TITLE 30.ENVIRONMENTAL QUALITY

Part 1. TEXAS NATURAL RESOURCE CONSERVATION COMMISSION

Chapter 37. FINANCIAL ASSURANCE

Subchapter I. FINANCIAL ASSURANCE FOR PETROLEUM UNDERGROUND STORAGE TANK SYSTEMS

30 TAC §§37.801, 37.802, 37.815, 37.820, 37.825, 37.830, 37.835, 37.840, 37.845, 37.850, 37.855, 37.860, 37.865, 37.870, 37.875, 37.880, 37.885, 37.890, 37.895

The Texas Natural Resource Conservation Commission (TNRCC or commission) proposes new Chapter 37, Subchapter I, §37.801, Applicability; §37.802, Definitions; §37.815, Amount and Scope of Required Financial Assurance; §37.820, Allowable Mechanisms and Combinations of Mechanisms; §37.825, Financial Test of Self-Insurance; §37.830, Guarantee; §37.835, Insurance and Risk Retention Group Coverage; §37.840, Surety Bond; §37.845, Letter of Credit; §37.850, Trust Fund; §37.855, Standby Trust Fund; §37.860, Substitution of Financial Assurance Mechanisms by Owner or Operator; §37.865, Cancellation or Non-renewal by a Provider of Financial Assurance; §37.870, Reporting, Registration and Certification; §37.875, Financial Assurance Recordkeeping; §37.880, Drawing on Financial Assurance Mechanisms; §37.885, Release from the Requirements; §37.890, Bankruptcy or Other Incapacity of Owner or Operator or Provider of Financial Assurance; and §37.895, Replenishment of Guarantees, Letters of Credit, or Surety Bonds. This proposal is being made concurrently with proposed changes to Chapter 334.

BACKGROUND AND SUMMARY OF THE FACTUAL BASIS FOR THE PROPOSED RULES

Proposed new Subchapter I, Financial Assurance for Petroleum Underground Storage Tank Systems, is proposed to be added to 30 TAC Chapter 37, as the result of ongoing efforts by the agency at regulatory reform. Chapter 37 is intended to consolidate all of the agency's financial assurance requirements, to eliminate redundancy and improve the clarity and readability of these rules. Currently, financial assurance requirements for petroleum underground storage tanks (USTs) exist in Chapter 334, Subchapter E, Financial Responsibility. These requirements are proposed to be repealed in Chapter 334 in a concurrent rulemaking proposal, and the Subchapter E language is proposed here to be transferred to Chapter 37, Subchapter I, with amendments. The proposed new Subchapter I sections were drafted in a two-step process. The first step involved is to make changes to existing financial assurance requirements for petroleum USTs based on House Bill (HB) 2815, 76th Legislature, 1999, (an Act relating to the petroleum storage tank program; providing a penalty) and its amendments to the Texas Water Code (TWC). The second step proposes changes to eliminate redundant requirements, to clarify wording and improve readability, to properly reflect federal requirements concerning local governments, and to consolidate provisions, whenever possible.

Under this proposal, and the concurrent Chapter 334 proposal, the latter chapter will recite the general requirement to have financial assurance, and will refer the reader to Subchapter I for the specific requirements.

A common change made throughout the proposed subchapter includes the use of "financial assurance" instead of the previously used "financial responsibility." The proposed new Subchapter I title is, "Financial Assurance for Petroleum Underground Storage Tank Systems." "Financial Assurance" is used in the subchapter title instead of "Financial Responsibility," which was used in Chapter 334, Subchapter E, to more accurately reflect the subject matter and to be compatible with the rest of Chapter 37. Another change made throughout the proposed subchapter includes the use of "agency" instead of "executive director" or "commission" in certain places to be consistent with the agency general definitions in Chapter 3 of this title.

Proposed Subchapter I is intended to be used in conjunction with concurrent changes proposed for Chapter 334. Some requirements of the proposed Subchapter I are also included for compatibility with federal regulations. Proposed Subchapter I has been modified to reflect the HB 2815 requirement for the creation of a compliance self-certification program. If the proposed rules are adopted, the previous wording used for financial assurance certification formerly found in §334.105 will no longer be applicable. Instead, an owner and/or operator will look to proposed Chapter 334, §334.8(b) for the requirements of financial assurance certification.

SECTION BY SECTION DISCUSSION

Unless otherwise noted, all the federal citations in this proposed rulemaking will be adopted as they currently exist, as well as prospectively amended by the United States Environmental Protection Agency.

Proposed §37.801, Applicability, is derived from §334.91. Section 37.801(a) is proposed to be amended to read: "This subchapter applies to an owner and operator of a petroleum underground storage tank (UST) system required to provide financial assurance under Chapter 334 of this title (relating to Underground and Aboveground Storage Tanks). This subchapter establishes requirements and mechanisms for demonstrating financial assurance for corrective action and third party liability." This amendment clarifies who is required to provide which types of financial assurance. Section 334.91(b), the second sentence of §334.91(e), and §334.92 were omitted in the transfer to proposed Subchapter I because the referenced USTs must now be in compliance with financial assurance requirements. Section 334.91(d) was not included because references to general petroleum UST program exclusions and exemptions would be duplicative of requirements in Chapter 334.

Proposed §37.802, Definitions, is proposed to be added to consolidate all financial assurance definitions pertaining to the petroleum UST program in this new subchapter. The definitions of "Accidental release," "Bodily injury," "Controlling interest," "Financial reporting year," "Legal defense cost," "Property damage," and "Provider financial assurance" were moved from §334.2, Definitions, to this chapter because the terms only apply to financial assurance matters. The remaining definitions are new, and are proposed to better implement both existing and new financial assurance requirements.

Proposed §37.815, Amount and Scope of Required Financial Assurance, is derived from repealed §334.93, Amount and Scope of Required Financial Responsibility. In the new section title, "Financial Responsibility" is proposed to be changed to "Financial Assurance" for consistency with the rest of Chapter 37. In §37.815(f) and (g), "financial" is proposed to be added in front of "assurance" wherever it appears. In §37.815(f), "owned or operated by that person" was added for greater clarity.

Proposed §37.820, Allowable Mechanisms and Combinations of Mechanisms, is derived from §334.94. In §37.820(a)(1), the references to "§334.95 - 334.101" are proposed to be updated to "§37.825 - 37.855"; "petroleum underground storage tanks" is proposed to be changed to "petroleum underground storage tank (UST) systems" for greater clarity; and "including a local government owner or operator" was added to clarify that local government owners and operators may use the mechanisms in subsections (a)(1) and (a)(2). Section 37.820(a)(2) is proposed to be added to contain local government financial assurance mechanisms required under 40 Code of Federal Regulations (CFR), Part 280, Technical Standards and Corrective Action Requirements for Owners and Operators of Underground Storage Tanks (UST), and Part 281, Approval of State UST Programs, to achieve state equivalency with federal requirements. In addition, §37.820(b), "financial responsibility" is proposed to be changed to "financial assurance" for consistency with the rest of Chapter 37; and "commission" is proposed to be changed to "agency."

Proposed §37.825, Financial Test of Self-Insurance, is derived from §334.95, with proposed changes and reorganization. This test requires an owner, operator, or guarantor using the financial test for multiple facilities or multiple programs to include all costs assured through a financial test when calculating its obligations. The test is intended to assist the owner, operator, or guarantor in identifying all of the environmental obligations assured under a financial test. In each instance in this section where the phrase "owner or operator, and/or guarantor" was originally in §334.95, and that section is being carried over to §37.825, the phrase has been punctuated as "owner, operator, and/or guarantor" to improve readability and be consistent with other subchapters in Chapter 37. In §37.825(a), the reference to "§334.93" is proposed to be changed to "§37.815"; and the reference to subsection "(g)" is proposed to be updated to "(c)" due to the reorganization of the section language. Proposed §37.825(b), with a new heading, was drafted from Subchapter E, §334.95(b)-(f). The language of proposed §37.825(b)(1) is derived from former subsection (b). The language in proposed §37.825(b)(1)(A) is derived from former subsection (b)(1), with the reference to "§334.93" updated to "§37.815;" and "commission" changed to "agency". The language in proposed §37.825(b)(1)(B) is derived from former subsection (b)(2), with "commission" changed to "agency"; and "40 Code of Federal Regulations (CFR) Parts 264, 265 or state equivalent" added to make the requirement sufficiently broad. The language in proposed §37.825(b)(1)(C) is derived from former subsection (b)(3), with "commission" changed to "agency" and the reference to "§331.46 of this title (relating to Plugging and Abandonment)" changed to "Chapter 331 of this title (relating to Underground Injection Control)" and "40 CFR Part 144" to make the requirement sufficiently broad. Proposed §37.825(b)(1)(D)-(F) were written to ensure that all financial assurance met through a self-insurance mechanism is included in the financial test information. This is consistent with the other subchapters in Chapter 37. Proposed §37.825(b)(2) is derived from former subsection (c), with "The owner or operator, and/or guarantor, must" deleted because it is no longer needed due to the section's reorganization. Proposed §37.825(b)(3) is derived from former subsection (d), with "The owner or operator, and/or guarantor, must" deleted because it is no longer needed due to the section's reorganization; and the reference to "subsection (l)" changed to "subsection (d) of this section" due to the reorganization. Proposed §37.825(b)(4) is derived from former subsection (e), with "The owner or operator, and/or guarantor, must" deleted because it is no longer needed due to the section's reorganization. Proposed §37.825(b)(5) is derived from former subsection (f), without change. Proposed subsection (c), with a new heading, was drafted from subsections (g)-(l). Proposed §37.825(c)(1) is derived from former subsection (g), with the references to "40 CFR §264.147(f)(1) as adopted by paragraph of §335.152(a)(6) of this title (relating to Standards)" and "§334.93" updated to "§37.541(a) and (b) (relating to Financial Test for Liability)" and "§37.815," respectively. Proposed §37.825(c)(2) language is derived from former subsections (h)-(j), with the reference to "subsection (l)" updated to "subsection (d) of this section." Proposed §37.825(c)(3) is derived from former subsection (k); however, the language in §37.825(c)(3)(A) and (B) is new, and was written to further clarify the independent public accountant audit requirements. Proposed §37.825(d) is derived from former subsection (l), with the following changes to its figure. The end of the second paragraph, a "Title 31" is updated to "Title 30;" The third paragraph is proposed to be deleted because it is duplicative of language proposed to be added following the original paragraph concerning "other EPA, state equivalent, or agency regulations." This new paragraph also provides information on each facility covered. The former table describing financial assurance obligations under Texas Water Commission regulations is proposed to be deleted and replaced with a table that encompasses environmental obligations for which financial assurance is provided through self-insurance under federal, state, or state equivalent regulations. In the last paragraph prior to Alternative I, references to "§334.95(b)" and "§334.95(g)" are updated to "§37.825(b)" and "§37.825(c)" The Alternative I dollar amount listing, item 2 contains new language to refer back to the "(a)-(e) total" in the previous dollar amount listing, and in item 12, an update is made in the reference to Dun and Bradstreet's financial strength rating from "(e)(1) or (k)(1)" to "4A or 5A". In the Alternative II dollar amount listing, item 2 contains new language to refer back to the "(a)-(e) total" (the total of the dollars individually shown in paragraphs a through e) in the dollar amount listing just prior to the Alternative I and II dollar amount listings. There are corrections proposed to typographical errors in Alternative II, Items 6, 15, 18, and 19. "New" is changed to "net;" "lines" is changed to "line;" "or" is changed to "of;" and "from" is changed to "for;" respectively. Near the end of the Alternative II listing, the reference to §334.95 is updated to §37.825, and again "Title 31" is updated to "Title 30." Proposed §37.825(e) is derived from former subsection (m), without change. Proposed §37.825(f) is derived from former subsection (n), with "executive director" changed to "agency". Proposed §37.825(g) is derived from former subsection (o), with the proposed addition of the word "financial" to "assurance" for clarity.

Proposed §37.830, Guarantee, is derived from §334.96. The language is proposed to be amended throughout to update all references to Chapter 334, Subchapter E sections, as well as updating "Title 31" to "Title 30." In addition, the reference in §37.830(b) to "executive director" is proposed to be changed to "agency." Also, in Figure 30 TAC §37.830(c), "Texas Water Commission" is proposed to be updated to "Texas Natural Resource Conservation Commission (TNRCC)" in its first usage and subsequently to "TNRCC." Also in this figure, to be consistent with other guarantor requirements already in Chapter 37, "on behalf of our affiliate" and its parenthetical phrase are proposed to be removed from the guarantee item 3 language, and in item 5, "and the Executive Director of the TNRCC" is proposed to be added so that this agency would also receive a copy of a guarantor notice of bankruptcy.

Proposed §37.835, Insurance and Risk Retention Group Coverage, is derived from §334.94. All references to Subchapter E sections are proposed to be updated, and Title "31" is proposed to be updated to Title "30." In addition, this section is proposed to correctly reference the Texas Natural Resource Conservation Commission. The following new language is proposed to be added to update both the certificate of insurance and the endorsement for changes to the federal financial assurance mechanisms. In item 1 after the description of the types of releases covered, the phrase "in accordance with and subject to the limits of liability, exclusions, conditions, and other terms of the policy;" is added. In item 2d., after "...(insert: "Insurer" or "Group") the phrase ", except for non-payment of premium or misrepresentation by the insured," is added. At the end of item 2d., the phrase "Cancellation for non-payment of premium or misrepresentation by the insured will be effective only upon written notice and only after expiration of a minimum of 10 days after a copy of such written notice is received by the insured." is added. Finally, item 2e, is deleted and replaced with the following text "The insurance covers claims otherwise covered by the policy that are reported to the (insert "Insurer" or "Group") within six months of the effective date of cancellation or non-renewal of the policy except where the new or renewed policy has the same retroactive date or a retroactive date earlier than that of the prior policy, and which arise out of any covered occurrence that commenced after the policy retroactive date, if applicable, and prior to such policy renewal or termination date. Claims reported during such extended reporting period are subject to the terms, conditions, limits, including limits of liability, and exclusions of the policy.)

Proposed §37.840, Surety Bond, is derived from §334.98. All references to Subchapter E are proposed to be updated, with a further update of changing Title "31" to Title "30." In addition, this section is proposed to correctly reference the Texas Natural Resource Conservation Commission.

Proposed §37.845, Letter of Credit, is derived from §334.99, Letter of Credit. All references to Subchapter E sections are proposed to be updated, with a further update of changing Title "31" to Title "30." In addition, this section is proposed to correctly reference Texas Natural Resource Conservation Commission. A proposed correction to §334.99(a) is made to change "letter-of-credit" to "letter of credit" to properly refer to the mechanism. In the figure, the word "of" is proposed to be deleted from the fourth line of paragraph three to correct a typographical error. Typographical errors in the figure are proposed for correction in paragraphs six and seven. The words "from" and "use" are proposed to be changed to "for" and "us," respectively.

Proposed §37.850, Trust Fund, is derived from §334.100, Trust Fund. All references to Subchapter E sections are proposed to be updated. The word "subpart" in §37.850(e) is proposed to be changed to "subchapter" for proper reference.

Proposed §37.855, Standby Trust Fund, is derived from §334.101. All references to Subchapter E sections are proposed to be updated, as well as a proposed update changing Title "31" to Title "30." Also, in the figure, "Texas Water Commission" is proposed to be replaced with "Texas Natural Resource Conservation Commission (TNRCC)" the first time, and "TNRCC" subsequently, to update the name of the agency; and to amend the word, "through" to "though" to correct a typographical error. An additional reference in §37.855(a) to "§37.840 of this title (relating to Surety Bond)" is proposed. The reference was inadvertently omitted from §334.101 and is necessary to be consistent with federal rules and the corresponding requirements in §37.840. Corrections to typographical errors in the figure are proposed. The word "schedule" should be capitalized in paragraph two; "therefor" should be "therefore" in paragraph four; and "instrumentally" in §8c. should be "instrumentality." The paragraph preceding §5 is proposed to include the phrase "In addition, the Trustee shall refund to the Grantor such amounts as the Executive Director specifies in writing." to provide clarity and conform with federal requirements.

Proposed §37.860, Substitution of Financial Assurance Mechanisms by Owner or Operator, is derived from §334.102, with the §37.860(a) cross reference to "§334.93" updated to "§37.815".

Proposed §37.865, Cancellation or Non-renewal by a Provider of Financial Assurance, is derived from §334.103. "A local government guarantee," is proposed to be added to §37.865(b) to conform to federal requirements and the addition of local government mechanisms to this subchapter. Proposed §37.865(c) includes additional language to conform to federal requirements which allows a cancellation notice of ten days for non-payment of premium or misrepresentation by the insured. In §37.865(d), "financial responsibility" is proposed to be changed to "financial assurance" for consistency with the rest of Chapter 37; and the cross references to "§334.104" and "§334.105" are proposed to be updated to "§37.870" and "§37.875," respectively.

Proposed §37.870, Reporting, Registration and Certification, is derived from §334.104, Reporting by Owner or Operator. The section title is proposed to be changed to reflect new registration language added to §37.870(b). The proposed subsections are reorganized for greater clarity and readability. The cross reference to "§334.105" is proposed to be updated to "§37.875;" and the word "evidence" is proposed to be changed to "proof" for greater clarity and enforceability. In §37.870(a)(1), the reference to Subchapter D is proposed to be updated; the phrase "current financial assurance documentation is already" is proposed to be added for greater clarity; and "commission" is proposed to be changed to "agency". In §37.870(a)(2), the references to "§334.95" and "§334.103" are proposed to be updated to "§37.825" and "§37.865," respectively; and §37.870(4) is proposed to require current proof of financial responsibility "when requested by the agency" to facilitate a check of adequate financial assurance by the agency at any time. Proposed §37.870(b) contains a cross-reference to registration requirements In §334.7, and provides the regulatory authority for certain financial assurance information required on the new UST Registration and Self-Certification Form. Proposed §37.870(c) contains a cross-reference to compliance certification requirements of §334.8.

Proposed §37.875, Financial Assurance Recordkeeping, is derived from §334.105. In §37.875(a), the reference to "§334.107" is proposed to be updated to "§37.885". The phrase "in a timely manner" is proposed to be added to describe the time frame in which records are required to be made available to the agency, and "executive director" is proposed to be changed to "agency." In §37.875(b), "financial responsibility" is proposed to be changed to "financial assurance" to be consistent with the rest of Chapter 37. In §37.875(b)(1), the reference to "§§334.95-334.99" is proposed to be updated to "§§37.825-37.855." including a reference to standby trust funds for proper cross-reference. In addition, federal regulations in 40 CFR §§280.104-280.107 (relating to Local Government Bond Rating Test, Local Government Financial Test, Local Government Guarantee, and Local Government Fund, respectively) concerning local government mechanisms are proposed to be incorporated as acceptable demonstrations of financial assurance which are required to be maintained by the owner or operator who qualifies for these options. In §37.875(b)(2), the following changes are proposed. A reference to the local government test or local government guarantee is added to conform to federal requirements. The words "Such evidence" are proposed to be changed to "This documentation" for greater accuracy and readability. In subsection (b), former paragraph (5) and its related "Certification of Financial Responsibility" are proposed to be deleted because the owner or operator will now be required to complete the required financial assurance information on the registration form provided by the agency. The new paragraph (5) is proposed to reference federal recordkeeping requirements applicable to the addition of local government mechanisms to this subchapter that also directs the reader to the federal rules.

Proposed §37.880, Drawing on Financial Assurance Mechanisms, is derived from §334.106. Section 37.880(a)(2) is proposed to be amended to change "executive director" to "agency", and to change "of this chapter" in the reference to Chapter 334, Subchapter D to "of this title" because this language is no longer within the same chapter. Section 37.880(b)(1) is proposed to be amended to change "executive director" to "agency," and to change "of this chapter" in the reference to Chapter 334, Subchapter D to "of this title" because this language is no longer within the same chapter. In §37.880(b)'s figure, "executive director" is proposed to be changed to "agency."

Proposed §37.885, Release from the Requirements, is derived from §334.107. The term "financial responsibility" is proposed to be changed to "financial assurance" for consistency with the rest of Chapter 37, "properly closed" and "closed" are proposed to be changed to "removed from service" to more accurately reflect the rule requirement, and "this chapter" is proposed to be changed to "§334.55 of this title (relating to Permanent Removal from Service)" because the financial assurance subchapter has now been moved to Chapter 37 and to provide a more specific reference.

Proposed §37.890, Bankruptcy or Other Incapacity of Owner or Operator or Provider of Financial Assurance, is derived from §334.108. The wording, "as specified in this subchapter" is proposed to be added to clarify how the owner or operator should notify the executive director.

Proposed §37.895, Replenishment of Guarantees, Letters of Credit, or Surety Bonds, is derived from §334.109. The phrase "...local government guarantee with standby trust," is added to conform to federal requirements and provide an appropriate reference to an allowed mechanism that like these other examples requires a standby trust.

Section 334.110, Corrective Action Deductibles, previously in Chapter 334, Subchapter E, is not proposed to be included in Subchapter I because the same information is located in §334.312, Owner/Operator Contribution.

FISCAL NOTE

Jeff Horvath, Strategic Planning and Appropriations Division, has determined that for the first five-year period the proposed rules are in effect, there will not be significant fiscal implications for the agency or other units of state and local government as a result of administration or enforcement of the proposed new Chapter 37, Subchapter I, Financial Assurance for Petroleum Underground Storage Tank Systems.

The proposed rules are intended to consolidate financial assurance requirements for petroleum storage tanks into Chapter 37 (a relatively new chapter that was created to contain all TNRCC financial assurance regulations), make changes to improve clarity and readability, reorders requirements into a new sequence, corrects cross references, and implements the requirements of HB 2815. House Bill 2815 implements a new compliance self-certification process for owners/operators of USTs containing regulated substances. UST owners/operators will be required to certify on an annual basis which tanks are in compliance with the listed regulations (which include financial assurance) and which tanks are not, and must also post an annual TNRCC delivery certificate at each facility. The proposed amendments provide the details of how financial assurance is incorporated into the new compliance self-certification program. Any costs to the state to implement the proposed rules are not expected to be significant.

The proposed rules would also conform with federal requirements relating to available financial assurance mechanisms for local governments.

PUBLIC BENEFIT

Mr. Horvath has also determined that for each year of the first five years the proposed rules are in effect, the public benefit anticipated from enforcement of and compliance with the proposed rules will be greater compliance with financial assurance requirements, which in turn increases the number of leaking petroleum storage tank sites that are properly and timely assessed and remediated. There are no significant increased economic costs anticipated to any person required to comply with the proposed rules because most changes from the repealed Chapter 334, Subchapter E language involve changes to improve clarity and readability, reordering requirements into a new sequence, correcting cross references, and implementing HB 2815 (which necessitates changes to existing financial assurance certification procedures). It is anticipated that the self-certification requirement for financial assurance will have no significant fiscal impact on owners and operators of UST systems containing petroleum substances because a financial assurance self-certification requirement also previously existed in repealed Chapter 334, Subchapter E.

SMALL BUSINESS AND MICRO-BUSINESS ANALYSES

No significant adverse economic effects are anticipated to any small businesses or micro-businesses as a result of implementing the proposed rules because most changes from the repealed Chapter 334, Subchapter E language involve editorial changes to improve clarity and readability, reordering requirements into a new sequence, correcting cross references, and implementing HB 2815 (which necessitates changes to existing financial certification procedures). Many of the small or micro-businesses could be owners/operators of retail service stations or convenience stores, and would therefore need to make themselves familiar with the new procedures for certifying compliance with financial assurance requirements. The expenses associated with these new procedures are anticipated to be minimal. Any costs associated with obtaining financial assurance are not costs associated with these proposed rules, because existing rules already require financial assurance.

REGULATORY IMPACT ASSESSMENT

The commission has reviewed the proposed rulemaking in light of the regulatory analysis requirements of Texas Government Code, §2001.0225, and has determined that the rulemaking is not subject to §2001.0225 because it does not meet the definition of a "major environmental rule" as defined in that statute. "Major environmental rule" means a rule the specific intent of which is to protect the environment or reduce risks to human health from environmental exposure and that may adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, or the public health and safety of the state or a sector of the state. The proposed rules do not adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, or the public health and safety of the state or a sector of the state because the proposed rules do not implement any requirements substantially greater than those in concurrently repealed Chapter 334, Subchapter E, except those required to implement HB 2815 regarding compliance self-certification and those to properly reflect federal requirements for financial assurance for local governments. These changes are anticipated to cause an insignificant increase in cost to affected facilities and will have no negative impacts on the environment or public health and safety. In addition, the proposed rules are not a "major environmental rule" because they do not meet the applicability requirements of a "major environmental rule" that are specified in Texas Government Code, §2001.0225. The proposed rules do not exceed a standard set by federal law, exceed an express requirement of state law, nor conflict with a requirement of a delegation agreement.

TAKINGS IMPACT ASSESSMENT

The commission has prepared a takings impact assessment for these rules pursuant to Texas Government Code, §2007.043. The following is a summary of that assessment. The primary purpose of the rulemaking is to consolidate the financial assurance requirements in repealed Chapter 334, Subchapter E into new Chapter 37, Subchapter I, as part of an ongoing effort to consolidate all agency financial assurance requirements into one rule chapter. Some changes have been made to these rules to improve clarity and readability, to reorder requirements into a new sequence, to correct cross references, to implement HB 2815 (which necessitates changes to existing financial assurance certification procedures), and to comply with federal requirements concerning financial assurance mechanisms for local governments. Promulgation and enforcement of these rules will not burden private real property because it is not the subject of these rules. Any costs associated with obtaining financial assurance are not costs associated with these proposed rules, because existing rules already require financial assurance.

While maintaining that this rulemaking does not create a burden on, or restrict or limit, private real property, the agency believes that an exemption under Texas Government Code, §2007.003(b), describes a situation which could be said to be applicable to the proposed rulemaking. Regarding an action reasonably taken to fulfill an obligation mandated by federal law, a portion of this rulemaking concerns ensuring that financial assurance mechanisms for local government comply with federal requirements per 40 CFR Part 280, Technical Standards and Corrective Action Requirements for Owners and Operators of Underground Storage Tanks (USTs).

The rules proposed as part of the commissioner's regulatory reform also do not create a burden on, or restrict or limit, private real property, because they are written to streamline and to clarify existing rules. Further, this rulemaking will not be the cause of a reduction in market value of real property. This action does not create a burden on private real property and will not constitute a takings under the Texas Government Code, §2007.

COASTAL MANAGEMENT PROGRAM CONSISTENCY REVIEW

The commission has reviewed this rulemaking pursuant to 31 TAC §505.22 and found that the proposed rulemaking is not subject to the Texas Coastal Management Program (CMP). The rulemaking package concerning Chapter 334, which is concurrently being proposed, has been found to be subject to the CMP (see discussion in that preamble under "Coastal Management Program Consistency Review"). Part of that package concerns implementing the compliance self-certification program required under HB 2815 (see discussion under "Fiscal Note"). The rule language being moved to Chapter 37 in the subject rulemaking contains alterations to existing certification requirements, taking into account the new certification program created by HB 2815 and written into the Chapter 334 proposal. The changes to the certification language in the Chapter 37 proposal concern the procedures to be used when certifying compliance with financial assurance requirements, and these changes in and of themselves do not trigger applicability under the CMP.

SUBMITTAL OF COMMENTS

Comments may be submitted to Angela Slupe, Office of Environmental Policy, Analysis, and Assessment, MC 205, P.O. Box 13087, Austin, Texas 78711-3087; or faxed to (512) 239-4808. All comments should reference Rule Log Number 1999-038-334-WS. Comments must be received by 5:00 p.m., August 1, 2000. For further information, please contact John Racanelli, Financial Administration Division at (512) 239-4989.

STATUTORY AUTHORITY

The new sections are proposed under TWC, §5.103, which provides the commission authority to adopt any rules necessary to carry out its powers and duties under this code and other laws of this state and to adopt rules repealing any statement of general applicability that interprets law or policy; §5.105, which authorizes the commission to establish and approve all general policy of the commission by rule; and §26.011, which requires the commission to control the quality of water by rule. The new sections are also proposed under TWC, §26.345, which provides the commission authority to develop a regulatory program and to adopt rules regarding UST and aboveground storage tanks; and §26.352, which requires the commission to adopt by rule requirements for maintaining evidence of financial responsibility for taking corrective action and compensating third parties for bodily injury and property damage caused by sudden and nonsudden accidental releases arising from operating an UST.

The proposed sections implement TWC, Chapter 26, Subchapter I, Underground and Aboveground Storage Tanks.

§37.801. Applicability.

(a)

This subchapter applies to an owner and operator of a petroleum underground storage tank (UST) system required to provide financial assurance under Chapter 334 of this title (relating to Underground and Aboveground Storage Tanks). This subchapter establishes requirements and mechanisms for demonstrating financial assurance for corrective action and third party liability.

(b)

State and federal governmental entities whose debts and liabilities are the debts and liabilities of a state or the United States are exempt from the requirements of this subchapter.

(c)

If the owner and operator of a petroleum UST are separate persons, only one person is required to demonstrate financial assurance; however, both parties are liable in the event of noncompliance.

§37.802. Definitions.

General agency terms are defined in Chapter 3 of this title (relating to Definitions). Definitions for financial assurance terms that appear throughout this subchapter may alternatively be found in §37.11 of this title (relating to Definitions) or in §37.402 of this title (relating to Definitions). Petroleum UST specific terms may be found in Chapter 334, Subchapter A, §334.2 of this title (relating to Definitions). When used in this subchapter, the following terms shall have the meanings given below, unless otherwise specified.

(1)

Accidental release -- Any sudden or nonsudden release of petroleum from an UST that results in a need for corrective action and/or compensation for bodily injury or property damage neither expected nor intended by the tank owner or operator.

(2)

Bodily injury -- The meaning given to this term by applicable state law; however, this term shall not include those liabilities which, consistent with standard insurance industry practices, are excluded from coverage in liability insurance policies for bodily injury.

(3)

Chief financial officer -- In the case of local government owners and operators, the individual with the overall authority and responsibility for the collection, disbursement, and use of funds by the local government.

(4)

Controlling interest -- Direct ownership of at least 50% of the voting stock of another entity.

(5)

Financial reporting year -- The latest consecutive twelve-month period for which any of the following reports used to support a financial test is prepared:

(A)

a 10-K report submitted to the United States Securities and Exchange Commission;

(B)

an annual report of tangible net worth submitted to Dun and Bradstreet; or

(C)

annual reports submitted to the Energy Information Administration or the Rural Electrification Administration. Financial reporting year may thus comprise a fiscal or calendar year period.

(6)

Legal defense cost -- any expense that an owner or operator or provider of financial assurance incurs in defending against claims or actions brought:

(A)

by United States Environmental Protection Agency or a state to require corrective action or to recover the costs of corrective action;

(B)

by or on behalf of a third party for bodily injury or property damage caused by an accidental release; or

(C)

by any person to enforce the terms of a financial assurance mechanism.

(7)

Local government -- The meaning given this term by applicable state law. The term includes:

(A)

counties, municipalities, townships, separately chartered and operated special districts (including local government public transit systems and redevelopment authorities), and independent school districts authorized as governmental bodies by state charter or constitution; and

(B)

special districts and independent school districts established by counties, municipalities, townships, and other general purpose governments to provide essential services.

(8)

Occurrence -- An accident, including continuous or repeated exposure to conditions, which result in a release from an UST.

(9)

Property damage -- The meaning given this term by applicable state law. This term shall not include those liabilities which, consistent with standard insurance industry practices, are excluded from coverage in liability insurance policies for property damage. However, exclusions for property damage shall not include corrective action associated with releases from tanks where covered by the policy.

(10)

Provider of financial assurance -- An entity that provides financial assurance to an owner or operator of an UST through one of the approved mechanisms.

(11)

Substantial governmental relationship -- The extent of a governmental relationship necessary under applicable state law to make an added guarantee contract issued incident to that relationship valid and enforceable. A guarantee contract is issued "incident to that relationship" if it arises from a clear commonality of interest in the event of an UST release such as coterminous boundaries, overlapping constituencies, common ground-water aquifer, or other relationship other than monetary compensation that provides a motivation for the guarantor to provide a guarantee.

§37.815. Amount and Scope of Required Financial Assurance.

(a)

Owners or operators of petroleum underground storage tanks (USTs) must demonstrate financial assurance for taking corrective action and for compensating third parties for bodily injury and property damage caused by accidental releases arising from the operation of petroleum USTs in at least the following per-occurrence amounts:

(1)

for owners or operators of petroleum USTs that are located at petroleum marketing facilities, or that handle an average of more than 10,000 gallons of petroleum per month based on annual throughput for the previous calendar year, $1 million; or

(2)

for all other owners or operators of petroleum USTs; $500,000.

(b)

Owners or operators of petroleum USTs must demonstrate financial assurance for taking corrective action and for compensating third parties for bodily injury and property damage caused by accidental releases arising from the operation of petroleum USTs in at least the following annual aggregate amounts:

(1)

for owners or operators of 1 to 100 petroleum USTs within the United States, $1 million; and

(2)

for owners or operators of 101 or more petroleum USTs within the United States, $2 million.

(c)

For the purposes of subsections (b) and (f) of this section only, petroleum UST means a single containment unit and does not mean combinations of single containment units.

(d)

Except as provided in subsection (e) of this section, the amount of assurance provided by each mechanism or combination of mechanisms must be in the full amount specified in subsections (a) and (b) of this section, if the owner or operator uses separate mechanisms or separate combinations of mechanisms to demonstrate financial assurance for:

(1)

taking corrective action;

(2)

compensating third parties for bodily injury and property damage caused by sudden accidental releases; or

(3)

compensating third parties for bodily injury and property damage caused by nonsudden accidental releases

(e)

If the owner or operator uses separate mechanisms or separate combinations of mechanisms to demonstrate financial assurance for different petroleum USTs, the annual aggregate required shall be based on the number of tanks covered by each separate mechanism or combination of mechanisms.

(f)

Owners or operators shall review the amount of aggregate financial assurance provided whenever additional petroleum USTs are acquired or installed. If the number of petroleum USTs within the United States owned or operated by that person for which financial assurance must be provided exceeds 100, the owner or operator shall demonstrate financial assurance in the amount of at least $2 million of annual aggregate by the anniversary of the date on which the mechanism demonstrating financial assurance became effective. If financial assurance is being demonstrated by a combination of mechanisms, the owner or operator shall demonstrate financial assurance in the amount of at least $2 million of annual aggregate by the first-occurring effective date anniversary of any one of the mechanisms combined (other than a financial test or guarantee) to provide financial assurance.

(g)

The amounts of financial assurance required under this section exclude legal defense costs.

(h)

The required per-occurrence and annual aggregate coverage amounts do not in any way limit the liability of the owner or operator.

§37.820. Allowable Mechanisms and Combinations of Mechanisms.

(a)

Subject to the limitations of subsections (b) and (c) of this section:

(1)

an owner or operator, including a local government owner or operator, may use any one or combination of the mechanisms listed in §37.825 of this title (relating to Financial Test of Self-Insurance), §37.830 of this title (relating to Guarantee), §37.835 of this title (relating to Insurance and Risk Retention Group Coverage), §37.840 of this title (relating to Surety Bond), §37.845 of this title (relating to Letter of Credit), §37.850 of this title (relating to Trust Fund), and §37.855 of this title (relating to Standby Trust Fund) to demonstrate financial assurance under this subchapter for one or more underground storage tank (UST) systems; and

(2)

A local government owner or operator may use any one or a combination of the mechanisms listed in 40 Code of Federal Regulations §§280.104 - 280.107 (relating to Local Government Bond Rating Test, Local Government Financial Test, Local Government Guarantee, Local Government Fund, respectively) to demonstrate financial assurance under this subchapter for one or more USTs.

(b)

An owner or operator may use a guarantee or surety bond to establish financial assurance only if the Attorney General of Texas has submitted a written statement to the agency that a guarantee or surety bond executed as described in this section is a legally valid and enforceable obligation in the state.

(c)

An owner or operator may use self-insurance in combination with a guarantee only if, for the purpose of meeting the requirements of the financial test under this rule, the financial statements of the owner or operator are not consolidated with the financial statements of the guarantor.

§37.825. Financial Test of Self-Insurance.

(a)

An owner, operator, and/or guarantor, may satisfy the requirements of §37.815 of this title (relating to Amount and Scope of Required Financial Assurance) by passing a financial test as specified in this section. To pass the financial test of self-insurance, the owner, operator, and/or guarantor must meet the criteria of subsections (b) or (c) of this section based on year-end financial statements for the latest completed fiscal year.

(b)

The owner, operator, and/or guarantor must meet the requirements of this subsection referred to as Alternative 1. The owner, operator, and/or guarantor must:

(1)

Have a tangible net worth of at least ten times:

(A)

the total of the applicable aggregate amount required by §37.815 of this title based on the number of underground storage tanks for which a financial test is used to demonstrate financial assurance to the agency under this section;

(B)

the sum of the corrective action cost estimates, the current closure and post-closure care cost estimates, and amount of liability coverage for which a financial test is used to demonstrate financial assurance to the agency under Chapter 335 of this title (relating to Industrial Solid Waste and Municipal Hazardous Waste), 40 Code of Federal Regulations (CFR) Parts 264, 265, or state equivalent;

(C)

the sum of current plugging and abandonment cost estimates for which a financial test is used to demonstrate financial assurance to the agency under Chapter 331 of this title (relating to Underground Injection Control), 40 CFR Part 144 or state equivalent;

(D)

the sum of municipal solid waste cost estimates for which a financial test is used to demonstrate financial assurance to the agency under Chapter 330 (relating to Municipal Solid Waste), 40 CFR Part 258 or state equivalent;

(E)

the sum of current polychlorinated biphenyl (PCB) cost estimates for which a financial test is used to demonstrate financial assurance to the United States Environmental Protection Agency (EPA) under 40 CFR Part 761; and

(F)

the sum of additional environmental obligations not identified above.

(2)

Have a tangible net worth of at least $10 million.

(3)

Have a letter signed by the chief financial officer as specified in subsection (d) of this section.

(4)

Either:

(A)

file financial statements annually with the United States Securities and Exchange Commission (SEC), the Energy Information Administration, or the Rural Electrification Administration; or

(B)

report annually the firm's tangible net worth to Dun and Bradstreet, and Dun and Bradstreet must have assigned the firm a financial strength rating of 4A or 5A.

(5)

The firm's year-end financial statements, if independently audited, cannot include an adverse auditor's opinion, a disclaimer of opinion, or a "going concern" qualification.

(c)

The owner, operator, and/or guarantor must meet the requirements of this subsection referred to as Alternative 2.

(1)

The owner, operator, and/or guarantor must meet the financial test requirements of §37.541(a) and (b) of this title (relating to Financial Test for Liability), substituting the appropriate amounts specified in §37.815(b)(1) and (2) of this title for the "amount of liability coverage" each time specified in that section.

(2)

The fiscal year-end financial statements of the owner or operator, and/or guarantor, must be examined by an independent certified public accountant and be accompanied by the accountant's report of the examination.

(A)

The firm's year-end financial statements cannot include an adverse auditor's opinion, a disclaimer of opinion, or a "going concern" qualification.

(B)

The owner, operator, and/or guarantor, must have a letter signed by the chief financial officer as specified in subsection (d) of this section.

(3)

If the financial statements of the owner, operator, and/or guarantor, are not submitted annually to the SEC, the Energy Information Administration or the Rural Electrification Administration, the owner, operator, and/or guarantor, must obtain a special report by an independent certified public accountant stating that:

(A)

the accountant has compared the data which the letter from the chief financial officer specifies as having been derived from the independently audited, year-end financial statements for the latest fiscal year with the amounts in such financial statements; and

(B)

in connection with that procedure:

(i)

such amounts were found to be in agreement; or

(ii)

no matters came to the attention of the independent certified public accountant which indicated that the specified data should be adjusted.

(d)

To demonstrate that it meets the financial test under subsection (b) or (c) of this section, the chief financial officer of the owner, operator, and/or guarantor, must sign, within 120 days of the close of each financial reporting year, as defined by the 12-month period for which financial statements used to support the financial test are prepared, a letter worded exactly as follows, except that the instructions in parentheses are to be replaced by the relevant information and the parentheses deleted.

Figure: 30 TAC §37.825(d)

(e)

If an owner or operator using the test to provide financial assurance finds that he or she no longer meets the requirements of the financial test based on the year-end financial statements, the owner or operator must obtain alternative coverage within 150 days of the end of the year for which financial statements have been prepared.

(f)

The agency may require reports of financial condition at any time from the owner, operator, and/or guarantor. If the agency finds, on the basis of these reports or other information, that the owner, operator, and/or guarantor, no longer meets the financial test requirements of subsections (b) or (c) and (d) of this section, the owner or operator must obtain alternative coverage within 30 days after notification of this finding.

(g)

If the owner or operator fails to obtain alternate financial assurance within 150 days of finding that he or she no longer meets the requirements of the financial test based on the year-end financial statements, or within 30 days of notification by the executive director that he or she no longer meets the requirements of the financial test, the owner or operator must notify the executive director of this failure within ten days.

§37.830. Guarantee.

(a)

An owner or operator may satisfy the requirements of §37.815 of this title (relating to Amount and Scope of Required Financial Responsibility) by obtaining a guarantee that conforms to the requirements of this section. The guarantor must be:

(1)

a firm that:

(A)

possesses a controlling interest in the owner or operator;

(B)

possesses a controlling interest in a firm described under subparagraph (A) of this paragraph; or

(C)

is controlled through stock ownership by a common parent firm that possesses a controlling interest in the owner or operator; or

(2)

a firm engaged in a substantial business relationship with the owner or operator and issuing the guarantee as an act incident to that business relationship.

(b)

Within 120 days of the close of each financial reporting year the guarantor must demonstrate that it meets the financial test criteria of §37.825 of this title (relating to Financial Test of Self-Insurance) based on year-end financial statements for the latest completed financial reporting year by completing the letter from the chief financial officer described in §37.825(d) of this title and must deliver the letter to the owner or operator. If the guarantor fails to meet the requirements of the financial test at the end of any financial reporting year, within 120 days of the end of that financial reporting year the guarantor shall send by certified mail, before cancellation or nonrenewal of the guarantee, notice to the owner or operator. If the agency notifies the guarantor that he or she no longer meets the requirements of the financial test of §37.825(b) or (c) and (d) of this title the guarantor must notify the owner or operator within ten days of receiving this notification from the agency. In both cases, the guarantee will terminate no less than 120 days after the date the owner or operator receives the notification, as evidenced by the return receipt. The owner or operator must obtain alternate coverage as specified in §37.890(c) of this title (relating to Bankruptcy or Other Incapacity of Owner or Operator or Provider of Financial Assurance).

(c)

The guarantee must be worded as follows, except that instructions in parentheses are to be replaced with the relevant information and the parentheses deleted.

Figure: 30 TAC §37.830(c)

(d)

An owner or operator who uses a guarantee to satisfy the requirements of §37.815 of this title must establish a standby trust fund when the guarantee is obtained. Under the terms of the guarantee, all amounts paid by the guarantor under the guarantee will be deposited directly into the standby trust fund in accordance with instructions from the executive director under §37.880 of this title. This standby trust fund must meet the requirements specified in §37.855 of this title (relating to Standby Trust Fund).

§37.835. Insurance and Risk Retention Group Coverage.

(a)

An owner or operator may satisfy the requirements of §37.815 of this title (relating to Amount and Scope of Required Financial Responsibility) by obtaining liability insurance that conforms to the requirements of this section from a qualified insurer or risk retention group. This insurance may be in the form of a separate insurance policy or an endorsement to an existing insurance policy.

(b)

Each insurance policy must be amended by an endorsement as specified in paragraph (1) of this subsection or evidenced by a certificate of insurance as specified in paragraph (2) of this subsection, except that instructions in parentheses must be replaced with the relevant information and the parentheses deleted.

(1)

Endorsement.

Figure: 30 TAC §37.835(b)(1)

(2)

Certificate of Insurance

Figure: 30 TAC §37.835(b)(2)

(c)

Each insurance policy must be issued by an insurer or a risk retention group that, at a minimum, is licensed to transact the business of insurance or is eligible to provide insurance as an excess or surplus lines insurer in Texas.

§37.840. Surety Bond.

(a)

An owner or operator may satisfy the requirements of §37.815 of this title (relating to Amount and Scope of Required Financial Responsibility) by obtaining a surety bond that conforms to the requirements of this section. The surety company issuing the bond must be among those listed as acceptable sureties on federal bonds in the latest Circular 570 of the United States Department of the Treasury.

(b)

The surety bond must be worded as follows, except that instructions in parentheses must be replaced with the relevant information and the parentheses deleted.

Figure: 30 TAC §37.840(b)

(c)

Under the terms of the bond, the surety will become liable on the bond obligation when the owner or operator fails to perform as guaranteed by the bond. In all cases, the surety's liability is limited to the per-occurrence and annual aggregate penal sums.

(d)

The owner or operator who uses a surety bond to satisfy the requirements of §37.815 of this title must establish a standby trust fund when the surety bond is acquired. Under the terms of the bond, all amounts paid by the surety under the bond will be deposited directly into the standby trust fund in accordance with instructions from the executive director under §37.880 of this title (relating to Drawing on Financial Assurance Mechanisms). This standby trust fund must meet the requirements specified in §37.855 of this title (relating to Standby Trust Fund).

§37.845. Letter of Credit.

(a)

An owner or operator may satisfy the requirements of §37.815 of this title (relating to Amount and Scope of Required Financial Responsibility) by obtaining an irrevocable standby letter of credit that conforms to the requirements of this section. The issuing institution must be an entity that has the authority to issue letters of credit in Texas and whose letter of credit operations are regulated and examined by a federal or state agency.

(b)

The letter of credit must be worded as follows, except that instructions in parentheses are to be replaced with the relevant information and the parentheses deleted.

Figure: 30 TAC §37.845(b)

(c)

An owner or operator who uses a letter of credit to satisfy the requirements of §37.815 of this title must also establish a standby trust fund when the letter of credit is acquired. Under the terms of the letter of credit, all amounts paid under a draft by the executive director will be deposited by the issuing institution directly into the standby trust fund in accordance with instructions from the executive director under §37.880 of this title (relating to Drawing on Financial Assurance Mechanisms). This standby trust fund must meet the requirements specified in §37.855 of this title (relating to Standby Trust Fund).

(d)

The letter of credit must be irrevocable with a term specified by the issuing institution. The letter of credit must provide that credit be automatically renewed for the same term as the original term, unless, at least 120 days before the current expiration date, the issuing institution notifies the owner or operator by certified mail of its decision not to renew the letter of credit. Under the terms of the letter of credit, the 120 days will begin on the date when the owner or operator receives the notice, as evidenced by the return receipt.

§37.850. Trust Fund.

(a)

An owner or operator may satisfy the requirements of §37.815 of this title (relating to Amount and Scope of Required Financial Assurance) by establishing a trust fund that conforms to the requirements of this section. The trustee must be an entity that has the authority to act as a trustee and whose trust operations are regulated and examined by a federal agency or an agency of the State of Texas.

(b)

The wording of the trust agreement must be identical to the wording specified in §37.855(b) of this title (relating to Standby Trust Fund), and must be accompanied by a formal certification of acknowledgment as specified in §37.855(c) of this title.

(c)

The trust fund, when established, must be funded for the full required amount of coverage, or funded for part of the required amount of coverage and used in combination with other mechanism(s) that provide the remaining required coverage.

(d)

If the value of the trust fund is greater than the required amount of coverage, the owner or operator may submit a written request to the executive director for release of the excess.

(e)

If other financial assurance as specified in this subchapter is substituted for all or part of the trust fund, the owner or operator may submit a written request to the executive director for release of the excess.

(f)

Within 60 days after receiving a request from the owner or operator for release of funds as specified in subsections (d) or (e) of this section, the executive director will instruct the trustee to release to the owner or operator such funds as the executive director specifies in writing.

§37.855. Standby Trust Fund.

(a)

An owner or operator using any one of the mechanisms authorized by §37.830 of this title (relating to Guarantee), §37.840 of this title (relating to Surety Bond), or §37.845 of this title (relating to Letter of Credit) must establish a standby trust fund when the mechanism is acquired. The trustee of the standby trust fund must be an entity that has the authority to act as a trustee and whose trust operations are regulated and examined by a federal agency or an agency of the State of Texas.

(b)

The standby trust agreement or trust agreement must be worded as follows, except the instructions in parentheses are to be replaced with the relevant information and the parentheses deleted.

Figure: 30 TAC §37.855(b)

(c)

The standby trust agreement or trust agreement must be accompanied by a formal certification of acknowledgment similar to the following:

Figure: 30 TAC §37.855(c)

(d)

The executive director will instruct the trustee to refund the balance of the standby trust fund to the provider of financial assurance if the executive director determines that no additional corrective action costs or third-party liability claims will occur as a result of a release covered by the financial assurance mechanism for which the standby trust fund was established.

(e)

An owner or operator may establish one trust fund as the depository mechanism for all funds assured in compliance with this rule.

§37.860. Substitution of Financial Assurance Mechanisms by Owner or Operator.

(a)

An owner or operator may substitute any alternate financial assurance mechanisms as specified in this subchapter provided that at all times he or she maintains an effective financial assurance mechanism or combination of mechanisms that satisfies the requirements of §37.815 of this title (relating to Amount and Scope of Required Financial Responsibility).

(b)

After obtaining alternate financial assurance as specified in this subchapter, an owner or operator may cancel a financial assurance mechanism by providing notice to the provider of financial assurance.

§37.865. Cancellation or Non-renewal by a Provider of Financial Assurance.

(a)

Except as otherwise provided, a provider of financial assurance may cancel or fail to renew an assurance mechanism by sending a notice of termination by certified mail to the owner or operator.

(b)

Termination of a guarantee, a local government guarantee, a surety bond, or a letter of credit may not occur until 120 days after the date on which the owner or operator receives the notice of termination, as evidenced by the return receipt.

(c)

Termination of insurance or risk retention group coverage, except for non-payment or misrepresentation by the insured, or state-funded assurance may not occur until 60 days after the date on which the owner or operator receives the notice of termination, as evidenced by the return receipt. Termination for non-payment of premium or misrepresentation by the insured may not occur until a minimum of ten days after the date on which the owner or operator receives the notice of termination, as evidenced by the return receipt.

(d)

If a provider of financial assurance cancels or fails to renew for reasons other than incapacity of the provider as specified in §37.870 of this title (relating to Reporting, Registration, and Certification), the owner or operator must obtain alternate coverage as specified in this section within 60 days after receipt of the notice of termination. If the owner or operator fails to obtain alternate coverage within 60 days after receipt of the notice of termination, the owner or operator must notify the executive director of this failure and submit:

(1)

the name and address of the provider of financial assurance;

(2)

the effective date of termination; and

(3)

the evidence of the financial assurance mechanism subject to the termination maintained in accordance with §37.875(b) of this title (relating to Financial Assurance Recordkeeping).

§37.870. Reporting, Registration, and Certification.

(a)

Reporting. An owner or operator must submit the appropriate forms listed in §37.875(b) of this title (relating to Financial Assurance Recordkeeping) documenting current proof of financial assurance to the executive director:

(1)

within 30 days after the owner or operator identifies a release from an underground storage tank (UST) required to be reported under Chapter 334, Subchapter D of this title (relating to Release Reporting and Corrective Action), unless current financial assurance documentation is already on file with the agency;

(2)

if the owner or operator fails to obtain alternate coverage as required by this subchapter, within 30 days after the owner or operator receives notice of:

(A)

commencement of a voluntary or involuntary proceeding under Title 11 (Bankruptcy), United States Code, naming a provider of financial assurance as a debtor;

(B)

suspension or revocation of the authority of a provider of financial assurance to issue a financial assurance mechanism;

(C)

failure of a guarantor to meet the requirements of the financial test; or

(D)

other incapacity of a provider of financial assurance;

(3)

as required by §37.825 of this title (relating to Financial Test of Self Insurance) and §37.865 of this title (relating to Cancellation or Non-renewal by a Provider of Financial Assurance); or

(4)

when requested by the agency.

(b)

Registration. An owner or operator must register and update the registration whenever there is a change in the financial assurance mechanism or coverage amount, as specified in §334.7 of this title (relating to Registration for Underground Storage Tanks (USTs) and UST systems). The owner or operator must identify, in the appropriate space on the authorized agency form, the financial assurance mechanisms used to demonstrate compliance with corrective action and third party liability as described in this subchapter.

(c)

For certification requirements for petroleum USTs, refer to §334.8(b) of this title (relating to Certification for Underground Storage Tanks (USTs) and UST systems).

§37.875. Financial Assurance Recordkeeping.

(a)

Owners or operators must maintain evidence of all financial assurance mechanisms used to demonstrate financial assurance under this subchapter for a petroleum underground storage tank (UST) until released from the requirements of this subchapter under §37.885 of this title (relating to Release from the Requirements). An owner or operator must maintain this evidence at the UST site or the owner's or operator's place of business. Records maintained off-site must be made available in a timely manner upon request of the agency.

(b)

An owner or operator must maintain the following types of evidence of financial assurance.

(1)

An owner or operator using a financial assurance mechanism specified in §37.825 of this title (relating to Financial Test of Self-Insurance), §37.830 of this title (relating to Guarantee), §37.835 of this title (relating to Insurance and Risk Retention Group Coverage), §37.840 of this title (relating to Surety Bond), §37.845 of this title (relating to Letter of Credit), §37.850 of this title (relating to Trust Fund), §37.855 of this title (relating to Standby Trust Fund), and 40 Code of Federal Regulations §§280.104 - 280.107 (relating to Local Government Bond Rating Test, Local Government Financial Test, Local Government Guarantee, and Local Government Fund, respectively) must maintain a copy of the instrument worded as specified.

(2)

An owner or operator using a financial test or guarantee, or a local government financial test, or a local government guarantee supported by the local government financial test must maintain a copy of the chief financial officer's letter based on year-end financial statements for the most recent completed financial reporting year. This documentation must be on file no later than 120 days after the close of the financial reporting year.

(3)

An owner or operator using a guarantee, surety bond, or letter of credit must maintain a copy of the signed standby trust fund agreement and copies of any amendments to the agreement.

(4)

An owner or operator using an insurance policy or risk retention group coverage must maintain a copy of the signed insurance policy or risk retention group coverage policy, with the endorsement or certificate of insurance and any amendments to the agreements.

(5)

A local government owner or operator must comply with the recordkeeping requirements of 40 CFR §280.111(b)(4)-(6) and (9)-(10) as applicable to the local government mechanism used to demonstrate financial assurance.

§37.880. Drawing on Financial Assurance Mechanisms.

(a)

The executive director shall require the guarantor, surety, or institution issuing a letter of credit to place the amount of funds stipulated by the executive director, up to the limit of funds provided by the financial assurance mechanism, into the standby trust if:

(1)

the owner or operator fails to establish alternate financial assurance within 60 days after receiving notice of cancellation of the guarantee, surety bond, letter of credit, or, as applicable, other financial assurance mechanism; and

(2)

the agency determines or suspects that a release from an underground storage tank (UST) covered by the mechanism has occurred and so notifies the owner or operator or the owner or operator has notified the executive director under Chapter 334, Subchapter D of this title (relating to Release Reporting and Corrective Action) of a release from an UST covered by the mechanism; or

(3)

the conditions of subsections (b)(1) or (2)(A) or (B) of this section are satisfied.

(b)

The executive director may draw on a standby trust fund when:

(1)

the agency makes a final determination that a release has occurred and immediate or long-term corrective action for the release is needed, and the owner or operator, after appropriate notice and opportunity to comply, has not conducted corrective action as required under Chapter 334, Subchapter D of this title; or

(2)

the executive director has received either:

(A)

certification from the owner or operator and the third-party liability claimant(s) and from attorneys representing the owner or operator and the third-party liability claimant(s) that the third-party liability claim should be paid. The certification must be worded as follows, except that instructions in parentheses are to be replaced with the relevant information and the parentheses deleted:; or

Figure 30 TAC §37.880(b)(2)(A)

(B)

a valid final court order establishing a judgment against the owner or operator for bodily injury or property damage caused by an accidental release from an UST covered by financial assurance under this subchapter and the agency determines that the owner or operator has not satisfied the judgment.

(c)

If the agency determines that the amount of corrective action costs and third-party liability claims eligible for payment under subsection (b) of this section may exceed the balance of the standby trust fund and the obligation of the provider of financial assurance, the first priority for payment shall be corrective action costs necessary to protect human health and the environment. The executive director shall pay third-party liability claims in the order in which the executive director receives certifications under subsection (b)(2)(A) of this section and valid court orders under subsection (b)(2)(B) of this section.

§37.885. Release from the Requirements.

An owner or operator is no longer required to maintain financial assurance under this subchapter for an underground storage tank after the tank has been removed from service or, if corrective action is required, after corrective action has been completed and the tank has been properly removed from service in accordance with the requirements of §334.55 of this title (relating to Permanent Removal from Service).

§37.890. Bankruptcy or Other Incapacity of Owner or Operator or Provider of Financial Assurance.

(a)

Within ten days after commencement of a voluntary or involuntary proceeding under Title 11 (Bankruptcy), United States Code, naming an owner or operator as debtor, the owner or operator must notify the executive director by certified mail of this commencement and submit the appropriate forms listed in §37.875 of this title (relating to Financial Assurance Recordkeeping) documenting current financial responsibility.

(b)

Within ten days after commencement of a voluntary or involuntary proceeding under Title 11 (Bankruptcy), United States Code, naming a guarantor providing financial assurance as debtor, this guarantor must notify the owner or operator by certified mail of this commencement as required under §37.830 of this title (relating to Guarantee).

(c)

An owner or operator who obtains financial assurance by a mechanism other than the financial test of self-insurance will be deemed to be without the required financial assurance in the event of a bankruptcy or incapacity of its provider of financial assurance, or a suspension or revocation of the authority of the provider of financial assurance to issue a guarantee, insurance policy, risk retention group coverage policy, surety bond, letter of credit, or state-required mechanism. The owner or operator must obtain alternate financial assurance as specified in this subchapter within 30 days after receiving notice of this event. If the owner or operator does not obtain alternate coverage within 30 days after this notification, he or she must notify the executive director as specified in this subchapter.

§37.895. Replenishment of Guarantees, Letters of Credit, or Surety Bonds.

(a)

If at any time after a standby trust is funded upon the instruction of the executive director with funds drawn from a guarantee, local government guarantee with standby trust, letter of credit, or surety bond, and the amount in the standby trust is reduced below the full amount of coverage required, the owner or operator shall by the anniversary date of the financial mechanism from which the funds were drawn:

(1)

replenish the value of financial assurance to equal the full amount of coverage required; or

(2)

acquire another financial assurance mechanism for the amount by which funds in the standby trust have been reduced.

(b)

For purposes of this section, the full amount of coverage required is the amount of coverage specified in §37.815 of this title (relating to Amount and Scope of Required Financial Assurance). If a combination of mechanisms was used to provide the assurance funds which were drawn upon, replenishment shall occur by the earliest anniversary date among the mechanisms.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on May 19, 2000.

TRD-200003500

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: August 1, 2000

For further information, please call: (512) 239-4712


Chapter 205. GENERAL PERMITS FOR WASTE DISCHARGES

Subchapter A. GENERAL PERMITS FOR WASTE DISCHARGES

30 TAC §§205.1 - 205.7

The Texas Natural Resource Conservation Commission (commission) proposes amendments to Chapter 205, §205.1, Definitions; §205.2, Purpose and Applicability; §205.3, Public Notice, Public Meetings, and Public Comment; §205.4, Authorizations and Notices of Intent; §205.5, Permit Duration, Amendment, and Renewal; §205.6, Annual Fee Assessments; and new §205.7, Additional Characteristics and Conditions for General Permits.

BACKGROUND AND SUMMARY OF THE FACTUAL BASIS FOR THE PROPOSED RULES

The new and amended sections of Chapter 205 are proposed to implement House Bill (HB) 1283, which amended Texas Water Code (TWC), §26.040, and became law as an act of the 76th Texas Legislature, 1999. Among other changes, this proposal addresses the provisions of HB 1283 by removing the limitation that general permits cannot authorize discharges of more than 500,000 gallons in any 24-hour period; by providing that the commission may issue a general permit for storm water discharges without having to make the findings required by TWC, §26.040(a)(1)-(5) for other categories of discharges; and by adding a requirement that the commission deny or suspend a discharger's authority under a general permit if the commission determines that the discharger operates any facility for which the discharger's compliance history contains violations constituting a recurring pattern of egregious conduct that demonstrates a consistent disregard for the regulatory process, including a failure to make a timely and substantial attempt to correct the violations. The new and amended sections are also being proposed to simplify the rule language, change the term "commission" to "executive director" or "agency," as appropriate, and to clarify the requirements and procedures for issuing a general permit and obtaining authorization for discharge under a general permit.

SECTION BY SECTION DISCUSSION

Section 205.1, concerning Definitions, is proposed to be amended to include new definitions for terms used in §205.4(e) as part of the implementation of the HB 1283 changes to TWC, §26.040. The proposed amendments also include the deletion of certain terms used in §205.2, because these terms are self-explanatory, and they are the same as those found in the United States Environmental Protection Agency's (EPA) regulations for general permits found in 40 Code of Federal Regulations (CFR) §122.28. The commission believes that definitions for these terms are not needed, and their inclusion could possibly be confusing to the public. Also, statutory references have been reformatted for consistency throughout the section.

Section 205.1(1) is proposed to be amended to define "compliance history" based on TWC, §26.040(h), which requires the commission to consider the compliance history of all violations by the discharger. The commission is proposing to adopt the definition of "compliance history," as follows: "The record of all notices from the commission, including notices of violation from the executive director; and of all orders of the commission, of any other agency or political subdivision of the State of Texas and of the United States Environmental Protection Agency (USEPA) pertaining to an applicant's adherence to environmental laws and rules of the State of Texas or the United States; with the terms of any permit, compliance agreement or order issued by the commission or the USEPA; and with any final judicial decision or settlement addressing the applicant's adherence to such environmental laws and rules. The history shall be for the five-year period before the date on which the NOI is filed or, if an NOI is not required, the five-year period before the permittee begins operating under the general permit. It shall not include any order that is precluded by its terms or by law from becoming part of the applicant's compliance history."

The commission requests comments regarding methods of identifying the record of all orders of other agencies and political subdivisions of the State of Texas, pertaining to an applicant's adherence to environmental laws and rules of the State of Texas or the United States; with the terms of any permit, compliance agreement or order issued by the commission or the USEPA; and with any final judicial decision or settlement addressing the applicant's adherence to such environmental laws and rules.

Proposed §205.1(2) is the definition of "general permit," which is under current §205.1(1), with the proposed change of the word "waters" to the singular "water." It has been reformatted to paragraph (2) to account for the addition of the new definition under paragraph (1).

Proposed §205.1(3) is the definition of "individual permit," which is the definition under current paragraph (2) reformatted as paragraph (3).

Section 205.1(4) is proposed to be amended to add a definition for "notice of change or NOC," as follows: "A written submittal to the executive director from a discharger authorized under a general permit providing information on changes to information previously provided to the agency, or any changes with respect to the nature or operations of the facility, or the characteristics of the discharge." This definition is proposed to provide clarification of the requirement under proposed §205.4(h) that general permits require a person authorized to discharge waste under a general permit to submit up-to-date information to the executive director in a notice of change not later than ten days prior to a change in previous information provided to the agency or any other change with respect to the nature or operations of the facility or the characteristics of the discharge.

Existing §205.1(4)-(7) is proposed to be deleted because the commission believes that these terms are self-explanatory, as discussed earlier in this preamble. The terms proposed for deletion are "same or similar monitoring requirements," "same or substantially similar types of operations," "same requirements regarding operating conditions," and "same type of waste."

Section 205.1(5) is the definition of "notice of intent or NOI," which is the definition under current paragraph (3) reformatted to paragraph (7).

Section 205.1(6) is proposed to be amended to add a definition for "notice of termination or NOT," as follows: "A written submittal to the executive director from a discharger authorized under a general permit requesting termination of coverage." This definition is proposed to provide clarification of the requirement under proposed §205.4(h) that general permits require when the ownership of the facility changes or is transferred, a notice of termination must be submitted by the present owner, and the new owner must submit a new NOI not later than ten days prior to the change in ownership.

Proposed §205.1(7) is the definition of "Texas Pollutant Discharge Elimination System (TPDES)," which is the definition under current paragraph (8) reformatted to paragraph (7), with the statutory references to the Clean Water Act rearranged for clarity and a proposed typographical correction of the word "Systems" to "System."

Section 205.2, concerning Purpose and Applicability, is proposed to be amended to eliminate the 500,000-gallon per day cap on discharges that may be authorized by a general permit, in accordance with HB 1283. The proposed changes also provide that the commission may issue a general permit for storm water discharges without having to make the findings required by TWC, §26.040(1)-(5) for other categories of discharges, along with other clarifications. The proposed language under §205.2(a)(5)(A) and (B) is reformatted language from existing §205.2(c)(1) and (2), with the aforementioned 500,000-gallon per day limitation removed. Thus, under proposed §205.2(a), the wording would be amended to read as follows: "The commission may issue a general permit to authorize the discharge of waste into or adjacent to water in the state by category if the commission finds the discharges in the category are storm water or the dischargers in the category: (1) engage in the same or substantially similar types of operations; (2) discharge the same types of waste; (3) are subject to the same requirements regarding effluent limitations or operating conditions; (4) are subject to the same or similar monitoring requirements; and (5) are more appropriately regulated under a general permit than under individual permits, on the basis that both: (A) the general permit can be readily enforced and the executive director can adequately monitor compliance with the terms of the general permit; this requirement being satisfied if the provisions of the general permit are clear and unambiguous and it requires adequate monitoring, record keeping, and reporting, appropriate to the type of activity authorized; and (B) the category of discharges covered by the general permit will not include a discharge of pollutants that will cause significant adverse affects to surface or groundwater quality."

Section 205.2(b) is proposed to be reformatted for clarity by dividing existing portions of this subsection into paragraphs (1) and (2), and by deleting the superfluous sentence "For example, certain dischargers of the same type of waste may be covered under one statewide general permit." This sentence is not needed because proposed subsection (b) already states, "The commission may issue a general permit to authorize the discharge of waste by categories of dischargers designated under subsection (a) of this section either within the entire state or...," and paragraph (2) under subsection (a) of the section states, "discharge the same type of waste." The commission notes that the descriptions under proposed §205(b)(1) and (2) are included as examples and not intended to be limiting.

Section 205.2(c) is proposed to be amended to state, "Authorization to discharge under a general permit does not confer a vested right." This subsection is reformatted from existing §205.4(d).

Section 205.3, concerning Public Notice, Public Meetings, and Public Comment, is proposed to be amended to clarify and simplify the rules, as well as to update references to certain notice requirements. Also, changes are being proposed to the requirements for newspaper notice, to be consistent with the revisions made by HB 1283. The requirements under existing §205.3(a) are proposed to be reformatted into new paragraphs (1)-(2), with a proposed change to the existing rules with regard to the required newspaper notice publication requirements for draft general permits with statewide applicability. This proposed change in the requirements for newspaper notice is consistent with HB 1283, which states that "For a statewide general permit, the commission shall designate one or more newspapers of statewide or regional circulation and shall publish notice of the proposed statewide general permit in each designated newspaper in addition to the Texas Register. " First, the proposed amendments would retain the requirement for Texas Register publication for each draft general permit under proposed §205.3(a)(1), and clarify that this paragraph (1) applies to draft general permits that will not have statewide applicability. The proposed amendments under §205.3(a)(2) would change the requirement of publication for draft general permits with statewide applicability from the existing requirement for publication in the daily newspaper of largest general circulation in eleven required metropolitan areas to the proposed requirement for publication in "the Texas Register and in at least one newspaper of statewide or regional circulation," which is in accordance with the aforementioned requirements of HB 1283. Proposed §205.3(a)(3) is the same requirement that is found under existing §205.3(c) reformatted into subsection (a) for clarity, because it involves timing of the publication of public notice of general permits.

Section 205.3(b) is proposed to be amended under paragraph (2) to replace the phrase "state and federal agencies" with the term "persons," and paragraph (3) is proposed to be deleted, as this requirement regarding "persons on a relevant mailing list" would no longer be needed. Then, in order to account for the proposed deletion of paragraph (3), current paragraph (4) is proposed to be renumbered as paragraph (3).

Section 205.3(c) is proposed to be amended by reformatting the current requirements into paragraphs (1)-(4). In addition, the existing rule language under §205.3(c) "...except where clearly not applicable" is proposed to be replaced with the new language under §205.3(c)(1) "include the applicable information described in §39.11...." Proposed §205.3(c)(2)-(4) is the reformatted remainder of the requirements of §205.3(c).

Section 205.3(d) is proposed to be amended to change the heading "Public Meetings." to "Requirements relating to public meetings are as follows:." Under proposed §205.3(d)(1), the phrase "executive director or commission" is changed to "agency;" the phrase "either the executive director or commission" is changed to "the executive director;" and the words "that" and "exists" are added for clarification in the following phrase "that a significant degree of public interest in the draft general permit exists;." Proposed §205.3(d)(2) contains a rewording of the current language "The commission shall give notice of a public meeting under this subsection by publication..." to the proposed language "Notice of a public meeting shall be by publication...." In a similar fashion, proposed §205.3(d)(3) contains a rewording of the current language "Mailed notice of the public meeting will also be provided to the following:" to the proposed language "Notice of the public meeting shall be mailed to the following:." Section 205.3(d)(3) is proposed to be amended under subparagraph (B) to replace the phrase "state and federal agencies" with the term "persons;" subparagraph (C) is proposed to be deleted, as this requirement regarding "persons on a relevant mailing list" would no longer be needed; and subparagraphs (D) and (E) are proposed to be redesignated as subparagraphs (C) and (D), respectively, to account for the proposed deletion of subparagraph (C). Under proposed §205.3(d)(4), the clarifying phrase "the applicable" is proposed to be added, and the wording is proposed to be changed from the current language "be in accordance with" to the proposed language "described in" for clarification. An additional proposed clarification under §205.3(d)(4) is the deletion of the current language "except where clearly not applicable." Under proposed §205.3(d)(5), after "The public comment period shall automatically be extended to the close of any public meeting," the following clarifying phrase is proposed to be added: "held by the agency on the proposed general permit."

Section 205.3(e) is proposed to be amended for clarification by changing the first sentence from "If the commission receives public comment during the comment period relating to issuance of a general permit, the commission may issue the general permit only after responding in writing to these comments" to the following: "If the agency receives public comment during the comment period relating to issuance of a general permit, the executive director shall respond in writing to these comments, and this response shall be made available to the public and filed with the chief clerk at least ten days before the commission considers the approval of general permit." In addition, "commission" is changed to "agency" in the second sentence of this subsection (e), and a third sentence is added, as follows: "The commission shall consider all public comment in making its decision and shall either adopt the executive director's response to public comment or prepare its own response." Section 205.3(e)(2)-(4) is proposed to be amended by changing each occurrence of the word "will" to "shall." Also, §205.3(e)(2) is proposed to be amended by changing the identification of the location where a copy of any issued general permit and response to comment is available for inspection from the current rule language "commission's Wastewater Permits Section in its Austin office" to the proposed rule language "agency's Austin office."

Section 205.3(g) is proposed to be amended to account for the types of minor revisions to general permits in accordance with §305.62, concerning Amendment. Thus, the phrase "or minor modification" is added to amend this subsection. In addition, the reference to §305.62(c)(2) is proposed to be corrected to §305.62(c).

Section 205.4, concerning Authorizations and Notices of Intent, is proposed to be amended to implement new requirements of HB 1283 that allow authorization under a general permit to be obtained without submitting an NOI, to clarify when the executive director will deny or suspend a discharger's authority under a general permit, to add an additional circumstance for denying or suspending authorization due to a history of "egregious conduct" on the part of the discharger, to clarify the rule by revising language and by reformatting this section.

Section 205.4(a) is proposed to be amended to cover certain requirements relating to general permits. This subsection is proposed to begin as follows: "A qualified discharger may obtain authorization to operate under a general permit by complying with the general permit's conditions for gaining coverage." Then, under paragraphs (1)-(5), certain requirements, allowances, and limitations are spelled out. Section 205.4(a)(1) is proposed to read as follows, stemming from language reformatted from existing §205.4(c), and language implementing the HB 1283 allowance for certain general permits to authorize a discharger to discharge without submitting an NOI: "A general permit shall specify either an applicable deadline for filing the notice of intent (NOI), or that an NOI is not required prior to commencement of a qualifying discharge." Proposed §205.4(a)(2) provides the logical clarification that "No new discharge under the authority of a general permit may commence after a general permit is expired." Proposed §205.4(a)(3) is language implementing the requirements and allowances under HB 1283, stating that: "For those general permits requiring an NOI, a discharger may begin discharging under the general permit after the date or period of time specified in the general permit unless the executive director or commission before that time notifies the discharger pursuant to subsections (c) or (e) of this section that the discharger is not eligible for authorization under the general permit." Proposed §205.4(a)(4) is language reformatted from existing §205.4(c) and (d) covering dischargers that are not eligible for authorization under the general permit, stating that: "The executive director shall provide written notice to a discharger if the executive director determines that the discharger is not eligible for authorization under the general permit. The content of the notice is described in subsections (c) and (d) of this section." Proposed §205.4(a)(5) is language from existing §205.4(c), with the word "must" changed to "shall," as follows: "An NOI shall be submitted to the executive director by certified mail, return receipt requested."

Section 205.4(b) is proposed to be amended to cover certain general permits requirements relating to individual permittees. This subsection is proposed to begin as follows: "The following requirements apply to existing individual permittees:." This subsection essentially rewrites the existing rule language under current §205.4(b)(1) from the perspective of what the general permit must require or can allow. The existing rules are written from the perspective of what a discharger must or can do. For example, the current language under §205.4(b)(1) states, "A discharger who is covered by an individual permit may obtain substitute authorization to discharge waste under a general permit if," where the proposed language states, "The general permit shall specify how a discharger covered by an individual permit may substitute authorization to discharge waste under the general permit. At a minimum, the general permit shall provide that coverage under the general permit shall not commence until:." The reason for this shift in perspective is that Chapter 205 is not an actual general permit, but rather includes procedures for adopting a general permit, and what should be included in general permits. Section 205.4(b)(1) is proposed to be "rounded out" with the minimum requirements of the general permit needed for individual permit dischargers to "convert" to general permits, as follows: §205.4(b)(1)(A) is proposed to specify that the general permit provide that coverage under the general permit shall not commence until: "the permittee has submitted an NOI, if one is required by the general permit, as specified by subsection (f) of this section;" and §205.4(b)(1)(B) is proposed to specify that the general permit provide that coverage under the general permit shall not commence until: "The executive director has received the discharger's written request that the individual permit be canceled."

Proposed §205.4(b)(2) is basically a reformatted existing §205.4(b)(4) with additional language which "fleshes out" what the general permit shall require the discharger who is covered by an individual permit to do in order to obtain authorization to discharge waste from a new outfall. In keeping with the perspective shift discussed earlier in this preamble, the first sentence under proposed §205.4(b)(2) changes the existing rule language under §205.4(b)(4) from "A discharger who is covered by an individual permit may obtain authorization to discharge waste from a new outfall under a general permit if the discharger submits a written NOI as specified in subsection (f) of this section" to the following: "The general permit may allow a discharger who is covered by an individual permit to obtain authorization to discharge waste from a new outfall under a general permit." The last portion under proposed §205.4(b)(2) reads as follows: "The general permit shall describe how to obtain authorization to discharge waste from a new outfall. Authorization under the general permit shall not commence until the discharger:." Then, the wording from the aforementioned existing rules concerning submittal of a written NOI is reformatted under proposed §205.4(b)(2)(A), as follows: "submits an NOI, if one is required by the general permit, as specified in subsection (f) of this section." Additional language which "fleshes out" these requirements is proposed under subparagraph (B), as follows: "requests and receives written approval from the executive director of a minor modification to their individual permit exempting the new outfall from coverage under the individual permit."

Proposed §205.4(b)(3) is a reformatted and more complete version of existing §205.4(b)(2). The existing rule wording of "The individual permit will be automatically canceled when authorization under the general permit becomes effective" is proposed to be changed to "Except as provided under subsection (b)(2) of this section, the commission shall cancel an individual permit if the executive director or commission does not deny the NOI or authorization under subsection (c) or (e) of this section."

Section 205.4(c) is proposed to be amended to spell out the requirements that apply to denial of an authorization or NOI, by reformatting and, to a certain extent, "fleshing out" requirements from portions of the existing rules, notably §205.4(d)-(f). Proposed §205.4(c)(1) states: "The executive director shall provide written notice to a discharger if the executive director denies the discharger's NOI or authorization to discharge under a general permit, including, at a minimum, a brief statement of the basis for this decision." Proposed §205.4(c)(2) lists the reasons for which the executive director shall deny authorization to discharge under an existing general permit. Subparagraphs (A)-(F) of this proposed paragraph are reformatted from existing §205.4(e)(1)-(5) and (8), except that subparagraphs (B), (D), and (E) are clarified. Subparagraph (B) is proposed to read as follows: "the discharge is required to be authorized under the Texas Pollutant Discharge Elimination System (TPDES), and discharging under the general permit would result in backsliding prohibited under 40 CFR §122.144(1), as amended and adopted under §305.531(3) of this title (relating to Establishing and Calculating Additional Conditions and Limitations for TPDES Permits)." Subparagraph (D) is proposed to read as follows: "the discharge is located where it causes or could cause an adverse impact upon a critical area, as defined in 31 TAC §501.3 (relating to Definitions and Abbreviations), and there is a suitable location that is available and capable of being used in light of cost, technology, and logistics." Subparagraph (E) is proposed to include the change from "commission" to "executive director" under clause (i), and the change from "commission" to "agency" under clause (ii). Proposed §205.4(c)(3) includes reasons for which the executive director may deny authorization to discharge under an existing general permit. Subparagraphs (A)-(D) of this proposed paragraph are reformatted from existing §205.4(e)(6) and (7) and §205.4(f)(1) and (7), with the first and third occurrences of the term "commission" under subparagraph (D) changed to "executive director." Proposed §205.4(c)(4), which is a reformatted version of existing §205.4(b)(3), requires dischargers to apply for renewal of the individual permit, if authorization is denied under this subsection.

Section 205.4(d) is proposed to be amended to spell out the requirements that apply to suspensions of authorizations or NOIs of intent, by reformatting and, to a certain extent, "fleshing out" requirements from portions of the existing rules, notably §205.4(d)-(f). Proposed §205.4(d)(1) spells out requirements for the general permit, as follows: "The general permit shall describe the procedures for suspension of authorization and NOIs under the general permit. The general permit shall require the executive director to provide written notice to a discharger that the executive director intends to suspend a discharger's authority to discharge under a general permit, including:." The statements required in the written notice are spelled out in proposed subparagraphs (A)-(D), which are reformatted from existing §205.4(d). Proposed §205.4(d)(2) requires that if a discharger's authorization under a general permit is suspended, the discharge shall cease immediately. Proposed §205.4(d)(3) is reformatted from existing §205.4(f), and allows the executive director to require the person whose authorization to discharge is suspended to apply for and obtain an individual permit. Proposed §205.4(d)(4) lists the reasons for which the executive director, after written notice to the discharger, shall suspend authorization to discharge under an existing general permit. Subparagraphs (A)-(E) of this proposed paragraph are reformatted from existing §§205.4(d), 205.4(e)(5), 205.4(f)(2), (5), and (10). Subparagraph (C) is proposed to include the change from "commission" to "executive director" under clause (i), and the change from "commission" to "agency" under clause (ii). Proposed §205.4(d)(5) includes reasons for which the executive director, after written notice to the discharger, may suspend authorization to discharge under an existing general permit, with the first and third occurrences of the term "commission" under subparagraph (E) changed to "executive director." Subparagraphs (A)-(E) of this proposed paragraph are reformatted from existing §205.4(f)(1), (4), and (7)-(9). Proposed §205.4(d)(6) provides the clarification that the executive director's decisions on NOIs under this chapter are subject to §50.139 of this title (relating to Motion to Overturn Executive Director's Decision).

Section 205.4(e) is proposed to implement TWC, §26.040(h), which requires the commission to deny or revoke an NOI if, after a hearing, it finds that the discharger has a history of violations that constitute a recurring pattern of egregious conduct that demonstrates a consistent disregard for the regulatory process. Under the proposed rule, the history of violations that could be considered by the commission would include all violations of Texas environmental laws administered by TNRCC that have been documented by the executive director during the preceding five years. These include NOVs, NOEs, and all administrative and judicial orders entered with regard to TNRCC or United States Environmental Protection Agency permits and rules. Agreed orders entered into by the commission which contain the limitation that they are not intended to become part of the respondent's compliance history will be considered only if the executive director has documented failure to comply with the terms of the order. The commission's experience indicates that if an applicant has a history that reflects a disregard for the regulatory process, that person is more likely to present future compliance problems. In the past, the commission has included special conditions in permits, designed to address past compliance problems at the permitted facility. This proposal would further that policy by requiring that an operator or owner with a very poor compliance history seek and obtain an individually tailored permit.

Such a pattern of conduct exhibited at the applicant facility and in regard to wastewater discharge statutes and rules would clearly be the most relevant portion of a discharger's compliance history and given the greatest weight in the commission's deliberations. Violations by the same applicant in other media and at other facilities may also be relevant, however. To the extent that the facts surrounding them indicate a pattern of violation, or a management structure or other uniform factors exist, they may indicate the same attitude or practices are likely to occur at the facility seeking the NOI. Consequently, the proposal permits the commission to consider these violations as well, according to them the weight appropriate to their relative degree of similarity or remoteness to the facility or the activity that is the subject of the general permit.

Proposed §205.4(e) states, "The commission, after hearing, shall deny or suspend a discharger's authority to discharge under a general permit if the commission determines that the discharger operates any facility for which the discharger's compliance history contains violations constituting a recurring pattern of egregious conduct that demonstrates a consistent disregard for the regulatory process, including a failure to make a timely and substantial attempt to correct the violations. A hearing under this subsection is not subject to Texas Government Code, Chapter 2001." The commission is proposing to define "compliance history," as discussed earlier in this preamble.

Section 205.4(f) is proposed to be amended to add the opening phrase "The general permit shall describe," consistent with the aforementioned approach of changing the perspective of the rules toward what the general permit must require or can allow; and to add the phrase "if one is required by" after "NOI" in the first sentence. Section 205.4(f) is also proposed to be amended to add to the first part of the second sentence the phrase "At a minimum, the NOI."

Section 205.4(g) is proposed to be amended to add the opening phrase "The general permit may require a," and to delete "shall" from this sentence, which changes the rules from prescriptive to permissive, with regard to application fees for general permits. Also in the first sentence, the term "commission" is proposed to be changed to "agency." Section 205.4(g) is also proposed to be amended to change the second sentence to read as follows: "The amount of the fee may be set in accordance with §305.53 of this title (relating to Application Fee) or may be specified in each general permit and NOI form." The third sentence in this subsection is proposed to be amended to correct the rule reference from "subsection (e)" to "subsection (c) or (e)," and to change "the application fee" to "any application fee."

Section 205.4(h) is proposed to be amended to add the opening phrase "The general permit shall require a," and to replace the phrase "new NOI" with the phrase "notice of change" to more appropriately describe the purpose of the notice. Also in the first sentence, the term "commission" is proposed to be changed to "agency." The second sentence in this subsection is proposed to be amended to read as follows: "In cases where the general permit requires that an NOI be submitted, the general permit shall require that when the ownership of the facility changes or is transferred, a notice of termination be submitted by the present owner, and a new NOI be submitted by the new owner, not later than ten days prior to the change in ownership." The commission notes that the proposed new terms "notice of change" and "notice of termination" are defined under proposed §205.1, as discussed earlier in this preamble.

Section 205.4(i) is proposed to be amended to add "or commission" to the second sentence, to replace "an NOI" with "authorization," add "county or," and change "will" to "shall," so that this sentence is proposed to read as follows: "If the executive director or commission denies authorization for a proposed discharge in the county or municipality, the executive director shall notify the county judge or mayor."

Section 205.5, concerning Permit Duration, Amendment, and Renewal, is proposed to be amended to allow the commission to continue to authorize dischargers under an expired general permit in cases where the commission has proposed to renew the general permit before the expiration date. Thus, §205.5(b) is proposed to be amended to add the following: "If before its expiration, the commission proposes to renew a general permit, the general permit shall remain in effect after the expiration date for those existing discharges covered by the general permit. The general permit shall remain in effect for these dischargers until the date on which the commission takes final action on the proposed permit renewal. No new notices of intent (NOIs) will be accepted or new authorizations honored for authorization under the general permit after the expiration date." Section 205.5(c) is proposed to be amended to add the following clarifying phrase to replace the term "the facility:" to "all facilities, including those covered under the expired general permit," and to require submittal of an NOI, if one is required by the general permit.

Section 205.5(d) is proposed to be amended to add more details to the requirements concerning submittal of applications for individual permits when a general permit is about to expire. Thus, this subsection is proposed to read as follows: "If the commission has not proposed to renew a general permit at least 90 days before its expiration date, dischargers authorized under the general permit shall submit an application for an individual permit before the general permit's expiration. If an application for an individual permit is submitted before the general permit's expiration, authorization under the expired general permit remains in effect until the issuance or denial of an individual permit."

Section 205.5(f) is proposed to be amended to clarify the requirements concerning consistency of general permits with the Texas Coastal Management Plan, and is proposed to read as follows: "Before issuing a general permit, the commission shall review the general permit for consistency with the Texas Coastal Management Plan (CMP). The commission must find that the general permit is consistent with the applicable CMP goals and policies and that it will not adversely affect any applicable coastal natural resource areas as identified in the CMP before the commission may issue the general permit."

Section 205.6, concerning Annual Fee Assessments, is proposed to be amended to correct a reference that has changed since the rules were adopted, and to clarify that the commission has the authority to charge an annual watershed monitoring and assessment fee, but is not necessarily required to do so. Thus, this section is proposed to read as follows: "A person authorized by a general permit shall pay an annual waste treatment inspection fee under Texas Water Code (TWC), §26.0291, consistent with §§305.501 - 305.507 of this title (relating to the Waste Treatment Inspection Fee Program); and may be subject to an annual watershed monitoring and assessment fee under TWC, §26.0135(h), consistent with §220.21 of this title (relating to Water Quality Assessment Fees)."

New proposed §205.7, concerning Additional Characteristics and Conditions for General Permits, is taken from §321.141, in anticipation of the future repeal of Chapter 321. Section 205.7 is proposed to read as follows: "40 Code of Federal Regulations (CFR) §122.28, as amended through April 2, 1992, at 57 FedReg 11413, is adopted by reference, except 40 CFR §122.28(b)(3)(ii) and (c), and except as follows: where 40 CFR §122.28 refers to an 'NPDES permit,' the references are more properly made, for state law purposes, to a 'TPDES permit,' as applicable; and where 40 CFR §122.28(b)(3)(iii) refers to 40 CFR §122.21, the reference is more properly made, for state law purposes, to applicable sections of this chapter, Chapter 281 of this title (relating to Application Processing), and Chapter 305 of this title (relating to Consolidated Permits)." The aforementioned 1992 Federal Register citation is proposed in order to include a specific promulgation date, and is the most recent date for any amendment to 40 CFR §122.28, up to the date of TPDES program authorization.

FISCAL NOTE

Jeffrey Horvath, with Strategic Planning and Appropriations, has determined for the first five- year period the proposed amendments are in effect, there will be no adverse fiscal implications for TNRCC or for units of local government as a result of administration and enforcement of the proposed rules. The proposed rules implement certain provision of HB 1283, 76th Legislature, 1999, by removing the limitation that general permits cannot authorize discharges of more than 500,000 gallons in any 24-hour period and by providing that the commission may issue a general permit for storm water discharges. The proposed rules would implement HB 1283 which amended TWC, §26.040, and clarify the requirements and procedures for issuing general wastewater permits and obtaining authorization for storm water discharge under a general permit.

Under the bill, the proposed rules would also add a requirement that the commission deny or suspend a discharger's authority under a general permit if the commission determines that the discharger operates any facility for which the discharger's compliance history contains violations constituting a recurring pattern of egregious conduct; and clarify the language and organizational structure of the rules.

HB 1283 allows TNRCC to more effectively implement the TPDES by not requiring the agency to individually permit wastewater discharges. Removing the 500,000 gallon per 24-hour period cap allows the agency to cover larger numbers of wastewater dischargers. Currently cities and industries must apply for individual permits for wastewater discharge. Under a general permit with the 500,000 gallon per 24-hour limit for discharges removed, the process for permit holders for permit applications are streamlined and costs may be reduced. Legal and consultant costs are also assumed to be reduced. The cost savings cannot be quantified due to variability in the types of individual permits now in effect.

The proposed rules do not specifically implement the storm water program but do allow the commission to issue a general permit for storm water discharges. HB 1283 provided TNRCC with the authority to issue general permits to authorize discharges of wastewater of any amount in any 24-hour period and to specifically allow the category of storm water under general permits. The Legislature appropriated $608,669 from wastewater treatment inspection fees for fiscal year 2000 and $1,647,575 for fiscal year 2001 from the wastewater treatment inspection fee account to implement the storm water permitting program which is not addressed by these rules relating to storm water discharges. The permits are anticipated to be proposed at later dates, as TNRCC assumes responsibility for various aspects of the storm water program. The storm water program regulates polluted rain water run-off from cities, certain classes of industry, and construction sites. This program was delegated to the agency as a NPDES program to be implemented in stages and as existing federal permits expire.

PUBLIC BENEFIT

Mr. Horvath has also determined for each of the first five years the proposed rules are in effect, the public benefit anticipated as a result of the administration of and compliance with the rules will be that the process for wastewater permit holders for permit applications will be streamlined and costs may be reduced. Legal and consultant costs are also anticipated to be reduced. The cost savings cannot be quantified due to variability in the types of individual permits now in effect. In addition, public health and safety will continue to be protected as there will be no change in the degree of regulation for affected entities.

SMALL AND MICRO-BUSINESS IMPACT ANALYSES

No adverse economic effects are anticipated to small businesses and micro-businesses as a result of implementing the proposed amendments. The proposed rules implement HB 1283, by removing the limitation that general permits cannot authorize discharges of more than 500,000 gallons in any 24-hour period and by providing that the commission may issue a general permit for storm water discharges. As a result of the administration of and compliance with the rules by small and micro-businesses, that may anticipate that the process for obtaining wastewater permits will be streamlined and costs may be reduced. Legal and consultant costs are also anticipated to be reduced. The cost savings cannot be quantified due to variability in the types of individual permits now in effect.

DRAFT REGULATORY IMPACT ASSESSMENT

The commission has reviewed the proposed rulemaking in light of the regulatory analysis requirements of the Texas Government Code, §2001.0225, and has determined that the rulemaking is not subject to §2001.0225 because it does not meet the definition of a "major environmental rule" as defined in the act. The proposal would not adversely effect in a material way on the economy, a section of the economy, productivity, competition, jobs, the environment, or the public health and safety of the state or a sector of the state for two reasons. First, the proposed rules implement what is already allowed under TWC, §26.040. The proposed rules do not go beyond that which is already statutorily allowed. Second, the proposed rules will result in overall economic savings, while protecting of the public health and safety and environment. There is economic savings because many of the entities that would otherwise be required to obtain an individual permit will be able to obtain coverage under one standard permit, a general permit. This improves efficiency in the permitting process which results in overall economic savings. The general permits issued under these rules will undergo the same permitting scrutiny of an individual permit, thus ensuring the protection of public health and safety and the environment. Furthermore, the proposed rulemaking does not meet any of the four applicability requirements listed in §2001.0225(a).

TAKINGS IMPACT ASSESSMENT

The commission has prepared a takings impact assessment for these proposed rules pursuant to Texas Government Code, §2007.043. The following is a summary of that assessment. The specific purpose of these proposed rules is to implement HB 1283, 76th Legislature, 1999, and clarify the requirements and procedures for issuing a general permit and obtaining authorization for discharge under a general permit. The proposed rules would substantially advance this stated purpose by amending Chapter 205 to remove the limitation that general permits cannot authorize discharges of more than 500,000 gallons in any 24-hour period; by providing that the commission may issue a general permit for storm water discharges without having to make the findings required by TWC, §26.040(a)(1)-(5) for other categories of discharges; add a requirement that the commission deny or suspend a discharger's authority under a general permit if the commission determines that the discharger operates any facility for which the discharger's compliance history contains violations constituting a recurring pattern of egregious conduct; and clarify the language and organizational structure of the rules. Promulgation and enforcement of these proposed rules would not burden private real property which is the subject of the rules because the proposal would remove a restriction and clarify other portions of the rules. The subject proposed regulations do not affect a landowner's rights in private real property because this rulemaking does not restrict or limit the owner's right to property that would otherwise exist in the absence of the regulations. In other words, because these rules broaden the applicability of general permits, which provide a less burdensome avenue for gaining authorization for discharges than do alternative permitting schemes, and because these rules clarify the requirements and procedures for issuing a general permit and obtaining authorization for discharge under a general permit, they do not restrict the owner's right to property. Therefore, these proposed rules will not constitute a takings under the Texas Government Code, §2007.

COASTAL MANAGEMENT PROGRAM CONSISTENCY REVIEW

The executive director has reviewed the proposed rulemaking and found that the proposal is a rulemaking identified in Coastal Coordination Act Implementation Rules, 31 TAC §505.11, relating to Actions and Rules Subject to the Texas Coastal Management Program (CMP), or will affect an action or authorization identified in Coastal Coordination Act Implementation Rules, 31 TAC §505.11.

The commission has prepared a consistency determination for the proposed rules pursuant to 31 TAC §505.22, and has found the proposed rulemaking consistent with the applicable CMP goals and policies. The following is a summary of that determination. CMP goals applicable to the proposed rules are the protection, preservation, restoration and enhancement of the diversity, quality, quantity, functions, and values of coastal natural resource areas. CMP policies applicable to the proposed rules include the requirement that discharges of municipal and industrial wastewater in the coastal zone shall comply with water-quality-based effluent limits. Promulgation and enforcement of these rules is consistent with the applicable CMP goals and policies because the proposed rules will result in more efficient and cost-effective use of public resources regulating wastewater facilities, while maintaining protection of the quality of the surface water resources of the state. Dischargers would be subject to requirements in the permit. In addition, the rules specifically require the executive director to deny authorization under an existing general permit if the discharge is located where it poses or could pose an adverse impact upon a critical area, and it is practicable to locate the discharge in a more suitable location. The commission invites public comment on the consistency of the proposed rules.

PUBLIC HEARING

A public hearing on this proposal will be held in Austin on June 29, 2000, at 10:00 a.m. in Building F, Room 3202A at the Texas Natural Resource Conservation Commission complex, located at 12100 Park 35 Circle. Individuals may present oral statements when called upon in the order of registration. Open discussion will not occur during the hearing; however, an agency staff member will be available to discuss the proposal 30 minutes before the hearing and will answer questions before and after the hearing.

Persons with disabilities who have special communication or other accommodation needs, who are planning to attend the hearing should contact the Office of Environmental Policy, Analysis, and Assessment at (512) 239-4900. Requests should be made as far in advance as possible.

SUBMITTAL OF COMMENTS

Comments may be submitted to Angela Slupe, Office of Environmental Policy, Analysis, and Assessment, MC 205, P.O. Box 13087, Austin, Texas 78711-3087 or faxed to (512) 239-4808. All comments should reference Rule Log Number 1999-034-205-WT. Comments must be received by 5:00 p.m., July 3, 2000. For further information, please contact Steve Ligon, Wastewater Permitting Section, (512) 239-4527.

STATUTORY AUTHORITY

The proposed amendments are proposed under and implement TWC, §26.040, which provides the commission with the authority to regulate certain waste discharges by general permit, and TWC, §26.040(m), which authorizes the commission to adopt rules as necessary to implement TWC, §26.040.

These amendments are also proposed under the TWC, §5.102, which provides the commission with general powers to carry out duties under the TWC, §§5.103, 5.105, and 5.120, which provide the commission with the authority to adopt any rules necessary to carry out the powers and duties under the provisions of the TWC and other laws of this state and to establish and approve all general policies of the commission.

§205.1. Definitions.

The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise:

(1)

Compliance history -- The record of all notices from the commission, including notices of violation from the executive director; and of all orders of the commission, of any other agency or political subdivision of the State of Texas and of the United States Environmental Protection Agency (USEPA) pertaining to an applicant's adherence to environmental laws and rules of the State of Texas or the United States; with the terms of any permit, compliance agreement or order issued by the commission or the USEPA; and with any final judicial decision or settlement addressing the applicant's adherence to such environmental laws and rules. The history shall be for the five-year period before the date on which the NOI is filed or, if an NOI is not required, the five-year period before the permittee begins operating under the general permit. It shall not include any order that is precluded by its terms or by law from becoming part of the applicant's compliance history.

(2)

[ (1) ] General permit -- A permit issued under the provisions of this chapter authorizing the discharge of waste into or adjacent to water [ waters ] in the state for one or more categories of waste discharge within a geographical area of the state or the entire state as provided by Texas Water Code (TWC), §26.040. [ §26.040, Texas Water Code. ]

(3)

[ (2) ] Individual permit -- A permit, as defined in the TWC, §26.001, [ §26.001 of the Texas Water Code, ] issued by the commission or the executive director to a specific person or persons in accordance with the procedures prescribed in the TWC, Chapter 26, [ Chapter 26 of the Texas Water Code ] (other than TWC, §26.040 [ §26.040 of the Water Code ]).

(4)

Notice of change or NOC -- A written submittal to the executive director from a discharger authorized under a general permit providing information on changes to information previously provided to the agency, or any changes with respect to the nature or operations of the facility, or the characteristics of the discharge.

(5)

[ (3) ] Notice of intent or NOI -- A written submittal to the executive director from a discharger requesting coverage under the terms of a general permit.

(6)

Notice of termination or NOT -- A written submittal to the executive director from a discharger authorized under a general permit requesting termination of coverage.

[ (4)

Same or similar monitoring requirements -- Requirements for periodic testing or sampling applied to all dischargers of a category covered by a general permit to determine compliance with effluent limitations in general permits which will be applied with the same or similar frequency, sample type, or reporting requirements. This may include conditions which are applied in accordance with a distinct formula in the general permit, such as a sampling frequency based upon the quantity or rate of discharge.]

[ (5)

Same or substantially similar types of operations -- An operation engaged in wastewater management activities, or wastewater management activities as defined in a general permit. Examples of substantially similar types of operations include manufacturing processes relating to a specific industrial category or standard industrial classification, a specific type of agricultural production activity, publicly owned treatment works, or storm water management and control activities by municipalities.]

[ (6)

Same requirements regarding operating conditions -- Requirements applied to all dischargers in a category covered by a general permit including, but not limited to, requirements for maintenance, monitoring, reporting, best management practices, facility management, the integrity of analytical testing, and record keeping.]

[ (7)

Same types of waste -- A category of waste containing the same or similar type constituents that can be safely and appropriately controlled using a similar treatment technology, or that can be safely and appropriately controlled through the same requirements regarding effluent limitations Examples of such waste types include domestic wastewater, contact storm water from concrete batch operations, or filter backwash from water treatment.]

(7)

[ (8) ] Texas Pollutant Discharge Elimination System [ Systems ] (TPDES) -- The state program authorized under Clean Water Act, §§307, 318, 402, and 405 for issuing, amending, terminating, monitoring, and enforcing permits, and imposing and enforcing pretreatment requirements under [ Clean Water Act §§307, 402, 318 and 405, ] the Texas Water Code and Texas Administrative Code regulations.

