. The Regional Administrator may require the state to
submit additional information as is
deemed necessary to make a determination regarding the acceptability
of the state fund or other state assurance. Pending the determination by
the Regional Administrator, the owner
or operator of a covered class of USTs
will be deemed to be in compliance
with the requirements of 280.93 for the
amounts and types of costs covered by
the state fund or other state assurance.
(d) The Regional Administrator will
notify the state of his determination
regarding the acceptability of the
states fund or other assurance in lieu
of financial mechanisms specified in
this subpart. Within 60 days after the
Regional Administrator notifies a state
that a state fund or other state assurance is acceptable, the state must provide to each owner or operator for
which it is assuming financial responsibility a letter or certificate describing the nature of the states assumption of responsibility. The letter or certificate from the state must include, or
have attached to it, the following information: the facilitys name and address and the amount of funds for corrective action and/or for compensating
third parties that is assured by the
state. The owner or operator must

483

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40 CFR Ch. I (7198 Edition)

maintain this letter or certificate on

file as proof of financial responsibility
in accordance with 280.107(b)(5).
280.102 Trust fund.
(a) An owner or operator may satisfy
the requirements of 280.93 by establishing a trust fund that conforms to
the requirements of this section. The
trustee must be an entity that has the
authority to act as a trustee and whose
trust operations are regulated and examined by a federal agency or an agency of the state in which the fund is established.
(b) The wording of the trust agreement must be identical to the wording
specified in 280.103(b)(1), and must be
accompanied by a formal certification
of acknowledgement as specified in
280.103(b)(2).
(c) The trust fund, when established,
must be funded for the full required
amount of coverage, or funded for part
of the required amount of coverage and
used in combination with other mechanism(s) that provide the remaining required coverage.
(d) If the value of the trust fund is
greater than the required amount of
coverage, the owner or operator may
submit a written request to the Director of the implementing agency for release of the excess.
(e) If other financial assurance as
specified in this subpart is substituted
for all or part of the trust fund, the
owner or operator may submit a written request to the Director of the implementing agency for release of the
excess.
(f) Within 60 days after receiving a
request from the owner or operator for
release of funds as specified in paragraph (d) or (e) of this section, the Director of the implementing agency will
instruct the trustee to release to the
owner or operator such funds as the Director specifies in writing.
280.103 Standby trust fund.
(a) An owner or operator using any
one of the mechanisms authorized by
280.96, 280.98, or 280.99 must establish
a standby trust fund when the mechanism is acquired. The trustee of the
standby trust fund must be an entity
that has the authority to act as a
trustee and whose trust operations are

regulated and examined by a Federal

agency or an agency of the state in
which the fund is established.
(b)(1) The standby trust agreement,
or trust agreement, must be worded as
follows, except that instructions in
brackets are to be replaced with the
relevant information and the brackets
deleted:
TRUST AGREEMENT
Trust agreement, the Agreement, entered into as of [date] by and between [name
of the owner or operator], a [name of state]
[insert corporation, partnership, association, or proprietorship], the Grantor, and [name of corporate trustee], [insert
Incorporated in the state of
or a
national bank], the Trustee.
Whereas, the United States Environmental
Protection Agency, EPA, an agency of the
United States Government, has established
certain regulations applicable to the Grantor, requiring that an owner or operator of an
underground storage tank shall provide assurance that funds will be available when
needed for corrective action and third-party
compensation for bodily injury and property
damage caused by sudden and nonsudden accidental releases arising from the operation
of the underground storage tank. The attached Schedule A lists the number of tanks
at each facility and the name(s) and address(es) of the facility(ies) where the tanks
are located that are covered by the standpoint trust agreement.
[Whereas, the Grantor has elected to establish [insert either a guarantee, surety
bond, or letter of credit] to provide all or
part of such financial assurance for the underground storage tanks identified herein
and is required to establish a standby trust
fund able to accept payments from the instrument (This paragraph is only applicable
to the standby trust agreement.)];
Whereas, the Grantor, acting through its
duly authorized officers, has selected the
Trustee to be the trustee under this agreement, and the Trustee is willing to act as
trustee;
Now, therefore, the Grantor and the Trustee agree as follows:
Section 1. Definitions
As used in this Agreement:
(a) The term Grantor means the owner
or operator who enters into this Agreement
and any successors or assigns of the Grantor.
(b) The term Trustee means the Trustee
who enters into this Agreement and any successor Trustee.

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280.103

Section 2. Identification of the Financial

Assurance Mechanism
This Agreement pertains to the [identify
the financial assurance mechanism, either a
guarantee, surety bond, or letter of credit,
from which the standby trust fund is established to receive payments (This paragraph
is only applicable to the standby trust agreement.)].
Section 3. Establishment of Fund
The Grantor and the Trustee hereby establish a trust fund, the Fund, for the benefit
of [implementing agency]. The Grantor and
the Trustee intend that no third party have
access to the Fund except as herein provided.
[The Fund is established initially as a standby to receive payments and shall not consist
of any property.] Payments made by the provider of financial assurance pursuant to [the
Director of the implementing agencys] instruction are transferred to the Trustee and
are referred to as the Fund, together with all
earnings and profits thereon, less any payments or distributions made by the Trustee
pursuant to this Agreement. The Fund shall
be held by the Trustee, IN TRUST, as hereinafter provided. The Trustee shall not be responsible nor shall it undertake any responsibility for the amount or adequacy of, nor
any duty to collect from the Grantor as provider of financial assurance, any payments
necessary to discharge any liability of the
Grantor established by [the state implementing agency]
Section 4. Payment for [Corrective Action
and/or Third-Party Liability Claims]
The Trustee shall make payments from the
Fund as [the Director of the implementing
agency] shall direct, in writing, to provide
for the payment of the costs of [insert: taking corrective action and/or compensating
third parties for bodily injury and property
damage caused by either sudden accidental releases or nonsudden accidental releases or accidental releases] arising
from operating the tanks covered by the financial assurance mechanism identified in
this Agreement.
The Fund may not be drawn upon to cover
any of the following:
(a) Any obligation of [insert owner or operator] under a workers compensation, disability benefits, or unemployment compensation law or other similar law;
(b) Bodily injury to an employee of [insert
owner or operator] arising from, and in the
course of employment by [insert owner or
operator];
(c) Bodily injury or property damage arising from the ownership, maintenance, use, or
entrustment to others of any aircraft, motor
vehicle, or watercraft;
(d) Property damage to any property
owned, rented, loaned to, in the care, cus-

tody, or control of, or occupied by [insert

owner or operator] that is not the direct result of a release from a petroleum underground storage tank;
(e) Bodily injury or property damage for
which [insert owner or operator] is obligated
to pay damages by reason of the assumption
of liability in a contract or agreement other
than a contract or agreement entered into to
meet the requirements of 40 CFR 280.93.
The Trustee shall reimburse the Grantor,
or other persons as specified by [the Director], from the Fund for corrective action expenditures
and/or
third-party
liability
claims in such amounts as [the Director]
shall direct in writing. In addition, the
Trustee shall refund to the Grantor such
amounts as [the Director] specifies in writing. Upon refund, such funds shall no longer
constitute part of the Fund as defined herein.
Section 5. Payments Comprising the Fund
Payments made to the Trustee for the
Fund shall consist of cash and securities acceptable to the Trustee.
Section 6. Trustee Management
The Trustee shall invest and reinvest the
principal and income of the Fund and keep
the Fund invested as a single fund, without
distinction between principal and income, in
accordance with general investment policies
and guidelines which the Grantor may communicate in writing to the Trustee from
time to time, subject, however, to the provisions of this Section. In investing, reinvesting, exchanging, selling, and managing the
Fund, the Trustee shall discharge his duties
with respect to the trust fund solely in the
interest of the beneficiaries and with the
care, skill, prudence, and diligence under the
circumstances then prevailing which persons
of prudence, acting in a like capacity and familiar with such matters, would use in the
conduct of an enterprise of a like character
and with like aims; except that:
(i) Securities or other obligations of the
Grantor, or any other owner or operator of
the tanks, or any of their affiliates as defined in the Investment Company Act of 1940,
as amended, 15 U.S.C. 80a2(a), shall not be
acquired or held, unless they are securities
or other obligations of the federal or a state
government;
(ii) The Trustee is authorized to invest the
Fund in time or demand deposits of the
Trustee, to the extent insured by an agency
of the federal or state government; and
(iii) The Trustee is authorized to hold cash
awaiting
investment
or
distribution
uninvested for a reasonable time and without liability for the payment of interest
thereon.

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40 CFR Ch. I (7198 Edition)

Section 7. Commingling and Investment

The Trustee is expressly authorized in its
discretion:
(a) To transfer from time to time any or
all of the assets of the Fund to any common,
commingled, or collective trust fund created
by the Trustee in which the Fund is eligible
to participate, subject to all of the provisions thereof, to be commingled with the assets of other trusts participating therein;
and
(b) To purchase shares in any investment
company registered under the Investment
Company Act of 1940, 15 U.S.C. 80a1 et seq.,
including one which may be created, managed, underwritten, or to which investment
advice is rendered or the shares of which are
sold by the Trustee. The Trustee may vote
such shares in its discretion.
Section 8. Express Powers of Trustee
Without in any way limiting the powers
and discretions conferred upon the Trustee
by the other provisions of this Agreement or
by law, the Trustee is expressly authorized
and empowered:
(a) To sell, exchange, convey, transfer, or
otherwise dispose of any property held by it,
by public or private sale. No person dealing
with the Trustee shall be bound to see to the
application of the purchase money or to inquire into the validity or expediency of any
such sale or other disposition;
(b) To make, execute, acknowledge, and deliver any and all documents of transfer and
conveyance and any and all other instruments that may be necessary or appropriate
to carry out the powers herein granted;
(c) To register any securities held in the
Fund in its own name or in the name of a
nominee and to hold any security in bearer
form or in book entry, or to combine certificates representing such securities with certificates of the same issue held by the Trustee in other fiduciary capacities, or to deposit
or arrange for the deposit of such securities
in a qualified central depository even
though, when so deposited, such securities
may be merged and held in bulk in the name
of the nominee of such depository with other
securities deposited therein by another person, or to deposit or arrange for the deposit
of any securities issued by the United States
Government, or any agency or instrumentality thereof, with a Federal Reserve bank, but
the books and records of the Trustee shall at
all times show that all such securities are
part of the Fund;
(d) To deposit any cash in the Fund in interest-bearing accounts maintained or savings certificates issued by the Trustee, in its
separate corporate capacity, or in any other
banking institution affiliated with the
Trustee, to the extent insured by an agency
of the federal or state government; and

(e) To compromise or otherwise adjust all

claims in favor of or against the Fund.
Section 9. Taxes and Expenses
All taxes of any kind that may be assessed
or levied against or in respect of the Fund
and all brokerage commissions incurred by
the Fund shall be paid from the Fund. All
other expenses incurred by the Trustee in
connection with the administration of this
Trust, including fees for legal services rendered to the Trustee, the compensation of
the Trustee to the extent not paid directly
by the Grantor, and all other proper charges
and disbursements of the Trustee shall be
paid from the Fund.
Section 10. Advice of Counsel
The Trustee may from time to time consult with counsel, who may be counsel to the
Grantor, with respect to any questions arising as to the construction of this Agreement
or any action to be taken hereunder. The
Trustee shall be fully protected, to the extent permitted by law, in acting upon the advice of counsel.
Section 11. Trustee Compensation
The Trustee shall be entitled to reasonable
compensation for its services as agreed upon
in writing from time to time with the Grantor.
Section 12. Successor Trustee
The Trustee may resign or the Grantor
may replace the Trustee, but such resignation or replacement shall not be effective
until the Grantor has appointed a successor
trustee and this successor accepts the appointment. The successor trustee shall have
the same powers and duties as those conferred upon the Trustee hereunder. Upon the
successor trustees acceptance of the appointment, the Trustee shall assign, transfer, and pay over to the successor trustee the
funds and properties then constituting the
Fund. If for any reason the Grantor cannot
or does not act in the event of the resignation of the Trustee, the Trustee may apply
to a court of competent jurisdiction for the
appointment of a successor trustee or for instructions. The successor trustee shall specify the date on which it assumes administration of the trust in writing sent to the
Grantor and the present Trustee by certified
mail 10 days before such change becomes effective. Any expenses incurred by the Trustee as a result of any of the acts contemplated by this Section shall be paid as
provided in Section 9.
Section 13. Instructions to the Trustee
All orders, requests, and instructions by
the Grantor to the Trustee shall be in writing, signed by such persons as are designated
in the attached Schedule B or such other

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280.103

designees as the Grantor may designate by

amendment to Schedule B. The Trustee shall
be fully protected in acting without inquiry
in accordance with the Grantors orders, requests, and instructions. All orders, requests, and instructions by [the Director of
the implementing agency] to the Trustee
shall be in writing, signed by [the Director],
and the Trustee shall act and shall be fully
protected in acting in accordance with such
orders, requests, and instructions. The
Trustee shall have the right to assume, in
the absence of written notice to the contrary, that no event constituting a change or
a termination of the authority of any person
to act on behalf of the Grantor or [the director] hereunder has occurred. The Trustee
shall have no duty to act in the absence of
such orders, requests, and instructions from
the Grantor and/or [the Director], except as
provided for herein.
Section 14. Amendment of Agreement
This Agreement may be amended by an instrument in writing executed by the Grantor
and the Trustee, or by the Trustee and [the
Director of the implementing agency] if the
Grantor ceases to exist.
Section 15. Irrevocability and Termination
Subject to the right of the parties to
amend this Agreement as provided in Section 14, this Trust shall be irrevocable and
shall continue until terminated at the written direction of the Grantor and the Trustee,
or by the Trustee and [the Director of the
implementing agency], if the Grantor ceases
to exist. Upon termination of the Trust, all
remaining trust property, less final trust administration expenses, shall be delivered to
the Grantor.
Section 16. Immunity and Indemnification
The Trustee shall not incur personal liability of any nature in connection with any act
or omission, made in good faith, in the administration of this Trust, or in carrying out
any directions by the Grantor or [the Director of the implementing agency] issued in
accordance with this Agreement. The Trustee shall be indemnified and saved harmless
by the Grantor, from and against any personal liability to which the Trustee may be
subjected by reason of any act or conduct in
its official capacity, including all expenses
reasonably incurred in its defense in the
event the Grantor fails to provide such defense.
Section 17. Choice of Law
This Agreement shall be administered,
construed, and enforced according to the
laws of the state of [insert name of state], or
the Comptroller of the Currency in the case
of National Association banks.

