DEPARTMENT OF ENVIRONMENTAL QUALITY

                   WASTE AND HAZARDOUS MATERIALS DIVISION

                    UNDERGROUND STORAGE TANK REGULATIONS

(By authority conferred on the Michigan Department of  Environmental  Quality 
by Section 21106 of 1994 PA 451.)


R 29.2101   Adoption of standards by reference.
  Rule 1. The provisions of 40 C.F.R.  part   280,   subparts   A    to    H, 
(2006), entitled "Technical Standards and Corrective Action Requirements  for
 Owners and Operators of Underground Storage Tanks," as amended by 54  F.R.
November 9, 1989, pages 47081 to 47092, and as amended by 58  F.R.   February 
18,  1993, pages 9050 to 9059, are adopted by  reference  in  these  rules.
Copies  of  the adopted regulations may be obtained  from   the    Department 
of  Environmental Quality, Waste and Hazardous Materials Division,  P.O.  Box
 30241,  Lansing, Michigan 48909-7741, at a cost as of the time  of  adoption 
of these  rules  of  $50.00   per   copy   plus   $20.00    handling,    plus 
shipping,   or   from   the  Superintendent  of  Documents,  U.S.  Government 
Printing Office, Washington,  DC 20402, 202-512-1800, at a  cost  as  of  the 
time of adoption of these  rules  of $50.00.

  History:  1998-2000 AACS; 2008 AACS.


                 AMENDMENTS TO ADOPTED FEDERAL REGULATIONS
             SUBPART A. PROGRAM SCOPE AND INTERIM PROHIBITION


R 29.2103   Applicability.
  Rule 3. Section 280.10 is amended to read as follows:
Section 280.10. (a) The requirements of these rules apply to all owners   and 
operators of a UST system.
  (b) Deleted.
  (c) Deferrals. Subparts B, C, D, E, and  G  do  not  apply  to    any    of 
the following types of UST systems:
  (1) A wastewater treatment tank system.
  (2) Any  UST  system  which  contains  radioactive  material   and    which 
is regulated under the provisions of the atomic  energy  act  of   1954,   as 
amended, 42 U.S.C. §2011 et seq.
  (3) Any UST system that is part  of  an  emergency  generator   system   at 
nuclear power generation facilities regulated by the    nuclear    regulatory 
commission under the provisions of 10 C.F.R. part 50, appendix A, (1989).
  (4) Airport hydrant fuel distribution systems.
  (5) UST systems that have field-constructed tanks.
  (d) Deleted.
  (e) Prohibitions.
  (1) Upon notification by  the  implementing  agency,  a  person  shall  not 
deliver a regulated substance into any UST system if the system is   not   in 
compliance with  these  rules.   Such  notification  may  include   verbal or 
  written communication or an affixed  written  notification   on   the   UST 
system.
  (2)  A  person  shall   not   tamper   with,    remove,    or     disregard 
written notification affixed to the UST system.
  (3) Any UST system or practice that is not  in  compliance    with    these 
rules shall be considered to be in violation of these rules.
  (4) An owner and operator shall not continue to use a  UST   system    that 
is causing a release.  If the release is from the piping, then   the   piping 
shall be emptied of  any  liquid  product  until  repaired  and   tested   or 
replaced.   If the release is from the tank, or if  the   origin    of    the 
release  cannot  be determined, then the UST system  shall  be  expeditiously 
emptied of all  liquid product until repaired and tested or replaced.
  (f) An implementing agency may  order,  at  the  expense  of  the  owner, a 
tightness test of a UST system  in  accordance   with   the   provisions   of 
sections 280.43(c) and 280.44(b), the installation of dry  well  test  holes,
 or  the emptying of a UST  system  in  accordance  with  the  provisions  of 
section  280.71 when there is reason  to  believe  that  the  UST  system  is 
releasing a  regulated substance.
  (g) UST systems installed on or before January 3,  1991,   in    accordance 
with the provisions  of  40  C.F.R.  part  280,  (1988),  the  United  States 
environmental  protection  agency  UST  rules,  shall  be  deemed  to  be  in 
compliance with new UST system requirements.
  (h) A person may request a  variation  of  the  application  of   a    rule 
by applying to the  department  with  a  satisfactory  explanation   of   why 
compliance  is  not  possible.   If  the  requested  variation   involves   a 
substantive  rule  as opposed to a procedural rule, such as time   deadlines, 
then  the  department shall notify affected state and local agencies of   the 
nature  of,  and  the  reasons  for,  the  request  and  consider  any  input 
provided within  10  days  of receipt of the notice  by  affected  state  and 
local agencies.   The  department may make a variation upon finding that  the 
variation does not  result  in  an increased hazard to life, property, or the 
environment.  The  findings  shall be transmitted to  the  person  requesting 
the variation and shall be maintained at the facility.
  (i) A person aggrieved by a final  decision  of  the  department    on    a 
request for variance may appeal to the circuit court within 21  days  of  the 
decision.
  (j) All UST systems shall comply with R  29.4103  to  R  29.4104   and    R 
29.4201 to R  29.4319  of  the   Michigan   Administrative    Code.     These 
rules  shall supersede any conflicting provision of R 29.4103  to  R  29.4101 
and  R  29.4201 to R 29.4319 of the Michigan Administrative Code.
  (k) UST  systems  installed  on  or  before   the   effective    date    of 
these amendatory rules in accordance with the provisions of R 29.2101  to   R 
29.2169 then in effect shall be deemed to be  in  compliance    with    these 
amendatory rules.

  History:  1998-2000 AACS; 2008 AACS.


R  29.2105   Interim prohibition for deferred UST systems.
  Rule 5. Section 280.11 is amended to delete paragraph (b).
  Section 280.11(b) deleted.

  History:  1990 AACS.


R 29.2107   Definitions.
  Rule 7. Section 280.12 is amended to read as follows:
Section 280.12.
"Aboveground release" means any release to the surface of  the  land  or   to 
surface water.  This includes, but is  not  limited  to,  releases  from  the 
aboveground portion of an UST system and aboveground releases associated with 
overfills and transfer operations as the regulated substance moves to or from 
an UST system.
"Active UST system" means a UST system that has been in use within the   past 
12 months.
"Ancillary equipment" means any devices including, but not limited to,   such 
devices as piping, fittings, flanges, valves, and pumps used  to  distribute, 
meter, or control the flow of regulated substances to and from an UST.
"Approved" means acceptable to the department, unless specifically  indicated 
otherwise in the rule.
"Belowground release" means any release to the subsurface of the land or   to 
groundwater.  This includes releases  such  as  those  from  the  belowground 
portions of an underground  storage  tank  system  and  belowground  releases 
associated with overfills and transfer operations as the regulated  substance 
moves to or from an underground storage tank.
"Beneath the surface of the ground" means  beneath  the  ground  surface   or 
otherwise covered with earthen materials.
"Cathodic protection" is a technique to prevent corrosion of a metal  surface 
by making that surface the cathode of an electrochemical cell.  For  example, 
a tank system can be cathodically protected through the application of either 
galvanic anodes or impressed current.
"Cathodic  protection  tester"  means  a  person  who  can  demonstrate    an 
understanding of the principles and  measurements  of  all  common  types  of 
cathodic protection systems as applied to buried or  submerged  metal  piping 
and tank systems and who has education and experience  in  soil  resistivity, 
stray  current,  structure-to-soil  potential,   and   component   electrical 
isolation measurements of buried metal piping and tank systems.   The  person 
shall be certificated as being  qualified  by  the  national  association  of 
corrosion engineers (NACE) international, steel tank institute (STI), or  any 
other organization that is acceptable to the department.
"CERCLA" means the comprehensive environmental response,  compensation,   and 
liability act of 1980, as amended, 42 U.S.C. §9601 et seq.
"Compatible" means the ability of two or more substances to  maintain   their 
respective physical and chemical properties upon contact with one another for 
the design life of the tank system under conditions likely to be  encountered 
in the UST.
"Connected piping" means all underground piping, including valves,  fittings, 
joints, flanges, and flexible connectors attached to a tank  system,  through 
which regulated substances flow.  For the purpose  of  determining  how  much 
piping is connected to any individual UST system, the piping that joins 2 UST 
systems shall be allocated equally between the systems.
"Consumptive use," with respect  to  heating  oil,  means  consumed  on   the 
premises.
"Corrosion expert" means a person who, by reason of  thorough  knowledge   of 
the physical sciences and  the  principles  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.   The  person  shall  be 
certificated as being  qualified  by  the  NACE  international  as  a  senior 
corrosion technologist, a cathodic  protection  specialist,  or  a  corrosion 
specialist or be a registered professional engineer who has certification  or 
licensing that includes education and  experience  in  corrosion  control  of 
buried or submerged metal piping systems and metal tanks.
"Deminimis concentration." A UST meets the requirements  of  exclusion   (xv) 
for deminimis concentration of regulated substances, under the definition  of 
"UST system," if both of the following conditions are met:
  (i) The concentration of a regulated substance in  a  UST   system,    when 
mixed with a  nonregulated  substance,  is  less  than   110    gallons    of 
regulated substance when the storage tank is full.
  (ii) The UST system, of  any  size  or  capacity,  contains    less    than 
the reportable quantity of hazardous  substance  or   substances    in    the 
product stored, as identified in the United States  environmental  protection
 agency Table 302.4 list of hazardous substances and  reportable  quantities, 
when  the storage tank is full.
"Deminimis quantity" means that the total quantity of a hazardous   substance 
mixed with petroleum in a full UST is less than the reportable  quantity  for 
the substance as specified on the CERCLA list.  This does not apply to  motor 
fuel additives and blends that are added  at  the  refinery  or  shipped  via 
pipeline with the finished product, or both.
"Department" means the department of environmental quality.
"Dielectric  material"  means  a  material  that  does  not  conduct   direct 
electrical current. Dielectric coatings are used to electrically isolate  UST 
systems  from  the  surrounding  soils.   Dielectric  fittings  are  used  to 
electrically isolate portions of the UST system, for example, the  tank  from 
piping.
"Director" means the director of the department.
"Electrical equipment" means underground equipment that contains   dielectric 
fluid that is necessary for the operation of equipment such  as  transformers 
and buried electrical cable.
"Excavation zone" means the volume containing the tank system  and   backfill 
materials bounded by the ground surface, walls, and placed  at  the  time  of 
installation.
"Existing tank system" means a tank system used to contain  an   accumulation 
of regulated substances or for  which  installation  is  considered  to  have 
commenced if the owner or operator has obtained all federal, state, and local 
approvals or permits necessary to begin physical construction of the site  or 
installation of the tank system and  either  a  continuous  on-site  physical 
construction or installation program has begun  or  the  owner  operator  has 
entered into contractual obligations - that cannot be  canceled  or  modified 
without  substantial  loss.    These   obligations   include   the   physical 
construction at the site or installation of the tank system to  be  completed 
within a reasonable time.
"Farm tank" means a  tank  located  on  a  tract  of  land  devoted  to   the 
production of crops  or  raising  animals,  including  fish,  and  associated 
residences and improvements. A  farm  tank  shall  be  located  on  the  farm 
property.  "Farm" includes fish hatcheries,  rangeland,  and  nurseries  that 
have growing operations.
"Field-constructed tank" means a tank which has  a  capacity  of  more   than 
50,000 gallons and which is constructed on-site.
"Flow-through process tank" means a tank that forms an integral  part  of   a 
production process through which there is a steady, variable,  recurring,  or 
intermittent flow of materials during the operation of the  process  and  the 
tank is utilized to carry  out  or  control  the  heating,  cooling,  mixing, 
blending,  separating,  metering,  or  chemical  action  of  materials.   The 
processing is done on a regular basis and it is the primary function  of  the 
tank.  Flow-through process tanks do not include tanks used for  the  storage 
of materials before their introduction into the production process or for the 
storage of finished products or by-products from the  production  process  or 
tanks that are only used to recirculate materials.
"Free product" means a regulated substance that is present as  a   nonaqueous 
phase liquid (for example, liquid not dissolved in water).
"Gathering lines" means any pipeline, equipment, facility, or building   used 
in the transportation of oil or gas during oil or gas production or gathering 
operations.
"Hazardous substance UST system" means an underground  storage  tank   system 
that contains a  hazardous  substance  defined  in  section  101(14)  of  the 
comprehensive environmental response compensation and liability act of  1980, 
42 U.S.C. 9601, (but not including waste under subtitle C) or any mixture  of 
such substances and petroleum, unless the mixture is a petroleum product.
"Heating oil" means petroleum that  is  no.  1,  no.  2,  no.  4-light,  no.
4-heavy, no. 5 light, no. 5-heavy, and no. 6 technical grades  of  fuel  oil; 
other residual fuel oils, including navy special fuel oil and bunker  C;  and 
other fuels when used as substitutes for one of these fuel oils. Heating  oil 
is typically used in the operation of heating equipment, boilers, or furnaces.
"Hydraulic lift tank" means a tank holding hydraulic fluid for a  closed-loop 
mechanical system that uses compressed air  or  hydraulic  fluid  to  operate 
lifts, elevators, and other similar devices.
"Implementing agency" means the department or a  local  unit  of   government 
delegated authority under Part 211 of Act No. 451 of the Public Acts of 1994, 
as amended, being §324.21101 et seq. of the Michigan Compiled Laws.
"Integral secondary containment system" means a tank or piping  system   that 
has the primary containment tank  or  piping  system  fully  jacketed  by  an 
external, 360-degree,  unbonded,  nonmetallic  material,  that  provides  for 
external corrosion protection, liquid interstitial  space  communication  and 
monitoring, and product compatibility to contain a release from  the  primary 
containment tank or piping system.  The jacketing material for the tank shall 
be a minimum of 100 mils in thickness.  The  integral  secondary  containment 
system shall be acceptable to the department.
"In use" means that an underground storage tank or underground storage   tank 
system contains more than 2.5 centimeters (1 inch) of a regulated substance.
"Liquid trap" means sumps, well cellars, and other traps 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.  These liquid traps 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.
"Local unit of government" means  a  city,  village,  township,  county,   or 
governmental authority or any combination  of  cities,  villages,  townships, 
counties, or governmental authorities.
"Maintenance" means the normal operational upkeep to prevent an   underground 
storage tank system from releasing product.
"Motor fuel" means petroleum or a petroleum-based substance which  is   motor 
gasoline, aviation gasoline, no. 1 or no. 2 diesel  fuel,  or  any  grade  of 
gasohol and which is typically used in the operation of a motor vehicle.
"Motor fuel dispenser  system  replacement"  means  to  remove  an   existing 
dispenser and the equipment necessary to connect the  dispenser  to  the  UST 
system and install a new dispenser and the equipment necessary to connect the 
dispenser to the UST system.  This equipment includes the following:
  (a) Flexible connectors.
  (b) Risers.
  (c) Check valves, shear valves, and unburied risers.
  (d) Other transitional components that  are  beneath  the   dispenser   and 
connect the dispenser to the piping.
"New tank system" means a tank system which  will  be  used  to  contain   an 
accumulation of regulated substances and for which installation has commenced 
after December 22, 1988.  See also  "existing  tank  system."  "Noncommercial 
purposes" with respect to motor fuel, means, not for resale.
"On the premises where stored," with  respect  to  heating  oil,  means   UST 
systems located on the same property where the stored oil is used.
"Operational life" means the period beginning when installation of the   tank 
system has commenced until the time the tank system is properly closed  under 
subpart G.
"Operator" means a person who is presently, or was at the time of a  release, 
in control of, or responsible for, the operation of  an  underground  storage 
tank system.
"Out of service" (see definition of "out of use").
"Out of use" means that an underground storage tank system is  not  in  use.
(See definition of "in  use").   The  system  shall  be  reported  as  either 
temporarily closed or permanently closed.
"Overfill release" means a release that occurs when a tank is filled   beyond 
its capacity and results in a discharge of the regulated substance  into  the 
environment.
"Owner" means a person who holds, or at the time of a release held, a  legal, 
equitable, or possessory interest of any kind in an underground storage  tank 
system or in the property on which a UST system is located, such as, a trust, 
vendor, vendee, lessor, or lessee.   However,  "owner"  does  not  include  a 
person or a regulated financial institution acting in  a  fiduciary  capacity 
that, without participating in the management of an underground storage  tank 
system and without being otherwise engaged in petroleum production, refining, 
or  marketing  relating  to  the  underground  storage  tank  system,   holds 
indicative of ownership primarily to protect the person's  or  the  regulated 
financial institution's security interest in  the  underground  storage  tank 
system or the property on which it is located or to implement the terms of  a 
trust agreement.
"Person" means any of the following:
  (a) An individual.
  (b) A partnership.
  (c) A joint venture.
  (d) A trust.
  (e) A firm.
  (f) A joint stock company.
  (g) A corporation, including a government corporation.
  (h) An association.
  (i) A local unit of government.
  (j) A commission.
  (k) The state.
  (l) A political subdivision of a state.
  (m) An interstate body.
  (n) The federal government.
  (o) A political subdivision of the federal government.
  (p) Any other legal entity.
"Petroleum UST  system"  means  an  underground  storage  tank  system   that 
contains petroleum or a mixture of petroleum that has additives and deminimis 
quantities  of  other  regulated  substances.   The  systems  include   those 
containing any of the following:
  (a) Motor fuels.
  (b) Jet fuels.
  (c) Distillate fuel oils.
  (d) Residual fuel oils.
  (e) Lubricants.
  (f) Used oils.
"Pipe" or "piping" means a  hollow  cylinder  or  tubular  conduit  that   is 
constructed of nonearthen  materials  that  routinely  contains  and  conveys 
regulated substances from the tank or tanks to the dispenser or dispensers or 
other end use equipment and  includes  connected  piping.   Piping  does  not 
include any of the following:
  (a) Vent pipe.
  (b) Vapor recovery lines.
  (c) Fill lines that are not  remote  fill   lines   and   that    do    not 
routinely contain regulated substances.
"Piping replacement" means to remove and put back in more than 50% of  piping 
connected to a single underground tank.
"Pipeline facilities," including gathering lines means new and existing  pipe 
rights of way and any associated equipment, facilities, or buildings.
"Public water supply" has the same meaning as defined in Act No. 399 of   the 
Public Acts of 1976, as amended, being §325.1001  et  seq.  of  the  Michigan 
compiled Laws, and rules promulgated under Act No. 399 of the Public Acts  of 
1976.
"Regulated substance" means either of the following:
  (a)  A  substance  defined  in  section  101(14)  of  title   I   of    the 
comprehensive environmental response, compensation  and  liability   act   of 
1980,  Public  Law 96-510, 42 U.S.C. §9601  et  seq.,  but  not  including  a 
substance regulated as a hazardous waste under subtitle C of the solid  waste 
disposal  act  of  1965, title II of Public Law 89-272, as amended, 42 U.S.C.
§6921 to §6931 and §6933 to §6939b.
  (b) Petroleum, including crude oil or any fraction  of  crude   oil    that 
is liquid at  standard  conditions  of   temperature   and    pressure    (60 
degrees Fahrenheit and 14.7 pounds per square  inch   absolute).    Petroleum 
includes mixtures of petroleum that  have  deminimis  quantities   of   other 
regulated  substances  and   also   includes    petroleum-based    substances 
comprised  of  a complex blend of  hydrocarbons  derived  from   crude    oil 
through  processes  of separation, conversion, upgrading, or finishing,  such 
as any of the following:
  (i) Motor fuels.
  (ii) Jet fuels.
  (iii) Distillate fuel oils.
  (iv) Residual fuel oils.
  (v) Lubricants.
  (vi) Petroleum solvents.
"Release" means any  spilling,  leaking,  emitting,  discharging,   escaping, 
leaching, or disposing from  an  UST  into  groundwater,  surface  water,  or 
subsurface soils.
"Release detection" means determining  whether  a  release  of  a   regulated 
substance has occurred from the UST system into the environment or  into  the 
interstitial space between the  UST  system  and  its  secondary  barrier  or 
secondary containment around it.
"Repair" means to restore a tank  or  UST  system  component.  Repairs   that 
involve the replacement of more than 50% of the  length  of  any  underground 
piping between the tank and the dispenser at any 1 time shall be considered a 
replacement of the underground piping and shall meet the requirements of  the 
new UST system underground piping in section 280.20(b).
"Residential tank" means a tank  located  on  property  used  primarily   for 
dwelling purposes.
"SARA" means the superfund amendments and reauthorization act  of  1986,   42 
U.S.C. §9601 et seq. as amended by 1986 Public Law 99-499.
"Secondary containment," where required for a petroleum UST system, means  at 
least a 330-degree  double-wall  tank  or  a  360-degree  integral  secondary 
containment system and, for  piping,  a  360-degree  double-wall  pipe  or  a 
360-degree  integral  secondary  containment  system  or  other   method   of 
containment indicated in section 280.42(b)(5).  Secondary containment systems 
shall meet the requirements of section 280.42(b)(1), (2), and (4).
"Septic tank" is a watertight covered  receptacle  designed  to  receive   or 
process, through  liquid  separation  or  biological  digestion,  the  sewage 
discharged from a building sewer.   The  effluent  from  such  receptacle  is 
distributed for disposal through the soil and settled solids  and  scum  from 
the tank are pumped out periodically and hauled to a treatment facility.
"State fire marshal" deleted.
"Storm-water or wastewater collection system" means piping, pumps,  conduits, 
and any other equipment necessary  to  collect  and  transport  the  flow  of 
surface water runoff resulting from precipitation or domestic, commercial, or 
industrial wastewater  to  and  from  retention  areas  or  any  areas  where 
treatment is  designated  to  occur.   The  collection  of  storm  water  and 
wastewater does not include treatment, except where incidental to conveyance.
"Surface  impoundment"  means  a  natural  topographic  depression,   manmade 
excavation, or diked area formed primarily of earthen materials, although  it 
may be lined with man-made materials, that is not an injection well.
"Tank" means a stationary device designed  to  contain  an  accumulation   of 
regulated substances and constructed of non-earthen materials,  for  example, 
concrete, steel, or plastic, that provide structural support.
"Under-dispenser containment (UDC)" means containment underneath a  dispenser 
that will prevent leaks from the dispenser from reaching soil or groundwater.
Such containment must meet all of the following:
  (a) Be liquid-tight on its sides, bottom, and at any penetrations.
  (b) Be compatible with the substance conveyed by the piping.
  (c) Allow  for  visual  inspection  and  access  to  the   components    in 
the containment system and/or be monitored.
  (d) Prevent the intrusion of surface water.
"Underground area" means an underground room, such as  a  basement,   cellar, 
shaft, or vault, providing  enough  space  for  physical  inspection  of  the 
exterior of the tank situated on or above the surface of the floor.
"Underground release" means any belowground release.
"Underground storage tank replacement" means to remove an existing tank   and 
install a new tank.
"Underground storage tank system" or "UST system" or "tank system"  means   a 
tank or combination of tanks, including underground pipes  connected  to  the 
tank or tanks or underground ancillary equipment containment systems, if any, 
which is, was, or may have been, used to contain an accumulation of regulated 
substances and the volume of which, including the volume of underground pipes 
connected to the tank or tanks, is 10% or more beneath  the  surface  of  the 
ground.  An underground storage tank system  does  not  include  any  of  the 
following:
  (i) A farm or residential tank which has a capacity  of  1,100  gallons  or 
less and which is used for storing motor fuel for noncommercial purposes.
  (ii) A tank used for  storing  heating  oil  for  consumptive  use  on  the 
premises where the oil is stored.
  (iii) A septic tank.
  (iv) A pipeline facility,  including  gathering  lines,   regulated   under 
either of the following:
  (A) The natural gas pipeline safety act  of  1968,  Public   Law    90-481, 
as amended, 49 U.S.C. appendix §1671 to §1677, §1679A to  §1682,  and   §1683 
to §1687.
  (B) Sections 201 to 215 and 217 of the hazardous liquid   pipeline   safety 
act of 1979, as amended, title II of Public Law 96-129,  49  U.S.C.  appendix 
§2001.
  (v) A surface impoundment, pit, pond, or lagoon.
  (vi) A stormwater or wastewater collection system.
  (vii) A flow-through process tank.
  (viii) A liquid trap or associated gathering lines directly   related    to 
oil or gas production and gathering operations.
  (ix) A storage tank  situated  in  an  underground  area,   such    as    a 
basement, cellar, mine, drift, shaft, or  tunnel,  if  the  storage  tank  is 
situated on  or above the surface of the floor.
  (x) Any pipes connected to a tank that is described in subparagraphs (i)  to
  (ix) and (xi) to (xvi) of this paragraph.
  (xi) An underground storage tank system holding hazardous  wastes    listed 
or identified under the provisions of subtitle C of the solid waste  disposal 
act of 1965, title II of Public Law 89-272, as amended, 42 U.S.C.  §6921   to 
§6931 and §6933 to §6939b, or a mixture of the hazardous  waste   and   other 
regulated substances.
  (xii) A  wastewater  treatment  tank   system   that   is   part    of    a 
wastewater treatment facility  regulated  under  the  provisions  of  section 
307(b) of  title III or  section  402  of  title  IV  of  the  federal  water 
pollution control act  of 1972, as amended, 33 U.S.C. §1317 and §1342.
  (xiii)  Equipment  or  machinery  that  contains    regulated    substances 
for operational purposes, such as  hydraulic  lift  tanks   and    electrical 
equipment tanks.
  (xiv) An underground storage tank system  that  has  a  capacity   of   110 
gallons or less.
  (xv)   An   underground   storage   tank   system    that    contains     a 
deminimis concentration  of   regulated   substances.    Please    see    the 
definition   of "deminimis concentration."
  (xvi) An emergency spill or overflow  containment    underground    storage 
tank system that is emptied within 10 days after use.
"Underground tank" means an underground storage tank, except that such   term 
does not include underground piping.
"Upgrade" means the addition or retrofit of some systems, such  as   cathodic 
protection, lining, or spill and  overfill  controls,  to  an  existing  tank 
system to improve the ability  of  an  underground  storage  tank  system  to 
prevent the release of product.
"Wastewater treatment tank" means a tank that is  designed  to  receive   and 
treat an  influent  wastewater  through  physical,  chemical,  or  biological 
methods.

