Standards Applicable to Owners and Operators of Hazardous Waste Treatment, Storage, and Disposal Facilities, Underground Storage Tanks, and Underground Injection Control Systems; Financial Assurance; Letter of Credit

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 144, 264, and 280

[FRL-4894-3]

Standards Applicable to Owners and Operators of Hazardous Waste

Treatment, Storage, and Disposal Facilities, Underground Storage Tanks,

and Underground Injection Control Systems; Financial Assurance; Letter

of Credit

AGENCY: Environmental Protection Agency.

ACTION: Final rule; amendment.

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SUMMARY: EPA is amending the regulations related to financial assurance

promulgated under Subtitles C and I of the Resource Conservation and

Recovery Act (RCRA). Those regulations cite the ``Uniform Customs and

Practice for Documentary Credits,'' published by the International

Chamber of Commerce. This notice inserts the words ``and copyrighted''

into the letter of credit instrument to clarify that the International

Chamber of Commerce publication is copyrighted material. As a result of

this notice, owners and operators using the letter of credit instrument

to demonstrate financial assurance must include this additional

language.

EFFECTIVE DATE: August 9, 1994.

FOR FURTHER INFORMATION CONTACT:

Tom Gorman at (202) 260-1339, Office of General Counsel, U.S.

Environmental Protection Agency, 401 M St. SW., Washington, DC 20460.

SUPPLEMENTARY INFORMATION:

I. Authority

This amendment is promulgated under the authority of Sections

2002(a), 3004, 3005, and 3006 of the Resource Conservation and Recovery

Act, as amended, 42 U.S.C. 6912, 6924, 6925, 6926, and 6991, and under

the authority of the Safe Drinking Water Act, 42 U.S.C. 300f et seq.

II. Background

Owners and operators of hazardous waste treatment, storage, and

disposal facilities must demonstrate financial assurance for costs of

closure, post-closure care, third-party liability and corrective action

associated with their facilities. In subpart H of 40 CFR part 264, the

Agency has established regulations regarding financial assurance for

closure, post-closure care, and third party liability. Section 264.151

provides wording for the various financial instruments that owners and

operators may use to demonstrate financial assurance. Section

264.151(d) provides wording for a letter of credit to demonstrate

financial assurance for closure and post-closure care, and

Sec. 264.151(k) provides wording for a letter of credit to demonstrate

financial assurance for third-party liability.

The RCRA regulations in 40 CFR part 280 impose similar requirements

on owners and operators of underground storage tanks. Under those

provisions, owners and operators of underground storage tanks must

demonstrate financial assurance for taking corrective action and for

third party liability. The regulations then establish a series of

mechanisms that owners and operators can use. Section 280.99 provides

the wording for a letter of credit, which is one of those allowable

mechanisms.

Finally, the regulations at 40 CFR part 144, subpart F for the

Underground Injection Control Program contain specific requirements for

financial responsibility for Class I hazardous waste injection wells.

Class I wells inject industrial and municipal wastes, including RCRA

hazardous wastes, below the lowermost underground source of drinking

water (USDW). 40 CFR part 144, subpart F, is directly applicable to

owners and operators of all Class I hazardous waste injection wells.

III. Purpose of This Notice

The wording of the letter of credit instrument in Secs. 144.70(d),

264.151 (d) and (k), and Sec. 280.99 includes a reference to the

``Uniform Customs and Practice for Documentary Credits,'' published by

the International Chamber of Commerce. However, the language does not

make it clear that the International Chamber of Commerce publication is

copyrighted material.

This correction notice amends the letter of credit instrument in

Secs. 144.70(d), 264.151 (d) and (k), and 280.99 to clarify that the

International Chamber of Commerce publication is copyrighted material

by including the words ``and copyrighted'' in the wording of the letter

of credit instrument. As a result of this change to the regulations,

owners and operators who obtain a letter of credit to demonstrate

financial assurance must use the revised language in Sec. 264.151(d),

264.151(k), or 280.99(b), which includes the words ``and copyrighted.''

