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104th Congress                                            Rept. 104-822
                        HOUSE OF REPRESENTATIVES

 2d Session                                                      Part 1
_______________________________________________________________________


 
   LEAKING UNDERGROUND STORAGE TANK TRUST FUND AMENDMENTS ACT OF 1996

                                _______
                                

               September 24, 1996.--Ordered to be printed

_______________________________________________________________________


  Mr. Bliley, from the Committee on Commerce, submitted the following

                              R E P O R T

                        [To accompany H.R. 3391]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Commerce, to whom was referred the bill 
(H.R. 3391) to amend the Solid Waste Disposal Act to require at 
least 85 percent of funds appropriated to the Environmental 
Protection Agency from the Leaking Underground Storage Tank 
Trust Fund to be distributed to States for cooperative 
agreements for undertaking corrective action and for 
enforcement of subtitle I of such Act, having considered the 
same, report favorably thereon with an amendment and recommend 
that the bill as amended do pass.

                                Contents

                                                                   Page
The Amendment....................................................     2
Purpose and Summary..............................................     3
Background and Need for Legislation..............................     3
Hearings.........................................................     4
Committee Consideration..........................................     5
Rollcall Votes...................................................     5
Committee Oversight Findings.....................................     5
Committee on Government Reform and Oversight.....................     5
New Budget Authority and Tax Expenditures........................     5
Committee Cost Estimate..........................................     5
Congressional Budget Office Estimate.............................     6
Inflationary Impact Statement....................................     7
Advisory Committee Statement.....................................     7
Section-by-Section Analysis of the Legislation...................     7
Committee Correspondence.........................................     9
Changes in Existing Law Made by the Bill, as Reported............    10

                               Amendment

  The amendment is as follows:
  Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Leaking Underground Storage Tank Trust 
Fund Amendments Act of 1996''.

SEC. 2. LEAKING UNDERGROUND STORAGE TANKS.

  (a) Trust Fund Distribution.--Section 9004 of the Solid Waste 
Disposal Act (42 U.S.C. 6991c) is amended by adding at the end the 
following new subsection:
  ``(f) Trust Fund Distribution to States.--
          ``(1) In general.--(A) The Administrator shall distribute to 
        States at least 85 percent of the funds appropriated to the 
        Environmental Protection Agency from the Leaking Underground 
        Storage Tank Trust Fund (in this subsection referred to as the 
        `Trust Fund') each fiscal year for the reasonable costs under 
        cooperative agreements entered into with the Administrator for 
        the following:
                  ``(i) States' actions under section 9003(h)(7)(A).
                  ``(ii) Necessary administrative expenses directly 
                related to corrective action and compensation programs 
                under section 9004(c)(1).
                  ``(iii) Enforcement of a State or local program 
                approved under this section or enforcement of this 
                subtitle or similar State or local provisions by a 
                State or local government.
                  ``(iv) State and local corrective actions pursuant to 
                regulations promulgated under section 9003(c)(4).
                  ``(v) Corrective action and compensation programs 
                under section 9004(c)(1) for releases from underground 
                storage tanks regulated under this subtitle in any 