Section 18. Interpretation

As used in this Agreement, words in the
singular include the plural and words in the
plural include the singular. The descriptive
headings for each section of this Agreement
shall not affect the interpretation or the
legal efficacy of this Agreement.
In Witness whereof the parties have caused
this Agreement to be executed by their respective officers duly authorized and their
corporate seals (if applicable) to be hereunto
affixed and attested as of the date first above
written. The parties below certify that the
wording of this Agreement is identical to the
wording specified in 40 CFR 280.103(b)(1) as
such regulations were constituted on the
date written above.
[Signature of Grantor]
[Name of the Grantor]
[Title]
Attest:
[Signature of Trustee]
[Name of the Trustee]
[Title]
[Seal]
[Signature of Witness]
[Name of the Witness]
[Title]
[Seal]

(2) The standby trust agreement, or

trust agreement must be accompanied
by a formal certification of acknowledgement similar to the following.
State requirements may differ on the
proper content of this acknowledgment.
State of
County of
On this [date], before me personally came
[owner or operator] to me known, who, being
by me duly sworn, did depose and say that
she/he resides at [address], that she/he is
[title] of [corporation], the corporation described in and which executed the above instrument; that she/he knows the seal of said
corporation; that the seal affixed to such instrument is such corporate seal; that it was
so affixed by order of the Board of Directors
of said corporation; and that she/he signed
her/his name thereto by like order.
[Signature of Notary Public]
[Name of Notary Public]

(c) The Director of the implementing

agency will instruct the trustee to refund the balance of the standby trust
fund to the provider of financial assurance if the Director determines that no
additional corrective action costs or
third-party liability claims will occur
as a result of a release covered by the
financial assurance mechanism for

487

 280.104

40 CFR Ch. I (7198 Edition)

which the standby trust fund was established.

(d) An owner or operator may establish one trust fund as the depository
mechanism for all funds assured in
compliance with this rule.
[53 FR 43370, Oct. 26, 1988; 53 FR 51274, Dec.
21, 1988]

280.104 Local government bond rating test.

(a) A general purpose local government owner or operator and/or local
government serving as a guarantor
may satisfy the requirements of 280.93
by having a currently outstanding
issue or issues of general obligation
bonds of $1 million or more, excluding
refunded obligations, with a Moodys
rating of Aaa, Aa, A, or Baa, or a
Standard & Poors rating of AAA, AA,
A, or BBB. Where a local government
has multiple outstanding issues, or
where a local governments bonds are
rated by both Moodys and Standard
and Poors, the lowest rating must be
used to determine eligibility. Bonds
that are backed by credit enhancement
other than municipal bond insurance
may not be considered in determining
the amount of applicable bonds outstanding.
(b) A local government owner or operator or local government serving as a
guarantor that is not a general-purpose
local government and does not have
the legal authority to issue general obligation bonds may satisfy the requirements of 280.93 by having a currently
outstanding issue or issues of revenue
bonds of $1 million or more, excluding
refunded issues and by also having a
Moodys rating of Aaa, A, A, or Baa, or
a Standard & Poors rating of AAA,
AA, A, or BBB as the lowest rating for
any rated revenue bond issued by the
local government. Where bonds are
Issue date

Maturity date

rated by both Moodys and Standard &

Poors, the lower rating for each bond
must be used to determine eligibility.
Bonds that are backed by credit enhancement may not be considered in
determining the amount of applicable
bonds outstanding.
(c) The local government owner or
operator and/or guarantor must maintain a copy of its bond rating published
within the last 12 months by Moodys
or Standard & Poors.
(d) To demonstrate that it meets the
local government bond rating test, the
chief financial officer of a general purpose local government owner or operator and/or guarantor must sign a letter
worded exactly as follows, except that
the instructions in brackets are to be
replaced by the relevant information
and the brackets deleted:
LETTER FROM CHIEF FINANCIAL OFFICER
I am the chief financial officer of [insert:
name and address of local government owner
or operator, or guarantor]. This letter is in
support of the use of the bond rating test to
demonstrate financial responsibility for [insert: taking corrective action and/or
compensating third parties for bodily injury and property damage] caused by [insert: sudden accidental releases and/or
nonsudden accidental releases] in the
amount of at least [insert: dollar amount]
per occurrence and [insert: dollar amount]
annual aggregate arising from operating (an)
underground storage tank(s).
Underground storage tanks at the following facilities are assured by this bond rating
test: [List for each facility: the name and address of the facility where tanks are assured
by the bond rating test].
The details of the issue date, maturity,
outstanding amount, bond rating, and bond
rating agency of all outstanding bond issues
that are being used by [name of local government owner or operator, or guarantor] to
demonstrate financial responsibility are as
follows: [complete table]

Outstanding amount

Bond rating

Rating agency
[Moodys or Standard &
Poors]

The total outstanding obligation of [insert

amount], excluding refunded bond issues, exceeds the minimum amount of $1 million. All
outstanding general obligation bonds issued
by this government that have been rated by
Moodys or Standard & Poors are rated as at

least investment grade (Moodys Baa or

Standard & Poors BBB) based on the most
recent ratings published within the last 12
months. Neither rating service has provided
notification within the last 12 months of

488

Environmental Protection Agency

280.104

downgrading of bond ratings below investment grade or of withdrawal of bond rating

other than for repayment of outstanding
bond issues.
I hereby certify that the wording of this
letter is identical to the wording specified in
40 CFR Part 280.104(d) as such regulations
were constituted on the date shown immediately below.
[Date]
[Signature]
[Name]
[Title]

(e) To demonstrate that it meets the

local government bond rating test, the
chief financial officer of local government owner or operator and/or guarantor other than a general purpose government must sign a letter worded exactly as follows, except that the instructions in brackets are to be replaced by the relevant information and
the brackets deleted:
LETTER FROM CHIEF FINANCIAL OFFICER
I am the chief financial officer of [insert:
name and address of local government owner
Issue date

Maturity date

or operator, or guarantor]. This letter is in

support of the use of the bond rating test to
demonstrate financial responsibility for [insert: taking corrective action and/or
compensating third parties for bodily injury and property damage] caused by [insert : sudden accidental releases and/or
nonsudden accidental releases] in the
amount of at least [insert: dollar amount]
per occurrence and [insert: dollar amount]
annual aggregate arising from operating (an)
underground storage tank(s). This local government is not organized to provide general
governmental services and does not have the
legal authority under state law or constitutional provisions to issue general obligation
debt.
Underground storage tanks at the following facilities are assured by this bond rating
test: [List for each facility: the name and address of the facility where tanks are assured
by the bond rating test].
The details of the issue date, maturity,
outstanding amount, bond rating, and bond
rating agency of all outstanding revenue
bond issues that are being used by [name of
local government owner or operator, or guarantor] to demonstrate financial responsibility are as follows: [complete table]

Outstanding amount

Bond rating

Rating agency
[Moodys or Standard &
Poors]

The total outstanding obligation of [insert

amount], excluding refunded bond issues, exceeds the minimum amount of $1 million. All
outstanding revenue bonds issued by this
government that have been rated by Moodys
or Standard & Poors are rated as at least investment grade (Moodys Baa or Standard &
Poors BBB) based on the most recent ratings published within the last 12 months.
The revenue bonds listed are not backed by
third-party credit enhancement or are insured by a municipal bond insurance company. Neither rating service has provided notification within the last 12 months of downgrading of bond ratings below investment
grade or of withdrawal of bond rating other
than for repayment of outstanding bond
issues.
I hereby certify that the wording of this
letter is identical to the wording specified in
40 CFR part 280.104(e) as such regulations
were constituted on the date shown immediately below.
[Date]
[Signature]
[Name]
[Title]

condition at any time from the local

government owner or operator, and/or
local government guarantor. If the Director finds, on the basis of such reports or other information, that the
local government owner or operator,
and/or guarantor, no longer meets the
local government bond rating test requirements of 280.104, the local government owner or operator must obtain alternative coverage within 30
days after notification of such a finding.
(g) If a local government owner or operator using the bond rating test to
provide financial assurance finds that
it no longer meets the bond rating test
requirements, the local government
owner or operator must obtain alternative coverage within 150 days of the
change in status.
[58 FR 9053, Feb. 18, 1993]

(f) The Director of the implementing

agency may require reports of financial

489

 280.105

40 CFR Ch. I (7198 Edition)

280.105 Local government financial

test.
(a) A local government owner or operator may satisfy the requirements of
280.93 by passing the financial test
specified in this section. To be eligible
to use the financial test, the local government owner or operator must have
the ability and authority to assess and
levy taxes or to freely establish fees
and charges. To pass the local government financial test, the owner or operator must meet the criteria of paragraphs (b)(2) and (b)(3) of this section
based on year-end financial statements
for the latest completed fiscal year.
(b)(1) The local government owner or
operator must have the following information available, as shown in the yearend financial statements for the latest
completed fiscal year:
(i) Total revenues: Consists of the sum
of general fund operating and non-operating revenues including net local
taxes, licenses and permits, fines and
forfeitures, revenues from use of money
and property, charges for services, investment earnings, sales (property,
publications, etc.), intergovernmental
revenues (restricted and unrestricted),
and total revenues from all other governmental funds including enterprise,
debt service, capital projects, and special revenues, but excluding revenues
to funds held in a trust or agency capacity. For purposes of this test, the
calculation of total revenues shall exclude all transfers between funds under
the direct control of the local government
using
the
financial
test
(interfund transfers), liquidation of investments, and issuance of debt.
(ii) Total expenditures: Consists of the
sum of general fund operating and nonoperating expenditures including public safety, public utilities, transportation, public works, environmental
protection, cultural and recreational,
community development, revenue sharing, employee benefits and compensation, office management, planning and
zoning, capital projects, interest payments on debt, payments for retirement of debt principal, and total expenditures from all other governmental
funds including enterprise, debt service, capital projects, and special revenues. For purposes of this test, the calculation of total expenditures shall ex-

clude all transfers between funds under

the direct control of the local government
using
the
financial
test
(interfund transfers).
(iii) Local revenues: Consists of total
revenues (as defined in paragraph
(b)(1)(i) of this section) minus the sum
of all transfers from other governmental entities, including all monies
received from Federal, state, or local
government sources.
(iv) Debt service: Consists of the sum
of all interest and principal payments
on all long-term credit obligations and
all interest-bearing short-term credit
obligations. Includes interest and principal payments on general obligation
bonds, revenue bonds, notes, mortgages, judgments, and interest bearing
warrants. Excludes payments on noninterest-bearing
short-term
obligations, interfund obligations, amounts
owed in a trust or agency capacity, and
advances and contingent loans from
other governments.
(v) Total funds: Consists of the sum of
cash and investment securities from all
funds, including general, enterprise,
debt service, capital projects, and special revenue funds, but excluding employee retirement funds, at the end of
the local governments financial reporting year. Includes Federal securities, Federal agency securities, state
and local government securities, and
other securities such as bonds, notes
and mortgages. For purposes of this
test, the calculation of total funds
shall exclude agency funds, private
trust funds, accounts receivable, value
of real property, and other non-security assets.
(vi) Population consists of the number
of people in the area served by the
local government.
(2) The local governments year-end
financial statements, if independently
audited, cannot include an adverse
auditors opinion or a disclaimer of
opinion. The local government cannot
have outstanding issues of general obligation or revenue bonds that are rated
as less than investment grade.
(3) The local government owner or
operator must have a letter signed by
the chief financial officer worded as
specified in paragraph (c) of this section.

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Environmental Protection Agency

280.105

(c) To demonstrate that it meets the

financial test under paragraph (b) of
this section, the chief financial officer
of the local government owner or operator, must sign, within 120 days of the
close of each financial reporting year,
as defined by the twelve-month period
for which financial statements used to
support the financial test are prepared,
a letter worded exactly as follows, except that the instructions in brackets
are to be replaced by the relevant information and the brackets deleted:
LETTER FROM CHIEF FINANCIAL OFFICER
I am the chief financial officer of [insert:
name and address of the owner or operator].
This letter is in support of the use of the
local government financial test to demonstrate financial responsibility for [insert:
taking corrective action and/or compensating third parties for bodily injury and
property damage] caused by [insert: sudden accidental releases and/or nonsudden
accidental releases] in the amount of at
least [insert: dollar amount] per occurrence
and [insert: dollar amount] annual aggregate
arising from operating [an] underground
storage tank[s].
Underground storage tanks at the following facilities are assured by this financial
test [List for each facility: the name and address of the facility where tanks assured by
this financial test are located. If separate
mechanisms or combinations of mechanisms
are being used to assure any of the tanks at
this facility, list each tank assured by this
financial test by the tank identification
number provided in the notification submitted pursuant to 40 CFR Part 280.22 or the corresponding state requirements.]
This owner or operator has not received an
adverse opinion, or a disclaimer of opinion
from an independent auditor on its financial
statements for the latest completed fiscal
year. Any outstanding issues of general obligation or revenue bonds, if rated, have a
Moodys rating of Aaa, Aa, A, or Baa or a
Standard and Poors rating of AAA, AA, A,
or BBB; if rated by both firms, the bonds
have a Moodys rating of Aaa, Aa, A, or Baa
and a Standard and Poors rating of AAA,
AA, A, or BBB.

funds including enterprise, debt service,

capital projects, and special revenues,
but excluding revenues to funds held in a
trust or agency capacity.
b.
Subtract
interfund
transfers
(dollars)
c. Total Revenues (dollars)
2. Total Expenditures
a. Expenditures (dollars)
Value consists of the sum of general fund
operating and non-operating expenditures including interest payments on
debt, payments for retirement of debt
principal, and total expenditures from all
other governmental funds including enterprise, debt service, capital projects,
and special revenues.
b.
Subtract
interfund
transfers
(dollars)
c. Total Expenditures (dollars)
3. Local Revenues
a.