  History:  1998-2000 AACS; 2008 AACS.


R 29.2108  Testing methods.
  Rule 8.  Section 280.13 is deleted.
Section 208.13 Deleted.

  History:  1998-2000 AACS.


  SUBPART B. UST SYSTEMS; DESIGN, CONSTRUCTION, INSTALLATION, AND NOTIFICATION


R 29.2109   Performance standards for new UST systems.
  Rule 9. Section 280.20 is amended to read as follows:
Section 280.20. (a) Tanks. Each tank shall meet the definition of   secondary 
containment as defined in section 280.12 and shall be properly  designed  and 
constructed.  Any portion of a tank which is underground and which  routinely 
contains product shall be protected from corrosion as follows:
  (1) The tank shall be constructed of fiberglass-reinforced plastic.
  (2) The tank shall be constructed of steel and be  cathodically   protected 
in the following manner:
  (i) The tank shall be coated with a suitable dielectric material.
  (ii) Factory-installed or  field-installed  cathodic   protection   systems 
shall be designed by a corrosion expert.
  (iii)  Impressed  current  systems  shall  be  designed   to    allow     a 
determination of current operating status as required in section 280.31(c).
  (iv) Cathodic  protection  systems  shall  be  operated   and    maintained 
in accordance with section 280.31 or according to procedures  acceptable   to 
the department.
  (3)     The      tank      shall      be      constructed       of        a 
steel-fiberglass-reinforced-plastic  composite.  The  fiberglass   reinforced 
plastic shall be a minimum of  100  mils thick.
  (4) Deleted.
  (5) The tank construction and corrosion protection shall   be    determined 
by the department to be designed to prevent the release or threatened release 
of any stored regulated substance in a manner that is at least as  protective 
of human  health  and  the  environment  as   the    protections    specified 
in subdivisions(1) to (3) of this subsection.
  (b) Piping. All piping in contact with the ground   shall    be    equipped 
with secondary  containment  as  defined  in  section  280.12.   Any   piping 
that routinely contains regulated substances and is in  contact   with    the 
ground shall be  properly  designed,  constructed,   and    protected    from 
corrosion  in compliance with 1 of the following provisions:
  (1) The piping shall be constructed of fiberglass-reinforced plastic.
  (2) The piping  shall  be  constructed  of  metal  and   be    cathodically 
protected in the following manner:
  (i) The piping shall be coated with a suitable dielectric material.
  (ii) Field-installed cathodic protection systems  shall  be  designed  by a 
corrosion expert.
  (iii)  Impressed  current  systems  shall  be  designed   to    allow     a 
determination of current operating status as required in section 280.31(c).
  (iv) Cathodic  protection  systems  shall  be  operated   and    maintained 
in accordance with the provisions of section 280.31 or procedures  acceptable 
to the department.
  (v) Metallic secondary containment underground   piping    systems    shall 
have corrosion protection as specified in  subdivision  (2)(i)  to  (iv)   of 
this subsection.
  (3) Deleted.
  (4) The piping construction and corrosion protection shall  be   determined 
by the department to be designed to prevent the release or threatened release 
of any stored regulated substance in a manner that is at least as  protective 
of  human  health  and  the  environment  as  the  protections  specified  in 
subdivisions (1) and (2) of this subsection.
  (c)   The   following   provisions   apply   to    spill    and    overfill 
prevention equipment:
  (1) Except as provided in  subdivision  (2)  of   this    subsection,    to 
prevent spilling and overfilling associated with product transfer to the  UST 
system, owners and operators shall use the following spill    and    overfill 
prevention equipment:
  (i) Spill prevention equipment that will prevent the release  of    product 
to the environment when the transfer hose is detached from the   fill   pipe, 
for example, a spill catchment basin.
  (ii) Overfill prevention equipment for tanks that  have  a   capacity    of 
4,000 gallons or less shall do 1 of the following:
  (A) Automatically shut off flow into the tank when the  tank  is  not  more 
than 95% full.
  (B) Alert the transfer operator when the tank is not more than  90%    full 
by restricting the flow into the tank or by triggering a high-level alarm.
For suction pump systems, a pressure regulator valve  or    other    suitable 
device shall be installed in the suction piping if  the    flow    restrictor 
causes  a pressure buildup in the tank when activated.
  (iii) Overfill prevention equipment for tanks that have  a   capacity    of 
more than 4,000 gallons shall do 1 of the following:
  (A) Restrict the flow from the  delivery   truck   into   the    tank    30 
minutes before overfill.
  (B) Sound an audible alarm 1 minute before overfill.
  (C) Automatically shut off the flow into  the  tank  not  less   than    30 
seconds before overfill.
  (2) Owners and operators are  not  required  to   use   the    spill    and 
overfill prevention equipment specified  in   subdivision   (1)    of    this 
subsection  if alternative equipment  is  used  that  is  determined  by  the 
department to  be   at  least  as  protective  of  human  health   and    the 
environment  as  the  equipment specified in subdivision (1)(i)  or  (ii)  of 
this subsection.
  (d)  All  tanks  and  piping  shall  be  properly  designed,   constructed, 
installed, operated, and maintained in accordance with  R  29.4    5101    et 
seq.   of   the  Michigan  Administrative  Code.   All  of   the    following 
provisions  shall  also apply:
  (1) Except at an active UST  system  location  installed  on   or    before 
January 3, 1991, a person shall not install a UST system unless    the    UST 
system  is more than the following distances from the following items:
  (i) Fifty feet from a single-family drinking water well,  as   defined   in 
part 127 of Act No. 368 of the Public Acts  of  1978,  as   amended,    being 
§333.12701 et seq. of the Michigan Compiled  Laws,  and   rules   promulgated 
under  Act  No.
368 of the Public Acts of 1978.
  (ii) Seventy-five feet from a type IIb  and   III    noncommunity    public 
water well, as defined in Act No. 399 of the Public Acts of 1976, as amended, 
being §325.1001 et seq. of the Michigan Compiled Laws, and rules  promulgated 
under Act No. 399 of the Public Acts of 1976.
  (iii)  Two  hundred  feet  from  a  type  I  community   and    type    IIa 
noncommunity public water well, as defined in Act No. 399 of the Public  Acts 
of  1976,  as amended, being §325.1001 et seq. of  the   Michigan    Compiled 
Laws,  and  rules promulgated under Act No. 399 of the Public Acts  of  1976, 
and from  a  public surface water intake.
  (iv) Tanks may not be  installed  at  a   location   where    loads    from 
adjacent structures of any kind can be  transmitted   to   the    tank.     A 
structure  or foundation  of  a  structure  shall   not   be    erected    or 
constructed  within  a minimum of 10 feet from any point on the tank  surface 
unless footings  extend to the bottom of the tank excavation.
  (2) Deleted
  (3) Deleted
  (4) Deleted.
  (5) If the proposed location of a UST system  presents   an    unacceptable 
risk of contamination  to  surface  water,  wetlands,  or  an  aquifer,  then
 the department may require that the  UST  system   be   located    or    use 
secondary containment, or both, so as to eliminate or minimize the danger  of 
potential contamination or may disapprove a proposed UST installation.
  (6) Holiday testing of composite  tanks  shall   be    performed    on-site 
before installation, and  holidays  shall  be  repaired  according   to   the 
manufacturer's recommendations.
  (7) A double-wall UST system  or  a  single-wall  UST  system   that    has 
integral secondary containment shall  be   designed   to    provide    liquid 
communication through the interstitial space so that  any  release  from  the 
primary  wall  or any ingress (inflow) of groundwater through the outer  wall 
can be detected in the interstitial space.  These UST systems shall be tested 
as follows:
  (i) The tank manufacturer must be able to  demonstrate  to  the  department 
that the requirements of this subdivision and subdivisions  (1)  to  (6)   of 
this subsection are met.
  (ii) At the installation site for verifying the  integrity  of   both   the 
inner and the outer walls of the tank, the interstitial space shall be tested 
by  a positive pressure of not less than  3  pounds  per  square  inch  gauge 
(psig)  for a minimum of 1 hour.  The entire exterior shall  be  checked  for 
leaks  with  a suitable bubbling  leak  detection  solution  or  by  negative 
pressure (vacuum) of not less than 13 inches of mercury for a minimum  of  12 
hours, or 24 hours for tanks  larger  than  10,000  gallons,  with  a  vacuum 
decrease of not more  than  5 inches of mercury.  If a  hydrostatic  test  is 
chosen,  then  the  interstitial space shall  be  dried  after  the  testing, 
unless the liquid is part of  a  leak detection method for the tank  that  is 
acceptable  to  the  department.   All testing shall be  conducted  according 
to the manufacturer's recommendations.
  (iii) At the installation site for verifying  the  integrity  of  both  the 
inner and the outer walls of the underground piping,  the   primary    piping 
shall  be tested by a positive pressure of not less than  50  psig   for    a 
minimum  of  1 hour and the secondary piping shall be tested  by  a  positive 
pressure  of  not less than 5 psig for a minimum of 1  hour.    The    entire 
exterior  shall  be checked for leaks with a suitable bubbling leak detection 
solution.
  (8) Deleted.
  (9) Deleted.
  (10) In addition to  all  of  the  provisions  in   this    section,    new 
hazardous substance UST systems shall comply with the requirements of section 
280.42(b).
  (11) A person shall  not  install  or  replace  a  UST    system    without 
secondary containment, as defined in section 280.12.
  (12) A person shall not install or  replace  a   motor    fuel    dispenser 
system without UDC, as defined in section 280.12.   A  UDC  shall   only   be 
required  to be installed when piping (up to, and including, the  shear   and 
check  valve) below the dispenser is repaired or  replaced  or  the  concrete 
island supporting the dispenser is repaired or replaced.
  (e) Certification of installation.   All  owners  and    operators    shall 
ensure that 1 or more  of   the   following   methods    of    certification, 
testing,   or  inspection  are  used  to   demonstrate    compliance     with 
subsection(d)  of  this section by providing a certification of compliance on
 the  UST  registration form in accordance with section 280.22:
  (1) The installer has been certified by the tank and  piping   manufacturer 
or the tank liner has been certified by the tank lining manufacturer.
  (2) The installer has been certified or licensed by the department.
  (3)  The  installation  has   been   inspected   and   certified    by    a 
registered professional  engineer  who  has  education  and   experience   in 
UST  system installation.
  (4)  The  installation  has  been  inspected  and    approved    by     the 
implementing agency.
  (5) Deleted.
  (6) The owner and  operator  have  complied  with  another    method    for 
ensuring compliance with the provisions of subsection (d)  of  this   section 
that  is determined by the department to be at least as protective  of  human 
health and the environment as the  protections  specified    in    subsection 
(d)  of  this section.

  History:  1998-2000 AACS; 2008 AACS.