                instance, as determined by the State, in which the 
                financial resources of an owner or operator, excluding 
                resources provided by programs under section 
                9004(c)(1), are not adequate to pay for the cost of a 
                corrective action without significantly impairing the 
                ability of the owner or operator to continue in 
                business.
          ``(B) Funds provided by the Administrator under subparagraph 
        (A) may not be used by States for purposes of providing 
        financial assistance to an owner or operator in meeting the 
        requirements respecting underground storage tanks contained in 
        section 280.21 of title 40 of the Code of Federal Regulations 
        (as in effect on the date of the enactment of this subsection) 
        or similar requirements in State programs approved under this 
        section or similar State or local provisions.
          ``(2) Allocation.--
                  ``(A) Process.--In the case of a State that the 
                Administrator has entered into a cooperative agreement 
                with under section 9003(h)(7)(A), the Administrator 
                shall distribute funds from the Trust Fund to the State 
                using the allocation process developed by the 
                Administrator for such cooperative agreements.
                  ``(B) Revisions to process.--The Administrator may 
                revise such allocation process only after--
                          ``(i) consulting with State agencies 
                        responsible for overseeing corrective action 
                        for releases from underground storage tanks and 
                        with representatives of owners and operators; 
                        and
                          ``(ii) taking into consideration, at a 
                        minimum, the total revenue received from each 
                        State into the Trust Fund, the number of 
                        confirmed releases from leaking underground 
                        storage tanks in each State, the number of 
                        notified petroleum storage tanks in each State, 
                        and the percent of the population of each State 
                        using groundwater for any beneficial purpose.
          ``(3) Recipients.--Distributions from the Trust Fund under 
        this subsection shall be made directly to the State agency 
        entering into a cooperative agreement or enforcing the State 
        program.
          ``(4) Cost recovery prohibition.--Funds provided to States 
        from the Trust Fund to owners or operators for programs under 
        section 9004(c)(1) for releases from underground storage tanks 
        are not subject to cost recovery by the Administrator under 
        section 9003(h)(6).''.
  (b) Conforming Amendment.--Section 9508(c)(1) of the Internal Revenue 
Code of 1986 is amended by inserting before the period at the end the 
following: ``and to carry out section 9004(f) of such Act''.
  (c) Technical Amendments.--Subtitle I of the Solid Waste Disposal Act 
(42 U.S.C. 6991 et seq.) is amended as follows:
          (1) Section 9001(3)(A) (42 U.S.C. 6991(3)(A)) is amended by 
        striking out ``sustances'' and inserting in lieu thereof 
        ``substances''.
          (2) Section 9003(f)(1) (42 U.S.C. 6991b(f)(1)) is amended by 
        striking out ``subsection (c) and (d)'' and inserting in lieu 
        thereof ``subsections (c) and (d)''.
          (3) Section 9004(a) (42 U.S.C. 6991c(a)) is amended by 
        striking out ``in 9001(2)(A)'' and inserting in lieu thereof 
        ``in section 9001(2)(A)''.
          (4) Section 9005 (42 U.S.C. 6991d) is amended--
                  (A) in subsection (a), by striking out ``study 
                taking'' and inserting in lieu thereof ``study, 
                taking'';
                  (B) in subsection (b)(1), by striking out 
                ``relevent'' and inserting in lieu thereof 
                ``relevant''; and
                  (C) in subsection (b)(4), by striking out 
                ``Evironmental'' and inserting in lieu thereof 
                ``Environmental''.