§205.2. Purpose and Applicability.

(a)

The commission may issue a general permit to authorize the discharge of waste into or adjacent to water [ waters ] in the state by category [ of dischargers ] if the commission finds the discharges [ dischargers ] in the category are storm water or the dischargers in the category :

(1) - (2)

(No change.)

(3)

are subject to the same requirements regarding effluent limitations or operating conditions; [ and ]

(4)

are subject to the same or similar monitoring requirements; and

(5)

are more appropriately regulated under a general permit than under individual permits, on the basis that both:

(A)

the general permit can be readily enforced and the executive director can adequately monitor compliance with the terms of the general permit; this requirement being satisfied if the provisions of the general permit are clear and unambiguous and it requires adequate monitoring, record keeping, and reporting, appropriate to the type of activity authorized; and

(B)

the category of discharges covered by the general permit will not include a discharge of pollutants that will cause significant adverse affects to surface or groundwater quality.

(b)

The commission may issue a general permit to authorize the discharge of waste by categories of dischargers designated under [ pursuant to ] subsection (a) of this section either within the entire state or within a discrete geographical area identified by an appropriate division or combination of geographic or political boundaries. [ For example, certain dischargers of the same type of waste may be covered under one statewide general permit. General permits granted for discrete geographical areas may be based upon, but not limited to, factors such as related water quality standards, climatological conditions, and watershed specific standards in accordance with Chapter 311 of this title (relating to Watershed Protection). Discharges to be regulated with effluent limitations specific to a particular water body may be covered under a general permit limited to a particular watershed or geographical area. ]

(1)

General permits granted for discrete geographical areas may be based upon, but not limited to, factors such as related water quality standards, climatological conditions, and watershed specific standards in accordance with Chapter 311 of this title (relating to Watershed Protection).

(2)

Discharges to be regulated with effluent limitations specific to a particular water body may be covered under a general permit limited to a particular watershed or geographical area.

(c)

Authorization to discharge under a general permit does not confer a vested right. [ The commission may issue a general permit pursuant to subsection (a) of this section only if it finds the dischargers in the category are more appropriately regulated under a general permit than under individual permits, on the basis that both: ]

[ (1)

the general permit can be readily enforced and that the commission can adequately monitor compliance with the terms of the general permit. This requirement is satisfied if the provisions of the general permit are clear and unambiguous and it requires adequate monitoring, record keeping, and reporting, appropriate to the type of activity authorized; and]

[ (2)

the category of discharges covered by the general permit will not include a discharge either of pollutants that will cause significant adverse effects to surface or ground water quality or of more than 500,000 gallons into surface water during any 24-hour period.]

§205.3. Public Notice, Public Meetings, and Public Comment.

(a)

Notice shall be published as follows. [ The commission shall publish notice of a draft general permit in a daily or weekly newspaper of general circulation in the area affected by the activity that is the subject of the proposed general permit and in the Texas Register. If the draft general permit will have statewide applicability, then the requirement for newspaper notice shall be accomplished by publishing notice in the daily newspaper of largest general circulation within each of the following metropolitan areas: Dallas; Houston; San Antonio; Austin; Tyler; Corpus Christi; the Lower Rio Grande Valley; Amarillo; Lubbock; the Permian Basin; and El Paso. ]

(1)

If the draft general permit will not have statewide applicability, the agency shall publish notice of each draft general permit in the Texas Register and in a daily or weekly newspaper of general circulation in the area affected by the activity that is the subject of the proposed general permit.

(2)

For draft general permits with statewide applicability, notice shall be published in the Texas Register and in at least one newspaper of statewide or regional circulation.

(3)

The public notice shall be published not later than the 30th day before the commission considers the approval of a general permit.

(b)

For Texas Pollutant Discharge Elimination System [ TPDES ] general permits, mailed notice of the draft general permit will also be provided to the following:

(1)

(No change.)

(2)

if applicable, persons [ state and federal agencies ] for which notice is required in 40 Code of Federal Regulations (CFR) [ CFR ], §124.10(c); and

[(3)

persons on a relevant mailing list kept under §39.7 of this title (relating to Mailing Lists); and]

(3)

[ (4) ] any other person the executive director or chief clerk may elect to include.

(c)

The contents of a public notice of a draft general permit shall : [ be in accordance with §39.11 of this title (relating to Text of Public Notice) except where clearly not applicable. Each notice must include an invitation for written comments by the public regarding the draft general permit. The public notice will specify a comment period of at least 30 days and the public notice will be published not later than the 30th day before the commission considers the approval of a general permit. Additionally, the public notice of a draft TPDES general permit must include either a map or description of the permit area. ]

(1)

include the applicable information described in §39.11 of this title (relating to Text of Public Notice);

(2)

include an invitation for written comments by the public regarding the draft general permit;

(3)

specify a comment period of at least 30 days; and

(4)

include either a map or description of the permit area.

(d)

Requirements relating to public meetings are as follows. [ Public Meetings. ]

(1)

The agency [ executive director or commission ] may hold a public meeting to provide an additional opportunity for public comment and shall hold such a public meeting when [ either ] the executive director [ or commission ] determines, on the basis of requests, that a significant degree of public interest in a draft general permit exists.

(2)

Notice of [ The commission shall give notice of ] a public meeting shall be [ under this subsection ] by publication in the Texas Register not later than the 30th day before the date of the meeting.

(3)

Notice [ Mailed notice ] of the public meeting shall be mailed [ will also be provided ] to the following:

(A)

(No change.)

(B)

if applicable, persons [ state and federal agencies ] for which notice is required in 40 CFR, §124.10(c);

[(C)

persons on a relevant mailing list kept under §39.7 of this title (relating to Mailing Lists)]

(C)

[ (D) ] any other person the executive director or chief clerk may elect to include; and

(D)

[ (E) ] persons who filed public comment or request for a public meeting on or before the deadline for filing public comment or request for a public meeting.

(4)

The contents of a public notice of a public meeting shall include the applicable information described in [ be in accordance with ] §39.11 of this title (relating to Text of Public Notice) [ except where clearly not applicable ]. Each notice must include an invitation for written or oral comments by the public regarding the draft general permit.

(5)

The public comment period shall automatically be extended to the close of any public meeting held by the agency on the proposed general permit .

(e)

If the agency [ commission ] receives public comment during the comment period relating to issuance of a general permit, the executive director [ commission ] shall respond [ may issue the general permit only after responding ] in writing to these comments , and this response shall be made available to the public and filed with the chief clerk at least ten days before the commission considers the approval of the general permit . The response shall address written comments received during the comment period and oral or written comments received during any public meeting held by the agency [ commission ]. The commission shall consider all public comment in making its decision and shall either adopt the executive director's response to public comment or prepare its own response.

(1)

The commission shall issue its written response to comments on the general permit at the same time the commission issues or denies the general permit.

(2)

A copy of any issued general permit and response to comments shall [ will ] be made available to the public for inspection at the agency's [ commission's Wastewater Permits Section in its ] Austin office and also in the appropriate regional offices.

(3)

A notice of the commission's action on the proposed general permit and a copy of its response to comments shall [ will ] be mailed to each person who made a comment.

(4)

A notice of the commission's action on the proposed general permit and the text of its response to comments shall [ will ] be published in the Texas Register .

(f)

Except as specified in subsection (g) of this section, the requirements of subsections (a)-(e) of this section apply to processing of a new general permit, an [ and to ] amendment, renewal, revocation, or cancellation of a general permit.

(g)

A general permit may be proposed for minor amendment or minor modification, as described in §395.62(c) [ §305.62(c)(2) ] of this title (relating to Amendment), without newspaper publication.

§205.4. Authorizations and Notices of Intent.

(a)

A qualified discharger may obtain authorization to operate under a general permit by complying with the general permit's conditions for gaining coverage. [ New Permittees. A discharger who is not covered by an individual permit may submit to the executive director a written notice of intent to be covered by the general permit in accordance with this section. The executive director may deny the request for coverage under the general permit, in accordance with subsection (e) of this section. ]

(1)

A general permit shall specify either an applicable deadline for filing the notice of intent (NOI), or that an NOI is not required prior to commencement of a qualifying discharge.

(2)

No new discharge under the authority of a general permit may commence after a general permit is expired.

(3)

For those general permits requiring an NOI, a discharger may begin discharging under the general permit after the date or period of time specified in the general permit unless the executive director or commission before that time notifies the discharger pursuant to subsections (c) or (e) of this section that the discharger is not eligible for authorization under the general permit.

(4)

The executive director shall provide written notice to a discharger if the executive director determines that the discharger is not eligible for authorization under the general permit. The content of the notice is described in subsections (c) and (d) of this section.

(5)

An NOI shall be submitted to the executive director by certified mail, return receipt requested.

(b)

The following requirements apply to existing individual permittees [ Existing Individual Permittees ].

(1)

The general permit shall specify how a discharger covered by an individual permit may substitute authorization to discharge waste under the general permit. At a minimum, the general permit shall provide that coverage under the general permit shall not commence until: [ A discharger who is covered by an individual permit may obtain substitute authorization to discharge waste under a general permit if, at least 180 days prior to the expiration date of the individual permit, the permittee submits a notice of intent as specified by subsection (g) of this section. The discharger shall also request that the individual permit be canceled or that the existing permit be amended to remove an authorization pertaining to an affected outfall. The commission will cancel or amend the permit if the executive director does not deny the NOI under subsection (e) of this section. ]

(A)

the permittee has submitted an NOI, if one is required by the general permit, as specified by subsection (f) of this section; and

(B)

the executive director has received the discharger's written request that the individual permit be canceled.

(2)

The general permit may allow a discharger who is covered by an individual permit to obtain authorization to discharge waste from a new outfall under a general permit . Agency action on a new discharge does not affect the status of the discharger's existing individual permit. The general permit shall describe how to obtain authorization to discharge waste from a new outfall. Authorization under the general permit shall not commence until the discharger: [ The individual permit will be automatically canceled when authorization under the general permit becomes effective. ]

(A)

submits an NOI, if one is required by the general permit, as specified in subsection (f) of this section; and

(B)

requests and receives written approval from the executive director of a minor modification to their individual permit exempting the new outfall from coverage under the individual permit.

(3)

Except as provided under subsection (b)(2) of this section, the commission shall cancel an individual permit if the executive director or commission does not deny the NOI or authorization under subsection (c) or (e) of this section [ If the NOI is denied under subsection (e) of this section, the discharger shall apply for renewal of the individual permit prior to the expiration date of the individual permit to maintain authorization to discharge, in accordance with §305.63 of this title (relating to Renewal) ].

[(4)

A discharger who is covered by an individual permit may obtain authorization to discharge waste from a new outfall under a general permit if the discharger submits a written NOI as specified in subsection (f) of this section. Agency action on a new discharge does not affect the status of the discharger's existing individual permit.]

(c)

The following requirements apply to denial of an authorization or notice of intent [ A general permit will specify any applicable deadline for filing the notice of intent. A discharger may begin discharging under the general permit on the 31st day after the executive director receives the discharger's notice of intent unless the executive director before that time notifies the discharger pursuant to subsection (e) of this section that the discharger is not eligible for authorization under the general permit. A NOI must be submitted to the executive director by certified mail, return receipt requested ].

(1)

The executive director shall provide written notice to a discharger if the executive director denies the discharger's NOI or authorization to discharge under a general permit, including, at a minimum, a brief statement of the basis for this decision.

(2)

The executive director shall deny authorization to discharge under an existing general permit for the following reasons:

(A)

the quantity of discharge, the type of waste, or the type of operation does not comply with the general permit;

(B)

the discharge is required to be authorized under the Texas Pollutant Discharge Elimination System (TPDES), and discharging under the general permit would result in backsliding prohibited under 40 Code of Federal Regulations §122.44(l), as amended and adopted under §305.531(3) of this title (relating to Establishing and Calculating Additional Conditions and Limitations for TPDES Permits);

(C)

the discharge is a significant contributor of pollutants impairing the quality of surface or groundwater in the state. In making this determination, the executive director shall consider the following factors:

(i)

the location of the discharge;

(ii)

the size of the discharge;

(iii)

the quantity and nature of pollutants discharged;

(iv)

whether the discharge would impair existing or potential uses of ground water, inconsistent with the policy specified in the Texas Water Code (TWC), §26.401; and

(v)

other factors relating to the protection of water quality standards;

(D)

the discharge is located where it causes or could cause an adverse impact upon a critical area, as defined in 31 TAC §501.3 (relating to Definitions and Abbreviations), and there is a suitable location that is available and capable of being used in light of cost, technology, and logistics;

(E)

the discharger or facility:

(i)

has failed to pay any portion of a delinquent fee or charge assessed by the executive director;

(ii)

is the subject of an unresolved agency enforcement action in which the executive director has issued written notice that enforcement has been initiated;

(iii)

is not in compliance with all requirements, conditions, and time frames specified in an unexpired commission final enforcement order relating to the activity regulated by the general permit; or

(iv)

is subject to an unexpired enforcement order that requires the facility to comply with operating conditions different from or additional to the requirements of the general permit;

(F)

the discharge would be inconsistent with the state water quality management plan (WQMP).

(3)

The executive director may deny authorization to discharge under an existing general permit for reasons including, but not limited to, the following:

(A)

a change has occurred in the availability of demonstrated technology or practices for the prevention, control, or abatement of pollutants applicable to the discharge necessary to be implemented to meet applicable federal or state standards;

(B)

specific effluent limitation guidelines are promulgated for a discharge covered by the general TPDES permit, but the general permit has not yet been amended to incorporate the new effluent limitation guidelines;

(C)

the owner and/or the operator of the facility has not filed an NOI in accordance with §305.43 of this title (relating to Who Applies);

(D)

the discharger has been determined by the executive director to have been out of compliance with any rule, order, or permit of the commission, including non-payment of fees assessed by the executive director.

(4)

If authorization to discharge is denied under this subsection, the executive director may require the person whose authorization is denied to apply for and obtain an individual permit. If the discharger is seeking to replace its individual permit with general permit coverage, but the discharger's general permit authorization is denied, the discharger shall apply for renewal of the individual permit prior to the expiration date of its individual permit to maintain authorization to discharge, in accordance with §305.63 of this title (relating to Renewal).

(d)

The following requirements apply to suspensions of authorizations and NOIs [ Authorization to discharge under a general permit does not confer a vested right. After written notice to the discharger, the executive director may suspend a discharger's authority to discharge under a general permit. The executive director may require a person discharging under a general permit to immediately cease the discharge. The executive director may also require the person to apply for and obtain an individual permit. The notice of suspension to such a person shall include a brief statement of the basis for this decision under subsection (f) of this section, a statement of whether the discharger shall immediately cease the discharge, an application form, a statement setting the deadline for filing the application for an individual permit, and a statement that the person's discharge authorization under the general permit shall be suspended on the effective date of the commission's action on the individual permit application unless the commission expressly provides otherwise. If an application is not received by the deadline specified, the executive director shall suspend a discharger's authority to discharge under a general permit ].

(1)

The general permit shall describe the procedures for suspension of authorization and NOIs under a general permit. The general permit shall require the executive director to provide written notice to a discharger that the executive director intends to suspend a discharger's authority to discharge under a general permit, including:

(A)

a brief statement of the basis for this decision under this subsection;

(B)

a statement of whether the discharger shall immediately cease the discharge;

(C)

a statement setting the deadline for filing the application for an individual permit; and

(D)

a statement that the person's discharge authorization under the general permit shall be suspended on the effective date of the commission's action on the individual permit application unless the commission expressly provides otherwise;

(2)

If a discharger's authorization under a general permit is suspended, the discharger shall immediately cease the discharge.

(3)

The executive director may require the person whose authorization to discharge is suspended to apply for and obtain an individual permit.

(4)

After providing written notice to the discharger, the executive director shall suspend authorization to discharge under an existing general permit for the following reasons:

(A)

the quantity of discharge, the type of waste, or the type of operation does not comply with the general permit;

(B)

the discharge is a significant contributor of pollutants impairing the quality of surface or groundwater in the state. In making this determination, the executive director shall consider the following factors:

(i)

the location of the discharge;

(ii)

the size of the discharge;

(iii)

the quantity and nature of pollutants discharged; and

(iv)

whether the discharge would impair existing or potential uses of groundwater, inconsistent with the policy specified in the TWC, §26.401;

(v)

other factors relating to the protection of water quality standards;

(C)

the discharger or facility:

(i)

has failed to pay any portion of a delinquent fee or charge assessed by the executive director;

(ii)

is the subject of an unresolved agency enforcement action in which the executive director has issued written notice that enforcement has been initiated;

(iii)

is not in compliance with all requirements, conditions, and timeframes specified in an unexpired commission final enforcement order relating to the activity regulated by the general permit, or

(iv)

is subject to an unexpired enforcement order that requires the facility to comply with operating conditions different from or additional to the requirements of the general permit;

(D)

the discharge is inconsistent with the state WQMP;

(E)

an application is not received by the deadline specified by rule or in the general permit.

(5)

After providing written notice to the discharger, the executive director may suspend authorization to discharge under an existing general permit for reasons including, but not limited to, the following:

(A)

a change has occurred in the availability of demonstrated technology or practices for the prevention, control, or abatement of pollutants applicable to the discharge necessary to be implemented to meet applicable federal or state standards;

(B)

specific effluent limitation guidelines are promulgated for a discharge covered by the general TPDES permit, but the general permit has not yet been amended to incorporate the new effluent limitation guidelines;

(C)

the owner and/or the operator of the facility has not filed an NOI in accordance with §305.43 of this title;

(D)

circumstances have changed since the time of the NOI so that the discharge is no longer appropriately controlled to meet applicable water quality standards under the general permit, or either a temporary or permanent reduction, or elimination of the authorized discharge is necessary;

(E)

the discharger has been determined by the executive director to have been out of compliance with any rule, order, or permit of the commission, including non-payment of fees assessed by the executive director.

(6)

The executive director's decisions on NOIs under this chapter are subject to §50.139 of this title (relating to Motion to Overturn Executive Director's Decision).

(e)

The commission, after hearing, shall deny or suspend a discharger's authority to discharge under a general permit if the commission determines that the discharger operates any facility for which the discharger's compliance history contains violations constituting a recurring pattern of egregious conduct that demonstrates a consistent disregard for the regulatory process, including a failure to make a timely and substantial attempt to correct the violations. A hearing under this subsection is not subject to Texas Government Code, Chapter 2001. [ The executive director shall deny an NOI to discharge under an existing general permit and may require the person to apply for and obtain an individual permit if the discharger is not eligible for authorization under the general permit for reasons including, but not limited to, the following: ]

[ (1)

The quantity of discharge, the type of waste, or the type of operation does not comply with the general permit;]

[ (2)

In the case of determining eligibility to discharge under the Texas Pollutant Discharge Elimination System (TPDES), a determination that backsliding under 40 CFR §122.44(l) would occur if the general permit replaced the individual permit;]

[ (3)

The discharge is a significant contributor of pollutants impairing the quality of surface or ground water in the state. In making this determination, the executive director shall consider the following factors:]

[ (A)

The location of the discharge;]

[ (B)

The size of the discharge;]

[ (C)

The quantity and nature of pollutants discharged; and]

[ (D)

Whether the discharge would impair existing or potential uses of ground water, inconsistent with the policy specified in §26.401 of the Texas Water Code;]

[ (E)

Other factors relating to the protection of water quality standards;]

[ (4)

The discharge is located where it poses or could pose an adverse impact upon a critical area, as defined in 31 TAC §501.3 (relating to Definitions and Abbreviations), and it is practicable to locate the discharge in a more suitable location. An alternative is practicable if it is available and capable of being done in light of cost, technology, and logistics;]

[ (5)

The discharger or facility:]

[ (A)

has failed to pay any portion of a delinquent fee or charge assessed by the commission;]

[ (B)

is the subject of an unresolved TNRCC enforcement action in which the executive director has issued written notice that enforcement has been initiated;]

[ (C)

is not in compliance with all requirements, conditions, and timeframes specified in an unexpired TNRCC final enforcement order relating to the activity regulated by the general permit, or]

[ (D)

is subject to an unexpired enforcement order that requires the facility to comply with operating conditions different from or additional to the requirements of the general permit;]

[ (6)

A change has occurred in the availability of demonstrated technology or practices for the control or abatement of pollutants applicable to the discharge necessary to be implemented to meet applicable federal or state standards;]

[ (7)

Specific effluent limitation guidelines are promulgated for a discharge covered by the general TPDES permit, but the general permit has not yet been amended to incorporate the new effluent limitation guidelines; or]

[ (8)

The discharge would be inconsistent with the state Water Quality Management Plan.]

[ (f)

The executive director may suspend a discharger's authorization under a general permit, and may require the discharger to immediately cease the discharge. The executive director may also require the person to apply for and obtain an individual permit if the discharger is not eligible for authorization under the general permit for reasons including, but not limited to, the following:]

[ (1)

The owner and/or the operator of the facility has not filed a notice of intent in accordance with §305.43 of this title (relating to Who Applies);]

[ (2)

The quantity of discharge, the type of waste, or the type of operation does not comply with the general permit;]

[ (3)

In the case of determining eligibility to discharge under the Texas Pollutant Discharge Elimination System (TPDES), a determination that backsliding under 40 CFR §122.44(l) would occur if the general permit replaced the individual permit;]

[ (4)

Circumstances have changed since the time of the NOI so that the discharge is no longer appropriately controlled to meet applicable water quality standards under the general permit, or either a temporary or permanent reduction or elimination of the authorized discharge is necessary;]

[ (5)

The discharge is a significant contributor of pollutants impairing the quality of surface or ground water in the state. In making this determination, the executive director shall consider the following factors:]

[ (A)

The location of the discharge;]

[ (B)

The size of the discharge;]

[ (C)

The quantity and nature of pollutants discharged;]

[ (D)

Whether the discharge would impair existing or potential uses of ground water, inconsistent with the policy specified in §26.401 of the Texas Water Code; and]

[ (E)

Other factors relating to the protection of water quality standards;]

[ (6)

The discharge is located where it poses or could pose an adverse impact upon a critical area, as defined in 31 TAC §501.3 (relating to Definitions and Abbreviations), and it is practicable to locate the discharge in a more suitable location. An alternative is practicable if it is available and capable of being done in light of cost, technology, and logistics;]

[ (7)

The discharger has been determined by the commission to have been out of compliance with any rule, order, or permit of the commission, including non-payment of fees assessed by the commission;]

[ (8)

A change has occurred in the availability of demonstrated technology or practices for the control or abatement of pollutants applicable to the discharge necessary to be implemented to meet applicable federal or state standards;]

[ (9)

Specific effluent limitation guidelines are promulgated for a discharge covered by the general TPDES permit, but the general permit has not yet been amended to incorporate the new effluent limitation guidelines; or]

[ (10)

The discharge would be inconsistent with the state Water Quality Management Plan.]

(f)

[ (g) ] The general permit shall describe the [ The ] content of the NOI [ notice of intent ] , if one is required by [ shall be specified in ] the general permit . At a minimum, the NOI [ which ] shall require the submission of information necessary for adequate program implementation including, at a minimum, the legal name and address of the owner and operator, the facility name and address, specific description of its location, type of facility or discharges, and the receiving water(s). An NOI shall be signed in accordance with §305.44 of this title (relating to Signatories to Applications).

(g)

[ (h) ] The general permit may require a [ A ] person seeking authorization by general permit to [ shall ] submit an application fee payable to the agency [ commission ] at the time of filing an NOI [ notice of intent ]. The amount of the fee may [ shall ] be set in accordance with §305.53 of this title (relating to Application Fee) or may [ will ] be specified in each general permit and NOI form. If a person is denied coverage under the general permit in accordance with subsection (c) or (e) of this section, any [ the ] application fee will be applied to the application fee required for an individual permit application for the same discharge.

(h)

[ (i) ] The general permit shall require a [ A ] person authorized to discharge waste under a general permit to [ must ] submit up-to-date information to the executive director in a notice of change [ new NOI ] not later than ten [ 10 ] days prior to a change in previous information provided to the agency [ commission ] or any other change with respect to the nature or operations of the facility or the characteristics of the discharge. In cases where the general permit requires that an NOI be submitted, the general permit shall require that when [ When ] the ownership [ owner ] of the facility changes or is [ has been ] transferred, a notice of termination be submitted by the present owner, and a new NOI [ must ] be submitted by the new owner, not later than ten [ 10 ] days prior to the change in ownership.

(i)

[ (j) ] When requested by a county or municipality, the commission may establish a provision in a general permit for notification by the discharger to a county judge or mayor of a municipality of NOIs that would allow discharges within their respective jurisdiction. If the executive director or commission denies authorization [ an NOI ] for a proposed discharge in the county or municipality, the executive director shall [ will ] notify the county judge or mayor.

§205.5. Permit Duration, Amendment, and Renewal.

(a)

(No change.)

(b)

A general permit remains in effect until amended, revoked, or canceled by the commission or, unless renewed by the commission, until it expires. If before its expiration, the commission proposes to renew a general permit, the general permit shall remain in effect after the expiration date for those existing discharges covered by the general permit. The general permit shall remain in effect for these dischargers until the date on which the commission takes final action on the proposed permit renewal. No new notices of intent (NOIs) will be accepted or new authorizations honored for authorization under the general permit after the expiration date.

(c)

Upon issuance of a renewed or amended general permit, all facilities, including those covered under the expired general permit, [ the facility ] shall submit an NOI, if one is required by the general permit, [ a notice of intent ] in accordance with the requirements of the new permit.

(d)

If the commission has not proposed to [ does not ] renew a general permit at least 90 days before its expiration date, dischargers authorized under the general permit shall submit an application for an individual permit before the general permit's expiration. If an application for an individual permit is submitted before the general permit's expiration, authorization under the expired general permit remains in effect until the issuance or denial of an individual permit. [ , it will provide such determination prior to the expiration of the general permit, and each discharger authorized under the general permit will be provided written notice that the discharger must apply for an individual permit. ]

(e)

(No change.)

(f)

Before issuing a general permit, the commission shall review the [ A ] general permit for consistency [ must be consistent ] with the Texas Coastal Management Plan (CMP). The commission must find that the general permit is [ A proposed general permit must be reviewed and the action of issuing a general permit must be found to be ] consistent with the applicable CMP goals and policies and that it will not adversely affect any applicable coastal natural resource areas (CNRAs) as identified in the CMP before the commission may issue the general permit .

§205.6. Annual Fee Assessments.

A person authorized by a general permit shall pay[ : ] an annual waste treatment inspection fee under Texas Water Code (TWC) , §26.0291 , consistent with §§305.501 - 305.507 of this title (relating to the Waste Treatment Inspection Fee Program); and may be subject to an annual watershed monitoring and assessment fee under TWC [ Texas Water Code ], §26.0135(h) , consistent with §220.21 [ §320.21 ] of this title (relating to Water Quality Assessment Fees).

§205.7. Additional Characteristics and Conditions for General Permits.

40 Code of Federal Regulations (CFR) §122.28, as amended through April 2, 1992, at 57 FedReg 11413, is adopted by reference, except 40 CFR §122.28(b)(3)(ii) and (c), and except as follows: where 40 CFR §122.28 refers to an "NPDES permit," the references are more properly made, for state law purposes, to a "TPDES permit," as applicable; and where 40 CFR §122.28(b)(3)(iii) refers to 40 CFR §122.21, the reference is more properly made, for state law purposes, to applicable sections of this chapter, Chapter 281 of this title (relating to Application Processing), and Chapter 305 of this title (relating to Consolidated Permits).

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on May 19, 2000.

TRD-200003507

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: July 3, 2000

For further information, please call: (512) 239-4712


Chapter 334. UNDERGROUND AND ABOVEGROUND STORAGE TANKS

The Texas Natural Resource Conservation Commission (TNRCC or commission) proposes new Chapter 334, Subchapter A, §334.18, Limits on Liability of Taxing Unit and Subchapter C, §334.56, Exempt or Excluded Status; proposes amendments to Subchapter A, §334.1, Purpose and Applicability; §334.2, Definitions; §334.3, Statutory Exemptions; §334.4, Commission Exclusions; §334.5, General Prohibitions; §334.6, Construction Notification; §334.7, Registration; §334.8, Certification; §334.9, Seller's Disclosure; §334.10, Reporting and Recordkeeping, §334.12, Other General Provisions; §334.15, Limits on Liability of Lender; §334.17, Privatization of Storage Tank Program; and §334.18, Limits on Liability of Taxing Unit; Subchapter B, §334.21, Fee Assessment; §334.22, Failure To Make Payment; §334.23, Disposition of Fees, Interest, and Penalties; Subchapter C, §334.41, Applicability; §334.42, General Standards; §334.43, Variances and Alternative Procedures; §334.44, Implementation Schedules; §334.45, Technical Standards for New Underground Storage Tank Systems; §334.46, Installation Standards for New Underground Storage Tank Systems; §334.47, Technical Standards for Existing Underground Storage Tank Systems; §334.48, General Operating and Management Requirements; §334.49, Corrosion Protection; §334.50, Release Detection; §334.51, Spill and Overfill Prevention and Control; §334.52, Underground Storage Tank System Repairs and Relining; §334.54, Temporary Removal from Service; §334.55, Permanent Removal from Service; §334.56, Exempt or Excluded Status; Subchapter D, §334.71, Applicability; §334.72, Reporting of Suspected Releases; §334.73, Investigation Due to Off-Site Impacts; §334.74, Release Investigation and Confirmation Steps; §334.75, Reporting and Cleanup of Surface Spills and Overfills; §334.76, Initial Response to Releases; §334.77, Initial Abatement Measures and Site Check; §334.78, Site Assessment; §334.79, Free Product Removal; §334.80, Investigation for Soil and Groundwater Cleanup; §334.81, Corrective Action Plan; §334.82, Public Participation; §334.83, Emergency Orders; §334.84, Corrective Action by the Commission; §334.85, Management of Waste; Subchapter F, §334.121, Purpose and Applicability; §334.122, Definitions for ASTs; §334.123, Statutory Exemptions for ASTs; §334.124, Commission Exclusions for ASTs; §334.125, General Prohibitions and Requirements for ASTs; §334.126, Installation Notification for ASTs; §334.127, Registration for ASTs; §334.128, Annual Facility Fees for ASTs; §334.129, Release Reporting and Corrective Action for ASTs; §334.130, Reporting and Recordkeeping for ASTs; 334.132, Other General Provisions for ASTs; Subchapter G, §334.201, Purpose and Applicability; §334.202, Definitions; §334.203, Risk-Based Criteria for Establishing Target Concentrations; §334.204, Criteria for Selection of Land Use; §334.205, Institutional Control Requirements; §334.206, Institutional Control Use; §334.208, Model Institutional Controls; Subchapter H, §334.301, Applicability of the Subchapter; §334.302, General Conditions and Limitations Regarding Reimbursement; §334.303, Time to File Application; §334.304, Who May File Application; §334.305, Where and How Documentation Must be Filed; §334.306, Form and Contents of Application; §334.307, Technical Information Required; §334.308, Allowable Costs and Restrictions on Allowable Costs; §334.309, Reimbursable Costs; §334.310, Requirements for Eligibility; §334.312, Owner/Operator Contribution; §334.313, Review of Application; §334.314, Executive Director's Fund Payment Report; §334.315, Protest of Fund Payment Report; §334.318, Recovery of Costs; §334.320, Responsibilities of Owners and Operators; §334.321, Corrective Action by the Commission; §334.322, Subchapter H Definitions; Subchapter I, §334.402, Application for Certificate of Registration; §334.403, Issuance of Certificate of Registration; §334.404, Renewal of Certificate of Registration; §334.405, Denial of Certificate of Registration; §334.406, Fee Assessments for Certificate of Registration; §334.407, Other Requirements for Certificate of Registration; §334.409, Revocation, Suspension, or Reinstatement of Certificate of Registration and License; §334.411, Type of Hearing; §334.412, Definitions; §334.414, License for Installers and On-site Supervisors; §334.416, Requirements for Issuance of License A and License B; §334.417, Application for License A and License B; §334.418, Notification of Examination; §334.419, License A and License B Examination; §334.420, Issuance of License A or License B; §334.421, Renewal of License; §334.422, Denial of License A or License B; §334.423, Fee Assessments for License A and License B; §334.424, Other Requirements for a License A and License B; §334.426, Revocation, Suspension, or Reinstatement of a License A and License B; §334.428, Type of Hearing; Subchapter J, §334.452, Exemptions from Subchapter J; §334.453, General Requirements and Prohibitions; §334.455, Notice to Owner or Operator; §334.456, Application for Certificate of Registration for Corrective Action Specialist; §334.457, Application for Certificate of Registration for Corrective Action Project Manager; §334.458, Review and Issuance of Certificates of Registration; §334.459, Continuing Education Requirements for Corrective Action Project Managers; §334.460, Renewal of Certificate of Registration for Corrective Action Specialist and Corrective Action Project Manager; §334.461, Denial of Certificate of Registration; §334.462, Other Requirements; §334.463, Grounds for Revocation or Suspension of Certificate of Registration; §334.465, Procedures for Revocation or Suspension of a Certificate of Registration; §334.466, Reinstatement of a Certificate of Registration; §334.467, Fee Assessments for Certificates of Registration; Subchapter K, §334.481, Definitions; §334.482, General Prohibitions; §334.484, Registration Required for Petroleum-Substance Waste Storage or Treatment Facilities; §334.485, Suspension or Revocation of Registration; §334.486, Denial of Application for Registration or Renewal; §334.487, Renewal of Registration; §334.488, Authorization for Class C and Class D Facilities; §334.490, Notification and Mobilization Requirements for Class B Facilities; §334.492, Public Notice; §334.493, Public Meetings for Class A Facilities; §334.494, Closure and Facility Expansion; §334.495, Location Standards for Class A Petroleum-Substance Waste Storage or Treatment Facilities; §334.496, Shipping Procedures Applicable to Generators of Petroleum-Substance Waste; §334.497, Recordkeeping and Reporting Procedures Applicable to Generators; §334.499, Shipping Requirements Applicable to Owners or Operators of Storage, Treatment, or Disposal Facilities; §334.500, Recordkeeping Requirements Applicable to Owners or Operators of Storage, Treatment, or Disposal Facilities; §334.501, Additional Reports; §334.502, Design and Operating Requirements of Stockpiles and Land Surface Treatment Units; §334.503, Reuse of Petroleum-Substance Waste; §334.504, Contaminant Assessment Program and Corrective Action; §334.506, Contingency Plan; §334.507, Emergency Procedures; §334.508, Closure Requirements Applicable to Class A and Class B Facilities; and Subchapter L, §334.531, Responsibility of Recipients of Money from the PSTR Fund and Persons Paid by Recipients of Money from the Petroleum Storage Tank Remediation Fund; §334.532, Payments; §334.533, Audits; §334.534, Notice of Overpayment; §334.535, Objections to the Notice of Overpayment and Formal Petition for Hearing; and §334.537, Failure to Return Overpayment or Cooperate with Audit or Investigation; and the repeal of Subchapter A, §334.11, Enforcement; Subchapter E, §334.91-334.110, Financial Responsibility; Subchapter F, §334.131, Enforcement for ASTs; Subchapter I, §334.413, License for Installers and On-Site Supervisors and §334.429, Penalties Effective On or After September 1, 1995. The commission proposes these revisions to Chapter 334, Underground and Aboveground Storage Tanks, to implement House Bills (HBs) 2109, 2815, and 2816, 76th Legislature, 1999, and their corresponding changes to the Texas Water Code (TWC); and to do "limited" regulatory reform amendments to streamline the rules and to improve clarity and readability.

The commission also proposes the review of the rules in Chapter 334 as required by the Texas Government Code, §2001.039, and the General Appropriations Act, Article IX, §9-10.13, 76th Legislature, 1999. The proposed notice of review can be found in the Rule Review section of this issue of the Texas Register .

BACKGROUND AND SUMMARY OF THE FACTUAL BASIS FOR THE PROPOSED RULES

The proposed rules implement House Bills (HBs) 2109, 2815, and 2816, 76th legislature, 1999. HB 2109 limits environmental liability for qualifying local taxing authorities that foreclose on properties with storage tanks. HB 2815 creates an annual compliance self-certification process, whereby certain tank owners/operators must certify that their tanks meet certain technical and administrative requirements prior to accepting motor fuel deliveries, and "common carriers" must verify (through the observation of a delivery certificate) that self-certification has been accomplished prior to delivering fuel. HB 2815 also extends two corrective action deadlines for being eligible for reimbursement from the state Petroleum Storage Tank Reimbursement Fund without an increase in the deductible paid by the owner or operator. The December 23, 1997 corrective action plan deadline was extended by six months; and the December 23, 1998 corrective action implementation goals deadline was extended by 12 months. Also, HB 2815 added a requirement for the agency to respond to an administratively complete reimbursement application with a fund payment report by the 90th day from receipt of the application. In HB 2816, the expiration date of the Petroleum Storage Tank Reimbursement Fund was extended an additional two years to September 1, 2003. The agency also decided to do a limited amount of regulatory reform that would not delay the rule changes needed to implement the legislation and to open Chapter 334 to rule review public comment.

One element of this proposal is to make certain tank operators jointly and severally liable with certain tank owners under §334.7, Registration. To implement HB 2815, the new compliance certification program is being merged with the existing tank registration program. Since the bill calls for operators to be jointly and severally liable with tank owners for compliance certification purposes, the TNRCC is proposing the same type of liability for tank registration purposes. Aside from facilitating the implementation of the bill, making this change would also bring §334.7 in line with the liability scheme of the remainder of Chapter 334 (excluding tank fees, which is statutorily derived). Other benefits of this change include increased compliance with tank registration requirements (which are an element of federal program delegation)--and agency tank registration rules establish the database that facilitates annual tank fee billings, aids in establishing "responsible parties" for leaking petroleum storage tank sites, etc.

SECTION BY SECTION DISCUSSION

The commission has conducted a preliminary review of the rules under Chapter 334 and has determined that the justification for their adoption continues to exist. The rules are necessary to prevent the contamination of water and other media by leaks from storage tanks and to provide requirements for remediation of petroleum contaminated sites and soils; to implement TWC, Chapter 26, Subchapter I, Underground Storage Tanks and Subchapter K, Underground Storage Tank Installers; and to implement requirements necessary to maintain federal petroleum storage tank (PST) program delegation.

Unless otherwise noted, all the federal citations in this proposed rulemaking will be adopted as they currently exist, as well as prospectively amended by the United States Environmental Protection Agency.

Subchapter A, General Provisions

The primary purpose of the proposed amendments is to incorporate changes into the program as a result of the passage of HBs 2109 and 2815. HB 2109 limits environmental liability for qualifying local taxing authorities that foreclose on properties with storage tanks. HB 2815 creates an annual tank requirement self-certification process, whereby tank owners/operators must certify that their tanks meet certain technical and administrative requirements to prior to accepting motor fuel deliveries, and "common carriers" must verify (through the observation of a delivery certificate) that self-certification has been accomplished prior to delivering fuel.

Throughout this rulemaking, "executive director" and "commissioner" are often changed to "agency" to be consistent with the agency general definitions in 30 TAC Chapter 3. The reason for these changes, just given, will not be discussed further in this preamble, but each instance will be noted.

Also, throughout this rulemaking, many changes have been made to correct formatting, such as defining acronyms and subsequently using them in place of the defined term (underground storage tank (UST), aboveground storage tank (AST), Texas Water Code (TWC), leaking petroleum storage tank (LPST), petroleum storage tank remediation (PSTR), etc.), deleting the title cross references where the title of the referenced section has already been given once within the rule section, change "a" to "an", capitalization changes, spelling out numbers ten and below, etc. These type of formatting changes will not be discussed further in this preamble.

Section 334.1, Purpose and Applicability, is proposed to be amended. Section 334.1(a)(1) is proposed to be amended to clarify the rule and more accurately reflect the regulatory scheme: by changing the phrase "underground storage tank systems storing hazardous substances and petroleum substances" to "hazardous substance and petroleum substance underground storage tank (UST) systems"; by changing the phrase "and for aboveground storage tanks storing certain petroleum products" to "and a limited regulatory program for petroleum product aboveground storage tanks (ASTs)"; and by adding the phrase "and Subchapter K" to the included reference. Section 334.1(b)(1) is proposed to be amended to replace "shall be" with "is" to improve readability. Section 334.1(b)(1)(C) and (D) is proposed to be amended to delete an unnecessary comma, and to delete "Statutory" and "Commission" and add "for Underground Storage Tanks (USTs) and UST Systems" to reflect the proposed new names of the referenced sections. Section 334.1(b)(2) is proposed to be amended to delete "applicable" and to replace "shall apply" with "are applicable" to improve readability, to add "self-certification" to reflect the new rules implementing HB 2815, to add "(including risk-based corrective action)" as a clarification to reflect the addition of previously adopted risk based concepts elsewhere in this chapter, and to add a cross reference to the underground storage tank (UST) financial assurance requirements in Chapter 37, new Subchapter I, Financial Assurance for Petroleum Underground Storage Tank Systems. Section 334.1(b)(3) is proposed to be amended to delete "applicable" to provide clarification and to delete "shall" to improve readability. Section 334.1(b)(4) is proposed to be amended to replace "shall be" with "are" to improve readability. Section 334.1(c)(1) is proposed to be amended to replace "shall be" with "is" to improve readability. Section 334.1(c)(1)(A) and (B) is proposed to be amended to reflect the movement of the definitions from Subchapter F, Aboveground Storage Tanks, to §334.2, Definitions. The term "for ASTs" was deleted in §334.1(c)(1)(A) to reflect the movement of the definition from Subchapter F to §334.2. Section 334.1(c)(1)(C) is proposed to be amended to replace "in" with "under" to improve readability, and to delete "Statutory" and add "Aboveground Storage Tanks (ASTs)" to reflect the new name of the referenced section. Section 334.1(c)(1)(D) is proposed to be amended to replace "in" with "under" to improve readability and to delete "Commission" and add "Aboveground Storage Tanks" to reflect the new name of the referenced section. Section 334.1(c)(2) is proposed to be amended to delete the word "applicable" to provide clarification; to delete word "shall" to improve readability and to insert the term "(including risk-based corrective action)" to provide clarification and to reflect the addition of previously adopted risk based concepts elsewhere in this chapter. Section 334.1(c)(4) is proposed to be amended to replace "shall be" with "are" to improve readability. Section 334.1(c)(6) is proposed to be amended to delete the word "statutory" to be consistent with the new name of the referenced section, to delete the §334.123 title because it has already been given once in this section, and to replace "shall be" with "is" to improve readability. Section 334.1(d)(1) and (2) is proposed to be reorganized to clarify them as to applicability of the sections in this subchapter and to improve readability.

Section 334.2, Definitions, of this subchapter is proposed to be amended. The definitions in this section are proposed to be amended by renumbering to reflect the proposed addition and deletion of various definitions in this section. In the first sentence of the section, the word "shall" is proposed to be deleted to improve readability. The definition "Abandonment-in-place" is proposed to be amended to define the acronym for underground storage tank the first time it is used and to add a cross reference for clarification. The definition "Abatement" is proposed to be moved to this subchapter from Subchapter H, Petroleum Storage Tank Reimbursement Program, since it is used in more than one subchapter and the term is clarified. The definition "Aboveground storage tank (AST)" is proposed to be moved to this subchapter from Subchapter F. The existing definition, "Accidental release" is proposed to be deleted from this subchapter and moved to the definitions section of Chapter 37, new Subchapter I. The definition "ACT" is proposed to be amended by adding language to add clarification and improve readability. The definition "Allowable cost" is proposed to be amended by removing the word "Interim" in the cross reference to Subchapter H, §334.308, to reflect the proposed new title of the section. The definition "ANSI" is proposed to be amended by adding descriptive language to provide clarification and improve readability. The definition "API" is proposed to be amended by adding descriptive language to provide clarification and improve readability. The term "Appropriate district office" and its definition are proposed to be amended by changing "district" to "regional" in two places to reflect current agency terminology; by changing "commission's to "agency's" and "commission" to "agency"; and by adding "or AST system" to provide clarification. The definition "ASTM" is proposed to be amended by adding descriptive language to provide clarification and improve readability. The definition "Backfill" is proposed to be moved to this subchapter from Subchapter H because it is used in more than one chapter. The existing definition, "Bodily Injury" is proposed to be deleted from this subchapter and moved to the definitions section of Chapter 37, new Subchapter I. The existing definition, "Bulk storage tank" is proposed to be deleted as an unnecessary term and to avoid confusion with the "bulk facility" term in Subchapter F. The definition "Closure letter" is proposed to be amended to change "commission" to "agency" in three places and to add clarification by deleting specific reference to owners or operators to acknowledge that landowner responsible parties can also obtain a closure letter upon completion of cleanup. The definition "Commingled" is proposed to be moved to this subchapter from Subchapter H and clarified. The existing definition, "Commission" is proposed to be deleted because it is defined in Chapter 3. The definition "Common carrier" is proposed to be added to this section to define the term used in rules necessary to implement the requirements of HB 2815 and the term is used in proposed rule clarification language applicable to existing UST and AST delivery prohibitions. The definition "Composite tank" is proposed to be amended by replacing "an external" with "a" and adding "to the external surface of the outer tank wall" to provide clarification and to improve readability. The existing definition, "Controlling interest" is proposed to be deleted from this subchapter and moved to Chapter 37, new Subchapter I. The definition "Corrective action" is proposed to be moved to this subchapter from Subchapter H because it is used in more than one subchapter and clarified by adding the word "monitoring" in the list of activities. The definition "Corrective action plan (or remedial action plan)" is proposed to be moved to this subchapter from Subchapter H because it is used in more than one subchapter and clarified by adding the word "required" before the word "protection." Under the definition, "Corrosion specialist", subparagraphs (A) and (B) are proposed to be amended to reflect the current names of the National Association of Corrosion Engineers and the Texas State Board of Registration for Professional Engineers. Under the definition for "Corrosion technician", subparagraphs (A) and (C) are proposed to be amended to reflect the current name of the National Association of Corrosion Engineers. Subparagraph (B) is proposed to be amended by inserting the word "or" at its end for readability and subparagraph (D) is proposed to be deleted to ensure appropriate certification by NACE International or direct supervision by a corrosion specialist. The existing definition, "Cost effective work" is proposed to be deleted as an outdated auditing term. The definition "Emergency generator" is proposed to be amended by removing "shall" for readability. The existing definition, "EPA" is proposed to be deleted because it is defined in Chapter 3, which contains agency general definitions. The existing definition, "Executive director" is proposed to be deleted. The definition "Existing UST system" is proposed to be amended by changing "has" to "had" in four places, "can" to "could," "require" to "required," and "is" to "was" to improve readability. The definition "Facility" is proposed to be amended by deleting the definition from Subchapter F; that deletion is compensated for in this definition by adding the term "or one or more AST systems"; and unnecessary and confusing language which could have been read to include all contiguous land, even that owned by others, is proposed to be deleted. The existing definition, "Facility owner" is proposed to be deleted as an unnecessary term. The definition "Field constructed tank" is proposed to be amended by adding the phrase "not factory assembled, and which is, " by adding the word "same," and by replacing "to be" with "subsequently" to provide clarification and improve readability. The existing definition, "Financial reporting year" is proposed to be deleted from this subchapter and moved to Chapter 37, new Subchapter I. The definition "Flow-through process tank" is proposed to be amended by deleting the phrase "not including" and replacing it with "excluding" to improve readability. The definition "Free product" is proposed to be amended by adding "(or non-aqueous phase liquid)" for clarification and cross reference purposes. The definition "Hydraulic fluid" is proposed to be moved to this subchapter from Subchapter H. The definition "Hydraulic lift tank" is proposed to be amended by changing "and" to "or" to provide clarification. The definition "Jacketed tank" is proposed to be added to this section to better address existing and new UST technology. The existing definition, "Legal defense cost" is proposed to be deleted from this subchapter and moved to Chapter 37, new Subchapter I. The definition "Lender" is proposed to be amended by adding the term "state or federal" to better define "savings bank" and by adding the term "a credit union" to the list of lenders to provide clarification. The definition "Leaking petroleum storage tank (LPST) site" is proposed to be moved to this subchapter from Subchapter K, Storage, Treatment, and Reuse Procedures for Petroleum--Substance Contaminated Soil, and amended by changing the term "executive director" to "agency." The definition "Monitoring well" is proposed to be amended by changing "shall" to "does" to improve clarity and readability. The definition "Motor fuel" is proposed to be amended by providing clarification and improve readability by changing "transportation" to "motor", by adding "aircraft" to the list of vehicles and vessels since aviation gasoline is one of the originally listed fuels in the definition, by changing "leaded or unleaded" to "motor", and by changing "and any grades of" to "or." The definition "NACE" is proposed to be amended by providing changes which reflect the current as well as the former name of the organization and by providing descriptive language about what the association is, for clarification. The existing definition, cost" is proposed to be deleted as an outdated auditing term. The existing definition, "Necessary work/technically necessary work" is proposed to be deleted as an outdated auditing term. The definition "New UST system" is proposed to be amended by deleting the word "has" to improve readability. The definition "NFPA" is proposed to be amended by adding descriptive language about what the association is, for clarification. The definition "Non-aqueous phase liquid (NAPL)" is proposed to be added to this section and a cross reference to the definition "Free product (or non-aqueous phase liquid)" in this section added to provide clarification and to recognize the interchangeability of the terms. The definition "Occurrence" is proposed to be amended by replacing "accident" with "incident," by adding "or AST" and "or tank system" to clarify the meaning and effect of the term, and by removing unnecessary language applicable to financial responsibility. The definition " Operator" is proposed to be amended by adding language to specify persons who are in "day-to-day" control of "and" have responsibility for daily operation to reflect the requirements of HB 2815 and by adding language to include application to aboveground storage tank systems to compensate for the deletion of this definition from Subchapter F. The definition "Owner" is proposed to be amended by adding language to include application to ASTs to compensate for the deletion of this definition from Subchapter F and by adding the phrase "Except as otherwise provided by the Texas Water Code, §§26.3514-26.3516, owner" to incorporate HB 2109 and the other listed statutory exceptions. The definition "PEI" is proposed to be amended by adding descriptive language about what the association is, to provide clarification. The definition "Petroleum product" is proposed to be moved from Subchapter F, to this section because it is used in more than one subchapter and to be modified by deleting the word "necessarily" from the phrase "not necessarily limited" to improve readability. The definition "Petroleum substance" is proposed to be amended by movement of a cross reference phrase from the end of the definition to the middle to improve clarity, by changing "shall be" to "is" to improve readability, and by deleting subparagraph (N) from the list of substances/mixtures to make the rest of the list all-inclusive. The definition "Petroleum UST system" is proposed to be amended by changing the word "shall" to "must" to improve readability. The definition "Piping" is proposed to be amended by adding "in an UST system" to improve clarity. The definition "Professional engineer" is proposed to be amended by updating the name of the Texas Board of Professional Engineers and to comply with the language of the most recent version of the Engineering Practice Act. The existing definition, "Property Damage" is proposed to be deleted from this subchapter and moved to Chapter 37, new Subchapter I, because it concerns UST financial assurance. The existing definition, "Provider of financial assurance" is proposed to be deleted from this subchapter and moved to Chapter 37, new Subchapter I, because it concerns financial assurance. The existing definition, "Reasonable cost," is proposed to be deleted from this subchapter as an outdated auditing term. The definition "Regulated substance" is proposed to be amended by changing the term "shall be" to "is" to improve readability. The existing definition, "Reimbursable cost," is proposed to be deleted because the concept is addressed by rule in Subchapters H and M of this chapter. The definition "Release" is proposed to be amended by adding language to include application to ASTs to compensate for the deletion of this definition from Subchapter F. The definition "Release detection" is proposed to be amended by adding "is occurring or" to provide clarity. The definition "Responsible party" is proposed to be added to this subchapter to provide a regulatory definition of a commonly used term in the PST program, also it captures the concept that the agency has always been able to use its discretion to choose the party, from among those with a legal liability for an LPST site, to which it will issue corrective action directives. The definition "Retail service station" is proposed to be moved to this subchapter from Subchapter F, because it is used in more than one subchapter. The existing definition, "SARA" is proposed to be deleted from this subchapter because it is defined in Chapter 3. The definition "Secondary Containment" is proposed to be amended by providing clarity and improve readability by adding the terms "jacket", "jackets", "containment boots", and "sumps", by moving "and double-wall tank and/or piping systems" from the end to the beginning of the list of systems, and by changing a comma to a colon for better punctuation. The definition "STI" is proposed to be amended by adding descriptive language about what the organization is, to provide clarification and improve readability. The existing definition, "Substantial business relationship" is proposed to be deleted and moved to Chapter 37, new Subchapter I, because the definition concerns financial assurance. The definition "Sump" is proposed to be amended by changing "temporarily" to "and temporarily store" to provide clarification and improve readability. The existing definition, "Tangible net worth," is proposed to be deleted and moved to Chapter 37, new Subchapter I, because the definition concerns financial assurance. The definition "Taxing Unit" is proposed to be added to this section to facilitate implementation of HB 2109's limitation of environmental liability for local taxing units foreclosing on properties with storage tanks. The definition "Temporary removal from service" is proposed to be amended by changing "kept" to "taken" and deleting the phrase "required to be" to provide clarification and improve readability. The definition "Tightness test (or tightness testing)" is proposed to be amended by deleting "the ability of", "contain the stored substance, to prevent any", and ", and to prevent the intrusion of groundwater into a tank or piping system"; and by adding "determine whether the system(s) is capable of preventing the" to simplify and clarify the definition and improve readability. The existing definition, "TNRCC," is proposed to be to be deleted as unnecessary. The existing definition, "TWC," is proposed to be deleted as an outdated term because the Texas Water Commission was merged into the Texas Natural Resource Conservation Commission in 1993. The definition "UL" is proposed to be amended by adding descriptive language about what the organization is, to provide clarification and improve readability. The definition "Underground storage tank system" is proposed to be amended by specifying "underground" with reference to piping and ancillary equipment to improve clarity.

Section 334.3, Statutory Exemptions, is proposed to be amended. The title of the section is proposed to be amended to delete the term "Statutory" as unnecessary and to add "for Underground Storage Tanks (USTs) and UST Systems" after the word "Exemptions" to provide specificity and clarification. Section 334.3(a) is proposed to be amended to remove an unnecessary statutory reference. Section 334.3(a)(8) is proposed to be amended to add the descriptive term "Title" to the reference to federal regulations. Section 334.3(b) is proposed to be amended to delete the word "shall" to improve readability. Section 334.3(c) is proposed to be added to make explicit that the agency may ask a tank owner and tank operator to verify claimed exempt status.

Section 334.4, Commission Exclusions, is proposed to be amended. The title of the section is proposed to be amended to delete the term "Commission" as unnecessary and to add the phrase "for Underground Storage Tanks (USTs) and UST Systems" after the word "Exclusions" to provide specificity and clarification. Section 334.4(a) is proposed to be amended to delete "Statutory" and add "for Underground Storage Tanks (USTs) and UST Systems" to reflect the new title of the referenced section, and to remove "by commission directive" as unnecessary language. Section 334.4(a)(4) is proposed to be amended to delete "however" and replace "shall" with "must" to improve readability. Section 334.4(a)(5) is proposed to be amended to replace "contain" with "during their entire operational life have exclusively contained only" to more specifically address historical as well as present use of the UST system and to address the possibility of previous release of regulated substance. Section 334.4(b) is proposed to be amended to reflect the new location of, and to provide a reference to, PST financial assurance rules; to properly replace "chapter" with "title" in that reference; and to add "for Underground Storage Tanks (USTs) and UST Systems" to reflect the new title of §334.8. Section 334.4(c) is proposed to be amended to remove the word "shall" to improve readability. Section 334.4(d) is proposed to be added to make explicit that the agency may ask a tank owner and tank operator to verify claimed excluded status.

Section 334.5, General Prohibitions, is proposed to be amended. The title of the section is proposed to be amended to add "for Underground Storage Tanks (USTs) and UST Systems" to provide clarification. Section 334.5(a) is proposed to be amended by adding the term "prohibitions" and replacing "shall" with "may" to provide clarification and improve readability. Section 334.5(a)(1) is proposed to be amended to replace "shall" with "must" to improve readability. Section 334.5(a)(2) is proposed to be amended to replace "shall" with "must" in two places and to replace "shall prevent" with "prevents" to improve readability. Section 334.5(a)(3) is proposed to be amended to replace "shall" with "must" to improve readability. Section 334.5(b) is proposed to be amended by adding the term "prohibitions" to provide clarification. Sections 334.5(b)(1) and (2) are proposed to be deleted and replaced with new language in §334.5(b)(1)-(5) to reflect requirements imposed by HB 2815. Existing PST rules contain a delivery prohibition tied to tank registration. HB 2815 charges the agency to adopt rules creating a delivery prohibition tied to a new compliance self-certification requirement for owners and operators. These proposed rules combine the existing delivery prohibition with the new statutorily required one. The agency has created a new form that will serve for both tank registration and compliance self-certification purposes. Proper completion of the form will lead to TNRCC issuance of a delivery certificate. That certificate will act as documentation that the owner or operator has properly registered his USTs, and has made the proper compliance self-certification for those USTs. Prior to delivery, a common carrier is charged with seeing a valid, current delivery certificate (or temporary delivery authorization, for new or replacement UST systems). The new rules give a phase-in schedule for the delivery prohibition with regard to USTs that store regulated substances that are not motor fuels. Sections 334.5(c) and (d) are proposed to be deleted as redundant to §334.6 and §334.7, respectively, of this subchapter.

Section 334.6, Construction Notification, is proposed to be amended. The title of the section is proposed to be amended to add "for Underground Storage Tanks (USTs) and UST Systems" to provide clarification. Section 334.6(a)(1) is proposed to be amended to change "shall" to "must" to improve readability. Section 334.6(a)(2) is proposed to be amended to change the phrase "the effective date of this subchapter" to "September 29, 1989" to maintain the meaning of the rule, and to change "shall" to "must" to improve readability. Section 334.6(a)(3) is proposed to be amended to change "shall" to "must" to improve readability, to change "executive director" to "agency", and to correct the chapter number of the referenced Edwards Aquifer rule from "313" to "213." Section 334.6(a)(4) and (5) is proposed to be amended to change "shall" to "must" to improve readability. Section 334.6(a)(6) is proposed to be amended to change "commission's" to "agency's" in two places and to change "a commission" to "an agency", to change "district' to "regional" to reflect current agency terminology, and to change "shall" to "must" to improve readability. Section 334.6(a)(7) is proposed to be amended to change "shall" to "must" and "shall be" to "are" to improve readability, and to modify an existing phrase regarding contractors and consultants to include them as possible examples of an authorized agent of an owner or operator. Section 334.6(b)(1)(A) is proposed to be amended to change "shall include" to "includes" to provide clarification and to improve readability. Section 334.6(b)(1)(B) is proposed to be amended to change "shall" to "are" and delete "be" to improve readability. Section 334.6(b)(2) is proposed to be amended by deleting "person" and replacing it with "owner or operator" to provide clarification that the liability under this section is joint and several between owners and operators, to change "shall" to "must" to improve readability, and to change "executive director" to "agency." Section 334.6(b)(2)(A) is proposed to be amended to change "commission's" to "agency's." Section 334.6(b)(2)(B) is proposed to be amended by changing "executive director" to "agency", and by changing "must" to "shall" and "shall" to "is" to improve readability. Section 334.6(b)(2)(C) is proposed to be amended to change "shall" to "or operator must" to provide clarification pursuant to the change in language addressed in §334.6(b)(2), to change "commission's" to "agency's", to change "district" to "regional" to reflect current agency terminology, and to change "shall" to "must" to improve readability. Section 334.6(b)(3) is proposed to be amended by adding "or operator" in two places to reflect joint and several liability of owners and operators under this section, to change "shall" to "must" to improve readability, and to change "district" to "regional" to reflect current agency terminology. Section 334.6(b)(3)(A) is proposed to be amended by adding "or operator" to reflect the joint and several liability of owners and operators under this section, and to change "shall" to "must" to improve readability. Section 334.6(b)(3)(B) is proposed to be amended by adding "or operator" to reflect the joint and several liability of owners and operators under this section, to change "commission's" to "agency's", and to change "district" to "regional" to reflect current agency terminology. Section 334.6(b)(4) is proposed to be amended to change "shall be" to "is", "shall" to "must", "shall have" to "has" and "shall" to "will" to improve readability; to add "or operator" in two places to reflect the joint and several liability of owners and operators under this section; to change "commission's " to "agency's"; and to change "district" to "regional," "district manager" to "regional director," and "manager's" to "director's" to reflect current agency terminology. Section 334.6(b)(4)(A) is proposed to be amended by adding "or operator" to reflect the joint and several liability of owners and operators under this section. Section 334.6(b)(4)(B) is proposed to be amended to change "commission " to "agency." Section 334.6(b)(5) is proposed to be amended by changing "shall be" to "is", "shall" to "will," and "shall" to "must" to improve readability; and by adding "or operator" to reflect the joint and several liability of owners and operators under this section. Section 334.6(b)(6)(A) is proposed to be amended by changing "shall" to "must" to improve readability and by changing "commission's" to "agency's." Section 334.6(b)(6)(B) is proposed to be amended by changing "shall" to "must" in three places, by deleting the word "as" to improve readability, by deleting "as possible" to eliminate inappropriate ambiguity, and by adding ", the operator" and replacing "owner's designated representative" with "authorized representative of the owner or operator" to reflect the joint and several liability of owners and operators under this section and to provide more clarification with respect to authorized agents of owners and operators. Section 334.6(c)(1) is proposed to be amended by adding "or operator" to reflect the joint and several liability of owners and operators under this section. Section 334.6(c)(1)(A) is proposed to be amended by adding the term "or operator" as a clarification and to be consist with its addition to §334.6(c)(1); by changing "shall" to "must" in two places to improve readability; by changing "commission" to "agency" and "commission's" to "agency's"; and by changing "district" to "regional" to reflect current agency terminology. Section 334.6(c)(1)(B) is proposed to be amended by adding the term "or operator" in four places as a clarification to be consistent with its addition to subsection §334.6(c)(1); by changing "district manager" to "regional director" and "manager's" to "regional director's" to reflect current agency terminology; by changing "shall" to "must" to improve readability; and by changing "commission" to "agency" in two places. Section 334.6(c)(2)(A) is proposed to be amended by adding "or operator" to reflect the joint and several liability of owners and operators under this section. Section 334.6(c)(2)(D) is proposed to be amended by adding a cross reference to §334.2, for the definition of the term "Emergency generator." Section 334.6(c)(2)(E) is proposed to be amended by changing "executive director" to "agency."

Section 334.7, Registration, is proposed to be amended. The title of the section is proposed to be amended to add the term "for Underground Storage Tanks (USTs) and UST Systems" to provide clarification. Section 334.7(a)(1) is proposed to be amended by changing "shall" to "must" to improve readability; by changing "commission" to "agency" in two places; and by adding a phrase which includes the cross reference "in accordance with subsection (e) of this section" to provide clarification. Section 334.7(a)(1)(A) is proposed to be amended to delete "Statutory" and add "for Underground Storage Tanks (USTs) and UST Systems" to reflect the proposed new title of the section referenced in this subparagraph. Section 334.7(a)(1)(B) is proposed to be amended to delete "Commission" and add "for Underground Storage Tanks (USTs) and UST Systems" to reflect the proposed new title of the section referenced in this subparagraph. Section 334.7(a)(1)(C) is proposed to be amended to by changing "commission" to "agency"; and by changing "has submitted" to "or operator must submit" to reflect that the agency proposes that owners and operators be made jointly and severally liable for all requirements in the section. This will mirror the liability scheme of the remainder of Chapter 334 (except for tank fees). Section 334.7(a)(1)(E)(i) is proposed to be amended to add "and operator" to reflect the proposed change to joint and several liability for this section. Section 334.7(a)(2) is proposed to be amended by adding "and operator" to reflect the proposed change to joint and several liability for this section; by replacing "shall be" with "are" to improve readability; by adding "or operator" to reflect the proposed change to joint and several liability for this section; and by changing "shall be held" to "and operator remain" to reflect the proposed change to joint and several liability for this section and to improve readability. Section 334.7(a)(3) is proposed to be amended by changing "shall" to "are" and deleting "be" to improve readability; by adding "or operator" to reflect the proposed change to joint and several liability for this section; by adding "or timely" to provide clarification; and by replacing "shall" with "does" to improve readability. Section 334.7(b) is proposed to be amended to change "shall" to "must" to improve readability; and to change "commission" to "agency" in two places. Subsection (b) is also proposed to be amended by adding the sentence "Upon the effective date of this subsection, the obligation becomes joint and several with the tank operator as well" to reflect the proposed change to joint and several liability for this section. Section 334.7(c) is proposed to be amended to change "executive director" to "agency" and "commission" to "agency." Subsection (c) is also proposed to be amended by adding the sentence "Upon the effective date of this subsection, the obligation becomes joint and several with the tank operator as well" to reflect the proposed change to joint and several liability for this section. Section 334.7(d)(1) is proposed to be amended by adding the term "or operator" to reflect the proposed change to joint and several liability for this section; by changing "shall" to "must" in two places and "shall" to "are" in one place to improve readability; by changing "executive director" to "agency"; and by deleting "necessarily be" to provide clarity. Section 334.7(d)(1)(A) is proposed to be amended by changing "ownership" to "owner or operator" for clarification and to reflect the proposed change to joint and several liability for this section; by adding "authorized representative" for clarification; and by adding ", provided that:" at the end of the subparagraph to indicate applicable allowances and restrictions follow. Section 334.7(d)(1)(B) is proposed to be amended to replace "each" with "any" to improve readability; to delete "or" to improve readability; and to add two items to the list of examples of operational status, those being "change-in-service to provide for the storage of a substance other than a regulated substance, or change to exempt or excluded status" to better clarify options available under applicable rule. Section 334.7(d)(1)(C) is proposed to be amended to delete the reference to "change-in-service to provide for the storage of a substance other than a regulated substance" which is proposed to be moved to the list of examples in the §334.7(d)(1)(B) to provide clarification. Section 334.7(d)(1)(D) is proposed to be amended by adding "/or" to the word "and" to provide clarification and specify an either/or situation. Section 334.7(d)(1)(J) is proposed to be amended by replacing "responsibility" with "assurance" to provide clarification; and by adding a reference to reflect the new location of PST financial assurance rules, specifically, Chapter 37, new Subchapter I. Section 334.7(d)(2) is proposed to be amended by changing "shall" to "must" in two places to improve readability; by changing "commission registration" to "agency" to be consistent with proposed rule changes (see preamble comments for proposed changes to §334.5 of this subchapter), which make "commission registration form" outdated terminology; by changing the term "commission's" to "agency's"; and by deleting "registration" as unnecessary in the second sentence. Section 334.7(d)(3) is proposed to be amended by changing "shall" to "must" to improve readability and by changing "executive director" to "agency." Section 334.7(d)(4) is proposed to be added as a provision to facilitate the issuance of delivery certificates, as required by HB 2815 and as detailed in proposed changes to §334.8(c) of this subchapter. HB 2815 mandates that the agency create a compliance self-certification program that operates on a per-tank basis (as opposed to per-facility). A common carrier must be able to look at the delivery certificate and determine which tanks are covered at a given facility. For the agency to be able to issue delivery certificates which contain that level of detail, owners or operators must, at least once, fill out a new UST registration and self-certification form with sufficient information to identify (under a standardized numbering system) each tank at that facility. The agency will utilize the information from this one-time submittal to generate delivery certificates which are tank specific (as required under HB 2815). Subsection (e) is proposed to be amended to change its catch line to reflect proposed rule changes which make the term "registration form" an outdated term, as the agency has created a new form that will serve for both tank registration and compliance self-certification purposes. Section 334.7(e)(1) is proposed to be amended to change "tank" in two places and "tank owned" in one place to "UST" to provide clarification; to add "or operator" after "owner" to reflect the proposed change to joint and several liability for this section; to change "shall" to "must" to improve readability; to change "commission's" to "agency's"; to delete "registration" as an outdated term; and to add a sentence specifying that UST registration information must be provided on the appropriate agency form and providing a reference to the proposed new §334.7(e)(6). Section 334.7(e)(2) is proposed to be amended by changing "tank" to "UST" to provide clarification; by adding "portion of the" to provide clarification which reflects that the agency has created a new form that will serve for both tank registration and compliance self-certification purposes; by changing "shall" to "must" in three places to improve readability; by deleting "as" and "as possible" to eliminate inappropriate ambiguity; by adding "or the operator" to reflect the joint and several liability of owners and operators under this section; by changing "owner's designated" to "authorized", by adding "of the owner or operator" to provide more clarification with respect to authorized agents of owners and operators; and by changing "executive director" to "agency." Section 334.7(e)(3) is proposed to be amended by changing "tank" to "UST" in two places and "tanks" to "USTs" in one place to provide clarification; by adding "or operators" to reflect the joint and several liability of owners and operators under this section; by changing "shall" to "must" to improve readability; and by deleting "registration" as an outdated term. Section 334.7(e)(4) is proposed to be amended by changing "tank" to "UST" and "tanks" to "or operate USTs" to provide clarification; by adding "or operators" and "or operate USTs" to reflect the joint and several liability of owners and operators under this section; by changing "shall" to "must" to improve readability; by deleting the term "registration" as an outdated term; and by adding "where regulated USTs are located" to provide clarification. Section 334.7(e)(5) is proposed to be amended by changing "shall" to must to improve readability; by changing "should" to "must" to eliminate inappropriate ambiguity; and by deleting "registration" as an outdated term. Section 334.7(e)(6) is proposed to be added to reflect that tank registration requirements in this section, as well as the compliance self-certification requirements proposed in §334.8(c) of this subchapter, will be provided on a new combined form to minimize the paperwork burdens on owners and operators and on the agency so that delivery certificates are issued as quickly as possible. Section 334.7(e)(7) is proposed to be added to remind owners and operators of the need to refer to petroleum UST system financial assurance requirements, which are contained in Chapter 37, new Subchapter I. Section 334.7(f) is proposed to be amended by changing "tank" to "UST" to provide clarification; by changing "commission" to "agency" and "executive director" to "agency"; by adding the terms "and/or operator" and "or operator" to reflect the joint and several liability of owners and operators under this section; and by changing "shall" to "must" to improve readability. Section 334.7(g) is proposed to be deleted as redundant as this requirement is addressed in Subchapter H of this chapter.

Section 334.8, Certification, is proposed to be amended. The title of the section is proposed to be amended to add "for Underground Storage Tanks (USTs) and UST Systems" to provide clarification. Section 334.8(a) is proposed to be amended to delete "installation" and replace it with "UST construction activity" to provide clarification. Section 334.8(a)(1) (including subparagraphs A through C) is proposed to be deleted as language which is no longer necessary given new rules proposed in §334.8(c). Section 334.8(a)(2) is proposed to be amended by renumbering as paragraph (1); by adding "or on-site supervisor" as a clarifying change consistent with the terminology used in Subchapter I; by deletion of the phrase "After the effective date of this subchapter" and replacement with the actual calendar date "after September 29, 1989" to which the original language referred, for clarification and to preserve the original meaning of the paragraph; by changing "shall" to "must" to improve readability; and by deleting the sentence "The tank owner or operator shall be responsible for assuring that the installer has provided the certification required in this paragraph." to reflect that this rule requirement is only speaking to the installer. Section 334.8(a)(3) is proposed to be amended by deleting the word "replacement" and replacing it with the word "construction" to provide clarification; by changing the reference to "paragraphs (1) and (2) to "paragraph (1)" to reflect the proposed deletion of the original paragraph (1) and the renumbering of the original paragraph (2) to paragraph (1); by changing "shall" to "must" in two places to improve readability; by changing "commission's" to "agency's" and "commission" to "agency"; by changing "tank" to "UST" to provide clarification; by adding a phrase to clarify which agency form should be used and to provide a cross reference to §334.7(e), and by deleting "(relating to Registration)" in the reference to §334.7 because this title has already been given once in this section. Section 334.8(b) is proposed to be amended by deleting the word "responsibility" and replacing it with "assurance", and by adding "for USTs storing petroleum substance", to provide clarification and to conform with terminology used in Chapter 37, new Subchapter I, and by adding "Owners and operators of UST systems regulated under this section must comply with the requirements of subsection (c) of this section." to provide clarification and to provide a cross reference to subsection §334.8(c) of this section, which is the proposed location for compliance certification rules (which have a financial assurance certification component). Section 334.8(b)(1) is proposed to be amended by deleting the original language to reflect the proposed repeal of Subchapter E, Financial Responsibility, and the proposed creation of Chapter 37, new Subchapter I. Section 334.8(b)(2) current language, including §334.8(A) and (B), is proposed to be amended by deleting the original language in its entirety to reflect the proposed deletion of Subchapter E and the proposed creation of Chapter 37, new Subchapter I. Proposed new §334.8(c) is proposed to be titled "UST compliance self-certification requirements" and is proposed to be added to reflect requirements imposed by HB 2815, which mandated that TNRCC promulgate rules which establish a compliance self-certification scheme for the PST program. The new statutory language requires that owners and operators of USTs annually self-certify that each UST is in compliance with TNRCC "administrative requirements and technical standards." Upon making that certification for tanks at a facility, TNRCC will issue a delivery certificate covering those tanks at that location. The new legislation requires that common carriers not deliver regulated substances into USTs unless they first observe a valid, current certificate (see proposed language in §334.5). All of §334.8(c) is new language that is proposed to fulfill these legislative mandates. The subparagraphs deal with the applicability of the compliance self-certification program, outline the phase-in schedule for these requirements as to non-motor fuel USTs, detail how to make the self-certification (what forms to use, due dates, etc.) and who must make it, outline how and when delivery certificates will be issued to UST owners and operators, state which agency regulations are "administrative requirements and technical standards" in the new program, give requirements for owners/operators to make delivery certificates available to common carriers, describe how delivery certificate renewal works, detail how tanks should be numbered so that TNRCC can meet the requirements of HB 2815 that the new program be tank-specific, outline how the agency will accommodate new and replacement tank installations, and give the procedures for delivery certificate revocation. The TNRCC believes that these rules will create reasonable procedures that, when properly followed, will not interfere with the ability of owners and operators of compliant USTs to receive deliveries of regulated substances. It is not the goal of the TNRCC to use the compliance self-certification program to initiate more formal enforcement actions on minor violations of the rules concerning "administrative requirements and technical standards." Existing agency enforcement guidelines, which are available to the public, will be followed in these matters and under these guidelines, the agency uses its enforcement discretion to work with the violator to address the minor violation (as opposed to automatic referral for formal enforcement). The agency believes that a positive benefit of HB 2815 will be that it acts as an incentive for owners and operators to bring their facilities into compliance prior to any agency inspection, such that an enforcement action will be unnecessary. Proposed §334.8(c)(1) refers to "Applicability." Nothing in HB 2815 acts to invalidate existing TNRCC exemptions and exclusions, so they are cross-referenced here. Section 334.8(c)(1)(A)(iii) reflects the statutory provision which limits applicability of the self-certification requirement to situations where the regulated substance is delivered by a "common carrier." Proposed §334.8(c)(2) specifies a phase-in schedule for all regulated substance UST systems except those storing motor fuel. HB 2815, by its own terms, is applicable to regulated USTs containing "regulated substances" (a term that is defined in TWC, Subchapter I). However, the bill's sponsor has stated in writing that the legislative intent was to have the agency focus on USTs storing "motor fuels" (a term that is defined in this subchapter), which is a large subset of "regulated substances." With that in mind, TNRCC has decided to phase-in the self-certification requirements for USTs that do not contain motor fuels. This will allow the agency to focus its limited resources as intended by the legislature, while still complying with the new statutory language. These proposed rules outline how that phase-in will work. Proposed §334.8(c)(2)(B) highlights that owners and operators of tanks in the phase-in group must still do a very limited tank registration update, one time, as described in proposed §334.7(d)(4), which will implement a uniform tank labeling system across the State of Texas for use in the TNRCC PST database. Once this tank labeling information has been collected, the TNRCC will be able to issue delivery certificates for tanks in the phase-in group, when the time comes, without any delays that might interrupt product deliveries to those tanks. There is also a great general benefit to the agency when all tanks are labeled consistently and registered under a standard labeling scheme (which is then reflected in the agency database, which is used for a variety of purposes by central office and regional staff). Agency efficiency is improved, which allows more work to be done at current staffing levels. Proposed §334.8(c)(3) specifies conditions and limitations; these proposed rules contain general statements concerning the new compliance self-certification program. Section 334.8(c)(3)(A) simply underscores that the new rules do not relieve persons from other regulatory requirements elsewhere in agency rules. Section 334.8(c)(3)(B) states that a proper and timely submittal which shows a self-certification of compliance for a tank will result in agency issuance of a delivery certificate for that tank. Section 334.8(c)(3)(C) makes the important legal point that agency acceptance of a compliance self-certification from a UST owner or operator does not constitute any agreement by the agency that those rules in the certification have in fact been complied with, the agency maintains its traditional duty to investigate possible violations and to proceed with enforcement under TWC and Chapter 70, as allowed by law. Section 334.8(c)(3)(D) specifically states which agency rules are considered to be included in the statutory phrase "administrative requirements and technical standards." Proposed §334.8(c)(4) outlines the mechanics of making the compliance self-certification. To reduce paperwork burdens on owners/operators and agency staff, a new form has been developed that combines the existing tank registration form (used for many years under existing regulations in §334.7) and new language concerning compliance self-certification. This new form is called the "UST registration and self-certification form." The proposed rules require that the form be completely and accurately filled out, and submitted in a timely manner. Owners/operators may use one form to cover each of their facilities. The form must be received by the agency within 60 days of the effective date of these rules, except that provisions are made for tanks installed after that date. The rule also states that the compliance self-certification requirements create a joint and several liability on both the tank owner and the operator to reflect the legal effect of HB 2815. To insure that tanks do not exceed a year without being certified, a new certification must be submitted within 30 days of a change in tank ownership at a facility. Proposed §334.8(c)(5) addresses requirements related to a proposed UST delivery certificate. These proposed rules describe the delivery certificate that the agency will issue upon receipt of a properly completed, and timely submitted, UST registration and self-certification form. Proposed §334.8(c)(5)(A)(i) and (ii) state the HB 2815 requirement that owners/operators must make their delivery certificates available to common carriers prior to accepting deliveries into the tanks, and that delivery certificates must be made available to agency inspectors upon request. Section 334.8(c)(5)(A)(iii) is proposed so that inspectors from the TNRCC and the Texas Department of Agriculture can share information regarding compliance with state regulations, including whether a delivery certificate was posted at an investigated facility. Proposed §334.8(c)(5)(B) details how delivery certificate renewal will be handled by the agency. Each certificate will be tank specific, and will include on its face an expiration date. For the initial issuance of certificates under this new program, a schedule has been devised based on the TNRCC owner identification number (which each owner of a regulated UST in Texas already has, if he has registered his tanks as required by law). Under this schedule, no one will receive a certificate that is good for less than a year. Proposed §334.8(c)(5)(C) details a tank labeling system that will standardize how regulated USTs are identified in Texas. Aside from other benefits, this system is necessary for TNRCC to be able to make delivery certificates tank specific (HB 2815 creates a "per tank", not "per facility" scheme). A common carrier must be able to tell, by matching the delivery certificate to the tank labels at the facility itself, which tanks are covered by that certificate. Under the new legislation, that common carrier may only deliver to those tanks covered by the certificate (also, see preamble comments for proposed §334.7(d)(4) and proposed §334.8(c)(2)). Proposed §334.8(c)(5)(D) details how the agency will provide temporary delivery authorization for new or replacement UST installations. When the required construction notification form is sent to the agency stating the intent to make such an installation, a response letter will go out that will contain language that will function as "temporary delivery authorization" for the tank(s) in question, the owner/operator will show this letter to the common carrier, who will treat it like a regular delivery certificate except that it has a limited lifetime of 90 days from the date the first delivery of regulated substance is made into the tank. The proposed rules require the owner/operator to show the common carrier documentation of when that first delivery took place, so that he may calculate the validity period for the temporary delivery authorization. Proposed §334.8(c)(6) addresses delivery certificate revocation and specifies in detail how the agency may revoke a delivery certificate. The procedures are taken, to the extent practicable, from long-standing procedures in Subchapter I.

Section 334.9, Sellers Disclosure, is proposed to be amended by changing "shall" to "must" to improve readability; by changing "commission's" to "agency's"; by adding ", compliance self-certification," as an additional tank owner obligation as proposed in §334.8(c) to encompass the requirements of HB 2815; by adding "for Underground Storage Tanks (USTs) and UST Systems" to reflect the proposed new titles of §334.7 and §334.6 currently referenced in this section; and by adding a new reference to §334.8 for completeness. Section 334.9(1) is proposed to be amended by changing "shall" to "must" to improve readability and by changing "commission's" to "agency's." Section 334.9(2) is proposed to be amended to improve readability by changing "shall apply" to "applies" and by deleting "shall" and inserting "applies" in place of "apply." Section 334.9(3) is proposed to be amended by changing "shall" to "must" to improve readability. Section 334.9(4) is proposed to be amended by inserting a reference to §334.9(1) of this section to provide clarification; by changing Texas "Water" Commission to Texas "Natural Resource Conservation" Commission to reflect the current name of the agency; by adding ", compliance self-certification," as an additional tank owner obligation to encompass the requirements of HB 2815; and by changing "31" to "Title 30" to reflect recodification of the TAC.

Section 334.10, Reporting and Recordkeeping, is proposed to be amended. Section 334.10(a) is proposed to be amended by changing "shall" to "must" to improve readability. Section 334.10(a)(1) is proposed to be amended by adding "for Underground Storage Tanks (USTs) and UST Systems" to reflect the proposed new title of the section currently referenced in this paragraph. Section 334.10(a)(2) is proposed to be amended by changing "313" to "213" to reflect the recodification of the Edwards Aquifer chapter in the TAC and be deleting the title of §334.6 because it has already been given once in this section. Section 334.10(a)(3) is proposed to be amended by adding "for Underground Storage Tanks (USTs) and UST Systems" to reflect the proposed new title of the section currently referenced in this paragraph. Section 334.10(a)(4) is proposed to be amended by replacing "installations and" with "construction activities," to provide clarification; by deleting the word "responsibility" and replacing it with "assurance" to provide clarification and to conform to terminology used in Chapter 37, new Subchapter I, by adding "and compliance self-certification" to encompass the requirements of HB 2815, and by adding "for Underground Storage Tanks (USTs) and UST Systems" to reflect the proposed new title of the section currently referenced in this paragraph. Section 334.10(a)(6) is proposed to be amended by deleting "§334.54(d)(2)" and replacing it with "with §334.54" to encompass all alternatives available under rule. Section 334.10(a)(9)(D) is proposed to be amended by changing "characterization" to "assessment" to provide clarification and agreement with the terminology used in Subchapter D, Release Reporting and Corrective Action, and by deleting "Initial" and changing "Characterization" to "Assessment" to correct the title of the reference included in this subparagraph. Section 334.10(a)(9)(E) is proposed to be amended to add "non-aqueous phase liquid" in place on "free product" to use the preferred terminology and to delete "Free Product" and add "of Non-Aqueous Phase Liquids" to reflect the proposed new title of the referenced section, as in Subchapter D. Section 334.10(a)(9)(H) and (I) is proposed to be amended to delete the title of §334.81 because it has already been given once in this section. Section 334.10(a)(10) is proposed to be amended by deleting the word "responsibility" and replacing it with "assurance" to provide clarification and to conform to terminology used in Chapter 37, new Subchapter I, by adding a reference to Chapter 37, new Subchapter I to indicate the location of the notification and reports requirements and to provide clarification, and by deleting "including:" and replacing it with "; and" to provide clarification and improve readability. Section 334.10(a)(10)(A)-(E) is proposed to be deleted because these types of requirements are included in Chapter 37, new Subchapter I, and a cross reference to these rules is provided earlier in this paragraph. Section 334.10(a)(11) is proposed to be amended by deleting "executive director or commission" and replacing it with "agency." Section 334.10(b)(1)(A) is proposed to be amended by changing "shall be" to "are" to improve readability. Section 334.10(b)(1)(B) is proposed to be amended by changing "shall" to "must" in three places to improve readability; and by deleting "commission" and replacing it with "agency." Section 334.10(b)(1)(C) is proposed to be amended by adding a reference up front to proposed new §334.10(b)(1)(C)(v) to provide clarification and encompass the proposed new language. Section 334.10(b)(1)(C)(i) is proposed to be amended by changing "shall" to "must" to improve readability. Section 334.10(b)(1)(C)(ii) is proposed to be amended by changing "shall" to "must" to improve readability, and by deleting "commission" and replacing it with "agency." Section 334.10(b)(1)(C)(iii) is proposed to be amended by changing "shall" to "must" to improve readability; by deleting "executive director" and "commission's" and replacing them with "agency's central office" and "agency's," respectively; and by changing "district" to "regional" to reflect current agency terminology. Section 334.10(b)(1)(C)(iv) is proposed to be amended by changing "shall" to "must" to improve readability; by deletion of the phrase "30 days after the effective date of this chapter" and replacement with the actual calendar date "October 29, 1989" to which the original language referred, for clarification and to preserve the original meaning of the paragraph; and by adding a phrase at the end of the clause to provide clarification and a cross reference to §334.7(d). Section 334.10(b)(1)(C)(v) is proposed to be added to be consistent with the requirements of proposed §334.8(c). Section 334.10(b)(1)(D) is proposed to be amended by deleting the term "executive director" and replacing it with "agency." Section 334.10(b)(1)(D)(ii) is proposed to be amended by changing "shall" to "must" to improve readability. Section 334.10(b)(1)(D)(iii) is proposed to be amended by changing "shall" to "must" in two places to improve readability. Section 334.10(b)(2) is proposed to be amended by changing "shall" to "must" to improve readability. Section 334.10(b)(2)(A) is proposed to be amended by changing "shall" to "must" to improve readability. Section 334.10(b)(2)(A)(i) is proposed to be amended by changing "§337.7" to "§334.7" to correct a typographical error in the text. Section 334.10(b)(2)(A)(ii) is proposed to be amended by deleting the word "responsibility" and replacing it with "assurance" to provide clarification and to conform to terminology used in Chapter 37, new Subchapter I. Section 334.10(b)(2)(B) is proposed to be amended by changing "shall" to "must" to improve readability. Section 334.10(b)(2)(B)(i) is proposed to be amended by deleting "executive director's" and replacing it with "the agency's", and by deleting the title of §334.43 because it has already been cited once in this section. Section 334.10(b)(2)(B)(x) and (xi) is also proposed to be amended to delete referenced titles because they have already been given once in this section. Section 334.10(b)(2)(C) is proposed to be amended by changing "shall" to "must" to improve readability; by deleting "§334.105" and update it with "Chapter 37, Subchapter I" and by deleting the title of deleted §334.105 to refer readers to Chapter 37 for financial requirements rather than Chapter 334. Section 334.10(b)(2)(D) is proposed to be added to be consistent with the requirements of, and provide a cross reference to, proposed §334.8(c).

Section 334.11, Enforcement is proposed to be repealed in its entirety because the agency has consolidated all enforcement rules into Chapter 70, which followed statutory enforcement consolidation into a unified TWC, Chapter 7.

Section 334.12, Other General Provisions, is proposed to be amended. Section 334.12(a)(1) is proposed to be amended by changing "shall" to "does" to improve readability. Section 334.12(b)(1) is proposed to be amended by deleting the first sentence, which begins with "Except as otherwise provided", as an unnecessary and redundant provision; and by deleting "aboveground storage tank to be principally in charge of any activities or procedures required under this chapter" to remove legally inappropriate language, given the liability scheme of Chapter 334 as whole. Section 334.12(b)(2) is proposed to be added and existing §334.12(b)(2) language deleted, to more exactly reflect the legal effect of TWC, §26.3513(m). Section 334.12(b)(2) is proposed to be amended by renumbering as (3); by adding new language pursuant to HB 2109, specifically "The liability of certain taxing units as owners or operators of USTs and ASTs is conditionally and specifically limited, in accordance with the provisions and conditions of TWC, §26.3516 (relating to Limits on Liability of Taxing Units).." Section 334.12(b)(3) is proposed to be amended by renumbering to (4) and to be clarified by adding a direct reference to statute and deleting the existing reference to §334.15. Section 334.12(b)(4) is proposed to be amended by renumbering to (5) and to be clarified by adding a direct reference to statute and deleting the existing reference to §334.16. Section 334.12(c)(1) is proposed to be amended by deleting "commission or the executive director" and replacing it with "agency" and by changing "shall" to "must" to improve readability. Section 334.12(c)(1)(B) is proposed to be amended by changing "commission" to "agency." Section 334.12(c)(2) is proposed to be amended by changing "commission, its" to "agency's." Section 334.12(c)(3) is proposed to be amended by changing "commission" to "agency." Section 334.12(c)(4) is proposed to be deleted in its entirety as unnecessary and redundant because it is duplicative of language in TWC, Chapter 26, Subchapter I.

Section 334.15, Limits on Liability of Lender, is proposed to be amended. Section 334.15(c)(1) is proposed to be amended by adding the word "permanently" in two locations to provide clarification.

Section 334.17, Privatization of Storage Tank Program, is proposed to be amended by changing "shall" to "will" to improve readability.

Proposed new §334.18, Limits on Liability of Taxing Unit, is proposed to be added to implement the requirements of HB 2109. Proposed rule language tracks statutory language.

Subchapter B, Underground Storage Tank Fees

Section 334.21, Fee Assessment, is proposed to be amended. Section §334.21(b) and (c) is proposed to change "executive director" to "agency." Section §334.21(d) is proposed to be amended to change "commission" to "agency."

Section 334.22, Failure to Make Payment, is proposed to be amended to change "executive director" to "agency."

Section 334.23, Disposition of Fees, Interest, and Penalties, is proposed to be amended to change "executive director" to "agency."

Subchapter C, Technical Standards

Section 334.41, Applicability, is proposed to be amended. Section 334.41(b)(2) is proposed to be amended to delete "Commission" and add "for Underground Storage Tanks (USTs) and UST Systems" in the title of the cross reference to §334.4(b) to reflect the new proposed title. Section 334.41(c) is proposed to be amended to add "for Underground Storage Tanks (USTs) and UST Systems" in the title of the cross reference to §334.5(a) to reflect the new proposed title. Section 334.41(d) is proposed to be amended to replace "the effective date of this subchapter" with the actual effective date "September 29, 1989" to maintain the intended date.

Section 334.42, General Standards, is proposed to be amended. Section 334.42(a) is proposed to be amended to delete "for as long as the underground storage tank system is used to store regulated substances" to provide clarification that the requirements apply to regulated UST systems regardless of whether regulated substances are currently being stored. Section 334.42(b) is proposed to be amended to replace the phrase "are used to contain or store" with "contain, have contained, or will contain" to add clarification and to improve readability. Section 334.42(c) is proposed to be amended to delete the reference to §334.11 and to add a reference to Chapter 70 because the agency has consolidated all enforcement rules into Chapter 70. Section 334.42(f) is proposed to be amended to add "otherwise stated in" and to delete "or alternative procedure is" to provide clarification; and to change "executive director" to "agency."

Section 334.43, Variances and Alternative Procedures, is proposed to be amended. Section 334.43(a) is proposed to be amended by replacing "initiating" with "proceeding in", by replacing "activity or procedure" with "manner", by replacing "which is at variance with or which is not specifically authorized under" with "that differs from," and by inserting "the requirements of" to clarify the rule requirement. Section 334.43(a) is also proposed to be amended by changing "commission" to "written agency" to further clarify the rule requirement. Section 334.43(a) is also proposed to be amended by replacing the word "of" with the word "in", by adding "form of a", and deleting the phrase "or alternative procedure" to clarify that a "variance" is the written approval of a request to be allowed to implement an "alternative procedure" and/or piece of equipment rather than follow the specific requirement found in this subchapter. Section 334.43(b) is proposed to be amended to change "executive director" in two places to "agency", to delete "and alternative procedures as relate to" to clarify that a "variance" is the written approval itself, and to replace "the provisions of" with "from the requirements in", and to change the word "shall" to "will" to improve readability. Section 334.43(b) is also proposed to be amended by deleting "reasonably" to remove an unacceptably vague qualifier, and to insert "to appropriate agency staff" to emphasize the point that technical PST program staff must be satisfied that the standard will be met before a variance can be granted. Section 334.43(b) is also proposed to be amended by deleting "variance or", and by inserting "and/or equipment" to clarify that a "variance" is the agency approval of an alternative procedure and/or equipment. Section 334.43(b) is also proposed to be amended by replacing "a system meeting" with "the requirement(s) for which", and by replacing "requirements of this subchapter" with "variance is sought" to clarify the rule requirements and improve readability. Section 334.43(c) is proposed to be amended to delete "approval of" and "or alternate procedure" to help clarify that a variance is the written approval of a request for an alternate procedure and/or equipment. Section 334.43(c)(1) is proposed to be amended by adding "a requirement in" and deleting "the requirements of" to improve readability. Section 334.43(c)(1) is also proposed to be amended by deleting "either" and "or not reasonable" to remove unacceptably vague language, and to delete the parenthetical "(e.g. bulk storage tanks, field-constructed tanks, and airport hydrant fuel distribution systems)" to avoid the impression that a variance would always be issued for such situations. Section 334.43(d) is proposed to be amended to change "executive director" to "agency", and to delete "or alternative procedure" to help clarify that a "variance" is the agency approval of an alternative procedure and/or equipment. Section 334.43(d)(2)(C) is proposed to be amended by adding "/operator's" to "owner's" to better reflect that this rule section applies to operators as well as owners, by making "representatives" singular to clarify the rule requirement, and by deleting the parenthetical "(e.g., operator, contractor, or consultant)" to better reflect that this rule section applies to operators as well as owners. Section 334.43(d)(2)(D) is proposed to be amended by replacing "variance or" with "the", and adding "and/or equipment", to clarify that a "variance" is the agency approval of an alternative procedure and/or equipment. Section 334.43(d)(3) is proposed to be amended by replacing "planning materials" with "documentation" to clarify the rule requirement, and by deleting "variance or", and adding "and/or equipment", to clarify that a "variance" is the agency approval of an alternative procedure and/or equipment. Section 334.43(d)(4) is proposed to be amended by deleting "sufficient", adding "which demonstrates," and "the satisfaction of agency staff, ", and by deleting the word "justify" to emphasize the point that technical PST program staff must be satisfied that they have been given sufficient supporting documentation to allow them to evaluate whether the standard will be met. Section 334.43(d)(4) is also proposed to be amended by adding "and appropriateness" to clarify that the reliability of the proposed alternative procedure and/or equipment is not the only factor in determining whether a variance will be granted, and by deleting "variance or" and adding "and/or equipment" to clarify that a "variance" is the agency approval of an alternative procedure and/or equipment. Section 334.43(d)(4)(B) is proposed to be amended to add "and/" to clarify the range of requests for a variance that the agency may receive. Section 334.43(d)(5) is proposed to be amended by deleting "variance or," by adding "and/or equipment", and by replacing "is" with "are" to clarify that a "variance" is the agency approval of an alternative procedure and/or equipment. Section 334.43(d)(5) is also proposed to be amended by inserting "requirement for which the variance is sought" in place of "methods or procedures specified in this subchapter", by inserting "that requirement" in place of "the methods or procedures specified in this subchapter", and by inserting "is" in place of "are" to improve rule clarity and readability. Section 334.43(d)(5) is also proposed to be amended by deleting "unreasonable or" to remove unacceptably vague language. Section 334.43(d)(6) is proposed to be amended by deleting "adequate," and by adding "that demonstrates, to the satisfaction of agency staff," to emphasize the point that technical PST program staff must be satisfied that they have been given sufficient supporting documentation to allow them to evaluate whether the standard will be met. Section 334.43(d)(6) is also proposed to be amended to delete "to reasonably demonstrate" as unacceptably vague, and to insert "use of" to improve readability. Section 334.43(d)(6) is also proposed to be amended to delete "variance or," and add the phrase "and/or equipment", to clarify that a "variance" is the agency approval of an alternative procedure and/or equipment. Section 334.43(d)(6) is also proposed to be amended by inserting "be," by deleting "result in an underground storage tank system that is", by inserting "adhering to," by deleting "a system meeting", by replacing "requirements" with "requirement(s)" to make singular, by inserting "for which the variance is sought", and deleting "of this subchapter", to improve clarity and readability. Section 334.43(e) is proposed to be amended to add "If a variance is granted by the agency, the owner or operator", to delete "Owners and operators", to replace "records" with "copies", and to replace "any requests for approval of any variances or alternative procedures, and documentation of the executive director's approval of such requests, for the operational life of the UST system", with "the variance and supporting documentation (including the request for approval)" to clarify that this recordkeeping requirement is only applicable if a variance is granted by the agency, as well as to clarify that the owner and the operator do not have to both keep these records. Section 334.43(f) is proposed to be added to emphasize the point that the requirement at issue in this subchapter must be followed until such time as a variance has been granted which provides for alternative procedures and/or equipment. Section 334.43(g) is proposed to be added to emphasize that, once a variance is granted, the owner/operator must follow either the terms of that variance or the terms of the requirement for which the variance was sought.

Section 334.44, Implementation Schedules, is proposed to be amended. Section 334.44(a)(1) is proposed to be amended to replace "are used to store" with "contain, have contained, or will contain" to clarify that there are agency regulations which apply from the construction phase through the time an UST system is taken permanently out of service. Section 334.44(b)(1) is proposed to be amended to replace "are used to store" with "contain or have contained" to clarify that there are agency regulations which apply from the construction phase through the time an UST system is taken permanently out of service. This new language does not expand the rules being referenced by the implementation schedules in this section.

