[Federal Register Volume 70, Number 173 (Thursday, September 8, 2005)]
[Rules and Regulations]
[Pages 53420-53478]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-16300]



[[Page 53419]]

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Part II





Environmental Protection Agency





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40 CFR Parts 124, 260, et al.



Hazardous Waste Management System; Standardized Permit for RCRA 
Hazardous Waste Management Facilities; Final Rule

Federal Register / Vol. 70, No. 173 / Thursday, September 8, 2005 / 
Rules and Regulations

[[Page 53420]]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 124, 260, 261, 267, and 270

[RCRA-2001-0029; FRL-7948-4]
RIN 2050-AE44


Hazardous Waste Management System; Standardized Permit for RCRA 
Hazardous Waste Management Facilities

AGENCY: Environmental Protection Agency.

ACTION: Final rule.

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SUMMARY: The Environmental Protection Agency (EPA) is finalizing 
revisions to the RCRA hazardous waste permitting program, originally 
proposed on October 12, 2001, to allow for a ``standardized permit.'' 
The standardized permit will be available to RCRA treatment, storage, 
and disposal facilities (TSDs) otherwise subject to RCRA permitting 
that generate and then store or non-thermally treat hazardous waste on-
site in tanks, containers, and containment buildings.
    The standardized permit will also be available to facilities which 
receive hazardous waste generated off-site by a generator under the 
same ownership as the receiving facility, and which then store or non-
thermally treat the hazardous waste in containers, tanks, or 
containment buildings. The standardized permit will streamline the 
permitting process by allowing facilities to obtain and modify permits 
more easily, while still achieving the same level of environmental 
protection as individual permits.
    This rule finalizes the proposal, with changes based on public 
comments. In the preamble to proposed rule, the Agency also requested 
comments on other permitting-related topics including: how cleanups 
under non-RCRA state cleanup programs might be reflected in RCRA 
permits; the conclusions about captive insurance in a March, 2001 
report by EPA's Inspector General; and whether insurers that provide 
financial assurance for hazardous waste and PCB facilities have a 
minimum rating from commercial rating services. The Agency is not 
taking action at this point on these questions.

DATES: This rule is effective on October 11, 2005. The incorporation by 
reference of certain publications listed in the rule is approved by the 
Director of the Federal Register as of October 11, 2005.

ADDRESSES: EPA has established a docket for this action under Docket ID 
No. RCRA-2001-0029. All documents in the docket are listed in the 
DOCKET index at http://www.epa.gov/edocket. Although listed in the 
index, some information is not publicly available, i.e., CBI or other 
information whose disclosure is restricted by statute. Certain other 
material, such as copyrighted material, is not placed on the Internet 
and will be publicly available only in hard copy form. Publicly 
available docket materials are available either electronically in 
DOCKET or in hard copy at the Resource Conservation and Recovery Act 
(RCRA) Docket, EPA/DC, EPA West, Room B102, 1301 Constitution Ave., 
NW., Washington, DC. The Public Reading Room is open from 8:30 a.m. to 
4:30 p.m., Monday through Friday, excluding legal holidays. The 
telephone number for the Public Reading Room is (202) 566-1744, and the 
telephone number for the RCRA Docket is (202) 566-0270

FOR FURTHER INFORMATION CONTACT: Jeff Gaines, Permits and State 
Programs Division, Office of Solid Waste, Mail Code 5303W, 
Environmental Protection Agency,1200 Pennsylvania Ave., NW., 
Washington, DC 20460; telephone number: 703-308-8655; fax number: 703-
308-8609; e-mail address: [email protected].

SUPPLEMENTARY INFORMATION:

How Can I Get Copies of the Standardized Permit Rule and Other Related 
Information?

    1. Docket. EPA has established an official public docket for this 
action under Docket ID No. RCRA-2001-0029. The official public docket 
is the collection of materials specifically referenced in this action, 
any public comments received, and other information related to this 
action. Although a part of the official docket, the public docket does 
not include Confidential Business Information (CBI) or other 
information whose disclosure is restricted by statute. The official 
public docket is available for public viewing at the RCRA Information 
Center in the EPA Docket Center, (EPA/DC) EPA West, Room B102, 1301 
Constitution Ave., NW., Washington, DC. The EPA Docket Center Public 
Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday through 
Friday, excluding legal holidays.
    2. Electronic Access. You may access this Federal Register document 
electronically through the EPA Internet under the ``Federal Register'' 
listings at http://www.epa.gov/fedrgstr/.
    An electronic version of the public docket is available through 
EPA's electronic public docket and comment system, EPA Dockets. You may 
use EPA Dockets at http://www.epa.gov/edocket/ to view public comments, 
access the index listing of the contents of the official public docket, 
and to access those documents in the public docket that are available 
electronically. Although not all docket materials may be available 
electronically, you may still access any of the publicly available 
docket materials through the docket facility identified above. Once in 
the system, select ``search,'' then key in the appropriate docket 
identification number. The official record for this action will be kept 
in paper form. Accordingly, we will transfer all comments received 
electronically into paper form and place them in the official record, 
which will also include all comments submitted directly in writing. The 
official record is the paper record maintained at the RCRA Information 
Center.
    Our responses to comments, whether the comments are written or 
electronic, appear in a response to comments document that we will 
place in the official record for this rulemaking.
    Acronyms used in today's preamble are listed below:

APA: Administrative Procedures Act
EAB: Environmental Appeals Board
EPA: Environmental Protection Agency
CAMU: Corrective Action Management Unit
CFR: Code of Federal Regulations
EO: Executive Order
FR: Federal Regulations
HSWA: Hazardous and Solid Waste Amendments
MOU: Memorandum of Understanding
MSWLF: Municipal Solid Waste Landfill Facilities
NAICS: North American Industry Classification System
NPDES: National Pollution Discharge Elimination System
NTTAA: National Technology Transfer and Advancement Act
OMB: Office of Management and Budget
PIT: Permit Improvement Team
PPE: Personal Protection Equipment
RCRA: Resource Conservation and Recovery Act
RFA: RCRA Facility Assessment
SIC: Standard Industrial Classification
SBREFA: Small Business Regulatory Enforcement Fairness Act
SWMU: Solid Waste Management Unit
TSD: Treatment Storage and Disposal (facility)
UMRA: Unfunded Mandates Reform Act

    The contents of today's preamble are listed in the following 
outline:

I. Authority
II. Overview and Background
    A. Background

[[Page 53421]]

    B. Overview
    1. Effect of Today's Rule
    2. What Is Being Finalized in Today's Rule
    C. What Is a Standardized Permit?
    D. Who Is Eligible for a Standardized Permit?
    E. Other General Comments on the Standardized Permit Rule
    F. Should a Standard Form Be Developed for Preparing the 
Required Part B Information?
    G. Should the Current Provisions for Final Issuance of an 
Individual Permit Apply to Standardized Permits?
III. Section by Section Analysis and Response to Comments for the 40 
CFR Part 124 Requirements Related to the Standardized Permit Rule
    A. Applying for a Standardized Permit
    1. How Do I Apply for a Standardized Permit?
    a. Conduct a Pre-application Meeting
    b. Submit a Notice of Intent To Operate Under the Standardized 
Permit Along With Appropriate Supporting Documents
    2. How Do I Switch From an Individual Permit to a Standardized 
Permit?
    B. Issuing a Standardized Permit
    1. How Does the Regulatory Agency Prepare a Draft Standardized 
Permit?
    a. Drafting Terms and Conditions for the Supplemental Portion
    b. Denying Coverage Under the Standardized Permit
    c. Preparing the Draft Permit Decision
    2. How Does the Regulatory Agency Prepare a Final Standardized 
Permit?
    C. Public Involvement in the Standardized Permit Process
    1. Requirements for Public Notices
    2. Opportunities for Public Comments and Hearings
    3. Responding to Comments
    4. May I, as an Interested Party, Appeal a Final Permit 
Decision?
    D. Maintaining a Standardized Permit
    1. What Types of Changes Can Owners or Operators Make?
    2. What Are the Definitions of Routine, Routine With Prior 
Agency Approval, and Significant Changes and What Are the 
Requirements for Making Those Changes?
    a. Routine Changes
    b. Routine Changes With Prior Agency Approval
    c. Significant Changes
    3. How Do I Renew a Standardized Permit?
IV. Section by Section Analysis and Response to Comments for the 40 
CFR Part 267 Requirements Related to the Standardized Permit Rule
    A. Overview
    B. Subpart A--General
    1. Purpose, Scope, and Applicability
    2. Relationship to Interim Status Standards
    3. Imminent Hazard Action
    C. Subpart B--General Facility Standards
    1. Applicability
    2. How Do I Comply with this Subpart?
    3. How Do I Obtain an EPA Identification Number?
    4. What Are the Waste Analysis Requirements?
    5. What Are the Security Requirements?
    6. What Are the Inspection Schedule Requirements?
    7. What Are the Training Requirements?
    8. What Are the Requirements for Managing Ignitable, Reactive, 
or Incompatible Waste?
    9. What Are the Location Standards?
    D. Subpart C--Preparedness and Prevention
    1. What Are the Design and Operation Standards?
    2. What Equipment Must I Have?
    3. What Are the Testing and Maintenance Requirements for 
Equipment?
    4. What Are the Requirements for Access to Communication 
Equipment or an Alarm System?
    5. What Are the Requirements for Access for Personnel and 
Equipment During Emergencies?
    6. What Are the Requirements for Arrangements with Local 
Authorities for Emergencies?
    E. Subpart D--Contingency Plans and Emergency Procedures
    F. Subpart E--Record Keeping, Reporting, and Notifying
    G. Subpart F--Releases from Solid Waste Management Units
    H. Subpart G--Closure
    1. Does this Subpart Apply to Me?
    2. What General Standards Must I Meet When I Stop Operating the 
Unit?
    3. What Procedures Must I Follow?
    4. Will the Public Have the Opportunity to Comment on the Plan?
    5. What Happens If the Plan Is Not Approved?
    6. After I Stop Operating, How Long Do I Have Until I Must 
Close?
    7. What Must I Do With Contaminated Equipment, Structures, and 
Soils?
    8. How Do I Certify Closure?
I. Subpart H--Financial Requirements
    1. Who Has to Comply with this Subpart and Briefly What Must 
They Do?
    2. Definitions
    3. Closure Cost Estimates
    4. Financial Assurance for Closure
    5. Post Closure Financial Responsibility
    6. Liability Requirements
    7. Other Provisions of the Financial Requirements
    J. Subpart I--Use and Management of Containers
    K. Subpart J--Use and Management of Tanks
    1. Does this Subpart Apply to Me?
    2. What Are the Required Design and Construction Standards for 
New Tank Systems or Components?
    3. What Handling and Inspection Procedures Must I Follow During 
Installation of New Tank Systems?
    4. What Testing Must I Do for New Tank Systems?
    5. What Installation Requirements Must I Follow?
    6. What Are the Secondary Containment Requirements?
    7. What Are the Required Devices for Secondary Containment and 
What Are Their Design, Operating, and Installation Requirements?
    8. What Are the Requirements for Ancillary Equipment?
    9. What Are the General Operating Requirements for a Tank 
System?
    10. What Inspection Requirements Must I Meet?
    11. What Must I Do in Case of a Leak or Spill?
    12. What Must I Do When I Stop Operating the Tank System?
    13. What Special Requirements Must I Meet for Ignitable or 
Reactive Wastes?
    14. What Special Requirements Must I Meet for Incompatible 
Wastes?
    15. What Air Emission Standards Apply?
    L. Subpart DD--Use and Management of Containment Buildings
V. Section by Section Analysis and Response to Comments for the 40 
CFR Part 270 Requirements Related to the Standardized Permit Rule
    A. Specific Changes to Part 270
    1. Purpose and Scope
    2. Definitions
    3. Permit Applications
    4. Permit Re-application
    5. Transfer of Permits
    6. Continuation of Expiring Permits
    7. Standardized Permits
    B. Standardized Permits
    1. General Information about Standardized Permits
    a. What Is a RCRA Standardized Permit?
    b. Who Is Eligible for a Standardized Permit?
    c. What Requirements of Part 270 Apply to a Standardized Permit?
    2. Applying for a Standardized Permit
    a. How Do I Apply for a Standardized Permit?
    b. What Information Must I Submit to the Permitting Agency to 
Support My Standardized Permit?
    3. What Information Must I Keep at the Facility?
    a. Section 270.290(d)
    b. Section 270.290(m)
VI. State Authorization
    A. Applicability of the Rule in Authorized States
    B. Effect of State Authorization
VII. Regulatory Assessments
    A. Executive Order 12866: Regulatory Planning and Review
    B. Paperwork Reduction Act
    C. Regulatory Flexibility Act
    D. Unfunded Mandates Reform Act
    E. Executive Order 13132: Federalism
    F. Executive Order 13175: Consultation and Coordination with 
Indian Tribal Governments
    G. Executive Order 13045: Protection of Children from 
Environmental Health & Safety Risks
    H. Executive Order 13211: Actions that Significantly Affect 
Energy Supply, Distribution, or Use
    I. National Technology Transfer and Advancement Act
    J. Executive Order 12898: Federal Actions to Address 
Environmental Justice in Minority Populations and Low-Income 
Populations
VIII. List of References

I. Authority

    The Environmental Protection Agency is promulgating these 
regulations under

[[Page 53422]]

the authority of sections 1003, 2002(a), 3004, 3005, 3006, 3007, and 
3010 of the Solid Waste Disposal Act of 1970, as amended by the 
Resource Conservation and Recovery Act of 1976 (RCRA), as amended by 
the Hazardous and Solid Waste Amendments of 1984 (HSWA), 42 U.S.C. 
6902, 6912(a), 6924-6926, and 6930.

II. Overview and Background

A. Background

    On October 12, 2001, we proposed revisions to the RCRA Hazardous 
Waste permitting program to allow for a ``standardized permit'' for 
RCRA TSDs that are otherwise subject to permitting and that generate 
and then store and/or non-thermally treat hazardous waste on-site in 
tanks, containers, and containment buildings. In the proposal, we also 
requested comment on expanding the scope of the rule, e.g., to all off-
site facilities, to facilities who centralize their waste management 
operations, or to recyclers. The proposal laid out a streamlined 
approach to the permitting process, anticipating savings to both the 
regulatory authority and the permit applicant, while still providing 
protection to human health and the environment. Today's final rule 
adopts that proposal with some changes based on comments.\1\
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    \1\ The Agency also took comment on other permitting related 
topics, including how facilities can satisfy corrective action 
through alternate cleanup programs, and issues related to financial 
assurance. The Agency is deferring action on those portions of the 
proposal.
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B. Overview

    This final rule describes the standardized permit, who is eligible 
for the permit, how facilities apply for the permit, how to make 
changes to the permit, and what the responsibilities are for the 
regulatory authority in reviewing and issuing the permit.
1. Effect of Today's Rule
    Today's action potentially affects about 870 to 1,130 private 
sector and federal facilities that (a) generate and then store and/or 
non-thermally treat hazardous wastes on-site in tanks, containers, and/
or containment buildings; and (b) which receive hazardous waste 
generated off-site by a generator that is under the same ownership as 
the receiving facility, and then store or non-thermally treat the 
hazardous waste in containers, tanks, or containment buildings. We 
estimate that these three types of eligible units represent 50% 
prevalence of the eleven major types of hazardous waste management 
units. Table 1 below identifies the economic sectors and associated 
counts of RCRA hazardous waste management units and facilities likely 
to be affected by this action. It is possible that other types of 
entities not identified in the Table could also be impacted; however 
the rule only affects three types of waste units. To determine whether 
you may be impacted, you should carefully examine the applicability 
section of the rule.

                       Table 1.--Identity of Economic Sectors Which Own and Operate Facilities Potentially Affected by This Rule*
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                                                                        Count of facilities with potentially affected hazardous waste management units
                                                                      (Note: low-end represents ``on-site'' only, and high-end represents on-site + off-
                                                                                                          site units)
    SIC code         Economic sector              NAICS code         -----------------------------------------------------------------------------------
                                                                                                                                   Waste containment
                                                                           Waste Containers           Waste tank systems*              buildings
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0..............  Agriculture, Forestry   11.........................  21 to 30..................  12 to 17..................  0.
                  & Fisheries.
1..............  Mining, Oil/Gas &       21, 23.....................  26 to 37..................  16 to 23..................  0.
                  Construction.
2..............  Manufacturing (Food,    31-33, 511.................  427 to 606................  313 to 445................  5 to 7.
                  Textile/Apparel,
                  Lumber/Wood,
                  Furniture/Fixtures,
                  Paper, Printing/
                  Publishing, Chemicals
                  & Allied Products,
                  Petroleum/Coal).
3..............  Manufacturing (Rubber/  31-33......................  285 to 405................  136 to 193................  17 to 24.
                  Plastic, Leather,
                  Stone/Clay/Glass,
                  Primary Metals,
                  Fabricated Metals,
                  Industrial Machinery,
                  Electronics,
                  Transportation
                  Equipment,
                  Instruments, & Misc.
                  Mfg).
4..............  Transport,              22, 48, 49, 513, 562.......  272 to 386................  201 to 285................  10 to 14.
                  Communication,
                  Utilities.
5..............  Wholesale & Retail      42, 44, 45.................  175 to 249................  132 to 187................  3 to 4.
                  Trade.
6..............  Finance, Insurance &    52, 53.....................  5 to 7....................  2 to 3....................  0.
                  Real Estate.
7..............  Services (Hotels,       71, 72, 512, 514, 811, 812.  221 to 314................  183 to 260................  2 to 3.
                  Personal, Automotive,
                  Repair, Motion
                  Pictures, &
                  Recreation).
8..............  Services (Health,       54, 55, 561, 61, 62, 813,    90 to 128.................  38 to 54..................  0.
                  Legal, Social,          814.
                  Museums/Gardens,
                  Membership
                  Organizations &
                  Engineering Mgt.).
9..............  Public Administration,  92.........................  200 to 284................  85 to 121.................  4 to 6.
                  Environment & Not
                  Elsewhere Classified.
                 Non-duplicative column  ...........................  800 to 1,136..............  623 to 885................  22 to 31.
                  totals** =.
                                        ------------------------------
                 Non-duplicative total                                 866 to 1,133 facilities
                  for three waste unit
                  types =.
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 Explanatory Notes:
 (a) SIC = ``Standard Industrial Classification'' system.
 (b) NAICS = ``North American Industry Classification System'', adopted by the U.S. Federal Government in 1997, replacing the SIC code system (for SIC/
  NAICS conversion tables see http://www.census.gov/epcd/www/naics.html).
 (c) * Only above-ground hazardous waste tanks are potentially eligible, not in-ground or underground tanks.
 (d) ** Some facilities report multiple SIC and NAICS codes for their operations to the EPA; consequently both the facility and unit total counts in
  this table exceed the non-duplicative total numbers of facilities shown in the bottom row above.

    2. What Is Being Finalized in Today's Rule?
    We are finalizing revisions to the hazardous waste permitting 
program to allow for issuance of a RCRA standardized permit for RCRA 
TSDs that

[[Page 53423]]

are otherwise subject to RCRA permitting and that generate hazardous 
waste, and then store and/or non-thermally treat that waste on-site in 
tanks, containers, and/or containment buildings. The standardized 
permit will also be available to facilities that receive hazardous 
waste generated from off-site, as long as the off-site generator that 
sends the waste is under the same ownership as the receiving facility, 
and then stores or non-thermally treats the hazardous waste in 
containers, tanks, or containment buildings. Throughout the remainder 
of this preamble, the term ``manage'' and ``management'' will be used 
to mean storage or non-thermal treatment, unless otherwise noted. The 
specific provisions being finalized in today's rule are discussed in 
Sections III, IV, and V of this preamble. In this final rule, some 
changes have been made from what was proposed. Some of those changes 
include: Requiring the submission of the closure plan with the Notice 
of Intent, rather than 180 days prior to closure; adding a third 
category for making changes to permits (modifications); allowing for a 
180-day extension to completing closure; and allowing a 30-day 
extension for agency review of the Notice of Intent materials. We are 
also requiring that off-site facilities, that are eligible for the 
standardized permit, must submit a waste analysis plan with their 
Notice of Intent.

C. What Is a Standardized Permit?

    A standardized permit is a special kind of permit that would be 
available for certain facilities that manage hazardous waste in tanks, 
containers, and containment buildings. The permit consists of two 
parts: A uniform portion included in all cases, and a supplemental 
portion included at EPA's or the State permitting authority's 
discretion. (See Section I.C.1 of the proposed rule at 66 FR 52195 for 
a more detailed discussion regarding the two parts of the permit.) The 
part 267 requirements being finalized today provide the basis for the 
uniform portion of the permit. The supplemental portion includes 
additional provisions deemed necessary to be protective of human health 
and the environment, including any corrective action, and would be 
based on site-specific factors at the facility.

D. Who Is Eligible for a Standardized Permit?

    Throughout this preamble, we use the terms on-site and off-site in 
reference to facilities managing hazardous waste. When we use the term 
off-site, we use it to help describe where the waste is being managed. 
For example, if facility ``A'' generates a waste and then sends the 
waste to facility ``B'' for treatment, storage or disposal, the waste 
is being managed off-site. In the final rule, two types of facilities 
will be eligible for a standardized permit. To be eligible, a facility 
must:
    (1) Generate hazardous waste and then store or non-thermally treat 
the hazardous waste on-site in containers, tanks, or containment 
buildings, or
    (2) Receive hazardous waste generated from off-site by a generator 
under the same ownership as the receiving facility, and then store or 
non-thermally treat the hazardous waste in containers, tanks, or 
containment buildings.
    In the proposed rule, we limited the applicability of the 
standardized permit to those facilities that manage hazardous waste on-
site. However, we also requested comment on whether we should extend 
eligibility to facilities managing wastes generated off-site 
(commercials, recyclers, and captives). A number of commenters argued 
that we should extend eligibility to off-site facilities suggesting 
that commercial facilities are better prepared and equipped to conduct 
waste storage (since they were specifically in the hazardous waste 
management business), that the rule would provide flexibility for 
facilities in accepting a variety of waste streams, and would benefit 
facilities and States by reducing costs.
    On the other hand, other commenters, particularly States, believed 
that the standardized permit should be limited to facilities that 
generate and manage hazardous waste on-site and not be extended to off-
site facilities. Commenters argued that such off-site facilities are 
often more complex and may in some cases pose a greater potential for 
harm to the environment. Other concerns were also raised, including 
that off-site facilities might not have adequate knowledge of the 
wastes they receive, that off-site facilities may potentially accept a 
wide variety of incompatible wastes, and that inadequate waste analysis 
could be a problem for off-site facilities. As such, these commenters 
argued that direct review of the permit application (i.e., the material 
normally submitted as part of a Part B application) by the permitting 
authority was an essential step in permitting off-site facilities.
    A number of commenters noted that some facilities accept waste from 
off-site locations of the same company for centralized management of 
their wastes, and argued that these facilities would be appropriate 
candidates for a standardized permit. For example, one commenter 
suggested these types of facilities could be granted a standardized 
permit on a case-by-case basis, depending on complexity of their 
processes and waste streams.
    Another commenter noted that extending the standardized permit to 
centralized facilities would allow a company with multiple 
manufacturing locations to centralize its management of hazardous waste 
at a single location without being denied the tangible benefits of 
streamlined permitting proposed in the Standardized Permitting Rule. 
Since the company would only be managing its own waste generated from 
its own operations, the company could reasonably be expected to know 
the chemical make-up and compatibility of the different incoming waste 
streams. Moreover, companies have procedures in place to assure that 
off-site waste streams are properly stored and/or treated at 
centralized locations.
    Another commenter noted that managing wastes at these facilities 
(centralized facilities) should not be more complicated or require 
greater attention than managing wastes generated on-site because ``* * 
* a company managing only its own waste generated at several locations 
* * * should know what specific wastes are generated by the company and 
be able to manage them properly at a centralized location.''
    Still another commenter noted problems with off-site facilities in 
general, but also noted that it would expect that fewer problems would 
result from allowing off-site facilities who manage only their own 
wastes generated at different locations to be eligible for the 
standardized permit because of the familiarity of the company with the 
composition and character of its own wastes.
    Another commenter argued that multiple sources of waste generated 
by the same company and managed in a consolidated fashion at a 
treatment/storage (T/S) facility owned and operated by that company (a 
captive facility as opposed to a commercial one) should still be 
eligible for the standardized permit. Captive facilities have greater 
control over the waste generation process and therefore the 
characteristics of the waste to be managed at the T/S facility.
    In response to comments on the proposal, the Agency has been 
persuaded by the commenters who argued that facilities that receive 
hazardous waste generated off-site by a generator under the same 
ownership as the receiving facility, and then stores or non-thermally 
treats the hazardous waste in containers, tanks, or

[[Page 53424]]

containment buildings should be eligible for the standardized permit. 
Therefore, the final rule expands the eligibility so that a facility 
with a standardized permit can also receive waste generated at another 
location that is under the same ownership as the receiving facility. 
For example, waste from one company could be sent to the standardized 
permit facility owned by that company. This would also apply to wholly 
owned subsidiaries, for example where a national corporation had wholly 
owned subsidiaries separately incorporated in different States. As long 
as the corporate ownership was the same, and the same corporate entity 
had ultimate oversight and responsibility, off-site management under 
the standardized permit would be allowed. EPA anticipates that this 
change will broaden the benefits of this rule to operations under the 
same entity. To use this flexibility, the Notice of Intent must include 
documentation that the off-site facility is under the same ownership as 
the facility seeking the standardized permit. In addition, to receive 
wastes from off-site, facilities must also submit a waste analysis plan 
with the Notice of Intent. We discuss the need for waste analysis plans 
later in the preamble in Section IV.C.4.
    With respect to federal facilities, this rule would allow the 
transfer of waste between sites under the jurisdiction, custody, or 
control of the same federal agency. For instance, today's rule would, 
for instance, allow waste from one Department of Defense installation 
to go to another such installation because the Department has overall 
responsibility for the waste. The Department of Energy's comments on 
the proposal suggested allowing for consolidation of waste from 
multiple facilities within the DOE complex at a regional facility with 
a standardized permit. This expansion of the eligibility would allow 
for this consolidation.
    EPA did not, however, extend the applicability to wastes that were 
not generated by the same entity. While we are extending eligibility to 
a limited subset of off-site facilities, we are not extending 
eligibility for the standardized permit rule to all off-site 
facilities.
    One commenter noted that ``As the number of waste streams increases 
so does the complexity of identification and handling. As a commercial 
TSD a large portion of our infrastructure is devoted to waste 
identification, verification analysis to ensure proper disposal. This 
follows detailed procedures. The `physical' aspects such as handling, 
storage or treatment are minor compared to the identification, tracking 
and documentation aspects of waste handling. It is difficult to 
conceive how the EPA could allow this kind of activity to be conducted 
without prior review of appropriate procedures.''
    Another commenter noted that ``In general, facilities that treat or 
store waste generated off-site should not be allowed to get a 
standardized permit. Most of the facilities which accept off-site 
wastes are commercial facilities that accept many of the waste codes 
listed in 40 CFR part 261. This creates the need for a fairly in-depth 
waste analysis plan which would be hard to review within the 120-day 
limit.''
    Because of the potential variation in types of wastes managed at 
off-site facilities in general, and the length of time necessary to 
review waste analysis plans associated with such facilities, we believe 
it appropriate to limit applicability of the standardized permit rule 
to those facilities receiving wastes from generators under the same 
ownership as the receiving facility.
    Commenters expressed concerns about the complexity of operations on 
many ``non-captive'' and commercial facilities, the large number of 
wastes that may come in to the sites from many different locations and 
the environmental problems they've encountered. Commenters believed 
such facilities needed closer scrutiny to ensure they are operating in 
a safe manner, and would be better served by operating under an 
individual RCRA permit. In considering all the comments, and in 
attempting to balance the streamlined permitting that would be gained 
from the rule against the possible risk to human health and the 
environment, we have decided to allow the following types of facilities 
to be eligible for the standardized permit: (1) Facilities that manage 
their hazardous waste on-site in tanks, containers, and containment 
buildings and (2) facilities that receive hazardous waste generated 
off-site by a generator under the same ownership as the receiving 
facility, and then store or non-thermally treat the hazardous waste in 
containers, tanks, or containment buildings. The response to comments 
document on this final rule provides additional discussion on this 
topic.
    It should also be noted that the Agency is exploring whether to 
extend eligibility for the standardized permit to other off-site 
facilities that have demonstrated superior environmental performance; 
the National Performance Track Program provides an example of the kind 
of criteria/facilities that EPA is considering in this context.\2\ We 
believe it may be appropriate to offer this option to such facilities 
to further encourage superior environmental results. In fact, the 
Agency believes it important to reward companies that are top 
environmental performers and therefore, believe that such a change may 
be appropriate. The Agency anticipates issuing a proposed rulemaking 
involving Performance Track facilities in the near future.
---------------------------------------------------------------------------

    \2\ The National Environmental Performance Track program 
recognizes and encourages top environmental performance among 
private and public facilities in the United States. Performance 
Track members go beyond compliance with regulatory requirements to 
achieve environmental excellence. Currently the program has 
approximately 300 members.
---------------------------------------------------------------------------

    An additional situation involves facilities that manage hazardous 
wastes in units eligible for the standardized permit, and also manage 
hazardous wastes in other types of waste management units. In our 
proposal, we solicited comment on whether a facility that manages some 
of its hazardous waste in on-site storage and/or non-thermal treatment 
units and some of its hazardous waste in other types of waste 
management units should be eligible for a standardized permit for their 
storage and/or non-thermal treatment activities. Several commenters 
agreed that on-site storage should be eligible for the standardized 
permit, even if the facility has other permitted operations on-site. 
Other commenters, however, did not support this measure, noting that 
having two regimes of RCRA permitting at the same facility would 
complicate matters. In this final rule, we are allowing facilities to 
have both a standardized permit for their eligible units, and an 
individual permit for their other regulated waste management activities 
because we believe there is a benefit in terms of permit streamlining 
for those eligible units. Some facilities may have a significant 
portion of their operations devoted to standardized permit-eligible 
storage and/or non-thermal treatment activities, which may make a dual 
permitting scenario worthwhile. Moreover, if a facility believes that 
having two RCRA permitting schemes at their plant would complicate 
matters, they need not apply for a standardized permit.
    Therefore, the final rule will allow facilities with regular RCRA 
permits to apply for a standardized permit for their storage and non-
thermal treatment operations occurring in eligible units. Such 
facilities could then have an individual permit for some of their 
operations, and a standardized permit for their eligible units. 
However, the

[[Page 53425]]

Director has the final decision on whether a facility will be allowed 
to operate with dual permits, based on facility-specific factors.
    One commenter urged the Agency to be clearer in the final rule that 
the standardized permit rule will not require generators, already 
exempt from permitting in certain circumstances under Sec.  262.34, to 
obtain permits. This rulemaking does not modify the provisions 
applicable to generators managing wastes within the time limits and 
conditions of Sec.  262.34. It applies only to activities of RCRA TSDs 
that are otherwise subject to permitting (and who generate and then 
store or treat waste on-site in containers, tanks, or containment 
buildings, or facilities that receive hazardous waste generated off-
site by a generator under the same ownership as the receiving facility, 
and then store or non-thermally treat the hazardous waste in 
containers, tanks, or containment buildings). We have revised the 
regulatory language and the preamble to make this point clear.

E. Other General Comments on the Standardized Permit Rule

    We believe the standardized permit should result in time and 
resource savings in the overall permitting process. While owners/
operators of such facilities will be required to gather nearly the same 
information that an individual permit applicant must gather, such 
information (e.g., Part B application) will only need to be kept at the 
facility, or other location designated by the Director, as opposed to 
submitting it to the permitting authority. In fact, several commenters 
mentioned that the standardized permit would provide a less cumbersome 
approach for such storage units, than would the individual RCRA 
permitting process. Specifically noted was the provision that fewer 
documents would need to be submitted in the application phase, which 
should save time during the application review phase. We believe that 
because the standardized permit process would involve review of fewer 
materials, permits could be issued in less time than with the typical 
Part B permitting process.
    Some commenters argued that the standardized permit process does 
not facilitate public involvement, because the technical parts of the 
application will not be circulated as is the case with the individual 
permitting process, or because the public might not feel comfortable 
going to the facility to review information. We believe the public will 
have ample opportunity to be involved, both with the pre-application 
meeting, and during the public comment period after the draft permit is 
public noticed. It should also be noted that the Director has the 
discretion to establish an information repository that contains the 
permit information at a location off-site from the facility, if such a 
location will better foster public participation. To the extent that 
the public has concerns with the uniform portion of the permit being 
fully protective because of unique facility circumstances, the public 
can request that these concerns be addressed in the supplemental 
portion of the permit. Nevertheless, the facility would still be 
subject to similar management standards and thus, would still be fully 
protective of human health and the environment.
    Other commenters argued that the standardized permit process could 
result in unsafe waste storage practices, because not all the technical 
information about the facility processes would be reviewed prior to 
permit issuance. We disagree with these commenters. We believe the 
regulations in today's rule provide the mechanisms necessary to ensure 
safe waste management even without requiring the up-front submission of 
all of the technical information about the facility processes.
    The units eligible for the standardized permit (tanks, containers, 
and containment buildings) are relatively straightforward technologies, 
with straightforward permitting requirements, and, as we discuss in the 
proposed rule preamble (66 FR 52196), are relatively simple to design 
and properly construct. The engineering and construction knowledge and 
skills necessary to design and construct these units are relatively 
basic. These units are in common usage in many applications and are 
frequently bought ``off-the-shelf'' or built from ``off-the-shelf'' 
designs. Industry associations and standards organizations have 
developed standards for these units that are in widespread use. Past 
experience with these units indicates that they are simpler to design, 
construct, and manage than units such as combustion units or land 
disposal units. Storage and non-thermal treatment of waste in these 
types of units is generally less complicated than thermal treatment of 
waste (e.g., combustion of hazardous waste in incinerators, boilers, or 
industrial furnaces) or disposal of waste (e.g., landfilling). It is 
easier to control risks at these simpler storage and treatment units. 
We believe that the streamlined standardized permit allows adequate 
interaction and oversight by the regulating agency and would provide 
sufficient technical controls to protect human health and the 
environment. Furthermore, the permitting requirements in part 267 
largely reflect the existing part 264 requirements, which are 
protective of human health and the environment. For example, part 267 
includes unit specific requirements for how waste management units are 
operated and maintained (e.g., secondary containment, response to 
spills, condition of units, etc.). Part 267 also includes corrective 
action and financial responsibility requirements. Today's rule also 
provides for public comment and review on the draft permit prior to 
final permit issuance, as well as a mechanism for public involvement 
prior to the submission of the Notice of Intent. In addition, even 
though this information will not be required to be submitted as part of 
the Notice of Intent, the information must be retained at the facility, 
and be made available for the Director/Permitting authority to review, 
should any questions remain about whether a standardized or individual 
permit should be issued, or whether additional site-specific conditions 
are necessary. Finally, the Director retains the ability to impose any 
site-specific conditions, in the supplemental portion of the permit, 
necessary to protect human health and the environment. Thus, the 
standardized permit process, while it will likely speed up the process 
of issuing permits for eligible facilities that store or non-thermally 
treat waste in tanks, containers, or containment buildings, will do so 
in a manner that would still provide full protection of human health 
and the environment.
    One commenter requested clarification that the standardized permit 
could apply to mixed wastes. The standardized permit rule could in fact 
apply to the management of mixed waste, presuming the other regulatory 
conditions were met.
    Finally, one commenter noted that the standardized permit process 
would limit the regulatory authority's ability to determine compliance 
with the waste analysis and closure plans. We agree with the commenter, 
at least with respect to the closure plan, and in part to the waste 
analysis plan. The rule has been modified to require facilities to 
submit a closure plan with the Notice of Intent. Requiring the plan up 
front would allow the regulatory authority to review the plan, and 
would also allow the public to review the plan during the public 
comment period for the publicly noticed permit. The closure plan would 
become part of the permit at final permit issuance. The rule also has 
been modified to require submission of the waste analysis plan for 
facilities that are

[[Page 53426]]

applying to manage waste that were generated off-site.
    Due to the streamlined nature of the standardized permit process, 
we believe that facilities conducting routine storage and treatment on-
site have good knowledge of the characteristics of the waste they 
generate and manage and should be able to safely operate within a self-
certification of compliance process, while maintaining the extensive 
information, normally submitted with a Part B application, on-site. 
Furthermore, 40 CFR 267.13 provides a detailed account of the waste 
analysis plan requirements, which when combined with an audit and 
compliance certification should be sufficient to ensure compliance. 
However, facilities that receive waste from off-site will be required 
to submit a waste analysis plan and maintain a copy of the waste 
analysis plan on-site. Although we generally believe that common 
ownership between the generating and receiving facilities means that 
the receiving facility could reasonably be expected to have a greater 
familiarity with the characteristics of the wastes generated from off-
site than other off-site facilities, such facilities will still likely 
have less knowledge/familiarity than the waste generator. Consequently, 
the Agency believes that the additional safeguard provided by 
submission of the waste analysis plan is necessary to reduce any 
uncertainties regarding extension of the standardized permit to such 
facilities, and to allow the regulatory authority an adequate 
opportunity to determine whether management procedures are adequately 
protective, or whether additional, site-specific conditions are 
warranted.

F. Should a Standard Form Be Developed for Preparing the Required 
``Part B'' Information?

    We requested comment in the proposal on whether we should develop a 
``fill-in-the-blank'' type form that facilities could use as a tool to 
help prepare the information required to be maintained at the facility. 
A number of commenters supported the development of a ``fill in the 
blank'' type of form. Therefore, we are currently looking into the 
feasibility of developing a form that can be used to assist permit 
applicants gather the required information that must be maintained at 
the facility to support a standardized permit. If and when a form is 
developed, it will be available from EPA on OSW's hazardous waste 
permitting Web site at: http://www.epa.gov/epaoswer/hazwaste/permit/index.htm.

G. Should the Current Provisions for Final Issuance of an Individual 
Permit Apply to Standardized Permits?

    As proposed, the provisions for final issuance of the standardized 
permit are set forth in Sec.  124.205, and are the same as the current 
procedures for final issuance of an individual permit, codified in 
Sec.  124.15. We did not receive any significant comment on this 
question, and believe that the current provisions for final permit 
issuance are appropriate for issuing standardized permits. Therefore, 
we are finalizing Sec.  124.205, as proposed.

