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[House Report 105-58]
[From the U.S. Government Publishing Office]

105th Congress                                             Rept. 105-58
                        HOUSE OF REPRESENTATIVES

 1st Session                                                     Part 1
_______________________________________________________________________

 
   LEAKING UNDERGROUND STORAGE TANK TRUST FUND AMENDMENTS ACT OF 1997

                                _______
                                

 April 17, 1997.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

_______________________________________________________________________

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

                              R E P O R T

                        [To accompany H.R. 688]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Commerce, to whom was referred the bill 
(H.R. 688) 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 without amendment and recommend 
that the bill do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     2
Background and Need for Legislation..............................     2
Hearings.........................................................     3
Committee Consideration..........................................     3
Rollcall Votes...................................................     4
Committee Oversight Findings.....................................     4
Committee on Government Reform and Oversight.....................     4
New Budget Authority and Tax Expenditures........................     4
Committee Cost Estimate..........................................     4
Congressional Budget Office Estimate.............................     4
Federal Mandates Statement.......................................     6
Advisory Committee Statement.....................................     6
Constitutional Authority Statement...............................     6
Applicability to Legislative Branch..............................     6
Committee Correspondence.........................................     7
Section-by-Section Analysis of the Legislation...................     9
Changes in Existing Law Made by the Bill, as Reported............    11

                          Purpose and Summary

    H.R. 688 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. 688 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. Numerous 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 last year by the Association of State and Territorial 
Solid Waste Management Officials (ASTSWMO) of 24 States 
revealed that only 26 percent of existing active tanks 
currently meet the 1998 technical compliance standards. Both 
ASTSWMO and the EPA testified this year that only about 30 
percent of underground storage tanks currently meet the 
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.
---------------------------------------------------------------------------
    The LUST tax has raised roughly $1.7 billion since 1987, 
and just $655 million or 38 percent has been spent, leaving an 
accumulated balance of more than $1 billion. The LUST tax 
expired on December 31, 1995. The accumulation of a large 
balance in the LUST Trust Fund has provided motivation to 
industry members on whose product the tax is levied to seek 
higher appropriation levels for the LUST program.
    H.R. 688 is identical to H.R. 3391 which passed the House 
in the 104th Congress under Suspension of the Rules by a voice 
vote on September 25, 1996.

                                Hearings

    The Subcommittee on Finance and Hazardous Materials held a 
hearing on H.R. 688 on March 20, 1997. Testimony was received 
from the following witnesses: Mr. Michael Shapiro, Acting 
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. Jeff Lykins, 
Vice President, The Lykins Companies, on behalf of the Ohio 
Petroleum Marketers Association and the Petroleum Marketers 
Association of America; and Mr. Jim Daskal, Counsel, National 
Coalition of Petroleum Retailers.

                        Committee Consideration

    On March 20, 1997, the Subcommittee on Finance and 
Hazardous Materials met in open markup session and approved 
H.R. 688, the Leaking Underground Storage Tank Trust Fund 
Amendments Act of 1997, for Full Committee consideration, 
without amendment, by a voice vote.
    On April 16, 1997, the Full Committee met in open markup 
session and ordered H.R. 688 reported to the House, without 
amendment, 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. 688 
reported. A motion by Mr. Bliley to order H.R. 688 reported to 
the House, without amendment, 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. 688 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. 688 
could lead to an increase in discretionary spending because of 
new uses established by the bill. The Committee notes that H.R. 
688 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, April 17, 1997.
Hon. Tom Bliley,
Chairman, Committee on Commerce,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 688, the Leaking 
Underground Storage Tank Trust Fund Amendments Act of 1997.
    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.
    Enclosure.