Section 334.45, Technical Standards for New Underground Storage Tank Systems, is proposed to be amended. Section 334.45(b)(1)(A) is proposed to be amended to delete "one or more of the following standards" because existing clause (i) is proposed to be incorporated into subparagraph (A), changed to reflect the new title of that standard, and clause (ii) is proposed to be deleted as it is an obsolete standard which has not been replaced. Section 334.45(b)(1)(B)(i) and (ii) is proposed to be amended to add language to reflect the current names of the referenced standards. Section 334.45(b)(1)(C)(i) and (ii) is proposed to be amended to reflect the current names of the referenced standards. Section 334.45(b)(1)(D) is proposed to be amended to add "or as a steel tank with a bonded fiberglass reinforced polyurethane coating" to reflect new available technology and to replace a period with a colon at the end. Section 334.45(b)(1)(D)(i) is proposed to be amended to add "fiberglass-reinforced plastic or fiberglass reinforced polyurethane" to reflect new available technology, and to replace a period with a semicolon at the end of the clause. Section 334.45(b)(1)(D)(ii) is proposed to be amended to delete "applicable" to eliminate ambiguity, and to replace a period with a semicolon at the end. Section 334.45(b)(1)(D)(iii)(I) and (II) is proposed to be amended to reflect the current titles of the referenced standards. Section 334.45(b)(1)(D)(iii)(III) is proposed to be amended by adding ", or STI, or Underwriters' Laboratories of Canada (ULC) standard which incorporates the requirements contained in the standards listed in either subclause (I) or (II) of this clause; and" to allow the use of comparable standards from other specified standard making organizations, and by deleting "standard applicable to composite underground storage tanks" because it is unnecessary language. Section 334.45(b)(1)(D)(iv) is proposed to be amended to add "utilized in accordance with applicable industry standards" to add clarification and eliminate ambiguity. Section §334.45(b)(1)(E) and (F) is proposed to be added to reflect new available technology and provide corresponding requirements and standards. The existing §334.45(b)(1)(E) is proposed to be renumbered as §334.45(b)(1)(G) and to be amended by changing "executive director" to "agency." Section 334.45(c)(1)(A)(i) and (ii) is proposed to be amended to reflect the current titles of the referenced standards. Section 334.45(c)(1)(B)(iv) is proposed to be amended to reflect the current name of the standard and its current title. Section 334.45(c)(1)(C) is proposed to be added to reflect available technology and provide corresponding requirements and standards. The existing §334.45(c)(1)(C) is proposed to be renumbered as §334.45(c)(1)(D) and to be amended by changing "executive director" to "agency." Section 334.45(c)(3)(A) is proposed to be amended to provide clarification and eliminate ambiguity by changing the parenthetical "(or approved equivalent)" to specify allowable alternative listing organizations which the agency will accept. Section 334.45(c)(3)(B) is proposed to be amended to provide clarification and eliminate ambiguity by changing the parenthetical "(or approved equivalent)" to specify allowable alternative listing organizations which the agency will accept; and to add terminology applicable to inherently flexible piping to reflect the current applicable industry standard. Section 334.45(c)(3)(C) is proposed to be amended to delete "a cathodic protection system" and replace it with "corrosion protection" to provide clarity, and to delete the reference to §334.49(c) and replace it with a reference to §334.49 to allow the application of all applicable methods of corrosion protection within the section. A new subsection §334.45(c)(3)(D) is proposed to be added to ensure compliance with the requirements of applicable listings provided by acceptable listing organizations. Section 334.45(d)(1)(B) is proposed to be amended by changing "313" to "213" to reflect the recodification of this chapter in the TAC. Section 334.45(d)(1)(C) is proposed to be amended by changing the phrase "commission or the executive director" to "agency." Section 334.45(d)(3)(A)(iii)(I) is proposed to be amended to reflect the current title of the referenced UL Standard 1316 and to delete the reference to ASTM Standard D 4021, an obsolete standard which has not been replaced. Section 334.45(d)(3)(A)(iii)(II) is proposed to be amended to reflect the current title of the referenced standard. Section 334.45(d)(3)(A)(iii)(III) is proposed to be amended by changing "naturally" to "nationally" to correct a previous error, and by changing "executive director" to "agency."

Section 334.46, Installation Standards for New Underground Storage Tank Systems, is proposed to be amended. Section 334.46(a)(1)(D) is proposed to be amended to change "executive director" to "agency." Section 334.46(b) is proposed to be amended to change "executive director" to "agency." Section 334.46(d)(4)(B) is proposed to be deleted to as an unnecessary requirement because it is no longer considered technically necessary to perform this test to be protective. The subsequent §334.46(d)(4)(C) is proposed to be renumbered to §334.46(d)(4)(B) and amended to add the word "underground" for clarification. Section 334.46(g)(2) is proposed to be amended to update the rule and statutory references relating to water well drillers and to start a new sentence after these changes by capitalizing the word "Any" to improve readability. Section 334.46(g)(3)(A) is proposed to be amended to update the rule and statutory references relating to Water Well Drillers and to start a new sentence after these changes by capitalizing the word "Any" to improve readability. Section 334.46(g)(3)(B)(iv) is proposed to be amended to update the reference relating to the Water Well Drillers rule. Section 334.46(h)(1)(A)(iv) is proposed to be amended to change "executive director" to "agency." Section 334.46(h)(1)(B) is proposed to be amended to change "commission" to "agency." Section 334.46(h)(2) is proposed to be amended to delete "owner and the" as unnecessary due to compliance self-certification requirements imposed on owners by HB 2815; to change "commission's" to "agency's"; to delete the term "tank registration" to reflect proposed rule changes in Chapter 334, Subchapter A, which make the term "tank registration form" an outdated term because the agency has created a new form that will serve for both tank registration and compliance self-certification proposes; and to add the words "for Underground Storage Tanks (USTs) and UST Systems" to reflect the new proposed title of §334.8. Section 334.46(i)(2)(A)(iii) is proposed to be amended to change "commission" to "agency." Section 334.46(i)(2)(A)(iii)(I) is proposed to be amended to add "for Underground Storage Tanks (USTs) and UST Systems" to reflect the new proposed title of the referenced section.

Section 334.47, Technical Standards for Existing Underground Storage Tank Systems, is proposed to be amended. Section 334.47(b)(1)(A)(i) is proposed to be amended to include the proposed addition of a new leak detection method in a new paragraph of §334.50(d). Section 334.47(b)(1)(A)(ii) is proposed to be amended to improve clarity by adding a sentence at the end specifying what constitutes an appropriate integrity assessment for certain tanks. Section 334.47(b)(1)(A)(v) is proposed to be amended to change "executive director" to "agency." Section 334.47(d)(2)(A)(iii) is proposed to be amended to change "commission" to "agency." Section 334.47(d)(2)(A)(iii)(I) is proposed to be amended to add the words "for Underground Storage Tanks (USTs) and UST Systems" to reflect the newly proposed title of §334.7. Section 334.47(d)(2)(A)(iii)(II) is proposed to be amended to add "for Underground Storage Tanks (USTs) and UST Systems" to reflect the newly proposed title of §334.8. Section 334.47(d)(2)(B) is proposed to be amended to add "for Underground Storage Tanks (USTs) and UST Systems" to reflect the newly proposed title of §334.6.

Section 334.48, General Operating and Management Requirements, is proposed to be amended. Section 334.48(c) is proposed to be amended to insert " §334.50(d)(1)(B) of this title" in place of "a code or standard of practice developed by a nationally recognized association or independent testing laboratory" to have a specific requirement.

Section 334.49, Corrosion Protection, is proposed to be amended. Section 334.49(a)(1) and (2) is proposed to be amended to add "underground metal" to add clarification on which components require corrosion protection and to delete the last phrase "for as long as the underground storage tanks system is used to store regulated substances" to clarify that there are agency regulations regarding corrosion protection which apply from the time of installation through the time an UST system is taken permanently out of service. Section 334.49(a)(3) is proposed to be amended to change "executive director" to "agency." Section 334.49(a)(4) is proposed to be amended to add "metal" to clarify which components require corrosion protect, to delete "necessarily" as unnecessary language, and to add "and also to other underground metal components associated with an UST system, including but not limited to: " for greater clarity. Section 334.49(a)(5) is proposed to be amended to change "the effective date of this subchapter" to "September 29, 1989," to maintain the originally intended date. Section 334.49(a)(6) is proposed to be added to provide clarification it is the most recent version of a listed standard that must be met, and new §334.49(a)(7) is proposed to be added to provide a cross reference to requirements for placing a tank temporarily out of service. Section 334.49(b)(4) is proposed to be amended to add "or as a steel tank with a bonded fiberglass reinforced polyurethane coating, as a steel tank with a bonded polyurethane external coating, or as a steel tank completely contained within a nonmetallic external tank jacket" to list other acceptable factory-constructed tanks proposed to be added §334.45(b), to expand the §334.45(b)(1) references to include the additional acceptable factory-constructed tanks, and to add "(as applicable)" for greater clarity. Section 334.49(b)(7) is proposed to be added to provide an additional allowable alternative to other rule requirements for corrosion protection or the upgrading of an existing corrosion protection system. Section 334.49(d)(1)(A)(iii) is proposed to be amended to change "executive director" to "agency." Section 334.49(d)(2) is proposed to be amended to delete the first "or" to add more options to the series, to add "a steel tank with a bonded fiberglass reinforced polyurethane coating, or a steel tank with a bonded polyurethane coating" to reflect proposed dual-protected tank additions in §334.45(b), to add another subparagraph to the §334.45(b)(1) reference that contains the proposed tank additions, to add "as applicable" after the reference for greater clarity, and to make "systems" plural because more than one cathodic protection system can be installed in a tank.

Section 334.50, Release Detection, is proposed to be amended. Section 334.50(a)(1)(A) is proposed to be amended to add "underground" for greater clarity and to be more specific. Section 334.50(a)(1)(B) is proposed to be amended by deleting "and" to add to the series; and by adding", utilized and interpreted (as applicable)," "and/or methodology provider's," and "consistent with the other requirements of this section" for greater clarification. Section 334.50(a)(1)(C) is proposed to be amended by replacing "installer" with "methodology provider/vendor" to be more specific and by adding "as verified by third party evaluation conducted by a qualified independent testing organization, using applicable United States Environmental Protection Agency protocol," to assure better compliance. Section 334.50(a)(1)(C)(i) is proposed to be amended by adding "including the summary portion of the independent third party evaluation" by adding "by the owner and/or operator" to be more specific, and by adding ", or methodology provider," to clarify agency expectations with regard to performance claims. Section 334.50(a)(1)(C)(ii)(III) is proposed to be amended to remove "and" to add more subclauses to list. Section 334.50(a)(1)(C)(ii)(IV) is proposed to be amended to change its period to a semicolon for the same reason. Section 334.50(a)(1)(C)(ii)(V) is proposed to add an acceptable new technology on electronic leak monitoring systems for piping; and new §334.50(a)(1)(C)(ii)(VI) is proposed to add a new method of statistical inventory reconciliation. Section 334.50(a)(5) is proposed to be amended to add "for Underground Storage Tanks and UST Systems" in three places for consistency with the new proposed titles of §§334.6, 334.7, and 334.8. Section 334.50(a)(6) is proposed to be amended to add a cross reference to §334.42(d). Section 334.50(a)(7) is proposed to be added to provide a cross reference to §334.54(c). Section 334.50(b)(1)(A) is proposed to be amended to replace "for releases" with "in a manner which will detect a release" to be more specific about the manner of monitoring and to add §334.50(d)(10) to include a proposed new leak detection method. Section 334.50(b)(1)(C) is proposed to be amended to change the nominal capacity of "550" gallons to "1,000" gallons to be consistent with a protocol established by EPA and which has been allowed by this agency in the variance process. Section 334.50(b)(2) is proposed to be amended to replace "designed to" with "which will" to be more specific and to delete "and" because it is unnecessary. Section 334.50(b)(2)(A)(i)(I) is proposed to be amended to replace "which equals or exceeds" with "of" to provide clarification and to improve readability. Section 334.50(b)(2)(A)(i)(II) is proposed to be amended to insert the word "or" between the two remaining alternatives because of proposed deletion of the third alternative, and to delete "or by emitting or triggering audible and visible alarms" because over time the agency has concluded that this alternative is often ineffective because it relies on human action rather than automatic mechanical processes. Under this proposal, owners/operators can voluntarily use an alarm in conjunction with either of the remaining options listed in the rule, but may not use it alone. Section 334.50(b)(2)(A)(ii)(I) is proposed to be amended to delete "which equals or exceeds a rate" to improve readability. Section 334.50(b)(2)(A)(ii)(II) is proposed to be amended to include the proposed new leak detection method in §334.50(d)(10). Section 334.50(b)(2)(A)(ii)(III) is proposed to be added to reflect a new acceptable electronic leak monitoring technology. Section 334.50(b)(2)(B)(i)(I) is proposed to be amended to replace "piping" with "positive or negative pressure" to be more specific on the tightness test, to add "applicable to underground product piping and" to assure that the test is applicable to underground product piping, to delete "which equals or exceeds a rate" for better readability; to replace "gallon" with "gallons" to be consistent with commonly used terminology; and to delete "when the piping pressure is at 150% of normal operating pressure" to be consistent with the previous change that allows a positive or negative pressure tightness test. Section 334.50(b)(2)(B)(i)(II) is proposed to be amended to include the new leak detection method proposed at §334.50(d)(10). Section 334.50(b)(2)(B)(ii)(II) is proposed to be amended by adding "all" to clarify the requirement. Section 334.50(b)(2)(B)(ii)(IV) is proposed to be amended by adding "aboveground," to be more specific about the location of the check valve. Section 334.50(b)(2)(B)(ii)(V) is proposed to be amended by deleting "A method is incorporated into the system design that will allow" and by adding language that specifies acceptable methods of verifying subclauses (I)-(IV) for greater clarity. Section 334.50(c)(3)(B) is proposed to be amended to include a new leak detection method proposed in §334.50(d)(10). Section 334.50(d) is proposed to be amended by replacing "(1)-(9)" with "(2)-(10)" to include the new leak detection method proposed in §334.50(d)(10) of this subsection and to clarify that the option §334.50(d)(1) of this section is no longer an allowable method of release detection and to replace "(5)-(9)" with "(5)-(10)" to include the new leak detection method proposed in paragraph 10 of this subsection. Section 334.50(d)(1)(A)(iii) is proposed to be amended to delete "which equals or exceeds a rate" and to replace "gallon" with "gallons" to improve readability. Section 334.50(d)(1)(B)(ii) is proposed to be amended to replace "which equals or exceeds" with "as small as" to add clarity. Section 334.50(d)(1)(B)(iv) is proposed to be deleted as an alternative which is no longer applicable, due to proposed changes in allowable manual tank gauging procedures in §334.50(d)(2) and due to the existing rule requirement at §334.50(d)(1) disallowing the use of a combination of tank tightness testing and inventory control as a method of release detection after December 22, 1998. Section 334.50(d)(2)(A) is proposed to be amended to change nominal capacity of "550" gallons to "1,000" gallons to be consistent with a protocol established by EPA and with variances which have been allowed by this agency in the variance process. Section 334.50(d)(2)(B) is proposed to be deleted to reflect the existing rule requirement at §334.50(d)(1) disallowing the use of a combination of tank tightness testing and inventory control as a method of release detection after December 22, 1998. Section 334.50(d)(2)(C) is proposed to be renumbered to §334.50(d)(2)(B) due to the previous deletion and to be amended to change the nominal capacity of "2,000" gallons to "1,000" gallons to be consistent with a protocol established by EPA and which has been allowed by this agency in the variance process. Section 334.50(d)(2)(D) is proposed to be renumbered to §334.50(d)(2)(C) due to the previous deletion. Section 334.50(d)(2)(C)(i)(II) is proposed to be amended by deleting the phrase "of at least 36 hours" and by adding the following clarifying language: "The duration of the gauging period is dependant upon tank volume and diameter, as specified in clause (v) of this subsection." Section 334.50(d)(2)(C)(v)(I)-(III) is proposed to be amended to add the minimum gaging period durations for various tank diameters and volumes reflected in a protocol established by EPA and which has been allowed by this agency in the variance process. Section 334.50(d)(4)(A)(ii)(II) and (B)(iii) is proposed to be amended by deleting "which equals or exceeds a rate" to improve readability. Section 334.50(d)(6)(D) is proposed to be added to include a requirement that background contamination should not interfere with monitoring for a release from an UST system into groundwater (a similar requirement exists in §334.50(d)(5)(D) of this section, regarding vapor monitoring). Section 334.50(d)(9) is proposed to be added to include a new leak detection technology allowed by this agency. Existing §334.50(d)(9) is proposed to be renumbered to §334.50(d)(10) due to the previous addition and to be amended to change "executive director" to "agency." Section 334.50(e)(2)(B) is proposed to be amended by adding ", verified," to include another method of confirming a claim and by replacing "or installer" with ", methodology provider/vendor or independent third party evaluator" for greater clarity.

Section 334.51, Spill and Overfill Prevention and Control, is proposed to be amended. Section 334.51(a)(5) is proposed to be amended to add a cross reference to §334.42(d). Section 334.51(b)(4)(A)(ii) is proposed to be amended to change "executive director" to "agency." Section 334.51(b)(4)(A)(iii) is proposed to be amended to change "executive director" to "agency" and to delete "or unreasonable" as redundant to "impracticable."

Section 334.52, Underground Storage Tank System Repairs and Relining, is proposed to be amended. Section 334.52(b)(5)(C) is proposed to be amended to change "executive director" to "agency." Section 334.52(d)(2)(A)(iii) is proposed to be amended to change "commission" to "agency."

Section 334.54, Temporary Removal from Service, is proposed to be amended. Section 334.54(b) is proposed to be amended by deleting "Beginning no later than the date on which any UST system has been out of service for a continuous period of three months," and capitalizing "Regardless" at the beginning of the first sentence, to remove language which is no longer applicable. Section 334.54(b)(2) is proposed to be amended to add "tank access points (e.g., fill risers, automatic tank gauging risers, Stage I vapor recovery risers)" to provide clarification and to provide additional assurance that temporarily out of service tanks are properly secured. Section 334.54(c)(2) is proposed to be amended to change the referenced subsection for what constitutes an empty system from (e) (that is also proposed to be renumbered) to subsection (d). Section 334.54(c)(3) is proposed to be amended to delete outdated and unnecessary language, given the passage of the final deadline for all UST upgrades, and to specify procedures and requirements for returning "protected and empty" and "protected and monitored" UST systems to service. Section 334.54(d) is proposed to be deleted as outdated and unnecessary language, given the passage of the final deadline for all UST upgrades; and the remaining subsections are proposed to renumbered due to the deletion. Section 334.54(f)(2) is proposed to be amended to add "for Underground Storage Tanks (USTs) and UST Systems" to the title of reference §334.7 to reflect the newly proposed title; and paragraph (3) is proposed to be amended to change "commission's" to "agency's."

Section 334.55, Permanent Removal from Service, is proposed to be amended. Section 334.55(a)(1) is proposed to be amended to change "executive director" to "agency" and to add the words "for Underground Storage Tanks (USTs) and UST Systems" to the title of referenced §334.6 to reflect its newly proposed title. Section 334.55(a)(6)(A) is proposed to be amended to change "executive director" to "agency" and to add the words "for Underground Storage Tanks (USTs) and UST Systems" to the title of referenced §334.6 to be consistent with its newly proposed title. Section 334.55(6)(B)(i) is proposed to be amended to change "operating" to "operated" to improve the grammar and to add paragraph "(10)" to the reference to §334.50(d) to include the proposed addition of a new leak detection method. Section 334.55(6)(D)(i) and (ii) is proposed to be amended to change "executive director" to "agency"; and clause (ii) is also proposed to be amended to add "for Underground Storage Tanks (USTs) and UST Systems" to the title of referenced §334.7 to reflect the newly proposed title. Section 334.55(a)(9) is proposed to be amended to change "executive director" to "agency." Section 334.55(b)(2) is proposed to be amended to change "commission" to "agency." Section 334.55(c)(2)(A) is proposed to be amended to change "executive director" to "agency." Section 334.55(e)(1) is proposed to be amended to delete the word "comprehensive" to distinguish this requirement from the site assessment required under Chapter 334, Subchapter D. Section 334.55(e)(1)(B) is proposed to be deleted to reflect the proposed deletion of §334.54(d) and original subparagraphs (C) and (D) renumbered due to this deletion. Section 334.55(e)(1)(C) is also proposed to be amended to change "executive director" to "agency" and to delete the word "comprehensive" as an unnecessary term; and §334.55(e)(1)(D) is proposed to change "executive director or the commission" to "agency." Section 334.55(e)(2) is proposed to be amended by adding language requiring supervision of the site assessment by qualified licensed or registered personnel to fully inform the reader of this current requirement related to site assessments. Section 334.55(e)(5)(C) is proposed to be amended to change "executive director" to "agency." Section 334.55(e)(5)(D) is proposed to be added to assure that suspected or confirmed releases are properly reported, investigated and remediated, in accordance with the release reporting and corrective action requirements of Subchapter D.

Section 334.56, Exempt or Excluded Status, is proposed to be added to specify the procedures necessary to change a regulated UST system's status from "regulated" to "exempt" or "excluded." Existing regulations do not adequately provide procedures for owners/operators to follow in these situations.

Subchapter D, Release Reporting and Corrective Action:

The amendments in Subchapter D are to update its risk assessment terminology and to do "limited" regulatory reform amendments to streamline the rules and to improve clarity and readability.

Section 334.71, Applicability, is proposed to be amended to change a deadline year from 2001 to 2003 to conform with 30 TAC Chapter 350, Texas Risk Reduction Program, and to replace "Free Product Removal" with "Removal of Non-Aqueous Phase Liquids" to use a more standard risk assessment term.

Section 334.72, Reporting of Suspected Releases, is proposed to be amended. At the beginning of the section, "aboveground storage tank (AST) and" is proposed to be added to clarify that ASTs are also subject to this rule requirement; "Austin central office or the" and "regional" are proposed to replace deleted "district" and "or the Austin central office" to update this rule language and make it more readable; and "agency" is proposed to replace "commission." Section 334.72(1) is proposed to be amended to include "AST or" to clarify that aboveground storage tanks are also subject to this rule requirement and to replace "free product" with "non-aqueous phase liquids (NAPL)" to use more standard risk assessment terminology. Section 334.72(2) is proposed to be amended to replace "and" with "or" to clarify the rule requirement and to adhere to the statutory language in HB 2815's, amended TWC, §26.346, and to add "AST or UST" to show that this rule requirements is also applicable to regulated ASTs. Section 334.72(3)(A) is proposed to be amended to add "or the monitoring procedure is found to be ineffective, and is modified," to add additional methods of correcting monitoring equipment errors.

Section 334.73, Investigation Due to Off-Site Impacts, is proposed to be amended to replace "executive director" with "agency", to add "aboveground storage tank (AST) or underground storage tank (UST)" and "AST or" to clarify that regulated ASTs are also subject to these rule requirements, to replace "free product" with "Non-Aqueous Phase Liquids (NAPLs)" to use more standard risk assessment terminology, to replace "the commission" with "agency staff", and to replace "its" with "the agency's" for consistency with the previous change.

Section 334.74, Release Investigation and Confirmation Steps, is proposed to be amended. At the beginning of the section, "Initial Site Characterization" is proposed to be replaced with "Site Assessment" and "Free Product Removal" replaced with "Removal of Non-Aqueous Phase Liquids" to use more standard risk assessment terminology, "and" changed to "or" to clarify the rule requirement and adhere to the statutory wording in HB 2815's, amended TWC, §26.346, and "executive director" to be replaced with the term "agency." Section 334.74(1)(A) is proposed to be amended to insert "or" to accommodate the deletion of ", or upgrade" because the deadline for upgrades is past, to include "aboveground storage tank (AST) or underground storage tank (UST)" to clarify that regulated ASTs are also subject to this rule requirement. Section 334.74(2) is proposed to be amended to add "AST or" to indicate that regulated ASTs are also subject to this rule requirement. Section 334.74(2)(A) and (B) is proposed to be amended to replace "for the excavation zone" with "from an excavated area" to clarify the language and to add "or other area(s) of the AST" to clarify that this rule requirement also applies to regulated aboveground storage tanks. Section 334.74(3) is proposed to be amended to replace "executive director" with "agency."

Section 334.75, Reporting and Cleanup of Surface Spills and Overfills, is proposed to be amended. Section 334.75(a) is proposed to be amended to add "aboveground storage tanks (AST) and underground storage tank (UST)" to clarify that regulated ASTs are also subject to this rule requirement, to add "the spill or overfill" to improve the clarity of what is being reported, to replace "commission" with "agency", and to replace "Initial Site Characterization" with "Site Assessment"and to replace "Free Product Removal" with "Removal of Non-Aqueous Phase Liquids" to use more standard risk assessment terminology. Section 334.75(a)(1) is proposed to be amended to add "any" to help clarify that the requirements apply to any spill from a regulated UST or AST and to add "substance from an UST or any spill or overfill of petroleum product from an AST" to clarify that this rule requirement also applies to spills of petroleum product from ASTs; §334.75(a)(2) is proposed to be amended to add "any" to help clarify that the requirements apply to any spill from a regulated UST storing a hazardous substance and to add "from an UST" to indicate that only hazardous substance spills from an UST are regulated, and to add "the Comprehensive Environmental Response, Compensation, and Liability Act" to spell out the acronym "CERCLA." Section 334.75(b) is proposed to be amended to delete "of UST systems" to remove the indication that the requirement only applies to USTs and to add "substance from an UST or any petroleum product from an AST" to indicate that this requirement applies to both regulated USTs and ASTs, and to break the first sentence into two sentences and insert at the beginning of the new second sentence "Owners or operators of USTs must contain and immediately clean up" to clarify that the hazardous substance part of the requirement only applies to USTs, and to replace "executive director" with "agency."

Section 334.76, Initial Response to Releases, is proposed to be amended. At the beginning of the section, "aboveground storage tank (AST) or underground storage tank (UST)" is proposed to be added to clarify that ASTs are also subject to this rule requirement. Section 334.76(1) is proposed to be amended to replace "executive director" with "agency" and to insert term "completed" and "call, facsimile transmission" to clarify electronic reporting requirements. Section 334.76(2) is proposed to be amended to include "AST or" to clarify that ASTs are also subject to this rule requirement.

Section 334.77, Initial Abatement Measures and Site Check, is proposed to be amended. Section 334.77(a) is proposed to be amended to replace "executive director" with "agency." Section 334.77(a)(1) is proposed to be amended to include "aboveground storage tank (AST) or underground storage tank (UST)" to clarify that regulated ASTs are also subject to this rule requirement; §334.77(a)(3) and (5) is proposed to be amended to add "AST or" to clarify that regulated ASTs are also subject to these rule requirements; and §334.77(a)(6) is proposed to be amended to replace the first "free product" with "Non-Aqueous Phase Liquids (NAPL)", to replace the second "free product" with "NAPL," and to replace "Free Product Removal" with "Removal of Non-Aqueous Phase Liquids" to use more standard risk assessment terminology. Section 334.77(b) is proposed to be amended to replace "executive director" with "agency."

Section 334.78, Site Assessment, is proposed to be amended. Section 334.78(a) is proposed to be amended to replace "executive director" with "agency." Section 334.78(a)(4) is proposed to be amended to replace "free product" with "Non-Aqueous Phase Liquids (NAPLs)" and to replace "Free Product Removal" with "Removal of Non-Aqueous Phase Liquids (NAPLs)" to use more standard risk assessment terminology and §334.78(a)(5), (6), and (9) is proposed to be amended to replace "executive director" with "agency." Section 334.78(b) is proposed to be amended to replace "executive director" with "agency" and to add "of an aboveground storage tank (AST) or underground storage tank (UST)" to clarify that regulated ASTs are also subject to this rule requirement. Section 334.78(b)(1), (2), and (4)-(6) is proposed to be amended to replace "executive director" with "agency" and in §334.78(6) to replace "commission" with "agency." Section 334.78(c) is proposed to be amended to replace "executive director" with "agency." Section 334.78(d) is proposed to be amended to replace "executive director without prejudice" with "agency."

Section 334.79, Free Product Removal, is proposed to be amended. The section title is proposed to be amended to "Removal of Non-Aqueous Phase Liquids (NAPLs)" to use more standard risk assessment terminology. The beginning of the section is proposed to be amended to replace the first "free product" with "Non-Aqueous Phase Liquids (NAPLs)" and to replace the second "free product" with "NAPLs" to use more standard risk assessment terminology and to replace "executive director" with "agency." Section 334.79(1) is proposed to be amended to replace "free product" with "NAPL" to use a more standard risk assessment terminology. Section 334.79(2) is proposed to be amended to replace "use abatement of free product migration" with "abate the migration of NAPLs" and to replace "free product removal system" with "NAPL recovery system" to use more standard risk assessment terminology. Section 334.79(4) is proposed to be amended to replace "executive director" with "agency" and to replace "free product removal" with "product recovery" to use more standard risk assessment terminology. Section 334.79(4)(A)-(C) and (G) is proposed to be amended to replace "free product" with "NAPL" to use more standard risk assessment terminology; and §334.79(4)(H) is proposed to be amended to replace "executive director" with "agency."

Section 334.80, Investigation for Soil and Groundwater Cleanup, is proposed to be amended. Section 334.80(a) is proposed to be amended to replace "In order to" with "To" to eliminate unnecessary words. Section 334.80(a)(2) is proposed to be amended to replace "free product" with "Non-Aqueous Phase Liquid" and to replace "Free Product Removal" with "Removal of Non-Aqueous Phase Liquids (NAPLs)" to use more standard risk assessment terminology; §334.80(a)(3) is proposed to be amended to replace "Initial Site Characterization" with "Site Assessment" and to replace "Free Product Removal" with "Removal of Non-Aqueous Phase Liquids (NAPLs)" to use more standard risk assessment terminology; and §334.80(a)(4) is proposed to be amended to replace "executive director" with "agency." Section 334.80(b) is also proposed to be amended to replace "executive director" with "agency."

Section 334.81, Corrective Action Plan, is proposed to be amended. Section 334.81(a) is proposed to be amended to replace "Initial Site Characterization" with "Site Assessment" to use more standard risk assessment terminology and to replace "executive director" with "agency." Section 334.81(b) is proposed to be amended to replace "executive director" with "agency", to replace "using risk-based corrective action to establish target cleanup levels" with "§334.203 of this title (relating to Risk Based Criteria for Establishing Target Concentrations)" to make the rule requirement more specific, and to add the words "to achieve" to clarify the rule requirement. Section 334.81(b)(8) is proposed to be amended to replace "a remedial progress monitoring plan" with "operation, monitoring, and performance plan; and" to update the type of plan required; §334.81(b)(9) is proposed to be deleted because an operation and maintenance plan is now part of the operation, monitoring, and performance plan mentioned in the preceding amendment; and §334.81(b)(10) is proposed to be renumbered to account for the preceding deletion. Section 334.81(c) is proposed to be amended to replace "executive director" with "agency." Section 334.81(d) is proposed to be amended to replace "executive director" and "executive director without prejudice" with "agency" to eliminate any connotation that this agency would ever return documents with prejudice. Section 334.81(e) is proposed to be amended to replace "executive director" with "agency", to replace "modifications" with "any revisions" and "made" with "as requested" to clarify the rule requirement. Section 334.81(f)(1)-(3) is proposed to be amended to replace "executive director" with "agency" and §334.81(f)(4) is proposed to be amended to replace "commission" with "agency." Section 334.81(g) is proposed to be amended to replace "In order to" with "To" to eliminate unnecessary words and to replace "executive director" with "agency." Section 334.81(h) is proposed to be amended to replace "shall" with "must." Section 334.81(i) is proposed to be amended to replace "commission" with "agency" and to replace "shall" with "will."

Section 334.82, Public Participation, is proposed to be amended. Section 334.82(a) is proposed to be amended to delete "a" and "plan" to simplify the wording and to replace "executive director" with "agency." Section 334.82(c) is proposed to be amended to replace "that complies with subsection (a) of this section" with "to affected parties" to eliminate an unnecessary reference back to §334.82(a) and to insert "action" to complete the plan title.

Section 334.83, Emergency Orders, is proposed to be amended to add "aboveground storage tank or" to clarify that regulated ASTs are also subject to this rule requirement.

Section 334.84, Corrective Action by the Commission, is proposed to be amended. The section title is proposed to be amended to "Corrective Action by the Agency." Section 334.84(a) is proposed to be amended to replace "commission" with "agency." Section 334.84(a)(1) is proposed to be amended to add "aboveground storage tank (AST) or" to show that regulated ASTs are also subject to this rule requirement and to add the acronym "UST" after "underground storage tank" so it can be used in subsequent paragraphs; §334.84(a)(2) is proposed to be amended to replace "underground storage tank" with "AST or UST" to indicate that this requirement is applicable to both ASTs and USTs; and §334.84(a)(3) is proposed to be amended to replace "underground storage tank" with "AST or UST" to indicate that this requirement is applicable to both ASTs and USTs and to replace "executive director" with "agency." Section 334.84(b) is proposed to be amended to replace "commission" with "agency" and to replace "subchapter" with "chapter" for accuracy and consistency.

Section 334.85, Management of Wastes, is proposed to be amended to add "aboveground or" to clarify that this rule requirement is also applicable to regulated ASTs.

Subchapter E, Financial Responsibility:

Subchapter E is proposed to be repealed in its entirety so that UST financial assurance requirements can be concurrently moved to Chapter 37, new Subchapter I, with some changes. Chapter 37 is intended to consolidate all of the agency's financial assurance requirements (including mechanisms, wording of the mechanisms, and program specific subchapters) into one rule chapters.

Subchapter F, Aboveground Storage Tanks:

The Subchapter F amendments are to incorporate changes to the petroleum storage tank program as a result of HB 2815 and to reflect changes similar to those made in Subchapter A to implement that bill. Amendments are also proposed to update, clarify, and streamline the rules.

Section 334.121, Purpose and Applicability for ASTs, is proposed to be amended. The title is proposed to be amended to add "Aboveground Storage Tanks (ASTs)" to reflect the title name change. Section 334.121(a) is proposed to be amended to replace "aboveground storage tanks" with "ASTs" because the acronym has already been defined. Section 334.121(b)(1) is proposed to be amended to insert "AST" in place of "aboveground storage tank" because this acronym has already been defined. Section 334.121(b)(1)(A), (C), and (D) is proposed to be amended to update their references titles to the titles proposed in this rulemaking; and §334.121(b)(1)(B) is proposed to change its reference from "§334.122" to "§334.2" because the definition of "petroleum product" is proposed to be moved to Subchapter A because it is used in more than one subchapter. Section 334.121(b)(2) is proposed to be amended to replace "shall apply" and "aboveground storage tanks" with "are applicable" and "ASTs," respectively, to improve readability; §334.121(b)(3) is proposed to be amended to delete "shall" for better readability and to replace "aboveground storage tanks" with "ASTs" because this acronym has been previously defined; §334.121(b)(4) is proposed to be amended to replace "shall be" with "are" for better readability and to replace "aboveground storage tank" with "AST" because this acronym has been previously defined; §334.121(b)(5) is proposed to be amended to replace "aboveground storage tank" with "AST" to improve readability; and §334.121(b)(6) is proposed to delete "statutory" because it is unnecessary, to delete the title from the reference to §334.123 because it has already been cited once in this section, to replace "aboveground storage tank" with "AST" because the acronym has already been defined, and to replace "shall be" with "is" for better readability.

Section 334.122, Definitions for ASTs, is proposed to be amended. The title is proposed to be amended to add "Aboveground Storage Tanks (ASTs)" to reflect the title name change. Section 334.122(a) is proposed to be amended to delete "shall" for greater readability. In §334.122(b), the definition of "Aboveground Storage Tank or AST" is proposed to be amended to correct the format and delete "(or AST)"; the definition of "Appropriate district office" is proposed to be deleted because it has a commonly understood meaning and does not require a regulatory definition; subsequent definitions were renumbered throughout to account for this deletion and subsequent additions and deletions; the definition of "Electric generating facility" is proposed to be amended to delete the title of the cross-referenced section, because it has previously been given within this section; the definition of "Facility" is proposed to be deleted to eliminate redundancy because this term is defined in Subchapter A; the definition of "Facility owner" is proposed to be deleted as unnecessary because it has a commonly understood meaning; and the definitions of "Operator," "Owner," "Petroleum product," "Release," "Retail service station," and "Tank" are proposed to be deleted to eliminate redundancy because these terms are already defined in Subchapter A.

Section 334.123, Statutory Exemptions for ASTs, is proposed to be amended. The title of this subsection is proposed to be amended to delete "Statutory" because it is unnecessary and add "Aboveground Storage Tanks (ASTs)." Section 334.123(a) is proposed to delete ", as provided in the Texas Water Code, §26.344" as an unnecessary reference. Section 334.123(b)(1) and (2) is proposed to be amended by replacing "aboveground storage tanks" with its acronym because the acronym has been previously defined. New §334.123(c) is proposed to be added to make explicit that the agency may ask a tank owner and a tank operator to verify claimed exempt status.

Section 334.124, Commission Exclusions for ASTs, is proposed to be amended. The title of this section is proposed to be amended to delete the term "Commission" from the title because it is unnecessary, and add "Aboveground Storage Tanks (ASTs)." Section 334.124(a) is proposed to be delete "by commission directive" because it is unnecessary. Section 334.124(a)(2) is proposed to be amended to replace "such" with "this" and "shall" with "must" to improve readability. Section 334.124(b) is proposed to be amended to replace "aboveground storage tank" with "AST" because this acronym has been previously defined, and to update the title of §334.126 to agree with the newly proposed title. New §334.124(c) is proposed to be added to this subsection to make explicit that the agency may ask a tank owner and a tank operator to verify claimed excluded status.

Section 334.125, General Prohibitions and Requirements for ASTs, is proposed to be amended. The title is proposed to be amended to add "Aboveground Storage Tanks (ASTs)." Section 334.125(a)(1) is proposed to be amended to become part of subsection (a) so that the subsection information can be reorganized. Section 334.125(a) is also proposed to be amended to replace "paragraph 2" in the first line with "paragraph (1)", to replace "person" with "common carrier (as defined in §334.2 of this title (relating to Definitions)", to replace the phrase "such tank is registered with the commission" with "the owner or operator has a valid, current registration certificate, issued by the agency," and to delete the last sentence because of changes made to the PST program to implement HB 2815 and because of changes made to Subchapter A to implement that legislation. Section 334.125(a) is also proposed to be amended to delete the phrase "or have deposited" because tank owner/operator obligations are now covered in the proposed §334.125(b), and to update the title of §334.127 to agree with what is being proposed. New §334.125(a)(1) is proposed to be added to mirror certain changes made to Subchapter A; HB 2815 mandates extensive revamping of the PST program, and an area heavily affected is tank registration. Because of those changes, a new type of agency authorization has been created for regulatory delivery prohibitions as they apply to both USTs and ASTs (see preamble comments on §334.5 of Subchapter A). For new or replacement AST installations, this new "temporary delivery authorization" may serve in the listed circumstances as adequate for common carriers delivering to those tanks (also, see preamble language for §334.127(h) of this subchapter). New §334.125(a)(2) is proposed to be added to further clarify what the common carrier must observe before making his delivery to the AST(s) in question. Existing §334.125(a)(2) language is proposed to be deleted because the regulations for delivery to newly installed ASTs is now covered by the proposed new language earlier in this section. Section 334.125(b) is proposed to be amended by adding new language that makes it explicit, as it is in Subchapter A, that the tank owner or operator must show the proper documentation to the common carrier before delivery into the tanks is accepted (in the current rule, owner/operator obligations exist in subsection (a) of this section). Existing §334.125(b) and (c) language is proposed to be deleted as redundant to §334.126 and §334.127 of this subchapter, respectively.

Section 334.126, Installation Notification for ASTs, is proposed to be amended. The title is proposed to be amended to add "Aboveground Storage Tanks (ASTs)." Section 334.126(a) is proposed to be amended to delete "on or after the effective date of this subchapter," because this language is unnecessary and to replace "shall" with "must" to improve readability. Section 334.126(a)(1) is proposed to be amended to replace "executive director" with "agency." Section 334.126(a)(1)(A) is proposed to be amended by replacing "commission's" with "agency's", and "a commission" with "an agency"; and to update "district office" to "regional office" to reflect current agency terminology; §334.126(a)(1)(B) is proposed to be amended to change "agent or" to "or" and to change the second "or" to "e.g." to clarify the rule language; §334.126(a)(1)(C) is proposed to be amended to replace "commission's" with "agency's", to delete "as" and "as possible" to tighten unacceptably vague language, and to change "designated" to "authorized" to clarify the rule requirement; §334.126(a)(1)(D) is proposed to be amended to replace "aboveground storage tanks" with its acronym because the acronym has been previously defined; §334.126(a)(1)(E) is proposed to be amended to change "designated" to "authorized" to clarify the rule requirement, to replace "commission's" with "agency's", and to update "district" to "regional" to reflect current agency terminology; §334.126(a)(1)(F) is proposed to be amended to replace "aboveground storage tanks" with its acronym because the acronym has been previously defined and to delete "(relating to Construction Notification)" in the reference to §334.6 because this section title has been previously cited in this section. Section 334.126(a)(2) is proposed to be amended by replacing "executive director" with "agency", and by replacing "aboveground storage tank" with its acronym because this acronym has been previously defined in this section; §334.126(a)(3) is proposed to be amended to replace "aboveground storage tank" with its acronym because this acronym has been previously defined in this section; and §334.126(a)(4) is proposed to be amended to replace "owner or operator" with "person" to explicitly include landowners who wish to perform this activity, whether or not they consider themselves to be tank "owners" or "operators", and to update the titles of §334.6 and §334.126 to agree with the proposed new titles. Section 334.126(b) is proposed to be amended to delete "statutorily" in §334.126(b)(1) because this word is unnecessary and to update the proposed titles of referenced §§334.123, 334.124, and 334.127.

Section 334.127, Registration for ASTs, is proposed to be amended. The title is proposed to be amended to add "Aboveground Storage Tanks (ASTs)." Section 334.127(a)(1) is proposed to be amended to replace "shall" with "must" to improve readability, to replace "commission" with "agency", add "authorized agency" in front of "forms" for greater clarity, and to change "supplied by or approved by the executive director" to "in accordance with subsection (e) of this section" to clarify rule requirements. Section 334.127(a)(1)(A) is proposed to be amended to delete "statutorily" as unnecessary, and to update the title of reference §334.123 to reflect the newly proposed title; and §334.127(a)(1)(B) is proposed to be amended to delete "by commission directive" as unnecessary, and to update the title of referenced §334.124 to reflect the newly proposed title. Section 334.127(a)(2) is proposed to be amended to add "and operator," "or operator," and "and operator remain" to reflect that the agency proposes under this section, AST owners and operators be made jointly and severally liable for all requirements of this section. This will mirror the liability scheme of the remainder of this chapter (except for tank fees). Section 334.127(a)(2) is also proposed to be amended to replace "aboveground storage tank" with its acronym because the acronym has been previously defined, to change "shall be" to "are" for better readability, to combine the second and third sentences for greater clarity, to replace "shall be held" with "and operator remain" and to delete "by such representatives" to improve readability and to clarify rule requirements. Section 334.127(a)(3) is proposed to be amended to replace "aboveground storage tanks" with its acronym because this acronym has been previously defined, to change "shall" and "be" to "are" for better readability, to delete "annual facility" because it is unnecessary, to update the reference to §334.128 to reflect its newly proposed title, to add "or operator" to reflect the agency's proposal to make the liability under this section joint and several for AST owners and operators, and to insert "or timely" after "properly" to clarify the rule requirement. Section 334.127(b) is proposed to be amended to add "or operates" to reflect the agency's proposal to make the liability under this section joint and several for AST owners and operators, to replace "commission" with "agency", and to change "supplied by or approved by the executive director" to "an authorized agency" to clarify the rule requirement. Section 334.127(c) is proposed to be amended to insert "or operates" to reflect the agency's proposal to make the liability under this section joint and several for AST owners and operators, to replace "aboveground storage tank" with its acronym because the acronym has been previously defined, and to replace "supplied by or approved by the executive director" with "agency on an authorized agency form" and to insert "first", to clarify the rule requirement. Section 334.127(d) is proposed to be amended to add "or operator" to reflect the agency's proposal to make the liability under this section joint and several for AST owners and operators, to replace "aboveground storage tank" with its acronym because the acronym has been previously defined, to replace "shall" with "must" in four locations to improve readability, to replace "executive director" with "agency" in two locations; to delete "necessarily" to clarify the rule requirement, and to replace "Such" with "This" to improve readability, to change "supplied by or approved by the executive director" to "an authorized agency" and "which has been completed in accordance with subsection (e) of this section" to clarify the rule requirement, to replace "commission's unique" with "Texas Natural Resource Conservation Commission (TNRCC)" and to add "in the appropriate space on the form" to clarify the rule requirement. Section 334.127(e) is proposed to be amended to change "Registration" to "Required" and change "providing AST registration information" to improve readability. Section 334.127(e)(1) is proposed to be amended to replace "tank" with "AST" to increase clarity, to add "or operator" to reflect the agency's proposal to make the liability under this section joint and several for AST owners and operators, to replace "shall" with "must" to improve readability, to delete "required" as unnecessary, and to change "supplied by or approved by the executive director" to "indicated on the agency's authorized form" to improve clarity; §334.127(e)(2) is proposed to be amended to change "shall" to "must" in three places for better readability, to delete "as" and "as possible" to tighten unacceptably vague language, to insert ", operator" and "of the owner or operator" to reflect the agency's proposal to make the liability under this section joint and several for AST owners and operators, and to change "the owner's designated" to "an authorized" to clarify the rule requirement, and to replace "executive director" with "agency"; §334.127(e)(3) is proposed to be amended to replace "tank" with "AST" for greater clarity; to add "or operators" to reflect the agency's proposal to make the liability under this section joint and several for AST owners and operators, to replace "shall" with "must" for better readability, and to replace "aboveground storage tanks" with its acronym because this acronym has been previously defined; §334.127(e)(4) is proposed to be amended to replace "Tank" with "All AST" and "tanks" with "or operate ASTs" for greater clarity, to add "or operators" to reflect the agency's proposal to make the liability under this section joint and several for AST owners and operators, to replace "shall" with "must" for better readability, and add "where regulated ASTs are located, unless otherwise allowed under subsection (f) of this section" to clarify rule requirements; and §334.127(e)(5) is proposed to be amended to replace "shall" with "must" for greater readability. Section 334.127(f) is proposed to be amended to replace "aboveground storage tanks" with its acronym because this acronym has been previously defined in this section, to replace "shall" with "must" for greater readability, to insert "or operator" to reflect the agency's proposal to make the liability under this section joint and several for AST owners and operators, and to correct the period at the end to a colon. Section 334.127(f)(1) is proposed to be amended to insert "or operator" and "or operator's" to reflect the agency's proposal to make the liability under this section joint and several for AST owners and operators, to replace "may" with "must"to clarify the rule requirement, and to correct the period at the end to a semicolon; §334.127(f)(2) is proposed to be amended to insert "or operator must" and "or operator's", and delete "owner's", to reflect the agency's proposal to make the liability under this section joint and several for AST owners and operators, to replace "shall" with "must" for better readability, to delete ", except that records for any period prior to the effective date of this subchapter shall not be required" because the effective date of the rule is changing, to replace "commission" with "agency" and to add "; and" and delete the period at the end; and §334.127(f)(3) is proposed to be amended to insert "or operator's" to reflect the agency's proposal to make the liability under this section joint and several for AST owners and operators, to replace "shall" with "must" for better readability, and to replace "executive director's" with "agency's." Section 334.127(g) is proposed to be amended to replace "tank" with "AST" to improve clarity; to replace "commission" and "executive director" with "agency"; to insert "and/or operator" to reflect the agency's proposal to make the liability under this section joint and several for AST owners and operators, and to replace "shall be required to" with "must" for better readability. New §334.127(h) language is proposed to provide for a 90-day temporary authorization for delivery to new or lacement ASTs, to reflect this new type of authorization and its relationship to delivery prohibitions (see preamble comments for §334.125 and §334.5). The existing language in §334.127(h) is proposed for deletion as unnecessary and redundant.

Section 334.128, Annual Facility Fees for ASTs, is proposed to be amended. The title is proposed to be amended to add "Aboveground Storage Tanks (ASTs)." Section 334.128(a)(1) is proposed to be amended to insert "will" in place of "shall" for better readability, to insert "agency" in place of "commission", and to update the title of §334.127 as proposed; §334.128(a)(2) is proposed to be amended to insert "will" in place of "shall" and insert "must" in place of "shall" for better readability, and to insert "AST" in place of "aboveground storage tank" because this acronym has been previously defined; and §334.128(a)(3) is proposed to be amended to insert "agency" in place of "executive director." Section 334.128(b)(1) is proposed to be amended to insert "agency" in place of "executive director" and to insert "will" in place of "shall" for better readability; §334.128(b)(2) is proposed to be amended to insert "will" in place of "shall" to improve readability, and to insert "ASTs" in place of "aboveground storage tanks" because this acronym has been previously defined. Section 334.128(c)(2) is proposed to be amended to insert "agency" in place of "executive director" and to insert "will" in place of "shall" for better readability. Section 334.128(d) is proposed to be amended to insert "agency" in place of "commission" and to insert "will" in place of "shall" for better readability. Section 334.128(e) is proposed to be amended to insert "will" in place of "shall" for better readability, to insert "AST" in place of "aboveground storage tank" because this acronym has been previously defined, and to insert "TWC" in place of "Texas Water Code" because this acronym has been previously defined.

Section 334.129, Release Reporting and Corrective Action for ASTs, is proposed to be amended to add "Aboveground Storage Tanks (ASTs)" and §334.129(a) and (b) is proposed to be amended to replace "aboveground storage tank" with "AST" because this acronym has already been defined and to replace "shall" with "must" to improve rule readability.

Section 334.130, Reporting and Recordkeeping for ASTs, is proposed to be amended. The title is proposed to add "Aboveground Storage Tanks (ASTs)." Section 334.130(a) is proposed to be amended to insert "must" in place of "shall" for better readability. Section 334.130(a)(1) is proposed to be amended to update the title of §334.126 as proposed; §334.130(a)(2) is proposed to be amended to insert "AST" in place of "aboveground storage tank" because this acronym has been previously defined, and to delete the title of referenced §334.126 because it has been previously cited in this section; §334.130(a)(3) is proposed to be amended to insert "ASTs" in place of "aboveground storage tanks" because this acronym has been previously defined and to update the title of §334.127 as proposed; §334.130(a)(4) is proposed to be amended to insert "ASTs" in place of "aboveground storage tanks" because this acronym has been previously defined and to update the title of §334.128 as proposed; §334.130(a)(5) is proposed to be amended to update the title of §334.129 as proposed; and §334.130(a)(6) is proposed to be amended to insert "agency" in place of "executive director." Section 334.130(b)(1)(A) is proposed to be amended to insert "ASTs" in place of "aboveground storage tanks" because this acronym has been previously defined and to insert "must" in place of "shall" for better readability; and §334.130(b)(1)(B) is proposed to be amended to insert "and operators" to reflect the agency's proposal to make the liability under this section joint and several for AST owners and operators, to insert "ASTs" in place of "aboveground storage tanks" because this acronym has been previously defined, and to delete the title of referenced §324.127 because this has already been cited in this section. Section 334.130(b)(2) is proposed to be amended to insert "ASTs" in place of "aboveground storage tanks" and to insert "AST" in place of "aboveground storage tank" because this acronym has been previously defined, to insert "must" in place of "shall" and to insert "are" in place of "shall be" for better readability, and to delete the title of referenced §334.127 because it has been previously cited in this section.

Section 334.131, Enforcement for ASTs, is proposed to be repealed because the agency has consolidated all enforcement rules into Chapter 70, which followed statutory enforcement consolidation into an unified TWC, Chapter 7.

Section 334.132, Other General Provisions for ASTs, is proposed to be amended. The title is proposed to be amended to add "Aboveground Storage Tanks (ASTs)." Section 334.132(a) is proposed to be amended to insert "must" in place of "shall" for better readability, to delete "Texas Air Control Board," and "Texas Water Commission" and insert "Texas Natural Resource Conservation Commission" to reflect the consolidation of those two agencies. Section 334.132(b) is proposed to be amended to insert "ASTs" in place of "aboveground storage tanks" because this acronym has been previously defined, to insert "are" in place of "shall be" for better readability, and to delete "contractor, operator, or other" because these additional words are unnecessary, to insert "the" in place of "an aboveground storage tank" to improve readability, and to delete "to be principally in charge of any activities or procedures required under this subchapter" to remove a legally inappropriate qualifying phrase. Section 334.132(c)(1) is proposed to be amended to insert "AST" in place of "aboveground storage tank" because this acronym has been previously defined, to insert "agency" in place of "commission", and to insert "must" in place of "shall" for better readability. Section 334.132(c)(1)(B) is proposed to be amended to insert "agency" in place of "commission." Section 334.132(c)(2) is proposed to be amended to insert "agency's" in place of "commission, its" and to delete an unnecessary comma. Section 334.132(c)(2)(A) is proposed to be amended to insert "AST" in place of "aboveground storage tank" because this acronym has been previously defined. Section 334.132(c)(3) is proposed to be amended to insert "agency" in place of "commission", to insert "direct" in place of "order" to improve readability, to insert "AST" in place of "aboveground storage tank" because this acronym has been previously defined, and to delete "aboveground storage" because it is unnecessary with the previous amendments. Section 334.132(c)(4) is proposed to be deleted in its entirety as unnecessary and redundant because it duplicates language in the TWC, Subchapter I. Section 334.132(c)(5) is proposed to be deleted because the citation is no longer accurate and the language duplicates that now found in Texas Health and Safety Code, §753.008.

Subchapter G, Target Concentration Criteria:

Subchapter G is proposed to be amended to update some risk assessment terminology and criteria and to do "limited" regulatory reform amendments to streamline the rules and to improve clarity and readability.

Section 334.201, Purpose and Applicability, is proposed to be amended. Section 334.201(a) and (b) is proposed to be amended to replace "executive director" with "agency." Section 334.201(b) is also proposed to be amended to replace "the effective date of these rules" with "November 8, 1995" to maintain the originally intended date.

Section 334.202, Definitions, is proposed to be amended. The definition of "Institutional Control" is proposed to be amended to replace "executive director" with "agency." The definition of "Potential beneficial use" is proposed to be amended to replace "were" with "was" to correct to a singular verb and to replace "and/or" with "or" to improve rule readability and clarify the rule requirement.

Section 334.203, Risk-Based Criteria for Establishing Target Concentrations, is proposed to be amended. Section 334.203(1)(A) is proposed to be amended to replace "executive director" with "agency" and to delete "or not" to improve rule readability. Section 334.203(1)(B)-(D) and (F) is proposed to be amended to change "executive director" to "agency." Section 334.203(1)(I)(i) is proposed to be amended to delete the term "reasonable" to remove ambiguity from the rule. Section 334.203(1)(I)(iii) and (iv) is proposed to be amended to change "executive director" to "agency." Section 334.203(1)(I)(vi) is proposed to be amended to replace "free product" with "non-aqueous phase liquid" and to change "free product" to "of non-aqueous phase liquid" to use more standard risk assessment terminology (consistent with similar changes being made throughout the chapter), to change the title of referenced §334.79 from "Free Product" to "of Non-Aqueous Phase Liquid" to reflect the proposed new title of that rule section, to change "executive director' to "agency." Section 334.203(1)(J)(i) is proposed to be amended to change "executive director" to "agency" and "commission" to "agency." Section 334.203(1)(J)(ii) is proposed to be amended to replace "two" with "15" to reflect a change in risk assessment criteria which is more protective of human health and safety. Section 334.203(1)(L)-(O) is proposed to be amended to change "executive director" to "agency." Section 334.203(2), (5), and (6) is proposed to be amended to insert "agency" in place of "executive director." Section 334.203(2)(L) is proposed to be amended to insert a comma after operator and to insert "the agency," in place of "executive director." Section 334.203(2)(M) and (N) is proposed to be amended by inserting "agency" in place of "executive director." Section 334.203(3) is proposed to be amended to insert "agency" in place of "commission." Section 334.203(5)(E), (G), and (6) is proposed to be amended by inserting "agency" in place of "executive director."

Section 334.204, Criteria for Selection of Land Use, is proposed to be amended. Section 334.204(2) is proposed to be amended to replace "executive director" with "agency." Section 334.204(3) is proposed to be amended to replace "commission" with "agency." Section 334.204(6) is proposed to be amended to replace "executive director" with "agency."

Section 334.205, Institutional Control Requirements, is proposed to be amended to replace "executive director" with "agency." Section 334.205(2), first line, is proposed to be amended to insert a comma after operator.

Section 334.206, Criteria For Institutional Control Use, is proposed to be amended to replace "executive director" with "agency." Section 334.206(a)(3) is proposed to be amended to insert "Land" into the current title of the professional board identified in the rule to update it. Section 334.206(a)(6) is proposed to be amended to insert "of" in place of "at" and to delete "Texas Natural Resource Conservation Commission or subsequent" for greater clarity.

Section 334.208, Model Institutional Controls, lead-in language is proposed to be added for correct formatting and as an explanation for the figure that is contained in this section. The "Model Institutional Control for Properties" figure is proposed to be amended in two signature locations near the end of the document to change the first two numbers in the year portion of the date from "19" to "20" to update the document for the new millennium.

Subchapter H, Petroleum Storage Tank Reimbursement Program:

Subchapter H is proposed to be amended to reflect the two year extension to the expiration date of the Petroleum Storage Tank (PST) Reimbursement Program from "2001" to "2003" pursuant to HB 2816 and to reflect the six month extension to the corrective action plan deadline from December 23, 1997 to June 23, 1998 to reflect a twelve month extension to the corrective action plan goals deadline, and to reflect the new 90 day processing time necessary for reimbursements pursuant to HB 2815. Amendments are also proposed to streamline the rules and to improve clarity and readability.

The title of the Subchapter H is proposed to be amended to delete the outdated term "Interim" at the beginning.

Section 334.301, Applicability of this Subchapter, is proposed to be amended. Section 334.301(b)(1) and (2) is proposed to be amended to change "executive director" to "agency." Section 334.301(c) is proposed be amended to change "commission" to "agency", and is proposed to be amended to reflect the two year extension to the expiration date of the PST reimbursement program from "2001" to "2003" pursuant to HB 2816's TWC, amended §26.361(a). Section 334.301(d) is proposed to be deleted because it is obsolete; this subsection is related to the processing of applications submitted prior to June 16, 1991. Subsequent subsections were renumbered due to the deletion of this subsection. Existing §334.301(e) has been renumbered to (d) and pluralized its title and clarified that any person seeking reimbursement must meet all of the requirements in the subchapter. Section 334.301(f) is proposed to be deleted because no such rules were adopted by the agency. Section §334.301(e)(2) and (3) is proposed to be amended by changing "executive director" to "agency." Section 334.301(i) is proposed to be deleted because it pertains to the processing of applications during the 1994-1995 biennium. Subsequent subsections were renumbered due to the deletion of this subsection.

Section 334.302, General Conditions and Limitations Regarding Reimbursement, is proposed to be amended. Section 334.302(a) is proposed to be amended to delete the unnecessary words "In order to" and replace with "To." Section 334.302(a)(1) and (2) is proposed to be amended to change "executive director" to "agency." Section 334.302(a)(3) is proposed to be amended to change "commission" to "agency." Section 334.302(b) is proposed to be amended to change "executive director" and "commission" to "agency." Section 334.302(c) is proposed to be amended to change "commission" to "agency." Section 334.302(c)(1) is proposed to be amended to change "executive director" to "agency", and to reflect the proposed change to the title of referenced §334.314. Section 334.302(c)(4) is proposed to be amended to change "commission" to "agency." Section 334.302(c)(5) is proposed to be amended to improve the readability, and to reflect the two year extension to the expiration date of the PST reimbursement program from 2001 to 2003 pursuant to HB 2816's TWC, amended §26.361(a). Section 334.302(d)(1) is proposed to be amended to correct the title of the §334.304 cross reference. Section 334.302(d)(2) is proposed to be amended to change "executive director" to "agency." Section 334.302(d)(3) is proposed to be amended to correct and amend the §334.303 cross reference title; Section 334.302(d)(4) is proposed to be amended to correct the §334.310 cross reference title, and to add "respectively" for greater clarity. Section 334.302(d)(5) is proposed to be amended to correct the §334.308 cross reference title. Section 334.302(d)(6) is proposed to be amended to correct the §334.309 cross reference title. Subsection (e) is proposed to delete the §334.310 cross reference phrase "(relating to Requirements for Eligibility Interim Period)" because it has already been given once in this section. Section 334.302(j) is proposed to be amended to change "executive director" to "agency" and to change "commission, nor its employees" to "nor" and "agency." Section 334.302(l) is proposed to be amended to change "executive director" to "agency."

Section 334.303, Time to File Application, is proposed to be amended. The section title is proposed to be amended to "When to File Application" to improve readability. Section 334.303(a) is proposed to be amended to add language clarifying the time frame over which the agency will accept applications for reimbursement based upon the expiration date of the reimbursement program (September 1, 2003), and the 90-day processing time necessary for reimbursements pursuant to HB 2815's TWC, new §26.35731(c) and HB 2816's TWC, amended §26.361(a). Section 334.303(b) is proposed to be amended to add clarify that only "a complete application will be considered for reimbursement." Section 334.303(c) is proposed to be added to explain that an application will not be considered complete until the required supporting technical information, reports, and/or documentation required by agency rules at Subchapter D have been filed with the agency.

Section 334.304, Who May File Application, is proposed to be amended to change "executive director" to "agency staff."

Section 334.305, Where and How Documentation Must be Filed, is proposed to be amended. Section 334.305(a) is proposed to be amended to incorporate some of the language from its current paragraph (1), which is then proposed to be deleted to remove a specific address that might change and instead specify in §334.305(a) the use of the address on the application, and to delete §334.305(a)(2) to remove the requirement to submit a copy of the application to the agency's regional office. Section 334.305(b) is proposed to be amended to change "executive director" to "agency." Section 334.305(c) is proposed to be amended by changing "executive director" to "agency", by changing "executive director in case of hand delivery" to "agency", and to delete "date postmarked on the return receipt in the case of mailing or courier services, and the" to clarify and simplify the agency's receipt date for documents received.

Section 334.306, Form and Contents of Application, is proposed to be amended. Section 334.306(a) is proposed to be amended to change "executive director" to "agency." Section 334.306(b) is proposed to be amended to change the "shall" to "must" to improve readability. Sections 334.306(b)(1) and (5) are proposed to be amended to change "executive director" to "agency." Section 334.306(b)(7) is proposed to be amended to change to the word "evidence" to "proof" and change "evidence" to "submission" to add clarification and to improve readability, and to replace "be accompanied by" with "include" to improve readability. In §334.306(b)(7)(C), the word "or" is proposed to be deleted because of the subsequent addition of a new §334.306(b)(7)(E). Section 334.306(b)(7)(D) is proposed to be amended to clarify that an affidavit of payment to the person who performed the corrective action, signed by the person who performed the corrective action, must be notarized to verify the signature validity, and to add the word "or" at the end so that a new §334.306(b)(7)(E) can be added. Section 334.306(b)(7)(E) is proposed to be added to allow the use of an affidavit of cost paid in full, accompanied by a promissory note to pay in full, to serve as acceptable proof of payment. Section 334.306(b)(9) is proposed to be amended to change "executive director" to "agency." Section 334.306(c) is proposed to be amended to update and clarify the language on when an application may be filed. Section 334.306(c)(1) is proposed to be amended to clarify that an application may be filed after the completion of a phase "or a pre-approved activity;." Section 334.306(c)(2) is proposed to be amended to change "executive director" to "agency." Section 334.306(d) is proposed to be amended to change "executive director" to "agency" and to delete "without prejudice" because it is not legally appropriate in this context. Section 334.306(e) is proposed to be amended to change "executive director" to "agency." Section 334.306(f)(3) is proposed to be amended to delete "and remediation planning" from the site assessment phase. Section 334.306(f)(4) is proposed to be added to include both risk assessment and the "remediation planning" proposed to be deleted in §334.306(f)(3). Subsequent paragraphs were renumbered due to the addition of this paragraph. Section 334.306(f)(6) is proposed to be amended to include the descriptor "monitoring" in the post-remediation phase for greater clarity. Section 334.306(f)(7) is proposed to add a new "site closure" phase to more accurately describe the phases of corrective action.

Section 334.307, Technical Information Required, is proposed to be amended. Section 334.307(a) is proposed to be amended to change "executive director" to "agency." Section 334.307(a)(1) is proposed to be amended to change "executive director" to "agency", and to correct the Subchapter D cross reference title. Section 334.307(b) is proposed to be amended to change "executive director" to "agency", and to remove the unnecessary words "without prejudice" as legally inappropriate in this context.

Section 334.308, Allowable Costs and Restrictions on Allowable Costs, is proposed to be amended. Section 334.308(b) is proposed to be amended to change "commission" to "agency." Section 334.308(c)(3) is proposed to be amended to remove the specific advance approval requirement for a temporary water supply because there is a general requirement for preapproval of all corrective action activities already in §334.310(f), and to change "executive director" to "agency." Section 334.308(c)(5) is proposed to be amended to delete observation wells because they are used as part of leak detection and not for the remediation discussed in this subchapter. Section 334.308(c)(8)(B) is proposed to be amended to change "executive director" to "agency staff." Section 334.308(c)(15) is proposed to be amended to change "executive director" to "agency." Section 334.308(c)(18) is proposed to be amended to clarify the type of cost reimbursable to obtain access to off-site property. Section 334.308(c)(19) is proposed to be amended to clarify how the determination of the reasonable value of time spent by the applicant in planning and administering the applicant's corrective action plan will be made, and to delete the gender specific pronoun "his own" and replace it with "the applicant's;." Section 334.308(c)(20) is proposed to be amended to delete "or confirmation of the" to clarify the requirement, and to change "executive director" to "by agency staff." Section 334.308(c)(22) is proposed to be amended to change "executive director" to "agency." Section 334.308(d)(2) is proposed to be amended to change "executive director" to "agency." Section 334.308(e)(2) is proposed to be amended to change "executive director" to "agency." Section 334.308(f) is proposed to be amended to change "executive director" to "agency." Section 334.308(g)(5) is proposed to be amended to change "executive director" to "agency." Section 334.308(g)(15) is proposed to be amended to change "executive director" to "agency staff." Section 334.308(g)(16) is proposed to be amended to change the section number for referenced §334.321 to §334.84, to amend the title of §334.84 as proposed, and to change "executive director" to "agency." Section 334.308(g)(20) is proposed to be amended to move a concept being deleted at the end of the existing paragraph to the beginning of the paragraph to improve readability, to add a new §334.308(g)(20)(A) to clarify that cost will not be reimbursed for a regulated substance that is not a petroleum product, and to add a new §334.308(g)(20)(B) rewording the language deleted in §334.308(g)(20) regarding a petroleum product that has been commingled with a regulated substance that is not a petroleum product.

Section 334.309, Reimbursable Costs, is proposed to be amended to change "commission" to "agency."

Section 334.310, Requirements for Eligibility, is proposed to be amended. Section 334.310(a)(1)(B) is proposed to be amended to reflect the two year extension to the expiration date of the PST reimbursement program from "2001" to "2003" pursuant to HB 2816's TWC, amended §26.361(a). Section 334.310(a)(1)(F)(i)(I), (III), and (IV) is proposed to be amended to change "executive director" to "agency." Section 334.310(a)(1)(F)(ii)(I) is proposed to be amended to change "executive director" to "agency." Section 334.310(a)(2)-(5) is proposed to be amended to change "executive director" to "agency." Section 334.310(c) is also proposed to be amended to change "executive director" to "agency." Section 334.310(e) is proposed to be amended to change "Commission" to "Agency."

Section 334.312, Owner/Operator Contribution, is proposed to be amended. Section 334.312(a) is proposed to be amended to change "executive director" to "agency." Section 334.312(d) is proposed to be amended to change "commission" to "agency", and to reflect a six month extension to the corrective action plan deadline from December 23, 1997 to June 23, 1998 pursuant to HB 2815's TWC, amended §26.3512(g) and (h). Section 334.312(e) is proposed to be amended to change "commission" to "agency" and to reflect a twelve month extension to the corrective action plan goals deadline from "1998" to "1999" and to change an "or" to "and" in the first date citation to improve readability. Section 334.312(g)(1) and (2) is proposed to be amended to change "executive director" to "agency."

Section 334.313, Review of Application by Executive Director, is proposed to be amended. The section title is proposed to be amended to delete "by Executive Director" because agency staff actually performs the review of the application. Section 334.313(a) is proposed to be amended to change "executive director" to "agency." Section 334.313(a)(1) is proposed to be amended to change "executive director" to "agency", and to add a lead-in phrase for the subsequent procedures for determining application completeness. Section 334.313(a)(1)(A) is proposed to be added indicating that a complete application form must contain a completed application, legible copies of invoices, proof of payment, preapproval documentation, technical information requested in the application form, and a completed Application Checklist. Section 334.313(a)(1)(B) is added indicating that the applicant has 30 days to respond to deficiencies or reapply. Section 334.313(a)(1)(C) is added indicating that the 30-day response time to deficiencies can be extended by the agency for 30 days one time. Section 334.313(a)(1)(D) is added indicating that after the application is determined complete the agency will do a technical and financial review. Section 334.313(a)(1)(E) is added indicating that complete applications with preapproved costs will be processed before applications without preapproved costs and the applicant will be so notified. Section 334.313(a)(1)(F) is added indicating that if the corrective action on an application is determined unacceptable, the applicant will be notified and the application will not be processed until the corrective action has been determined to be acceptable. Section 334.313(a)(1)(G) is added indicating the received date will be the date the complete application, or additional required information, is received by the agency. Section 334.313(b) is proposed to be amended to insert "will not be considered a complete claim and will not be processed" in place of "may be returned by the executive director without prejudice" to clarify that an application that does not have all the required information will not be considered complete and thus will not be processed, and to remove "without prejudice" as legally inappropriate language in this context. Section 334.313(b) is also proposed to be amended to insert "This" in the second sentence in place of "Return of the application by the executive director without prejudice" to be consistent with the previous change and to be amended to incorporate a deadline date of June 1, 2003 for submission of returned applications based upon the expiration date of the reimbursement program, September 1, 2003, and the 90-day processing time necessary for reimbursements pursuant to HB 2816's TWC, amended section §26.361(a) and HB 2815's TWC, new §26.35731(c). Section 334.313(c) is proposed to be amended to change "executive director" to "agency." Section 334.313(d) is proposed to be amended to clarify that substantive review involves "technical and financial review," to change "executive director" to "agency", to change "he" to "it" to be consistent with the previous change, to break-out some of the information into a new §334.313(d)(1) and to add a new §334.313(d)(2). Section 334.313(d)(1) language is proposed to be amended to change "may" to "will" to indicate that further review of the application will be postponed until additional required information is received, to change "executive director" to "agency" and add a new sentence indicating that the date received will be the date the agency receives the required additional information. Section 334.313(d)(2) is added to allow issuance of the fund payment report within the new legislatively required 90 days, but withhold payment for the insufficiently documented costs or insufficiently documented corrective action activity. Section 334.313(e) is proposed to be amended to change "executive director" to "agency." Section 334.313(f) is proposed to be amended to change "commission" to "agency."

Section 334.314, Executive Director's Fund Payment Report, is proposed to be amended. The section title is proposed to be changed to "Fund Payment Report." Section 334.314(a) is proposed to be amended to change "executive director" to "agency." Section 334.314(b) is proposed to be amended to change "executive director" to "agency", and to change the period for response to the fund payment report from 45 days from the date of receipt to 60 days from the date on the fund payment report . Section 334.314(c) and (d) is proposed to be amended to change "executive director" to "agency." Section 334.314(e) is proposed to be amended to change "executive director" to "agency", and to change the word "his" to "its" and "he" to "it" to be consistent with the previous change.

Section 334.315, Protest of Fund Payment Report, is proposed to be amended. Section 334.315(a) is amended to change the word "he" to "the applicant" to avoid using a single gender pronoun, and to change the period for protesting the fund payment report from 45 days from the date on which the applicant receives the fund payment report to 60 days from the date on the fund payment report. Section 334.315(b) is proposed to be amended to change "executive director" to "agency." Section 334.315(b)(2) is proposed to be amended to change "executive director's" to "Texas Natural Resource Conservation Commission" to reflect current agency terminology. Section 334.315(b)(4) is proposed to be amended to delete "executive director's" to be consistent with the proposed new title of this section, and to delete the unnecessary wording "of any other complaint the applicant has relating to the claim" and replace it with a clarification that documentation supporting a protest should be included with the statement of protest submitted to the agency. Section 334.315(d) is proposed to be amended to change the time to file a petition for relief from "45" to "60" days from the date of notification from the agency that informal negotiations have ceased and the final formal protest meeting has been held, and to change "executive director" to "agency."

Section 334.318, Recovery of Costs, is proposed to be amended to change "commission" to "agency."

Section 334.320, Responsibilities of Owners and Operators, is proposed to be amended. The section title is proposed to be changed to "Responsibility of Owners, Operators, and Others" to reflect all applicable parties under this section. Section 334.320(b) and (c) is proposed to be amended to change "executive director" to "agency."

Section 334.321, Corrective Action by the Commission, is proposed to be amended. In the section title, "Commission" is proposed to be changed to "Agency." Section 334.321(a)-(d) is proposed to be deleted because these limitations are an unnecessary repeat of those found in Subchapter D, §334.84. Also, the subsection designation is proposed to be removed from current §334.321(e) due to the previous deletions; "executive director" is proposed to be changed to "agency"; and language is proposed to be added to clarify that work authorized by the agency to be performed by the owner or operator is subject to the estimated cost preapproval requirements in this subchapter.

Section 334.322, Subchapter H Definitions, is proposed to be amended. The following definitions are proposed to be deleted and added to Subchapter A, §334.2 because they are used in more than one subchapter: "Abate", "Aboveground storage tank", "Backfill", "Corrective action", "Corrective action plan (remedial action plan)", "House Bill 1214", and "Hydraulic fluid." The title of the definition of "Commingled" is proposed to have "substance" deleted, to be moved to Subchapter A, §334.2, and a cross reference to §334.2 for the definition added here. The definition of "Confirmed" is proposed to be amended to change "executive director" to "agency." The definition of "Eligible owner" is proposed to be amended to add "held or" for greater clarity, and to delete the obsolete last sentence. The definition of "Emergency abatement" is proposed to be amended to add "mitigating" to be inclusive of all mitigating actions, to add "in an emergency" to clarify the definition, to delete "by mitigating fire, explosion, and vapor hazards," to make the definition inclusive of all mitigating actions, and to change "executive director" to "agency." The definitions of "Petroleum Product" and "Petroleum Storage Tank" are proposed to be moved to Subchapter A, §334.2, with a cross reference to §334.2 added here. The remaining definitions are renumbered to accommodate these changes.

Subchapter I, Underground Storage Tank Contractor Registration and Installer Licensing:

Subchapter I amendments are proposed to streamline the rules and to improve clarity and readability.

Section 334.402, Application for Certificate of Registration, is proposed to be amended. At the beginning of this section, the unnecessary words "in order" are proposed to be deleted. Section 334.402(1) is proposed to be amended to change "executive director" to "agency." Section 334.402(2)(B) is proposed to be amended to add "an authorized representative's name and title, when the applicant is not an actual individual" in place of "the business representative's name and title" because the business representative may not be the person authorized to sign for the company when it is a company registering rather than an individual. Section 334.402(2)(C) is proposed to be amended to change "business" to "an authorized" to conform with the previous change. Section 334.402(2)(D) is proposed to be amended to delete "financial assurance, including" to conform with subsequent changes in §334.402(2)(D)(i) and (ii). Section 334.402(2)(D)(i) is proposed to be amended: to add "proof" in place of "evidence" to be more specific about what is required; to update the name of the agency from "Texas Water Commission" to "Texas Natural Resource Conservation Commission"; to change "executive director" to "agency"; and to delete "; and a financial statement prepared in conformity with accounting principles as defined by the American Institute of Public Accountants, indicating an applicant's current net worth of not less than $25,000; or" to move this documentation requirement to the following §334.402(2)(D)(ii) for greater clarity. Section 334.402(2)(D)(ii) is proposed to be amended to add the last documentation requirement deleted from §334.402(2)(D)(i), to add a second alternative documentation of a letter from a certified public accountant, and to delete the less specific "other evidence of financial assurance which is determined by the executive director to be sufficient for the purposes of the section." Section 334.402(2)(E)(i)-(iii) is proposed to be amended to change "executive director" to "agency." Section 334.402(2)(F) is proposed to be amended to delete the notarization requirement because it is unnecessary. Section 334.402(2)(G) is proposed to be added to clarify that the application/issuance fee must be paid when the application is submitted.

Section 334.403, Issuance of Certificate of Registration, is proposed to be amended. Section 334.403(a) is proposed to be amended to change "commission" to "agency"; to add "the initial application/issuance fee" in place of "fees" to further clarify that the total fee of $150 is the sum of the application and issuance fees; and to delete "The $100 issuance fee shall be refunded if the application is withdrawn or denied." because processing is required whether or not the application is approved. This is also consistent with the fee provisions of other TNRCC licensing programs. Section 334.403(b) is proposed to be amended to change "executive director" to "agency"; to delete the requirement for comments to be sent by certified mail return receipt requested because this will reduce agency costs and first class mail is adequate; to delete the return of the $100 issuance fee because considerable processing effort will have already occurred; to add the words "may be" to allow some flexibility on denying certificates of registration in unusual but justified special circumstances; and to delete the words "without prejudice" because they are not legally appropriate in this context. Section 334.403(c) is proposed to be amended to change "executive director" to "agency."

Section 334.404, Renewal of Certificate of Registration, is proposed to be amended. Section 334.404(b) and (c) is proposed to be amended to change "commission" to "agency." Section 334.404(d) is proposed to be amended to add new language to clarify that submission of a properly completed application includes proper payment of associated fees and certification of adequate financial requirements, to replace "executive director" with "agency", and to delete the remaining language to clarify it in §334.404(d)(1)-(3). Section 334.404(d)(1) is proposed to add language to clarify that the current certification will be considered provisionally renewed if the applicant submitted the renewal application by the deadline and has not yet received notification of the agency's renewal decision by the expiration date. Section 334.404(d)(2) is proposed to add language to clarify that the current registration will not be considered provisionally renewed if the applicant did not file the renewal application prior to the expiration date, and the applicant has not received notification of renewal by the expiration date. Section 334.404(d)(3) is proposed to clarify that renewal certificates issued after the previous expiration date will have an expiration date of one year following the previous expiration date. This also means that some certificates of registration may not be for a full year, depending on when the renewal application was received. Section 334.404(e) is proposed to be amended to have the demonstration of financial requirements made by certification and have the applicant be subject to submitting documentation of financial requirements on demand rather than resubmitting this documentation with each renewal. Section 334.404(g) is proposed to be amended to change "executive director" to "agency"; and to specify issuance of a renewal approval letter in place of a certificate to reduce TNRCC workload and cost.

Section 334.405, Denial of Certificate of Registration is proposed to be amended. The title of this section is proposed to be amended to add "Grounds for" to the beginning of the title to be more accurate and specific. The beginning of the section is also proposed to be amended to change "executive director" to "agency." Section 334.405(4) is proposed to be amended to change "executive director" to "agency."

Section 334.406, Fee Assessments for Certificate of Registration, is proposed to be amended. For simplification and clarification, §334.406(1)(A) is proposed to be amended to change the application fee to a combined application/issuance fee of $150; §334.406(1)(B) specifying the issuance fee separately is proposed to be deleted and the remaining provisions renumbered. For further simplification and clarification, newly renumbered §334.406(1)(F) is proposed to be amended to cite the actual $25 late renewal fee instead of cross referencing where to find it in the rules. Section 334.406(2) is proposed to be amended to change "executive director" to "agency." Section 334.406(3) is proposed to be added to indicate that all related fees are nonrefundable, because processing takes place whether or not the application for a certificate of registration is approved or disapproved. This new policy is consistent with other TNRCC licensing programs.

Section 334.407, Other Requirements for Certificate of Registration, is proposed to be amended. Section 334.407(a) is proposed to be amended to change "executive director" to "agency." Section 334.407(a)(4) is proposed to be amended to change "business" to "authorized" in conformance with the amendment proposed to §334.402(2)(B). Section 334.407(b) is proposed to be amended to delete the unnecessary word "such", to change "responsibility" to "requirements" in conformance with previously proposed changes to §334.402, and to change "commission" to "agency." Section 334.407(d) is proposed to be amended to delete the "Texas Air Control Board" because this agency was combined with the Texas Water Commission to form the Texas Natural Resource Conservation Commission and to amend "Texas Water Commission" to read "Texas Natural Resource Conservation Commission" for the same reason.

Section 334.409, Revocation, Suspension, or Reinstatement of Certificate of Registration and License, is proposed to be amended to change "executive director" to "agency."

Section 334.411, Type of Hearing, is proposed to be amended. The title of the section is proposed to be changed to "Procedures for Revocation, Suspension, or Reinstatement of a Certificate of Registration and License" to match the new proposed contents of this section. The existing wording of this section is proposed to be deleted as unnecessary because it is outdated and acts as a statutory recitation. Proposed new §334.411(a)-(d) is proposed so that the procedures for revocation, suspension, or reinstatement of the certificate will be laid out more specifically. This proposed language is consistent with that used elsewhere in this subchapter and in Subchapter J (Registration of Corrective Action Specialist and Project Managers for Product Storage Tank Remediation Projects) for revocations, suspensions, and reinstatements.

Section 334.412, Definitions, is proposed to be amended. Section 334.412(1) is proposed to be deleted because the definition of "business representative" already appears in the commission's generally applicable definitions in 30 TAC Chapter 3. New §334.412(1) is proposed to be amended by using "UST" further on in this paragraph, by adding "by the agency" for greater clarity, and by adding "the contractor" in place of "same" for greater clarity. Section 334.412(3) is proposed to be deleted because "commission" is also already defined in Chapter 3. Former §334.412(4) and (5) is proposed to be renumbered due to the previous deletions. Section 334.412(6) is proposed to be deleted because "executive director." Section 334.412(7) is proposed to be renumbered due to the previous deletions and §334.412(7)(D)(ii)(I) is proposed to be amended to reflect that the Texas Water Well Drillers Board licensing responsibilities have been transferred to the Texas Department of Licensing & Regulation. Section 334.412(8) is proposed to be deleted because this definition is already defined in Subchapter A. Section 334.412(9)-(10) is proposed to be renumbered due to previous proposed deletions. Section 334.412(11)-(13) is proposed to be deleted because "operator", "owner", and "person" are already defined in agency general definitions in 30 TAC Chapter 3. Section 334.412(14) and (15) is proposed to be renumbered to account for the previous proposed deletions. Section 334.412(16) is proposed to be deleted because the definition is already in Subchapter A. Section 334.412(17)-(19) is proposed to be renumbered to account for previous proposed deletions.

Section 334.413, License for Installers and On-Site Supervisors, is proposed to be repealed because it was only necessary to have this section until rules were adopted by the commission that define the requirements necessary for the issuance of installer and on-site supervisor licenses, and that has been done.

Section 334.414, License for Installers and On-Site Supervisors, is proposed to be amended. Section 334.414(b) is proposed to be amended to change "commission" to "agency." Section 334.414(c)(1) is proposed to be amended to change "commission" to "agency." Section 334.414(d) is proposed to be amended to change "commission" to "agency."

Section 334.416, Requirements for Issuance of License A and License B, is proposed to be amended. Section 334.416(a) is proposed to be amended to add "applicant" in place of "installer or on-site supervisor" because it is more accurate (it does not matter if the applicant is an installer or an on-site supervisor); and to change "commission" to "agency." Section 334.416(e) is proposed to be amended to change "executive director" to "agency." Section 334.416(f) is proposed to be amended to change "executive director's" to "agency's." In §334.416(g) and (h), the phrase "prior to the examination" is added to clarify that required courses must be completed prior to taking the license examination. Section 334.416(i) and (i)(7) is proposed to be amended to change "executive director" to "agency."

Section 334.417, Application for License A and License B, is proposed to be amended. Section 334.417(a)(5) is proposed to be amended to change "a list and description" to "documentation" to allow the agency to better verify that the courses were taken. Section 334.417(a)(6) is proposed to be amended to change "executive director" to "agency." Section 334.417(b) is proposed to be amended to change "executive director" to "agency" and to add that the initial application fee of $200 should accompany the licensing application. Section 334.417(c) is proposed to be amended to add "take" in place of "schedule" and to change "executive director's" to "agency's." Section 334.417(d) is proposed to be amended to delete "without prejudice" because this wording is not legally appropriate in this context, to add "application" in place of "examination" because the application and examination fee are proposed to be combined, and to change "executive director" to "agency."

Section 334.418, Notification of Examination, is proposed to be amended by adding "application" in place of "examination" because the application and examination fee are proposed to be combined and by changing "executive director" to "agency." The phrase "on each specific UST category" is proposed to be deleted from §334.419(i) to focus the test evaluation more onto the overall knowledge of the applicant.

Section 334.418(g) is proposed to be amended by changing "commission's" to "agency's." The Phrase "on each specific UST category" is proposed to be deleted from §334.419(i) to focus the test evaluation more onto the overall knowledge of the applicant.

Section 334.419, License A and License B Examination, is proposed to be amended. Section 334.418(a), (d)-(f), and (h) is proposed to be amended by changing "executive director" to "agency."

Section 334.420, Issuance of License A or License B, is proposed to be amended. Section 334.420(a), (c), and (d) is proposed to be amended by changing "executive director" to "agency."

Section 334.421, Renewal of License, is proposed to be amended. Section 334.421(b) is proposed to be amended to change "executive director" to "agency." Subsection (c) is proposed to be amended to change "executive director" to "agency." Section 334.421(c)(1) is proposed to be amended to add "documentation of" in place of "evidence satisfactory to demonstrate" to allow the agency to better verify that the courses were taken. Section 334.421(d) is proposed to be amended to add new wording that the applicant must submit renewal fees and course completion certificates with the application, and to delete the last sentence because the concept is covered in more detail in new §334.421(d)(1) and (2). Section 334.421(d)(1) is proposed to add language to clarify that the current license will be considered provisionally renewed if the applicant submits a timely renewal application and has not yet received notification of the agency's renewal decision by the expiration date. Section 334.421(d)(2) is proposed to add language to clarify that the current license will not be considered provisionally renewed if the applicant did not submit the renewal application on time and the applicant has not received notification of renewal by the expiration date. Section 334.421(d)(3) is proposed to clarify that licenses issued after the previous expiration date will have an expiration date of one year following the previous expiration date. This also means that some licenses may not be for a full year depending on when the renewal application was received. Section 334.421(f) is proposed to be amended to change "executive director" to "agency." Section 334.421(g) is proposed to be amended to delete the former language and add new language to clarify that eight hours of courses are required for License A or B, and 8 hours each of the courses required for License A and License B are required to renew both, except that when the same course is required for both Licenses A and B, the course hours can be counted twice. Section 334.421(h) is proposed to be deleted because this requirement has been incorporated into the language of the preceding amendment. Section 334.421(i) and (j) is proposed to be renumbered due to the previously proposed deletion. Newly renumbered §334.421(h) is proposed to be amended to change and to delete "and (h)" to be consistent with the deletion of the original subsection (h) and to change "executive director" to "agency." Newly renumbered §334.421(j) is proposed to be amended to delete "and (h)" to be consistent with the deletion of the original subsection (h).

Section 334.422, Denial of License A or License B, is proposed to be amended. The title of this section was changed to add "Grounds for" at the beginning to be more descriptive of the contents of the section. The beginning of the section is proposed to be amended to change "executive director" to "agency." Section 334.422(4) is proposed to be amended to delete "or" at the end so that new §334.422(5) and (6) can be added. Section 334.422(5) is proposed to be added for denial of renewal because of applicant default on loans guaranteed by the Texas Guaranteed Student Loan Corporation. This is added in accordance with the Texas Education Code, Chapter 57. Section 334.422(6) is proposed to be added for denial of renewal because an applicant is delinquent on child support payments. This is added in accordance with the Texas Family Code, Chapter 232. Section 334.422(5) is proposed to be renumbered due to previous paragraph additions.

Section 334.423, Fee Assessments for License A and License B, is proposed to be amended. Section 334.423(a)(1) is proposed to be amended to add "initial license application fee--$200" and to delete "examination fee--$50.00" to clarify that the initial application fee is required and that the fee includes the examination fee. Section 334.423(a)(2) is proposed to be amended to add "examination fee--$50.00 (retests only)" and to delete "initial license application fee--$200" to clarify the $50 fee is for examination retests only. Section 334.423(a)(4) is proposed to be amended to add the actual $25 amount of the renewal fee instead of cross referencing where to find the fee amount in the rules. Section 334.423(c) is proposed to be deleted because this fee is being eliminated. Section 334.423(d) is proposed to be renumbered due to the previous deletion, and to change "executive director" to "agency"; and amended to delete the cross reference for the late renewal fee amount that has been previously proposed to be added in §334.423(a)(4). Section 334.423(d) is proposed to be added to indicate that all related fees are nonrefundable, because processing takes place whether or not the application for a license is approved or disapproved. This new policy is consistent with other TNRCC licensing programs.

Section 334.424, Other Requirements for a License A and License B, is proposed to be amended. Section 334.424(a) is proposed to be amended to change "executive director" to "agency." Section 334.424(b) is proposed to be amended by adding the word "all" and by changing the chapter number from "313" to "213" to reflect the new location for the Edwards Aquifer rules. Section 334.424(c) is proposed to be amended to delete the "Texas Air Control Board," which was combined with the Texas Water Commission to form the Texas Natural Resource Conservation Commission, and to amend "Texas Water Commission" to reflect the name of the new organization, "Texas Natural Resource Conservation Commission."

Section 334.426, Revocation, Suspension, or Reinstatement of a License A and License B, is proposed to be amended to change "executive director" to "agency."

Section 334.428, Type of Hearing, is proposed to be amended. The title of the section is proposed to be changed to "Procedures for Revocation, Suspension, or Reinstatement of a License A and License B" to match the new proposed contents. The existing wording of this section is proposed to be deleted as unnecessary because it is outdated and acts as a statutory recitation. Proposed new §334.428(a)-(d) is proposed so that the procedures for revocation, suspension, or reinstatement of the licenses will be laid out more specifically. This proposed language is consistent with that used elsewhere in this subchapter and in Subchapter J for revocations, suspensions, and reinstatements.

Section 334.429, Penalties Effective On or After September 1, 1995, is proposed to be repealed in its entirety as outdated, due to the consolidation of enforcement-related rules into Chapter 70, which itself followed a statutory enforcement consolidation.

Subchapter J, Registration of Corrective Action Specialists and Project Managers for Product Storage Tank Remediation Projects:

Subchapter J amendments are proposed to streamline the rules and to improve clarity and readability.

Section 334.452, Exemptions from Subchapter J, is proposed to be amended. Section 334.452(a)(1) deletes "Statutory" to be consistent with the proposed change to the title of the referenced section. Section 334.452(a)(2) is proposed to be amended to delete "Commission" to be consistent with the proposed change to the title of the referenced section. Section 334.452(d)(2)(A) is proposed to be amended to change "TWC" to "agency" and change "TWC" to "agency,." These amendments are also necessary because the Texas Water Commission was merged into this agency. Section 334.452(d)(2)(C) is proposed to be amended to add language to refer to "air program regulations" rather than "applicable Texas Air Control Board regulations." These amendments are necessary because the Texas Air Control Board was merged into the TNRCC. Section 334.452(h) is proposed to be amended to replace "commission" with "agency." Section 334.452(i) is proposed to be amended by deleting "On or after September 1, 1995, a qualified" because the original implementation date is no longer needed, by deleting and adding various terms applicable to professional engineers as necessary to comply with the language of the most recent version of the Engineering Practice Act; by replacing "commission" with "agency"; by reflecting the current name of the Texas Board of Professional Engineers, by referencing the proposed new §334.452(j) that contains enforcement provisions moved from Subchapter A, §334.11(c)(3)(A), and by deleting two references to §334.11(c)(3)(A) that is proposed to be repealed and its language moved to proposed new §334.452(j) of this section. Section 334.452(j) is proposed to be added to reflect the movement of existing enforcement language applicable to professional engineers, who also hold registration with the TNRCC as corrective action project managers, from Subchapter A, §334.11(c)(3)(A)(ii), which is proposed for repeal, to this section, to amend that existing language by changing various terminology applicable to professional engineers or to the Texas Board of Professional Engineers as necessary to comply with the language of the most recent version of the Engineering Practice Act, and to delete a previous cross reference in the repealed language to this subchapter.

Section 334.453, General Requirements and Prohibitions, is proposed to be amended. Section 334.453(a)(1) is proposed to be amended to delete "offered to be" and ", and performed by" to leaving just "performed by" for easier readability and to delete the unnecessary word "natural." Section 334.453(a)(2) is proposed to be amended to delete the unnecessary word "natural." Section 334.453(a)(4) is proposed to be amended to replace "commission" with "agency." Also, the word "business" is proposed to be deleted because a business representative is not always authorized to sign for the company for all purposes. Section 334.453(b)(1)(A) is proposed to be amended to delete the unnecessary words "offer to"; to correct the word "service" to "services"; and to insert the word "performing" in place of "offering to perform" for easier reading. Section 334.453(b)(1)(E)(ii) is proposed to be amended to remove the word "interim" to refer to the new name of Subchapter H. Section 334.453(b)(2)(C) is proposed to be amended to delete the unnecessary word "natural." Section 334.453(b)(2)(D) is proposed to be amended to replace "commission" with "agency." Section 334.453(c) is proposed to be amended to remove the reference to repealed §334.11 and replace it with a reference to "Chapter 70 of this title (relating to Enforcement) and Texas Water Code, Chapter 7." Section 334.453(e) is proposed to be amended to replace "commission" with "agency."

Section 334.455, Notice to Owner or Operator, is proposed to be amended. Section 334.455(c)(5) is proposed to be amended by deleting the word "Interim" to refer to the new name of Subchapter H and by replacing "TWC" with "agency" because "TWC" is now an obsolete acronym for this agency. Section 334.455(f)(1) is proposed to be amended by changing "by" to "with" to clarify that the agency accepts the registration and is not the registrant, and by changing "Texas Water Commission" to "agency" because the Texas Water Commission was merged into this agency. Section 334.455(f)(2) is proposed to be amended by replacing "Texas Water Commission's" with "agency's" because the Texas Water Commission was merged into this agency and by replacing "commission" with "agency."

Section 334.456, Application for Certificate of Registration for Corrective Action Specialist, is proposed to be amended. Section 334.456(2)(B) is proposed to be amended to change "the business" to "an authorized" because a business representative is not always authorized to sign for the company for all purposes and to add ", when the applicant is not an actual individual" for greater clarity. Section 334.456(2)(C) is proposed to be amended to change "business" to "authorized" for greater clarity and consistency with the previously proposed change. Section 334.456(2)(D) is proposed to be amended to change "financial assurance, including" to "documentation of" to avoid possible confusion of these requirements with financial assurance requirements found at Chapter 37. Section 334.456(2)(D)(i) is proposed to be amended to replace the word "evidence" with the word "proof" for greater clarity and to replace "Texas Water Commission, Petroleum Storage Tank Division" with "Texas Natural Resource Conservation Commission" because the Texas Water Commission was merged into the TNRCC. Section 334.456(2)(D)(ii)(I) is proposed to be amended to add "(balance sheet)" to clarify the type of financial statement required, and to delete "business" to clarify that the signature must be by a person authorized to sign for the company. Section 334.456(2)(D)(ii)(II) is proposed to be amended to delete a vague requirement on "other evidence of financial assurance which is determined by the executive director to be sufficient for the purposes of this section" and replace it with the more specific requirement for "a letter from a certified public accountant, who is not employed by the applicant or does not receive payment from the applicant on a regular basis, verifying the applicant's net worth to be not less than $25,000." Section 334.456(2)(E)(ii) is proposed to be amended by deleting "; or" and inserting a period in its place. Section 334.456(2)(E)(iii),which states "other documentation of quality of performance which is determined by the executive director to be sufficient, pursuant to this section." is proposed to be deleted because no other evidence of quality of performance is acceptable. Section 334.456(3) is proposed to be amended to delete the requirement that the application be "notarized" as an unnecessary requirement.

Section 334.457, Application for Certificate of Registration for Corrective Action Project Manager, is proposed to be amended. Section 334.457(2)(B)(iii), which states "other documentation of quality of performance which is determined by the executive director to be sufficient, pursuant to this section." is proposed to be deleted because no other evidence of quality of performance is acceptable. Section 334.457(3)(A) is proposed to be amended to replace "commission" with "agency." Section 334.457(3)(A)(i) was inadvertently deleted in a previous rulemaking and is being added back, without change, as new language in this proposal. Section 334.457(3)(A)(ii) was also inadvertently deleted in a previous rulemaking and is being added back as new language in this proposal, modifying the former language applicable to professional engineers to comply with the language of the most recent version of the Engineering Practice Act; removing unnecessary language requiring executive director approval, given the requirements stated in §334.452(i); adding the word "requirement" and replacing "may be" with "is" to provide clarification and to be more specific; and adding a reference to §334.452(i) for clarification. Section 334.457(3)(B) is proposed to be amended to replace "commission" with "agency." Section 334.457(4) is proposed to delete the requirement for the application to be "notarized" as an unnecessary requirement. Section §334.457(6) is proposed to add the requirement to take the examination for the project manager certification within 120 days after approval of the application and to add the option to reapply if an application is denied. The requirement to take the examination within 120 days of application will allow the commission not to retain application records for a longer period of time; and it will still allow the applicant a reasonable amount of time within which to take the examination. Also, if an application is denied, an applicant should have the option to reapply.

Section 334.458, Review and Issuance of Certificates of Registration, is proposed to be amended. Section 334.458(a) is proposed to be amended to delete "administratively" to clarify that an application is complete when all requirements have been met, not just the administrative requirements in the application form. Section 334.458(b) is proposed to be amended to delete "administrative" and "administratively" to clarify that an application is complete when all requirements have been met, not just the administrative requirements within the application form. Also, this subsection is proposed to be amended to remove gender specific language by replacing "he determines" with "it is determined"; "he shall inform" with "shall be informed"; and "he shall cease his review" and "return" with "review will cease" and "will be returned." In addition, this subsection is proposed to be amended to remove "without prejudice" because it is legally inappropriate in this context and to add a reference to §334.457 for greater clarity. Section 334.458(c)(1) is proposed to be amended to replace the unnecessary gender word "his" with the word "the" and to delete the word "administratively" to clarify that an application is complete only when all requirements have been met, not just the administrative requirements within the application form. Section 334.458(c)(1) is also proposed to be amended to add "including payment of the applicable fees" to clarify that payment of fees is a requirement for a complete application. Section 334.458(d) is proposed to be amended to delete the word "annually"on certificate of registration renewal because registration renewal is proposed to be amended from annually to every two years in the referenced §334.460, Renewal of Certificate of Registration for Corrective Action Specialist and Registration for Corrective Action Project Managers.

Section 334.459, Continuing Education Requirements for Corrective Action Project Managers, is proposed to be amended. Section 334.459(a) is proposed to be amended to add an exception to the requirement applicable to professional engineers and to provide a reference to §334.452(i), to replace the annual requirement for 16 hours of continuing education with the 32 hours that will be required if the registration is renewed every two years as proposed, to remove unnecessary words "in order", and to delete the unnecessary words "each time it is due for renewal." Also in §334.459(a), a new second sentence is added in parentheses to clarify that sixteen hours of education are required for annual renewals during the transition to the two year renewal. Also in §334.459(a), the unnecessary words "In order to" are proposed to be deleted; "16" is proposed to be deleted to comport with previous changes in this subchapter; "within the 12 months immediately preceding" is proposed to be clarified with the words "prior to;" and "he submits an administratively complete application for renewal" is proposed to be clarified with "a completed application for renewal is submitted" because the word "he" is gender specific and an applicant must submit more than the "administrative" information before the application is considered complete. Section 334.459(b) is proposed to be amended to remove the unnecessary words "In order to" and replace them with "To" at the beginning of the first sentence. Section 334.459(e) is proposed to be amended to add the wording "required continuing education instruction" to replace "16", which would be incorrect with the proposed 32 hours of continuing education for a two-year period. Section 334.459(f) is proposed to be amended to correct the words "certificate" to "certificates" because more than one certificate may be required to document training, and to delete "each year" because a two-year registration renewal is being proposed in §334.460.