III. Section by Section Analysis and Response to Comments for the 40 
CFR Part 124 Requirements Related to the Standardized Permit Rule

A. Applying for a Standardized Permit

    This section discusses the overall process of how owners and/or 
operators apply for and obtain a standardized permit. For 
clarification, the application for a standardized permit is known as a 
``Notice of Intent.''
1. How Do I Apply for a Standardized Permit?
    This part of the preamble discusses the steps involved in applying 
for a standardized permit which are laid out in 40 CFR part 124 
subparts A, B, and G. The steps involve the pre-application meeting 
with the public followed by the submission of a Notice of Intent and 
supporting materials. The Notice of Intent and supporting materials, in 
most cases, should provide sufficient information for the Director to 
make a draft permit decision. Any lack of information could be a basis 
for the Director to determine that a facility is ineligible for a 
standardized permit.
a. How Do I Conduct a Pre-Application Meeting?
    Today's rule subjects you to the existing requirements of Sec.  
124.31, obligating you to advertise and host a meeting with the 
neighboring community before submitting your Notice of Intent. The 
meeting with your community is designed to provide an open, flexible, 
and informal occasion for you and the public to share ideas, educate 
each other, and start building the framework for a solid working 
relationship. The meeting discussion should address topics such as: The 
type of facility, the location, the general processes involved, the 
types of wastes managed, and planned waste minimization and pollution 
control measures. The discussions also could include such topics as 
planned procedures for preventing or responding to accidents or 
releases. When you submit your Notice of Intent, you will need to 
provide a summary of the meeting, including a list of attendees. No 
major comments were received on this section and we are finalizing 
Sec.  124.31 as proposed.
    The Agency encourages facilities to refer to the RCRA Public 
Participation Manual (EPA530-R-96-007, September 1996, available at 
http://www.epa.gov/epaoswer/hazwaste/permit/pubpart/manual.htm) to 
promote successful and equitable public involvement in RCRA permitting 
activities.
b. How Do I Submit a Notice of Intent To Operate Under the Standardized 
Permit?
    The requirement to submit a Notice of Intent to operate under a 
standardized permit is laid out in Sec.  124.202, and is consistent 
with the process and terminology currently used for NPDES general 
permits. The Notice of Intent is composed of the documents described 
under Sec.  270.275 and include the RCRA Part A information, the 
closure plan, the closure cost estimate, documentation of the financial 
instrument to cover closure, information supporting that you meet the 
location standards, the pre-application meeting, and materials required 
under Sec.  270.280 (which include the required certifications and 
audit report). In addition, facilities that wish to accept waste from 
off-site, the Notice of Intent must include the waste analysis plan, 
and documentation that the originating generator and the facility 
seeking the standardized permit are under the same owner.
    While the proposal did not require submission of the closure plan 
at the time the Notice of Intent was submitted, the final rule does 
include this requirement. Several commenters argued that the closure 
plan should be submitted to help assure the regulatory authority of the 
owner/operator's ability to complete closure, and also that a closure 
plan would help support closure cost estimate figures. We agree with 
these commenters and are finalizing the rule to require submittal of 
the closure plan with the Notice of Intent. See also the discussion in 
Section IV.G, for additional explanation of EPA's decision to require 
submission of the closure plan with the Notice of Intent. It should be 
noted that the closure plan should provide sufficient detail to assure 
the Director that the facility can close and show how the facility will 
be closed. Failure to submit sufficient information in the closure plan 
might be cause for a facility to be considered ineligible for a 
standardized permit. In addition to the closure plan, a closure

[[Page 53427]]

cost estimate must be submitted, as must documentation showing the 
existence of a financial assurance instrument sufficient to cover 
closure.
    Some commenters also argued that the waste analysis plan should be 
submitted with the Notice of Intent, and that submitting the plan would 
help assure the regulatory authority that the owner/operator has 
adequate knowledge of the waste streams being managed (waste 
compatibilities, characterization), especially if the rule were 
extended to include off-site facilities.
    We generally believe that on-site facilities have good knowledge of 
the wastes they are managing, and therefore, we are not requiring that 
waste analysis plans be submitted with their Notice of Intent. Due to 
the streamlined nature of the standardized permit process, we believe 
that facilities conducting routine storage and treatment on-site have 
good knowledge of the characteristics of the waste they generate and 
manage, and should be able to safely operate within a self-
certification of compliance process, while maintaining the extensive 
information, normally submitted with a Part B application, on-site. 
Furthermore, 40 CFR 267.13 provides a detailed account of the waste 
analysis plan requirements, which when combined with an audit and 
compliance certification should be sufficient to ensure compliance. In 
the final rule, we will not require waste analysis plans for such 
facilities to be submitted, but maintained on-site. However, as noted 
previously, the Agency is also allowing facilities that receive 
hazardous waste generated off-site by a generator under the same 
ownership as the receiving facility, to also be eligible for the 
standardized permit. In this situation, the facility will be required 
to submit the waste analysis plan with the Notice of Intent. As 
discussed previously, we believe it necessary for the waste analysis 
plan to be submitted to help ensure that waste management procedures 
are adequately protective.
    You must also certify, as required by Sec.  270.280, that, at the 
time the Notice of Intent is submitted, that the facility is in 
compliance with the requirements of part 267, or in the case of a new 
facility, that the facility will comply with the part 267 requirements 
when the facility is built and operated. (The proposed rule did not 
specifically contain a provision to allow the generator to submit the 
Notice of Intent for new facilities, that are designed, but built 
later. We believe that such a provision is appropriate and are adding 
such a provision to the final rule, at Sec.  270.280(a)(1)(ii). In 
addition to certifying compliance, a compliance audit must be 
completed. This audit is a systematic, documented, and objective review 
of the facility's operations and practices related to meeting 
environmental requirements, in order to assess the compliance status 
prior to submitting the Notice of Intent. The audit results must be 
included in an Audit Report with the compliance certification as 
supporting documentation to the Notice of Intent.
    Regarding compliance audits, several commenters argued that we 
should not require audits at all, because doing so might unnecessarily 
burden facilities. Several commenters supported the need for conducting 
the audit, noting that doing so helped ensure compliance with the 
regulations and familiarity with facility operations. Other commenters 
argued that facilities be allowed to perform self-audits, and not be 
limited to conducting independent, third-party audits. Another 
commenter, arguing for only third-party audits, believed that some 
owners or operators of TSDs subject to this rule do not have the 
expertise to adequately audit their facility's operations. While we 
appreciate the comments, we believe that compliance audits are an 
integral part of the standardized permitting process, serving to help 
ensure that a facility is complying with the applicable requirements. 
Compliance audits are intended to support the self-certification 
process, and should not unnecessarily burden facilities. While there 
may be some owners/operators who lack the expertise to conduct audits 
we believe it unnecessary to require that only third parties conduct 
audits, because many facility owners are familiar with, and have the 
expertise to audit their operations. We did not include specific 
regulatory provisions detailing how facilities must conduct compliance 
audits in the final rule, but provided general information and web 
links to guidance materials for conducting audits. (see Section V.B.3). 
In addition, the final rule does require that the auditor sign and 
certify that the audit report is accurate, prior to submitting to the 
Director with the Notice of Intent, which provides an additional 
safeguard.
    Another commenter said the proposal was not clear on how existing 
facilities would comply with the part 267 standards if a permit is 
issued. In the RCRA permit program, terms of how a facility will comply 
with the permit, once a permit is issued, are specified in the permit. 
This will continue to be the case for standardized permits--the uniform 
portion of the permit will contain the requirements as specified by 
part 267, and the supplemental portion will provide site specific 
standards, as needed.
    Another commenter argued that the Notice of Intent and supporting 
documents submission will potentially strain RCRA enforcement 
resources, as focus is directed to confirm the adequacy of audits and 
certifications provided by the permit applicant. While it is 
foreseeable that some additional effort will likely be placed on the 
Agency's enforcement resources, we believe that the units eligible for 
a standardized permit involve rather straightforward conditions.
2. How Do I Switch From an Individual Permit to a Standardized Permit?
    Switching from an individual permit to a standardized permit could 
involve a few scenarios. In general, and the most likely case, is where 
a facility's units are all eligible for the standardized permit. In 
this case, you could request the Director of the regulatory agency to 
revoke your individual permit and issue a standardized permit. For 
facilities where only some of the units are eligible for a standardized 
permit, you could request the Director to modify the original permit to 
no longer include those units, and issue a standardized permit for 
those units. The revocation and reissuance procedures are in Sec.  
124.203, as allowed by Sec.  270.41, and are finalized as proposed.
    One commenter, while supportive of allowing facilities to switch to 
a standardized permit for eligible activities while keeping other 
activities under an individual permit, believed that revocation and 
reissuance should not be the required procedure to accomplish this. The 
commenter suggested that the facility should only need to submit a 
Notice of Intent for the standardized permit operations and, in 
addition, a conforming modification to the existing permit. We agree 
with the commenter that submission of the Notice of Intent along with a 
modification can work in many instances (modification, revocation, and 
reissuance procedures appear in today's rule at Sec.  124.5). Another 
commenter argued that a newly permitted facility should not be able to 
have their permit revoked, and a standardized permit issued, until the 
term of the existing permit comes to an end. Otherwise, allowing the 
revocation might be overly burdensome to states. While we agree that 
there may be some instances where switching to a standardized permit 
may be challenging to States, we also do not want to burden facilities 
who are eligible for a standardized permit. In any event, States, who 
for the most part implement the permitting program, will

[[Page 53428]]

decide at what point they will allow facilities to switch from the 
individual permit to the standardized permit.

B. Issuing a Standardized Permit

1. How Would You as the Regulatory Agency Prepare a Draft Standardized 
Permit?
    Under the final rule, three steps are involved in preparing a draft 
permit. Step one is for you (as the regulatory agency) to review the 
Notice of Intent and supporting information and determine if the 
facility is eligible for a standardized permit. Second, you would 
tentatively decide whether to grant or deny coverage under the 
standardized permit. If a decision is made to grant coverage, the draft 
standardized permit would propose appropriate terms and conditions, if 
any, to include in the supplemental portion of the permit. Lastly, you 
would prepare your draft permit decision within 120 days after 
receiving the Notice of Intent and supporting information. If 
necessary, a one time 30-day extension is permitted for review of the 
information, and preparation of the draft permit. Such extensions might 
be appropriate in cases involving site specific situations requiring 
more review. We received comments regarding time periods for an 
extension, from no extension to 180 days. We have decided to limit the 
extension to 30 days since we believe that due to the nature of the 
types of units that are eligible for the standardized permit--
containers, tanks, and containment buildings, that a one-time 30 day 
extension should be all that is necessary.
a. Drafting Terms and Conditions for the Supplemental Portion
    As noted previously, the supplemental portion of the standardized 
permit would include any additional provisions that are deemed 
necessary to protect human health and the environment and would be 
issued based on the regulatory agency's specific determination of the 
conditions at the particular facility. If you, as the Director of the 
regulatory agency, decide to grant coverage under the standardized 
permit, you must determine whether supplemental conditions are 
appropriate or necessary and if so, tentatively identify appropriate 
facility-specific conditions to impose in the supplemental portion of 
the standardized permit, and include those conditions as part of the 
draft permit. These proposed facility-specific conditions would go 
beyond the standard conditions in the uniform portion of the 
standardized permit. (The uniform portion of the permit includes 
standards based on the applicable part 267 requirements.) The 
supplemental terms and conditions would be those you deem necessary for 
corrective action purposes, or to ensure protection of human health and 
the environment. We expect that the need to have supplemental 
conditions, beyond corrective action requirements, will not be a common 
occurrence. The authority to impose corrective action conditions is 
found in RCRA section 3004(u) and (v), as well as EPA's implementing 
regulations at 40 CFR 267.101, and authority to impose conditions for 
protection of human health and the environment is found at RCRA section 
3005(c)(3), as well as EPA's implementing regulations at 40 CFR 
270.32(b)(2).
    One commenter noted that it was unclear how the regulatory 
authority would obtain site-specific information in developing permit 
conditions. It should be noted that Sec.  270.10(k) allows the Director 
to require the submission of such information as necessary to establish 
permit conditions. In addition, information from the public meeting and 
inspections could be the basis to help develop permit conditions, as 
appropriate.
    Another commenter supported the idea suggested in the preamble that 
a facility owner or operator should be allowed to ``suggest 
supplemental conditions that he/she would like the responsible 
regulatory agency to attach to the standardized permit,'' and suggested 
regulatory language to specifically allow that provision. While we 
certainly support allowing facilities to submit suggested conditions, 
we do not believe it necessary to specifically include that in the 
regulations, as it could confuse some permit applicants about what is 
actually required. If a particular owner/operator wants to suggest that 
supplemental conditions be included in their standardized permit, they 
are free to do so in the Notice of Intent.
b. Denying Coverage Under the Standardized Permit
    The provisions of Sec.  124.206 for denying coverage under a 
standardized permit are finalized as proposed. Specifically, under the 
final rule, the Director could tentatively deny a facility coverage 
under the standardized permit. Reasons for denial could include failure 
of the facility owner or operator to submit all the information 
required under Sec.  270.275, or that the facility does not meet the 
eligibility requirements for a standardized permit (that is, the 
facility's activities are outside the scope of the permit). The 
Director could also deny coverage based on a facility's compliance 
history (see Sec.  124.204(b)).
    Instances of poor compliance history exists where previous 
violations by a facility establish a pattern of disregard of 
environmental requirements under RCRA or other environmental statutes. 
Some of the factors used to evaluate a facility's compliance history 
may include:

--Number of previous violations
--Seriousness of previous violations
--The facility's response with regard to correction of the problem 
(e.g., how quickly the facility achieved compliance)

Consideration of compliance history reflects the self-implementing 
nature of the requirements that are being imposed under the uniform 
portion of the standardized permit. A facility with a demonstrated 
history of noncompliance may not be a viable candidate for a 
standardized permit. Beyond these points, we believe it is difficult to 
develop specific criteria defining ``poor'' compliance history. We 
believe that the permitting authority is in the best position to 
determine whether or not a facility has a compliance history that is so 
poor as to determine that they should be ineligible for a standardized 
permit.
    A number of commenters believe that the regulations should be 
clearer on the criteria for denying coverage under the standardized 
permit, and offered suggested situations that could weigh heavily in 
deciding whether or not to deny a facility from receiving a 
standardized permit. Among the reasons suggested for denial included a 
facility's demonstrated history of non-compliance with regulations or 
permit conditions, demonstrated history of submitting incomplete or 
deficient permit applications, and that the facility does not meet the 
criteria of eligibility in Sec.  124.201.
    The suggested reasons are consistent with our intent to limit the 
eligibility for the standardized permit to those facilities that can 
demonstrate, or have demonstrated, an ability to adhere to the 
regulations, as we discussed in the preamble to the proposed rule (see 
66 FR 52203, Section IV.B.2). Section 124.204(b) provides specific 
eligibility criteria. Under 124.204(b)(2)(iv), you may consider the 
facility's compliance history, in cases where the facility is operating 
under RCRA interim status, or has an existing permit and is choosing to 
convert to a standardized permit. Poor compliance history could 
indicate a facility that might more appropriately

[[Page 53429]]

be served by an individual permit, or, of course, permit denial if 
warranted.
c. Preparing the Draft Permit Decision
    Under Sec.  124.204(c), the Director needs to make a draft permit 
decision within 120 days of receiving the Notice of Intent and 
supporting information. In addition, we are allowing a one time 30-day 
extension. The original proposal called for a draft permit decision 
within 120 days, and requested comment on whether additional time 
should be allowed. Several commenters agreed with the proposal that 120 
days is sufficient time to review the information submitted with the 
Notice of Intent. However, other commenters have argued that the 
initial 120-day period would not be adequate time to review all the 
information submitted and conduct the required public comment period. 
Suggested extensions ranged from those who suggested no extension, all 
the way up to 180 days suggested by one commenter. We understand that 
some states have additional requirements that permit applicants must 
meet, that may necessitate an extension. However, we believe that most 
submissions should be reviewable in the 120-day time frame. 
Furthermore, under the standardized permit rule, the public comment 
period begins once the draft permit is public noticed, and is not part 
of the 120-day review period.
    Nevertheless, there may be situations where additional time is 
needed, for example, to work out a particular approach to an issue 
requiring a supplemental condition. For these facilities, and in 
response to comments, the Agency is providing a one-time extension of 
30 days. We believe that the 120-day initial time period, with a one 
time 30-day extension will provide sufficient time to issue a draft 
permit (or permit denial).
2. How Does the Regulatory Agency Prepare a Final Standardized Permit?
    After the close of the public comment period, the Director would 
make a final determination on the draft permit decision (i.e., whether 
to grant or deny coverage for a facility to operate under the 
standardized permit). The Director would use the same procedures to 
finalize a draft standardized permit as he or she would use to finalize 
a draft individual permit, found in Sec.  124.15. Commenters supported 
this provision of the rule; therefore, Sec.  124.205 for preparing a 
final permit decision is finalized, as proposed.

C. Public Involvement in the Standardized Permit Process

    Public involvement begins early in the standardized permitting 
process, starting with the public meeting that must occur prior to 
submission of the Notice of Intent. This meeting is described in more 
detail in preamble section III.A.1.a.
1. Requirements for Public Notices
    The provisions of Sec.  124.207 require the Director to issue a 
public notice announcing the draft permit decision. The procedures and 
time periods for public comment are the same as for commenting on draft 
individual permits. Because we received no significant comment, we are 
finalizing Sec.  124.207 as proposed.
2. Opportunities for Public Comments and Hearings
    The provisions for the comment period and hearings are found in 
Sec.  124.208. Because we received no significant comment, we are 
finalizing Sec.  124.208 as proposed.
3. Responding to Comments
    The requirements for responding to comments are found in Sec.  
124.209. Because we received no significant comment, we are finalizing 
Sec.  124.209 as proposed.
4. Appealing a Final Permit Decision
    Under today's final rule, according to Sec.  124.210, you may 
appeal the final permit decision to the Environmental Appeals Board 
within 30 days. You may appeal the permit, including any terms and 
conditions in the supplemental portion, but only after the final 
determination is made. At that time, you may also appeal the 
eligibility of the facility for the standardized permit. (For example, 
you may challenge whether a unit is a tank.) You may not appeal the 
terms and conditions of the uniform portion of the standardized permit.
    One commenter noted that appealing the supplemental portion of the 
permit might call into question whether the facility can still operate 
safely under the unappealed portion of the permit. Just as occurs in 
the current regulatory process, if an appealed section of the permit is 
required for safe management of hazardous waste in that unit, then 
waste cannot be managed in the unit until the appeal has been 
adjudicated. See 40 CFR 124.16(a). For a standardized permit, if the 
supplemental portion of the permit is necessary for safe waste 
management, and that part of the permit is appealed, then waste may not 
be managed in the unit until the appeal is resolved. However, if the 
appealed supplemental portion of the permit deals with SWMU corrective 
action issues, then safe waste management in the eligible units can 
likely occur. More directly stated, if the appealed parts of the permit 
are unrelated to the units eligible for the standardized permit, then 
safe waste management in those eligible units can likely occur.

D. Maintaining a Standardized Permit

    This portion of the preamble discusses what is being finalized 
today regarding how your standardized permit is modified over time to 
reflect changes in the facility's design or operations. While the rule 
provides a mechanism for making changes to standardized permits, we 
envision that few changes to the actual permit would likely be 
necessary. This is because standardized permits contain standard 
conditions based on the requirements of Part 267, and that many changes 
at the facility would only affect the information kept on-site and not 
the actual permit. The only thing that would have to be modified, 
typically, would be supplemental conditions that are unique to the 
facility. However, when changes to the standardized permit are 
necessary, they will fall into the categories described below.
1. What Types of Changes Could Owners or Operators Make?
    The proposed rule set forth two categories of modifications, 
routine and significant, for making changes to standardized permits. 
Routine changes included those changes that, under an individual permit 
situation, would be classified as either a class 1 or class 2 
modification under Sec.  270.42 appendix I, while significant changes 
included those changes that would have been class 3 modifications. The 
final rule modifies the routine changes category originally proposed, 
and adds a third category, routine changes requiring prior approval. 
The actual procedures for performing routine and significant changes 
are finalized, as proposed; the only change made is to allow routine 
changes requiring prior agency approval, as described below.
    Several commenters argued that some class 2 modifications are more 
like class 3 modifications, and should not be considered as routine 
changes under a standardized permit, but as significant changes. 
Furthermore, because some class 1 modifications require prior approval 
under an individual permit, those changes should be treated similarly 
under a standardized permit. For example, several commenters noted that 
changes in ownership should not

[[Page 53430]]

simply be a routine change under the standardized permit rule, but 
should require prior approval from the regulatory agency, because of 
financial assurance and compliance history concerns about a new owner.
    Under the original proposed rule, ``routine changes'' encompassed 
both class 1 and class 2 modifications, leaving class 3 modifications 
to be addressed as ``significant changes.'' We agree with commenters to 
the extent that some changes to standardized permits should require 
prior approval, especially changes that would require prior approval 
under individual permitting.
    Therefore, the final rule adds a third category of changes to 
permits, ``routine changes with prior approval.'' (See the next section 
for a description of the types of modifications that would fall into 
the various categories.) The addition of another category between 
``routine'' and ``significant'' should help address the concern that 
some class 2 modifications are more like class 3 modifications and 
should be treated as significant changes, because now all class 2 
modifications will require prior approval under the standardized 
permit. Rather than class 2 modifications being a ``routine change'' as 
described in the proposed rule, class 2 modifications will now require 
prior approval, as will class 1 modifications normally requiring prior 
approval.
    While we are adding a third category, the overall permit change 
process is more streamlined than the existing modification process. The 
new category--``routine with prior approval''--would not involve a 
public comment or hearing process, as would be the case with regular 
class 2 modifications, but would require a notification to, and 
acknowledgment and approval from the regulatory authority, and also, 
within 90 calendar days of the approval, notification to the facility's 
mailing list. The Director would need to respond within 90 days of 
receiving the modification request, either approving or denying the 
request.
2. What Are the Definitions of Routine Changes, Routine Changes With 
Prior Agency Approval, and Significant Changes, and What Are the 
Requirements for Making Those Changes?
a. Routine Changes
    Routine changes are any changes that qualify as a class 1 
modification under 40 CFR 270.42 Appendix I that do not require prior 
approval by the regulatory authority. The requirements for making 
routine changes are found at Sec.  124.212. The procedures for making 
routine changes are described in the preamble of the proposed rule at 
66 FR 52206 (Section VI.C). Basically, these procedures allow routine 
changes to be made without notifying the regulatory authority, as long 
as those changes do not amend any of the information that was 
originally submitted under Sec.  270.275 during the standardized permit 
application process. If the change amends the information provided 
under Sec.  270.275, then the revised information must be provided to 
the Director, the facility mailing list, and to state and local 
governments, as described in Sec.  124.212(b)(1) and (2).
b. Routine Changes With Prior Agency Approval
    Routine changes with prior agency approval are changes that, 
according to 40 CFR 270.42 Appendix I, either qualify as class 1 
modifications requiring prior agency approval, or as class 2 
modifications. The requirements for making routine changes with prior 
agency approval are found at Sec.  124.213. The procedures for making 
changes with prior approval include the same steps that must be 
followed for making changes that amend the information submitted under 
Sec.  270.275 (see Sec.  124.212(b)(1) and ( 2)), and also require 
approval from the Director.
c. Significant Changes
    Significant changes are any changes that qualify as: (1) Class 3 
permit modifications under 40 CFR 270.42 Appendix I, (2) any changes 
not specifically identified in Appendix I, or (3) any changes that 
amend the terms or conditions in the supplemental portion of the 
standardized permit. The requirements for making significant changes 
are found at Sec.  124.214. The procedures for making significant 
changes to the standardized permit are very similar to the initial 
standardized permitting process, and is described in the preamble of 
the proposed rule at 66 FR 52206 (Section VI.D), and are finalized, as 
proposed.
3. How Do I Renew a Standardized Permit?
    The process to renew a standardized permit is the same as for 
renewing an individual permit. See Sec. Sec.  270.11(h) and 270.30(b). 
To renew a standardized permit, you would follow the same procedures as 
you would to initially obtain coverage under the standardized permit 
(those in 40 CFR part 124 subpart G). We did not receive any 
significant comment regarding the process of renewing a standardized 
permit, and therefore, are finalizing this section, as proposed.

IV. Section by Section Analysis and Response to Comments for the Part 
267 Standards for Owners and Operators of Hazardous Waste Facilities 
Operating Under a Standardized Permit

A. Overview

    Most of the proposed part 267 requirements have been finalized, as 
proposed, with few exceptions, which are discussed later in this 
section. The requirements in part 267 form the basis for the uniform 
portion of the standardized permit, which is a required part of all 
standardized permits.
    Some commenters argued that the standardized permit rule only adds 
another set of regulations, and thus, adds to the difficulty of keeping 
track of the various permits. We acknowledge this rule does add another 
set of regulations to the CFR. However, these regulations replace the 
existing technical regulations (part 264) that already apply to tanks, 
containers, and containment buildings, which these facilities are 
already subject to. Thus, we would disagree with the commenter that all 
we are doing is subjecting these units to additional regulation. 
Moreover, as stated previously, we believe that this rule will help 
streamline the permitting process, saving time and resources for both 
the facility and the regulatory agency, while maintaining protection of 
human health and the environment.

B. Subpart A--General

1. Purpose, Scope, and Applicability
    The final rule sets forth the minimum national standards for 
facilities managing wastes under a standardized permit. The final part 
267 standards apply to owners and operators who store or non-thermally 
treat their wastes on-site in tanks, containers, and containment 
buildings, and to facilities that manage wastes generated off-site, by 
a generator under the same ownership as the receiving facility. Based 
on comments, there appeared to be some confusion on whether facilities 
with thermal treatment units could apply for a standardized permit for 
their eligible units in which non-thermal treatment or storage is being 
conducted. A facility may apply for a standardized permit for its 
eligible units, regardless of what other hazardous waste management is 
occurring at the facility. For example, a hazardous waste incineration 
facility that conducts tank storage for wastes generated on site may 
apply for a standardized permit for the tank storage. Except for a 
clarifying

[[Page 53431]]

correction to the part 270 reference (subpart J rather than subpart I), 
the language of Sec.  267.1 is finalized, as proposed.
2. Relationship to Interim Status Standards
    The final Sec.  267.2 provisions are similar to the Sec.  264.3 
provisions. If you are currently complying with the requirements for 
interim status, you will need to continue to comply with the interim 
status standards specified in part 265 until final disposition of your 
standardized permit application. We received no significant comments on 
this section. Thus, the Sec.  267.2 requirements are finalized, as 
proposed.
3. Imminent Hazard Action
    The final Sec.  267.3 provisions repeats the current Sec.  264.4 
provisions concerning imminent and substantial hazards. We received no 
significant comments on this section, and therefore, are finalizing 
these provisions, as proposed.

C. Subpart B--General Facility Standards

    These standards are similar to the general facility standards 
currently found in 40 CFR part 264 subpart B. These standards describe 
how to obtain an EPA identification number, requirements for waste 
analysis, security requirements, inspection schedules, employee 
training, managing ignitable, reactive or incompatible wastes, and 
location standards.
1. Applicability
    The applicability language in Sec.  267.10 is finalized, as 
proposed, except for the change in the reference to subpart I to 
subpart J, of part 267. The reason for this change is editorial. No 
significant comments were received on this section. The purpose of part 
267 is to establish minimum national standards for facilities managing 
waste under a standardized permit, and as such would apply to owners 
and operators of facilities who non-thermally treat and/or store 
hazardous waste on-site in tanks, containers, and/or containment 
buildings, as well as facilities that receive hazardous waste generated 
off-site by a generator under the same ownership as the receiving 
facility and who store or non-thermally treat the hazardous waste in 
containers, tanks, or containment buildings.
2. How Do I Comply With This Subpart?
    Section 267.11 lists the steps you need to take if the subpart 
applies to you. Specifically, you would obtain an EPA identification 
number, and follow prescribed requirements for waste analysis, 
security, inspections, training, special waste handling and location 
standards. We are finalizing Sec.  267.11, as proposed, because no 
substantive comments were received on this section.
3. How Do I Obtain an EPA Identification Number?
    Section 267.12 generally repeats the requirement currently in Sec.  
264.11 with the addition of whom to contact for information. No 
significant comments were received on this section, and thus, we are 
finalizing this provision, as proposed.
4. What Are the Waste Analysis Requirements?
    The provisions of Sec.  267.13 are finalized and include a change 
related to eligible off-site facilities. These provisions generally 
require owners and operators to prepare a waste analysis plan and keep 
it on-site at their facility. Eligible facilities that receive wastes 
generated off-site must submit a waste analysis plan with their Notice 
of Intent, as well as retain the plan on-site.
    Several commenters expressed the need for submission and approval 
of waste analysis plans, particularly if the rule was extended to 
include off-site facilities. Because we are extending the rule to 
certain off-site facilities, as described previously, we are requiring 
those facilities to submit a waste analysis plan with the Notice of 
Intent. Most commenters addressing waste analysis plans supported the 
idea that on-site facilities would not need to submit waste analysis 
plans. Therefore, we are not requiring on-site facilities to submit 
waste analysis plans with the Notice of Intent. (See the discussions of 
on-site versus off-site in section II.D, and on waste analysis plans in 
section III.A.1.b of this preamble.)
    A number of commenters discussed the importance of waste analysis 
plans. DOE noted that a key aspect of the acceptability of this 
approach [extending the rule to eligible offsites] would be the proper 
design and implementation of waste analysis requirements to ensure the 
compatibility of wastes from multiple off-site sources that are stored 
and treated together. For example, at least one DOE site that receives 
waste from off-site believes it has as much knowledge and confidence in 
the compatibility of the off-site wastes as it has for waste generated 
on-site, because of its approach to waste analysis.
    DOE also noted that ``to verify that acceptable waste analysis 
requirements are in place at a facility managing waste from off-site, 
they suggest that EPA require the facility to submit a waste analysis 
plan with the Notice of Intent to operate under a standardized permit.
    One commenter noted that where a facility has numerous processes 
contributing hazardous waste to a storage or treatment unit, the waste 
analysis plan would be significantly more complex. In this case, it may 
be prudent to submit the waste analysis plan with the initial 
notification to ensure that waste management procedures are adequately 
protective.
    Based on these comments and the need they expressed to have 
adequate knowledge of wastes being received from off-site, we are 
requiring that waste analysis plans be submitted to the regulatory 
agency with the Notice of Intent. Multiple facilities under the same 
owner may be in different states, and may have variations in their 
waste streams. States should have waste analysis information concerning 
wastes generated in facilities located in other states in deciding 
whether the facility should receive a standardized permit, and in 
ensuring that waste analysis at the receiving facility will be 
sufficient to protect human health and the environment.
5. What Are the Security Requirements?
    The Sec.  267.14 security provisions are similar to the Sec.  
264.14 provisions. The proposal in Sec.  267.14(a) and (b) provided for 
an exemption from the security provisions by requiring a certification 
that both of the conditions in Sec.  267.14(a) are met. While several 
commenters supported the exemption in the proposal, most of the 
commenters believed that the proposed security provisions are 
reasonable, and that there is no reason for an exemption from those 
provisions. If, for example, a facility wants consideration for an 
exemption due to site-specific conditions, such a facility might likely 
be a better candidate for an individual permit, than for a standardized 
permit. Commenters also noted that the conditions for the exemption are 
rarely met.
    Based on the comments submitted and upon reflection of the Agency's 
overall goal in issuing the standardized permit rule, we believe that 
having an exemption provision would add to the complexity of what is 
intended to be a streamlined permit process. If allowed, the exemption 
would require review and approval stages, adding to the time necessary 
for issuance of a draft permit. Therefore, the final rule does not 
include the exemption proposed in Sec.  267.14(a), and the remaining 
language in Sec.  267.14 has been edited accordingly.

[[Page 53432]]

6. What Are the Inspection Schedule Requirements?
    The Sec.  267.15 inspection schedule requirements are finalized, as 
proposed. No significant comments were received on this section.
7. What Are the Training Requirements?
    The Sec.  267.16 training requirements are essentially the same as 
the training standards in Sec.  264.16, and are finalized, as proposed. 
No significant comments were received on this section. Owners/operators 
will be required to keep a description of the training program and 
individual personnel training logs with other required records at their 
facility.
8. What Are the Requirements for Managing Ignitable, Reactive, or 
Incompatible Waste?
    The general requirements of Sec.  267.17 for managing ignitable, 
reactive, or incompatible waste are very similar to the requirements 
found in Sec.  264.17, and are finalized, as proposed. No significant 
comments were received on this section. These general requirements 
minimize the potential for accidents when handling ignitable or 
reactive wastes, or when mixing incompatible wastes.
9. What Are the Location Standards?
    The Sec.  267.18 location standards are similar to the requirements 
found in Sec.  264.18, except that today's final rule does not provide 
for a waiver from the 100-year floodplain restriction, based on the 
ability to remove the waste.
    Most commenters agreed with the Agency that we should not allow a 
waiver from the location requirements that prohibit locating a facility 
in a 100-year floodplain, if wastes can be removed before flood waters 
reach the facility. Commenters provided similar arguments to those 
regarding the exemption from the security provisions. Moreover, they 
argued that if a facility believes, based on site-specific conditions, 
that they should be eligible for a waiver, that the facility would 
likely be better suited for an individual permit. We agree with these 
commenters.
    However, some commenters argued that the waiver provision should be 
available for siting a facility in the 100-year floodplain in order to 
maximize regulatory relief. We disagree. Similar to our reasons for not 
having an exemption from the security provisions of Sec.  267.14, we 
believe that having a waiver from the location standards would only add 
to the complexity of what is intended to be a streamlined permit 
process. If allowed, waivers would require review and approval stages, 
adding to the time necessary for issuance of a draft permit, which 
detracts from the intent of permit streamlining. Therefore, we are not 
providing for a waiver from the floodplain location standards in the 
final rule.

D. Subpart C--Preparedness and Prevention

    This subpart requires you as the owner or operator to minimize 
threats to human health and the environment caused by the release of 
waste from unplanned events.
1. What Are the Design and Operation Standards?
    The requirements of Sec.  267.31 are the same as those found in 
Sec.  264.31, and include requirements on how to design, construct, 
maintain and operate your facility to minimize threats to human health 
and the environment. No significant comments were received on this 
section. Therefore, we are finalizing the requirements, as proposed.
2. What Equipment Am I Required To Have?
    Section 267.32 equipment requirements are finalized, as proposed. 
This section requires you to have certain equipment at the facility, 
including an alarm system, communication equipment, fire extinguishers 
and fire control equipment, and either water at adequate volume and 
pressure to supply hose streams, foam equipment, or water spray 
systems. The section also provides an exemption for certain equipment, 
otherwise required, if the potential hazards at the facility don't 
warrant the equipment. To make use of that equipment exemption, you 
would need to submit a certification and keep documentation supporting 
the exemption at your facility. This exemption has been retained for 
two reasons: It avoids unnecessary expenditures, and the exemption does 
not require approval of a demonstration by the permitting agency. 
However, you would be required to keep documentation supporting any 
equipment exemption at the facility and you would make the 
documentation available for review by the permitting agency and the 
public. No significant comments were received on this section.
3. What Are the Testing and Maintenance Requirements for Equipment?
    Section 267.33 is finalized, as proposed, requiring the testing of 
all equipment identified in Sec.  267.32. No significant comments were 
received on this section.
4. What Are the Requirements for Access to Communication Equipment or 
an Alarm System?
    Section 267.34 requires all personnel involved in waste handling to 
have ready access to communication equipment and alarms. The 
requirement would not apply when the equipment is not required under 
Sec.  267.32. No significant comments were received on this section. 
Therefore, this section is finalized, as proposed.
5. What Are the Requirements for Access for Personnel and Equipment 
During Emergencies?
    Section 267.35 is being finalized with additional language as 
described below. Specifically, a commenter suggested adding the 
following language to the end of proposed Sec.  267.35: ``as 
appropriate considering the type of waste being stored or treated.'' We 
agree with the suggested change because it acknowledges that certain 
wastes may not necessarily require spill control or fire equipment 
access to the area.
6. What Are the Requirements for Arrangements With Local Authorities 
for Emergencies?
    Section 267.36, regarding making arrangements with local entities 
such as police, fire, and response authorities, is finalized, as 
proposed. No significant comments were received on this section.

E. Subpart D--Contingency Plans and Emergency Procedures

    This subpart contains standards requiring a contingency plan that 
describes how hazards to human health and the environment will be 
minimized. These requirements are similar to those in part 264 subpart 
D with the exception that you are not required to submit the plan with 
your application.
    The following Sections of subpart D are finalized, as proposed, 
because no significant comments were received.
a. Purpose of the Contingency Plan (Sec.  267.51)
b. What is Required to be in the Contingency Plan? (Sec.  267.52)
c. Who is Required to Have Copies of the Contingency Plan? (Sec.  
267.53)
c. Revising the Contingency Plan (Sec.  267.54)
d. Role of the Emergency Coordinator (Sec.  267.55)
e. Emergency Procedures for the Emergency Coordinator (Sec. Sec.  
267.56 and 267.57)

F. Subpart E--Manifest System, Record keeping, Reporting, and Notifying

    This subpart of part 267 contains the standardized permit manifest 
system, record keeping, reporting, and notifying

[[Page 53433]]

requirements. We changed the name of the heading for subpart E to 
reflect the applicability of the manifest system requirements in cases 
involving eligible off-site facilities.
1. When Would I Need To Manifest My Waste?
    Today's rule extends eligibility for the standardized permit to 
certain off-site facilities. Because the proposal only addressed on-
site generator facilities, Sec.  267.70 did not include all of the 
provisions from Sec.  264.71 ``Use of the Manifest System.'' We, 
therefore, are finalizing today's rule to insert the provisions of 
Sec.  264.71 into Sec.  267.71, now titled ``Use of the Manifest 
System,'' and the provisions of Sec.  264.72 into Sec.  267.72, now 
titled ``Manifest Discrepancies.''
    With these insertions, the proposed Sec. Sec.  267.71 through and 
267.74 are renumbered and finalized as follows:
    a. Section 267.71 becomes Sec.  267.73 (What Information Must I 
Keep?);
    b. Section 267.72 becomes Sec.  267.74 (Who Sees the Records?);
    c. Section 267.73 becomes Sec.  267.75 (What Reports Must I Prepare 
and to Whom Do I Send Them?); and
    d. Section 267.74 becomes Sec.  267.76 (What Notifications Must I 
Make?).

Because we are extending eligibility to certain off-site facilities, we 
are adding paragraphs to Sec. Sec.  267.73 and 267.75 that relate to 
off-site facilities (e.g., Sec.  267.73(b)(11) and (12) and Sec.  
267.75(c) and (d)).
    One commentor suggested that a change to include manifest 
requirements in the final rule be made to allow for off-site facility 
eligibility. Because we are extending this rule to certain off-site 
facilities, where an owner/operator manages their own waste generated 
at several locations, the suggested change to Subpart E was 
appropriate.
2. What Information Would I Need To Keep?
    For similar reasons as with the section on ``when would I need to 
manifest my waste?,'' proposed Sec.  267.71 was developed with on-site 
generator facilities only. Because certain off-site facilities are now 
included, we are adding the applicable provisions from Sec.  264.71 
that relate to off-site facilities, into Sec.  267.73.
    One commentor noted that there appeared to be some confusion on 
retention times for records. The retention time for records, unless 
otherwise noted, is until the facility is closed, as is stated at Sec.  
267.73(b).
    According to Sec.  267.73(b), records must be retained until the 
facility is closed. In addition, Sec.  267.74(b) further states this 
retention period can be extended due to an unresolved enforcement 
action involving the facility or as requested by the Administrator. For 
the purpose of clarity, we removed the words ``and how long do I keep 
them'' from the heading of Sec.  267.74.
3. Who Sees the Records?
    Proposed Sec.  267.72 regarding submission of records to the 
permitting authority is finalized at Sec.  267.74. No significant 
comments were received on this section.
4. What Reports Do I Need To Prepare and to Whom Would I Need To Send 
Them?
    Because we are finalizing today's rule to extend to certain off-
site facilities, we are adding the applicable provisions from Sec.  
264.76 (Unmanifested Wastes) to proposed Sec.  267.73, and finalizing 
that section at Sec.  267.75. No significant comments were received on 
this section.
5. What Notifications Must I Make?
    Proposed Sec.  267.74 is finalized as Sec.  267.76. No significant 
comments were received on this section.

G. Subpart F--Releases From Solid Waste Management Units

    Section 267.101 of the final rule sets forth requirements for 
corrective action at facilities that obtain standardized permits. These 
requirements have not been changed from the October 12, 2001 proposed 
rule.
    Section 3004(u) of RCRA provides that all permits issued after 
November 8, 1984 and under the authority of section 3005 must require 
corrective action for all releases of hazardous waste or constituents 
from any solid waste management units (SWMU) at the facility, as 
necessary to protect human health and the environment (see also 40 CFR 
264.101). Section 3004(u) requires that schedules of compliance (where 
corrective action cannot be completed prior to permit issuance) and 
financial assurances for completing such corrective action be included 
in the permit. In addition, section 3004(v) directs EPA to require 
corrective action as necessary to protect human health and the 
environment beyond the facility boundary, where permission to conduct 
such corrective action can be obtained. Because standardized permits, 
like non-standardized permits (i.e., individual permits and permits-by-
rule), will be issued under the authority of section 3005 of RCRA, 
these statutory corrective action requirements extend to standardized 
permits as well. Section 267.101(b) provides that corrective action 
provisions will be specified in the supplemental portion of the 
standardized permit (as necessary to protect human health and the 
environment). In the October 12, 2001 proposed rule, the Agency did not 
propose standardized permit conditions for corrective action. The 
Agency explained that, while it was attempting to streamline the permit 
application and permit issuance processes by developing generic design 
and operating standards for storage permits, it had to balance the 
desire for a streamlined permitting process against the need for 
flexibility in the corrective action program. The Agency recognized 
that most sites in the RCRA corrective action universe are unique, and 
that site-specific determinations for corrective action remedies are 
vital to assuring the best remedy is selected at each site. The Agency 
therefore proposed the same site-specific flexibility for corrective 
action under standardized permits as is available under non-
standardized permits. The Agency believed that this approach would 
provide flexibility to fashion remedies that are protective of human 
health and the environment and that reflect the conditions and the 
complexities of each facility. The Agency solicited comment on this 
approach, but also requested suggestions for standardized corrective 
action permit conditions.
    The Agency received few comments on this proposed approach. While 
some commenters agreed that site-specific flexibility should be 
preserved for corrective action, some suggested standard permit 
conditions that the Agency might adopt.
    One commenter suggested that the Agency develop standard permit 
conditions for presumptive remedies or specified corrective action 
approaches which could be incorporated into the uniform portion of the 
standardized permit. Though the Agency agreed that the commenter raised 
interesting ideas, the Agency did not develop standard permit 
conditions based on this comment for several reasons. First, the 
commenter did not provide sufficient detail to develop standard 
conditions, and developing the suggested standard permit conditions 
would have required significant effort on the part of the Agency. The 
Agency did not believe that the level of interest demonstrated by 
commenters for standard permit conditions for corrective action 
warranted those efforts. In addition, the Agency did not believe that 
this rule was an appropriate forum for addressing the type of 
streamlined approach suggested by the commenter.