Total

Revenues

(from

1c)

(dollars)

b. Subtract total intergovernmental transfers (dollars)

c. Local Revenues (dollars)
4. Debt Service
a.

Interest
and
fiscal
charges
lars)
b. Add debt retirement (dollars)
c. Total Debt Service (dollars)

(dol-

5. Total Funds (Dollars)

(Sum of amounts held as cash and investment securities from all funds, excluding
amounts held for employee retirement
funds, agency funds, and trust funds)
6. Population (Persons)
Part II: Application of Test
7. Total Revenues to Population
a. Total Revenues (from 1c)
b. Population (from 6)
c. Divide 7a by 7b
d. Subtract 417
e. Divide by 5,212
f. Multiply by 4.095
8. Total Expenses to Population

1. Total Revenues

a. Total Expenses (from 2c)

b. Population (from 6)
c. Divide 8a by 8b
d. Subtract 524
e. Divide by 5,401
f. Multiply by 4.095

a. Revenues (dollars)
Value of revenues excludes liquidation of
investments and issuance of debt. Value
includes all general fund operating and
non-operating revenues, as well as all
revenues from all other governmental

a. Local Revenues (from 3c)

b. Total Revenues (from 1c)
c. Divide 9a by 9b
d. Subtract .695

WORKSHEET FOR MUNICIPAL FINANCIAL TEST

Part I: Basic Information

9. Local Revenues to Total Revenues

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 280.106

40 CFR Ch. I (7198 Edition)

e. Divide by .205
f. Multiply by 2.840

(d) If a local government owner or operator using the test to provide financial assurance finds that it no longer
meets the requirements of the financial test based on the year-end financial statements, the owner or operator
must obtain alternative coverage within 150 days of the end of the year for
which financial statements have been
prepared.
(e) The Director of the implementing
agency may require reports of financial
condition at any time from the local
government owner or operator. If the
Director finds, on the basis of such reports or other information, that the
local government owner or operator no
longer meets the financial test requirements of 280.105 (b) and (c), the owner
or operator must obtain alternate coverage within 30 days after notification
of such a finding.
(f) If the local government owner or
operator fails to obtain alternate assurance within 150 days of finding that
it no longer meets the requirements of
the financial test based on the year-end
financial statements or within 30 days
of notification by the Director of the
implementing agency that it no longer
meets the requirements of the financial test, the owner or operator must
notify the Director of such failure
within 10 days.

10. Debt Service to Population

a. Debt Service (from 4d)
b. Population (from 6)
c. Divide 10a by 10b
d. Subtract 51
e. Divide by 1,038
f. Multiply by 1.866
11. Debt Service to Total Revenues
a. Debt Service (from 4d)
b. Total Revenues (from 1c)
c. Divide 11a by 11b
d. Subtract .068
e. Divide by .259
f. Multiply by 3.533
12. Total Revenues to Total Expenses
a. Total Revenues (from 1c)
b. Total Expenses (from 2c)
c. Divide 12a by 12b
d. Subtract .910
e. Divide by .899
f. Multiply by 3.458
13. Funds Balance to Total Revenues
a. Total Funds (from 5)
b. Total Revenues (from 1c)
c. Divide 13a by 13b
d. Subtract .891
e. Divide by 9.156
f. Multiply by 3.270
14. Funds Balance to Total Expenses
a. Total Funds (from 5)
b. Total Expenses (from 2c)
c. Divide 14a by 14b
d. Subtract .866
e. Divide by 6.409
f. Multiply by 3.270

[58 FR 9054, Feb. 18, 1993]

15. Total Funds to Population

a. Total Funds (from 5)
b. Population (from 6)
c. Divide 15a by 15b
d. Subtract 270
e. Divide by 4,548
f. Multiply by 1.866
16. Add 7f + 8f + 9f + 10f + 11f + 12f + 13f + 14f
+ 15f + 4.937
I hereby certify that the financial index
shown on line 16 of the worksheet is greater
than zero and that the wording of this letter
is identical to the wording specified in 40
CFR part 280.105(c) as such regulations were
constituted on the date shown immediately
below.
[Date]
[Signature]
[Name]
[Title]

280.106 Local government guarantee.

(a) A local government owner or operator may satisfy the requirements of
280.93 by obtaining a guarantee that
conforms to the requirements of this
section. The guarantor must be either
the state in which the local government owner or operator is located or a
local government having a substantial governmental relationship with
the owner and operator and issuing the
guarantee as an act incident to that relationship. A local government acting
as the guarantor must:
(1) demonstrate that it meets the
bond rating test requirement of
280.104 and deliver a copy of the chief
financial officers letter as contained
in 280.104(c) to the local government
owner or operator; or
(2) demonstrate that it meets the
worksheet test requirements of 280.105
and deliver a copy of the chief financial

492

Environmental Protection Agency

280.106

officers
letter
as
contained
in
280.105(c) to the local government
owner or operator; or
(3) demonstrate that it meets the
local government fund requirements of
280.107(a), 280.107(b), or 280.107(c)
and deliver a copy of the chief financial
officers letter as contained in 280.107
to the local government owner or operator.
(b) If the local government guarantor
is unable to demonstrate financial assurance under any of 280.104, 280.105,
280.107(a), 280.107(b), or 280.107(c), at the
end of the financial reporting year, the
guarantor shall send by certified mail,
before cancellation or non-renewal of
the guarantee, notice to the owner or
operator. The guarantee will terminate
no less than 120 days after the date the
owner or operator receives the notification, as evidenced by the return receipt. The owner or operator must obtain alternative coverage as specified
in 280.114(c).
(c) The guarantee agreement must be
worded as specified in paragraph (d) or
(e) of this section, depending on which
of the following alternative guarantee
arrangements is selected:
(1) If, in the default or incapacity of
the owner or operator, the guarantor
guarantees to fund a standby trust as
directed by the Director of the implementing agency, the guarantee shall be
worded as specified in paragraph (d) of
this section.
(2) If, in the default or incapacity of
the owner or operator, the guarantor
guarantees to make payments as directed by the Director of the implementing agency for taking corrective
action or compensating third parties
for bodily injury and property damage,
the guarantee shall be worded as specified in paragraph (e) of this section.
(d) If the guarantor is a state, the
local government guarantee with
standby trust must be worded exactly
as follows, except that instructions in
brackets are to be replaced with relevant information and the brackets deleted:
Local Government Guarantee With Standby
Trust Made by a State
Guarantee made this [date] by [name of
state], herein referred to as guarantor, to
[the state implementing agency] and to any

and all third parties, and obliges, on behalf

of [local government owner or operator].
Recitals
(1) Guarantor is a state.
(2) [Local government owner or operator]
owns or operates the following underground
storage tank(s) covered by this guarantee:
[List the number of tanks at each facility
and the name(s) and address(es) of the facility(ies) where the tanks are located. If more
than one instrument is used to assure different tanks at any one facility, for each
tank covered by this instrument, list the
tank identification number provided in the
notification submitted pursuant to 40 CFR
part 280 or the corresponding state requirement, and the name and address of the facility.] This guarantee satisfies 40 CFR part
280, subpart H requirements for assuring
funding for [insert: taking corrective action and/or compensating third parties for
bodily injury and property damage caused
by either sudden accidental releases or
nonsudden accidental releases or accidental releases; if coverage is different for
different tanks or locations, indicate the
type of coverage applicable to each tank or
location] arising from operating the aboveidentified underground storage tank(s) in the
amount of [insert dollar amount] per occurrence and [insert dollar amount] annual aggregate.
(3) Guarantor guarantees to [implementing
agency] and to any and all third parties that:
In the event that [local government owner
or operator] fails to provide alternative coverage within 60 days after receipt of a notice
of cancellation of this guarantee and the [Director of the implementing agency] has determined or suspects that a release has occurred at an underground storage tank covered by this guarantee, the guarantor, upon
instructions from the [Director] shall fund a
standby trust fund in accordance with the
provisions of 40 CFR part 280.112, in an
amount not to exceed the coverage limits
specified above.
In the event that the [Director] determines
that [local government owner or operator]
has failed to perform corrective action for
releases arising out of the operation of the
above-identified tank(s) in accordance with
40 CFR part 280, subpart F, the guarantor
upon written instructions from the [Director] shall fund a standby trust fund in accordance with the provisions of 40 CFR part
280.112, in an amount not to exceed the coverage limits specified above.
If [owner or operator] fails to satisfy a
judgment or award based on a determination
of liability for bodily injury or property
damage to third parties caused by [sudden
and/or nonsudden] accidental releases
arising from the operation of the above-identified tank(s), or fails to pay an amount
agreed to in settlement of a claim arising

493

 280.106

40 CFR Ch. I (7198 Edition)

from or alleged to arise from such injury or

damage, the guarantor, upon written instructions from the [Director], shall fund a
standby trust in accordance with the provisions of 40 CFR part 280.112 to satisfy such
judgment(s), award(s), or settlement agreement(s) up to the limits of coverage specified
above.
(4) Guarantor agrees to notify [owner or
operator] by certified mail of a voluntary or
involuntary proceeding under Title 11 (Bankruptcy), U.S. Code naming guarantor as
debtor, within 10 days after commencement
of the proceeding.
(5) Guarantor agrees to remain bound
under this guarantee notwithstanding any
modification or alteration of any obligation
of [owner or operator] pursuant to 40 CFR
part 280.
(6) Guarantor agrees to remain bound
under this guarantee for so long as [local
government owner or operator] must comply
with the applicable financial responsibility
requirements of 40 CFR part 280, subpart H
for the above identified tank(s), except that
guarantor may cancel this guarantee by
sending notice by certified mail to [owner or
operator], such cancellation to become effective no earlier than 120 days after receipt of
such notice by [owner or operator], as evidenced by the return receipt.
(7) The guarantors obligation does not
apply to any of the following:
(a) Any obligation of [local government
owner or operator] under a workers compensation, disability benefits, or unemployment compensation law or other similar law;
(b) Bodily injury to an employee of [insert:
local government owner or operator] arising
from, and in the course of, employment by
[insert: local government owner or operator];
(c) Bodily injury or property damage arising from the ownership, maintenance, use, or
entrustment to others of any aircraft, motor
vehicle, or watercraft;
(d) Property damage to any property
owned, rented, loaded to, in the care, custody, or control of, or occupied by [insert:
local government owner or operator] that is
not the direct result of a release from a petroleum underground storage tank;
(e) Bodily damage or property damage for
which [insert owner or operator] is obligated
to pay damages by reason of the assumption
of liability in a contract or agreement other
than a contract or agreement entered into to
meet the requirements of 40 CFR part 280.93.
(8) Guarantor expressly waives notice of
acceptance of this guarantee by [the implementing agency], by any or all third parties,
or by [local government owner or operator],
I hereby certify that the wording of this
guarantee is identical to the wording specified in 40 CFR part 280.106(d) as such regulations were constituted on the effective date
shown immediately below.
Effective date:

[Name of guarantor]
[Authorized signature for guarantor]
[Name of person signing]
[Title of person signing]
Signature of witness or notary:
If the guarantor is a local government, the
local government guarantee with standby
trust must be worded exactly as follows, except that instructions in brackets are to be
replaced with relevant information and the
brackets deleted:
LOCAL GOVERNMENT GUARANTEE WITH STANDBY TRUST MADE BY A LOCAL GOVERNMENT
Guarantee made this [date] by [name of
guaranteeing entity], a local government organized under the laws of [name of state],
herein referred to as guarantor, to [the state
implementing agency] and to any and all
third parties, and obliges, on behalf of [local
government owner or operator].
Recitals
(1) Guarantor meets or exceeds [select one:
the local government bond rating test requirements of 40 CFR part 280.104, the local
government financial test requirements of 40
CFR part 280.105, or the local government
fund under 40 CFR part 280.107(a), 280.107(b),
or 280.107(c)].
(2) [Local government owner or operator]
owns or operates the following underground
storage tank(s) covered by this guarantee:
[List the number of tanks at each facility
and the name(s) and address(es) of the facility(ies) where the tanks are located. If more
than one instrument is used to assure different tanks at any one facility, for each
tank covered by this instrument, list the
tank identification number provided in the
notification submitted pursuant to 40 CFR
part 280 or the corresponding state requirement, and the name and address of the facility.] This guarantee satisfies 40 CFR part
280, subpart H requirements for assuring
funding for [insert: taking corrective action and/or compensating third parties for
bodily injury and property damage caused
by either sudden accidental releases or
nonsudden accidental releases or accidental releases; if coverage is different for
different tanks or locations, indicate the
type of coverage applicable to each tank or
location] arising from operating the aboveidentified underground storage tank(s) in the
amount of [insert dollar amount] per occurrence and [insert: dollar amount] annual aggregate.
(3) Incident to our substantial governmental relationship with [local government
owner or operator], guarantor guarantees to
[implementing agency] and to any and all
third parties that:

494

Environmental Protection Agency

280.106

In the event that [local government owner

or operator] fails to provide alternative coverage within 60 days after receipt of a notice
of cancellation of this guarantee and the [Director of the implementing agency] has determined or suspects that a release has occurred at an underground storage tank covered by this guarantee, the guarantor, upon
instructions from the [Director] shall fund a
standby trust fund in accordance with the
provisions of 40 CFR part 280.112, in an
amount not to exceed the coverage limits
specified above.
In the event that the [Director] determines
that [local government owner or operator]
has failed to perform corrective action for
releases arising out of the operation of the
above-identified tank(s) in accordance with
40 CFR part 280, subpart F, the guarantor
upon written instructions from the [Director] shall fund a standby trust fund in accordance with the provisions of 40 CFR part
280.112, in an amount not to exceed the coverage limits specified above.
If [owner or operator] fails to satisfy a
judgment or award based on a determination
of liability for bodily injury or property
damage to third parties caused by [sudden
and/or nonsudden] accidental releases
arising from the operation of the above-identified tank(s), or fails to pay an amount
agreed to in settlement of a claim arising
from or alleged to arise from such injury or
damage, the guarantor, upon written instructions from the [Director], shall fund a
standby trust in accordance with the provisions of 40 CFR part 280.112 to satisfy such
judgment(s), award(s), or settlement agreement(s) up to the limits of coverage specified
above.
(4) Guarantor agrees that, if at the end of
any fiscal year before cancellation of this
guarantee, the guarantor fails to meet or exceed the requirements of the financial responsibility mechanism specified in paragraph (1), guarantor shall send within 120
days of such failure, by certified mail, notice
to [local government owner or operator], as
evidenced by the return receipt.
(5) Guarantor agrees to notify [owner or
operator] by certified mail of a voluntary or
involuntary proceeding under Title 11 (Bankruptcy), U.S. Code naming guarantor as
debtor, within 10 days after commencement
of the proceeding.
(6) Guarantor agrees to remain bound
under this guarantee notwithstanding any
modification or alteration of any obligation
of [owner or operator] pursuant to 40 CFR
part 280.
(7) Guarantor agrees to remain bound
under this guarantee for so long as [local
government owner or operator] must comply
with the applicable financial responsibility
requirements of 40 CFR part 280, subpart H
for the above identified tank(s), except that
guarantor may cancel this guarantee by

sending notice by certified mail to [owner or

operator], such cancellation to become effective no earlier than 120 days after receipt of
such notice by [owner or operator], as evidenced by the return receipt.
(8) The guarantors obligation does not
apply to any of the following:
(a) Any obligation of [local government
owner or operator] under a workers compensation, disability benefits, or unemployment compensation law or other similar law;
(b) Bodily injury to an employee of [insert:
local government owner or operator] arising
from, and in the course of, employment by
[insert: local government owner or operator];
(c) Bodily injury or property damage arising from the ownership, maintenance, use, or
entrustment to others of any aircraft, motor
vehicle, or watercraft;
(d) Property damage to any property
owned, rented, loaned to, in the care, custody, or control of, or occupied by [insert:
local government owner or operator] that is
not the direct result of a release from a petroleum underground storage tank;
(e) Bodily damage or property damage for
which [insert: owner or operator] is obligated
to pay damages by reason of the assumption
of liability in a contract or agreement other
than a contract or agreement entered into to
meet the requirements of 40 CFR part 280.93.
(9) Guarantor expressly waives notice of
acceptance of this guarantee by [the implementing agency], by any or all third parties,
or by [local government owner or operator].
I hereby certify that the wording of this
guarantee is identical to the wording specified in 40 CFR part 280.106(d) as such regulations were constituted on the effective date
shown immediately below.
Effective date:
[Name of guarantor]
[Authorized signature for guarantor]
[Name of person signing]
[Title of person signing]
Signature of witness or notary:

(e) If the guarantor is a state, the

local government guarantee without
standby trust must be worded exactly
as follows, except that instructions in
brackets are to be replaced with relevant information and the brackets deleted:
LOCAL GOVERNMENT GUARANTEE WITHOUT
STANDBY TRUST MADE BY A STATE
Guarantee made this [date] by [name of
state], herein referred to as guarantor, to
[the state implementing agency] and to any
and all third parties, and obliges, on behalf
of [local government owner or operator].

495

Recitals
(1) Guarantor is a state.

 280.106

40 CFR Ch. I (7198 Edition)

(2) [Local government owner or operator]

owns or operates the following underground
storage tank(s) covered by this guarantee:
[List the number of tanks at each facility
and the name(s) and address(es) of the facility(ies) where the tanks are located. If more
than one instrument is used to assure different tanks at any one facility, for each
tank covered by this instrument, list the
tank identification number provided in the
notification submitted pursuant to 40 CFR
part 280 or the corresponding state requirement, and the name and address of the facility.] This guarantee satisfies 40 CFR part
280, subpart H requirements for assuring
funding for [insert: taking corrective action and/or compensating third parties for
bodily injury and property damage caused
by either sudden accidental releases or
nonsudden accidental releases or accidental releases; if coverage is different for
different tanks or locations, indicate the
type of coverage applicable to each tank or
location] arising from operating the aboveidentified underground storage tank(s) in the
amount of [insert: dollar amount] per occurrence and [insert: dollar amount] annual aggregate.
(3) Guarantor guarantees to [implementing
agency] and to any and all third parties and
obliges that:
In the event that [local government owner
or operator] fails to provide alternative coverage within 60 days after receipt of a notice
of cancellation of this guarantee and the [Director of the implementing agency] has determined or suspects that a release has occurred at an underground storage tank covered by this guarantee, the guarantor, upon
written instructions from the [Director]
shall make funds available to pay for corrective actions and compensate third parties for
bodily injury and property damage in an
amount not to exceed the coverage limits
specified above.
In the event that the [Director] determines
that [local government owner or operator]
has failed to perform corrective action for
releases arising out of the operation of the
above-identified tank(s) in accordance with
40 CFR part 280, subpart F, the guarantor
upon written instructions from the [Director] shall make funds available to pay for
corrective actions in an amount not to exceed the coverage limits specified above.
If [owner or operator] fails to satisfy a
judgment or award based on a determination
of liability for bodily injury or property
damage to third parties caused by [sudden
and/or nonsudden] accidental releases
arising from the operation of the above-identified tank(s), or fails to pay an amount
agreed to in settlement of a claim arising
from or alleged to arise from such injury or
damage, the guarantor, upon written instructions from the [Director], shall make
funds available to compensate third parties

for bodily injury and property damage in an

amount not to exceed the coverage limits
specified above.
(4) Guarantor agrees to notify [owner or
operator] by certified mail of a voluntary or
involuntary proceeding under Title 11 (Bankruptcy), U.S. Code naming guarantor as
debtor, within 10 days after commencement
of the proceeding.
(5) Guarantor agrees to remain bound
under this guarantee notwithstanding any
modification or alteration of any obligation
of [owner or operator] pursuant to 40 CFR
part 280.
(6) Guarantor agrees to remain bound
under this guarantee for so long as [local
government owner or operator] must comply
with the applicable financial responsibility
requirements of 40 CFR part 280, subpart H
for the above identified tank(s), except that
guarantor may cancel this guarantee by
sending notice by certified mail to [owner or
operator], such cancellation to become effective no earlier than 120 days after receipt of
such notice by [owner or operator], as evidenced by the return receipt. If notified of a
probable release, the guarantor agrees to remain bound to the terms of this guarantee
for all charges arising from the release, up to
the coverage limits specified above, notwithstanding the cancellation of the guarantee
with respect to future releases.
(7) The guarantors obligation does not
apply to any of the following:
(a) Any obligation of [local government
owner or operator] under a workers compensation disability benefits, or unemployment compensation law or other similar law;
(b) Bodily injury to an employee of [insert
local government owner or operator] arising
from, and in the course of, employment by
[insert: local government owner or operator];
(c) Bodily injury or property damage arising from the ownership, maintenance, use, or
entrustment to others of any aircraft, motor
vehicle, or watercraft;
(d) Property damage to any property
owned, rented, loaded to, in the care, custody, or control of, or occupied by [insert:
local government owner or operator] that is
not the direct result of a release from a petroleum underground storage tank;
(e) Bodily damage or property damage for
which [insert: owner or operator] is obligated
to pay damages by reason of the assumption
of liability in a contract or agreement other
than a contract or agreement entered into to
meet the requirements of 40 CFR part 280.93.
(8) Guarantor expressly waives notice of
acceptance of this guarantee by [the implementing agency], by any or all third parties,
or by [local government owner or operator].
I hereby certify that the wording of this
guarantee is identical to the wording specified in 40 CFR part 280.106(e) as such regulations were constituted on the effective date
shown immediately below.

496

Environmental Protection Agency

280.106

Effective date:
[Name of guarantor]
[Authorized signature for guarantor]
[Name of person signing]
[Title of person signing]
Signature of witness or notary:
If the guarantor is a local government, the
local government guarantee without standby
trust must be worded exactly as follows, except that instructions in brackets are to be
replaced with relevant information and the
brackets deleted:
LOCAL GOVERNMENT GUARANTEE WITHOUT
STANDBY TRUST MADE BY A LOCAL GOVERNMENT

Guarantee made this [date] by [name of

guaranteeing entity], a local government organized under the laws of [name of state],
herein referred to as guarantor, to [the state
implementing agency] and to any and all
third parties, and obliges, on behalf of [local
government owner or operator].
Recitals
(1) Guarantor meets or exceeds [select one:
the local government bond rating test requirements of 40 CFR part 280.104, the local
government financial test requirements of 40
part CFR 280.105, the local government fund
under 40 CFR part 280.107(a), 280.107(b), or
280.107(c).
(2) [Local government owner or operator]
owns or operates the following underground
storage tank(s) covered by this guarantee:
[List the number of tanks at each facility
and the name(s) and address(es) of the facility(ies) where the tanks are located. If more
than one instrument is used to assure different tanks at any one facility, for each
tank covered by this instrument, list the
tank identification number provided in the
notification submitted pursuant to 40 CFR
part 280 or the corresponding state requirement, and the name and address of the facility.] This guarantee satisfies 40 CFR part
280, subpart H requirements for assuring
funding for [insert: taking corrective action and/or compensating third parties for
bodily injury and property damage caused
by either sudden accidental releases or
nonsudden accidental releases or accidental releases; if coverage is different for
different tanks or locations, indicate the
type of coverage applicable to each tank or
location] arising from operating the aboveidentified underground storage tank(s) in the
amount of [insert: dollar amount] per occurrence and [insert: dollar amount] annual aggregate.
(3) Incident to our substantial governmental relationship with [local government
owner or operator], guarantor guarantees to
[implementing agency] and to any and all
third parties and obliges that:

In the event that [local government owner

or operator] fails to provide alternative coverage within 60 days after receipt of a notice
of cancellation of this guarantee and the [Director of the implementing agency] has determined or suspects that a release has occurred at an underground storage tank covered by this guarantee, the guarantor, upon
written instructions from the [Director]
shall make funds available to pay for corrective actions and compensate third parties for
bodily injury and property damage in an
amount not to exceed the coverage limits
specified above.
In the event that the [Director] determines
that [local government owner or operator]
has failed to perform corrective action for
releases arising out of the operation of the
above-identified tank(s) in accordance with
40 CFR part 280, subpart F, the guarantor
upon written instructions from the [Director] shall make funds available to pay for
corrective actions in an amount not to exceed the coverage limits specified above.
If [owner or operator] fails to satisfy a
judgment or award based on a determination
of liability for bodily injury or property
damage to third parties caused by [sudden
and/or nonsudden] accidental releases
arising from the operation of the above-identified tank(s), or fails to pay an amount
agreed to in settlement of a claim arising
from or alleged to arise from such injury or
damage, the guarantor, upon written instructions from the [Director], shall make
funds available to compensate third parties
for bodily injury and property damage in an
amount not to exceed the coverage limits
specified above.
(4) Guarantor agrees that if at the end of
any fiscal year before cancellation of this
guarantee, the guarantor fails to meet or exceed the requirements of the financial responsibility mechanism specified in paragraph (1), guarantor shall send within 120
days of such failure, by certified mail, notice
to [local government owner or operator], as
evidenced by the return receipt.
(5) Guarantor agrees to notify [owner or
operator] by certified mail of a voluntary or
involuntary proceeding under Title 11 (Bankruptcy), U.S. Code naming guarantor as
debtor, within 10 days after commencement
of the proceeding.
(6) Guarantor agrees to remain bound
under this guarantee notwithstanding any
modification or alteration of any obligation
of [owner or operator] pursuant to 40 CFR
part 280.
(7) Guarantor agrees to remain bound
under this guarantee for so long as [local
government owner or operator] must comply
with the applicable financial responsibility
requirements of 40 CFR part 280, subpart H
for the above identified tank(s), except that
guarantor may cancel this guarantee by
sending notice by certified mail to [owner or