                          Purpose and Summary

    H.R. 3391 strengthens the Underground Storage Tank program 
by providing more flexibility to States in the use of Federal 
funding, and helps States meet rising enforcement needs brought 
about by the U.S. Environmental Protection Agency's (EPA) leak 
detection and prevention regulations.
    H.R. 3391 amends Subtitle I of the Solid Waste Disposal Act 
to require that the EPA give out at least 85 percent of its 
annual appropriation from the Leaking Underground Storage Tank 
Trust Fund to States under cooperative agreements, and 
authorizes several new uses for that funding. Those uses 
include enforcement of EPA's leak detection and prevention 
regulations; administration of State financial assurance funds; 
and payments into State financial assurance funds for 
reimbursements to owners and operators of leaking tanks in 
cases where the cost of corrective action would create a 
financial hardship.

                  Background and Need for Legislation

    The Underground Storage Tank (UST) program was enacted as 
part of the Resource Conservation and Recovery Act (RCRA) in 
1984, and has been codified as Subtitle I. The program requires 
the EPA to set forth leak detection and prevention standards 
for USTs and gives the agency authority to compel tank owners 
and operators to take corrective action to clean up leaking 
tanks or to close the tanks. It also gives the agency authority 
to set financial assurance requirements for tank owners, i.e., 
requirements that they have insurance or some other form of 
financial backing to pay for cleanup and third-party claims in 
case of a leak.
    In 1986, as part of the Superfund Amendments and 
Reauthorization Act, Congress passed the Leaking Underground 
Storage Tank (LUST) Trust Fund, paid for with a one-tenth of 
one cent tax on motor fuel sales. The trust fund is to be used 
by EPA or the States, in accordance with Federal law, to 
enforce the UST corrective action requirements; to conduct 
cleanups where no solvent responsible party can be found, where 
there is a known but recalcitrant responsible party, or where a 
responsible party does not have enough financial assurance to 
pay for the entire cleanup; to take corrective action in cases 
of emergency; and to take cost recovery actions against 
parties.
    In the wake of the Federal legislation, many States also 
created trust funds, capitalized through State gas taxes, fees, 
and other mechanisms, to pay for cleanups. The Federal statute 
envisioned that States would create these financial assurance 
trust funds to act as a dedicated source for tank cleanups, and 
that those funds could serve as evidence that a tank owner or 
operator had adequate funds to pay for a cleanup and/or third-
party claims. States spend about $1 billion per year from their 
trust funds. However, in recent years, the claims against those 
funds have risen dramatically, so that nationwide, annual 
claims now exceed payments into the State funds by some $300 
million. Nineteen States now have claims against their funds 
that exceed fund balances.
    In accordance with statutory requirements, EPA issued leak 
detection and prevention standards in 1988. The leak prevention 
standards for USTs that were in the ground in 1988 do not 
become effective until December 22, 1998. However, a survey 
conducted earlier this year by the Association of State and 
Territorial Solid Waste Management Officials of 24 States 
revealed that only 26 percent of existing active tanks 
currently meet the 1998 technical compliance standards. There 
are approximately 1.2 million operating tanks nationwide, and 
315,000 leaks that have been detected, in many cases as a 
result of the upgrading process.1 This leaves regulators 
facing a large bulge over the next two years, both in terms of 
the number of sites where corrective action will be required 
and the number of tanks for which upgrades will be required. 
Although the Committee does not have data on the issue, it is 
likely that many of those who have not yet complied with the 
1998 regulations are small owners and operators whose ability 
to comply is questionable.
---------------------------------------------------------------------------
    \1\ EPA Office of Underground Storage Tanks 1996 data.
---------------------------------------------------------------------------
    Congress has historically provided around $70 million 
annually in appropriations from the LUST Trust Fund. Annual 
income from the taxes is significantly higher. Just $595 
million, or 36 percent, of the $1.636 billion collected in LUST 
taxes and accrued interest has been appropriated since 1987, 
leaving an accumulated balance of nearly $1.1 billion. This has 
motivated industry members who pay the tax to seek higher 
appropriation levels. The FY 1997 VA-HUD-Independent Agencies 
appropriations bill (H.R. 3666) includes $60 million for the 
LUST program.

                                Hearings

    The Subcommittee on Commerce, Trade, and Hazardous 
Materials held a hearing on H.R. 3391 on July 26, 1996. 
Testimony was received from the following witnesses: Mr. Jim 
Mathews, Deputy Assistant Administrator, Office of Solid Waste 
and Emergency Response, U.S. Environmental Protection Agency; 
Ms. Mary Jean Yon, President, Association of State and 
Territorial Solid Waste Management Officials; Mr. Jeffrey L. 
Leiter, Counsel, Collier, Shannon Rill & Scott, PLLC, 
representing the Society of Independent Gasoline Marketers of 
America and the National Association of Convenience Stores; Mr. 
Phillip R. Chisholm, Executive Vice President, Petroleum 
Marketers Association of America; and Ms. Mary Ann Ragona, 
Executive Director, Long Island Gasoline Retailers Association, 
accompanied by Mr. Jim Daskal, Counsel, representing the 
National Coalition of Petroleum Retailers.

                        Committee Consideration

    On July 31, 1996, the Subcommittee on Commerce, Trade, and 
Hazardous Materials met in open markup session and approved 
H.R. 3391, the Leaking Underground Storage Tank Trust Fund 
Amendments Act of 1996, for Full Committee consideration, as 
amended, by a voice vote.
    On September 18, 1996, the Full Committee met in open 
markup session and ordered H.R. 3391, the Leaking Underground 
Storage Tank Trust Fund Amendments Act of 1996, reported to the 
House, as amended, by a voice vote.

                             Rollcall Votes

    Clause 2(l)(2)(B) of Rule XI of the Rules of the House 
requires the Committee to list the recorded votes on the motion 
to report legislation and amendments thereto. There were no 
recorded votes taken in connection with ordering H.R. 3391 
reported. A motion by Mr. Moorhead to order H.R. 3391 reported 
to the House, as amended, was agreed to by a voice vote, a 
quorum being present.

                      Committee Oversight Findings

    Pursuant to clause 2(l)(3)(A) of rule XI of the Rules of 
the House of Representatives, the Committee held a legislative 
hearing and made findings that are reflected in this report.