[[Page 53434]]

Presumptive remedies and generic standards for streamlined approaches 
to corrective action are based on factors such as type of waste and 
media requiring cleanup--factors unrelated to the eligibility criteria 
for standardized permitted facilities. Thus, presumptive remedies and 
generic standards for streamlined approaches to corrective action are 
program-wide issues that the Agency believes are better addressed in 
other forums.
    Another commenter suggested that standardized permits should 
contain several standard permit conditions, at a minimum, including 
notification requirements for, and assessment of, newly identified 
solid waste management units, areas of concern, and newly identified 
releases; content requirements for workplans and reports; approval 
procedures for workplans and reports; and approval procedures for final 
remedies. The Agency did not develop standard permit conditions in 
response to this comment. As was the case with the first commenter, 
this commenter did not provide the detail that would have been 
necessary to develop standard permit conditions. Further, the process-
oriented permit conditions suggested by the commenter would have been 
inconsistent with the Agency's approach to implementation of the 
corrective action program. Since the time of the proposal, the Agency 
has continued to move away from a process-oriented corrective action 
approach toward a results-based strategy for corrective action. In 
September, 2003, the Agency issued guidance entitled ``Results-Based 
Approaches and Tailored Oversight Guidance,'' which encouraged the use, 
where appropriate, of results-based approaches to corrective action. As 
described in the guidance, results-based approaches emphasize outcomes, 
or results, in cleaning up releases, and strives to tailor process 
requirements to the characteristics of the specific corrective action. 
The Agency believes that development of the standard permit conditions 
for corrective action as suggested by the commenter would not be 
consistent with a results-based approach.
    The Agency believes that the better approach is to continue to 
allow regulators the flexibility to develop permit conditions based on 
the conditions at the site. Thus, Sec.  267.101(b) provides that 
provisions (or schedules of compliance) for corrective action will be 
specified in the supplemental portion of a standardized permit, and 
Sec.  267.101(c) provides for corrective action beyond the facility 
boundary. These paragraphs impose requirements for corrective action at 
facilities that receive standardized permits that are identical to 
those requirements imposed by Sec.  264.101 at facilities that receive 
non-standardized permits.
    In the proposed rule (see 66 FR 52191), the Agency also solicited 
comment on how cleanups under cleanup programs other than the 
authorized RCRA program (or under ``alternate authorities'') might be 
addressed in RCRA permits, including facilities with standardized 
permits. The Agency identified two approaches that might be used to 
address an alternate cleanup authority in a RCRA permit--the approaches 
were referred to as ``postponement'' and ``deferral.'' Under the 
postponement approach, the permitting authority would postpone the 
determination of RCRA-specific corrective action provisions until a 
cleanup under an alternate State authority is completed. Under the 
deferral approach, the permitting authority would make a determination 
that corrective action is necessary, and that the appropriate 
corrective action at the site would be the state action run by the 
state alternate program. The Agency requested comment on the 
postponement and deferral approaches as part of its ongoing effort to 
determine how to effectively utilize alternate authorities to address 
corrective action needs at RCRA facilities.
    The Agency is not taking final action in this final rule with 
respect to the issues raised regarding alternate authorities. The 
Agency does note, however, that since the time of the proposed rule, 
the Agency has continued, outside of the context of this rulemaking, to 
support the appropriate use at specific sites of alternate authorities 
to address RCRA corrective action, not only at permitted facilities, 
but at other RCRA facilities as well.\3\ The Agency plans to address 
issues and options related to the use of alternate authorities 
discussed in the proposal, including how to address alternate 
authorities in RCRA permits, outside of the context of this 
rulemaking.\4\
---------------------------------------------------------------------------

    \3\ Alternate authorities are utilized at RCRA facilities in 
most States. These authorities include a variety of cleanup 
programs, including voluntary programs and state superfund-type 
programs.
    \4\ It should be noted that since issues related to use of 
alternate authorities are not addressed in this final rule, the 
Agency did not respond to comments related to those issues.
---------------------------------------------------------------------------

H. Subpart G--Closure

1. Does This Subpart Apply to Me?
    The language of Sec.  267.110 is finalized, as proposed, since no 
significant comments were received on this section. You are subject to 
the requirements of subpart G if you own or operate a facility treating 
or storing hazardous waste under a standardized permit.
2. What General Standards Must I Meet When I Stop Operating the Unit?
    The language of Sec.  267.111 has been modified to further 
reinforce that facilities under a standardized permit must clean close. 
If a facility under a standardized permit cannot clean close, then the 
owner/operator of the facility must pursue post-closure options.
3. What Procedures Must I Follow?
    As discussed below, Sec.  267.112 has been revised to require that 
the closure plan be submitted with the Notice of Intent, instead of 180 
days prior to closure, as proposed. The closure plan, as part of the 
permit, would be approved with final permit issuance.
    The Agency requested comments on several aspects of the closure 
plan in the proposed rule. Specifically, while the Agency proposed to 
require that the closure plan be submitted at least 180 days prior to 
closure, we also requested comment on whether the closure plan should 
be submitted with the Notice of Intent; not allowing the option to 
close as a landfill and therefore require clean closure of the units 
addressed in the standardized permit; and not allowing time extensions 
for closure. We also requested comments and suggestions for procedures 
to be followed in the event that you do not know that you are to 
receive the final volume of hazardous waste until you are within the 
180 day period, and proposed options for that occurrence. Finally, we 
invited comment on an option of not requiring a closure plan, but, 
instead, including closure conditions in the standardized permit. Our 
response to these comments are addressed in this section of the 
preamble and in the Response to Comments document.
    The majority of the comments received supported a requirement that 
the closure plan be submitted with the Notice of Intent. Those who 
favored the closure plan being submitted with the Notice of Intent 
argued that early submittal of the closure plan would be more 
protective of human health and the environment because it would allow 
for better cost estimates, would allow for early negotiation of closure 
conditions, and would avoid the problem of meeting time frames within 
the 180-day window. Moreover, as noted previously, requiring the plan 
up front would allow the regulatory authority to review the plan and 
assure the regulatory authority of the owner/operator's ability to 
complete closure. Early submission of a closure plan would also help 
support closure cost

[[Page 53435]]

estimate figures. Finally, the revision would allow the public to 
review the plan during the public comment period for the publicly 
noticed permit. Consequently, we agree that it would be more 
appropriate to require that the closure plan be submitted with the 
Notice of Intent and have modified the rule accordingly.
    With this change to require closure plan submissions with the 
Notice of Intent, we have modified the proposed Sec.  267.112(c) 
language to account for changes to the facility requiring a change to 
the closure plan. These changes may include, but are not limited to, 
changes in the operating plan, facility design, change in the year of 
closure, and unexpected events. These conditions were not relevant in 
the proposed rule where the closure plan was not required until 180 
days prior to closure.
4. Will the Public Have the Opportunity To Comment on the Plan?
    Based on the changes discussed in the previous section, the public 
will have an opportunity to review the closure plan during the public 
comment period that occurs once the draft permit is public noticed.
5. What Happens if the Plan Is Not Approved?
    Because of the change made to require that the closure plan be 
submitted with the Notice of Intent, Sec.  267.114 is no longer 
appropriate and thus, is not included in the final rule. The plans are 
considered approved when the final permit is issued, becoming part of 
the permit. If the plan is not acceptable, then the standardized permit 
will not be issued.
6. After I Stop Operating, How Long Until I Must Close?
    The proposed rule required that closure begin within 30 days after 
the facility received its final volume of hazardous waste, and that 
clean closure be completed within 180 days after receiving the final 
volume of waste, with no time extensions. (The rule intends that 
eligible units should be able to clean close.) Our rationale for 
requiring clean closure of the units subject to the standardized permit 
was to reduce the likelihood of any unforeseen circumstances and thus, 
it would be unlikely that closure would take longer than 180 days. 
Nevertheless, in the proposal, we invited comments on the need for 
extending the closure time period to allow for more time to clean 
close.
    Most commenters agree with the Agency that, in most cases, 180 days 
is an adequate amount of time to clean close container units, tank 
storage units, and containment buildings. However, commenters also 
believed it appropriate (and necessary) to include a provision in the 
final rule that would allow for an extension for circumstances beyond 
the control of the owner/operator.
    Based on these comments and the Agency's experience in implementing 
the hazardous waste program, we agree with the commenters that a 
provision should be included in the final rule that would allow a one-
time extension for circumstances beyond the control of the owner/
operator. Therefore, we are including a provision in the final 
regulations at Sec.  267.115 to allow for a one-time extension of 180 
days to the time allowed to clean close to address circumstances beyond 
the control of the owner/operator. In cases where closure is expected 
to take more time, the facility will be required to use post-closure 
options to close.
7. What Must I Do With Contaminated Equipment, Structures, and Soils?
    The language of Sec.  267.116 is finalized, as proposed. No 
comments were received on this section.
8. How Do I Certify Closure?
    The language of Sec.  267.117 is finalized, as proposed. No 
comments were received on this section.

I. Subpart H--Financial Requirements

    Much of the regulatory language in this final rule uses a format of 
questions and answers that refers to the permittee as ``you'' and to 
EPA as ``we.'' Except for the introduction to the regulations (Sec.  
267.140), the language in Subpart H does not follow the question and 
answer format, and it does not use these first and second person 
pronouns to identify the subject. There are two main reasons for this 
difference. First, the underlying current financial responsibility 
regulations in subpart H of 40 CFR parts 264 and 265, which remain 
integral to the proposed part 267 regulations, do not use first and 
second person pronouns, and EPA has not rewritten the existing part 264 
and 265 regulations to conform to the question and answer format. The 
regulations here cross reference the existing part 264 regulations 
extensively, and often provide that compliance with an existing part 
264 provision would constitute compliance with proposed part 267. This 
linkage of the regulations is necessary so that firms with facilities 
under both existing part 264 (or part 265 regulations) and proposed 
part 267 could use the same mechanism for more than one facility, thus 
eliminating the expense of a separate mechanism. EPA expects that 
several firms using the proposed standardized permit could have other 
facilities operating under existing part 265 interim status or part 264 
permitting standards.
    Second, unlike many other permitting regulations, the 
responsibilities in the financial assurance regulations often extend to 
parties in addition to EPA (or the state permitting agency) and the 
permittee. For example, a trustee agrees to perform certain functions 
as part of a trust agreement where EPA is the beneficiary, but EPA is 
not a signatory. Third, parties must fulfill their responsibilities in 
accordance with, and the language used for the documents often must 
conform to, specific industry standards such as the Uniform Commercial 
Code. Because third parties are integral to the operation of the 
financial responsibility regulations, EPA has not issued regulatory 
language based upon first and second person subjects.
    1. Who must comply with this subpart and briefly what must they do? 
The financial responsibility requirements for the standardized permit 
largely mirror the provisions found currently in 40 CFR part 264 
subpart H. As discussed more fully below, the major differences involve 
the pay-in period for a trust for a new facility, and the adoption of a 
financial test that differs from the current financial test under 40 
CFR part 264 subpart H. Both of these provisions were included in the 
proposal. Under Sec.  267.140, you must comply with these regulations 
if you are the owner or operator of a facility that treats or stores 
waste under a standardized permit, except as provided under Sec.  
267.1(b), and Sec.  267.140(d) which, like current part 264 subpart H, 
exempts the States and the Federal government from the requirements of 
this subpart. If you are subject to these regulations, you must prepare 
a closure cost estimate, demonstrate financial assurance for closure, 
and demonstrate financial assurance for liability. You must also notify 
the Regional Administrator if you are named as a debtor in a bankruptcy 
proceeding under Title 11 (Bankruptcy), U.S. Code.
    2. Definitions. The definitions and terms in Sec.  267.141 largely 
follow those currently used in Sec.  264.141. As discussed below, the 
proposed regulatory text included, as a method of complying with the 
financial assurance requirements, a financial test that reflected the 
test that EPA had proposed for other hazardous waste TSDFs. Because 
this proposed test did not use some of the terms in the part 264 
financial test, EPA omitted those

[[Page 53436]]

definitions from proposed part 267. For the standardized permit rule, 
EPA has adopted the financial tests that were contained in the proposal 
and so the definitions that were omitted from the proposal are again 
omitted from the final text of Sec.  267.141.
    3. Closure cost estimates. For traditional permits, the closure 
plan forms one of the bases for estimating closure costs. However, 
under the proposed rule, the holder of a standardized permit would not 
have had to prepare a closure plan until 180 days before closure. 
Therefore, EPA developed proposed regulatory language that could 
accommodate this difference. As previously discussed, many commenters 
objected to this provision (in part because of the difficulty of 
developing precise cost estimates in the absence of a closure plan) and 
so in the final rule, EPA has required that the closure plan be 
submitted with the Notice of Intent and be approved before the issuance 
of the standardized permit. (See section H. Subpart G, Closure 
preceding this section for further discussion of this issue.) Because 
approval of the closure plan is now required before the issuance of the 
standardized permit, the closure cost estimating requirements can be 
and are the same as for holders of individual permits. Thus, the 
regulatory language that was included in the proposal that would have 
accommodated the difference between proposed Sec.  267.142(a)(1), (2), 
and (5) and the current part 264 subpart H has been removed from the 
final rule, and a new Sec.  267.142(c) added. Under Sec.  270.275(i), a 
copy of the closure cost estimate must be submitted with the Notice of 
Intent. This is consistent with the requirement for other permits in 
Sec.  270.14(b)(15).
    As under the requirements for other permitted facilities, you must 
develop and keep at the facility a detailed written estimate, in 
current dollars, of the cost of closing the facility in accordance with 
the closure requirements of Sec. Sec.  267.111 through 267.117, and 
applicable closure requirements in Sec. Sec.  267.176, 267.201, and 
267.1108. As under the requirements for facilities operating under 
individual permits, you must base these cost estimates upon a closure 
plan. Under Sec.  267.142(a)(1), the estimate must equal the cost of 
final closure at the point in your facility's active life when the 
extent and manner of its operation would make closure the most 
expensive. We are requiring in Sec.  267.142(a)(2) that you base the 
closure cost estimate on the cost to hire a third party to close the 
facility. In addition, the closure cost estimate may not incorporate 
any salvage value from the sale of hazardous waste, non-hazardous 
waste, facility structures or equipment, land, or other assets 
associated with the facility at the time of partial or final closure 
(Sec.  267.142(a)(3)). This disallowance of a salvage credit reflects 
the Agency's conviction that allowing salvage value to be credited is 
inconsistent with the goal of ensuring adequate funds are available in 
the event that the owner or operator fails to cover the costs of 
closure. Further, your cost estimate may not incorporate a zero cost 
for hazardous waste or non-hazardous waste that you might be able to 
sell. The value of waste at closure sometime in the future is too 
speculative to allow it to offset closure costs (Sec.  267.142(a)(4)).
    Under Sec.  267.142(b), you must adjust the closure cost estimate 
for inflation within 60 days before the anniversary date you 
established for the financial instruments utilized to comply with Sec.  
267.143. Proposed Sec.  267.143, which we discuss below, would require 
an instrument to demonstrate financial assurance for closure. If you 
use the financial test or corporate guarantee to demonstrate financial 
responsibility, you must update your closure cost estimate for 
inflation within 30 days after the close of the firm's fiscal year and 
before submitting the updated financial test information to the 
Regional Administrator. Because the financial test submission must be 
updated for inflation within 90 days of the close of the firm's fiscal 
year, effectively both users of the financial test and corporate 
guarantee, and users of the other mechanisms must update the cost 
estimates on the same schedule.
    However, we requested public comment on whether to change the 
deadline for updating the cost estimate for inflation for users of the 
financial test to 90 days after the close of the fiscal year. Changing 
to 90 days would have made this requirement the same as the deadline 
for updating the financial test. After evaluating the public comments, 
we decided to keep the dates for updating cost estimates for holders of 
standardized permits the same as for individual permits. Changing these 
dates would have made them inconsistent with the dates for individual 
permits. While two commenters recommended the change, another 
recommended against it and we determined that keeping the dates 
consistent with the other program requirements would be preferable.
    In adjusting your cost estimate, you may recalculate the maximum 
costs in current dollars or use an inflation factor derived from the 
Implicit Price Deflator for Gross Domestic Product published by the 
U.S. Department of Commerce. This is a slightly different specification 
for the adjustment than is currently in Sec.  264.142 because those 
regulations specify the use of the Implicit Price Deflator for Gross 
National Product rather than the Gross Domestic Product. We proposed 
using the Gross Domestic Product deflator under this rule because the 
Gross Domestic Product Deflator is more readily available. Generally, 
the differences between the two series are not significant and we 
believe using the more readily available information will help you to 
better comply with the requirement to adjust your cost estimate for 
inflation. We received no adverse comment on using the Gross Domestic 
Product deflator and therefore, have included it in the final rule. EPA 
notes it has issued guidance allowing owners and operators of 
facilities with individual permits to use the Implicit Price Deflator 
for Gross Domestic Product under Sec.  264.142 so long as they are 
consistent in its use.
    Under proposed Sec.  267.142(a)(5), you would have been required to 
revise your closure cost estimate in accordance with the closure plan 
within 30 days after submitting your closure plan. This provision is 
not part of the final rule because now the closure plan must be 
submitted with the Notice of Intent. The requirements for closure costs 
are the same in Sec.  267.142 as in Sec.  264.142. You would also 
adjust the revised closure cost estimate for inflation as proposed in 
Sec.  267.142(b). These requirements mirror those currently in part 264 
for facilities operating under individual permits and have been 
incorporated into this final rule.
    As with the current Sec.  264.142(c) requirement, under Sec.  
267.142(c), you must update the closure cost estimate when a 
modification to the closure plan has been approved. If you modify your 
operations so that the cost of closure would increase, you must 
increase the closure cost estimate and provide financial assurance for 
that amount under Sec.  267.143.
    Similarly, the requirements in Sec.  267.142(d) correspond to the 
existing requirements in Sec.  264.142(d) and require you to maintain 
the latest cost estimate at the facility, and, when the cost estimate 
has been adjusted for inflation as required under Sec.  267.142, the 
latest adjusted closure cost estimate.
    In the preamble and docket to the proposed rule, we described 
several options that the holder of a standardized permit could use to 
develop a closure cost estimate in the absence of a closure plan. As 
discussed more fully above in Subpart G--Closure, EPA is requiring

[[Page 53437]]

facilities to submit a closure plan as part of the Notice of Intent and 
the closure plan will be available when the closure cost estimate is 
prepared. As a result, the final rule does not need to contain tools to 
develop a closure cost estimate in the absence of a closure plan. 
However, because of comments suggesting that the various options for 
developing closure cost estimates could be useful, we note that the 
Options remain in the docket and may be used as aids in computing cost 
estimates.
    EPA also requested comment on waiving cost estimates for facilities 
that use the financial test (Option 6). Some commenters objected to 
this because firms can initially pass the financial test, but then 
later fail to qualify. Such firms will need a cost estimate to 
determine the amount of the replacement financial assurance instrument. 
EPA agrees with the comments that having a cost estimate will be useful 
in determining the amount of a replacement financial assurance 
instrument, if a facility later fails to qualify and, so, EPA is not 
providing a waiver for cost estimates for facilities that use the 
financial test. One of the commenters noted that a firm could pass the 
financial test and then declare bankruptcy without a cost estimate so 
that the permitting authority could have difficulty in presenting a 
claim in bankruptcy court. EPA notes that closure costs are not 
actually ``claims'' in bankruptcy court, but are regulatory obligations 
imposed via governmental policy and regulatory filings and, as such, 
continue despite a bankruptcy filing. The Agency agrees, however, that 
having a cost estimate in place during a bankruptcy may be helpful, not 
only because it aids the owner/operator in evaluating its financial and 
environmental obligations, but also because it may assist the 
regulatory authority in determining the extent of the owner/operator's 
regulatory obligations.
    4. Financial assurance for closure. We designed the requirements in 
Sec.  267.142 to ensure that the cost estimate which forms the basis 
for determining the amount of the financial assurance instrument 
required in Sec.  267.143 would provide sufficient funds to close the 
facility properly at any time. We want to ensure that there would be 
sufficient financial resources to close the facility properly even in 
the event that the facility enters bankruptcy. The requirements in 
Sec.  267.143 specify the mechanisms from which you must choose to 
demonstrate financial assurance for closure obligations.
    The requirements in Sec.  267.143 allow the use of the same 
mechanisms that are available to owners and operators of facilities 
operating under individual permits currently issued under part 264. 
However, we have made modifications to these requirements (from the 
analogous requirements in part 264) to account for the particular 
circumstances of the standardized permit. The differences between the 
requirements under Sec. Sec.  264.143 and 267.143 are discussed below.
Closure Trust Fund (Sec.  267.143(a))
    Under Sec.  267.143(a), the pay-in period for the closure trust 
fund for a facility with a standardized permit differs slightly from 
the pay-in period for facilities with individual permits issued under 
part 264. Currently, if you have a new facility seeking coverage under 
a part 264 permit, you must make annual payments into the trust fund 
over the remaining life of your facility, as estimated by your closure 
plan, or over the life of the permit (which is usually ten years), 
whichever is shorter. Under the proposed standardized permit 
procedures, however, we proposed a period of three years as the pay-in 
period. We chose this time period (which is shorter than the life of 
the permit as currently allowed for individual permits under Sec.  
264.143(a)(3)) because the current requirements in Sec.  264.143(a)(3) 
were selected to accommodate the types of operations, such as 
landfills, which would normally be receiving waste over a period of 
years, with potentially increasing closure costs over that time period. 
Conversely, we did not expect facilities proposing to operate under the 
standardized permit to build up their waste volumes, and the resulting 
closure costs, over time. Moreover, the cost for closing a facility 
operating under the standardized permit would not include the costs of 
ground water monitoring, covers, or post-closure monitoring, so we 
expected the cost to be less than for many of the other types of 
facilities with individual permits that are currently subject to Sec.  
264.143. Therefore, we anticipated that the burden of the three-year 
pay-in period would not be excessive. Further, we noted that requiring 
a three-year pay-in period can preclude some potential problems that 
can arise under the longer pay-in period. For example, a long pay-in 
period can lead to insufficient funds being available at the time of 
closure, if the facility closes early. If the financial condition of 
the permittee were to deteriorate toward the beginning of the pay-in 
period, the owner or operator would not yet have funded a substantial 
fraction of the trust, and the permitting authority could be left with 
insufficient funds for closure in the event of the permittee's failure 
to perform closure. Furthermore, the three-year period is consistent 
with the requirements for financial assurance for commercial storers of 
PCB wastes. See Sec.  761.65(g)(1)(i). EPA requested comment on the 
proposed use of three years as the pay-in period for a trust fund.
    We received several comments on the pay-in period for the trust 
fund for new facilities. One state noted that a three-year pay-in 
period would reduce the incentive for interim status facilities or 
generators who wish to have the option to store for more than 90 days 
to apply for a standardized permit. However, as noted in the preamble 
to the proposal, the pay-in period for interim status facilities that 
use, or switch to, a trust fund ended on July 6, 2002 (twenty years 
after the effective date of the financial responsibility rules for 
closure and post-closure care). Conversion to a permit, whether 
standardized or individual, does not reopen the pay-in period or extend 
the pay-in period. An owner or operator who switches from another 
mechanism to a trust fund under a standardized permit must fully fund 
the trust. For a generator who wishes to obtain a standardized permit, 
we believe that a three-year pay-in period provides sufficient time to 
afford a trust fund. In addition, we note that generators are not 
required to use a funded trust fund and can instead use other 
mechanisms such as a letter of credit or surety bonds that require a 
smaller cash outlay.
    We received a comment from a state and an industry association that 
the three-year pay-in period was appropriate. On the other hand, some 
states and the Association of State and Territorial Solid Waste 
Management Officials objected to the three-year pay-in period and 
instead recommended a fully funded trust. Upon review of these 
comments, the Agency believes that the three-year pay-in period strikes 
an appropriate balance between the need for complete financial 
assurance, and the possibility that immediate funding of a trust would 
be prohibitively expensive. Also, a state that wishes to adopt the 
standardized permit rule, but believes that the three-year pay-in 
period is too long is not precluded by RCRA from requiring immediate 
funding of the trust.
    An existing facility whose trust fund's value is less than its 
closure cost estimate when it receives a standardized permit would have 
60 days to increase the value of the trust to the amount of the closure 
cost estimate. The requirement proposed in Sec.  267.143(a)(3)

[[Page 53438]]

clarified that the 60 days will apply both to existing facilities under 
interim status and under individual permits, regardless of when they 
obtain a standardized permit. This means that the facility would 
effectively have 60 days to increase the value of the trust. EPA 
received no comments on this proposal and so has included it in the 
final rule.
Surety Bonds (Sec.  267.143(b) and (c))
    The proposed rule would have allowed you to use surety bonds 
guaranteeing either payment or performance as mechanisms to demonstrate 
compliance with proposed Sec.  267.143(b) or (c), respectively. As in 
the existing part 264 subpart H standards, you would also have to 
establish a standby trust fund. Commenters objected to the use of a 
surety bond in the absence of a closure plan because it would place an 
undue burden on permitting agencies in the event that the surety had to 
close the facility under the performance bond. We agree with this 
comment, and is another reason that the Agency has required an approved 
closure plan to be submitted with the Notice of Intent and before the 
issuance of the standardized permit.
    We received a comment from a state recommending that we require 120 
days of notice before the cancellation of a surety bond, or a letter of 
credit under the solid waste financial regulations so that those 
regulations mirror the requirements for hazardous waste facilities. 
While this comment is outside of the scope of this rulemaking, we would 
note our agreement with the desirability of 120 days of notice before 
the cancellation of a surety bond or a letter of credit and point out 
that this is already required. The financial responsibility regulations 
for municipal solid waste landfill facilities are in 40 CFR 258.70 to 
258.75. In 40 CFR 258.74(b)(7), the surety is permitted to cancel the 
bond 120 days after sending a notice of cancellation by certified mail 
to the owner or operator and to the State Director. 40 CFR 258.74(c)(3) 
has a similar requirement for advance notice of cancellation of a 
letter of credit. The federal regulations already incorporate the 
amount of notice recommended by the state in their comment.
Letter of Credit (Sec.  267.143(d))
    The proposed regulations would allow you to use an irrevocable 
standby letter of credit, and a standby trust fund as specified in 
existing Sec.  264.143(d). We received no significant comment on this 
portion of the proposal and have incorporated this portion of the 
proposal into the final rule.
Closure Insurance (Sec.  267.143(e))
    Under proposed Sec.  267.143(e), we proposed to allow you to use 
insurance as a mechanism for demonstrating financial assurance for 
closure. The requirements of this section referenced the corresponding 
existing requirements in Sec.  264.143(e). We also requested comments 
on the conclusions of the EPA Inspector's General report about captive 
insurance, and on whether to require that insurers who provide 
financial assurance insurance policies must have a minimum rating from 
a rating agency.
    ASTSWMO objected to allowing insurance for closure, and made the 
following points: ``Closure insurance should not be allowed for 
facilities with standardized permits due to the uncertainties of 
insurance as an appropriate financial assurance mechanism in general 
and the potential problems associated with captive insurance in 
particular. If EPA does wish to allow closure insurance, the insurance 
policy must guarantee that funds will be available for closure.''
    In reviewing this comment, EPA contacted the commenter to seek 
clarification of some of the points raised. The commenter noted that 
closure insurance policies can present difficulties for permitting 
agencies because the regulations do not specify the language of the 
policies, but only the language of the certificate of insurance. The 
commenter noted that endorsements can require a careful review to 
ensure that they have not changed the terms of the policy in a way that 
would render it inconsistent with the regulatory requirements. Also, 
the commenter clarified that the concern of payment by policies 
included concern that insurers could become insolvent, as occurred with 
Reliance Insurance, and be unable to pay claims.
    Although EPA agrees that insurance policies can require a careful 
review, the rights and obligations under insurance policies issued to 
satisfy state or federal financial assurance requirements are 
controlled by those requirements. Thus, where a policy is issued to 
comply with RCRA financial assurance requirements set forth in statutes 
or regulations, those requirements will be read into the policy and the 
policy will be effectively amended to conform to the statute. Non-
conforming provisions are null and void. See, Holmes-Appleman on 
Insurance, Section 22.1 et seq., esp. pp. 365, 368, 379,380; Couch on 
Insurance, Third Edition, Sections 19:1, 19:5 and 19:11.
    The issues raised by the commenter transcend the standardized 
permit rule and could apply to insurance for other financial assurance 
obligations under parts 264 and 265. EPA did not propose or seek 
comment on an alternative that would disallow insurance as a financial 
assurance mechanism. As noted in the preamble to the proposed rule (66 
FR 52192 at 52198), we did not reopen the existing regulations to 
public comment, except as explicitly set forth under the proposed rule.
    Because of interest by ASTSWMO and other issues involving 
insurance, an EPA federal advisory committee, the Environmental 
Financial Advisory Board, is undertaking a review of insurance as a 
financial assurance mechanism for Subtitle C facilities; ASTSWMO has 
been a part of this review. EPA believes that the suitability of 
insurance as a financial assurance mechanism is best resolved for all 
Subtitle C facilities, rather than in a piecemeal fashion, following an 
opportunity to review any recommendations from the Environmental 
Financial Advisory Board. Since companies that may seek to obtain a 
standardized permit may already have an insurance policy for the 
facility, disallowance of insurance in the standardized permit would 
provide an disincentive to obtaining a standardized permit. States can, 
however, be more stringent than the federal requirement by prescribing 
policy language or disallowing insurance when they adopt this rule.
    We also agree with the later portion of the ASTSWMO comment that 
``the insurance policy must guarantee that funds will be available for 
closure.'' In the proposal, we had proposed that insurance as specified 
in 40 CFR 264.143(e) would be an allowable mechanism. 40 CFR 
264.143(e)(4) states ``The insurance policy must guarantee that funds 
will be available to close the facility whenever final closure occurs. 
The policy must also guarantee that once final closure begins, the 
insurer will be responsible for paying out funds, up to the amount of 
the policy, upon the direction of the Regional Administrator, to such 
party or parties as the Regional Administrator specifies.'' We believe 
that this language addresses the concern in the ASTSWMO comment 
regarding the need to guarantee that funds will be available for 
closure.
    On the issue of captive insurance, in addition to the comments from 
ASTSWMO, we received several comments both supporting and recommending 
against accepting captive insurance as a mechanism. In the proposed 
rule, we asked for information regarding captive insurance, but did not 
make any specific proposals. In this

[[Page 53439]]

final rulemaking, we are not determining whether or not to allow 
captive insurance as a financial assurance mechanism. EPA is continuing 
to analyze the information and comments it received on the proposed 
rule, and is preparing a report to Congress that was required by an EPA 
appropriations bill. While the focus of that report will be on 
insurance for municipal solid waste landfills, the analysis of 
financial assurance issues surrounding captive insurance may apply to 
both municipal solid waste and hazardous waste facilities.
    Finally, we had proposed requiring that insurance providers have a 
minimum rating from either Standard & Poor's, Moody's, or A. M. Best. 
Comments on this issue included support, objections to the cost of 
obtaining a rating for a captive insurer, and questions about the 
relationship between the rating of the parent insurance company and the 
rating of a subsidiary that would be writing environmental policies. 
The Agency is still evaluating these issues and the comments submitted; 
therefore, the Agency is not promulgating a final rule on a minimum 
rating of insurers at this time.
    Financial assurance.
Financial Test (Sec.  267.143(f)) and Corporate Guarantee (Sec.  
267.143(g))
    The proposed regulation in Sec.  267.143(f) would have allowed the 
use of a financial test by you or by a corporate guarantor, as is 
currently provided in Sec.  264.143(f). The test that EPA proposed 
differs from the test that is currently in effect in parts 264 and 265.
    The proposal included changes to the financial test that would make 
the test less available to firms more likely to enter bankruptcy. The 
test would do this by changing the financial test ratios to make the 
test less available to firms with large debts compared with their cash 
flow or net worth. However, the proposed rule allowed firms that pass 
the financial test to assure a higher level of obligations than the 
current RCRA Subtitle C financial test. Under the financial test in 40 
CFR parts 264 and 265, companies must have tangible net worth at least 
six times the amount of the obligations covered, and also of at least 
$10 million. Firms that pass the proposed test must also have $10 
million in tangible net worth. They can assure an amount of obligations 
up to $10 million less than their tangible net worth.
    Some commenters suggested that we should reconsider the financial 
test in light of recent corporate failures and financial scandals of 
Fortune 500 companies with audited financial statements, while other 
commenters argued that the regulations should make available all the 
mechanisms that are currently available to firms. For the reasons 
explained at proposal, the Agency continues to believe that the rules 
should contain a financial test, but are maintaining the approach 
included in the proposal-that is, continue to make available a 
mechanism that allows firms with a low probability of failure to self 
insure, and at the same time reduce the risk of the financial test by 
disallowing its use by companies that are more likely to enter 
bankruptcy. Some states may determine that they wish to be more 
stringent than this requirement and further restrict the availability 
of the financial test. This is allowable under RCRA.
    In the proposal, we also requested comments on not requiring 
companies that pass the financial test to provide a cost estimate. As 
noted above, based upon public comment, we have decided that we will 
still require cost estimates from such firms.
    The record keeping and reporting requirements of the proposed rule 
(Sec.  267.143(f)(2)(i)(C)) would only require a special report from 
the independent certified public accountant in instances where the 
Agency could not verify financial data in the chief financial officer's 
letter from the firm's financial report. The proposal was intended to 
reduce the reporting burden and the expense of obtaining a letter from 
an outside auditor for any user of the financial test whose CFO 
submitted information that could be verified from the user's audited 
financial statements. We received comments from states supporting and 
objecting to this change. The objection involved the difficulty for the 
regulatory agency in reviewing financial statements and determining 
whether data in the chief financial officer's letter were taken from 
the firm's financial report. EPA agrees that this may present some 
difficulties and is modifying the language of the CFO's letter to 
require the CFO to note whether the information in the letter is taken 
directly from the audited financial statement. If not, the regulation 
requires an outside auditor's report explaining how the information was 
derived. Because we continue to believe that the proposed approach, as 
modified, would reduce the reporting burden without significantly 
impacting the usefulness of the information provided, we have 
incorporated it in the final rule.
    The proposed regulation did not prescribe language for the chief 
financial officer's letter as we currently do under Sec.  264.151(f). 
Commenters advised us that prescribing the language of the Chief 
Financial Officer's letter would facilitate compliance checks by the 
state permitting agency. Therefore in the final rule, we are specifying 
language for the CFO letter. This language appears in Sec.  267.151(a).
    Because this rulemaking does not change the financial test in parts 
264 and 265, owners or operators who have both standardized permit 
facilities and facilities using the financial tests in parts 264 and 
265 may have questions about which chief financial officer's letter to 
use. For facilities with the standardized permit, the chief financial 
officer should use the letter in Sec.  267.151. This letter will 
require the enumeration of costs assured through financial tests in 
parts 264 and 265. For interim status or individually permitted 
facilities, the chief financial officer will continue to use the 
letters in Sec.  264.151.
    Situations may arise where an owner or operator has two types of 
units at a facility, one type subject to the financial assurance 
requirements of Part 267, and the second subject to the financial 
assurance requirements of Part 264 or Part 265, but cannot meet the 
applicable financial test for both types. For example, the owner or 
operator of a facility has units subject to an individual permit and 
provides financial assurance via the financial test in Sec.  
264.143(f). The owner or operator wants to add new units subject to a 
standardized permit, but does not qualify via the financial test in 
Sec.  267.143(f) for those new units. Such a person would have to use a 
third-party financial assurance mechanism under Sec.  267.143, to 
qualify for a standardized permit for the new units.
    Similarly, an owner or operator may have two or more facilities, 
with one set of facilities subject to a standardized permit with Part 
267 financial assurance, and another set subject to individual permits 
or operating in interim status with financial assurance via Part 264 or 
Part 265. The financial assurance requirement for the facilities are 
determined by their respective regulations. This is consistent with the 
situation under Parts 264 and 265. For example, an owner or operator 
may use a performance surety bond at the facility permitted under an 
individual permit that requires financial assurance consistent with 
Part 264, but may use a mechanism other than a bond consistent with 
part 265 at a facility operating under interim status.
Use of Multiple Mechanisms
    Proposed Sec.  267.143(h) would allow you to utilize a combination 
of

[[Page 53440]]

mechanisms at your facility. We received comments both supporting and 
objecting to this provision. The objection was that if an owner or 
operator could only cover part of the closure costs with the financial 
test, they should not be allowed to use the financial test for any of 
the costs, and instead should be required to use a third-party 
mechanism.
    Because the financial test in the standardized permit rule is a 
better predictor of bankruptcy than the test in Parts 264 and 265, the 
risk of a facility qualifying for the test and then entering bankruptcy 
is lower than with the Parts 264/265 tests. The test in the proposal 
and the final rule requires that the firm have at least $10 million 
more in tangible net worth than the amount assured through a financial 
test. Disallowing the use of the financial test in combination with a 
third-party mechanism could establish the situation where owners or 
operators each with two facilities and each with identical financial 
characteristics and total closure costs could have different amounts 
that could be covered by the financial test, based upon how the costs 
were distributed between their respective operations. For example, two 
companies could both have $12 million in tangible net worth and meet 
the other requirements of the financial test with identical financial 
statements. The first company has two facilities, one with $1.6 million 
in closure costs and the other with $1.4 million in closure costs. The 
second company has one facility with $2 million in closure costs, and 
another facility with $1 million in closure costs. If EPA were to 
disallow the use of the financial test in combination with other 
mechanisms, the first company could use the test for only $1.6 million 
of the closure costs, but the second could use it for $2 million.
    An all or nothing approach also could increase the incentive to 
underestimate closure costs, particularly for a facility with a closure 
cost estimate only slightly over the amount that could be covered by 
the test. The approach in the proposed and final rules is consistent 
with the regulations already adopted by EPA governing financial 
requirements for municipal solid waste landfills, and with an earlier 
proposal to revise the RCRA Subtitle C financial test, which is still 
under consideration (56 FR 30201, July 1, 1991), and with regulations 
governing third-party liability coverage. EPA determined that it should 
incorporate this flexibility into the final rule, but, as previously 
noted, under RCRA a state may adopt more stringent regulations.
    Under proposed Sec.  267.143(i), if you have multiple facilities 
with a standardized permit, you would be able to use a single mechanism 
for more than one of your facilities. This provides the same 
flexibility that owners or operators of facilities with individual 
permits or interim status facilities have under existing Sec. Sec.  
264.143 and 265.143. This flexibility is also included in the final 
rule.
    5. Post closure financial responsibility. Because the proposed 
standardized permit rule would only be available to facilities that can 
clean close, the proposed standardized permit regulation did not 
anticipate a need for post-closure cost estimates, or financial 
assurance for post-closure care. Similarly there is no need for 
mechanisms for combining financial assurance for closure and post-
closure care. Therefore, the final regulations in part 267 do not have 
provisions reflecting the existing requirements of Sec.  264.144-146. 
As noted in Sec.  267.111(c), however, if a unit at a standardized 
permit facility cannot be clean closed, then the owner/operator must 
apply for a permit as a landfill in accordance with 40 CFR part 270. 
The post closure financial responsibility regulations in Sec. Sec.  
264.144 and 145 would then apply.
    6. Liability Requirements. We proposed to require financial 
assurance for third party liability for sudden accidental occurrences. 
We proposed that you have and maintain liability coverage of at least 
$1 million per occurrence, with an annual aggregate of at least $2 
million exclusive of legal costs (Sec.  267.147(a)). These proposed 
requirements are the same as for facilities with individual permits, 
and apply to the facility or a group of facilities. Thus, if the owner 
or operator of facilities with individual permits had the required 
liability coverage for those facilities, then covering these facilities 
under the standardized permit would not increase the dollar amount of 
the liability coverage.
    The proposed mechanisms available for demonstrating financial 
assurance for third party liability were the same under the 
standardized permit rule as for units covered by individual permits. In 
the proposed rule, we arranged the mechanisms in the same order as they 
appear for closure, even though this is different from the order 
currently in Sec.  264.147. We requested comments on whether this makes 
the regulation easier to follow, or if we should organize proposed 
Sec.  267.147 in the same order as existing Sec.  264.147. The 
mechanisms for third party liability would be a trust fund (Sec.  
267.147(a)(1)), surety bond (Sec.  267.147(a)(2)), letter of credit 
(Sec.  267.147(a)(3)), insurance (Sec.  267.147(a)(4)), financial test 
(Sec.  267.147(a)(5)), or guarantee (Sec.  267.147(a)(6)). We would 
also allow the use of multiple mechanisms under proposed Sec.  
267.147(a)(7), as are allowed under existing Sec.  264.147(a)(6). In 
the case of reordering the mechanisms in Sec.  267.147 as they are in 
Sec.  267.143, the commenters agreed with this approach. On other 
aspects of the proposal, there were no adverse comments and the final 
rule has been finalized, as proposed, with respect to these aspects.
    In the proposal, we requested comments on whether pure captive 
insurance should be treated differently for third-party liability 
coverage, where coverage is based on the risk an event will occur, as 
compared to closure, where the risk is based on an event that will, in 
fact, occur. As previously noted, this rulemaking is not promulgating a 
decision on captive insurance.
    We proposed that the standardized permit would not be available for 
land disposal units such as surface impoundments, landfills, land 
treatment facilities, or disposal miscellaneous units. Therefore, 
requirements for land disposal units under existing Sec.  264.147(b) to 
maintain third party liability for non-sudden accidental occurrences 
would not be necessary for standardized permit units. The proposed 
regulation and the final regulation reserves Sec.  267.147(b).
    Because the proposed standardized permit was intended to rely upon 
limited interaction between the permittee and the permitting agency, we 
believed it would not be appropriate to include the provisions of 
existing Sec.  264.147(c) and (d). These provisions, respectively, 
allow the owner or operator to request a variance from the amounts 
required in Sec.  264.147(a), or allow the Regional Administrator to 
require a different amount. There is no corresponding provision in the 
proposed Sec.  264.147 and the corresponding paragraphs were reserved. 
As EPA received no adverse comment on excluding these provisions, the 
rule is finalized, as proposed.
    Along with the proposed changes to the financial test for closure, 
we had previously proposed changes to the financial test for liability 
coverage (56 FR 30201, July 1, 1991 and 59 FR 51523, October 12, 1994). 
The proposed changes to the financial test for liability coverage were 
included in the proposal for this regulation. EPA received no adverse 
comment on this test. As previously noted, we have promulgated the 
proposed financial test for closure and have also decided to promulgate 
the proposed financial test for liability here

[[Page 53441]]

as well. If a company is using the financial test for closure of its 
standardized permit units, and wishes to also use the financial test 
for third party liability coverage of its standardized permit units, it 
should use the chief financial officer's letter in Sec.  267.151(a). In 
Sec.  267.151(b) we have provided language for the chief financial 
officer's letter for companies that use the financial test only for 
third party liability for facilities with standardized permits.
    Finally, because the financial tests for facilities regulated under 
interim status and individual permits differ from the financial tests 
under the standardized permit rules, a question may arise on which 
chief financial officer's letter to use to demonstrate compliance with 
third-party liability requirements. Companies that use the financial 
test only for third-party liability (and not for closure), and who also 
have facilities using the financial test either for a facility with an 
individual permit or operating under interim status, should use the 
language for the chief financial officer's letter in 40 CFR 264.151(g). 
A company that qualifies for the financial test under the individual 
permit regulations will also qualify under the standardized permit 
regulations for liability coverage. As noted previously, firms that use 
the financial test to provide financial assurance for closure for 
standardized permit units and interim and individual permit units, 
should use the chief financial officer's letter in Sec.  267.151 for 
the standardized permit units, and the chief financial officer's letter 
in Sec.  264.151 for interim status and individual permit units.
    7. Other provisions of the financial requirements. We proposed that 
the requirements in existing Sec.  264.148 to notify the permitting 
authority in the event of a bankruptcy would apply also to the 
standardized permit (see proposed Sec.  267.148). We also referenced 
this requirement in proposed Sec.  267.140(c). There were no adverse 
comments on this portion on the proposal, and we have included this 
provision in the final rule.
    Under existing Sec.  264.149, if your facility is in a state where 
EPA administers the program, but the state imposes its own financial 
assurance mechanism, you may continue to use the state approved 
mechanism. There were only three states where we administered the 
program, and we did not expect that these states have their own 
mechanisms. Therefore, we did not include an analogous provision in the 
proposal. We did not receive adverse comment on this omission. For the 
reasons discussed in the preamble to the proposal, we did not include 
the analogous provision in the final rule, and have reserved Sec.  
267.149 in this final rulemaking.
    In the financial responsibility regulations covering facilities 
with permits under part 264, States can assume responsibility for an 
owner or operator's compliance with existing Sec. Sec.  264.143 and 147 
(Sec.  264.150). We included a similar provision (Sec.  267.150) in the 
proposal, but requested comment on whether such a provision is 
appropriate for standardized permits. We asked if states did in fact 
undertake such responsibilities, and asked if they would do so for 
holders of a standardized permit. Only one state commented on this 
provision and noted that it was not used. While we do not believe that 
this provision would have much use, we also see no harm in retaining 
this provision to provide flexibility should the circumstance warrant 
it. Therefore, we have included this provision in the final rule.
    The proposed language of Sec. Sec.  267.143 and 267.147 references 
existing Sec.  264.151, and would require the use of the language in 
existing Sec.  264.151. Section 264.151 contains the exact wording of 
the instruments used to demonstrate financial assurance. In light of 
the substantial amount of text in existing Sec.  264.151, we decided 
not to propose the creation of a Sec.  267.151. This was similar to our 
decision not to include the instrument language in the current interim 
status standards in part 265. Because we received comments that we 
should provide standard language for the chief financial officer's 
letter as part of the financial test, we have provided that language in 
Sec.  267.151. If the Agency promulgates changes to the financial test 
in Sec. Sec.  264 and 265 for holders of individual permits that mirror 
the requirements in Sec.  267, EPA may eliminate the language in Sec.  
267.151 and simply require the language in a revised Sec.  264.151 in a 
future rulemaking.

J. Subpart I--Use and Management of Containers

    The requirements of part 267 subpart I are finalized, as proposed, 
and apply to the storage and/or non-thermal treatment of hazardous 
wastes in containers. No significant comments were received on this 
subpart, which includes:

1. What Standards Apply to the Containers? (Sec.  267.171)
2. What are the Inspection Requirements? (Sec.  267.172)
3. What Standards Apply to the Container Storage Area? (Sec.  267.173)
4. What Special Requirements Do I Need to Meet for Ignitible or 
Reactive Waste? (Sec.  267.174)
5. What Special Requirements Do I Need to Meet for Incompatible Wastes? 
(Sec.  267.175)
6. What Must I Do When I Want to Stop Using the Containers? (Sec.  
267.176 )
7. What Air Emission Standards Apply? (Sec.  267.177)

    One comment regarding residues in empty containers, addressed the 
applicability language in Sec.  267.170 which refers to Sec.  267.1(b), 
which in turn, refers to part 261 subpart A. The commenter suggested 
that instead of indirectly referencing Sec.  261.7, we add ``part 267'' 
to the list of cites in Sec.  261.7 as a more direct method of 
addressing residues remaining in empty containers. We agree with the 
commenter, and will finalize the language in Sec.  267.170 as proposed, 
and will add the requested language to Sec.  261.7.