497

 280.107

40 CFR Ch. I (7198 Edition)

operator], such cancellation to become effective no earlier than 120 days after receipt of
such notice by [owner or operator], as evidenced by the return receipt. If notified of a
probable release, the guarantor agrees to remain bound to the terms of this guarantee
for all charges arising from the release, up to
the coverage limits specified above, notwithstanding the cancellation of the guarantee
with respect to future releases.
(8) The guarantors obligation does not
apply to any of the following:
(a) Any obligation of [local government
owner or operator] under a workers compensation disability benefits, or unemployment compensation law or other similar law;
(b) Bodily injury to an employee of [insert:
local government owner or operator] arising
from, and in the course of, employment by
[insert: local government owner or operator];
(c) Bodily injury or property damage arising from the ownership, maintenance, use, or
entrustment to others of any aircraft, motor
vehicle, or watercraft;
(d) Property damage to any property
owned, rented, loaded to, in the care, custody, or control of, or occupied by [insert:
local government owner or operator] that is
not the direct result of a release from a petroleum underground storage tank;
(e) Bodily damage or property damage for
which [insert: owner or operator] is obligated
to pay damages by reason of the assumption
of liability in a contract or agreement other
than a contract or agreement entered into to
meet the requirements of 40 CFR part 280.93.
(9) Guarantor expressly waives notice of
acceptance of this guarantee by [the implementing agency], by any or all third parties,
or by [local government owner or operator],
I hereby certify that the wording of this
guarantee is identical to the wording specified in 40 CFR part 280.106(e) as such regulations were constituted on the effective date
shown immediately below.
Effective date:
[Name of guarantor]
[Authorized signature for guarantor]
[Name of person signing]
[Title of person signing]
Signature of witness or notary:
[58 FR 9056, Feb. 18, 1993]

280.107 Local government fund.

A local government owner or operator may satisfy the requirements of
280.93 by establishing a dedicated fund
account that conforms to the requirements of this section. Except as specified in paragraph (b), a dedicated fund
may not be commingled with other
funds or otherwise used in normal operations. A dedicated fund will be considered eligible if it meets one of the following requirements:

(a) The fund is dedicated by state

constitutional provision, or local government statute, charter, ordinance, or
order to pay for taking corrective action and for compensating third parties
for bodily injury and property damage
caused by accidental releases arising
from the operation of petroleum underground storage tanks and is funded for
the full amount of coverage required
under 280.93, or funded for part of the
required amount of coverage and used
in combination with other mechanism(s) that provide the remaining
coverage; or
(b) The fund is dedicated by state
constitutional provision, or local government statute, charter, ordinance, or
order as a contingency fund for general
emergencies, including taking corrective action and compensating third
parties for bodily injury and property
damage caused by accidental releases
arising from the operation of petroleum underground storage tanks, and
is funded for five times the full amount
of coverage required under 280.93, or
funded for part of the required amount
of coverage and used in combination
with other mechanism(s) that provide
the remaining coverage. If the fund is
funded for less than five times the
amount of coverage required under
280.93, the amount of financial responsibility demonstrated by the fund may
not exceed one-fifth the amount in the
fund; or
(c) The fund is dedicated by state
constitutional provision, or local government statute, charter, ordinance or
order to pay for taking corrective action and for compensating third parties
for bodily injury and property damage
caused by accidental releases arising
from the operation of petroleum underground storage tanks. A payment is
made to the fund once every year for
seven years until the fund is fully-funded. This seven year period is hereafter
referred to as the pay-in-period. The
amount of each payment must be determined by this formula:

498

TFCF
Y

Environmental Protection Agency

280.108

Where TF is the total required financial assurance for the owner or operator, CF is the current amount in the
fund, and Y is the number of years remaining in the pay-in-period, and;
(1) The local government owner or
operator has available bonding authority, approved through voter referendum (if such approval is necessary
prior to the issuance of bonds), for an
amount equal to the difference between
the required amount of coverage and
the amount held in the dedicated fund.
This bonding authority shall be available for taking corrective action and
for compensating third parties for bodily injury and property damage caused
by accidental releases arising from the
operation of petroleum underground
storage tanks, or
(2) The local government owner or
operator has a letter signed by the appropriate state attorney general stating that the use of the bonding authority will not increase the local governments debt beyond the legal debt ceilings established by the relevant state
laws. The letter must also state that
prior voter approval is not necessary
before use of the bonding authority.
(d) To demonstrate that it meets the
requirements of the local government
fund, the chief financial officer of the
local government owner or operator
and/or guarantor must sign a letter
worded exactly as follows, except that
the instructions in brackets are to be
replaced by the relevant information
and the brackets deleted:
LETTER FROM CHIEF FINANCIAL OFFICER
I am the chief financial officer of [insert:
name and address of local government owner
or operator, or guarantor]. This letter is in
support of the use of the local government
fund mechanism to demonstrate financial responsibility for [insert: taking corrective
action and/or compensating third parties
for bodily injury and property damage]
caused by [insert: sudden accidental releases and/or nonsudden accidental releases] in the amount of at least [insert:
dollar amount] per occurrence and [insert:
dollar amount] annual aggregate arising
from operating (an) underground storage
tank(s).
Underground storage tanks at the following facilities are assured by this local government fund mechanism: [List for each facility: the name and address of the facility
where tanks are assured by the local government fund].

[Insert: The local government fund is

funded for the full amount of coverage required under 280.93, or funded for part of the
required amount of coverage and used in
combination with other mechanism(s) that
provide the remaining coverage. or The
local government fund is funded for ten
times the full amount of coverage required
under 280.93, or funded for part of the required amount of coverage and used in combination with other mechanisms(s) that provide the remaining coverage, or A payment is made to the fund once every year for
seven years until the fund is fully-funded and
[name of local government owner or operator] has available bonding authority, approved through voter referendum, of an
amount equal to the difference between the
required amount of coverage and the amount
held in the dedicated fund or A payment is
made to the fund once every year for seven
years until the fund is fully-funded and I
have attached a letter signed by the State
Attorney General stating that (1) the use of
the bonding authority will not increase the
local governments debt beyond the legal
debt ceilings established by the relevant
state laws and (2) that prior voter approval
is not necessary before use of the bonding
authority].
The details of the local government fund
are as follows:
Amount in Fund (market value of fund at
close of last fiscal year):
[If fund balance is incrementally funded as
specified in 280.107(c), insert:
Amount added to fund in the most recently
completed fiscal year:
Number of years remaining in the pay-in period:
]
A copy of the state constitutional provision, or local government statute, charter,
ordinance or order dedicating the fund is attached.
I hereby certify that the wording of this
letter is identical to the wording specified in
40 CFR 280.107(d) as such regulations were
constituted on the date shown immediately
below.
[Date]
[Signature]
[Name]
[Title]
[58 FR 9059, Feb. 18, 1993]

280.108 Substitution of financial assurance mechanisms by owner or

operator.
(a) An owner or operator may substitute any alternate financial assurance mechanisms as specified in this
subpart, provided that at all times he
maintains an effective financial assurance mechanism or combination of

499

 280.109

40 CFR Ch. I (7198 Edition)

mechanisms that satisfies the requirements of 280.93.

(b) After obtaining alternate financial assurance as specified in this subpart, an owner or operator may cancel
a financial assurance mechanism by
providing notice to the provider of financial assurance.
[53 FR 43370, Oct. 26, 1988. Redesignated at 58
FR 9051, Feb. 18, 1993]

280.109 Cancellation or nonrenewal

by a provider of financial assurance.
(a) Except as otherwise provided, a
provider of financial assurance may
cancel or fail to renew an assurance
mechanism by sending a notice of termination by certified mail to the
owner or operator.
(1) Termination of a local government guarantee, a guarantee, a surety
bond, or a letter of credit may not
occur until 120 days after the date on
which the owner or operator receives
the notice of termination, as evidenced
by the return receipt.
(2) Termination of insurance or risk
retention coverage, except for non-payment or misrepresentation by the insured, or state-funded assurance may
not occur until 60 days after the date
on which the owner or operator receives the notice of termination, as
evidenced by the return receipt. Termination for non-payment of premium or
misrepresentation by the insured may
not occur until a minimum of 10 days
after the date on which the owner or
operator receives the notice of termination, as evidenced by the return receipt.
(b) If a provider of financial responsibility cancels or fails to renew for
reasons other than incapacity of the
provider as specified in 280.114, the
owner or operator must obtain alternate coverage as specified in this section within 60 days after receipt of the
notice of termination. If the owner or
operator fails to obtain alternate coverage within 60 days after receipt of
the notice of termination, the owner or
operator must notify the Director of
the implementing agency of such failure and submit:
(1) The name and address of the provider of financial assurance;

(2) The effective date of termination;

and
(3) The evidence of the financial assistance mechanism subject to the termination maintained in accordance
with 280.107(b).
[58 FR 9051, Feb. 18, 1993]

280.110 Reporting by owner or operator.

(a) An owner or operator must submit the appropriate forms listed in
280.111(b) documenting current evidence of financial responsibility to the
Director of the implementing agency:
(1) Within 30 days after the owner or
operator identifies a release from an
underground storage tank required to
be reported under 280.53 or 280.61;
(2) If the owner or operator fails to
obtain alternate coverage as required
by this subpart, within 30 days after
the owner or operator receives notice
of:
(i) Commencement of a voluntary or
involuntary proceeding under Title 11
(Bankruptcy), U.S. Code, naming a provider of financial assurance as a debtor,
(ii) Suspension or revocation of the
authority of a provider of financial assurance to issue a financial assurance
mechanism,
(iii) Failure of a guarantor to meet
the requirements of the financial test,
(iv) Other incapacity of a provider of
financial assurance; or
(3) As required by 280.95(g) and
280.109(b).
(b) An owner or operator must certify
compliance with the financial responsibility requirements of this part as
specified in the new tank notification
form when notifying the appropriate
state or local agency of the installation of a new underground storage tank
under 280.22.
(c) The Director of the Implementing
Agency may require an owner or operator to submit evidence of financial assurance as described in 280.111(b) or
other information relevant to compliance with this subpart at any time.
[58 FR 9051, Feb. 18, 1993]

280.111 Recordkeeping.
(a) Owners or operators must maintain evidence of all financial assurance

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Environmental Protection Agency

280.111

mechanisms used to demonstrate financial responsibility under this subpart for an underground storage tank
until released from the requirements of
this subpart under 208.113. An owner
or operator must maintain such evidence at the underground storage tank
site or the owners or operators place
of work. Records maintained off-site
must be made available upon request of
the implementing agency.
(b) An owner or operator must maintain the following types of evidence of
financial responsibility:
(1) An owner or operator using an assurance mechanism specified in 280.95
through 280.100 or 280.102 or 280.104
through 280.107 must maintain a copy
of the instrument worded as specified.
(2) An owner or operator using a financial test or guarantee, or a local
government financial test or a local
government guarantee supported by
the local government financial test
must maintain a copy of the chief financial officers letter based on yearend financial statements for the most
recent completed financial reporting
year. Such evidence must be on file no
later than 120 days after the close of
the financial reporting year.
(3) An owner or operator using a
guarantee, surety bond, or letter of
credit must maintain a copy of the
signed standby trust fund agreement
and copies of any amendments to the
agreement.
(4) A local government owner or operator using a local government guarantee under 280.106(d) must maintain a
copy of the signed standby trust fund
agreement and copies of any amendments to the agreement.
(5) A local government owner or operator using the local government bond
rating test under 280.104 must maintain a copy of its bond rating published
within the last twelve months by
Moodys or Standard & Poors.
(6) A local government owner or operator using the local government guarantee under 280.106, where the guarantors demonstration of financial responsibility relies on the bond rating
test under 280.104 must maintain a
copy of the guarantors bond rating
published within the last twelve
months by Moodys or Standard &
Poors.

(7) An owner or operator using an insurance policy or risk retention group

coverage must maintain a copy of the
signed insurance policy or risk retention group coverage policy, with the
endorsement or certificate of insurance
and any amendments to the agreements.
(8) An owner or operator covered by a
state fund or other state assurance
must maintain on file a copy of any
evidence of coverage supplied by or required by the state under 280.101(d).
(9) An owner or operator using a local
government fund under 280.107 must
maintain the following documents:
(i) A copy of the state constitutional
provision or local government statute,
charter, ordinance, or order dedicating
the fund, and
(ii) Year-end financial statements for
the most recent completed financial reporting year showing the amount in
the fund. If the fund is established
under 280.107(a)(3) using incremental
funding backed by bonding authority,
the financial statements must show
the previous years balance, the
amount of funding during the year, and
the closing balance in the fund.
(iii) If the fund is established under
280.107(a)(3) using incremental funding
backed by bonding authority, the
owner or operator must also maintain
documentation of the required bonding
authority, including either the results
of
a
voter
referendum
(under
280.107(a)(3)(i)), or attestation by the
State Attorney General as specified
under 280.107(a)(3)(ii).
(10) A local government owner or operator using the local government
guarantee supported by the local government fund must maintain a copy of
the guarantors year-end financial
statements for the most recent completed financial reporting year showing
the amount of the fund.
(11)(i) An owner or operator using an
assurance mechanism specified in
280.95 through 280.107 must maintain
an updated copy of a certification of financial responsibility worded as follows, except that instructions in brackets are to be replaced with the relevant
information and the brackets deleted:

501

 280.112

40 CFR Ch. I (7198 Edition)

Certification of Financial Responsibility

[Owner or operator] hereby certifies
that it is in compliance with the requirements of subpart H of 40 CFR part
280.
The financial assurance mechanism(s) used to demonstrate financial
responsibility under subpart H of 40
CFR part 280 is (are) as follows:
[For each mechanism, list the type of
mechanism, name of issuer, mechanism
number (if applicable), amount of coverage, effective period of coverage and
whether the mechanism covers taking
corrective action and/or compensating third parties for bodily injury and
property damage caused by either
sudden accidental releases or nonsudden accidental releases or accidental releases.]
[Signature of owner or operator]
[Name of owner or operator]
[Title]
[Date]
[Signature of witness or notary]
[Name of witness or notary]
[Date]
(ii) The owner or operator must update this certification whenever the financial assurance mechanism(s) used
to demonstrate financial responsibility
change(s).
[58 FR 9051, Feb. 18, 1993]