R 29.2111   Upgrading existing UST systems.
  Rule 11. Section 280.21 is amended to read as follows:
Section 280.21. (a) Alternatives allowed.  Except as specified in  subsection 
(d) of this section, not later than  December  22,  1998,  all  existing  UST 
systems shall comply with 1 of the following requirements:
  (1) New UST system performance standards under section 280.20.
  (2) The upgrading requirements of subsections (b) to (e) of this  section.
Hazardous substance UST systems  shall  be  upgraded  to  the  new  hazardous 
substance UST system requirements of section 280.20.
  (3)   Closure   requirements   under   subpart   G    of    these    rules, 
including applicable requirements for corrective action under  subpart  F  of 
these rules.
  (b) Tank upgrading requirements.  Steel tanks shall be upgraded   to   meet 
the provisions of section 280.20(d) and 1 of the following requirements:
  (1) Interior lining.  A tank may be upgraded once by internal   lining   if 
all of the following provisions are complied with:
  (i) The lining is installed  in  accordance  with  the   requirements    of 
section 280.33 and within  10  years  after  lining  and,  every   5    years 
thereafter,  the lined tank is  internally  inspected  in   accordance   with 
paragraph  (ii)(A)  to (I) of this subdivision and found to  be  structurally 
sound  with  the  lining still performing in  accordance  with  the  original 
design specifications.
  (ii) After the tank  is  internally  inspected  and  determined    to    be 
eligible for upgrading, the interior lining shall be applied  in   compliance 
with  the american petroleum institute (API) recommended practice 1631 or the
 national leak prevention  association  (NLPA)  standard  631  and  shall  be 
certified by the same  methods   specified   in   section    280.20(e).    In 
addition,  all  of  the following requirements shall be met:
  (A) Personnel shall be certified by a national   organization    acceptable 
to the department or certified in nondestructive testing, level I competence, 
in accordance  with  the  guidelines  specified  by  the   American   society 
for  nondestructive   testing   entitled   "Recommended    Practice    No.
SNT-TC-1A, Personnel  Qualification  and  Certification  in   Nondestructive
 Testing," including being certified in administering  training    to,    and 
examining  and retesting,  personnel  for  certification  of   tank    entry, 
surface   preparation,  inspection,  ultrasonic  thickness  gauging,   manway 
closure, and testing.
  (B) Equipment used for  ultrasonic  thickness  gauging   shall    have    a 
minimum measurement range of 0.050 inches  to  2  inches  and    a    minimum 
resolution  of 0.002 inches.
  (C) After the tank has been emptied, the internal  tank   surfaces    shall 
be cleaned as required for the use of ultrasonic thickness gauging.
  (D) For gauging measurement control,  tank  walls  and  heads   shall    be 
divided into sections.  Measurements for tank walls shall be   divided   into 
3-foot  by 3-foot sections beginning at the fill end of  the  bottom  of  the
 tank  and extending outward around the tank circumference and along the tank
 length.
Any additional area of the tank wall that is less than 3 feet by 3 feet shall 
be measured and treated as an additional section.  Measurement for tank heads 
shall divide the tank head into 4 equal divisions by establishing  horizontal 
and vertical diameter lines as axes.  Each division  shall  be  divided  into 
3-foot by 3-foot sections beginning at the center point and extending outward 
on each axis line.  Any additional area of the tank head that is less than  3 
feet by 3 feet shall be measured and treated as an additional section.
  (E) Section gauging.  Thickness gauging measurements shall be   taken    in 
the center of each section of the tank wall and heads.  Thickness readings of 
75% or  less   of   the   original   wall   thickness   as    specified    in 
underwriters laboratories standard 58 (UL 58) shall require  further  gauging 
as  prescribed for readings or more than 75% of the original  wall  thickness 
as specified  in UL 58 shall be reported as the average  wall  thickness  for 
the section.
  (F) Gauging  section  subdivisions.   Sections   that   have    a    center 
gauge measurement of 75% or  less  than  the  original  wall   thickness   as 
specified  in UL 58 shall be subdivided into 9 equal subdivisions.  Thickness
 gauging  for each of the subdivisions shall be taken at the center  of  each 
subdivision.
The subdivision thickness readings shall then be averaged to get the  average 
wall thickness for the section.
  (G) Thin wall target area  gauging.   Areas   that   have    a    thickness 
gauging measurements that are less  than   50%   of   the    original    wall 
thickness  as specified in UL 58 shall each receive 8 additional  readings.
Four of  the  8 readings shall be equally spaced readings and each of  the  4 
readings shall be at a 1 1/2 inch radius from the  initial  reading.   The  4 
other readings  shall be equally spaced readings each at a 3-inch radius from 
the initial reading.
The average of the 8 readings shall be reported as the average reading of the 
thin wall target area.
  (H) Perforations. Perforations shall be identified and reamed to  establish 
a minimum of 1/8 of an inch edge wall  thickness   before   any   repairs.
Eight thickness measurements shall be taken around  the  perforation  in  the
 same pattern as described in subparagraph (G) of this  paragraph.    The   8 
thickness measurements shall be averaged and the average  shall  be  reported
 for  the subdivision closest to the perforation.
  (I) Average tank wall thickness.  The average tank wall  thickness    shall 
be established by averaging  all  of  the  section  thicknesses  reported.
Thickness gauge readings shall be  reported  on  an   ultrasonic    thickness 
gauging  report form that conforms to the requirements of  subparagraphs  (D) 
to  (H)  of  this paragraph.
  (J) Thin wall.  The presence of any region that has less  than  1/8  of  an 
inch of metal due to internal or external corrosion or  both   internal   and 
external corrosion requires that the tank be provided  with   an   additional 
layer  of lining material or have a 1/8 of an inch thick  steel  plate  which 
has  minimum dimensions of 8 inches by 8 inches and which is  rolled  to  the 
contour of  the tank and welded on all seams in a continuous manner  covering 
the  thin  wall area of the tank.
  (K) A tank is eligible for upgrade  by  lining  only   if    the    average 
wall thickness as described in subparagraph (I) of this paragraph  was  found 
to  be more than 75% of the  original  wall  thickness  required  under   the 
UL  58 standard and if all of the following requirements are met:
  (a) None of the perforations shall be  larger  than  1  inch  in  diameter, 
except under the gauging opening, where the perforation  shall  be  not  more 
than 2 1/2 inches in diameter.
  (b) A tank shall not have more than 4 perforations  that  are   1/2    inch 
in diameter in any 1 square foot area of the tank internal surface.
  (c) A tank shall not have more than 20 perforations that  are   1/2    inch 
in diameter in any 500 square foot area.  The total  number  of  perforations 
shall not be more than 2 for every year of the age of the tank.
  (L) A tank  is  not  eligible  for  upgrade  if  it  does  not   meet   the 
requirements of subparagraph (K) of this paragraph  before  any  repairs.   A 
tank that  fails to meet the eligibility requirements for upgrade is required 
to  be  replaced or permanently closed in compliance with  subsection  (a)(3) 
of this section.
  (M) All internally inspected tanks that meet the  upgrading    requirements 
by internal lining shall be provided with a 1/4 inch thick   steel    striker 
plate which has minimum dimensions of 8 inches by 8  inches  and   which   is 
rolled  to the contour of the tank and welded on all seams  in  a  continuous 
manner  under the fill tube.
  (N) Interior tank walls shall be abrasive blasted  in    accordance    with 
the steel structures painting council (SSPC) standard SP 5  entitled   "White 
Metal Blast Cleaning" and shall not have any perforations.
  (O) A suspected release meeting the requirements of section  280.50   shall 
be reported if there are indications of a release or if   perforations    are 
found in the tank before the addition of tank lining.
  (iii)  All  lining  materials  and  procedures  shall  be    approved    by 
the department.  Each lining manufacturer shall maintain   and    submit    a 
current list of qualified applicators to the department.   Lining   thickness 
shall  be 100-mil dry film thickness or greater.
  (iv) The owner/operator shall notify the department of all   tank   linings 
not less than 15 days before any work is  performed,  unless  the  department
 is notified of and approves an emergency repair.   Notification    of    the 
lining shall be on a form  provided  by  the  department.   Lining  shall  be 
performed  by a qualified applicator.
  (v) The lining company shall provide the owner with a  complete  report  of 
the tank evaluation,   as   well   as   the   design,    installation,    and 
operational requirements of the lining system.  The report shall be signed by 
the  lining company responsible for the lining upgrade.
  (2) Cathodic protection.  A tank may be upgraded by  cathodic    protection 
if the  cathodic  protection  system    meets     the     requirements     of 
section 280.20(a)(2)(ii), (iii),  and  (iv)  and  all  of    the    following 
provisions  are complied with:
  (i) The integrity of the tank is ensured using 1 of the following methods:
  (A) The tank has been  installed  for  less  than  10   years    and    has 
been monitored for the past  12  months  for  releases  using  1    of    the 
release detection methods specified in section 280.43(d) to (h).
  (B) The tank has been installed for less than 10 years and   is    assessed 
for  corrosion  holes  by  conducting  2  tightness  tests  that   meet   the 
requirements of section 280.43(c).  The  first  tightness  test   shall    be 
conducted  before installing the  cathodic  protection  system.   The  second 
tightness  test  shall be conducted between 3 and 6 months  after  the  first 
operation of the cathodic protection system.
  (C) The tank is internally inspected and assessed to ensure that  the  tank 
is structurally sound and free of internal corrosion  and   corrosion   holes 
before installing the cathodic protection system.  All   personnel   involved 
in   the  internal  inspection  related  activities  shall  be  qualified  in 
accordance  with subdivision (1)(ii)(A) of this subsection and shall  conduct
 the  ultrasonic thickness gauging in accordance with subdivision  (1)(ii)(B) 
to  (G)  of  this subsection, with the average wall thickness established  by 
averaging all  the section thicknesses reported.  A tank is   eligible    for 
upgrade  by  cathodic protection alone if the average wall thickness  is  not 
less than  75%  of  the original  wall  thickness  specified  in  the  UL  58 
standard.
  (D) The tank is  assessed  to  determine  its  eligibility   for    upgrade 
by cathodic protection by other means determined  by  the    department    to 
prevent releases in a manner that is at least as protective to  human  health 
and  the environment as the protections specified in paragraph (i)(A) to  (C) 
of  this subdivision.
  (ii) The corrosion expert responsible for the design and  the  installation 
of the cathodic protection system shall provide the  owner  with  a  complete 
report of all of the results of any corrosion protection  investigations,  as 
well  as the design,  installation,  and  operational  requirements  of   the 
cathodic protection system.  The report shall  be  signed  by  the  corrosion 
expert.
  (iii) All internally inspected tanks that meet the  upgrading  requirements 
by cathodic protection shall be provided with a  1/4   inch    thick    steel 
striker plate which is not less than 8 inches by 8 inches and which is rolled 
to  the contour of the tank and welded on all seams in  a  continuous  manner 
under  the fill tube.
  (iv)  The   owner/operator   shall   notify   the   department    of    all 
cathodic protection upgrades not less than 15  days  before  any   work    is 
performed, unless the department is notified of  and  approves  an  emergency
 repair.
Notification of cathodic protection upgrade shall be on a  form  provided  by 
the department. Cathodic protection upgrade  shall  be  performed  under  the 
direct supervision and instruction of a corrosion expert.
  (v) A suspected release meeting the requirements of section  280.50   shall 
be reported when there are indications  of  a  release,  such  as  visual  or 
olfactory presence of product in the soil, before the  addition  of  cathodic 
protection.
  (3) Internal lining simultaneously combined  with  cathodic  protection.
A tank may be upgraded by both internal lining and cathodic  protection    if 
all of the following provisions are complied with:
  (i)  Not  more  than  1  month  is  allowed  between  the  lining  and  the 
installation of cathodic protection.
  (ii) The lining is installed  in  accordance  with  the   requirements   of 
section 280.33 and subdivision (1)(ii) to (v) of this subsection.
  (iii) Internal inspection requirements will be waived if the   lining   and 
the cathodic protection upgrade are done within 1 month of each other.
  (iv)  The  cathodic  protection  system  meets   the    requirements     of 
subdivision (2) of this subsection.
  (4) Other methods approved by the department.
  (c)  Piping  upgrading  requirements.   Metal  piping    which    routinely 
contains regulated substances and which  is  in  contact  with   the   ground 
shall  be cathodically protected in accordance with the provisions of section 
280.20(d) and shall meet the requirements of section 280.20(b)(2)(ii) to (v).
  (1) Replacement of underground piping  systems  in   contact    with    the 
ground shall include the installation of secondary containment as defined  in 
section 280.12.
  (2) The owner/operator shall notify the department,   in    writing,    not 
less than 15 days before any underground piping upgrade or total  replacement 
of an underground  piping  system,  unless  the  department    is    notified 
of,  and approves, an emergency replacement.
  (d) Spill  protection  and  overfill  prevention    equipment.     Existing 
UST systems shall comply with spill protection equipment  requirements    not 
later than January 3, 1992.  All existing UST systems shall comply  with  the 
new UST system  overfill  prevention  equipment  requirements  specified   in 
section 280.20(c).

  History:  1998-2000 AACS; 2008 AACS.


R 29.2113   Registration submittal requirements.
  Rule 13. Section 280.22 is amended to read as follows:
Section 280.22. (a) Owners shall register the UST system under part  211   of 
Act No. 451 of the Public Acts of 1994, as amended, being §324.21101 et  seq.
of the Michigan Compiled Laws, on forms provided by the department.  All  UST 
systems shall be registered and all fees paid before any UST is removed  from 
the ground or closed in place under subpart G of these rules, unless  written 
approval  is  obtained  from  the  department.   To  be  considered  properly 
registered, new owners of existing UST systems shall register the UST  system 
with the department within  30  days  of  ownership  on  a  registration  for 
underground storage tank form. New owners of a UST system who do  not  intend 
to use the UST to contain a regulated substance and who have not  placed  the 
UST temporarily out-of-service under subpart G of these rules shall empty the 
UST system within 45 days from acquiring ownership of the  UST  system.   If, 
however, the property has been condemned by the state  or  a  local  unit  of 
government, then the state or  local  unit  of  government  shall  empty  any 
underground storage tanks that are located on the property, within 45 days of 
taking possession.  All tanks shall be  emptied  under  section  280.71(b).
Also, any change in tank status or any change in the information required  on 
the form shall  be  reported  to  the  department  on  the  registration  for 
underground storage tank form within 30 days of the change.
  (b)  A  notice  of  proposed  installation    of    underground     storage 
tank registration form provided by the department shall be submitted  by  the 
owner to the department 45 days before installation of the UST  system.   The 
notice  of  UST  installation  form  shall  include  all  of  the   following 
information:
  (1) A plot map showing the distances of all of the  following   within   25 
feet of the UST system:
  (i) The location of buildings, public roadways, and railroad main lines.
  (ii) The location of property lines and easements.
  (iii) The location of existing aboveground storage tanks and  the  location 
of existing and proposed underground storage tanks, piping, and dispensers.
  (iv) The location of surface water and wetlands.
  (2) The location of all drinking water wells within  200  feet    of    the 
UST system.
  (3) Deleted.
  (4) Deleted.
  (5) Deleted.
  (6) The construction materials of the tank and piping.
  (7) The dimensions and capacity of each tank.
  (8) The name of the regulated substance to be stored.
  (9) A diagram of the UST system.
  (10) The manufacturer and part number of all components of the UST system.
  (c) Upon  receipt  of  the  proposed  installation    registration    form, 
the department may issue a review report within 30 days. If the review report
 is not issued within 30 days, then the  UST  system  may  be  brought   into 
use according to the submitted registration form and shall be  in  accordance 
with these rules.  The implementing agency shall  be  notified    not    less 
than   7  calendar  days  before  installation  of  the  UST   system.    The 
implementing agency shall inspect the  installation  within  2  working  days
 of  the  scheduled installation date, excluding Saturdays,   Sundays,    and 
holidays,  and  shall certify the installation if the requirements  of  these 
rules have been  met.
If the inspection is not made within 2 working days of the installation date, 
excluding Saturdays, Sundays, and holidays, then  the  UST  system  shall  be 
covered from sight and a notarized affidavit shall be submitted by the  owner 
to the implementing agency  attesting  to  the  fact  that  the  installation 
complied with the applicable rules under section 280.20(e).  The  UST  system 
shall not be  brought  into  use  until  it  has  been  registered  with  the 
department on the registration for underground storage tank form  under  part 
211 of Act No. 451 of the Public Acts of 1994, as amended,  being  §324.21101 
et seq. of the Michigan Compiled Laws.  Upon  request,  all  UST  information 
submitted to the department for review shall be returned  within  30  working 
days after the UST system has been brought into use.  The information may  be 
marked "CONFIDENTIAL - DO NOT COPY" at the time it is submitted.
  (d) Any owner or operator who meets the  requirements  of   a    designated 
clean corporate citizen in R 336.2401  to  R  336.2420  shall   be   entitled 
to  an expedited review report by  the  department  to  complete  the  review 
process.
  (e) An owner who is required to register a UST system   under    subsection 
(a) of  this  section  may  register  several  tanks  using  1   registration 
for underground storage tank form, but an owner who owns tanks   located   at 
more than 1 place of operation shall file a separate form for  each  separate 
place of operation.
  (f) For underground storage  tank  forms   required   to    be    submitted 
under subsection (a) of this section, an owner shall  provide  all   of   the 
applicable information for each tank registered.  For each  tank    installed 
or  upgraded after December 22, 1988, an owner shall also provide all of  the
 information required in the certification of compliance section of the form.
  (g) All owners and operators of  new  UST  systems  shall    certify,    in 
the registration for underground storage tank form, compliance with  all   of 
the following requirements:
  (1) The installation of tanks and piping under section 280.20(e).
  (2) Cathodic  protection  of  steel  tanks  and  piping    under    section 
280.20(a) and (b).
  (3) The financial responsibility rules under subpart H of these rules.
  (4) Release detection under sections 280.41 and 280.42.
  (h) An owner of  a  new  UST  system  shall  ensure  that   the   installer 
certifies, in the registration form, that the methods used  to  install   the 
tanks  and piping comply with the requirements in section 280.20(d).
  (i) Any person  who  sells  a  tank   intended   to   be   used    as    an 
underground storage  tank  shall  notify  the  purchaser  of  the   tank   of 
the  owner's registration obligations under subsection (a) of this section.
  (j) An owner of a UST system shall display proof of   valid    registration 
on the UST system or in the owner's place of business, or both, as   required 
by the department. The  proof  of  registration  shall  be  provided  by  the 
department upon receipt of proper registration and the payment of fees.

  History:  1998-2000 AACS; 2008 AACS.


                 SUBPART C. GENERAL OPERATING REQUIREMENTS


R 29.2115   Operations and maintenance of corrosion protection.
  Rule 15.  Section 280.31 is amended to read as follows:
  Section 280.31.  All  owners  and  operators  of  steel  UST  systems  with 
corrosion protection must comply with the following  requirements  to  ensure 
that releases due to corrosion are prevented for as long as the UST system is 
used to store regulated substances:
  (a) All corrosion protection systems must be  operated  and  maintained  to 
continuously provide corrosion protection to the  metal  components  of  that 
portion of the tank and piping that routinely  contain  regulated  substances 
and are in contact with the ground.
  (b) All UST systems equipped with  cathodic  protection  systems  shall  be 
inspected for proper operation by a qualified cathodic protection  tester  in 
accordance with the following requirements:
  (1) Frequency.  All  cathodic  protection  systems  shall  be  tested  upon 
completion of underground piping and tank installation and  backfilling,  but 
before placement of any permanent or hard surface over the UST system.
Testing shall be done within 6  months  of  installation  regardless  of  the 
surface over the UST system.  Testing shall also be conducted every  3  years 
after the initial testing.
  (2) Inspection criteria.  The criteria that  are  used  to  determine  that 
cathodic protection is  performing  adequately  shall  be  specified  by  the 
corrosion engineer who designs the system.  If the  corrosion  engineer  does 
not specify criteria, then  the  criteria  shall  be  as  specified  in  NACE 
international recommended practice RP-02-85-94.
  (c) UST systems with impressed current  cathodic  protection  systems  must 
also be inspected every 60 days to ensure the equipment is running properly.
  (d) For UST systems using cathodic protection, records of the operation  of 
the cathodic protection  must  be  maintained  (in  accordance  with  section 
280.34) to demonstrate compliance with  the  performance  standards  in  this 
section.
These records must provide the following:
  (1) The results of the last 3 inspections required in paragraph (c) of this 
section; and
  (2) The results  of  testing  from  the  last  2  inspections  required  in 
paragraph (b) of this section.
  (e) For galvanic anode systems equipped with  an  approved  buried  copper- 
copper sulfate reference electrode  that  can  be  read  at  a  surface  test 
station, the inspection may be made using a test measurement device  designed 
for  tank  owners/operators  not  meeting  the  cathodic  protection   tester 
definition.  The owner/operator shall be trained in the testing procedure and 
shall be familiar with the  testing  specifications  of  the  galvanic  anode 
system.   Tests  shall  be  made  in  accordance  with  the  requirements  of 
subsection (b) of this section.
  (f) Cathodic protection testing is not required for the following:
  (1) A composite tank which meets the requirements of  section  280.20(a)(3) 
and which is equipped with galvanic anodes installed by the tank manufacturer.
The  tank  shall  be  installed  and  tested  in  accordance   with   section 
280.20(d)(6).
  (2) A 360-degree double-wall steel tank equipped with galvanic anodes.
Interstitial monitoring of the tank shall be  conducted  in  accordance  with 
section 280.42(b)(1),(2), and (4).
  (g) Another method determined by the department to be equally protective.

  History:  1998-2000 AACS.


R 29.2117   Repairs.
  Rule 17,  Section 280.33 is amended to read as follows:
  Section 280.33.  (a) Alterations to UST systems for product  compatibility, 
repairs, or upgrades shall be  properly  conducted  in  accordance  with  the 
provisions of sections 280.20(d) and 280.21(b) and (c).
  (b) Repairs  to  fiberglass-reinforced  plastic  tanks  shall  be  made  in 
accordance with the provisions of section 280.20(d).
  (c) Metal pipe sections and fittings that have released product as a result 
of corrosion or  other  damage  shall  be  replaced.   Fiberglass  pipes  and 
fittings that  have  released  product  shall  be  replaced  or  repaired  in 
accordance with the manufacturer's specifications.  The  implementing  agency 
may require that replacements  or  repairs  be  made  where  damage  to  pipe 
sections or fittings is discovered and presents a significant risk of release.
  (d) Repaired or upgraded tanks and  piping  shall  be  tightness-tested  in 
accordance with the provisions of sections 280.43(c) and 280.44(b) within  30 
days after the date of the completion of the repair or  upgrade.   Exceptions 
may be made to this requirement if the repaired or upgraded  portion  of  the 
tank system is monitored monthly for release detection in accordance  with  a 
method specified in section 280.43(d) to (h) or if  another  test  method  is 
used that is determined by the department to be at  least  as  protective  of 
human health and the environment as the  protections  specified  in  sections 
280.43(c) and 280.44(b).
  (e) Within 6 months after the repair  of  any  cathodically  protected  UST 
system, the cathodic protection system shall be  tested  in  accordance  with 
section 280.31(b) and (c) to ensure that it is operating properly.
  (f) UST system owners and operators must maintain records  of  each  repair 
for  the  remaining  operating  life  of  the  UST  system  that  demonstrate 
compliance with the requirements of this section.