K. Subpart J--Tank Systems

1. Does This Subpart Apply to Me?
    The applicability language of Sec.  267.190 is finalized, as 
proposed. The final rule applies to above-ground and on-ground tanks, 
and excludes underground and in-ground tanks. Also excluded, are tanks 
with underground ancillary equipment (e.g., piping).
    We received several comments on the applicability of the 
standardized permit rule to tanks and tank systems. Most commenters 
believed that underground and in-ground tanks should be excluded from 
eligibility, noting that underground and in-ground tanks are more 
difficult to inspect and are difficult to perform integrity 
verification, noting that such tanks pose a risk of corrosion, damage, 
and leakage. Some commenters also argued that underground piping should 
not be allowed under a standardized permit, for the same reasons 
underground and in-ground tanks should be excluded. However, one 
commenter suggested that the final rule should allow underground tanks 
and/or piping to be eligible for the standardized permit, and that 
States should be given the discretion to impose individual permits when 
deemed necessary. The commenter also noted that certain wastes are more 
safely stored underground. Another commenter also supported allowing 
underground and in-ground tanks to be eligible for the standardized 
permit, suggesting the Agency incorporate similar provisions to Sec.  
264.192.
    Based on the comments received and the Agency's experience in 
implementing the hazardous waste rules, we agree with those commenters

[[Page 53442]]

that argued that underground and in-ground tanks, and underground 
piping are inherently harder to inspect, and may be more susceptible to 
corrosion and leakage. The standardized permit is designed to be a 
streamlined approach to permitting, and therefore we believe that more 
complex tank systems might be better served under an individual permit. 
Furthermore, units under the standardized permit would be required to 
be clean closed, and a properly designed, constructed, and operated 
tank system with secondary containment should always be able to clean 
close with minimal unforseen contingencies. Therefore, the final rule 
does not allow underground and in-ground tanks, and tanks with 
underground piping to be eligible for a standardized permit.
2. What Are the Required Design and Construction Standards for New Tank 
Systems or Components?
    The requirements of Sec.  267.191 are finalized, as proposed. We 
did receive a comment about the Agency not proposing design and 
construction standards for facilities with underground tank systems. 
The commenter believed that there was no reason to exclude underground 
piping associated with above-ground tanks provided the integrity of the 
underground piping is verified and documented at regular intervals. As 
we stated previously, underground tank systems, and above ground /on-
ground tanks with underground piping are not eligible for a 
standardized permit. The streamlined nature of the standardized permit 
process does not lend itself to requiring periodic verification and 
documentation of underground piping integrity.
3. What Handling and Inspection Procedures Must I Follow During 
Installation of New Tank Systems?
    The requirements of Sec.  267.192 are finalized as proposed. No 
significant comments were received on this section.
4. What Testing Must I Do for New Tank Systems?
    The requirements of Sec.  267.193 are finalized as proposed, except 
that the title of the section is changed to read ``What Testing Must I 
do for New Tank Systems?'' One commenter requested this change to 
improve the clarity of the section, and we agree.
5. What Installation Requirements Must I Follow?
    The tank installation requirements of Sec.  267.194 are finalized 
as proposed. No significant comments were received on this section.
6. What Are the Secondary Containment Requirements?
    We are finalizing Sec.  267.195 with some changes. In our proposal, 
we allowed tanks that could not detect a leak or spill within 24 hours 
to be eligible for the standardized permit. However, instead of 
providing a demonstration to the Director (as is required in 40 CFR 
264.193(c)(3)), we discussed in the preamble that a facility would 
self-certify and document that a leak or spill cannot be detected and/
or removed within 24 hours, and keep the certification on-site.
    One commenter noted that the proposed rule included this provision, 
but was not referenced in subsequent sections about information that 
must be kept at the facility, or certifications that must be submitted. 
The standardized permit rule is intended for units (tanks, containers, 
containment buildings) that are easily designed and operated, and with 
minimal contingencies. More complex situations involving tank systems 
where leaks are difficult to detect, are better served under an 
individual permit. Furthermore, such demonstrations only serve to 
lengthen the overall permitting process, detracting from the intent of 
the rule to streamline the process as much as possible. Therefore, in 
the final rule, the provisions of Sec.  267.195 will require that a 
facility's secondary containment system be able to detect and/or remove 
a leak or spill within 24 hours. The rule will not provide a self-
certification provision for systems that cannot detect and/or remove 
leaks or spills within 24 hours. These tank systems will need an 
individual permit.
7. What Are the Required Devices for Secondary Containment and What Are 
Their Design, Operating, and Installation Requirements?
    The final requirements of Sec.  267.196 are modified from what was 
proposed. Specifically, although no significant comments were received 
on this section, we are removing the reference to ``vaults'' from Sec.  
267.196. Vaults are typically associated with underground tanks, and 
underground tanks are not eligible for a standardized permit.
8. What Are the Requirements for Ancillary Equipment?
    The requirements of Sec.  267.197 are finalized as proposed with 
one minor clarification to the proposed language. That change adds the 
words ``Above ground'' at the start of Sec.  267.197(a), making the 
language consistent with the language in Sec.  264.193(f)(1). No 
significant comments were received on this section.
9. The Following Sections of This Subpart are Finalized as Proposed, 
Because no Significant Comments Were Received.
a. What are the general operating requirements for my tank system? 
(Sec.  267.198)
b. What inspection requirements must I meet? (Sec.  267.199)
c. What must I do in case of a leak or spill? (Sec.  267.200)
d. What must I do when I stop operating the tank system? (Sec.  
267.201)
e. What special requirements must I meet for ignitable or reactive 
wastes? (Sec.  267.202)
f. What special requirements must I meet for incompatible wastes? 
(Sec.  267.203)
g. What air emission standards apply? (Sec.  267.204)

L. Subpart DD--Containment Buildings

    No comments were received on Subpart DD of Part 267, therefore 
Sec. Sec.  267.1100 through 267.1108 are finalized as proposed.

V. Section by Section Analysis and Response to Comments for Part 270--
EPA Administered Permit Programs: The Hazardous Waste Permit Program

    This part of the RCRA hazardous waste regulations contains specific 
requirements for permit applications, permit conditions, changes to 
permits, expirations and continuation of permits, interim status, and 
special forms of permits.

A. Specific Changes to Part 270

1. Purpose and Scope.
    Section 270.1 has been finalized with changes to what facilities 
are eligible for a standardized permit, as discussed previously. We are 
also using the following language ``Treatment, storage, and disposal 
facilities (TSDs) that are otherwise subject to permitting under RCRA 
and that generate hazardous waste * * *'' The change was intended to 
further clarify the types of facilities that may be eligible for the 
standardized permit. No significant comments were received on this 
section.
2. Definitions
    The proposed definitions at Sec.  270.2 for permit and standardized 
permit are finalized as proposed. No significant comments were received 
on this section.

[[Page 53443]]

3. Permit Applications
    The requirements of Sec.  270.10(a) are finalized as proposed.No 
significant comments were received on this section.
4. Permit Re-Application
    The requirements of Sec.  270.10(h) are finalized as proposed. No 
significant comments were received on this section.
5. Transfer of Permits
    The requirements of Sec.  270.40 are changed to indicate how the 
standardized permit can be modified to reflect a change in ownership. 
The final rule adds to Sec.  270.40 a reference to Sec.  124.213 
(routine changes with prior approval). Comments on this issue are 
discussed in the preamble at Section III.D--Maintaining a Standardized 
Permit. With this change, transfer of permits would be a routine change 
with prior approval of the Director.
6. Modification or Revocation and Reissuance of Permits
    The requirements of Sec.  270.41 are finalized as proposed. 
Comments on this section were discussed previously in the preamble at 
Section III.A.2.
7. Continuation of Expiring Permits
    One commenter noted that in cases where an expiring standardized 
permit holder is informed that he/she is no longer eligible to continue 
operating under a standardized permit, the expiring permit holder only 
has 60 days to submit a part B permit application. Sixty days, the 
commenter noted, would not be sufficient time to submit the needed 
materials, and suggests 120 days to submit the information, just as 
interim status facilities have 120 days to submit their Part B 
information. We disagree with the commenter. As noted previously, while 
the permit application submitted to EPA does not need to contain all 
the information contained in the Part B permit application, that 
information must still be kept on-site at the facility and available 
for inspection. Therefore, we believe that 60 days should be adequate 
time to package and submit the Part B application.
8. Standardized Permits
    The language at Sec.  270.67 is finalized as proposed with a minor 
modification. The applicability of standardized permits has already 
been discussed previously in this preamble. The modification to this 
section is to the reference to subpart I of part 270. The part 270 
requirements formerly in proposed Subpart I are finalized as part 270 
subpart J. Also, the term ``TSD'' is added, for reasons described 
previously for Sec.  270.1(b).

B. RCRA Standardized Permits for Storage and Treatment Units

    This part of the preamble discusses the new part 270 subpart J 
requirements for RCRA Standardized Permits for Storage and Treatment 
Units, originally proposed as part 270 subpart I.
1. General Information About Standardized Permits
a. What Is a RCRA Standardized Permit?
    The language in Sec.  270.250 is finalized as proposed. No 
significant comments were received on this section
b. Who Is Eligible for a Standardized Permit?
    The language in Sec.  270.255 is finalized with changes to what 
facilities are eligible for the standardized permit. Eligibility was 
discussed earlier in this preamble in Section II.D.
c. What Requirements of Part 270 Apply to a Standardized Permit?
    The language of Sec.  270.260 is finalized as proposed. No 
significant comments were received on this section.
2. Applying for a Standardized Permit
a. How Do I Apply for a Standardized Permit?
    Applying for a standardized permit is discussed earlier in this 
preamble (see Section III.A. for further discussion). The language of 
Sec.  270.270 is finalized as proposed. No significant comments were 
received on this section.
b. What Information Must I Submit to the Permitting Agency To Support 
My Standardized Permit?
    Section 270.275 lists the information that must be submitted to the 
permitting agency in support of the standardized permit. The final rule 
adds additional items to this section. These items are the closure 
plan, documentation demonstrating financial assurance for closure, and, 
for eligible facilities receiving wastes from off-site, a waste 
analysis plan, and documentation that the off-site and the receiving 
facility are under the same ownership. We received comments on the need 
for submitting a closure plan with the Notice of Intent, rather than 
180 days prior to closure. (See preamble section IV.H.3.) The closure 
cost estimates and financial assurance for closure requirements are 
further discussed in the preamble in section IV.I. One commenter 
suggested adding to Sec.  270.275 language providing for an optional 
submission of information detailing suggested specifications for 
supplemental terms and conditions, if any, that the owner or operator 
of the facility, would like the Director to consider including in their 
supplemental portion of the standardized permit. A voluntary submission 
of information was also discussed in the proposed preamble of the 
proposed rule (see 66 FR 52202, section IV.A.1.). We chose not to 
include applicable language in the regulatory section, because there is 
nothing that would prevent the owner/operator of the facility from 
suggesting such supplemental terms and conditions in their submission.
c. What Are the Certification Requirements?
    The signed certification, pursuant to Sec.  270.280, documents the 
facility owner/operator's compliance with the requirements of part 267. 
The signed certification is based upon a compliance audit performed 
either by or for the facility owner/operator.
    Proposed Sec.  270.280(a)(ii) is being changed to reflect our 
intent that a facility (in the case of an existing facility) be in 
compliance at the time they submit their Notice of Intent, and that if 
a facility is not in compliance with part 267, based upon their audit 
and certifications, it should not submit its Notice of Intent until it 
comes into compliance, and in the case of new facilities, that they be 
designed and constructed to comply. The new language will read: ``Has 
been designed, and will be constructed and operated to comply with all 
applicable requirements of 40 CFR part 267, and will continue to comply 
until expiration of the permit.'' The facility's audit may either be a 
self or third party audit. (See section III.A.1.b. of this preamble for 
a discussion on compliance audit comments.)
3. Conducting Compliance Audits
    The following section provides information to assist owners/
operators who are seeking a standardized permit to conduct compliance 
audits, as required by part 270.275(f). Compliance audits may be 
conducted by either the applicant or a third party.
    a. Section 270.275(f) requires the standardized permit applicant to 
submit to the permitting authority an audit of the facility's 
compliance status with 40 CFR part 267. When conducting this audit, the 
auditor may consult the Protocol for Conducting Environmental 
Compliance Audits of Treatment, Storage and Disposal Facilities under 
the Resource Conservation and Recovery Act, EPA-305-B-98-006 (December 
1998). You will find that protocol at the following web address: http://www.epa.gov/compliance/incentives/auditing/protocol.html. In

[[Page 53444]]

addition, the auditor may consult Procedures for Conducting Compliance 
Audit Required by 40 CFR 270.275(f). This document is located in the 
Docket, as well as on the web site described in paragraph (b) below.
    b. The audit must address all the requirements of part 267 that 
apply to the facility. The auditor may develop a site specific audit 
protocol or inspection checklist to be used while conducting the audit. 
Sample audit checklists can be found at the following web address: 
http://www.epa.gov/epaoswer/hazwaste/permit/epmt/toolperm.htm.
    c. The person conducting the audit should of course have 
appropriate training for conducting the audit. The auditor should have 
a working process knowledge of the facility or of another facility with 
similar operations, and should have a working knowledge of the proposed 
40 CFR part 267 requirements that apply to the facility.
    d. The results of the audit (i.e., an audit report) must be 
prepared documenting compliance with the applicable requirements of 
part 267. The audit report must be signed and certified by the auditor 
as accurate. The final rule adds language to Sec.  270.280(c) 
clarifying that the audit (audit report) must be signed and certified 
by the auditor as accurate prior to submitting to the Director with the 
Notice of Intent.
4. What Information Must Be Kept at the Facility
    The informational requirements of Sec.  270.290 through Sec.  
270.320 are finalized as proposed, except for the portions of Sec.  
270.290 noted below.
    a. Regarding proposed Sec.  270.290(d), because we are not allowing 
a waiver for security provisions, the last phrase of proposed Sec.  
270.290(d) regarding the waiver is omitted in the final rule.
    b. Because we are requiring a closure plan to be submitted with the 
Notice of Intent, we are omitting proposed Sec.  270.290(m).
    One commenter noted that, while we included requirements for 
information that must be kept on site for tanks and containers, we did 
not include a similar requirement for containment buildings. The 
requirements for what information must be kept on site for tanks and 
containers were based on the previously existing part 270 part B 
requirements for these units. When the requirements for containment 
buildings were finalized (57 FR 37265, August 18, 1992), a section 
detailing the part B informational requirements for those units was not 
provided. Therefore, in the standardized permit rule, a section in part 
270 on containment buildings was not provided. In deciding what 
information should be kept on site, the facility should maintain 
information related to the part 267 containment building requirements.

VI. State Authorization

A. Applicability of the Rule in Authorized States

    Under section 3006 of RCRA, EPA may authorize qualified states to 
administer their own hazardous waste programs in lieu of the federal 
program within the state. Following authorization, EPA retains 
enforcement authority under sections 3008, 3013, and 7003 of RCRA, 
although authorized states have primary enforcement responsibility. The 
standards and requirements for state authorization are found at 40 CFR 
part 271.
    Prior to enactment of the Hazardous and Solid Waste Amendments of 
1984 (HSWA), a state with final RCRA authorization administered its 
hazardous waste program entirely in lieu of EPA administering the 
federal program in that state. The federal requirements no longer 
applied in the authorized state, and EPA could not issue permits for 
any facilities in that state, since only the state was authorized to 
issue RCRA permits. When new, more stringent federal requirements were 
promulgated, the state was obligated to enact equivalent authorities 
within specified time frames. However, the new federal requirements did 
not take effect in an authorized state until the state adopted the 
federal requirements as state law.
    In contrast, under RCRA section 3006(g) (42 U.S.C. 6926(g)), which 
was added by HSWA, new requirements and prohibitions imposed under HSWA 
authority take effect in authorized states at the same time that they 
take effect in unauthorized states. EPA is directed by the statute to 
implement these requirements and prohibitions in authorized states, 
including the issuance of permits, until the state is granted 
authorization to do so. While states must still adopt HSWA related 
provisions as state law to retain final authorization, EPA implements 
the HSWA provisions in authorized states until the states do so.
    Authorized states are required to modify their programs only when 
EPA enacts federal requirements that are more stringent or broader in 
scope than existing federal requirements. RCRA section 3009 allows the 
states to impose standards more stringent than those in the federal 
program (see also 40 CFR 271.1). Therefore, authorized states may, but 
are not required to, adopt federal regulations, both HSWA and non-HSWA, 
that are considered less stringent than previous federal regulations.

B. Effect of State Authorization

    Today's rule finalizes regulations that are not promulgated under 
the authority of HSWA. Thus, the standards finalized today are 
applicable on the effective date only in those states that do not have 
final authorization. Moreover, authorized states are required to modify 
their program only when EPA promulgates Federal regulations that are 
more stringent or broader in scope than the authorized state 
regulations. For those changes that are less stringent or reduce the 
scope of the Federal program, states are not required to modify their 
program. This is a result of section 3009 of RCRA, which allows states 
to impose more stringent regulations than the Federal program. Today's 
rule however, is considered to be neither more nor less stringent than 
the current standards. Therefore, authorized states are not required to 
modify their programs to adopt regulations consistent with and 
equivalent to today's final standards.
    Because the Agency believes that the changes promulgated today will 
make the permitting program more efficient and save time, EPA strongly 
encourages States to adopt and seek authorization for this rule as soon 
as possible. EPA also encourages States to begin implementing this rule 
as soon as it is allowable under State law, while the RCRA 
authorization process proceeds.\5\ Note that the requirements in 
today's rule are not less stringent than the previous federal 
standards.
---------------------------------------------------------------------------

    \5\ EPA encourages States to take this approach for federal 
requirements where rapid implementation is important. For example, 
EPA encouraged States to implement State Corrective Action 
Management Unit Regulations, once adopted as a matter of State law, 
prior to authorization (see 58 FR 8677, February 16, 1993).
---------------------------------------------------------------------------

    As in the case of individual permit procedures, a State that 
chooses to adopt and request authorization for issuing standardized 
permits must adopt permitting procedures equivalent, but not 
necessarily identical to those promulgated by EPA. The authorization 
regulations in 40 CFR 271.14 list several provisions of the permitting 
regulations which EPA determined are necessary for an equivalent 
permitting program. States would need to adopt a similar scope of legal 
authorities for issuing standardized permits as for individual permits.

[[Page 53445]]

VII. Regulatory Assessments

A. Executive Order 12866: Regulatory Planning and Review

    Under Executive Order 12866, [58 FR 51735 (October 4, 1993)] we 
must determine whether a regulatory action is ``significant'' and 
therefore subject to OMB review and the requirements of the Executive 
Order. The Order defines ``significant regulatory action'' as one that 
is likely to result in a rule that may:
    (1) Have an annual effect on the economy of $100 million or more or 
adversely affect in a material way the economy, a sector of the 
economy, productivity, competition, jobs, the environment, public 
health or safety, or State, local, or tribal governments or 
communities;
    (2) Create a serious inconsistency or otherwise interfere with an 
action taken or planned by another agency;
    (3) Materially alter the budgetary impact of entitlements, grants, 
user fees, or loan programs or the rights and obligations of recipients 
thereof; or
    (4) Raise novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles set forth in 
the Executive Order.
    Pursuant to the terms of Executive Order 12866, OMB has determined 
that this proposed rule is a ``significant regulatory action'' because 
it raises novel legal or policy issues. As such, we submitted this 
action to OMB for review before publishing it in the Federal Register. 
Changes made in response to OMB suggestions or recommendations are 
documented in the public record in support of this final rule.
1. Assessment of Potential Costs and Benefits
    For regulations that are projected to have significant economic 
impacts, agencies are required to conduct a ``Regulatory Impact 
Assessment'' of potential costs and benefits of the regulation. 
Although OMB has not designated this rule as economically significant, 
we have completed an economic analysis of it (available to the public 
from the EPA docket at http://www.epa.gov/edocket), the results of 
which we summarize below.
    a. Description of entities to which this rule applies. This rule 
potentially applies to approximately 870 to 1,130 existing private 
sector and Federal facilities which non-thermally treat and/or store 
RCRA hazardous waste in tanks, containers, and containment buildings 
either ``on-site'' (i.e., at the waste generator site), or at ``off-
site'' facilities that receive waste from off-site, provided that the 
company/institution is under the same ownership. Eligible facilities 
may voluntarily participate in the RCRA standardized permit program. We 
designed the final rule to reduce the paperwork reporting burden for 
eligible facilities, as well as to reduce EPA and state administrative 
review time for these permit activities. Eligible facilities are a mix 
of small, medium and large facilities.
    b. Description of potential impacts of this rule. The RCRA 
standardized permit rule is designed to streamline the regulatory 
burden to EPA/states, as well as to private sector and Federal 
facilities covered by the rule, by reducing the amount of information 
collected, submitted and reviewed for RCRA permit actions (i.e., new 
RCRA permit applications, RCRA permit modifications, and RCRA permit 
renewals). Our economic analysis presents monetary estimates of the 
future average annual impact expected for five potential impact 
categories: (1) Paperwork burden reduction, (2) benefits and costs 
associated with changes to closure financial assurance (three-year pay-
in period, financial ratio test, and independent financial audit 
report), (3) cost for facility certification audit, (4) improvement in 
financial return on waste management capital assets and investments, 
and (5) potential reduction in state hazardous waste fees paid by 
eligible facilities for RCRA permitting.
    Based on our economic analysis, we estimate potential average 
annual cost savings to between 870 to 1,130 eligible facilities of $100 
to $20,800 per permit action (i.e., between 2 to 480 paperwork burden 
hours reduction per permit action), which represents a 4% to 40% 
reduction in burden hours compared to the conventional RCRA permit 
process. The extent of reduction depends on the type of permit action 
(i.e. new or interim status permits, conversion of existing permits, 
permit renewals, or permit modifications), and the type of eligible 
waste management unit (i.e. tank, container, or containment building). 
We estimate an average of 55% of annual permit actions will involve 
container systems, 43% will involve tank systems (although some small 
fraction of tanks may be ineligible in-ground and under-ground tanks), 
and 2% containment buildings. Aggregated over a future 30-year average 
annual 166 to 202 RCRA standardized permit actions (11% of which are 
expected to consist of conversion of existing permits, 61% of interim 
status and new facility permit applications, 18% modification permit 
applications, and 10% permit renewal applications upon expiration), 
produces an expected national paperwork cost savings benefit of $1.3 
million to $3.4 million annually. This annual savings consists of 35% 
to 94% of benefits to eligible facilities, and 6% to 65% of benefits to 
EPA/state permit authorities (numerical ranges reflect two alternative 
estimation methods). Potential cost savings benefits are incremental to 
the average annual cost associated with the current (conventional) RCRA 
permitting process.
    In addition to paperwork burden savings, our economic analysis also 
estimates $0.01 million to $0.12 million in average annual potential 
improvement in financial return to eligible hazardous waste management 
capital assets and investments (i.e. tanks, containers, and containment 
buildings), from expediting by 2.5 to 28 months per permit action, the 
time required for the RCRA permitting process. We also estimate a 
potential net annual cost of $0.03 million to $0.04 million associated 
with changes to closure financial assurance, and potential annual costs 
of $0.005 million (if self-audit) to $2.6 million (if third-party 
audit) for the certification audit. Taking both benefits and added 
costs into consideration, we estimate the net annual economic impact of 
the rule at $2.8 to $3.5 million in potential annual paperwork burden 
cost savings. In addition, we estimate a potential reduction of $7.2 to 
$8.8 million per year in hazardous waste permitting fees paid by 
eligible facilities to state governments, which represents a ``transfer 
payment'' impact, rather than a real resource ``economic impact,'' to 
avoid double-counting state government paperwork burden impacts in our 
analysis. This does not necessarily translate into a net revenue loss 
to state governments, as states may beneficially reallocate these 
annual administrative resources to other revenue-generating activities. 
From the perspective of eligible facilities, the potential reduction in 
state fees added to the net reduction in annual costs to facilities 
associated with RCRA hazardous waste permits, provides a potential 
annual regulatory relief to eligible facilities of $10.0 million to 
$12.3 million per year.
    These impact estimates represent hypothetical adoption of this rule 
by all state governments. However, the net benefits of the rule may be 
less than estimated because not all states may act immediately to 
change their state laws in order to adopt the standardized permit. Such 
an assumption is unlikely to occur in practice because (1) it will take 
states some time to change their laws, and (2) some states may choose 
not to adopt the EPA rule. For example, five states (AR, GA, MI, TN, 
WA) oppose offsite facility eligibility based

[[Page 53446]]

on state government comments to the October 2001 proposed rule. These 
five states accounted for 64 (11%) of the 595 offsite facility universe 
in the 2001 RCRA Biennial Report count of waste management facilities 
(i.e. facilities which received RCRA hazardous waste shipments from 
offsite). If these five states do not adopt the off-site portion of 
this voluntary rule, it will result in an 11% smaller net benefit 
estimate for this final rule.

B. Paperwork Reduction Act

    The Office of Management and Budget (OMB) has approved the 
information collection requirements contained in this rule under the 
provisions of the Paperwork Reduction Act, 44 U.S.C. 3501 et seq. and 
has assigned OMB control number 2050-0182.
    Section 270.275 requires that applicants for a standardized permit 
submit to the permitting agency a Notice of Intent that will be used as 
the basis of the standardized permit application. This information 
includes:
    The Part A permit application required by Sec.  270.13;
    A summary of the pre-application public meeting and other materials 
required by Sec.  124.31;
    Documentation of compliance with the location standards of 
Sec. Sec.  267.18 and 270.14(b)(11);
    Information that allows the Director to carry out his obligations 
under other Federal laws required in Sec.  270.3;
    A closure plan as described in Sec.  267.112;
    Solid waste management unit information required by Sec.  
270.14(d);
    For facilities managing wastes generated off-site, a copy of the 
waste analysis plan;
    For facilities managing wastes generated off-site, documentation 
showing that the waste generator and the receiving facility are under 
the same ownership;
    A signed certification of the facility's compliance with part 267, 
as specified at Section. 270.280 and an audit report of the facility's 
current compliance status; and;
    The most recent closure cost estimate and a copy of the 
documentation required to demonstrate financial responsibility.
    EPA needs this information to comprehensively evaluate the 
potential risk posed by facilities seeking permits. This information 
aids EPA in meeting its goal of ascertaining and minimizing risks to 
human health and the environment from hazardous waste management 
facilities.
    In addition, facilities that store or treat hazardous waste under a 
standardized permit must keep at their facilities general types of 
information (Sec.  267.290), as well as unit-specific information for 
containers (Sec.  267 Subpart I), tanks (Sec.  267 Subpart J), and 
containment buildings (Sec.  267 Subpart DD), equipment subject to part 
264, subpart BB (Sec.  270.310), and tanks, containers and containment 
buildings subject to part 264, subpart CC (Sec.  270.315). EPA 
anticipates that the owner or operator will use this information to 
ensure that tanks, containers, containment buildings, and other 
equipment are in good condition, that operating requirements are being 
satisfied, and to prevent placing in proximity wastes that are 
incompatible with other wastes that are likely to ignite or explode. 
These requirements contribute to EPA's goal of insuring that hazardous 
waste management facilities are operated in a manner fully protective 
of human health and the environment. Information collection 
requirements in the standardized permit rule are authorized by sections 
2002 and 3007 of RCRA, as amended. In particular, section 2002 gives 
the Administrator the authority to promulgate such regulations as are 
necessary to carry out the functions of this subchapter. Section 3007 
gives EPA the authority to compel anyone who generates, stores, treats, 
transports, disposes of or otherwise handles or has handled hazardous 
wastes to ``furnish information related to such wastes'' and make such 
information available to the government for ``the purposes of * * * 
enforcing the provisions of this chapter.'' EPA believes the 
information collection requirements in this rule are consistent with 
the Agency's responsibility to protect human health and the 
environment.
    Section 3007(b) of RCRA and 40 CFR part 2, subpart B, which define 
EPA's general policy on public disclosure of information, contain 
provisions for confidentiality. However, the Agency does not anticipate 
that businesses will assert a claim of confidentiality covering all or 
part of the information that would be requested pursuant to the 
proposed information collection requirements. If such a claim were 
asserted, EPA must and will treat the information in accordance with 
the regulations cited above. EPA also will assure that this information 
collection complies with the Privacy Act of 1974 and OMB Circular 108. 
Further, no questions of a sensitive nature are included in the 
proposed information collection requirements.
    EPA estimates that a future 3-year average annual 175 (permitted, 
interim status, and new) on-site captive TSDFs per year will apply for 
a RCRA standardized permit in the years after its implementation (not 
counting a small additional amount of eligible federal facilities which 
are excluded from ICRs). The Agency has not estimated the burden for 
eligible off-site facilities. In the ICR, EPA estimates average annual 
respondent burden to be about 14,400 hours at an annual cost of $1.42 
million, and average annual agency (EPA/state) burden to be about 
11,200 hours at an annual cost of $0.58 million (which on a combined 
bases totals 25,600 hours/year at $2.0 million/year). Assuming each 
eligible TSDF responds once annually (i.e. process a RCRA permit 
action), the average burden per response would be 82 hours. It is 
important to note that these ICR burden estimates are absolute 
magnitudes, not incremental; i.e. these estimates do not net-out the 
baseline burden of the existing conventional RCRA permitting process, 
as was done in the economic analysis summarized a few sections above.
    Burden means the total time, effort, or financial resources 
expended by persons to generate, maintain, retain, or disclose or 
provide information to or for a Federal agency. This includes the time 
needed to review instructions; develop, acquire, install, and utilize 
technology and systems for the purposes of collecting, validating, and 
verifying information, processing and maintaining information, and 
disclosing and providing information; adjust the existing ways to 
comply with any previously applicable instructions and requirements; 
train personnel to be able to respond to a collection of information; 
search data sources; complete and review the collection of information; 
and transmit or otherwise disclose the information.
    An agency may not conduct or sponsor, and a person is not required 
to respond to a collection of information unless it displays a 
currently valid OMB control number. The OMB control numbers for EPA's 
regulations in 40 CFR are listed in 40 CFR part 9. In addition, EPA is 
amending the table in 40 CFR part 9 of currently approved OMB control 
numbers for various regulations to list the regulatory citations for 
the information requirements contained in this final rule.

C. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) generally requires an agency 
to prepare a regulatory flexibility analysis of any rule subject to 
notice and comment rulemaking requirements under the Administrative 
Procedure Act or any other statute unless the agency certifies

[[Page 53447]]

that the rule will not have a significant economic impact on a 
substantial number of small entities. Small entities include small 
businesses, small organizations, and small governmental jurisdictions.
    For purposes of assessing the impacts of today's rule on small 
entities, small entity is defined as: (1) A small business as defined 
by the Small Business Administration's (SBA) regulations at 13 CFR 
121.201, (2) a small governmental jurisdiction that is a government of 
a city, county, town, school district or special district with a 
population of less than 50,000; and (3) a small organization that is 
any not-for-profit enterprise which is independently owned and operated 
and is not dominant in its field.
    After considering the economic impacts of today's final rule on 
small entities, I certify that this action will not have a significant 
economic impact on a substantial number of small entities. In 
determining whether a rule has a significant economic impact on a 
substantial number of small entities, the impact of concern is any 
significant adverse economic impact on small entities, since the 
primary purpose of the regulatory flexibility analyses is to identify 
and address regulatory alternatives ``which minimize any significant 
economic impact of the rule on small entities.'' 5 U.S.C. 603 and 604. 
Thus, an agency may certify that a rule will not have a significant 
economic impact on a substantial number of small entities if the rule 
relieves regulatory burden, or otherwise has a positive economic effect 
on all of the small entities subject to the rule. The final rule is 
expected to provide net annual benefits (in the form of administrative 
paperwork burden reduction cost savings) from the voluntary 
participation by eligible facilities in the private sector. We have 
therefore concluded that today's final rule will relieve regulatory 
burden for all small entities eligible for the rule.

D. Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public 
Law 104-4, establishes requirements for Federal Agencies to assess the 
effects of their regulatory actions on State, local and tribal 
governments and the private sector. Under Section 202 of UMRA, we 
generally must prepare a written statement, including a cost-benefit 
analysis, for proposed and final rules with ``Federal mandates'' that 
may result in expenditures to State, local, and tribal governments, in 
the aggregate, or to the private sector, of $100 million or more in any 
one year. Before promulgating an EPA rule which must have a written 
statement, section 205 of the UMRA generally requires EPA to identify 
and consider a reasonable number of regulatory alternatives and adopt 
the least costly, most cost-effective, or least burdensome alternative 
that achieves the objectives of the rule. The provisions of section 205 
do not apply when they are inconsistent with applicable law. Moreover, 
section 205 allows us to adopt an alternative other than the least 
costly, most cost-effective, or least burdensome alternative if the 
Administrator publishes an explanation with the final rule. Before we 
establish any regulatory requirements that may significantly or 
uniquely affect small governments, including tribal governments, we 
must develop, under section 203 of the UMRA, a small government agency 
plan. The plan must provide for notifying potentially affected small 
governments, enabling officials of affected small governments to have 
meaningful and timely input in the development of our regulatory 
proposals with significant Federal intergovernmental mandates, and 
informing, educating, and advising small governments on compliance with 
the regulatory requirements.
    Today's rule contains no Federal mandates (under the regulatory 
provisions of Title II of the UMRA) for State, local, or tribal 
governments or the private sector. The rule imposes no enforceable duty 
on any State, local or tribal governments or the private sector. Thus, 
today's rule is not subject to the requirements of sections 202 and 205 
of the UMRA.
    EPA has determined that this rule contains no regulatory 
requirements that might significantly or uniquely affect small 
governments. Small governments are not authorized for the RCRA program 
and therefore will not be implementing these rules.

E. Executive Order 13132: Federalism

    Executive Order 13132, entitled ``Federalism'' (64 FR 43255, August 
10, 1999), requires EPA to develop an accountable process to ensure 
``meaningful and timely input by State and local officials in the 
development of regulatory policies that have federalism implications.'' 
``Policies that have federalism implications'' is defined in the 
Executive Order to include regulations that have ``substantial direct 
effects on the States, on the relationship between the national 
government and the States, or on the distribution of power and 
responsibilities among the various levels of government.''
    This final rule does not have federalism implications. It will not 
have substantial direct effects on the States, on the relationship 
between the national government and the States, or on the distribution 
of power and responsibilities among the various levels of government, 
as specified in Executive Order 13132. Rather, it would provide more 
flexibility for States to implement already-existing requirements in 
the RCRA permitting program. Thus, Executive Order 13132 does not apply 
to this rule.
    In the spirit of Executive Order 13132, and consistent with EPA 
policy to promote communications between EPA and State and local 
governments, EPA specifically solicited comment on the proposed rule 
from State and local officials.

F. Executive Order 13175: Consultation and Coordination With Indian 
Tribal Governments

    Executive Order 13175, entitled ``Consultation and Coordination 
with Indian Tribal Governments'' (65 FR 67249, November 9, 2000), 
requires EPA to develop an accountable process to ensure ``meaningful 
and timely input by tribal officials in the development of regulatory 
policies that have tribal implications.'' This final rule does not have 
tribal implications. It will not have substantial direct effects on 
tribal governments, on the relationship between the Federal government 
and Indian tribes, or on the distribution of power and responsibilities 
between the Federal government and Indian tribes, as specified in 
Executive Order 13175. There is no impact to tribal governments as a 
result of the standardized permit. Thus, Executive Order 13175 does not 
apply to this rule.

G. Executive Order 13045: Protection of Children From Environmental 
Health Risks and Safety Risks

    ``Protection of Children from Environmental Health Risks and Safety 
Risks'' (62 FR 19885, April 23, 1997) applies to any rule that: (1) Is 
determined to be ``economically significant'' as defined under 
Executive Order 12866, and (2) concerns an environmental health or 
safety risk that EPA has reason to believe may have a disproportionate 
effect on children. If the regulatory action meets both criteria, the 
Agency must evaluate the environmental health or safety effects of the 
planned rule on children, and explain why the planned regulation is 
preferable to other potentially effective and reasonably feasible 
alternatives considered by the Agency.

[[Page 53448]]

    This final rule is not subject to the Executive Order because it is 
not economically significant as defined in Executive Order 12866, and 
because the Agency does not have reason to believe the environmental 
health or safety risks addressed by this action present a 
disproportionate risk to children.

H. Executive Order 13211: Actions That Significantly Affect Energy 
Supply, Distribution, or Use

    This rule is not a ``significant energy action'' as defined in 
Executive Order 13211, ``Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution, or Use'' (66 FR 28355 
(May 22, 2001)) because it is not likely to have a significant adverse 
effect on the supply, distribution, or use of energy. Further, we have 
concluded that this rule is not likely to have any adverse energy 
effects.

I. National Technology Transfer and Advancement Act

    As noted in the proposed rule, Section 12(d) of the National 
Technology Transfer and Advancement Act of 1995 (``NTTAA''), Pubic Law 
104-113, section 12(d)(15 U.S.C. 272 note) directs EPA to use voluntary 
consensus standards in its regulatory activities unless to do so would 
be inconsistent with applicable law or otherwise impractical. Voluntary 
consensus standards are technical standards (e.g., materials 
specifications, test methods, sampling procedures, and business 
practices) that are developed or adopted by voluntary consensus 
standards bodies. The NTTAA directs us to provide Congress, through 
OMB, explanations when the Agency decides not to use available and 
applicable voluntary consensus standards. This action does not 
establish any new technical standards. Therefore, we are not 
considering the use of any voluntary consensus standards.

J. Executive Order 12898: Federal Actions To Address Environmental 
Justice in Minority Populations and Low-Income Populations

    Under Executive Order 12898, ``Federal Actions to Address 
Environmental Justice in Minority Populations and Low-Income 
Populations,'' as well as through EPA's April 1995, ``Environmental 
Justice Strategy, OSWER Environmental Justice Task Force Action Agenda 
Report,'' and the National Environmental Justice Advisory Council, we 
have initiated efforts to incorporate environmental justice into our 
policies and programs. We are committed to addressing environmental 
justice concerns and have assumed a leadership role in environmental 
justice initiatives to enhance environmental quality for all residents 
of the United States. Our goals are to ensure that no segment of the 
population, regardless of race, color, national origin, or income bears 
disproportionately high and adverse human health and environmental 
effects as a result of our policies, programs, and activities, and that 
all people live in clean and sustainable communities. To address this 
goal, we considered the impacts of this rule on low-income populations 
and minority populations.
    We concluded that today's final rule will meet environmental 
justice goals because the public involvement process set forth in 
today's rule provides the opportunity for all potentially affected 
segments of the population to participate in public hearings and/or to 
provide comment on health and environmental concerns that may arise 
pursuant to a permitting action.

K. The Congressional Review Act

    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the 
Small Business Regulatory Enforcement Fairness Act of 1996, generally 
provides that before a rule may take effect, the agency promulgating 
the rule must submit a rule report, which includes a copy of the rule, 
to each House of the Congress and to the Comptroller General of the 
United States. EPA will submit a report containing this rule and other 
required information to the U.S. Senate, the U.S. House of 
Representatives, and the Comptroller General of the United States prior 
to publication of the rule in the Federal Register. A Major rule cannot 
take effect until 60 days after it is published in the Federal 
Register. This action is not a ``major rule'' as defined by 5 U.S.C. 
804(2). This rule will be effective 30 days after publication in the 
Federal Register.

VIII. List of References

    1. RCRA Standardized Permit Rule Response to Comments Document. 
EPA Office of Solid Waste, Permits and State Programs Division. 
March 2005.
    2. RCRA Part A Application. EPA/8700-23, May 2002.
    3. Economics Background Document: Estimate of Potential National 
Regulatory Cost Savings for USEPA's RCRA Hazardous Waste Management 
``Standardized'' Permit Final Rule, EPA Office of Solid Waste, 
Economics, Methods & Risk Analysis Division, March 29, 2005.
    4. Protocol for Conducting Environmental Compliance Audits of 
Treatment, Storage and Disposal Facilities under the Resource 
Conservation and Recovery Act, EPA-305-B-98-006 (December 1998).
    5. Procedures for Conducting Compliance Audit Required by 40 CFR 
270.275(f). EPA Office of Enforcement and Compliance Assurance.

List of Subjects

40 CFR Part 124

    Administrative practice and procedure, Hazardous waste, RCRA 
permits.

40 CFR Part 260

    Hazardous waste management system.

40 CFR Part 261

    Identification and listing of hazardous waste.

40 CFR Part 267

    Corrective action, Financial assurance, Hazardous waste, 
Incorporation by reference, Reporting and recordkeeping requirements, 
Standardized permit requirements.

40 CFR Part 270

    Administrative practice and procedure, Hazardous waste, 
Incorporation by reference, Permit application and modification 
procedures, RCRA permits, Standardized permit requirements.

    Dated: July 28, 2005.
Stephen L. Johnson,
Administrator.

0
For reasons stated in the preamble, title 40 chapter I of the Code of 
Federal Regulations is amended as follows:

PART 124--PROCEDURES FOR DECISION MAKING

0
1. The authority citation for part 124 continues to read as follows:

    Authority: Resource Conservation and Recovery Act, 42 U.S.C. 
6901 et seq.; Safe Drinking Water Act, 42 U.S.C. 300(f) et seq.; 
Clean Water Act, 33 U.S.C. 1251 et seq.; and Clean Air Act, 42 
U.S.C. 1857 et seq.

0
2. Section 124.1 is amended by revising paragraph (b) to read as 
follows:


Sec.  124.1  Purpose and scope.

* * * * *
    (b) Part 124 is organized into five subparts. Subpart A contains 
general procedural requirements applicable to all permit programs 
covered by these provisions. Subparts B through D and Subpart G 
supplement these general provisions with requirements that apply to 
only one or more of the programs. Subpart A describes the steps EPA 
will follow in receiving permit applications, preparing draft permits, 
issuing public notice, inviting public comment and holding public 
hearings on draft permits. Subpart A also covers assembling an 
administrative record, responding to comments, issuing a final permit 
decision, and allowing for

[[Page 53449]]

administrative appeal of the final permit decisions. Subpart B contains 
public participation requirements applicable to all RCRA hazardous 
waste management facilities. Subpart C contains definitions and 
specific procedural requirements for PSD permits. Subpart D contains 
specific procedural requirements for NPDES permits. Subpart G contains 
specific procedural requirements for RCRA standardized permits, which, 
in some instances, change how the General Program Requirements of 
subpart A apply in the context of the RCRA standardized permit.
* * * * *

0
3. Section 124.2 is amended by revising the definition of ``Permit'' in 
paragraph (a) and adding a definition for a ``Standardized permit'' in 
alphabetical order to read as follows:


Sec.  124.2  Definitions.