H.R. 688--Leaking Underground Storage Tank Trust Fund Amendments Act of 
        1997

    Summary: H.R. 688 would direct the Environment Protection 
Agency (EPA) to distribute to states at least 85 percent of the 
money appropriated to the agency from the Leaking Underground 
Storage Tank (LUST) Trust Fund each fiscal year. The bill also 
would allow two new uses for federal funds appropriated from 
the LUST fund, which could lead to a significant increase in 
discretionary spending. 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.
    Enacting H.R. 688 would not affect direct spending or 
receipts. Therefore, pay-as-you-go procedures would not apply 
to the bill. The bill contains no private-sector or 
intergovernmental mandates as defined in the Unfunded Mandates 
Reform Act of 1995 and would not impose any costs on state, 
local, or tribal governments.
    Estimated cost to the Federal Government: Under this bill, 
states could use LUST grant 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 1997, $60 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. 
(Outlays for these purposes in 1996 were $68 million.) Under 
these cooperative agreements, most funds are spent on oversight 
of cleanups conducted by private parties, although some funds 
may be used to finance 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.
    Estimated impact on State, local, and tribal governments: 
By requiring EPA to distribute to the states at least 85 
percent of the money appropriated to the agency from the LUST 
fund each year, the bill would assure states of a specified 
minimum proportion of available 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.
    Previous CBO estimate: On September 20, 1996, CBO prepared 
a cost estimate for H.R. 3391, a similar bill in the 104th 
Congress. The estimated budgetary impact of H.R. 688, as 
ordered reported by the Commerce Committee, is the same as that 
projected last year for H.R. 3391.
    Estimate prepared by: Federal Cost: Kim Cawley. Impact on 
State, Local, and Tribal Governments: Pepper Santalucia.
    Estimate approved by: Robert A. Sunshine, Deputy Assistant 
Director for Budget Analysis.

                       Federal Mandates Statement

     Pursuant to section 423 of the Unfunded Mandates Reform 
Act, the Committee finds that the bill contains no private-
sector or intergovernmental mandates and agrees with the 
Director of the Congressional Budget Office that the bill would 
not impose any cost on State, local or tribal governments.

                      Advisory Committee Statement

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

                   Constitutional Authority Statement

     Pursuant to clause 2(l)(4) of rule XI of the Rules of the 
House of Representatives, the Committee finds that the 
Constitutional authority for this legislation is provided in 
Article I, section 8, clause 3, which grants Congress the power 
to regulate commerce with foreign nations, among the several 
States, and with the Indian tribes.

                   Applicability to Legislative Branch

     The Committee finds that the legislation does not relate 
to the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

                        Committee Correspondence

                     U.S. House of Representatives,
                               Committee on Ways and Means,
                                    Washington, DC, April 17, 1997.
Hon. Thomas J. Bliley, Jr.,
Chairman, House Committee on Commerce, Rayburn House Office Building, 
        Washington, DC.
    Dear Chairman Bliley: I understand that on Wednesday, April 
16, 1997, the Committee on Commerce ordered reported H.R. 688, 
the Leaking Underground Storage Tank Trust Fund Amendments of 
1997. The bill, as introduced, was referred 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, the Trust Fund provisions, including 
expenditures purposes and dedication of excise tax revenues, 
are within the jurisdiction of the Committee on Ways and Means.
    I have been informed that the House is due to consider this 
bill on the Floor as early as next week. In order to expedite 
the consideration of this legislation, and because the 
provision in question is noncontroversial and was approved by 
the House of Representatives in the 104th Congress (as part of 
H.R. 3391), 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 interest to the Committee on Ways and Means in 
the future.
    This is also being done with the understanding that when 
the House considers H.R. 688, an amendment will be incorporated 
on the Floor to include clarifying statutory language which I 
am transmitting with this letter. I am also transmitting an 
accompanying technical explanation. Finally, I would appreciate 
your response to this letter, confirming this understanding 
with respect to H.R. 688, and would ask that all of these 
materials be included in the Commerce Committee's report on 
H.R. 688.
    Thank you for your cooperation and assistance on this 
matter. With best personal regards.
            Sincerely,
                                             Bill Archer, Chairman.