  History:  1998-2000 AACS.


R 29.2119   Reporting and recordkeeping.
  Rule 19.  Section 280.34 is amended to read as follows:
  Section 280.34.  (a) Reporting.  Owners or operators shall  submit  all  of 
the following information to the department:
  (1) Deleted.
  (2) Reports of all releases, including suspected releases (section 280.50), 
spills and  overfills  (section  280.53),  and  confirmed  releases  (section 
280.61).
  (3) The corrective action planned or taken that meets the  requirements  of 
part 213, of Act No. 451 of the  Public  Acts  of  1994,  as  amended,  being 
$324.21301 et seq. of the  Michigan  compiled  Laws,  including  all  of  the 
following information:
  (i) Initial abatement measures.
  (ii) Initial site characterization.
  (iii) Free product removal.
  (iv) Investigation of soil and groundwater cleanup.
  (v) Corrective action plan.
  (4) A notification before permanent closure or change in  service  (section 
280.71).
  (b) Recordkeeping.  Owners  and  operators  shall  maintain  the  following 
information:
  (1) Deleted.
  (2) Documentation of operation of corrosion protection  equipment  (section 
280.31).
  (3) Documentation of UST system repairs (section 280.33(f)).
  (4) Recent compliance with release detection requirements (section 280.45).
  (5) Results of the site assessment conducted at permanent closure  (section 
280.74).
  (c) Availability and maintenance of records.  Owners  and  operators  shall 
keep required records under either of the following provisions:
  (1) At the  UST  site  and  have  the  records  immediately  available  for 
inspection by the implementing agency.
  (2) At a readily available alternative site and  provide  the  records  for 
inspection to the implementing agency upon request.  In the case of permanent 
closure or change-in-service records required under  section  280.74,  owners 
and operators are also provided with the additional  alternative  of  mailing 
closure records to the department if they cannot be kept at the site or at an 
alternative site as indicated in subsection (b) of this section.

  History:  1998-2000 AACS.


                       SUBPART D. RELEASE DETECTION


R 29.2121   General requirements for all UST systems.
  Rule 21.  Section 280.40 is amended to read as follows:
  Section 280.40.  Upon purchase or acquisition of an existing UST system and 
upon request by the department, the owners and operators of the system  shall 
provide the department with not less than 2 years of leak  detection  records 
as required by section 280.45.  If the  records  are  unavailable,  then  the 
owner/ operator shall conduct  tightness  testing  as  provided  in  sections 
280.43(c) and 280.44(b).
  (a) Owners and operators of new and existing UST systems  shall  provide  a 
method, or combination of methods, of release detection that is in compliance 
with all of the following provisions:
  (1) Can detect a release from any portion of the  tank  and  the  connected 
underground piping that routinely contains product.
  (2) Is installed, calibrated, operated, and maintained in  accordance  with 
the manufacturer's instructions, including routine  maintenance  and  service 
checks for operability or running condition.
  (3) Meets the performance requirements in section 280.43  or  280.44,  with 
any performance claims and their manner of determination described in writing 
by the equipment manufacturer or installer.  In addition, except for  methods 
permanently installed before December 22, 1990, a  release  detection  method 
shall be capable of detecting the leak rate or  quantity  specified  for  the 
method in section 280.43(b), (c), and (d) or section 280.44(a) and (b) with a 
probability of detection of 0.95 and a probability of false alarm of 0.05.
  (b)  If  a  release  detection  method  operated  in  accordance  with  the 
performance standards in sections 280.43 and 280.44 indicates a  release  may 
have occurred, then owners  or  operators  shall  notify  the  department  in 
accordance with the provisions of subpart E of these rules.
  (c) Owners and operators of all UST systems  requiring  registration  under 
section 280.22 shall comply with this subpart  by  the  year  listed  in  the 
following table:

                SCHEDULE FOR PHASE IN OF RELEASE DETECTION

Year system was installed           Year when release detection is required
                                    (by December 22 of the year indicated)

                                     1989       1990    1991    1992     1993 
Before 1965 date unknown              RD          P 1965-69
                      P/RD 1970-74 P      RD 1975-79
                 P              RD 1980-88
       P                      RD


For new tanks after December 22, 1988, immediately upon installation.
P=Shall begin release detection for all pressurized piping in accordance with 
section 280.41(b)(1) or section 280.42(b)(4) as applicable for the  substance 
stored.
RD=Shall begin release detection for tanks and suction piping  in  accordance 
with section 280.41(a), section 280.41(b)(2), or section 280.42 as applicable 
for the substance stored.
  (d) The owners and operators  of  an  existing  UST  system  that  has  not 
complied with the requirements of this subpart  shall  complete  the  closure 
procedures in subpart G of these rules.

  History:  1998-2000 AACS.


R 29.2122   Requirements for petroleum UST systems.
  Rule 22.  Section 280.41 is amended to read as follows:
  Section 280.41. Owners and operators of petroleum UST systems shall provide 
release detection for tanks and piping as follows:
  (a) Tanks.  Tanks shall be monitored  at  least  once  every  30  days  for 
releases using 1 of the methods listed in section 280.43(d) to (h), except as 
follows:
  (1) UST systems that meet the performance standards in  section  280.20  or 
280.21 and the monthly inventory control requirements in section 280.43(a) or 
(b) shall use tank tightness testing conducted  in  accordance  with  section 
280.43(c) at least once every 5 years until December 22, 1998,  or  until  10 
years after the tank  is  installed  or  upgraded  under  section  280.21(b), 
whichever is later.  The initial  tank  tightness  test  shall  be  conducted 
before the initial use of the leak detection method for the tank system,  and 
the following tank tightness tests shall each be  within  5  years  from  the 
preceding test.
  (2) UST systems that do not  meet  the  performance  standards  in  section 
280.20 or 280.21 may use monthly inventory controls conducted  in  accordance 
with section 280.43(a) or (b) and annual tank tightness testing conducted  in 
accordance with section 280.43(c) until December  22,  1998,  when  the  tank 
shall be upgraded under section 280.21 or permanently  closed  under  section 
280.71.
The initial tank tightness test shall be conducted before the initial use  of 
the leak detection method  for  the  tank  system,  and  the  following  tank 
tightness tests shall each be within 1 year from the preceding test.
  (3) A tank which has a capacity of 550 gallons or less  and  which  is  not 
used for motor fueling may use weekly tank gauging  conducted  in  accordance 
with section 280.43(b).
  (b)  Piping.   Underground  piping  that   routinely   contains   regulated 
substances shall be monitored for releases in a manner that meets  1  of  the 
following requirements:
  (1)  Pressurized  piping.   Underground  piping  that   conveys   regulated 
substances under pressure shall be in compliance with both of  the  following 
requirements:
  (i) Be equipped with an automatic line leak  detector  in  accordance  with 
section 280.44(a).
  (ii) Have an annual  line  tightness  test  conducted  in  accordance  with 
section 280.44(b)(1) or have monthly monitoring conducted in accordance  with 
section 280.44(c).
  (2) Suction piping.  Underground piping that conveys  regulated  substances 
under suction shall have a line tightness test conducted at least once  every 
3 years and in accordance with section  280.44(b)(1),  use  a  liquid  sensor 
conducted in accordance with subdivision (3) of this subsection,  or  use  an 
applicable tank method conducted  in  accordance  with  section  280.44(c).
Release detection is not required for suction piping  that  is  designed  and 
constructed to meet all of the following standards:
  (i) The belowgrade piping operates at less than atmospheric pressure.
  (ii) The belowgrade piping is sloped so that the contents of the pipe  will 
drain back into the storage tank if the suction is released.
  (iii) Only 1 check valve is included in each suction line.
  (iv) The check valve is located directly below, and as close  as  practical 
to, the suction pump.
  (v) A method is provided that allows compliance  with  paragraphs  (ii)  to 
(iv) of this subdivision to be readily determined.
  (3) An underground pressurized or underground suction piping  system  which 
does not have an in-line leak detector and which is equipped  with  secondary 
containment, including the sumps, as  defined  in  section  280.12,  may  use 
interstitial monitoring to satisfy release detection requirements for  piping 
if conducted in accordance with all of the following provisions:
  (i) Liquid sensors shall be capable of detecting both regulated  substances 
and water.
  (ii)  Secondary  containment,  including  sumps,   shall   be    maintained 
liquidtight and  sealed  from  surface  water  runoff  and  subsurface  water 
infiltration.
  (iii) The liquid sensors shall shut off the flow of product in  the  piping 
system and trigger an audible alarm unless a mechanical  or  electronic  line 
leak detector installed in the primary piping  would  restrict  the  flow  of 
product in the pipe.
  (iv) The liquid sensors shall be installed in  every  sump,  including  the 
tank manway, and along the piping run to the furthest remote dispenser  at  a 
location where the sensors will  detect  product  or  water  flowing  in  the 
secondary pipe.
The pipe shall slope sufficiently towards the sensor.
  (4) Pressurized piping systems equipped with line leak detectors capable of 
detecting less than 0.08 gallons per  hour  leak  rate  at  normal  operating 
pressure with the probability of detection of 0.95 and a probability of false 
alarm of 0.05 will not be required to have a line tightness test conducted in 
accordance with section 280.44(b)(1).

  History: 1998-2000 AACS.


R 29.2123   Requirements for hazardous substance UST systems.
  Rule 23.  Section 280.42 is amended to read as follows:
  Section 280.42.  Requirements for hazardous substance UST systems.   Owners 
and operators of  hazardous  substance  UST  systems  shall  provide  release 
detection that meets the following requirements:
  (a) Release detection at existing UST systems shall meet  the  requirements 
for petroleum UST systems in 280.41.  By  December  22,  1998,  all  existing 
hazardous substance UST systems shall meet the release detection requirements 
for new systems in subsection (b) of this section.
  (b) Release detection at new hazardous substance UST systems shall meet all 
of the following requirements:
  (1) "Secondary containment system," as used in this section means a double- 
wall tank or integral secondary containment system which is  compatible  with 
the substance stored and which is designed,  constructed,  and  installed  to 
facilitate all of the following:
  (i) Contain regulated substances released from the tank system  until  they 
are detected and removed.
  (ii) Prevent the release of regulated substances to the environment at  any 
time during the operational life of the UST system.
  (iii) Be checked for evidence of a release not less than once every 30 days.
  (2) Double-wall tanks and integral secondary containment systems  shall  be 
designed, constructed, and installed to contain a release from any portion of 
the inner tank within the outer wall and to detect the failure of  the  inner 
and outer walls.
  (3) Underground piping shall be equipped with  secondary  containment  that 
satisfies the requirements of subdivision (1) of this  subsection,  which  is 
double-wall piping or an integral secondary containment system.  In addition, 
underground piping that conveys regulated substances under pressure shall  be 
equipped with an automatic line  leak  detector  or  interstitial  sensor  in 
accordance with section 280.41(b)(3) and shall  be  installed  to  contain  a 
release from any portion of the inner pipe  within  the  outer  wall  and  to 
detect the failure of the inner and outer wall.
  (4)  Other methods of  release  detection,  such  as  external  liners  and 
vaults, may be used if owners and operators comply with all of the  following 
provisions:
  (i) Demonstrate to the department that an alternative method can  detect  a 
release of the stored substance as effectively as any of the methods  allowed 
in section 280.43(b) to (h) can detect a release of petroleum.
  (ii) Provide information to the department on effective  corrective  action 
technologies, health risks, and  chemical  and  physical  properties  of  the 
stored substance and the characteristics of the UST site.
  (iii) Obtain approval from the department to use  the  alternative  release 
detection method before the installation and operation of the UST syst

  History:  1998-2000 AACS.


R 29.2125   Methods of release detection for tanks.
  Rule 25.  Section 280.43 is amended to read as follows:
  Section 280.43.  (a)  Inventory control.   Product  inventory  control,  or 
another test of equivalent performance, shall be conducted monthly to  detect 
a release of not less than 1.0% of flow-through plus 130 gallons on a monthly 
basis in the following manner:
  (1)  Inventory  volume  measurements  for   regulated   substance   inputs, 
withdrawals, and the amount still remaining in  the  tank  are  recorded  and 
computed each operating day.
  (2) The equipment and tank charts used are capable of measuring  the  level 
of product over the full range of the tank's height to the nearest 1/8 of  an 
inch.
  (3) The regulated substance inputs are reconciled with delivery receipts by 
measurement of the tank inventory volume before and after delivery.
  (4) Deliveries are made through a drop tube that extends to within 6 inches 
of the tank bottom.
  (5) Product dispensing is metered and recorded within the  local  standards 
for meter calibration or an accuracy of 6 cubic inches for every 5 gallons of 
product withdrawn.
  (6) The measurement of any water level in the bottom of the tank is made to 
the nearest 1/8 of an inch not less than once a month.
  (b) Manual tank gauging.   Manual  tank  gauging  shall  meet  all  of  the 
following requirements:
  (1) Each week, tank liquid level measurements are taken  at  the  beginning 
and ending of a period of not less than 36 hours during which liquid  is  not 
added to or removed from the tank.
  (2) Level measurements are based on  an  average  of  2  consecutive  stick 
readings at both the beginning and ending of the period.
  (3) The equipment used is capable of measuring the level  of  product  over 
the full range of the tank's height to the nearest 1/8 of an inch.
  (4) A leak is suspected and subject to the requirements  of  subpart  E  of 
these rules if the variation between the beginning  and  ending  measurements 
exceeds the weekly or monthly standards in the following table:

Nominal Tank Capacity         Weekly Standard           Monthly Standard
                                  (1 test)              (average of 4  tests) 
550 gallons or less              10 gallons                 5 gallons 551  to 
1,000 gallons             13 gallons                 7 gallons 1,001 to 2,000 
gallons           26 gallons                13 gallons

  (5) Only a tank that has a nominal capacity of 550 gallons or less may  use 
manual tank gauging as the sole method of release detection.  A tank that has 
a nominal capacity of 551 to 2,000 gallons may use  manual  tank  gauging  in 
place of inventory control under subsection (a) of this section.  A tank that 
has a nominal capacity of more than 2,000 gallons shall not use  manual  tank 
gauging to meet the requirements of this subpart, except in conjunction  with 
an automatic tank gauging system in accordance with subsection (d)(2) of this 
section.
  (6) A tank of any capacity that is used for motor vehicle fueling shall not 
use the manual tank gauging method to meet the requirements of this subpart.
  (c) Tank tightness testing.  Tank tightness testing,  or  another  test  of 
equivalent performance, shall be capable of detecting a  0.1  gallon-per-hour 
leak rate from any portion of the tank while accounting for  the  effects  of 
thermal expansion or the contraction of  the  product,  vapor  pockets,  tank 
deformation, evaporation or condensation,  and  the  location  of  the  water 
table.  Unless a method is evaluated  by  a  third  party  and  certified  as 
capable of testing manifolded tank systems, each tank in  a  manifolded  tank 
system can be tested only if it can be isolated from all other tanks  in  the 
manifolded tank system and the siphons or other liquid  transfer  devices  to 
the tank being tested are shut off.  Testers shall be trained  and  certified 
by the manufacturer or vendor of the testing method and  the  testers'  names 
shall appear on the qualified testers list provided by  the  manufacturer  or 
vendor to the department.  The department has the authority to disapprove any 
existing or future testing device or procedure if the  requirements  of  this 
subsection cannot be met.  The department has the  authority  to  prohibit  a 
person from performing tank tightness testing if  the  requirements  of  this 
subsection cannot be met.
  (d) Automatic tank gauging.
  (1) Equipment for automatic tank gauging that tests for the loss of product 
and conducts inventory control shall meet both of the following requirements:
  (i)  The  automatic  product  level  monitor  test   can   detect   a   0.2 
gallon-per-hour leak rate  from  any  portion  of  the  tank  that  routinely 
contains product.
  (ii) Inventory control, or  another  test  of  equivalent  performance,  is 
conducted in accordance with the  requirements  of  subsection  (a)  of  this 
section.
  (2) For waste oil UST(s) and a non-motor fueling system of any size that do 
not meet the criteria of hazardous wastes  listed  or  identified  under  the 
provisions of subtitle C of the solid waste disposal act of 1965, title II of 
Public Law 89-272, as amended, 42 U.S.C. ß ß 6921 to 6931 and 6933 to  6939b, 
automatic tank gauging equipment that tests for the loss of product  by  mass 
measurement probes and conducts inventory control is adequate as required  by 
this section if it meets both of the following requirements:
  (i)  The  automatic  product  level  monitor  test   can   detect   a   0.2 
gallon-per-hour leak rate  from  any  portion  of  the  tank  that  routinely 
contains product.
  (ii) Manual tank gauging is conducted in accordance with  the  requirements 
of subsection (b)(1) and (2) of this section.
  (3) Each tank in a manifolded tank system shall be provided  with  its  own 
automatic tank gauging probe that meets the requirements of subdivisions  (1) 
and (2) of this subsection and shall be isolated from all other tanks  during 
the testing process.
  (e) Vapor monitoring.  Prior approval by the department is required for the 
utilization of vapor monitoring as the primary method  of  release  detection 
for an underground storage tank or the underground piping system, or both, to 
verify that all of the following conditions are met:
  (1) The materials used as backfill are sufficiently  porous,  for  example, 
gravel, sand, or crushed rock to  readily  allow  diffusion  of  vapors  from 
releases in the excavation area.
  (2) The stored regulated substance, or a tracer compound placed in the tank 
system, is sufficiently volatile, for example, gasoline, to result in a vapor 
level that is detectable by the monitoring devices located in the  excavation 
zone in the event of a release from the tank.
  (3) The measurement of vapors by the  monitoring  device  is  not  rendered 
inoperative by the groundwater, rainfall, or soil  moisture  or  other  known 
interferences so that a release could go undetected for more than 30 days.
  (4) The level of background contamination in the excavation zone  will  not 
interfere with the method used to detect releases from the tank.
  (5) The vapor monitors are designed and operated to detect any  significant 
increase in concentration above background of the regulated substance  stored 
in the tank system, a component or components of that substance, or a  tracer 
compound placed in the tank system.
  (6) In the UST excavation zone, the site is assessed to  ensure  compliance 
with the requirements in subdivisions (1) to (4) of this  subsection  and  to 
establish the number and positioning of monitoring  wells  that  will  detect 
releases within the excavation  zone  from  any  portion  of  the  tank  that 
routinely contains project.
  (7) Monitoring wells are clearly marked and secured to  avoid  unauthorized 
access and tampering.  A monitoring well shall have a liquidtight  cover  and 
not less than 3-foot deep annular seal to prevent surface  water  runoff  and 
subsurface water infiltration into the monitoring well.
  (f) Groundwater monitoring.  Prior approval by the department  is  required 
for the utilization of  groundwater  monitoring  as  the  primary  method  of 
release detection for an underground storage tank or the  underground  piping 
system, or both, to verify that all of the following conditions are met:
  (1) The regulated substance  stored  is  immersible  in  water  and  has  a 
specific gravity of less than 1.
  (2) Groundwater is not more than 20 feet from the ground  surface  and  the 
hydraulic conductivity of the soil or soils between the UST  system  and  the 
monitoring wells or devices is not less than 0.01  cm/sec.   The  soil  shall 
consist of gravel, coarse to medium sands, coarse silts, or  other  permeable 
materials.
  (3) The slotted portion of the monitoring well casing shall be designed  to 
prevent migration of natural soils or filter pack into the well and to  allow 
entry of regulated substance on the water table into the well under both high 
and low groundwater conditions.
  (4) Monitoring wells are clearly marked and secured to  avoid  unauthorized 
access and tampering.  A monitoring well shall also have a liquidtight  cover 
to prevent surface water runoff from entering  the  monitoring  well  and  an 
annular seal extending from the ground surface to the top of the filter pack.
 All well construction and abandonment shall comply with part 127 of Act  No.
368 of the Public Acts of 1978, as amended, being ß 333.12701 et seq. of  the 
Michigan Compiled Laws, and rules promulgated under Act No. 368 of the Public 
Acts of 1978.
  (5) Monitoring wells or devices intercept the excavation  zone  or  are  as 
close to it as is technically feasible.
  (6) The continuous monitoring devices in accordance with subsection (e)  of 
this section or manual methods used through visual or  olfactory  observation 
can detect the presence of the regulated substance stored in the tank system, 
a component or components of the substance, or a tracer  compound  placed  in 
the tank system.
  (g) Interstitial monitoring.  Interstitial monitoring for  double-wall  UST 
systems and integral secondary containment systems shall be performed with  a 
testing method which is  conducted  in  accordance  with  the  manufacturer's 
recommendation and which can detect a release through the inner wall  in  any 
portion of the tank that routinely contains product.  A test may be conducted 
by positive or negative pressure, by  a  hydrostatic  test  that  utilizes  a 
liquid in the interstice, or by a continuous monitoring sensor.  If a  sensor 
is used, the sensor shall be capable of  detecting  the  product  stored  and 
water, and the interstice shall be  sealed  from  surface  water  runoff  and 
subsurface water infiltration.
  (h) Other methods.  The department may approve another  method  of  monthly 
monitoring if a person can demonstrate, by  clear  and  convincing  evidence, 
that the method can detect a release as effectively as  any  of  the  methods 
allowed in subsections (d) to (g) of this section.  In comparing methods, the 
department shall consider the size of the release that the method can  detect 
and the frequency and reliability with which it can be detected.  A detection 
capability of 0.2 gallons  per  hour  release  rate  with  a  probability  of 
detection of 0.95 and a probability of false alarm of  0.05  will  be  deemed 
sufficient to  approve  a  monthly  monitoring  method.   If  the  method  is 
approved, the owner and operator shall comply with any conditions imposed  by 
the department on the use of the method to ensure  the  protection  of  human 
health and the environment.