    (a) * * *
    Permit means an authorization, license or equivalent control 
document issued by EPA or an ``approved State'' to implement the 
requirements of this part and parts 122, 123, 144, 145, 233, 270, and 
271 of this chapter. ``Permit'' includes RCRA ``permit by rule'' (Sec.  
270.60), RCRA standardized permit (Sec.  270.67), UIC area permit 
(Sec.  144.33), NPDES or 404 ``general permit'' (Sec. Sec.  270.61, 
144.34, and 233.38). Permit does not include RCRA interim status (Sec.  
270.70), UIC authorization by rule (Sec.  144.21), or any permit which 
has not yet been the subject of final agency action, such as a ``draft 
permit'' or a ``proposed permit.''
* * * * *
    Standardized permit means a RCRA permit authorizing management of 
hazardous waste issued under subpart G of this part and part 270, 
subpart J. The standardized permit may have two parts: A uniform 
portion issued in all cases and a supplemental portion issued at the 
Director's discretion.
* * * * *

0
4. Section 124.5 is amended by revising paragraph (c)(1) to read as 
follows:


Sec.  124.5  Modification, revocation and reissuance, or termination of 
permits.

* * * * *
    (c) (Applicable to State programs, see 40 CFR 123.25 (NPDES), 
145.11 (UIC), 233.26 (404), and 271.14 (RCRA)). (1) If the Director 
tentatively decides to modify or revoke and reissue a permit under 40 
CFR 122.62 (NPDES), 144.39 (UIC), 233.14 (404), or 270.41 (other than 
Sec.  270.41(b)(3)) or Sec.  270.42(c) (RCRA), he or she shall prepare 
a draft permit under Sec.  124.6 incorporating the proposed changes. 
The Director may request additional information and, in the case of a 
modified permit, may require the submission of an updated application. 
In the case of revoked and reissued permits, other than under 40 CFR 
270.41(b)(3), the Director shall require the submission of a new 
application. In the case of revoked and reissued permits under 40 CFR 
270.41(b)(3), the Director and the permittee shall comply with the 
appropriate requirements in 40 CFR part 124, subpart G for RCRA 
standardized permits.
* * * * *

0
5. Section 124.31 is amended by revising paragraphs (a), (b), and (c) 
to read as follows:


Sec.  124.31  Pre-application public meeting and notice.

    (a) Applicability. The requirements of this section shall apply to 
all RCRA part B applications seeking initial permits for hazardous 
waste management units over which EPA has permit issuance authority. 
The requirements of this section shall also apply to RCRA part B 
applications seeking renewal of permits for such units, where the 
renewal application is proposing a significant change in facility 
operations. For the purposes of this section, a ``significant change'' 
is any change that would qualify as a class 3 permit modification under 
40 CFR 270.42. For the purposes of this section only, ``hazardous waste 
management units over which EPA has permit issuance authority'' refers 
to hazardous waste management units for which the State where the units 
are located has not been authorized to issue RCRA permits pursuant to 
40 CFR part 271. The requirements of this section shall also apply to 
hazardous waste management facilities for which facility owners or 
operators are seeking coverage under a RCRA standardized permit (see 40 
part 270, subpart J), including renewal of a standardized permit for 
such units, where the renewal is proposing a significant change in 
facility operations, as defined at Sec.  124.211(c). The requirements 
of this section do not apply to permit modifications under 40 CFR 
270.42 or to applications that are submitted for the sole purpose of 
conducting post-closure activities or post-closure activities and 
corrective action at a facility.
    (b) Prior to the submission of a part B RCRA permit application for 
a facility, or to the submission of a written Notice of Intent to be 
covered by a RCRA standardized permit (see 40 CFR part 270, subpart J), 
the applicant must hold at least one meeting with the public in order 
to solicit questions from the community and inform the community of 
proposed hazardous waste management activities. The applicant shall 
post a sign-in sheet or otherwise provide a voluntary opportunity for 
attendees to provide their names and addresses.
    (c) The applicant shall submit a summary of the meeting, along with 
the list of attendees and their addresses developed under paragraph (b) 
of this section, and copies of any written comments or materials 
submitted at the meeting, to the permitting agency as a part of the 
part B application, in accordance with 40 CFR 270.14(b), or with the 
written Notice of Intent to be covered by a RCRA standardized permit 
(see 40 CFR part 270, subpart J).
* * * * *

0
6. Section 124.32 is amended by revising paragraph (a) to read as 
follows:


Sec.  124.32  Public notice requirements at the application stage.

    (a) Applicability. The requirements of this section shall apply to 
all RCRA part B applications seeking initial permits for hazardous 
waste management units over which EPA has permit issuance authority. 
The requirements of this section shall also apply to RCRA part B 
applications seeking renewal of permits for such units under 40 CFR 
270.51. For the purposes of this section only, ``hazardous waste 
management units over which EPA has permit issuance authority'' refers 
to hazardous waste management units for which the State where the units 
are located has not been authorized to issue RCRA permits pursuant to 
40 CFR part 271. The requirements of this section do not apply to 
hazardous waste units for which facility owners or operators are 
seeking coverage under a RCRA standardized permit (see 40 CFR part 270, 
subpart J)). The requirements of this section also do not apply to 
permit modifications under 40 CFR 270.42 or permit applications 
submitted for the sole purpose of conducting post-closure activities or 
post-closure activities and corrective action at a facility.
* * * * *

0
7. Subpart G is added to read as follows:
Subpart G--Procedures for RCRA Standardized Permit

General Information About Standardized Permits

Sec.
124.200 What is a RCRA standardized permit?
124.201 Who is eligible for a standardized permit?

[[Page 53450]]

Applying for a Standardized Permit

124.202 How do I as a facility owner or operator apply for a 
standardized permit?
124.203 How may I switch from my individual RCRA permit to a 
standardized permit?

Issuing a Standardized Permit

124.204 What must I do as the Director of the regulatory agency to 
prepare a draft standardized permit?
124.205 What must I do as the Director of the regulatory agency to 
prepare a final standardized permit?
124.206 In what situations may I require a facility owner or 
operator to apply for an individual permit?

Opportunities for Public Involvement in the Standardized Permit Process

124.207 What are the requirements for public notices?
124.208 What are the opportunities for public comments and hearings 
on draft permit decisions?
124.209 What are the requirements for responding to comments?
124.210 May I, as an interested party in the permit process, appeal 
a final standardized permit?

Maintaining a Standardized Permit

124.211 What types of changes may I make to my standardized permit?
124.212 What procedures must I follow to make routine changes?
124.213 What procedures must I follow to make routine changes with 
prior approval?
124.214 What procedures must I follow to make significant changes?

Subpart G--Procedures for RCRA Standardized Permit

General Information About Standardized Permits


Sec.  124.200  What is a RCRA standardized permit?

    The standardized permit is a special form of RCRA permit, that may 
consist of two parts: A uniform portion that the Director issues in all 
cases, and a supplemental portion that the Director issues at his or 
her discretion. We formally define the term ``Standardized permit'' in 
Sec.  124.2.
    (a) What comprises the uniform portion? The uniform portion of a 
standardized permit consists of terms and conditions, relevant to the 
unit(s) you are operating at your facility, that EPA has promulgated in 
40 CFR part 267 (Standards for Owners and Operators of Hazardous Waste 
Facilities Operating under a Standardized Permit). If you intend to 
operate under the standardized permit, you must comply with these 
nationally applicable terms and conditions.
    (b) What comprises the supplemental portion? The supplemental 
portion of a standardized permit consists of site-specific terms and 
conditions, beyond those of the uniform portion, that the Director may 
impose on your particular facility, as necessary to protect human 
health and the environment. If the Director issues you a supplemental 
portion, you must comply with the site-specific terms and conditions it 
imposes.
    (1) When required under Sec.  267.101, provisions to implement 
corrective action will be included in the supplemental portion.
    (2) Unless otherwise specified, these supplemental permit terms and 
conditions apply to your facility in addition to the terms and 
conditions of the uniform portion of the standardized permit and not in 
place of any of those terms and conditions.


Sec.  124.201  Who is eligible for a standardized permit?

    (a) You may be eligible for a standardized permit if:
    (1) You generate hazardous waste and then store or non-thermally 
treat the hazardous waste on-site in containers, tanks, or containment 
buildings; or
    (2) You receive hazardous waste generated off-site by a generator 
under the same ownership as the receiving facility, and then you store 
or non-thermally treat the hazardous waste in containers, tanks, or 
containment buildings.
    (3) In either case, the Director will inform you of your 
eligibility when a decision is made on your permit.
    (b) [Reserved]

Applying for a Standardized Permit


Sec.  124.202  How do I as a facility owner or operator apply for a 
standardized permit?

    (a) You must follow the requirements in this subpart as well as 
those in Sec.  124.31, 40 CFR 270.10, and 40 CFR part 270, subpart J.
    (b) You must submit to the Director a written Notice of Intent to 
operate under the standardized permit. You must also include the 
information and certifications required under 40 CFR part 270, subpart 
J.


Sec.  124.203  How may I switch from my individual RCRA permit to a 
standardized permit?

    Where all units in the RCRA permit are eligible for the 
standardized permit, you may request that your individual permit be 
revoked and reissued as a standardized permit, in accordance with Sec.  
124.5. Where only some of the units in the RCRA permit are eligible for 
the standardized permit, you may request that your individual permit be 
modified to no longer include those units and issue a standardized 
permit for those units in accordance with Sec.  124.204.

Issuing a Standardized Permit


Sec.  124.204  What must I do as the Director of the regulatory agency 
to prepare a draft standardized permit?

    (a) You must review the Notice of Intent and supporting information 
submitted by the facility owner or operator.
    (b) You must determine whether the facility is or is not eligible 
to operate under the standardized permit.
    (1) If the facility is eligible for the standardized permit, you 
must propose terms and conditions, if any, to include in a supplemental 
portion. If you determine that these terms and conditions are necessary 
to protect human health and the environment and cannot be imposed, you 
must tentatively deny coverage under the standardized permit.
    (2) If the facility is not eligible for the standardized permit, 
you must tentatively deny coverage under the standardized permit. Cause 
for ineligibility may include, but is not limited to, the following:
    (i) Failure of owner or operator to submit all the information 
required under Sec.  270.275.
    (ii) Information submitted that is required under Sec.  270.275 is 
determined to be inadequate.
    (iii) Facility does not meet the eligibility requirements 
(activities are outside the scope of the standardized permit).
    (iv) Demonstrated history of significant non-compliance with 
applicable requirements.
    (v) Permit conditions cannot ensure protection of human health and 
the environment.
    (c) You must prepare your draft permit decision within 120 days 
after receiving the Notice of Intent and supporting documents from a 
facility owner or operator. Your tentative determination under this 
section to deny or grant coverage under the standardized permit, 
including any proposed site-specific conditions in a supplemental 
portion, constitutes a draft permit decision. You are allowed a one 
time extension of 30 days to prepare the draft permit decision. When 
the use of the 30-day extension is anticipated, you should inform the 
permit applicant during the initial 120-day review period. Reasons for 
an extension may include, but is not limited to, needing to complete 
review of submissions with the Notice of Intent (e.g., closure plans, 
waste analysis plans, for facilities seeking to manage hazardous waste 
generated off-site).

[[Page 53451]]

    (d) Many requirements in subpart A of this part apply to processing 
the standardized permit application and preparing your draft permit 
decision. For example, your draft permit decision must be accompanied 
by a statement of basis or fact sheet and must be based on the 
administrative record. In preparing your draft permit decision, the 
following provisions of subpart A of this part apply (subject to the 
following modifications):
    (1) Section 124.1 Purpose and Scope. All paragraphs.
    (2) Section 124.2 Definitions. All paragraphs.
    (3) Section 124.3 Application for a permit. All paragraphs, except 
paragraphs (c), (d), (f), and (g) of this section apply.
    (4) Section 124.4 Consolidation of permit processing. All 
paragraphs apply; however, in the context of the RCRA standardized 
permit, the reference to the public comment period is Sec.  124.208 
instead of Sec.  124.10.
    (5) Section 124.5 Modification, revocation and re-issuance, or 
termination of permits. Not applicable.
    (6) Section 124.6 Draft permits. This section does not apply to the 
RCRA standardized permit; procedures in this subpart apply instead.
    (7) Section 124.7 Statement of basis. The entire section applies.
    (8) Section 124.8 Fact sheet. All paragraphs apply; however, in the 
context of the RCRA standardized permit, the reference to the public 
comment period is Sec.  124.208 instead of Sec.  124.10.
    (9) Section 124.9 Administrative record for draft permits when EPA 
is the permitting authority. All paragraphs apply; however, in the 
context of the RCRA standardized permit, the reference to draft permits 
is Sec.  24.204(c) instead of Sec.  124.6.
    (10) Section 124.10 Public notice of permit actions and public 
comment period. Only Sec. Sec.  124.10(c)(1)(ix) and (c)(1)(x)(A) apply 
to the RCRA standardized permit. Most of Sec.  124.10 does not apply to 
the RCRA standardized permit; Sec. Sec.  124.207, 124.208, and 124.209 
apply instead.


Sec.  124.205  What must I do as the Director of the regulatory agency 
to prepare a final standardized permit?

    As Director of the regulatory agency, you must consider all 
comments received during the public comment period (see Sec.  124.208) 
in making your final permit decision. In addition, many requirements in 
subpart A of this part apply to the public comment period, public 
hearings, and preparation of your final permit decision. In preparing a 
final permit decision, the following provisions of subpart A of this 
part apply (subject to the following modifications):
    (a) Section 124.1 Purpose and Scope. All paragraphs.
    (b) Section 124.2 Definitions. All paragraphs.
    (c) Section 124.11 Public comments and requests for public 
hearings. This section does not apply to the RCRA standardized permit; 
the procedures in Sec.  124.208 apply instead.
    (d) Section 124.12 Public hearings. Paragraphs (b), (c), and (d) 
apply.
    (e) Section 124.13 Obligation to raise issues and provide 
information during the public comment period. The entire section 
applies; however, in the context of the RCRA standardized permit, the 
reference to the public comment period is Sec.  124.208 instead of 
Sec.  124.10.
    (f) Section124.14 Reopening of the public comment period. All 
paragraphs apply; however, in the context of the RCRA standardized 
permit, use the following reference: in Sec.  124.14(b)(1) use 
reference to Sec.  124.204 instead of Sec.  124.6; in Sec.  
124.14(b)(3) use reference to Sec.  124.208 instead of Sec.  124.10; in 
Sec.  124.14(c) use reference to Sec.  124.207 instead of Sec.  124.10.
    (g) Section 124.15 Issuance and effective date of permit. All 
paragraphs apply, however, in the context of the RCRA standardized 
permit, the reference to the public comment period is Sec.  124.208 
instead of Sec.  124.10.
    (h) Section 124.16 Stays of contested permit conditions. All 
paragraphs apply.
    (i) Section 124.17 Response to comments. This section does not 
apply to the RCRA standardized permit; procedures in Sec.  124.209 
apply instead.
    (j) Section 124.18 Administrative record for final permit when EPA 
is the permitting authority. All paragraphs apply, however, use 
reference to Sec.  124.209 instead of Sec.  124.17.
    (k) Seciton124.19 Appeal of RCRA, UIC, NPDES, and PSD permits. All 
paragraphs apply.
    (l) Section 124.20 Computation of time. All paragraphs apply.


Sec.  124.206  In what situations may I require a facility owner or 
operator to apply for an individual permit?

    (a) Cases where you may determine that a facility is not eligible 
for the standardized permit include, but are not limited to, the 
following:
    (1) The facility does not meet the criteria in Sec.  124.201.
    (2) The facility has a demonstrated history of significant non-
compliance with regulations or permit conditions.
    (3) The facility has a demonstrated history of submitting 
incomplete or deficient permit application information.
    (4) The facility has submitted an incomplete or inadequate 
materials with the Notice of Intent.
    (b) If you determine that a facility is not eligible for the 
standardized permit, you must inform the facility owner or operator 
that they must apply for an individual permit.
    (c) You may require any facility that has a standardized permit to 
apply for and obtain an individual RCRA permit. Any interested person 
may petition you to take action under this paragraph. Cases where you 
may require an individual RCRA permit include, but are not limited to, 
the following:
    (1) The facility is not in compliance with the terms and conditions 
of the standardized RCRA permit.
    (2) Circumstances have changed since the time the facility owner or 
operator applied for the standardized permit, so that the facility's 
hazardous waste management practices are no longer appropriately 
controlled under the standardized permit.
    (d) You may require any facility authorized by a standardized 
permit to apply for an individual RCRA permit only if you have notified 
the facility owner or operator in writing that an individual permit 
application is required. You must include in this notice a brief 
statement of the reasons for your decision, a statement setting a 
deadline for the owner or operator to file the application, and a 
statement that, on the effective date of the individual RCRA permit, 
the facility's standardized permit automatically terminates. You may 
grant additional time upon request from the facility owner or operator.
    (e) When you issue an individual RCRA permit to an owner or 
operator otherwise subject to a standardized RCRA permit, the 
standardized permit for their facility will automatically cease to 
apply on the effective date of the individual permit.

Opportunities for Public Involvement in the Standardized Permit Process


Sec.  124.207  What are the requirements for public notices?

    (a) You, as the Director, must provide public notice of your draft 
permit decision and must provide an opportunity for the public to 
submit comments and request a hearing on that decision. You must 
provide the public notice to:
    (1) The applicant;
    (2) Any other agency which you know has issued or is required to 
issue a RCRA permit for the same facility or

[[Page 53452]]

activity (including EPA when the draft permit is prepared by the 
State);
    (3) Federal and State agencies with jurisdiction over fish, 
shellfish, and wildlife resources and over coastal zone management 
plans, the Advisory Council on Historic Preservation, State Historic 
Preservation Officers, including any affected States;
    (4) To everyone on the facility mailing list developed according to 
the requirements in Sec.  124.10(c)(1)(ix); and
    (5) To any units of local government having jurisdiction over the 
area where the facility is proposed to be located and to each State 
agency having any authority under State law with respect to the 
construction or operation of the facility.
    (b) You must issue the public notice according to the following 
methods:
    (1) Publication in a daily or weekly major local newspaper of 
general circulation and broadcast over local radio stations;
    (2) When the program is being administered by an approved State, in 
a manner constituting legal notice to the public under State law; and
    (3) Any other method reasonably calculated to give actual notice of 
the draft permit decision to the persons potentially affected by it, 
including press releases or any other forum or medium to elicit public 
participation.
    (c) You must include the following information in the public 
notice:
    (1) The name and telephone number of the contact person at the 
facility.
    (2) The name and telephone number of your contact office, and a 
mailing address to which people may direct comments, information, 
opinions, or inquiries.
    (3) An address to which people may write to be put on the facility 
mailing list.
    (4) The location where people may view and make copies of the draft 
standardized permit and the Notice of Intent and supporting documents.
    (5) A brief description of the facility and proposed operations, 
including the address or a map (for example, a sketched or copied 
street map) of the facility location on the front page of the notice.
    (6) The date that the facility owner or operator submitted the 
Notice of Intent and supporting documents.
    (d) At the same time that you issue the public notice under this 
section, you must place the draft standardized permit (including both 
the uniform portion and the supplemental portion, if any), the Notice 
of Intent and supporting documents, and the statement of basis or fact 
sheet in a location accessible to the public in the vicinity of the 
facility or at your office.


Sec.  124.208  What are the opportunities for public comments and 
hearings on draft permit decisions?

    (a) The public notice that you issue under Sec.  124.207 must allow 
at least 45 days for people to submit written comments on your draft 
permit decision. This time is referred to as the public comment period. 
You must automatically extend the public comment period to the close of 
any public hearing under this section. The hearing officer may also 
extend the comment period by so stating at the hearing.
    (b) During the public comment period, any interested person may 
submit written comments on the draft permit and may request a public 
hearing. If someone wants to request a public hearing, they must submit 
their request in writing to you. Their request must state the nature of 
the issues they propose to raise during the hearing.
    (c) You must hold a public hearing whenever you receive a written 
notice of opposition to a standardized permit and a request for a 
hearing within the public comment period under paragraph (a) of this 
section. You may also hold a public hearing at your discretion, 
whenever, for instance, such a hearing might clarify one or more issues 
involved in the permit decision.
    (d) Whenever possible, you must schedule a hearing under this 
section at a location convenient to the nearest population center to 
the facility. You must give public notice of the hearing at least 30 
days before the date set for the hearing. (You may give the public 
notice of the hearing at the same time you provide public notice of the 
draft permit, and you may combine the two notices.)
    (e) You must give public notice of the hearing according to the 
methods in Sec.  124.207(a) and (b). The hearing must be conducted 
according to the procedures in Sec.  124.12(b), (c), and (d).
    (f) In their written comments and during the public hearing, if 
held, interested parties may provide comments on the draft permit 
decision. These comments may include, but are not limited to, the 
facility's eligibility for the standardized permit, the tentative 
supplemental conditions you proposed, and the need for additional 
supplemental conditions.


Sec.  124.209  What are the requirements for responding to comments?

    (a) At the time you issue a final standardized permit, you must 
also respond to comments received during the public comment period on 
the draft permit. Your response must:
    (1) Specify which additional conditions (i.e., those in the 
supplemental portion), if any, you changed in the final permit, and the 
reasons for the change.
    (2) Briefly describe and respond to all significant comments on the 
facility's ability to meet the general requirements (i.e., those terms 
and conditions in the uniform portion) and on any additional conditions 
necessary to protect human health and the environment raised during the 
public comment period or during the hearing.
    (3) Make the comments and responses accessible to the public.
    (b) You may request additional information from the facility owner 
or operator or inspect the facility if you need additional information 
to adequately respond to significant comments or to make decisions 
about conditions you may need to add to the supplemental portion of the 
standardized permit.
    (c) If you are the Director of an EPA permitting agency, you must 
include in the administrative record for your final permit decision any 
documents cited in the response to comments. If new points are raised 
or new material supplied during the public comment period, you may 
document your response to those matters by adding new materials to the 
administrative record.


Sec.  124.210  May I, as an interested party in the permit process, 
appeal a final standardized permit?

    You may petition for administrative review of the Director's final 
permit decision, including his or her decision that the facility is 
eligible for the standardized permit, according to the procedures of 
Sec.  124.19. However, the terms and conditions of the uniform portion 
of the standardized permit are not subject to administrative review 
under this provision.

Maintaining a Standardized Permit


Sec.  124.211  What types of changes may I make to my standardized 
permit?

    You may make both routine changes, routine changes with prior 
Agency approval, and significant changes. For the purposes of this 
section:
    (a) ``Routine changes'' are any changes to the standardized permit 
that qualify as a class 1 permit modification (without prior Agency 
approval) under 40 CFR 270.42, Appendix I, and
    (b) ``Routine changes with prior Agency approval'' are for those 
changes to the standardized permit that would qualify as a class 1 
modification with prior agency approval, or a class 2

[[Page 53453]]

permit modification under 40 CFR 270.42, Appendix I; and
    (c) ``Significant changes'' are any changes to the standardized 
permit that:
    (1) Qualify as a class 3 permit modification under 40 CFR 270.42, 
Appendix I;
    (2) Are not explicitly identified in 40 CFR 270.42, Appendix I; or
    (3) Amend any terms or conditions in the supplemental portion of 
your standardized permit.


Sec.  124.212  What procedures must I follow to make routine changes?

    (a) You can make routine changes to the standardized permit without 
obtaining approval from the Director. However, you must first determine 
whether the routine change you will make amends the information you 
submitted under 40 CFR 270.275 with your Notice of Intent to operate 
under the standardized permit.
    (b) If the routine changes you make amend the information you 
submitted under 40 CFR 270.275 with your Notice of Intent to operate 
under the standardized permit, then before you make the routine changes 
you must:
    (1) Submit to the Director the revised information pursuant to 40 
CFR 270.275(a); and
    (2) Provide notice of the changes to the facility mailing list and 
to state and local governments in accordance with the procedures in 
Sec.  124.10(c)(1)(ix) and (x).


Sec.  124.213  What procedures must I follow to make routine changes 
with prior approval?

    (a) Routine changes to the standardized permit with prior Agency 
approval may only be made with the prior written approval of the 
Director.
    (b) You must also follow the procedures in Sec.  124.212(b)(1)-(2).


Sec.  124.214  What procedures must I follow to make significant 
changes?

    (a) You must first provide notice of and conduct a public meeting.
    (1) Public Meeting. You must hold a meeting with the public to 
solicit questions from the community and inform the community of your 
proposed modifications to your hazardous waste management activities. 
You must post a sign-in sheet or otherwise provide a voluntary 
opportunity for people attending the meeting to provide their names and 
addresses.
    (2) Public Notice. At least 30 days before you plan to hold the 
meeting, you must issue a public notice in accordance with the 
requirements of Sec.  124.31(d).
    (b) After holding the public meeting, you must submit a 
modification request to the Director that:
    (1) Describes the exact change(s) you want and whether they are 
changes to information you provided under 40 CFR 270.275 or to terms 
and conditions in the supplemental portion of your standardized permit;
    (2) Explain why the modification is needed; and
    (3) Includes a summary of the public meeting under paragraph (a) of 
this section, along with the list of attendees and their addresses and 
copies of any written comments or materials they submitted at the 
meeting.
    (c) Once the Director receives your modification request, he or she 
must make a tentative determination within 120 days to approve or 
disapprove your request. You are allowed a one time extension of 30 
days to prepare the draft permit decision. When the use of the 30-day 
extension is anticipated, you should inform the permit applicant during 
the initial 120-day review period.
    (d) After the Director makes this tentative determination, the 
procedures in Sec.  124.205 and Sec. Sec.  124.207 through 124.210 for 
processing an initial request for coverage under the standardized 
permit apply to making the final determination on the modification 
request.

PART 260--HAZARDOUS WASTE MANAGEMENT SYSTEM: GENERAL

0
8. The authority citation for Part 260 continues to read as follows:

    Authority: 42 U.S.C. 6905, 6912(a), 6921-6927, 6930, 6934, 6935, 
6937, and 6974.

0
9. In Sec.  260.10, the first sentence of paragraph (2) of the 
definition of ``facility'' is revised to read as follows:


Sec.  260.10  Definitions.

* * * * *
    Facility * * *
* * * * *
    (2) For the purpose of implementing corrective action under 40 CFR 
264.101 or 267.101, all contiguous property under the control of the 
owner or operator seeking a permit under subtitle C of RCRA. * * *
* * * * *

0
9a. Sections 260.11(c)(1), (c)(3)(xxvii), and (d)(1) are revised to 
read as follows:


Sec.  260.11  References.

* * * * *
    (c) * * *
    (1) ``APTI Course 415: Control of Gaseous Emissions,'' EPA 
Publication EPA-450/2-81-005, December 1981, IBR approved for 
Sec. Sec.  264.1035, 265.1035, 270.24, 270.25, 270.310(d)(3).
* * * * *
    (3) * * *
    (xxvii) Method 9095B, dated November 2004 and in Update IIIB, IBR 
approved, part 261, appendix IX, and Sec. Sec.  264.190, 264.314, 
265.190, 265.314, 265.1081, 267.190(a), 268.32.
* * * * *
    (d) * * *
    (1) ``Flammable and Combustible Liquids Code'' (1977 or 1981), IBR 
approved for Sec. Sec.  264.198, 265.198, 267.202(b).
* * * * *

PART 261--IDENTIFICATION AND LISTING OF HAZARDOUS WASTE

0
10. The authority citation for Part 261 continues to read as follows:

    Authority: 42 U.S.C. 6905, 6912(a), 6921, 6922, 6924(y), and 
6938.

0
11. Section 261.7(a)(1) is revised to read as follows:


Sec.  261.7  Residues of hazardous waste in empty containers.

    (a)(1) Any hazardous waste remaining in either: (i) an empty 
container; or (ii) an inner liner removed from an empty container, as 
defined in paragraph (b) of this section, is not subject to regulation 
under parts 261 through 265, 267, 268, 270, or 124 this chapter or to 
the notification requirements of section 3010 of RCRA.
* * * * *

0
12. Part 267 is added to read as follows:

PART 267--STANDARDS FOR OWNERS AND OPERATORS OF HAZARDOUS WASTE 
FACILITIES OPERATING UNDER A STANDARDIZED PERMIT

Subpart A--General
Sec.
267.1 What are the purpose, scope and applicability of this part?
267.2 What is the relationship to interim status standards?
267.3 How does this part affect an imminent hazard action?
Subpart B--General Facility Standards
267.10 Does this subpart apply to me?
267.11 What must I do to comply with this subpart?
267.12 How do I obtain an identification number?
267.13 What are my waste analysis requirements?
267.14 What are my security requirements?
267.15 What are my general inspection requirements?
267.16 What training must my employees have?
267.17 What are the requirements for managing ignitable, reactive, 
or incompatible wastes?
267.18 What are the standards for selecting the location of my 
facility?

[[Page 53454]]

Subpart C--Preparedness and Prevention
267.30 Does this subpart apply to me?
267.31 What are the general design and operation standards?
267.32 What equipment am I required to have?
267.33 What are the testing and maintenance requirements for the 
equipment?
267.34 When must personnel have access to communication equipment or 
an alarm system?
267.35 How do I ensure access for personnel and equipment during 
emergencies?
267.36 What arrangements must I make with local authorities for 
emergencies?
Subpart D--Contingency Plan and Emergency Procedures
267.50 Does this subpart apply to me?
267.51 What is the purpose of the contingency plan and how do I use 
it?
267.52 What must be in the contingency plan?
267.53 Who must have copies of the contingency plan?
267.54 When must I amend the contingency plan?
267.55 What is the role of the emergency coordinator?
267.56 What are the required emergency procedures for the emergency 
coordinator?
267.57 What must the emergency coordinator do after an emergency?
267.58 What notification and recordkeeping must I do after an 
emergency?
Subpart E Manifest System, Recordkeeping, Reporting, and Notifying
267.70 Does this subpart apply to me?
267.71 Use of the manifest system.
267.72 Manifest discrepancies.
267.73 What information must I keep?
267.74 Who sees the records?
267.75 What reports must I prepare and to whom do I send them?
267.76 What notifications must I make?
Subpart F--Releases from Solid Waste Management Units
267.90 Who must comply with this section?
267.91-267.100 [Reserved]
267.101 What must I do to address corrective action for solid waste 
management units?
Subpart G--Closure
267.110 Does this subpart apply to me?
267.111 What general standards must I meet when I stop operating the 
unit?
267.112 What procedures must I follow?
267.113 Will the public have the opportunity to comment on the plan?
267.114 [Reserved]
267.115 After I stop operating, how long until I must close?
267.116 What must I do with contaminated equipment, structure, and 
soils?
267.117 How do I certify closure?
Subpart H--Financial Requirements
267.140 Who must comply with this subpart, and briefly, what do they 
have to do?
267.141 Definitions of terms as used in this subpart.
267.142 Cost estimate for closure.
267.143 Financial assurance for closure.
267.144-267.146 [Reserved]
267.147 Liability requirements.
267.148 Incapacity of owners or operators, guarantors, or financial 
institutions.
267.149 [Reserved]
267.150 State assumption of responsibility.
267.151 Wording of the instruments
Subpart I--Use and Management of Containers
267.170 Does this subpart apply to me?
267.171 What standards apply to the containers?
267.172 What are the inspection requirements?
267.173 What standards apply to the container storage areas?
267.174 What special requirements must I meet for ignitable or 
reactive waste?
267.175 What special requirements must I meet for incompatible 
wastes?
267.176 What must I do when I want to stop using the containers?
267.177 What air emission standards apply?
Subpart J--Tank Systems
267.190 Does this subpart apply to me?
267.191 What are the required design and construction standards for 
new tank systems or components?
267.192 What handling and inspection procedures must I follow during 
installation of new tank systems?
267.193 What testing must I do?
267.194 What installation requirements must I follow?
267.195 What are the secondary containment requirements?
267.196 What are the required devices for secondary containment and 
what are their design, operating and installation requirements?
267.197 What are the requirements for ancillary equipment?
267.198 What are the general operating requirements for my tank 
systems?
267.199 What inspection requirements must I meet?
267.200 What must I do in case of a leak or a spill?
267.201 What must I do when I stop operating the tank system?
267.202 What special requirements must I meet for ignitable or 
reactive wastes?
267.203 What special requirements must I meet for incompatible 
wastes?
267.204 What air emission standards apply?
Subparts K Through CC [Reserved]
Subpart DD--Containment buildings
267.1100 Does this subpart apply to me?
267.1101 What design and operating standards must my containment 
building meet?
267.1102 What other requirements must I meet to prevent releases?
267.1103 What additional design and operating standards apply if 
liquids will be in my containment building?
267.1104 How may I obtain a waiver from secondary containment 
requirements?
267.1105 What do I do if my containment building contains areas both 
with and without secondary containment?
267.1106 What do I do if I detect a release?
267.1107 Can a containment building itself be considered secondary 
containment?
267.1108 What must I do when I stop operating the containment 
building?

    Authority: 42 U.S.C. 6902, 6912(a), 6924-6926, and 6930.

Subpart A--General


Sec.  267.1  What are the purpose, scope and applicability of this 
part?

    (a) The purpose of this part is to establish minimum national 
standards which define the acceptable management of hazardous waste 
under a 40 CFR part 270, subpart J standardized permit.
    (b) This part applies to owners and operators of facilities who 
treat or store hazardous waste under a 40 CFR part 270, subpart J 
standardized permit, except as provided otherwise in 40 CFR part 261, 
subpart A, or 40 CFR 264.1(f) and (g).


Sec.  267.2  What is the relationship to interim status standards?

    If you are a facility owner or operator who has fully complied with 
the requirements for interim status--as defined in section 3005(e) of 
RCRA and regulations under 40 CFR 270.70--you must comply with the 
regulations specified in 40 CFR part 265 instead of the regulations in 
this part, until final administrative disposition of the standardized 
permit application is made, except as provided under 40 CFR part 264, 
subpart S.


Sec.  267.3  How does this part affect an imminent hazard action?

    Notwithstanding any other provisions of this part, enforcement 
actions may be brought pursuant to section 7003 of RCRA.

Subpart B--General Facility Standards


Sec.  267.10  Does this subpart apply to me?

    This subpart applies to you if you own or operate a facility that 
treats or stores hazardous waste under a 40 CFR part 270, subpart J 
standardized permit, except as provided in Sec.  267.1(b).


Sec.  267.11  What must I do to comply with this subpart?

    To comply with this subpart, you must obtain an identification 
number, and follow the requirements below for waste analysis, security, 
inspections, training, special waste handling, and location standards.

[[Page 53455]]

Sec.  267.12  How do I obtain an identification number?

    You must apply to EPA for an EPA identification number following 
the EPA notification procedures and using EPA form 8700-12. You may 
obtain information and required forms from your state hazardous waste 
regulatory agency or from your EPA regional office.


Sec.  267.13  What are my waste analysis requirements?

    (a) Before you treat or store any hazardous wastes, you must obtain 
a detailed chemical and physical analysis of a representative sample of 
the wastes. At a minimum, the analysis must contain all the information 
needed to treat or store the waste to comply with this part and 40 CFR 
part 268.
    (1) You may include data in the analysis that was developed under 
40 CFR part 261, and published or documented data on the hazardous 
waste or on hazardous waste generated from similar processes.
    (2) You must repeat the analysis as necessary to ensure that it is 
accurate and up to date. At a minimum, you must repeat the analysis if 
the process or operation generating the hazardous wastes has changed.
    (b) You must develop and follow a written waste analysis plan that 
describes the procedures you will follow to comply with paragraph (a) 
of this section. You must keep this plan at the facility. If you 
receive wastes generated from off-site, and are eligible for a 
standardized permit, you also must have submitted the waste analysis 
plan with the Notice of Intent. At a minimum, the plan must specify all 
of the following:
    (1) The hazardous waste parameters that you will analyze and the 
rationale for selecting these parameters (that is, how analysis for 
these parameters will provide sufficient information on the waste's 
properties to comply with paragraph (a) of this section).
    (2) The test methods you will use to test for these parameters.
    (3) The sampling method you will use to obtain a representative 
sample of the waste to be analyzed. You may obtain a representative 
sample using either:
    (i) One of the sampling methods described in appendix I of 40 CFR 
part 261; or
    (ii) An equivalent sampling method.
    (4) How frequently you will review or repeat the initial analysis 
of the waste to ensure that the analysis is accurate and up to date.
    (5) Where applicable, the methods you will use to meet the 
additional waste analysis requirements for specific waste management 
methods as specified in 40 CFR 264.17, 264.1034(d), 264.1063(d), and 
264.1083.


Sec.  267.14  What are my security requirements?

    (a) You must prevent, and minimize the possibility for, livestock 
and unauthorized people from entering the active portion of your 
facility.
    (b) Your facility must have:
    (1) A 24-hour surveillance system (for example, television 
monitoring or surveillance by guards or facility personnel) that 
continuously monitors and controls entry onto the active portion of the 
facility; or
    (2) An artificial or natural barrier (for example, a fence in good 
repair or a fence combined with a cliff) that completely surrounds the 
active portion of the facility; and
    (3) A means to control entry, at all times, through the gates or 
other entrances to the active portion of the facility (for example, an 
attendant, television monitors, locked entrance, or controlled roadway 
access to the facility).
    (c) You must post a sign at each entrance to the active portion of 
a facility, and at other prominent locations, in sufficient numbers to 
be seen from any approach to this active portion. The sign must bear 
the legend ``Danger--Unauthorized Personnel Keep Out.'' The legend must 
be in English and in any other language predominant in the area 
surrounding the facility (for example, facilities in counties bordering 
the Canadian province of Quebec must post signs in French, and 
facilities in counties bordering Mexico must post signs in Spanish), 
and must be legible from a distance of at least 25 feet. You may use 
existing signs with a legend other than ``Danger--Unauthorized 
Personnel Keep Out'' if the legend on the sign indicates that only 
authorized personnel are allowed to enter the active portion, and that 
entry onto the active portion can be dangerous.


Sec.  267.15  What are my general inspection requirements?

    (a) You must inspect your facility for malfunctions and 
deterioration, operator errors, and discharges that may be causing, or 
may lead to:
    (1) Release of hazardous waste constituents to the environment; or
    (2) A threat to human health. You must conduct these inspections 
often enough to identify problems in time to correct them before they 
result in harm to human health or the environment.
    (b) You must develop and follow a written schedule for inspecting, 
monitoring equipment, safety and emergency equipment, security devices, 
and operating and structural equipment (such as dikes and sump pumps) 
that are important to preventing, detecting, or responding to 
environmental or human health hazards.
    (1) You must keep this schedule at the facility.
    (2) The schedule must identify the equipment and devices you will 
inspect and what problems you look for, such as malfunctions or 
deterioration of equipment (for example, inoperative sump pump, leaking 
fitting, etc.).
    (3) The frequency of your inspections may vary for the items on the 
schedule. However, the frequency should be based on the rate of 
deterioration of the equipment and the probability of an environmental 
or human health incident if the deterioration, malfunction, or any 
operator error goes undetected between inspections. Areas subject to 
spills, such as loading and unloading areas, must be inspected daily 
when in use. At a minimum, the inspection schedule must include the 
items and frequencies required in Sec. Sec.  267.174, 267.193, 267.195, 
267.1103, and 40 CFR 264.1033, 264.1052, 264.1053, 264.1058, and 
264.1083 through 264.1089, where applicable.
    (c) You must remedy any deterioration or malfunction of equipment 
or structures that the inspection reveals in time to prevent any 
environmental or human health hazard. Where a hazard is imminent or has 
already occurred, you must take remedial action immediately.
    (d) You must record all inspections. You must keep these records 
for at least three years from the date of inspection. At a minimum, you 
must include the date and time of the inspection, the name of the 
inspector, a notation of the observations made, and the date and nature 
of any repairs or other remedial actions.


Sec.  267.16  What training must my employees have?

    (a) Your facility personnel must successfully complete a program of 
classroom instruction or on-the-job training that teaches them to 
perform their duties in a way that ensures the facility's compliance 
with the requirements of this part. You must ensure that this program 
includes all the elements described in the documents that are required 
under paragraph (d)(3) of this section.
    (1) A person trained in hazardous waste management procedures must 
direct this program, and must teach facility personnel hazardous waste 
management procedures (including contingency plan implementation) 
relevant to their employment positions.

[[Page 53456]]

    (2) At a minimum, the training program must be designed to ensure 
that facility personnel are able to respond effectively to emergencies 
by including instruction on emergency procedures, emergency equipment, 
and emergency systems, including all of the following, where 
applicable:
    (i) Procedures for using, inspecting, repairing, and replacing 
facility emergency and monitoring equipment
    (ii) Key parameters for automatic waste feed cut-off systems.
    (iii) Communications or alarm systems.
    (iv) Response to fires or explosions.
    (v) Response to ground water contamination incidents.
    (vi) Shutdown of operations.
    (b) Facility personnel must successfully complete the program 
required in paragraph (a) of this section within six months after the 
date of their employment or assignment to a facility, or to a new 
position at a facility, whichever is later. Employees hired after the 
effective date of your standardized permit must not work in 
unsupervised positions until they have completed the training 
requirements of paragraph (a) of this section.
    (c) Facility personnel must take part in an annual review of the 
initial training required in paragraph (a) of this section.
    (d) You must maintain the following documents and records at your 
facility:
    (1) The job title for each position at the facility related to 
hazardous waste management, and the name of the employee filling each 
job;
    (2) A written job description for each position listed under 
paragraph (d)(1) of this section. This description must include the 
requisite skill, education, or other qualifications, and duties of 
employees assigned to each position;
    (3) A written description of the type and amount of both 
introductory and continuing training that will be given to each person 
filling a position listed under paragraph (d)(1) of this section;
    (4) Records that document that facility personnel have received and 
completed the training or job experience required under paragraphs (a), 
(b), and (c) of this section.
    (e) You must keep training records on current personnel until your 
facility closes. You must keep training records on former employees for 
at least three years from the date the employee last worked at your 
facility. Personnel training records may accompany personnel 
transferred within your company.


Sec.  267.17  What are the requirements for managing ignitable, 
reactive, or incompatible wastes?

    (a) You must take precautions to prevent accidental ignition or 
reaction of ignitable or reactive waste by following these 
requirements:
    (1) You must separate these wastes and protect them from sources of 
ignition or reaction such as: open flames, smoking, cutting and 
welding, hot surfaces, frictional heat, sparks (static, electrical, or 
mechanical), spontaneous ignition (for example, from heat-producing 
chemical reactions), and radiant heat.
    (2) While ignitable or reactive waste is being handled, you must 
confine smoking and open flames to specially designated locations.
    (3) ``No Smoking'' signs must be conspicuously placed wherever 
there is a hazard from ignitable or reactive waste.
    (b) If you treat or store ignitable or reactive waste, or mix 
incompatible waste or incompatible wastes and other materials, you must 
take precautions to prevent reactions that:
    (1) Generate extreme heat or pressure, fire or explosions, or 
violent reactions.
    (2) Produce uncontrolled toxic mists, fumes, dusts, or gases in 
sufficient quantities to threaten human health or the environment.
    (3) Produce uncontrolled flammable fumes or gases in sufficient 
quantities to pose a risk of fire or explosions.
    (4) Damage the structural integrity of the device or facility.
    (5) Threaten human health or the environment in any similar way.
    (c) You must document compliance with paragraph (a) or (b) of this 
section. You may base this documentation on references to published 
scientific or engineering literature, data from trial tests (for 
example bench scale or pilot scale tests), waste analyses (as specified 
in Sec.  267.13), or the results of the treatment of similar wastes by 
similar treatment processes and under similar operating conditions.