280.112 Drawing on financial assurance mechanisms.

(a) Except as specified in paragraph
(d) of this section, the Director of the
implementing agency shall require the
guarantor,
surety,
or
institution
issuing a letter of credit to place the
amount of funds stipulated by the Director, up to the limit of funds provided by the financial assurance mechanism, into the standby trust if:
(1)(i) The owner or operator fails to
establish alternate financial assurance
within 60 days after receiving notice of
cancellation of the guarantee, surety
bond, letter of credit, or, as applicable,
other financial assurance mechanism;
and
(ii) The Director determines or suspects that a release from an underground storage tank covered by the
mechanism has occurred and so notifies the owner or operator or the owner
or operator has notified the Director

pursuant to subparts E or F of a release

from an underground storage tank covered by the mechanism; or
(2) The conditions of paragraph (b)(1)
or (b)(2) (i) or (ii) of this section are
satisfied.
(b) The Director of the implementing
agency may draw on a standby trust
fund when:
(1) The Director makes a final determination that a release has occurred
and immediate or long-term corrective
action for the release is needed, and
the owner or operator, after appropriate notice and opportunity to comply, has not conducted corrective action as required under 40 CFR part 280,
subpart F; or
(2) The Director has received either:
(i) Certification from the owner or
operator and the third-party liability
claimant(s) and from attorneys representing the owner or operator and
the third-party liability claimant(s)
that a third-party liability claim
should be paid. The certification must
be worded as follows, except that instructions in brackets are to be replaced with the relevant information
and the brackets deleted:
Certification of Valid Claim
The undersigned, as principals and as
legal representatives of [insert: owner
or operator] and [insert: name and address of third-party claimant], hereby
certify that the claim of bodily injury
[and/or] property damage caused by an
accidental release arising from operating [owners or operators] underground
storage tank should be paid in the
amount of $[
].
[Signatures]
Owner or Operator
Attorney for Owner or Operator
(Notary)
Date
[Signatures]
Claimant(s)
Attorney(s) for Claimant(s)
(Notary)
Date
or (ii) A valid final court order establishing a judgment against the owner
or operator for bodily injury or property damage caused by an accidental
release from an underground storage
tank covered by financial assurance

502

Environmental Protection Agency

280.114

under this subpart and the Director determines that the owner or operator
has not satisfied the judgment.
(c) If the Director of the implementing agency determines that the amount
of corrective action costs and thirdparty liability claims eligible for payment under paragraph (b) of this section may exceed the balance of the
standby trust fund and the obligation
of the provider of financial assurance,
the first priority for payment shall be
corrective action costs necessary to
protect human health and the environment. The Director shall pay thirdparty liability claims in the order in
which the Director receives certifications under paragraph (b)(2)(i) of this
section, and valid court orders under
paragraph (b)(2)(ii) of this section.
(d) A governmental entity acting as
guarantor under 280.106(e), the local
government guarantee without standby
trust, shall make payments as directed
by the Director under the circumstances described in 280.112 (a),
(b), and (c).
[58 FR 9052, Feb. 18, 1993]

280.113 Release from the requirements.

An owner or operator is no longer required to maintain financial responsibility under this subpart for an underground storage tank after the tank
has been properly closed or, if corrective action is required, after corrective
action has been completed and the
tank has been properly closed as required by 40 CFR part 280, subpart G.
[53 FR 43370, Oct. 26, 1988. Redesignated at 58
FR 9051, Feb. 18, 1993]

280.114 Bankruptcy or other incapacity of owner or operator or provider

of financial assurance.
(a) Within 10 days after commencement of a voluntary or involuntary
proceeding under Title 11 (Bankruptcy), U.S. Code, naming an owner or
operator as debtor, the owner or operator must notify the Director of the implementing agency by certified mail of
such commencement and submit the
appropriate forms listed in 280.111(b)
documenting current financial responsibility.
(b) Within 10 days after commencement of a voluntary or involuntary

proceeding under Title 11 (Bankruptcy), U.S. Code, naming a guarantor

providing financial assurance as debtor, such guarantor must notify the
owner or operator by certified mail of
such commencement as required under
the terms of the guarantee specified in
280.96.
(c) Within 10 days after commencement of a voluntary or involuntary
proceeding under Title 11 (Bankruptcy), U.S. Code, naming a local government owner or operator as debtor,
the local government owner or operator must notify the Director of the implementing agency by certified mail of
such commencement and submit the
appropriate forms listed in 280.111(b)
documenting current financial responsibility.
(d) Within 10 days after commencement of a voluntary or involuntary
proceeding under Title 11 (Bankruptcy), U.S. Code, naming a guarantor
providing a local government financial
assurance as debtor, such guarantor
must notify the local government
owner or operator by certified mail of
such commencement as required under
the terms of the guarantee specified in
280.106.
(e) An owner or operator who obtains
financial assurance by a mechanism
other than the financial test of self-insurance will be deemed to be without
the required financial assurance in the
event of a bankruptcy or incapacity of
its provider of financial assurance, or a
suspension or revocation of the authority of the provider of financial assurance to issue a guarantee, insurance
policy, risk retention group coverage
policy, surety bond, letter of credit, or
state-required mechanism. The owner
or operator must obtain alternate financial assurance as specified in this
subpart within 30 days after receiving
notice of such an event. If the owner or
operator does not obtain alternate coverage within 30 days after such notification, he must notify the Director of
the implementing agency.
(f) Within 30 days after receipt of notification that a state fund or other
state assurance has become incapable
of paying for assured corrective action
or third-party compensation costs, the

503

 280.115

40 CFR Ch. I (7198 Edition)

owner or operator must obtain alternate financial assurance.

[58 FR 9053, Feb. 18, 1993]

280.115 Replenishment of guarantees,

letters of credit, or surety bonds.
(a) If at any time after a standby
trust is funded upon the instruction of
the Director of the implementing agency with funds drawn from a guarantee,
local government guarantee with
standby trust, letter of credit, or surety bond, and the amount in the standby trust is reduced below the full
amount of coverage required, the
owner or operator shall by the anniversary date of the financial mechanism
from which the funds were drawn:
(1) Replenish the value of financial
assurance to equal the full amount of
coverage required, or
(2) Acquire another financial assurance mechanism for the amount by
which funds in the standby trust have
been reduced.
(b) For purposes of this section, the
full amount of coverage required is the
amount of coverage to be provided by
280.93 of this subpart. If a combination
of mechanisms was used to provide the
assurance funds which were drawn
upon, replenishment shall occur by the
earliest anniversary date among the
mechanisms.
[58 FR 9053, Feb. 18, 1993]

280.116 Suspension of enforcement.

[Reserved]

Subpart ILender Liability

SOURCE: 60 FR 46711, Sept. 7, 1995, unless
otherwise noted.

280.200 Definitions.
(a) UST technical standards, as used in
this subpart, refers to the UST preventative and operating requirements
under 40 CFR part 280, subparts B, C, D,
G, and 280.50 of subpart E.
(b) Petroleum production, refining, and
marketing.
(1) Petroleum production means the
production of crude oil or other forms
of petroleum (as defined in 280.12) as
well as the production of petroleum
products from purchased materials.

(2) Petroleum refining means the

cracking, distillation, separation, conversion, upgrading, and finishing of refined petroleum or petroleum products.
(3) Petroleum marketing means the distribution, transfer, or sale of petroleum or petroleum products for wholesale or retail purposes.
(c) Indicia of ownership means evidence of a secured interest, evidence of
an interest in a security interest, or
evidence of an interest in real or personal property securing a loan or other
obligation, including any legal or equitable title or deed to real or personal
property acquired through or incident
to foreclosure. Evidence of such interests include, but are not limited to,
mortgages, deeds of trust, liens, surety
bonds and guarantees of obligations,
title held pursuant to a lease financing
transaction in which the lessor does
not select initially the leased property
(hereinafter lease financing transaction), and legal or equitable title
obtained pursuant to foreclosure. Evidence of such interests also includes
assignments, pledges, or other rights to
or other forms of encumbrance against
property that are held primarily to
protect a security interest. A person is
not required to hold title or a security
interest in order to maintain indicia of
ownership.
(d) A holder is a person who, upon the
effective date of this regulation or in
the future, maintains indicia of ownership (as defined in 280.200(c)) primarily to protect a security interest
(as defined in 280.200(f)(1)) in a petroleum UST or UST system or facility or
property on which a petroleum UST or
UST system is located. A holder includes the initial holder (such as a loan
originator); any subsequent holder
(such as a successor-in-interest or subsequent purchaser of the security interest on the secondary market); a
guarantor of an obligation, surety, or
any other person who holds ownership
indicia primarily to protect a security
interest; or a receiver or other person
who acts on behalf or for the benefit of
a holder.
(e) A borrower, debtor, or obligor is a
person whose UST or UST system or
facility or property on which the UST

504

Environmental Protection Agency

280.210

or UST system is located is encumbered by a security interest. These

terms may be used interchangeably.
(f) Primarily to protect a security interest means that the holders indicia of
ownership are held primarily for the
purpose of securing payment or performance of an obligation.
(1) Security interest means an interest
in a petroleum UST or UST system or
in the facility or property on which a
petroleum UST or UST system is located, created or established for the
purpose of securing a loan or other obligation. Security interests include but
are not limited to mortgages, deeds of
trusts, liens, and title pursuant to
lease financing transactions. Security
interests may also arise from transactions such as sale and leasebacks,
conditional sales, installment sales,
trust receipt transactions, certain assignments, factoring agreements, accounts receivable financing arrangements, and consignments, if the transaction creates or establishes an interest in an UST or UST system or in the
facility or property on which the UST
or UST system is located, for the purpose of securing a loan or other obligation.
(2) Primarily to protect a security interest, as used in this subpart, does not include indicia of ownership held primarily for investment purposes, nor
ownership indicia held primarily for
purposes other than as protection for a
security interest. A holder may have
other, secondary reasons for maintaining indicia of ownership, but the primary reason why any ownership indicia are held must be as protection for a
security interest.
(g) Operation means, for purposes of
this subpart, the use, storage, filling,
or dispensing of petroleum contained in
an UST or UST system.
280.210 Participation
ment.

in

manage-

The term participating in the management of an UST or UST system

means that, subsequent to the effective
date of this subpart, December 6, 1995,
the holder is engaging in decisionmaking control of, or activities related
to, operation of the UST or UST system, as defined herein.

(a) Actions that are participation in

management.
(1) Participation in the management
of an UST or UST system means, for
purposes of this subpart, actual participation by the holder in the management or control of decisionmaking related to the operation of an UST or
UST system. Participation in management does not include the mere capacity or ability to influence or the
unexercised right to control UST or
UST system operations. A holder is
participating in the management of the
UST or UST system only if the holder
either:
(i) Exercises decisionmaking control
over the operational (as opposed to financial or administrative) aspects of
the UST or UST system, such that the
holder has undertaken responsibility
for all or substantially all of the management of the UST or UST system; or
(ii) Exercises control at a level comparable to that of a manager of the
borrowers enterprise, such that the
holder has assumed or manifested responsibility for the overall management of the enterprise encompassing
the day-to-day decisionmaking of the
enterprise with respect to all, or substantially all, of the operational (as opposed to financial or administrative)
aspects of the enterprise.
(2) Operational aspects of the enterprise relate to the use, storage, filling,
or dispensing of petroleum contained in
an UST or UST system, and include
functions such as that of a facility or
plant manager, operations manager,
chief operating officer, or chief executive officer. Financial or administrative aspects include functions such as
that of a credit manager, accounts payable/receivable
manager,
personnel
manager, controller, chief financial officer, or similar functions. Operational
aspects of the enterprise do not include
the financial or administrative aspects
of the enterprise, or actions associated
with environmental compliance, or actions undertaken voluntarily to protect the environment in accordance
with applicable requirements in 40 CFR
part 280 or applicable state requirements in those states that have been
delegated authority by EPA to administer the UST program pursuant to 42
USC 6991c and 40 CFR part 281.