Section 334.460, Renewal of Certificate of Registration for Corrective Action Specialist and Corrective Action Project Manager, is proposed to be amended. Section 334.460(a) is proposed to be amended to add two new sentences and a lead-in phrase to the third as follows: "As of the effective date of this rule, the agency will transition to renewal of certificates of registration on a two-year basis. For one year after the effective date of this subsection, existing certificates with even registration numbers will be renewed for one year and certificates with odd registration numbers will be renewed for two years. Following this designated period, each." This staggered two-year renewal period will add efficiency to the program by reducing the number of renewals that have to be processed each year by one-half. The last sentence of §334.460(a) is also proposed to be amended to replace the "one year" terminology with "two years" and to change the "renewal" to "expiration" date for greater clarity. Section 334.460(d) is proposed to be deleted and replaced with "The renewal application must be accompanied by all information needed for the application to be complete, including the required financial documentation, and any other information necessary for the agency to complete the renewal process." This amendment is proposed as part of breaking §334.460(d) into two new paragraphs separating the requirements for an application to be considered complete for corrective action specialists from those for corrective action project managers for greater clarity. The requirement to resubmit financial information in the language proposed for deletion was replaced with a certification that the company has continued to meet the financial requirements in new §334.460(d)(1) to simplify and reduce the paper work burden on the regulated community. In §334.460(d)(2), the previous provision which allowed an applicant for project manager registration to reapply for certification without resubmitting the required documentation is not included. This allows the commission not to retain files of original applications indefinitely. Section 334.460(f) is proposed to have its current language deleted and replaced with new language to clarify the status of registration when the renewal application is received, or is not received, 30 days prior to expiration of the current registration. This amendment is proposed as part of breaking §334.460(f) into two new paragraphs for greater clarity. Section 334.460(f)(1) clarifies how applicants will not be adversely affected by processing times that go beyond the expiration date, as long as the application is properly and timely filed. Section 334.460(f)(2) clarifies that provisional renewal will not be in effect for those applications that are not properly and timely filed. Section 334.460(g), is proposed to be amended to delete "does not apply" and replace it with "has not met all requirements" for renewal, to delete the specific gender pronoun "his," to change the one year from the expiration date to complete a renewal application to 30 days in conformance with the change in §334.460(f)(2), to change the specific gender pronoun phrase "date his previous expiration expires, he must submit" to "expiration date," and to add "must be resubmitted" at the end of the sentence. The second sentence is proposed to be amended to delete "does not apply" and replace it with "has not met all requirements", to delete the specific gender pronoun "his", to change the one year from the expiration date to complete a renewal application to 30 days in conformance with the change in §334.460(f)(2), to change the specific gender pronoun phrase "date his previous expiration expires, he must" to "expiration date", and to add "must be resubmitted" at the end of the sentence. These amendments eliminate specific gender pronouns and allow the agency to retain records of expired licenses for 30 days rather than for an entire year to be consistent with other TNRCC certification programs. Section 334.460(h) is proposed to be amended to delete "certificate of registration" and replace it with "documentation of approval" to allow the agency greater flexibility on the type of documentation issued.

Section 334.461, Denial of Certificate of Registration, is proposed to be amended. Section 334.461(1) is proposed to be amended to add "and fees" to clarify that registration can be denied when an application for registration is submitted without the required fees, to replace "he is seeking" with "being sought" to eliminate the gender specific language, and to remove "without prejudice" because it is legally inappropriate in this context. Section 334.461(2)(B) is proposed to delete the word "Interim" to refer to the new title of Subchapter H. The "or" at the end of §334.461(5) is proposed to be deleted so that newly proposed §334.461(6) and (7) can be inserted. Section 334.461(6) is proposed to be added for denial of renewal because of applicant default on loans guaranteed by the Texas Guaranteed Student Loan Corporation. This is added in accordance with the Texas Education Code, Chapter 57. Section 334.461(7) is proposed to be added for denial of renewal because an applicant is delinquent on child support payments. This is added in accordance with the Texas Family Code, Chapter 232. Section 334.461(6) is proposed to be renumbered to allow for the newly added paragraphs.

Section 334.462, Other Requirements, is proposed to be amended. Section 334.462(a)(4) is proposed to be amended to replace "business" with "authorized" and to add a cross reference to the rule requirement for an authorized representative to sign an application for registration. This amendment is proposed because a business representative may not be the authorized person to sign on behalf of the company for all purposes, and also to be consistent with the previously proposed similar amendments. Section 334.462(b) is proposed to be amended to replace "responsibility" with "information" to avoid possible confusion of this requirement with the financial assurance requirements in Chapter 37. Also, "during which" is added and "such" is deleted to improve readability. Section 334.462(c) is proposed to be amended to add a reminder at the beginning of the first sentence about the exemption of professional engineers from the project manager continuing education requirement and to provide a reference to §334.452(i). Also in this subsection, deletion of the "16" is proposed to conform with the proposed change from one-year to two-year registration renewal in the referenced §334.459. A further amendment of this subsection is proposed to add the word "requirement" to clarify that continuing education is not optional. Section 334.462(d) is proposed to be amended to delete "Texas Air Control Board" and to change "Texas Water Commission" to "Texas Natural Resource Conservation Commission" because the Texas Air Control Board and the Texas Water Commission have been merged into the Texas Natural Resource Conservation Commission.

Section 334.463, Grounds for Revocation or Suspension of Certificate of Registration, is proposed to be amended. Section 334.463(a)(1) is proposed to be amended to replace the gender specific word "he" with "the corrective action specialist." Section 334.463(a)(1)(A) and (C) is proposed to be amended to delete the "or" at the end and to place the "or" at the end of §334.463(a)(1)(D) for proper rule formatting. Section 334.463(a)(1)(B) is proposed to be amended to remove the word "Interim" to refer to the new proposed title of Subchapter H. In §334.463(a)(1)(D), the word "this" replaces "the" for proper rule formatting. In §334.463(a)(1)(E), (b)(1)(E), and (4), "agency" is substituted for "commission." Section 334.463(a)(3) and (5) is proposed to be amended to change the gender specific word "his" to "the" and add "of a corrective action specialist,." Section 334.463(b)(1) is proposed to be amended to replace the gender specific word "he" with "the corrective action project manager." Section 334.463(b)(1)(A) and (C)is proposed to be amended to delete the "or" at the end and to place the "or" at the end of §334.463(b)(1)(D) for proper rule formatting. In §334.463(b)(1)(D), the word "this" replaces "the" for proper rule formatting. Section 334.463(b)(2) is proposed to be amended to change the gender specific word "his" to "the" and add "of a corrective action project manager." Section 334.463(b)(3) is proposed to be amended to change the gender specific word "his" to "the" and add "of a corrective action project manager."

Section 334.465, Procedures for Revocation or Suspension of a Certificate of Registration, is proposed to be amended. Section 334.465(b) is proposed to be amended by updating the cross reference from Chapter "337" to Chapter "70." Section 334.465(c)(1) is proposed to be amended to update the example suspension times to be consistent with other agency certification programs (as part of an ongoing commissioners' directive to achieve consistency among TNRCC programs wherever possible). Section 334.465(d) is proposed to be amended to replace "commission" with "agency."

Section 334.466, Reinstatement of a Certificate of Registration, is proposed to be amended. Section 334.466(a) is proposed to be amended to replace "executive director" with "agency." Section 334.466(c) is proposed to be amended to add ", including a professional engineer," as a clarification to include professional engineers in the requirements for reinstatement after revocation of a certificate of registration, to replace "commission" with "agency", to substitute "may" for "must" because a holder who has a certificate revoked has the option of not reapplying for reinstatement, and to add the phrase "Following the period of revocation" because it clarifies when that applicant can reapply for a certificate of registration after revocation.

Section 334.467, Fee Assessments for Certificates of Registration, is proposed to be amended. Section 334.467(a) is proposed to be amended to remove the capitalization from "Corrective Action Specialists" for consistency with the rest of the rule and to delete "on or after September 1, 1995" because there are substantive changes now being made to the rule. Section 334.467(a)(1) is proposed to be amended to change the initial application fee for a corrective action specialist from $200 to $400 to reflect the new fee that would be appropriate for the proposed two-year registration. Section 334.467(a)(2) is proposed to be amended to delete the word "annual" and "-$175;" to lead into a new breakdown of the corrective action specialist renewal fees during the transition from the one to two-year renewal. Section 334.467(a)(2)(A) is proposed to be added to show the current one-year $175 renewal fee, which will be used by half of the applicants during the transition year. Section 334.467(a)(2)(B) is proposed to be added to show the new two-year renewal fee of $350 that will be paid by half of the applicants during the transition year and all of the applicants after that. Section 334.467(a)(3) is proposed to be amended to replace a semicolon with a colon at the end and to delete the reference "-assessed in accordance with Chapter 12 of this title (relating to Payment of Fees)" because the renewal fees are now being proposed to be added to this subsection. Section 334.467(a)(3)(A) is proposed to add the one-year late renewal fee of $25 to this section for use during the transition from one-year to two-year renewal. Section 334.467(a)(3)(B) is proposed to add the two-year late renewal fee of $50 to this section for use by half of the applicants the first year and all of the applicants thereafter. Section 334.467(b) is proposed to be amended to remove capitalization from "Corrective Action Project" for consistency with the rest of the rule and to replace the words "registered professional engineers" with "professional engineers who are currently duly licensed to practice engineering in the State of Texas," to comply with the language of the most recent version of the Engineering Practice Act. Section 334.467(b)(1) is proposed to be amended to substitute "$250, includes the initial $50 examination fee" for the former one-year "$100" initial application fee. This amendment is proposed to change the initial application fee for a project manager to reflect the new two-year registration period and show that the $50 exam fee is included. Section 334.467(b)(2) is proposed to be amended to add "(required for retakes)" to clarify that this $50 fee is required for exam retakes only. Section 334.467(b)(3) is proposed to be amended to delete the "annual" and "-$75;" to lead into a new breakdown of the corrective action project manager renewal fees during the transition from the one-year to two-year renewal. Section 334.467(b)(3)(A) is proposed to show the one-year renewal fee of $75 dollars that will have to be used by one-half of the applicants during the first year transition from a one-year renewal to a two-year renewal. Section 334.467(b)(3)(B) is proposed to add the new two-year renewal fee of $150 that will be used by half of the applicants during the first transition year and then by all of the applicants after the first year. Section 334.467(b)(4) is proposed to be amended to delete the reference "-assessed in accordance with Chapter 12 of this title;" because the late renewal fees are proposed to be added to this subsection. Section 334.467(b)(4)(A) is proposed to add the one-year late renewal fee of $25 for use by half of the applicants during the first year transition year from a one-year to a two-year registration period. Section 334.467(b)(4)(B) is proposed to add the new two-year late renewal fee of $50. This fee will be used by half of the applicants during the transition year and then everyone thereafter. Section 334.467(c) is proposed to be amended to replace "commission" with "agency."

Subchapter K, Storage, Treatment, and Reuse Procedures for Petroleum-Substance Contaminated Soil

Section 334.481, Definitions, is proposed to be amended. The following was added, "Words used in more than one subchapter are defined in Subchapter A of this chapter (relating to General Provisions). Words widely used in more than one chapter are defined in Chapter 3 of this title (relating to Definitions).", to tell the reader where to find meaning of words that are not defined in this section. The definition of "Aboveground storage tank" is proposed to be deleted to eliminate redundancy because this term is defined in Subchapter A. Subsequent definitions are renumbered to account for this deletion and subsequent deletions wherever necessary. The definitions of "Activities associated with the exploration, development, and production of oil or gas or geothermal resources" and "Active geologic processes" are proposed to be deleted because they are not used in this subchapter. The definition of "Application" is proposed to be deleted as unnecessary. The definition of "Areal expansion of an existing facility" is proposed to be deleted as the term is no longer needed and is deemed unnecessary. The definition of "Authorized" is proposed to be amended to replace "executive director" with "agency." The definition of "Class B facility" is proposed to be amended to replace "shall" with "must" to improve readability. The definition of "Clean fill standard" is proposed to be amended to delete ", e.g. soil cleaned to less than .5 mg/kg for each constituent of BTEX, and less than 10 mg/kg for TPH" because the contaminant levels that define "clean fill" are proposed in §334.503 and are not needed in a definition. The definition of "Executive Director" is proposed to be deleted to eliminate redundancy because this term is defined in Chapter 3 of this title. The definition of "Existing facility" is proposed to be deleted because the term is unnecessary. The definition of "Final closure" is proposed to be amended to delete "so that waste management activities are no longer conducted at the facility unless subject to the provisions of this title" because this language is not needed. The definition number of "Leaking petroleum storage tank (LPST) site" is proposed to be deleted to eliminate redundancy because this term is proposed to be defined in Subchapter A. The definition of "Management" is proposed to be deleted because it is unnecessary. The definition of "Maximum allowable inventory" is proposed to be amended to delete the term "definition" to be consistent with the previous change to the "Clean fill standard" definition that removed the criteria (concentration limits) from that definition. The definitions of "Operator" and "Owner" are proposed to be deleted to eliminate redundancy because these terms are defined in Subchapter A. The definition of "PST-Waste Manifest" is proposed to be amended to replace "executive director" with "agency" and to delete "in order" to improve readability by removal of unnecessary words. The definition of "Person" is proposed to be deleted because this term is defined in Subchapter A. The definition of "Petroleum substance" is also proposed to be deleted to eliminate redundancy because this term is defined in Subchapter A. The definition of "Sole-source aquifer" is proposed to be amended to delete the phrase "of 1974" as unecessary to the citation, and to delete the last two sentences: "The Edwards Aquifer has been designated a sole-source aquifer by the United States Environmental Protection Agency. The Edwards Aquifer Recharge and Transition Zones are specifically those areas delineated on maps in the offices of the executive director." This amendment is proposed to clarify that the Edwards Aquifer is not the only sole-source aquifer. The definition of "Treatment" is proposed to be amended to delete the unnecessary words "in order" to improve readability and improve clarity and to delete the last sentence "The term treatment does not include the reduction of contaminant levels by dilution." The definition of "Underground storage tank" is proposed to be deleted to eliminate redundancy because this term is defined in Subchapter A.

Section 334.482, General Prohibitions, is proposed to be amended. The title of the section is proposed to be amended by replacing the word "Prohibitions" with "Requirements" to better reflect the contents of the section. Section 334.482(b) language is proposed to be deleted and replaced by new language which, along with new §334.482(c)-(f), is proposed to be added to clarify how a variance from any of the requirements in this subchapter may be obtained. The new language makes it clear who may obtain a variance, what procedures they must follow to request a variance, the role of the agency in the review process, and the standard of that review, the documentation that should be submitted to support the request, recordkeeping requirements, and the obligations of a person who has had a variance approved.

Section 334.484, Registration Required for Petroleum-Substance Waste Storage or Treatment Facilities, is proposed to be amended. Section 334.484(a) is proposed to be amended to insert "December 27, 1996" in place of "the effective date of these rules" to preserve and maintain the original meaning of the rules. Section 334.484(b) is proposed to be amended to replace "executive director" with "agency." Section 334.484(c) is proposed to be amended to insert "December 27, 1996" in place of "the effective date of these rules" to preserve and maintain the original meaning of the rules; to replace "executive director" and "commission" with "agency"; and to replace the term "shall" with the term "must" to improve readability. Section 334.484(c)(21) is proposed to be amended to replace "executive director" with "agency"; to insert "agency's cental office" in place of "executive director of the commission, and a copy shall be submitted to the commission's field office in the district where the proposed facility will be located" to clarify where the application should be submitted and to eliminate the need to send a copy to the region office. Section 334.484(d) is proposed to be amended to replace "shall" with "must" to improve readability. Section 334.484(e) is proposed to be amended to replace "executive director" with "agency." Section 334.484(f) is proposed to be amended to replace "shall" with "must" to improve readability; to replace "executive director's" with "agency's"; and to delete "and to the appropriate region office" to eliminate the need to submit a copy of the information to the region office. Section 334.484(h) is proposed to be amended to replace "executive director" with "agency."

Section 334.485, Suspension or Revocation of Registration, is proposed to be amended. Section 334.485(a)(5) is proposed to be amended to replace "executive director" with "agency." Section 334.485(b) is proposed to be amended to replace "he shall" with "the executive director will" to remove a gender specific word and to improve readability. Section 334.485(b)(1) and (2) is proposed to be amended to replace "shall" with "will" to improve readability; and §334.485(b)(3) is proposed to be amended to replace "shall" with "must" to improve readability.

Section 334.486, Denial of Application for Registration or Renewal, is proposed to be amended. The subsection designation "(a)" is proposed to be deleted because subsection (b) is proposed to be deleted; and "executive director" is proposed to be replaced with "agency." Section 334.486(3) is proposed to be amended to insert at the end "under Chapter 37, Subchapter K, of this title (relating to Financial Assurance Requirements for Class A or B Petroleum-Substance Contaminated Soil Storage, Treatment, and Reuse Facilities)" to reflect the new location of the financial assurance requirements for these facilities. Former §334.486(b) is proposed to be deleted because its language is legally inappropriate in this context.

Section 334.487, Renewal of Registration, is proposed to be amended. Section 334.487(b) is proposed to be amended to insert "agency will" in place of "commission shall." Section 334.487(c) is proposed to be amended to insert "agency will" in place of "executive director shall." Section 334.487(d) is proposed to be amended to insert "agency" in place of "executive director." Section 334.487(e) is proposed to be amended to insert "agency will" in place of "executive director shall" and to improve readability.

Section 334.488, Authorization for Class C and Class D Facilities, is proposed to be amended. This section is proposed to be amended to replace "Executive director" with "Agency."

Section 334.490, Notification and Mobilization Requirements for Class B Facilities, is proposed to be amended. Section 334.490(1) is proposed to be amended to replace "commission region field" with "agency regional", to use the latest designation for regional offices. Section 334.490(3)-(5) is proposed to be amended to replace "executive director" with "agency." Section 334.490(6) is proposed to be amended to replace "commission" with "agency."

Section 334.492, Public Notice, is proposed to be amended. Section 334.492(2) is proposed to be amended to replace "executive director" with "agency." Section 334.492(2)(F) is proposed to be amended to replace "Texas Natural Resource Conservation Commission" with "agency." Section 334.492(4)(E) is proposed to be amended to replace "executive director" with "agency." Section 334.492(5) is proposed to be amended to replace "commission's Austin" and "commission region" with "agency's central" and "agency regional", respectively, to use current agency terminology with regard to the central and regional offices.

Section 334.493, Public Meetings for Class A Facilities, is proposed to be amended. Section 334.493(a) is proposed to be amended to replace "executive director" with "agency" and to replace the gender specific word "his" with "its." Section 334.493(b) is proposed to be amended to replace "executive director" with "agency" and to replace "his or her" with "its" to remove gender specific terminology. Section 334.493(c) is proposed to be amended to replace "commission" with "agency" and to replace "executive director" with "agency." Section 334.493(d) is proposed to be amended to replace "executive director" with "agency."

Section 334.494, Closure and Facility Expansion, is proposed to be amended to replace "executive director" with "agency" to replace "executive director's" with "agency's" and to replace "region field" with "regional" to use current agency terminology.

Section 334.495, Location Standards for Class A Petroleum-Substance Waste Storage or Treatment Facilities, is proposed to be amended. Section 334.495(a) is proposed to be amended to replace "commission shall" with "agency will" and to improve readability. Section 334.495(b)(5) is proposed to be amended to replace "executive director" with "agency." Section 334.495(c) is proposed to be amended to replace "executive director" with "agency", and to replace "the Texas Natural Resource Conservation Commission" with "this agency" to improve readability. Section 334.495(d) is proposed to be amended to replace "executive director" with "agency", and to replace "his" and "he" with "its" and "it", respectively, to improve readability.

Section 334.496, Shipping Procedures Applicable to Generators of Petroleum-Substance Waste, is proposed to be amended. Section 334.496(a) is proposed to be amended to delete "in order" to remove some unnecessary words to improve readability. Section 334.496(a)(2) is proposed to be amended to replace "executive director" with "agency."

Section 334.497, Recordkeeping and Reporting Procedures Applicable to Generators, is proposed to be amended. Section 334.497(1) is proposed to be amended to replace "commission" with "agency." Section 334.497(5) and (6) is proposed to be amended to replace "executive director" with "agency."

Section 334.499, Shipping Requirements Applicable to Owners or Operators of Storage, Treatment, or Disposal Facilities, is proposed to be amended. Section 334.499(b)(2), (c)(2)(D), (3), and (d) is proposed to be amended to replace "executive director" with "agency."

Section 334.500, Recordkeeping Requirements Applicable to Owners or Operators of Storage, Treatment, or Disposal Facilities, is proposed to be amended. Section 334.500(a)(2) is proposed to be amended to replace "commission" with "agency"; §334.500(a)(3) is proposed to be amended to insert "agency's central office" in place of "executive director and to the commission's appropriate region office", to eliminate the requirement to send duplicate information to the agency's regional office. Section 334.500(b), (d), and (e)(7) is proposed to be amended to replace "executive director" with "agency."

Section 334.501, Additional Reports, is proposed to be amended to replace "executive director" with "agency."

Section 334.502, Design and Operating Requirements of Stockpiles and Land Surface Treatment Units, is proposed to be amended. Section 334.502(a)(2) and (f) is proposed to be amended to replace "executive director" with "agency."

Section 334.503, Reuse of Petroleum-Substance Waste, is proposed to be amended. Section 334.503(b) is proposed to be amended in several places to add back requirements on reuse of petroleum-substance waste that were mistakenly deleted with the adoption of new Chapter 350, Texas Risk Reduction Program, and instead should have been retained in this subchapter until implementation of the new Texas Risk Reduction Program on September 1, 2003. Section 334.503(b) is proposed to be amended to replace "shall" with "will" and "shall" with "must" to improve readability; to replace "executive director" with "agency"; and to delete the last wording "This information that shall be maintained under §334.503(c)(3)(A)-(C) of this section includes, but is not limited to:" to facilitate the addition of new §334.50(c)(1) and (2) in this section. In §334.503(b)(1) is proposed to provide the requirements for maintaining information after implementation of the Texas Risk Reduction Program on these wastes on September 1, 2003; and former §334.503(b)(1)-(7) is proposed to be renumbered to subparagraphs (A)-(G) to accommodate this change. Section 334.503(b)(2) is proposed to specify recordkeeping and reporting requirements before implementation of the Texas Risk Reduction Program. Section 334.503(c)(1) is proposed to provide reuse approval requirements for petroleum-substance waste reuse prior to implementation of the Texas Risk Reduction Program on these wastes; former §334.503(c)(1) and (2) is proposed to be renumbered to accommodate the insertion of new paragraph (1). Section 334.503(c), newly renumbered paragraph (2) is proposed to be amended to replace "executive director" with "agency." Section 334.503(c), newly renumbered §334.503(c)(3)(A) is proposed to be reorganized by deleting the sentences "The concentration of benzene, toluene, ethylbenzene, and total xylenes, or any other relevant chemicals of concern derived from the petroleum substance waste shall not exceed levels which are protective of human health and the environment as generally determined in accordance with Chapter 350 of this title (relating to Texas Risk Reduction Program Rule), and shall not be at such concentrations which compromises the integrity of the cold-mix asphalt product. Authorization for the facility shall also be obtained from all other appropriate federal, state, or local governing agencies. Authorization from the owner of the road or other area where the asphalt is to be utilized shall be obtained prior to laying the asphalt." In §334.503(c)(3)(A), two new clauses are proposed to add the criteria for reuse in cold-mix-emulsion before and after implementation of the Texas Risk Reduction Program on September 1, 2003. Section 334.503(c)(3)(B) is proposed to be reorganized by deleting the last three sentences and by creating two new clauses to provide the requirements for reuse in hot-mix asphalt before and after implementation of the Texas Risk Reduction Program on September 1, 2003. Section 334.503(c)(3)(C) is proposed to be reorganized by deleting the last three sentences and creating two new clauses to incorporate the requirements for reuse of petroleum-substance wastes in road base or parking lot stabilized base before and after implementation of the Texas Risk Reduction Program on September 1, 2003. Section 334.503(c)(3)(D) language is proposed to be deleted because §334.482(b) already states that a variance may be sought for requirements under this subchapter. Section 334.503(c)(3)(D) is proposed to partially reinstate language for reuse of petroleum-substance wastes in road base or parking lot stabilized base when the base will not be covered with asphalt or concrete (similar language was accidently deleted in the 1999 rulemaking which promulgated the Texas Risk Reduction Program rules), and in addition, establish a procedure that must be followed for the reuse of contaminated soil in road base or parking lot stabilized base prior to the implementation of the Texas Risk Reduction Program. Section 334.503(c)(3)(E) is proposed to partially reinstate language to determine when petroleum-substance wastes will be considered clean enough to be used as fill, and also, to establish a procedure that must be followed for the reuse of contaminated soil to be considered "clean fill" prior to the implementation of the Texas Risk Reduction Program on these wastes. In addition, language has been added to clarify that tankhold bedding and backfill for tank systems must follow the requirements of §334.46(a)(5) of this title (relating to Installation Requirements for New Tank Systems).

Section 334.504, Contaminant Assessment Program and Corrective Action, is proposed to be amended. Section 334.504(a)-(c) is proposed to be amended to insert "agency" in place of "executive director." Section 334.504(d) is proposed to be amended to insert "agency" in place of "executive director." Section 334.504(e) is proposed to be amended to insert "agency" in place of "executive director" and to insert "agency's central" in place of "commission's Austin" and to insert "agency regional" in place of "commission region" to incorporate current agency terminology.

Section 334.506, Contingency Plan, is proposed to be amended to replace "executive director" with "agency."

Section 334.507, Emergency Procedures, is proposed to be amended. Section 334.507(e)(2) is proposed to be amended to replace "local Texas Natural Resource Conservation Commission" with "agency" to improve rule readability. Section 334.507(j) and (k) is proposed to be amended to replace "executive director" with "agency."

Section 334.508, Closure Requirements Applicable to Class A and Class B Facilities, is proposed to be amended. Section 334.508(a), (c)(1), and (d) is proposed to be amended to replace "executive director" with "agency." Section 334.508(g) is proposed to be amended to replace "shall" with "must" to improve readability.

Subchapter L, Overpayment Prevention:

Subchapter L amendments are proposed to streamline the rules and to improve clarity and readability.

Section 334.531, Responsibility of Recipients of Money from the PSTR Fund and Persons Paid by Recipients of Money from the Petroleum Storage Tank Remediation Fund, is proposed to be amended. Section 334.531(a) is proposed to be amended to change "executive director" to "agency", and to delete "necessity of" to clarify that the work performed will be the subject of audit. Section 334.531(c) is proposed to be added to explain that failure to provide documentation or information requested during the audit may result in denial of the costs. The subsequent subsection was renumbered due to the addition of new §334.531(c). Newly renumbered §334.531(d) is proposed to be amended to change "executive director" to "agency."

Section 334.532, Payments, is proposed to be amended. Section 334.532(a) is proposed to be amended to change "executive director" to "agency." Section 334.532(b) is proposed to be changed to update the title of the cross reference to section 334.310 and to change "Texas Natural Resource Conservation Commission" to "agency."

Section 334.533, Audits, is proposed to be amended. The first sentence of this section is proposed to be deleted, and the second sentence is proposed to be amended to delete "generally accepted" and to add a reference to the statutory auditing standards at the end to more closely mirror the statutory audit requirements. Language in §334.533 is also proposed to be deleted to more closely mirror statutory audit requirements. Section 334.533 is also proposed to be amended to change the word "shall" to "may" and delete "a minimum" to add flexibility to the audit process within the requirements of the statute (TWC, §26.35735). Section 334.533(4) of this section is proposed to be amended to add a cross reference to §334.560, Reimbursable Cost Guidelines, and §334.309, Reimbursable Cost, and to delete the phrase "as those terms are defined by this chapter" because it is no longer necessary with the added cross references.

Section 334.534, Notice of Overpayment, is proposed to be amended. Section 334.534(a) is proposed to be amended to change "executive director" to "agency." Section 334.534(d) is proposed to be amended to delete a specific address that might change and instead specify the use of the address on the notice of overpayment. Section 334.534(e) is proposed to be amended to change "executive director" to "agency."

Section 334.535, Objections to the Notice of Overpayment and Formal Petition for Hearing, is proposed to be amended to change the word "shall" to "must" because its usage is not necessary to make rule requirements legally enforceable.

Section 334.537, Failure to Return Overpayment or Cooperate with Audit or Investigation, is proposed to be amended to change "commission" to "agency."

FISCAL NOTE

Jeff Horvath, Strategic Planning and Appropriations Division, has determined that for the first five-year period the proposed rules are in effect, there will be no significant fiscal implications for the agency or other units of state government as a result of administration or enforcement of the proposed amendments. Qualifying local taxing authorities that foreclose on properties with storage tanks may realize some reduction in cost due to their decreased environmental liability, the amount of which cannot be determined. In addition, due to the extension of deadlines for corrective action plans, some owner/operators will not see increases in their deductibles concerning reimbursement payments for corrective action at LPST sites.

The proposed amendments implement HBs 2109 (relating to limits on liability of a taxing unit for storage tanks), 2815 (relating to the petroleum storage tank program; providing a penalty), and 2816 (relating to the fee on delivery of certain petroleum products and programs for corrective actions in response to releases from petroleum storage tanks), 76th Legislature, 1999. The proposed rules limit environmental liability for qualifying local taxing authorities that foreclose on properties with storage tanks. In addition, the proposed rules create an annual self certification requirement whereby UST owners/operators must certify that their tanks meet certain technical and administrative requirements prior to accepting motor fuel deliveries. Transporters of motor fuel must observe a valid, current delivery certificate prior to delivering fuel.

Corrective action deadlines to access the Petroleum Storage Tank Reimbursement Fund are proposed to be extended without an increase in the deductible paid by the eligible owner or operator. The December 23, 1997 deductible deadline date was extended by 6 months and the December 23, 1998 deductible deadline was extended by twelve months. These extensions allow the owner/operator additional time before there is an increase in the owner/operator financial contribution. The legislation extended the expiration date of the Petroleum Storage Tank Reimbursement Fund an additional two years to September 1, 2003, and the expiration date for fee collection was extended by six months to March 1, 2002.

UST owners/operators will be required to certify on an annual basis which tanks are in compliance with the listed regulations and which tanks are not, and to post the annual TNRCC delivery certificate at each facility. Any increase in costs to comply with these new requirements are not anticipated to be significant. Costs incurred by UST owner/operators in getting their tanks into compliance with the administrative requirements and technical standards so that they may accurately submit the annual compliance self-certification to TNRCC are not costs associated with these proposed rules. Compliance with the agency rules containing the administrative requirements and technical standards is currently required.

The proposed rules would also clarify for local governments whether a taxing unit was liable for USTs acquired through the foreclosure of an ad valorem tax lien on real property. The rule would provide limits on liability of a taxing unit that has foreclosed an ad valorem tax lien on real property on which an UST is located.

PUBLIC BENEFIT

Mr. Horvath has also determined that for each year of the first five-years the proposed amendments to Chapter 334 are in effect, the public benefit anticipated from enforcement of and compliance with the proposed sections will be enhanced understanding by making the rules clearer and easier to read, limited environmental liability for qualifying local taxing authorities that foreclose on properties with storage tanks, the extension of deadlines to accomplish corrective action goals without an increase in deductible payments, faster reimbursement of corrective action expenses, and a longer time to receive corrective action expense reimbursements before expiration of the Petroleum Storage Tank Remediation Fund. Also, the self-certification provisions should achieve greater compliance with tank technical and administrative requirements which are designed to prevent and detect releases. UST owners/operators will be required to certify on an annual basis which tanks are in compliance with the listed regulations and which tanks are not, and to post the annual TNRCC delivery certificate at each facility. Any increase in costs to comply with these new requirements are not anticipated to be significant. Costs incurred by UST owner/operators in getting their tanks into compliance with the administrative requirements and technical standards, so that they may accurately submit the annual compliance self-certification to TNRCC, are not costs associated with these proposed rules. Compliance with the agency rules containing the administrative requirements and technical standards is currently required. Transporters must observe a valid, current delivery certificate for those USTs prior to delivering fuel. Transporter cost to verify self-certification will increase insignificantly with the number of motor fuel deliveries.

Therefore, there are no significant additional economic costs anticipated to any person required to comply with the proposed amendments. There may be an increase in cost to annually self-certify compliance with additional reporting requirements at tank registration renewal, which are not anticipated to be significant.

SMALL BUSINESS AND MICRO-BUSINESS ANALYSES

No adverse economic effects are anticipated to any small businesses or micro-businesses affected by the proposed rules. Many of the small or micro-businesses could be owners/operators of retail service stations or convenience stores. Any increase in cost to annually self-certify the compliance status of the USTs is not anticipated to be significant. The costs to transporters is also not anticipated to be significant. In addition, due to the extension of deadlines for corrective action plans, some owner/operators will not see increases in their deductibles concerning reimbursement payments for corrective action at LPST sites.

REGULATORY IMPACT ASSESSMENT

The commission has reviewed the proposed rulemaking in light of the regulatory impact analysis requirements of Texas Government Code, §2001.0225, and has determined that the rulemaking is not subject to §2001.0225 because it does not meet the definition of a "major environmental rule" as defined in that statute. "Major environmental rule" means a rule the specific intent of which is to protect the environment or reduce risks to human health from environmental exposure and that may adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, or the public health and safety of the state or a sector of the state. The proposed amendments to Chapter 334 are not anticipated to adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, or the public health and safety of the state or a sector of the state because the proposed amendments and repeals are intended to make the rules easier to read and understand, improve program efficiency, and also to implement state law requirements in HBs 2109, 2815, and 2816. Under HB 2815, owner/operators of certain USTs will have to annually certify that their tanks are in compliance with listed "administrative requirements and technical standards." There is no change to the obligation to comply with these existing requirements and technical standards.

While the proposal does not constitute a "major environmental rule", a discussion of the four factors listed at Texas Government Code, §2001.0225(a), will further clarify the nature of this rulemaking proposal. The proposed rules do not exceed a standard required by federal law. The principle new state law requirement is the compliance self-certification program established in HB 2815. Federal law at 40 Code of Federal Regulations (CFR) Part 281 requires that Texas have requirements in place to prevent and to detect releases and spills to maintain program delegation. The TNRCC has had rules in place that address these requirements, and the new self-certification program in this rulemaking proposal requires tank owners/operators to annually certify their compliance with these state rules. The rules proposed to implement HB 2815 do not exceed the standard set by that bill. Other proposed rule changes are intended to streamline and clarify TNRCC rules concerning AST and USTs, and do not exceed federal standards for program delegation. Also, the proposed rules do not exceed the authority given the agency in TWC and in amendments to it made through HB 2815, HB 2816, and HB 2109. In addition, the proposal does not conflict with any requirements of the delegation agreement between Texas and the United States Environmental Protection Agency on state implementation of the 40 CFR Part 280 UST program (as referenced in 40 CFR Part 281). Finally, this proposal does not adopt rules solely under the general powers of the agency. A general effort to streamline and clarify agency PST rules was undertaken as part of the Commissioners' ongoing regulatory reform effort, under the specific statutory authority of TWC, §§26.345, 26.351, 26.352, 26.3573(j), and 26.454.

TAKINGS IMPACT ASSESSMENT

The commission has prepared a takings impact assessment for this proposal under the Texas Government Code, §2007.043. The following is a summary of that assessment. The specific purpose of the rulemaking is to implement HBs 2109, 2815, and 2816 and their corresponding changes to the TWC and to do limited commissioner's regulatory reform amendments to streamline the rules, improve program efficiency, and improve clarity and readability. This action will not create a burden on private real property. The vast majority of the proposed new rules were written to establish a compliance self-certification program, as required by HB 2815. The rules proposed to create this program would institute a system whereby owners and operators of certain USTs share a responsibility to annually certify that those tank systems are in compliance with "administrative requirements and technical standards." The TNRCC rules which constitute "administrative requirements and technical standards" have been in place for years. Because the new certificating program will induce owners and operators of these USTs to achieve better compliance with these existing agency regulations, it will actually result in fewer parcels of private real property being burdened with contamination resulting from releases and spills. Certification itself will not burden, restrict, or limit an owner's right to property. The rules proposed to implement the remainder of the legislative bills also do not add substantive requirements that would burden private real property. In fact, the rules proposed to implement HB 2109 would make the overall rule chapter less stringent by limiting the environmental liability for qualifying local taxing authorities that foreclose on properties with storage tanks. The rules proposed as part of the commissioner's regulatory reform effort also do not create a burden on private real property, since they are written to streamline and to clarify existing rules. As a whole, this rulemaking will not be the cause of a reduction in market value of private real property, and does not create a burden on private real property and will not constitute a takings under the Texas Government Code, §2007.

While maintaining its assertion that this rulemaking action does not create a burden on, or restrict or limit, private real property, the agency believes that a number of exemption under Texas Government Code, §2007.003(b), describe situations which could be said to be applicable to the proposed rulemaking. To the extent that LPST sites constitute a "public or private nuisance", the compliance certification program being implemented in this proposal should lead to increased compliance with existing agency regulations that are designed to prevent and detect releases and spills of regulated substances. In addition, there are times when LPST sites constitute a "grave and immediate threat to life or property." As stated above, the compliance certification program that is being implemented in this proposal should lead to increased compliance with agency rules designed to prevent and detect releases and spills of regulated substances. Greater compliance with these rules will lead to fewer LPST sites, which in turn will reduce the number of such sites that would be classified as constituting an "emergency." Having proper release detection systems in place for USTs can make the difference between a small release that can be abated quickly versus a large release that can have serious impacts to human health and safety (e.g., vapor inhalation on-site and through transport via sanitary sewers, explosions, and drinking water impacts). LPST sites can constitute "real and substantial" threats to public health and safety, both in an emergency context and in the long term due to acute and carcinogenic effects. The compliance certification rules proposed to implement HB 2815 should serve to increase compliance with existing agency rules designed to prevent and detect releases and spills from tank systems. Increased compliance should reduce the number of LPST sites, and reduce the severity of the ones that do occur. This result can be said to "significantly advance the health and safety purpose."

COASTAL MANAGEMENT PROGRAM CONSISTENCY REVIEW

The commission has prepared a consistency determination for the proposed rules pursuant to 31 TAC §505.22, and has found that the proposed rulemaking is consistent with the applicable Texas Coastal Management Program (CMP) goals and policies. The rulemaking is subject to the CMP and must be consistent with applicable CMP goals and policies which are found in 31 TAC §501.12 and §501.14. The CMP goal applicable to the rules is the goal to protect, preserve, restore, and enhance the diversity, quality, quantity, functions, and values of Coastal Natural Resource Areas (CNRAs). CMP policies applicable to the rules include the administrative policies and the policies for specific activities related to construction and operation of solid waste treatment, storage, and disposal facilities. In particular, the CMP policy most applicable to these rules is to ensure that new solid waste facilities and areal expansions of existing solid waste facilities are sited, designed, constructed, and operated to prevent releases of pollutants that may adversely affect CNRAs and to comply with standards established under the Solid Waste Disposal Act, 42 United States Code, §§6801 et seq.

This rulemaking concerns regulation of USTs and some ASTs and petroleum-contaminated waste/soil treatment facilities and soil reuse.

The rulemaking contains new or amended requirements mandated by legislation/state law and limited regulatory reform amendments to streamline the rules and improve clarity and readability. This rulemaking does not significantly change petroleum-contaminated soil treatment facility and reuse requirements or storage tank technical and operating requirements beyond those required by federal or state law. Concerning safe and appropriate storage, management, and treatment of petroleum-contaminated soils, the standards are proposed to be adjusted to reflect good science gathered over many years experience since the original rule was first written. The original numbers were estimates projected to be appropriate, given the information available to the agency at the time those rules were promulgated. After several years of evaluating data, the agency is convinced that a new standard, which reflects the current agency risk-based approach to waste assessment and remediation, would be more technically sound while remaining protective of the environment. The tank compliance certification program is expected to increase compliance with rules designed to prevent and detect releases and spills, so that the coastal areas (like other parts of the state) should experience fewer instances of contamination, and those instances that do occur should be detected earlier so they can be abated earlier. Therefore, the commission has determined that this rulemaking is consistent with the applicable CMP goal and policies because the new or amended requirements are mandated by state law and the regulatory reform amendments do not have an adverse effect on the CNRAs. Interested persons may submit comments on the consistency of the proposed rules with the CMP during the public comment period.

PUBLIC HEARING

A public hearing on the proposed rules will be held in Austin on July 25, 2000, at 10:00 a.m. in Building E, Room 201S at the Texas Natural Resource Conservation Commission complex, located at 12100 Park 35 Circle. The hearing is structured for the receipt of oral or written comments by interested persons. Individuals may present oral statements when called upon in order of registration. Open discussion will not occur during the hearing; however, an agency staff member will be available to discuss the proposal 30 minutes prior to the hearing and answer questions before and after the hearing.

Persons with disabilities who have special communication or other accommodation needs who are planning to attend the hearing should contact the commission at (512) 239-4900. Requests should be made as far in advance as possible.

SUBMITTAL OF COMMENTS

Comments may be submitted to Angela Slupe, Office of Environmental Policy, Analysis, and Assessment, MC 205, P.O. Box 13087, Austin, Texas 78711-3087 or faxed to (512) 239-4808. Comments must be received by 5:00 p.m., August 1, 2000, and should reference Rule Log Number 1999-038-334-WS. For further information, please contact Jackie Hardee at (512) 239-2151.

Subchapter A. GENERAL PROVISIONS

30 TAC §§334.1-334.10, 334.12, 334.15, 334.17, 334.18

STATUTORY AUTHORITY

The amended sections are proposed under TWC, §5.103, which provides the commission authority to adopt any rules necessary to carry out its powers and duties under this code and other laws of this state and to adopt rules repealing any statement of general applicability that interprets law or policy; §5.105, which authorizes the commission to establish and approve all general policy of the commission by rule; and §26.011, which requires the commission to control the quality of water by rule. The amended sections are also proposed under TWC, §26.345, which provides the commission authority to develop a regulatory program and to adopt rules regarding USTs, §26.351, which provides the commission authority to adopt rules establishing the requirements for taking corrective action in response to a release from an UST or AST, and §26.454, which provides the commission authority to adopt rules for the licensing of installers and on-site supervisors, and continuing education requirements for installers and on-site supervisors.

The proposed sections implement TWC, Chapter 26, Subchapter I, Underground Storage Tanks and Subchapter K, Underground Storage Tank Installers.

§334.1.Purpose and Applicability.

(a)

Purpose. The purposes of this chapter are to:

(1)

provide a comprehensive regulatory program for hazardous substance and petroleum substance underground storage tank (UST) systems [ storing hazardous substances and petroleum substances ], and a limited regulatory program for petroleum product aboveground storage tanks (ASTs) [ storing certain petroleum products ], as prescribed by the Texas Water Code, Chapter 26, Subchapter I and Subchapter K ;

(2)-(4)

(No change.)

(b)

Applicability to USTs [ underground storage tanks ].

(1)

An UST [ underground storage tank ] system is [ shall be ] subject to all or part of the applicable regulations in this chapter only when such system:

(A)

meets the definition of UST [ underground storage tank ] system under §334.2 of this title (relating to Definitions);

(B)

contains, has contained, or will contain a regulated substance as defined under §334.2 of this title [ (relating to Definitions) ];

(C)

is not completely exempted from regulation[ , ] under §334.3(a) of this title (relating to [ Statutory ] Exemptions for Underground Storage Tanks (USTs) and UST Systems ); and

(D)

is not completely excluded from regulation under §334.4(a) of this title (relating to [ Commission ] Exclusions for Underground Storage Tanks (USTs) and UST Systems ).

(2)

The [ applicable ] requirements and provisions in this chapter are applicable [ shall apply ] to regulated UST [ underground storage tank ] systems (as described in paragraph

(1)

of this subsection), and to the registration, self-certification, design, construction, installation, operation, testing, maintenance, upgrading, recordkeeping, reporting, removal from service, release monitoring, release reporting and corrective action (including risk-based corrective action) , fee assessment, financial assurance in accordance with Chapter 37, Subchapter I of this title (relating to Financial Assurance for Petroleum Underground Storage Tank Systems) , and other applicable requirements associated with such systems, as more fully described in this chapter.

(3)

The [ applicable ] requirements and provisions in this chapter [ shall ] apply equally to all owners and operators of regulated UST [ underground storage tank ] systems (as described in paragraph (1) of this subsection), including individuals, trusts, firms, joint-stock companies, corporations, governmental corporations, partnerships, associations (including non-profit and charity organizations), states, municipalities, commissions, political subdivisions of a state, interstate bodies, consortiums, joint ventures, commercial and noncommercial entities, and the United States Government (including all of its departments), except as otherwise provided in this chapter.

(4)

The following types of underground tank systems are [ shall be ] subject to all or parts of the applicable regulations in this chapter if they meet the general qualifications for an UST [ underground storage tank ] system in paragraph (1) of this subsection:

(A)-(B)

(No change.)

(c)

Applicability to ASTs [ aboveground storage ].

(1)

An AST [ aboveground storage tank ] is [ shall be ] subject to the applicable regulations in this chapter only when such tank;

(A)

meets the definition of "aboveground storage tank" in §334.2 [ §334.122 ] of this title [ (relating to Definitions for ASTs) ];

(B)

contains, has contained, or will contain a "petroleum product" as defined in §334.2 [ §334.122 ] of this title [ (relating to Definitions for ASTs) ];

(C)

is not exempted from regulation under [ in ] §334.123 of this title (relating to [ Statutory ] Exemptions for Aboveground Storage Tanks (ASTs) [ ASTs ]); and

(D)

is not excluded from regulation under [ in ] §334.124 of this title (relating to [ Commission ] Exclusions for Aboveground Storage Tanks (ASTs) [ ASTs ]).

(2)

The [ applicable ] requirements and provisions in this chapter [ shall ] apply to regulated ASTs [ aboveground storage tanks ], and to the registration, installation notification, reporting, recordkeeping, release reporting and corrective action (including risk-based corrective action) , fee assessment, and other applicable requirements associated with such tanks, as more fully described in this chapter.

(3)

The applicable requirements and provisions in this chapter shall apply equally to all owners and operators of regulated ASTs [ aboveground storage tanks ], including individuals, trusts, firms, joint-stock companies, corporations, governmental corporations, partnerships, associations (including nonprofit and charity organizations), states, municipalities, commissions, political subdivisions of a state, interstate bodies, consortiums, joint ventures, commercial and noncommercial entities, and the United States government (including all of its departments), except as otherwise provided in this chapter.

(4)

The following types of ASTs [ aboveground tanks ] are [ shall be ] subject to the applicable regulations in this chapter if they meet the general qualifications for an AST [ aboveground storage tank ] in paragraph (1) of this subsection:

(A)-(B)

(No change.)

(5)

If a storage tank containing a petroleum product technically meets the definitions of both an AST [ aboveground storage tank ] and an UST [ underground storage tank ] under this chapter, then the tank will be considered an UST [ underground storage tank ], and must conform with all applicable requirements for USTs [ underground storage tanks ] in this chapter.

(6)

Consistent with the [ statutory ] exemption for heating oil tanks in §334.123(a)(2) of this title [ (relating to Statutory Exemptions for ASTs) ], an AST [ aboveground storage tank ] storing a petroleum product (such as kerosene or diesel) which is primarily used as a heating oil substitute for heating purposes on the premises where stored, and which is secondarily used as a motor fuel for the operation of internal combustion engines, is [ shall be ] exempt from the regulations of this chapter.

(d)

Applicability of specific sections to USTs [ underground storage tanks ] and ASTs [ aboveground storage tanks ].

(1)

USTs [ Underground storage tanks ] are [ shall be ] subject to all the applicable provisions of [ the following sections in ] this chapter , except Subchapter F of this chapter (relating to Aboveground Storage Tanks). Underground petroleum storage tanks are also subject to all applicable provisions of Chapter 37, Subchapter I of this title. [ : ]

[(A)

Subchapter A of this chapter (relating to General Provisions);]

[(B)

Subchapter B of this chapter (relating to Underground Storage Tank Fees);]

[(C)

Subchapter C of this chapter (relating to Technical Standards);]

[(D)

Subchapter D of this chapter (relating to Release Reporting and Corrective Action);]

[(E)

Subchapter E of this chapter (relating to Financial Responsibility);]

[(F)

Subchapter H of this chapter (relating to Interim Reimbursement Program); and]

[(G)

Subchapter I of this chapter (relating to Underground Storage Tank Contractor Certification and Installer Licensing).]

(2)

ASTs [ Aboveground storage tanks ] are [ shall be ] subject to all the applicable provisions of [ the following sections in ] this chapter , except :

(A)

§334.3 of this title (relating to Exemptions for Underground Storage Tanks (USTs) and UST Systems), §334.4 of this title (relating to Exclusions for Underground Storage Tanks (USTs) and UST Systems), §334.5 of this title (relating to General Prohibitions for Underground Storage Tanks (USTs) and UST Systems), §334.6 of this title (relating to Construction Notification for Underground Storage Tanks (USTs) and UST Systems), §334.7 of this title (relating to Registration for Underground Storage Tanks (USTs) and UST Systems), §334.8 of this title (relating to Certification for Underground Storage Tanks (USTs) and UST Systems), and §334.9 of this title (relating to Seller's Disclosure), and §334.10 of this title (relating to Reporting and Recordkeeping) [ this section and §334.2 of this title (relating to Definitions) ];

(B)

Subchapter B [ D ] of this chapter (relating to Underground Storage Tank Fees [ Release Reporting and Corrective Action ]);

(C)

Subchapter C [ F ] of this chapter (relating to UST Technical Standards [ Aboveground Storage Tanks ]); and

(D)

Subchapter I of this chapter (relating to Underground Storage Tank Contractor Registration and Installer Licensing) [ Subchapter H of this chapter (relating to Interim Reimbursement Program) ].

§334.2.Definitions.

The following words and terms, when used in this chapter, [ shall ] have the following meanings, unless the context clearly indicates otherwise.

(1)

Abandonment in-place--A method of permanent removal of an underground storage tank (UST) from service where the tank is left in the ground after appropriate preparation and filling with an acceptable solid inert material in accordance with the requirements of §334.55 of this title (relating to Permanent Removal From Service) .

(2)

Abatement--The process of reducing in sufficient degree or intensity the source of the release or impacted area, and potential fire, explosion, or vapor hazards, such that immediate threats to human health no longer exist. This includes the removal of all regulated substances from the aboveground or underground tank, and the removal of phase-separated products released from the tank.

(3)

[ (2) ] Aboveground release--Any release to the surface of the land or to surface water, including, but not limited to, releases from the aboveground portion of an UST [ underground storage tank ] system and releases associated with overfills and transfer operations during the dispensing, delivering, or removal of regulated substances into or out of an UST [ underground storage tank ] system.

(4)

Aboveground storage tank (AST)--A non-vehicular device, (including any associated piping), that is made of non-earthen materials; located on or above the surface of the ground, or on or above the surface of the floor of a structure below ground, such as mineworking, basement, or vault; and designed to contain an accumulation of petroleum products.

[(3)

Accidental release--Any sudden or nonsudden release of a petroleum substance from an underground storage tank that results in a need for corrective action and/or compensation for bodily injury or property damage neither expected nor intended by the tank owner or operator.]

(5)

[ (4) ] ACT-- A trademark of the former [ The ] Association for Composite Tanks , now a licensed trademark of the Steel Tank Institute .

(6)

[ (5) ] Allowable cost--As defined by Subchapter H, §334.308 of this title (relating to Allowable Costs and Restrictions on Allowable Costs [ Interim Reimbursement Program ]).

(7)

[ (6) ] Ancillary equipment--Any devices that are used to distribute, meter, or control the flow of petroleum substances or hazardous substances into or out of an UST [ underground storage tank ], including, but not limited to, piping, fittings, flanges, valves, and pumps.

(8)

[ (7) ] ANSI--American National Standards Institute , a nationally recognized organization which provides certifications and standards for consumer products and services .

(9)

[ (8) ] API--American Petroleum Institute , a nationally recognized organization which provides certifications and standards for petroleum equipment and services .

(10)

[ (9) ] Appropriate regional [ district ] office--The agency's regional [ commission's district ] field office which has jurisdiction for conducting authorized agency [ commission ] regulatory activities in the area where a particular UST system or AST system is located.

(11)

[ (10) ] ASTM--American Society of Testing and Materials , a nationally recognized organization which provides certifications and standards for products and services .

(12)

Backfill--The volume of materials or soils surrounding the UST bounded by the ground surface, walls, and floor of the tank pit.

(13)

[ (11) ] Below-ground release--Any release to the subsurface of the land or to groundwater, including, but not limited to, releases from the below-ground portions of an UST [ underground storage tank ] system and releases associated with overfills and transfer operations during the dispensing, delivering, or removal of regulated substances into or out of an UST [ underground storage tank ] system.

(14)

[ (12) ] Beneath the surface of the ground--Beneath the ground surface or otherwise covered with materials so that visual inspection is precluded.

[ (13)

Bodily injury--The meaning given to this term by applicable Texas law; however, this term shall not include those liabilities which, consistent with standard insurance industry practices, are excluded from coverage in liability insurance policies for bodily injury.]

[ (14)

Bulk storage tank--An underground storage tank having a capacity of 20,000 gallons or more.]

(15)-(16)

(No change.)

(17)

Change-in-service--A method of permanent removal from service involving the permanent conversion of a regulated UST [ underground storage tank ] to a tank which is not regulated under this chapter, where all regulated substances are properly removed by emptying and cleaning, and the tank is left in the ground for the storage of materials other than regulated substances.

(18)

Closure letter--A letter issued by the agency [ commission to the owner or operator ] which states that , based on the information available, the agency [ commission ] agrees that [ the owner or operator has completed the ] corrective action has been completed [ requirements ] for the referenced release in accordance with agency [ commission ] requirements. .

(19)

Commingled--A combination or mixture of a petroleum product and a substance other than a petroleum product (excluding soil and/or water).

[(19)

Commission--Texas Natural Resource Conservation Commission, or its predecessor or successor agencies, as applicable.]

(20)

Common carrier--With respect to delivery prohibitions and UST compliance self-certification only, a person (as defined in this section) who physically delivers a regulated substance into an UST directly from a cargo tank which is affixed or mounted to a self-propelled, towable, or pushable vehicle (e.g., wagon, truck, trailer, railcar, aircraft, boat, or barge).

(21)

[ (20) ] Composite tank--A single-wall or double-wall steel tank, to which a [ an external ] fiberglass-reinforced plastic laminate or cladding has been factory-applied to the external surface of the outer tank wall .

(22)

[ (21) ] Consumptive use--(With respect to heating oil) the utilization and consumption of heating oil on the premises where stored.

[(22)

Controlling interest--Direct ownership of at least 50% of the voting stock of another entity.]

(23)

(No change.)

(24)

Corrective action--Any assessment, monitoring, and remedial activities undertaken to investigate the extent of and to remediate contamination.

(25)

Corrective action plan (or remedial action plan)--A detailed plan developed to address site remediation of soil, groundwater, or surface water contamination that provides for required protection of human health, safety, and the environment. The selection of the most effective and efficient remedial method will be dictated by the nature and location of the release, the site soils, hydrogeological conditions, and the required degree of remediation. The remedial method selection should take into consideration such factors as cost, time, and state compliance requirements with each method. The title of any report which contains a corrective action plan must include the designation "remedial action plan."

(26)

[ (24) ] Corrosion specialist--A person who, by reason of a thorough knowledge of the physical sciences and the principals of engineering and mathematics acquired by a professional education and related practical experience, is qualified to engage in the practice of corrosion control on buried or submerged metal piping systems and metal tanks, and who is either:

(A)

certified as a corrosion specialist or a cathodic protection specialist by NACE International [ the National Association of Corrosion Engineers ]; or

(B)

licensed as a professional engineer by the Texas [ State ] Board of [ Registration for ] Professional Engineers in a branch of engineering that includes education and experience in corrosion control of buried or submerged metal piping systems and metal tanks.

(27)

[ (25) ] Corrosion technician--A person who can demonstrate an understanding of the principals of soil resistivity, stray current, structure-to-soil potential, and component electrical isolation measurements as relate to corrosion protection and control on buried or submerged metal tanks and metal piping systems; who is qualified by appropriate training and experience to engage in the practice of inspection and testing for corrosion protection and control on such systems, including the inspection and testing of all common types of cathodic protection systems; and who either:

(A)

has been certified by NACE International [ the National Association of Corrosion Engineers (NACE) ] as a corrosion technician, corrosion technologist, or senior corrosion technologist;

(B)

is employed under the direct supervision of a corrosion specialist (as defined in this section), where the corrosion specialist maintains responsible control and oversight over all corrosion testing and inspection activities; or

(C)

has been officially qualified as a cathodic protection test or, in strict accordance with the assessment and examination procedures prescribed by NACE International. [ ; or ]

[(D)

can otherwise demonstrate at least an equivalent level of proficiency, training, and experience as required for personnel meeting the requirements of subparagraphs (A), (B), or (C) of this definition.]

[(26)

Cost-effective work--Work of a type which is both effective in achieving the desired remediation result, and which of alternative types of effective work, is the least costly.]

(28)

[ (27) ] Date installation is complete--The date any regulated substance is initially placed in an UST [ underground storage tank ] or the date any petroleum product is initially placed in an AST [ aboveground storage tank ].

(29)

[ (28) ] Dielectric material--A material that does not conduct direct electrical current, as related to coatings, bushings, and other equipment and materials used with UST [ underground storage tank ] systems.

(30)

[ (29) ] Electrical equipment--Underground equipment which contains dielectric fluid which is necessary for the operation of equipment such as transformers and buried electrical cable.

(31)

[ (30) ] Emergency generator--A standby electrical generating system powered by an internal combustion engine (including a turbine), where such system is designed to supply temporary electrical service only when service from the normal or primary electrical source is disrupted. Such systems [ shall ] include, but are not necessarily limited to, those providing emergency electrical service for hospitals, life support systems, and other medical service facilities; telephone and electrical utilities; heating, lighting, ventilation, security, elevator, fire control, and other essential building operations systems; uninterruptible power systems; essential air conditioning and refrigeration; and motors, machinery, and controls used for other essential or critical purposes.

[(31)

EPA--The federal Environmental Protection Agency.]

(32)

Excavation zone--The space containing the UST [ underground storage tank ] system and backfill material, which is bounded by the ground surface and the walls and floor of the pit and trenches into which the UST [ underground storage tank ] system is placed at the time of installation.

[(33)

Executive director--The executive director of the commission.]

(33)

[ (34) ] Existing UST system--An UST [ underground storage tank ] system which is used or designed to contain an accumulation of regulated substances for which installation either had [ has ] commenced prior to December 22, 1988, or had [ has ] been completed on or prior to December 22, 1988. Installation will be considered to have commenced if the owner or operator had [ has ] obtained all federal, state, and local approvals or permits necessary to begin physical construction at the site or installation of the tank system, and if either a continuous on-site physical construction or installation program had [ has ] begun or the owner or operator had [ has ] entered into contractual obligations (which could not [ cannot ] not be canceled or modified without substantial loss) which required [ require ] that the physical construction at the site or installation of the tank system was [ is ] to be completed within a reasonable time.

(34)

[ (35) ] External release detection--A method of release detection which includes equipment or procedures designed to effectively monitor or measure for the presence of regulated substances in the excavation zone, soil, or other media outside of a single-wall or double-wall UST [ underground storage tank ] system.

(35)

[ (36) ] Facility--The site, tract, or other defined area where one or more UST [ underground storage tank ] systems or one or more AST systems are located[ , and which includes all adjoining contiguous land and associated improvements ].

[(37)

Facility owner--Any person who currently holds legal possession or ownership of a total or partial interest in an underground storage tank facility. The facility owner and the owner associated with an underground storage tank system may be the same person or may be different persons, depending on the specific arrangements at the facility.]

(36)

[ (38) ] Farm--A tract or tracts of land (including all associated structures and improvements) which are principally devoted to the raising of agricultural or other types of crops, domestic or other types of animals, or fish for the production of food, fiber, or other products or for other useful purposes, including fish hatcheries, rangeland, and plant nurseries with growing operations, but not including timber-growing land and operations dedicated primarily to recreational, aesthetic, or other non-agricultural activities (e.g., golf courses and parks).

(37)

[ (39) ] Farm tank--A tank located on a farm where the stored regulated substance is or will be utilized directly in the farm activities.

(38)

[ (40) ] Field-constructed tank--A tank which is not factory-assembled, and which is principally constructed, fabricated, or assembled at the same facility where the tank is subsequently [ to be ] placed into service.

[(41)

Financial reporting year--The latest consecutive 12-month period for which any of the following reports used to support a financial test is prepared:]

[(A)

a 10-K report submitted to the federal Securities and Exchange Commission;]

[(B)

an annual report of tangible net worth submitted to Dun and Bradstreet; or]

[(C)

annual reports submitted to the Energy Information Administration or the Rural Electrification Administration. Thus, this term may comprise a fiscal or a calendar year period.]

(39)

[ (42) ] Flow-through process tank--A tank through which regulated substances flow in a steady, variable, recurring, or intermittent manner during, and as an integral part of, a production process (such as petroleum refining, chemical production, and industrial manufacturing), but specifically excluding [ not including ] any tank used for the static storage of regulated substances prior to their introduction into the production process and any tank used for the static storage of regulated substances which are products or by-products of the production process.

(40)

[ (43) ] Free-product (or non-aqueous phase liquid) --A regulated substance in its free-flowing non-aqueous liquid phase at standard conditions of temperature and pressure (e.g., liquid not dissolved in water).

(41)

[ (44) ] Gathering lines--Any pipeline, equipment, facility, or building used in the transportation of oil or gas during oil or gas production or gathering operations.

(42)

[ (45) ] Hazardous substance--Any substance defined or listed in the federal Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA), §101(14), (42 United States Code §9601, et seq.), and which is not regulated as a hazardous waste under the federal Solid Waste Disposal Act, Subtitle C, (42 United States Code §6921, et seq.).

(43)

[ (46) ] Hazardous substance UST system--An UST [ underground storage tank ] system that contains an accumulation of either a hazardous substance, a mixture of two or more hazardous substances, or a mixture of one or more petroleum substances with one or more hazardous substances, and which does not meet the definition of a petroleum UST system in this section.

(44)

[ (47) ] Heating oil--A petroleum substance which is typically used in the operation of heating, boiler, or furnace equipment and which either is one of the following seven technical grades of fuel oil: Number 1, Number 2, Number 4-light, Number 4-heavy, Number 5-light, Number 5-heavy, and Number 6; is a residual fuel oil derivative of the refining process (such as Navy Special and Bunker C residual fuel oils); or is another fuel (such as kerosene or diesel) used for heating purposes as a substitute for one of the above fuel oils or residual fuel oil derivatives.

(45)

Hydraulic fluid--Any regulated substance that is normally used in a hydraulic lift system.

(46)

[ (48) ] Hydraulic lift tank--A tank holding hydraulic fluid for a closed-loop mechanical system that uses compressed air and hydraulic fluid to operate lifts, elevators, or [ and ] other similar devices.

(47)

[ (49) ] Impressed current system--A method of cathodic protection where a rectifier is used to convert alternating current to direct current, where the current then flows in a controlled electrically connected circuit to non-sacrificial anodes, then through the surrounding soil or backfill to the protected metallic structure or component, and back to the rectifier.

(48)

[ (50) ] In operation--The description of an in-service UST [ underground storage tank ] which is currently being used on a regular basis for its intended purpose.

(49)

[ (51) ] In service--The status of an UST [ underground storage tank ] beginning at the time that regulated substances are first placed into the tank and continuing until the tank is permanently removed from service by means of either removal from the ground, abandonment in-place, or change-in-service. An in-service UST may or may not contain regulated substances, and may be either in operation or out of operation at any specific time.

(50)

[ (52) ] Installer--A person who participates in or supervises the installation, repair, or removal of USTs [ underground storage tanks ].

(51)

[ (53) ] Inventory control--Techniques used to identify a loss of product that are based on volumetric measurements in the tank and reconciliation of those measurements with product delivery and withdrawal records.

(52)

Jacketed tank--A factory-constructed tank consisting of a single-wall or double-wall steel internal (or primary) tank that is completely enclosed in an external secondary-containment jacket made of noncorrodible material, and which is designed so that releases of stored substances from the internal tank can be contained and monitored within a liquid-tight interstitial space between the internal tank and the external jacket.

[(54)

Legal defense cost--Any expense that an owner or operator or provider of financial assurance incurs in defending against claims or actions brought:]

[(A)

by EPA or the state to require corrective action or to recover the costs of corrective action;]

[(B)

by or on behalf of a third party for bodily injury or property damage caused by an accidental release; or]

[(C)

by any person to enforce the terms of a financial assurance mechanism.]

(53)

[ (55) ] Lender--A state or national bank; a state or federal savings bank; a credit union; a state or federal savings and loan association; a state or federal government agency that customarily provides financing; or an entity that is registered with the Office of Consumer Credit Commissioner pursuant to Chapter 7, Title 79, Revised Statutes (Texas Civil Statutes, Article 5069-7.01, et seq.) if the entity is regularly engaged in the business of extending credit and if extending credit represents the majority of the entity's total business activity.

(54)

[ (56) ] Liquid trap--A collection device (such as a sump, well cellar, and other trap) which is used in association with oil and gas production, gathering, and extraction operations (including gas production plants) for the purpose of collecting oil, water, and other liquids, and which either may temporarily collect liquids for subsequent disposition or reinjection into a production or pipeline stream, or may collect and separate liquids from a gas stream.

(55)

Leaking petroleum storage tank (LPST) site--A site at which a confirmed release of a petroleum substance from an UST or AST has occurred. Petroleum substance contamination which results from multiple sources may be deemed as one LPST site by the agency.

(56)

[ (57) ] Maintenance--The normal and routine operational upkeep of UST [ underground storage tank ] systems necessary for the prevention of releases of stored regulated substances.

(57)

[ (58) ] Monitoring well--An artificial excavation constructed to measure or monitor the quantity or movement of substances, elements, chemicals, or fluids below the surface of the ground. The term does [ shall ] not include any monitoring well which is used in conjunction with the production of oil, gas, or any other minerals.

(58)

[ (59) ] Motor fuel--A petroleum substance which is typically used for the operation of internal combustion engines (including stationary engines and engines used in motor [ transportation ] vehicles , aircraft, and marine vessels), and which is one of the following types of fuels: motor [ leaded or unleaded ] gasoline, aviation gasoline, Number 1 diesel fuel, Number 2 diesel fuel, or [ and any grades of ] gasohol.

(59)

[ (60) ] NACE-- NACE International (formerly National Association of Corrosion Engineers) , a nationally recognized organization which provides certifications and standards for corrosion protection services .

[(61)

Necessary cost--Cost of necessary work.]

[(62)

Necessary work/technically necessary work--Work which is required and approved by the commission to assess or remediate a leaking petroleum storage tank site.]

(60)

[ (63) ] New UST system--An UST [ underground storage tank ] system which is used or designed to contain an accumulation of regulated substances for which installation [ has ] commenced after December 22, 1988; or an underground storage system which is converted from the storage of materials other than regulated substances to the storage of regulated substances after December 22, 1988.

(61)

[ (64) ] NFPA--National Fire Protection Association , a nationally recognized organization which provides certifications and standards for fire protection equipment and services .

(62)

Non-aqueous phase liquid (NAPL)--See "Free product (or non-aqueous phase liquid)" as defined in this section.

(63)

[ (65) ] Non-commercial purposes--(With respect to motor fuel) all purposes except resale.

(64)

[ (66) ] Noncorrodible material--A material used in the construction, maintenance, or upgrading of any component of an UST [ underground storage tank ] system which is designed to retain its physical and chemical properties without significant deterioration or failure for the operational life of the UST system when placed in contact with (and subjected to the resulting electrical and chemical forces associated with) any surrounding soil, backfill, or groundwater, any connected components constructed of dissimilar material, or the stored regulated substance.

(65)

[ (67) ] Observation well--A monitoring well or other vertical tubular structure which is constructed, installed, or placed within any portion of a UST excavation zone (including the tank hole and piping trench), and which is designed or used for the observation or monitoring of groundwater, or for the observation, monitoring, recovery, or withdrawal of either released regulated substances (in liquid or vapor phase) or groundwater contaminated by such released regulated substances.

(66)

[ (68) ] Occurrence--An incident [ accident ], including continuous or repeated exposure to conditions, which results in a release from an UST or AST or tank system [ undergroundstorage tank. This definition is intended to assist in the understanding of the financial responsibility regulations in Subchapter E of this chapter (relating to Financial Responsibility), and is not intended either to limit the meaning of occurrence in a way that conflicts with standard insurance usage or to prevent the use of other standard insurance terms in place of occurrence) .

(67)

[ (69) ] On the premises where stored--(With respect to heating oil) refers to the consumptive use of heating oil on the same property or site where the heating oil is stored.

(68)

[ (70) ] Operational life--The actual or anticipated service life of an UST [ underground storage tank ] system, which begins when regulated substances are first placed into the tank system and which continues until the tank system is permanently removed from service by means of either removal from the ground, abandonment in-place, or change-in-service.

(69)

[ (71) ] Operator--Any person in day-to-day control of, and [ or ] having responsibility for[ , ] the daily operation of the UST [ an underground storage tank ] system or the AST system, as applicable .

(70)

[ (72) ] Out of operation--The description of an in-service UST [ underground storage tank ] which is not currently being used on a regular basis for its intended purpose.

(71)

[ (73) ] Overfill--A release that occurs when an UST [ underground storage tank ] system is filled beyond its capacity, thereby resulting in a discharge of a regulated substance to the surface or subsurface environment.

(72)

[ (74) ] Owner--Any person who currently holds legal possession or ownership of a total or partial interest in an UST [ the underground storage tank ] system or an AST . For the purposes of this chapter, where the actual ownership of an UST system or an AST is either uncertain, unknown, or in dispute, the fee simple owner of the surface estate where the UST system or the AST is located shall be considered the UST system or AST owner, unless the owner of the surface estate can demonstrate by appropriate documentation (deed reservation, invoice, bill of sale, etc.) or by other legally-acceptable means that the UST system or AST is owned by others. Except as otherwise provided by the Texas Water Code, §§26.3514-26.3516, owner [ Owner ] does not include a person who holds an interest in an UST system or AST solely for financial security purposes unless, through foreclosure or other related actions, the holder of such security interest has taken legal possession of the UST system or AST .

(73)

[ (75) ] PEI--Petroleum Equipment Institute , a nationally recognized organization which provides certifications and standards for petroleum equipment and services .

(74)

[ (76) ] Permanent removal from service--The termination of the use and the operational life of an UST [ underground storage tank ] by means of either removal from the ground, abandonment in-place, or change-in-service.

(75)

[ (77) ] Person--An individual, trust, firm, joint-stock company, corporation, government corporation, partnership, association, state, municipality, commission, political subdivision of a state, an interstate body, a consortium, joint venture, commercial entity, or the United States government.

(76)

[ (78) ] Petroleum marketing facilities--All facilities at which a petroleum substance is produced or refined and all facilities from which a petroleum substance is sold or transferred to other petroleum substance marketers or to the public.

(77)

[ (79) ] Petroleum marketing firms--All firms owning petroleum marketing facilities. Firms owning other types of facilities with USTs as well as petroleum marketing facilities are considered to be petroleum marketing firms.

(78)

Petroleum product--A petroleum substance obtained from distilling and processing crude oil that is liquid at standard conditions of temperature and pressure, and that is capable of being used as a fuel for the propulsion of a motor vehicle or aircraft, including but not limited to motor gasoline, gasohol, other alcohol blended fuels, aviation gasoline, kerosene, distillate fuel oil, and Number 1 and Number 2 diesel. The term does not include naphtha-type jet fuel, kerosene-type jet fuel, or a petroleum product destined for use in chemical manufacturing or feedstock of that manufacturing.

(79)

[ (80) ] Petroleum substance--A crude oil or any refined or unrefined fraction or derivative of crude oil which is liquid at standard conditions of temperature and pressure (except for any substance regulated as a hazardous waste under the federal Solid Waste Disposal Act, Subtitle C, (42 United States Code §6921, et seq.)) . For the purposes of this chapter, a petroleum substance is [ shall be ] limited to one or a combination of the substances or mixtures in the following list [ except for any listed substance regulated as a hazardous waste under the federal Solid Waste Disposal Act, Subtitle C (42 United States Code §6921, et seq.) ]:

(A)

basic petroleum substances--crude oils, crude oil fractions, petroleum feedstocks, and petroleum fractions;

(B)

motor fuels--(see definition for "motor fuel" in this section);

(C)

aviation gasolines--Grade 80, Grade 100, and Grade 100-LL;

(D)

aviation jet fuels--Jet A, Jet A-1, Jet B, JP-4, JP-5, and JP-8;

(E)

distillate fuel oils--Number 1-D, Number 1, Number 2-D, and Number 2;

(F)

residual fuel oils--Number 4-D, Number 4-light, Number 4, Number 5-light, Number 5-heavy, and Number 6;

(G)

gas-turbine fuel oils--Grade O-GT, Grade 1-GT, Grade 2-GT, Grade 3-GT, and Grade 4-GT;

(H)

illuminating oils--kerosene, mineral seal oil, long-time burning oils, 300 oil, and mineral colza oil;

(I)

solvents--Stoddard solvent, petroleum spirits, mineral spirits, petroleum ether, varnish makers' and painters' naphthas, petroleum extender oils, and commercial hexane;

(J)

lubricants--automotive and industrial lubricants;

(K)

building materials--liquid asphalt and dust-laying oils;

(L)

insulating and waterproofing materials--transformer oils and cable oils;

(M)

used oils--(see definition for "used oil" in this section);

[(N)

any other petroleum-based material having physical and chemical properties similar to the previosly listed materials and receiving approval by the executive director for designation as a petroleum substance.]

(80)

[ (81) ] Petroleum UST system--An UST [ underground storage tank ] system that contains, has contained, or will contain a petroleum substance (as defined in this section), a mixture of two or more petroleum substances, or a mixture of one or more petroleum substances with very small amounts of one or more hazardous substances. In order for an [ a ] UST system containing a mixture of petroleum substances with small amounts of hazardous substances to be classified as a petroleum UST system, the hazardous substance must [ shall ] be at such a dilute concentration that the overall release detectability, effectiveness of corrective action, and toxicity of the basic petroleum substance is not altered to any significant degree.

(81)

[ (82) ] Pipeline facilities (including gathering lines)--New and existing pipeline rights-of-way, including any equipment, facilities, or buildings therein which are used in the transportation or associated treatment (during transportation) of gas or hazardous liquids (which include petroleum and other liquids as designated by the Secretary of the United States Department of Transportation), and which are regulated under the federal Natural Gas Pipeline Safety Act of 1968 (49 United States Code App. 1671, et seq.); the federal Hazardous Liquid Pipeline Safety Act of 1979 (49 United States Code App. 2001, et seq.); or (for intrastate pipeline facilities) the Texas Natural Resources Code, Chapters 111 or 117, or Texas Civil Statutes, Articles 6053-1 and 6053-2.

(82)

[ (83) ] Piping--All underground pipes in an UST system, including valves, elbows, joints, flanges, flexible connectors, and other fittings attached to a tank system through which regulated substances flow or in which regulated substances are contained or stored.

(83)

[ (84) ] Piping trench--The portion of the excavation zone at an UST [ underground storage tank ] facility which contains the piping system and associated backfill materials.

(84)

[ (85) ] Pressurized piping--Product or delivery piping in an UST [ underground storage tank ] system which typically operates at greater than atmospheric pressure.

(85)

[ (86) ] Professional engineer-- A person [ An individual ] who is currently [ registered and ] duly licensed by the Texas [ State ] Board of [ Registration for ] Professional Engineers to engage in the practice of engineering in the State of Texas.

[(87)

Property damage--The meaning given this term by applicable Texas law. This term shall not include those liabilities which, consistent with standard insurance industry practices, are excluded from coverage in liability insurance policies for property damage. However, such exclusions for property damage shall not include corrective action associated with releases from tanks which are covered by the policy.]

[(88)

Provider of financial assurance--An entity that provides financial assurance to an owner or operator of an underground storage tank through one of the mechanisms listed in Subchapter E of this chapter (relating to Financial Responsibility).]

(86)

[ (89) ] Qualified personnel--Persons who possess the appropriate competence, skills, and ability (as demonstrated by sufficient education, training, experience, and/or, when applicable, any required certification or licensing) to perform a specific activity in a timely and complete manner consistent with the applicable regulatory requirements and generally accepted industry standards for such activity.

(87)

[ (90) ] Radioactive materials--Radioactive substances or radioactive waste materials (e.g., high-level radioactive wastes and low-level radioactive cooling waters) which are classified as hazardous substances under the federal Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA), §101(14), 42 United States Code §9601, et seq., except for radioactive materials regulated as a hazardous waste under the federal Solid Waste Disposal Act, Subtitle C, 42 United States Code §6921, et seq.

[(91)

Reasonable cost--That amount or range which is commensurate with the level of corrective action necessary to assess and remediate a site, as determined by the executive director, based on an evaluation of technical effectiveness and cost effectiveness as well as typical costs expected for that particular corrective action under review, with respect to the necessary or required scope and complexity of the action. (As defined by 31 (later 30) TAC §334.309(a) of this title (Allowable Costs and Restrictions on Allowable Costs--Interim Period) until that section was repealed and replaced on June 7, 1993, by the adoption of Subchapter M of this chapter (relating to Reimbursable Cost Guidelines).]

(88)

[ (92) ] Regulated substance--An element, compound, mixture, solution, or substance that, when released into the environment, may present substantial danger to the public health, welfare, or the environment. For the purposes of this chapter, a regulated substance is [ shall be ] limited to any hazardous substance (as defined in this section), any petroleum substance (as defined in this section), any mixture of two or more hazardous substances and/or petroleum substances, and any other substance designated by the commission to be regulated under the provisions of this chapter.

[(93)

Reimbursable cost--As defined by Subchapter M, §334.560 of this title (relating to Reimbursable Cost Guidelines).]

(89)

[ (94) ] Release--Any spilling including overfills, leaking, emitting, discharging, escaping, leaching, or disposing from an UST or AST [ underground storage tank ] into groundwater, surface water, or subsurface soils.

(90)

[ (95) ] Release detection--The process of determining whether a release of a regulated substance is occurring or has occurred from an UST [ underground storage tank ] system.

(91)

[ (96) ] Repair--The restoration, renovation, or mending of a damaged or malfunctioning tank or UST system component.

(92)

[ (97) ] Residential tank--A tank located on property used primarily for dwelling purposes.

(93)

Responsible party--the person(s) designated by the agency, as allowed by law, as responsible for performing timely corrective action at a LPST site to the satisfaction of the agency.

(94)

Retail service station--A facility where flammable liquids used as motor fuels are stored and dispensed from fixed equipment into the fuel tanks of motor vehicles and where such dispensing is an act of retail sale.

(95)

[ (98) ] Risk-based corrective action--Site assessment or site remediation, the timing, type, and degree of which is determined according to case-by-case consideration of actual or potential risk to public health from environmental exposure to a regulated substance released from a leaking UST [ underground ] or AST [ aboveground storage tank ].

[ (99)

SARA--Superfund Amendments and Reauthorization Act of 1986.]

(96)

[ (100) ] Secondary containment--A containment method by which a secondary wall , jacket, or barrier is installed around the primary storage vessel (e.g., tank or piping) in a manner designed to prevent a release from migrating beyond the secondary wall or barrier before the release can be detected. Secondary containment systems include, but are not limited to : double-wall tank and/or piping systems, and [ , ] impervious liners , jackets, containment boots, sumps, or vaults surrounding a primary (single-wall) tank and/or piping system[ , and double-wall tank and/or piping systems ].

(97)

[ (101) ] Septic tank--A water-tight covered receptacle designed to receive or process, through liquid separation or biological digestion, the sewage discharged from a building sewer.

(98)

[ (102) ] Spill--A release of a regulated substance which results during the filling, placement, or transfer of regulated substances into an [ a ] UST or during the transfer or removal of regulated substances from an [ a ] UST system.

(99)

[ (103) ] Standard conditions of temperature and pressure--A temperature of 60 degrees Fahrenheit and an atmospheric pressure of 14.7 pounds per square inch absolute.

(100)

[ (104) ] STI--Steel Tank Institute , a nationally recognized organization which provides certifications and standards for steel tanks .

(101)

[ (105) ] Stormwater collection system--The piping, pumps, conduits, and any other equipment necessary to collect and transport surface water runoff resulting from precipitation to and from retention areas and into natural or man-made drainage channels.

[(106)

Substantial business relationship--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 guarantee contract is issued incident to that relationship if it arises from and depends on existing economic transactions between the guarantor and the owner or operator.]

(102)

[ (107) ] Suction piping--Product or delivery piping in an UST [ underground storage tank ] system which typically operates below atmospheric pressure.

(103)

[ (108) ] Sump--Any man-made pit or reservoir that meets the definition of a tank (including any connected troughs or trenches) that serves to [ temporarily ] collect and temporarily store regulated substances.

(104)

[ (109) ] Surface impoundment--A natural topographic depression, man-made excavation, or diked area formed primarily of earthen materials (but possibly lined with man-made materials) that is designed to hold an accumulation of regulated substances.

[ (110)

Tangible net worth--The tangible assets that remain after deducting liabilities; such assets do not include intangibles such as goodwill and rights to patents or royalties. For purposes of this definition, assets means all existing and all probable future economic benefits obtained or controlled by a particular entity as a result of past transactions.]

(105)

[ (111) ] Tank--A stationary device (generally exclusive of any associated ancillary equipment) designed or used to contain an accumulation of regulated substances which is constructed of a non-earthen material (e.g., concrete, steel, or plastic) that provides structural support.

(106)

[ (112) ] Tank hole--The portion of the excavation zone at an UST [ underground storage tank ] facility which contains the tanks and associated backfill materials.

(107)

[ (113) ] Tank system--An UST [ underground storage tank ] system.

(108)

Taxing unit--any local governmental entity or political subdivision of the State of Texas, which is legally authorized by state law to levy, assess, and collect ad valorem taxes on property in Texas.

(109)

[ (114) ] Temporary removal from service--The procedure by which an [ a ] UST system may be temporarily taken [ kept ] out of operation without being [ required to be ] permanently removed from service.

(110)

[ (115) ] Tightness test (or tightness testing)--A procedure for testing and analyzing [ the ability of ] a tank or piping system to determine whether the system(s) is capable of preventing the [ contain the stored substance, to prevent any ] inadvertent release of a stored substance into the environment[ , and to prevent the intrusion of groundwater into a tank or piping system ].

[(116)

TNRCC--Texas Natural Resource Conservation Commission, or "commission" as referenced in this chapter.]

[ (117)

TWC--Texas Water Commission, abolished after August 31, 1993, and now refers to the Texas Natural Resource Conservation Commission (TNRCC).]

(111)

[ (118) ] UL--Underwriters Laboratories, Inc. , a nationally recognized organization which provides certifications and standards for consumer products and services.

(112)

[ (119) ] Underground area--An underground room, basement, cellar, shaft, or vault, which provides enough space for physical inspection of the exterior of a tank or tank system situated on or above the surface of the floor.

(113)

[ (120) ] Underground storage tank--Any one or combination of underground tanks and any connecting underground pipes used to contain an accumulation of regulated substances, the volume of which, including the volume of the connecting underground pipes, is 10% or more beneath the surface of the ground.

(114)

[ (121) ] Underground storage tank system--An UST [ underground storage tank ], all associated underground piping and underground ancillary equipment, spill and overfill prevention equipment, release detection equipment, corrosion protection system, secondary containment equipment (as applicable), and all other related systems and equipment.

(115)

[ (122) ] Unsaturated zone--The subsurface zone containing water under pressure less than that of the atmosphere (including water held by capillary forces within the soil) and containing air or gases generally under atmospheric pressure. This zone is bounded at the top by the ground surface and at the bottom by the upper surface of the zone of saturation (i.e., the water table).

(116)

[ (123) ] Upgrading--The addition, improvement, retrofitting, or renovation of an existing UST system with equipment or components as required to meet the corrosion protection, spill and overfill prevention, and release detection requirements of this chapter.

(117)

[ (124) ] Used oil--Any oil or similar petroleum substance that has been refined from crude oil, used for its designed or intended purposes, and contaminated as a result of such use by physical or chemical impurities; and including spent motor vehicle and aircraft lubricating oils (e.g., car and truck engine oil, transmission fluid, and brake fluid), spent industrial oils (e.g., compressor, turbine, bearing, hydraulic, metalworking, gear, electrical, and refrigerator oils), and spent industrial process oils.

(118)

[ (125) ] UST--An underground storage tank (as defined in this section).

(119)

[ (126) ] UST system--An underground storage tank system (as defined in this section).

(120)

[ (127) ] Vent lines--All pipes including valves, elbows, joints, flanges, flexible connectors, and other fittings attached to a tank system, which are intended to convey the vapors emitted from a regulated substance stored in an UST [ underground storage tank ] to the atmosphere.

(121)

[ (128) ] Wastewater collection system--The piping, pumps, conduits, and any other equipment necessary to collect and transport domestic, commercial, or industrial wastewater to and from any facilities or areas where treatment of such wastewater is designated to occur.

(122)

[ (129) ] Wastewater treatment tank--A tank that is designed to receive and treat an influent wastewater through physical, chemical, or biological methods.

§334.3.[ Statutory ] Exemptions for Underground Storage Tanks (USTs) and UST Systems .

(a)

Complete exemption. The following underground tanks and containment devices (including any connected piping) are completely exempt from regulation under this chapter[ , as provided under the Texas Water Code, §26.344 ]:

(1)-(7)

(No change.)

(8)

transformers or other electrical equipment that contains a regulated substance and that is used in the transmission of electricity, to the extent that such a transformer or equipment is exempted by the United States Environmental Protection Agency under Title 40 Code of Federal Regulations, Part 280;

(9)-(11)

(No change.)

(b)

Partial exemption. As provided under the Texas Water Code (TWC) , §26.344(e), in-ground hydraulic lifts that use a compressed air/hydraulic fluid system and which hold less than 100 gallons of hydraulic oil are exempt from regulation under this chapter, except that such lifts [ shall ] remain subject to the release reporting and corrective action requirements under the TWC [ Texas Water Code ], §26.351, and Subchapter D of this chapter (relating to Release Reporting and Corrective Action).

(c)

Upon request by the agency, the owner and operator of a tank claimed to be exempted under this section must provide appropriate documentation or other information in a timely manner to support that claim.

§334.4.[ Commission ] Exclusions for Underground Storage Tanks (USTs) and UST Systems .

(a)

Complete exclusions. In addition to the tanks exempted from regulation under §334.3 of this title (relating to [ Statutory ] Exemptions for Underground Storage Tanks (USTs) and UST Systems ), the following USTs [ underground storage tanks ] are completely excluded from regulation under this chapter [ by commission directive ]:

(1)

any UST [ underground storage tank ] system containing a hazardous listed waste or identified under the federal Solid Waste Disposal Act, Subtitle C, (42 United States Code §6921, et seq.), or containing a mixture of such hazardous waste and other regulated substances, where such system is already subject to regulation under the federal Solid Waste Disposal Act, Subtitle C;

(2)-(3)

(No change.)

(4)

emergency spill protection or emergency overflow containment tanks, including certain sumps and secondary containment systems, which are used solely for the temporary storage or containment of regulated substances resulting from a leak, spill, overfill, or other unplanned release, and where the regulated substances are routinely removed within 48 hours of the discovery of the release; provided [ however, ] that such tanks must [ shall ] be inspected for a release no less than once every month;

(5)

UST [ underground storage tank ] systems which during their entire operational life have exclusively contained only [ contain ] regulated substances at such dilute concentrations that any release would not pose any significant threat to human health and safety or the environment.

(b)

Partial exclusions. The following USTs [ underground storage tanks ] are subject to all provisions of this chapter, except for Subchapter C of this chapter (relating to Technical Standards), Chapter 37, Subchapter I [ E ] of this title [ chapter ] (relating to Financial Assurance for Petroleum Underground Storage Tank Systems [ Responsibility ]), and the certification requirements of §334.8 of this title (relating to Certification for Underground Storage Tanks (USTs) and UST Systems ):

(1)

(No change.)

(2)

any UST [ underground storage tank ] system that contains radioactive substances, where such system is regulated by the federal Nuclear Regulatory Commission (or its successor) under the provisions of the Atomic Energy Act of 1954 (42 United States Code §2011, et seq.);

(3)

any UST [ underground storage tank ] system that contains fuel used solely to power an emergency electrical generator system at a nuclear power generation system facility regulated by the federal Nuclear Regulation Commission (or its successor) under the provisions of the Title 10 Code of Federal Regulations, [ Title 10, ] Part 50, Appendix A.

(c)

Other exclusion. In addition to the partial exemption for hydraulic lifts covered under §334.3(b) of this title [ (relating to Statutory Exemptions) ], all other in-ground hydraulic lifts that use a compressed air/hydraulic fluid system and which hold 100 gallons or more of hydraulic oil are similarly excluded from regulation under this chapter, except that such lifts [ shall ] remain subject to the release reporting and corrective action requirements under Subchapter D of this chapter (relating to Release Reporting and Corrective Action).

(d)

Upon request by the agency, the owner and operator of a tank claimed to be excluded under this section must provide appropriate documentation or other information in a timely manner to support that claim.

§334.5.General Prohibitions for Underground Storage Tanks (USTs) and UST Systems .

(a)

Design prohibitions . On or after September 1, 1987, no person may [ shall ] install or have installed an underground storage tank (UST) system for the purpose of storing or otherwise containing regulated substances unless such UST [ underground storage tank ] system, whether of single-wall or double-wall construction, meets the following standards.

(1)

The UST [ underground storage tank ] system must [ shall ] prevent releases due to corrosion or structural failure for the operational life of the UST [ underground storage tank ] system.

(2)

All components of the UST [ underground storage tank ] system must [ shall ] be either cathodically protected against corrosion, constructed of noncorrodible material, constructed of a steel material which has been clad with a noncorrodible material, or must [ shall ] be otherwise designed and constructed in a manner that prevents [ shall prevent ] the release or threatened release of any stored substances.

(3)

The UST [ underground storage tank ] system must [ shall ] be constructed of or lined with a material that is compatible with the stored substance.

(b)

Delivery prohibitions .

(1)

Except as provided under paragraphs (2) and (3) of this subsection, no common carrier (as defined in §334.2 of this title (relating to Definitions) shall deposit any regulated substance into an UST system regulated under this chapter unless the owner or operator has a valid, current delivery certificate issued by the agency covering that system. The delivery certificate is a combination of the registration certificate referenced under §334.7 of this title (relating to Registration for Underground Storage Tanks (USTs) and UST Systems) and the compliance self-certification document referenced under §334.8(c)(5) of this title (relating to Certification for Underground Storage Tanks (USTs) and UST Systems). [ Except as provided under paragraph (2) of this subsection, on or after January 1, 1990, no person shall deposit or have deposited any regulated substance into an underground storage tank system unless such system is registered with the commission under §334.7 of this title (relating to Registration). Prior to the deposit of any regulated substance into an underground storage tank, the owner or operator shall provide evidence of registration as necessary to meet the provisions of this paragraph. ]

(2)

For new or replacement UST systems, only during the initial period ending 90 days after the date that regulated substance is first deposited into the new or replacement system(s), a common carrier may accept, as adequate to meet the requirements of paragraph (1) of this subsection, documentation that the owner or operator has a "temporary delivery authorization" (as defined in §334.8(c)(5)(D) of this title) issued by the agency for the facility at which the new or replacement UST system(s) exist. [ The prohibited delivery of regulated substances shall not be applicable to deliveries into a new or replacement UST system occurring within 30 days of the first deposit of regulated substances. ]

(3)

The requirement to observe a Texas Natural Resource Conservation Commission (TNRCC) delivery certificate before delivering to an UST regulated under §334.8(c)(2) of this title will phase-in according to the schedule in §334.8(c)(2) of this title.

(4)

A common carrier delivering a regulated substance into an UST system may accept the following documentation as adequate:

(A)

the original, valid, current delivery certificate (or temporary delivery authorization, if applicable) issued by the agency; or

(B)

a legible copy of the valid, current delivery certificate (or temporary delivery authorization, if applicable).

(5)

If in the exercise of good faith, a common carrier who deposits a regulated substance into an UST system is first presented with an apparently valid, current TNRCC delivery certificate (or temporary delivery authorization, if applicable) represented by the UST owner or operator to meet the requirements of paragraph (1) of this subsection, this will be considered prima facia evidence of compliance by that common carrier with this subsection.

[(c)

Notification. No person shall perform any installation, replacement, removal, change-in-service, abandonment in-place, or any other major construction related to an underground storage tank system unless and until the commission has been provided prior notification of such activity in accordance with §334.6 of this title (relating to Construction Notification).]

[(d)

Registration. On or after September 1, 1987, no person shall own or operate an underground storage tank which contains or has contained a regulated substance unless such underground storage tank has been properly registered with the commission in accordance with §334.7 of this title (related to Registration), except for:]

[(1)

underground storage tanks completely exempted or partially exempted from regulation under §334.4(a) or (c) of this title (relating to Statutory Exemptions);]

[(2)

underground storage tanks completely excluded or partially excluded from regulation under §334.4(a) or (c) of title (relating to Commission Exclusions); and]

[(3)

underground storage tanks which are permanently out of service and which either:]

[(A)

were removed from the ground before May 8, 1986; or]

[(B)

remain in the ground, but were emptied, cleaned, and filled with solid inert materials on or before January 1, 1974, in accordance with accepted industry practices in effect at the time the UST was taken out of operation;]

[(4)

underground storage tanks which are out of operation and empty of regulated substances at the time of their discovery, provided that:]

[(A)

the facility owner can reasonably demonstrate no prior knowledge of the existence of the USTs; and]

[(B)

the USTs are permanently removed from service in accordance with §334.55 of this title (relating to Permanent Removal from Service) no later than September 29, 1990, or within 60 days of their discovery, whichever is later.]

§334.6.Construction Notification for Underground Storage Tanks (USTs) and UST Systems .

(a)

General requirements.

(1)

Beginning September 1, 1987, any person who intends either to install a new or replacement underground storage tank (UST) , to remove an UST [ underground storage tank ] from the ground, or to conduct a permanent abandonment in-place of an UST [ underground storage tank ] must [ shall ] comply with the notification requirements of this section prior to initiating such activity.

(2)

On or after September 29, 1989 [ the effective date of this subchapter ], any person who intends to perform any construction activity listed in subsection (b)(1) of this section must [ shall ] comply with the notification requirements of this section prior to initiating such activity.

(3)

In addition to the construction notification requirements of this section, the owner or operator of an existing or proposed UST [ underground storage tank ] system that is located or will be located in the designated recharge zone or transition zone of the Edwards Aquifer must [ shall ] also secure the requisite approval from the agency [ executive director ] prior to conducting certain regulated UST [ underground storage tank ] activities, as prescribed under Chapter 213 [ 313 ] of this title (relating to Edwards Aquifer).

(4)

Any UST [ underground storage tank ] construction activity performed or completed pursuant to a notification submitted under the provisions of this section must [ shall ] meet the applicable technical standards and procedural requirements under Subchapter C of this chapter (relating to Technical Standards).

(5)

In situations where a proposed UST [ underground storage tank ] construction activity is necessitated by a suspected or confirmed release of regulated substances, or where the activity contributes to or causes such a release, the owner or operator must [ shall ] comply with the release reporting, investigation, and corrective action requirements of Subchapter D of this chapter (relating to Release Reporting and Corrective Action).

(6)

Construction notifications required under this section may be provided to the agency's [ commission's ] central office in Austin or to the agency's [ commission's ] appropriate regional [ district ] office in the area of the activity, unless otherwise specified in this section. The official date of notification must [ shall ] be the date on which the notification is first received in an agency [ a commission ] office.

(7)

Construction notification required under this section must [ shall ] be provided by the owner or operator, or an authorized agent or representative of the owner or operator (e.g., a contractor or consultant who has contracted for such construction activity) [ , or the contractor or consultant retained for such construction activity ]. Construction notifications filed by unauthorized persons are [ shall be ] null and void.

(b)

Notification for major construction activities.

(1)

Applicable activities.

(A)

For the purposes of this section, a major UST [ underground storage tank ] construction activity includes [ shall include ] any of the following:

(i)-(viii)

(No change.)

(B)

The requirements of this section are [ shall ] not [ be ] applicable to routine and minor maintenance activities related to the tank and piping systems, such as tightening loose fittings and joints, adjusting and calibrating equipment, conducting routine inspections and tests, and the substitution or in-kind replacement of any obsolete or malfunctioning UST system component for any purpose other than required upgrading.

(2)

Filing requirements. Except as provided under subsection (c) of this section, any owner or operator [ person ] who intends to perform a major UST [ underground storage tank ] construction activity as described in paragraph (1) of this subsection must [ shall ] file a written notification with the agency [ executive director ] at least 30 days prior to initiating the activity.

(A)

Such notification should be submitted on the agency's [ commission's ] authorized form, as described in paragraph (6) of this subsection.

(B)

When requested by the agency [ executive director ], any person who intends to perform a major UST [ underground storage tank ] construction activity must [ shall ] also submit additional supporting information to assure that the construction activity is in compliance with the requirements of this chapter. Supporting information which may be requested by the agency [ executive director ] includes, but is [ shall ] not [ be ] limited to, the following items:

(i)-(x)

(No change.)

(C)

Between 24 and 72 hours prior to the scheduled time of initiation of the proposed activity, the owner or operator must [ shall ] contact the agency's [ commission's ] appropriate regional [ district ] office in the area of the activity to confirm the time of the initiation of the proposed activity. Any revisions to the proposed construction start date must [ shall ] be in accordance with paragraph (3) of this subsection.

(3)

Rescheduling. If after the submittal of the initial construction notification, the owner or operator determines that a revision to the previously reported scope or start date for the construction is necessary, the owner or operator must [ shall ] immediately report the revised construction information to the commission's appropriate regional [ district ] office in the area of the activity.

(A)

If an earlier start date is proposed, and if this date is less than 30 days from the original notification date, then the owner or operator must [ shall ] comply with the requirements of paragraph (4) of this subsection.

(B)

An owner or operator may revise the proposed construction start to a later date as necessary, provided that the agency's [ commission's ] appropriate regional [ district ] office is notified, and provided that original written notifications are properly renewed upon expiration in accordance with paragraph (5) of this subsection.

(4)

Waiver requests. Normally a notification period of at least 30 days is [ shall be ] required prior to the initiation of any major UST [ underground storage tank ] construction activity. However, if after the submittal of the construction notification, the owner or operator has good cause for an accelerated construction schedule, then the owner or operator may request approval of an earlier construction start date. Such request must [ shall ] be made directly to the agency's [ commission's ] appropriate regional [ district ] office in the area of the activity. The regional director [ district manager ] (or the director's [ manager's ] designated representative) has [ shall have ] the authority to approve or deny such requests, and such decision will [ shall ] be based on the following criteria:

(A)

good cause shown by the owner or operator for an earlier construction start date; and

(B)

the ability of agency [ commission ] personnel to arrange and schedule an adequate inspection of the activity.

(5)

Expiration. A written construction notification for a major UST [ underground storage tank ] construction activity is [ shall be ] valid for only 180 days after the original notification date or 150 days after the originally anticipated construction start date, whichever is earlier. If the proposed construction has not commenced within this period, the original notification will [ shall ] expire. If the owner or operator still plans to perform the construction after the expiration of this period, a new and updated construction notification form must [ shall ] be filed.

(6)

Notification form.

(A)

Any person who intends to perform a major UST [ underground storage tank ] construction activity (as described in paragraph (1) of this subsection) must [ shall ] provide all the applicable construction notification information indicated on the agency's [ commission's ] authorized construction notification form.

(B)

The construction notification form must [ shall ] be filled out [ as ] completely and accurately [ as possible ]. Upon completion, the form must [ shall ] be dated and signed by the owner , the operator, or the authorized representative of the owner or operator [ owner's designated representative ], and must [ shall ] be timely filed in accordance with subsection (a)(5) of this section.