Sec.  267.18  What are the standards for selecting the location of my 
facility?

    (a) You may not locate portions of new facilities where hazardous 
waste will be treated or stored within 61 meters (200 feet) of a fault 
that has had displacement in Holocene time.
    (1) ``Fault'' means a fracture along which rocks on one side have 
been displaced with respect to those on the other side.
    (2) ``Displacement'' means the relative movement of any two sides 
of a fault measured in any direction.
    (3) ``Holocene'' means the most recent epoch of the Quaternary 
period, extending from the end of the Pleistocene to the present.

    Note to paragraph (a)(3): Procedures for demonstrating 
compliance with this standard are specified in 40 CFR 270.14(b)(11). 
Facilities which are located in political jurisdictions other than 
those listed in appendix VI of 40 CFR part 264, are assumed to be in 
compliance with this requirement.

    (b) If your facility is located in a 100-year flood plain, it must 
be designed, constructed, operated, and maintained to prevent washout 
of any hazardous waste by a 100-year flood.
    (1) ``100-year flood plain'' means any land area that is subject to 
a one percent or greater chance of flooding in any given year from any 
source.
    (2) ``Washout'' means the movement of hazardous waste from the 
active portion of the facility as a result of flooding.
    (3) ``100-year flood'' means a flood that has a one percent chance 
of being equaled or exceeded in any given year.

Subpart C--Preparedness and Prevention


Sec.  267.30  Does this subpart apply to me?

    This subpart applies to you if you own or operate a facility that 
treats or stores hazardous waste under a 40 CFR part 270, subpart J 
standardized permit, except as provided in Sec.  267.1(b).


Sec.  267.31  What are the general design and operation standards?

    You must design, construct, maintain, and operate your facility to 
minimize the possibility of a fire, explosion, or any unplanned sudden 
or non-sudden release of hazardous waste or hazardous waste 
constituents to air, soil, or surface water that could threaten human 
health or the environment.


Sec.  267.32  What equipment am I required to have?

    Your facility must be equipped with all of the following, unless 
none of the hazards posed by waste handled at the facility could 
require a particular kind of equipment specified below:
    (a) An internal communications or alarm system capable of providing 
immediate emergency instruction (voice or signal) to facility 
personnel.
    (b) A device, such as a telephone (immediately available at the 
scene of operations) or a hand-held two-way radio, capable of summoning 
emergency assistance from local police departments, fire departments, 
or State or local emergency response teams.
    (c) Portable fire extinguishers, fire control equipment (including 
special extinguishing equipment, such as that using foam, inert gas, or 
dry chemicals),

[[Page 53457]]

spill control equipment, and decontamination equipment.
    (d) Water at adequate volume and pressure to supply water hose 
streams, or foam-producing equipment, or automatic sprinklers, or water 
spray systems.


Sec.  267.33  What are the testing and maintenance requirements for the 
equipment?

    You must test and maintain all required facility communications or 
alarm systems, fire protection equipment, spill control equipment, and 
decontamination equipment, as necessary, to assure its proper operation 
in time of emergency.


Sec.  267.34  When must personnel have access to communication 
equipment or an alarm system?

    (a) Whenever hazardous waste is being poured, mixed, spread, or 
otherwise handled, all personnel involved in the operation must have 
immediate access to an internal alarm or emergency communication 
device, either directly or through visual or voice contact with another 
employee, unless the device is not required under Sec.  267.32.
    (b) If just one employee is on the premises while the facility is 
operating, that person must have immediate access to a device, such as 
a telephone (immediately available at the scene of operation) or a 
hand-held two-way radio, capable of summoning external emergency 
assistance, unless not required under Sec.  267.32.


Sec.  267.35  How do I ensure access for personnel and equipment during 
emergencies?

    You must maintain enough aisle space to allow the unobstructed 
movement of personnel, fire protection equipment, spill control 
equipment, and decontamination equipment to any area of facility 
operation in an emergency, as appropriate, considering the type of 
waste being stored or treated.


Sec.  267.36  What arrangements must I make with local authorities for 
emergencies?

    (a) You must attempt to make the following arrangements, as 
appropriate, for the type of waste handled at your facility and the 
potential need for the services of these organizations:
    (1) Arrangements to familiarize police, fire departments, and 
emergency response teams with the layout of the facility, properties of 
hazardous waste handled at the facility and associated hazards, places 
where facility personnel would normally be working, entrances to and 
roads inside the facility, and possible evacuation routes.
    (2) Agreements designating primary emergency authority to a 
specific police and a specific fire department where more than one 
police and fire department might respond to an emergency, and 
agreements with any others to provide support to the primary emergency 
authority.
    (3) Agreements with State emergency response teams, emergency 
response contractors, and equipment suppliers.
    (4) Arrangements to familiarize local hospitals with the properties 
of hazardous waste handled at the facility and the types of injuries or 
illnesses that could result from fires, explosions, or releases at the 
facility.
    (b) If State or local authorities decline to enter into such 
arrangements, you must document the refusal in the operating record.

Subpart D--Contingency Plan and Emergency Procedures


Sec.  267.50  Does this subpart apply to me?

    This subpart applies to you if you own or operate a facility that 
treats or stores hazardous waste under a 40 CFR part 270, subpart J 
standardized permit, except as provided in Sec.  267.1(b).


Sec.  267.51  What is the purpose of the contingency plan and how do I 
use it?

    (a) You must have a contingency plan for your facility. You must 
design the plan to minimize hazards to human health or the environment 
from fires, explosions, or any unplanned sudden or non-sudden release 
of hazardous waste or hazardous waste constituents to air, soil, or 
surface water.
    (b) You must implement the provisions of the plan immediately 
whenever there is a fire, explosion, or release of hazardous waste or 
hazardous waste constituents which could threaten human health or the 
environment.


Sec.  267.52  What must be in the contingency plan?

    (a) Your contingency plan must:
    (1) Describe the actions facility personnel will take to comply 
with Sec. Sec.  267.51 and 267.56 in response to fires, explosions, or 
any unplanned sudden or non-sudden release of hazardous waste or 
hazardous waste constituents to air, soil, or surface water at the 
facility.
    (2) Describe all arrangements agreed upon under Sec.  267.36 by 
local police departments, fire departments, hospitals, contractors, and 
state and local emergency response teams to coordinate emergency 
services.
    (3) List names, addresses, and phone numbers (office and home) of 
all persons qualified to act as emergency coordinator (see Sec.  
267.55), and you must keep the list up to date. Where more than one 
person is listed, one must be named as primary emergency coordinator 
and others must be listed in the order in which they will assume 
responsibility as alternates.
    (4) Include a current list of all emergency equipment at the 
facility (such as fire extinguishing systems, spill control equipment, 
communications and alarm systems (internal and external), and 
decontamination equipment), where this equipment is required. In 
addition, you must include the location and a physical description of 
each item on the list, and a brief outline of its capabilities.
    (5) Include an evacuation plan for facility personnel where there 
is a possibility that evacuation could be necessary. You must describe 
signal(s) to be used to begin evacuation, evacuation routes, and 
alternate evacuation routes (in cases where the primary routes could be 
blocked by releases of hazardous waste or fires).
    (b) If you have already prepared a Spill Prevention, Control, and 
Countermeasures (SPCC) Plan under 40 CFR part 112, or some other 
emergency or contingency plan, you need only amend that plan to 
incorporate hazardous waste management provisions that will comply with 
the requirements of this part.


Sec.  267.53  Who must have copies of the contingency plan?

    (a) You must maintain a copy of the plan with all revisions at the 
facility; and
    (b) You must submit a copy with all revisions to all local police 
departments, fire departments, hospitals, and state and local emergency 
response teams that may be called upon to provide emergency services.


Sec.  267.54  When must I amend the contingency plan?

    You must review, and immediately amend the contingency plan, if 
necessary, whenever:
    (a) The facility permit is revised.
    (b) The plan fails in an emergency.
    (c) You change the facility (in its design, construction, 
operation, maintenance, or other circumstances) in a way that 
materially increases the potential for fires, explosions, or releases 
of hazardous waste or hazardous waste constituents, or changes the 
response necessary in an emergency.
    (d) You change the list of emergency coordinators.
    (e) You change the list of emergency equipment.

[[Page 53458]]

Sec.  267.55  What is the role of the emergency coordinator?

    At least one employee must be either on the facility premises or on 
call at all times (that is, available to respond to an emergency by 
reaching the facility within a short period of time) who has the 
responsibility for coordinating all emergency response measures. This 
emergency coordinator must be thoroughly familiar with all aspects of 
the facility's contingency plan, all operations and activities at the 
facility, the location and characteristics of waste handled, the 
location of all records within the facility, and the facility layout. 
In addition, this person must have the authority to commit the 
resources needed to carry out the contingency plan.


Sec.  267.56  What are the required emergency procedures for the 
emergency coordinator?

    (a) Whenever there is an imminent or actual emergency situation, 
the emergency coordinator (or his designee when the emergency 
coordinator is on call) must immediately:
    (1) Activate internal facility alarm or communication systems, 
where applicable, to notify all facility personnel, and
    (2) Notify appropriate State or local agencies with designated 
response roles if their help is needed.
    (b) Whenever there is a release, fire, or explosion, the emergency 
coordinator must:
    (1) Immediately identify the character, exact source, amount, and 
areal extent of any released materials. He may do this by observation 
or review of facility records or manifests, and, if necessary, by 
chemical analysis.
    (2) Assess possible hazards to human health or the environment that 
may result from the release, fire, or explosion. This assessment must 
consider both direct and indirect effects of the release, fire, or 
explosion. For example, the assessment would consider the effects of 
any toxic, irritating, or asphyxiating gases that are generated, or the 
effects of any hazardous surface water run-off from water or chemical 
agents used to control fire and heat-induced explosions.
    (c) If the emergency coordinator determines that the facility has 
had a release, fire, or explosion which could threaten human health, or 
the environment, outside the facility, he must report his findings as 
follows:
    (1) If his assessment indicates that evacuation of local areas may 
be advisable, he must immediately notify appropriate local authorities. 
He must be available to help appropriate officials decide whether local 
areas should be evacuated; and
    (2) He must immediately notify either the government official 
designated as the on-scene coordinator for that geographical area, or 
the National Response Center (using their 24-hour toll-free number 800/ 
424-8802). The report must include:
    (i) Name and telephone number of the reporter.
    (ii) Name and address of facility.
    (iii) Time and type of incident (for example, a release or a fire).
    (iv) Name and quantity of material(s) involved, to the extent 
known.
    (v) The extent of injuries, if any.
    (vi) The possible hazards to human health or the environment 
outside the facility.
    (d) During an emergency, the emergency coordinator must take all 
reasonable measures necessary to ensure that fires, explosions, and 
releases do not occur, recur, or spread to other hazardous waste at the 
facility. These measures must include, where applicable, stopping 
processes and operations, collecting and containing release waste, and 
removing or isolating containers.
    (e) If the facility stops operations in response to a fire, 
explosion, or release, the emergency coordinator must monitor for 
leaks, pressure buildup, gas generation, or ruptures in valves, pipes, 
or other equipment, when appropriate.


Sec.  267.57  What must the emergency coordinator do after an 
emergency?

    (a) Immediately after an emergency, the emergency coordinator must 
provide for treating, storing, or disposing of recovered waste, 
contaminated soil or surface water, or any other material that results 
from a release, fire, or explosion at the facility.
    (b) The emergency coordinator must ensure that, in the affected 
area(s) of the facility:
    (1) No waste that may be incompatible with the released material is 
treated, stored, or disposed of until cleanup procedures are completed.
    (2) All emergency equipment listed in the contingency plan is 
cleaned and fit for its intended use before operations are resumed.


Sec.  267.58  What notification and recordkeeping must I do after an 
emergency?

    (a) You must notify the Regional Administrator, and appropriate 
State and local authorities, that the facility is in compliance with 
Sec.  267.57(b) before operations are resumed in the affected area(s) 
of the facility.
    (b) You must note the time, date, and details of any incident that 
requires implementing the contingency plan in the operating record. 
Within 15 days after the incident, you must submit a written report on 
the incident to the Regional Administrator. You must include the 
following in the report:
    (1) The name, address, and telephone number of the owner or 
operator.
    (2) The name, address, and telephone number of the facility.
    (3) The date, time, and type of incident (e.g., fire, explosion).
    (4) The name and quantity of material(s) involved.
    (5) The extent of injuries, if any.
    (6) An assessment of actual or potential hazards to human health or 
the environment, where this is applicable.
    (7) The estimated quantity and disposition of recovered material 
that resulted from the incident.

Subpart E--Recordkeeping, Reporting, and Notifying


Sec.  267.70  Does this subpart apply to me?

    This subpart applies to you if you own or operate a facility that 
stores or non-thermally treats a hazardous waste under a 40 CFR part 
270, subpart J standardized permit, except as provided in Sec.  
267.1(b). In addition, you must comply with the manifest requirements 
of 40 CFR part 262 whenever a shipment of hazardous waste is initiated 
from your facility.


Sec.  267.71  Use of the manifest system.

    (a) If a facility receives hazardous waste accompanied by a 
manifest, the owner or operator, or his agent, must:
    (1) Sign and date each copy of the manifest to certify that the 
hazardous waste covered by the manifest was received;
    (2) Note any significant discrepancies in the manifest (as defined 
in Sec.  267.72(a)) on each copy of the manifest;
    (3) Immediately give the transporter at least one copy of the 
signed manifest;
    (4) Within 30 days after the delivery, send a copy of the manifest 
to the generator; and
    (5) Retain at the facility a copy of each manifest for at least 
three years from the date of delivery.
    (b) If a facility receives, from a rail or water (bulk shipment) 
transporter, hazardous waste which is accompanied by a shipping paper 
containing all the information required on the manifest (excluding the 
EPA identification numbers, generator's certification, and signatures), 
the owner or operator, or his agent, must:
    (1) Sign and date each copy of the manifest or shipping paper (if 
the

[[Page 53459]]

manifest has not been received) to certify that the hazardous waste 
covered by the manifest or shipping paper was received;
    (2) Note any significant discrepancies (as defined in Sec.  
267.72(a)) in the manifest or shipping paper (if the manifest has not 
been received) on each copy of the manifest or shipping paper. Note 
that the Agency does not intend that the owner or operator of a 
facility whose procedures under Sec.  267.13(c) include waste analysis 
must perform that analysis before signing the shipping paper and giving 
it to the transporter. Section 267.72(b), however, requires reporting 
an unreconciled discrepancy discovered during later analysis.
    (3) Immediately give the rail or water (bulk shipment) transporter 
at least one copy of the manifest or shipping paper (if the manifest 
has not been received);
    (4) Within 30 days after the delivery, send a copy of the signed 
and dated manifest to the generator; however, if the manifest has not 
been received within 30 days after delivery, the owner or operator, or 
his agent, must send a copy of the shipping paper signed and dated to 
the generator. Note that Sec.  262.23(c) of this chapter requires the 
generator to send three copies of the manifest to the facility when 
hazardous waste is sent by rail or water (bulk shipment); and
    (5) Retain at the facility a copy of the manifest and shipping 
paper (if signed in lieu of the manifest at the time of delivery) for 
at least three years from the date of delivery.
    (c) Whenever a shipment of hazardous waste is initiated from a 
facility, the owner or operator of that facility must comply with the 
requirements of part 262 of this chapter. The Agency notes that the 
provisions of Sec.  262.34 are applicable to the on-site accumulation 
of hazardous wastes by generators. Therefore, the provisions of Sec.  
262.34 only apply to owners or operators who are shipping hazardous 
waste which they generated at that facility.
    (d) Within three working days of the receipt of a shipment subject 
to 40 CFR part 262, subpart H, the owner or operator of the facility 
must provide a copy of the tracking document bearing all required 
signatures to the notifier, to the Office of Enforcement and Compliance 
Assurance, Office of Compliance, Enforcement Planning, Targeting and 
Data Division (2222A), Environmental Protection Agency, 1200 
Pennsylvania Ave., NW., Washington, DC 20460, and to competent 
authorities of all other concerned countries. The original copy of the 
tracking document must be maintained at the facility for at least three 
years from the date of signature.


Sec.  267.72  Manifest discrepancies.

    (a) Manifest discrepancies are differences between the quantity or 
type of hazardous waste designated on the manifest or shipping paper, 
and the quantity or type of hazardous waste a facility actually 
receives. Significant discrepancies in quantity are:
    (1) For bulk waste, variations greater than 10 percent in weight; 
and
    (2) For batch waste, any variation in piece count, such as a 
discrepancy of one drum in a truckload. Significant discrepancies in 
type are obvious differences which can be discovered by inspection or 
waste analysis, such as waste solvent substituted for waste acid, or 
toxic constituents not reported on the manifest or shipping paper.
    (b) Upon discovering a significant discrepancy, the owner or 
operator must attempt to reconcile the discrepancy with the waste 
generator or transporter (e.g., with telephone conversations). If the 
discrepancy is not resolved within 15 days after receiving the waste, 
the owner or operator must immediately submit to the Regional 
Administrator a letter describing the discrepancy and attempts to 
reconcile it, and a copy of the manifest or shipping paper at issue.


Sec.  267.73  What information must I keep?

    (a) You must keep a written operating record at your facility.
    (b) You must record the following information, as it becomes 
available, and maintain the operating record until you close the 
facility:
    (1) A description and the quantity of each type of hazardous waste 
generated, and the method(s) and date(s) of its storage and/or 
treatment at the facility as required by Appendix I of 40 CFR part 264;
    (2) The location of each hazardous waste within the facility and 
the quantity at each location;
    (3) Records and results of waste analyses and waste determinations 
you perform as specified in Sec. Sec.  267.13, 267.17, and 40 CFR 
264.1034, 264.1063, 264.1083, and 268.7;
    (4) Summary reports and details of all incidents that require you 
to implement the contingency plan as specified in Sec.  267.58(b));
    (5) Records and results of inspections as required by Sec.  
267.15(d) (except you need to keep these data for only three years);
    (6) Monitoring, testing or analytical data, and corrective action 
when required by subpart F of this part and Sec. Sec.  267.191, 
267.193, 267.195, and 40 CFR 264.1034(c) through 264.1034(f), 264.1035, 
264.1063(d) through 264.1063(i), 264.1064, 264.1088, 264.1089, and 
264.1090;
    (7) All closure cost estimates under Sec.  267.142;
    (8) Your certification, at least annually, that you have a program 
in place to reduce the volume and toxicity of hazardous waste that you 
generate to the degree that you determine to be economically 
practicable; and that the proposed method of treatment or storage is 
that practicable method currently available to you that minimizes the 
present and future threat to human health and the environment;
    (9) For an on-site treatment facility, the information contained in 
the notice (except the manifest number), and the certification and 
demonstration, if applicable, required by you under 40 CFR 268.7; and
    (10) For an on-site storage facility, the information in the notice 
(except the manifest number), and the certification and demonstration, 
if applicable, required by you under 40 CFR 268.7.
    (11) For an off-site treatment facility, a copy of the notice, and 
the certification and demonstration, if applicable, required by the 
generator or the owner or operator under Sec.  268.7 or Sec.  268.8;
    (12) For an off-site storage facility, a copy of the notice, and 
the certification and demonstration, if applicable, required by the 
generator or the owner or operator under Sec.  268.7 or Sec.  268.8.


Sec.  267.74  Who sees the records?

    (a) You must furnish all records, including plans, required under 
this part upon the request of any officer, employee, or representative 
of EPA who is duly designated by the Administrator, and make them 
available at all reasonable times for inspection.
    (b) The retention period for all records required under this part 
is extended automatically during the course of any unresolved 
enforcement action involving the facility or as requested by the 
Administrator.


Sec.  267.75  What reports must I prepare and to whom do I send them?

    You must prepare a biennial report and other reports listed in 
paragraph (b) of this section.
    (a) Biennial report. You must prepare and submit a single copy of a 
biennial report to the Regional Administrator by March 1 of each even 
numbered year. The biennial report must be submitted on EPA form 8700-
13B. The report must cover facility activities during the previous 
calendar year and must include:
    (1) The EPA identification number, name, and address of the 
facility;

[[Page 53460]]

    (2) The calendar year covered by the report;
    (3) The method of treatment or storage for each hazardous waste;
    (4) The most recent closure cost estimate under Sec.  267.142;
    (5) A description of the efforts undertaken during the year to 
reduce the volume and toxicity of generated waste.
    (6) A description of the changes in volume and toxicity of waste 
actually achieved during the year in comparison to previous years to 
the extent such information is available for the years prior to 1984.
    (7) The certification signed by you.
    (b) Additional reports. In addition to submitting the biennial 
reports, you must also report to the Regional Administrator:
    (1) Releases, fires, and explosions as specified in Sec.  
267.58(b);
    (2) Facility closures specified in Sec.  267.117; and
    (3) As otherwise required by subparts I, J, and DD of this part and 
part 264, subparts AA, BB, CC.
    (c) For off-site facilities, the EPA identification number of each 
hazardous waste generator from which the facility received a hazardous 
waste during the year; for imported shipments, the report must give the 
name and address of the foreign generator;
    (d) A description and the quantity of each hazardous waste the 
facility received during the year. For off-site facilities, this 
information must be listed by EPA identification number of each 
generator.


Sec.  267.76  What notifications must I make?

    Before transferring ownership or operation of a facility during its 
operating life, you must notify the new owner or operator in writing of 
the requirements of this part and 40 CFR part 270, subpart J.

Subpart F--Releases from Solid Waste Management Units


Sec.  267.90  Who must comply with this section?

    This subpart applies to you if you own or operate a facility that 
treats or stores hazardous waste under a 40 CFR part 270, subpart J 
standardized permit, except as provided in Sec.  267.1(b), or unless 
your facility already has a permit that imposes requirements for 
corrective action under 40 CFR 264.101.


Sec.  267.91-267.100  [Reserved]


Sec.  267.101  What must I do to address corrective action for solid 
waste management units?

    (a) You must institute corrective action as necessary to protect 
human health and the environment for all releases of hazardous waste or 
constituents from any solid waste management unit at the facility, 
regardless of the time at which waste was placed in such unit.
    (b) The Regional Administrator will specify corrective action in 
the supplemental portion of your standardized permit in accordance with 
this section and 40 CFR part 264, subpart S. The Regional Administrator 
will include in the supplemental portion of your standardized permit 
schedules of compliance for corrective action (where corrective action 
cannot be completed prior to issuance of the permit) and assurances of 
financial responsibility for completing corrective action.
    (c) You must implement corrective action beyond the facility 
property boundary, where necessary to protect human health and the 
environment, unless you demonstrate to the satisfaction of the Regional 
Administrator that, despite your best efforts, you were unable to 
obtain the necessary permission to undertake such actions. You are not 
relieved of all responsibility to clean up a release that has migrated 
beyond the facility boundary where off -site access is denied. On-site 
measures to address such releases will be determined on a case-by-case 
basis. You must provide assurances of financial responsibility for such 
corrective action.
    (d) You do not have to comply with this section if you are the 
owner or operator of a remediation waste site unless your site is part 
of a facility that is subject to a permit for treating, storing, or 
disposing of hazardous wastes that are not remediation wastes.

Subpart G--Closure


Sec.  267.110  Does this subpart apply to me?

    This subpart applies to you if you own or operate a facility that 
treats or stores hazardous waste under a 40 CFR part 270, subpart J 
standardized permit, except as provided in Sec.  267.1(b).


Sec.  267.111  What general standards must I meet when I stop operating 
the unit?

    You must close the storage and treatment units in a manner that:
    (a) Minimizes the need for further maintenance; and
    (b) Controls, minimizes, or eliminates, to the extent necessary to 
protect human health and the environment, post-closure escape of 
hazardous waste, hazardous constituents, leachate, contaminated run-
off, or hazardous waste decomposition products to the ground or surface 
waters or to the atmosphere; and
    (c) Meets the closure requirements of this subpart and the 
requirements of Sec. Sec.  267.176, 267.201, and 267.1108. If you 
determine that, when applicable, the closure requirements of Sec.  
267.201(tanks) or Sec.  267.1108 (containment buildings) cannot be met, 
then you must close the unit in accordance with the requirements that 
apply to landfills (Sec.  264.310). In addition, for the purposes of 
post-closure and financial responsibility, such a tank system or 
containment building is then considered to be a landfill, and you must 
apply for a post-closure care permit in accordance with 40 CFR part 
270.


Sec.  267.112  What procedures must I follow?

    (a) To close a facility, you must follow your approved closure 
plan, and follow notification requirements.
    (1) Your closure plan must be submitted at the time you submitted 
your Notice of Intent to operate under a standardized permit. Final 
issuance of the standardized permit constitutes approval of the closure 
plan, and the plan becomes a condition of the RCRA standardized permit.
    (2) The Director's approval of the plan must ensure that the 
approved plan is consistent with Sec. Sec.  267.111 through 267.115, 
267.176, 267.201, and 267.1108.
    (b) Satisfy the requirements for content of closure plan. The 
closure plan must identify steps necessary to perform partial and/or 
final closure of the facility. The closure plan must include, at least:
    (1) A description of how each hazardous waste management unit at 
the facility subject to this subpart will be closed following Sec.  
267.111.
    (2) A description of how final closure of the facility will be 
conducted in accordance with Sec.  267.111. The description must 
identify the maximum extent of the operations which will be unclosed 
during the active life of the facility.
    (3) An estimate of the maximum inventory of hazardous wastes ever 
on site during the active life of the facility and a detailed 
description of the methods you will use during partial and/or final 
closure, such as methods for removing, transporting, treating, storing, 
or disposing of all hazardous wastes, and identification of the type(s) 
of off-site hazardous waste management units to be used, if applicable.
    (4) A detailed description of the steps needed to remove or 
decontaminate all hazardous waste residues and contaminated containment 
system components, equipment, structures, and soils during partial or 
final closure.

[[Page 53461]]

These might include procedures for cleaning equipment and removing 
contaminated soils, methods for sampling and testing surrounding soils, 
and criteria for determining the extent of decontamination required to 
satisfy the closure performance standard;
    (5) A detailed description of other activities necessary during the 
closure period to ensure that partial or final closure satisfies the 
closure performance standards.
    (6) A schedule for closure of each hazardous waste management unit, 
and for final closure of the facility. The schedule must include, at a 
minimum, the total time required to close each hazardous waste 
management unit and the time required for intervening closure 
activities that allow tracking of progress of partial or final closure.
    (7) For facilities that use trust funds to establish financial 
assurance under Sec.  267.143 and that are expected to close prior to 
the expiration of the permit, an estimate of the expected year of final 
closure.
    (c) You may submit a written notification to the Director for a 
permit modification to amend the closure plan at any time prior to the 
notification of partial or final closure of the facility, following the 
applicable procedures in 40 CFR 124.211.
    (1) Events leading to a change in the closure plan, and therefore 
requiring a modification, may include:
    (i) A change in the operating plan or facility design;
    (ii) A change in the expected year of closure, if applicable; or
    (iii) In conducting partial or final closure activities, an 
unexpected event requiring a modification of the approved closure plan.
    (2) The written notification or request must include a copy of the 
amended closure plan for review or approval by the Director. The 
Director will approve, disapprove, or modify this amended plan in 
accordance with the procedures in 40 CFR 124.211 and 270.320.
    (d) Notification before final closure. (1) You must notify the 
Director in writing at least 45 days before the date that you expect to 
begin final closure of a treatment or storage tank, container storage 
area, or containment building.
    (2) The date when you ``expect to begin closure'' must be no later 
than 30 days after the date that any hazardous waste management unit 
receives the known final volume of hazardous wastes.
    (3) If your facility's permit is terminated, or if you are 
otherwise ordered, by judicial decree or final order under section 3008 
of RCRA, to cease receiving hazardous wastes or to close, then the 
requirements of this paragraph (d) do not apply. However, you must 
close the facility following the deadlines established in Sec.  
267.115.


Sec.  267.113  Will the public have the opportunity to comment on the 
plan?

    (a) The Director will provide you and the public, when the draft 
standardized permit is public noticed, the opportunity to submit 
written comments on the plan and to the draft permit as allowed by 40 
CFR 124.208. The Director will also, in response to a request or at 
his/her own discretion, hold a public hearing whenever such a hearing 
might clarify one or more issues concerning the closure plan, and the 
permit.
    (b) The Director will give public notice of the hearing 30 days 
before it occurs. Public notice of the hearing may be given at the same 
time as notice of the opportunity for the public to submit written 
comments, and the two notices may be combined.


Sec.  267.114  [Reserved]


Sec.  267.115  After I stop operating, how long until I must close?

    (a) Within 90 days after the final volume of hazardous waste is 
sent to a unit, you must treat or remove from the unit all hazardous 
wastes following the approved closure plan.
    (b) You must complete final closure activities in accordance with 
the approved closure plan within 180 days after the final volume of 
hazardous wastes is sent to the unit. The Director may approve an 
extension of 180 days to the closure period if you comply with all 
applicable requirements for requesting a modification to the permit and 
demonstrate that:
    (1) The final closure activities will take longer than 180 days to 
complete due to circumstances beyond your control, excluding ground 
water contamination; and
    (2) You have taken and will continue to take all steps to prevent 
threats to human health and the environment from the unclosed, but not 
operating hazardous waste management unit or facility, including 
compliance with all applicable permit requirements.
    (3) The demonstration must be made at least 30 days prior to the 
expiration of the initial 180-day period.
    (c) Nothing in this section precludes you from removing hazardous 
wastes and decontaminating or dismantling equipment in accordance with 
the approved final closure plan at any time before or after 
notification of final closure.


Sec.  267.116  What must I do with contaminated equipment, structure, 
and soils?

    You must properly dispose of or decontaminate all contaminated 
equipment, structures, and soils during the partial and final closure 
periods. By removing any hazardous wastes or hazardous constituents 
during partial and final closure, you may become a generator of 
hazardous waste and must handle that waste following all applicable 
requirements of 40 CFR part 262.


Sec.  267.117  How do I certify closure?

    Within 60 days of the completion of final closure of each unit 
under a part 270 subpart J standardized permit, you must submit to the 
Director, by registered mail, a certification that each hazardous waste 
management unit or facility, as applicable, has been closed following 
the specifications in the closure plan. Both you and an independent 
registered professional engineer must sign the certification. You must 
furnish documentation supporting the independent registered 
professional engineer's certification to the Director upon request 
until he releases you from the financial assurance requirements for 
closure under Sec.  267.143(i).

Subpart H--Financial Requirements


Sec.  267.140  Who must comply with this subpart, and briefly, what do 
they have to do?

    (a) The regulations in this subpart apply to owners and operators 
who treat or store hazardous waste under a standardized permit, except 
as provided in Sec.  267.1(b), or Sec.  267.140(d) below.
    (b) The owner or operator must:
    (1) Prepare a closure cost estimate as required in Sec.  267.142;
    (2) Demonstrate financial assurance for closure as required in 
Sec.  267.143; and
    (3) Demonstrate financial assurance for liability as required in 
Sec.  267.147.
    (c) The owner or operator must notify the Regional Administrator if 
the owner or operator is named as a debtor in a bankruptcy proceeding 
under Title 11 (Bankruptcy), U.S. Code (See also Sec.  267.148).
    (d) States and the Federal government are exempt from the 
requirements of this subpart.


Sec.  267.141  Definitions of terms as used in this subpart.

    (a) Closure plan means the plan for closure prepared in accordance 
with the requirements of Sec.  267.112.
    (b) Current closure cost estimate means the most recent of the 
estimates prepared in accordance with Sec.  267.142 (a), (b), and (c).

[[Page 53462]]

    (c) [Reserved]
    (d) Parent corporation means a corporation which directly owns at 
least 50 percent of the voting stock of the corporation which is the 
facility owner or operator; the latter corporation is deemed a 
``subsidiary'' of the parent corporation.
    (e) [Reserved]
    (f) The following terms are used in the specifications for the 
financial tests for closure and liability coverage. The definitions are 
intended to assist in the understanding of these regulations and are 
not intended to limit the meanings of terms in a way that conflicts 
with generally accepted accounting practices:
    Assets means all existing and all probable future economic benefits 
obtained or controlled by a particular entity.
    Current plugging and abandonment cost estimate means the most 
recent of the estimates prepared in accordance with Sec.  144.62(a), 
(b), and (c) of this chapter.
    Independently audited refers to an audit performed by an 
independent certified public accountant in accordance with generally 
accepted auditing standards.
    Liabilities means probable future sacrifices of economic benefits 
arising from present obligations to transfer assets or provide services 
to other entities in the future as a result of past transactions or 
events.
    Tangible net worth means the tangible assets that remain after 
deducting liabilities; such assets would not include intangibles such 
as goodwill and rights to patents or royalties.
    (g) In the liability insurance requirements, the terms bodily 
injury and property damage shall have the meanings given these terms by 
applicable State law. However, these terms do not include those 
liabilities which, consistent with standard industry practices, are 
excluded from coverage in liability policies for bodily injury and 
property damage. The Agency intends the meanings of other terms used in 
the liability insurance requirements to be consistent with their common 
meanings within the insurance industry. The definitions given below of 
several of the terms are intended to assist in the understanding of 
these regulations and are not intended to limit their meanings in a way 
that conflicts with general insurance industry usage.
    Accidental occurrence means an accident, including continuous or 
repeated exposure to conditions, which results in bodily injury or 
property damage neither expected nor intended from the standpoint of 
the insured.
    Legal defense costs means any expenses that an insurer incurs in 
defending against claims of third parties brought under the terms and 
conditions of an insurance policy.
    Sudden accidental occurrence means an occurrence which is not 
continuous or repeated in nature.
    (h) Substantial business relationship means the extent of a 
business relationship necessary under applicable State law to make a 
guarantee contract issued incident to that relationship valid and 
enforceable. A ``substantial business relationship'' must arise from a 
pattern of recent or ongoing business transactions, in addition to the 
guarantee itself, such that a currently existing business relationship 
between the guarantor and the owner or operator is demonstrated to the 
satisfaction of the applicable EPA Regional Administrator.


Sec.  267.142  Cost estimate for closure.

    (a) The owner or operator must have at the facility a detailed 
written estimate, in current dollars, of the cost of closing the 
facility in accordance with the requirements in Sec. Sec.  267.111 
through 267.115 and applicable closure requirements in Sec. Sec.  
267.176, 267.201, 267.1108.
    (1) The estimate must equal the cost of final closure at the point 
in the facility's active life when the extent and manner of its 
operation would make closure the most expensive, as indicated by the 
closure plan (see Sec.  267.112(b)); and
    (2) The closure cost estimate must be based on the costs to the 
owner or operator of hiring a third party to close the facility. A 
third party is a party who is neither a parent nor a subsidiary of the 
owner or operator. (See definition of parent corporation in Sec.  
267.141(d).) The owner or operator may use costs for on-site disposal 
if he can demonstrate that on-site disposal capacity will exist at all 
times over the life of the facility.
    (3) The closure cost estimate may not incorporate any salvage value 
that may be realized with the sale of hazardous wastes, or non-
hazardous wastes, facility structures or equipment, land, or other 
assets associated with the facility at the time of partial or final 
closure.
    (4) The owner or operator may not incorporate a zero cost for 
hazardous wastes, or non-hazardous wastes that might have economic 
value.
    (b) During the active life of the facility, the owner or operator 
must adjust the closure cost estimate for inflation within 60 days 
prior to the anniversary date of the establishment of the financial 
instrument(s) used to comply with Sec.  267.143. For owners and 
operators using the financial test or corporate guarantee, the closure 
cost estimate must be updated for inflation within 30 days after the 
close of the firm's fiscal year and before submission of updated 
information to the Regional Administrator as specified in Sec.  
267.143(f)(2)(iii). The adjustment may be made by recalculating the 
maximum costs of closure in current dollars, or by using an inflation 
factor derived from the most recent Implicit Price Deflator for Gross 
Domestic Product published by the U.S. Department of Commerce in its 
Survey of Current Business, as specified in paragraphs (b)(1) and (2) 
of this section. The inflation factor is the result of dividing the 
latest published annual Deflator by the Deflator for the previous year.
    (1) The first adjustment is made by multiplying the closure cost 
estimate by the inflation factor. The result is the adjusted closure 
cost estimate.
    (2) Subsequent adjustments are made by multiplying the latest 
adjusted closure cost estimate by the latest inflation factor.
    (c) During the active life of the facility, the owner or operator 
must revise the closure cost estimate no later than 30 days after the 
Regional Administrator has approved the request to modify the closure 
plan, if the change in the closure plan increases the cost of closure. 
The revised closure cost estimate must be adjusted for inflation as 
specified in Sec.  267.142(b).
    (d) The owner or operator must keep the following at the facility 
during the operating life of the facility: The latest closure cost 
estimate prepared in accordance with paragraphs (a) and (c) of this 
section and, when this estimate has been adjusted in accordance with 
paragraph (b) of this section, the latest adjusted closure cost 
estimate.


Sec.  267.143  Financial assurance for closure.

    The owner or operator must establish financial assurance for 
closure of each storage or treatment unit that he owns or operates. In 
establishing financial assurance for closure, the owner or operator 
must choose from the financial assurance mechanisms in paragraphs (a), 
(b), (c), (d), (e), (f), and (g) of this section. The owner or operator 
can also use a combination of mechanisms for a single facility if they 
meet the requirement in paragraph (h) of this section, or may use a 
single mechanism for multiple facilities as in paragraph (i) of this 
section. The Regional Administrator will release the owner or operator 
from the requirements of this section after the owner or operator meets 
the criteria under paragraph (j) of this section.

[[Page 53463]]

    (a) Closure Trust Fund. Owners and operators can use the ``closure 
trust fund,'' that is specified in 40 CFR 264.143(a)(1) and (2), and 
264.143(a)(6)-(11). For purposes of this paragraph, the following 
provisions also apply:
    (1) Payments into the trust fund for a new facility must be made 
annually by the owner or operator over the remaining operating life of 
the facility as estimated in the closure plan, or over 3 years, 
whichever period is shorter. This period of time is hereafter referred 
to as the ``pay-in period.''
    (2) For a new facility, the first payment into the closure trust 
fund must be made before the facility may accept the initial storage. A 
receipt from the trustee must be submitted by the owner or operator to 
the Regional Administrator before this initial storage of waste. The 
first payment must be at least equal to the current closure cost 
estimate, divided by the number of years in the pay-in period, except 
as provided in paragraph (h) of this section for multiple mechanisms. 
Subsequent payments must be made no later than 30 days after each 
anniversary date of the first payment. The owner or operator determines 
the amount of each subsequent payment by subtracting the current value 
of the trust fund from the current closure cost estimate, and dividing 
this difference by the number of years remaining in the pay-in period. 
Mathematically, the formula is

Next Payment = (Current Closure Estimate - Current Value of the 
Trust Fund) Divided by Years Remaining in the Pay-In Period.