              Committee on Government Reform and Oversight

    Pursuant to clause 2(l)(3)(D) of Rule XI of the Rules of 
the House of Representatives, no oversight findings have been 
submitted to the Committee by the Committee on Government 
Reform and Oversight.

               New Budget Authority and Tax Expenditures

    In compliance with clause 2(l)(3)(B) of Rule XI of the 
Rules of the House of Representatives, the Committee states 
that H.R 3391 would result in no new or increased budget 
authority or tax expenditures or revenues.

                        Committee Cost Estimate

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 403 of the Congressional Budget Act of 1974 with the 
following clarification: The Committee notes that the 
Congressional Budget Office finds that enactment of H.R. 3391 
could lead to a significant increase in discretionary spending 
because of new uses established by the bill. The Committee 
notes that H.R. 3391 does not require any new spending. New 
uses authorized by the bill will compete with existing uses for 
any funds made available through appropriations. Whether 
additional funds are provided for the program continues to be a 
discretionary function of the appropriations process.

                  Congressional Budget Office Estimate

    Pursuant to clause 2(l)(3)(C) of Rule XI of the Rules of 
the House of Representatives, the following is the cost 
estimate provided by the Congressional Budget Office pursuant 
to section 403 of the Congressional Budget Act of 1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                Washington, DC, September 20, 1996.
Hon. Thomas J. Bliley, Jr.,
Chairman, Committee on Commerce,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
reviewed H.R. 3391, the Leaking Underground Storage Tank Trust 
Fund Amendments Act of 1996, as ordered reported by the House 
Committee on Commerce on September 18, 1996. Enacting H.R. 3391 
could lead to a significant increase in discretionary spending 
because the bill would establish new uses for spending from the 
Leaking Underground Storage Tank (LUST) Trust Fund. CBO has no 
basis for predicting whether or to what extent the Congress 
might increase appropriations to accommodate the possible new 
uses of balances in the LUST fund. The bill would also instruct 
the Environmental Protection Agency (EPA) to distribute to 
states at least 85 percent of the money appropriated to the 
agency from the LUST fund each fiscal year. Enacting H.R. 3391 
would not affect direct spending or receipts. Therefore, pay-
as-you-go procedures would not apply to the bill.
    The bill would allow two new uses for federal funds 
appropriated from the LUST fund. Under this bill, states could 
use LUST money to help fund state programs that pay for the 
cost of cleaning up leaks from regulated underground storage 
tanks, or to compensate tank owners for the cost of conducting 
such cleanups. States also would be authorized to use federal 
funds to enforce federal standards for preventing leaks from 
underground storage tanks. The federal cost to assist states 
with these efforts would depend on the amount of appropriations 
provided. Because the gap between existing resources and state 
cleanup needs is large, there could be significant demand for 
federal assistance under this bill.
    In 1996, $46 million was appropriated from the LUST fund 
for EPA's administration and oversight of the program, and for 
funding cooperative agreements with state LUST programs.
    Under these cooperative agreements, most funds are spent on 
oversight of cleanups conducted by private parties, although 
some funds may be used to fund cleanups directly when no 
financially viable private party exists. Most states operate 
state assurance funds, separate from the federal LUST program, 
to conduct cleanups and to reimburse owners and operators of 
underground tanks for cleanup costs. The most recent data 
collected by the states indicates that annual receipts to state 
assurance funds are about $1.2 billion, and current balances in 
these funds amount to about $1.3 billion. The assurance funds 
face outstanding claims of $2.8 billion from tank owners and 
operators seeking compensation for cleanups already conducted. 
According to EPA, the average cleanup under the LUST program 
costs $125,000, and there are over 170,000 underground tanks 
currently undergoing or awaiting cleanup over the next decade. 
Thus, current cleanup needs may exceed $20 billion, and the 
demand for additional monies from the federal LUST fund could 
total hundreds of millions of dollars annually for many years.
    The bill contains no private-sector intergovernmental 
mandates as defined in the Unfunded Mandates Reform Act of 1995 
(Public Law 104-4). By requiring EPA to distribute to the 
states at least 85 percent of the money appropriated to the 
agency from the LUST funds. (According to EPA, states have 
received between 81 percent and 89 percent of the funds 
appropriated since 1989.) The bill would also grant states more 
flexibility in using those funds.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Kim Cawley 
(for federal costs), and Pepper Santalucia (for the state and 
local impact).
            Sincerely,
                                         June E. O'Neill, Director.