                         Amendment to H.R. 688

    Page 2, strike line 6, and insert the following:

TITLE I--DISTRIBUTIONS FROM LEAKING UNDERGROUND STORAGE TANK TRUST FUND

SEC. 101. LEAKING UNDERGROUND STORAGE TANKS.

    Page 5, strike lines 15 through 18.
    Page 5, line 19, strike ``(c)'' and insert ``(b)''.
    At the end of the bill, insert the following new title:

               TITLE II--EXTENSION OF TRUST FUND PURPOSES

SEC. 201. EXTENSION OF TRUST FUND PURPOSES.

    Paragraph (1) of section 9508(c) of the Internal Revenue 
Code of 1986 (relating to expenditures) is amended by striking 
``to carry out section 9003(h)'' and all that follows and 
inserting ``to carry out--
          ``(A) 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
          ``(B) section 9004(f) of the Solid Waste Disposal Act 
        (as in effect on the date of the enactment of the 
        Leaking Underground Storage Tank Trust Fund Amendments 
        Act of 1997).''

         Technical Explanation of Proposed Title II of H.R. 688

    Proposed Title II of H.R. 688 amends the Leaking 
Underground Storage Tank (``LUST'') Trust Fund provisions of 
the Internal Revenue Code (the ``Code'') (sec. 9508) to permit 
the expenditures authorized by Title I of the bill. The LUST 
Trust Fund balance currently is approximately $1 billion. This 
balance is considered adequate to fund both the existing and 
new expenditure purposes of the LUST program at anticipated 
levels for the foreseeable future.
    The current LUST Trust Fund balance was derived primarily 
from an excise tax of 0.1 cent per gallon imposed on motor 
fuels (i.e., gasoline, diesel fuel, special motor fuels, 
aviation fuel, and inland waterway barge fuels) that otherwise 
are subject to tax under the Code. Imposition of the tax 
terminated after December 31, 1995. H.R. 688 and the proposed 
Title II do not reimpose the motor fuels excise tax.
    Proposed title II of H.R. 688 authorizes expenditure from 
the LUST Trust Fund for the expenditure purposes provided in 
the law, as amended by Title I of the bill. Thus, for example, 
in addition to the program expenditures authorized under 
present law, LUST Trust Fund monies may be spent for certain 
State program administrative costs associated with cleanups and 
corrective actions, for providing cleanup assistance to tank 
owners who would be put out of business without financial help, 
and for enforcement of certain 1998 environmental compliance 
standards. As provided under Title I of the bill, at least 85 
percent of annual appropriations from the LUST Trust Fund must 
be allocated to States for underground storage tank program 
activities.
    The provisions of the proposed Title II are effective on 
the date of enactment.
                                ------                                

                          House of Representatives,
                                     Committee on Commerce,
                                    Washington, DC, April 17, 1997.
Hon. Bill Archer,
Chairman, Committee on Ways and Means, House of Representatives, 
        Longworth House Office Building, Washington, DC.
    Dear Mr. Chairman: Thank you for your letter regarding your 
Committee's jurisdictional interest in H.R. 688, the Leaking 
Underground Storage Tank Trust Fund Amendments of 1997.
    I acknowledge your interest in this legislation and 
appreciate your cooperation in moving the bill to the House 
floor expeditiously. The Committee has reviewed your amendment 
and agrees to work with your Committee to address your concerns 
on the House Floor. I further agree that your decision to forgo 
further action on the bill will not prejudice the Ways and 
Means Committee with respect to its jurisdictional prerogatives 
on this or similar provisions.
    Thank you again for your cooperation.
            Sincerely,
                                              Tom Bliley, Chairman.

             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 
1997.''

              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.
    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.

         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 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 9001(2) (A)] 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 CODE OF 1986

SEC. 9508. LEAKING UNDERGROUND STORAGE TANK TRUST FUND.

  (a) Creation of Trust Fund.--
          * * * * * * *
  (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.
          * * * * * * *

                                
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