(c)

Alternative notification procedures.

(1)

Only for UST [ underground storage tank ] construction activities involving situations described under paragraph (2) of this subsection, the owner or operator may comply with the following alternative notification and reporting procedures in lieu of the normal notification requirements of subsection (b) of this section.

(A)

The owner or operator must [ shall ] provide verbal or written notification to the agency [ commission ] as soon as possible prior to initiating the construction activity. Such notification must [ shall ] be submitted directly to the agency's [ commission's ] appropriate regional [ district ] office in the area of the activity.

(B)

After providing the construction notification prescribed under subparagraph (A) of this paragraph, the owner or operator may proceed with the construction activity, as directed by the regional director [ district manager ] (or the regional director's [ manager's ] designated representative). The owner or operator must [ shall ] maintain detailed records of the construction. No later than 30 days after completion of the construction, the owner or operator must [ shall ] submit to the agency [ commission ] a detailed report describing the activity. If the agency [ commission ] determines that the information in such report is insufficient to assure compliance with the applicable requirements of this chapter, then the owner or operator may be required to submit additional information to demonstrate such compliance.

(2)

The alternative notification procedures of paragraph (1) of this subsection may be used only when the following situations occur:

(A)

when an owner or operator of an UST [ underground storage tank ] can demonstrate that a release or suspected release of a regulated substance has occurred or is likely to occur as a result of the operation of the UST [ underground storage tank ], when such release is considered an immediate threat to human health or safety or the environment, and when the owner or operator can demonstrate that the expeditious initiation and completion of the proposed construction activity is necessary to prevent or abate such release;

(B)

when an out-of-operation UST [ underground storage tank ] system is discovered during unrelated construction activities (e.g., the construction of building excavations, streets, highways, utilities, etc.), when the property owner can reasonably demonstrate no prior knowledge of the existence of the tank, when the expeditious removal or abandonment in-place of the tank is considered necessary or advisable for the completion of the unrelated construction activity, and where any delays in completion of the tank removal or abandonment in-place would cause unreasonable financial hardship due to contract schedules and completion times;

(C)

when any duly authorized public official (e.g., any federal, state, or local fire or safety officer, health or environmental official, law officer, etc.) orders the immediate removal or repair of all or portions of an UST [ underground storage tank ] system which poses an immediate threat to human health, safety, or the environment;

(D)

when the activity is necessary to maintain the operational readiness of an emergency generator , as defined by §334.2 of this title (relating to Definitions) ;

(E)

in any other case where the agency [ executive director ] determines that compliance with the notification provisions of subsection (b) of this section would be unreasonable or impractical, or could increase the threat to human health or safety or the environment.

§334.7.Registration for Underground Storage Tanks (USTs) and UST Systems .

(a)

General provisions.

(1)

All underground storage tanks (USTs) in existence on or after September 1, 1987, must [ shall ] be registered with the agency [ commission ] on authorized agency [ commission ] forms in accordance with subsection (e) of this section , except for those tanks which:

(A)

are completely exempted or partially exempted from regulation under §334.3(a) or (b) of this title (relating to [ Statutory ] Exemptions for Underground Storage Tanks (USTs) and UST Systems );

(B)

are completely excluded or partially excluded from regulation under §334.4(a) or (c) of this title (relating to [ Commission ] Exclusions for Underground Storage Tanks (USTs) and UST Systems );

(C)

were properly registered with the agency [ commission ] prior to the effective date of this subchapter under the provisions of the federal Solid Waste Disposal Act, §9002 (42 United States Code §6921, et seq.), provided that the owner or operator must submit [ has submitted ] notice of all changes and additional information in accordance with the provisions of subsection (d) of this section;

(D)

(No change.)

(E)

were out of operation and empty of regulated substances at the time of their discovery, provided that:

(i)

the facility owner and operator can reasonably demonstrate no prior knowledge of the existence of the USTs; and

(ii)

(No change.)

(2)

The owner and operator of an UST [ underground storage tank ] are [ shall be ] responsible for compliance with the tank registration requirements of this section. An owner or operator may designate an authorized representative to complete and submit the required registration information. However, the owner and operator remain [ shall be held ] responsible for compliance with the provisions of this section by such representatives.

(3)

All USTs [ underground storage tanks ] subject to the registration requirements of this section are [ shall ] also [ be ] subject to the fee provisions of Subchapter B of this chapter (relating to Underground Storage Tank Fees), except where specifically exempted in this chapter. The failure by a tank owner or operator to properly or timely register any tanks does [ shall ] not exempt the owner from such fee assessment and payment provisions.

(b)

Existing tanks. Any person who owns an UST [ underground storage tank ] that was in existence on September 1, 1987, must [ shall ] register such tank with the agency [ commission ] not later than September 1, 1987, on an authorized agency [ commission ] form, except for those tanks exempted and excluded under subsection (a)(1)(A)-(D) of this section. Upon the effective date of this subsection, the obligation becomes joint and several with the tank operator as well.

(c)

New or replacement tanks. Any person who owns a new or replacement UST [ underground storage tank ] that is placed into service on or after September 1, 1987, must register the tank with the agency [ executive director ] on an authorized agency [ commission ] form within 30 days after the date any regulated substance is placed into the tank, except for those tanks exempted or excluded under subsection (a)(1)(A)-(D) of this section. Upon the effective date of this subsection, the obligation becomes joint and several with the tank operator as well.

(d)

Changes or additional information.

(1)

The owner or operator of an UST [ underground storage tank ] system must [ shall ] provide written notice to the agency [ executive director ] of any changes or additional information concerning such system. Types of changes or additional information subject to this requirement must [ shall ] include, but are [ shall ] not [ necessarily be ] limited to, the following:

(A)

change in owner or operator [ ownership ], or change in owner or operator [ ownership ] information (e.g., authorized representative, mailing address , and/or telephone number) , provided that: [ ; ]

(i)-(ii)

(No change.)

(B)

change in the operational status of any [ each ] tank system (e.g., in service, temporarily out of service, removed from the ground, [ or ] permanently abandoned in-place , change-in-service to provide for the storage of a substance other than a regulated substance, or change to exempt or excluded status );

(C)

change in the type of stored regulated substance[ , or change-in-service to provide for the storage of a substance other than a regulated substance ];

(D)

installation of additional tanks and /or ancillary equipment at an existing facility;

(E)-(I)

(No change.)

(J)

change in financial assurance [ responsibility ] information related to the facility as specified in Chapter 37, Subchapter I of this title (relating to Financial Assurance for Petroleum Underground Storage Tank Systems) .

(2)

Notice of any change or additional information must [ shall ] be submitted on an authorized agency [ commission registration ] form which has been completed in accordance with subsection (e) of this section. The agency's UST [ commission's underground storage tank ] facility number for the facility must [ shall ] be included in the appropriate space on the [ registration ] form.

(3)

Notice of any change or additional information must [ shall ] be filed with the agency [ executive director ] within 30 days from the date of the occurrence of the change or addition, or within 30 days from the date on which the owner or operator first became aware of the change or addition, as applicable.

(4)

However, for the initial filing of the UST registration and self-certification form (as described in §334.8(c)(4) of this title (relating to Certification for Underground Storage Tanks (USTs) and UST Systems) for all regulated UST systems at a facility, all UST owners and operators must complete the "Tank Identification/Description" section of the UST registration portion of the form by the same deadline given in §334.8(c)(4)(A)(vi) of this title. This requirement does not relieve an owner or operator from any other registration requirements under this section.

(e)

Required form for providing UST registration information [ Registration form ].

(1)

Any UST [ tank ] owner or operator required to submit UST [ tank ] registration information under subsections (a)-(d) of this section must [ shall ] provide all the information indicated on the agency's [ commission's ] authorized [ registration ] form for each regulated UST [ tank owned ]. The UST registration information must be provided on the appropriate agency form, as specified in paragraph (6) of this subsection.

(2)

The UST [ tank ] registration portion of the form must [ shall ] be filled out [ as ] completely and accurately [ as possible ]. Upon completion, the form must [ shall ] be dated and signed by the owner , or the operator, or an authorized [ the owner's designated ] representative of the owner or operator , and must [ shall ] be filed with the agency [ executive director ] within the specified time frames.

(3)

All UST [ tank ] owners or operators required to submit UST [ tank ] registration information under subsections (a)-(d) of this section must [ shall ] provide the registration information for all USTs [ tanks ] located at a particular facility on the same [ registration ] form.

(4)

UST [ Tank ] owners or operators who own or operate USTs [ tanks ] located at more than one facility must [ shall ] complete and file a separate [ registration ] form for each facility where regulated USTs are located .

(5)

If additional information, drawings, or other documents are submitted with new or revised registration data, specific facility identification information (including the facility identification number, if known) must [ shall ] be conspicuously indicated on each document and all such documents must [ should ] be attached to and filed with the [ registration ] form.

(6)

For any UST registration information filed with the agency on or after the effective date of this paragraph, UST owners and operators must provide the required information on an authorized agency UST registration and self-certification form, as prescribed by §334.8(c)(3) of this title.

(7)

Owners and operators of petroleum UST systems should also see the financial assurance requirements in Chapter 37, Subchapter I, §37.870(b) of this title.

(f)

Inadequate information. When any of the required UST [ tank ] registration information submitted to the agency [ commission ] is determined to be inaccurate, unclear, illegible, incomplete, or otherwise inadequate, the agency [ executive director ] may require the owner and/or operator to submit additional information. An owner or operator must [ shall ] submit any such required additional information within 30 days of receipt of such request.

[(g)

Registration requirements as a condition for reimbursement. In order to be eligible for reimbursement of corrective action expenses, the eligibility requirements relating to registration, as provided in §334.310 of this title (relating to Requirements for Eligibility) must be met.]

§334.8.Certification for Underground Storage Tanks (USTs) and UST Systems .

(a)

Underground storage tank (UST) construction activity [ Installation ] certifications. The following UST construction activity [ installation ] certifications are required.

[(1)

Owner or operator certifications. Any owner or operator who installs a new or replacement underground storage tank system after the effective date of this subchapter shall assure that all applicable parts of the construction certification section of the commission's authorized tank registration form are completed. The owner or operator shall further certify by signature that:]

[(A)

the installation meets the requirements of §334.45 of this title (relating to Technical Standards for New UST Systems) and §334.46 of this title (relating to Installation Standards for New UST Systems);]

[(B)

the corrosion protection system meets the requirements of §334.49 of this title (relating to Corrosion Protection); and]

[(C)

the release detection equipment or procedures meet the requirements of §334.50 of this title (relating to Release Detection).]

(1)

[ (2) ] Certification by installer or on-site supervisor. After September 29, 1989 [ : After the effective date of this subchapter ], any installer who is employed or otherwise engaged by an UST [ underground storage tank ] owner or operator to install or replace an UST [ underground storage tank ] system must [ shall ] also certify by signature that the installation methods are in compliance with §334.46 of this title (related to Installation Standards for New UST Systems). [ The tank owner or operator shall be responsible for assuring that the installer has provided the certification required in this paragraph. ]

(2)

[ (3) ] Filing requirements. The installation or construction [ replacement ] certification information required under paragraph [ paragraphs ] (1) [ and (2)] of this subsection must [ shall ] be included in the appropriate sections of the agency's [ commission's ] authorized UST [ tank ] registration form or UST registration and self-certification form, as applicable, in accordance with §334.7(e) of this title (relating to Registration for Underground Storage Tanks (USTs) and UST Systems) , and must [ shall ] be filed with the agency [ commission ] in accordance with the applicable tank registration time limits prescribed under §334.7 of this title [ (relating to Registration) ].

(b)

Financial assurance [ responsibility ] certification for USTs storing a petroleum substance Owners and operators of UST systems regulated under this section must comply with the requirements of subsection (c) of this section .

[(1)

Beginning on the effective date of this subchapter, all owners and operators of new and existing underground storage tank systems shall assure that the applicable parts of the financial responsibility section of the commission's authorized tank registration form are completed, and shall certify by signature that the financial responsibility requirements under Subchapter E of this chapter (relating to Financial Responsibility) have been met.]

[(2)

The required financial responsibility information shall be included in the appropriate section of the commission's authorized tank registration form, and shall be filed with the commission as follows.]

[(A)

For new UST systems, the financial responsibility information shall be filed with the commission in accordance with the tank registration time limits prescribed under §334.7 of this title (relating to Registration).]

[(B)

For existing UST systems, the financial responsibility information shall be filed with the commission within 30 days of the prescribed date that financial responsibility is required pursuant to §334.92 of this title (relating to Compliance Dates).]

(c)

UST compliance self-certification requirements.

(1)

Applicability. Except as provided in this paragraph, the requirements of this subsection are applicable to the owners and operators of USTs regulated under this chapter.

(A)

The requirements of this subsection are not applicable to the following USTs:

(i)

USTs which are completely exempt or partially exempt from regulation under §334.3 of this title (relating to Exemptions for Underground Storage Tanks (USTs) and UST Systems); and

(ii)

USTs which are completely excluded or partially excluded from regulation under §334.4 of this title (relating to Exclusions for Underground Storage Tanks (USTs) and UST Systems);

(iii)

USTs into which deliveries or deposits of regulated substances are exclusively made by persons other than a common carrier, as defined in §334.2 of this title (relating to Definitions).

(B)

The agency will not provide an UST delivery certificate for USTs covered by the exceptions in subparagraph (A) of this paragraph.

(2)

Phase-in schedule for all regulated substance UST systems except motor fuel (as defined in §334.2 of this title) UST systems.

(A)

For these UST systems, the self-certification requirements of this subsection will become effective two years after the effective date of this subsection.

(B)

Nothing in this subsection affects the requirements under §334.7(d)(4) of this title.

(3)

Conditions and limitations.

(A)

Filing of the UST registration and self-certification form does not relieve an owner or operator from the responsibility for timely compliance with other applicable filing requirements under this chapter.

(B)

Completion of the UST registration and self-certificaton form in a manner that indicates compliance with applicable UST regulations (as specified in subparagraph (D) of this paragraph) will result in the agency's issuance of an UST delivery certificate for the tanks at the facility for which compliance is self-certified.

(C)

The agency's issuance of a delivery certificate for an UST(s) does not constitute agency certification or affirmation of the compliance status of the tank(s) in question with agency UST technical and/or administrative requirements, and this issuance does not preclude the agency from investigating these tanks and pursuing enforcement actions under the Texas Water Code when apparent violations are discovered.

(D)

The administrative requirements and technical standards that are the subject of the compliance self-certification shall include:

(i)

tank registration, as described in §334.7 of this title;

(ii)

facility fees, as described in Subchapter B of this chapter (relating to Underground Storage Tank Fees);

(iii)

financial assurance, as described in Chapter 37, Subchapter I of this title; and

(iv)

technical standards, as described in §334.49 of this title (relating to Corrosion Protection), §334.50 of this title (relating to Release Detection), §334.51 of this title (relating to Spill and Overfill Prevention and Control), and §334.43 of this title (relating to Variances and Alternative Procedures), when a variance to all or part of one or more of the previous three sections has been granted by the agency in writing under the procedures described in §334.43 of this title.

(4)

UST registration and self-certification form.

(A)

Requirements for completion of the form.

(i)

Each UST registration and self-certification form must be completed with all the applicable information requested on the agency's authorized form for all regulated UST systems at the specified facility.

(ii)

Owners or operators who own or operate regulated USTs at more than one facility must complete and file a separate UST registration and self-certification form for each facility.

(iii)

The agency will not issue a delivery certificate based upon an incomplete submittal.

(iv)

Upon completion, the UST registration and self-certification form must be dated and signed by either the UST owner (or the owner's legally authorized representative) or by the UST operator (or the operator's legally authorized representative).

(v)

If additional information, drawings, or other documents are submitted with the UST registration and self-certification form, specific facility identification information (including the facility identification number) must be conspicuously indicated on each document and all these documents must be securely attached to and filed with the UST registration and self-certification form.

(vi)

To ensure timely initial issuance by the agency of the UST delivery certificate, an owner or operator must submit the required UST registration and self-certification form (including any additional or supplemental information required under clause (v) of this subparagraph) to the agency no later than the following dates:

(I)

For UST systems where the first storage of regulated substances was initiated before the effective date of this clause, the deadline for submission is 60 days after the effective date of this section.

(II)

For UST systems where the date of the first storage of regulated substances was on or after the effective date of this section, the deadline for submission is no later than 30 days after the date of initial storage of regulated substances.

(vii)

To ensure timely renewal of a previously-issued UST delivery certificate, the deadline for submission is 30 days before the annual renewal date for the UST delivery certificate for that specific facility, as indicated in paragraph (5)(B)(iii) of this subsection.

(B)

The facility owner and operator are both responsible for ensuring that the UST registration and self-certification form is fully and accurately completed, and that it is submitted to the agency in a timely manner. To minimize processing delays, the form should be mailed directly to the specific agency office, department, and mail code shown on the form.

(C)

When tank ownership at a facility changes, a new certification under this subsection must be made within 30 days of the ownership change.

(5)

UST delivery certificate.

(A)

Certificate availability.

(i)

The owner and operator of USTs regulated under this section must make available to a common carrier a valid, current Texas Natural Resource Conservation Commission (TNRCC) delivery certificate (or TNRCC temporary delivery authorization under subparagraph (D) of this paragraph, as applicable) before delivery of a regulated substance into the UST(s) can be accepted. The delivery certificate must cover each UST at the facility accepting a delivery. The bill of lading for the first delivery of regulated substance into any new or replacement UST at the facility must be attached to the temporary delivery authorization for that facility.

(ii)

The owner and operator of USTs regulated under this section must make immediately available, upon request by agency staff, a valid, current TNRCC delivery certificate (or TNRCC temporary delivery authorization under subparagraph (D) of this paragraph, as applicable) for the USTs at a facility.

(iii)

The owner and operator of USTs regulated under this section must ensure that a valid, current TNRCC delivery certificate (or TNRCC temporary delivery authorization under subparagraph (D) of this paragraph, as applicable) is posted at a facility. The posting must be in a location where the document is clearly visible at all times.

(B)

Annual delivery certificate renewal.

(i)

The initial delivery certificate issued for a tank(s) will be valid until the expiration date indicated on that certificate. The expiration will be based on the last digit of the official TNRCC owner identification number for the registered owner of the tank(s) in question, as described in clause (ii) of this subparagraph. It is the responsibility of the tank owner and operator to ensure that an application for renewal of that certificate is properly and timely filed.

(ii)

A delivery certificate is renewed by timely and proper submission of a new UST registration and self-certification form to the agency. For each facility, to allow time for processing of the renewal request, the agency must have received the properly completed form at least 30 days before the expiration date of the delivery certificate in question. The agency will not issue a renewed delivery certificate based on improper submission of renewal documents.

(iii)

Annual expiration and renewal dates for delivery certificates are determined by the last digit of the official TNRCC owner identification number for the registered owner of the tank(s) in question, and are effective beginning in calendar year 2001 and for each year thereafter on the dates indicated below:

(I)

If owner number ends in "1"--delivery certificate expires on January 31, and renewal is due February 1;

(II)

If owner number ends in "2"--delivery certificate expires on the last day of February, and renewal is due March 1;

(III)

If owner number ends in "3"--delivery certificate expires on March 31, and renewal is due April 1;

(IV)

If owner number ends in "4"--delivery certificate expires April 30, and renewal is due May 1;

(V)

If owner number ends in "5"--delivery certificate expires on May 31, and renewal is due June 1;

(VI)

If owner number ends in "6"--delivery certificate expires on June 30, and renewal is due July 1;

(VII)

If owner number ends in "7"--delivery certificate expires July 31, and renewal is due August 1;

(VIII)

If owner number ends in "8"--delivery certificate expires August 31, and renewal is due September 1;

(IX)

If owner number ends in "9"--delivery certificate expires September 30, and renewal is due October 1; and

(X)

If owner number ends in "0"--delivery certificate expires October 31, and renewal is due November 1.

(C)

Identifying tanks. Within 30 days of the effective date of this section, the owner and operator of USTs regulated under this section are responsible for ensuring that a legible tag, label, or marking is permanently applied upon or affixed to either the top of the fill tube or to a nonremovable point in the immediate area of the fill tube for each regulated UST at the facility. That tag, label, or marking must clearly and legibly show the designated UST identification number of that UST at that facility and that identification number must be identical to the UST identification number listed on the UST registration and self-certification form filed with the agency under this subsection. All UST identification numbers at a given facility must be numeric, must begin with the number one (1) and must proceed sequentially without skipping numbers (i.e.: 1, 2, 3...). In addition, for each compartmented UST where a single UST has a separate fill tube for each internal compartment; the numeric UST identification number must be the same for each fill tube serving that single UST, however, to allow differentiation between compartments on the UST registration and self-certification form and at the facility, that common UST identification number must also be followed by a single additional alphabetic identifier for each compartment, beginning with the letter "A" and proceeding sequentially without skipping letters (i.e.: 1A, 1B, 1C...).

(D)

Temporary delivery authorization.

(i)

Upon receipt of a TNRCC construction notification form indicating the pending installation of a new or replacement UST system(s), the agency will issue a temporary delivery authorization for those tank systems.

(ii)

The temporary delivery authorization is valid for no more than 90 days after the first delivery of regulated substance into the new or replacement UST system.

(iii)

The UST owner and operator are responsible for maintaining complete and accurate records of the date of the first deposit of regulated substances into a new or replacement UST(s), as well as the date that the initial 90 day period expires. The bill of lading for the first delivery of regulated substance into any new or replacement UST at the facility must be attached to the temporary delivery authorization for that facility.

(6)

Revocation of Delivery Certificate.

(A)

Grounds for revocation of delivery certificate. The commission may revoke a delivery certificate for reasons including, but not limited to:

(i)

when the executive director determines that any of the information contained or referenced in the compliance self-certification portions of the UST registration and self-certification form was inaccurate at the time the self-certification was made;

(ii)

when the tank owner and/or operator submits compliance self-certification information to the executive director which he knows or reasonably should have known to be false or deceptive; and

(iii)

for any other reason which in the opinion of the executive director constitutes good cause for revocation.

(B)

Procedures for revocation of delivery certificate.

(i)

A proceeding to revoke a delivery certificate must be commenced by:

(I)

the executive director through the filing of a petition; or

(II)

the commission on its own motion.

(ii)

If the executive director determines good cause exists to revoke a delivery certificate, the executive director shall file a petition with the chief clerk and provide notice to the owner and operator of the tank(s) in question. To the extent possible, the procedures required to assess administrative penalties under Chapter 70 of this title (relating to Enforcement) shall be followed to revoke a delivery certificate under this subchapter.

(iii)

In response to a petition, or on its own motion to revoke a delivery certificate, the commission may:

(I)

revoke a certificate; and

(II)

issue any other orders permitted by law.

(iv)

Revocation of a delivery certificate is cumulative of any other remedies available to the agency by law.

§334.9.Seller's Disclosure.

Effective on and after the effective date of this subchapter, any person who sells or otherwise legally conveys a tank (or tank system) which is designed or intended to be installed as an underground storage tank (UST) must [ shall ] provide the purchaser (or grantee) with written notification of a tank owner's obligations relative to the agency's [ commission's ] tank registration , compliance self-certification, and construction notification provisions under §334.7 of this title (relating to Registration for Underground Storage Tanks (USTs) and UST Systems); §334.8 of this title (relating to Certification for Underground Storage Tanks (USTs) and UST Systems); [ ) ] and §334.6 of this title (relating to Construction Notification for Underground Storage Tanks (USTs) and UST Systems ).

(1)

The written notification must [ shall ] include the names and addresses of the seller (or grantor) and the purchaser (or grantee), the number of tanks involved, a description of each tank (capacity, tank material, and product stored, if applicable), and the agency's [ commission's ] designated facility identification number (if the entire facility is being conveyed).

(2)

This notification requirement applies [ shall apply ] to any transfers or conveyances of a new or used tank from one person to another person, and [ shall ] also applies [ apply ] to the sales of real property where USTs [ underground storage tanks ] are located.

(3)

The written notification must [ shall ] be provided by the seller (or grantor) to the purchaser (or grantee) prior to the conveyance of the tanks, or prior to the time of the real property closing, as applicable.

(4)

For the purpose of fulfilling the disclosure requirements of this section, the following language (together with the information in paragraph (1) of this section) is deemed sufficient: "The underground storage tank(s) which are included in this conveyance are presumed to be regulated by the Texas Natural Resource Conservation [ Water ] Commission and may be subject to certain registration , compliance self-certification, and construction notification requirements found in Title 30 [ 31 ] Texas Administrative Code, Chapter 334."

§334.10.Reporting and Recordkeeping.

(a)

Reporting. Owners and operators of underground storage tank (UST) [ UST ] systems must [ shall ] assure that all reporting and filing requirements in this chapter are met, including the following (as applicable):

(1)

construction notification, in accordance with §334.6 of this title (relating to Construction Notification for Underground Storage Tanks (USTs) and UST Systems );

(2)

application for approval of any proposed UST system in the Edwards Aquifer recharge or transition zones, in accordance with §334.6(a)(2) of this title [ (relating to Construction Notification) ] and Chapter 213 [ 313 ] of this title (relating to Edwards Aquifer);

(3)

registration of UST systems and changes in information, in accordance with §334.7 of this title (relating to Registration for Underground Storage Tanks (USTs) and UST Systems );

(4)

certification of construction activities, [ installations and ] financial assurance [ responsibility ], and compliance self-certification in accordance with §334.8 of this title (relating to Certification for Underground Storage Tanks (USTs) and UST Systems );

(5)

(No change.)

(6)

request for extension of time for an UST system that is temporarily out of service, in accordance with §334.54[ (d)(2) ] of this title (relating to Temporary Removal from Service);

(7)-(8)

(No change.)

(9)

reports, plans, and certifications related to suspected and confirmed releases of regulated substances, including:

(A)-(C)

(No change.)

(D)

initial site assessment [ characterization ] report, in accordance with §334.78(b) of this title (relating to [ Initial ] Site Assessment [ Characterization ]);

(E)

non-aqueous phase liquid [ free product ] removal report, in accordance with §334.79(d) of this title (relating to [ Free Product ] Removal of Non-Aqueous Phase Liquids );

(F)-(G)

(No change.)

(H)

notification of cleanup initiation, in accordance with §334.81(e) of this title [ (relating to Corrective Action Plan) ];

(I)

certification of compliance with corrective action plan, in accordance with §334.81(g) of this title [ (relating to Corrective Action Plan) ]; and

(J)

(No change.)

(10)

notifications and reports relating to financial assurance [ responsibility ] requirements, in accordance with Chapter 37, Subchapter I of this title (relating to Financial Assurance for Petroleum Underground Storage Tank Systems; and [ including: ]

[(A)

reports of financial condition, in accordance with §334.95(f) of this title (relating to Financial Test of Self-Insurance);]

[(B)

notification of failure to secure alternate financial assurance, in accordance with §334.95(g) of this title (relating to Financial Test of Self-Insurance), §334.103(b) of this title (relating to Cancellation or Nonrenewal by a Provider of Financial Assurance), and §334.108(c) of this title (relating to Bankruptcy or Other Incapacity of Owner or Operator or Provider of Financial Assurance);]

[(C)

request for release of excess guaranteed funds, in accordance with §334.100(d)-(f) of this title (relating to Trust Fund);]

[(D)

forms and reports regarding financial responsibility, in accordance with §334.104 of this title (relating to Reporting by Owner or Operator); and]

[(E)

notification of related bankruptcy proceedings, in accordance with §334.108(a) of this title (relating to Bankruptcy or Other Incapacity of Owner or Operator or Provider of Financial Assurance); and]

(11)

any other reports, filings, notifications, or other submittals required by this chapter, or otherwise required by the agency [ executive director or commission ] to demonstrate compliance with the provisions of this chapter.

(b)

Recordkeeping.

(1)

General recordkeeping requirements.

(A)

Owners and operators of UST systems are [ shall be ] responsible for developing and maintaining all records required by the provisions of this chapter.

(B)

Except as provided in subparagraphs (C) and (D) of this paragraph, legible copies of all required records pertaining to an [ a ] UST system must [ shall ] be maintained in a secure location on the premises of the UST facility, must [ shall ] be immediately accessible for reference and use by the UST system operator, and must [ shall ] be immediately available for inspection upon request by agency [ commission ] personnel.

(C)

Except as provided in clause (v) of this subparagraph, in [ In ] the event that copies of the required records cannot reasonably be maintained on the premises of the UST facility, then such records may be maintained at a readily accessible alternate site, provided that the following conditions are met.

(i)

If the UST system is in operation, the records must [ shall ] be readily accessible for reference and use by the UST system operator.

(ii)

The records must [ shall ] be readily accessible and available for inspection upon request by agency [ commission ] personnel.

(iii)

The owner or operator must [ shall ] provide the following information (in writing) to the agency's central office [ executive director ] and to the agency's [ commission's ] appropriate regional [ district ] office:

(I)-(II)

(No change)

(iv)

The filing of the written information required in clause (iii) of this subparagraph must [ shall ] be accomplished no later than October 29, 1989 [ 30 days after the effective date of this chapter ], 30 days after an [ a ] UST installation or replacement has been completed, or 30 days after the UST records are moved to an alternate site, whichever is later or applicable , as provided in §334.7(d) of this title .

(v)

The conditional authorization otherwise allowed under this subparagraph for records maintenance at an alternative, off-premises location is not applicable to the UST delivery certificate (or temporary delivery authorization, if applicable) issued by the agency under §334.8(c) of this title. This UST delivery certificate must be maintained on the premises of all facilities with regulated USTs, must be posted by the UST system operator and visible to the person(s) performing deliveries to the UST system.

(D)

For UST systems which have been permanently removed from service in accordance with the applicable provisions of §334.55 of this title (relating to Permanent Removal from Service), the facility owner may submit the appropriate records required by this chapter to the agency [ executive director ] in lieu of maintaining the records on the premises or at an alternative site, provided that the following conditions are met:

(i)

(No change.)

(ii)

the facility owner must [ shall ] provide written justification adequate to explain why such records cannot be maintained on the premises of the UST facility or at a readily accessible alternative site; and

(iii)

the records must [ shall ] be submitted at one time in one package for each UST facility, and the records must [ shall ] be appropriately labeled with the UST facility location information and the UST facility identification number.

(2)

Required records and documents. Owners and operators of UST systems must [ shall ] assure that all recordkeeping requirements in this chapter are met, including the following records and documentation (as applicable).

(A)

Legible copies of the following general records must [ shall ] be maintained for the operational life of the UST system:

(i)

original and amended registration documents, in accordance with §334.7 of this title [ (relating to Registration) ];

(ii)

original and amended certifications for UST installations and financial assurance [ responsibility ], in accordance with §334.8 of this title [ (relating to Certification) ];

(iii)

(No change.)

(B)

Legible copies of applicable records and documents related to technical standards for UST systems must [ shall ] be maintained in accordance with the following provisions:

(i)

application documents and the agency's [ executive director's ] approval letter for any variances or alternative procedures, in accordance with §334.43 of this title [ (relating to Variances and Alternative Procedures) ];

(ii)-(ix)

(No change.)

(x)

records for temporary removal of UST systems from service, in accordance with §334.54(f)(4) of this title [ (relating to Temporary Removal from Service) ];

(xi)

records for permanent removal of UST systems from service, in accordance with §334.55(f) of this title [ (relating to Permanent Removal from Service) ].

(C)

Legible copies of all required financial assurance records must [ shall ] be maintained in accordance with the applicable provisions of Chapter 37, Subchapter I [ §334.105 ] of this title [ (relating to Financial Assurance Recordkeeping) ].

(D)

Legible copies of previous and current registration and self-certification forms required to be filed annually with the agency under §334.8(c) of this title, as well as UST delivery certificates, must be maintained for at least five years from the original date of submittal.

§334.12.Other General Provisions.

(a)

Other regulations.

(1)

Except as provided in paragraph (2) of this subsection, compliance with the provisions of this chapter by an owner or operator of an underground storage tank (UST) system or aboveground storage tank (AST) system does [ shall ] not relieve such owner or operator from the responsibility of compliance with any other regulations directly and/or indirectly affecting such tanks and the stored regulated substances, including, but not necessarily limited to, all applicable regulations legally promulgated by the United States Environmental Protection Agency, United States Occupational Safety and Health Administration, United States Department of Transportation, United States Nuclear Regulatory Commission, United States Department of Energy, Texas Department of Health, State Board of Insurance, Texas Commission on Fire Protection, Railroad Commission of Texas, Texas Department of Agriculture, State Comptroller, Texas Department of Public Safety, Texas Natural Resource Conservation Commission, and any other federal, state, and local governmental agencies or entities having appropriate jurisdiction.

(2)

As provided in the Texas Water Code (TWC) , §26.359, this chapter establishes a unified statewide program for underground and surface water protection, and any local regulation or ordinance is effective only to the extent the regulation or ordinance does not conflict with the standards adopted for the design, construction, installation, or operation of USTs [ underground storage tanks ] under this chapter.

(b)

Owner and operator responsibility [ Operator Responsibility ].

(1)

[ Except as otherwise provided in paragraphs (2), (3) and (4) of this subsection, the owners and operators of underground storage tank systems and aboveground storage tank systems subject to the provisions of this chapter shall be responsible for ensuring compliance with all applicable provisions of this chapter. ] Owners and operators are responsible for any violations or noncompliant activities resulting from the actions or inactions by any installer, contractor, operator, or other person who is employed or otherwise engaged by an owner or operator of an UST [ underground storage tank ] or AST [ aboveground storage tank to be principally in charge of any activities or procedures required under this chapter ].

(2)

The commission shall consider the person who is in day-to-day control of a petroleum storage tank system at a site that is in violation of applicable statute or agency regulations to be the:

(A)

person primarily responsible for taking corrective action, for corrective action costs, for receiving a notice of violation, or for paying a penalty assessed; and

(B)

primary subject of an enforcement action or order.

(3)

[ (2) ] The liability of certain taxing units as owners or operators of USTs and ASTs is conditionally and specifically limited, in accordance with the provisions and conditions of TWC, §26.3516 (relating to Limits on Liability of Taxing Units). [ Unless otherwise specified under Texas Water Code, §26.3513, on and after September 1, 1995, when the owner of a petroleum storage tank system can reasonably demonstrate to the satisfaction of the commission that such owner is not in day-to-day control of such system, the commission shall consider the person who is in day-to-day control of such system at a site that is in violation of this chapter to be the: ]

[ (A)

person primarily responsible for taking corrective action, for corrective action costs, for receiving a notice of violation, or for paying a penalty assessed; and]

[ (B)

primary subject of an enforcement action or order under this chapter.]

(4)

[ (3) ] The liability of certain lenders as owners or operators of USTs [ underground storage tanks ] and ASTs [ aboveground storage tanks ] is conditionally and specifically limited, in accordance with the provisions and conditions of TWC, §26.3514 (relating to Limits on Liability of Lender) [ §334.15 of this title (relating to Limits on Liability of Lender) ].

(5)

[ (4) ] The liability of certain corporate fiduciaries as owners or operators of USTs [ underground storage tanks ] and ASTs [ aboveground storage tanks ] is conditionally and specifically limited, in accordance with the provisions and conditions of TWC, §26.3515 (related to Limits on Liability of Corporate Fiduciary) [ §334.16 of this title (relating to Limits on Liability of Corporate Fiduciary) ].

(c)

Inspections, monitoring, and testing [ Monitoring, and Testing ].

(1)

For the purposes of developing or assisting in the development of any regulation, conducting any study, or enforcing this chapter, an owner and/or operator of an UST [ underground storage tank ] or AST [ aboveground storage tank ], on the request of the agency [ commission or the executive director ], must [ shall ]:

(A)

(No change.)

(B)

permit a designated agent or employee of the agency [ commission ] at all reasonable times to have access to and to copy all records relating to the tanks.

(2)

For the purposes of developing or assisting in the development of a regulation, conducting a study, or enforcing the provisions of this chapter, the agency's [ commission, its ] designated agent, or employee may:

(A)

enter at reasonable times an establishment or place in which an UST [ underground storage tank ] or AST [ aboveground storage tank ] is located;

(B)-(C)

(No change.)

(3)

The agency [ commission ] may order an owner or operator of an UST [ underground storage tank ] or AST [ aboveground storage tank ] to conduct monitoring and testing if the agency [ commission ] determines that there is reasonable cause to believe that a release has occurred in the area in which the UST [ underground storage tank ] or AST [ aboveground storage tank ] is located.

[(4)

Each inspection made under this section must be begun and completed with reasonable promptness. Before a designated agent or employee of the commission enters private property to carry out a function authorized under this section, the agent or employee must give reasonable notice and exhibit proper identification to the manager or owner of the property or to another appropriate person. The commission's designated agent or employee must observe the regulations of the establishment being inspected, including regulations regarding safety, internal security, and fire protection.]

§334.15.Limits on Liability of Lender.

(a)

A lender, as defined in §334.2 of this title (relating to Definitions), is not liable as an owner or operator under this chapter solely because the lender holds indicia of ownership to protect a security or lienhold interest in property. A lender is not liable under this subsection if:

(1)

such lender has a security interest in a personal property or in a fixture that is not attached to the real estate or a lienhold interest on the real estate or fixture that is attached to the real estate as security for a loan to finance the acquisition or development of property, to finance the removal, repair, replacement, or upgrading of a regulated tank, or to finance the performance of corrective action in response to a release of a regulated substance from a tank, and the security or lienhold interest is in:

(A)

an underground storage tank (UST) or aboveground storage tank (AST) ;

(B)

real property on which an UST [ underground ] or AST [ aboveground storage tank ] is located; or

(C)

in any other personal property attached to or located on property on which an UST [ underground ] or AST [ aboveground storage tank ] is located; or

(2)

(No change.)

(b)

(No change.)

(c)

A lender that has a bona fide security or lienhold interest in any real or personal property as described under subsection (a) of this section and that forecloses on or receives an assignment or deed in lieu of foreclosure and becomes the owner of that real or personal property is not liable as an owner or operator under this chapter if the lender:

(1)

permanently removes from service any USTs [ underground ] or ASTs [ aboveground storage tanks ] on the property. A tank is permanently removed from service when the actions defined in §334.55(b) of this title (relating to Permanent Removal from Service) have been properly completed;

(2)-(3)

(No change.)

(d)

(No change.)

(e)

A lender described by subsection (a) of this section which forecloses on or receives an assignment or deed in lieu of foreclosure on real or personal property described in subsection (a) of this section is not liable as an owner or operator under this chapter because the lender sells, releases, liquidates, or winds up operations and takes measures to preserve, protect, or prepare a secured AST [ aboveground ] or UST [ underground storage tank ] before sale or other disposition of the storage tank or the property if the lender:

(1)

did not participate in the management of an AST [ aboveground ] or UST [ underground storage tank ] or real or personal property described by subsection (a) of this section before foreclosure or its equivalent on the storage tank or the property; and

(2)

(No change.)

(f)

A lender may establish that the ownership indicia maintained after foreclosure continues to be held primarily to protect a security interest if, within 12 months after foreclosure, the lender:

(1)

lists the AST [ aboveground ] or UST [ underground storage tank ], or the facility or property on which the tank is located, with a broker, dealer, or agent who deals in that type of property; or

(2)

advertises the AST [ aboveground ] or UST [ underground storage tank ] for sale or other disposition, at least monthly, in:

(A)

(No change.)

(B)

a trade or other publication appropriate for the AST [ aboveground ] or UST [ underground storage tank ] being advertised; or

(C)

a newspaper of general circulation in the area in which the AST [ aboveground ] or UST [ underground storage tank ] is located.

(g)

(No change.)

(h)

A lender that meets the conditions of subsection (f) nonetheless becomes liable as owner and/or operator at the end of the 12-month period, or when the lender no longer holds ownership indicia primarily to protect its security interest, whichever occurs first. If a lender outbids, rejects, or does not act on an offer of fair consideration for the AST [ aboveground ] or UST [ underground storage tank ] or the facility or property on which the storage tank is located, it is presumed that the lender is not holding the ownership indicia primarily to protect the security interest unless the lender is required, in order to avoid liability under federal or state law, to make the higher bid, obtain the higher offer, or seek or obtain an offer in a different manner.

§334.17.Privatization of Storage Tank Program.

The commission may retain agents for the performance of services related to the duties and administrative tasks of this chapter. The agent(s) will [ shall ] act under the direction of the executive director.

§334.18.Limits on Liability of Taxing Unit.

(a)

Authorization and applicability. The provisions of this section are authorized by Texas Water Code, §26.3516 (relating to Limits on Liability of Taxing Units), and apply only to taxing units as defined in the Property Tax Code, §1.04(12) that:

(1)

have foreclosed an ad valorem tax lien as security for payment of ad valorem taxes on real property on which an aboveground storage tank (AST) or an underground storage tank (UST) is located, or on any other personal property attached to or located on property on which an AST or UST is located, and

(2)

hold indicia of ownership in such storage tank, or in such real or personal property, by virtue of a tax foreclosure on or after September 1, 1999.

(b)

Removal from service and corrective action requirements. If after foreclosure of an ad valorem tax lien on real property on which an AST or an UST is located, a taxing unit performs or causes to be performed any UST or AST removal from service or corrective action activities, then these activities must be in accordance with the applicable provisions of this chapter, including §334.54 of this title (relating to Temporary Removal from Service), §334.55 of this title (relating to Permanent Removal from Service), §334.129 of this title (relating to Release Reporting and Corrective Action for Aboveground Storage Tanks (ASTs)), and Subchapter D of this chapter (relating to Release Reporting and Corrective Action).

(c)

Limits on liability of a taxing unit.

(1)

A taxing unit is not liable as an owner or operator under this chapter solely because the taxing unit holds indicia of ownership in either an AST, UST, the real property on which the storage tank is located, or any other personal property attached to or located on the real property on which the storage tank is located, if these indicia of ownership is the result of a tax foreclosure sale conducted under the provisions of the Texas Tax Code.

(2)

A taxing unit is not liable as an owner or operator under this chapter solely because the taxing unit sells, releases, liquidates, or winds up operations and takes measures to preserve, protect, or prepare the secured AST or the secured UST before the sale or other disposition of either the storage tank, the real property on which the storage tank is located, or any other personal property attached to or located on the real property on which the storage tank is located, provided that the taxing unit:

(A)

did not participate in the management of either the AST or UST, the real property on which this storage tank is located, or any other personal property attached to or located on the real property on which the storage tank is located, before the foreclosure of or an equivalent action on either the storage tank or the real or personal property; and

(B)

performs the actions identified in paragraph (3) of this subsection to establish that the ownership indicia maintained after foreclosure continue to be held primarily to protect a payment of ad valorem taxes.

(3)

A taxing unit may establish that the ownership indicia maintained after foreclosure continue to be held primarily to protect the payment of ad valorem taxes if the taxing unit either:

(A)

lists the AST, UST, or the facility or real property on which the storage tank is located, with an appropriate broker, dealer, or agent who deals in that type of property; or

(B)

advertises the AST, UST, or the facility or real property on which the storage tank is located, for sale or other disposition in either:

(i)

a real estate publication;

(ii)

a trade or other publication appropriate for the AST, UST, or the facility or real property being advertised; or

(iii)

a newspaper of general circulation in the area in which the AST, UST, or real property is located.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on May 19, 2000.

TRD-200003485

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: August 1, 2000

For further information, please call: (512) 239-4712


30 TAC §334.11

(Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Texas Natural Resource Conservation Commission or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

STATUTORY AUTHORITY

The repeal is proposed under Texas Water Code (TWC), §5.103, which provides the commission authority to adopt any rules necessary to carry out its powers and duties under this code and other laws of this state and to adopt rules repealing any statement of general applicability that interprets law or policy; §5.105, which authorizes the commission to establish and approve all general policy of the commission by rule; and §26.011, which requires the commission to control the quality of water by rule. This rule repeal is also proposed under TWC, §26.345, which provides the commission authority to develop a regulatory program and to adopt rules regarding underground storage tanks, and §26.351, which provides the commission authority to adopt rules establishing the requirements for taking corrective action in response to a release from an underground or aboveground storage tank.

The repeal implements TWC, Chapter 26, Subchapter I, Underground Storage Tanks.

§334.11.Enforcement.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on May 19, 2000.

TRD-200003486

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: August 1, 2000

For further information, please call: (512) 239-4712


Subchapter B. UNDERGROUND STORAGE TANK FEES

30 TAC §§334.21-334.23

STATUTORY AUTHORITY

The amended sections are proposed under Texas Water Code (TWC), §5.103, which provides the commission authority to adopt any rules necessary to carry out its powers and duties under this code and other laws of this state and to adopt rules repealing any statement of general applicability that interprets law or policy; §5.105, which authorizes the commission to establish and approve all general policy of the commission by rule; and §26.011, which requires the commission to control the quality of water by rule. The amended sections are also proposed under TWC, §26.345, which provides the commission authority to develop a regulatory program and to adopt rules regarding underground storage tanks, and §26.351, which provides the commission authority to adopt rules establishing the requirements for taking corrective action in response to a release from an underground or aboveground storage tank.

The proposed sections implement TWC, Chapter 26, Subchapter I, Underground Storage Tanks.

§334.21.Fee Assessment.

(a)

Except as provided in subsection (e) of this section, an annual facility fee of $50 is assessed for each underground storage tank (UST) subject to the registration provisions of §334.7 of this title (relating to Registration for Underground Storage Tanks (USTs) and UST Systems ). The fees shall be billed to and paid by the owner of the tank.

(b)

Payment of annual facility fees is due within 30 days of the date the agency [ executive director ] sends a statement of the assessment to the tank owner. Annual facility fees must be paid by check, certified check, or money order made payable to the "Texas Natural Resource Conservation Commission." Payments must be mailed to the address specified in the billing statement.

(c)

The agency [ executive director ] shall establish a schedule for billing of annual facility fees. The amount of the fee to be paid, regardless of the actual billing date, shall be based on the number of regulated USTs [ underground storage tanks ] in place on or after the first day of each fiscal year (September 1).

(d)

An agency of the federal government is not subject to an assessment under this section for any revenue used to match federal funds for the remediation of leaking USTs [ underground storage tanks ]. In any fiscal year in which fee revenues are used to match federal funds for remediation of a leaking UST [ underground storage tank ], the agency [ commission ] shall determine the prorated contribution of each federal UST [ underground storage tank (UST) ] facility to the leaking UST [ underground storage tank ] trust fund in that year. The assessment of annual UST facility tank fees in the following year shall be adjusted by crediting the account of each federal facility for the excess amount paid in the previous year.

(e)

An annual facility fee shall not be assessed for an UST [ underground storage tank ] which is owned, operated, or maintained by a common carrier railroad, as provided in the Texas Water Code, §26.344(g).

§334.22.Failure To Make Payment.

(a)

(No change.)

(b)

The agency [ executive director ] shall impose interest and penalties on owners who fail to make payment of the annual facility fees imposed under this subchapter when due in accordance with Chapter 12 of this title (relating to Payment of Fees).

§334.23.Disposition of Fees, Interest, and Penalties.

The agency [ executive director ] shall deposit any annual facility fees collected, together with all interest and penalties collected for late payment, in the state treasury to the credit of the storage tank fund.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on May 19, 2000.

TRD-200003487

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: August 1, 2000

For further information, please call: (512) 239-4712


Subchapter C. TECHNICAL STANDARDS

30 TAC §§334.41-334.52, 334.54-334.56

STATUTORY AUTHORITY

The amended sections are proposed under Texas Water Code (TWC), §5.103, which provides the commission authority to adopt any rules necessary to carry out its powers and duties under this code and other laws of this state and to adopt rules repealing any statement of general applicability that interprets law or policy; §5.105, which authorizes the commission to establish and approve all general policy of the commission by rule; and §26.011, which requires the commission to control the quality of water by rule. The amended sections are also proposed under TWC, §26.345, which provides the commission authority to develop a regulatory program and to adopt rules regarding underground storage tanks, and §26.351, which provides the commission authority to adopt rules establishing the requirements for taking corrective action in response to a release from an underground or aboveground storage tank.

The proposed sections implement TWC, Chapter 26, Subchapter I, Underground Storage Tanks.

§334.41.Applicability.

(a)

Except as provided under subsection (b) of this section, an underground storage tank (UST) shall be subject to all provisions of this subchapter if such tank meets the general applicability requirements of §334.1(b) of this title (relating to Purpose and Applicability).

(b)

The provisions of this subchapter shall not apply to any of the following types of UST [ underground storage tank ] systems:

(1)

(No change.)

(2)

Any UST [ underground storage tank ] system which is covered under the partial exclusion provisions of §334.4(b) of this title (relating to [ Commission ] Exclusions for Underground Storage Tanks (USTs) and UST Systems ).

(c)

Any UST [ underground storage tank ] which is specifically excluded or exempted from the provisions of this subchapter under §334.41(b) of this title (relating to Applicability) [ subsection (b) of this section ], but which is otherwise subject to any of the remaining provisions of this chapter, shall conform with the minimum design and operation requirements of §334.5(a) of this title (relating to General Prohibitions for Underground Storage Tanks (USTs) and UST systems ).

(d)

For the purposes of this subchapter only, a new UST [ underground storage tank ] system (or new UST system) shall refer to any system for which installation has commenced on or after September 29,1989 [ the effective date of this subchapter ].

§334.42.General Standards.

(a)

All components of any new or existing underground storage tank (UST) system subject to the provisions of this subchapter shall be designed, installed, and operated in a manner that will prevent releases of regulated substances due to structural failure or corrosion [ for as long as the underground storage tank system is used to store regulated substances ].

(b)

For all components of any new or existing UST [ underground storage tank ] system subject to the provisions of this subchapter which contain, have contained, or will contain [ are used to contain or store ] a regulated substance, the surfaces of such components which are in direct contact with the regulated substance shall be constructed of or lined with materials that are compatible with the substance stored in such components. Any compatibility determination or analysis shall be in accordance with a code or standard of practice developed by a nationally recognized association or independent testing laboratory.

(c)

The owners and operators of UST systems subject to the provisions of this subchapter and those persons and/or business entities who engage in, perform, or supervise the installation, repair , or removal of UST systems shall be responsible for ensuring that those UST systems are designed, installed, repaired, removed , and operated in accordance with the provisions of this subchapter, as provided under [ §334.11 and ] §334.12(b) of this title (relating to [ Enforcement and ] Other General Provisions[ , respectively ]) and under the provisions of Chapter 70 of this title (relating to Enforcement) .

(d)

When provisions of this subchapter require compliance with a specific code or standard of practice developed by a nationally recognized association or independent testing laboratory, the most recent version of the referenced code in effect at the time of the regulated UST [ underground storage tank ] activity shall be applicable.

(e)

Compliance with the provisions of this subchapter shall not relieve an owner or operator of an UST [ underground storage tank ] system from compliance with other applicable regulations legally developed by other governmental entities. This requirement is more fully discussed in §334.12(a) of this title [ (relating to Other General Provisions) ].

(f)

Unless otherwise stated in a variance [ or alternative procedure is ] approved by the agency [ executive director ] in accordance with §334.43 of this title (relating to Variances and Alternative Procedures), the requirements of this subchapter shall take precedence if and when such requirements are determined to be in conflict with any provisions contained in the following:

(1)

(No change.)

(2)

the manufacturers' specifications and instructions for installation and operation of UST [ underground storage tank ] equipment.

(g)

Any underground component of an UST [ underground storage tank ] system installed on or after September 29, 1989, shall be properly protected from corrosion by one or more of the allowable methods in §334.49(b) of this title (relating to Corrosion Protection).

§334.43.Variances and Alternative Procedures.

(a)

Prior to proceeding in [ initiating ] any manner [ activity or procedure ] that differs from [ which is at variance with or which is not specifically authorized under ] the requirements of this subchapter, the owner or operator of an underground storage tank (UST) system shall secure written agency [ commission ] approval in [ of ] the form of a variance [ or alternative procedure ] in accordance with this section.

(b)

The agency [ executive director ] shall have authority to review and approve requests for variances [ and alternative procedures as relate to ] from the requirements in [ the provisions of ] this subchapter. The agency [ executive director ] will [ shall ] approve such requests only if the owner or operator can [ reasonably ] demonstrate to appropriate agency staff that the proposed [ variance or ] alternative procedure and/or equipment will result in an UST [ underground storage tank ] system that is no less protective of human health and safety and the environment than the requirement(s) for which [ a system meeting ] the variance is sought [ requirements of this subchapter ].

(c)

An owner or operator may submit a request for [ approval of ] a variance [ or alternate procedure ] when one or more of the following situations is applicable:

(1)

when conformance with a requirement in [ the requirements of ] this subchapter is considered [ either ] not practicable [ or not reasonable ] due to the type, design, capacity, material stored, or use of the UST [ underground storage tank ] system [ (e.g. bulk storage tanks, field- constructed tanks, and airport hydrant fuel distribution systems) ]; or

(2)

when new or alternative products, equipment, methods, and/or procedures appropriate for use with UST [ underground storage tank ] systems are not specifically authorized by the provisions of this subchapter.

(d)

Any request to the agency [ executive director ] for approval of a variance [ or alternative procedure ] shall be made in writing, shall be signed and dated by the owner or operator, and shall be accompanied by the following additional documentation:

(1)

(No change.)

(2)

complete project identification, including:

(A)-(B)

(No change.)

(C)

name, address, and telephone number of owner's /operator's authorized representative, [ representatives ] [ (i.e., operator, contractor, or consultant) ]; and

(D)

proposed date for implementation of the [ variance or ] alternative procedure and/or equipment ;

(3)

sufficient documentation [ planning materials ] to describe or illustrate the [ variance or ] alternative procedure and/or equipment , such as:

(A)-(C)

(No change.)

(4)

[ sufficient ] documentation and supporting data which demonstrates, to the satisfaction of agency staff, [ justify ] the reliability and appropriateness of the [ variance or ] proposed procedure and/or equipment , such as:

(A)

(No change.)

(B)

results of previous experience involving use of the alternative procedure and/ or equipment;

(5)

complete explanation of the reasons why the requested [ variance or ] proposed procedure and/or equipment are [ is ] considered preferable to the requirement for which the variance is sought [ methods or procedures specified in this subchapter ], or why that requirement is [ the methods or procedures specified in this subchapter are ] considered [ unreasonable or ] impracticable; and

(6)

[ adequate ] documentation that demonstrates, to the satisfaction of agency staff, [ to reasonably demonstrate ] that use of the proposed [ variance or ] alternative procedure and/or equipment will be [ result in an underground storage tank system that is ] no less protective of human health and safety and the environment than adhering to [ a system meeting ] the requirement(s) for which the variance is sought [ requirements of this subchapter ].

(e)

If a variance is granted by the agency, the owner or operator [ Owners and operators ] shall maintain complete copies [ records ] of the variance and supporting documentation (including the request for approval) [ any requests for approval of any variances or alternative procedures, and documentation of the executive director's approval of such requests, for the operational life of the UST system ], in accordance with §334.10(b) of this title (relating to Reporting and Recordkeeping).

(f)

When a variance is sought, the owner and operator must adhere to the requirement in question until such time as the owner or operator receives a written variance which allows an alternative procedure and/or equipment for that requirement.

(g)

Once a person has received a written variance from the agency under this section, that person must adhere to the terms of that variance as written, or to the terms of the requirement for which the variance was sought.

§334.44.Implementation Schedules.

(a)

New underground storage tank (UST) [ UST ] systems.

(1)

Requirements for all new UST systems. All new UST systems installed on or after the effective date of this subchapter, which contain, have contained, or will contain [ are used to store ] any regulated substances shall be in compliance with the following requirements from the time of installation through the operational life of the system.

(A)-(D)

(No change.)

(2)

Additional requirements for new hazardous substance UST systems. In addition to the requirements applicable to all new UST systems in paragraph (1) of this subsection, all new hazardous substance UST systems installed on or after the effective date of this subchapter shall also be in compliance with the following requirements from the time of installation through the entire operational life of the system.

(A)

Such systems shall be properly constructed or equipped with a secondary containment system which shall be designed, constructed, and installed in accordance with the provisions of §334.45(d) of this title [ (relating to Technical Standards for New UST Systems) ] and §334.46(f) of this title [ (relating to Installation Standards for New UST Systems) ].

(B)

Such systems shall be properly constructed or equipped with a release detection system capable of monitoring either the interstitial spaces between the primary and secondary walls of any double-wall UST components, or the spaces between the primary UST component walls and all secondary containment barriers, as applicable, in accordance with the provisions in §334.50(c) of this title [ (relating to Release Detection) ].

(b)

Existing UST systems.

(1)

Requirements for all existing UST systems. All existing UST systems (i.e., UST systems for which installation has commenced or has been completed on or prior to December 22, 1988) which contain or have contained [ are used to store ] any regulated substances shall meet the applicable requirements of §334.47 of this title (relating to Technical Standards for Existing UST Systems) in accordance with the following schedule.

(A)

Tank integrity assessment and cathodic protection. No later than December 22, 1998, all existing UST systems shall be brought into compliance with the applicable tank integrity assessment and cathodic protection requirements of §334.47(b)(1) of this title [ (relating to Technical Standards for Existing UST Systems) ].

(B)

Spill and overfill prevention. No later than December 22, 1994, all tanks in an existing UST system shall be brought into compliance with the applicable spill and overfill prevention equipment requirements of §334.51(b) of this title [ (relating to Spill and Overfill Prevention) ].

(C)

Release detection for existing UST system piping.

(i)

Release detection for pressurized piping. No later than December 22, 1990, all piping in an existing UST system that routinely conveys regulated substances under pressure (i.e., which operates at greater than atmospheric pressure) shall be brought into compliance with the pressurized piping release detection requirements in §334.50(b)(2)(A) of this title [ (relating to Release Detection) ].

(ii)

Release detection for suction piping and gravity-flow piping. All piping in an existing UST system that routinely conveys regulated substances either by gravity flow or under suction (i.e., which operates at less than atmospheric pressure) shall be brought into compliance with the suction and gravity-flow piping release detection requirements in §334.50(b)(2)(B) of this title [ (relating to Release Detection) ] no later than the date on which release detection is required for the tank to which such piping is connected, as prescribed in subparagraph (D) of this paragraph.

(D)

Release detection for existing tanks.

(i)

Except as provided in clause (ii) of this subparagraph, all tanks in an existing UST system shall be brought into compliance with the tank release detection requirements in §334.50(b)(1) of this title [ (relating to Release Detection) ] no later than the date specified in the following subclauses for the time of installation applicable to such tanks:

(I)-(VII)

(No change.)

(ii)

(No change.)

(2)

Additional requirements for existing hazardous substance UST systems. In addition to the requirements applicable to all existing UST systems in paragraph (1) of this subsection, all existing hazardous substance UST systems shall also be brought into compliance with additional secondary containment and release detection standards in accordance with the following schedule.

(A)

No later than December 22, 1998, all existing hazardous substance UST systems shall be equipped with a secondary containment system meeting the design, construction, and installation requirements in §334.45(d) of this title [ (relating to Technical Standards for New UST Systems) ] and of §334.46(f) of this title [ (relating to Installation Standards for New UST Systems) ].

(B)

No later than December 22, 1998, all existing hazardous substance UST systems shall be equipped with a release detection system capable of monitoring either the interstitial spaces between the primary and secondary walls of any double-walled UST components, or the spaces between the primary UST component walls and any secondary containment barriers, as applicable, in accordance with the provisions in §334.50(c) of this title [ (relating to Release Detection) ].

§334.45.Technical Standards for New Underground Storage Tank Systems.

(a)

General requirements.

(1)

Any new underground storage tank (UST) [ UST ] system installed on or after the effective date of this subchapter shall be in compliance with the provisions of this section during the entire operational life of the UST system.

(2)-(5)

(No change.)

(b)

Technical standards for new tanks.

(1)

Tank design and construction. Each new tank shall be properly designed, constructed, and protected from corrosion in accordance with one or more of the methods listed in subparagraphs (A)-

(G)

[ (E) ] of this paragraph, and in accordance with specific codes and standards of practice developed by nationally recognized associations and independent testing laboratories, as referenced in the following subparagraphs:

(A)

The tank may be constructed of fiberglass-reinforced plastic. Tanks constructed under this method shall meet UL Standard 1316, "Standard for Safety for Glass-Fiber-Reinforced Plastic Underground Storage Tanks for Petroleum Products, Alcohols, and Alcohol-Gasoline Mixtures; [ one or more of the following standards: ]

[(i)

UL Standard 1316, "Standard for Glass-Fiber-Reinforced Plastic Underground Storage Tanks for Petroleum Products"; or]

[(ii)

ASTM Standard D 4021, "Standard Specification for Glass-Fiber-Reinforced Polyester Underground Petroleum Storage Tanks."]

(B)

The tank may be constructed of coated steel and equipped with a factory-installed cathodic corrosion protection system. Any tank constructed under this method shall be thoroughly coated with a suitable dielectric material, shall be equipped with a factory-installed cathodic corrosion protection system meeting the appropriate design and operational requirements in §334.49(c)(1) of this title [ (relating to Corrosion Protection) ], and shall meet the following standards:

(i)

UL Standard 58, "Standard for Safety for Steel Underground Tanks for Flammable and Combustible Liquids"; and

(ii)

Part I of UL Standard 1746, " Standard for Safety for External Corrosion Protection Systems for Steel Underground Storage Tanks," or STI Standard, "Specification for sti- P 3 System of External Corrosion Protection of Underground Steel Storage Tanks."

(C)

The tank may be constructed of coated steel and equipped with a field-installed cathodic corrosion protection system. Any tank constructed under this method shall be thoroughly coated with a suitable dielectric material, shall be equipped with a field-installed cathodic protection system meeting the appropriate design and operational requirements in §334.49(c)(2) of this title [ (relating to Corrosion Protection) ], and shall meet the following standards:

(i)

UL Standard 58, "Standard for Safety for Steel Underground Tanks for Flammable and Combustible Liquids"; and

(ii)

NACE International Standard RP0285-95, "Corrosion Control of Underground Storage Tank Systems by Cathodic Protection [ , "Control of External Corrosion on Metallic Buried, Partially Buried, or Submerged Liquid Storage Systems ]."

(D)

The tank may be factory-constructed either as a steel/fiberglass-reinforced plastic composite tank, or as a steel tank with a bonded fiberglass-reinforced plastic external cladding or as a steel tank with a bonded fiberglass reinforced polyurethane coating . Any tank constructed under this method is not required to be equipped with a cathodic protection system, provided that the tank meets the following requirements : [ . ]

(i)

The tank shall be equipped with a factory-applied external fiberglass-reinforced plastic or fiberglass reinforced polyurethane cladding or laminate which has a total dry film thickness of 100 mils minimum and 125 mils nominal ; [ . ]

(ii)

The tank shall be operated and maintained in accordance with the [ applicable ] requirements of §334.49 of this title [ (relating to Corrosion Protection) ] ; [ . ]

(iii)

The tank shall be designed and fabricated in accordance with one or more of the following standards:

(I)

Part II of UL Standard 1746, " Standard for Safety for External Corrosion Protection Systems for Steel Underground Storage Tanks";

(II)

Steel Tank Institute (STI) [ ACT Specification ] ACT-100, " Specification for External Corrosion Protection of FRP Composite Steel [ Fabrication of FRP Clad/Composite ] Underground Storage Tanks"; or

(III)

any other UL , or STI, or Underwriters' Laboratories of Canada (ULC) standard which incorporates the requirements contained in the standards listed in either subclause (I) or (II) of this clause; and [ standard applicable to composite underground storage tanks. ]

(iv)

The tank shall be electrically isolated from all other metallic structures by use of dielectric bushings or other appropriate methods utilized in accordance with applicable industry standards .

(E)

The tank may be factory-constructed as a steel tank with a bonded polyurethane external coating. Any tank constructed under this method is not required to be equipped with a cathodic protection system, provided that the tank meets the following requirements:

(i)

The tank shall be equipped with a factory-applied external polyurethane coating which has a minimum dry film thickness of 70 mils;

(ii)

The tank shall be operated and maintained in accordance with the applicable requirements of §334.49 of this title;

(iii)

The tank shall be designed and fabricated in accordance with one or more of the following standards:

(I)

Part IV of UL Standard 1746, "Standard for Safety for External Corrosion Protection Systems for Steel Underground Storage Tanks";

(II)

Steel Tank Institute (STI) ACT-100-U, "Specification for External Corrosion Protection of Composite Steel Underground Storage Tanks"; or

(III)

any other UL, or STL, or Underwriters' Laboratories of Canada (ULC) standard which incorporates the requirements contained in the standards listed in either subclause (I) or (II) of this clause; and

(iv)

The tank shall be electrically isolated from all other metallic structures by use of dielectric bushings or other appropriate methods utilized in accordance with applicable industry standards.

(F)

The tank may be factory-constructed as a steel tank completely contained within a nonmetallic external tank jacket. Any tank constructed under this method is not required to be equipped with a cathodic protection system, provided that the tank meets the following requirements:

(i)

The tank shall be equipped with a factory-constructed nonmetallic external jacket which provides both secondary containment and corrosion protection;

(ii)

The tank shall be operated and maintained in accordance with the applicable requirements of §334.49 of this title;

(iii)

The tank shall be designed and fabricated in accordance with the following:

(I)

Part III of UL Standard 1746, "Standard for Safety for External Corrosion Protection Systems for Steel Underground Storage Tanks"; or

(II)

any other UL, or STI, or Underwriters' Laboratories of Canada (ULC) standard which incorporates the requirements contained in the standard listed in subclause (I) of this clause; and

(iv)

The tank shall be electrically isolated from all other metallic structures by use of dielectric bushings or other appropriate methods utilized in accordance with applicable industry standards.

(G)

[ (E) ] The tank may be designed, constructed, and protected from corrosion by an alternate method which has been reviewed and determined by the agency [ executive director ] to control corrosion and prevent the release or threatened release of any stored regulated substance in a manner that is no less protective of human health and safety and the environment than the methods described in subparagraphs (A)-(D) of this paragraph, in accordance with the procedures in §334.43 of this title (relating to Variances and Alternative Procedures).

(2)-(3)

(No change.)

(4)

Other new tank components.

(A)

Fittings. All metallic tank fittings (e.g., bung hole plugs) shall be protected from corrosion and shall be either:

(i)-(ii)

(No change.)

(iii)

cathodically protected in accordance with the applicable provisions in §334.49(c) of this title [ (relating to Corrosion Protection) ].

(B)-(C)

(No change.)

(c)

Technical standards for new piping.

(1)

Piping design and construction. All new underground piping (including associated valves, fittings, and connectors) in an UST [ underground storage tank ] system shall be properly designed, constructed, and protected from corrosion in accordance with one of the methods listed in subparagraphs (A)- (D) [ (C) ] of this paragraph and in accordance with specific codes and standards of practice developed by nationally recognized associations and independent testing laboratories, as referenced in the following subparagraphs.

(A)

The piping may be constructed of fiberglass-reinforced plastic. Piping constructed under this method shall meet the following standards:

(i)

UL Standard 971, " Standard for Safety for Nonmetallic Underground Piping for Flammable Liquids [ UL Listed Non-Metal Pipe ]"; and

(ii)

UL Standard 567, " Standard for Safety for Pipe Connectors for Petroleum Products [ Flammable and Combustible ] and LP Gas."

(B)

The piping may be constructed of coated steel. Piping constructed under this method shall be thoroughly coated with a suitable dielectric material, shall be cathodically protected with a field- installed cathodic protection system meeting the appropriate design and operational requirements in §334.49(c) of this title [ (relating to Corrosion Protection) ], and shall meet the applicable provisions of the following standards:

(i)-(iii)

(No change.)

(iv)

NACE International Standard RP0169-96 , "Control of External Corrosion on Underground or Submerged Metallic Piping Systems."

(C)

The piping may be constructed of flexible nonmetallic material. Piping constructed under this method shall meet the following standards:

(i)

UL Standard 971, "Standard for Safety for Nonmetallic Underground Piping for Flammable Liquids"; and

(ii)

UL Standard 567, "Standard for Safety for Pipe Connectors for Petroleum Products and LP Gas."

(D)

[ (C) ] The piping may be designed, constructed, and protected from corrosion by an alternate method which has been reviewed and determined by the agency [ executive director ] to prevent the release of any stored regulated substance in a manner that is no less protective of human health and the environment than the methods described in subparagraphs (A) and (B) of this paragraph. Any alternative methods must be submitted and approved in accordance with the procedures in §334.43 of this title [ (relating to Variances and Alternative Procedures) ].

(2)

Release detection for new piping. All new piping shall be monitored for releases of regulated substances in accordance with §334.50(b)(2) of this title [ (relating to Release Detection) ].

(3)

Other new piping components.

(A)

For piping systems in which regulated substances are conveyed under pressure to an aboveground dispensing unit, a UL-listed (or agency accepted [ approved ] equivalent listing by Underwriters' Laboratories of Canada (ULC) ) emergency shutoff valve (also called a shear or impact valve) shall be installed in each pressurized delivery or product line and shall be securely anchored at the base of the dispenser. This shut-off valve shall include a fusible link, and shall be designed to provide a positive shut-off of product flow in the event that a fire, collision, or other emergency occurs at the dispenser end of the pressurized line.

(B)

UL-listed (or agency accepted [ approved ] equivalent listing by Underwriter's Laboratories of Canada (ULC), or Factory Mutual Research Corporation (FMRC) ) flexible connectors shall be installed at both ends of each pressurized product or delivery line to provide flexibility and to allow for vertical and horizontal movement in the piping , unless inherently flexible piping is installed in accordance with manufacturer's requirements and in accordance with an applicable code or standard of practice developed by a nationally recognized association or independent testing laboratory . The use of metal swing joints in a pressurized UST [ underground storage tank ] piping system is specifically prohibited.

(C)

If buried and in contact with soil or backfill materials, all metallic pipe, valves, and fittings (including flexible connectors) shall be equipped with corrosion protection [ a cathodic protection system ] meeting the applicable requirements in §334.49[ (c) ] of this title [ (relating to Corrosion Protection) ].

(D)

Only UL-listed (or agency accepted equivalent listing by Underwriters' Laboratories of Canada (ULC), or Factory Mutual Research Corporation (FMRC)) flexible connectors or nonmetallic piping listed for aboveground use or listed for use in sumps can be used without backfill cover in sumps, manways, or dispenser pans.

(d)

Secondary containment for UST systems.

(1)

Applicability.

(A)

(No change.)

(B)

A double-wall tank and piping system (or approved alternative) meeting the applicable requirements of this subchapter shall be installed for any UST system situated in the Edwards Aquifer recharge or transition zones, in accordance with Chapter 213 [ 313 ] of this title (relating to Edwards Aquifer).

(C)

The agency [ commission or the executive director ] may specifically require the installation of a secondary containment system meeting the requirements of this subsection at other times when necessary for the protection of human health or safety or the environment.

(2)

(No change.)

(3)

Secondary containment for tanks. One or more of the following methods may be used to provide secondary containment for tanks.

(A)

Double-wall tanks. Double-wall tanks may be used to comply with the secondary containment requirements of this subchapter, provided that such tanks shall meet the following additional provisions.

(i)

(No change.)

(ii)

The double-wall tank (including both the primary and secondary tank walls) shall be protected from corrosion in accordance with one or more of the allowable methods included in §334.49 of this title [ (relating to Corrosion Protection) ].

(iii)

The double-wall tank shall be designed, installed, operated, and maintained in accordance with one of the applicable codes or standards of practice listed as follows:

(I)

for fiberglass-reinforced plastic tanks: UL Standard 1316, "Standard for Safety for Glass-Fiber-Reinforced Plastic Underground Storage Tanks for Petroleum Products , Alcohols, and Alcohol-Gasoline Mixtures. " [ and ASTM Standard D 4021, "Standard Specification for Glass-Fiber-Reinforced Polyester Underground Petroleum Storage Tanks"; ]

(II)

for steel tanks: STI Standard, "Standard for Dual Wall Underground Steel Storage Tanks," UL Standard 58, "Standard for Safety for Steel Underground Tanks for Flammable and Combustible Liquids," and other applicable UL standards for double-wall steel tanks; and

(III)

any other code or standard of practice developed by a nationally [ naturally ] recognized association or independent testing laboratory that has been reviewed and determined by the agency [ executive director ] to be no less protective of human health and safety, and the environment than the standards described in subclauses (I) and (II) of this clause, in accordance with procedures in §334.43 of this title [ (relating to Variances and Alternative Procedures) ].

(iv)

The double-wall tank system shall be installed in accordance with the requirements in §334.46(f)(2) of this title [ (relating to Installation Standards for New UST Systems) ].

(B)

External liners. Tank excavation liners may be used to comply with the secondary containment requirements of this paragraph, provided that such liners shall meet the following additional provisions.

(i)

The tank excavation liner shall consist of an artificially constructed material that is of sufficient strength, thickness, puncture-resistance, and impermeability (i.e., allow permeation at a rate of no more than 0.25 ounces per square foot per 24 hours for the stored regulated substance) in order to permit the collection and containment of any releases from the UST [ underground storage tank ] system. The criteria for evaluation of the liner for compliance with this clause shall be in accordance with accepted industry practices for materials testing. Types of liners which may be used include certain reinforced and unreinforced flexible-membrane liners, rigid fiberglass-reinforced plastic liners, and reinforced concrete vaults.

(ii)

The liner shall be protected from corrosion in accordance with one or more of the allowable methods included in §334.49 of this title [ (relating to Corrosion Protection) ].

(iii)-(iv)

(No change.)

(v)

The liner shall be installed in accordance with the requirements in §334.46(f)(4) of this title [ (relating to Installation Standards for New UST Systems) ].

(4)

Secondary containment for piping. One or more of the following methods shall be used to provide secondary containment for piping.

(A)

Double-wall piping. Double-wall piping systems may be used to comply with the secondary containment requirements of this subchapter, provided that such piping systems meet the following additional provisions.

(i)

(No change.)

(ii)

The double-wall piping system (including both the primary and secondary piping) shall be protected from corrosion in accordance with one or more of the allowable methods included in §334.49 of this title [ (relating to Corrosion Protection) ].

(iii)

(No change.)

(iv)

The double-wall piping system shall be installed in accordance with the requirements in §334.46(f)(3) of this title [ (relating to Installation Standards for New UST Systems) ].

(B)

(No change.)

(e)

Technical standards for other new UST system equipment.

(1)

Vent lines. All underground portions of the vent lines (including all associated underground valves, fittings, and connectors) shall be designed and constructed in accordance with the piping requirements in subsection (c)(1) of this section, shall be properly protected from corrosion in accordance with one of the allowable methods in §334.49 of this title [ (relating to Corrosion Protection) ], and shall be installed in accordance with a code or standard of practice developed by a nationally recognized association or independent testing laboratory.

(2)

Fill pipes. All fill pipes (including any connected fittings) shall be:

(A)

(No change.)

(B)

properly protected from corrosion in accordance with one of the allowable methods in §334.49 of this title [ (relating to Corrosion Protection) ];

(C)

properly enclosed in or equipped with spill and overfill prevention equipment as required in §334.51(b) of this title [ (relating to Spill and Overfill Prevention and Control) ]; and

(D)

(No change.)

(3)

Release detection equipment. All release detection equipment shall be designed and constructed in accordance with the requirements for the particular type of equipment, as described in the applicable provisions in §334.50 of this title [ (relating to Release Detection) ].

(4)

Monitoring wells and observation wells.

(A)

All monitoring wells and observation wells installed on or after the effective date of this subchapter shall be designed, constructed, and installed in accordance with the requirements in §334.46(g) of this title [ (relating to Installation Standards for New UST Systems) ].

(B)

Each separate tank hole in a new UST system installed on or after the effective date of this subchapter shall include a minimum number of four-inch diameter (nominal) observation wells, as specified in the following clauses:

(i)-(ii)

(No change.)

(f)

Records for technical standards for new UST systems. Owners and operators of new UST systems shall maintain adequate records to demonstrate compliance with the applicable provisions in this section, which at a minimum, shall include all records required in §334.46(i) of this title [ (relating to Installation Standards for New UST Systems) ]. All records shall be maintained in accordance with §334.10(b) of this title (relating to Reporting and Recordkeeping).

§334.46.Installation Standards for New Underground Storage Tank [ UST ] Systems.

(a)

General installation procedures. Any new underground storage tank (UST) [ UST ] system installed on or after the effective date of this subchapter shall be installed in compliance with the provisions of this section.

(1)

Standards. All tanks, piping, and associated equipment shall be installed in accordance with at least one of the following standards, as applicable:

(A)-(C)

(No change.)

(D)

any other code or standard of practice developed by a nationally- recognized association or independent testing laboratory that has been reviewed and determined by the agency [ executive director ] to be no less protective of human health and safety and the environment than the standards described in subparagraphs (A)-(C) of this paragraph, in accordance with the procedures in §334.43 of this title (relating to Variances and Alternative Procedures).

(2)-(5)

(No change.)

(b)

Anchoring systems. Unless otherwise approved by the agency [ executive director ] in accordance with §334.43 of this title [ (relating to Variances and Alternative Procedures) ], all USTs [ underground storage tanks ] located in areas subject to high water tables or flooding shall be protected from any floatation or movement which could jeopardize the integrity of the UST [ underground storage tank ] system.

(1)-(2)

(No change.)

(c)

Piping system installation.

(1)

The piping layout shall be designed in a manner that will minimize the crossing of other lines and conduits, and the crossing of tanks and other UST [ underground storage tank ] system components. Where such crossing is unavoidable, adequate clearance shall be provided to prevent contact.

(2)-(3)

(No change.)

(d)

Installation testing for new tanks and piping.

(1)-(2)

(No change.)

(3)

In addition to the air tests, a tank tightness test and a piping tightness test meeting the requirements of §334.50(d)(1)(A) and (b)(2)(A)(ii)(I), respectively, of this title (relating to Release Detection) shall be performed after the backfill has been placed but prior to bringing the new UST [ underground storage tank ] system into operation.

(4)

Additional tests required. In addition to the air tests and tightness tests required in this subsection, the following additional installation tests shall be required, as applicable.

(A)

(No change.)

[(B)

For tanks which are factory constructed as either steel/fiberglass-reinforced plastic composite tanks or for steel tanks with a bonded fiberglass-reinforced plastic external cladding, an appropriate test shall be conducted by a qualified corrosion technician or qualified corrosion specialist to ensure that the steel tank shell remains electrically isolated from the surrounding soil, backfill, groundwater, and other metal components.]

[(i)

Such test shall be performed after the tank installation is completed but prior to placing the tank into operation, and shall be conducted by taking structure to soil voltage readings in accordance with procedures established by a code or standard of practice developed by a nationally recognized association or independent testing laboratory.]

[(ii)

If the test indicates that the steel tank shell is no longer electrically isolated, a qualified corrosion specialist shall review the test results and thoroughly inspect the area of the tank installation to ascertain the extent of electrical isolation and corrosion protection for the steel tank shell.]

[(iii)

If the qualified corrosion specialist determines that the steel tank shell is no longer adequately protected from corrosion, then the owner or operator shall assure that one or more of the following procedures are completed before the tank is placed into operation.]

[(I)

Appropriate repairs or modifications shall be made to restore the electrical isolation of the steel tank shell.]

[(II)

A field-installed cathodic protection system shall be installed in accordance with the requirements in §334.49(c)(2) of this title (relating to Corrosion Protection).]

(B)

[ (C) ] For steel tanks and other underground UST system components which are equipped with factory-installed or field-installed cathodic corrosion protection systems, the cathodic protection systems shall be tested for operability and adequacy of protection by a qualified corrosion technician or qualified corrosion specialist after the UST system installation is completed but prior to placing the system into operation.

(i)

If the test indicates that the cathodic protection system is inoperable or inadequate, a qualified corrosion specialist shall review the test results and thoroughly inspect the UST system to ascertain the extent of corrosion protection.

(ii)

If the qualified corrosion specialist determines that the UST system component is no longer adequately protected from corrosion, then the owner or operator shall assure that one or more of the following procedures are completed before the UST system is placed into operation.

(I)

Appropriate repairs or modifications shall be made to restore the cathodic corrosion protection to the applicable UST system components.

(II)

The cathodic protection system shall be replaced with another operable cathodic protection system which will provide adequate corrosion protection to the applicable UST system components, in accordance with the requirements in §334.49(c)(2) of this title [ (relating to Corrosion Protection) ].

(e)

Installation of cathodic protection systems. The installation of any field-installed cathodic protection system in a new or existing UST [ underground storage tank ] system shall be in accordance with the applicable requirements of §334.49(c)(2) of this title [ (relating to Corrosion Protection) ].

(f)

Installation of secondary containment systems.

(1)-(3)

(No change.)

(4)

Installation of external liners.

(A)-(D)

(No change.)

(E)

For UST [ underground storage tank ] systems which are equipped with cathodic protection equipment, the liner shall be installed so as not to jeopardize or inhibit the proper operation of such cathodic protection equipment.

(F)-(I)

(No change.)

(g)

Installation of monitoring wells and observation wells. All monitoring wells and observation wells installed in conjunction with an [ a ] UST system on or after the effective date of this subchapter shall be constructed and installed in accordance with the requirements of this paragraph.

(1)

General requirements for both monitoring wells and observation wells.

(A)

(No change.)

(B)

Except for observation wells installed pursuant to §334.45(e)(4)(B) of this title [ (relating to Technical Standards for New UST Systems) ], the determination of the appropriate number and the appropriate diameters of monitoring wells or observation wells shall be based on the planned purpose of such well and on the specific procedures, methods, and equipment to be utilized in achieving such purpose.

(C)-(D)

(No change.)

(E)

When installed or constructed for the purposes of compliance with one or more of the release detection methods in §334.50(d) of this title [ (relating to Release Detection) ], the specific number and positioning of the monitoring wells and/or observation wells shall be based on the results of an assessment of the underground areas within and immediately surrounding the UST system excavation zone to assure compliance with the specific criteria and requirements for the applicable release detection method. Such assessment shall be performed by qualified personnel who are familiar with the characteristics of the stored regulated substance and the groundwater, soil, and geologic conditions at the site.

(F)-(H)

(No change.)

(2)

Additional requirements for monitoring wells. In addition to the general requirements of paragraph (1) of this subsection, all monitoring wells installed in conjunction with an UST [ underground storage tank ] system shall be constructed or installed in accordance with the applicable requirements of 16 TAC, Chapter 76 [ Chapter 287 of this title ] (relating to Water Well Drillers) , and Texas Water Code (TWC), Chapter 32 (relating to Water Well Drillers). [ and the Water Well Drillers Act (Texas Civil Statutes, Article 7621e, Water Auxiliary Laws), and ] Any [ any ] person constructing or installing a monitoring well shall be appropriately licensed as required therein.

(3)

Additional requirements for observation wells. In addition to the general requirements of paragraph (1) of this subsection, the following requirements shall be applicable to all observation wells installed in conjunction with an UST [ underground storage tank ] system.

(A)

All observation wells that are regulated as monitoring wells by the Water Well Drillers Board shall be constructed or installed in accordance with the applicable requirements in 16 TAC, Chapter 76, and TWC, Chapter 32 (relating to Water Well Drillers. [ Chapter 287 of this title (relating to Water Well Drillers) and the Water Well Drillers Act (Texas Civil Statutes, Article 7621e, Water Auxiliary Laws), and ] Any [ any ] person constructing or installing such well shall be appropriately licensed as required therein.

(B)

All observation wells that are not regulated as monitoring wells by the Water Well Drillers Board shall be constructed or installed in accordance with the following minimum requirements.

(i)-(iii)

(No change.)

(iv)

For observation wells installed or constructed on or after the effective date of this subchapter in an existing UST system where the backfill consists of materials other than specialized or select materials (e.g., native soils), the well shall be constructed or installed in accordance with the applicable standards in 16 TAC, Chapter 76 [ Chapter 287 of this title (relating to Water Well Drillers) ]. If the observation well is not regulated as a monitoring well by the Water Well Drillers Board, the licensing requirements for persons constructing or installing such well shall not be applicable.

(h)

Certification of installation.

(1)

All owners and operators of new UST [ underground storage tank ] systems installed on or after the effective date of this subchapter shall ensure that the installation was completed in accordance with the provisions of this section, and that the following certification criteria applicable to the installation are met.

(A)

For all UST system installations commencing on or after the effective date of this subchapter but before February 1, 1990, the owner or operator shall assure that at least one of the following criteria is met:

(i)-(iii)

(No change.)

(iv)

the installation activities have been reviewed and determined by the agency [ executive director ] to prevent releases in a manner that is no less protective of human health and the environment than the methods described in clauses (i)-(iii) of this subparagraph. Any alternative methods must be submitted and approved in accordance with the procedures in §334.43 of this title [ (relating to Variances and Alternative Procedures) ].

(B)

For all UST system installations commencing on or after February 1, 1990, the owner or operator shall assure that the UST system installation is conducted by an installer licensed by the agency [ commission ].

(2)

The [ owner and the ] installer of the UST system shall complete the installation certification section of the agency's [ commission's ] authorized [ tank registration ] form, and shall certify by signature that the installation methods are in compliance with the provisions of this section, as required by §334.8(a) of this title (relating to Certification for Underground Storage Tanks (USTs) and UST Systems ).

(i)

Installation records.

(1)

(No change.)

(2)

Owners and operators shall maintain the following records for the operational life of the UST system:

(A)

general information relating to the installation activity, including:

(i)-(ii)

(No change.)

(iii)

copies of all related notifications or reports filed with the agency [ commission ] or others, including:

(I)

registration information, as required by §334.7 of this title (relating to Registration for Underground Storage Tanks (USTs) and UST Systems ); and

(II)

installation certification information, as required by §334.8(a) of this title [ (relating to Certification) ];

(B)-(C)

(No change.)

(3)

(No change.)

§334.47.Technical Standards for Existing Underground Storage Tank Systems.

(a)

General requirements.

(1)

Alternatives for existing underground storage tank (UST) [ UST ] systems. No later than the implementation dates specified in §334.44(b) of this title (relating to Implementation Schedules), all applicable components of any existing UST system (i.e., UST system for which installation has commenced or has been completed on or prior to December 22, 1988) shall be either installed, upgraded, improved, or replaced with equipment or components which meet or exceed either of the following requirements:

(A)

the requirements for technical standards and installation of new UST [ underground storage tank ] systems in §334.45 of this title (relating to Technical Standards for New UST Systems) and in §334.46 of this title (relating to Installation Standards for New UST Systems); or

(B)

(No change.)

(2)

(No change.)

(b)

Minimum upgrading requirements for all existing UST systems.

(1)

Tank integrity assessment and UST system cathodic protection. No later than December 22, 1998, all tanks in an existing UST system shall be assessed for structural integrity, and all underground metallic components of an existing UST system shall be equipped with a cathodic protection system, as provided in the following subparagraphs.

(A)

Tank integrity assessment. The tank shall be assessed for structural integrity and for the presence of corrosion holes by one or more of the following methods.

(i)

The tank may be equipped with one or more of the release detection systems meeting the applicable requirements of §334.50(d)(4)- (10) [ (9) ] of this title (relating to Release Detection). Such release detection system(s) shall have been in operation for at least 60 days prior to the date of the cathodic protection system installation, and at least one of the systems shall remain in operation for the remaining operational life of the tank.

(ii)

The tank may be tested by conducting at least two tank tightness tests meeting the requirements of §334.50(d)(1)(A) of this title [ (relating to Release Detection) ]. The first tightness test shall be conducted prior to installing the cathodic protection system, and the second test shall be conducted between three and six months after the cathodic protection system is placed into operation. For tanks constructed of non-corrodible material, or metal tanks clad or jacketed with noncorrodible material which are electrically isolated from surrounding soil, backfill or groundwater, the tank may be tested by conducting at least one tightness test meeting the requirements of §334.50(d)(1)(A) of this title, within the 12 month period prior to December 22, 1998.

(iii)

When the tank upgrading is to include the installation of an interior lining meeting the applicable provisions in §334.52(b) of this title (relating to UST System Repairs and Relining), a site assessment or release determination may be conducted prior to the installation of the interior lining and the cathodic protection system. Such site assessment or release determination shall be conducted in accordance with the provisions of §334.55(e) of this title [ (relating to Permanent Removal from Service) ].

(iv)

(No change.)

(v)

Prior to the installation of the cathodic protection system, the tank may be assessed for structural integrity and the presence of corrosion holes by an alternate method which has been reviewed and determined by the agency [ executive director ] to prevent releases in a manner that is no less protective of human health and the environment than the methods described in clauses (i)-(iv) of this subparagraph, in accordance with the provisions of §334.43 of this title (relating to Variances and Alternative Procedures).

(B)

Repairs or corrective action. If the results of the tank integrity assessment (required by subparagraph (A) of this paragraph) indicate that the existing tank is not structurally sound and/or that a release of regulated substances has occurred, then the owner and operator shall:

(i)

(No change.)

(ii)

conduct one of the following activities, as applicable:

(I)

perform appropriate repairs or relining of the tank, in accordance with the applicable requirements of §334.52 of this title [ (relating to UST System Repairs and Relining) ], as necessary to restore the structural integrity of the tank; or

(II)

permanently remove the tank from service in accordance with the applicable provisions in §334.55 of this title [ (relating to Permanent Removal from Service) ].

(C)

Field-installed cathodic protection system. After confirmation or restoration of the structural integrity of the tank, all underground metal components of the UST [ underground storage tank ] system, which are not isolated from the surrounding soil, backfill, and groundwater, and which either do or could convey, contain, or store regulated substances, shall be equipped with a field-installed cathodic protection system meeting the requirements of §334.49(c)(2) of this title (relating to Corrosion Protection).

(2)

Adding spill and overfill prevention equipment. No later than December 22, 1994, all existing USTs [ underground storage tanks ] shall be equipped with appropriate spill and overfill prevention equipment, in accordance with the provisions in §334.51(b) of this title (relating to Spill and Overfill Prevention and Control).

(3)

Adding release detection for UST system piping.

(A)

Release detection for pressurized piping. No later than December 22, 1990, all piping in an existing UST system that routinely conveys regulated substances under pressure (i.e., which operates at greater than atmospheric pressure) shall be brought into compliance with the pressurized piping release detection requirements in §334.50(b)(2)(A) of this title [ (relating to Release Detection) ].

(B)

Release detection for suction piping and gravity-flow piping. All piping in an existing UST system that routinely conveys regulated substances either under suction (i.e., which operates at less than atmospheric pressure) or by gravity-flow shall be brought into compliance with the applicable release detection requirements in §334.50(b)(2)(B) of this title [ (relating to Release Detection) ] no later than the date on which release detection is required for the tank to which such piping is connected, as prescribed in paragraph (4) of this subsection.

(4)

Adding release detection for tanks.

(A)

Except as provided in subparagraph (B) of this paragraph, all tanks at an existing UST system shall be brought into compliance with the tank release detection requirements in §334.50(b)(1) of this title [ (relating to Release Detection) ] no later than the date specified in the following clauses for the time of installation applicable to such tanks:

(i)-(vii)

(No change.)

(B)

(No change.)

(C)

When two or more existing tanks are located in a common tank hole, and when the selected method of release detection is either vapor monitoring or groundwater monitoring in accordance with §334.50(d)(5) and (6) of this title [ (relating to Release Detection) ], then all such tanks shall be brought into compliance with the applicable release detection requirements of this paragraph no later than the date specified for the oldest tank in such common tank hole.

(c)

Additional upgrading requirements for existing hazardous substance UST systems. In addition to the upgrading requirements applicable to all existing UST systems in subsections (a) and (b) of this section, all existing hazardous substance UST systems (e.g., UST system for which installation has commenced or has been completed on or prior to December 22, 1988) shall be equipped or retrofitted with a secondary containment system and an associated release detection system in accordance with the following provisions.

(1)

No later than December 22, 1998, all existing hazardous substance UST systems shall be equipped with a secondary containment system meeting the design, construction, and installation requirements in §334.45(d) of this title [ (relating to Technical Standards for New UST Systems) ] and §334.46(f) of this title [ (relating to Installation Standards for New UST Systems) ].

(2)

No later than December 22, 1998, all existing hazardous substance UST systems shall be equipped with a release detection system capable of monitoring either the interstitial spaces between the primary and secondary walls of any double-walled UST component, or the spaces between the primary UST component walls and any external liners, as applicable, in accordance with the provisions in §334.50(c) of this title [ (relating to Release Detection) ].

(d)

Records for upgrading of existing UST systems.

(1)

(No change.)

(2)

Owners and operators shall maintain the following records for the operational life of the UST system:

(A)

general information related to the tank integrity assessment and cathodic protection requirements in subsection (b) of this section, including:

(i)-(ii)

(No change.)

(iii)

copies of all related notifications or reports filed with the agency [ commission ] or others, including:

(I)

registration information, as required by §334.7 of this title (relating to Registration for Underground Storage Tanks (USTs) and UST Systems ); and

(II)

installation certification information, as required by §334.8(a) of this title (relating to Certification for Underground Storage Tanks (USTs) and UST Systems );

(B)

as-built drawings (or plans), which have been drawn to scale and in sufficient detail so as to accurately depict and describe the sizes, dimensions, and locations of any UST system components or equipment added or installed on or after the effective date of this subchapter which are installed pursuant to one of the construction activities included in §334.6(b)(1)(A) of this title (relating to Construction Notification for Underground Storage Tanks (USTs) and UST Systems ); and

(C)

(No change.)

(3)

(No change.)

§334.48.General Operating and Management Requirements.

(a)

Prevention of releases. All owners and operators of underground storage tank (UST) [ UST ] systems shall ensure that the systems are operated, maintained, and managed in a manner that will prevent releases of regulated substances from such systems.

(b)

(No change.)

(c)

Inventory control. On or after the effective date of this subchapter, regardless of which method of release detection is used for compliance with §334.50 of this title (relating to Release Detection), effective manual or automatic inventory control procedures shall be conducted for all UST systems at retail service stations where petroleum substances used as motor fuels are stored and dispensed from fixed equipment into the fuel tanks of motor vehicles and where such dispensing is an act of retail sale. Such inventory control procedures shall be in accordance with §334.50(d)(1)(B) of this title [ a code or standard of practice developed by a nationally recognized association or independent testing laboratory ]. Complete and accurate inventory records shall be maintained in accordance with §334.10 of this title (relating to Reporting and Recordkeeping).

(d)

(No change.)

(e)

Operational requirements for release detection equipment. Owners and operators of all new and existing UST [ underground storage tank ] systems shall ensure that all release detection equipment installed as part of a UST system pursuant to §334.50 of this title [ (relating to Release Detection) ] is maintained in good operating condition. The owner or operator shall also assure that such equipment is routinely inspected and serviced in accordance with the manufacturer's specifications and in a manner that will assure the proper performance, operability, and running condition of the equipment. Where periodic testing and/or monitoring activities are required as part of a specific release detection method under §334.50 of this title [ (relating to Release Detection) ], such tests and/or monitoring activities shall be performed at the prescribed times and/or frequencies.

(f)

(No change.)

(g)

Operation and maintenance records. Owners and operators shall maintain records relating to the operation and maintenance of a UST system (including records related to inspection, servicing, testing, and inventory control) as prescribed in this section for at least five years, and such records shall be maintained in accordance with §334.10(b) of this title [ (relating to Reporting and Recordkeeping) ].

§334.49.Corrosion Protection.

(a)

General requirements.

(1)

Owners and operators of underground storage tank (UST) systems (or underground metal UST system components) which are required to be protected from corrosion shall comply with the requirements in this section to ensure that releases due to corrosion are prevented [ for as long as the underground storage tanks system is used to store regulated substances ].

(2)

All corrosion protection systems shall be designed, installed, operated, and maintained in a manner that will ensure that corrosion protection will be continuously provided to all underground metal components of the UST [ underground storage tank ] system [ for as long as the components are used to store regulated substances ].

(3)

Any alternative methods for corrosion protection or variances from the requirements of this section are prohibited, except when reviewed and approved by the agency [ executive director ] pursuant to procedures for variances found in §334.43 of this title (relating to Variances and Alternative Procedures).

(4)

Corrosion protection in accordance with the provisions of this section shall be provided to all underground metal components of an [ a ] UST system which are designed or used to convey, contain, or store regulated substances, including, but not [ necessarily ] limited to, the tanks, piping (including valves, fittings, flexible connectors, swing joints, and impact/shear valves), and also to other underground metal components associated with an UST system, including but not limited to; s econdary containment devices, manways, manholes, fill pipes, vent lines, submersible pump housings, spill containers, and riser pipes.

(5)

For internal corrosion protection, the interior bottom surface of new metal tanks installed on or after September 29, 1989, [ the effective date of this subchapter ] shall be fitted with a striker plate under all fill, gauge, and monitoring openings.

(6)

When provisions of this subsection require compliance with a specific code or standard of practice developed by a nationally recognized association or independent testing laboratory, the most recent version of the referenced code in effect at the time of the regulated UST activity shall be applicable.

(7)

For an UST system to be placed temporarily out of service, the owner or operator must comply with the requirements of §334.54(c) of this title (relating to Temporary Removal from Service).

(b)

Allowable corrosion protection methods. All components of an [ a ] UST system which are designed to convey, contain, or store regulated substances shall be protected from corrosion by one or more of the following methods.

(1)-(3)

(No change.)

(4)

Tanks (only) may be factory-constructed either as a steel/fiberglass-reinforced plastic composite tank, or as a steel tank with a bonded fiberglass-reinforced plastic external cladding or laminate, or as a steel tank with a bonded fiberglass reinforced polyurethane coating, as a steel tank with a bonded polyurethane external coating, or as a steel tank completely contained within a nonmetallic external tank jacket in accordance with the requirements in §334.45(b)(1)(D) , (E), or (F) of this title, as applicable [ (relating to Technical Standards for New Underground Storage Tank Systems) ].

(5)-(6)

(No change.)

(7)

Corrosion protection in accordance with the requirements of this subchapter is not required if it is determined by a corrosion specialist that corrosion protection of an underground metal UST system or UST system component is unnecessary because the site is not corrosive enough to cause a release due to corrosion for the operational life of the UST system. The upgrade or repair of an existing corrosion protection system for an underground metal UST system or UST system component is not required if it is determined by a corrosion specialist that said upgrading or repair is unnecessary and that the protection provided by the existing corrosion protection system is sufficient to prevent a release due to corrosion for the operational life of the UST system. In either case, the determination of the corrosion specialist must be made in writing, must be signed by the corrosion specialist (corrosion specialist must also seal the written determination if he or she is a qualified duly licensed professional engineer in Texas), and must be maintained by the owner and operator as part of the records for the facility in keeping with the requirements of subsection (e) of this section and §334.10(b) of this title (relating to Reporting and Recordkeeping).

(c)

Cathodic protection systems.

(1)

Factory-installed cathodic protection systems.

(A)

A factory-installed cathodic protection system on any UST [ underground storage tank ] component shall be designed, fabricated, installed, operated, and maintained in accordance with applicable codes or standards of practice developed for such cathodic protection method by a nationally recognized association or independent testing laboratory.

(B)

(No change.)

(2)-(4)

(No change.)

(d)

Requirements for other corrosion protection methods.

(1)

Electrically isolated components.

(A)

Any metal component of an UST [ underground storage tank ] system which is protected from corrosion by one of the electrical isolation methods described in subsection (b)(2) and (3) of this section, and which is not equipped with a cathodic protection system, shall be periodically inspected and tested to ensure that the metal component remains electrically isolated from the surrounding soil, backfill, groundwater, and other metal components in accordance with one or more of the following procedures.

(i)-(ii)

(No change.)

(iii)

The component may be inspected and/or tested by an alternative method which has been reviewed and determined by the agency [ executive director ] to ascertain electrical isolation and to prevent the release or threatened release of any stored regulated substance in a manner that is no less protective of human health and safety and the environment than the methods described in clauses (i) and (ii) of this subparagraph, in accordance with the procedures in §334.43 of this title [ (relating to Variances and Alternative Procedures) ].