                     Inflationary Impact Statement

    Pursuant to clause 2(l)(4) of Rule XI of the Rules of the 
House of Representatives, the Committee finds that the bill 
would have no inflationary impact.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act are created by this 
legislation.

             Section-by-Section Analysis of the Legislation

Section 1. Short title

    This section designates the short title of the Act as the 
``Leaking Underground Storage Tank Trust Fund Amendments Act of 
1996.''

Section 2. Leaking underground storage tanks

    This section amends section 9004 of the Solid Waste 
Disposal Act by adding at the end a new subsection (f).
    The new subsection requires the EPA Administrator to 
distribute at least 85 percent of the funds appropriated to the 
EPA from the Leaking Underground Storage Tank Trust Fund to the 
States for reasonable costs under cooperative agreements 
entered into with the Administrator for five purposes. Since 
funding is distributed by the EPA through the cooperative 
agreements, EPA must approve through the cooperative agreement 
all State uses of Federal funds, as it does under existing law.
    Over the years, EPA has given out an average of 86 percent 
of its annual appropriation to the States. At most, EPA has 
kept 19 percent of the annual appropriation for its own 
expenses; the low has been 11 percent. Existing law provides 
that EPA may use its portion to carry out its corrective action 
authorities under the statute, but primarily EPA uses the 
retained funding to oversee activities undertaken by the 
States. By requiring that a specified percentage of annual 
appropriations be distributed to the States, the legislation 
helps assure that Federal funding will be used efficiently to 
serve the purposes of the Act.
    Although the amount of Federal funding historically 
appropriated is small in comparison with the anticipated 
nationwide cost of corrective action and compliance, the 
expanded uses of the fund add flexibility for the States, in 
cooperation with the EPA, to decide what is the best use within 
each State for the Federal funding. Using the funds for 
enforcement of the UST 1998 leak prevention standards, as well 
as other technical requirements, will help prevent future 
leaks, and, therefore, is a most effective use of the Federal 
trust funds.
    Pursuant to clause (f)(1)(A)(i), States may use the funds 
to take actions under 9003(h)(7)(A). These are the existing 
purposes for which funding may be used. Those purposes include 
enforcement of corrective action requirements, corrective 
actions taken by State and local governments at responsible 
party sites, and cost recovery actions.
    Pursuant to clause (f)(1)(A)(ii), States may use the funds 
to cover necessary administrative expenses directly related to 
the operation of State financial assurance programs under 
9004(c)(1).
    Pursuant to clause (f)(1)(A)(iii), States may use the funds 
to enforce Federal, State or local tank leak detection, 
prevention and other requirements through State and local 
programs.
    Pursuant to clause (f)(1)(A)(iv), States may continue to 
use the funds for State and local corrective actions at 
responsible party sites pursuant to section 9003(c)(4). This 
provision clarifies the authority of the EPA to continue to 
provide funding for States' administrative costs of the 
cooperative agreements, including oversight of corrective 
action performed by responsible parties.
    Pursuant to clause (f)(1)(A)(v), States may use the funds 
to take corrective actions and compensate parties for cleanups 
of releases through 9004(c)(1) programs in cases where the 
State determines that the financial resources of an owner or 
operator, excluding resources provided by programs under 
9004(c)(1), are not adequate to pay for the corrective action 
without significantly impairing the ability of the owner or 
operator to continue in business. A concern prompting this 
provision is the possibility that the cost of corrective action 
could lead to bankruptcy for operators in rural areas which 
only have one gas station. Although this legislation does not 
require the States to take into account the availability of 
State resources provided by programs under 9004(c)(1) in 
determining whether an owner or operator has adequate resources 
to pay for a corrective action, it is the intent of this 
Committee that the States will in the large majority of 
instances rely upon available State resources.
    While this bill allows for several new uses of the LUST 
Trust Fund, the legislation does not prioritize among uses. The 
Committee finds, consistent with testimony heard from EPA, the 
States and industry representatives, that funding for existing 
uses (including enforcement of corrective action requirements, 
corrective actions taken by State and local governments at 
responsible party sites, and cost recovery actions) most 
effectively serves the needs for protection of human health and 
the environment. The Committee also finds that there will be a 
significant funding need in coming years for enforcement of the 
tank leak detection and prevention requirements through State 
and local programs. It is this Committee's desire that the 
distribution of available Federal funding recognize the 
importance of enforcement to protection of human health and the 
environment.
    The bill prohibits funding to be used for direct financial 
assistance to tank owners and operators to meet the 1998 tank 
standards on the theory that providing such assistance would be 
a competitive disadvantage to owners and operators who have 
already complied with the requirements.
    The Committee notes that decisions about financial 
assistance to owners and operators continue to rest primarily 
with the States. Despite limitations on the use of Federal 
funding, States retain discretion to determine what use to make 
of State funding.
    The bill also requires EPA to continue distributing funds 
in accordance with the allocation process it currently uses, 
which is based on the number of releases in each State, the 
number of tanks in each State, and the percentage of the 
population which depends on groundwater for drinking water and 
other purposes. It requires the agency to consult with States 
and representatives of owners and operators before making any 
changes to the allocation process.
    To ensure that money EPA grants to the States remains with 
the States, the bill prohibits EPA from recovering funds from 
owners and operators where those funds were provided to owners 
and operators through the State financial assurance programs.