505

 280.210

40 CFR Ch. I (7198 Edition)

(b) Actions that are not participation

in management pre-foreclosure.
(1) Actions at the inception of the
loan or other transaction. No act or
omission prior to the time that indicia
of ownership are held primarily to protect a security interest constitutes evidence of participation in management
within the meaning of this subpart. A
prospective holder who undertakes or
requires an environmental investigation (which could include a site assessment, inspection, and/or audit) of the
UST or UST system or facility or property on which the UST or UST system
is located (in which indicia of ownership are to be held), or requires a prospective borrower to clean up contamination from the UST or UST system or
to comply or come into compliance
(whether prior or subsequent to the
time that indicia of ownership are held
primarily to protect a security interest) with any applicable law or regulation, is not by such action considered
to be participating in the management
of the UST or UST system or facility
or property on which the UST or UST
system is located.
(2) Loan policing and work out. Actions that are consistent with holding
ownership indicia primarily to protect
a security interest do not constitute
participation in management for purposes of this subpart. The authority for
the holder to take such actions may,
but need not, be contained in contractual or other documents specifying requirements for financial, environmental, and other warranties, covenants, conditions, representations or
promises from the borrower. Loan policing and work out activities cover
and include all such activities up to
foreclosure, exclusive of any activities
that constitute participation in management.
(i) Policing the security interest or
loan.
(A) A holder who engages in policing
activities prior to foreclosure will remain within the exemption provided
that the holder does not together with
other actions participate in the management of the UST or UST system as
provided in 280.210(a). Such policing
actions include, but are not limited to,
requiring the borrower to clean up contamination from the UST or UST sys-

tem during the term of the security interest; requiring the borrower to comply or come into compliance with applicable federal, state, and local environmental and other laws, rules, and
regulations during the term of the security interest; securing or exercising
authority to monitor or inspect the
UST or UST system or facility or property on which the UST or UST system
is located (including on-site inspections) in which indicia of ownership are
maintained, or the borrowers business
or financial condition during the term
of the security interest; or taking
other actions to adequately police the
loan or security interest (such as requiring a borrower to comply with any
warranties, covenants, conditions, representations, or promises from the borrower).
(B) Policing activities also include
undertaking by the holder of UST environmental compliance actions and voluntary environmental actions taken in
compliance with 40 CFR part 280, provided that the holder does not otherwise participate in the management or
daily operation of the UST or UST system as provided in 280.210(a) and
280.230. Such allowable actions include, but are not limited to, release
detection and release reporting, release
response and corrective action, temporary or permanent closure of an UST
or UST system, UST upgrading or replacement, and maintenance of corrosion protection. A holder who undertakes these actions must do so in compliance with the applicable requirements in 40 CFR part 280 or applicable
state requirements in those states that
have been delegated authority by EPA
to administer the UST program pursuant to 42 U.S.C. 6991c and 40 CFR part
281. A holder may directly oversee
these environmental compliance actions and voluntary environmental actions, and directly hire contractors to
perform the work, and is not by such
action considered to be participating in
the management of the UST or UST
system.
(ii) Loan work out. A holder who engages in work out activities prior to
foreclosure will remain within the exemption provided that the holder does
not together with other actions participate in the management of the UST

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Environmental Protection Agency

280.210

or UST system as provided in

280.210(a). For purposes of this rule,
work out refers to those actions by
which a holder, at any time prior to
foreclosure, seeks to prevent, cure, or
mitigate a default by the borrower or
obligor; or to preserve, or prevent the
diminution of, the value of the security. Work out activities include, but
are not limited to, restructuring or renegotiating the terms of the security
interest; requiring payment of additional rent or interest; exercising forbearance; requiring or exercising rights
pursuant to an assignment of accounts
or other amounts owing to an obligor;
requiring or exercising rights pursuant
to an escrow agreement pertaining to
amounts owing to an obligor; providing
specific or general financial or other
advice, suggestions, counseling, or
guidance; and exercising any right or
remedy the holder is entitled to by law
or under any warranties, covenants,
conditions, representations, or promises from the borrower.
(c) Foreclosure on an UST or UST
system or facility or property on which
an UST or UST system is located, and
participation in management activities
post-foreclosure.
(1) Foreclosure. (i) Indicia of ownership that are held primarily to protect
a security interest include legal or equitable title or deed to real or personal
property acquired through or incident
to foreclosure. For purposes of this
subpart, the term foreclosure means
that legal, marketable or equitable
title or deed has been issued, approved,
and recorded, and that the holder has
obtained access to the UST, UST system, UST facility, and property on
which the UST or UST system is located, provided that the holder acted
diligently to acquire marketable title
or deed and to gain access to the UST,
UST system, UST facility, and property on which the UST or UST system
is located. The indicia of ownership
held after foreclosure continue to be
maintained primarily as protection for
a security interest provided that the
holder undertakes to sell, re-lease an
UST or UST system or facility or property on which the UST or UST system
is located, held pursuant to a lease financing transaction (whether by a new
lease financing transaction or substi-

tution of the lessee), or otherwise divest itself of the UST or UST system or
facility or property on which the UST
or UST system is located, in a reasonably expeditious manner, using whatever commercially reasonable means
are relevant or appropriate with respect to the UST or UST system or facility or property on which the UST or
UST system is located, taking all facts
and circumstances into consideration,
and provided that the holder does not
participate in management (as defined
in 280.210(a)) prior to or after foreclosure.
(ii) For purposes of establishing that
a holder is seeking to sell, re-lease pursuant to a lease financing transaction
(whether by a new lease financing
transaction or substitution of the lessee), or divest in a reasonably expeditious manner an UST or UST system or
facility or property on which the UST
or UST system is located, the holder
may use whatever commercially reasonable means as are relevant or appropriate with respect to the UST or UST
system or facility or property on which
the UST or UST system is located, or
may employ the means specified in
280.210(c)(2). A holder that outbids, rejects, or fails to act upon a written
bona fide, firm offer of fair consideration for the UST or UST system or facility or property on which the UST or
UST system is located, as provided in
280.210(c)(2), is not considered to hold
indicia of ownership primarily to protect a security interest.
(2) Holding foreclosed property for
disposition and liquidation. A holder,
who does not participate in management prior to or after foreclosure, may
sell, re-lease, pursuant to a lease financing transaction (whether by a new
lease financing transaction or substitution of the lessee), an UST or UST
system or facility or property on which
the UST or UST system is located, liquidate, wind up operations, and take
measures, prior to sale or other disposition, to preserve, protect, or prepare the secured UST or UST system or
facility or property on which the UST
or UST system is located. A holder
may also arrange for an existing or
new operator to continue or initiate
operation of the UST or UST system.

507

 280.210

40 CFR Ch. I (7198 Edition)

The holder may conduct these activities without voiding the security interest exemption, subject to the requirements of this subpart.
(i) A holder establishes that the ownership indicia maintained after foreclosure continue to be held primarily
to protect a security interest by, within 12 months following foreclosure, listing the UST or UST system or the facility or property on which the UST or
UST system is located, with a broker,
dealer, or agent who deals with the
type of property in question, or by advertising the UST or UST system or facility or property on which the UST or
UST system is located, as being for
sale or disposition on at least a monthly basis in either a real estate publication or a trade or other publication
suitable for the UST or UST system or
facility or property on which the UST
or UST system is located, or a newspaper of general circulation (defined as
one with a circulation over 10,000, or
one suitable under any applicable federal, state, or local rules of court for
publication required by court order or
rules of civil procedure) covering the
location of the UST or UST system or
facility or property on which the UST
or UST system is located. For purposes
of this provision, the 12-month period
begins to run from December 6, 1995 or
from the date that the marketable title
or deed has been issued, approved and
recorded, and the holder has obtained
access to the UST, UST system, UST
facility and property on which the UST
or UST system is located, whichever is
later, provided that the holder acted
diligently to acquire marketable title
or deed and to obtain access to the
UST, UST system, UST facility and
property on which the UST or UST system is located. If the holder fails to act
diligently to acquire marketable title
or deed or to gain access to the UST or
UST system, the 12-month period begins to run from December 6, 1995 or
from the date on which the holder first
acquires either title to or possession of
the secured UST or UST system, or facility or property on which the UST or
UST system is located, whichever is
later.
(ii) A holder that outbids, rejects, or
fails to act upon an offer of fair consideration for the UST or UST system or

the facility or property on which the

UST or UST system is located, establishes by such outbidding, rejection, or
failure to act, that the ownership indicia in the secured UST or UST system
or facility or property on which the
UST or UST system is located are not
held primarily to protect the security
interest, unless the holder is required,
in order to avoid liability under federal
or state law, to make a higher bid, to
obtain a higher offer, or to seek or obtain an offer in a different manner.
(A) Fair consideration, in the case of
a holder maintaining indicia of ownership primarily to protect a senior security interest in the UST or UST system
or facility or property on which the
UST or UST system is located, is the
value of the security interest as defined in this section. The value of the
security interest includes all debt and
costs incurred by the security interest
holder, and is calculated as an amount
equal to or in excess of the sum of the
outstanding principal (or comparable
amount in the case of a lease that constitutes a security interest) owed to
the holder immediately preceding the
acquisition of full title (or possession
in the case of a lease financing transaction) pursuant to foreclosure, plus
any unpaid interest, rent, or penalties
(whether arising before or after foreclosure). The value of the security interest also includes all reasonable and
necessary costs, fees, or other charges
incurred by the holder incident to work
out, foreclosure, retention, preserving,
protecting, and preparing, prior to sale,
the UST or UST system or facility or
property on which the UST or UST system is located, re-lease, pursuant to a
lease financing transaction (whether
by a new lease financing transaction or
substitution of the lessee), of an UST
or UST system or facility or property
on which the UST or UST system is located, or other disposition. The value
of the security interest also includes
environmental
investigation
costs
(which could include a site assessment,
inspection, and/or audit of the UST or
UST system or facility or property on
which the UST or UST system is located), and corrective action costs incurred under 280.51 through 280.67 or
any other costs incurred as a result of
reasonable efforts to comply with any

508

Environmental Protection Agency

280.220

other applicable federal, state or local

law or regulation; less any amounts received by the holder in connection with
any partial disposition of the property
and any amounts paid by the borrower
(if not already applied to the borrowers obligations) subsequent to the acquisition of full title (or possession in
the case of a lease financing transaction) pursuant to foreclosure. In the
case of a holder maintaining indicia of
ownership primarily to protect a junior
security interest, fair consideration is
the value of all outstanding higher priority security interests plus the value
of the security interest held by the junior holder, each calculated as set forth
in this paragraph.
(B) Outbids, rejects, or fails to act
upon an offer of fair consideration
means that the holder outbids, rejects,
or fails to act upon within 90 days of
receipt, a written, bona fide, firm offer
of fair consideration for the UST or
UST system or facility or property on
which the UST or UST system is located received at any time after six
months following foreclosure, as defined in 280.210(c). A written, bona
fide, firm offer means a legally enforceable, commercially reasonable,
cash offer solely for the foreclosed UST
or UST system or facility or property
on which the UST or UST system is located, including all material terms of
the transaction, from a ready, willing,
and able purchaser who demonstrates
to the holders satisfaction the ability
to perform. For purposes of this provision, the six-month period begins to
run from December 6, 1995 or from the
date that marketable title or deed has
been issued, approved and recorded to
the holder, and the holder has obtained
access to the UST, UST system, UST
facility and property on which the UST
or UST system is located, whichever is
later, provided that the holder was acting diligently to acquire marketable
title or deed and to obtain access to
the UST or UST system, UST facility
and property on which the UST or UST
system is located. If the holder fails to
act diligently to acquire marketable
title or deed or to gain access to the
UST or UST system, the six-month period begins to run from December 6,
1995 or from the date on which the
holder first acquires either title to or

possession of the secured UST or UST

system, or facility or property on
which the UST or UST system is located, whichever is later.
(3) Actions that are not participation
in management post-foreclosure. A
holder is not considered to be participating in the management of an UST
or UST system or facility or property
on which the UST or UST system is located when undertaking actions under
40 CFR part 280, provided that the holder does not otherwise participate in the
management or daily operation of the
UST or UST system as provided in
280.210(a) and 280.230. Such allowable
actions include, but are not limited to,
release detection and release reporting,
release response and corrective action,
temporary or permanent closure of an
UST or UST system, UST upgrading or
replacement, and maintenance of corrosion protection. A holder who undertakes these actions must do so in compliance with the applicable requirements in 40 CFR part 280 or applicable
state requirements in those states that
have been delegated authority by EPA
to administer the UST program pursuant to 42 U.S.C. 6991c and 40 CFR part
281. A holder may directly oversee
these environmental compliance actions and voluntary environmental actions, and directly hire contractors to
perform the work, and is not by such
action considered to be participating in
the management of the UST or UST
system.
280.220 Ownership of an underground storage tank or underground storage tank system or facility or property on which an underground storage tank or underground storage tank system is located.
Ownership of an UST or UST system
or facility or property on which an
UST or UST system is located. A holder is not an owner of a petroleum
UST or UST system or facility or property on which a petroleum UST or UST
system is located for purposes of compliance with the UST technical standards as defined in 280.200(a), the UST
corrective action requirements under
280.51 through 280.67, and the UST financial responsibility requirements
under 280.90 through 280.111, provided
the person:

509

 280.230

40 CFR Ch. I (7198 Edition)

(a) Does not participate in the management of the UST or UST system as
defined in 280.210; and
(b) Does not engage in petroleum production, refining, and marketing as defined in 280.200(b).
280.230 Operating an underground
storage tank or underground storage tank system.
(a) Operating an UST or UST system
prior to foreclosure. A holder, prior to
foreclosure, as defined in 280.210(c), is
not an operator of a petroleum UST
or UST system for purposes of compliance with the UST technical standards
as defined in 280.200(a), the UST corrective action requirements under
280.51 through 280.67, and the UST financial responsibility requirements
under 280.90 through 280.111, provided
that, after December 6, 1995, the holder
is not in control of or does not have responsibility for the daily operation of
the UST or UST system.
(b) Operating an UST or UST system
after foreclosure. The following provisions apply to a holder who, through
foreclosure, as defined in 280.210(c),
acquires a petroleum UST or UST system or facility or property on which a
petroleum UST or UST system is located.
(1) A holder is not an operator of a
petroleum UST or UST system for purposes of compliance with 40 CFR part
280 if there is an operator, other than
the holder, who is in control of or has
responsibility for the daily operation of
the UST or UST system, and who can
be held responsible for compliance with
applicable requirements of 40 CFR part
280 or applicable state requirements in
those states that have been delegated
authority by EPA to administer the
UST program pursuant to 42 U.S.C.
6991c and 40 CFR part 281.
(2) If another operator does not exist,
as provided for under paragraph (b)(1)
of this section, a holder is not an operator of the UST or UST system, for
purposes of compliance with the UST
technical standards as defined in
280.200(a), the UST corrective action
requirements under 280.51 through
280.67, and the UST financial responsibility requirements under 280.90
through 280.111, provided that the holder:

(i) Empties all of its known USTs and

UST systems within 60 calendar days
after foreclosure or within 60 calendar
days after December 6, 1995, whichever
is later, or another reasonable time period specified by the implementing
agency, so that no more than 2.5 centimeters (one inch) of residue, or 0.3 percent by weight of the total capacity of
the UST system, remains in the system; leaves vent lines open and functioning; and caps and secures all other
lines, pumps, manways, and ancillary
equipment; and
(ii) Empties those USTs and UST systems that are discovered after foreclosure within 60 calendar days after
discovery or within 60 calendar days
after December 6, 1995, whichever is
later, or another reasonable time period specified by the implementing
agency, so that no more than 2.5 centimeters (one inch) of residue, or 0.3 percent by weight of the total capacity of
the UST system, remains in the system; leaves vent lines open and functioning; and caps and secures all other
lines, pumps, manways, and ancillary
equipment.
(3) If another operator does not exist,
as provided for under paragraph (b)(1)
of this section, in addition to satisfying the conditions under paragraph
(b)(2) of this section, the holder must
either:
(i) Permanently close the UST or
UST system in accordance with 280.71
through 280.74, except 280.72(b); or
(ii) Temporarily close the UST or
UST system in accordance with the following applicable provisions of 280.70:
(A) Continue operation and maintenance of corrosion protection in accordance with 280.31;
(B) Report suspected releases to the
implementing agency; and
(C) Conduct a site assessment in accordance with 280.72(a) if the UST system is temporarily closed for more
than 12 months and the UST system
does not meet either the performance
standards in 280.20 for new UST systems or the upgrading requirements in
280.21, except that the spill and overfill equipment requirements do not
have to be met. The holder must report
any suspected releases to the implementing agency. For purposes of this
provision, the 12-month period begins

510

Environmental Protection Agency

Pt. 280, App. I

to run from December 6, 1995 or from

the date on which the UST system is
emptied and secured under paragraph
(b)(2) of this section, whichever is
later.
(4) The UST system can remain in
temporary closure until a subsequent
purchaser has acquired marketable
title to the UST or UST system or facility or property on which the UST or
UST system is located. Once a subsequent purchaser acquires marketable

title to the UST or UST system or facility or property on which the UST or
UST system is located, the purchaser
must decide whether to operate or
close the UST or UST system in accordance with applicable requirements
in 40 CFR part 280 or applicable state
requirements in those states that have
been delegated authority by EPA to administer the UST program pursuant to
42 U.S.C. 6991c and 40 CFR part 281.

APPENDIX I TO PART 280NOTIFICATION FOR UNDERGROUND STORAGE TANKS

(FORM)

511

Pt. 280, App. I

40 CFR Ch. I (7198 Edition)

512

Environmental Protection Agency

Pt. 280, App. I

513

Pt. 280, App. II

40 CFR Ch. I (7198 Edition)

APPENDIX II TO PART 280LIST OF

AGENCIES DESIGNATED TO RECEIVE
NOTIFICATIONS
Alabama (EPA Form), Alabama Department
of Environmental Management, Ground
Water Section/Water Division, 1751 Con-

gressman W.L. Dickinson Drive, Montgomery, Alabama 36130, 205/2717823

Alaska (EPA Form), Department of Environmental Conservation, Box 0, Juneau, Alaska 998111800, 970/4652653

514

Environmental Protection Agency

Pt. 280, App. II

American Samoa (EPA Form), Executive

Secretary, Environmental Quality Commission, Office of the Governor, American
Samoan Government, Pago Pago, American Samoa 96799; Attention: UST Notification
Arizona (EPA Form), Attention: UST Coordinator, Arizona Department of Environmental Quality, Environmental Health
Services, 2005 N. Central, Phoenix, Arizona
85004
Arkansas (EPA Form), Arkansas Department of Pollution Control and Ecology,
P.O. Box 9583, Little Rock, Arkansas 72219,
501/5627444
California (State Form), Executive Director,
State Water Resources Control Board, P.O.
Box 100, Sacramento, California 95801, 916/
4451533
Co1orado (EPA Form), Section Chief, Colorado Department of Health, Waste Management Division, Underground Tank Program, 4210 East 11th Avenue, Denver, Colorado 80220, 303/3208333
Connecticut (State Form), Hazardous Materials Management Unit, Department of Environmental Protection, State Office
Building, 165 Capitol Avenue, Hartford,
Connecticut 06106
Delaware (State Form), Division of Air and
Waste Management, Department of Natural Resources and Environmental Control,
P.O. Box 1401, 89 Kings Highway, Dover,
Delaware 19903, 302/7265409
District of Columbia (EPA Form), Attention:
UST Notification Form, Department of
Consumer and Regulatory Affairs, Pesticides and Hazardous Waste Management
Branch, Room 114, 5010 Overlook Avenue
SW., Washington, DC 20032
Florida (State Form), Florida Department of
Environmental Regulation, Solid Waste
Section, Twin Towers Office Building, 2600
Blair Stone Road, Tallahassee, Florida
32399, 904/4874398
Georgia (EPA Form), Georgia Department of
Natural Resources, Environmental Protection Division, Underground Storage Tank
Program, 3420 Norman Berry Drive, 7th
Floor, Hapeville, Georgia 30354, 404/6567404
Guam (State Form), Administrator, Guam
Environmental Protection Agency, P.O.
Box 2999, Agana, Guam 96910, Overseas Operator (Commercial call 6468863)
Hawaii (EPA Form), Administrator, Hazardous Waste Program, 645 Halekauwila
Street, Honolulu, Hawaii 96813, 808/5482270
Idaho (EPA Form), Underground Storage
Tank Coordinator, Water Quality Bureau,
Division of Environmental Quality, Idaho
Department of Health and Welfare, 450 W.
State Street, Boise, Idaho 83720, 208/3344251
Illinois (EPA Form), Underground Storage
Tank Coordinator, Division of Fire Prevention, Office of State Fire Marshal, 3150 Executive Park Drive, Springfield, Illinois
627034599

Indiana (EPA Form), Underground Storage

Tank Program, Office of Environmental
Response, Indiana Department of Environmental Management, 105 South Meridian
Street, Indianapolis, Indiana 46225
Iowa (State Form), UST Coordinator, Iowa
Department of Natural Resources, Henry
A. Wallace Building, 900 East Grand, Des
Moines, Iowa 50219, 512/2818135
Kansas (EPA Form), Kansas Department of
Health and Environment, Forbes Field,
Building 740, Topeka, Kansas 66620, 913/296
1594
Kentucky (State Form), Department of Environmental Protection, Hazardous Waste
Branch, Fort Boone Plaza, Building #2, 18
Reilly Road, Frankfort, Kentucky 40601,
501/5646716
Louisiana (State Form), Secretary, Louisiana Department of Environmental Quality,
P.O. Box 44066, Baton Rouge, Louisiana
70804, 501/3421265
Maine (State Form), Attention: Underground
Tanks Program, Bureau of Oil and Hazardous Material Control, Department of Environmental Protection, State HouseStation 17, Augusta, Maine 04333
Maryland (EPA Form), Science and Health
Advisory Group, Office of Environmental
Programs, 201 West Preston Street, Baltimore, Maryland 21201
Massachusetts (EPA Form), UST Registry,
Department of Public Safety, 1010 Commonwealth Avenue, Boston, Massachusetts
02215, 617/5664500
Michigan (EPA Form), Michigan Department
of State Police, Fire Marshal Division,
General Office Building, 7150 Harris Drive,
Lansing, Michigan 48913
Minnesota (State Form), Underground Storage Tank Program, Division of Solid and
Hazardous Wastes, Minnesota Pollution
Control Agency, 520 West Lafayette Road,
St. Paul, Minnesota 55155
Mississippi (State Form), Department of
Natural Resources, Bureau of Pollution
Control, Underground Storage Tank Section, P.O. Box 10385, Jackson, Mississippi
39209, 601/9615171
Missouri (EPA Form), UST Coordinator, Missouri Department of Natural Resources,
P.O. Box 176, Jefferson City, Missouri 65102,
314/7517428
Montana (EPA Form), Solid and Hazardous
Waste Bureau, Department of Health and
Environmental Science, Cogswell Bldg.,
Room B201, Helena, Montana 59620
Nebraska (EPA Form), Nebraska State Fire
Marshal, P.O. Box 94677, Lincoln, Nebraska
685094677, 402/4719465
Nevada (EPA Form), Attention: UST Coordinator, Division of Environmental Protection, Department of Conservation and Natural Resources, Capitol Complex 201 S. Fall
Street, Carson City, Nevada 89710, 800/992
0900, Ext. 4670, 702/8854670

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Pt. 280, App. III

40 CFR Ch. I (7198 Edition)

New Hampshire (EPA Form), NH Dept. of

Environmental Services, Water Supply and
Pollution Control Division, Hazen Drive,
P.O. Box 95, Concord, New Hampshire 03301,
Attention: UST Registration
New Jersey (State Form), Underground Storage Tank Coordinator, Department of Environmental Protection, Division of Water
Resources (CN029), Trenton, New Jersey
08625, 609/2920424
New Mexico (EPA Form), New Mexico Environmental Improvement Division, Groundwater/Hazardous Waste Bureau, P.O. Box
968, Santa Fe, New Mexico 37504, 505/827
2933
New York (EPA Form), Bulk Storage Section, Division of Water, Department of Environmental Conservation, 50 Wolf Road,
Room 326, Albany, New York 122330001,
518/4574351
North Carolina (EPA Form), Division of Environmental Management, Ground-Water
Operations Branch, Department of Natural
Resources and Community Development,
P.O. Box 27687, Raleigh, North Carolina
27611, 919/7333221
North Dakota (State Form), Division of Hazardous Management and Special Studies,
North Dakota Department of Health, Box
5520, Bismarck, North Dakota 585025520
Northern Mariana Islands (EPA Form),
Chief, Division of Environmental Quality,
P.O. Box 1304, Commonwealth of Northern
Mariana Islands, Saipan, CM 96950, Cable
Address: Gov. NMI Saipan, Overseas Operator: 6984
Ohio (State Form), State Fire Marshals Office, Department of Commerce, 8895 E.
Main Street, Reynoldsburg, Ohio 43068,
State Hotline: 800/2821927
Oklahoma (EPA Form), Underground Storage Tank Program, Oklahoma Corporation
Comm., Jim Thorpe Building, Oklahoma
City, Oklahoma 73105
Oregon (State Form), Underground Storage
Tank Program, Hazardous and Solid Waste
Division, Department of Environmental
Quality, 811 S.W. Sixth Avenue, Portland,
Oregon 98204, 503/2295788
Pennsylvania (EPA Form), PA Department
of Environmental Resources, Bureau of
Water Quality Management, Ground Water
Unit, 9th Floor Fulton Building, P.O. Box
2063, Harrisburg, Pennsylvania 17120
Puerto Rico (EPA Form), Director, Water
Quality Control Area, Environmental
Quality Board, Commonwealth of Puerto
Rico, Santurce, Puerto Rico, 809/7250717
Rhode Island (EPA Form), UST Registration,
Department of Environmental Management, 83 Park Street, Providence, Rhode
Island 02903, 401/2772234
South Carolina (State Form), Ground-Water
Protection Division, South Carolina Department of Health and Environmental
Control, 2600 Bull Street, Columbia, South
Carolina 29201, 803/7585213

South Dakota (EPA Form), Office of Water

Quality, Department of Water and Natural
Resources, Joe Foss Building, Pierre,
South Dakota 57501,
Tennessee (EPA Form), Tennessee Department of Health and Environment, Division
of Superfund Underground Storage Tank
Section, 150 Ninth Avenue, North, Nashville, Tennessee 372195404, 615/7410690
Texas (EPA Form), Underground Storage
Tank Program, Texas Water Commission,
P.O. Box 13087, Austin, Texas 78711
Utah (EPA Form), Division of Envirormental
Health, P.O. Box 45500, Salt Lake City,
Utah 841450500
Vermont (State Form), Underground Storage
Tank Program, Vermont AEC/Waste Management Division, State Office Building,
Montpelier, Vermont 05602, 802/8283395
Virginia (EPA Form), Virginia Water Control Board, P.O. Box 11143, Richmond, Virginia 232301143, 804/2576685
Virgin Islands (EPA Form), 205(J) Coordinator, Division of Natural Resources Management, 14 F Building 111, Watergut Homes,
Christianstead, St. Croix, Virgin Islands
00820
Washington (State Form), Underground
Storage Tank Notification, Solid and Hazardous Waste Program, Department of
Ecology, M/S PV11, Olympia, Washington
985048711, 206/4596316
West Virginia (EPA Form), Attention: UST
Notification, Solid and Hazardous Waste,
Ground Water Branch, West Virginia Department of Natural Resources, 1201
Greenbriar Street, Charleston, West Virginia 25311
Wisconsin (State Form), Bureau of Petroleum Inspection, P.O. Box 7969, Madison,
Wisconsin 53707, 608/2667605
Wyoming (EPA Form), Water Quality Division, Department of Environmental Quality, Herschler Building, 4th Floor West, 122
West 25th Street, Cheyenne, Wyoming
82002, 307/7777781.

APPENDIX III TO PART 280STATEMENT

FOR SHIPPING TICKETS AND INVOICES
NOTE. A Federal law (the Resource Conservation and Recovery Act (RCRA), as
amended (Pub. L. 98616)) requires owners of
certain underground storage tanks to notify
designated State or local agencies by May 8,
1986, of the existence of their tanks. Notifications for tanks brought into use after May 8,
1986, must be made within 30 days. Consult
EPAs regulations, issued on November 8,
1985 (40 CFR part 280) to determine if you are
affected by this law.

516