IV. Effect on State Authority To Administer Federal Programs

Since this amendment only revises the description of the document,

and does not impose new duties on owners or operators that choose to

rely on letters of credit, EPA will not require states to adopt this

change as part of their approved UIC and UST programs or authorized

RCRA programs. Therefore, owners and operators in authorized states

that do not adopt this change will not be affected by this rule.

However, EPA encourages states to adopt this change.

In states that adopt this change and in states without approved UIC

or UST programs or states not authorized for the RCRA program, new

letter of credit instruments will have to include this new language.

V. Administrative Procedures Act Requirements

Under 5 U.S.C. 553(b)(3)(B), a rule is exempt from notice and

public comment requirements ``when the agency for good cause finds (and

incorporates the finding and a brief statement of reasons therefore in

the rules issues) that notice and public procedures thereon are

impractical, unnecessary, or contrary to the public interest.'' EPA

believes that comment is unnecessary because this amendment makes only

a change in the wording of the letter of credit instrument, but does

not change the requirements for using the letter of credit instrument

to demonstrate financial assurance. Therefore, EPA believes there is

good cause to make today's rule effective on August 9, 1994.

List of Subjects

40 CFR Part 144

Environmental protection, Administrative practice and procedure,

Confidential Business Information, Hazardous waste, Indian--lands,

Reporting and recordkeeping requirements, Surety bonds, Water supply.

40 CFR Part 264

Environmental protection, Air pollution control, Hazardous waste,

Insurance, Packaging and containers, Reporting and recordkeeping

requirements, Security measures, Surety bonds.

40 CFR Part 280

Environmental protection, Hazardous substances, Insurance, Oil

pollution, Reporting and recordkeeping requirements, Surety bonds,

Water pollution control, Water supply.

Dated: April 15, 1994.

Elliott Laws,

Assistant Administrator, Office of Solid Waste and Emergency Response.

Dated: April 25, 1994.

Robert Perciasepe,

Assistant Administrator, Office of Water.

PART 144--UNDERGROUND INJECTION CONTROL PROGRAM

1. The authority citation for part 144 continues to read as

follows:

Authority: Safe Drinking Water Act, 42 U.S.C. 300f et seq.;

Resource Conservation and Recovery Act, 42 U.S.C. 6901 et seq.

2. In Sec. 144.70, the last sentence in paragraph (d) is revised to

read as follows:

Sec. 144.70 Wording of the instruments.

* * * * *

(d) * * * 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''].

* * * * *

PART 264--STANDARDS FOR OWNERS AND OPERATORS OF HAZARDOUS WASTE

TREATMENT, STORAGE, AND DISPOSAL FACILITIES

1. The authority citation for part 264 continues to read as

follows:

Authority: 42 U.S.C. 6905, 6912(a), 6924, and 6925.

2. In Sec. 264.151, the last sentence in paragraphs (d) and (k) is

revised to read as follows:

Sec. 264.151 Wording of the instruments.

* * * * *

(d) * * * 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''].

* * * * *

(k) * * * 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''].

* * * * *

PART 280--TECHNICAL STANDARDS AND CORRECTIVE ACTION REQUIREMENTS

FOR OWNERS AND OPERATORS OF UNDERGROUND STORAGE TANKS (UST)

1. The authority citation for part 280 continues to read as

follows:

Authority: 42 U.S.C. 6912, 6991, 6991a, 6991b, 6991c, 6991d,

6991e, 6991f, and 6991h.

2. In Sec. 280.99, the last sentence of paragraph (b) is revised to

read as follows:

Sec. 280.99 Letter of credit.

* * * * *

(b) * * * 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''].

* * * * *

[FR Doc. 94-14171 Filed 6-9-94; 8:45 am]

BILLING CODE 6560-50-P