(B)-(D)

(No change.)

(2)

Dual-protected tanks. If a steel/fiberglass-reinforced plastic composite tank, [ or ] a steel tank with a bonded fiberglass-reinforced plastic external cladding or laminate, a steel tank with a bonded fiberglass reinforced polyurethane coating, or a steel tank with a bonded polyurethane coating is also equipped with a factory-installed cathodic protection system, then the normal inspection and testing requirements for cathodic protection systems in subsection (c)(4) of this section may be waived. This paragraph shall be applicable only to tanks meeting the design and construction requirements in §334.45(b)(1)(D) or §334.45(b)(1)(E) of this title, as applicable, [ (relating to Technical Standards for New Underground Storage Tank Systems) ], and when such tanks are fitted with factory-installed cathodic protection systems [ system ] meeting the requirements of subsection (c)(1) of this section.

(e)

Corrosion protection records.

(1)

(No change.)

(2)

Owners and operators shall maintain records adequate to demonstrate compliance with the corrosion protection requirements in this section, and in accordance with the following minimum requirements.

(A)

All appropriate installation records related to the corrosion protection system, as listed in §334.46(i) of this title [ (relating to Installation Standards for New UST Systems) ], shall be maintained for as long as the corrosion protection system is used, including:

(i)-(iii)

(No change.)

(B)

(No change.)

§334.50.Release Detection.

(a)

General requirements.

(1)

Owners and operators of new and existing underground storage tank (UST) systems shall provide a method, or combination of methods, of release detection which shall be:

(A)

capable of detecting a release from any portion of the UST [ underground storage tank ] system which contains regulated substances including the tanks, piping, and other underground ancillary equipment;

(B)

installed, calibrated, operated, [ and ] maintained , utilized and interpreted (as applicable) in accordance with the manufacturer's and/or methodology provider's specifications and instructions consistent with the other requirements of this section , and by personnel possessing the necessary experience, training, and competence to accomplish such requirements; and

(C)

capable of meeting the particular performance requirements of such method (or methods) as specifically prescribed in this section, based on the performance claims by the equipment manufacturer or methodology provider/vendor [ installer ], as verified by third party evaluation conducted by a qualified independent testing organization, using applicable United States Environmental Protection Agency protocol, provided that the following additional requirements shall also be met.

(i)

Any performance claims, together with their bases or methods of determination including the summary portion of the independent third party evaluation , shall be obtained by the owner and/or operator from the equipment manufacturer , methodology provider, or installer and shall be in writing.

(ii)

When any of the following release detection methods are used on or after December 22, 1990 (except for methods permanently installed and in operation prior to that date), such method shall be capable of detecting the particular release rate or quantity specified for that method such that the probability of detection shall be at least 95% and the probability of false alarm shall be no greater than 5.0%:

(I)-(II)

(No change.)

(III)

automatic line leak detectors for piping, as prescribed in subsection (b)(2)(A)(i) of this section; [ and ]

(IV)

piping tightness testing, as prescribed in subsection (b)(2)(A)(ii)(I) of this section ; [ . ]

(V)

electronic leak monitoring systems for piping, as prescribed in subsections (b)(2)(A)(ii)(III) and (B)(i)(III) of this section; and

(VI)

statistical inventory reconciliation (SIR), as prescribed in subsection (d)(9) of this section.

(2)-(3)

(No change.)

(4)

As prescribed in §334.47(a)(2) of this title (relating to Technical Standards for Existing UST Systems), any existing UST system that cannot be equipped or monitored with a method of release detection that meets the requirements of this section shall be permanently removed from service in accordance with the applicable procedures in §334.55 of this title (relating to Permanent Removal from Service) no later than 60 days after the implementation date for release detection as prescribed by the applicable schedules in §334.44 of this title [ (relating to Implementation Schedules) ].

(5)

Any owner or operator who plans to install a release detection method for an UST system shall comply with the applicable construction notification requirements in §334.6 of this title (relating to Construction Notification for Underground Storage Tanks (USTs) and UST Systems ), and upon completion of the installation of such method shall also comply with the applicable registration and certification requirements of §334.7 of this title (relating to Registration for Underground Storage Tanks (USTs) and UST Systems ) and §334.8 of this title (relating to Certification for Underground Storage Tanks (USTs) and UST Systems ).

(6)

Any equipment installed or used for conducting release detection for an [ a ] UST system shall be listed, approved, designed, and operated in accordance with standards developed by a nationally recognized association or independent testing laboratory (e.g., UL) for such installation or use , as specified in §334.42(d) of this title (relating to General Standards) .

(7)

For an UST system to be placed temporarily out of service, the owner or operator must comply with the requirements of §334.54(c) of this title (relating to Temporary Removal from Service).

(b)

Release detection requirements for all UST systems. Owners and operators of all UST systems shall ensure that release detection equipment or procedures are provided in accordance with the following requirements.

(1)

Release detection requirements for tanks.

(A)

Except as provided in subparagraphs (B) and (C) of this paragraph, all tanks shall be monitored in a manner which will detect a [ for ] release [ releases ] at a frequency of at least once every month (not to exceed 35 days between each monitoring) by using one or more of the release detection methods described in subsection (d)(4)- (10) [ (9) ] of this section).

(B)

A combination of tank tightness testing and inventory control in accordance with subsection (d)(1) of this section may be used as an acceptable release detection method for tanks only until December 22, 1998, and the required frequency of the tank tightness test shall be based on the following criteria.

(i)

A tank tightness test shall be conducted at least once each year for any tank in an existing UST system which is not being operated in violation of the upgrading or replacement schedule in §334.44(b) of this title [ (relating to Implementation Schedules) ], but has not yet been either:

(I)

replaced with an [ a ] UST system meeting the applicable technical and installation standards in §334.45 of this title (relating to Technical Standards for New UST Systems) and §334.46 of this title (relating to Installation Standards for New UST Systems); or

(II)

retrofitted or equipped in accordance with the minimum upgrading requirements applicable to existing UST systems in §334.47 of this title [ (relating to Technical Standards for Existing UST Systems) ].

(ii)

A tank tightness test shall be conducted at least once every five years for any tank in an [ a ] UST system which has been either:

(I)

installed in accordance with the applicable technical standards for new UST systems in §334.45 of this title [ (relating to Technical Standards for New UST Systems) ] and §334.46 of this title [ (relating to Installation Standards for New UST Systems) ]; or

(II)

retrofitted or equipped in accordance with the minimum upgrading requirements applicable to existing UST systems in §334.47 of this title [ (relating to Technical Standards for Existing UST Systems) ].

(C)

The manual tank gauging method of release detection, as prescribed in subsection (d)(2) of this section, may be used as the sole release detection system only for a petroleum substance tank with a nominal capacity of 1,000 [ 550 ] gallons or less. The monthly tank gauging method of release detection, as prescribed in subsection (d)(3) of this section, may be used as the sole release detection system only for emergency generator tanks.

(D)

(No change.)

(2)

Release detection for piping. Piping in an UST [ underground storage tank ] system shall be monitored in a manner which will [ designed to ] detect a release from any portion of the piping system, [ and ] in accordance with the following requirements.

(A)

Requirements for pressurized piping. UST [ Underground storage tank ] system piping that conveys regulated substances under pressure shall be in compliance with the following requirements.

(i)

Each separate pressurized line shall be equipped with an automatic line leak detector meeting the following requirements.

(I)

The line leak detector shall be capable of detecting any release from the piping system of [ which equals or exceeds ] three gallons per hour when the piping pressure is at ten [ 10 ] pounds per square inch.

(II)

The line leak detector shall be capable of alerting the UST system operator of any release within one hour of occurrence either by shutting off the flow of regulated substances, or by substantially restricting the flow of regulated substances[ , or by emitting or triggering audible and visible alarms ].

(III)

(No change.)

(ii)

In addition to the required line leak detector prescribed in clause (i) of this subparagraph, each pressurized line shall also be tested or monitored for releases in accordance with at least one of the following methods.

(I)

The piping may be tested at least once per year by means of a piping tightness test conducted in accordance with a code or standard of practice developed by a national recognized association or independent testing laboratory. Any such piping tightness test shall be capable of detecting any release from the piping system [ which equals or exceeds a rate ] of 0.1 gallons per hour when the piping pressure is at 150% of normal operating pressure.

(II)

The piping may be monitored for releases at least once every month (not to exceed 35 days between each monitoring) by using one or more of the release detection methods prescribed in subsection (d)(5)- (10) [ (9) ] of this section.

(III)

The piping may be monitored for releases at least once every month (not to exceed 35 days between each monitoring) by means of an electronic leak monitoring system capable of detecting any release from the piping system of 0.2 gallons per hour at normal operating pressure.

(B)

Requirements for suction piping and gravity flow piping.

(i)

Except as provided in clause (ii) of this subparagraph, each separate line in an [ a ] UST piping system that conveys regulated substances either under suction or by gravity flow shall meet at least one of the following requirements.

(I)

Each separate line may be tested at least once every three years by means of a positive or negative pressure [ piping ] tightness test applicable to underground product piping and conducted in accordance with a code or standard of practice developed by a nationally recognized association or independent testing laboratory. Any such piping test shall be capable of detecting any release from the piping system [ which equals or exceeds a rate ] of 0.1 gallons [ gallon ] per hour [ when the piping pressure is at 150% of normal operating pressure ].

(II)

Each line may be monitored for releases at least once every month (not to exceed 35 days between each monitoring) by using one or more of the release detection methods prescribed in subsection (d)(5)- (10) [ (9) ] of this section.

(ii)

No release detection methods are required to be installed or applied for any piping system that conveys regulated substances under suction when such suction piping system is designed and constructed in accordance with the following standards : [ . ]

(I)

The below-grade piping operates at less than atmospheric pressure ; [ . ]

(II)

The below-grade piping is sloped so that all the contents of the pipe will drain back into the storage tank if the suction is released ; [ . ]

(III)

Only one check valve is included in each suction line ; [ . ]

(IV)

The check valve is located aboveground, directly below and as close as practical to the suction pump ; and [ . ]

(V)

[ A method is incorporated into the system design that will allow ] Verification [ verification ] that the requirements under subclauses (I)-(IV) of this clause have been met can be provided in the form of: [ . ]

(-a-)

signed as-built drawings or plans provided by the installer or by a professional engineer who is duly licensed to practice in Texas, or

(-b-)

signed written documentation provided by an UST contractor who is properly registered with the agency, or by an UST installer who is properly licensed with the agency, or by a professional engineer who is duly licensed to practice in Texas.

(C)

(No change.)

(c)

Additional release detection requirements for hazardous substance UST systems. In addition to the release detection requirements for all UST systems prescribed in subsections (a) and (b) of this section, owners and operators of all hazardous substance UST systems shall also assure compliance with the following additional requirements.

(1)-(2)

(No change.)

(3)

Secondary containment and monitoring.

(A)

All hazardous substance UST systems (including tanks and piping) shall be equipped with a secondary containment system which shall be designed, constructed, installed, and maintained in accordance with §334.45(d) of this title [ (relating to Technical Standards for New UST Systems) ] and §334.46(f) of this title [ (relating to Installation Standards for New UST Systems) ].

(B)

All hazardous substance UST systems (including tanks and piping) shall include one or more of the release detection methods or equipment prescribed in subsection (d)(7)- (10) [ (9) ] of this section, which shall be capable of monitoring the space between the primary tank and piping walls and the secondary containment wall or barrier.

(d)

Allowable methods of release detection. Tanks in an [ a ] UST system may be monitored for releases using one or more of the methods included in paragraphs (2)-(10) [ (1)-(9) ] of this subsection. Piping in an [ a ] UST system may be monitored for releases using one or more of the methods included in paragraphs (5)- (10) [ (9) ] of this subsection. Any method of release detection for tanks and/or piping in this section shall be allowable only when installed (or applied), operated, calibrated, and maintained in accordance with the particular requirements specified for such method in this subsection.

(1)

Tank tightness testing and inventory control. A combination of tank tightness testing and inventory control may be used as a tank release detection method only until December 22, 1998, subject to the following conditions and requirements.

(A)

Tank tightness test. Any tank tightness test shall be conducted in conformance with the following standards.

(i)-(ii)

(No change.)

(iii)

The tank tightness test shall be capable of detecting a release [ which equals or exceeds a rate ] of 0.1 gallons [ gallon ] per hour from any portion of the tank which contains regulated substances.

(iv)

(No change.)

(B)

Inventory control. All inventory control procedures shall be in conformance with the following requirements.

(i)

(No change.)

(ii)

Reconciliation of detailed inventory control records shall be conducted at least once each month, and shall be sufficiently accurate to detect a release as small as [ which equals or exceeds ] the sum of 1.0% of the total substance flow-through for the month plus 130 gallons.

(iii)

(No change.)

[(iv)

For tanks with a nominal capacity of 2,000 gallons or less, the owner or operator may use the manual tank gauging method (in accordance with paragraph (2) of this subsection) as a substitute for the inventory control procedures prescribed in this subsection.]

(2)

Manual tank gauging. Manual tank gauging may be used as a tank release detection method, subject to the following limitations and requirements.

(A)

Manual tank gauging in accordance with this subparagraph may be used as the sole method of tank release detection only for petroleum substance tanks having a nominal capacity of 1,000 [ 550 ] gallons or less.

[ (B)

When used in conjunction with tank tightness testing performed in accordance with paragraph (1)(A) of this subsection, manual tank gauging may be used in lieu of the normal inventory control procedures in paragraph (1)(B) of this subsection as a tank release detection method for any tanks having a nominal capacity of 2000 gallons or less.]

(B)

[ (C) ] The use of manual tank gauging shall not be considered an acceptable method for meeting the release detection requirements of this section for any tanks with a nominal capacity greater than 1,000 [ 2,000 ] gallons.

(C)

[ (D) ] When used for compliance with the release detection requirements of this section, the procedures and requirements in the following clauses shall be applicable.

(i)

For purposes of this subparagraph only, the following definitions are applicable.

(I)

Level measurement - The average of two consecutive liquid level readings from a tank gauge, measuring stick, or other measuring equipment.

(II)

Gauging period - A weekly period [ of at least 36 hours ] during which no substance is added to or removed from the tank. The duration of the gauging period is dependant upon tank volume and diameter, as specified in clause (v) of this subsection.

(III)

Weekly deviation - The variation between the level measurements taken at the beginning and the end of one gauging period, converted to and expressed as gallons.

(IV)

Monthly deviation - The arithmetic average of four consecutive weekly deviations, expressed as gallons.

(ii)

Any measuring equipment shall be capable of measuring the level of stored substance over the full range of the tank's height to the nearest one-eighth of an inch.

(iii)

Separate liquid level measurements in the tank shall be taken weekly at the beginning and the ending of the gauging period, and the weekly deviation shall be determined from such level measurements.

(iv)

Once each month, after four consecutive weekly deviations are determined, a monthly deviation shall be calculated.

(v)

For the purposes of the manual tank gauging method of release detection, a release shall be indicated when either the weekly deviation or the monthly deviation exceeds the maximum allowable standards indicated in the following subclauses:

(I)

for a tank with a capacity of 550 gallons or less (any tank diameter) : minimum duration of gauging period = 36 hours; weekly standard = 10 gallons; monthly standard = five gallons;

(II)

for a tank with a capacity of 551 gallons to 1,000 gallons (when tank diameter is 64 inches) : minimum duration of gauging period = 44 hours; weekly standard = nine [ 13 ] gallons; monthly standard = four [ seven ] gallons;

(III)

for a tank with a capacity of 551 gallons to 1,000 gallons (when tank diameter is 48 inches): minimum duration of gauging period = 58 hours; weekly standard = 12 gallons; monthly standard = six gallons [ 1,001 gallons to 2,000 gallons: weekly standard = 26 gallons; monthly standard = 13 gallons ].

(vi)

When either the weekly standard or the monthly standard is exceeded and a suspected release is thereby indicated, the owner or operator shall comply with the applicable release reporting, investigation, and corrective action requirements of Subchapter D of this chapter [ (relating to Release Reporting and Corrective Action) ].

(3)

Monthly tank gauging. Monthly tank gauging may be used as a tank release detection method, subject to the following limitations and requirements.

(A)-(B)

(No change.)

(C)

When used for compliance with the release detection requirements of this section, the procedures and requirements in the following clauses shall be applicable.

(i)-(iv)

(No change.)

(v)

When the monthly standard is exceeded and a suspected release is thereby indicated, the owner or operator shall comply with the applicable release reporting, investigation, and corrective action requirements of Subchapter D of this chapter [ (relating to Release Reporting and Corrective Action) ].

(4)

Automatic tank gauging and inventory control.

(A)

A combination of automatic tank gauging and inventory control may be used as a tank release detection method, subject to the following requirements.

(i)

(No change.)

(ii)

The automatic tank gauging equipment shall be capable of:

(I)

(No change.)

(II)

performing an automatic test for substance loss that can detect a release [ which equals or exceeds a rate ] of 0.2 gallon per hour from any portion of the tank which contains regulated substances.

(B)

For emergency generator tanks only, automatic tank gauging may be used as a tank release detection method, provided that the automatic tank gauging equipment shall be capable of:

(i)-(ii)

(No change.)

(iii)

performing an automatic test for substance loss that can detect a release [ which equals or exceeds a rate ] of 0.2 gallon per hour from any portion of the tank which contains regulated substances.

(5)

Vapor monitoring. Equipment and procedures designed to test or monitor for the presence of vapors from the regulated substance (or from a related tracer substance) in the soil gas of the backfilled excavation zone may be used, subject to the following limitations and requirements.

(A)

(No change.)

(B)

The stored regulated substance, or any tracer substance placed in the tank system, shall be sufficiently volatile so that, in the event of a substance release from the UST system, vapors will develop to a level that can be readily detected by the monitoring devices located in the excavation zone.

(C)-(F)

(No change.)

(G)

All monitoring wells and observation wells shall be designed and installed in accordance with the requirements of §334.46(g) of this title [ (relating to Installation Standards for New UST Systems) ].

(6)

Groundwater monitoring. Equipment or procedures designed to test or monitor for the presence of regulated substances floating on or dissolved in the groundwater in the excavation zone may be used, subject to the following limitations and requirements.

(A)-(C)

(No change.)

(D)

Any preexisting background contamination in the monitored zone shall not interfere with the capability of the groundwater monitoring equipment or methodology to detect releases from the UST system, and the groundwater monitoring equipment or methodology shall be capable of detecting any significant increase above preexisting background levels in the amount of regulated substance floating on or dissolved in the groundwater.

(E)

[ (D) ] Prior to installation of any groundwater monitoring equipment, the site of the UST system (within and immediately below the excavation zone) shall be assessed by qualified personnel to:

(i)

ensure compliance with the requirements of subparagraphs (A) and (B) of this paragraph; and

(ii)

determine the appropriate number and positioning of any monitoring wells and/or observation wells, so that releases from any part of the UST system can be detected within one month (not to exceed 35 days) of the release.

(F)

[ (E) ] All monitoring wells and observation wells shall be designed, installed, and maintained in accordance with the requirements in §334.46(g) of this title [ (relating to Installation Standards for New Underground Storage Tank Systems) ].

(7)

Interstitial monitoring for double-wall UST systems. Equipment designed to test or monitor for the presence of regulated substance vapors or liquids in the interstitial space between the inner (primary) and outer (secondary) walls of a double-wall UST [ underground storage tank ] system may be used, subject to the following conditions and requirements.

(A)

Any double-wall UST system using this method of release detection shall be designed, constructed, and installed in accordance with the applicable technical and installation requirements in §334.45(d) of this title [ (relating to Technical Standards for New UST Systems) ] and §334.46(f) of this title [ (relating to Installation Standards for New UST Systems) ].

(B)-(C)

(No change.)

(8)

Monitoring of UST systems with secondary containment barriers. Equipment designed to test or monitor for the presence of regulated substances (liquids or vapors) in the excavation zone between the UST system and an impermeable secondary containment barrier immediately around the UST system may be used, subject to the following conditions and requirements.

(A)

Any secondary containment barrier or liner system at an [ a ] UST system using this method of release detection shall be designed, constructed, and installed in accordance with the applicable technical and installation requirements in §334.45(d) of this title [ (relating to Technical Standards for New UST Systems) ] and §334.46(f) of this title [ (relating to Installation Standards for New UST Systems) ].

(B)-(D)

(No change.)

(E)

All observation wells shall be designed and installed in accordance with the requirements in §334.46(g) of this title [ (relating to Installation Standards for New UST Systems) ].

(9)

SIR and inventory control.

(A)

A combination of SIR and inventory control may be used as a release detection method for UST system tanks and lines, subject to the following requirements.

(i)

Inventory control procedures must be in compliance with paragraph (1)(B) of this subsection.

(ii)

The SIR methodology as utilized by its provider or vendor, or by its vendor-authorized franchisee or licensee or representative must analyze inventory control records in a manner which can detect a release of 0.2 gallons per hour from any part of the UST system.

(iii)

The UST system owner and/or operator must take appropriate steps to assure that they receive a monthly analysis report from the entity which actually performs the SIR analysis (either the SIR provider/vendor or the provider/vendor-authorized franchisee or licensee or representative) in no more than 35 calendar days from (and inclusive of) the first day of the month for which the analysis is performed. This analysis report must, at minimum:

(I)

state the name of the SIR provider/vendor and the name and version of the SIR methodology which was utilized for the analysis as they are listed in the independent third party evaluation of that methodology;

(II)

state the name of the company and the individual (or the name of the individual if no company affiliation) who performed the analysis, if it was performed by an provider/vendor-authorized franchisee or licensee or representative;

(III)

state the name and address of the facility at which analysis is performed and provide a description of each UST system for which analysis has been performed;

(IV)

quantitatively state in gallons per hour for each UST system being monitored: the leak threshold for the month analyzed, and the minimum detectable leak rate for the month analyzed, and the indicated leak rate for the month analyzed;

(V)

qualitatively state one of the following for each UST system being monitored: "pass (no reportable release detected)", or "fail (reportable release detected)", or "fail (reportable release suspected)", or "fail (results inconclusive)", or "fail (data insufficient to perform reliable analysis)."

(iv)

Any UST system analysis report result other than "pass (no release indicated)" must be reported to the agency by the UST system owner or operator as a suspected release in accordance with §334.72 of this title (relating to Reporting of Suspected Releases).

(v)

Any UST system analysis report result of "fail (results inconclusive)" or "fail (data insufficient to perform reliable analysis)" may be considered by the agency as failure on the part of the owner and/or operator to perform release detection for that period.

(vi)

At least once per calendar quarter, the SIR provider/vendor must select at random, at least one of the individual UST system analyses performed by each of its authorized franchisees or licensees or representatives during that period and audit that analysis to assure that provider/vendor standards are being maintained with regard to the acceptability of inventory control record data, the acceptability of analysis procedures, and the accuracy of analysis results. The written result of that audit must be provided to the authorized franchisee or licensee or representative and to the owner and/or operator of the audited UST system(s) by the SIR provider/vendor during that calendar quarter. In addition, within 30 days following each calendar quarter, the SIR provider/vendor must provide to the agency a list containing the name and address of each of its authorized franchisees or licensees or representatives which specifies for each one, the name and address of each facility at which one or more UST system audits were performed during the previous calendar quarter.

(10)

[ (9) ] Alternative release detection method. Any other release detection method, or combination of methods, may be used if such method has been reviewed and determined by the agency [ executive director ] to be capable of detecting a release from any portion of the UST system in a manner that is no less protective of human health and safety and the environment than the methods described in paragraphs (1)-(8) of this subsection, in accordance with the provisions of §334.43 of this title [ (relating to Variances and Alternative Procedures) ].

(e)

Release detection records.

(1)

(No change.)

(2)

Owners and operators shall maintain records adequate to demonstrate compliance with the release detection requirements in this section, and in accordance with the following minimum requirements.

(A)

All appropriate installation records related to the release detection system, as listed in §334.46(i) of this title [ (relating to Installation Standards for New UST Systems) ], shall be maintained for as long as the release detection system is used.

(B)

All written performance claims pertaining to any release detection system used, and documentation of the manner in which such claims have been justified , verified, or tested by the equipment manufacturer , methodology provider/vendor or independent third party evaluator [ or installer, ] shall be maintained for as long as the release detection system is used.

(C)-(E)

(No change.)

§334.51.Spill and Overfill Prevention and Control.

(a)

General spill and overfill control requirements.

(1)

Owners and operators of all new and existing underground storage tank (UST) systems shall ensure that releases of regulated substances due to spills and overfills do not occur.

(2)-(3)

(No change.)

(4)

When USTs [ underground storage tanks ] are equipped with ball float valves in the vent openings (or with other similar flow restrictors) for the purposes of compliance with the overfill prevention equipment requirements of subsection (b)(2)(C) of this section, and when regulated substances are transferred into such tanks under pressure (other than routine gravity unloading from normal transport vehicles), the following requirements shall be met during the time that regulated substances are being transferred into the tank.

(A)-(B)

(No change.)

(5)

The owners or operators shall assure that the installation and maintenance of all required spill and overfill prevention equipment, as well as the procedures used for the transfers of regulated substances to or from an UST [ underground storage tank ] system, are in accordance with codes or standards of practice developed by a nationally recognized association or independent testing laboratory as specified in §334.42(d) of this title (relating to General Standards) .

(6)-(7)

(No change.)

(b)

Spill and overfill prevention equipment. Except as provided in paragraph (4) of this subsection, all UST [ underground storage tank ] systems shall be equipped with spill and overfill prevention equipment which shall be designed, installed, and maintained in a manner that will prevent any spilling or overfilling of regulated substances resulting from transfers to such systems, as provided in this subsection.

(1)-(3)

(No change.)

(4)

Exceptions.

(A)

UST systems are not required to be equipped with the spill and overfill prevention equipment prescribed in this subsection if one or more of the following conditions are applicable to such system:

(i)

the transfers of regulated substances into the UST [ underground storage tank ] system do not exceed 25 gallons per occurrence;

(ii)

the UST [ underground storage tank ] system is equipped with alternative equipment which has been reviewed and determined by the agency [ executive director ] to prevent spills and overfills of regulated substances in a manner that is no less protective of human health and the environment than the equipment prescribed in this subsection, pursuant to procedures for variances found in §334.43 of this title (relating to Variances and Alternative Procedures); or

(iii)

the installation of the spill and overfill prevention equipment prescribed in this subchapter has been reviewed and determined by the agency [ executive director ] to be impracticable [ or unreasonable ] due to the type, design, or use of the UST [ underground storage tank ] system, pursuant to procedures for variances found in §334.43 of this title [ (relating to Variances and Alternative Procedures) ].

(B)

(No change.)

(c)

(No change.)

§334.52.Underground Storage Tank System Repairs and Relining.

(a)

General requirements.

(1)

Owners and operators shall ensure that any repair or relining of an underground storage tank (UST) system will prevent releases due to structural failure or corrosion for the remaining operational life of the system.

(2)-(3)

(No change.)

(4)

After completion of any repairs or relining of an UST [ underground storage tank ] system, the owner or operator shall obtain detailed written records of the repairs or relining from the person who performed the work.

(5)-(6)

(No change.)

(7)

The performance of any repairs or relining of an existing UST [ underground storage tank ] shall not relieve the owner or operator from timely compliance with the technical standards for such tanks, as required in §334.47 of this title (relating to Technical Standards for Existing UST Systems).

(b)

Tank repairs and relining.

(1)-(4)

(No change.)

(5)

Prior to placing the tank back into operation, any repaired or relined tank shall be either:

(A)

(No change.)

(B)

internally inspected and assessed in accordance with the requirements in §334.47(b)(1)(A)(iv) of this title [ (relating to Technical Standards for Existing UST Systems) ]; or

(C)

tested or assessed by any other method that has been reviewed and determined by the agency [ executive director ] to be no less protective of human health and safety and the environment than the standards described in subparagraphs (A) and (B) of this paragraph, in accordance with the procedures in §334.43 of this title (relating to Variances and Alternative Procedures).

(6)

(No change.)

(c)

Piping repairs and maintenance.

(1)

(No change.)

(2)

The installation or reinstallation of previously used piping, valves, or fittings in any UST [ underground storage tank ] system is specifically prohibited, regardless of the source or previous use of such previously used components.

(3)

Prior to placing the piping system back into operation, any repaired piping system shall be tested by means of a piping tightness test meeting the requirements of §334.50(b)(2)(A)(ii)(I) of this title [ (relating to Release Detection) ].

(4)

If a repaired metal piping system has not already been equipped with an acceptable cathodic protection system, then the following minimum requirements shall be met prior to placing the piping system back in operation.

(A)

(No change.)

(B)

The repaired piping sections and fittings shall be retrofitted with a field-installed cathodic protection system. Such cathodic protection system shall be designed by a qualified corrosion specialist and shall be operated and maintained in accordance with the applicable cathodic protection requirements in §334.49(c) of this title [ (relating to Corrosion Protection) ]. The remaining portion of the piping system shall be brought into compliance with the minimum upgrading requirements for existing UST systems in accordance with the procedures and schedules in §334.47 of this title [ (relating to Technical Standards for Existing UST Systems) ].

(d)

Records for repairs and relining.

(1)

(No change.)

(2)

Owners and operators shall maintain records adequate to demonstrate compliance with the applicable repairs and relining requirements in this section, and in accordance with the following minimum requirements.

(A)

General information related to the repairs or relining shall be maintained for the remaining operational life of the UST system, including:

(i)-(ii)

(No change.)

(iii)

copies of all related construction notification, registration, and certification documents filed with the agency [ commission ].

(B)-(C)

(No change.)

§334.54.Temporary Removal from Service.

(a)

Applicability. An underground storage tank (UST) [ A UST ] system shall be considered to be temporarily out of service, regardless of whether or not regulated substances remain in the UST system, when the following conditions apply.

(1)-(3)

(No change.)

(b)

All UST systems. [ Beginning no later than the date on which any UST system has been out of service for a continuous period of three months, ] Regardless [ regardless ] of whether or not regulated substances remain in the UST system, the owner or operator shall assure that the UST system is maintained in compliance with the following requirements for the balance of time that the UST system remains temporarily out of service.

(1)

(No change.)

(2)

All other piping, pumps, manways, tank access points (e.g., fill risers, automatic tank gauging risers, Stage I vapor recovery risers) and ancillary equipment shall be capped, plugged, locked, and/or otherwise secured to prevent access, tampering, or vandalism by unauthorized persons.

(c)

Protected and monitored systems. Any UST system may remain out of service indefinitely so long as the following requirements are met during the period that the UST system remains temporarily out of service.

(1)

(No change.)

(2)

Unless the UST system has been emptied of all regulated substances (as described under subsection (d) [ (e) ] of this section) at the time it is temporarily removed from service, the UST system shall be monitored for releases in accordance with the applicable requirements of §334.50 of this title (relating to Release Detection).

(3)

Returning UST system to service. [ The UST system shall be operated and maintained in accordance with the requirements of subsection (b) of this section. ]

(A)

When a protected and empty UST system that has been temporarily out of service for longer than six months is placed back into service, the owner or operator shall ensure the integrity of the system by the performance of tank tightness and piping tightness tests that meet the requirements of §334.50(d)(1)(A), and as applicable, (b)(2)(A)(ii)(I), or (B)(i)(I), of this title, prior to bringing the system back into operation; and

(B)

When either a protected and monitored or a protected and empty UST system is placed back into service, the owner or operator shall also ensure that the UST system either is in compliance or is brought into compliance with all applicable release detection, and spill and overfill prevention requirements of §334.50 of this title and §334.51 of this title (relating to Spill and Overfill Prevention and Control).

[(d)

Unprotected and unmonitored systems.]

[(1)

Time limitation. If due to the phase-in of upgrades and improvements as allowed under §334.47 of this title (relating to Technical Standards for Existing UST Systems), any existing UST system is not yet adequately protected from corrosion (as provided under subsection (c)(1) of this section) and any existing nonempty UST system is not yet adequately monitored for releases (as provided under subsection (c)(2) of this section), such UST systems cannot remain out of service indefinitely and must meet the following requirements.]

[(A)

The UST system shall be operated and maintained in accordance with the provisions of subsection (b) of this section during the time the system is temporarily out of service, which shall not exceed 12 months.]

[(B)

Beginning no later than the date on which the UST system has been out of service for a continuous period of 10 months, regardless of whether or not regulated substances remain in the system, the owner or operator shall initiate appropriate activities or procedures to assure that no later than the date on which the system has been out of service for a continuous period of 12 months, the UST system is either:]

[(i)

permanently removed from service (by disposal in place or removal from the ground), in accordance with the applicable provisions of §334.55 of this title (relating to Permanent Removal from Service);]

[(ii)

brought back into service in conformance with the requirements in paragraph (3) of this subsection; or]

[(iii)

appropriately upgraded such that the UST system is adequately protected from corrosion and adequately monitored for releases of regulated substances in a manner that will allow the system to remain temporarily out of service under the provisions of subsection (c) of this section.]

[(2)

Extension of time. For UST systems which are temporarily out of service, and for which the owner or operator determines that conformance with the schedule under paragraph (1)(B) of this subsection would be impractical or unreasonable, the owner or operator must secure prior approval from the executive director for an extension of time subject to the following conditions.]

[(A)

Any request for extension of time shall be in conformance with §334.43 of this title (relating to Variances and Alternative Procedures).]

[(B)

Any request for extension of time shall be accompanied by written documentation adequate to justify the requested extension and the results of a site assessment conducted in accordance with of §334.55(e) of this title (relating to Permanent Removal from Service).]

[(3)

Returning UST system to service. When an unprotected and unmonitored UST system that has been temporarily out of service for longer than six months is placed back into service, the owner or operator shall:]

[(A)

ensure the integrity of the system by the performance of a tank tightness test and piping tightness test that meet the requirements of §334.50(d)(1)(A) and §334.50(b)(2)(A)(ii)(I), respectively, of this title (relating to Release Detection) prior to bringing the system back into operation; and]

[(B)

ensure that the UST system is brought into compliance with all applicable corrosion protection, release detection, and spill and overfill prevention requirements of §334.49 of this title (relating to Corrosion Protection), and §334.50 of this title (relating to Release Detection), and §334.51 of this title (relating to Spill and Overfill Prevention and Control) in accordance with the applicable schedules in §334.44 of this title (relating to Implementation Schedules).]

(d)

[ (e) ] Empty system. For the purposes of this section only, and specifically for the purpose of exempting certain UST systems (when temporarily out of service) from the release detection requirements of this chapter, an UST [ underground storage tank ] system shall be considered empty when the following provisions have been met:

(1)-(3)

(No change.)

(e)

[ (f) ] Other requirements.

(1)

Releases. If a release of a regulated substance is suspected or confirmed, the owner or operator of an UST [ underground storage tank ] system which is temporarily out of service shall comply with all release reporting, investigation, and corrective action requirements in Subchapter D of this chapter (relating to Release Reporting and Corrective Action).

(2)

Registration. At the time an UST [ underground storage tank ] system is temporarily taken out of service and at the time an [ a ] UST system is brought back into service, the owner shall comply with the applicable tank registration requirements in §334.7 of this title (related to Registration for Underground Storage Tanks (USTs) and UST Systems ).

(3)

Fees. An UST [ underground storage tank ] which is temporarily out of service in accordance with this section shall remain subject to the agency's [ commission's ] UST [ underground storage tank ] fees in Subchapter B of this chapter (relating to Underground Storage Tank Fees).

(4)

Recordkeeping for temporary removal from service.

(A)

Owners and operators shall maintain records adequate to demonstrate compliance with the requirements in this section, in accordance with §334.10(b) of this title (relating to Reporting and Recordkeeping).

(B)

At a minimum, the following records shall be maintained for at least five years after the UST system is temporarily removed from service:

(i)

date that the UST system was temporarily removed from service;

(ii)

name, address, and telephone number of the person who prepared the UST system for the period of non-use;

(iii)

documentation of the procedures used to prepare and empty the UST system;

(iv)

copies of all documentation relative to any requests and approvals of extensions of time;

(v)

name, address, and telephone number of the person who conducted the tank and piping tightness tests, prior to returning the UST system to service;

(vi)

results of any tank and piping tightness tests; and

(vii)

date that the UST system was returned to service.

§334.55.Permanent Removal from Service.

(a)

General provisions.

(1)

Any owner or operator who intends to permanently remove an underground storage tank (UST) from service (by either removing the tank from the ground, abandoning the tank in-place, or conducting a permanent change-in-service) shall provide prior notice of this activity to the agency [ executive director ] in accordance with §334.6 of this title (relating to Construction Notification for Underground Storage Tanks (USTs) and UST Systems ).

(2)

The procedures used in permanently removing the UST [ underground storage tank ] from service shall conform with accepted industry practices, and shall be in accordance with a code or standard of practice developed by a nationally recognized association or independent testing laboratory.

(3)

(No change.)

(4)

All USTs [ underground storage tanks ] that are intended for permanent removal from service shall be emptied of all regulated substances and accumulated sludges or residues, and shall be purged of all residual vapors in accordance with accepted industry procedures commonly employed for the stored regulated substance.

(5)

The handling, transportation, and disposal of any regulated substances removed from an UST [ underground storage tank ] system, and any contaminated soils, backfill material, groundwater, wash water, or other similar materials removed from the system or facility, shall be conducted in a safe and environmentally sound manner, and shall be in accordance with all applicable federal, state, and local regulations in effect for the type, volume, contaminant concentration, and classification of the removed material.

(6)

As part of the required procedure for the permanent removal of any UST [ underground storage tank ] system from service, the owner or operator shall determine whether or not any prior release of a stored regulated substance has occurred from the system.

(A)

This determination shall be performed subsequent to the submittal of notification to the agency [ executive director ] as prescribed in §334.6 of this title (relating to Construction Notification for Underground Storage Tanks (USTs) and UST Systems ), but prior to completion of the permanent removal from service.

(B)

This determination shall be made by visual inspection of the area in and immediately surrounding the excavation zone for any above-ground releases and for any exposed below-ground releases, and by using one or both of the following methods or procedures:

(i)

the continual operation (through the time that the stored regulated substances are removed from the UST system) of one or more of the external release monitoring and detection methods operated [ operating ] in accordance with §334.50(d)(5)- 10) [ (9) ] of this title (relating to Release Detection); or

(ii)

the performance of a comprehensive site assessment in accordance with the requirements of subsection (e) of this section.

(C)

Any methods or procedures used to make this determination shall be capable of detecting any prior release of stored regulated substances from any portion of the UST [ underground storage tank ] system.

(D)

Upon completion of this determination, the owner or operator shall:

(i)

report any confirmed or suspected releases to the agency [ executive director ] and comply with all applicable release investigation and corrective action requirements, as prescribed in Subchapter D of this chapter (relating to Release Reporting and Corrective Action);

(ii)

prepare or assemble the detailed written records of this determination, which shall include the methods, procedures, results, and names, addresses, and telephone numbers of the persons involved in conducting such determination. Such records shall be maintained in accordance with the applicable provisions in subsection (f) of this section, and a copy of such records shall be filed with the agency [ commission ] in conjunction with the applicable tank registration requirements of §334.7 of this title (relating to Registration for Underground Storage Tanks (USTs) and UST Systems ).

(7)

For an UST [ underground storage tank ] to be considered permanently out of service, the owner or operator shall either remove the tank from the ground in accordance with subsection (b) of this section, abandon in-place and fill the tank with an acceptable solid inert material in accordance with subsection (c) of this section, or conduct a permanent change-in-service in accordance with subsection (d) of this section. Unused tanks (i.e., tanks at facilities which are closed or out of business) shall be considered temporarily out of service, and shall be subject to the provisions of §334.54 of this title (relating to Temporary Removal from Service), unless they have been permanently removed from service in accordance with this section.

(8)

The requirements in this section are applicable to all UST [ underground storage tanks ] which are permanently removed from service on or after the effective date of this subchapter.

(9)

For an UST [ underground storage tank ] permanently removed from service prior to the effective date of this subchapter, where the methods previously used for the release determination or the removal from service are unknown or are determined to have been inadequate, the agency [ executive director ] may require the owner or operator to conduct any or all of the following additional activities as appropriate:

(A)-(B)

(No change.)

(C)

release reporting, investigation, and corrective action if a release of a regulated substance has occurred, in accordance with Subchapter D of this chapter [ (relating to Release Reporting and Corrective Action) ]; and/or

(D)

(No change.)

(b)

Removal from the ground. In addition to the requirements of subsection (a) of this section, the following requirements shall be applicable for the removal of USTs [ underground storage tanks ] from the ground.

(1)

(No change.)

(2)

When an owner or operator can demonstrate good cause for removal of a tank from the ground prior to emptying, cleaning, or purging the vapors, the owner or operator shall obtain approval from the manager of the appropriate district office (or the manager's designated representative) prior to proceeding with the removal. In this situation, the tank removal shall be accomplished only under the direct supervision of agency [ commission ] personnel and/or local fire officials, and all conditions and requirements imposed by such supervisory officials shall be strictly followed.

(3)

(No change.)

(4)

Storage of removed tanks.

(A)-(E)

(No change.)

(F)

Regardless of where the tank is stored, not later than ten [ 10 ] days after the tank has been removed from the ground, any residual liquids or vapors shall be permanently removed to render the tank nonignitable and nonexplosive.

(5)

Transportation and disposal of removed tanks.

(A)

The methods and procedures used for the handling, transporting, and disposing of any removed USTs [ underground storage tanks ] (and parts of such tanks) shall be protective of human health and safety and the environment, and shall be in accordance with all applicable federal, state, and local regulations.

(B)-(D)

(No change.)

(6)

(No change.)

(c)

Abandonment in-place. An UST [ underground storage tank ] may be permanently removed from service by abandonment in-place in lieu of actual removal from the ground. In addition to the requirements of subsection (a) of this section, the following requirements shall be applicable to the abandonment in-place of USTs [ underground storage tanks ].

(1)

When the UST [ underground storage tank ] owner is not the owner of the site or facility where such tank is located, the tank owner is prohibited from abandoning such tank in-place unless the following conditions are met.

(A)-(B)

(No change.)

(2)

Any tank that is abandoned in-place shall be filled with a solid inert material as prescribed in this paragraph.

(A)

Only solid inert materials which are free of any harmful contaminants or pollutants shall be used to fill the tank. Acceptable materials include sand, fine gravel, sand and gravel mixtures, and cement/concrete-based slurries. Other materials such as native soils, drilling muds, and commercially marketed fill materials shall not be used for filling the tank unless the material and filling procedures have been reviewed and approved by the agency [ executive director ] in accordance with §334.43 of this title (relating to Variances and Alternative Procedures).

(B)-(C)

(No change.)

(3)

The tank owner shall develop and maintain a permanent record of the name and address of the tank owner (and site or facility owner, if different), the abandoned tank location, the date of abandonment, the substance previously stored, the method of conditioning the tank for abandonment, release assessment results, the names, addresses, and telephone numbers of the persons conducting the activities, and information regarding the extent of any confirmed releases and any resulting remediation activities.

(A)-(B)

(No change.)

(C)

Prior to the sale or conveyance of the facility where an abandoned UST [ underground storage tank ] is located, the facility owner shall provide written documentation of the tank abandonment information to the succeeding property owner.

(d)

Change-in-service. In addition to the requirements of subsection (a) of this section, the following requirements shall be applicable for any change-in-service where an [ a ] UST system storing regulated substances is converted to a system storing materials other than regulated substances.

(1)

Prior to refilling with materials other than regulated substances, the UST [ underground storage tank ] shall be properly emptied, cleaned, and purged of vapors in accordance with a code or standard of practice developed by a nationally recognized association or independent testing laboratory for the stored regulated substance. The procedures for emptying, cleaning, and purging the UST [ underground storage tank ] shall be designed to remove as much as possible of the previously stored regulated substances, including all liquids, vapors, sludges, and residues, in a manner that is protective of human health and safety or the environment.

(2)

A change-in-service where an UST [ underground storage tank ] storing regulated substances is to be converted for the storage of either drinking water or food products intended for human consumption is specifically prohibited.

(3)

(No change.)

(4)

The owner shall develop and maintain a permanent record of the location of the UST [ underground storage tank ], the date of the change-in-service, the regulated substance previously stored, the method of conditioning the tank for the change-in-service, the names, addresses, and telephone numbers of the persons conducting the activities, and any information regarding any known releases of regulated substances from such tank. If the facility owner is not the same person as the UST owner, the UST owner shall provide a copy of such information to the facility owner within 30 days after the date of the change-in-service.

(5)

For the purposes of this section, an UST [ underground storage tank ] which has been converted to the storage of materials other than regulated substances (i.e., water) shall be subject to the procedures for temporary removal from service in §334.54 of this title (relating to Temporary Removal from Service), except when the stored materials are utilized on a regular basis for beneficial purposes.

(e)

Site assessment.

(1)

A [ comprehensive ] site assessment meeting the requirements of this subsection shall be performed by the owner or operator of an [ a ] UST system in the following situations to determine whether or not a release has occurred:

(A)

when the site assessment is selected as the method to achieve compliance with the release determination requirements of subsection (a)(6) of this section for an UST [ underground storage tank ] which is permanently removed from service on or after the effective date of this subchapter;

[(B)

when an owner or operator requests an extension of time to allow an underground storage tank system to remain temporarily out of service beyond the prescribed time limits, as provided in §334.54(d)(2)(B) of this title (relating to Temporary Removal from Service);]

(B)

[ (C) ] when the agency [ executive director ] determines that a [ comprehensive ] site assessment is necessary at a site or facility where an UST [ underground storage tank ] was permanently removed from service prior to the effective date of this subchapter, and where the site assessment or release determination at the time of removal from service was determined to be either nonexistent or inadequate; or

(C)

[ (D) ] when the agency [ executive director or the commission ] determines that a [ comprehensive ] site assessment is necessary at any site or facility where a release or suspected release may pose a current or potential threat to human health or safety or the environment.

(2)

The site assessment shall be conducted by qualified personnel possessing the appropriate skills, experience, and competence to perform the assessment in accordance with recognized industry practices and the provisions of this section and shall be supervised by a person who is currently licensed by the Texas Natural Resource Conservation Commission (TNRCC) as an UST installer or on- site supervisor or currently registered with the TNRCC as a corrective action project manager .

(3)

(No change.)

(4)

The owner or operator shall assure that in selecting the sampling or measurement methods, the sample types, and the sampling or measurement locations, the persons conducting the assessment shall take into consideration the following factors to ensure that the presence of any released regulated substances is detected and quantified:

(A)

the specific method of removing the UST [ underground storage tank ] system from service;

(B)-(E)

(No change.)

(5)

One or more of the following methods may be used for conducting the site assessment and release determination required under this section, provided that such methods are in compliance with the performance standards in paragraphs (2)-(4) of this subsection:

(A)-(B)

(No change.)

(C)

any other site assessment or release determination method or procedure which has been reviewed and determined by the agency [ executive director ] to detect prior releases of the stored regulated substance(s) in a manner that is no less protective of human health and the environment than the methods described in subparagraphs (A) and (B) of this paragraph, as provided under §334.43 of this title [ (relating to Variances and Alternative Procedures) ].

(D)

The owner or operator must report any suspected or confirmed releases indicated by the site assessment to the agency and comply with all applicable release investigation and corrective action requirements, as prescribed in Subchapter D of this chapter.

(f)

Records for permanent removal from service.

(1)

(No change.)

(2)

At a minimum, the following records shall be maintained for as long as any UST [ underground storage tank ] remains in service at the facility, or for five years after the UST system is permanently removed from service, whichever is longer:

(A)-(B)

(No change.)

(C)

records related to the abandonment in-place of an [ a ] UST system (as applicable), in accordance with the requirements in subsection (c)(4) of this section; and

(D)

records related to the change-in-service of an [ a ] UST system (as applicable), in accordance with the requirement in subsection (d)(4) of this section.

§334.56.Change to Exempt or Excluded Status.

(a)

Any owner or operator who intends to change the status of an underground storage tank (UST) system from regulated to exempt or excluded status must determine whether the tank(s) size (if applicable) and the current and anticipated use of the UST system will allow reclassification to either exempt status as specified in §334.3 of this chapter (relating to Exemptions for Underground Storage Tanks (USTs) and UST Systems), or to excluded status as specified in §334.4 of this title (relating to Exclusions for Underground Storage Tanks (USTs) and UST Systems).

(b)

As part of the required procedure for the change in status of any UST system from regulated to exempt or excluded status, the owner or operator shall determine whether or not any prior release of a stored regulated substance has occurred from the system.

(1)

This determination shall be made by visual inspection of the area in and immediately surrounding the excavation zone for any above-ground releases and for any exposed below-ground releases, and by using one or both of the following methods or procedures:

(A)

the continual operation (through the time that the stored regulated substances are removed from the UST system) of one or more of the external release monitoring and detection methods operated in accordance with §334.50(d)(5)-(10) of this title (relating to Release Detection); or

(B)

the performance of a comprehensive site assessment in accordance with the requirements of subsection (c) of this section.

(2)

Any methods or procedures used to make this determination shall be capable of detecting any prior release of stored regulated substances from any portion of the UST system.

(A)

Upon completion of this determination, the owner or operator shall:

(i)

report any confirmed or suspected releases to the agency and comply with all applicable release investigation and corrective action requirements, as prescribed in Subchapter D of this chapter (relating to Release Reporting and Corrective Action);

(ii)

prepare or assemble the detailed written records of this determination, which shall include the methods, procedures, results, names, addresses, and telephone numbers of the persons involved in conducting this determination. These records shall be maintained in accordance with the applicable provisions in subsection (d) of this section, and a copy of these records shall be filed with the agency in conjunction with the applicable tank registration requirements of §334.7 of this title (relating to Registration for Underground Storage Tanks (USTs) and UST Systems).

(c)

Site assessment.

(1)

A comprehensive site assessment meeting the requirements of this subsection shall be performed by the owner or operator of an UST system in the following situations to determine whether or not a release has occurred:

(A)

when the site assessment is selected as the method to achieve compliance with the release determination requirements of subsection (b) of this section for an UST which is changed from regulated to exempt or excluded status on or after the effective date of this subchapter;

(B)

when the agency determines that a comprehensive site assessment is necessary at any site or facility where a release or suspected release may pose a current or potential threat to human health or safety or the environment.

(2)

The site assessment shall be conducted by qualified personnel possessing the appropriate skills, experience, and competence to perform the assessment in accordance with recognized industry practices and the provisions of this section and shall be supervised by a person who is currently licensed by the Texas Natural Resource Conservation Commission (TNRCC) as an UST installer or on- site supervisor or currently registered with the TNRCC as a corrective action project manager.

(3)

Any procedures used for the site assessment must be capable of measuring for the presence of a release from any part of the UST system and, at a minimum, must include measurements for releases at locations where contamination is most likely to be present at the site.

(4)

The owner or operator shall assure that in selecting the sampling or measurement methods, the sample types, and the sampling or measurement locations, the persons conducting the assessment shall take into consideration the following factors to ensure that the presence of any released regulated substances is detected and quantified:

(A)

the nature and composition of the stored regulated substance;

(B)

the type and characteristics of the backfill material and surrounding soils;

(C)

the presence of groundwater, and its depth with relation to the UST system and the surface of the ground; and

(D)

any other factors that may affect the reliability or effectiveness of the site assessment procedures or techniques.

(5)

One or more of the following methods may be used for conducting the site assessment and release determination required under this section, provided that such methods are in compliance with the performance standards in paragraphs (2)-(4) of this subsection:

(A)

collection and analysis of soil samples secured from unsaturated sections of the UST system excavation zone and surrounding soils, where such samples shall be analyzed for major constituents and/or indicator parameters of the stored regulated substance(s);

(B)

collection and analysis of groundwater samples secured from the UST system excavation zone and surrounding area, where such samples shall be analyzed for all major constituents or indicator parameters of the stored regulated substance(s); and/or

(C)

any other site assessment or release determination method or procedure which has been reviewed and determined by the agency to detect prior releases of the stored regulated substance(s) in a manner that is no less protective of human health and the environment than the methods described in subparagraphs (A) and (B) of this paragraph, as provided under §334.43 of this title (relating to Variances and Alternative Procedures).

(D)

The owner or operator must report any suspected or confirmed releases indicated by the site assessment to the agency and comply with all applicable release investigation and corrective action requirements, as prescribed in Subchapter D of this chapter.

(d)

Records for change to exempt or excluded status.

(1)

Owners and operators shall maintain records adequate to demonstrate compliance with the requirements of this section, in accordance with §334.10(b) of this title (relating to Reporting and Recordkeeping).

(2)

At minimum, records of the release determination or site assessment, in accordance with the requirements in subsection (b)(2)(A)(ii) of this section shall be maintained for as long as any UST remains in service at the facility, or for five years after the UST system is changed from regulated to exempt or excluded status, whichever is longer.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on May 19, 2000.

TRD-200003488

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: August 1, 2000

For further information, please call: (512) 239-4712


Subchapter D. RELEASE REPORTING AND CORRECTIVE ACTION

30 TAC §§334.71 - 334.85

STATUTORY AUTHORITY

The amended sections are proposed under Texas Water Code, (TWC) §5.103, which provides the commission authority to adopt any rules necessary to carry out its powers and duties under this code and other laws of this state and to adopt rules repealing any statement of general applicability that interprets law or policy; §5.105, which authorizes the commission to establish and approve all general policy of the commission by rule; and §26.011, which requires the commission to control the quality of water by rule. The amended sections are also proposed under TWC, §26.345, which provides the commission authority to develop a regulatory program and to adopt rules regarding underground storage tanks (USTs), and §26.351, which provides the commission authority to adopt rules establishing the requirements for taking corrective action in response to a release from an UST or aboveground storage tank.

The proposed sections implement TWC, Chapter 26, Subchapter I, Underground Storage Tanks.

§334.71.Applicability.

For releases discovered and reported to the executive director on or before August 31, 2003, the provisions of this subchapter are applicable to owners and operators of all underground storage tanks (USTs) and all petroleum product aboveground storage tanks (ASTs) unless otherwise specified in Subchapters A or F of this chapter (relating to General Provisions and Aboveground Storage Tanks, respectively). For releases reported to the executive director on or after September 1, 2003, the provisions of this subchapter are applicable to owners and operators of all USTs [ underground storage tanks ] and all petroleum product ASTs [ aboveground storage tanks ], except that Chapter 350 of this title (relating to Texas Risk Reduction Program) shall be used in lieu of §§334.78-334.81 of this title (relating to Site Assessment, Removal of Non-Aqueous Phase Liquids [ Free Product Removal ], Investigation for Soil and Groundwater Cleanup, and Corrective Action Plans, respectively).

§334.72.Reporting of Suspected Releases.

Owners and operators of aboveground storage tank (AST) and underground storage tank (UST) systems must report to the (Austin central office or the appropriate regional [ district ] office ) [ or the Austin central office ] the agency [ commission ] within 24 hours, and follow the procedures in §334.74 of this title (relating to Release Investigation and Confirmation Steps) for any of the following conditions : [ . ]

(1)

The discovery by owners and operators, or written notification by others to the owner or operator, of released regulated substances at the AST or UST site or in the surrounding area (such as the presence of non-aqueous phase liquids (NAPL) [ free product ] or vapors in soils, basements, sewer and utility lines, and nearby surface water) ; [ . ]

(2)

Unusual operating conditions observed by owners or [ and ] operators (such as the erratic behavior of product dispensing equipment, the sudden loss of product from the AST or UST [ underground storage tank ] system, or an unexplained presence of water in the tank), unless the system equipment is found to be defective but not leaking ; [ . ]

(3)

Monitoring results from a release detection method required under §334.50 of this title (relating to Release Detection) or other method that indicates a release may have occurred unless:

(A)

the monitoring device is found to be defective and is immediately repaired, recalibrated, or replaced, or the monitoring procedure is found to be ineffective, and is modified, and additional monitoring does not confirm the initial result; or

(B)

in the case of inventory control, a second month of data does not confirm the initial result ; or [ . ]

(4)

For UST systems which are required to be of double-wall construction or secondarily contained and for UST systems in which interstitial monitoring is being employed for compliance with the requirements of §334.50 of this title [ (relating to Release Detection) ], whenever monitoring or observation indicates a breach in either the primary wall or secondary barrier (whether or not a release of regulated substance into the environment has occurred), unless the primary or secondary barrier is determined to be intact, and the monitoring equipment is found to be defective, and is immediately repaired, recalibrated, or replaced, and additional monitoring does not confirm the initial result.

§334.73.Investigation Due to Off-Site Impacts.

When required by the agency [ executive director ], owners and operators of aboveground storage tank (AST) or underground storage tank (UST) [ UST ] systems must follow the procedures in §334.74 of this title (relating to Release Investigation and Confirmation Steps) to determine if the AST or UST system is the source of off-site impacts. These impacts include the discovery of regulated substances (such as the presence of Non-Aqueous Phase Liquids (NAPLs) [ free product ] or vapors in soils, basements, sewer and utility lines, and nearby surface and drinking waters) that have been observed by agency staff [ the commission ] or brought to the agency's [ its ] attention by another party.

§334.74.Release Investigation and Confirmation Steps.

Unless corrective action is initiated in accordance with §§334.76-334.81 of this title (relating to Initial Response to Releases; Initial Abatement Measures and Site Check; Site Assessment [ Initial Site Characterization ]; Removal of Non-Aqueous Phase Liquids [ Free Product Removal ]; Investigation for Soil and Groundwater Cleanup; and Corrective Action Plan), owners or [ and ] operators must immediately investigate and confirm all suspected releases of regulated substances requiring reporting under §334.72 of this title (relating to Reporting of Suspected Releases) within 30 days, using either the following steps or another procedure and schedule approved or required by the agency [ executive director ].

(1)

System test. Owners or operators must conduct tests (according to the requirements for tightness testing in §334.50 of this title (relating to Release Detection)) that determine whether a leak exists in that portion of the tank that routinely contains product, or the attached delivery piping, or both.

(A)

Owners and operators must repair, or replace[ , or upgrade ] the aboveground storage tank (AST) or underground storage tank (UST) [ UST ] system, and begin corrective action in accordance with §§334.76-334.81 of this title [ (relating to Initial Response to Releases; Initial Abatement Measures and Site Check; Initial Site Characterization; Free Product Removal; Investigation for Soil and Groundwater Cleanup; and Corrective Action Plan) ] if the test results for the system, tank, or delivery piping indicate that a leak exists.

(B)-(C)

(No change.)

(2)

Site check. Owners and operators must measure for the presence of a release where contamination is most likely to be present at the AST or UST site. In selecting sample types, sample locations, and measurement methods, owners and operators must consider the nature of the stored substance, the type of initial alarm or cause for suspicion, the type of backfill, the depth to [ of ] groundwater, and other factors appropriate for identifying the presence and source of the release.

(A)

If the test results from an excavated area [ for the excavation zone ], or other area(s) of the AST or the UST site indicate that a release has occurred, owners and operators must begin corrective action in accordance with §§334.76-334.81 of this title [ (relating to Initial Response to Releases; Initial Abatement Measures and Site Check; Initial Site Characterization; Free Product Removal; Investigation for Soil and Groundwater Cleanup; and Corrective Action Plan) ];

(B)

If the test results from an excavated area [ for the excavation zone ] , or other area(s) of the AST or [ the ] UST site do not indicate that a release has occurred, further investigation is not required.

(3)

In the event there is no evidence of a release after performing the tests required in paragraphs (1) and (2) of this section, the owner or operator must file a report which contains a detailed description of the investigative procedures followed in addressing the requirements of this section and which includes the results of all tests or monitoring performed. This report must be filed with the agency [ executive director ] not later than 45 days after the first observation of the suspected release or another schedule approved or required by the agency [ executive director ]. The owner or operator shall include with this report a statement which has been signed by the owner or operator certifying that the requirements of this section have been met.

§334.75.Reporting and Cleanup of Surface Spills and Overfills.

(a)

Owners and operators of aboveground storage tanks (AST) and underground storage tank (UST) [ UST ] systems must contain and immediately clean up a spill or overfill, report the spill or overfill to the agency [ commission ] within 24 hours, and begin corrective action in accordance with §§334.76-334.81 of this title (relating to Initial Response to Releases; Initial Abatement Measures and Site Check; Site Assessment [ Initial Site Characterization ]; Removal of Non-Aqueous Phase Liquids [ Free Product Removal ]; Investigation for Soil and Groundwater Cleanup; and Corrective Action Plan) in the following cases:

(1)

any spill or overfill of petroleum substance from an UST or any spill or overfill of petroleum product from an AST that results in a release to the environment that exceeds 25 gallons, or that causes a sheen on nearby surface water; and

(2)

any spill or overfill of a hazardous substance that results in a release from an UST to the environment that equals or exceeds its reportable quantity under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) (40 Code of Federal Regulations (CFR) Part 302).

(b)

Owners and operators [ of UST systems ] must contain and immediately clean up a spill or overfill of any petroleum substance from an UST or any petroleum product from an AST that is less than 25 gallons . [ , and ] Owners or operators of USTs must contain and immediately clean up a spill or overfill of a hazardous substance that is less than the reportable quantity under CERCLA (40 CFR Part 302). If cleanup cannot be accomplished within 24 hours, owners and operators must immediately notify the agency [ executive director ].

§334.76.Initial Response to Releases.

Upon confirmation of a release in accordance with §334.74 of this title (relating to Release Investigation and Confirmation Steps) or after a release from the aboveground storage tank (AST) or underground storage tank (UST) [ UST ] system is identified in any other manner, owners and operators must perform the following initial response actions within 24 hours of a release:

(1)

report the release to the agency [ executive director ] (e.g., by completed telephone call, facsimile transmission, or electronic mail);

(2)

take immediate action to prevent any further release of the regulated substance into the environment, including shutting down the leaking AST or UST system as determined necessary; and

(3)

(No change.)

§334.77.Initial Abatement Measures and Site Check.

(a)

Unless directed to do otherwise by the agency [ executive director ], owners and operators must perform the following abatement measures:

(1)

remove as much of the regulated substance from the aboveground storage tank (AST) or underground storage tank (UST) [ UST ] system as is necessary to prevent further release to the environment;

(2)

(No change.)

(3)

continue to monitor and mitigate any additional fire and safety hazards posed by vapors or free product that have migrated from the AST or UST excavation zone and entered into subsurface structures (such as sewers or basements);

(4)

(No change.)

(5)

measure for the presence of a release where contamination is most likely to be present at the AST or UST site, unless the presence and source of the release have been confirmed in accordance with the site check required by §334.74 of this title (relating to Release Investigation and Confirmation Steps) or the closure site assessment of §334.55(e) of this title (relating to Permanent Removal from Service). In selecting sample types, sample locations, and measurement methods, the owner and operator must consider the nature of the stored substance, the type of backfill, depth to groundwater, and other factors as appropriate for identifying the presence and source of the release; and

(6)

investigate to determine the possible presence of Non-Aqueous Phase Liquids (NAPLs) [ free product ] and begin NAPL [ free product ] removal as soon as practicable and in accordance with §334.79 of this title (relating to Removal of Non- Aqueous Phase Liquids [ Free Product Removal ]).

(b)

Within 20 days after release confirmation, owners and operators must submit a report to the agency [ executive director ] summarizing the initial abatement steps taken under subsection (a) of this section and any resulting information or data unless another reporting period is specified by the agency [ executive director ].

§334.78.Site Assessment.

(a)

Unless directed to do otherwise by the agency [ executive director ], owners and operators must assemble information about the site and the nature of the release, including information gained while confirming the release or completing the initial abatement measure in §334.75 and §334.76 of this title (relating to Reporting and Cleanup of Surface Spills and Overfills; and Initial Response to Releases). This information must include, but is not necessarily limited to the following:

(1)-(3)

(No change.)

(4)

results of the Non-Aqueous Phase Liquids (NAPLs) [ free product ] investigations required under §334.77 of this title [ (relating to Initial Abatement Measures and Site Check) ], to be used by owners and operators to determine whether free product must be recovered under §334.79 of this title (relating to Removal of Non-Aqueous Phase Liquids (NAPLs) [ Free Product Removal ]);

(5)

at a minimum, a determination of the degree and lateral and vertical extent of the on-site contaminated area (soil and groundwater) as required by the agency [ executive director ];

(6)

identification of all potential exposure pathways as required by the agency [ executive director ];

(7)-(8)

(No change.)

(9)

any other related information requested by the agency [ executive director ].

(b)

Site classification. Owners and operators must conduct site assessment actions to collect critical information in a manner approved by, or directed by, the agency [ executive director ] to determine the degree and nature of the release and identify potential receptors. Subsequently, the owner and operator of an aboveground storage tank (AST) or underground storage tank (UST) must establish the classification of the release(s) according to the classification system established by the agency [ executive director ]. The classification system shall be used to qualitatively assess the degree of threat the release poses to public health and safety, and the environment relative to all other leaking storage tank sites. The classification system will be utilized by the agency [ executive director ] as the primary method to coordinate leaking storage tanks sites.

(1)

Owners and operators shall utilize the site classification scheme established by the agency [ executive director ].

(2)

Classification will be based upon the results of completed assessment actions and the best professional judgment of the registered corrective action specialist and the agency [ executive director ].

(3)

(No change.)

(4)

The classification of any one site may be adjusted upward or downward by the agency [ executive director ] as further site information is obtained or as exposure conditions change.

(5)

Additional exposure scenarios may be added to the classification system by the agency [ executive director ] as situations are encountered that are not currently addressed in the system.

(6)

The agency [ executive director ] may direct corrective actions out-of-classification order as necessary to ensure efficient use of available agency [ commission ] resources, including staff, time, and the funds from the Petroleum Storage Tank Remediation Fund.

(c)

Within 45 days of release confirmation, owners and operators must submit the information collected in compliance with subsection (a) of this section to the agency [ executive director ] in a manner that demonstrates its applicability and technical adequacy, or in a format and according to the schedule required by the agency [ executive director ].

(d)

Any documents submitted as a site assessment which do not contain all of the information required by this section shall not be accepted by the executive director, may be returned by the agency [ executive director without prejudice ], and shall not qualify as a submitted site assessment for the purposes of this chapter. Return of such documents by the agency [ executive director without prejudice ] does not prevent the owner or operator from filing subsequent site assessment documentation.

Removal of Non-Aqueous Phase Liquids (NAPLs ) [ Free Product Removal].

At sites where investigations under §334.77 of this title (relating to Initial Abatement Measures and Site Check), or by other means, indicate the presence of Non-Aqueous Phase Liquids (NAPLs) [ free product ], owners and operators must remove NAPLs [ free product ] to the maximum extent practicable as determined by the agency [ executive director ] while continuing, as necessary, any actions required under §334.80 and §334.81 of this title (relating to Investigations for Soil and Groundwater Cleanup; and Corrective Action Plan). In meeting the requirements of this section, owners and operators must:

(1)

conduct NAPL [ free product ] removal in a manner that minimizes the spread of contamination into previously uncontaminated zones by using recovery and disposal techniques appropriate to the hydrogeologic conditions at the site, and that properly treats, discharges, or disposes of recovery by-products in compliance with applicable local, state, and federal regulations;

(2)

abate the migration of NAPLs [ use abatement of free product migration ] as a minimum objective for the design of the NAPL recovery system [ free product removal system ];

(3)

(No change.)

(4)

unless directed to do otherwise, prepare and submit to the agency [ executive director ], within 45 days after confirming a release, a product recovery [ free product removal ] report that provides at least the following information:

(A)

the name of the person(s) responsible for implementing the NAPL [ free product ] removal measures;

(B)

the estimated quantity, type, and thickness of NAPL [ free product ] observed or measured in wells, boreholes, and excavations;

(C)

detailed information pertaining to the type of NAPL [ free product ] recovery system used;

(D)-(F)

(No change.)

(G)

the disposition of the recovered NAPL [ free product ]; and

(H)

any other related information requested by the agency [ executive director ].

§334.80.Investigation for Soil and Groundwater Cleanup.

(a)

To [ In order to ] determine the full extent and location of soils contaminated by the release, the presence and concentrations of dissolved regulated substance contamination in the groundwater, and the risk associated with the release, owners and operators must conduct investigations of the release, the release site, and the surrounding area (including adjacent areas not under ownership by the owner or operator) as necessary to determine the extent of the release if any of the following conditions exist:

(1)

(No change.)

(2)

Non-Aqueous Phase Liquid [ free product ] is found to need recovery in compliance with §334.79 of this title (relating to Removal of Non-Aqueous Phase Liquids (NAPLs) [ Free Product Removal ]);

(3)

there is evidence that contaminated soils may be in contact with groundwater (e.g., as found during conduct of the initial response measures or investigations required under §§334.75-334.79 of this title (relating to Reporting and Cleanup of Surface Spills and Overfills; Initial Response to Releases; Initial Abatement Measures and Site Check; Site Assessment [ Initial Site Characterization ]; and Removal of Non-Aqueous Phase Liquids(NAPLs) [ Free Product Removal) ]); or

(4)

the agency [ executive director ] requests an investigation, based on the potential effects of contaminated soil or groundwater on nearby surface water or groundwater resources.

(b)

Owners and operators must submit the information collected under subsection (a) of this section as soon as practicable, or in accordance with a schedule established by the agency [ executive director ].

§334.81.Corrective Action Plan.

(a)

At any point after reviewing the information submitted in compliance with §§334.76- 334.78 of this title (relating to Initial Response to Releases; Initial Abatement Measures and Site Check; and Site Assessment [ Initial Site Characterization ]), the agency [ executive director ] may require owners or operators to submit additional information or to develop and submit a corrective action plan for responding to contaminated soils and groundwater. If a plan is required, owners and operators must submit the plan according to a schedule and format established by the agency [ executive director ]. Alternatively, owners and operators may, after fulfilling the requirements of §§334.76-334.78 of this title [ (relating to Initial Response to Releases; Initial Abatement Measures and Site Check; and Initial Site Characterization) ], choose to submit a corrective action plan for responding to contaminated soil and groundwater. In either case, owners and operators are responsible for submitting a plan that provides for adequate protection of human health, safety, and the environment as determined by the agency [ executive director ], and must modify their plan as necessary to meet this standard.

(b)

The agency [ executive director ] will approve the corrective action plan after ensuring that implementation of the plan will adequately protect human health, safety, and the environment as determined in §334.203 of this title (relating to Risk Based Criteria for Establishing Target Concentrations) [ using risk-based corrective action to establish target cleanup levels ] and to achieve case closure criteria. In making this determination, the agency [ executive director ] will consider the following factors as deemed appropriate:

(1)-(7)

(No change.)

(8)

operation, monitoring, and performance plan; and [ a remedial progress monitoring plan ];

[ (9)

an operation and maintenance plan; and ]

(9)

[ (10) ] any information assembled in compliance with this subchapter.

(c)

Owners and operators shall submit information pertaining to the items in subsection (b) of this section upon request of the agency [ executive director ].

(d)

Any documents submitted as a corrective action plan which do not contain all of the information required by this section shall not be accepted or approved by the agency [ executive director ], may be returned by the agency [ executive director without prejudice ], and shall not qualify as a submitted corrective action plan for the purposes of this chapter. Return of such documents by the agency [ executive director without prejudice ] does not prevent the owner or operator from filing subsequent corrective action plan documentation.

(e)

Upon approval of the corrective action plan or as directed by the agency [ executive director ], owners and operators must implement the plan, including any revisions [ modifications ] to the plan as requested [ made ] by the agency [ executive director ]. They must monitor, evaluate, and report the results of implementing the plan in accordance with a schedule and in a format established by the agency [ executive director ].

(f)

Owners and operators may, in the interest of minimizing environmental contamination and promoting more effective cleanup, begin cleanup of soil and groundwater before the corrective action is approved provided that they:

(1)

notify the agency [ executive director ] of their intention to begin cleanup;

(2)

comply with any conditions imposed by the agency [ executive director ], including halting cleanup or mitigating adverse consequences from cleanup activities;

(3)

incorporate these self-initiated cleanup measures in the corrective action plan that is submitted to the agency [ executive director ] for approval; and

(4)

prior to discharge of any waste, obtain necessary authorization from the agency [ commission ].

(g)

To [ In order to ] verify the effectiveness of corrective action taken by the owner or operator, the agency [ executive director ] may require continued monitoring of soil, vapors, groundwater, and/or surface water.

(h)

Upon completion of corrective action taken in response to the requirements of this section, the owner or operator must [ shall ] submit a statement signed by the owner or operator which certifies that the requirements of this section and the procedures in the approved corrective action plan have been accomplished.

(i)

The agency [ commission ] will [ shall ] issue a closure letter in response to the certification of completion of corrective action requirements submitted by the owner or operator as required in subsection (h) of this section.

§334.82.Public Participation.

(a)

For each confirmed release that requires [ a ] corrective action [ plan ], the agency [ executive director ] shall provide notice to the public by means designated to reach those members of the public directly affected by the release and the planned corrective action. This notice may include, but is not limited to, public notice in local newspapers, block advertisements, publication in a state register, letters to individual households, or personal contacts by field staff.

(b)

(No change.)

(c)

The executive director shall give public notice to affected parties [ that complies with subsection (a) of this section ] if implementation of an approved corrective action plan does not achieve the established cleanup levels in the plan and termination of that plan is under consideration by the executive director.

§334.83.Emergency Orders.

Notwithstanding any other provision of this subchapter, the commission or the executive director may issue emergency orders under Texas Water Code, §5.510 and Chapter 35 of this title (relating to Emergency and Temporary Orders and Permits; Temporary Suspension or Amendment of Permit Conditions) to the owner or operator of an aboveground storage tank or underground storage tank.

§334.84.Corrective Action by the Agency [ Commission ].

(a)

The agency [ commission ] may undertake corrective action in response to a release or a threatened release if:

(1)

the owner or operator of the aboveground storage tank (AST) or underground storage tank ( UST) is unwilling to take appropriate corrective action;

(2)

the owner or operator of the AST or UST [ underground storage tank ] cannot be found;

(3)

the owner or operator of the AST or UST [ underground storage tank ], in the opinion of the agency [ executive director ], is unable to take the corrective action necessary to protect the public health and safety and/or the environment; or

(4)

(No change.)

(b)

The agency [ commission ] may retain agents to perform corrective action it considers necessary to carry out the provisions of this chapter [ subchapter ]. The agents shall operate under the direction of the executive director.

§334.85.Management of Wastes.

The management and disposition of waste generated as a result of a release of regulated substances associated with an aboveground or underground storage tank must be in accordance with all applicable federal and state requirements and in a manner that will not result in adverse impacts to human health and safety and the environment

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on May 19, 2000.

TRD-200003489

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: August 1, 2000

For further information, please call: (512) 239-4712


Subchapter E. FINANCIAL RESPONSIBILITY

30 TAC §§334.91 - 334.110

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Natural Resource Conservation Commission or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

STATUTORY AUTHORITY

These section repeals are proposed under Texas Water Code (TWC), §5.103, which provides the commission authority to adopt any rules necessary to carry out its powers and duties under this code and other laws of this state and to adopt rules repealing any statement of general applicability that interprets law or policy; §5.105, which authorizes the commission to establish and approve all general policy of the commission by rule; and §26.011, which requires the commission to control the quality of water by rule. The section repeals are also proposed under TWC, §26.345, which provides the commission authority to develop a regulatory program and to adopt rules regarding underground and aboveground storage tanks, and §26.352, which requires the commission to adopt by rule requirements for maintaining evidence of financial responsibility for taking corrective action and compensating third parties for bodily injury and property damage caused by sudden and nonsudden accidental releases arising from operating an underground storage tank.

These section repeals implement TWC, Chapter 26, Subchapter I, Underground Storage Tanks.

§334.91.Applicability.

§334.92.Compliance Dates.

§334.93.Amount and Scope of Required Financial Responsibility.

§334.94.Allowable Mechanisms and Combinations of Mechanisms.

§334.95.Financial Test of Self-Insurance.

§334.96.Guarantee.

§334.97.Insurance and Risk Retention Group Coverage.

§334.98.Surety Bond.

§334.99.Letter of Credit.

§334.100.Trust Fund.

§334.101.Standby Trust Fund.

§334.102.Substitution of Financial Assurance Mechanisms by Owner or Operator.

§334.103.Cancellation or Nonrenewal by a Provider of Financial Assurance.

§334.104.Reporting by Owner or Operator.

§334.105.Financial Assurance Recordkeeping.

§334.106.Drawing on Financial Assurance Mechanisms.

§334.107.Release from the Requirements.

§334.108.Bankruptcy or Other Incapacity of Owner or Operator or Provider of Financial Assurance.

§334.109.Replenishment of Guarantees, Letters of Credit, or Surety Bonds.

§334.110.Corrective Action Deductibles.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on May 19, 2000.

TRD-200003490

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: August 1, 2000

For further information, please call: (512) 239-4712


Subchapter F. ABOVEGROUND STORAGE TANKS

30 TAC §§334.121 - 334.130, 334.132

STATUTORY AUTHORITY

The amended sections are proposed under Texas Water Code (TWC), §5.103, which provides the commission authority to adopt any rules necessary to carry out its powers and duties under this code and other laws of this state and to adopt rules repealing any statement of general applicability that interprets law or policy; §5.105, which authorizes the commission to establish and approve all general policy of the commission by rule; and §26.011, which requires the commission to control the quality of water by rule. The amended sections are also proposed under TWC, §26.345, which provides the commission authority to develop a regulatory program and to adopt rules regarding underground storage tanks, and §26.351, which provides the commission authority to adopt rules establishing the requirements for taking corrective action in response to a release from an underground or aboveground storage tank.

The proposed sections implement TWC, Chapter 26, Subchapter I, Underground Storage Tanks.

§334.121.Purpose and Applicability for Aboveground Storage Tanks (ASTs) [ ASTs ].

(a)

Purpose. The purpose of this subchapter is to provide a regulatory program for aboveground storage tanks (ASTs) storing petroleum products, as prescribed by the Texas Water Code, Chapter 26, Subchapter I, to maintain and protect the quality of groundwater and surface water resources in the state from certain substances in ASTs [ aboveground storage tanks ] that may pollute such groundwater and surface water resources, and to provide for the protection of human health and safety, as well as the protection of the overall environment of the state.

(b)

Applicability.

(1)

An AST [ aboveground storage tank ] shall be subject to the regulations in this subchapter only when such tank:

(A)

meets the definition of "aboveground storage tank" in §334.122 of this title (relating to Definitions for Aboveground Storage Tanks (ASTs) [ ASTs ]);

(B)

contains, has contained, or will contain a "petroleum product" as defined in §334.2 [ §334.122 ] of this title (relating to Definitions [ for ASTs ]);

(C)

is not exempted from regulation in §334.123 of this title (relating to [ Statutory ] Exemptions for Aboveground Storage Tanks (ASTs) [ ASTs ]); and

(D)

is not excluded from regulation in §334.124 of this title (relating to [ Commission ] Exclusions for Aboveground Storage Tanks (ASTs) [ ASTs ]).

(2)

The requirements and provisions in this subchapter are applicable [ shall apply ] to regulated ASTs [ aboveground storage tanks ], and to the registration, installation notification, reporting, recordkeeping, release reporting and corrective action, fee assessment, and other requirements associated with such tanks, as more fully described in this subchapter.

(3)

The requirements and provisions in this subchapter [ shall ] apply equally to all owners and operators of regulated ASTs [ aboveground storage tanks ], including individuals, trusts, firms, joint-stock companies, corporations, governmental corporations, partnerships, associations (including nonprofit and charity organizations), states, municipalities, commissions, political subdivisions of a state, interstate bodies, consortiums, joint ventures, commercial and noncommercial entities, and the United States government (including all of its departments), except as otherwise provided in this subchapter.

(4)

The following types of aboveground tanks are [ shall be ] subject to the regulations in this subchapter if they meet the general qualifications for an AST [ aboveground storage tank ] in paragraph (1) of this subsection:

(A)-(B)

(No change.)

(5)

If a storage tank containing a petroleum product technically meets the definitions of both an AST [ aboveground storage tank ] and an underground storage tank (UST) under this chapter, then the tank will be considered an UST [ underground storage tank ], and must conform with all applicable requirements for UST [ underground storage tanks ] in this chapter.

(6)

Consistent with the [ statutory ] exemption for heating oil tanks in §334.123(a)(2) of this title [ (relating to Statutory Exemptions for ASTs) ], an AST [ aboveground storage tank ] storing a petroleum product (such as kerosene or diesel) which is primarily used as a heating oil substitute for heating purposes on the premises where stored, and which is secondarily used as a motor fuel for the operation of internal combustion engines, is [ shall be ] exempt from the regulations of this subchapter.

§334.122.Definitions for Aboveground Storage Tanks (ASTs) [ ASTs ].

(a)

Except as provided in subsection (b) of this section, the words and terms used in this subchapter [ shall ] have the meanings prescribed in §334.2 of this title (relating to Definitions), unless the context clearly indicates otherwise.

(b)

The following words and terms, as used in this subchapter only, shall have the following meanings, unless the context clearly indicates otherwise.

(1)

Aboveground storage tank [ (or AST) ] - A nonvehicular device (including any associated piping) that is made of nonearthen materials; located on or above the surface of the ground, or on or above the surface of the floor of a structure below ground, such as a mineworking, basement, or vault; and designed to contain an accumulation of petroleum products.

[ (2)

Appropriate district office - The commission's district field office which has jurisdiction for conducting authorized commission regulatory activities in the area where a particular aboveground storage tank is located.]

(2)

[ (3) ] Associated piping - All underground pipes or aboveground pipes (including related valves, elbows, joints, flanges, connectors, and other fittings) which are directly associated with an AST [ aboveground storage tank ] storing petroleum products, which are located at the AST [ aboveground storage tank ] facility, and through which petroleum products flow or in which petroleum products are contained or stored.

(3)

[ (4) ] Bulk facility - A facility, including pipeline terminals, refinery terminals, rail and barge terminals, and associated underground and ASTs [ aboveground storage tanks ], connected or separate, from which petroleum products are withdrawn from bulk and delivered into a cargo tank or barge used to transport those products.

(4)

[ (5) ] Electric generating facility - A plant or facility where on-site equipment is used to generate electrical power on a continuous or regular basis. This term does not include emergency generators, as defined in §334.2 of this title [ (relating to Definitions) ].

[ (6)

Facility - The site, tract, or other defined area where one or more aboveground storage tanks are located, and which includes all adjoining contiguous land and associated improvements.]

[ (7)

Facility owner - Any person who holds legal possession or ownership of a total or partial interest in an aboveground storage tank facility. (The "facility owner" and the "owner" associated with an aboveground storage tank may be the same person or may be different persons, depending on the specific arrangements at the facility.)]

(5)

[ (8) ] Nonearthen materials - Man-made materials designed to provide structural support and containment, such as concrete, steel, or plastic.

(6)

[ (9) ] Nonvehicular device - A fixed, stationary, or moveable storage vessel which is not affixed or mounted to any self-propelled, towable, or pushable vehicle (e.g., wagon, truck, trailer, railcar, aircraft, boat, or barge).

[ (10)

Operator - Any person in control of, or having responsibility for, the daily operation of an aboveground storage tank.]

[ (11)

Owner - Any person who holds legal possession or ownership of a total or partial interest in an aboveground storage tank. For the purposes of this subchapter, where the actual ownership of an aboveground storage tank is either uncertain, unknown, or in dispute, the fee simple owner of the surface estate where the tank is located shall be considered the tank owner, unless the owner of the surface estate can demonstrate by appropriate documentation (deed reservation, invoice, bill of sale, etc.) or by other legally acceptable means that the aboveground storage tank is owned by others. "Owner" does not include a person who holds an interest in an aboveground storage tank solely for financial security purposes unless, through foreclosure or other related actions, the holder of such security interest has taken legal possession of the tank.]

[ (12)

Petroleum product - A petroleum substance obtained from distilling and processing crude oil that is liquid at standard conditions of temperature and pressure, and that is capable of being used as a fuel for the propulsion of a motor vehicle or aircraft, including, but not necessarily limited to, motor gasoline, gasohol, other alcohol blended fuels, aviation gasoline, kerosene, distillate fuel oil, and #1 and #2 diesel. The term does not include naphtha-type jet fuel, kerosene-type jet fuel, or a petroleum product destined for use in chemical manufacturing or feedstock of that manufacturing.]

[ (13)

Release - Any spilling including overfills, leaking, emitting, discharging, escaping, leaching, or disposing from an aboveground storage tank into groundwater or surface water, or into subsurface or other surrounding soils.]

[ (14)

Retail service station - A facility where flammable liquids used as motor fuels are stored and dispensed from fixed equipment into the fuel tanks of motor vehicles and where such dispensing is an act of retail sale.]

[ (15)

Tank - An aboveground storage tank.]

§334.123.[ Statutory ] Exemptions for Aboveground Storage Tanks (ASTs) [ ASTs ].

(a)

The following aboveground storage tanks (ASTs) are exempt from regulation under this subchapter[ , as provided in the Texas Water Code, §26.344 ]:

(1)-(9)

(No change.)

(b)

The following pipeline facilities are exempt from regulation under this subchapter, as provided in Texas Water Code, §26.344;

(1)

an interstate pipeline facility, including gathering lines and any AST [ aboveground storage tank ] connected to such facility, if the pipeline facility is regulated under:

(A)-(B)

(No change.)

(2)

an intrastate pipeline facility or any AST [ aboveground storage tank ] connected to such a facility, if the pipeline facility is regulated under one of the following state laws:

(A)-(C)

(No change.)

(c)

Upon request by the agency, the owner and operator of a tank claimed to be exempted under this section must provide appropriate documentation or other information in a timely manner to support that claim.

§334.124.[ Commission ] Exclusions for Aboveground Storage Tanks (ASTs) [ ASTs ].

(a)

Except as provided in subsection (b) of this section, the following aboveground storage tanks (ASTs) are excluded from regulation under this subchapter [ by commission directive ]:

(1)

(No change.)

(2)

any emergency spill protection or emergency overflow containment tank, including any sump or secondary containment system, which is used solely for the temporary storage or containment of petroleum products resulting from a leak, spill, overfill, or other unplanned release of petroleum products from any source, and where the petroleum products are routinely removed within 48 hours of the discovery of the release, provided that this [ such ] tank must [ shall ] be inspected for a release no less than once every month;

(3)-(4)

(No change.)

(b)

Notwithstanding the exemptions in subsection (a) of this section, any AST [ aboveground storage tank ] containing petroleum products located at a retail service station is subject to the construction notification requirements of §334.126 of the this title (relating to Installation Notification for Aboveground Storage Tanks (ASTs) [ ASTs ]).

(c)

Upon request by the agency, the owner and operator of a tank claimed to be excluded under this section must provide appropriate documentation or other information in a timely manner to support that claim.

§334.125.General Prohibitions and Requirements for Aboveground Storage Tanks (ASTs) [ ASTs ].

(a)

Delivery prohibition.

[ (1) ]

Except as provided in paragraph (1) [ (2) ] of this subsection, on or after the effective date of this subchapter, no common carrier (as defined in §334.2 of this title (relating to Definitions) [ person ] shall deposit [ or have deposited ] any petroleum products into an aboveground storage tank (AST) unless the owner or operator has a valid, current registration certificate, issued by the agency [ such tank is registered with the commission ] in accordance with §334.127 of this title (relating to Registration of Aboveground Storage Tanks (ASTs) [ ASTs ]). [ Prior to the deposit of any petroleum products into an aboveground storage tank, the owner or operator shall provide evidence of registration as necessary to comply with the provisions of this paragraph. ]

(1)

For new or replacement AST systems, only during the initial period ending 90 days after that petroleum product is first deposited into such system(s), a common carrier may accept, as adequate to meet this requirement, documentation that the owner or operator has a "temporary delivery authorization" (as defined at §334.127(h) of this title) issued by the agency for the facility at which the new or replacement AST system(s) exists.

(2)

A common carrier delivering petroleum product into an AST system may observe a valid, current, original registration certificate (or temporary delivery authorization, if applicable), or a legible copy of the same. [ The prohibited delivery of petroleum products shall not be applicable to the initial deposit of petroleum products into a new or replacement aboveground storage tank, or to any subsequent deposits occurring within 30 days of the first deposit. ]

(b)

Owner/Operator requirements. The owner and operator of ASTs regulated under this section must make available to a common carrier a valid, current Texas Natural Resource Conservation Commission (TNRCC) tank registration certificate (or TNRCC temporary delivery authorization, as applicable) before delivery of a petroleum product(s) into the AST(s) can be accepted. The bill of lading for the first delivery of petroleum product into any new or replacement AST system at the facility must be attached to the temporary delivery authorization for that facility. [ Installation notification. No person shall perform any installation or replacement of an aboveground storage tank unless and until the commission has been provided prior notification of such activity in accordance with §334.126 of this title (relating to Installation Notification for ASTs). ]

[ (c)

Registration. On or after March 1, 1990, any person who owns or operates an aboveground storage tank which contains or will contain petroleum products must register the tank with the commission in accordance with §334.127 of this title (relating to Registration for ASTs), except for:]

[ (1)

aboveground storage tanks specifically exempted from regulation under §334.123 of this title (relating to Statutory Exemptions for ASTs); and]

[ (2)

aboveground storage tanks specifically excluded from regulation under §334.124 of this title (relating to Commission Exclusions for ASTs).]

§334.126.Installation Notification for Aboveground Storage Tanks (ASTs) [ ASTs ].

(a)

Except as provided in subsection (b) of this section, [ on or after the effective date of this subchapter, ] any person who intends to install a new or replacement aboveground storage tank (AST) must [ shall ] comply with the notification requirements of this section prior to initiating such activity.

(1)

Installation notifications shall be submitted to the agency [ executive director ] at least 30 days prior to initiating the activity.

(A)

The notification may be provided either to the agency's [ commission's ] central office in Austin or to the agency's [ commission's ] appropriate regional [ district ] office. The official date of notification shall be the date on which the notification is first received in an agency [ a commission ] office.

(B)

Notification may be provided by the owner or operator, or an authorized [ agent or ] representative of the owner or operator, ( e.g., [ or ] the contractor or consultant retained for the activity ) . Notifications filed by unauthorized persons shall be null and void.

(C)

Notifications shall be submitted on the agency's [ commission's ] authorized form. The form shall be filled out [ as ] completely [ as possible ]. Upon completion, the form shall be dated and signed by the owner or operator (or authorized [ designated ] representative) and shall be filed in accordance with this paragraph.

(D)

When appropriate, installation notifications for ASTs [ aboveground storage tanks ] (as required under this section) may be filed together with construction notifications for underground storage tank (UST) activities at the same facility (as required by §334.6 of this title (relating to Construction Notification for Underground Storage Tank (USTs) and UST Systems )), provided that complete and accurate explanation of the activities is included.

(E)

Between 24 and 72 hours prior to the scheduled time of initiation of the installation, the owner or operator (or authorized [ designated ] representative) shall contact the agency's [ commission's ] appropriate regional [ district ] office to confirm the time of the initiation of the installation activities.

(F)

The requirements and procedures for rescheduling, waiver requests, and expiration as related to installation notifications for ASTs [ aboveground storage tanks ] shall be in conformance with the procedures for construction notifications applicable to USTs [ underground storage tanks ] in §334.6(b)(3)-(5) of this title [ (relating to Construction Notification) ].

(2)

When requested by the agency [ executive director ], any person who intends to install a new or replacement AST [ aboveground storage tank ] shall also submit additional supporting information to assure that the activity is in compliance with applicable statutes and regulations.

(3)

In addition to the installation notification requirements of this section, the owner or operator of a proposed AST [ aboveground storage tank ] that is to be located in the designated recharge zone or transition zone of the Edwards Aquifer shall also secure the requisite approval from the executive director prior to initiating any installation or replacement activities, as prescribed in Chapter 313 of this title (relating to Edwards Aquifer).

(4)

When an existing UST [ underground storage tank ] is to be removed from the ground and is to be subsequently converted to an AST [ aboveground storage tank ], the person [ owner or operator ] must comply with the applicable technical requirements under §334.55 of this title (relating to Permanent Removal from Service) and with the notification requirements of §334.6 and §334.126 of this title (relating to Construction Notification for Aboveground Storage Tanks (ASTs) and Installation Notification for Aboveground Storage Tanks (ASTs) [ ASTs ]).

(b)

The following ASTs [ aboveground storage tanks ] shall not be subject to the installation notification requirements of this section:

(1)

ASTs [ aboveground storage tanks ] which are [ statutorily ] exempt from regulation under §334.123 of this title (relating to [ Statutory ] Exemptions for Aboveground Storage Tanks (ASTs) [ ASTs ]);

(2)

ASTs [ aboveground storage tanks ] which are excluded from regulation [ by commission directive ] under §334.124 of this title (relating to [ Commission ] Exclusions for Aboveground Storage Tanks (ASTs) [ ASTs ]);

(3)

movable or mobile ASTs [ aboveground storage tanks ] (e.g., skid tanks) which are moved from one location to another on a regular basis, which are not permanently part of any particular facility, and which are otherwise in compliance with the provisions of §334.127(f) of this title (relating to Registration for Aboveground Storage Tanks (ASTs) [ ASTs ]); except that any movable or mobile ASTs [ aboveground storage tanks ] proposed for installation or placement at a retail service station shall remain subject to the installation notification requirements of this section.

§334.127.Registration for Aboveground Storage Tanks (ASTs) [ ASTs ].

(a)

General provisions.

(1)

All aboveground storage tanks (ASTs) in existence on or after September 1, 1989, must [ shall ] be registered with the agency [ commission ] on authorized agency forms in accordance with subsection (e) of this section [ supplied by or approved by the executive director ], except for those tanks which:

(A)

are [ statutorily ] exempt from regulation under §334.123 of this title (relating to [ Statutory ] Exemptions for Aboveground Storage Tanks (ASTs) [ ASTs ]); or

(B)

are excluded from regulation [ by commission directive ] under §334.124 of this title (relating to [ Commission ] Exclusions for Aboveground Storage Tanks (ASTs) [ ASTs ]).

(2)

The owner and operator of an AST [ aboveground storage tank ] are [ shall be ] responsible for compliance with the tank registration requirements of this section. An owner or operator may designate an authorized representative to complete and submit the required registration information ; however, [ . However, ] the owner and operator remain [ shall be held ] responsible for compliance with the provisions of this section [ by such representatives ].

(3)

All ASTs [ aboveground storage tanks ] subject to the registration requirements of this section are [ shall ] also [ be ] subject to the [ annual facility ] fee provisions in §334.128 of this title (relating to Annual Facility Fees for Aboveground Storage Tanks (ASTs) [ ASTs ]), except where specifically exempted from such fee provisions. The failure by a tank owner or operator to properly or timely register any tanks shall not exempt the owner from such fee assessment and payment provisions.

(b)

Existing tanks. Any person who owns or operates an AST [ aboveground storage tank ] subject to the provisions of this section that was in existence on September 1, 1989, shall register such tank with the agency [ commission ] not later than March 1, 1990, on an authorized agency forms [ supplied by or approved by the executive director ].

(c)

New or replacement tanks. Any person who owns or operates a new or replacement AST [ aboveground storage tank ] subject to the provisions of this section that is placed into service on or after September 1, 1989, must register the tank with the agency on an authorized agency form [ commission on forms supplied by or approved by the executive director ] no later than March 1, 1990, or within 30 days from the date any petroleum product is first placed into the tank, whichever is later.

(d)

Changes or additional information. An owner or operator of an AST [ aboveground storage tank ] subject to the provisions of this section must [ shall ] provide written notice to the agency [ executive director ] of any changes or additional information concerning the status of any regulated tanks, including, but not [ necessarily ] limited to, information regarding the operational status, condition, substance stored, ownership, location of records, and number of tanks. This [ Such ] notice must [ shall ] be submitted on an authorized agency [ a ] form which has been completed in accordance with subsection (e) of this section [ supplied by or approved by the executive director ]. This [ Such ] form must [ shall ] be properly completed and signed, and shall include the Texas Natural Resource Conservation Commission (TNRCC) [ commission's unique ] facility identification number in the appropriate space on the form. Notice of any change or additional information must [ shall ] be filed with the agency [ executive director ] within 30 days of the occurrence of the change or addition, or within 30 days from the date on which the owner or operator first became aware of the change or addition, as applicable.

(e)

Required [ Registration ] form for providing AST registration information [ aboveground storage tanks ].

(1)

Any AST [ tank ] owner or operator required to submit tank registration information under subsections (a)-(d) of this section must [ shall ] provide all the [ required ] information indicated on the agency's authorized [ on a ] form [ supplied by or approved by the executive director ] for each regulated AST [ tank ] owned.

(2)

The tank registration form must [ shall ] be filled out [ as ] completely and accurately [ as possible ]. Upon completion, the form must [ shall ] be dated and signed by the owner , operator, or an authorized [ the owner's designated ] representative of the owner or operator , and must [ shall ] be filed with the agency [ executive director ] within the time frames specified in this section.

(3)

All AST [ tank ] owners or operators required to submit AST [ tank ] registration information under subsections (a)-(d) of this section must [ shall ] provide the registration information for all ASTs [ aboveground storage tanks ] located at a particular facility on the same registration form.

(4)

All AST [ Tank ] owners or operators who own or operate ASTs [ tanks ] located at more than one facility must [ shall ] complete and file a separate registration form for each facility where regulated ASTs are located, unless otherwise allowed under subsection (f) of this section.

(5)

If additional documents are submitted with new or revised registration data, the specific facility identification information (including the facility identification number, if known) must [ shall ] be conspicuously indicated on each document, and all such documents must [ shall ] be securely attached to and filed with the registration form.

(f)

Registration requirements for movable ASTs [ aboveground storage tanks ]. Movable or mobile ASTs [ aboveground storage tanks ] which are regularly used to store petroleum products (e.g., skid tanks) must [ shall ] also be registered by the owner or operator in accordance with the provisions of this section. When such tanks are intended to be moved from one location to another on a regular basis and are not permanently part of any particular facility, then an owner or operator may register the tanks in accordance with the following procedures : [ . ]

(1)

For the purposes of completing the tank registration form, the owner or operator must [ may ] identify the facility location for such movable tanks as the owner's or operator's principal business address or location ; [ . ]

(2)

The owner or operator must [ shall ] continuously maintain complete and accurate records of the specific location, operational status, condition, and type of petroleum products stored at the owner's or operator's principal business address or location. At any given time, the [ owner's ] records must [ shall ] include the required tank information for at least the preceding five years[ , except that records for any period prior to the effective date of this subchapter shall not be required ]. Such records must [ shall ] be readily accessible and available for inspection upon request by agency [ commission ] personnel ; and [ . ]

(3)

Any movable or mobile tank which is registered at the owner's or operator's business address or location, rather than at the actual facility location, must [ shall ] be permanently and legibly labeled with the agency's [ executive director's ] designated identification number for such tank by painting, decals, tags, or other permanent identification method.

(g)

Inadequate information. When any of the required AST [ tank ] registration information submitted to the agency [ commission ] is determined to be inaccurate, unclear, illegible, incomplete, or otherwise inadequate, the agency [ executive director ] may require the owner and/or operator to submit additional information. An owner and/or operator must [ shall be required to ] submit any such additional information within 30 days of receipt of such request.

(h)

Temporary delivery authorization.

(1)

Upon receipt of a TNRCC construction notification form indicating pending installation of a new or replacement AST system(s), the agency will issue a temporary delivery authorization for that tank system(s).

(2)

The temporary delivery authorization is valid for no more than 90 days after the first delivery of petroleum product into the new or replacement AST system.