  History:  1998-2000 AACS.


R 29.2126  Methods of release detection for piping.
  Rule 26. Section 280.44 is amended to read as follows:
  Section 280.44.  Each method of release detection for piping used  to  meet 
the requirements of section 280.41 shall be conducted in accordance with  all 
of the following provisions:
  (a) Automatic line leak detectors.  A methods that alerts the  operator  to 
the presence of a leak by restricting or shutting off the flow  of  regulated 
substances through piping or triggering an audible or  visual  alarm  may  be 
used only if the method detects leaks of 3 gallons per hour at 10 pounds  per 
square inch line pressure within 1 hour.  An annual test of the operation  of 
the leak detector shall be conducted in accordance  with  the  manufacturer's 
requirements.
  (b)  With  respect  to  line  tightness  testing,  both  of  the  following 
provisions:
  (1) Line tightness testing shall be capable of detecting a 0.1 gallons  per 
hour leak rate at 1 1/2 times the operating pressure.
  (2) Secondary containment piping shall be tested by a positive pressure  of 
not less than 5 psig for a minimum of 1 hour.
  (c) Applicable tank methods.  Any of the methods in  section  280.43(e)  to 
(h) may be used if they are designed to detect a release from any portion  of 
the underground piping that routinely contains regulated substances.

  History: 1998-2000 AACS.


R 29.2127   Release detection recordkeeping.
  Rule 27.  Section 280.45 is amended to read as follows:
  Section 280.45.  All UST system owners and operators shall maintain records 
in  accordance  with  section  280.34  demonstrating  compliance   with   all 
applicable requirements of this subpart.  The records shall  include  all  of 
the following:
  (a) All written performance claims  pertaining  to  any  release  detection 
system used and the manner in which the claims have been justified or  tested 
by the equipment manufacturer or installer shall be maintained  for  5  years 
from the date of installation  or  for  another  reasonable  period  of  time 
determined by the department.
  (b) The results of any sampling, testing, or monitoring shall be maintained 
for not less than 2 years or for another reasonable period of time determined 
by the  department.   The  results  of  tank  and  piping  tightness  testing 
conducted in accordance  with  sections  280.43(c)  and  280.44(b)  shall  be 
retained for not less than 5 years.
  (c) Written documentation of all calibration, maintenance,  and  repair  of 
release detection equipment permanently located on-site shall  be  maintained 
for not less than 2 years after  the  servicing  work  is  completed  or  for 
another reasonable time period determined by the department.   Any  schedules 
of required calibration and maintenance provided  by  the  release  detection 
equipment manufacturer shall be  retained  for  5  years  from  the  date  of 
installation.

  History:  1998-2000 AACS.


       SUBPART E. RELEASE REPORTING, INVESTIGATION, AND CONFIRMATION

R 29.2129    Reporting of suspected releases.
  Rule 29. Section 280.50 is amended to read as follows:
  Section 280.50.  Owners or operators of UST systems, or  a  person  who  is 
employed by the owner or operator, shall report to the department in a manner 
specified in section 280.61 and follow the procedures  specified  in  section 
280.52 when any of the following conditions occur:
  (a) The discovery by owners and operators or others of  released  regulated 
substances at the UST site or in the surrounding area, such as  the  presence 
of free product or vapors in soils, basements, sewer and utility  lines,  and 
nearby surface water.
  (b) Unusual operating conditions observed by owners and operators, such  as 
the erratic behavior of product dispensing  equipment,  the  sudden  loss  of 
product from the UST system, or any unexplained  presence  of  water  in  the 
tank, unless system equipment is found to be defective but not leaking and is 
immediately repaired or replaced.
  (c) Monitoring results from  a  release  detection  method  required  under 
sections 280.41 and 280.42 that indicate a release may have occurred,  unless 
either of the following conditions is satisfied:
  (1) The monitoring device is found  to  be  defective  and  is  immediately 
repaired, recalibrated,  or  replaced  and  additional  monitoring  does  not 
confirm the initial result.
  (2) In the case of inventory control, a  second  month  of  data  does  not 
confirm the initial result. A person who is employed by the owner or operator 
may do the reporting on behalf of the owner or operator; however,  the  owner 
or operator has the final responsibility to make sure the report is made.

  History:  1998-2000 AACS.


R 29.2131   Release investigation and confirmation steps.
  Rule 31.  Section 280.52 is amended to read as follows:
  Section 280.52.  Unless corrective action is initiated in  accordance  with 
subpart F of these rules and part 213 of Act No. 451 of the  Public  Acts  of 
1994, as amended, being ß 324.21301 et seq. of the  Michigan  Compiled  Laws, 
owners and operators shall immediately investigate and confirm all  suspected 
releases of regulated substances requiring reporting  under  section  280.50, 
within 7 days or within another  reasonable  time  period  specified  by  the 
implementing agency, using either of the following steps or another procedure 
approved by the department:
  (a) System test.  Owners and operators shall conduct  tests,  according  to 
the requirements for tightness testing in sections 280.43(c)  and  280.44(b), 
that determine whether a leak exists in the UST system.  Owners and operators 
shall repair, replace, or upgrade the UST system and begin corrective  action 
in accordance with the provisions of subpart F of these rules and part 213 of 
Act No. 451 of the Public Acts of 1994, as amended, being ß 324.21301 et seq.
of the Michigan Compiled Laws,  if  the  test  results  for  the  UST  system 
indicate that a leak exists.  Further investigation is not  required  if  the 
test results for the UST system do not indicate that a  leak  exists  and  if 
environmental contamination is not the  basis  for  suspecting  a  release.
Owners and operators shall conduct a site check as described  in  subdivision 
(b) of this section if the test results for the UST system  do  not  indicate 
that a  leak  exists,  but  environmental  contamination  is  the  basis  for 
suspecting a release.
  (b) Site check.  Owners and operators shall measure for the presence  of  a 
release where contamination is most likely to be present at the UST site.  In 
selecting samples types, sample locations, and  measurement  methods,  owners 
and operators shall consider the nature of the stored substance, the type  of 
initial alarm or cause for suspicion, the type  of  backfill,  the  depth  of 
groundwater, and other factors appropriate for identifying the  presence  and 
source of the release.  If the test results for the excavation  zone  or  the 
UST site indicate that a release has  occurred,  owners  or  operators  shall 
begin corrective action in accordance with subpart F of these rules and  part 
213 of Act No. 451 of the Public Acts of 1994, as amended, being ß  324.21301 
et seq.
of the Michigan Compiled Laws.  If the test results for the  excavation  zone 
or the UST site do not indicate that a release  has  occurred,  then  further 
investigation is not required.

  History:  1998-2000 AACS.


R 29.2133   Reporting and cleanup of spills and overfills.
  Rule 33.  Section 280.53 is amended to read as follows:
  Section 280.53.  (a) Owners or operators of UST systems shall  contain  and 
immediately clean up a spill or overfill, report to  the  department  in  the 
manner specified in section 280.61, and begin corrective action in accordance 
with subpart F of these rules and part 213 of Act No. 451 of the Public  Acts 
of 1994, as amended, being ß 324.21301 et seq. of the Michigan Compiled Laws, 
in either of the following cases:
  (1) A spill or overfill  of  petroleum  that  results  in  a  release  into 
groundwater, surface water, or subsurface soils.
  (2) A spill or overfill of a hazardous substance that results in a  release 
into groundwater, surface water, or subsurface soils.
  (b) Owners and operators of UST systems shall contain and immediately clean 
up a spill or overfill of petroleum and a spill or overfill  of  a  hazardous 
substance.

  History:  1998-2000 AACS.


     SUBPART F. RELEASE RESPONSE AND CORRECTIVE ACTION FOR UST SYSTEMS
               CONTAINING PETROLEUM OR HAZARDOUS SUBSTANCES


R  29.2135   General.
  Rule 35. Section 280.60 is deleted.
  Section 280.60 deleted.

  History:  1990 AACS.


R 29.2137   Initial response.
  Rule 37.  Section 280.61 is amended to read as follows:
  Section 280.61.  Upon confirmation of a release in accordance with  section 
280.52 or after a release from the UST system  is  identified  in  any  other 
manner, owners or operators, or a person employed by the owners or operators, 
shall perform the following initial response actions within  24  hours  of  a 
release or within  another  reasonable  period  of  time  determined  by  the 
department:
  (a) Report the release to  the  department  by  telephone,  in  person,  by 
electronic mail, or by facsimile.  To meet the requirements of this  section, 
the report shall contain, at a minimum, all of the following information:
  (1) Name of the person reporting the release.
  (2) Date and time the release was discovered.
  (3) Date and time the release was reported.
  (4) Location of the release, including the facility name, address,  county, 
and township.
  (5) The owner's or operator's names and mailing addresses.
  (6) Name of the contact person and phone number.
  (7) Release information, including the type of construction  of  the  tank, 
the tank capacity, the substance released, and the site  condition  that  led 
the owner or operator to believe a release had occurred.
  (b) If the site assessment report required under section 280.72 is the only 
indication that an owner and operator has  of  a  release  and  if  the  site 
assessment report is submitted within  45  days,  then  the  site  assessment 
report shall be considered valid notification of the release.
  (c) A person who is employed by the owner or operator may do the  reporting 
on behalf of the owner or operator; however, the owner or  operator  has  the 
final responsibility to make sure the report is made.

  History:  1998-2000 AACS.


R 29.2139   Notifications.
  Rule 39.  Section 280.62 is amended to read as follows:
  Section 280.62.  Upon receiving a report of a release, the department  will 
send a confirmation of receiving the release report to the owner or  operator 
within 14 days.

  History:  1998-2000 AACS.


R  29.2141   Initial site characterization.
  Rule 41. Section 280.63 is deleted.
  Section 280.63 deleted.

  History:  1990 AACS.


R  29.2143   Free product removal.
  Rule 43. Section 280.64 is deleted.
  Section 280.64 deleted.

  History:  1990 AACS.


R  29.2145   Investigations for soil and groundwater cleanup.
  Rule 45. Section 280.65 is deleted.
  Section 280.65 deleted.

  History:  1990 AACS.


R  29.2147   Corrective action plan.
  Rule 47. Section 280.66 is deleted.
  Section 280.66 deleted.

  History:  1990 AACS.


R  29.2149   Public participation.
  Rule 49. Section 280.67 is deleted.
  Section 280.67 deleted.

  History:  1990 AACS.


             SUBPART G. OUT-OF-SERVICE UST SYSTEMS AND CLOSURE

R 29.2151   Temporary closure.
  Rule 51. Section 280.70 is amended to read as follows:
  Section 280.70.  Temporary closure.  (a) A UST system shall  be  considered 
temporarily closed if it is empty for more than 30 continuous days and it  is 
intended to be brought back into use within 12 months.  Owners and  operators 
shall continue the operation  and  maintenance  of  corrosion  protection  in 
accordance with section 280.31 and any release detection in  accordance  with 
subpart D of these rules.  However, release detection is not required if  the 
UST system is empty.  The UST system is empty when all  materials  have  been 
removed  using  commonly  employed  practices  so  that  not  more  than  2.5 
centimeters (1 inch) of residue or 0.3% by weight of the  total  capacity  of 
the UST system remains in the system.  The provisions of subparts E and F  of 
these rules shall be complied with if a release is suspected or  confirmed.
The owner shall provide the department with written notification,  using  the 
registration form provided by the department, indicating that the UST  system 
will be temporarily closed for not more than 12 months  and  that  the  owner 
intends to bring the UST system back into service within the 12-month period.
  (b) If a UST system is temporarily closed, then the  owners  and  operators 
shall also comply with both of the following requirements:
  (1) Leave vent lines open and functioning
  (2) Cap and secure all other lines, pumps, manways, and ancillary equipment.
  (c) If a UST system is temporarily closed for more than 12 months, then the 
owners and operators shall permanently close the UST system if  it  does  not 
meet either the performance standards specified in section 280.20 for new UST 
systems or the upgrading requirements specified  in  section  280.21,  except 
that the spill and overfill equipment requirements do not have to  be  met.
Owners and operators shall permanently close the substandard UST  systems  at 
the end of the 12-month period in accordance with sections 280.71 to  280.74, 
unless the department provides an extension of the 12-month temporary closure 
period. The request shall be received in writing not less than 30 days before 
the 12-month deadline ends.  The extension shall not  be  for  more  than  12 
months.  Owners and operators shall complete a site assessment in  accordance 
with section 280.72 before applying for an extension.
  (d) The owner of a temporarily closed UST system is subject to payment of a 
registration fee under part 211 of Act No. 451 of the Public Acts of 1994, as 
amended, being ß 324.21101 et seq. of the Michigan Compiled Laws.
  (e) Immediately before bringing a UST systems back into use, the owners and 
operators  shall  perform  tank  and  piping  tightness  tests  conducted  in 
accordance with the requirements of sections 280.43(c) and 280.44(b) on a UST 
system that is temporarily closed for 12 months or  more  and  shall  confirm 
that the UST system is tight.

  History:  1998-2000 AACS.


R 29.2153   Permanent closure and changes in service.
  Rule 53.  Section 280.71 is amended to read as follows:
  Section 280.71.   (a)  Not  less  than  30  days  before  beginning  either 
permanent closure or a change in service under subsections  (b)  and  (c)  of 
this section, or within another reasonable  time  period  determined  by  the 
department, an owner and operator, or a person  employed  by  the  owner  and 
operator, shall notify the department of the owner's and operator's intent to 
permanently close or make the change in service,  unless  the  action  is  in 
response to corrective action.
The 30-day notification requirement may be waived  by  the  department.   The 
required assessment of the excavation zone  under  section  280.72  shall  be 
performed after notifying  the  department,  but  before  completion  of  the 
permanent closure or change in service.  The owner and operator has the final 
responsibility to make sure the notification is given.
  (b) A UST system shall be considered permanently closed when the UST system 
is empty for 30 days or more and does not meet the requirements of  temporary 
closure specified in  280.70  or  the  requirements  for  change  in  service 
specified in 280.72.  To permanently close a  tank,  an  owner  and  operator 
shall empty and clean it by removing all liquids and accumulated  sludge  and 
purge it of all vapors.  All tanks closed permanently shall be  removed  from 
the ground.  If building structures exist above or near the tank, or in close 
proximity to the  tank  such  that  removal  would  jeopardize  the  building 
structure integrity, the owner or operator may close the UST system in place.
 To close the UST system in place, the tank shall be emptied and  cleaned  as 
defined in this subsection and filled with an inert solid material and a site 
assessment shall be  conducted  under  section  280.72.   Piping  permanently 
removed from service shall be emptied of all liquids and sludge, purged,  and 
capped or  shall  be  removed  from  the  ground.   Unless  approved  by  the 
department, the owners and operators of an improperly closed UST system shall 
close the UST system in accordance with this section and sections  280.72  to 
280.74.  A tank is considered improperly closed in place if removal would not 
cause structural damage to any building or major structure.
  (c) The use of a UST system to store a nonregulated substance is considered 
a change in service.  Owners and operators are required to provide  a  30-day 
notice in accordance with subsection (a) of this section. This  notice  shall 
be on a form provided by the department.  Owners and operators or their agent 
shall then empty and clean the tank and piping by  removing  all  liquid  and 
accumulated sludge and conduct a site assessment in accordance  with  section 
280.72.
  (d) Notification of permanent closure or a change in service,  as  required 
under subsection (a) of this section, shall be on  a  form  provided  by  the 
department, and the owner and operator  shall  complete  the  information  as 
specified on the form.  The owner and operator shall  notify  the  department 
not less than 2 working days, excluding  Saturdays,  Sundays,  and  holidays, 
before the actual permanent closure or change in service of the UST system.
  (e) Upon notification received under subsection (d) of  this  section,  the 
department shall forward an approval notice to the owner  or  operator.   The 
approval is valid for 6 months.  If the UST system is not closed or a  change 
in service does not occur within the 6  month  period,  then  the  owner  and 
operator shall resubmit the notification form specified in subsection (d)  of 
this section.
  (f) Within 30 days of permanent closure or a change in service of  the  UST 
system, the owner and operator shall sign and submit an amended  registration 
for underground storage tank form or, in place  of  an  amended  registration 
form required under section 280.22, an owner or operator may  submit  a  site 
assessment form, signed by the owner, within 45 days of permanent closure  or 
a change in service.

  History:  1998-2000 AACS.