    (3) The owner or operator of a facility existing on the effective 
date of this paragraph can establish a trust fund to meet this 
paragraph's financial assurance requirements. If the value of the trust 
fund is less than the current closure cost estimate when a final 
approval of the permit is granted for the facility, the owner or 
operator must pay the difference into the trust fund within 60 days.
    (4) The owner or operator may accelerate payments into the trust 
fund or deposit the full amount of the closure cost estimate when 
establishing the trust fund. However, he must maintain the value of the 
fund at no less than the value that the fund would have if annual 
payments were made as specified in paragraph (a)(2) or (a)(3) of this 
section.
    (5) The owner or operator must submit a trust agreement with the 
wording specified in 40 CFR 264.151(a)(1).
    (b) Surety Bond Guaranteeing Payment into a Closure Trust Fund. 
Owners and operators can use the ``surety bond guaranteeing payment 
into a closure trust fund,'' as specified in 40 CFR 264.143(b), 
including the use of the surety bond instrument specified at 40 CFR 
264.151(b), and the standby trust specified at 40 CFR 264.143(b)(3).
    (c) Surety Bond Guaranteeing Performance of Closure. Owners and 
operators can use the ``surety bond guaranteeing performance of 
closure,'' as specified in 40 CFR 264.143(c), the submission and use of 
the surety bond instrument specified at 40 CFR 264.151(c), and the 
standby trust specified at 40 CFR 264.143(c)(3).
    (d) Closure Letter of Credit. Owners and operators can use the 
``closure letter of credit'' specified in 40 CFR 264.143(d), the 
submission and use of the irrevocable letter of credit instrument 
specified in 40 CFR 264.151(d), and the standby trust specified in 40 
CFR 264.143(d)(3).
    (e) Closure Insurance. Owners and operators can use ``closure 
insurance,'' as specified in 40 CFR 264.143(e), utilizing the 
certificate of insurance for closure specified at 40 CFR 264.151(e).
    (f) Corporate financial test. An owner or operator that satisfies 
the requirements of this paragraph may demonstrate financial assurance 
up to the amount specified in this paragraph:
    (1) Financial component.
    (i) The owner or operator must satisfy one of the following three 
conditions:
    (A) A current rating for its senior unsecured debt of AAA, AA, A, 
or BBB as issued by Standard and Poor's or Aaa, Aa, A or Baa as issued 
by Moody's; or
    (B) A ratio of less than 1.5 comparing total liabilities to net 
worth; or
    (C) A ratio of greater than 0.10 comparing the sum of net income 
plus depreciation, depletion and amortization, minus $10 million, to 
total liabilities.
    (ii) The tangible net worth of the owner or operator must be 
greater than:
    (A) The sum of the current environmental obligations (see paragraph 
(f)(2)(i)(A)(1) of this section), including guarantees, covered by a 
financial test plus $10 million, except as provided in paragraph 
(f)(1)(ii)(B) of this section.
    (B) $10 million in tangible net worth plus the amount of any 
guarantees that have not been recognized as liabilities on the 
financial statements provided all of the environmental obligations (see 
paragraph (f)(2)(i)(A)(1) of this section) covered by a financial test 
are recognized as liabilities on the owner's or operator's audited 
financial statements, and subject to the approval of the Regional 
Administrator.
    (iii) The owner or operator must have assets located in the United 
States amounting to at least the sum of environmental obligations 
covered by a financial test as described in paragraph (f)(2)(i)(A)(1) 
of this section.
    (2) Recordkeeping and reporting requirements.
    (i) The owner or operator must submit the following items to the 
Regional Administrator:
    (A) A letter signed by the owner's or operator's chief financial 
officer that:
    (1) Lists all the applicable current types, amounts, and sums of 
environmental obligations covered by a financial test. These 
obligations include both obligations in the programs which EPA directly 
operates and obligations where EPA has delegated authority to a State 
or approved a State's program. These obligations include, but are not 
limited to:
    (i) Liability, closure, post-closure and corrective action cost 
estimates required for hazardous waste treatment, storage, and disposal 
facilities under 40 CFR 264.101, 264.142, 264.144, 264.147, 265.142, 
265.144, and 265.147;
    (ii) Cost estimates required for municipal solid waste management 
facilities under 40 CFR 258.71, 258.72, and 258.73;
    (iii) Current plugging cost estimates required for UIC facilities 
under 40 CFR 144.62;
    (iv) Cost estimates required for petroleum underground storage tank 
facilities under 40 CFR 280.93;
    (v) Cost estimates required for PCB storage facilities under 40 CFR 
761.65;
    (vi) Any financial assurance required under, or as part of an 
action undertaken under, the Comprehensive Environmental Response, 
Compensation, and Liability Act; and
    (vii) Any other environmental obligations that are assured through 
a financial test.
    (2) Provides evidence demonstrating that the firm meets the 
conditions of either paragraph (f)(1)(i)(A) or (f)(1)(i)(B) or 
(f)(1)(i)(C) of this section and paragraphs (f)(1)(ii) and (f)(1)(iii) 
of this section.
    (B) A copy of the independent certified public accountant's 
unqualified opinion of the owner's or operator's financial statements 
for the latest completed fiscal year. To be eligible to use the 
financial test, the owner's or operator's financial statements must 
receive an unqualified opinion from the independent certified public 
accountant. An adverse opinion, disclaimer of opinion, or other 
qualified opinion will be cause for disallowance, with the potential 
exception for qualified opinions provided in the next

[[Page 53464]]

sentence. The Regional Administrator may evaluate qualified opinions on 
a case-by-case basis and allow use of the financial test in cases where 
the Regional Administrator deems that the matters which form the basis 
for the qualification are insufficient to warrant disallowance of the 
test. If the Regional Administrator does not allow use of the test, the 
owner or operator must provide alternate financial assurance that meets 
the requirements of this section within 30 days after the notification 
of disallowance.
    (C) If the chief financial officer's letter providing evidence of 
financial assurance includes financial data showing that the owner or 
operator satisfies paragraph (f)(1)(i)(B) or (f)(1)(i)(C) of this 
section that are different from data in the audited financial 
statements referred to in paragraph (f)(2)(i)(B) of this section or any 
other audited financial statement or data filed with the SEC, then a 
special report from the owner's or operator's independent certified 
public accountant to the owner or operator is required. The special 
report shall be based upon an agreed upon procedures engagement in 
accordance with professional auditing standards and shall describe the 
procedures performed in comparing the data in the chief financial 
officer's letter derived from the independently audited, year-end 
financial statements for the latest fiscal year with the amounts in 
such financial statements, the findings of that comparison, and the 
reasons for any differences.
    (D) If the chief financial officer's letter provides a 
demonstration that the firm has assured for environmental obligations 
as provided in paragraph (f)(1)(ii)(B) of this section, then the letter 
shall include a report from the independent certified public accountant 
that verifies that all of the environmental obligations covered by a 
financial test have been recognized as liabilities on the audited 
financial statements, how these obligations have been measured and 
reported, and that the tangible net worth of the firm is at least $10 
million plus the amount of any guarantees provided.
    (ii) The owner or operator of a new facility must submit the items 
specified in paragraph (f)(2)(i) of this section to the Regional 
Administrator at least 60 days before placing waste in the facility.
    (iii) After the initial submission of items specified in paragraph 
(f)(2)(i) of this section, the owner or operator must send updated 
information to the Regional Administrator within 90 days following the 
close of the owner or operator's fiscal year. The Regional 
Administrator may provide up to an additional 45 days for an owner or 
operator who can demonstrate that 90 days is insufficient time to 
acquire audited financial statements. The updated information must 
consist of all items specified in paragraph (f)(2)(i) of this section.
    (iv) The owner or operator is no longer required to submit the 
items specified in this paragraph (f)(2) of this section or comply with 
the requirements of this paragraph (f) when:
    (A) The owner or operator substitutes alternate financial assurance 
as specified in this section that is not subject to these recordkeeping 
and reporting requirements; or
    (B) The Regional Administrator releases the owner or operator from 
the requirements of this section in accordance with paragraph (j) of 
this section.
    (v) An owner or operator who no longer meets the requirements of 
paragraph (f)(1) of this section cannot use the financial test to 
demonstrate financial assurance. Instead an owner or operator who no 
longer meets the requirements of paragraph (f)(1) of this section, 
must:
    (A) Send notice to the Regional Administrator of intent to 
establish alternate financial assurance as specified in this section. 
The owner or operator must send this notice by certified mail within 90 
days following the close the owner or operator's fiscal year for which 
the year-end financial data show that the owner or operator no longer 
meets the requirements of this section.
    (B) Provide alternative financial assurance within 120 days after 
the end of such fiscal year.
    (vi) The Regional Administrator may, based on a reasonable belief 
that the owner or operator may no longer meet the requirements of 
paragraph (f)(1) of this section, require at any time the owner or 
operator to provide reports of its financial condition in addition to 
or including current financial test documentation as specified in 
paragraph (f)(2) of this section. If the Regional Administrator finds 
that the owner or operator no longer meets the requirements of 
paragraph (f)(1) of this section, the owner or operator must provide 
alternate financial assurance that meets the requirements of this 
section.
    (g) Corporate Guarantee.
    (1) An owner or operator may meet the requirements of this section 
by obtaining a written guarantee. The guarantor must be the direct or 
higher-tier parent corporation of the owner or operator, a firm whose 
parent corporation is also the parent corporation of the owner or 
operator, or a firm with a ``substantial business relationship'' with 
the owner or operator. The guarantor must meet the requirements for 
owners or operators in paragraph (f) of this section and must comply 
with the terms of the guarantee. The wording of the guarantee must be 
identical to the wording in 40 CFR 264.151(h). The certified copy of 
the guarantee must accompany the letter from the guarantor's chief 
financial officer and accountants' opinions. If the guarantor's parent 
corporation is also the parent corporation of the owner or operator, 
the letter from the guarantor's chief financial officer must describe 
the value received in consideration of the guarantee. If the guarantor 
is a firm with a ``substantial business relationship'' with the owner 
or operator, this letter must describe this ``substantial business 
relationship'' and the value received in consideration of the 
guarantee.
    (2) For a new facility, the guarantee must be effective and the 
guarantor must submit the items in paragraph (g)(1) of this section and 
the items specified in paragraph (f)(2)(i) of this section to the 
Regional Administrator at least 60 days before the owner or operator 
places waste in the facility.
    (3) The terms of the guarantee must provide that:
    (i) If the owner or operator fails to perform closure at a facility 
covered by the guarantee, the guarantor will:
    (A) Perform, or pay a third party to perform closure (performance 
guarantee); or
    (B) Establish a fully funded trust fund as specified in paragraph 
(a) of this section in the name of the owner or operator (payment 
guarantee).
    (ii) The guarantee will remain in force for as long as the owner or 
operator must comply with the applicable financial assurance 
requirements of this subpart unless the guarantor sends prior notice of 
cancellation by certified mail to the owner or operator and to the 
Regional Administrator. Cancellation may not occur, however, during the 
120 days beginning on the date of receipt of the notice of cancellation 
by both the owner or operator and the Regional Administrator as 
evidenced by the return receipts.
    (iii) If notice of cancellation is given, the owner or operator 
must, within 90 days following receipt of the cancellation notice by 
the owner or operator and the Regional Administrator, obtain alternate 
financial assurance, and submit documentation for that alternate 
financial assurance to the Regional Administrator. If the owner or 
operator fails to provide alternate financial assurance and obtain the

[[Page 53465]]

written approval of such alternative assurance from the Regional 
Administrator within the 90-day period, the guarantor must provide that 
alternate assurance in the name of the owner or operator and submit the 
necessary documentation for the alternative assurance to the Regional 
Administrator within 120 days of the cancellation notice.
    (4) If a corporate guarantor no longer meets the requirements of 
paragraph (f)(1) of this section, the owner or operator must, within 90 
days, obtain alternative assurance, and submit the assurance to the 
Regional Administrator for approval. If the owner or operator fails to 
provide alternate financial assurance within the 90-day period, the 
guarantor must provide that alternate assurance within the next 30 
days, and submit it to the Regional Administrator for approval.
    (5) The guarantor is no longer required to meet the requirements of 
this paragraph (g) when:
    (i) The owner or operator substitutes alternate financial assurance 
as specified in this section; or
    (ii) The owner or operator is released from the requirements of 
this section in accordance with paragraph (j) of this section.
    (h) Use of Multiple Financial Mechanisms. An owner or operator may 
use more than one mechanism at a particular facility to satisfy the 
requirements of this section. The acceptable mechanisms are trust 
funds, surety bonds guaranteeing payment into a trust fund, letters of 
credit, insurance, the financial test, and the guarantee, except owners 
or operators cannot combine the financial test with the guarantee. The 
mechanisms must be as specified in paragraphs (a), (b), (d), (e), (f), 
and (g) respectively of this section, except it is the combination of 
mechanisms rather than a single mechanism that must provide assurance 
for an amount at least equal to the cost estimate. If an owner or 
operator uses a trust fund in combination with a surety bond or letter 
of credit, he may use the trust fund as the standby trust for the other 
mechanisms. A single trust fund can be established for two or more 
mechanisms. The Regional Administrator may use any or all of the 
mechanisms to provide for closure of the facility.
    (i) Use of a financial mechanism for multiple facilities. An owner 
or operator may use a financial mechanism for multiple facilities, as 
specified in Sec.  264.143(h) of this chapter.
    (j) Release of the owner or operator from the requirements of this 
section. Within 60 days after receiving certifications from the owner 
or operator and an independent registered professional engineer that 
final closure has been completed in accordance with the approved 
closure plan, the Regional Administrator will notify the owner or 
operator in writing that the owner or operator is no longer required by 
this section to maintain financial assurance for final closure of the 
facility, unless the Regional Administrator has reason to believe that 
final closure has not been completed in accordance with the approved 
closure plan. The Regional Administrator shall provide the owner or 
operator with a detailed written statement of any such reasons to 
believe that closure has not been conducted in accordance with the 
approved closure plan.


Sec.  267.144-267.146  [Reserved]


Sec.  267.147  Liability requirements.

    (a) Coverage for sudden accidental occurrences. An owner or 
operator of a hazardous waste treatment or storage facility, or a group 
of such facilities, must demonstrate financial responsibility for 
bodily injury and property damage to third parties caused by sudden 
accidental occurrences arising from operations of the facility or group 
of facilities. The owner or operator must have and maintain liability 
coverage for sudden accidental occurrences in the amount of at least $1 
million per occurrence with an annual aggregate of at least $2 million, 
exclusive of legal defense costs. This liability coverage may be 
demonstrated as specified in paragraphs (a)(1) through (a)(7) of this 
section:
    (1) Trust fund for liability coverage. An owner or operator may 
meet the requirements of this section by obtaining a trust fund for 
liability coverage as specified in 40 CFR 264.147(j).
    (2) Surety bond for liability coverage. An owner or operator may 
meet the requirements of this section by obtaining a surety bond for 
liability coverage as specified in 40 CFR 264.147(i).
    (3) Letter of credit for liability coverage. An owner or operator 
may meet the requirements of this section by obtaining a letter of 
credit for liability coverage as specified in 40 CFR 264.147(h).
    (4) Insurance for liability coverage. An owner or operator may meet 
the requirements of this section by obtaining liability insurance as 
specified in 40 CFR 264.147(a)(1).
    (5) Financial test for liability coverage. An owner or operator may 
meet the requirements of this section by passing a financial test as 
specified in paragraph (f) of this section.
    (6) Guarantee for liability coverage. An owner or operator may meet 
the requirements of this section by obtaining a guarantee as specified 
in paragraph (g) of this section.
    (7) Combination of mechanisms. An owner or operator may demonstrate 
the required liability coverage through the use of combinations of 
mechanisms as allowed by 40 CFR 264.147(a)(6).
    (8) An owner or operator shall notify the Regional Administrator in 
writing within 30 days whenever:
    (i) A claim results in a reduction in the amount of financial 
assurance for liability coverage provided by a financial instrument 
authorized in paragraphs (a)(1) through (a)(7) of this section; or
    (ii) A Certification of Valid Claim for bodily injury or property 
damages caused by a sudden accidental occurrence arising from the 
operation of a hazardous waste treatment, storage, or disposal facility 
is entered between the owner or operator and third-party claimant for 
liability coverage under paragraphs (a)(1) through (a)(7) of this 
section; or
    (iii) A final court order establishing a judgment for bodily injury 
or property damage caused by a sudden accidental occurrence arising 
from the operation of a hazardous waste treatment, storage, or disposal 
facility is issued against the owner or operator or an instrument that 
is providing financial assurance for liability coverage under 
paragraphs (a)(1) through (a)(7) of this section.
    (b)-(d) [Reserved]
    (e) Period of coverage. Within 60 days after receiving 
certifications from the owner or operator and an independent registered 
professional engineer that final closure has been completed in 
accordance with the approved closure plan, the Regional Administrator 
will notify the owner or operator in writing that he is no longer 
required by this section to maintain liability coverage from that 
facility, unless the Regional Administrator has reason to believe that 
closure has not been in accordance with the approved closure plan.
    (f) Financial test for Liability Coverage. An owner or operator 
that satisfies the requirements of this paragraph (f) may demonstrate 
financial assurance for liability up to the amount specified in this 
paragraph (f):
    (1) Financial component.
    (i) If using the financial test for only liability coverage, the 
owner or operator must have tangible net worth greater than the sum of 
the liability coverage to be demonstrated by this test plus $10 
million.

[[Page 53466]]

    (ii) The owner or operator must have assets located in the United 
States amounting to at least the amount of liability covered by this 
financial test.
    (iii) An owner or operator who is demonstrating coverage for 
liability and any other environmental obligations, including closure 
under Sec.  267.143(f), through a financial test must meet the 
requirements of Sec.  267.143(f).
    (2) Recordkeeping and reporting requirements.
    (i) The owner or operator must submit the following items to the 
Regional Administrator:
    (A) A letter signed by the owner's or operator's chief financial 
officer that provides evidence demonstrating that the firm meets the 
conditions of paragraphs (f)(1)(i) and (f)(1)(ii) of this section. If 
the firm is providing only liability coverage through a financial test 
for a facility or facilities with a permit under Sec.  267, the letter 
should use the wording in Sec.  267.151(b). If the firm is providing 
only liability coverage through a financial test for facilities 
regulated under Sec.  267 and also Sec.  264 or Sec.  265, it should 
use the letter in Sec.  264.151(g). If the firm is providing liability 
coverage through a financial test for a facility or facilities with a 
permit under Sec.  267, and it assures closure costs or any other 
environmental obligations through a financial test, it must use the 
letter in Sec.  267.151(a) for the facilities issued a permit under 
Sec.  267.
    (B) A copy of the independent certified public accountant's 
unqualified opinion of the owner's or operator's financial statements 
for the latest completed fiscal year. To be eligible to use the 
financial test, the owner's or operator's financial statements must 
receive an unqualified opinion from the independent certified public 
accountant. An adverse opinion, disclaimer of opinion, or other 
qualified opinion will be cause for disallowance, with the potential 
exception for qualified opinions provided in the next sentence. The 
Regional Administrator may evaluate qualified opinions on a case-by-
case basis and allow use of the financial test in cases where the 
Regional Administrator deems that the matters which form the basis for 
the qualification are insufficient to warrant disallowance of the test. 
If the Regional Administrator does not allow use of the test, the owner 
or operator must provide alternate financial assurance that meets the 
requirements of this section (Sec.  267.147) within 30 days after the 
notification of disallowance.
    (C) If the chief financial officer's letter providing evidence of 
financial assurance includes financial data showing that the owner or 
operator satisfies paragraphs (f)(1)(i) and (ii) of this section that 
are different from data in the audited financial statements referred to 
in paragraph (f)(2)(i)(B) of this section or any other audited 
financial statement or data filed with the SEC, then a special report 
from the owner's or operator's independent certified public accountant 
to the owner or operator is required. The special report shall be based 
upon an agreed upon procedures engagement in accordance with 
professional auditing standards and shall describe the procedures 
performed in comparing the data in the chief financial officer's letter 
derived from the independently audited, year-end financial statements 
for the latest fiscal year with the amounts in such financial 
statements, the findings of that comparison, and the reasons for any 
differences.
    (ii) The owner or operator of a new facility must submit the items 
specified in paragraph (f)(2)(i) of this section to the Regional 
Administrator at least 60 days before placing waste in the facility.
    (iii) After the initial submission of items specified in paragraph 
(f)(2)(i) of this section, the owner or operator must send updated 
information to the Regional Administrator within 90 days following the 
close of the owner or operator's fiscal year. The Regional 
Administrator may provide up to an additional 45 days for an owner or 
operator who can demonstrate that 90 days is insufficient time to 
acquire audited financial statements. The updated information must 
consist of all items specified in paragraph (f)(2)(i) of this section.
    (iv) The owner or operator is no longer required to submit the 
items specified in this paragraph (f)(2) or comply with the 
requirements of this paragraph (f) when:
    (A) The owner or operator substitutes alternate financial assurance 
as specified in this section that is not subject to these recordkeeping 
and reporting requirements; or
    (B) The Regional Administrator releases the owner or operator from 
the requirements of this section in accordance with paragraph (j) of 
this section.
    (v) An owner or operator who no longer meets the requirements of 
paragraph (f)(1) of this section cannot use the financial test to 
demonstrate financial assurance. An owner or operator who no longer 
meets the requirements of paragraph (f)(1) of this section, must:
    (A) Send notice to the Regional Administrator of intent to 
establish alternate financial assurance as specified in this section. 
The owner or operator must send this notice by certified mail within 90 
days following the close of the owner or operator's fiscal year for 
which the year-end financial data show that the owner or operator no 
longer meets the requirements of this section.
    (B) Provide alternative financial assurance within 120 days after 
the end of such fiscal year.
    (vi) The Regional Administrator may, based on a reasonable belief 
that the owner or operator may no longer meet the requirements of 
paragraph (f)(1) of this section, require at any time the owner or 
operator to provide reports of its financial condition in addition to 
or including current financial test documentation as specified in 
paragraph (f)(2) of this section. If the Regional Administrator finds 
that the owner or operator no longer meets the requirements of 
paragraph (f)(1) of this section, the owner or operator must provide 
alternate financial assurance that meets the requirements of this 
section.
    (g) Guarantee for liability coverage. (1) Subject to paragraph 
(g)(2) of this section, an owner or operator may meet the requirements 
of this section by obtaining a written guarantee, hereinafter referred 
to as ``guarantee.'' The guarantor must be the direct or higher-tier 
parent corporation of the owner or operator, a firm whose parent 
corporation is also the parent corporation of the owner or operator, or 
a firm with a ``substantial business relationship'' with the owner or 
operator. The guarantor must meet the requirements for owners or 
operators in paragraphs (f)(1) through (f)(3) of this section. The 
wording of the guarantee must be identical to the wording specified in 
40 CFR 264.151(h)(2). A certified copy of the guarantee must accompany 
the items sent to the Regional Administrator as specified in paragraph 
(f)(2) of this section. One of these items must be the letter from the 
guarantor's chief financial officer. If the guarantor's parent 
corporation is also the parent corporation of the owner or operator, 
this letter must describe the value received in consideration of the 
guarantee. If the guarantor is a firm with a ``substantial business 
relationship'' with the owner or operator, this letter must describe 
this ``substantial business relationship'' and the value received in 
consideration of the guarantee.
    (i) If the owner or operator fails to satisfy a judgment based on a 
determination of liability for bodily injury or property damage to 
third parties caused by sudden accidental occurrences arising from the 
operation

[[Page 53467]]

of facilities covered by this corporate guarantee, or fails to pay an 
amount agreed to in settlement of claims arising from or alleged to 
arise from such injury or damage, the guarantor will do so up to the 
limits of coverage.
    (ii) [Reserved]
    (2)(i) In the case of corporations incorporated in the United 
States, a guarantee may be used to satisfy the requirements of this 
section only if the Attorneys General or Insurance Commissioners of the 
State in which the guarantor is incorporated, and each State in which a 
facility covered by the guarantee is located, have submitted a written 
statement to EPA that a guarantee executed as described in this section 
and 40 CFR 264.151(h)(2) is a legally valid and enforceable obligation 
in that State.
    (ii) In the case of corporations incorporated outside the United 
States, a guarantee may be used to satisfy the requirements of this 
section only if:
    (A) The non-U.S. corporation has identified a registered agent for 
service of process in each State in which a facility covered by the 
guarantee is located and in the State in which it has its principal 
place of business; and
    (B) The Attorney General or Insurance Commissioner of each State in 
which a facility covered by the guarantee is located and the State in 
which the guarantor corporation has its principal place of business, 
has submitted a written statement to EPA that a guarantee executed as 
described in this section and 40 CFR 264.151(h)(2) is a legally valid 
and enforceable obligation in that State.


Sec.  267.148  Incapacity of owners or operators, guarantors, or 
financial institutions.

    (a) An owner or operator must notify the Regional Administrator by 
certified mail of the commencement of a voluntary or involuntary 
proceeding under Title 11 (Bankruptcy), U.S. Code, naming the owner or 
operator as debtor, within 10 days after commencement of the 
proceeding. A guarantor of a corporate guarantee as specified in 
Sec. Sec.  267.143(g) and 267.147 (g) must make such a notification if 
he is named as debtor, as required under the terms of the corporate 
guarantee (Sec.  264.151(h)).
    (b) An owner or operator who fulfills the requirements of Sec.  
267.143 or Sec.  267.147 by obtaining a trust fund, surety bond, letter 
of credit, or insurance policy will be deemed to be without the 
required financial assurance or liability coverage in the event of 
bankruptcy of the trustee or issuing institution, or a suspension or 
revocation of the authority of the trustee institution to act as 
trustee or of the institution issuing the surety bond, letter of 
credit, or insurance policy to issue such instruments. The owner or 
operator must establish other financial assurance or liability coverage 
within 60 days after such an event.


Sec.  267.149  [Reserved]


Sec.  267.150  State assumption of responsibility.

    (a) If a State either assumes legal responsibility for an owner's 
or operator's compliance with the closure care or liability 
requirements of this part or assures that funds will be available from 
State sources to cover those requirements, the owner or operator will 
be in compliance with the requirements of Sec.  267.143 or Sec.  
267.147 if the Regional Administrator determines that the State's 
assumption of responsibility is at least equivalent to the financial 
mechanisms specified in this subpart. The Regional Administrator will 
evaluate the equivalency of State guarantees principally in terms of: 
Certainty of the availability of funds for the required closure care 
activities or liability coverage; and the amount of funds that will be 
made available. The Regional Administrator may also consider other 
factors as he deems appropriate. The owner or operator must submit to 
the Regional Administrator a letter from the State describing the 
nature of the State's assumption of responsibility together with a 
letter from the owner or operator requesting that the State's 
assumption of responsibility be considered acceptable for meeting the 
requirements of this subpart. The letter from the State must include, 
or have attached to it, the following information: The facility's EPA 
Identification Number, name, and address, and the amount of funds for 
closure care or liability coverage that are guaranteed by the State. 
The Regional Administrator will notify the owner or operator of his 
determination regarding the acceptability of the State's guarantee in 
lieu of financial mechanisms specified in this subpart. The Regional 
Administrator may require the owner or operator to submit additional 
information as is deemed necessary to make this determination. Pending 
this determination, the owner or operator will be deemed to be in 
compliance with the requirements of Sec.  267.143 or Sec.  267.147, as 
applicable.
    (b) If a State's assumption of responsibility is found acceptable 
as specified in paragraph (a) of this section except for the amount of 
funds available, the owner or operator may satisfy the requirements of 
this subpart by use of both the State's assurance and additional 
financial mechanisms as specified in this subpart. The amount of funds 
available through the State and Federal mechanisms must at least equal 
the amount required by this subpart.


Sec.  267.151  Wording of the instruments.

    (a) The chief financial officer of an owner or operator of a 
facility with a standardized permit who uses a financial test to 
demonstrate financial assurance for that facility must complete a 
letter as specified in Sec.  267.143(f) of this chapter. The letter 
must be worded as follows, except that instructions in brackets are to 
be replaced with the relevant information and the brackets deleted:

    I am the chief financial officer of [name and address of firm]. 
This letter is in support of this firm's use of the financial test 
to demonstrate financial assurance for closure costs, as specified 
in [insert ``subpart H of 40 CFR part 267'' or the citation to the 
corresponding state regulation]. This firm qualifies for the 
financial test on the basis of having [insert ``a current rating for 
its senior unsecured debt of AAA, AA, A, or BBB as issued by 
Standard and Poor's or Aaa, Aa, A or Baa as issued by Moody's'' or 
``a ratio of less than 1.50 comparing total liabilities to net 
worth'' or ``a ratio of greater than 0.10 comparing the sum of net 
income plus depreciation, depletion and amortization, minus $10 
million, to total liabilities.'']
    This firm [insert ``is required'' or ``is not required''] to 
file a Form 10K with the Securities and Exchange Commission (SEC) 
for the latest fiscal year.
    The fiscal year of this firm ends on [month, day]. The figures 
for the following items marked with an asterisk are derived from 
this firm's independently audited, year-end financial statements for 
the latest completed fiscal year, ended [date].
[If this firm qualifies on the basis of its bond rating fill in the 
requested information: ``This firm has a rating of its senior 
unsecured debt of'' [insert the bond rating] ``from'' [insert 
``Standard and Poor's'' or ``Moody's'']. Complete Line 1. Total 
Liabilities below and then skip the remaining questions in the next 
section and resume completing the form at the section entitled 
Obligations Covered by a Financial Test or Corporate Guarantee.]

[If this firm qualifies for the financial test on the basis of its 
ratio of liabilities to net worth, or sum of income, depreciation, 
depletion, and amortization to net worth, please complete the 
following section.]

 
 
 
*1. Total Liabilities................................        $----------
 
*2. Net Worth........................................        $----------
 
*3. Net Income.......................................        $----------
 
*4. Depreciation.....................................        $----------
 
*5. Depletion (if applicable)........................        $----------
 
*6. Amortization.....................................        $----------
 
*7. Sum of Lines 3., 4., 5. & 6......................        $----------
 
 



[[Page 53468]]

[If the above figures are taken directly from the most recent 
audited financial statements for this firm insert ``The above 
figures are taken directly from the most recent audited financial 
statements for this firm.'' If they are not, insert ``The following 
items are not taken directly from the firms most recent audited 
financial statements'' [insert the numbers of the items and attach 
an explanation of how they were derived.]

[Complete the following calculations]

 
 
 
8. Line 1. / Line 2. =...............................         ----------
 
9. Line 7. / Line 1. =...............................         ----------
 
Is Line 8. less than 1.5?............................    ---- Yes ----No
 
Is Line 9 greater than 0.10?.........................    ---- Yes ----No
 

[If you did not answer Yes to either of these two questions, you 
cannot use the financial test and need not complete this letter. 
Instead, you must notify the permitting authority for the facility 
that you intend to establish alternate financial assurance as 
specified in 40 CFR 267.143. The owner or operator must send this 
notice by certified mail within 90 days following the close of the 
owner or operator's fiscal year for which the year-end financial 
data show that the owner or operator no longer meets the 
requirements of this section. The owner or operator must also 
provide alternative financial assurance within 120 days after the 
end of such fiscal year.]

Obligations Covered by a Financial Test or Corporate Guarantee

[On the following lines list all obligations that are covered by a 
financial test or a corporate guarantee extended by your firm. You 
may add additional lines and leave blank entries that do not apply 
to your situation.]

 
                                                                                                                                  Post-      Corrective
                           Hazardous Waste Facility Name and ID                                    State           Closure       Closure       Action
 
----------------------------------------------------------------------                             ----------     $--------     $--------   $----------
 
----------------------------------------------------------------------                             ----------      --------      --------    ----------
 
    Hazardous Waste Third Party Liability                                                   ..................  ............  ............  $----------
 


 
                                                                                                                                  Post-      Corrective
                                Municipal Waste Facilities                                         State           Closure       Closure       Action
 
----------------------------------------------------------------------                             ----------     $--------     $--------   $----------
 
----------------------------------------------------------------------                             ----------      --------      --------    ----------
 


 
                                                                                                                                              Plugging
                               Underground Injection Control                                       State                                       action
 
                                                                                                   ----------   ............  ............    $--------
 
Petroleum Underground Storage Tanks                                                         ..................  ............  ............     --------
 
PCB Storage Facility Name and ID                                                                        State   ............  ............             Closure
 
                                                                                                   ----------   ............  ............    $--------
 

    Any financial assurance required under, or as part of an action 
undertaken under, the Comprehensive Environmental Response, 
Compensation, and Liability Act.

 
                  Site name                       State        Amount
 
--------------------------------------------   ----------   $----------
 -------------------------
 

    Any other environmental obligations that are assured through a 
financial test.

 
                         Name                                Amount
 
----------------                                             $----------
 


*10. Total of all amounts                                    $----------
 
*11. Line 10 + $10,000,000 =                                 $----------
 
*12. Total Assets                                            $----------
 
*13. Intangible Assets                                       $----------
 
*14. Tangible Assets (Line 12.-Line 13)                      $----------
 
*15. Tangible Net Worth (Line 14.-Line 1.)                   $----------
 
*16. Assets in the United States                             $----------
 
Is Line 15 greater than Line 11?                          ----Yes ----No
Is Line 16 no less than Line 10?                          ----Yes ----No
 

[You must be able to answer Yes to both these questions to use the 
financial test for this facility.]

    I hereby certify that the wording of this letter is identical to 
the wording specified in 40 CFR 267.151 as such regulations were 
constituted on the date shown immediately below.

[Signature]------------------------------------------------------------

[Name]-----------------------------------------------------------------

[Title]----------------------------------------------------------------

[Date]-----------------------------------------------------------------

[After completion, a signed copy of the form must be sent to the 
permitting authority of the state or territory where the facility is 
located. In addition, a signed copy must be sent to every authority 
who (1) requires a demonstration through a financial test for each 
of the other obligations in the letter that are assured through a 
financial test, or (2) accepts a guarantee for an obligation listed 
in this letter.]

    (b)The chief financial officer of an owner or operator of a 
facility with a standardized permit who use a financial test to 
demonstrate financial assurance only for third party liability for that 
(or other standardized permit) facility(ies) must complete a letter as 
specified in Section 267.147(f) of this chapter. The letter must be 
worded as follows, except that instructions in brackets are to be 
replaced with the relevant information and the brackets deleted:

    I am the chief financial officer of [name and address of firm]. 
This letter is in support of this firm's use of the financial test 
to demonstrate financial assurance for third party liability, as 
specified in [insert ``subpart

[[Page 53469]]

H of 40 CFR part 267'' or the citation to the corresponding state 
regulation]. This firm qualifies for the financial test on the basis 
of having tangible net worth of at least $10 million more than the 
amount of liability coverage and assets in the United States of at 
least the amount of liability coverage.
    This firm [insert ``is required'' or ``is not required''] to 
file a Form 10K with the Securities and Exchange Commission (SEC) 
for the latest fiscal year.
    The fiscal year of this firm ends on [month, day]. The figures 
for the following items marked with an asterisk are derived from 
this firm's independently audited, year-end financial statements for 
the latest completed fiscal year, ended [date].

[Please complete the following section.]

 
 
 
*1. Total Assets.....................................        $----------
 
*2. Intangible Assets................................        $----------
 
*3. Tangible Assets (Line 1-Line 2)..................        $----------
 
*4. Total Liabilities................................        $----------
 
 5. Tangible Net Worth (Line 3-Line 4)...............        $----------
 
*6. Assets in the United States......................        $----------
 
 7. Amount of liability coverage.....................        $----------
 
Is Line 5 At least $10 million greater than Line 7?..    ----Yes ---- No
Is Line 6 at least equal to Line 7?..................    ----Yes ---- No
 

[You must be able to answer Yes to both these questions to use the 
financial test for this facility.]

    I hereby certify that the wording of this letter is identical to 
the wording specified in 40 CFR 267.151 as such regulations were 
constituted on the date shown immediately below.

[Signature]------------------------------------------------------------

[Name]-----------------------------------------------------------------

[Title]----------------------------------------------------------------

[Date]-----------------------------------------------------------------

[After completion, a signed copy of the form must be sent to the 
permitting authority of the state or territory where the 
facility(ies) is(are) located.]

Subpart I--Use and Management of Containers


Sec.  267.170  Does this subpart apply to me?

    This subpart applies to you if you own or operate a facility that 
treats or stores hazardous waste in containers under a 40 CFR part 270 
subpart J standardized permit, except as provided in Sec.  267.1(b).


Sec.  267.171  What standards apply to the containers?

    Standards apply to the condition of the containers, to the 
compatibility of waste with the containers, and to the management of 
the containers.
    (a) Condition of containers. If a container holding hazardous waste 
is not in good condition (for example, it exhibits severe rusting or 
apparent structural defects) or if it begins to leak, you must either:
    (1) Transfer the hazardous waste from this container to a container 
that is in good condition; or
    (2) Manage the waste in some other way that complies with the 
requirements of this part.
    (b) Compatibility of waste with containers. To ensure that the 
ability of the container to contain the waste is not impaired, you must 
use a container made of or lined with materials that are compatible and 
will not react with the hazardous waste to be stored.
    (c) Management of containers. (1) You must always keep a container 
holding hazardous waste closed during storage, except when you add or 
remove waste.
    (2) You must never open, handle, or store a container holding 
hazardous waste in a manner that may rupture the container or cause it 
to leak.


Sec.  267.172  What are the inspection requirements?

    At least weekly, you must inspect areas where you store containers, 
looking for leaking containers and for deterioration of containers and 
the containment system caused by corrosion or other factors.


Sec.  267.173  What standards apply to the container storage areas?

    (a) You must design and operate a containment system for your 
container storage areas according to the requirements in paragraph (b) 
of this section, except as otherwise provided by paragraph (c) of this 
section.
    (b) The design and operating requirements for a containment system 
are:
    (1) A base must underlie the containers that is free of cracks or 
gaps and is sufficiently impervious to contain leaks, spills, and 
accumulated precipitation until the collected material is detected and 
removed.
    (2) The base must be sloped or the containment system, must be 
otherwise designed and operated to drain and remove liquids resulting 
from leaks, spills, or precipitation, unless the containers are 
elevated or are otherwise protected from contact with accumulated 
liquids.
    (3) The containment system must have sufficient capacity to contain 
10% of the volume of containers, or the volume of the largest 
container, whichever is greater. This requirement does not apply to 
containers that do not contain free liquids.
    (4) You must prevent run-on into the containment system unless the 
collection system has sufficient excess capacity, in addition to that 
required in paragraph (b)(3) of this section, to contain the liquid.
    (5) You must remove any spilled or leaked waste and accumulated 
precipitation from the sump or collection area as promptly as is 
necessary to prevent overflow of the collection system.
    (c) Except as provided in paragraph (d) of this section, you do not 
need a containment system as defined in paragraph (b) of this section 
for storage areas that store containers holding only wastes with no 
free liquids, if:
    (1) The storage area is sloped or is otherwise designed and 
operated to drain and remove liquid resulting from precipitation; or
    (2) The containers are elevated or are otherwise protected from 
contact with accumulated liquid.
    (d) You must have a containment system defined by paragraph (b) of 
this section for storage areas that store containers holding FO20, 
FO21, FO22, FO23, FO26, and FO27 wastes, even if the wastes do not 
contain free liquids.


Sec.  267.174  What special requirements must I meet for ignitable or 
reactive waste?

    You must locate containers holding ignitable or reactive waste at 
least 15 meters (50 feet) from your facility property line. You must 
also follow the general requirements for ignitable or reactive wastes 
that are specified in Sec.  267.17(a).


Sec.  267.175  What special requirements must I meet for incompatible 
wastes?

    (a) You must not place incompatible wastes, or incompatible wastes 
and materials (see appendix V to 40 CFR part 264 for examples), in the 
same container, unless you comply with Sec.  267.17(b).
    (b) You must not place hazardous waste in an unwashed container 
that previously held an incompatible waste or material.
    (c) You must separate a storage container holding a hazardous waste 
that is incompatible with any waste or with other materials stored 
nearby in other containers, piles, open tanks, or surface impoundments 
from the other materials, or protect the containers by means of a dike, 
berm, wall, or other device.


Sec.  267.176  What must I do when I want to stop using the containers?

    You must remove all hazardous waste and hazardous waste residues 
from the

[[Page 53470]]

containment system. You must decontaminate or remove remaining 
containers, liners, bases, and soil containing, or contaminated with, 
hazardous waste or hazardous waste residues.


Sec.  267.177  What air emission standards apply?

    You must manage all hazardous waste placed in a container according 
to the requirements of subparts AA, BB, and CC of 40 CFR part 264. 
Under a standardized permit, the following control devices are 
permissible: Thermal vapor incinerator, catalytic vapor incinerator, 
flame, boiler, process heater, condenser, and carbon absorption unit.

Subpart J--Tank Systems


Sec.  267.190  Does this subpart apply to me?

    This subpart applies to you if you own or operate a facility that 
treats or stores hazardous waste in above-ground or on-ground tanks 
under a 40 CFR part 270 subpart J standardized permit, except as 
provided in Sec.  267.1(b).
    (a) You do not have to meet the secondary containment requirements 
in Sec.  267.195 if your tank systems do not contain free liquids and 
are situated inside a building with an impermeable floor. You must 
demonstrate the absence or presence of free liquids in the stored/
treated waste, using Method 9095B (Paint Filter Liquids Test) as 
described in ``Test Methods for Evaluating Solid Waste, Physical/
Chemical Methods,'' EPA Publication SW-846, as incorporated by 
reference in 40 CFR 260.11.
    (b) You do not have to meet the secondary containment requirements 
of Sec.  267.195(a) if your tank system, including sumps, as defined in 
40 CFR 260.10, is part of a secondary containment system to collect or 
contain releases of hazardous wastes.


Sec.  267.191  What are the required design and construction standards 
for new tank systems or components?

    You must ensure that the foundation, structural support, seams, 
connections, and pressure controls (if applicable) are adequately 
designed and that the tank system has sufficient structural strength, 
compatibility with the waste(s) to be stored or treated, and corrosion 
protection to ensure that it will not collapse, rupture, or fail. You 
must obtain a written assessment, reviewed and certified by an 
independent, qualified registered professional engineer, following 40 
CFR 270.11(d), attesting that the tank system has sufficient structural 
integrity and is acceptable for the storing and treating of hazardous 
waste. This assessment must include, at a minimum, the following 
information:
    (a) Design standard(s) for the construction of tank(s) and/or the 
ancillary equipment.
    (b) Hazardous characteristics of the waste(s) to be handled.
    (c) For new tank systems or components in which the external shell 
of a metal tank or any external metal component of the tank system will 
be in contact with the soil or with water, a determination by a 
corrosion expert of:
    (1) Factors affecting the potential for corrosion, such as:
    (i) Soil moisture content.
    (ii) Soil pH.
    (iii) Soil sulfides level.
    (iv) Soil resistivity.
    (v) Structure to soil potential.
    (vi) Existence of stray electric current.
    (vii) Existing corrosion-protection measures (for example, coating, 
cathodic protection).
    (2) The type and degree of external corrosion protection needed to 
ensure the integrity of the tank system during the use of the tank 
system or component, consisting of one or more of the following:
    (i) Corrosion-resistant materials of construction such as special 
alloys, fiberglass reinforced plastic, etc.
    (ii) Corrosion-resistant coating (such as epoxy, fiberglass, etc.) 
with cathodic protection (for example, impressed current or sacrificial 
anodes) and
    (iii) Electrical isolation devices such as insulating joints, 
flanges, etc.
    (d) Design considerations to ensure that:
    (1) Tank foundations will maintain the load of a full tank.
    (2) Tank systems will be anchored to prevent flotation or 
dislodgment where the tank system is placed in a saturated zone, or is 
located within a seismic fault zone subject to the standards of Sec.  
267.18(a).
    (3) Tank systems will withstand the effects of frost heave.


Sec.  267.192  What handling and inspection procedures must I follow 
during installation of new tank systems?

    (a) You must ensure that you follow proper handling procedures to 
prevent damage to a new tank system during installation. Before placing 
a new tank system or component in use, an independent, qualified 
installation inspector or an independent, qualified, registered 
professional engineer, either of whom is trained and experienced in the 
proper installation of tank systems or components, must inspect the 
system for the presence of any of the following items:
    (1) Weld breaks.
    (2) Punctures.
    (3) Scrapes of protective coatings.
    (4) Cracks.
    (5) Corrosion.
    (6) Other structural damage or inadequate construction/
installation.
    (b) You must remedy all discrepancies before the tank system is 
placed in use.


Sec.  267.193  What testing must I do?

    You must test all new tanks and ancillary equipment for tightness 
before you place them in use. If you find a tank system that is not 
tight, you must perform all repairs necessary to remedy the leak(s) in 
the system before you cover, enclose, or place the tank system into 
use.


Sec.  267.194  What installation requirements must I follow?

    (a) You must support and protect ancillary equipment against 
physical damage and excessive stress due to settlement, vibration, 
expansion, or contraction.
    (b) You must provide the type and degree of corrosion protection 
recommended by an independent corrosion expert, based on the 
information provided under Sec.  267.191(c), to ensure the integrity of 
the tank system during use of the tank system. An independent corrosion 
expert must supervise the installation of a corrosion protection system 
that is field fabricated to ensure proper installation.
    (c) You must obtain, and keep at the facility, written statements 
by those persons required to certify the design of the tank system and 
to supervise the installation of the tank system as required in 
Sec. Sec.  267.192, 267.193, and paragraphs (a) and (b) of this 
section. The written statement must attest that the tank system was 
properly designed and installed and that you made repairs under 
Sec. Sec.  267.192 and 267.193. These written statements must also 
include the certification statement as required in 40 CFR 270.11(d).


Sec.  267.195  What are the secondary containment requirements?