                        Committee Correspondence

                       Committee on Ways and Means,
                             U.S. House of Representatives,
                                Washington, DC, September 19, 1996.
Hon. Thomas J. Bliley, Jr.,
Chairman, House Committee on Commerce,
Rayburn House Office Building, Washington, DC.
    Dear Chairman Bliley: I understand that on Wednesday, 
September 18, 1996, the Committee on Commerce ordered reported 
H.R. 3391, the Leaking Underground Storage Tank Trust Fund 
Amendments Act of 1996. The bill, as introduced, was referred 
to the Committee on Commerce, and in addition, to the Committee 
on Ways and Means. The legislation contains a conforming 
amendment to Section 9508 of the Internal Revenue Code, which 
is necessary to allow expenditures from the Leaking Underground 
Storage Tank Trust Fund for purposes not included under present 
law.
    As you know, provisions which amend the Internal Revenue 
Code are solely within the jurisdiction of the Committee on 
Ways and Means, and under normal circumstances the Committee 
would meet to consider the bill. However, it is my 
understanding that your Committee is seeking to have the bill 
considered on the Suspension Calendar as early as next week.
    In order to expedite the consideration of this legislation, 
and because the provision in question is noncontroversial, I do 
not believe that a markup by the Committee on Ways and Means 
will be necessary. However, this is being done with the 
understanding that the Committee will be treated without 
prejudice in the future as to its jurisdictional prerogatives 
on this or similar provisions, and it should not be considered 
as precedent for consideration of matters of jurisdictional 
interests to the Committee on Ways and Means in the future.
    Finally, I would appreciate your response to this letter, 
confirming this understanding with respect to H.R. 3391, and 
would ask that a copy our exchange of letters on this matter be 
included in the Commerce Committee's report on H.R. 3391.
    Thank you for your cooperation and assistance on this 
matter. With best personal regards,
            Sincerely,
                                             Bill Archer, Chairman.
                                ------                                

                          House of Representatives,
                                     Committee on Commerce,
                                Washington, DC, September 19, 1996.
Hon. Bill Archer,
Chairman, Committee on Ways and Means,
Longworth House Office Building, Washington, DC.
    Dear Mr. Chairman: Thank you for you letter regarding the 
jurisdictional interests of the Committee on Ways and Means in 
H.R. 3391, the Leaking Underground Storage Tank Trust Fund 
Amendments Act of 1996. As you know, the Committee on Commerce 
ordered this measure reported September 18, 1996. In the 
interest of moving the bill forward, I appreciate your decision 
not to exercise your jurisdictional interest in H.R. 3391.
    In addition to recognizing your jurisdictional claims, I 
would like to thank you and your staff for your cooperation 
during this hectic time of year. I look forward to speedy 
consideration of this bill on the House Floor, and appreciate 
your assistance in that regard.
            Sincerely,
                                   Thomas J. Bliley, Jr., Chairman.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3 of rule XIII of the Rules of the 
House of Representatives, changes in existing law made by the 
bill, as reported, are shown as follows (existing law proposed 
to be omitted is enclosed in black brackets, new matter is 
printed in italic, existing law in which no change is proposed 
is shown in roman):