R 29.2155   Assessing site at closure or change in service.
  Rule 55.  Section 280.72 is amended by to read as follows:
  Section 280.72. (a) Before permanent closure or  a  change  in  service  is 
completed, owners and operators shall measure for the presence of  a  release 
where contamination is most likely  to  be  present  at  the  UST  site.   In 
selecting sample types, sample locations and measurement methods, owners  and 
operators shall consider the method of closure,  the  nature  of  the  stored 
substance, the type of backfill, the depth to ground water, and other factors 
appropriate for identifying the presence of a release.  The  requirements  of 
this section are satisfied if one of the external release  detection  methods 
allowed in section 280.43(e) and (f) is  operating  in  accordance  with  the 
requirements in section 280.43 at the  time  of  closure,  and  indicates  no 
release has occurred.
  (b) If contaminated soils, contaminated groundwater, or free product  as  a 
liquid or vapor is discovered under subsection (a) or (c) of this section  or 
in any other manner, then the owners and operators shall report  a  confirmed 
release in accordance with section 280.61  and  begin  corrective  action  in 
accordance with subpart F of these rules and part 213 of Act No. 451  of  the 
Public Acts of 1994, as amended, being ß 324.21301 et seq.  of  the  Michigan 
Compiled Laws.
  (c) Visible or olfactory evidence of  a  regulated  substance  in  the  UST 
excavation constitutes a confirmed release.  Positive indication  from  field 
screening instruments constitutes a suspected release.
  (d) Upon closure or a change in service of a UST, the owners and  operators 
shall perform a site assessment in compliance with either  of  the  following 
provisions:
  (1) Two soil borings shall be taken as close as practical to the tank,  but 
not more than 5 feet from the tank.  One boring shall be taken at each end of 
the tank, but not more than 2 feet below the bottom of the  tank  and  boring 
shall be taken at the bottom of each end of the tank.
  (2) Upon removal of a UST, the owners and operators shall  perform  a  site 
assessment in compliance with either of the following provisions:
  (i) One discrete sample shall be taken from the excavation floor underneath 
the fill pipe area for each tank removed and 1 discrete sample shall be taken 
from the excavation floor underneath the opposite end of the tank.
  (ii) One water sample shall be taken if the entire floor of the  excavation 
is covered with water or a 1-for-1 water-for-soil sample shall  be  taken  if 
the excavation is partially covered with water.
  (e) Additional sample or samples shall be taken when  deemed  necessary  by 
the department or the person who performs the site assessment.
  (f) A site assessment for piping shall  be  performed  after  emptying  and 
purging the piping run or after the removal of piping.  The  site  assessment 
shall consist of 1 discrete sample for  every  30  feet  of  the  underground 
piping run, starting at the dispenser location or the furthest point from the 
tank and moving towards the tank.
  (g) Samples shall be analyzed using the following testing methods:
  (1) An  appropriate  method  listed  in  the  United  States  environmental 
protection agency standard entitled "Test Methods For Evaluating Solid Waste; 
Physical/Chemical Methods," SW-846 document.
  (2) Other testing methods  determined  by  the  department  to  be  equally 
effective in assessing the level of contamination.
  (h) Copies of site assessment results shall be submitted to the  department 
within 45 days of the sampling date, together with the site assessment report 
form provided by the department.   The owner and operator shall complete  the 
information specified on  the  form  and  shall  provide  a  site  map  which 
indicates the location of tanks and piping and which identifies the depth and 
location of the samples taken.  The site assessment report shall also include 
a copy of the laboratory report that indicates the test methods used  in  the 
analyses and the chain of custody of the samples.

  History:  1998-2000 AACS.


R 29.2157   Applicability to previously closed UST systems.
  Rule 57.  Section 280.73 is amended to read as follows:
  Section 280.73.  When directed by the department, the owner and operator of 
a UST system that was permanently closed before the effective date  of  these 
rules shall assess the excavation zone and close the UST system in accordance 
with this subpart if suspected or confirmed releases from the UST system may, 
in the judgment of the department, pose a  current  or  potential  threat  to 
human health and the environment.

  History:  1998-2000 AACS.


R 29.2159   Closure records.
  Rule 59.  Section 280.74 is amended to read as follows:
  Section 280.74.  Closure records.   Owners  and  operators  shall  maintain 
records, in accordance with  the  provisions  of  section  280.34,  that  are 
capable of demonstrating compliance  with  closure  requirements  under  this 
subpart.  The results of the site assessment required in section 280.72 shall 
be maintained for not less than 3 years after completion of permanent closure 
or a change in service by mailing the records to the department.  The records 
shall be mailed by either the owners and operators who took  the  UST  system 
out of service or by the current owners and operators of the UST system site.

  History:  1998-2000 AACS.


                    SUBPART H. FINANCIAL RESPONSIBILITY


R 29.2161   Applicability.
  Rule 61.  Section 280.90 is amended to read as follows:
  Section 280.90. (a) This subpart applies to owners  and  operators  of  all 
petroleum underground storage tank (UST) systems except as otherwise provided 
in this section.
  (b) Owners and operators of petroleum UST  systems  are  subject  to  these 
requirements if they are in operation on or after  the  date  for  compliance 
established in section 280.91.
  (c) State and federal government entities whose debts and  liabilities  are 
the debts and liabilities of a state of the United States are exempt from the 
requirements of this subpart.
  (d) The requirements of this subpart do not apply to owners  and  operators 
of any UST system excluded or deferred under part 211 of Act No. 451  of  the 
Public Acts of 1994, as amended, being ß 324.21101 et seq.  of  the  Michigan 
Compiled Laws.
  (e) If the owner and operator of a petroleum underground storage  tank  are 
separate  persons,  only  1  person  is  required  to  demonstrate  financial 
responsibility; however, both parties are liable in event of noncompliance.
Regardless of which  party  complies,  the  date  set  for  compliance  at  a 
particular facility is determined by the characteristics of the owner as  set 
forth in section 280.91.
  (f) The amount of the financial responsibility requirements required  under 
the provisions of this subpart shall be reduced to the amount required by the 
federal government upon passage by the federal government of a  reduction  in 
the financial requirements of this part.

  History:  1998-2000 AACS.


R 29.2163   Definition of terms.
  Rule 63.  Section 280.92 is amended by to read as follows:
  Section 280.92.  As used in this subpart:
  (a)   "Accidental  release"  means  any  sudden  or  nonsudden  release  of 
petroleum 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.
  (b)  "Bodily  injury"  shall  have  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.
  (c)  "Chief financial officer," in the case of local government owners  and 
operators,  means  the  individual  who  has  the   overall   authority   and 
responsibility for the collection, disbursement, and  use  of  funds  by  the 
local government.
  (d) "Controlling interest" means direct ownership of not less than  50%  of 
the voting stock of another entity.
  (e) "Director of  the  implementing  agency"  means  the  director  of  the 
Michigan department of environmental quality.
  (f) "Financial reporting year" means the latest consecutive 12-month period 
for which any of the following reports used to support a  financial  test  is 
prepared:
  (1) A 10-k report submitted to the securities exchange commission.
  (2) An annual report of tangible net worth submitted to Dun and Bradstreet.
  (3) Annual reports submitted to the energy  information  administration  or 
the rural electrification administration.
  (g) "Legal defense cost" means any expense that an  owner  or  operator  or 
provider of financial assurance incurs in defending against claims or actions 
brought by any of the following entities:
  (1) EPA or a state to require corrective action or to recover the costs  of 
corrective action.
  (2) By or on behalf of a third party for bodily injury or  property  damage 
caused by an accidental release.
  (3) Any person to enforce the terms of a financial assurance mechanism.
  (h) "Local government" has the meaning given this term by applicable  state 
law and includes Indian tribes.  The term is generally  intended  to  include 
the following entities:
  (1) Counties.
  (2) Municipalities.
  (3) Townships.
  (4) Separately chartered and operated special  districts,  including  local 
government public transit systems and redevelopment authorities.
  (5) Independent school districts authorized as governmental bodies by state 
charter or constitution.
  (6) Special districts  and  independent  school  districts  established  by 
counties, municipalities, townships, and other general purpose governments to 
provide essential services.
  (i) "Occurrence"  means  an  accident,  including  continuous  or  repeated 
exposure to conditions, that results in a release from an underground storage 
tank.
  (j) "Owner or operator," when the owner and operator are separate  parties, 
means the party that is obtaining or has obtained financial assurances.
  (k)  "Petroleum  marketing  facilities"  means  all  facilities  at   which 
petroleum is produced or refined and all facilities from which  petroleum  is 
sold or transferred to other petroleum marketers or to the public.
  (l)  "Petroleum  marketing  firms"  means  all  firms  that  own  petroleum 
marketing facilities.  Firms that own other types of facilities with USTs  as 
well as  petroleum  marketing  facilities  are  considered  to  be  petroleum 
marketing firms.
  (m) "Property damage" has the meaning given this term by  applicable  state 
law.  The term does not include liabilities which, consistent  with  standard 
insurance  industry  practices,  are  excluded  from  coverage  in  liability 
insurance policies for property damage.  However, the exclusions for property 
damage shall not include corrective  action  associated  with  releases  from 
tanks that are covered by the policy.
  (n) "Provider  of  financial  assurance"  means  an  entity  that  provides 
financial assurance to an owner or operator of an  underground  storage  tank 
through 1 of the mechanisms listed in sections 280.95 to  280.103,  including 
any of the following entities:
  (1) A guarantor.
  (2) An insurer.
  (3) A risk retention group.
  (4) A surety.
  (5) An issuer of a letter of credit.
  (6) An issuer of a state-required mechanism.
  (7) A state.
  (o) "Substantial business relationship" means  the  extent  of  a  business 
relationship necessary  under  applicable  state  law  to  make  a  guarantee 
contract issued incident  to  the  relationship  valid  and  enforceable.   A 
guarantee contract is issued incident to the relationship if it  arises  from 
and depends on existing economic transactions between the guarantor  and  the 
owner or operator.
  (p)  "Substantial  governmental  relationship"  means  the  extent   of   a 
governmental relationship necessary under applicable state  law  to  make  an 
added guarantee contract  issued  incident  to  the  relationship  valid  and 
enforceable.  A guarantee contract is issued incident to the relationship  if 
it arises for a clear commonality of interest in the event of a UST  release, 
such as any of the following:
  (1) Coterminous boundaries.
  (2) Overlapping constituencies.
  (3) Common groundwater aquifer.
  (4) Another relationship other than monetary compensation that  provides  a 
motivation for the guarantor to provide a guarantee.
  (q) "Tangible net worth"  means  the  tangible  assets  that  remain  after 
deducting liabilities. Tangible assets do not  include  intangibles  such  as 
goodwill and rights to patents  or  royalties.   For  the  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.
  (r) "Termination," under sections 280.97(b)(1)  and  (2),  means  only  the 
changes that could result in a gap in coverage such as where the insured  has 
not obtained substitute coverage or has obtained substitute coverage  with  a 
different retroactive date than the retroactive date of the original policy.

  History:  1998-2000 AACS.


R 29.2163   Definition of terms.
  Rule 63.  Section 280.92 is amended by to read as follows:
  Section 280.92.  As used in this subpart:
  (a)   "Accidental  release"  means  any  sudden  or  nonsudden  release  of 
petroleum 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.
  (b)  "Bodily  injury"  shall  have  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.
  (c)  "Chief financial officer," in the case of local government owners  and 
operators,  means  the  individual  who  has  the   overall   authority   and 
responsibility for the collection, disbursement, and  use  of  funds  by  the 
local government.
  (d) "Controlling interest" means direct ownership of not less than  50%  of 
the voting stock of another entity.
  (e) "Director of  the  implementing  agency"  means  the  director  of  the 
Michigan department of environmental quality.
  (f) "Financial reporting year" means the latest consecutive 12-month period 
for which any of the following reports used to support a  financial  test  is 
prepared:
  (1) A 10-k report submitted to the securities exchange commission.
  (2) An annual report of tangible net worth submitted to Dun and Bradstreet.
  (3) Annual reports submitted to the energy  information  administration  or 
the rural electrification administration.
  (g) "Legal defense cost" means any expense that an  owner  or  operator  or 
provider of financial assurance incurs in defending against claims or actions 
brought by any of the following entities:
  (1) EPA or a state to require corrective action or to recover the costs  of 
corrective action.
  (2) By or on behalf of a third party for bodily injury or  property  damage 
caused by an accidental release.
  (3) Any person to enforce the terms of a financial assurance mechanism.
  (h) "Local government" has the meaning given this term by applicable  state 
law and includes Indian tribes.  The term is generally  intended  to  include 
the following entities:
  (1) Counties.
  (2) Municipalities.
  (3) Townships.
  (4) Separately chartered and operated special  districts,  including  local 
government public transit systems and redevelopment authorities.
  (5) Independent school districts authorized as governmental bodies by state 
charter or constitution.
  (6) Special districts  and  independent  school  districts  established  by 
counties, municipalities, townships, and other general purpose governments to 
provide essential services.
  (i) "Occurrence"  means  an  accident,  including  continuous  or  repeated 
exposure to conditions, that results in a release from an underground storage 
tank.
  (j) "Owner or operator," when the owner and operator are separate  parties, 
means the party that is obtaining or has obtained financial assurances.
  (k)  "Petroleum  marketing  facilities"  means  all  facilities  at   which 
petroleum is produced or refined and all facilities from which  petroleum  is 
sold or transferred to other petroleum marketers or to the public.
  (l)  "Petroleum  marketing  firms"  means  all  firms  that  own  petroleum 
marketing facilities.  Firms that own other types of facilities with USTs  as 
well as  petroleum  marketing  facilities  are  considered  to  be  petroleum 
marketing firms.
  (m) "Property damage" has the meaning given this term by  applicable  state 
law.  The term does not include liabilities which, consistent  with  standard 
insurance  industry  practices,  are  excluded  from  coverage  in  liability 
insurance policies for property damage.  However, the exclusions for property 
damage shall not include corrective  action  associated  with  releases  from 
tanks that are covered by the policy.
  (n) "Provider  of  financial  assurance"  means  an  entity  that  provides 
financial assurance to an owner or operator of an  underground  storage  tank 
through 1 of the mechanisms listed in sections 280.95 to  280.103,  including 
any of the following entities:
  (1) A guarantor.
  (2) An insurer.
  (3) A risk retention group.
  (4) A surety.
  (5) An issuer of a letter of credit.
  (6) An issuer of a state-required mechanism.
  (7) A state.
  (o) "Substantial business relationship" means  the  extent  of  a  business 
relationship necessary  under  applicable  state  law  to  make  a  guarantee 
contract issued incident  to  the  relationship  valid  and  enforceable.   A 
guarantee contract is issued incident to the relationship if it  arises  from 
and depends on existing economic transactions between the guarantor  and  the 
owner or operator.
  (p)  "Substantial  governmental  relationship"  means  the  extent   of   a 
governmental relationship necessary under applicable state  law  to  make  an 
added guarantee contract  issued  incident  to  the  relationship  valid  and 
enforceable.  A guarantee contract is issued incident to the relationship  if 
it arises for a clear commonality of interest in the event of a UST  release, 
such as any of the following:
  (1) Coterminous boundaries.
  (2) Overlapping constituencies.
  (3) Common groundwater aquifer.
  (4) Another relationship other than monetary compensation that  provides  a 
motivation for the guarantor to provide a guarantee.
  (q) "Tangible net worth"  means  the  tangible  assets  that  remain  after 
deducting liabilities. Tangible assets do not  include  intangibles  such  as 
goodwill and rights to patents  or  royalties.   For  the  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.
  (r) "Termination," under sections 280.97(b)(1)  and  (2),  means  only  the 
changes that could result in a gap in coverage such as where the insured  has 
not obtained substitute coverage or has obtained substitute coverage  with  a 
different retroactive date than the retroactive date of the original policy.

  History: 1998-2000 AACS.


R 29.2163a Allowable mechanisms and combinations of mechanisms.
  Rule 63a. Section 280.94 is amended to read as follows:
  Section 280.94. (a) Subject to the limitations of subsections (b)  and  (c) 
of this section, both of the following provisions apply:
  (1) An owner or operator, including a local government owner  or  operator, 
may use any 1 or a combination of the mechanisms listed in sections 280.95 to 
280.103 to demonstrate financial responsibility under this subpart for  1  or 
more underground storage tanks.
  (2) A local government owner or operator may use any 1 or a combination  of 
the mechanisms listed in sections 280.104 to 280.107 to demonstrate financial 
responsibility under this subpart for 1 or more underground storage tanks.
  (b) An owner or operator may use a guarantee under section 280.96 or surety 
bond under section 280.98 to establish financial responsibility only  if  the 
attorney general of the state in which  the  underground  storage  tanks  are 
located has submitted a written statement to the implementing agency  that  a 
guarantee or surety bond executed as described in this section is  a  legally 
valid and enforceable obligation in that 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.

  History: 1998-2000 AACS.


R 29.2163b Guarantee.
Rule 63b. Section 280.96 is amended to read as follows:
  Section 280.96. (a) An owner or operator may satisfy  the  requirements  of 
section 280.93 by obtaining a guarantee that conforms to the requirements  of 
this section.  The guarantor shall be either of the following entities:
  (a) A firm that meets all of the following requirements:
  (i) Possesses a controlling interest in the owner or operator.
  (ii) Possesses a controlling interest in a firm described in paragraph  (i) 
of this subdivision.
  (iii)  Is controlled through stock ownership by a common parent  firm  that 
possesses a controlling interest in the owner or operator.
  (2) A firm which is engaged in a substantial business relationship with the 
owner or operator and which is issuing the guarantee as an  act  incident  to 
the business relationship.
  (b) Within 120 days of the close of  each  financial  reporting  year,  the 
guarantor shall demonstrate that it meets  the  financial  test  criteria  of 
section 280.95,  based  on  year-end  financial  statements  for  the  latest 
completed financial reporting year, by completing the letter from  the  chief 
financial officer described in section 280.95(d) and shall 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,  then,  within 
120 days of the end of the 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 director of the implementing  agency 
notifies the guarantor that the guarantor no longer meets the requirements of 
the financial test of section 280.95(b) or (c) and (d),  then  the  guarantor 
shall  notify  the  owner  or  operator  within  10  days  of  receiving  the 
notification from the director.  In both cases, the guarantee will  terminate 
not less than 120 days after the date that the owner or operator receives the 
notification, as evidenced by the return receipt. The owner or operator shall 
obtain alternate coverage as specified in section 280.114.
  (c) The guarantee shall be worded as follows, except that  instructions  in 
brackets are to be replaced with the relevant information  and  the  brackets 
deleted:

Guarantee

  Guarantee made this [date] by [name of  guaranteeing  entity],  a  business 
entity organized under the laws of the  state  of  [name  of  state],  herein 
referred to as guarantor, to [the state implementing agency] and to  any  and 
all third parties,  and  obligees,  on  behalf  of  [owner  or  operator]  of 
[business address].