(3)

The AST owner and operator are responsible for maintaining complete and accurate records of the date of the first deposit of petroleum product into a new or replacement AST, as well as the date that the initial 90 day period expires. The bill of lading for the first delivery of regulated substance into any new or replacement AST at the facility must be attached to the temporary delivery authorization for that facility. [ Registration requirements for ASTs for reimbursement. In order to be eligible for reimbursement of any corrective action expenses, the eligibility requirements relating to registration, as provided in §334.310 of this title (relating to Requirements for Eligibility) must be met. ]

§334.128.Annual Facility Fees for Aboveground Storage Tanks (ASTs) [ ASTs ].

(a)

Fee assessments.

(1)

Except as provided in subsection (e) of this section, an annual facility fee of $25 will [ shall ] be assessed by the agency [ commission ] for each aboveground storage tank (AST) subject to the registration provisions of §334.127 of this title (relating to Registration for Aboveground Storage Tanks (ASTs) [ ASTs ]).

(2)

All annual facility fees will [ shall ] be billed to, and must [ shall ] be payable by, the owner of the AST [ aboveground storage tank ].

(3)

Payment of annual facility fees is due no later than 30 days after the date the agency [ executive director ] mails a statement of the assessment to the tank owner.

(4)

(No change.)

(b)

Billing schedule.

(1)

The agency [ executive director ] will [ shall ] establish a schedule for the billing of annual facility fees.

(2)

Regardless of the actual billing date, the total amount of annual facility fees billed to and payable by an owner will [ shall ] be based on the total number of regulated ASTs [ aboveground storage tanks ] in place on or after the first day of each fiscal year (September 1).

(c)

Failure to make payment.

(1)

(No change.)

(2)

The agency [ executive director ] will [ shall ] impose interest and penalties on owners who fail to make payment of the annual facility fees assessed under this section when due in accordance with Chapter 12 of this title (relating to Payment of Fees).

(d)

Disposition of fees, interest, and penalties. As required by the Texas Water Code (TWC) , §26.358(g), the agency [ commission ] will [ shall ] deposit all annual facility fees collected, together with all interest and penalties collected for late payment, in the state treasury to the credit of the storage tank fund.

(e)

Exception. An annual facility fee will [ shall ] not be assessed for an AST [ aboveground storage tank ] which is owned by a common carrier railroad, as provided in the TWC [ Texas Water Code ], §26.344(g).

§334.129.Release Reporting and Corrective Action for Aboveground Storage Tanks (ASTs) [ ASTs ].

(a)

An owner or operator of an aboveground storage tank (AST) must [ shall ] comply with the same release reporting, investigation, and corrective action requirements and procedures applicable to underground storage tanks, as prescribed in Subchapter D of this chapter (relating to Release Reporting and Corrective Action), whenever a suspected or confirmed release of a petroleum product from an AST [ aboveground storage tank ] has occurred.

(b)

An owner or operator of an AST [ aboveground storage tank ] which stores other petroleum substances or hazardous substances which are not petroleum products must [ shall ] comply with the release reporting, investigation, and corrective action requirements prescribed in the Texas Water Code, Chapter 26, Subchapter G.

§334.130.Reporting and Recordkeeping for Aboveground Storage Tanks (ASTs) [ ASTs ].

(a)

Reporting. Owners and operators of aboveground storage tanks (ASTs) must [ shall ] assure that all reporting and filing requirements in this subchapter are met, including the following (as applicable):

(1)

installation notification in accordance with §334.126 of this title (relating to Installation Notification for Aboveground Storage Tanks (ASTs) [ ASTs ]);

(2)

application for approval of any proposed AST [ aboveground storage tank ] in the Edwards Aquifer recharge or transition zones, in accordance with §334.126(3) of the this title [ (relating to Installation Notification for ASTs) ] and Chapter 313 of this title (relating to Edwards Aquifer);

(3)

registration of ASTs [ aboveground storage tanks ] and changes in information, in accordance with §334.127 of this title (relating to Registration for Aboveground Storage Tanks(ASTs) [ ASTs ]);

(4)

payment of annual facility fees for ASTs [ aboveground storage tanks ], in accordance with §334.128 of this title (relating to Annual Facility Fees for Aboveground Storage Tanks (ASTs) [ ASTs ]);

(5)

all reports, plans, and certifications related to actions taken in response to suspected and confirmed releases of petroleum products, in accordance with §334.129 of this title (relating to Release Reporting and Corrective Action for Aboveground Storage Tanks (ASTs) [ ASTs ] and Subchapter D of this chapter (relating to Release Reporting and Corrective Action);

(6)

any other reports, filings, notifications, or other submittals required by this subchapter, or otherwise required by the agency [ executive director ] or the commission to demonstrate compliance with the provisions of this subchapter.

(b)

Recordkeeping.

(1)

General recordkeeping requirements.

(A)

Except as provided in subparagraph (B) of this paragraph, owners and operators of ASTs [ aboveground storage tanks ] must [ shall ] comply with the same general recordkeeping requirements applicable to underground storage tanks, as prescribed in §334.10(b)(1) of this title (relating to Reporting and Recordkeeping).

(B)

Owners and operators of movable or mobile ASTs [ aboveground storage tanks ] (e.g., skid tanks) may maintain the records for such tanks in accordance with the provisions of §334.127(f)(2) of this title [ (relating to Registration for ASTs) ].

(2)

Required records and documents. Owners and operators of ASTs [ aboveground storage tanks ] must [ shall ] assure that legible copies of all original and amended tank registration documents, as prescribed in §334.127 of this title [ (relating to Registration for ASTs) ], are [ shall be ] maintained for the operational life of the AST [ aboveground storage tank ].

§334.132.Other General Provisions for Aboveground Storage Tanks (ASTs) [ ASTs ].

(a)

Other regulations. Compliance with the provisions of this subchapter by an owner or operator of an aboveground storage tank (AST) must [ shall ] not relieve such owner or operator from the responsibility of compliance with any other laws and regulations directly and/or indirectly affecting such tanks and the stored petroleum products, including, but not necessarily limited to, all applicable regulations legally promulgated by the United States Environmental Protection Agency, United States Occupational Safety and Health Administration, United States Department of Transportation, United States Nuclear Regulatory Commission, United States Department of Energy, [ Texas Air Control Board, ] Texas Department of Health, State Board of Insurance (including State Fire Marshal), Railroad Commission of Texas, Texas Department of Agriculture, State Comptroller, Texas Department of Public Safety, Texas Natural Resource Conservation Commission [ Texas Water Commission ] and any other federal, state, and local governmental agencies or entities having appropriate jurisdiction.

(b)

Responsibilities of owners and operators. The owners and operators of ASTs [ aboveground storage tanks ] subject to the provisions of this subchapter are [ shall be ] responsible for ensuring compliance with all applicable provisions of this subchapter. Owners and operators are responsible for any violations or noncompliant activities resulting from the actions or inactions by any [ contractor, operator, or other ] person who is employed or otherwise engaged by the [ an aboveground storage tank ] owner or operator [ to be principally in charge of any activities or procedures required under this subchapter ].

(c)

Inspections, monitoring, and testing.

(1)

For the purposes of developing or assisting in the development of a regulation, conducting a study, or enforcing this subchapter, an owner or operator of an AST [ aboveground storage tank ], on the request of the agency [ commission ] must [ shall ]:

(A)

(No change.)

(B)

permit a designated agent or employee of the agency [ commission ] at all reasonable times to have access to and to copy all records relating to the tank.

(2)

For the purposes of developing or assisting in the development of a regulation, conducting a study, or enforcing this subchapter, the agency's [ commission, its ] designated agent[ , ] or employee may:

(A)

enter at reasonable times an establishment or place in which an AST [ aboveground storage tank ] is located;

(B)-(C)

(No change.)

(3)

The agency [ commission ] may direct [ order ] an owner or operator of an AST [ aboveground storage tank ] to conduct monitoring and testing if the agency [ commission ] finds that there is reasonable cause to believe that a release has occurred in the area in which the [ aboveground storage ] tank is located.

[ (4)

Each inspection made under this section must be begun and completed with reasonable promptness. Before a designated agent or employee of the commission enters private property to carry out a function authorized under this section, the agent or employee must give reasonable notice and exhibit proper identification to the manager or owner of the property or to another appropriate person. The commission's designated agent or employee must observe the regulations of the establishment being inspected, including regulations regarding safety, internal security, and fire protection.]

[ (5)

Pursuant to the provisions of Texas Civil Statutes, Article 9201, §3 (as amended by Senate Bill 698, 71st Legislature, 1989), the commission shall have concurrent jurisdiction with the State Board of Insurance on inspection of initial installation and other administrative supervision of certain specified aboveground storage tanks at retail service stations. Primary authority for inspection of initial installation of such tanks shall be in the Texas Water Commission. The commission shall report all violations of Texas Civil Statutes, Article 9201, §3, in regard to aboveground storage tanks to the state fire marshal for enforcement proceedings.]

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on May 19, 2000.

TRD-200003491

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: August 1, 2000

For further information, please call: (512) 239-4712


30 TAC §334.131

(Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Texas Natural Resource Conservation Commission or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

STATUTORY AUTHORITY

This section repeal is proposed under Texas Water Code (TWC), §5.103, which provides the commission authority to adopt any rules necessary to carry out its powers and duties under this code and other laws of this state and to adopt rules repealing any statement of general applicability that interprets law or policy; §5.105, which authorizes the commission to establish and approve all general policy of the commission by rule; and §26.011, which requires the commission to control the quality of water by rule. This section repeal is also proposed under TWC, §26.345, which provides the commission authority to develop a regulatory program and to adopt rules regarding underground storage tanks, and §26.351, which provides the commission authority to adopt rules establishing the requirements for taking corrective action in response to a release from an underground or aboveground storage tank.

This section repeal implements TWC, Chapter 26, Subchapter I, Underground Storage Tanks.

§334.131.Enforcement for ASTs.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on May 19, 2000.

TRD-200003492

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: August 1, 2000

For further information, please call: (512) 239-4712


Subchapter G. TARGET CONCENTRATION CRITERIA

30 TAC §§334.201-334.206, 334.208

STATUTORY AUTHORITY

The amended sections are proposed under Texas Water Code (TWC), §5.103, which provides the commission authority to adopt any rules necessary to carry out its powers and duties under this code and other laws of this state and to adopt rules repealing any statement of general applicability that interprets law or policy; §5.105, which authorizes the commission to establish and approve all general policy of the commission by rule; and §26.011, which requires the commission to control the quality of water by rule. The amended sections are also proposed under TWC, §26.345, which provides the commission authority to develop a regulatory program and to adopt rules regarding underground storage tanks, §26.351, which provides the commission authority to adopt rules establishing the requirements for taking corrective action in response to a release from an underground or aboveground storage tank, and §26.454, which provides the commission authority to adopt rules for the licensing of installers and on-site supervisors, and continuing education requirements for installers and on-site supervisors.

The proposed sections implement TWC, Chapter 26, Subchapter I, Underground Storage Tanks and Subchapter K, Underground Storage Tank Installers.

§334.201.Purpose and Applicability.

(a)

Purpose. The purpose of this subchapter is to establish the criteria by which target concentrations are established for the cleanup of leaking storage tank site releases discovered and reported to the agency [ executive director ] on or before August 31, 2003.

(b)

Applicability. For releases which are discovered and reported to the agency [ executive director ] on or before August 31, 2003, the provisions of this subchapter are applicable to owners and operators of all underground storage tanks (USTs) and petroleum product aboveground storage tanks (ASTs) unless otherwise specified in Subchapters A and F of this chapter (relating to General Provisions and Aboveground Storage Tanks, respectively). These rules supersede previous cleanup guidelines as published in the January 1990, Guidance Manual for LPST Cleanups in Texas. All leaking storage tank cases which are not eligible for closure pursuant to the cleanup guidelines as published in the January 1990, Guidance Manual for LPST Cleanups in Texas as of November 8, 1995 shall be reevaluated by the owner and operator under this rule to establish target concentrations unless the agency [ executive director ] has provided written approval of a remediation plan to clean a site to a specific numeric target concentration and the remediation plan has been initiated prior to November 8, 1995 [ the effective date of these rules ]. For releases reported to the agency [ executive director ] on or after September 1, 2003, the provisions of Chapter 350 of this title (relating to Texas Risk Reduction Program) are applicable to owners and operators of all USTs [ underground storage tanks ] and petroleum product aboveground storage tanks (ASTs) unless otherwise specified in Subchapters A and F of this chapter in place of the provisions of this subchapter.

§334.202.Definitions.

The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1)-(14)

(No change.)

(15)

Institutional control - Legally binding instruments that the responsible party and the agency [ executive director ] may use as part of a corrective action plan to control or eliminate an otherwise viable exposure pathway to ensure that exposure to remaining regulated substances is reduced to a human health and environmentally protective level. Institutional controls may include record notice, land use restrictions, land access restrictions and controls, or other legally binding and practically feasible instrument.

(16)

Maximum contaminant level or MCL - The maximum concentration in water of a regulated substance established by the United States [ U.S. ] Environmental Protection Agency under Section 141 of the Federal Safe Drinking Water Act.

(17)

(No change.)

(18)

Potential beneficial use - The potential use derived from a natural resource (for example, groundwater or surface water) to benefit a user if that resource was [ were ] not affected by the released regulated substance. This will not consider uses that are unlikely to occur or otherwise extreme circumstances. Groundwater is considered to have a potential beneficial use as a drinking water source if the natural quality of the groundwater is less than 10,000 mg/l total dissolved solids content, yields of usable quantities of water are discharged to wells or springs, or [ and/or ] there is a documented use of the groundwater.

(19)-(25)

(No change.)

§334.203.Risk-Based Criteria for Establishing Target Concentrations.

Owners and operators shall apply the following risk-based criteria to evaluate sites and determine target concentrations:

(1)

Plan A site evaluation criteria. The owner and operator should use Plan A established target concentrations to screen sites for closure, or use the Plan A criteria to establish target concentrations for the purposes of establishing a corrective action plan in accordance with §334.81 of this title (relating to Corrective Action Plans), or to evaluate the potential benefit of further site evaluation under paragraph (2) of this section.

(A)

The owner and operator shall consider potential exposure to receptors through direct and indirect exposure pathways as required by the agency [ executive director ] and determine whether or not such pathways are complete [ or not ]. A pathway is considered complete if there is a source area, a transport mechanism and an existing or potential receptor;

(B)

For complete pathways, target concentrations shall be calculated using equations and models, target risk goals, and exposure factors as established by the agency [ executive director ];

(C)

Target concentrations shall be based upon chemical property information defined by the agency [ executive director ] when such information is provided by the agency [ executive director ];

(D)

Target concentrations for indirect or cross-media pathways shall be based upon default media property assumptions defined by the agency [ executive director ] when site-specific media property information is not available;

(E)

(No change.)

(F)

The owner and operator shall use equations and models as required by the agency [ executive director ] to calculate target concentrations;

(G)-(H)

(No change.)

(I)

Target groundwater concentration criteria:

(i)

the actual beneficial use or [ reasonable ] potential beneficial use of the affected groundwater shall be considered;

(ii)

(No change.)

(iii)

residential groundwater ingestion shall be the default exposure pathway unless the owner and operator can show to the satisfaction of the agency [ executive director ] that the documented actual beneficial use of the affected groundwater is for a use other than drinking water purposes;

(iv)

the individual carcinogenic risk must not exceed a range of 1 X 10 -6 to 1 X 10 -4 as required by the agency [ executive director ] for beneficial use groundwaters. For any carcinogen, if the federally promulgated MCL is a higher value (less stringent), then the MCL may be used;

(v)

(No change.)

(vi)

Only the removal of non-aqueous phase liquid [ free product ] as required pursuant to §334.79 of this title (relating to [ Free Product ] Removal of Non-Aqueous Phase Liquid ) and any subsequent monitoring as required by the agency [ executive director ] shall be necessary when the affected groundwater is of no potential beneficial use provided the owner and operator can document to the satisfaction of the agency [ executive director ] that the dissolved regulated substance concentrations for such groundwater that is less than 15 feet deep, is protective of potential direct contact by construction workers; that any explosive vapors, adverse affects to subsurface utilities, nuisance conditions, discharge of regulated substances to surface waters at unprotective levels, and plume expansion have been abated and should not occur in the future. When any of these conditions are not met with only the [ free product ] removal of non-aqueous phase liquid , then target groundwater concentrations shall be established by the owner and operator so as to meet these conditions;

(vii)-(viii)

(No change.)

(J)

Target soil concentration criteria:

(i)

ingestion of soils from ground surface to a depth of 15 feet for residential and commercial/industrial land uses unless the owner and operator can provide documentation to the satisfaction of the agency [ executive director ] that an alternate depth is more appropriate. Fifteen feet in the opinion of the agency [ commission ] represents a reasonable depth above which soil could be excavated and brought to the ground surface during construction activities;

(ii)

inhalation of volatile and particulate emissions for residential and commercial/industrial land uses, when the soil from ground surface to a depth of 15 [ two ] feet is affected, but not covered with an impermeable surface. If the owner and operator can provide sufficient evidence that the impermeable surface will be maintained and will prevent inhalation exposure, then inhalation from soil contaminants may be dropped from further analysis;

(iii)-(viii)

(No change.)

(K)

(No change.)

(L)

The maximum levels of regulated substances remaining in all affected media shall meet the established target concentrations throughout the entire extent of affected area unless the owner and operator can demonstrate to the satisfaction of the agency [ executive director ] that such action is technically infeasible and that public health and the environment are otherwise adequately protected;

(M)

The owner and operator shall submit reports in accordance with a schedule and in a format established by the agency [ executive director ];

(N)

The owner and operator or agency [ executive director ] may recommend institutional controls in accordance with §334.205 of this title (relating to Institutional Control Requirements) to reinforce exposure assumptions; and

(O)

Any necessary requirements as established by the agency [ executive director ] to protect public health, safety, and the environment . [ ; or ]

(2)

Plan B site-evaluation criteria. The owner and operator may elect to further evaluate a site under Plan B to determine more appropriate target concentrations for affected media which may be used to justify a closure recommendation, or for the purposes of establishing a corrective action plan in accordance with §334.81 of this title [ (relating to Corrective Action Plans) ].

(A)

The owner and operator shall consider potential exposure to receptors through direct and indirect exposure pathways as required by the agency [ executive director ] and determine whether or not such pathways are complete or not. A pathway determined to be incomplete in the Plan A evaluation does not need to be reevaluated under this subsection.

(B)

For complete pathways, target concentrations shall be calculated using equations, target risk goals, and exposure factors as established by the agency [ executive director ].

(C)

Target concentrations shall be based upon chemical property information defined by the agency [ executive director ] when such information is provided by the agency [ executive director ].

(D)

Target concentrations for indirect or cross-media pathways shall be based upon default media property assumptions and models defined by the agency [ executive director ] when site- specific media property information is not available. Use of site-specific media property information is encouraged as part of this evaluation. If the owner and operator wish to use alternative models, prior concurrence from the agency [ executive director ] shall be obtained.

(E)

The agency [ executive director ] may require owners and operators to collect additional site information prior to or after the evaluation of the site under this section to substantiate the conclusions of the evaluation.

(F)

For known or suspected carcinogens, the individual and cumulative carcinogenic risk of 1 X 10 -6 to 1 X 10 -4 as required by the agency [ executive director ].

(G)

(No change.)

(H)

The owner and operator may apply target concentrations for direct exposure pathways calculated under paragraph (1) of this section at reasonable exposure points instead of the source area unless the source area is a reasonable exposure point. All exposure points assumptions are subject to approval by the agency [ executive director ].

(I)

The agency [ executive director ] may allow use of compliance points to serve as the basis for meeting target concentrations for indirect exposure pathways provided:

(i)-(v)

(No change.)

(vi)

estimates or predictions of compliance point concentrations and degree and rate of transport of regulated substances are verified with site monitoring data. Where site monitoring data and contaminant fate and transport modelling results yield conflicting information, the agency [ executive director ] shall place more value on the monitoring data;

(vii)

the agency [ executive director ] may require the use of specific contaminant fate and transport models; and

(viii)

(No change.)

(J)-(K)

(No change.)

(L)

The owner and operator , or the agency, [ executive director ] may recommend the use of specific institutional controls to control or eliminate potentially viable exposure pathways, and to reinforce exposure assumptions and future land use assumptions.

(M)

The owner and operator shall submit reports in accordance with a schedule and in a format established by the agency [ executive director ].

(N)

The owner and operator shall meet all requirements imposed by the agency [ executive director ].

(3)

Health-based target concentration established pursuant to paragraphs (1) or (2) of this section shall be based upon toxicological information current at the time the report is submitted to the agency [ commission ]. Toxicological information shall be from the following sources in order of listing:

(A)-(E)

(No change.)

(4)

(No change.)

(5)

The exposure assessment and determination of target concentrations conducted pursuant to paragraphs (1) or (2) of this section shall consider:

(A)-(D)

(No change.)

(E)

an exposure assessment considering exposure pathways as requested by the agency [ executive director ];

(F)

(No change.)

(G)

any additional considerations as established by the agency [ executive director ].

(6)

After receipt of a written statement by the agency [ executive director ] that all corrective action regulations have been met and that no further corrective actions are warranted, then the case shall be considered closed unless a substantial change in circumstances results in an unacceptable risk to human health or the environment. A substantial change in circumstance shall include, but is not limited to:

(A)-(D)

(No change.)

§334.204.Criteria for Selection of Land Use.

The owner and operator shall address each of the following when determining the use of the affected property(ies).

(1)

(No change.)

(2)

Properties for which the future use of the property is unknown (property is vacant or for sale) shall assume residential land use unless the owner and operator can demonstrate to the satisfaction of the agency [ executive director ] that the past use of the property and use of surrounding properties clearly suggests future use of the property for residential land use is unlikely.

(3)

For property currently vacant, or not owned by the owner or operator, the property owner should be interviewed to establish the intended future use of the property. Statements explaining planned future land use and signed by the affected property owners should be provided to the agency [ commission ] for each affected property to verify that the property owners have been consulted.

(4)-(5)

(No change.)

(6)

Other information as requested by the agency [ executive director ] to verify the appropriate categorization of land use.

§334.205.Institutional Control Requirements.

When institutional controls are assumed in determining target concentrations, the owner and operator shall file institutional control requirements in the county deed records of the county or counties in which the property affected by the institutional control is located. Institutional controls shall be required when such action is needed to demonstrate control or elimination of exposure pathways in a manner consistent with §334.203(1) or (2) of this title (relating to Risk-Based Criteria for Establishing Target Concentrations). Institutional controls may also be required to provide notice to future land owners that residual regulated substances are present at the site when the site is considered protective so long as there is no substantial change in site conditions or use of the property which would change the exposure conditions. All institutional control information filed in the county deed records must be written such that a layperson can easily understand it.

(1)

Institutional controls may be required as part of the corrective action plan when:

(A)-(D)

(No change.)

(E)

when requested by the agency [ executive director ].

(2)

The owner and operator , or the agency, [ executive director ] may recommend the specific conditions of the institutional control. In the event the agency [ executive director ] and the owner and operator are unable to agree upon a suitable institutional control, then the agency [ executive director ] will require target concentrations to be established so as to eliminate a need for an institutional control.

(3)

Institutional controls may only be employed on sites when the owner(s) of the affected property(ies) is/are in agreement with the placement and the conditions of the institutional control. A written statement signed by the owner, or their designated agent, of each property directly affected by the placement of the institutional control must be provided to the agency [ executive director ] by the owner and operator which indicates that the owner of the affected property understands the requirements set forth in §334.206 of this title (relating to Criteria for Institutional Control Use) and agrees with the placement and terms of the institutional control.

§334.206.Criteria for Institutional Control Use.

(a)

Within 90 days of the date the agency [ executive director ] requests the filing of an institutional control, the owner and operator must provide a certified copy of the filed institutional control stamped by the County Clerk(s), listing the page and volume of the record notice to the agency [ executive director ]. The filed institutional control must contain:

(1)

the name and address of the owner and operator of the tract of land to which the institutional controls are applicable, and a metes and bounds description of the portion(s) of the tract of land affected by the institutional control as agreed to by the agency [ executive director ];

(2)

(No change.)

(3)

a certification by a registered professional land surveyor so registered by the Texas Board of Professional Land Surveying attesting to the accuracy of the descriptions provided in paragraphs (1) and (2) of this subsection;

(4)

(No change.)

(5)

a statement that the agency [ executive director ] must be notified in writing at least 120 days prior to changes in site use or site conditions which violate the terms of the institutional control, when the terms of the institutional control place use conditions on the affected area;

(6)

a statement that information and documents concerning the corrective action effort and contaminant conditions are available for inspection upon request of [ at ] the [ Texas Natural Resource Conservation Commission or subsequent ] agency;

(7)

(No change.)

(8)

other information as requested by the agency [ executive director ].

(b)

The current or future owner of the property affected by the institutional control shall notify the agency [ executive director ] in writing at least 120 days prior to changing the use or altering the condition of the site such that the conditions specified in the institutional control would no longer be met. The owner and operator will then provide a re-evaluation of the site to the agency [ executive director ] within 30 days of the date of notification such that the property owner is able to demonstrate:

(1)-(3)

(No change.)

(c)

When the implementation of institutional controls by the owner and operator is a condition of site closure, and such condition was stipulated in a final concurrence letter issued by the agency [ executive director ], the closure status is valid only so long as the conditions set forth in the institutional control agreed to by the agency [ executive director ] and filed in the county deed records are met. When the conditions of the institutional control are not met, then the conditions for closure are no longer met, and site closure status is nullified. The current or future owner and operator affected by the institutional control shall notify the agency [ executive director ] within 24 hours of the discovery that the conditions of the institutional control are not met. When the conditions of the institutional control are not met and the change in site use or condition was not coordinated as defined in subsection (a)(5) of this section, then the future or current owner and operator is out of compliance pursuant to §334.81(h) of this title (relating to Corrective Action Plan) and may be subjected to formal enforcement proceedings.

(d)

When appropriate analytical evidence demonstrates to the reasonable satisfaction of the agency [ executive director ] that concentrations of residual substances at the site no longer exceed the target risk goals by process of natural degradation or other active site cleanup, then the agency [ executive director ] shall agree by written concurrence to the placement of a statement in the county deed records by the current or future owner of the land which nullifies the need for the institutional control and indicates that residual substance concentrations meet health protective levels. Under this condition, the final concurrence letter shall remain in effect.

§334.208.Model Institutional Controls.

This is an example of the language the agency would accept for deed restrictions, etc., that address residual contamination left at a given location. In some instances an institutional control is an acceptable alternative to further remediation, but adequate notice via a deed restriction, etc., is needed for the protection of current and future property owners.

Figure: 30 TAC §334.208

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on May 19, 2000.

TRD-200003493

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: August 1, 2000

For further information, please call: (512) 239-4712


Subchapter H. REIMBURSEMENT PROGRAM

30 TAC §§334.301 - 334.310, 334.312 - 334.315, 334.318, 334.320 - 334.322

STATUTORY AUTHORITY

The amended sections are proposed under Texas Water Code (TWC), §5.103, which provides the commission authority to adopt any rules necessary to carry out its powers and duties under this code and other laws of this state and to adopt rules repealing any statement of general applicability that interprets law or policy; §5.105, which authorizes the commission to establish and approve all general policy of the commission by rule; and §26.011, which requires the commission to control the quality of water by rule. The amended sections are also proposed under TWC, §26.345, which provides the commission authority to develop a regulatory program and to adopt rules regarding underground storage tanks, and §26.351, which provides the commission authority to adopt rules establishing the requirements for taking corrective action in response to a release from an underground or aboveground storage tank.

The proposed sections implement TWC, Chapter 26, Subchapter I, Underground Storage Tanks.

§334.301. Applicability of this Subchapter.

(a)

(No change.)

(b)

Deadline for commencing corrective action [ Commencing Corrective Action ]. This subchapter applies only under the following conditions:

(1)

the confirmed release or releases which necessitated the corrective action were reported to the agency [ executive director ] on or before December 22, 1998; and

(2)

the release is confirmed by the agency [ executive director ].

(c)

Expenses considered for payment - time frame in which corrective action performed [ Considered for Payment - Time Frame in Which Corrective Action Performed ]. Subject to the other requirements of this subchapter, the expenses which may be considered for payment from the petroleum storage tank remediation fund (PSTR) are limited to expenses of corrective action which was performed for the owner or operator on or after September 1, 1987, and conducted in response to a confirmed release that was initially discovered and reported to the agency [ commission ] on or before December 22, 1998. Expenses for corrective action performed prior to September 1, 1987, are not subject to reimbursement or payment. No expenses for corrective action will be reimbursed on or after September 1, 2003 [ 2001 ].

[ (d)

Expenses covered by House Bill 1214 not covered by prior law. Subject to the other requirements of this subchapter, expenses for corrective action covered by House Bill 1214, but which were not allowable under prior law may be subject to reimbursement. In order to process applications for new expenses allowed under House Bill 1214, the executive director may prescribe applications and processing procedures for claims relating to expenses which were not allowable prior to June 16, 1991, consistent with the following guidelines:]

[ (1)

the procedures shall allow for the most expeditious processing possible for all types of applications, new and old; and also]

[ (2)

the procedures shall be consistent with sound management of the petroleum storage tank remediation fund.]

(d)

[ (e) ] Limitations [ Limitation ]. This subchapter shall not be construed to authorize reimbursement or payment from the PSTR [ petroleum storage tank remediation ] fund in situations other than those described in subsection (a) of this section and any person seeking reimbursement under this subchapter must meet the requirements of this subchapter .

[ (f)

Eligibility under other rules. An owner or operator of a petroleum storage tank who is not subject to this subchapter or who does not qualify as an eligible owner or operator under this subchapter is not automatically precluded from qualifying under any other rules which the commission may adopt to implement House Bill 1588, however:]

[ (1)

any person seeking reimbursement or assistance under this subchapter must meet the requirements of this subchapter; and]

[ (2)

any person seeking reimbursement or assistance under any other rules which the commission may adopt must meet the requirements of those rules.]

(e)

[ (g) ] Operative date for this subchapter. This subchapter applies as follows.

(1)

This subchapter authorizes applications for payment from the PSTR [ petroleum storage tank remediation ] fund to be filed and processed pursuant to its terms on and after July 17, 1990, and ratifies any actions relating to filing and processing applications taken in accordance with this subchapter.

(2)

This subchapter authorizes the agency [ executive director ] to make payments pursuant to its terms from the PSTR [ petroleum storage tank remediation ] fund on and after July 17, 1990, and ratifies any payments made in accordance with this subchapter.

(3)

All costs incurred in the course of performing corrective action which are incurred on or after September 1, 1987, will be subject to the terms of this subchapter for the purposes of determining whether those costs are allowable. Nothing in this paragraph shall be construed to invalidate payments made by the agency [ executive director ] under prior rules of the commission.

(f)

[ (h) ] If any section, subsection, paragraph, subparagraph, clause, or subclause of this subchapter is held invalid, such invalidity shall not affect any other section, subsection, paragraph, subparagraph, clause, or subclause which can be given effect without the invalid provision, and to this end the provisions of this subchapter are declared to be severable.

[ (i)

Priorities for reimbursement applications to be processed during the 1994-1995 biennium pursuant to Senate Bill 1243. The following provisions apply to the priority payment process for reimbursement applications which is set forth in paragraph (5) of this subsection.]

[ (1)

Applications within the priority system will be processed in accordance with the number of tanks owned or operated by the applicant, and further prioritized, as necessary, based upon the date the application is received by the executive director.]

[ (2)

Only those applications received prior to September 1, 1993, shall be eligible for payment under this subsection.]

[ (3)

The executive director may reimburse applicants within a priority category within the priority system under paragraph (5) of this subsection if there are insufficient funds to complete the priority category, on a pro rata basis.]

[ (4)

Applications to be processed with Priority 4 applications.]

[ (A)

Regardless of the number of tanks owned or operated, applications from the following shall be processed with Priority 4 applications:]

[ (i)

entities (other than municipalities and local government entities) which have satisfied or can satisfy the criteria set forth in §334.95 of this title (relating to the Financial Test of Self-Insurance) for owners and operators of underground storage tanks; and]

[ (ii)

state and federal entities.]

[ (B)

Information on satisfaction of self-insurance requirements shall be provided by authorized representatives of applicants by the deadline set forth in the executive director's letter requesting certification of same. The executive director may request additional information, as necessary, to support the certification. Failure to submit the certification form or any additional requested information by the stated deadline may result in an application being processed as a Priority 4 application.]

[ (C)

Notwithstanding the provisions of subparagraph (A) of this paragraph, entities which satisfy the criteria for self-insurance pursuant to subparagraph (B) of this paragraph and are nonprofit entities shall be reimbursed under Priority 3 as described in paragraph (5)(C) of this subsection.]

[ (D)

Information on entities' nonprofit status shall be provided by authorized representatives of applicants by the deadline set forth in the executive director's letter requesting the certification. The executive director may request additional information, as necessary, to support the certification. Failure to submit the certification form or any additional requested information by the stated deadline may result in an application being processed as a Priority 4 application.]

[ (5)

Priority system. Subject to the conditions set forth in paragraphs (1)-(4) of this subsection, all applications received will be processed in accordance with the following:]

[ (A)

Priority 1 - applications received from applicants who own or operate less than 13 tanks;]

[ (B)

Priority 2 - applications submitted by applicants who own or operate between 13 and 99 tanks;]

[ (C)

Priority 3 - applications submitted by applicants who own or operate between 100 and 999 tanks; and]

[ (D)

Priority 4 - applications submitted by applicants who own or operate 1,000 tanks or more.]

(g)

[ (j) ] Suspending payments from the PSTR fund. The executive director may suspend payments from the fund, in whole or in part, as necessary to preserve the viability of the fund.

(h)

[ (k) ] Effective September 1, 1995, the executive director shall consider and process a claim by an eligible owner or operator for reimbursement from the PSTR [ petroleum storage tank remediation ] fund in the order in which it is received, with the following provisions:

(1)

(No change.)

(2)

The executive director may not consider, process, or pay a claim for reimbursement from the PSTR [ petroleum storage tank remediation ] fund for corrective action work begun after September 1, 1993, and without prior approval until all claims for reimbursement for preapproved corrective action work have been considered, processed, and paid.

§334.302. General Conditions and Limitations Regarding Reimbursement.

(a)

To [ In order to ] be considered for reimbursement under this subchapter, corrective action must be performed either as provided in subsection (b) of this section or in response to a release which:

(1)

results in contamination which penetrates beyond the excavation zone of the tank system and which is above action levels determined by the agency [ executive director ];

(2)

is ultimately confirmed by the agency [ executive director ], either before or after corrective action commences, provided that it shall be the burden of the person claiming monies under this subchapter to show both that a release which is eligible for reimbursement occurred and the expenses claimed are allowable and reimbursable; and[ , ]

(3)

the confirmed release was initially discovered and reported to the agency [ commission ] on or before December 22, 1998.

(b)

Subsection (a) of this section does not apply if the corrective action is specifically required by an order of the commission, or a written request or confirmation by the agency [ executive director ], and the release was initially discovered and reported to the agency [ commission ] on or before December 22, 1998.

(c)

No payments shall be made by the agency [ commission ] under this subchapter for:

(1)

the owner/operator contribution described in §334.312 of this title (relating to Owner/Operator Contribution), which the agency [ executive director ] may apportion in the case of multiple claimants as provided in §334.314(f) of this title (relating to [ Executive Director's ] Fund Payment Report);

(2)-(3)

(No change.)

(4)

any expenses for corrective action incurred for confirmed releases initially discovered and reported to the agency [ commission ] after December 22, 1998; or

(5)

any corrective action expenses [ of corrective action ] on or after September 1, 2003 [ 2001 ] , regardless of when the expenses were incurred .

(d)

No expenses for which reimbursement is claimed under this subchapter and no expenses which are to be applied to the owner/operator contribution shall be subject to reimbursement or applied to the owner/operator contribution unless the following conditions have been met.

(1)

An application for reimbursement must be filed by the owner or operator of a petroleum storage tank or his duly authorized representative, as required by §334.304 of this title (relating to Who May File Application[ --Interim Period ]).

(2)

Unless otherwise approved by the agency [ executive director ], a certification affidavit as provided in the application for reimbursement must be signed by all of the following: owner or operator of a petroleum storage tank, the application preparer, and the prime contractor and/or the prime corrective action specialist, as defined in §334.322 of this title (relating to Subchapter H Definitions).

(3)

The application has been filed within the time prescribed in §334.303 of this title (relating to When [ Time ] to [ To ] File Application[ --Interim Period ]).

(4)

The person seeking reimbursement must be an eligible owner or operator, as defined in §334.322 and §334.310 of this title (relating to Subchapter H Definitions and Requirements for Eligibility[ --Interim Period ] , respectively ) or they must be authorized by an eligible owner or eligible operator to receive such payment pursuant to subsections (i)-(k) of this section.

(5)

The expenses for which reimbursement is sought, and those which are to be applied to the owner/operator contribution must be allowable costs, as defined in §334.308 of this title (relating to Allowable Costs and Restrictions on Allowable Costs [ --Interim Period ]).

(6)

The allowable costs for which reimbursement is sought and those which are to be applied to the owner/operator contribution must be reimbursable, as defined in §334.309 of this title (relating to Reimbursable Costs[ --Interim Period ]).

(7)

(No change.)

(e)

For purposes of this subchapter only, the persons listed in §334.310 of this title [ (relating to Requirements for Eligibility--Interim Period ]) may be eligible owners or operators, provided that they meet the other criteria prescribed by this subchapter.

(f)-(i)

(No change.)

(j)

Authorization for an agent or assignee to receive payment on behalf of an eligible owner or operator must be in writing and signed by the eligible owner or operator who is requesting payment. The authorization must clearly describe what funds the agent or assignee is authorized to receive. If the agency [ executive director ] determines that the authorization is not clear as to the disposition of funds to which the eligible owner or operator is entitled, the agency [ executive director ] may withhold payment and request written clarification from the eligible owner or operator. The agency [ executive director ] may limit the number of agents or assignees who may receive payments for any one occurrence. Notwithstanding any review made or limitations imposed by the agency [ executive director ] pursuant to this section, neither the State of Texas, nor the agency [ commission, nor its employees ] shall be responsible for insuring that payment is made to the parties as contemplated by the authorization. It is the responsibility of the eligible owner or operator and the agent requesting payment to insure that the agency [ executive director ] is supplied with information sufficient to make the proper payments. The right to receive payment under this subchapter is not transferable for any purpose and only the people authorized to receive payment under this section are entitled to do so.

(k)

(No change.)

(l)

The agency [ executive director ] may require the execution of a contract of subrogation prior to the disbursement of payment.

§334.303. When [ Time ] to File Application.

(a)

An application for reimbursement under this subchapter must be filed on or after January 17, 1990, but prior to June 1, 2003 .

(b)

No expenses are allowable for reimbursement under this subchapter unless a complete [ an ] application for reimbursement [ Application for Reimbursement ] is filed.

(c)

For claimed expenses of corrective action activities, the application for reimbursement will not be considered complete until the supporting information, reports, and/or documentation required by the agency under Subchapter D of this chapter (relating to Release Reporting and Corrective Action) have been filed with the agency.

§334.304. Who May File Application.

Only the following person may file an application for reimbursement under this subchapter:

(1)-(2)

(No change.)

(3)

an owner or operator ordered by the commission or required in a written corrective action directive by the agency staff [ executive director ] on or after September 1, 1987, to assess the nature and extent of contamination in cases where no release is discovered, or the duly authorized agent of such owner or operator; or

(4)

(No change.)

§334.305. Where and How Documents Must be Filed.

(a)

Any application for reimbursement or claim for payment filed pursuant to this subchapter , plus any fees and registration information required pursuant to §334.310(a) of this title (relating to Requirements for Eligibility) must be submitted to the agency, at the address specified on the application form. [ shall be filed as follows: ]

[ (1)

the original application, plus any fees and registration information required pursuant to §334.310(a) of this title (relating to Requirements for Eligibility) submitted to: Texas Natural Resource Conservation Commission, P. O. Box 13087, Austin, Texas 78711-3087, Attention: Petroleum Storage Tank Division, Reimbursement Section; and]

[ (2)

one complete copy of the application and attachments submitted to the Texas Natural Resource Conservation Commission Regional Office in the region where the tanks covered by the application are located.]

(b)

All documents to be filed under this subchapter shall be filed with the agency [ executive director ] using one of the following:

(1)-(3)

(No change.)

(4)

any other method approved by the agency [ executive director ].

(c)

The date of filing of any document required to be filed with the agency [ executive director ] under this subchapter shall be the [ date postmarked on the return receipt in the case of mailing or courier services, and the ] receipt date stamped on the document by the agency [ executive director in the case of hand delivery ].

(d)

(No change.)

§334.306. Form and Contents of Application.

(a)

An application for reimbursement filed pursuant to this subchapter shall be on a form approved or provided by the agency [ executive director ].

(b)

The application must [ shall ] contain the following:

(1)

the name, address, telephone number, and signature of all of the following: the applicant, the application preparer, and the prime contractor and/or prime corrective action specialist required by §334.302 of this title (relating to General Conditions and Limitations Regarding Reimbursement), unless otherwise approved by the agency [ executive director ];

(2)-(4)

(No change.)

(5)

any information required by the agency [ executive director ] under §334.307 of this title (relating to Technical Information Required), if not already submitted to the agency [ executive director ];

(6)

(No change.)

(7)

proof [ evidence ] that the amounts shown on the invoices for which reimbursement is requested have been paid in full by the claimant. The submission [ evidence ] must include [ be accompanied by ] either:

(A)-(B)

(No change.)

(C)

the certification of a certified public accountant that the expenses for which reimbursement is requested have been paid in full; [ or ]

(D)

a notarized [ an ] affidavit signed by the person who performed the corrective action, affirming that the amounts which the applicant represents as being paid to the person who performed the corrective action [ him ] were paid in full; or

(E)

a promissory note issued by the eligible owner or operator to the person who performed the corrective action for the claimed amount accompanied by a notarized affidavit signed by the person who performed the corrective action, affirming that the amounts which the applicant represents as being paid to person who performed the corrective action, were paid in full, via the promissory note;

(8)

(No change.)

(9)

any other information which the agency [ executive director ] may reasonably require.

(c)

[ Provided the initial application is filed on or before the effective date of final rule adopted to succeed this interim subchapter, the ] An application [ applicant ] may be filed [ file the application ] at [ any phase of corrective action. Payment will only be made at ] the following [ payment ] times:

(1)

after the completion of a phase or pre-approved activity ; or

(2)

at points during the corrective action process agreed to by the agency [ executive director ] and the applicant.

(d)

The agency [ executive director ] may require the applicant to supplement information already submitted or return the application [ without prejudice ] if the information is not sufficient to review the application.

(e)

The applicant must update his application with any information not yet submitted to the agency [ executive director ] before processing or payment of claims at any stage begins.

(f)

For purposes of this subchapter, the following are the phases of corrective action:

(1)-(2)

(No change.)

(3)

comprehensive site assessment [ and remediation planning ] phase;

(4)

risk assessment and remediation planning phase;

(5)

[ (4) ] remediation phase; [ and ]

(6)

[ (5) ] post-remediation monitoring phase[ . ] ; and

(7)

site closure.

§334.307. Technical Information Required.

(a)

The following information may be required by the agency [ executive director ] as part of any application for reimbursement under this subchapter:

(1)

any information which the agency [ executive director ] may require pursuant to Subchapter D of this chapter (relating to Release Reporting and Corrective Action);

(2)-(3)

(No change.)

(b)

The agency [ executive director ] may require the applicant to supplement information already submitted or return the application [ without prejudice ] if the information is not sufficient to review the application.

§334.308. Allowable Costs and Restrictions on Allowable Costs.

(a)

(No change.)

(b)

Allowable costs are those costs and expenses which arise directly from the performance of necessary corrective action in accordance with the requirements of the agency [ commission ], subject to the limitations prescribed by this section.

(c)

Unless otherwise specified in subsection (g) of this section, allowable costs shall include, but not be limited to, the following:

(1)-(2)

(No change.)

(3)

temporary provision of an alternate water supply[ , provided that in order to be allowable, any water supplied on or after January 17, 1990, must be approved in advance by the commission or must be supplied in response to a written directive from the executive director issued before January 17, 1990 ]. The agency [ executive director ] shall determine the length of time during which the cost of water supply may be allowable, the amounts of water which may be allowable, the uses for which water supply may be allowable, and other conditions of approval;

(4)

(No change.)

(5)

emplacement of [ observation and ] monitor wells;

(6)-(7)

(No change.)

(8)

tank system integrity testing in accordance with the methods prescribed by this chapter when such testing:

(A)

(No change.)

(B)

has been specifically requested by the agency staff [ executive director ] on or after May 31, 1989; or

(C)

(No change.)

(9)-(13)

(No change.)

(14)

a portion of costs, as specified in this section, of tank removals, transport, and disposal of the components of the underground or aboveground tank, including compliance with applicable requirements pursuant to Subchapter D of this chapter [ (relating to Release Reporting and Corrective Action) ], when necessary for the performance of corrective action and performed on or after March 12, 1993. Reimbursement of tank removals performed on or after March 12, 1993, shall be based on the volume of the tank removed and shall have a maximum reimbursable limit of $8,000 per leaking petroleum storage tank [ LPST ] site. For underground storage tanks (USTs) having a volume of 5,000 gallons or less, the portion of reimbursable costs of removal for each such tank is $1,000. For USTs [ underground storage tanks ] having a volume of greater than 5,000 gallons, the portion of reimbursable costs of removal for each such tank is $2,000;

(15)

permanent abandonment in-place, of a tank system, including compliance with applicable requirements pursuant to Subchapter D of this chapter [ (relating to Release Reporting and Corrective Action) ], where abandonment in-place rather than tank system removal is deemed by the agency [ executive director ] to be necessary to avoid destruction of substantial or significant surface improvements and conducted before June 6, 1993;

(16)

(No change.)

(17)

preparation of technical reports required pursuant to the requirements of Subchapter D of this chapter [ (relating to Release Reporting and Corrective Action) ];

(18)

the reasonable, as determined by the agency and as limited by the reimbursable cost guidelines, [ fair market ] value of necessary time to obtain access to property outside of the facility boundaries where such access is necessary for the performance of corrective action;

(19)

the reasonable value , as determined by the agency and as limited by the reimbursable cost guidelines, of necessary time spent by the applicant in planning and administering the applicant's [ his own ] corrective action plan;

(20)

performance of any corrective action measure which is specifically required by an order of the commission or a written request [ or confirmation of the ] by agency staff [ executive director ] on or after September 1, 1987;

(21)

(No change.)

(22)

any other costs determined by the agency [ executive director ] to be allowable in accordance with the provisions of this subchapter.

(d)

The costs of abatement or corrective action taken in response to a release of hydraulic fluid from a hydraulic lift system are allowable costs in situations where:

(1)

(No change.)

(2)

upon request by the agency [ executive director ], the eligible owner or operator demonstrates that a release from the hydraulic lift system is not mixed with any substance except for petroleum products from a petroleum storage tank system, spent oil from a spent oil tank located at a vehicle service and fueling facility (or another substance contained in such spent oil tank), or another substance that was contained in the hydraulic lift system owned or operated by the person claiming reimbursement.

(e)

The costs of abatement or corrective action taken in response to a release of spent oil from a spent oil tank are allowable costs under the following:

(1)

(No change.)

(2)

Upon request by the agency [ executive director ], the eligible owner or operator demonstrates that a release of spent oil is not mixed with any substance except for petroleum products from a petroleum storage tank system, or hydraulic fluid (or another substance that was contained in the hydraulic lift system) or another substance that was contained in the spent oil tank owned or operated by the person claiming reimbursement.

(f)

The costs of excavation, disposal, or treatment of backfill material generated during the tank removal process, any additional sampling and reporting required under Subchapter D of this chapter [ (relating to Release Reporting and Corrective Action) ] required because of the disposal or treatment of the backfill material are allowable costs where the concentration of constituents in the backfill material exceed a standard for which the agency [ executive director ] will permit the backfill material to be returned to the original tank pit excavation and a prior written directive is obtained from the agency [ executive director ] prior to implementation.

(g)

The following types of costs are those which will not be considered allowable costs under this subchapter:

(1)-(4)

(No change.)

(5)

permanent abandonment in-place of a tank system, where abandonment in-place rather than tank system removal is deemed by the agency [ executive director ] to be necessary to avoid destruction of substantial or significant surface improvements when conducted on or after March 12, 1993;

(6)-(14)

(No change.)

(15)

costs of tank integrity testing when it is not specifically required by this chapter, requested by the agency staff [ executive director ], or ordered by the commission;

(16)

costs of any corrective action incurred by an owner or operator on or after the date that the executive director commences corrective action at the owner's or the operator's facility pursuant to §334.84 [ §334.321 ] of this title (relating to Corrective Action by the Agency [ Commission ]), unless authorized in writing by the agency [ executive director ];

(17)-(19)

(No change.)

(20)

excluding releases identified under subsections (d) and (e) of this section, the cost of abatement or corrective action taken in response to a release of : [ of a commingled substance as that term is defined in §334.322 of this title (relating to Subchapter H Definitions), excluding subsections (d) and (e) of this section; and ]

(A)

a regulated substance, which is not a petroleum product; and

(B)

a release of a petroleum product that has commingled with a regulated substance, which is not a petroleum product; and,

(21)

(No change.)

§334.309. Reimbursable Costs.

(a)

The agency [ commission ] will utilize the reimbursable cost guidelines, as outlined in §334.560 of this title (relating to Reimbursable Cost Guidelines), to evaluate the reimbursability of claims related to the cleanup of leaking petroleum storage tank sites.

(b)

(No change.)

(c)

For those activities that require preapproval, pursuant to §334.310(f) of this title (relating to Requirements for Eligibility), the agency [ commission ] will consider the pre-approved cost or the actual cost, whichever is lower, as the reimbursable cost.

§334.310. Requirements for Eligibility.

(a)

For a person to be an eligible owner or operator under this subchapter, each of the following requirements must be met.

(1)

The person must meet the other requirements of this chapter and must be:

(A)

(No change.)

(B)

any past owner or operator of a tank described in subparagraph (A) of this paragraph who performed corrective action on or after September 1, 1987 , and on or before September 1, 2003, [ 2001 ] in response to a release of petroleum products from such tank;

(C)-(E)

(No change.)

(F)

an adjacent landowner who can clearly prove that the land has been contaminated by a release of petroleum products from a tank described in subparagraph (A) of this paragraph which is not located on said land, and who performed corrective action in response to a release of petroleum products from such tank, and either:

(i)

performed emergency abatement actions by completing all the following:

(I)

notifying the agency [ executive director ] within 24 hours of discovery that the emergency condition exists;

(II)

(No change.)

(III)

taking actions necessary to protect against imminent danger to human health and safety by mitigating fire, explosion, and vapor hazards, by removing phase-separated product from structures, basements, sumps, etc., or performing other actions as deemed necessary by the executive director. Restoration of site to preexisting conditions, cost of relocating utility structures, site assessment, and remediation are not considered part of emergency abatement activities. Any expenses incurred after 72 hours from commencement of the action must be approved by the agency [ executive director ] in writing; and

(IV)

having the release and threat ultimately confirmed by the agency [ executive director ]; or

(ii)

committed to undertake the entire cleanup of the leak and contamination from the tank on his property and on all other property by:

(I)

obtaining prior approval in writing from the agency [ executive director ];

(II)-(IV)

(No change.)

(2)

An underground and aboveground storage tank installed prior to December 1, 1995, which is required to be registered pursuant §334.7 of this title (relating to Registration for Underground Storage Tanks ("USTs") and UST Systems) or §334.127 of this title (relating to Registration for ASTs) must be registered with the agency [ executive director ] on or before December 31, 1995, or the owner or operator is not eligible to receive reimbursement for that tank, except for:

(A)-(C)

(No change.)

(3)

The owner or operator of an underground and aboveground storage tank installed on or after December 1, 1995 , must be registered with the agency [ executive director ] pursuant §334.7 of this title [ (relating to Registration) ] or §334.127 of this title [ (relating to Registration of ASTs) ] no later than the 30th day after the date the installation is completed to be eligible for reimbursement for such tank.

(4)

All annual facility fees due since September 1, 1987, pursuant to §334.21 of this title (relating to Fee Assessment), and since September 1, 1989, pursuant to §334.128 of this title (relating to Annual Facility Fees) for all underground and aboveground storage tanks which they own or operate must be paid to the agency [ executive director ], except for those tanks which the owner or operator, upon reasonable inquiry, could not have known existed. All fees which come due up until the time that reimbursement funds are released to the claimant must be paid.

(5)

Any release on which a claim under this subchapter is based must be discovered and reported to the agency [ executive director ] on or before December 22, 1998, and must subsequently be confirmed by the agency [ executive director ].

(b)

(No change.)

(c)

The agency [ executive director ] may determine other persons to be eligible owners or operators in accordance with the standards of the Texas Water Code, §26.3571.

(d)

(No change.)

(e)

In no case will reimbursement be made under subsection (a)(1)(F) of this section for duplication of assessment and remediation activities involving the same contamination plume. There will be no reimbursement for adjacent landowner cleanup allowed under subsection (a)(1)(F) of this section for activities at a site which occur after the site has been designated for state lead cleanup under §334.84 of this title (relating to Corrective Action by the Agency [ Commission ]).

(f)

(No change.)

§334.312. Owner/Operator Contribution.

(a)

The agency [ executive director ] shall deduct from any amount claimed for reimbursement an amount of allowable costs equal to the greater amount applicable for the owner/operator contribution as described in this section.

(b)-(c)

(No change.)

(d)

If an owner or operator's corrective action plan as required by §334.81 of this title (relating to Corrective Action Plan) is not approved by the agency [ commission ] before June 23, 1998 [ December 23, 1997 ], the owner/operator contribution for each occurrence shall be as follows:

(1)-(4)

(No change.)

(e)

If an owner or operator's corrective action plan as required by §334.81 of this title [ (relating to Corrective Action Plan) ] is not approved by the agency [ commission ] before December 23, 1999, and [ December 23, 1998 or ] if the owner or operator has not met the goals specified in the plan to be met by December 23, 1999 [ 1998 ], the owner/operator contribution for each occurrence shall be as follows:

(1)-(4)

(No change.)

(f)

(No change.)

(g)

It shall be presumed for purposes of this section that a person owns:

(1)

the number of tanks for which he is registered as the owner in the records of the agency [ executive director ] on the date that an administratively complete application is filed with the agency [ executive director ]; or

(2)

the number of tanks actually owned by the eligible owner or operator on the date that an administratively complete application is filed with the agency [ executive director ], whichever is greater.

§334.313. Review of Application [ by Executive Director ].

(a)

An application for reimbursement or supplemented application filed under this subchapter shall be subject to review by the agency [ executive director ]:

(1)

to determine if the information which is required to be submitted under this subchapter has been filed with the agency [ executive director ] , utilizing the following procedure ;

(A)

an application submitted will be reviewed by the staff for completeness. To be considered complete, an application must contain the following information:

(i)

a completed application form, which has been provided or approved by the agency, containing the information required under §334.306(a) and (b)(1)-(4) of this title (relating to Form and Contents of Application);

(ii)

be accompanied by legible copies of invoices (contractor and subcontractor) and proof of payment as required under §334.306(b)(6) and (7) of this title;

(iii)

be accompanied by copies of preapproval documentation and technical information requested in the application form, provided or approved by the agency, under §334.306(b)(5) of this title and §334.307(a) of this title (relating to Technical Information Required); and

(iv)

the completion of an Application Checklist, provided with the application form, verifying that the applicant and application preparer have reviewed the application for completeness;

(B)

if an application is received which is not complete, the agency shall notify the applicant of the deficiencies by mail. If the required information is not received within 30 days of the date of the deficiency notice, the applicant must reapply;

(C)

if 30 days is insufficient time to prepare an adequate response, the applicant may request one extension of 30 days to supply the required information. If the extension is granted and the required information is not received from the applicant within that 30 days, the applicant must reapply;

(D)

after an application is determined by the agency to be complete, the agency will then commence a substantive (technical and financial) review of the application;

(E)

if it is determined that an otherwise complete application contains any costs which required prior agency approval prior to implementation as required by §334.310(f) of this title (relating to Requirements for Eligibility), and such prior approval was not obtained, the applicant will be notified and the application will not be forwarded for further review until such time as the agency reviews applications with non-preapproved costs as allowed under subsection (f) of this section;

(F)

if it has been determined that an otherwise complete application contains costs for a corrective action activity which has been performed improperly, or the information or report that documents the activity has been determined to be deficient or defective by the agency under Subchapter D of this chapter (relating to Release Reporting and Corrective Action), the applicant will be notified and the application will not be forwarded for further review. The applicant may resubmit the application after the defects or deficiencies have been resolved and the agency concurs that the corrective action activity or documentation is acceptable under Subchapter D of this chapter;

(G)

the received date of the application is considered to be the date which the complete application was received by the agency, or the date which the required additional information (under subparagraph (B) of this paragraph) was received by the agency; and

(2)

(No change.)

(b)

An application which does not contain all the information required by this subchapter will not be considered a complete claim and will not be processed [ may be returned by the executive director without prejudice ]. This [ Return of the application by the executive director without prejudice ] does not prevent the applicant from filing another application for the same occurrence at any time prior to June 1, 2003 [ on or before the effective date of final rules adopted to succeed this interim subchapter ].

(c)

The agency [ executive director ] is not required to commence the substantive review of an application until he has received all of the information this subchapter requires the applicant to submit in order for the executive director to review a claim for payment.

(d)

If, during the course of the substantive (technical and financial) review, the agency [ executive director ] finds that additional information of the type required by this subchapter is needed to evaluate the application, it [ he ] may : [ require the applicant to provide such additional information. Further review of the application may be postponed until such information is received by the executive director. ]

(1)

require the applicant to provide such additional information. Further review of the application will be postponed until such information is received by the agency. The received date for the complete claim will be considered the date on which the agency received such additional required information; or

(2)

issue the fund payment report, but withhold payment for the insufficiently documented costs or insufficiently documented corrective action activity.

(e)

An application for reimbursement or supplemental application filed under this subchapter shall be subject to audit by the agency [ executive director ].

(f)

The executive director may not consider, process, or pay a claim for reimbursement for corrective action work begun after September 1, 1993, and without prior agency [ commission ] approval until all claims for reimbursement for corrective action work preapproved by the agency [ commission ] have been considered, processed, and paid.

§334.314. [ Executive Director's ] Fund Payment Report.

(a)

Upon completion of the review of an application, the agency [ executive director ] shall prepare a fund payment report, indicating which of the applicant's claims the executive director believes should be reimbursed and which claims should not be reimbursed. If the executive director finds that any claim should not be paid or not paid to the full amount claimed, he shall briefly state the reasons in his report. The executive director shall submit a copy of his report to the applicant.

(b)

The applicant shall review the fund payment report and shall file a written response with the agency [ executive director ] within 60 [ 45 ] days of the date on [ receipt of ] the report. The response shall be on a form provided or approved by the agency [ executive director ]. The applicant may consent or object to all or any part of the report. If the agency [ executive director ] has not received a response from the applicant within 60 [ 45 ] days from the date of [ on which the applicant received ] the report, the following shall occur:

(1)-(3)

(No change.)

(c)

Any item recommended for payment in the fund payment report to which the applicant objects shall not be eligible for payment until the agency [ executive director ] and the applicant agree on an amount for payment or until the commission orders payment in a prescribed amount, whichever occurs first.

(d)

Any item recommended for payment in the fund payment report to which the applicant consents by filing a timely response to the fund payment report shall be eligible for reimbursement when the agency [ executive director ] receives the applicant's consent form, which may include the submission of a signed subrogation contract, when required. The consent of the applicant to any item recommended for payment shall mean that any claim covered by that item is considered satisfied in full.

(e)

The agency [ executive director ] may in its [ his ] discretion pay claims which it [ he ] has approved for payment by sending payment with the fund payment report.

(f)

(No change.)

§334.315. Protest of Fund Payment Report.

(a)

If the applicant [ he ] disagrees with any conclusion in the fund payment report, the applicant may file a protest with the executive director within 60 [ 45 ] days of the date on [ which he receives ] the fund payment report.

(b)

The protest must be in writing and signed by the applicant. It must be on a form prescribed or approved by the agency [ executive director ]. It must contain the following:

(1)

(No change.)

(2)

the address of the facility in question and the Texas Natural Resource Conservation Commission [ executive director's ] facility number, if any;

(3)

(No change.)

(4)

a clear statement of each item which the applicant disputes on the [ executive director's ] fund payment report and any other documentation necessary to support the protest [ of any other complaint the applicant has relating to the claim ].

(c)

(No change.)

(d)

The applicant and the staff of the executive director shall attempt to resolve informally any disputes over the fund payment report. If no resolution is reached by the staff and the applicant, the applicant may file a petition requesting the commission to grant relief. Within 60 [ 45 ] days of receipt of written notification from the agency [ executive director ] that informal negotiations have ceased and the final informal fund protest meeting has been held, the applicant shall file a petition as specified in §334.316 of this title (relating to Formal Petition).

§334.318. Recovery of Costs.

The agency [ commission ] may initiate proceedings against any owner or operator of a petroleum storage tank for recovery of costs, as provided by the Texas Water Code, §26.355.

§334.320. Responsibilities of Owners , [ and ] Operators , and Others .

(a)

(No change.)

(b)

The owner and operator are obligated to pursue whatever actions are necessary to minimize any immediate impacts of threats to human health and safety and the environment and to stabilize the conditions caused by the release. When financially unable to pursue immediate abatement actions, the owner or operator shall notify the agency [ executive director ] immediately.

(c)

No person shall knowingly submit false information to the agency [ executive director ] as part of any materials required to be submitted under this subchapter.

§334.321. Corrective Action by the Agency [ Commission ].

[ (a)

The executive director may undertake corrective action under this subchapter until September 1, 2001 in any case if:]

[ (1)

the owner or operator of the underground or aboveground storage tank is unwilling to take corrective action;]

[ (2)

the owner or operator of the underground or aboveground storage tank cannot be found;]

[ (3)

the owner or operator of the underground or aboveground storage tank, in the opinion of the executive director, is unable to take the corrective action necessary to protect the public health and safety or the environment;]

[ (4)

the executive director determines that more expeditious corrective action is necessary to protect the public health and safety or the environment from harm;]

[ (5)

the executive director considers it necessary to take corrective action to protect the public health and safety or the environment; or]

[ (6)

the owner or operator of the underground or aboveground storage tank demonstrates his/her financial inability to the executive director to take the corrective action necessary to protect the public health and safety or the environment.]

[ (b)

Except as provided in subsection (d) of this section, the executive director must provide notice of his intent to take corrective action to all owners and operators of petroleum storage tanks at a facility who are then currently registered in accordance with the registration requirements of this chapter before he undertakes corrective action at the facility.]

[ (c)

The notice must identify the property, state that the executive director intends to take corrective action at the facility, and state that costs incurred by the owner or operator from and after the date the executive director commences corrective action will not be allowable costs for reimbursement, unless authorized in writing by the executive director.]

[ (d)

The executive director may commence corrective action without prior notice if in his discretion immediate action is required to protect public health and safety or to protect the environment from harm. The executive director must provide the notice that he has commenced corrective action to all owners and operators of petroleum storage tanks at a facility who are then currently registered in accordance with the registration requirements of this chapter as soon as possible in the manner prescribed by subsection (c) of this section.]

[ (e) ]

No costs of corrective action incurred by an owner or operator at a facility on or after the date that the agency [ executive director ] commences corrective action at the owner's or the operator's facility are allowable for reimbursement under this subchapter, unless authorized and the estimated costs preapproved in writing by the agency [ executive director ] in accordance with this subchapter .

§334.322. Subchapter H Definitions.

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

[ (1)

Abate -- To reduce in sufficient degree or intensity the source of the release or impacted area, and potential fire, explosion, or vapor hazards such that immediate threats to human health no longer exist. This includes the removal of all regulated substances from the aboveground or underground tank, and the removal of phase-separated products released from the tank.]

[ (2)

Aboveground storage tank -- A non-vehicular device with a capacity of more than 1,100 gallons, and all connecting piping both above and below ground, that is made of non-earthen materials; located on or above the surface of the ground or on or above the surface of the floor of a structure below ground, such as a mineworking basement, or vault; and designed to contain an accumulation of petroleum.]

(1)

[ (3) ] Action level -- The concentration of constituents in the native soil or water at which corrective action will be required. Exceeding an action level warrants further assessment of the site, but does not mandate that site cleanup be required. Based upon the results of the site assessment, the need for site cleanup will then be determined and cleanup levels will be set. Action levels should not be used as cleanup levels; they are simply levels which signal the need for additional assessment.

(2)

[ (4) ] Adjacent landowner -- A person who owns legal title to land which is within reasonably close proximity to property where a regulated underground storage tank (UST) [ UST ] or aboveground storage tank [ AST ] is located whether or not the land is contiguous to the property containing the tank.

(3)

[ (5) ] Application preparer -- Any person responsible for preparing the application for reimbursement.

[ (6)

Backfill -- The volume of materials or soils surrounding the underground storage tank and bounded by the ground surface, walls, and floor of the tankpit.]

(4)

[ 7 ] Commingled [ substance ] -- See definition in §334.2 of this title (relating to Definitions). [ A combination or mixture of a petroleum product and a non-petroleum product (excluding soil and/or water). ]

(5)

[ 8 ] Confirmed -- In the context of a release[ , ] being confirmed by the agency [ executive director ] under this subchapter , means that the executive director has determined that sufficient evidence exists to prove that a release of petroleum products has occurred from a petroleum storage tank subject to regulation under this chapter.

(6)

[ (9) ] Contract of subrogation -- A document of agreement between the executive director and the eligible tank owner and operator which authorizes the executive director to recover costs reimbursed from persons who performed corrective action activities at leaking petroleum storage tank [ LPST ] sites.

[ (10)

Corrective action -- Any assessment and remedial activities undertaken to investigate the extent of and remediate contamination. Unless otherwise approved by the executive director, written approval is required prior to implementation of any corrective action activity.]

[ (11)

Corrective action plan (remedial action plan) -- A detailed plan developed to address site remediation of soil, groundwater, or surface water contamination that provides for adequate protection of human health safety and the environment. The selection of the most effective and efficient remedial method will be dictated by the nature and location of the release, the site soils, hydrogeological conditions, and the required degree of remediation. The remedial method selection should take into consideration such factors as cost, time, and state compliance requirements with each method. The title of any report which contains a corrective action plan must include the designation "remedial action plan."]

(7)

Eligible aboveground storage tank -- A non-vehicular device with a capacity of more than 1,100 gallons, and all connecting piping both above and below ground, that is made of non-earthen materials; located on or above the surface of the ground or on or above the surface of the floor of a structure below ground, such as a mineworking basement, or vault; and designed to contain an accumulation of petroleum.

(8)

[ (12) ] Eligible operator -- Any person in control of or having the responsibility for the daily operation of a petroleum storage tank who meets the eligibility requirements prescribed in §334.310 of this title (relating to Requirements for Eligibility).

(9)

[ 13 ] Eligible owner -- Any person who meets the eligibility requirements prescribed in §334.310 of this title [ (relating to Requirements for Eligibility--Interim Period) ] and who held or currently holds legal possession or ownership of a total or partial interest in a petroleum storage tank. For the purposes of this subchapter, where the actual ownership of the petroleum storage tank is either uncertain, unknown, or in dispute, the fee simple owner of the surface estate where the petroleum storage tank is located shall be considered the petroleum storage tank owner, unless it can be shown by appropriate documentation (deed reservation, invoice, bill of sale, etc.) or by other legally acceptable means that the petroleum storage tank is owned by another. "Owner" does not include a person who holds an interest in a petroleum storage tank solely for financial security purposes unless, through foreclosure or other related actions, the holder of such security interest has taken legal possession of the petroleum storage tank. [ For purposes of this subchapter, if it can be demonstrated that a petroleum storage tank has been "out of operation" as that term is defined in §334.2 of this title (relating to Definitions) for a period of 10 years, the tank shall be considered property of the owner of the surface estate (71st Legislature, 1989, Chapter 228, effective May 31, 1989). ]

(10)

[ (14) ] Emergency -- Any existing or potential fire, explosion, or vapor hazards which pose an imminent threat to human health and safety, or any imminent threat at the point of actual use to drinking water supplies actually being used.

(11)

[ 15 ] Emergency abatement -- Taking mitigating actions necessary in an emergency to protect against imminent danger to human health and safety [ by mitigating fire, explosion, and vapor hazards, ] by removing phase-separated product from structures, basements, sumps, etc., or performing other actions as deemed necessary by the agency [ executive director ]. Restoration of site to preexisting conditions, cost of relocating utility structures, site assessment, and remediation are not considered part of emergency abatement activities.

[ (16)

House Bill 1214 -- House Bill 1214 (72nd Legislature, effective June 16, 1991).]

[ (17)

Hydraulic fluid -- Any regulated substance that is normally used in a hydraulic lift system.]

(12)

[ (18) ] Initial abatement measures -- The mitigation of all existing or potential fire, explosion, or vapor hazards, including the removal of phase-separated product, to provide adequate protection of human health, safety, and the environment in emergency situations or other situations where emergency actions must be implemented to prevent further impacts to the environment. Restoration of site to preexisting conditions, cost of relocating utility structures, site assessment, and remediation are not considered part of initial abatement measures.

(13)

[ 19 ] Petroleum product -- See definition in §334.2 of this title. [ A product obtained from distilling and processing crude oil and that is capable of being used as a fuel for the propulsion of a motor vehicle or aircraft, including motor gasoline, gasohol, other alcohol blended fuels, aviation gasoline, kerosene, distillate fuel oil, and #1 and #2 diesel. The term does not include naphtha-type jet fuel, kerosene-type jet fuel, or a petroleum product destined for use in chemical manufacturing or feedstock of that manufacturing. ]

(14)

[ 20 ] Petroleum storage tank -- See definition in §334.2 of this title.

[ (A)

Any one or combination of aboveground storage tanks and all connecting piping that contain petroleum products and that are regulated by the commission; or]

[ (B)

Any one or combination of underground storage tanks and any connecting underground pipes that contain petroleum products and that are regulated by the commission.]

(15)

[ (21) ] Phase-separated product -- See Free-product as defined in §334.2 of this title [ (relating to Definitions) ].

(16)

[ (22) ] Prime contractor -- Any natural person , [ or ] consulting firm, or any entity responsible for the contracting of any corrective action services.

(17)

[ (23) ] Prime corrective action specialist -- A natural person , [ or ] consulting firm, or any entity engaging in corrective action services, or acting as coordinator of others engaged in corrective action services.

(18)

[ (24) ] Spent oil -- A regulated substance that is a lubricating oil or similar petroleum substance which has been refined from crude oil, used for its designed or intended purposes, and contaminated as a result of that use by physical or chemical impurities, including spent motor vehicle lubricating oils, transmission fluid, or brake fluid.

(19)

[ (25) ] Tank removal -- The physical removal of an UST [ underground storage tank ] from the subsurface. Tank removals include removal and replacement of surface material, excavation and disposal of backfill material, tank removal and disposal, backfilling and compaction of excavation, and any other activities typically associated with the tank removal process.

(20)

[ (26) ] Vehicle service and fueling facility -- A facility where motor vehicles are serviced or repaired and where petroleum products are stored and dispensed from fixed equipment into the fuel tanks of motor vehicles.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on May 19, 2000.

TRD-200003494

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: August 1, 2000

For further information, please call: (512) 239-4712


Subchapter I. UNDERGROUND STORAGE TANK CONTRACTOR REGISTRATION AND INSTALLER LICENSING

30 TAC §§334.402 - 334.407, 334.409, 334.411, 334.412, 334.414, 334.416 - 334.424, 334.426, 334.428

STATUTORY AUTHORITY

The amended sections are proposed under Texas Water Code (TWC), §5.103, which provides the commission authority to adopt any rules necessary to carry out its powers and duties under this code and other laws of this state and to adopt rules repealing any statement of general applicability that interprets law or policy; §5.105, which authorizes the commission to establish and approve all general policy of the commission by rule; and §26.011, which requires the commission to control the quality of water by rule. The amended sections are also proposed under TWC, §26.345, which provides the commission authority to develop a regulatory program and to adopt rules regarding underground storage tanks, §26.351, which provides the commission authority to adopt rules establishing the requirements for taking corrective action in response to a release from an underground or aboveground storage tank, and §26.454, which provides the commission authority to adopt rules for the licensing of installers and on-site supervisors, and continuing education requirements for installers and on-site supervisors.

The proposed sections implement TWC, Chapter 26, Subchapter I, Underground Storage Tanks and Subchapter K, Underground Storage Tank Installers.

§334.402. Application for Certificate of Registration.

Any person as defined in §334.412 of this title (relating to [ Subchapter I ] Definitions) who engages in the installation, repair, or removal of an underground storage tank (UST) shall meet the following application requirements [ in order ] to obtain a certificate of registration.

(1)

A person shall apply for a certificate of registration on a form approved by the agency [ executive director ].

(2)

The application for certificate of registration shall include:

(A)

(No change.)

(B)

an authorized representative's name and title, when the applicant is not an actual individual [ the business representative's name and title ];

(C)

the address, telephone number, and an authorized [ business ] representative for any branch office within the State of Texas which will be operating under the requested certificate of registration;

(D)

documentation of [ financial assurance, including ]:

(i)

proof [ evidence ] of commercial liability insurance designating the Texas Natural Resource Conservation [ Water ] Commission as the certificate holder in an amount of not less than $1 million and of a type approved by the agency; [ executive director; and a financial statement prepared in conformity with accounting principles as defined by the American Institute of Public Accountants, indicating an applicant's current net worth of not less than $25,000; or ]

(ii)

a financial statement (balance sheet) prepared in conformity with accounting principles as defined by the American Institute of Public Accountants, indicating an applicant's current net worth of not less than $25,000; or a letter from a certified public accountant who is not employed by the applicant or does not receive payment from the applicant on a regular basis verifying that the applicant's current net worth is not less that $25,000 [ other evidence of financial assurance which is determined by the executive director to be sufficient for the purposes of the section ];

(E)

documentation of quality of performance including one of the following:

(i)

sworn statements, on forms approved by the agency [ executive director ], from at least three persons (references), not related by blood or marriage, who have engaged the applicant within the previous 12 months to perform: UST installations, repairs, or removals; underground utility construction; or other engineering construction. These statements shall attest to the applicant's business integrity and levels of performance. Such statements shall also include a description of the type of construction which was performed by the applicant;

(ii)

a written explanation indicating good cause as determined by the agency [ executive director ] for not providing the sworn statements required in clause (i) of this subparagraph. The explanation shall include a detailed description of at least three case histories of typical UST construction activities performed by the applicant during the previous 12 months; or

(iii)

other documentation of quality of performance which is determined by the agency [ executive director ] to be sufficient for the purposes of this section;

(F)

a sworn statement from the applicant attesting to the accuracy of the information provided on the application ; [ , which has been notarized. ]

(G)

payment of the initial application/issuance fee of $150 as required under §334.406 of this title (relating to Fee Assessments for Certificate Registration).

§334.403. Issuance of Certificate of Registration.

(a)

An application for a certificate of registration shall be accepted for processing upon agency [ commission ] receipt of a properly completed application as required by §334.402 of this title (relating to Application for Certificate of Registration), and the initial application/issuance fee [ fees ] of $150 ($50 application fee and $100 certificate issuance fee) required under §334.406 of this title (relating to Fee Assessments for Certificate Registration). [ The $100 issuance fee shall be refunded if the application is withdrawn or denied. ]

(b)

Within 30 days of receipt of an application, the agency [ executive director ] shall evaluate the application for completeness and, if necessary, provide written comments to the applicant noting any additional information which is required for processing. [ The executive director will forward the written comments by certified mail return receipt requested. ] The applicant will have 30 days from date of delivery of the agency's [ executive director's ] written comments to submit the requested information, after which time [ the $100 issuance fee will be returned and ] the certificate of registration may be denied [ without prejudice ].

(c)

Within 30 days of receipt of a properly completed application, the agency [ executive director ] shall either issue a certificate of registration or deny the application.

(d)

(No change.)

§334.404. Renewal of Certificate of Registration.

(a)

(No change.)

(b)

The agency [ commission ] shall notify each registered contractor in writing of the impending registration expiration at least 60 days prior to the expiration of the certificate of registration.

(c)

The agency [ executive director ] shall provide application forms for renewal of a certificate of registration.

(d)

A properly completed application for renewal (including but not limited to proper payment of renewal fees and certification of adequate financial requirements as prescribed in §334.402(2)(D) of this subchapter (relating to Application for Certificate of Registration)) shall be submitted to the agency [ executive director ] at least 30 days prior to the expiration date of the certificate of registration. [ The current certificate of registration shall be valid until the executive director notifies the applicant of renewal or denial of the submitted renewal application, provided a properly completed application for renewal was submitted at least 30 days prior to the expiration date of the certificate of registration. ]

(1)

If the applicant has not been notified by the agency of the renewal decision by the time the certificate of registration expires, and a complete renewal application was received 30 days prior to the expiration date, then the certificate of registration is considered provisionally renewed during that interim period between that expiration date and the date the agency notifies the applicant of the renewal decision;

(2)

If a complete application for renewal is not filed at least 30 days prior to the expiration date of the current registration, and the agency has not processed that late renewal application by the expiration date, the current registration shall expire and will not be considered provisionally renewed. The registration may be renewed any time within one year of the expiration date. Services performed after expiration, but before renewal, shall be considered to have been performed without a proper registration under this subchapter.

(3)

Certificates of registration issued anytime during the one year period after the expiration date will have an expiration date of one year following the previous expiration date.

(e)

The application must be accompanied by the renewal fee prescribed by §334.406 of this title (relating to Fee Assessments for Certificate of Registration), and the contractor must certify that he/she has maintained [ documentation of ] the financial requirements [ assurance ] as prescribed by §334.402(2)(D) of this title [ (relating to Application for Certificate of Registration) ]. Documentation of the financial requirements must be available at any time requested by the agency.

(f)

The contractor shall reapply for the issuance of a certificate of registration as prescribed by §334.402 of this title [ (relating to Application for Certificate of Registration) ] if the certificate is not renewed earlier than one year after the expiration date of the certificate.

(g)

Upon proper completion of the certificate renewal process, the agency [ executive director ] shall issue a renewal approval letter [ certificate ] indicating the expiration date.

§334.405. Grounds for Denial of Certificate of Registration.

The agency [ executive director ] may deny a certificate of registration or request for renewal of certificate for the following grounds:

(1)-(3)

(No change.)

(4)

for other cause(s) which in the opinion of the agency [ executive director ] constitute adequate grounds for denial.

§334.406. Fee Assessments for Certificate of Registration.

The fees for certificate of registration are as follows.

(1)

The following fee schedule shall apply for the registration of underground storage tank contractors:

(A)

initial application /issuance fee -- $150 [ $50 ];

[ (B)

issuance fee -- $100;]

(B)

[ (C) ] annual renewal fee -- $75;

(C)

[ (D) ] duplicate certificate of registration -- $10;

(D)

[ (E) ] application to change certificate of registration -- $70;

(E)

[ (F) ] late renewal fee -- $25 [ - assessed in accordance with Chapter 12 of this title (relating to Payment of Fees) ].

(2)

A certificate renewal application shall be considered late when received by the agency [ executive director ] after the expiration date of the certificate, and shall be subject to the late renewal fee.

(3)

All fees addressed by this section are nonrefundable.

§334.407. Other Requirements for Certificate of Registration.

(a)

All registered contractors shall notify the agency [ executive director ] in writing within 30 days of any change which occurs during the validated registration year. Such changes shall include, but are not limited to:

(1)-(3)

(No change.)

(4)

change of authorized [ business ] representative as prescribed by §334.402(2)(B) of this subchapter (relating to Application for Certificate of Registration) ;

(5)-(7)

(No change.)

(b)

A registered UST contractor is required to maintain [ such ] financial requirements [ responsibility ] required by §334.402 of this title [ (relating to Application for Certificate of Registration) ] throughout the period that the [ such ] contractor holds a valid certificate of registration from the agency [ commission ].

(c)

An [ A ] UST contractor subject to the provisions of this subchapter employed or otherwise engaged by an [ a ] UST owner or operator (or by any other person representing to be the UST owner or operator) to conduct the installation, repair, or removal of an [ a ] UST shall comply with all applicable technical standards of Subchapter C of this chapter (relating to Technical Standards) and Chapter 313 of this title (relating to Edwards Aquifer).

(d)

Compliance with the provisions of this subchapter by a registered contractor shall not relieve such contractor from the responsibility of compliance with all applicable regulations legally promulgated by the United States Environmental Protection Agency, United States Occupational Safety and Health Administration, United States Department of Transportation, [ Texas Air Control Board, ] Texas Department of Health, State Board of Insurance (including state fire marshal), Railroad Commission of Texas, Texas Department of Agriculture, State Comptroller, Texas Department of Public Safety, Texas Natural Resource Conservation [ Water ] Commission, and other federal, state, and local governmental agencies or entities having appropriate jurisdiction.

§334.409. Revocation, Suspension, or Reinstatement of Certificate of Registration and License.

(a)

If the executive director determines good cause exists to suspend or revoke the certificate of registration of a contractor, the executive director shall request that the commission schedule a hearing before the hearing examiner or the commission. Such hearing shall be held only after proper notice has been provided to the certificate holder. The commission may suspend or revoke the certificate if the commission finds that the holder of the certificate was responsible for violating the provisions of this chapter, for falsifying any information or documents submitted to the agency [ executive director ], or for other good cause.

(b)

(No change.)

(c)

A certificate shall be revoked for a period of one year after which the holder of the certificate may reapply for reinstatement pursuant to the requirements of §334.402 of this title (relating to Application for Certificate of Registration). If a certificate is revoked a second time, the revocation shall be permanent. The holder of a certificate which has been revoked for a period of one year shall not have to meet the application requirement of §334.402(2)(E) of this title [ (relating to Application for Certificate of Registration) ].

§334.411. Procedures for Revocation, Suspension, or Reinstatement of a Certificate of Registration and License [ Type of Hearing ].

(a)

A proceeding to revoke or suspend a certification of registration of a contractor must be commenced by: [ Any hearing related to the suspension or revocation of a certificate or registration is subject to the Administrative Procedure and Texas Register Act, (Texas Civil Statutes, Article 6252-13a) ]

(1)

the executive director through the filing of a petition; or

(2)

the commission on its own motion.

(b)

If the executive director determines good cause exists to revoke or suspend a certificate of registration of a contractor, the executive director shall file a petition with the chief clerk and provide notice to the contractor. To the extent possible, the procedure required to assess administrative penalties under Chapter 70 of this title (relating to Enforcement) shall be followed to revoke or suspend a certification of registration under this subchapter.

(c)

In response to a petition, or on its own motion to revoke or suspend a certificate of registration, the commission may:

(1)

suspend a certification of registration issued under this subchapter for any period it deems reasonable and necessary under the circumstances, but typically up to one year for a first suspension, and permanent revocation for a second suspension;

(2)

place conditions on reinstatement of registration; and

(3)

issue any other orders permitted by law.

(d)

Revocation or suspension of a certificate of registration is cumulative of any other remedies available to the commission by law.

§334.412. Definitions.

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

[ (1)

Business representative -- A person (e.g., proprietor, senior partner, president, or designated representative of a company) who shall be responsible for compliance with this subchapter.]

(1)

[ (2) ] Certificate of registration -- The document issued to an underground storage tank (UST) contractor by the agency authorizing the contractor [ same ] to engage in the UST [ underground storage tank ] business in the State of Texas.

[ (3)

Commission -- The Texas Water Commission.]

(2)

[ (4) ] Critical junctures -- In the case of an installation, repair, or removal of an UST [ underground storage tank ] system, all of the following steps:

(A)

preparation of the tank bedding immediately prior to receiving the tank;

(B)

setting of the tank and the piping, including placement of any anchoring devices, backfill to the level of the tank, and strapping, if any;

(C)

connection of piping systems to the tank;

(D)

all pressure testing of the UST [ underground storage tank ], including associated piping, performed during the installation;

(E)

completion of backfill and filling of the excavation;

(F)

any time during the repair in which the piping system is connected or reconnected to the tank;

(G)

any time during the repair in which the tank or its associated piping is tested; and

(H)

any time during the removal of the tank.

(3)

[ (5) ] Engineering construction -- That construction designed by civil and mechanical engineers, as opposed to building construction which is designed by architectural engineers.

[ (6)

Executive director -- The executive director of the Texas Water Commission.]

(4)

[ (7) ] Installation -- The installation of USTs [ underground storage tanks ] and ancillary equipment, including, but not limited to, the following activities:

(A)

installation of new or previously used tanks at a new facility, and the addition or replacement of tanks at an existing facility;

(B)

installation of new or replacement piping for new or existing tanks;

(C)

addition of secondary containment equipment for new or existing tanks or piping;

(D)

addition or replacement of the following types of equipment at a new or existing UST facility:

(i)

spill and overfill prevention equipment, as required in §334.51 of this title (relating to Spill and Overfill Prevention and Control);

(ii)

equipment or devices which are permanently installed for the purpose of providing release detection or release monitoring as required for compliance with §334.50 of this title (relating to Release Detection), except:

(I)

observation wells or monitoring wells (excluding equipment and devices therein) constructed by a well driller who possesses the appropriate license required by the Texas Department of Licensing & Regulation [ Water Well Drillers Board ] pursuant to the Water Well Drillers Act (Texas Civil Statutes, Article 7621e, Water Auxiliary Laws); or

(II)

any equipment temporarily installed solely for the purpose of conducting a tank or piping tightness test, as defined in §334.2 of this title (relating to Definitions), except when a tightness test is a prescribed element of a critical juncture of an installation, repair, or removal. Temporarily in this context means the reasonable amount of time required to attach the equipment, make the tests, and remove the equipment, under the given conditions at the site;

(E)

installation or replacement of anchoring systems designed to prevent tank flotation;

(F)

installation or replacement of vent lines at new or existing UST facilities;

(G)

installation or replacement of submersible pumping systems at new or existing UST facilities; and

(H)

installation or replacement of any underground Stage I or Stage II vapor recovery systems.

[ (8)

Installer -- A person who participates in or supervises the installation, repair, or removal of underground storage tanks.]

(5)

[ (9) ] License -- The document issued to an installer or on-site supervisor authorizing same to engage in the UST [ underground storage tank ] business in the State of Texas.

(6)

[ (10) ] On-site supervisor --

(A)

A professional engineer registered to practice in the State of Texas who has met the licensing requirements of this subchapter; or

(B)

An individual with at least two years of active experience in the vocation of installation, removal, or repair of USTs [ underground storage tanks ], underground utilities, or other engineering construction in the State of Texas, and who meets the licensing requirements of this subchapter.

[ (11)

Operator -- Any person in control of, or having responsibility for, the daily operation of an underground storage tank system.]

[ (12)

Owner -- Any person who currently holds legal possession or ownership of a total or partial interest in the underground storage tank system. For the purposes of this chapter, where the actual ownership of a UST system is either uncertain, unknown, or in dispute, the fee simple owner of the surface estate where the UST is located shall be considered the UST system owner, unless the owner of the surface estate can demonstrate by appropriate documentation (deed reservation, invoice, bill of sale, etc.) or by other legally acceptable means that the UST system is owned by others. The term "owner" does not include a person who holds an interest in a UST system solely for financial security purposes unless, through foreclosure or other related actions, the holder of such security interest has taken legal possession of the UST system.]

[ (13)

Person -- An individual, trust, firm, joint-stock company, corporation, government corporation, partnership, association, state, municipality, commission, political subdivision of a state, an interstate body, a consortium, joint venture, commercial entity, or the United States government.]

(7)

[ (14) ] Removal -- The process of removing and disposing of an UST [ underground storage tank ] that is no longer in service, or the process of abandoning an UST [ underground storage tank ] in place after purging the tank of vapors and filling the vessel of the tank with a solid inert material, or the change-in-service of an [ a ] UST, as defined in §334.2 of this title [ (relating to Definitions) ].

(8)

[ (15) ] Repair -- The modification or correction of an UST [ underground storage tank ] and ancillary equipment. The term does not include:

(A)

relining an UST [ underground storage tank ] through the application of epoxy resins or similar materials;

(B)

the performance of a tightness test to ascertain the integrity of the tank, except when a tightness test is a prescribed element of a critical juncture of an installation, repair, or removal;

(C)

the maintenance and inspection of cathodic protection devices by a corrosion expert or corrosion technician;

(D)

emergency actions to halt or prevent leaks or ruptures; or

(E)

minor maintenance on ancillary aboveground equipment.

[ (16)

Underground storage tank (or UST) -- Any one of combination of underground tanks and any connecting underground pipes used to contain an accumulation of regulated substances, the volume of which, including the volume of the connecting underground pipes, is 10% or more beneath the surface of the ground.]

(9)

[ (17) ] Underground storage tank business (or UST business) -- A business whose particular field of endeavor relates to the installation, removal, or repair of USTs [ underground storage tanks ].

(10)

[ (18) ] Underground storage tank contractor (or UST contractor) -- A person or business entity that offers to undertake, represents itself as being able to undertake, or does undertake the installation, repair, or removal of an UST [ underground storage tank ].

(11)

[ (19) ] Underground utilities -- Refers to the installation of public underground water, sanitary sewer, or storm sewer construction. This does not include private underground pipe systems (water or sewer piping), power or communication cables, or natural gas lines.

§334.414. License for Installers and On-Site Supervisors.

(a)

(No change.)

(b)

After December 1, 1990, no person shall supervise the installation, removal, or repair of an underground storage tank (UST) system unless that person holds a valid license issued by the agency [ commission ] pursuant to this subchapter enabling that person to supervise the installation, repair, or removal of an UST [ underground storage tank ].

(c)

After December 1, 1990, no person shall participate in the installation, removal, or repair of an UST [ underground storage tank ] system unless:

(1)

that person holds a valid license issued by the agency [ commission ] pursuant to this subchapter enabling that person to supervise the installation, repair, or removal of an UST [ underground storage tank ]; or

(2)

(No change.)

(d)

An UST [ underground storage tank ] system may not be installed, repaired, or removed except by a duly registered UST [ underground storage tank ] contractor who either has or is an installer or an on-site supervisor who is licensed by the agency [ commission ] pursuant to this chapter at the site at all times during the critical junctures of the installation, repair, or removal.

(e)

(No change.)

§334.416. Requirements for Issuance of License A and License B.

(a)

Each applicant [ installer or on-site supervisor ] desiring to obtain a License A or License B shall submit a completed application to the agency [ commission ] pursuant to §334.417 of this title (relating to Application for License A and License B).

(b)-(c)

(No change.)

(d)

Each applicant shall have at least two years of active experience in installation, removal, or repair of underground storage tanks (USTs) , underground utilities, or other engineering construction.

(e)

Each applicant's qualifications shall meet the minimum requirements of this section, and shall be approved by the agency [ executive director ] before the applicant can take the examination required under §334.419 of this title (relating to License A and License B Examination).

(f)

Subsequent to the agency's [ executive director's ] approval of an applicant's qualifications, an applicant shall successfully complete the appropriate licensing examination.

(g)

After December 1, 1991, prior to the examination, each applicant for License A shall have completed 28 hours of training and education courses in the installation and repair of USTs [ underground storage tanks (UST) ].

(h)

After December 1, 1991, prior to the examination, each applicant for License B shall have completed 12 hours of training and education courses in the removal of USTs.

(i)

The training and education courses prescribed in subsections (g) and (h) of this section shall be approved by the agency [ executive director ] and sponsored by educational or governmental institutions, or recognized organizations including, but not limited to:

(1)-(6)

(No change.)

(7)

other nationally recognized organizations approved by the agency [ executive director ].

(j)-(k)

(No change.)

§334.417. Application for License A and License B.

(a)

An applicant for License A and B shall provide the following information:

(1)-(4)

(No change.)

(5)

after December 1, 1991, documentation [ a list and description ] of the training and education courses on USTs that the applicant has completed;

(6)

sworn statements, on forms approved by the agency [ executive director ], from at least four persons (three from clients not related by blood or marriage and one from a current or previous employer, or employer's representative), that have engaged the applicant or the applicant's employer within the previous 24 months to perform: UST installations, repairs, or removals; underground utilities; or other engineering construction. These statements shall attest to the applicant's character, knowledge of construction, and ability to supervise the construction activity. Such statements shall also include a description of the type of construction performed by the applicant; and

(7)

(No change.)

(b)

All applications for licensing shall be submitted on forms provided by the agency [ executive director ] and shall be accompanied by the $200 initial application fee .

(c)

The applicant shall take [ schedule ] a license examination within 120 days after the agency's [ executive director's ] approval of the application.

(d)

An application shall be denied [ without prejudice ] and the application [ examination ] fee shall be forfeited, if the applicant fails to take the licensing examination within 120 days after the agency [ executive director ] approves the application. An applicant who has received a denial [ without prejudice ] may reapply for a license. The agency [ executive director ] may extend the 120-day examination period upon written request by the applicant and for good cause.

§334.418. Notification of Examination.

Upon receipt of a properly completed application as required by §334.417 of this title (relating to Application for License A or License B) and the application [ examination ] fee required by §334.423 of this title (relating to Fee Assessments for License A and License B), the agency [ executive director ] shall inform the applicant within 30 days of receipt of the application as to whether the application has been approved. The agency [ executive director ] shall notify each applicant of the designated dates, times, and places of the examinations as required by §334.419 of this title (relating to License A and License B Examination).

§334.419. License A and License B Examination.

(a)

The License A and License B examinations shall each be divided into categories comprising specific underground storage tank (UST) subjects. The number of categories in the License A and License B examinations shall be determined by the agency [ executive director ].

(b)

Questions used in License A and License B examinations shall be derived from the applicable rules of this chapter and standards, instructions, and recommended practices published by organizations with expertise in various aspects of the installation, repair, or removal of USTs [ underground storage tanks ] including, but not limited to:

(1)-(6)

(No change.)

(c)

(No change.)

(d)

The agency [ executive director ] shall offer and proctor the appropriate examination at a designated time and place. The examination shall be offered with increased frequency whenever more than ten [ 10 ] persons petition the agency [ executive director ] in writing.

(e)

Within 30 days prior to a scheduled examination, an applicant may petition the agency [ executive director ] in writing requesting that an oral examination be administered. The agency [ executive director ] may consider substituting an oral examination for a written examination. An applicant petitioning for such examination must demonstrate to the agency [ executive director ] that the written examination would not provide a fair and equal test of the applicant's knowledge of UST [ underground storage tank ] installation, repair, and removal.

(f)

The agency [ executive director ] shall notify an applicant of the results of the examination within 30 days of the administration of the examination.

(g)

At any time within six months of the date the applicant is notified of the results of the examination, an applicant may personally inspect the examination in the agency's [ commission's ] office during normal business hours for the purpose of assessing the accuracy of the grading.

(h)

At any time within six months of the applicant's examination results, an applicant who does not successfully complete the examination may request in writing that the agency [ executive director ] furnish the applicant with an analysis of the applicant's performance.

(i)

An examination shall be considered successfully completed when an applicant correctly answers 70% of the questions [ on each specific UST category ] of the examination as described in subsection (a) of this section.

§334.420. Issuance of License A or License B.

(a)

After an applicant meets the requirements of §334.416 of this title (relating to Requirements for Issuance of License A or License B), the agency [ executive director ] shall issue the appropriate license to the applicant.

(b)

(No change.)

(c)

The agency [ executive director ] shall issue a wallet size card indicating the expiration date of the license.

(d)

A duplicate license to replace a lost or destroyed license shall be issued by the agency [ executive director ] upon payment of the fee required by §334.423 of this title (relating to Fee Assessments for License A and License B).

§334.421. Renewal of License.

(a)

(No change.)

(b)

The agency [ executive director ] shall notify each licensee in writing of the impending license expiration at least 60 days before the expiration. The agency [ executive director ] shall furnish application forms for license renewal.

(c)

A properly completed application for renewal shall be submitted to the agency [ executive director ] 30 days prior to expiration. The application must be accompanied by the following:

(1)

documentation of [ evidence satisfactory to demonstrate ] compliance with the continuing education requirements of this section; and

(2)

(No change.)

(d)

A properly completed application for renewal (including but not limited to proper payment of renewal fees and documentation of completion of required continuing education) shall be submitted to the agency at least 30 days prior to the expiration date of the license. [ The current license shall be valid until the executive director notifies the applicant of renewal or denial of the submitted renewal application provided a properly completed application for renewal was submitted at least 30 days prior to the expiration date of the license. ]

(1)

If the applicant has not been notified by the agency of the renewal decision by the time the current license expires, and a complete renewal application was received 30 days prior to the expiration date, then the license is considered provisionally renewed during that interim period between that expiration date and the date the agency notifies the applicant of the renewal decision;

(2)

If a complete application for renewal is not filed at least 30 days prior to the expiration date of the current license, and the agency has not processed that late renewal application by the expiration date, the current license shall expire and will not be considered provisionally renewed. The license may be renewed any time within one year of the expiration date. Services performed after expiration, but before renewal, shall be considered to have been performed without a proper license under this subchapter.

(3)

Licenses issued anytime during the one year period after the expiration date will have an expiration date of one year following the previous expiration date.

(e)

(No change.)

(f)

Upon proper completion of the license renewal process, the agency [ executive director ] shall issue a wallet size card indicating the expiration date of the license.

(g)

Continuing education requirements for renewal of licenses are as follows: [ The renewal applicant for License A shall complete at least eight hours of continuing training and education courses prior to renewal of the license. ]

(1)

License A - eight hours every two years.

(2)

License B - eight hours every two years.

(3)

License A and B - eight hours every two years for each license. Courses which are approved for both License A and B may be applied as credit for both licenses (for example: a holder of both License A and B may satisfy the requirement for both licenses by attending a course which is approved for eight hours for both licenses). Attendance at courses which are approved for only License A or License B will not be accepted as satisfying the requirement for 8 hours for both licenses.

[ (h)

The renewal applicant for License B shall complete at least eight hours of continuing training and education courses prior to the renewal of the license.]

(h)

[ (i) ] The training and educational courses required in subsection [ subsections ] (g) [ and (h) ] of this section shall be approved by the agency [ executive director ] and sponsored by educational or governmental institutions or recognized organizations including, but not limited to, the following:

(1)-(7)

(No change.)

(i)

[ j ] The renewal application shall submit a certificate of completion for the appropriate training and education courses required in subsection [ subsections ] (g) [ and (h) ] of this section. The certificate shall be dated and signed by the designated sponsor's representative.

§334.422. Grounds for Denial of License A or License B.

The agency [ executive director ] shall deny the issuance of a license or request for renewal based on the following factors, including, but not limited to:

(1)-(3)

(No change.)

(4)

when an applicant fails to pay the appropriate fee pursuant to §334.423 of this title (relating to Fee Assessments for License A and License B); [ or ]

(5)

when an applicant is identified by the Texas Guaranteed Student Loan Corporation (TGSLC) as being in default on loans guaranteed by the TGSLC, in accordance with the Texas Education Code, Chapter 57, the Texas Natural Resource Conservation Commission (TNRCC) executive director shall not renew the license unless:

(A)

the person submits to the TNRCC a certificate from the TGSLC that indicates that the person is not in default on a loan guaranteed by TGSLC; or

(B)

the person submits to the TNRCC a certificate from the TGSLC that indicates that the person has entered a repayment agreement on the defaulted loan guaranteed by TGSLC;

(6)

when an applicant is identified by the Office of the Attorney General (OAG) as being delinquent on child support payments, in accordance with the Texas Family Code, Chapter 232, the TNRCC executive director shall not renew the license unless:

(A)

the person submits to the TNRCC a certificate from the OAG that indicates that the person is not delinquent on child support payments; or

(B)

the person submits to the TNRCC a certificate from the OAG that indicates that the person has entered a child support repayment agreement with the OAG; or

(7)

[ (5) ] for other cause(s) which in the opinion of the executive director constitutes adequate ground(s) for denial.

