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''.

            Passed the House of Representatives September 25, 1996.

            Attest:

                                                ROBIN H. CARLE,

                                                                 Clerk.

                              By Jeff Trandahl,

                                                Assistant to the Clerk.
Leaking Underground Storage Tank Trust Fund Amendments Act of 1996 - Amends the Solid Waste Disposal Act to require the Administrator of the Environmental Protection Agency (EPA) to distribute to States at least 85 percent of the funds appropriated to EPA from the Leaking Underground Storage Tank Trust Fund each fiscal year for the reasonable costs under cooperative agreements of:  (1) State actions under the EPA program for petroleum release responses; (2) necessary administrative expenses directly related to corrective action and compensation programs under State financial responsibility requirements; (3) other costs of such programs in any instance, as determined by the State, in which an owner's or operator's financial resources (excluding resources provided by such programs) are inadequate to pay the costs of a corrective action without significantly impairing the ability to continue in business; (4) enforcement of an approved State or local underground storage tank (UST) program or similar provisions; and (5) State and local corrective actions pursuant to regulations regarding corrective action in response to UST releases.  Prohibits use of such funds to provide financial assistance to an owner or operator in meeting regulatory requirements for upgrading of existing UST systems. 
Sets forth requirements for allocation of funds to States. 
Makes inapplicable to Trust Fund amounts provided to owners or operators under programs described in (2), above, provisions for recovery of petroleum release corrective or enforcement action costs.
Leaking Underground Storage Tank Trust Fund Amendments Act of 1996