                        SOLID WASTE DISPOSAL ACT

                     TITLE II--SOLID WASTE DISPOSAL

                     Subtitle A--General Provisions

          * * * * * * *

          Subtitle I--Regulation of Underground Storage Tanks

                       definitions and exemptions

    Sec. 9001. For the purposes of this subtitle--
          (1) * * *
          * * * * * * *
          (3) The term ``owner'' means--
                  (A) in the case of an underground storage 
                tank in use on the date of enactment of the 
                Hazardous and Solid Waste Amendments of 1984, 
                or brought into use after that date, any person 
                who owns an underground storage tank used for 
                the storage, use, or dispensing of regulated 
                [sustances] substances, and
          * * * * * * *

       release detection, prevention, and correction regulations

    Sec. 9003. (a) * * *
          * * * * * * *
    (f) Effective Dates.--(1) Regulations issued pursuant to 
[subsection] subsections (c) and (d) of this section, and 
standards issued pursuant to subsection (e) of this section, 
for underground storage tanks containing regulated substances 
defined in section 9001(2)(B) (petroleum, including crude oil 
or any fraction thereof which is liquid at standard conditions 
of temperature and pressure) shall be effective not later than 
thirty months after the date of enactment of the Hazardous and 
Solid Waste Amendments of 1984.
          * * * * * * *

                       approval of state programs

    Sec. 9004. (a) Elements of State Program.--Beginning 30 
months after the date of enactment of the Hazardous and Solid 
Waste Amendments of 1984, any State may, submit an underground 
storage tank release detection, prevention, and correction 
program for review and approval by the Administrator. The 
program may cover tanks used to store regulated substances 
referred to in section 9001(2) (A) or (B) or both. A State 
program may be approved by the Administrator under this section 
only if the State demonstrates that the State program includes 
the following requirements and standards and provides for 
adequate enforcement of compliance with such requirements and 
standards--
          (1) * * *
          * * * * * * *
  (f) Trust Fund Distribution to States.--
          (1) In general.--(A) The Administrator shall 
        distribute to States at least 85 percent of the funds 
        appropriated to the Environmental Protection Agency 
        from the Leaking Underground Storage Tank Trust Fund 
        (in this subsection referred to as the ``Trust Fund'') 
        each fiscal year for the reasonable costs under 
        cooperative agreements entered into with the 
        Administrator for the following:
                  (i) States' actions under section 
                9003(h)(7)(A).
                  (ii) Necessary administrative expenses 
                directly related to corrective action and 
                compensation programs under section 9004(c)(1).
                  (iii) Enforcement of a State or local program 
                approved under this section or enforcement of 
                this subtitle or similar State or local 
                provisions by a State or local government.
                  (iv) State and local corrective actions 
                pursuant to regulations promulgated under 
                section 9003(c)(4).
                  (v) Corrective action and compensation 
                programs under section 9004(c)(1) for releases 
                from underground storage tanks regulated under 
                this subtitle in any instance, as determined by 
                the State, in which the financial resources of 
                an owner or operator, excluding resources 
                provided by programs under section 9004(c)(1), 
                are not adequate to pay for the cost of a 
                corrective action without significantly 
                impairing the ability of the owner or operator 
                to continue in business.
          (B) Funds provided by the Administrator under 
        subparagraph (A) may not be used by States for purposes 
        of providing financial assistance to an owner or 
        operator in meeting the requirements respecting 
        underground storage tanks contained in section 280.21 
        of title 40 of the Code of Federal Regulations (as in 
        effect on the date of the enactment of this subsection) 
        or similar requirements in State programs approved 
        under this section or similar State or local 
        provisions.
          (2) Allocation.--
                  (A) Process.--In the case of a State that the 
                Administrator has entered into a cooperative 
                agreement with under section 9003(h)(7)(A), the 
                Administrator shall distribute funds from the 
                Trust Fund to the State using the allocation 
                process developed by the Administrator for such 
                cooperative agreements.
                  (B) Revisions to process.--The Administrator 
                may revise such allocation process only after--
                          (i) consulting with State agencies 
                        responsible for overseeing corrective 
                        action for releases from underground 
                        storage tanks and with representatives 
                        of owners and operators; and
                          (ii) taking into consideration, at a 
                        minimum, the total revenue received 
                        from each State into the Trust Fund, 
                        the number of confirmed releases from 
                        leaking underground storage tanks in 
                        each State, the number of notified 
                        petroleum storage tanks in each State, 
                        and the percent of the population of 
                        each State using groundwater for any 
                        beneficial purpose.
          (3) Recipients.--Distributions from the Trust Fund 
        under this subsection shall be made directly to the 
        State agency entering into a cooperative agreement or 
        enforcing the State program.
          (4) Cost recovery prohibition.--Funds provided to 
        States from the Trust Fund to owners or operators for 
        programs under section 9004(c)(1) for releases from 
        underground storage tanks are not subject to cost 
        recovery by the Administrator under section 9003(h)(6).