Recitals
  (1) Guarantor meets or exceeds the financial test criteria of 40 C.F.R.
280.95(b) or (c) and (d) and agrees  to  comply  with  the  requirements  for 
guarantors as specified in 40 C.F.R. 280.96(b).
  (2) [Owner or operator] owns or operates the following underground  storage 
tank(s) covered by this  guarantee:   [List  the  number  of  tanks  at  each 
facility and the name(s) and address(es) of the facility(ies) where the tanks 
are located.  If more than 1 instrument is used to assure different tanks  at 
any 1 facility, for each tank covered  by  this  instrument,  list  the  tank 
identification number provided in the notification submitted pursuant  to  40 
C.F.R. 280.22 or the  corresponding  state  requirement,  and  the  name  and 
address of the facility.]  This  guarantee  satisfies  40  C.F.R.  Part  280, 
Subpart H, requirements for assuring funding for [insert:  "taking corrective 
action" and/or "compensating third parties for  bodily  injury  and  property 
damage  caused  by"  either  "sudden  accidental  releases"   or   "nonsudden 
accidental releases" or "accidental releases"; if coverage is different  from 
different tanks or locations, indicate the type  of  coverage  applicable  to 
each  tank  or  location]  arising  from   operating   the   above-identified 
underground storage tanks(s) in the amount  of  [insert  dollar  amount]  per 
occurrence and [insert dollar amount] annual aggregate.
  (3)  [Insert  appropriate  phrase:   "On  behalf  of  our  subsidiary"  (if 
guarantor is corporate parent of the owner or operator); "On  behalf  of  our 
affiliate" (if guarantor is a related firm of  the  owner  or  operator);  or 
"Incident to our business relationship with" (if guarantor is  providing  the 
guarantee as an incident to a substantial business relationship with owner or 
operator)] [owner or operator], guarantor guarantees to [implementing agency] 
and to any and all third parties that:
   In the event  that  [owner  or  operator]  fails  to  provide  alternative 
coverage within 60 days after receipt of a notice  of  cancellation  of  this 
guarantee and the [Director of the implementing  agency]  has  determined  or 
suspects that a release has occurred at an underground storage  tank  covered 
by this guarantee, the guarantor,  upon  instructions  from  the  [Director], 
shall fund a standby trust fund in  accordance  with  the  provisions  of  40 
C.F.R. 280.112, in an amount not to  exceed  the  coverage  limits  specified 
above.
  In the event that the [Director] determines that [owner  or  operator]  has 
failed to perform corrective action for releases arising out of the operation 
of the above-identified tank(s)  in  accordance  with  40  C.F.R.  Part  280, 
Subpart F, the guarantor upon written instructions from the [Director]  shall 
fund a standby trust in accordance with the provisions of 40 C.F.R.  280.112, 
in an amount not to exceed the coverage limits specified above.  If [owner or 
operator] fails to satisfy a judgment or award based on  a  determination  of 
liability for bodily injury or property damage to  third  parties  caused  by 
["sudden" and/or "nonsudden"] accidental releases arising from the  operation 
of the above identified tank(s), or fails to  pay  an  amount  agreed  to  in 
settlement of a claim arising from or alleged to arise from  such  injury  or 
damage, the guarantor, upon written instructions from the  [Director],  shall 
fund a standby trust in accordance with the provisions of 40  C.F.R.  280.112 
to satisfy such judgment(s), award(s), or settlement agreement(s) up  to  the 
limits of coverage specified above.
  (4) Guarantor agrees that  if,  at  the  end  of  any  fiscal  year  before 
cancellation of this guarantee, the guarantor fails  to  meet  the  financial 
test criteria of 40 C.F.R. 280.95(b) or (c) and  (d),  guarantor  shall  send 
within 120 days of such failure, by  certified  mail,  notice  to  [owner  or 
operator].
The guarantee will terminate 120 days from the date of receipt of the  notice 
by [owner or operator] as evidenced by the return receipt.
  (5) Guarantor agrees to notify [owner or operator] by certified mail  of  a 
voluntary or involuntary proceeding under Title 11  (Bankruptcy),  U.S.  Code 
naming guarantor  as  debtor,  within  10  days  after  commencement  of  the 
proceeding.
  (6) Guarantor agrees to remain bound under this  guarantee  notwithstanding 
any modification or alteration of  any  obligation  of  [owner  or  operator] 
pursuant to 40 C.F.R. Part 280.
  (7) Guarantor agrees to remain bound under this guarantee for  so  long  as 
[owner or operator] must comply with the applicable financial  responsibility 
requirements of 40 C.F.R. Part  280,  subpart  H  for  the  above  identified 
tank(s), except that guarantor may cancel this guarantee by sending notice by 
certified mail to [owner or operator], such cancellation to become  effective 
no earlier than 120 days after receipt of such notice by [owner or operator], 
as evidenced by the return receipt.
  (8) The guarantor's obligation does not apply to any of the following:
  (a)  Any  obligation  of  [insert  owner  or  operator]  under  a  workers' 
compensation, disability benefits, or unemployment compensation law or  other 
similar law;
  (b) Bodily injury to an employee of  [insert  owner  or  operator]  arising 
from, and in the course of, employment by [insert owner or operator];
  (c)  Bodily  injury  or  property  damage  arising  from   the   ownership, 
maintenance, use or entrustment to others of any aircraft, motor vehicle,  or 
watercraft;
  (d) Property damage to any property owned, rented, loaned to, in the  care, 
custody, or control of, or occupied by [insert owner or operator] that is not 
the direct result of a release from a petroleum underground storage tank;
  (e) Bodily damage or property damage for which [insert owner  or  operator] 
is obligated to pay damages by reason of the assumption  of  liability  in  a 
contract or agreement, other than a contract or  agreement  entered  into  to 
meet the requirements of 40 C.F.R. 280.93.
  (9) Guarantor expressly waives notice of acceptance of  this  guarantee  by 
[implementing agency], by any or all third parties, or by [owner or operator].
  I hereby certify that the wording of this guarantee  is  identical  to  the 
wording  specified  in  40  C.F.R.  280.96(c),  as  such   regulations   were 
constituted on the effective date shown immediately below.

Effective  date:  _____  [Name  of  guarantor]  [Authorized   signature   for 
guarantor] [Name of person signing] [Title of person  signing]  Signature  of 
witness of notary: _______________

  (d) An owner or operator who uses a guarantee to satisfy  the  requirements 
of section 280.93 shall 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  director  of  the 
implementing agency under section 280.112.  The standby trust fund shall meet 
the requirements specified in section 280.103.

  History: 1998-2000 AACS.


R 29.2163c  Insurance and risk retention group coverage.
  Rule 63c. Section 280.97 is amended to read as follows:
  Section 280.97. (a) An owner or operator may satisfy  the  requirements  of 
section  280.93  by  obtaining  liability  insurance  that  conforms  to  the 
requirements of this section from a qualified insurer or risk retention group.
Such insurance may be in the form  of  a  separate  insurance  policy  or  an 
endorsement to an existing insurance policy.
  (b) Each insurance policy shall be amended  by  an  endorsement  worded  as 
specified in paragraph (b)(1) of this section, or evidence by  a  certificate 
of insurance worded as specified in paragraph (b)(2) of this section,  except 
that instructions in brackets shall be replaced with the relevant information 
and the brackets deleted:

  (1)    Endorsement    Name:    [name    of    each    covered     location] 
____________________________________________________________________ 
____________________________________________________________________ Address:
[address           of            each            covered            location] 
____________________________________________________________________ 
____________________________________________________________________   Policy 
Number:
____________________________________________________________________   Period 
of           Coverage:           [current           policy            period] 
____________________________________________________________________ Name  of 
[Insurer or Risk Retention Group]:
____________________________________________________________________  Address 
of [Insurer or Risk Retention Group]:
____________________________________________________________________ 
____________________________________________________________________ Name  of 
Insured:
____________________________________________________________________  Address 
of Insured:
____________________________________________________________________ 
____________________________________________________________________

Endorsement:
  This endorsement certifies that the policy  to  which  the  endorsement  is 
attached provides liability  insurance  covering  the  following  underground 
storage tanks: [List the number of tanks at each facility and the name(s) and 
address(es) of the facility(ies) where the tanks are located.  If more than 1 
instrument is used to assure different tanks at any 1 facility, for each tank 
covered by this instrument, list the tank identification number  provided  in 
the notification submitted pursuant to 40 C.F.R. 280.22, or the corresponding 
state requirement, and the name and address of the facility.] for [insert:
"taking corrective action" and/or  "compensating  third  parties  for  bodily 
injury and property damage caused by" either "sudden accidental releases"  or 
non sudden accidental releases" or "accidental releases" in  accordance  with 
and subject to the limits of liability,  exclusions,  conditions,  and  other 
terms of the  policy;  if  coverage  is  different  for  different  tanks  or 
locations, indicate the type of coverage applicable to each tank or location] 
arising from operating the underground storage tank(s) identified above.
  The limits of  liability  are  [insert  the  dollar  amount  of  the  "each 
occurrence" and  "annual  aggregate"  limits  of  the  Insurer's  or  Group's 
liability; if the amount of coverage is  different  for  different  types  of 
coverage or for different underground storage tanks  or  locations,  indicate 
the amount of coverage for each type of coverage and/or for each  underground 
storage tank or location],  exclusive  of  legal  defense  costs,  which  are 
subject to a separate limit under the  policy.   This  coverage  is  provided 
under [policy number].  The effective date of said policy is [date].
  2.  The insurance afforded with respect to such occurrences is  subject  to 
all of the terms and conditions of the policy; provided,  however,  that  any 
provisions inconsistent with subsections (a) to (e) of this Paragraph  2  are 
hereby amended to conform with subsections (a) to (e);
  a.   Bankruptcy  or  insolvency  of  the  insured  shall  not  relieve  the 
["Insurer" or "Group"] of its obligations under  the  policy  to  which  this 
endorsement is attached.
  b.  The ["Insurer" or "Group"] is liable for the payment of amounts  within 
any deductible applicable to the policy to the provider of corrective  action 
or a damaged third-party, with a right of reimbursement by  the  insured  for 
any such payment made by the ["Insured" or "Group"].  This provision does not 
apply with respect to that amount of any deductible  for  which  coverage  is 
demonstrated  under  another  mechanism  or  combination  of  mechanisms   as 
specified in 40 C.F.R. 280.95-280.102.
  c.  Whenever requested by [a  Director  of  an  implementing  agency],  the 
["Insurer" or "Group"] agrees to furnish to [the Director] a signed duplicate 
original of the policy and all endorsements.
  d.   Cancellation  or  any  other  termination  of  the  insurance  by  the 
["Insurer" or "Group"] except for nonpayment of premium or  misrepresentation 
by the insured, will be effective only upon written notice and only after the 
expiration of 60 days after a copy of such written notice is received by  the 
insured.

[Insert for claims made policies:
  e.  The insurance covers claims otherwise covered by the  policy  that  are 
reported to the ["Insured" or "Group"] within 6 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 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.]

  I hereby certify that the wording of this instrument is  identical  to  the 
wording in C.F.R.  280.97(b)(1)  and  that  the  ["Insurer"  or  "Group"]  is 
["licensed to transact the business  or  insurance  or  eligible  to  provide 
insurance as an excess or surplus lines insurer in 1 or more states".]

[Signature of authorized representative of Insurer or Risk  Retention  Group] 
____________________________________________________________________ [Name of 
person                                                               signing] 
____________________________________________________________________   [Title 
of person signing], Authorized Representative of [name  of  Insurer  or  Risk 
Retention                                                              Group] 
____________________________________________________________________ [Address 
of                                                            Representative] 
____________________________________________________________________ 
____________________________________________________________________    Name:
[name            of            each             covered             location] 
____________________________________________________________________ Address:
[address           of            each            covered            location] 
____________________________________________________________________   Policy 
Number:
____________________________________________________________________ 
Endorsement (if applicable):
____________________________________________________________________   Period 
of Coverage: [current policy period]  Name  of  [Insurer  or  Risk  Retention 
Group]:
____________________________________________________________________  Address 
of [Insurer or Risk Retention Group]:
____________________________________________________________________ Name  of 
Insured:
____________________________________________________________________  Address 
of Insured:
____________________________________________________________________ 
____________________________________________________________________

Certification:
  1.  [Name of Insurer or Risk Retention Group], [the "Insurer" or  "Group"], 
as identified above, hereby certifies that it has issued liability  insurance 
covering the following underground storage tank(s): [List the number of tanks 
at each facility and the name(s) and address(es) of the  facility(ies)  where 
the tanks are located.  If more than 1 instrument is used to assure different 
tanks at any 1 facility, for each tank covered by this instrument,  list  the 
tank identification number provided in the notification submitted pursuant to 
40 C.F.R. 280.22, or the corresponding state requirement, and  the  name  and 
address of the facility.] for  [insert:  "taking  corrective  action"  and/or 
"compensating third parties for bodily injury and property damage caused  by" 
either "sudden accidental releases" or  "nonsudden  accidental  releases"  or 
"accidental releases" in  accordance  with  and  subject  to  the  limits  of 
liability, exclusions, conditions, and other terms of the policy; if coverage 
is different for different tanks or locations, indicate the type of  coverage 
applicable to each tank or location] arising from operating  the  underground 
storage tank(s) identified above.
  The limits of  liability  are  [insert  the  dollar  amount  of  the  "each 
occurrence" and  "annual  aggregate"  limits  of  the  Insurer's  or  Group's 
liability; if the amount of coverage is  different  for  different  types  of 
coverage or for different underground storage tanks  or  locations,  indicate 
the amount of coverage for each type of coverage and/or for each  underground 
storage tank or location], exclusive of the legal defense  costs,  which  are 
subject to a separate limit under the  policy.   This  coverage  is  provided 
under [policy number].  The effective date of said policy is [date].
  2.  The ["Insurer" or "Group"] further certifies the following with respect 
to the insurance described in Paragraph 1:
  a.   Bankruptcy  or  insolvency  of  the  insured  shall  not  relieve  the 
["Insurer" or "Group"] of its obligations under  the  policy  to  which  this 
certificate applies.
  b.  The ["Insurer" or "Group"] is liable for the payment of amounts  within 
any deductible applicable to the policy to the provider of corrective  action 
or a damaged third party, with a right of reimbursement by  the  insured  for 
any such payment made by the ["Insured" or "Group"].  This provision does not 
apply with respect to that amount of any deductible  for  which  coverage  is 
demonstrated  under  another  mechanism  or  combination  of  mechanisms   as 
specified in 40 C.F.R. 280.95 to 280.102.
  c.  Whenever requested by [a  Director  of  an  implementing  agency],  the 
["Insurer" or "Group"] agrees to furnish to [the Director]a signed  duplicate 
original of the policy and all endorsements.
  d.   Cancellation  or  any  other  termination  of  the  insurance  by  the 
["Insurer" or "Group"] except for not-payment of premium or misrepresentation 
by the insured, will be effective only upon written notice and only after the 
expiration of 60 days after a copy of such written notice is received by  the 
insured.  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.

[Insert for claims-made policies:
  e.  The insurance covers claims otherwise covered by the  policy  that  are 
reported to the ["Insurer" or "Group"] within 6 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.]
  I hereby certify that the wording of this instrument is  identical  to  the 
wording in 40 C.F.R. 280.97(b)(2) and that  the  ["Insurer"  or  "Group"]  is 
["licensed to transact the business  of  insurance  or  eligible  to  provide 
insurance as an excess or surplus lines insurer, in 1 or more states"].

[Signature of authorized representative  of  Insurer]  [Type  Name]  [Title], 
Authorized Representative of  [name  of  Insurer  or  Risk  Retention  Group] 
[Address of Representative]

  (c) Each insurance policy shall be issued by an insurer or a risk retention 
group that, at a minimum, is licensed to transact the business  of  insurance 
or eligible to provide insurance as an excess or surplus lines insurer  in  1 
or more states.
  (d) In the event  of  termination  or  nonrenewal  of  liability  insurance 
coverage used to meet the financial responsibility requirements, the  insurer 
shall notify the department of termination or nonrenewal  not  more  than  20 
days after the date of termination or nonrenewal.  The notice shall state the 
name and address of the insured, the date of termination or  nonrenewal,  and 
the address of the facility previously insured.

  History: 1998-2000 AACS.


  R 29.2163d  Surety bond.
  Rule 63.d Section 280.98 is amended as follows:
  Section 280.98. (a) An owner or operator may satisfy  the  requirements  of 
section 280.93 by obtaining a surety bond that conforms to  the  requirements 
of this section.  The surety company issuing the  bond  shall  be  among  the 
companies listed as acceptable  sureties  on  federal  bonds  in  the  latest 
Circular 570 of the United States department of the treasury.
  (b) The surety bond shall be worded as follows, except that instructions in 
brackets shall be replaced with the relevant  information  and  the  brackets 
deleted:

Performance Bond

Date  bond  executed:  _______________________________  Period  of  coverage:
_______________________________ Principal:  [legal name and business  address 
of                   owner                    or                    operator] 
________________________________________________________________

Type of organization:  [insert "individual, " "joint venture,"
 "partnership,"                       or                       "corporation"] 
________________________________________________________________

State of incorporation (if applicable):
________________________________________________________________


Surety(ies):        [name(s)        and         business         address(es)] 
_________________________________________________________________

  Scope of Coverage:  [List the number of tanks  at  each  facility  and  the 
name(s) and address(es) of the facility(ies) where the tanks are located.  If 
more than 1 instrument is used to assure different tanks at any  1  facility, 
for each tank covered by this instrument, list the tank identification number 
provided in the notification submitted pursuant to 40 C.F.R. 280.22,  or  the 
corresponding state requirement, and the name and address of the facility.
List the coverage guaranteed by the bond:  "taking corrective action"  and/or 
"compensating third parties for bodily injury and property damage caused  by" 
either "sudden accidental releases" or  "nonsudden  accidental  releases:  or 
"accidental releases" arising from operating the underground storage tank"].

Penal sums of bond:

Per    occurrence     $_____________________________     Annual     aggregate 
$___________________________ Surety's bond number: _______________________

  Know all Persons by These Present, that we, the Principal and  Surety(ies), 
hereto are firmly bound to [the implementing agency], in the above penal sums 
for  the  payment  of  which  we  bind  ourselves,  our   heirs,   executors, 
administrators, successors, and assigns jointly and severally; provided that, 
where the  Surety(ies)  are  corporations  acting  as  co-sureties,  we,  the 
Sureties, bind ourselves in such sums jointly  and  severally  only  for  the 
propose of allowing a joint action or actions against any or all of use,  and 
for all other purposes each Surety binds itself, jointly and  severally  with 
the Principal, for the payment of such sums only as it set forth opposite the 
name of such Surety, but if no limit of liability is indicated, the limit  of 
liability shall be the full amount of the penal sums.
  Whereas said Principal  is  required  under  Subtitle  I  of  the  Resource 
Conservation and Recovery  Act  (RCRA),  as  amended,  to  provide  financial 
assurance for [insert:  "taking corrective action" and/or "compensating third 
parties for bodily injury  and  property  damage  cause  by"  either  "sudden 
accidental releases"  or  "non-sudden  accidental  releases"  or  "accidental 
releases";, if  coverage  is  different  for  different  tanks  or  location, 
indicate the type of coverage applicable to each tank  or  location]  arising 
from operating the underground storage tanks identified  above,  and  Whereas 
said Principal shall establish a standby trust fund as  is  required  when  a 
surety bond is used to provide such financial assurance:
  Now, therefore, the conditions of the  obligation  are  such  that  if  the 
Principal shall faithfully ["take corrective action, in  accordance  with  40 
C.F.R. Part 280, Subpart  F  and  the  Director  of  the  state  implementing 
agency's instructions for," and/or  "compensate  injured  third  parties  for 
bodily injury and property damage cause by" either "sudden" or "nonsudden" or 
"sudden and  nonsudden"]  accidental  releases  arising  from  operating  the 
tank(s) identified  above,  or  if  the  Principal  shall  provide  alternate 
financial assurance, as specified in 40 C.F.R. Part 280,  Subpart  H,  within 
120 days after the date  the  notice  of  cancellation  is  received  by  the 
Principal from the Surety(ies), then this obligation shall be null and  void; 
otherwise it is to remain in full force and effect.
  Such obligation does not apply to any of the following:
  (a)  Any  obligation  of  [insert  owner  or  operator]  under  a  worker's 
compensation, disability benefits, or unemployment compensation law or  other 
similar law;
  (b) Bodily injury to an employee of [insert owner or operator] arising from 
and in the course of, employment by [insert owner or operator];
  (c)  Bodily  injury  or  property  damage  arising  from   the   ownership, 
maintenance, use, or entrustment to others of any aircraft, motor vehicle, or 
watercraft;
  (d) Property damage to any property owned, rented, loaned to, in the  care, 
custody, or control of, or occupied by [insert owner or operator] that is not 
the direct result of a release from a petroleum underground storage tank;
  (e) Bodily injury or property damage for which [insert owner  or  operator] 
is obligated to pay damages by reason of the assumption  of  liability  in  a 
contract or agreement other than a contract or agreement entered into to meet 
the requirements of 40 C.F.R. 280.93.
  The Surety(ies) shall become liable on this bond obligation only  when  the 
Principal has failed to fulfill the conditions described above.
  Upon notification by [the Director of the  implementing  agency]  that  the 
Principal has failed to ["take corrective action, in accordance with 40 C.F.R.
Part 280, Subpart F, and the  Director's  instructions,"  and/or  "compensate 
injured third parties"] as guaranteed by this  bond,  the  Surety(ies)  shall 
either perform ["corrective action in accordance with 40 C.F.R. Part 280  and 
the Director's instructions," and/or "third-party liability compensation"] or 
place funds in an amount up to  the  annual  aggregate  penal  sum  into  the 
standby trust  fund  as  directed  by  [the  Regional  Administrator  or  the 
Director] under 40 C.F.R. 280.112.
  Upon notification by [the  Director]  that  the  Principal  has  failed  to 
provide alternate financial assurance within  60  days  after  the  date  the 
notice of cancellation is received by the Principal from the Surety(ies)  and 
that [the Director] has determined or suspects that a release  has  occurred, 
the Surety(ies) shall place funds in  an  amount  not  exceeding  the  annual 
aggregate penal sum into the standby trust fund as directed by [the Director] 
under 40 C.F.R. 280.112.
  The Surety(ies) hereby waive(s) notification of  amendments  to  applicable 
laws, statutes, rules, and regulations and  agrees  that  no  such  amendment 
shall in any way alleviate its (their) obligation on this bond.
  The liability of the Surety(ies) shall not be discharged by any payment  or 
succession of payments hereunder, unless and until such payment  or  payments 
shall amount in the annual aggregate to the penal sum shown on  the  face  of 
the bond, but in no event shall the obligation of the  Surety(ies)  hereunder 
exceed the amount of said annual aggregate penal sum.
  The Surety(ies) may cancel the bond by sending notice  of  cancellation  by 
certified mail to the Principal, provided however,  that  cancellation  shall 
not occur during the 120 days beginning on the date of receipt of the  notice 
of cancellation by the Principal, as evidenced by the return receipt.
  The Principal may terminate this bond by  sending  written  notice  to  the 
Surety(ies).
  In Witness Thereof, the principal and Surety(ies) have executed  this  Bond 
and have affixed their seals on the date set forth above.
  The persons whose signatures appear below  hereby  certify  that  they  are 
authorized to execute this  surety  bond  on  behalf  of  the  Principal  and 
Surety(ies) and that the wording of this surety  bond  is  identical  to  the 
wording specified in 40 C.F.R. 280.98(b) as such regulations were constituted 
on the date this bond was executed.