§334.423. Fee Assessments for License A and License B.

(a)

The following fee schedule for a License A and License B shall apply to installers and on-site supervisors:

(1)

initial license application fee -- $200 [ examination fee -- $50 ];

(2)

examination fee -- $50.00 (retests only) [ initial license application fee -- $200 ];

(3)

(No change.)

(4)

late renewal fee -- $25 [ assessed in accordance with Chapter 12 of this title (relating to Payment of Fees) ];

(5)

(No change.)

(b)

(No change.)

[ (c)

An applicant taking both the License A and License B examinations on the same day will be assessed a $50 fee.]

(c)

[ (d) ] A license renewal application shall be considered late when received by the agency [ executive director ] after the expiration date of the license and shall be subject to a late renewal fee [ assessed in accordance with Chapter 12 of this title ].

(d)

All fees addressed by this section are nonrefundable.

§334.424. Other Requirements for a License A and License B.

(a)

All License A and License B installers and on-site supervisors shall notify the agency [ executive director ] in writing within 30 days of any change to the application including, but not limited to:

(1)-(3)

(No change.)

(b)

A licensed installer or on-site supervisor subject to the provisions of this subchapter that is engaged in the installation, repair, or removal of underground storage tanks (USTs) shall be required to comply with all applicable technical standards of Subchapter C of this chapter (relating to Technical Standards) and Chapter 213 [ 313 ] of this title (relating to Edwards Aquifer).

(c)

Compliance with the provisions of this subchapter by a licensed installer or on-site supervisor shall not relieve such licensee from the responsibility of compliance with all applicable regulations legally promulgated by the United States Environmental Protection Agency, United States Occupational Safety and Health Administration, United States Department of Transportation, [ Texas Air Control Board, ] Texas Department of Health, State Board of Insurance (including state fire marshal), Railroad Commission of Texas, Texas Department of Agriculture, State Comptroller, Texas Department of Public Safety, Texas Natural Resource Conservation [ Water ] Commission, and other federal, state, and local governmental agencies or entities having appropriate jurisdiction.

(d)

A licensed installer or on-site supervisor who offers to undertake, represents to undertake, or does undertake the installation, repair, or removal of an UST [ underground storage tank ] shall either be registered as an [ a ] UST contractor pursuant to this subchapter, or be employed by a registered UST contractor.

§334.426. Revocation, Suspension, or Reinstatement of a License A and License B.

(a)

If the executive director determines good cause exists to suspend or revoke the license of an installer or on-site supervisor , the executive director shall request that the commission shall schedule a hearing before the hearing examiner or the commission. Such hearing shall be held only after proper notice has been provided to the license holder. Factors upon which a license may be suspended or revoked include, but are not limited to:

(1)-(2)

(No change.)

(3)

falsification of information or documents submitted to the agency [ executive director ];

(4)-(5)

(No change.)

(b)-(c)

(No change.)

§334.428. Procedures for Revocation, Suspension, or Reinstatement of a License A and License B [ Type of Hearing ].

(a)

A proceeding to revoke or suspend the license of an installer or on-site supervisor must be commenced by: [ Any hearing related to the suspension or revocation of a License A and License B is subject to Administrative Procedure and Texas Register Act (Texas Civil Statutes, Article 6252-13a). ]

(1)

the executive director through the filing of a petition; or

(2)

the commission on its own motion.

(b)

If the executive director determines good cause exists to revoke or suspend the license of an installer or on-site supervisor, the executive director shall file a petition with the chief clerk and provide notice to the installer or on-site supervisor. To the extent possible, the procedure required to assess administrative penalties under Chapter 70 of this title (relating to Enforcement) shall be followed to revoke or suspend such a license under this subchapter.

(c)

In response to a petition, or on its own motion to revoke or suspend the license of an installer or on-site supervisor, the commission may:

(1)

suspend the license of an installer or on-site supervisor issued under this subchapter for any period it deems reasonable and necessary under the circumstances, but typically up to one year for a first suspension, and permanent revocation for a second suspension;

(2)

place conditions on reinstatement of the license; and

(3)

issue any other orders permitted by law.

(d)

Revocation or suspension of the license is cumulative of any other remedies available to the commission by law.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on May 19, 2000.

TRD-200003495

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: August 1, 2000

For further information, please call: (512) 239-4712


30 TAC §334.413, §334.429

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Natural Resource Conservation Commission or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

STATUTORY AUTHORITY

These section repeals are proposed under Texas Water Code (TWC), §5.103, which provides the commission authority to adopt any rules necessary to carry out its powers and duties under this code and other laws of this state and to adopt rules repealing any statement of general applicability that interprets law or policy; §5.105, which authorizes the commission to establish and approve all general policy of the commission by rule; and §26.011, which requires the commission to control the quality of water by rule. These section repeals are also proposed under TWC, §26.345, which provides the commission authority to develop a regulatory program and to adopt rules regarding underground storage tanks, and §26.351, which provides the commission authority to adopt rules establishing the requirements for taking corrective action in response to a release from an underground or aboveground storage tank.

These rule repeals implement TWC, Chapter 26, Subchapter I, Underground Storage Tanks.

§334.413. License for Installers and On-site Supervisors.

§334.429. Penalties Effective On or After September 1, 1995.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on May 19, 2000.

TRD-200003496

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: August 1, 2000

For further information, please call: (512) 239-4712


Subchapter J. REGISTRATION OF CORRECTIVE ACTION SPECIALISTS AND PROJECT MANAGERS FOR PRODUCT STORAGE TANK REMEDIATION PROJECTS

30 TAC §§334.452, 334.453, 334.455-334.463, 334.465-334.467

STATUTORY AUTHORITY

The amended sections are proposed under Texas Water Code (TWC), §5.103, which provides the commission authority to adopt any rules necessary to carry out its powers and duties under this code and other laws of this state and to adopt rules repealing any statement of general applicability that interprets law or policy; §5.105, which authorizes the commission to establish and approve all general policy of the commission by rule; and §26.011, which requires the commission to control the quality of water by rule. The amended sections are also proposed under TWC, §26.345, which provides the commission authority to develop a regulatory program and to adopt rules regarding underground storage tanks, §26.351, which provides the commission authority to adopt rules establishing the requirements for taking corrective action in response to a release from an underground or aboveground storage tank, and §26.454, which provides the commission authority to adopt rules for the licensing of installers and on-site supervisors and continuing education requirements for installers and on-site supervisors.

The proposed sections implement TWC, Chapter 26, Subchapter I, Underground Storage Tanks and Subchapter K, Underground Storage Tank Installers.

§334.452.Exemptions from Subchapter J.

(a)

The requirements of this subchapter do not apply to corrective action services which the party claiming the exemption can show were performed or offered to be performed at leaking petroleum storage tank (LPST) [ LPST ] sites which are:

(1)

completely exempt from regulation under §334.3(a) of this title (relating to [ Statutory ] Exemptions for Underground Storage Tanks ("USTs") and UST Systems) or §334.123 of this title (relating to [ Statutory ] Exemptions for ASTs); or

(2)

completely excluded from regulation under §334.4(a) of this title (relating to [ Commission ] Exclusions for Underground Storage Tanks ("USTs") and UST Systems) or §334.124 of this title (relating to [ Commission ] Exclusions for ASTs);

(b)

The requirements of this subchapter do not apply to corrective action specialists [ Corrective Action Specialists ] when the party claiming the exemption can show that corrective action services were completed on or prior to October 1, 1994. Any corrective action service commenced by a corrective action specialist [ Corrective Action Specialist ] on or after October 1, 1994, is subject to the requirements of this subchapter. Any corrective action service commenced by a corrective action specialist [ Corrective Action Specialist ] prior to October 1, 1994, which is still being performed on or after October 1, 1994, is subject to the requirements of this subchapter.

(c)

The requirements of this subchapter do not apply to corrective action project managers [ Corrective Action Project Managers ] when the party claiming the exemption can show that corrective action services were completed on or before January 1, 1995. Any corrective action service commenced by a corrective action project manager [ Corrective Action Project Manager ] on or after January 1, 1995, is subject to the requirements of this subchapter. Any corrective action service commenced by a corrective action project manager [ Corrective Action Project Manager ] prior to January 1, 1995, which is still being performed on or after January 1, 1995, is subject to the requirements of this subchapter.

(d)

The requirements of this subchapter do not apply to:

(1)

installation, repair, and removal of underground storage tanks (USTs) when conducted and supervised by persons or entities registered or licensed in accordance with Subchapter I of this chapter (relating to Underground Storage Tank Contractor Registration and Installer Licensing); and

(2)

the following limited activities, but only when such activities are performed as part of an UST [ underground storage tank ] permanent removal-from-service project conducted under the direct supervision of an on-site supervisor licensed to remove USTs [ underground storage tanks ] under Subchapter I of this chapter [ (relating to Underground Storage Tank Contractor Registration and Installer Licensing) ], and further subject to all appropriate requirements and standards in this subchapter, including enforcement authority:

(A)

subject to prior written agency [ TWC ] approval, excavation of contaminated soil when necessary for corrective action at the LPST site of an amount not to exceed 300 cubic yards of compacted materials (390 cubic yards of uncompacted materials) beyond the backfill unless specific prior written authorization from the agency [ TWC ] is granted for additional excavation yardage;

(B)

(No change.)

(C)

passive aeration and necessary routine tilling and sampling of the excavated materials described in subparagraph (A) of this paragraph in accordance with air program regulations [ applicable Texas Air Control Board regulations ]; and

(D)

(No change.)

(e)-(g)

(No change.)

(h)

The requirements of this subchapter do not apply to owners or operators, their direct employees, parent companies, or subsidiaries who on behalf of the owner or operator coordinate with, manage, or supervise corrective action specialists or corrective action project managers, or coordinate with the agency [ commission ], or review the corrective action reports. The tank owners or operators, their direct employees, parent companies, or subsidiaries who conduct corrective action services are subject to all provisions of this subchapter.

(i)

A [ On or after September 1, 1995, a qualified ] professional engineer, duly licensed to practice engineering [ registered as an engineer ] in the State of Texas, may become registered as a corrective action project manager [ Corrective Action Project Manager ] by submitting a signed and sealed written request to that effect to the agency [ commission ]. With said written request, said engineer shall also provide a copy of his or her certificate of registration or licensure as a professional engineer, and a written statement from the Texas [ State ] Board of [ Registration for ] Professional Engineers to the effect that the applicant is [ duly registered and ] currently duly licensed to practice engineering in the State of Texas and that there is no indication that the applicant is not qualified to perform corrective action. Except as provided in subsection (j) of this section, an [ An ] engineer who obtains registration as a corrective action project manager [ Corrective Action Project Manager ] in this manner is subject only to the examination requirements, continuing education requirements, fees, and disciplinary procedures adopted by the Texas [ State ] Board of [ Registration for ] Professional Engineers, [ except as provided by §334.11(c)(3)(A) of this title (relating to Enforcement), ] and as such is generally exempt from the requirements in this subchapter which apply to corrective action project managers [ Corrective Action Project Managers ] in the areas of examination, continuing education, fees and disciplinary procedures[ , except as provided by §334.11(c)(3)(A) of this title (relating to Enforcement) ].

(j)

A professional engineer who is currently duly licensed with the Texas Board of Professional Engineers, and who is also properly registered as a "corrective action project manager" in accordance with the applicable requirements of this subchapter shall be subject only to the disciplinary procedures adopted by the Texas Board of Professional Engineers relative to any violations of the agency's requirements for corrective action activities which involve the "practice of engineering", as defined in the Texas Engineering Practice Act, Texas Civil Statutes, Article 3271a, as amended, or which meet the definition of "engineering" or "professional engineering" or "professional engineering services" in the rules of the Texas Board of Professional Engineers (22 TAC §§131.1 et seq.), or which are otherwise within the statutory or regulatory jurisdiction of the Texas Board of Professional Engineers. A duly licensed professional engineer who is responsible for any other violations of agency requirements shall remain subject to all other applicable enforcement actions, sanctions, and penalties by the agency, as authorized under applicable law.

(1)

When the agency determines that an alleged violation of the provisions of this chapter related to corrective action activities has been made by a registered corrective action project manager who is also duly licensed as a professional engineer by the Texas Board of Professional Engineers, the agency shall refer the matter to the Texas Board of Professional Engineers for appropriate disciplinary actions, enforcement, sanctions, or penalties, as applicable.

(2)

If the Texas Board of Professional Engineers does not pursue appropriate disciplinary or enforcement actions due to a lack of statutory or regulatory authority or jurisdiction, or for any other reason, the agency shall reserve the authority to pursue all appropriate enforcement actions, sanctions, and or penalties, in accordance with applicable law and rules.

§334.453.General Requirements and Prohibitions.

(a)

Requirements. Except as otherwise provided by this subchapter, on or after the effective date of these rules:

(1)

all corrective action services covered by this subchapter must be [ offered to be ] performed by[ , and performed by ] or be coordinated by a [ natural ] person or entity registered as a corrective action specialist; and

(2)

all corrective action services covered by this subchapter must be supervised by a [ natural ] person registered as a corrective action project manager;

(3)

(No change.)

(4)

all reports submitted to the agency [ commission ] pertaining to corrective action covered by this subchapter must possess the signature of an authorized [ business ] representative of the corrective action specialist and the corrective action project manager, and the corrective action registration numbers for the corrective action specialist and corrective action project manager;

(5)

any person or entity performing corrective action services as a corrective action specialist at an leaking petroleum storage tank (LPST) [ LPST ] site must prominently display their corrective action registration number and the executive director's LPST number for the site on all LPST bids, proposals, offers, and drawings.

(b)

Prohibitions.

(1)

Except as otherwise provided by this subchapter, on or after the effective date of these rules:

(A)

no person shall [ offer to ] perform any corrective action services [ service ] covered by this subchapter unless the person performing [ offering to perform ] the service:

(i)-(ii)

(No change.)

(B)-(D)

(No change.)

(E)

no person or entity who submits the following types of information to the executive director shall submit information which they know or reasonably should have known to be false or deceptive:

(i)

(No change.)

(ii)

an application for reimbursement submitted to the executive director under Subchapter H of this chapter (relating to [ Interim ] Reimbursement Program);

(iii)

(No change.)

(iv)

an affidavit to the executive director regarding notice of corrective action [ Notice of Corrective Action ] under §334.455 of the title [ (relating to Notice to Owner or Operator) ].

(2)

Except as otherwise provided by this subchapter, on or after the effective date of these rules:

(A)-(B)

(No change.)

(C)

no person shall perform, direct, allow, or cause any corrective action service covered by this subchapter to be performed unless the corrective action service is being supervised by a [ natural ] person duly registered under this subchapter as a corrective action project manager;

(D)

no person or entity offering to perform or performing corrective action services as a corrective action specialist shall represent that they are registered under this subchapter or represent that any corrective action services they perform are subject to reimbursement by the agency [ commission ] unless the person or entity making such representation possesses a valid certificate of registration issued under this subchapter;

(E)

no person or entity who is a registered underground storage tank [ UST ] contractor or a licensed installer or on-site supervisor pursuant to Subchapter I of this chapter (relating to Underground Storage Tank Contractor Registration and Installer Licensing) shall represent that they are authorized to perform any corrective action service covered by this subchapter except as provided under §334.452(d) of this title (relating to (Exemptions from Subchapter J) unless that person or entity is registered as a corrective action specialist pursuant to this subchapter.

(c)

Any violation of this section or any other requirements of this subchapter shall be subject to enforcement including administrative, civil, and/or criminal penalties as provided in Chapter 70 of this title (relating to Enforcement) and Texas Water Code, Chapter 7 [ §334.11 of this title (relating to Enforcement) ].

(d)

Corrective action specialists [ Action Specialists ] and/or corrective action project managers [ Corrective Action Project Managers ] may be held responsible and subject to enforcement including administrative, civil, and/or criminal penalties for any violation of this section or any other requirements of this subchapter by them or by any other person performing corrective action services under their supervision or coordination.

(e)

Any penalty assessed or order issued under this section is cumulative of any other remedies available to the agency [ commission ].

§334.455.Notice to Owner or Operator.

(a)

A notice of corrective action [ Notice of Corrective Action ] must be provided by the corrective action specialist [ Corrective Action Specialist ], in accordance with this section for any corrective action services which are commenced on or after October 1, 1994.

(b)

(No change.)

(c)

The notice must contain the following:

(1)-(4)

(No change.)

(5)

a statement signed by the owner or operator and by a representative of the corrective action specialist which indicates both parties are aware of the registration requirements for corrective action specialists and corrective action project managers set forth in this subchapter, and that reimbursement will be in accordance with the provisions of Subchapter H of this chapter (relating to [ Interim ] Reimbursement Program) and in accordance with the published agency [ TWC ] reimbursable cost guidelines.

(d)-(e)

(No change.)

(f)

Any bid, proposal, or offer that indicates a company or person is a corrective action specialist must reproduce in its entirety the following disclaimer. The following disclaimer must be a part of any notice required by this section.

(1)

The registration of a corrective action specialist with [ by ] the agency [ Texas Water Commission ] does not constitute endorsement, licensing, or promotion of any corrective action specialist. Registration does not imply that the agency [ Texas Water Commission ] guarantees the quality of the work performed or that the cost of the work may be reimbursed.

(2)

Reimbursement for approved work is subject to the eligibility requirements set forth in Subchapter H of this chapter [ (relating to Interim Reimbursement Program) ] and the agency's [ Texas Water Commission's ] reimbursable cost guidelines. Charges exceeding the amount determined as reimbursable for that particular work item shall not be reimbursed by the agency [ commission ].

§334.456.Application for Certificate of Registration for Corrective Action Specialist.

As determined by the executive director, an application for registration as a corrective action specialist [ Corrective Action Specialist ] shall meet the following requirements.

(1)

(No change.)

(2)

The application shall include at a minimum:

(A)

the applicant's business name, business mailing address and telephone number, and permanent physical address;

(B)

an authorized [ the business ] representative's name and title , when the applicant is not an actual individual ;

(C)

the address, telephone number, and authorized [ business ] representative for any branch office that will be operating under the issued certificate of registration;

(D)

documentation of [ financial assurance, including ]:

(i)

proof [ evidence ] of comprehensive general liability insurance designating the Texas Natural Resource Conservation Commission [ Texas Water Commission, Petroleum Storage Tank Division, ] as the certificate holder in an amount of not less than $1 million and of a type approved by the executive director; and

(ii)

one of the following:

(I)

a financial statement (balance sheet) prepared in conformity with accounting principles as defined by the American Institute of Public Accountants, indicating an applicant's current (not more than 12 months old) net worth of not less than $25,000 that is signed by the applicant's [ business ] representative; or

(II)

a letter from a certified public accountant, who is not employed by the applicant or does not receive payment from the applicant on a regular basis, verifying the applicant's net worth to be not less than $25,000 [ other evidence of financial assurance which is determined by the executive director to be sufficient for the purposes of this section ];

(E)

documentation of quality of performance including one of the following:

(i)

sworn statements, on forms approved by the executive director, from at least three references, not related by blood or marriage, for whom the applicant performed corrective action services, within the immediately preceding 24 months. Applicable corrective action experience shall not be limited to experience gained at leaking petroleum storage tank [ LPST ] sites, but shall also include corrective actions conducted pursuant to the Resource Conservation and Recovery Act [ (RCRA) ]; the Comprehensive Environmental Response, Compensation, and Liability Act [ (CERCLA) ]; the Oil Spill Prevention and Response Act [ (OSPRA) ]; the Texas Water Code, Chapter 26; or any corrective action conducted under the auspices of the Texas Water Commission, the General Land Office, the Texas Railroad Commission, or the United States Environmental Protection Agency. These statements shall also attest to the applicant's job reliability and the client's satisfaction of performance. Such statements shall also include a description of the type of corrective action services work including engineering, geology, or hydrogeology which was performed by the applicant and the physical address where the activity occurred; or

(ii)

a written explanation indicating good cause as determined by the executive director for not providing the sworn statements required in clause (i) of this subparagraph. For the purposes of this subsection, an applicant's experience under the supervision of a registered corrective action project manager may be sufficient documentation of quality of performance if the executive director determines that the applicant had substantial involvement in the decision-making process during the performance of the work. The written explanation shall include a detailed description of three case histories of corrective action services performed by the applicant during the previous 24 months . [ ; or ]

[ (iii)

other documentation of quality of performance which is determined by the executive director to be sufficient, pursuant to this section. ]

(3)

The applicant shall submit a [ notarized, ] completed application that contains a sworn statement from the applicant attesting to the accuracy of the information provided to the executive director.

(4)

(No change.)

§334.457.Application for Certificate of Registration for Corrective Action Project Manager.

An application for registration as a corrective action project manager [ Corrective Action Project Manager ] shall meet the following requirements : [ . ]

(1)

(No change.)

(2)

Application for certificate of registration shall include at a minimum:

(A)

(No change.)

(B)

documentation of quality of performance including one of the following:

(i)

sworn statements, on forms approved by the executive director, from at least three references, not related by blood or marriage, for whom the applicant has performed corrective action services, within the immediately preceding 24 months. Applicable corrective action experience shall not be limited to experience gained at leaking petroleum storage tank [ LPST ] sites, but shall also include relevant professional experience derived while working in the oil and gas industry, and corrective actions conducted pursuant to the Resource Conservation and Recovery Act [ (RCRA) ]; the Comprehensive Environmental Response, Compensation, and Liability Act [ (CERCLA) ]; the Oil Spill Prevention and Response Act [ (OSPRA) ]; the Texas Water Code, Chapter 26; or any corrective action conducted under the auspices of the Texas Water Commission, the General Land Office, the Texas Railroad Commission, or the United States Environmental Protection Agency. These statements shall also attest to the applicant's job reliability and the client's satisfaction of performance. Such statements shall also include a description of the type of corrective action services including engineering, geology, or hydrogeology which was performed by the applicant and the physical address where the activity occurred; or

(ii)

(No change.)

[ (iii)

other documentation of quality of performance which is determined by the executive director to be sufficient, pursuant to this section. ]

(3)

At the time of applying for registration as a corrective action project manager [ Corrective Action Project Manager ], the applicant shall qualify under either option in subparagraph (A) or (B) of this paragraph:

(A)

two years of experience in corrective action services, as described in paragraph (2)(B)(i) of this subsection [ paragraph ], and passage of a registration examination prepared and administered by the agency [ commission ] or an entity authorized by the agency [ commission ], and a bachelor's degree from an accredited college or university in a physical science, natural science, biological science, environmental science, engineering, applied geography, or in a subject directly relevant to the environmental field which is technical in focus. (For each degree relied upon, the applicant shall include with the registration application an original official transcript from the college or university where the degree was taken.)

(i)

a bachelor's degree from an accredited college or university in a physical science, natural science, biological science, environmental science, engineering, applied geography, or in a subject directly relevant to the environmental field which is technical in focus (for each degree relied upon, the applicant shall provide with the registration application an original official transcript from the college or university where the degree was taken); or

(ii)

current license as a professional engineer in Texas. The registration examination requirement is waived for qualified professional engineers who are currently duly licensed to practice engineering in the State of Texas, as provided in §334.452(i) of this title (relating to Exemptions From Subchapter J);

(B)

four years of experience in corrective action services, as described in paragraph (2)(B)(i) of this subsection, and the passage of a registration examination prepared and administered by the agency [ commission ] or an entity authorized by the agency [ commission ].

(4)

The applicant shall submit a [ notarized, ] completed application that contains a sworn statement from the applicant attesting to the accuracy of the information provided to the executive director.

(5)

(No change.)

(6)

The applicant must take a registration examination within 120 days after the agency's approval of the application. Failure to take the examination within the allowed time will result in denial of the application. An applicant who has received a denial may reapply for a registration.

§334.458.Review and Issuance of Certificates of Registration.

(a)

An application for a certificate of registration for a corrective action specialist is [ administratively ] complete when the executive director has received all the information required by §334.456 of this title (relating to Application for Certificate of Registration for Corrective Action Specialist). An application for a certificate of registration for a corrective action project manager is [ administratively ] complete when the executive director has received all the information required by §334.457 of this title (relating to Application for Certificate of Registration for Corrective Action Project Manager).

(b)

Upon receipt of an application, the executive director shall review the application for [ administrative ] completeness. If it is determined [ he determines ] that the application is not [ administratively ] complete, [ he shall inform ] the applicant shall be informed in writing within 45 days of any deficiency and informed [ inform the applicant ] what additional information is required for processing. The applicant shall have 30 days from the date noted on the executive director's written comments to submit the requested additional information. If the executive director does not receive all of the information required within the 30 days prescribed, review will cease [ he shall cease his review ] and [ return ] the application will be returned to the applicant [ without prejudice ]. An applicant whose application has been returned under this subsection may reapply for a certificate of registration at any time by resubmitting a new application in accordance with §334.457 of this title .

(c)

The executive director shall issue the applicant a certificate of registration within 45 days if:

(1)

the [ his ] application is [ administratively ] complete including payment of the applicable fees ; and

(2)

the applicant meets the education and/or experience criteria required by §334.456 of this title [ (relating to Application for Certificate of Registration for Corrective Action Specialist) ] or §334.457 of this title [ (relating to Application for Certificate of Registration for Corrective Action Project Manager) ], as applicable.

(d)

A certificate of registration issued under this subchapter is not transferable, and must be renewed [ annually ] as prescribed in §334.460 of this title (relating to Renewal of Certificate of Registration for Corrective Action Specialist and Registration for Corrective Action Project Manager).

§334.459.Continuing Education Requirements for Corrective Action Project Managers.

(a)

Except as provided with regard to professional engineers in 334.452(i) of this title (relating to Exemptions From Subchapter J), a [ A ] person must complete a minimum of 32 [ 16 ] hours of continuing education instruction [ in order ] to renew the registration [ each time it is due for renewal ]. (Sixteen hours of continuing education instruction hours are required for the annual renewals during the designated period as prescribed in §334.460 of this title (relating to Renewal of Certificate of Registration for Corrective Action Specialist and Registration for Corrective Action Project Manager)). To [ In order to ] count towards the required [ 16 ] hours, each hour of instruction used must have been completed prior to [ within the 12 months immediately preceding ] the date on which a completed application for renewal is submitted [ he submits an administratively complete application for renewal ]. A single continuing education course may not be used for more than one renewal. "Hours of instruction" as used in this section refers to actual time spent in instruction, rather that credits assigned to a course.

(b)

To [ In order to ] be counted toward the continuing education requirement, each hour of instruction must be in:

(1)

environmental contamination assessment or remediation at a leaking petroleum storage tank (LPST) [ an LPST ] site or other types of relevant sites;

(2)-(6)

(No change.)

(c)-(d)

(No change.)

(e)

Courses taken to fulfill Occupational Safety and Health Agency requirements will not count towards the required continuing education instruction [ 16 ] hours.

(f)

Corrective action project managers shall submit to the executive director certificates [ a certificate ] of completion for the training and education courses required by this section [ each year ] with the application for renewal of registration. The certificates [ certificate ] of completion shall be dated and signed by the designated provider.

§334.460.Renewal of Certificate of Registration for Corrective Action Specialist and Corrective Action Project Manager.

(a)

As of the effective date of this rule, the agency will transition to renewal of certificates of registration on a two-year basis. For one year after the effective date of this subsection, existing certificates with even registration numbers will be renewed for one year and certificates with odd registration numbers will be renewed for two years. Following this designated period, each [ Each ] certificate of registration issued under this subchapter shall expire two years [ one year ] from the original date of issuance or two years [ one year ] from the last date of expiration [ renewal ].

(b)-(c)

(No change.)

(d)

The renewal application must be accompanied by all information needed for the application to be complete, including the required financial documentation, and any other information necessary for the agency to complete the renewal process. [ An application for renewal of registration for a Corrective Action Specialist is administratively complete when the executive director has received an application for renewal on a form provided by the executive director (which has been completed in a manner acceptable to the executive director); documentation of financial assurance as required by §334.456(2)(D) of this title (relating to Application for Certificate of Registration for Corrective Action Specialist), except the documentation of quality of performance required under §334.456(2)(E) of this title (relating to Application for Certificate of Registration for Corrective Action Specialist); and payment for applicable fees as provided by §334.467 of this title (relating to Fee Assessments for Certificates of Registration). An application for renewal of registration for a Corrective Action Project Manager is administratively complete when the executive director has received an application for renewal on a form provided by the executive director, completed in a manner acceptable to the executive director, and documentation of completion of continuing education requirements for the applicant Corrective Action Project Manager as required under §334.459 of this title (relating to Continuing Education for Project Managers), and payment of applicable fees as provided by §334.467 of this title (relating to Fee Assessments for Certificates of Registration). If the applicant has already submitted all necessary information to the executive director in a previous administratively complete application, the information need not be duplicated by the applicant in order for the renewal application to be administratively complete; provided that any applicable information regarding financial assurance, continuing education or any other information for previous applications must be current to the date of the filing of the current renewal application in order for the application to be administratively complete. A properly completed application for renewal shall be submitted to the executive director 30 days prior to the expiration date. The renewal application must be accompanied by all information needed for the application to be administratively complete, including the required applicable information regarding financial assurance, or any other information necessary for the executive director to complete the renewal process. ]

(1)

An application for renewal of registration for a corrective action specialist is considered complete when the executive director has received an application for renewal on a form provided by the executive director, which has been completed in a manner acceptable to the executive director; certification that the company has continued to meet the financial requirements of §334.456(2)(D) of this title (relating to Application for Certificate of Registration for Corrective Action Specialist); and payment for applicable fees as provided by §334.467 of this title (relating to Fee Assessments for Certificates of Registration).

(2)

An application for renewal of registration for a corrective action project manager is complete when the executive director has received an application for renewal on a form provided by the executive director, completed in a manner acceptable to the executive director; certificates of completion of continuing education requirements for the corrective action project manager as required under §334.459 of this title (relating to Continuing Education for Project Managers); and payment of applicable fees as provided by §334.467 of this title.

(e)

(No change.)

(f)

A properly completed application for renewal (including but not limited to proper payment of renewal fees, certification of adequate financial requirements as prescribed in §334.456(D)(2)(i) of this title, and documentation of completion of required continuing education) shall be submitted to the executive director at least 30 days prior to the expiration date of the certification of registration. [ If an administratively complete application for renewal is submitted by the renewal applicant 30 days prior to the expiration date of the current registration, the current registration shall remain valid until the executive director issues the renewed certificate. If an administratively complete application for renewal is not filed at least 30 days prior to the expiration date of the current registration and the executive director has not processed the renewal application, the current registration shall expire on its original expiration date, but the registration may be renewed any time within one year of the expiration date. Corrective action services performed after expiration, but before renewal, shall be considered to have been performed without proper registration under this subchapter. ]

(1)

If the applicant has not been notified by the executive director of the renewal decision by the time the certification of registration expires, and a complete renewal application was received by the deadline given above, then the certification of registration is considered provisionally renewed during that interim period between that expiration date and the date the executive director notifies the applicant of the renewal decision.

(2)

If a complete application for renewal is not filed at least 30 days prior to the expiration date of the current registration and the executive director has not processed the renewal application, the current registration shall expire and will not be considered provisionally renewed. The registration may be renewed within 60 days of the expiration date. Corrective action services performed after expiration, but before renewal, shall be considered to have been performed without a proper registration under this subchapter.

(g)

If a corrective action specialist has not met all requirements [ does not apply ] for renewal of [ his ] registration within 30 days [ one year ] from the expiration date, [ date his previous registration expires, he must submit ] all information required by §334.456 of this title [ (relating to Registration of Corrective Action Specialist) ] must be resubmitted . If a corrective action project manager has not met all requirements [ does not apply ] for renewal of [ his ] registration within 30 days [ one year ] from the expiration date [ date his previous registration expires, he must submit ] all information required by §334.457 of this title (relating to Registration of Corrective Action Project Manager) must be resubmitted .

(h)

Upon proper completion of the certificate renewal process, the executive director shall issue a documentation of approval [ certificate of registration ] indicating the new expiration date.

§334.461.Denial of Certificate of Registration.

The executive director may deny a certificate of registration or request for renewal of certificate upon the following reasons, including, but not limited to:

(1)

when an applicant registering or renewing registration as a corrective action specialist or corrective action project manager fails to timely and completely submit the information and fees required by this subchapter for the registration or renewal being sought [ he is seeking ], the application may be denied [ without prejudice ];

(2)

when the executive director determines that an applicant has submitted information which he knows or reasonably should have known to be false or deceptive, whether the information is on:

(A)

(No change.)

(B)

an application for reimbursement submitted to the executive director under Subchapter H of this chapter (relating to [ Interim ] Reimbursement Program);

(C)

any report submitted to the executive director in the course of performing corrective action on an leaking petroleum storage tank [ LPST ] site; or

(D)

(No change.)

(3)-(4)

(No change.)

(5)

when the applicant has not performed corrective action services in accordance with acceptable industry practices and standards; [ or ]

(6)

when an applicant is identified by the Texas Guaranteed Student Loan Corporation (TGSLC) as being in default on loans guaranteed by the TGSLC, in accordance with the Texas Education Code, Chapter 57, the Texas Natural Resource Conservation Commission (TNRCC) executive director shall not renew the license unless:

(A)

the person submits to the TNRCC a certificate from the TGSLC that indicates that the person is not in default on a loan guaranteed by TGSLC; or

(B)

the person submits to the TNRCC a certificate from the TGSLC that indicates that the person has entered a repayment agreement on the defaulted loan guaranteed by TGSLC;

(7)

when an applicant is identified by the Office of the Attorney General (OAG) as being delinquent on child support payments, in accordance with the Texas Family Code, Chapter 232, the TNRCC executive director shall not renew the license unless:

(A)

the person submits to the TNRCC a certificate from the OAG that indicates that the person is not delinquent on child support payments; or

(B)

the person submits to the TNRCC a certificate from the OAG that indicates that the person has entered a child support repayment agreement with the OAG; or

(8)

[ (6) ] for any other cause which in the opinion of the executive director constitutes reasonable grounds for denial.

§334.462.Other Requirements.

(a)

All registered corrective action specialists shall notify the executive director in writing within 30 days of any change which occurs during the validated year. Such changes shall include, but are not limited to:

(1)-(3)

(No change.)

(4)

change of authorized [ business ] representative as described in §334.456(2)(B) of this title (relating to Application for Certificate of Registration for Corrective Action Specialist) ;

(5)-(7)

(No change.)

(b)

A registered corrective action specialist is required to maintain such financial information [ responsibility ] required by §334.456(2)(D) of this title (relating to Application for Certificate of Registration for Corrective Action Specialist) throughout the period during which that [ such ] person performs activities which require registration as a corrective action specialist under this subchapter.

(c)

Except as provided with regard to professional engineers in 334.452(i) of this title (relating to Exemptions From Subchapter J), a [ A ] corrective action project manager is required to complete the [ 16 hours of ] continuing education requirement as provided by §334.459 of this title (relating to Continuing Education for Corrective Action Project Managers).

(d)

Compliance with the provisions of this subchapter by any person shall not relieve such person from the responsibility of compliance with all applicable regulations legally promulgated by the United States Environmental Protection Agency, United States Occupational Safety and Health Administration, United States Department of Transportation, [ Texas Air Control Board, ] Texas Department of Health, State Board of Insurance, General Land Office, Texas Commission on Fire Protection, the state fire marshal, Railroad Commission of Texas, Texas Department of Agriculture, State Comptroller [ state comptroller ], Texas Department of Public Safety, Texas Natural Resource Conservation [ Water ] Commission, and other federal, state, and local governmental agencies or entities having appropriate jurisdiction.

§334.463.Grounds for Revocation or Suspension of Certificate of Registration.

(a)

The commission may revoke or suspend the certificate of registration of a corrective action specialist for reasons including, but not limited to:

(1)

when a corrective action specialist submits information to the executive director which the corrective action specialist [ he ] knows or reasonably should have known to be false or deceptive, whether the information is on:

(A)

an application for registration or renewal submitted to the executive director under this subchapter; [ or ]

(B)

an application for reimbursement submitted to the executive director under Subchapter H of this chapter (relating to [ Interim ] Reimbursement Program);

(C)

any report submitted to the executive director in the course of performing corrective action on an leaking petroleum storage tank (LPST) [ LPST ] site; [ or ]

(D)

an affidavit to the executive director regarding notice of corrective action under §334.455 of this [ the ] title (relating to Notice to Owner or Operator); or

(E)

any other report or document filed with the agency [ commission ] or any other governmental agency having applicable jurisdiction;

(2)

(No change.)

(3)

when a corrective action specialist or a person performing corrective action services under the [ his ] supervision or coordination of a corrective action specialist has performed corrective action or disposed of soils, tank systems, wastes, or other materials generated by corrective action in a manner prohibited by applicable state, local, or federal laws; [ or ]

(4)

(No change.)

(5)

when a corrective action specialist , or a person performing corrective action services under the [ his ] supervision or coordination of a corrective action specialist, violates any requirement or prohibition of this subchapter; or

(6)

(No change.)

(b)

The commission may revoke or suspend the certificate of registration of a corrective action project manager for reasons including, but not limited to:

(1)

when a corrective action project manager submits information to the executive director which the corrective action project manager [ he ] knows or reasonably should have known to be false or deceptive, whether the information is on:

(A)

an application for registration or renewal submitted to the executive director under this subchapter; [ or ]

(B)

an application for reimbursement submitted to the executive director under Subchapter H of this chapter [ (relating to Interim Reimbursement Program) ];

(C)

any report submitted to the executive director in the course of performing corrective action on an LPST site; [ or ]

(D)

an affidavit to the executive director regarding notice of corrective action under §334.455 of this [ the ] title [ (relating to Notice to Owner or Operator) ]; or

(E)

any other report or document filed with the agency [ commission ] or any other governmental agency having applicable jurisdiction;

(2)

when a corrective action project manager , or a person performing corrective action services under the [ his ] supervision of a corrective action project manager, has performed corrective action or disposed of soils, tank systems, wastes, or other materials generated by corrective action in a manner prohibited by applicable state, local, or federal laws; [ or ]

(3)

when a corrective action project manager , or a person performing corrective action services under the [ his ] supervision or coordination of a corrective action project manager, violates any requirement or prohibition of this subchapter; or

(4)

for any other cause which in the opinion of the agency [ commission ] constitutes reasonable grounds for suspension or revocation.

§334.465.Procedures for Revocation or Suspension of a Certificate of Registration.

(a)

(No change.)

(b)

If the executive director determines that good cause exists to revoke or suspend a certificate of registration of a corrective action specialist or a corrective action project manager, the executive director shall file a petition with the chief clerk and provide notice to the corrective action specialist or corrective action project manager. To the extent possible, the procedure required to assess administrative penalties under Chapter 70 [ 337 ] of this title (relating to Enforcement) shall be followed to revoke or suspend a certification of registration under this subchapter.

(c)

In response to a petition, or on its own motion to revoke or suspend a certificate of registration, the commission may:

(1)

suspend a certification of registration issued under this subchapter for any period it deems reasonable and necessary under the circumstances, but typically up to one year [ 90 days for a first suspension, six months ] for a first [ second ] suspension, and permanent revocation for a second [ third ] suspension;

(2)-(3)

(No change.)

(d)

Revocation or suspension of a certificate of registration is cumulative of any other remedies available to the agency [ commission ] by law.

§334.466.Reinstatement of a Certificate of Registration.

(a)

A certificate of registration which has not expired during the period that the holder of the certificate is under suspension shall be reinstated upon termination of the suspension period. The agency [ executive director ] shall notify the certificate holder of the registration's reinstatement at least ten [ 10 ] days prior the expiration of the suspension period.

(b)

(No change.)

(c)

The holder of a certificate , including a professional engineer, that has been revoked by the agency [ commission ] may [ must ] file a new application for registration under this subchapter following the period of revocation . A corrective action project manager whose certificate of registration is revoked will be subject to the same continuing education requirements as a new registrant under §334.457 of this title [ (relating to Application for Certificate of Registration as Corrective Action Project Manager) ] at the time a new application is filed.

§334.467.Fee Assessments for Certificates of Registration.

(a)

The following fee schedule shall apply to the registration of corrective action specialists [ Corrective Action Specialists on or after September 1, 1995 ]:

(1)

initial application fee - $400 [ $200 ];

(2)

[ annual ] renewal fee : [ - $175; ]

(A)

one-year renewal - $175;

(B)

two-year renewal - $350;

(3)

late renewal fee [ - assessed in accordance with Chapter 12 of this title (relating to Payment of Fees) ] : [ ; ]

(A)

one-year renewal - $25;

(B)

two-year renewal - $50;

(4)-(5)

(No change.)

(b)

The following fee schedule shall apply to the registration of corrective action project [ Corrective Action Project ] managers , except qualified professional engineers who are currently duly licensed to practice engineering in the State of Texas, [ registered professional engineers ] as provided in §334.452(i) of this title (relating to Exemptions From Subchapter J):

(1)

initial application fee - $250, includes the initial $50 examination fee [ $100 ];

(2)

examination fee - $50 (required for retakes );

(3)

[ annual ] renewal fee : [ - $75; ]

(A)

one-year renewal - $75;

(B)

two-year renewal - $150;

(4)

late renewal fee : [ - assessed in accordance with Chapter 12 of this title; ]

(A)

one-year renewal - $25;

(B)

two-year renewal - $50;

(5)

(No change.)

(c)

An application for renewal shall be considered late when received by the agency [ executive director ] after the expiration date of the certificate and shall be subject to the late renewal fee.

(d)

(No change.)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on May 19, 2000.

TRD-200003497

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: August 1, 2000

For further information, please call: (512) 239-4712


Subchapter K. STORAGE, TREATMENT, AND REUSE PROCEDURES FOR PETROLEUM-SUBSTANCE CONTAMINATED SOIL

30 TAC §§334.481, 334.482, 334.484-334.488, 334.490, 334.492-334.497, 334.499-334.504, 334.506-334.508

STATUTORY AUTHORITY

The amended sections are proposed under Texas Water Code (TWC), §5.103, which provides the commission authority to adopt any rules necessary to carry out its powers and duties under this code and other laws of this state and to adopt rules repealing any statement of general applicability that interprets law or policy; §5.105, which authorizes the commission to establish and approve all general policy of the commission by rule; and §26.011, which requires the commission to control the quality of water by rule. The amended sections are also proposed under TWC, §26.345, which provides the commission authority to develop a regulatory program and to adopt rules regarding underground storage tanks, and §26.351, which provides the commission authority to adopt rules establishing the requirements for taking corrective action in response to a release from an underground or aboveground storage tank.

The proposed sections implement TWC, Chapter 26, Subchapter I, Underground Storage Tanks and Subchapter K, Underground Storage Tank Installers.

§334.481.Definitions.

Except as provided in this subchapter, the following words and terms, when used in this subchapter, shall have the meanings prescribed in §334.2 of this title (relating to Definitions), unless the word or term is redefined in this subchapter or unless the context clearly indicates otherwise. Words used in more than one subchapter are defined in Subchapter A of this chapter (relating to General Provisions). Words widely used in more than one chapter are defined in Chapter 3 of this title (relating to Definitions).

[ (1)

Aboveground storage tank - A nonvehicular device (including any associated piping) that is made of nonearthen materials: located on or above the surface of the ground, or on or above the surface of the floor of a structure below ground, such as a mineworking, basement, or vault; and designed to contain an accumulation of petroleum products. ]

(1)

[ (2) ] Active life - The period from the initial receipt of waste at the facility until the executive director receives certification of final closure.

(2)

[ (3) ] Active portion - That portion of a facility where treatment, or storage operations are being or have been conducted and which is not a closed portion. (See also "closed portion" and "inactive portion.")

[ (4)

Activities associated with the exploration, development, and production of oil or gas or geothermal resources - Activities associated with:]

[ (A)

the drilling of exploratory wells, oil wells, gas wells, or geothermal resource wells;]

[ (B)

the production of oil or gas or geothermal resources, including:]

[ (i)

activities associated with the drilling of injection water source wells that penetrate the base of usable quality water;]

[ (ii)

activities associated with the drilling of cathodic protection holes associated with the cathodic protection of wells and pipelines subject to the jurisdiction of the Texas Railroad Commission to regulate the production of oil or gas or geothermal resources;]

[ (iii)

activities associated with gasoline plants, natural gas or natural gas liquids processing plants, pressure maintenance plants, or repressurizing plants;]

[ (iv)

activities associated with any underground natural gas storage facility, provided the terms "natural gas" and "storage facility" shall have the meanings set out in the Texas Natural Resources Code, §91.173;]

[ (v)

activities associated with any underground hydrocarbon storage facility, provided the terms "hydrocarbons" and "underground hydrocarbon storage facility" shall have the meanings set out in the Texas Natural Resources Code,§91.173; and]

[ (vi)

activities associated with the storage, handling, reclamation, gathering, transportation, or distribution of oil or gas prior to the refining of such oil or prior to the use of such gas in any manufacturing process or as a residential or industrial fuel;]

[ (C)

the operation, abandonment, and proper plugging of wells subject to the jurisdiction of the Texas Railroad Commission to regulate the exploration, development, and production of oil or gas or geothermal resources; and]

[ (D)

the discharge, storage, handling, transportation, reclamation, or disposal of waste or any other substance or material associated with any activity listed in subparagraphs (A)-(C) of this paragraph, except for waste generated in connection with activities associated with gasoline plants, natural gas or natural gas liquids processing plants, pressure maintenance plants, or repressurizing plants if that waste is a hazardous waste as defined by the administrator of the United State Environmental Protection Agency pursuant to the Federal Solid Waste Disposal Act, as amended (42 United State Code, §6901 et seq.)]

[ (5)

Active geologic processes - Any natural process which alters the surface and/or subsurface of the earth, including, but not limited to, erosion (including shoreline erosion along the coast), submergence, subsidence, faulting, karst formation, flooding in alluvial flood wash zones, meandering river bank cutting, and earthquakes. ]

[ (6)

Application - Commission forms or other commission-approved writing on which an executive director registration is requested. ]

(3)

[ (7) ] Aquifer - A geologic formation, group of formations, or part of a formation capable of yielding groundwater to wells or springs.

(4)

[ (8) ] Area subject to active shoreline erosion - A coastal area where shoreline erosion has been documented within historic time.

[ (9)

Areal expansion of an existing facility - The enlargement of a land surface area of an existing petroleum-substance waste management facility from that described in a petroleum-substance waste registration. ]

(5)

[ (10) ] Areas of direct drainage - Those land areas from which surface water runoff could flow into a lake or other surface water used to supply public drinking water.

(6)

[ (11) ] Authorized - Allowed in writing by agency [ executive director ] registration, by order, by permit, by license, or by rule.

(7)

[ (12) ] Authorized Representative - The person designated by the owner or operator to represent the facility or the person designated by the waste generator as the generator's representative.

(8)

[ (13) ] Class A facility - A facility which will at any time store or treat petroleum- substance contaminated soils generated from more than one leaking petroleum storage tank (LPST) site.

(9)

[ (14) ] Class B facility - A mobile treatment unit which will treat petroleum-substance soils from only one LPST site at a time at that LPST site. The petroleum-substance soils treated at that site must [ shall ] have originated from that site.

(10)

[ (15) ] Class C facility - A facility located elsewhere than the LPST site but which will store or treat petroleum-substance soils generated from only that one LPST site.

(11)

[ (16) ] Class D facility - A facility located at the LPST site which will store or treat the petroleum-substance soils generated from only that site.

(12)

[ (17) ] Clean fill standard - Soil which is no longer considered waste[ , e.g. soil cleaned to less than .5 mg/kg for each constituent of BTEX, and less than 10 mg/kg for TPH ].

(13)

[ (18) ] Closed portion - That portion of a facility which an owner or operator has closed in accordance with the approved facility closure plan and all applicable closure requirements. (See also "active portion" and "inactive portion.")

(14)

[ (19) ] Contingency plan - A document setting out an organized, planned, and coordinated course of action to be followed in case of a fire, explosion, or release of waste or waste constituents which could threaten human health and safety or the environment.

(15)

[ (20) ] Critical habitat of a endangered species - An area that is determined by the United States Fish and Wildlife Service to be a critical habitat for an endangered species.

(16)

[ (21) ] Designated facility - The authorized storage, treatment, or disposal facility that has been designated on the petroleum-substance waste manifest by the generator.

(17)

[ (22) ] Discharge - The accidental or intentional spilling, leaking, pumping, pouring, emitting, emptying, or dumping of waste into or on any land or water.

(18)

[ (23) ] Disposal - The discharge, deposit, injection, dumping, spilling, leaking, or placing of any waste (whether containerized or noncontainerized) into or on any land or water so that such waste or any constituent thereof may enter the environment or be emitted into the air or discharged into or adjacent to any waters, including groundwater.

(19)

[ (24) ] Disposal facility -- A facility or part of a facility at which waste is intentionally placed into or on any land or water or adjacent to any water, and at which such waste will remain.

(20)

[ (25) ] Effective substitute - A substance which may be used in the place of another substance for the same purpose without creating adverse environmental conditions.

(21)

[ (26) ] Erosion - The group of natural processes, including weathering, deterioration, detachment, dissolution, abrasion, corrosion, wearing away, and transportation, by which earthen or rock material is removed from any part of the earth's surface.

(22)

[ (27) ] Existing Portion - That land surface area of an existing waste management unit, on which wastes have been placed prior to the issuance of a registration.

(23)

[ (28) ] Facility - Includes structures, other appurtenances, and improvements on the land for storing or treating petroleum-substance waste. A facility may consist of several storage or treatment operational units. A facility may also be a mobile treatment unit.

(24)

[ (29) ] Facility Operator - The person responsible for the overall operation of a facility or an operation unit (i.e., part of facility), e.g., the plant manager, superintendent, or person of equivalent responsibility for the regulated activity.

(25)

[ (30) ] Facility Owner - The person who owns a facility or part of a facility.

(26)

[ (31) ] Final closure - The closure of all waste management units at the facility in accordance with all applicable closure requirements [ so that waste management activities are no longer conducted at the facility unless subject to the provisions of this title ].

(27)

[ (32) ] Generator - Any person who produces petroleum-substance waste; any person who stores or treats petroleum-substance waste; any person who possesses petroleum-substance waste to be shipped to any other person; or any person whose act first causes the petroleum-substance waste to become subject to regulation under this subchapter.

(28)

[ (33) ] Groundwater - Water below the land surface in a zone of saturation.

(29)

[ (34) ] Hazardous waste - Any solid waste identified or listed as a hazardous waste by the administrator of the United States Environmental Protection Agency [ (EPA) ] pursuant to the federal Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act, 42 United States Code 6901 et seq., as amended.

(30)

[ (35) ] Inactive portion - That portion of a facility which is not operated. (See also "active portion" and "closed portion.")

(31)

[ (36) ] In operation - Refers to a facility which is treating or storing petroleum- substance waste.

(32)

[ (37) ] In-situ treatment - The reduction of contaminant levels in soil or groundwater which is conducted without removing the contaminated media from the ground.

(33)

[ (38) ] Interim registration - Authorization for a storage or treatment facility received by the facility up to September 25, 1992.

(34)

[ (39) ] Land disposal facility - Any landfill, surface impoundment, waste pile, injection well, or other facility at which waste is finally disposed.

(35)

[ (40) ] Land surface treatment facility - A facility, unit, or part of a facility at which waste is applied onto a liner on the soil surface during treatment.

[ (41)

Leaking petroleum storage tank (LPST) site - A site at which a confirmed release of a petroleum substance from an underground or aboveground storage tank has occurred. Petroleum-substance contamination which results from multiple sources may be deemed as one LPST site by the executive director. ]

(36)

[ (42) ] Liner - A continuous layer of man-made materials, beneath and on the sides of a surface area which restricts the downward and lateral escape of waste, waste constituents, or leachate.

[ (43)

Management - The systematic control of the collection, storage, transportation, processing, reuse, treatment, recovery, and disposal of waste. ]

(37)

[ (44) ] Maximum allowable inventory - The maximum amount of petroleum contaminated soil (not including soil that meets the "Clean fill standard" [ definition ] criteria) that may be at a registered facility at any one time. The maximum allowable inventory amount will be designated in the application for registration and will be the basis for the facility closure cost estimate required to meet financial assurance requirements.

(38)

[ (45) ] New petroleum-substance waste management facility - Any facility to be used for the storage or treatment of petroleum-substance waste and which is not an existing petroleum substance waste management facility.

(39)

[ (46) ] One hundred-year floodplain - Any land area which is subject to a 1.0% or greater chance of flooding in any given year from any source.

(40)

[ (47) ] On-site - The same or geographically contiguous property which may be divided by public or private rights-of-way. Noncontiguous properties owned by the same person but connected by a right-of-way which that person controls and to which the public does not have access, is also considered on-site property.

[ (48)

Operator - Any person in control of or having responsibility for, the daily operation of an underground or aboveground storage tank system. ]

[ (49)

Owner - Any person who currently holds legal possession or ownership of a total or partial interest in the petroleum storage tank system. For the purposes of this chapter, where the actual ownership of an UST system or AST system is either uncertain, unknown, or in dispute, the fee simple owner of the surface estate where the UST or AST is located shall be considered the system owner, unless the owner of the surface estate can demonstrate by appropriate documentation (deed reservation, invoice, bill of sale, etc.) or by other legally-acceptable means that the system is owned by others. "Owner" does not include a person who holds an interest in an UST system or AST system solely for financial security purposes unless, through foreclosure or other related actions, the holder of such security interest has taken legal possession of the UST system or AST system. ]

(41)

[ (50) ] PST-Waste Manifest - The form furnished by the agency [ executive director ] to accompany shipments of petroleum-substance waste [ in order ] to track the movement and transference of petroleum-substance waste.

(42)

[ (51) ] Partial closure - The closure of a petroleum-substance waste management unit in accordance with the applicable closure requirements at a facility that contains other active petroleum-substance waste management units.

[ (52)

Person - Any individual, corporation, organization, government or governmental subdivision or agency, business trust, partnership, association or any other legal entity. ]

(43)

[ (53) ] Personnel or facility personnel - All persons who work at or oversee the operations of a waste management facility, and whose actions or failure to act may result in noncompliance with the requirements of this subchapter.

[ (54)

Petroleum substance - A crude oil or any refined or unrefined fraction or derivative of crude oil which is liquid at standard conditions of temperature and pressure. For the purposes of this subchapter, a "petroleum substance" shall be limited to one or a combination of the substances or mixtures in the following list except for any listed substance regulated as a hazardous waste under the federal Solid Waste Disposal Act, Subtitle C (42 United States Code §6921, et seq.):]

[ (A)

Basic petroleum substances - Crude oils, crude oil fractions, petroleum feedstocks, and petroleum fractions.]

[ (B)

Motor fuels - see definition for "motor fuel" in §334.2 of this chapter (relating to Definitions).]

[ (C)

Aviation gasolines - Grade 80, Grade 100, and Grade 100-LL.]

[ (D)

Aviation jet fuels - Jet A, Jet A-1, Jet B, JP-4, JP-5, and JP-8.]

[ (E)

Distillate fuel oils - No. 1-D, No. 1, No. 2-D, and No. 2.]

[ (F)

Residual fuel oils - No. 4-D, No. 4-light, No. 4, No. 5-light, No. 5-heavy, and No. 6.]

[ (G)

Gas-turbine fuel oils - Grade O-GT, Grade 1-GT, Grade 2-GT, Grade 3-GT, and Grade 4-GT.]

[ (H)

Illuminating oils - Kerosene, mineral seal oil, longtime burning oils, 300 oil, and mineral colza oil.]

[ (I)

Solvents - Stoddard solvent, petroleum spirits, mineral spirits, petroleum ether, varnish makers' and painters' napthas, petroleum extender oils, and commercial hexane.]

[ (J)

Lubricants - Automotive and industrial lubricants.]

[ (K)

Building materials - Liquid asphalt and dust-laying oils.]

[ (L)

Insulating and waterproofing materials - Transformer oils and cable oils.]

[ (M)

Used oils - See definition for "used oil" in §334.2 of this chapter (relating to Definitions).]

[ (N)

Any other petroleum-based material having physical and chemical properties similar to the above materials and receiving approval by the executive director for designation as a petroleum substance.]

(44)

[ (55) ] Petroleum substance waste - Any waste, excluding hazardous waste and liquid wastes, which is generated as a result of a release of a petroleum substance from an underground storage tank or a petroleum product from an aboveground storage tank regulated by the commission pursuant to the Texas Water Code, Chapter 26, Subchapter I.

(45)

[ (56) ] Public water system - A system for the provision to the public of piped water for human consumption, if such system has at least 15 service connections or regularly services an average of at least 25 individuals daily at least 60 days out of the year.

(46)

[ (57) ] Registration - Written authorization issued by the executive director, which, by its conditions, may authorize the registrant to construct, install, modify, or operate a petroleum- substance waste storage or treatment facility or unit in accordance with specified limitations.

(47)

[ (58) ] Representative sample - A sample of a universe or whole (e.g., waste pile, groundwater) which can be expected to exhibit the average properties of the universe or whole.

(48)

[ (59) ] Reuse of petroleum-substance wastes - The process by which a petroleum- substance waste is utilized as an effective substitute for a commercial product, such as the proper use as a component of stabilized road base or use as fill for LPST tankholds.

(49)

[ (60) ] Run-off - Any rainwater, leachate, or other liquid that drains over or into land from any part of a facility, land surface treatment unit, or stockpile.

(50)

[ (61) ] Run-on - Any rainwater, leachate, or other liquid that drains over land onto or into any part of a facility, land surface treatment unit, or stockpile.

(51)

[ (62) ] Saturated zone or zone of saturation - That part of the earth's crust in which all voids are filled with water.

(52)

[ (63) ] Secondary containment - A system designed and constructed to collect rainfall run-on and to contain spills, leaks, or discharges within the facility without environmental contamination until such waste can be removed.

(53)

[ (64) ] Shipment - Any action involving the conveyance of petroleum-substance waste by any means to or from a site.

(54)

[ (65) ] Sole-source aquifer - An aquifer designated pursuant to the Safe Drinking Water Act [ of 1974 ], §1424(e) which solely or principally supplies drinking water to an area, and which, if contaminated, would create a significant hazard to public health. [ The Edwards Aquifer has been designated a sole-source aquifer by the United States Environmental Protection Agency. The Edwards Aquifer Recharge and Transition Zones are specifically those areas delineated on maps in the offices of the executive director. ]

(55)

[ (66) ] Spill - The spilling, leaking, pumping, emitting, emptying, or dumping of wastes or materials which, when spilled, become wastes into or on any land or water.

(56)

[ (67) ] Storage - The holding of petroleum-substance waste for a temporary period, prior to the final treatment, disposal of, reuse, or storing of the waste elsewhere.

(57)

[ (68) ] Stockpile - A soil storage area from which all petroleum-substance wastes are removed for treatment or final disposition and from which all wastes are removed at the time of closure of the facility.

(58)

[ (69) ] Thermal treatment unit - An enclosed device using controlled flame combustion, microwave, UV, infrared, or other thermal treatment process.

(59)

[ (70) ] Treatment - Methods which are designed to change, by physical, chemical, or biological means, the levels of contamination of the waste [ in order ] to render the waste suitable for reuse or disposal. [ The term treatment does not include the reduction of contaminant levels by dilution. ]

(60)

[ (71) ] Treatment facility - A facility or unit which treats, recycles, and/or reuses petroleum-substance wastes.

(61)

[ (72) ] Transporter - Any person who conveys or transports petroleum-substance waste by truck, ship, pipeline, or other means.

[ (73)

Underground storage tank - Any one or combination of underground tanks and any connecting underground pipes used to contain an accumulation of regulated substances, the volume of which, including the volume of the connecting underground pipes, is ten percent or more beneath the surface of the ground. ]

(62)

[ (74) ] Unsaturated zone or zone of aeration - The zone between the land surface and the water table.

(63)

[ (75) ] Uppermost aquifer - The geologic formation nearest the natural ground surface that is an aquifer, as well as lower aquifers that are hydraulically interconnected within the facility's property boundary.

(64)

[ (76) ] Waste management area - Any area on which one or more waste management units resides.

(65)

[ (77) ] Waste management unit - A contiguous area of land on or in which petroleum substance waste is placed, or a structure or machine used to store or treat waste pursuant to a registration issued under this subchapter. Examples of waste management units include a waste stockpile, a land surface treatment area, a thermal treatment unit, a stockpile, a tank and its associated piping and underlying containment system, and a container storage area.

(66)

[ (78) ] Wetlands - Those areas that are inundated or saturated by surface water or groundwater at a frequency and duration sufficient to support, and that under normal circumstances do support, a prevalence of vegetation typically adapted for life in saturated soil conditions. Wetlands generally include swamps, marshes, bogs and similar areas.

§334.482.General Requirements [ Prohibitions ].

(a)

(No change.)

(b)

Prior to proceeding in any manner that differs from the requirements of this subchapter, the generator and/or an authorized representative of the treatment facility must secure written agency approval in the form of a variance in accordance with this section [ Notwithstanding subsection (a) of this section, a person may apply for a variance from the requirements of this subchapter. The executive director shall have the sole discretion to grant a variance, if in his opinion the requirement(s) of this subchapter is/are not practical or reasonable under the circumstances. Any request for a variance must be in writing and of sufficient detail to allow the executive director to make an informed determination. A request for variance must be approved by the executive director before a person may perform an activity or procedure which is not specifically authorized by this subchapter ].

(c)

The agency has authority to review and approve requests for variances from the requirements of this subchapter. The agency may approve such requests only if the generator and/or an authorized representative of the treatment facility can demonstrate to the satisfaction of appropriate agency staff that the proposed alternative procedure is protective of human health and safety and the environment.

(d)

Any request to the agency for approval of a variance must be made in writing, must be signed and dated by the generator and/or an authorized representative of the treatment facility, and must be accompanied by complete project identification and documentation as requested by agency staff.

(e)

If a variance is granted by the agency, the generator and treatment facility must maintain complete copies of the variance and supporting documentation (including the request for the variance) in the manner described in §334.497 (relating to Recordkeeping and Reporting Procedures Applicable to Generators).

(f)

Once a person has received a written variance from the agency under this subsection, that person must adhere to the terms of that variance as written or to the rule requirements for which the variance was sought.

§334.484.Registration Required for Petroleum-Substance Waste Storage or Treatment Facilities.

(a)

A person shall submit the required application and receive the appropriate registration issued after December 27, 1996, [ the effective date of these rules ] prior to storing or treating petroleum-substance wastes at a new Class A facility or treating soil utilizing a new Class B waste management facility.

(b)

A person may not commence physical construction of a new Class A or utilize a Class B petroleum-substance waste management facility without first having submitted the required application and received the appropriate registration unless otherwise authorized by the agency [ executive director ].

(c)

Any person who intends to store or treat petroleum-substance waste at a Class A or Class B facility after December 27, 1996, must [ the effective date of this subchapter shall ] submit an application for registration on a form approved by the agency [ executive director ]. Such person must [ shall ] submit information to the executive director which is sufficiently detailed and complete to enable the agency [ commission ] to determine whether such storage or treatment is compliant with the terms of this subchapter. Such information shall include, at a minimum:

(1)-(20)

(No change.)

(21)

any other information as the agency [ executive director ] may deem necessary to determine whether the facility and operation thereof will comply with the requirements of this subchapter. The application shall be submitted to the agency's central office [ executive director of the commission, and a copy shall be submitted to the commission's field office in the district where the proposed facility will be located ].

(d)

If the applicant is other than an individual, the application must [ shall ] be signed by the owner or operator of the facility, the president or chief executive officer of the company, or all the partners of the company.

(e)

Any person who stores or treats petroleum-substance waste shall have the continuing obligation to immediately provide written notice to the agency [ executive director ] of any changes or additional information concerning the information submitted to the commission or activities authorized in any registration within 15 days of the change or from the date the additional information was acquired.

(f)

Any information required by this subsection must [ shall ] be submitted to the agency's [ executive director's ] office in Austin [ and to the appropriate region office ].

(g)

(No change.)

(h)

The applicant or a person affected may file with the chief clerk of the commission a motion for reconsideration under §50.39(b)-(f) of this title (relation to Motion for Reconsideration) of the agency's [ executive director's ] final approval or denial of an application for registration.

§334.485.Suspension or Revocation of Registration.

(a)

A registration may be suspended or revoked for the following reasons:

(1)-(4)

(No change.)

(5)

if the registrant exceeds maximum allowable inventory without prior written authorization from the agency [ executive director ]; or

(6)

(No change.)

(b)

If the executive director determines that good cause exists for suspension or for revocation of a registration, the executive director will [ he shall ] petition the commission for an order, suspending or revoking the registration.

(1)

The executive director will [ shall ] notify the registrant in writing, by registered or certified mail, of the grounds for the suspension or revocation, and provide the registrant with an opportunity for hearing on the executive director's petition.

(2)

The executive director will [ shall ] provide notice at least ten days prior to the date of the hearing.

(3)

The registrant must [ shall ] be afforded an opportunity to answer the executive director's petition for suspension or revocation in the manner generally described by this title.

(4)-(6)

(No change.)

§334.486.Denial of Application for Registration or Renewal.

[ (a) ]

The agency [ executive director ] may deny an application for registration or an application for renewal of registration of a facility under this subchapter for the following reasons:

(1)-(2)

(No change.)

(3)

if the applicant submits false information on or omits material information from the application or any other documentation required to be maintained or submitted under this chapter; or under Chapter 37, Subchapter K, of this title (relating to Financial Assurance Requirements for Class A or B Petroleum-Substance Contaminated Soil Storage, Treatment, and Reuse Facilities); or

(4)

(No change.)

[ (b)

Denial of an application for registration is without prejudice. ]

§334.487.Renewal of Registration.

(a)

(No change.)

(b)

The agency will [ commission shall ] notify each registrant in writing of the impending registration expiration at least 60 days prior to the expiration of the registration.

(c)

The agency will [ executive director shall ] provide application forms for renewal of a registration.

(d)

A properly completed application for renewal shall be submitted to the agency [ executive director ] at least 30 days prior to the expiration date of the registration. The current registration shall be valid until the agency [ executive director ] notifies the applicant of renewal or denial of the submitted renewal application, provided a properly completed application for renewal was submitted at least 30 days prior to the expiration date of the registration.

(e)

Upon proper completion of the registration renewal process, the agency will [ executive director shall ] either issue a renewed registration indicating the expiration date or deny the application for renewal, as authorized by §334.486 of this title (relating to Denial of Application for Registration or Renewal).

§334.488.Authorization for Class C and Class D Facilities.

Authorization for Class C and Class D facilities is issued by the agency [ executive director ] when the leaking petroleum storage tank (LPST) site is subject to a corrective action plan involving storage and treatment activities pursuant to §334.81 of this title (relating to Corrective Action Plan). Agency [ Executive director ] approval of the corrective action plan for the storage or treatment activities shall constitute authorization for the Class C or Class D facility. A Class C or Class D storage or treatment facility shall remain in operation only as long as is necessary to store or treat the soil from that one LPST site and it shall not accept soil from any other site at any time. The underground or aboveground storage tank owner or operator shall ensure that the approved storage and treatment activities comply with the following applicable provisions: §§334.482, 334.483, 334.490, 334.494, 334.496-334.503, and 334.505-334.507 of this title (relating to General Prohibitions; Disposal by Generator; Notification and Mobilization Requirements for Class B Facilities; Closure and Facility Expansion; Shipping Procedures Applicable to Generators of Petroleum-Substance Waste; Recordkeeping and Reporting Procedures Applicable to Generators; Shipping Requirements Applicable to Transporters of Petroleum-Substance Waste; Shipping Requirements Applicable to Owners or Operators of Storage, Treatment, or Disposal Facilities; Recordkeeping Requirements Applicable to Owners or Operators of Storage, Treatment, or Disposal Facilities; Additional Reports; Design and Operating Requirements of Stockpiles and Land Surface Treatment Units; Reuse of Petroleum-Substance Waste; Security; Contingency Plan; and Emergency Procedures).

§334.490.Notification and Mobilization Requirements for Class B Facilities.

In addition to the required registration under §334.484 of this title (relating to Registration Required for Petroleum-Substance Waste Storage or Treatment Facilities).

(1)

The owner or operator of a Class B facility shall notify the appropriate agency regional [ commission region field ] office at least 48 hours in advance of moving the treatment unit to the leaking petroleum storage tank (LPST) site.

(2)

(No change.)

(3)

The owner or operator of the underground or aboveground storage tank who intends to utilize a Class B facility at a particular LPST site shall obtain agency [ executive director ] approval pursuant to §334.81 of this title (relating to Corrective Action Plan).

(4)

The Class B facility shall remain at the LPST site for only the time period necessary to complete the treatment, but no longer than 30 days, unless written authorization is obtained from the agency [ executive director ].

(5)

The Class B facility owner or operator shall provide notice to the public by means of posting signs at the LPST site at least 14 days prior to moving the treatment unit onto the LPST site or within another time frame as approved by the agency [ executive director ]. The signs shall be legible from a distance of at least 25 feet and shall be posted at all entrances to the facility. The signs shall state "Public Notice of Petroleum-Substance Contaminated Soil Treatment", the name and phone number of the treatment facility owner, the name and phone number of the tank owner or operator, the registration number of the treatment facility, the type of soil treatment to be conducted, and the date(s) the treatment will be conducted.

(6)

The Class B facility owner or operator shall produce upon demand the registration certificate issued by the agency [ commission ] under this subchapter as well as any other permit or authorization required by law.

§334.492.Public Notice.

The Class A facility owner or operator shall provide notice to the general public regarding the location, construction, operation, and potential impacts of the storage or treatment facility.

(1)

(No change.)

(2)

The notice shall contain, at a minimum, the following information in accordance with forms approved by the agency [ executive director ]:

(A)-(E)

(No change.)

(F)

notice that an application for registration has been filed with the agency [ Texas Natural Resource Conservation Commission ];

(G)-(H)

(No change.)

(3)

(No change.)

(4)

The notice by certified mail, return receipt requested, shall be sent to the following persons:

(A)-(D)

(No change.)

(E)

all persons or organizations who have requested the notice or expressed interest in the facility. The agency [ executive director ] may designate persons or organizations in addition to those specified by the facility owner or operator.

(5)

The facility owner or operator shall provide copies of each notice sent by mail, copies of the published notice, and copies of the signed publisher's affidavits for the notices to the agency's central [ commission's Austin ] office and to the appropriate agency regional [ commission region ] office within two calendar days of publication and mailing.

§334.493.Public Meetings for Class A Facilities.

(a)

The agency [ executive director ] may, in response to a request from the public or at its [ his ] own discretion, require the Class A facility owner or operator to hold a public meeting whenever such a meeting might clarify one or more issues concerning an application for registration of a facility.

(b)

Upon request by the agency [ executive director ], the Class A facility owner or operator, at its [ his or her ] expense, shall schedule and hold a public meeting at a time and place which are convenient for the general public affected by the facility. Notice of the public meeting shall be provided by the Class A facility owner or operator to the public, not less than 30 days prior to the date of the meeting, in the manner described in §334.492(3), (4), and (5) of this title (relating to Public Notice).

(c)

The forum chosen for the meeting shall be accessible to persons who are mobility impaired. Prior to scheduling of the meeting, the applicant shall coordinate the scheduling of the meeting with agency [ commission ] personnel to ensure the availability of agency [ commission ] personnel for the meeting. The applicant shall confirm with the agency [ executive director ] the date, time, and location of the meeting not less than 15 days prior to the meeting. The meeting shall be open to the public to provide information on the proposed facility and to allow for comments by the public. The agency [ executive director ] will consider all comments relating to the requirements of this subchapter when determining the outcome of the registration application. The applicant shall again confirm with the agency [ executive director ] on the time and place of the meeting at least 72 hours prior to the meeting.

(d)

If the agency [ executive director ] does not request the Class A facility owner or operator to hold a public meeting as authorized by this section, no public meeting shall be required before the agency [ executive director ] may approve or deny an application for registration of a Class A facility.

§334.494.Closure and Facility Expansion.

A person who stores or treats petroleum-substance waste at a Class A or B facility shall notify the agency [ executive director ] in writing of any closure activity or facility expansion not specifically stated in the original application for registration at least 30 days prior to conducting such activity. Such person shall submit to the agency [ executive director ] upon request such information as may reasonably be required to enable the agency [ executive director ] to determine whether such activity is compliant with this subchapter and whether additional public notice should be conducted. Any information provided under this section shall be submitted to the agency's [ executive director's ] office in Austin and to the appropriate regional [ region field ] office.

§334.495.Location Standards for Class A Petroleum-Substance Waste Storage or Treatment Facilities.

(a)

The agency will [ commission shall ] not issue a registration for a Class A petroleum- substance waste management facility unless it finds that the proposed site, when evaluated in light of proposed design, construction, and operational features, reasonably minimizes possible contamination of surface water and groundwater. In making this determination, the agency will [ commission shall ] consider the following factors:

(1)-(5)

(No change.)

(b)

Class A storage or treatment facilities shall not be located:

(1)-(4)

(No change.)

(5)

within 1,000 feet of any property owned by a person other than the facility owner unless the applicant obtains a variance from the agency [ executive director ] pursuant to subsection (d) of this section relating to variances;

(6)-(8)

(No change.)

(c)

Nothing in this subchapter shall be construed to require the agency [ executive director ] to issue a registration. In addition to an applicant's compliance with location requirements, the agency [ executive director ] will consider public comment on the proposed facility, surrounding land uses, past performance record if any, and enforcement history with this agency [ the Texas Natural Resource Conservation Commission ] and other state agencies, when determining whether or not to register an applicant under this subchapter.

(d)

The agency [ executive director ] may, in its [ his ] discretion, grant a variance of the requirements of subsection (b) of this section, relating to location requirements for Class A Facilities. Before the agency [ executive director ] may issue a variance under this subsection, it [ he ] shall require the applicant to demonstrate that the provisions of subsection (b) of this section are not necessary to ensure adequate protection of human health and the environment.

§334.496.Shipping Procedures Applicable to Generators of Petroleum-Substance Waste.

(a)

No generator shall transport petroleum-substance waste from the generating site unless the waste has been properly sampled [ in order ] to determine the levels of all possible contaminants in the waste. Necessary documentation shall, at a minimum, consist of documentation on the sampling, handling, chain-of-custody documentation, and copies of signed laboratory reports on samples collected from the specified wastes that contain results of analysis for:

(1)

(No change.)

(2)

any other contaminants as specified by the agency [ executive director ] based on specific conditions of the generating site.

(b)-(d)

(No change.)

§334.497.Recordkeeping and Reporting Procedures Applicable to Generators.

Each generator of petroleum-substance waste shall comply with the following.

(1)

The generator shall keep records of all petroleum-substance waste activities regarding the quantities generated and shipped off-site for storage, treatment, or disposal and which, at a minimum, includes the information described in paragraphs (1)-(5) of this section. The maintained records shall be retrievable, legible, and immediately available for inspection and copying by agency [ commission ] personnel. The required records shall be sufficiently detailed and complete to support any contentions or claims made by the generator with respect to the following:

(A)-(E)

(No change.)

(2)-(4)

(No change.)

(5)

A generator shall submit an exception report to the agency [ executive director ] if the generator has not received a copy of the manifest with the handwritten signature of the owner or operator of the designated facility within 45 days of the date that the waste was accepted by the initial transporter. The exception report shall be retained by the generator for at least five years from the date the waste was accepted by the initial transporter and shall include:

(A)-(B)

(No change.)

(6)

The periods of record retention required by this section may be extended by the agency [ executive director ] during the course of any unresolved enforcement action regarding the regulated activity.

§334.499.Shipping Requirements Applicable to Owners or Operators of Storage, Treatment, or Disposal Facilities.

(a)

(No change.)

(b)

When a facility or reuse area receives petroleum-substance waste accompanied by a PST-Waste Manifest, the facility owner or operator, or his agent, or the owner or operator of the property designated for the reuse area shall note any significant discrepancies on each copy of the PST-Waste Manifest.

(1)

(No change.)

(2)

Upon discovering a significant discrepancy, the facility owner or operator shall 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 facility owner or operator shall, within five days, submit to the agency [ executive director ] a letter describing the discrepancy and attempts to reconcile it, and a copy of the PST-Waste Manifest at issue. The facility owner or operator shall ensure that the waste is a petroleum-substance waste eligible for acceptance by the facility pursuant to this subchapter and shall report any unreconciled discrepancies discovered during any analyses or evaluation.

(c)

No owner or operator of a storage, treatment, or disposal facility in Texas shall accept wastes from an out-of-state generator or location unless the following requirements are met:

(1)

(No change.)

(2)

the facility owner or operator obtains documentation that the wastes contain only petroleum- substance contamination, have been generated from an underground or aboveground storage tank as defined in this chapter, and are classified as nonhazardous in the state where generated. This documentation shall consist of documentation on the sampling methods, sample handling, chain-of- custody documents, and legible copies of signed laboratory reports on samples collected from the specified wastes. The number of samples shall be sufficient to characterize the entire quantity of wastes. The analyses shall include:

(A)-(C)

(No change.)

(D)

any other analyses necessary to characterize the wastes or as specified by the agency [ executive director ]; and/or

(3)

the facility owner or operator obtains documentation from the appropriate governing agency in the originating jurisdiction that the wastes are classified as nonhazardous and meet the definition of petroleum-substance wastes (as such wastes are defined in §334.2 of this title (relating to Definitions)), and provides such documentation to the agency [ executive director ] prior to receiving the out-of- state soils.

(d)

The facility owner or operator shall not accept any wastes for storage, treatment, or disposal from an in-state generator or location which contain any contaminants above natural background levels other than petroleum substances as defined in this subchapter, unless otherwise approved by the agency [ executive director ]. Documentation of the contaminants in the waste shall consist of a sufficient number of samples to characterize the waste and the samples shall be analyzed for all contaminants that may occur in that waste.

§334.500.Recordkeeping Requirements Applicable to Owners or Operators of Storage, Treatment, or Disposal Facilities.

(a)

All records required by this subchapter shall be retained by the facility owner or operator for a minimum of five years from the date of receipt of the waste. The records shall be maintained in a secure location on the premises of the storage, treatment, or disposal facility and shall be immediately accessible by the facility owner and operator. In the event that copies of the required records cannot reasonably be maintained on the premises of the facility, such records may be maintained at a readily- accessible alternate site, provided that the following conditions are met.

(1)

(No change.)

(2)

The records shall be readily accessible and available for inspection and copying upon request by agency [ commission ] personnel.

(3)

The facility owner or operator shall provide the following information in writing to the agency's central office [ executive director and to the commission's appropriate region office ]:

(A)-(B)

(No change.)

(4)

(No change.)

(b)

For facilities which have completed the closure requirements and are no longer in service, the facility owner may submit the appropriate records required by this subchapter to the agency [ executive director ] in lieu of maintaining the records on the premises or at an alternate site, provided that the following conditions are met:

(1)-(2)

(No change.)

(c)

(No change.)

(d)

The periods of record retention required by this subsection may be extended by the agency [ executive director ] during the course of any unresolved enforcement action regarding the regulated activity.

(e)

The following information, at a minimum, shall be maintained by the facility owner or operator:

(1)-(6)

(No change.)

(7)

any other information deemed necessary by the agency [ executive director ].

§334.501.Additional Reports.

The owner or operator of a Class A or Class B facility shall report to the agency [ executive director ] within 24 hours of the discovery of any releases, fires, explosions, breakdowns, shutdowns, releases, or spills which result or may result in the discharge of any contaminants to the ground, surface water, or groundwater.

§334.502.Design and Operating Requirements of Stockpiles and Land Surface Treatment Units.

(a)

A stockpile or land surface treatment unit located at any storage or treatment facility or at any leaking petroleum storage tank site shall have an appropriate means of preventing any discharge or release of petroleum-substance waste or petroleum-substance waste constituents into any media. This shall be accomplished with:

(1)

(No change.)

(2)

an alternate design or operating practice that is effective in preventing any release or discharge and is approved by the agency [ executive director ]. The facility owner or operator shall demonstrate that the alternate design or operating practices, together with location characteristics, will prevent the migration of any petroleum-substance waste constituents into the soil, groundwater, or surface water at any future time. In deciding whether to approve the alternate design, the agency [ executive director ] will consider:

(A)-(D)

(No change.)

(b)-(e)

(No change.)

(f)

The agency [ executive director ] may specify other design and operating practices that may be necessary to ensure that the requirements of this section are satisfied.

(g)-(i)

(No change.)

§334.503.Reuse of Petroleum-Substance Waste.

(a)

(No change.)

(b)

Petroleum-substance waste may be reused in accordance with §350.36 of this title (relating to the Relocation of Soils Containing COCs for Reuse Purposes). Recordkeeping and reporting requirements for any person who intends to reuse petroleum-substance wastes shall be in accordance with §350.36 of this title except under the conditions of subsections (c)(3)(A)-(C) of this section as the requirements of [ § ]§350.36(b)(4) and (c)(4) of this title will [ shall ] not apply. Under the conditions of subsection (c)(3)(A)-(C) of this subsection, the person must [ shall ] maintain records and provide to the agency [ executive director ] when requested such information deemed necessary by the agency [ executive director ] to ensure compliance with the requirements of this subsection. [ This information that shall be maintained under §334.503(c)(3)(A)-(C) of this section includes, but is not limited to: ]

(1)

For releases reported to the agency on or after September 1, 2003, the information that must be maintained under subsection (c)(3)(A)-(C) of this section includes, but is not limited to:

(A)

[ (1) ] Identification, address, and name of the authorized representative of the generating facility;

(B)

[ (2) ] Identification, address, and name of the authorized representative for the receiving facility or location;

(C)

[ (3) ] Identification of the landowner of the receiving location or facility;

(D)

[ (4) ] The quantity, type, and contaminant levels of the reused wastes;

(E)

[ (5) ] Documentation of the reuse methods and dates of reuse;

(F)

[ (6) ] Documentation that asphalt mix or road base mix meets the specifications required by the final user; and

(G)

[ (7) ] Documentation that the landowner of the receiving location has approved the use of the reused wastes on his property.

(2)

For releases reported to the agency on or before August 31, 2003, the recordkeeping and reporting requirement for any person who intends to reuse petroleum-substance wastes must require that person to maintain records and provide to the agency when requested such information deemed necessary by the agency to ensure compliance with the requirements of this subsection. This information shall include, but is not limited to:

(A)

identification, address, and name of the designated representative of the generating facility;

(B)

identification, address, and name of the designated representative for the receiving facility or location;

(C)

identification of the landowner of the receiving location or facility;

(D)

the quantity, type, and contaminant levels of the reused wastes;

(E)

documentation of the reuse methods and dates of reuse;

(F)

documentation that asphalt mix or road base mix meets the specifications required by the final user; and

(G)

documentation that the landowner of the receiving location has approved the use of the reused wastes on his property.

(c)

Reuse requirements are as follows.

(1)

For releases reported to the agency on or before August 31, 2003, any person who intends to utilize petroleum-substance wastes for reuse must obtain written approval from the landowner of the land on which the wastes will be placed and from the agency as specified by this subsection. The landowner's approval shall be submitted to the agency upon request.

(2)

[ (1) ] Petroleum-substance wastes shall be reused only in manners which are in accordance with §334.482 of this title and at contaminant levels specified by the agency [ executive director ].

(3)

[ (2) ] Petroleum-substance wastes may be reused under the following conditions.

(A)

Petroleum-substance wastes may be utilized in cold-mix-emulsion bituminous paving at a cold-mix asphalt-producing facility registered under the terms of this subchapter. The petroleum-substance waste shall be mixed with aggregate or other suitable materials at a rate which will result in a mixture meeting or exceeding the specifications required by the final user. [ The concentration of benzene, toluene, ethylbenzene, and total xylenes, or any other relevant chemicals of concern derived from the petroleum substance waste shall not exceed levels which are protective of human health and the environment as generally determined in accordance with Chapter 350 of this title (relating to Texas Risk Reduction Program Rule), and shall not be at such concentrations which compromises the integrity of the cold-mix asphalt product. Authorization for the facility shall also be obtained from all other appropriate federal, state, or local governing agencies. Authorization from the owner of the road or other area where the asphalt is to be utilized shall be obtained prior to laying the asphalt. ]

(i)

For releases reported to the agency on or before August 31, 2003, the petroleum-substance waste will contain less than 0.5 mg/kg for each component of benzene, toluene, ethyl benzene, and total xylenes prior to mixing. Authorization for the facility must also be obtained from all other appropriate federal, state, or local governing agencies. Authorization from the owner of the road or other area where the asphalt is to be utilized must be obtained prior to laying the asphalt.

(ii)

For releases reported to the agency on or after September 1, 2003, the concentration of benzene, toluene, ethylbenzene, and total xylenes, or any other relevant chemicals of concern derived from the petroleum substance waste must not exceed levels which are protective of human health and the environment as generally determined in accordance with Chapter 350 of this title, and must not be at concentrations which compromise the integrity of the cold-mix asphalt product. Authorization for the facility must also be obtained from all other appropriate federal, state, or local governing agencies. Authorization from the owner of the road or other area where the asphalt is to be utilized must be obtained prior to laying the asphalt.

(B)

Petroleum-substance wastes may be utilized in asphalt mix at hot-mix asphalt-producing facilities registered under this subchapter. [ The concentration of benzene, toluene, ethylbenzene, and total xylenes, or any other relevant chemicals of concern derived from the petroleum substance waste shall not exceed levels which are protective of human health and the environment as generally determined in accordance with Chapter 350 of this title, and shall not be at such concentrations which compromises the integrity of the hot-mix asphalt product. The petroleum-substance waste shall be mixed with aggregate at a rate which will result in a mixture meeting or exceeding the specifications required by the final user. Authorization for the facility shall also be obtained from all other appropriate federal, state, or local governing agencies. Authorization from the owner of the road or other area where the asphalt is to be utilized shall be obtained prior to laying the asphalt. ]

(i)

For releases reported to the agency on or before August 31, 2003, the petroleum-substance waste will contain less than 0.5 mg/kg for each component of benzene, toluene, ethyl benzene, and total xylenes prior to mixing. The petroleum-substance waste must be mixed with aggregate at a rate which will result in a mixture meeting or exceeding the specifications required by the final user. Authorization for the facility must also be obtained from all other appropriate federal, state, or local governing agencies. Authorization from the owner of the road or other area where the asphalt is to be utilized must be obtained prior to laying the asphalt.

(ii)

For releases reported to the agency on or after September 1, 2003, the concentration of benzene, toluene, ethylbenzene, and total xylenes, or any other relevant chemicals of concern derived from the petroleum substance waste must not exceed levels which are protective of human health and the environment as generally determined in accordance with Chapter 350 of this title, and must not be at such concentrations which compromise the integrity of the hot-mix asphalt product. The petroleum- substance waste must be mixed with aggregate at a rate which will result in a mixture meeting or exceeding the specifications required by the final user. Authorization for the facility must also be obtained from all other appropriate federal, state, or local governing agencies. Authorization from the owner of the road or other area where the asphalt is to be utilized shall be obtained prior to laying the asphalt.

(C)

Petroleum-substance wastes may be utilized in road base or parking lot stabilized base when the base will be covered with concrete or asphalt. [ The concentration of benzene, toluene, ehtylbenzene, and total xylenes, or any other relevant chemicals of concern derived from the petroleum substance waste shall not exceed levels which are protective of human health and the environment as generally determined in accordance with Chapter 350 of this title, and shall not be at such concentrations which compromises the integrity of the stabilized base. The base shall be mixed according to the specifications required by the final user. Soil which is not mixed into stabilized road base shall meet the criteria for clean soil as specified by the executive director in order to be spread on a road or parking lot. The generator shall obtain prior written consent for the placement of the soil from the owner of the road (if different from the landowner). ]

(i)

For releases reported to the agency on or before August 31, 2003, the contaminant levels of the soil prior to mixing into the stabilized base are less than 0.5 mg/kg for each component of benzene, toluene, ethyl benzene, and total xylenes, and less than 500.0 mg/kg total petroleum hydrocarbons or at contaminant levels otherwise specified by the agency. The base must be mixed according to the specifications required by the final user. Soil which is not mixed into stabilized road base must meet the criteria for clean soil as specified by the agency to be spread on a road or parking lot. The generator must obtain prior written consent for the placement of the soil from the owner of the road (if different from the landowner).

(ii)

For releases reported to the agency on or after September 1, 2003, the concentration of benzene, toluene, ethylbenzene, and total xylenes, or any other relevant chemicals of concern derived from the petroleum substance waste shall not exceed levels which are protective of human health and the environment as generally determined in accordance with Chapter 350 of this title, and must not be at such concentrations which compromise the integrity of the stabilized base. The base must be mixed according to the specifications required by the final user. Soil which is not mixed into stabilized road base must meet the criteria for clean soil as specified by the agency to be spread on a road or parking lot. The generator must obtain prior written consent for the placement of the soil from the owner of the road (if different from the landowner).

(D)

For releases reported to the agency on or before August 31, 2003, petroleum-substance wastes may be utilized, if appropriate, in road base or parking lot stabilized base when the base will not be covered with asphalt or concrete. To determine if the soil to be reused is appropriate for the application, analysis for contamination must be conducted as specified by this agency. The agency will give written approval for the particular reuse after ensuring that the implementation will, in the opinion of agency staff, adequately protect human health, safety, and the environment. The base must be mixed according to the specifications required by the final user. The base must be professionally mixed by a facility registered under the terms of this subchapter. Soil which is not mixed into stabilized road base must meet the criteria for clean soil to be spread on a road or parking lot. The generator must obtain prior written consent for the placement of the soil from the owner of the road (if different from the landowner). [ Petroleum-substance waste may be reused by alternative methods or contaminant levels deemed appropriate and as authorized by the executive director. The generator shall obtain authorization, including authorization pursuant to the requirements of this subchapter, from the executive director prior to reusing the waste by alternative methods. ]

(E)

For releases reported to the agency on or before August 31, 2003, petroleum-substance wastes will be considered clean, and may, if appropriate, be used as fill. To determine if the soil to be reused is appropriate for the application, analysis for contamination must be conducted as specified by this agency. The agency will give written approval for the particular reuse after ensuring that the implementation will, in the opinion of agency staff, adequately protect human health, safety, and the environment. The landowner at the receiving site (if different from the original owner of the petroleum substance contamined soil) must give written consent for this activity. Fill for tank hold bedding and backfill for tank systems must meet the requirements of §334.46(a)(5) of this title (relating to Installation Standards for New Underground Storage Tank Systems).

§334.504.Contaminant Assessment Program and Corrective Action.

(a)

The facility owner or operator shall conduct an assessment when, in the opinion of the agency [ executive director ], there exists a possibility of migration of contaminants into or adjacent to waters in the state. The assessment shall be capable of determining:

(1)-(3)

(No change.)

(b)

The owner or operator of the facility shall conduct corrective action at the facility when, in the opinion of the agency [ executive director ], petroleum-substance waste constituents exist in the soil, groundwater, or nearby surface water at levels which are harmful to human health and safety or the environment.

(c)

The corrective action program shall be capable of preventing the migration of contaminants and shall prevent the contaminants from exceeding the levels determined by the agency [ executive director ].

(d)

The facility owner or operator shall ensure that the corrective action measures under this subsection shall be initiated and completed within a reasonable period of time as determined by the agency [ executive director ] considering the extent of contamination. The agency [ executive director ] may issue additional directives should the corrective action activities prove to not be effective in reducing the contaminant levels at a sufficient rate.

(e)

The facility owner or operator shall report in writing to the agency [ executive director ] the effectiveness of the corrective action program. The facility owner or operator shall submit these reports to the agency's central [ commission's Austin ] office and to the appropriate agency regional [ commission region ] office upon request by the agency [ executive director ].

§334.506.Contingency Plan.

(a)-(f)

(No change.)

(g)

A legible copy of the contingency plan and all revisions to the plan shall be:

(1)

submitted to the agency [ executive director ] with the application for registration;

(2)-(3)

(No change.)

(h)

(No change.)

§334.507.Emergency Procedures.

(a)-(d)

(No change.)

(e)

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, the emergency coordinator shall report his findings as follows.

(1)

(No change.)

(2)

The emergency coordinator shall notify as soon as possible, but not later than 24 hours: during working hours, the agency [ local Texas Natural Resource Conservation Commission ] regional office; during non-working hours, the Texas Emergency Response Unit at (512) 239-2507 or the State Toll Free Emergency Hotline at 1-800-832-8224; and if federal reportable spill quantities are exceeded, the National Response Center (using their 24-hour toll free number 1-800-424-8802). The report shall include:

(A)-(E)

(No change.)

(f)-(i)

(No change.)

(j)

The facility owner or operator shall notify the agency [ executive director ] and appropriate state and local authorities that the facility is in compliance with subsection (h) of this section before operations are resumed in the affected areas(s) of the facility.

(k)

The facility owner or operator shall note in the operating record the time, date, and details of any incident that requires implementing the contingency plan. Within 15 days after the incident, the facility owner or operator shall submit a written report on the incident to the agency [ executive director ]. The report shall include:

(1)-(8)

(No change.)

§334.508.Closure Requirements Applicable to Class A and Class B Facilities.

(a)

The facility owner or operator shall submit his closure plan to the agency [ executive director ] for approval with the application for registration.

(b)

(No change.)

(c)

During the closure period, the facility owner or operator of a petroleum-substance treatment facility shall:

(1)

continue the contaminant assessment or corrective action at the facility as directed by the agency [ executive director ];

(2)-(3)

(No change.)

(d)

When closure is completed, the facility owner or operator shall submit to the agency [ executive director ] for approval certification both by the facility owner or operator and by an independent qualified hydro geologist, geologist, or an independent registered professional engineer, that the facility has been closed in accordance with the specifications in the approved closure plan.

(e)-(f)

(No change.)

(g)

The facility owner or operator shall revise the closure cost estimate whenever a change in the closure plan increases the cost of closure. The revised closure cost estimate must [ shall ] be adjusted for inflation as specified in Chapter 37, Subchapter B of this title (relating to Financial Assurance Requirements for Closure, Post Closure, and Corrective Action).

(h)-(i)

(No change.)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on May 19, 2000.

TRD-200003498

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: August 1, 2000

For further information, please call: (512) 239-4712


Subchapter L. OVERPAYMENT PREVENTION

30 TAC §§334.531-334.535, 334.537

STATUTORY AUTHORITY

The amended sections are proposed under Texas Water Code (TWC), §5.103, which provides the commission authority to adopt any rules necessary to carry out its powers and duties under this code and other laws of this state and to adopt rules repealing any statement of general applicability that interprets law or policy; §5.105, which authorizes the commission to establish and approve all general policy of the commission by rule; and §26.011, which requires the commission to control the quality of water by rule. The amended sections are also proposed under TWC, §26.345, which provides the commission authority to develop a regulatory program and to adopt rules regarding underground storage tanks, and §26.351, which provides the commission authority to adopt rules establishing the requirements for taking corrective action in response to a release from an underground or aboveground storage tank.

The proposed sections implement TWC, Chapter 26, Subchapter I, Underground Storage Tanks.

§334.531.Responsibility of Recipients of Money from the PSTR Fund and Persons Paid by Recipients of Money from the Petroleum Storage Tank Remediation Fund.

(a)

The recipient of reimbursement shall cooperate fully with any audit or investigation by the agency [ executive director ] regarding the [ necessity of ] work performed and/or the costs charged and amounts paid.

(b)

(No change.)

(c)

Failure to provide the documentation or information requested by the agency to support the work performed, the costs charged, and/or amounts paid may result in a denial of the costs.

(d)

[ (c) ] No person shall knowingly submit false information to the agency [ executive director ] as part of any materials required to be submitted under this subchapter.

§334.532.Payments.

(a)

Payment by the agency [ executive director ] of a claim for money from the Petroleum Storage Tank Remediation [ PSTR ] Fund means that the claim is subject to post-payment audit.

(b)

By making payment of claims to eligible persons (see §334.310 of this title (relating to Requirements for Eligibility[ - Interim Period ])), the executive director makes no statement or admission that the payments are for necessary, reimbursable, or allowable costs, as those terms are defined by this chapter, nor that the corrective action taken was not in excess of agency [ Texas Natural Resource Conservation Commission ] cleanup standards for effective protection of the environment, public health and safety.

§334.533.Audits.

[ The executive director's staff shall audit a claim for payment as required by this section. ] Audits will be conducted in accordance with [ generally accepted ] auditing standards as provided by Texas Water Code, §26.35735 . [ Audits will be based on TNRCC cleanup standards and policies, procedures, guidelines, and rules in effect at the time the work was performed. An audit can also be conducted in a case of suspected fraud. For work conducted from the inception of the program until June 7, 1993, the commission will audit to ensure that only reasonable and allowable costs have been paid from the PSTR Fund. For work conducted after June 7, 1993, the commission will audit to ensure that only reimbursable and allowable costs have been paid from the PSTR Fund. ] Such audits may occur prior to or after claims have been paid. Such audits may [ shall ] include [ a minimum ] an investigation into whether activities performed and/or the amounts claimed were:

(1)-(3)

(No change.)

(4)

reimbursable under §334.560 of this title (relating to Reimbursable Cost Guidelines) and §334.309 of this title (relating to Reimbursable Cost) (for work performed on or after June 7, 1993), or reasonable (for work performed prior to June 7, 1993) [ as those terms are defined by this chapter ].

§334.534.Notice of Overpayment.

(a)

If the agency [ executive director ] conducts an audit or investigation and concludes that reimbursement of a claim was for an amount which exceeded the necessary, allowable , or reimbursable cost of corrective action, the agency [ executive director ] shall prepare a notice of overpayment. The notice of overpayment shall briefly summarize the findings of the audit [ executive director ] and identify the amounts which were overpaid.

(b)

The notice of overpayment will be delivered to the person who received money from the Petroleum Storage Tank Remediation (PSTR) [ PSTR ] Fund or to persons who were paid by the person who received money from the PSTR fund.

(c)

(No change.)

(d)

All checks rendered to return overpayments shall be made out to "The State of Texas-Petroleum Storage Tank Remediation Fund", and mailed to the address specified on the notice of overpayment. [ Director of the Administrative Audits and Financial Assurance Division, Audits and Program Coordination Section, Texas Natural Resource Conservation Commission, P.O. Box 13087, Austin, Texas 78711-3087 with the notation "LPST # ________, Application #________, overpayment return." ]

(e)

In cases where the agency [ executive director ] demonstrates fraud on the PSTR Fund, the recipient of a notice of overpayment may also be required to pay interest, calculated at New York Prime, plus two points, dating from the date of overpayment by the Texas Natural Resource Conservation Commission (or predecessor agency), to the date of repayment to the Texas Natural Resource Conservation Commission.

§334.535.Objections to the Notice of Overpayment and Formal Petition for Hearing.

(a)

(No change.)

(b)

The petition must [ shall ] assert which funds the party is entitled to retain, and why such funds represent claims for allowable, necessary, cost-effective, and/or reimbursable amounts or activities.

(c)-(d)

(No change.)

§334.537.Failure to Return Overpayment or Cooperate with Audit or Investigation.

(a)

If the overpayment has not been returned to the agency [ commission ], or objected to by the recipient, in accordance with the requirements of this subchapter, the executive director shall file a petition seeking an order from the commission to compel payment.

(b)-(c)

(No change.)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on May 19, 2000.

TRD-200003499

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: August 1, 2000

For further information, please call: (512) 239-4712