    To prevent the release of hazardous waste or hazardous constituents 
to the environment, you must provide secondary containment that meets 
the requirements of this section for all new and existing tank systems.
    (a) Secondary containment systems must be:
    (1) Designed, installed, and operated to prevent any migration of 
wastes or accumulated liquid out of the system to the soil, 
groundwater, or surface water at any time during the use of the tank 
system; and

[[Page 53471]]

    (2) Capable of detecting and collecting releases and accumulated 
liquids until the collected material is removed.
    (b) To meet the requirements of paragraph (a) of this section, 
secondary containment systems must be, at a minimum:
    (1) Constructed of or lined with materials that are compatible with 
the wastes(s) to be placed in the tank system and must have sufficient 
strength and thickness to prevent failure owing to pressure gradients 
(including static head and external hydrological forces), physical 
contact with the waste to which it is exposed, climatic conditions, and 
the stress of daily operation (including stresses from nearby vehicular 
traffic).
    (2) Placed on a foundation or base capable of providing support to 
the secondary containment system, resistance to pressure gradients 
above and below the system, and capable of preventing failure due to 
settlement, compression, or uplift.
    (3) Provided with a leak-detection system that is designed and 
operated so that it will detect the failure of either the primary or 
secondary containment structure or the presence of any release of 
hazardous waste or accumulated liquid in the secondary containment 
system within 24 hours.
    (4) Sloped or otherwise designed or operated to drain and remove 
liquids resulting from leaks, spills, or precipitation. You must remove 
spilled or leaked waste and accumulated precipitation from the 
secondary containment system within 24 hours, or as promptly as 
possible, to prevent harm to human health and the environment.


Sec.  267.196  What are the required devices for secondary containment 
and what are their design, operating and installation requirements?

    (a) Secondary containment for tanks must include one or more of the 
following:
    (1) A liner (external to the tank).
    (2) A double-walled tank.
    (3) An equivalent device; you must maintain documentation of 
equivalency at the facility.
    (b) External liner systems must be:
    (1) Designed or operated to contain 100 percent of the capacity of 
the largest tank within its boundary.
    (2) Designed or operated to prevent run-on or infiltration of 
precipitation into the secondary containment system unless the 
collection system has sufficient excess capacity to contain run-on or 
infiltration. The additional capacity must be sufficient to contain 
precipitation from a 25-year, 24-hour rainfall event.
    (3) Free of cracks or gaps.
    (4) Designed and installed to surround the tank completely and to 
cover all surrounding earth likely to come into contact with the waste 
if the waste is released from the tank(s) (that is, capable of 
preventing lateral as well as vertical migration of the waste).
    (c) Double-walled tanks must be:
    (1) Designed as an integral structure (that is, an inner tank 
completely enveloped within an outer shell) so that any release from 
the inner tank is contained by the outer shell.
    (2) Protected, if constructed of metal, from both corrosion of the 
primary tank interior and of the external surface of the outer shell.
    (3) Provided with a built-in continuous leak detection system 
capable of detecting a release within 24 hours.


Sec.  267.197  What are the requirements for ancillary equipment?

    You must provide ancillary equipment with secondary containment 
(for example, trench, jacketing, double-walled piping) that meets the 
requirements of Sec.  267.195 (a) and (b), except for:
    (a) Above ground piping (exclusive of flanges, joints, valves, and 
other connections) that are visually inspected for leaks on a daily 
basis;
    (b) Welded flanges, welded joints, and welded connections, that are 
visually inspected for leaks on a daily basis;
    (c) Sealless or magnetic coupling pumps and sealless valves, that 
are visually inspected for leaks on a daily basis; and
    (d) Pressurized above ground piping systems with automatic shut-off 
devices (for example, excess flow check valves, flow metering shutdown 
devices, loss of pressure actuated shut-off devices) that are visually 
inspected for leaks on a daily basis.


Sec.  267.198  What are the general operating requirements for my tank 
systems?

    (a) You must not place hazardous wastes or treatment reagents in a 
tank system if they could cause the tank, its ancillary equipment, or 
the containment system to rupture, leak, corrode, or otherwise fail.
    (b) You must use appropriate controls and practices to prevent 
spills and overflows from tank or containment systems. These include, 
at a minimum:
    (1) Spill prevention controls (for example, check valves, dry 
disconnect couplings).
    (2) Overfill prevention controls (for example, level sensing 
devices, high level alarms, automatic feed cutoff, or bypass to a 
standby tank).
    (3) Sufficient freeboard in uncovered tanks to prevent overtopping 
by wave or wind action or by precipitation.
    (c) You must comply with the requirements of Sec.  267.200 if a 
leak or spill occurs in the tank system.


Sec.  267.199  What inspection requirements must I meet?

    You must comply with the following requirements for scheduling, 
conducting, and documenting inspections.
    (a) Develop and follow a schedule and procedure for inspecting 
overfill controls.
    (b) Inspect at least once each operating day:
    (1) Aboveground portions of the tank system to detect corrosion or 
releases of waste.
    (2) Data gathered from monitoring and leak detection equipment (for 
example, pressure or temperature gauges, monitoring wells) to ensure 
that the tank system is being operated according to its design.
    (3) The construction materials and the area immediately surrounding 
the externally accessible portion of the tank system, including the 
secondary containment system (for example, dikes) to detect erosion or 
signs of releases of hazardous waste (for example, wet spots, dead 
vegetation).
    (c) Inspect cathodic protection systems, if present, according to, 
at a minimum, the following schedule to ensure that they are 
functioning properly:
    (1) Confirm that the cathodic protection system is operating 
properly within six months after initial installation and annually 
thereafter.
    (2) Inspect and/or test all sources of impressed current, as 
appropriate, at least every other month.
    (d) Document, in the operating record of the facility, an 
inspection of those items in paragraphs (a) through (c) of this 
section.


Sec.  267.200  What must I do in case of a leak or a spill?

    If there has been a leak or a spill from a tank system or secondary 
containment system, or if either system is unfit for use, you must 
remove the system from service immediately, and you must satisfy the 
following requirements:
    (a) Immediately stop the flow of hazardous waste into the tank 
system or secondary containment system and inspect the system to 
determine the cause of the release.
    (b) Remove the waste from the tank system or secondary containment 
system.
    (1) If the release was from the tank system, you must, within 24 
hours after

[[Page 53472]]

detecting the leak, remove as much of the waste as is necessary to 
prevent further release of hazardous waste to the environment and to 
allow inspection and repair of the tank system to be performed.
    (2) If the material released was to a secondary containment system, 
you must remove all released materials within 24 hours or as quickly as 
possible to prevent harm to human health and the environment.
    (c) Immediately conduct a visual inspection of the release and, 
based upon that inspection:
    (1) Prevent further migration of the leak or spill to soils or 
surface water.
    (2) Remove, and properly dispose of, any visible contamination of 
the soil or surface water.
    (d) Report any release to the environment, except as provided in 
paragraph (d)(1) of this section, to the Regional Administrator within 
24 hours of its detection. If you have reported the release pursuant to 
40 CFR part 302, that report will satisfy this requirement.
    (1) You need not report on a leak or spill of hazardous waste if it 
is:
    (i) Less than or equal to a quantity of one (1) pound; and
    (ii) Immediately contained and cleaned up.
    (2) Within 30 days of detection of a release to the environment, 
you must submit a report to the Regional Administrator containing the 
following information:
    (i) The likely route of migration of the release.
    (ii) The characteristics of the surrounding soil (soil composition, 
geology, hydrogeology, climate).
    (iii) The results of any monitoring or sampling conducted in 
connection with the release (if available). If sampling or monitoring 
data relating to the release are not available within 30 days, you must 
submit these data to the Regional Administrator as soon as they become 
available.
    (iv) The proximity to downgradient drinking water, surface water, 
and populated areas.
    (v) A description of response actions taken or planned.
    (e) Either close the system or make necessary repairs.
    (1) Unless you satisfy the requirements of paragraphs (e)(2) and 
(3) of this section, you must close the tank system according to Sec.  
267.201.
    (2) If the cause of the release was a spill that has not damaged 
the integrity of the system, you may return the system to service as 
soon as you remove the released waste and make any necessary repairs.
    (3) If the cause of the release was a leak from the primary tank 
system into the secondary containment system, you must repair the 
system before returning the tank system to service.
    (f) If you have made extensive repairs to a tank system in 
accordance with paragraph (e) of this section (for example, 
installation of an internal liner; repair of a ruptured primary 
containment or secondary containment vessel), you may not return the 
tank system to service unless the repair is certified by an 
independent, qualified, registered, professional engineer in accordance 
with 40 CFR 270.11(d).
    (1) The engineer must certify that the repaired system is capable 
of handling hazardous wastes without release for the intended life of 
the system.
    (2) You must submit this certification to the Regional 
Administrator within seven days after returning the tank system to use.


Sec.  267.201  What must I do when I stop operating the tank system?

    When you close a tank system, you must remove or decontaminate all 
waste residues, contaminated containment system components (liners, 
etc.), contaminated soils, and structures and equipment contaminated 
with waste, and manage them as hazardous waste, unless 40 CFR 261.3(d) 
applies. The closure plan, closure activities, cost estimates for 
closure, and financial responsibility for tank systems must meet all of 
the requirements specified in subparts G and H of this part.


Sec.  267.202  What special requirements must I meet for ignitable or 
reactive wastes?

    (a) You may not place ignitable or reactive waste in tank systems, 
unless:
    (1) You treat, render, or mix the waste before or immediately after 
placement in the tank system so that:
    (i) You comply with Sec.  267.17(b); and
    (ii) The resulting waste, mixture, or dissolved material no longer 
meets the definition of ignitable or reactive waste under Sec.  261.21 
or Sec.  261.23 of this chapter; or
    (2) You store or treat the waste in such a way that it is protected 
from any material or conditions that may cause the waste to ignite or 
react; or
    (3) You use the tank system solely for emergencies.
    (b) If you store or treat ignitable or reactive waste in a tank, 
you must comply with the requirements for the maintenance of protective 
distances between the waste management area and any public ways, 
streets, alleys, or an adjoining property line that can be built upon 
as required in Tables 2-1 through 2-6 of the National Fire Protection 
Association's ``Flammable and Combustible Liquids Code,'' (1977 or 
1981), (incorporated by reference, see 40 CFR 260.11).


Sec.  267.203  What special requirements must I meet for incompatible 
wastes?

    (a) You may not place incompatible wastes, or incompatible wastes 
and materials, in the same tank system, unless you comply with Sec.  
267.17(b).
    (b) You may not place hazardous waste in a tank system that has not 
been decontaminated and that previously held an incompatible waste or 
material, unless you comply with Sec.  267.17(b).


Sec.  267.204  What air emission standards apply?

    You must manage all hazardous waste placed in a tank following the 
requirements of subparts AA, BB, and CC of 40 CFR part 264. Under a 
standardized permit, the following control devices are permissible: 
Thermal vapor incinerator, catalytic vapor incinerator, flame, boiler, 
process heater, condenser, and carbon absorption unit.

Subparts K through CC [Reserved]

Subpart DD--Containment buildings


Sec.  267.1100  Does this subpart apply to me?

    This subpart applies to you if you own or operate a facility that 
treats or stores hazardous waste in containment buildings under a 40 
CFR part 270 subpart J standardized permit, except as provided in Sec.  
267.1(b). Storage and/or treatment in your containment building is not 
land disposal as defined in 40 CFR 268.2 if your unit meets the 
requirements of Sec. Sec.  267.1101, 267.1102, and 267.1103.


Sec.  267.1101  What design and operating standards must my containment 
building meet?

    Your containment building must comply with the design and operating 
standards in this section. EPA will consider standards established by 
professional organizations generally recognized by the industry such as 
the American Concrete Institute (ACI) and the American Society of 
Testing Materials (ASTM) in judging the structural integrity 
requirements of this section.
    (a) The containment building must be completely enclosed with a 
floor, walls, and a roof to prevent exposure to the elements, (e.g., 
precipitation, wind, run-on), and to assure containment of managed 
wastes.
    (b) The floor and containment walls of the unit, including the 
secondary containment system, if required under Sec.  267.1103, must be 
designed and

[[Page 53473]]

constructed of manmade materials of sufficient strength and thickness 
to:
    (1) Support themselves, the waste contents, and any personnel and 
heavy equipment that operates within the unit.
    (2) Prevent failure due to:
    (i) Pressure gradients, settlement, compression, or uplift.
    (ii) Physical contact with the hazardous wastes to which they are 
exposed.
    (iii) Climatic conditions.
    (iv) Stresses of daily operation, including the movement of heavy 
equipment within the unit and contact of such equipment with 
containment walls.
    (v) Collapse or other failure.
    (c) All surfaces to be in contact with hazardous wastes must be 
chemically compatible with those wastes.
    (d) You must not place incompatible hazardous wastes or treatment 
reagents in the unit or its secondary containment system if they could 
cause the unit or secondary containment system to leak, corrode, or 
otherwise fail.
    (e) A containment building must have a primary barrier designed to 
withstand the movement of personnel, waste, and handling equipment in 
the unit during the operating life of the unit and appropriate for the 
physical and chemical characteristics of the waste to be managed.
    (f) If appropriate to the nature of the waste management operation 
to take place in the unit, an exception to the structural strength 
requirement may be made for light-weight doors and windows that meet 
these criteria:
    (1) They provide an effective barrier against fugitive dust 
emissions under Sec.  267.1102(d).
    (2) The unit is designed and operated in a fashion that assures 
that wastes will not actually come in contact with these openings.
    (g) You must inspect and record in the facility's operating record, 
at least once every seven days, data gathered from monitoring equipment 
and leak detection equipment, as well as the containment building and 
the area immediately surrounding the containment building to detect 
signs of releases of hazardous waste.
    (h) You must obtain certification by a qualified registered 
professional engineer that the containment building design meets the 
requirements of Sec. Sec.  267.1102, 267.1103, and paragraphs (a) 
through (f) of this section.


Sec.  267.1102  What other requirements must I meet to prevent 
releases?

    You must use controls and practices to ensure containment of the 
hazardous waste within the unit, and must, at a minimum:
    (a) Maintain the primary barrier to be free of significant cracks, 
gaps, corrosion, or other deterioration that could cause hazardous 
waste to be released from the primary barrier.
    (b) Maintain the level of the stored/treated hazardous waste within 
the containment walls of the unit so that the height of any containment 
wall is not exceeded.
    (c) Take measures to prevent personnel or by equipment used in 
handling the waste from tracking hazardous waste out of the unit. You 
must designate an area to decontaminate equipment, and you must collect 
and properly manage any rinsate.
    (d) Take measures to control fugitive dust emissions such that any 
openings (doors, windows, vents, cracks, etc.) exhibit no visible 
emissions (see 40 CFR part 60, appendix A, Method 22--Visual 
Determination of Fugitive Emissions from Material Sources and Smoke 
Emissions from Flares). In addition, you must operate and maintain all 
associated particulate collection devices (for example, fabric filter, 
electrostatic precipitator) with sound air pollution control practices. 
You must effectively maintain this state of no visible emissions at all 
times during routine operating and maintenance conditions, including 
when vehicles and personnel are entering and exiting the unit.


Sec.  267.1103  What additional design and operating standards apply if 
liquids will be in my containment building?

    If your containment building will be used to manage hazardous 
wastes containing free liquids or treated with free liquids, as 
determined by the paint filter test, by a visual examination, or by 
other appropriate means, you must include:
    (a) A primary barrier designed and constructed of materials to 
prevent the migration of hazardous constituents into the barrier (for 
example, a geomembrane covered by a concrete wear surface).
    (b) A liquid collection and removal system to minimize the 
accumulation of liquid on the primary barrier of the containment 
building.
    (1) The primary barrier must be sloped to drain liquids to the 
associated collection system; and
    (2) You must collect and remove liquids and waste to minimize 
hydraulic head on the containment system at the earliest practicable 
time.
    (c) A secondary containment system, including a secondary barrier 
designed and constructed to prevent migration of hazardous constituents 
into the barrier, and a leak detection system capable of detecting 
failure of the primary barrier and collecting accumulated hazardous 
wastes and liquids at the earliest practical time.
    (1) You may meet the requirements of the leak detection component 
of the secondary containment system by installing a system that is, at 
a minimum:
    (i) Constructed with a bottom slope of 1 percent or more; and
    (ii) Constructed of a granular drainage material with a hydraulic 
conductivity of 1 x 10-\2\ cm/sec or more and a thickness of 
12 inches (30.5 cm) or more, or constructed of synthetic or geonet 
drainage materials with a transmissivity of 3 x 10-5 m\2\sec or more.
    (2) If you will be conducting treatment in the building, you must 
design the area in which the treatment will be conducted to prevent the 
release of liquids, wet materials, or liquid aerosols to other portions 
of the building.
    (3) You must construct the secondary containment system using 
materials that are chemically resistant to the waste and liquids 
managed in the containment building and of sufficient strength and 
thickness to prevent collapse under the pressure exerted by overlaying 
materials and by any equipment used in the containment building.


Sec.  267.1104  How may I obtain a waiver from secondary containment 
requirements?

    Notwithstanding any other provision of this subpart, the Regional 
Administrator may waive requirements for secondary containment for a 
permitted containment building where:
    (a) You demonstrate that the only free liquids in the unit are 
limited amounts of dust suppression liquids required to meet 
occupational health and safety requirements, and
    (b) Containment of managed wastes and dust suppression liquids can 
be assured without a secondary containment system.


Sec.  267.1105  What do I do if my containment building contains areas 
both with and without secondary containment?

    For these containment buildings, you must:
    (a) Design and operate each area in accordance with the 
requirements enumerated in Sec. Sec.  267.1101 through 267.1103.
    (b) Take measures to prevent the release of liquids or wet 
materials into areas without secondary containment.
    (c) Maintain in the facility's operating log a written description 
of the operating procedures used to maintain the integrity of areas 
without secondary containment.

[[Page 53474]]

Sec.  267.1106  What do I do if I detect a release?

    Throughout the active life of the containment building, if you 
detect a condition that could lead to or has caused a release of 
hazardous waste, you must repair the condition promptly, in accordance 
with the following procedures.
    (a) Upon detection of a condition that has lead to a release of 
hazardous waste (for example, upon detection of leakage from the 
primary barrier), you must:
    (1) Enter a record of the discovery in the facility operating 
record;
    (2) Immediately remove the portion of the containment building 
affected by the condition from service;
    (3) Determine what steps you must take to repair the containment 
building, to remove any leakage from the secondary collection system, 
and to establish a schedule for accomplishing the cleanup and repairs; 
and
    (4) Within 7 days after the discovery of the condition, notify the 
Regional Administrator of the condition, and within 14 working days, 
provide a written notice to the Regional Administrator with a 
description of the steps taken to repair the containment building, and 
the schedule for accomplishing the work.
    (b) The Regional Administrator will review the information 
submitted, make a determination regarding whether the containment 
building must be removed from service completely or partially until 
repairs and cleanup are complete, and notify you of the determination 
and the underlying rationale in writing.
    (c) Upon completing all repairs and cleanup, you must notify the 
Regional Administrator in writing and provide a verification, signed by 
a qualified, registered professional engineer, that the repairs and 
cleanup have been completed according to the written plan submitted in 
accordance with paragraph (a)(4) of this section.


Sec.  267.1107  Can a containment building itself be considered 
secondary containment?

    Containment buildings can serve as secondary containment systems 
for tanks placed within the building under certain conditions.
    (a) A containment building can serve as an external liner system 
for a tank, provided it meets the requirements of Sec.  267.196(a).
    (b) The containment building must also meet the requirements of 
Sec.  267.195(a), (b)(1) and (2) to be considered an acceptable 
secondary containment system for a tank.


Sec.  267.1108  What must I do when I stop operating the containment 
building?

    When you close a containment building, you must remove or 
decontaminate all waste residues, contaminated containment system 
components (liners, etc.), contaminated subsoils, and structures and 
equipment contaminated with waste and leachate, and manage them as 
hazardous waste unless 40 CFR 261.3(d) applies. The closure plan, 
closure activities, cost estimates for closure, and financial 
responsibility for containment buildings must meet all of the 
requirements specified in subparts G and H of this part.

PART 270--EPA ADMINISTERED PERMIT PROGRAMS: THE HAZARDOUS WASTE 
PERMIT PROGRAM

0
13. The authority citation for part 270 continues to read as follows:

    Authority: 42 U.S.C. 6905, 6912, 6924, 6925, 6927, 6939, and 
6974.

Subpart A--General Information

0
14. Section 270.1 is amended by adding sentences after the second 
sentence of paragraph (b) introductory text, and by adding paragraphs 
(b)(1) and (2) to read as follows:


Sec.  270.1  Purpose and scope of these regulations.

* * * * *
    (b) * * * Treatment, storage, and disposal facilities (TSDs) that 
are otherwise subject to permitting under RCRA and that meet the 
criteria in paragraph (b)(1), or paragraph (b)(2) of this section, may 
be eligible for a standardized permit under subpart J of this part. * * 
*
    (1) The facility generates hazardous waste and then non-thermally 
treats or stores hazardous waste on-site in tanks, containers, or 
containment buildings; or
    (2) The facility receives hazardous waste generated off-site by a 
generator under the same ownership as the receiving facility, and then 
stores or non-thermally treats the hazardous waste in containers, 
tanks, or containment buildings.
* * * * *
0
15. Section 270.2 is amended by revising the definition for ``Permit'' 
and adding a definition for ``Standardized permit'' in alphabetical 
order to read as follows:


Sec.  270.2  Definitions.

* * * * *
    Permit means an authorization, license, or equivalent control 
document issued by EPA or an approved State to implement the 
requirements of this part and parts 271 and 124 of this chapter. Permit 
includes permit by rule (Sec.  270.60), emergency permit (Sec.  270.61) 
and standardized permit (subpart J of this part). Permit does not 
include RCRA interim status (subpart G of this part), or any permit 
which has not been the subject of final agency action, such as a draft 
permit or a proposed permit.
* * * * *
    Standardized permit means a RCRA permit issued under part 124, 
subpart G of this chapter and subpart J of this part authorizing the 
facility owner or operator to manage hazardous waste. The standardized 
permit may have two parts: A uniform portion issued in all cases and a 
supplemental portion issued at the Director's discretion.
* * * * *

Subpart B--Permit Application

0
16. Section 270.10 is amended by revising paragraphs (a) and (h) to 
read as follows:


Sec.  270.10  General application requirements.

    (a) Applying for a permit. Below is information on how to obtain a 
permit and where to find requirements for specific permits:
    (1) If you are covered by RCRA permits by rule (Sec.  270.60), you 
need not apply.
    (2) If you currently have interim status, you must apply for 
permits when required by the Director.
    (3) If you are required to have a permit (including new applicants 
and permittees with expiring permits), you must complete, sign, and 
submit an application to the Director, as described in this section and 
Sec. Sec.  270.70 through 270.73.
    (4) If you are seeking an emergency permit, the procedures for 
application, issuance, and administration are found exclusively in 
Sec.  270.61.
    (5) If you are seeking a research, development, and demonstration 
permit, the procedures for application, issuance, and administration 
are found exclusively in Sec.  270.65.
    (6) If you are seeking a standardized permit, the procedures for 
application and issuance are found in part 124, subpart G of this 
chapter and subpart J of this part.
* * * * *
    (h) Reapplying for a permit. If you have an effective permit and 
you want to reapply for a new one, you have two options:
    (1) You may submit a new application at least 180 days before the 
expiration date of the effective permit, unless the Director allows a 
later date; or

[[Page 53475]]

    (2) If you intend to be covered by a standardized permit, you may 
submit a Notice of Intent as described in Sec.  270.51(e)(1) at least 
180 days before the expiration date of the effective permit, unless the 
Director allows a later date. The Director may not allow you to submit 
applications or Notices of Intent later than the expiration date of the 
existing permit, except as allowed by Sec.  270.51(e)(2).
* * * * *

Subpart D--Changes to Permits

0
17. Section 270.40 is amended by revising the first sentence of 
paragraph (b) to read as follows:


Sec.  270.40  Transfer of permits.

* * * * *
    (b) Changes in the ownership or operational control of a facility 
may be made as a Class 1 modification with prior written approval of 
the Director in accordance with Sec.  270.42 or as a routine change 
with prior approval under 40 CFR 124.213. * * *

0
18. Section 270.41 is amended by revising the next to last sentence of 
the introductory paragraph and adding paragraph (b)(3) to read as 
follows:


Sec.  270.41  Modification or revocation and reissuance of permits.

    * * * If a permit modification is requested by the permittee, the 
Director shall approve or deny the request according to the procedures 
of Sec.  270.42, or Sec.  270.320 and 40 CFR part 124, subpart G.* * *
* * * * *
    (b) * * *
    (3) The Director has received notification under 40 CFR 124.202(b) 
of a facility owner or operator's intent to be covered by a 
standardized permit.
* * * * *

Subpart E--Expiration and Continuation of Permits

0
19. Section 270.51 is amended by adding paragraph (e) to read as 
follows:


Sec.  270.51  Continuation of expiring permits.

* * * * *
    (e) Standardized permits.
    (1) The conditions of your expired standardized permit continue 
until the effective date of your new permit (see 40 CFR 124.15) if all 
of the following are true:
    (i) If EPA is the permit-issuing authority.
    (ii) If you submit a timely and complete Notice of Intent under 40 
CFR 124.202(b) requesting coverage under a RCRA standardized permit; 
and
    (iii) If the Director, through no fault on your part, does not 
issue your permit before your previous permit expires (for example, 
where it is impractical to make the permit effective by that date 
because of time or resource constraints).
    (2) In some cases, the Director may notify you that you are not 
eligible for a standardized permit (see 40 CFR 124.206). In those 
cases, the conditions of your expired permit will continue if you 
submit the information specified in paragraph (a)(1) of this section 
(that is, a complete application for a new permit) within 60 days after 
you receive our notification that you are not eligible for a 
standardized permit.

Subpart F--Special Forms of Permits

0
20. Add Sec.  270.67 to subpart F to read as follows:


Sec.  270.67  RCRA standardized permits for storage and treatment 
units.

    RCRA standardized permits are special forms of permits for TSD 
owners or operators that:
    (a) Generate hazardous waste and then non-thermally treat or store 
the hazardous waste on-site in tanks, containers, or containment 
buildings; or
    (b) Receive hazardous waste generated off-site by a generator under 
the same ownership as the receiving facility, and then store or non-
thermally treat the hazardous waste in containers, tanks, or 
containment buildings. Standardized permit facility owners or operators 
are regulated under subpart J of this part, part 124 subpart G of this 
chapter, and part 267 of this chapter.

0
21. Subpart J is added to part 270 to read as follows:

Subpart J--RCRA Standardized Permits for Storage and Treatment 
Units

General Information About Standardized Permits

Sec.
270.250 What is a RCRA standardized permit?
270.255 Who is eligible for a standardized permit?
270.260 What requirements of Part 270 apply to a standardized 
permit?

Applying for a Standardized Permit

270.270 How do I apply for a standardized permit?
270.275 What information must I submit to the permitting agency to 
support my standardized permit application?
270.280 What are the certification requirements?

Information That Must Be Kept at Your Facility

270.290 What general types of information must I keep at my 
facility?
270.300 What container information must I keep at my facility?
270.305 What tank information must I keep at my facility?
270.310 What equipment information must I keep at my facility?
270.315 What air emissions control information must I keep at my 
facility?

Modifying a Standardized Permit

270.320 How do I modify my RCRA standardized permit?

Subpart J--RCRA Standardized Permits for Storage and Treatment 
Units

General Information About Standardized Permits


Sec.  270.250  What is a RCRA standardized permit?

    A RCRA standardized permit (RCRA) is a special type of permit that 
authorizes you to manage hazardous waste. It is issued under 40 CFR 
part 124, subpart G and subpart J of this part.


Sec.  270.255  Who is eligible for a standardized permit?

    (a) You may be eligible for a standardized permit if:
    (1) You generate hazardous waste and then store or non-thermally 
treat the hazardous waste on-site in containers, tanks, or containment 
buildings; or
    (2) You receive hazardous waste generated off-site by a generator 
under the same ownership as the receiving facility, and then store or 
non-thermally treat the hazardous waste in containers, tanks, or 
containment buildings.
    (3) We will inform you of your eligibility when we make a decision 
on your permit application.
    (b) [Reserved]


Sec.  270.260  What requirements of part 270 apply to a standardized 
permit?

    The following subparts and sections of this part 270 apply to a 
standardized permit:
    (a) Subpart A--General Information: All sections.
    (b) Subpart B--Permit Application: Sec. Sec.  270.10, 270.11, 
270.12, 270.13 and 270.29.
    (c) Subpart C--Permit Conditions: All sections.
    (d) Subpart D--Changes to Permit: Sec. Sec.  270.40, 270.41, and 
270.43.
    (e) Subpart E--Expiration and Continuation of Permits: All 
sections.
    (f) Subpart F--Special Forms of Permits: Sec.  270.67.
    (g) Subpart G--Interim Status: All sections.
    (h) Subpart H--Remedial Action Plans: Does not apply.
    (i) Subpart J--Standardized Permits: All sections.

[[Page 53476]]

Applying for a Standardized Permit


Sec.  270.270  How do I apply for a standardized permit?

    You apply for a standardized permit by following the procedures in 
40 CFR part 124, subpart G and this subpart.


Sec.  270.275  What information must I submit to the permitting agency 
to support my standardized permit application?

    The information in paragraphs (a) through (j) of this section will 
be the basis of your standardized permit application. You must submit 
it to the Director when you submit your Notice of Intent under 40 CFR 
124.202(b) requesting coverage under a RCRA standardized permit:
    (a) The Part A information described in Sec.  270.13.
    (b) A meeting summary and other materials required by 40 CFR 
124.31.
    (c) Documentation of compliance with the location standards of 40 
CFR 267.18 and Sec.  270.14(b)(11).
    (d) Information that allows the Director to carry out our 
obligations under other Federal laws required in Sec.  270.3.
    (e) Solid waste management unit information required by Sec.  
270.14(d).
    (f) A certification meeting the requirements of Sec.  270.280, and 
an audit of the facility's compliance status with 40 CFR part 267 as 
required by Sec.  270.280.
    (g) A closure plan prepared in accordance with part 267, subpart G.
    (h) The most recent closure cost estimate for your facility 
prepared under Sec.  267.142 and a copy of the documentation required 
to demonstrate financial assurance under Sec.  267.143. For a new 
facility, you may gather the required documentation 60 days before the 
initial receipt of hazardous wastes.
    (i) If you manage wastes generated off-site, the waste analysis 
plan.
    (j) If you manage waste generated from off-site, documentation 
showing that the waste generator and the off-site facility are under 
the same ownership.


Sec.  270.280  What are the certification requirements?

    You must submit a signed certification based on your audit of your 
facility's compliance with 40 CFR part 267.
    (a) Your certification must read: I certify under penalty of law 
that:
    (1) I have personally examined and am familiar with the report 
containing the results of an audit conducted of my facility's 
compliance status with 40 CFR part 267, which supports this 
certification. Based on my inquiry of those individuals immediately 
responsible for conducting the audit and preparing the report, I 
believe that my (include paragraph (a)(1)(i) and (ii) this section, 
whichever applies):
    (i) My existing facility complies with all applicable requirements 
of 40 CFR part 267 and will continue to comply until the expiration of 
the permit; or
    (ii) My facility has been designed, and will be constructed and 
operated to comply with all applicable requirements of 40 CFR part 267, 
and will continue to comply until expiration of the permit.
    (2) I will make all information that I am required to maintain at 
my facility by Sec. Sec.  270.290 through 277.315 readily available for 
review by the permitting agency and the public; and,
    (3) I will continue to make all information required by Sec. Sec.  
270.290 through 277.315 available until the permit expires. I am aware 
that there are significant penalties for submitting false information, 
including the possibility of fine and imprisonment for knowing 
violation.
    (b) You must sign this certification following the requirements of 
Sec.  270.11(a)(1) through (3).
    (c) This certification must be based upon an audit that you conduct 
of your facility's compliance status with 40 CFR part 267. A written 
audit report, signed and certified as accurate by the auditor, must be 
submitted to the Director with the 40 CFR 124.202(b) Notice of Intent.

Information That Must Be Kept at Your Facility


Sec.  270.290  What general types of information must I keep at my 
facility?

    You must keep the following information at your facility:
    (a) A general description of the facility.
    (b) Chemical and physical analyses of the hazardous waste and 
hazardous debris handled at the facility. At a minimum, these analyses 
must contain all the information you must know to treat or store the 
wastes properly under the requirements of 40 CFR part 267.
    (c) A copy of the waste analysis plan required by 40 CFR 267.13(b).
    (d) A description of the security procedures and equipment required 
by 40 CFR 267.14.
    (e) A copy of the general inspection schedule required by 40 CFR 
267.15(b). You must include in the inspection schedule applicable 
requirements of 40 CFR 267.174, 267.193, 267.195, 264.1033, 264.1052, 
264.1053, 264.1058, and 264.1088.
    (f) A justification of any modification of the preparedness and 
prevention requirements of 40 CFR part 267, subpart C (Sec. Sec.  
267.30 to 267.35).
    (g) A copy of the contingency plan required by 40 CFR part 267, 
subpart D.
    (h) A description of procedures, structures, or equipment used at 
the facility to:
    (1) Prevent hazards in unloading operations (for example, use 
ramps, special forklifts),
    (2) Prevent runoff from hazardous waste handling areas to other 
areas of the facility or environment, or to prevent flooding (for 
example, with berms, dikes, trenches),
    (3) Prevent contamination of water supplies,
    (4) Mitigate effects of equipment failure and power outages,
    (5) Prevent undue exposure of personnel to hazardous waste (for 
example, requiring protective clothing), and
    (6) Prevent releases to atmosphere,
    (i) A description of precautions to prevent accidental ignition or 
reaction of ignitable, reactive, or incompatible wastes as required by 
40 CFR 267.17.
    (j) Traffic pattern, estimated volume (number, types of vehicles) 
and control (for example, show turns across traffic lanes, and stacking 
lanes; describe access road surfacing and load bearing capacity; show 
traffic control signals).
    (k) [Reserved]
    (l) An outline of both the introductory and continuing training 
programs you will use to prepare employees to operate or maintain your 
facility safely as required by 40 CFR 267.16. A brief description of 
how training will be designed to meet actual job tasks under 40 CFR 
267.16(a)(3) requirements.
    (m) A copy of the closure plan required by 40 CFR 267.112. Include, 
where applicable, as part of the plans, specific requirements in 40 CFR 
267.176, 267.201, and 267.1108.
    (n) [Reserved]
    (o) The most recent closure cost estimate for your facility 
prepared under 40 CFR 267.142 and a copy of the documentation required 
to demonstrate financial assurance under 40 CFR 267.143. For a new 
facility, you may gather the required documentation 60 days before the 
initial receipt of hazardous wastes.
    (p) [Reserved]
    (q) Where applicable, a copy of the insurance policy or other 
documentation that complies with the liability requirements of 40 CFR 
267.147. For a new facility, documentation showing the amount of 
insurance meeting the specification of 40 CFR 267.147(a) that you plan 
to have in effect before initial receipt of hazardous waste for 
treatment or storage.
    (r) Where appropriate, proof of coverage by a State financial 
mechanism, as required by 40 CFR 267.149 or 267.150.

[[Page 53477]]

    (s) A topographic map showing a distance of 1,000 feet around your 
facility at a scale of 2.5 centimeters (1 inch) equal to not more than 
61.0 meters (200 feet). The map must show elevation contours. The 
contour interval must show the pattern of surface water flow in the 
vicinity of and from each operational unit of the facility. For 
example, contours with an interval of 1.5 meters (5 feet), if relief is 
greater than 6.1 meters (20 feet), or an interval of 0.6 meters (2 
feet), if relief is less than 6.1 meters (20 feet). If your facility is 
in a mountainous area, you should use large contour intervals to 
adequately show topographic profiles of facilities. The map must 
clearly show the following:
    (1) Map scale and date.
    (2) 100-year flood plain area.
    (3) Surface waters including intermittent streams.
    (4) Surrounding land uses (residential, commercial, agricultural, 
recreational).
    (5) A wind rose (i.e., prevailing wind-speed and direction).
    (6) Orientation of the map (north arrow).
    (7) Legal boundaries of your facility site.
    (8) Access control (fences, gates).
    (9) Injection and withdrawal wells both on-site and off-site.
    (10) Buildings; treatment, storage, or disposal operations; or 
other structure (recreation areas, runoff control systems, access and 
internal roads, storm, sanitary, and process sewerage systems, loading 
and unloading areas, fire control facilities, etc.)
    (11) Barriers for drainage or flood control.
    (12) Location of operational units within your facility, where 
hazardous waste is (or will be) treated or stored. (Include equipment 
cleanup areas.)


Sec.  270.300  What container information must I keep at my facility?

    If you store or treat hazardous waste in containers, you must keep 
the following information at your facility:
    (a) A description of the containment system to demonstrate 
compliance with the container storage area provisions of 40 CFR 
267.173. This description must show the following:
    (1) Basic design parameters, dimensions, and materials of 
construction.
    (2) How the design promotes drainage or how containers are kept 
from contact with standing liquids in the containment system.
    (3) Capacity of the containment system relative to the number and 
volume of containers to be stored.
    (4) Provisions for preventing or managing run-on.
    (5) How accumulated liquids can be analyzed and removed to prevent 
overflow.
    (b) For storage areas that store containers holding wastes that do 
not contain free liquids, a demonstration of compliance with 40 CFR 
267.173(c), including:
    (1) Test procedures and results or other documentation or 
information to show that the wastes do not contain free liquids.
    (2) A description of how the storage area is designed or operated 
to drain and remove liquids or how containers are kept from contact 
with standing liquids.
    (c) Sketches, drawings, or data demonstrating compliance with 40 
CFR 267.174 (location of buffer zone (15m or 50ft) and containers 
holding ignitable or reactive wastes) and 40 CFR 267.175(c) (location 
of incompatible wastes in relation to each other), where applicable.
    (d) Where incompatible wastes are stored or otherwise managed in 
containers, a description of the procedures used to ensure compliance 
with 40 CFR 267.175(a) and (b), and 267.17(b) and (c).
    (e) Information on air emission control equipment as required by 
Sec.  270.315.


Sec.  270.305  What tank information must I keep at my facility?

    If you use tanks to store or treat hazardous waste, you must keep 
the following information at your facility:
    (a) A written assessment that is reviewed and certified by an 
independent, qualified, registered professional engineer on the 
structural integrity and suitability for handling hazardous waste of 
each tank system, as required under 40 CFR 267.191 and 267.192.
    (b) Dimensions and capacity of each tank.
    (c) Description of feed systems, safety cutoff, bypass systems, and 
pressure controls (e.g., vents).
    (d) A diagram of piping, instrumentation, and process flow for each 
tank system.
    (e) A description of materials and equipment used to provide 
external corrosion protection, as required under 40 CFR 267.191.
    (f) For new tank systems, a detailed description of how the tank 
system(s) will be installed in compliance with 40 CFR 267.192 and 
267.194.
    (g) Detailed plans and description of how the secondary containment 
system for each tank system is or will be designed, constructed, and 
operated to meet the requirements of 40 CFR 267.195 and 267.196.
    (h) [Reserved].
    (i) Description of controls and practices to prevent spills and 
overflows, as required under 40 CFR 267.198.
    (j) For tank systems in which ignitable, reactive, or incompatible 
wastes are to be stored or treated, a description of how operating 
procedures and tank system and facility design will achieve compliance 
with the requirements of 40 CFR 267.202 and 267.203.
    (k) Information on air emission control equipment as required by 
Sec.  270.315.


Sec.  270.310  What equipment information must I keep at my facility?

    If your facility has equipment to which 40 CFR part 264, subpart BB 
applies, you must keep the following information at your facility:
    (a) For each piece of equipment to which 40 CFR part 264 subpart BB 
applies:
    (1) Equipment identification number and hazardous waste management 
unit identification.
    (2) Approximate locations within the facility (e.g., identify the 
hazardous waste management unit on a facility plot plan).
    (3) Type of equipment (e.g., a pump or a pipeline valve).
    (4) Percent by weight of total organics in the hazardous waste 
stream at the equipment.
    (5) Hazardous waste state at the equipment (e.g., gas/vapor or 
liquid).
    (6) Method of compliance with the standard (e.g., monthly leak 
detection and repair, or equipped with dual mechanical seals).
    (b) For facilities that cannot install a closed-vent system and 
control device to comply with 40 CFR part 264, subpart BB on the 
effective date that the facility becomes subject to the subpart BB 
provisions, an implementation schedule as specified in 40 CFR 
264.1033(a)(2).
    (c) Documentation that demonstrates compliance with the equipment 
standards in 40 CFR 264.1052 and 264.1059. This documentation must 
contain the records required under 40 CFR 264.1064.
    (d) Documentation to demonstrate compliance with 40 CFR 264.1060 
must include the following information:
    (1) A list of all information references and sources used in 
preparing the documentation.
    (2) Records, including the dates, of each compliance test required 
by 40 CFR 264.1033(j).

[[Page 53478]]

    (3) A design analysis, specifications, drawings, schematics, and 
piping and instrumentation diagrams based on the appropriate sections 
of ``Course 415: Control of Gaseous Emissions'' (incorporated by 
reference as specified in 40 CFR 260.11) or other engineering texts 
acceptable to the Director that present basic control device design 
information. The design analysis must address the vent stream 
characteristics and control device operation parameters as specified in 
40 CFR 264.1035(b)(4)(iii).
    (4) A statement you signed and dated certifying that the operating 
parameters used in the design analysis reasonably represent the 
conditions that exist when the hazardous waste management unit is 
operating at the highest load or capacity level reasonable expected to 
occur.
    (5) A statement you signed and dated certifying that the control 
device is designed to operate at an efficiency of 95 weight percent or 
greater.


Sec.  270.315  What air emissions control information must I keep at my 
facility?

    If you have air emission control equipment subject to 40 CFR part 
264, subpart CC, you must keep the following information at your 
facility:
    (a) Documentation for each floating roof cover installed on a tank 
subject to 40 CFR 264.1084(d)(1) or (d)(2) that includes information 
you prepared or the cover manufacturer/vendor provided describing the 
cover design, and your certification that the cover meets applicable 
design specifications listed in 40 CFR 264.1084(e)(1) or (f)(1).
    (b) Identification of each container area subject to the 
requirements of 40 CFR part 264, subpart CC and your certification that 
the requirements of this subpart are met.
    (c) Documentation for each enclosure used to control air pollutant 
emissions from tanks or containers under requirements of 40 CFR 
264.1084(d)(5) or 264.1086(e)(1)(ii). You must include records for the 
most recent set of calculations and measurements you performed to 
verify that the enclosure meets the criteria of a permanent total 
enclosure as specified in ``Procedure T--Criteria for and Verification 
of a Permanent or Temporary Total Enclosure'' under 40 CFR 52.741, 
appendix B.
    (d) [Reserved]
    (e) Documentation for each closed-vent system and control device 
installed under requirements of 40 CFR 264.1087 that includes design 
and performance information as specified in Sec.  270.24 (c) and (d).
    (f) An emission monitoring plan for both Method 21 in 40 CFR part 
60, appendix A and control device monitoring methods. This plan must 
include the following information: monitoring point(s), Monitoring 
methods for control devices, monitoring frequency, procedures for 
documenting exceedences, and procedures for mitigating noncompliances.

Modifying a Standardized Permit


Sec.  270.320  How do I modify my RCRA standardized permit?

    You can modify your RCRA standardized permit by following the 
procedures found in 40 CFR 124.211 through 124.214.

[FR Doc. 05-16300 Filed 9-7-05; 8:45 am]
BILLING CODE 6560-50-P