        inspections, monitoring, testing, and corrective action

    Sec. 9005. (a) Furnishing Information.--For the purposes of 
developing or assisting in the development of any regulation, 
conducting any [study taking] study, taking any corrective 
action, or enforcing the provisions of this subtitle, any owner 
or operator of an underground storage tank (or any tank subject 
to study under section 9009 that is used for storing regulated 
substances) shall, upon request of any officer, employee or 
representative of the Environmental Protection Agency, duly 
designated by the Administrator, or upon request of any duly 
designated officer, employee, or representative of a State 
acting pursuant to subsection (h)(7) of section 9003 or with an 
approved program, furnish information relating to such tanks, 
their associated equipment, their contents, conduct monitoring 
or testing, permit such officer at all reasonable times to have 
access to, and to copy all records relating to such tanks and 
permit such officer to have access for corrective action. For 
the purposes of developing or assisting in the development of 
any regulation, conducting any study, taking corrective action, 
or enforcing the provisions of this subtitle, such officers, 
employees, or representatives are authorized--
          (1) to enter at reasonable times any establishment or 
        other place where an underground storage tank is 
        located;
          (2) to inspect and obtain samples from any person of 
        any regulated substances contained in such tank;
          (3) to conduct monitoring or testing of the tanks, 
        associated equipment, contents, or surrounding soils, 
        air, surface water or ground water, and
          (4) to take corrective action.
Each such inspection shall be commenced and completed with 
reasonable promptness.
    (b) Confidentiality.--(1) Any records, reports, or 
information obtained from any persons under this section shall 
be available to the public, except that upon a showing 
satisfactory to the Administrator (or the State, as the case 
may be) by any person that records, reports, or information, or 
a particular part thereof, to which the Administrator (or the 
State, as the case may be) or any officer, employee, or 
representative thereof has access under this section if made 
public, would divulge information entitled to protection under 
section 1905 of title 18 of the United States Code, such 
information or particular portion thereof shall be considered 
confidential in accordance with the purposes of that section, 
except that such record, report, document, or information may 
be disclosed to other officers, employees, or authorized 
representatives of the United States concerned with carrying 
out this Act, or when [relevent] relevant in any proceeding 
under this Act.
          * * * * * * *
    (4) Notwithstanding any limitation contained in this 
section or any other provision of law, all information reported 
to, or otherwise obtained, by the Administrator (or any 
representative of the Administrator) under this Act shall be 
made available, upon written request of any duly authorized 
committee of the Congress, to such committee (including 
records, reports, or information obtained by representatives of 
the [Evironmental] Environmental Protection Agency).
          * * * * * * *
                              ----------                              


            SECTION 9508 OF THE INTERNAL REVENUE ACT OF 1986

SEC. 9508. LEAKING UNDERGROUND STORAGE TANK TRUST FUND.

  (a) * * *
          * * * * * * *
  (c) Expenditures.--
          (1) In general.--Except as provided in paragraph (2), 
        amounts in the Leaking Underground Storage Tank Trust 
        Fund shall be available, as provided in appropriation 
        Acts, only for purposes of making expenditures to carry 
        out section 9003(h) of the Solid Waste Disposal Act as 
        in effect on the date of the enactment of the Superfund 
        Amendments and Reauthorization Act of 1986 and to carry 
        out section 9004(f) of such Act.
          * * * * * * *