Principal

[Signature(s)] [Name(s)] [Title(s)] [Corporate seal]

Corporate Surety(ies)

[Names and address] [State of  Incorporation]:_______________________________ 
[Liability    limit]:$_____________________________________    [Signature(s)] 
[Name(s) and title(s)] [Corporate seal]

  [For every co-surety,  provide  signature(s),  corporate  seal,  and  other 
information in the same manner as for Surety above.}

Bond premium: $ _________________________________________

  (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 section 280.93 shall 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 director under section 280.112.
 The standby trust fund shall meet  the  requirements  specified  in  section 
280.103.

  History: 1998-2000 AACS.


R 29.2163e Letter of credit.
  Rule 63e. Section 280.99 is amended to read as follows:
Section 280.99. (a) An owner or operator may satisfy  the   requirements   of 
section 280.93 by obtaining an irrevocable  standby  letter  of  credit  that 
conforms to the requirements of this section.  The issuing institution  shall 
be an entity that has the authority to issue letters of credit in each  state 
where used and whose letter-of-credit operations are regulated  and  examined 
by a federal or state agency.
  (b)  The  letter  of  credit  shall  be  worded  as  follows,  except  that 
instructions in brackets are to be replaced with the relevant information and 
the brackets deleted:

Irrevocable Standby Letter of Credit

[Name and address of issuing institution] [Name and address of Director(s) of 
state implementing agency(ies)]

  Dear Sir or Madam:  We hereby establish our Irrevocable Standby  Letter  of 
Credit No. _____ in your favor, at the request and for the account of  [owner 
or operator name] of [address] up to the aggregate amount of [in words] U.S.
dollars ($ [insert dollar amount]), available upon presentation  [insert,  if 
more that 1 Director of a state implementing agency is a beneficiary, "by any 
1 of you"] of
  (1) your sight draft, bearing reference  to  this  letter  of  credit,  No.
_____, and
  (2) your signed statement reading as follows:  "I certify that  the  amount 
of the draft is payable pursuant to regulations  issued  under  authority  of 
Subtitle I of the Resource Conservation and Recovery Act of 1976, as amended."
  This letter of credit may be drawn on to cover [insert:  taking  corrective 
action" and/or "compensating third parties for  bodily  injury  and  property 
damage  caused  by"  either  "sudden  accidental  releases"   or   "nonsudden 
accidental releases" or "accidental releases"]  arising  from  operating  the 
underground storage tank(s) identified below in the amount of  [in  words]  $ 
[insert dollar amount] annual aggregate:
  [List the number of tanks at each facility and the name(s) and  address(es) 
of the facility(ies) where the tanks are located.  If more than 1  instrument 
is used to assure different tanks at any 1 facility, for each tank covered by 
this  instrument,  list  the  tank  identification  number  provided  in  the 
notification submitted pursuant to 40 C.F.R.  280.22,  or  the  corresponding 
state requirement, and the name and address of the facility.]
  The letter of credit may not be drawn on to cover any of the following:
  (a)  Any  obligation  of  [insert  owner  or  operator]  under  a  worker's 
compensation, disability benefits, or unemployment compensation law or  other 
similar law;
  (b) Bodily injury to an employee of  [insert  owner  or  operator]  arising 
from, and in the course of employment by [insert owner or operator];
  (c)  Bodily  injury  or  property  damage  arising  from   the   ownership, 
maintenance, use or entrustment to others of any aircraft, motor  vehicle  or 
watercraft;
  (d) Property damage to any property owned, rented, loaned to, in the  care, 
custody, or control of, or occupied by [insert owner or operator] that is not 
the direct result of a release from a petroleum underground storage tank;
  (e) Bodily injury or property damage for which [insert owner  or  operator] 
is obligated to pay damages by reason of the assumption  of  liability  in  a 
contract or agreement other than a contract or agreement entered into to meet 
the requirements of 40 C.F.R. 280.93.
  This letter of credit is effective as of [date] and shall expire on [date], 
but such expiration date shall be automatically extended for a period of  [at 
least the length of the original term]  on  [expiration  date]  and  on  each 
successive expiration date, unless, at least  120  days  before  the  current 
expiration date, we notify [owner or operator] by certified mail that we have 
decided not to extend this letter of credit  beyond  the  current  expiration 
date.
In the event that [owner or operator] is so notified, any unused  portion  of 
the credit shall be available upon presentation of your sight draft  for  120 
days after the date of receipt by [owner or operator], as shown on the signed 
return receipt.
  Whenever this letter of credit is drawn on under and in compliance with the 
terms of this credit, we shall duly honor such draft upon presentation to us, 
and we shall deposit the amount of the draft directly into the standby  trust 
fund of [owner or operator] in accordance with your instructions.
  We certify that the wording of this letter of credit is  identical  to  the 
wording specified in 40 C.F.R. 280.99(b) as such regulations were constituted 
on the date shown immediately below.

[Signature(s) and title(s) of official(s) of issuing institution] [Date]

  This credit is subject to [insert "the most recent edition of  the  Uniform 
Customs and Practice for  Documentary  Credits,  published  by  the  Internal 
Chamber of Commerce," or "the Uniform Commercial Code"].

  (c) An owner or operator who  uses  a  letter  of  credit  to  satisfy  the 
requirements of section 280.93 shall 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 director  of  the  implementing  agency 
will be deposited by the issuing institution directly into the standby  trust 
fund in accordance with instructions from the director under section 280.112.
 The standby trust fund shall meet  the  requirements  specified  in  section 
280.103.
  (d) The letter of credit shall be  irrevocable  with  a  term  the  issuing 
institution.  The letter of credit shall provide that credit be automatically 
renewed for the same term as the original term, unless, at  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.

  History: 1998-2000 AACS.


R  29.2164   Use of state-required mechanism.
  Rule 64. Section 280.100 is deleted.
  Section 280.100 deleted.

  History:  1990 AACS.


R 29.2165   State fund or other state assurance.
  Rule 65. Section 280.101 is deleted.
Section 280.101 Deleted.

  History:  1998-2000 AACS.


R 29.2166 Local government bond rating test.
  Rule 66. Section 280.104 is amended as follows:
  Section 280.104. (a) A general purpose local government owner or  operator, 
a local  government,  or  any  combination  of  owner,  operator,  or   local 
government serving as a guarantor may satisfy  the  requirements  of  section 
280.93  by  having  a  currently  outstanding  issue  or  issues  of  general 
obligation bonds of $1,000,000.00 or more,  excluding  refunded  obligations, 
with a Moody's rating of Aaa, Aa, A, or Baa or a Standard and  Poor's  rating 
of AAA, AA, A, or BBB.
If a local  government  has  multiple  outstanding  issues,  or  if  a  local 
government's bonds are rated by both Moody's and Standard  and  Poor's,  then 
the lowest rating shall be used to determine  eligibility.   Bonds  that  are 
backed by credit enhancement other than municipal bond insurance may  not  be 
considered in determining the amount of applicable bonds outstanding.
  (b) A local government owner or operator or local government serving  as  a 
guarantor which is not a general-purpose local government and which does  not 
have the legal authority to issue general obligation bonds  may  satisfy  the 
requirements of section 280.93 by having a  currently  outstanding  issue  or 
issues of revenue bonds of $1,000,000.00 or more, excluding refunded  issues, 
and having a Moody's rating of Aaa, A, A, or Baa or  a  Standard  and  Poor's 
rating of AAA, AA, A, or BBB as the lowest rating for any rated revenue  bond 
issued by the local government.  If bonds  are  rated  by  both  Moody's  and 
Standard and Poor's, then the lower rating for each bond  shall  be  used  to 
determine eligibility.  Bonds that are backed by credit enhancement  may  not 
be considered in determining the amount of applicable bonds outstanding.
  (c) The local government owner or operator, a guarantor, or any combination 
or owner, operator or guarantor shall maintain a  copy  of  its  bond  rating 
published within the last 12 months by Moody's or Standard and Poor's.
  (d) To demonstrate that it meets the local government bond rating test, the 
chief financial officer  of  a  general-purpose  local  government  owner  or 
operator, a guarantor, or any combination of  owner,  operator  or  guarantor 
shall sign a letter worded exactly as follows, except that  the  instructions 
in brackets are to be replaced by the relevant information and  the  brackets 
deleted:

Letter from Chief Financial Officer

  I am the chief financial officer of [insert:  name  and  address  of  local 
government owner or operator, or guarantor].  This letter is  in  support  of 
the use of the bond rating test to demonstrate financial  responsibility  for 
[insert: "taking corrective action" and/or "compensating  third  parties  for 
bodily injury and property damage"] caused by  [insert:   "sudden  accidental 
releases" and/or "nonsudden accidental releases"] in the amount of  at  least 
[insert:  dollar amount] per occurrence and [insert:  dollar  amount]  annual 
aggregate arising from operating (an) underground storage tank(s).

  Underground storage tanks at the following facilities are assured  by  this 
bond rating test:  [List for each facility:  the  name  and  address  of  the 
facility where tanks are assured by the bond rating test].

  The details of the issue date, maturity, outstanding amount,  bond  rating, 
and bond rating agency of all outstanding bond issues that are being used  by 
[name of local government owner or operator,  or  guarantor]  to  demonstrate 
financial responsibility are as follows:  [complete table]

Issue  Date               Maturity  Date            Outstanding  Amount  Bond 
Rating Rating Agency

                        [Moody's or Standard and Poor's]

  The total outstanding obligation of  [insert  amount],  excluding  refunded 
bond issues, exceeds the minimum  amount  of  $1  million.   All  outstanding 
general obligation bonds issued by this government that have  been  rated  by 
Moody's or Standard and  Poor's  are  rated  as  at  least  investment  grade 
(Moody's Baa or Standard and Poor's BBB) based on  the  most  recent  ratings 
published within the last 12 months.  Neither  rating  service  has  provided 
notification within the last 12 months of downgrading of bond  ratings  below 
investment grade or of withdrawal of bond rating other than for repayment  of 
outstanding bond issues.

  I hereby certify that the wording  of  this  letter  is  identical  to  the 
wording specified in 40 C.F.R.  Part  280.104(d)  as  such  regulations  were 
constituted on the date shown immediately below.

[Signature]

[Name]

[Title]

[Date]

  (e) To demonstrate that it meets the local government bond rating test, the 
chief financial officer of a local government owner or operator, a guarantor, 
or any other combination of  owner,  operator  or  guarantor,  other  than  a 
general purpose government shall sign a letter  worded  exactly  as  follows, 
except that the instructions in brackets are to be replaced by  the  relevant 
information and the brackets deleted:

Letter from Chief Financial Officer

  I am the chief financial officer of [insert:  name  and  address  of  local 
government owner or operator, or guarantor].  This letter is  in  support  of 
the use of the bond rating test to demonstrate financial  responsibility  for 
[insert:  "taking corrective action" and/or "compensating third  parties  for 
bodily injury and property damage"] caused by  [insert:   "sudden  accidental 
releases" and/or "nonsudden accidental releases"] in the amount of  at  least 
[insert:  dollar amount] per occurrence and [insert:  dollar  amount]  annual 
aggregate arising from operating  (an)  underground  storage  tank(s).   This 
local government is not organized to provide  general  governmental  services 
and does not have the legal  authority  under  state  law  or  constitutional 
provisions to issue general obligation debt.

  Underground storage tanks at the following facilities are assured  by  this 
bond rating test:  [List for each facility:  the  name  and  address  of  the 
facility where tanks are assured by the bond rating test].

  The details of the issue date, maturity, outstanding amount,  bond  rating, 
and bond rating agency of all outstanding revenue bond issues that are  being 
used by [name of  local  government  owner  or  operator,  or  guarantor]  to 
demonstrate financial responsibility are as follows:  [complete table]

Issue Date      Maturity Date   Outstanding Amount      Bond  Rating   Rating 
Agency

                   [Moody's or Standard and Poor's]

  The total outstanding obligation of  [insert  amount],  excluding  refunded 
bond issues, exceeds the minimum  amount  of  $1  million.   All  outstanding 
revenue bonds issued by this government that have been rated  by  Moody's  or 
Standard and Poor's are rated as at least investment grade  (Moody's  Baa  or 
Standard and Poor's BBB) based on the most recent  ratings  published  within 
the last 12 months.  The revenue bonds listed are not backed  by  third-party 
credit enhancement or are insured by a municipal  bond  insurance  company.
Neither rating service has provided notification within the last 12 months of 
downgrading of bond ratings below investment grade or of withdrawal  of  bond 
rating other than for repayment of outstanding bond issues.

  I hereby certify that the wording  of  this  letter  is  identical  to  the 
wording specified in 40 C.F.R.  Part  280.104(e)  as  such  regulations  were 
constituted on the date shown immediately below.

[Signature]

[Name]

[Title]

[Date]

  (f) The director of the implementing agency may require financial condition 
reports at any time from  the  local  government  owner  or  operator,  local 
government guarantor, or any combination of owner, operator or guarantor.  If 
the director finds, on the basis of  financial  condition  reports  or  other 
information, that the local government owner or operator, guarantor,  or  any 
combination of owner, operator,  or  guarantor  no  longer  meets  the  local 
government bond rating test requirements of section 280.104, then  the  local 
government owner or operator shall obtain alternative coverage within 30 days 
after notification of such a finding.
  (g) If a local government owner or operator using the bond rating  test  to 
provide financial assurance finds that it no longer  meets  the  bond  rating 
test requirements, then the local government owner or operator  shall  obtain 
alternative coverage within 150 days of the change in status.

  History: 1998-2000 AACS.


R 29.2166a  Local government financial test.
  Rule 66a. Section 280.105 is amended to read as follows:
  Section 280.105. (a) A local government owner or operator may  satisfy  the 
requirements of section 280.93 by passing the  financial  test  specified  in 
this section.  To be eligible to use the financial test, the local government 
owner or operator shall have the ability and authority  to  assess  and  levy 
taxes or to freely establish fees and charges.  To pass the local  government 
financial test, the owner or operator shall meet the criteria  of  subsection 
(b)(2) and (3) of this section based on year-end financial statements for the 
latest completed fiscal year.
  (b) The local government owner or operator shall have all of the  following 
information available, as shown in the year-end financial statements for  the 
latest completed fiscal year:
  (1) Total revenues:  Consists of the sum  of  general  fund  operating  and 
nonoperating revenues, including all of the following:
  (i) Net local taxes.
  (ii) Licenses and permits.
  (iii) Fines and forfeitures.
  (iv) Revenues from use of money and property.
  (v) Charges for services.
  (vi) Investment earnings.
  (vii) Sales (property, publications, and the like).
  (viii) Intergovernmental revenues (restricted and unrestricted).
  (ix)  Total  revenues  from  all  other   governmental   funds,   including 
enterprise,  debt  service,  capital  projects,  and  special  revenues,  but 
excluding revenues to funds held in a trust or agency capacity. For  purposes 
of this test, the calculation of total revenues shall exclude  all  transfers 
between funds under the direct control of  the  local  government  using  the 
financial  test  (interfund  transfers),  liquidation  of  investments,   and 
issuance of debt.
  (2) Total expenditures:  Consists of the sum of general fund operating  and 
nonoperating expenditures, including all of the following:
  (i) Public safety.
  (ii) Public utilities.
  (iii) Transportation.
  (iv) Public works.
  (v) Environmental protection.
  (vi) Cultural and recreational.
  (vii) Community development.
  (viii) Revenue sharing.
  (ix) Employee benefits and compensation.
  (x) Office management.
  (xi) Planning and zoning.
  (xii) Capital projects.
  (xiii) Interest payments of debt.
  (xiv) Payments for retirement of debt principal.
  (xv)  Total  expenditures  from  all  other  governmental  funds  including 
enterprise, debt  service,  capital  projects,  and  special  revenues.   For 
purposes of this test, the calculation of total  expenditures  shall  exclude 
all transfers between funds under the direct control of the local  government 
using the financial test (interfund transfers).
  (3) Local revenues:  Consists of total revenues, as defined  in  subsection 
(b)(1)  of  this  section,  minus  the  sum  of  all  transfers  from   other 
governmental entities, including all moneys received from federal, state,  or 
local government sources.
  (4)  Debt service:  Consists of the  sum  of  all  interest  and  principal 
payments on all long-term credit obligations and all interest-bearing  short- 
term credit obligations.  Includes interest and principal payments on general 
obligation bonds, revenue bonds, notes, mortgages, judgments,  and  interest- 
bearing warrants.  Excludes payments on any of the following:
  (i) Non-interest-bearing short-term obligations.
  (ii) Interfund obligations.
  (iii) Amounts owed in a trust or agency capacity.
  (iv) Advances and contingent loans from other governments.
  (5) Total funds:  Consists of the sum of  cash  and  investment  securities 
from  all  funds,  including  general,  enterprise,  debt  service,   capital 
projects, and special revenue funds, but excluding employee retirement funds, 
at the end of the local  government's  financial  reporting  year.   Includes 
federal securities, federal agency securities,  state  and  local  government 
securities, and other securities, such as bonds, notes, and  mortgages.   For 
purposes of this test, the calculation of total funds  shall  exclude  agency 
funds, private trust funds, accounts receivable, value of real property,  and 
other non-security assets.
  (6) Population consists of the number of people in the area served  by  the 
local government.
  (c) The local government's year-end financial statements, if  independently 
audited, cannot include an adverse  auditor's  opinion  or  a  disclaimer  of 
opinion.  The local government cannot  have  outstanding  issues  of  general 
obligation or revenue bonds that are rated as less than investment grade.
  (d) The local government owner or operator shall have a  letter  signed  by 
the chief financial officer worded as specified in  subsection  (e)  of  this 
section.
  (e) To demonstrate that it meets the financial test under subsection (b) of 
this section, the chief financial officer of the local  government  owner  or 
operator shall 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 brackets are to be replaced  by  the 
relevant information and the brackets deleted:

Letter from Chief Financial Officer

  I am the chief financial officer of [insert:  name and address of the owner 
or operator].  This letter is in support of the use of the  local  government 
financial test to demonstrate financial responsibility for [insert:   "taking 
corrective action" and/or "compensating third parties for bodily  injury  and 
property damage"] caused by [insert:   "sudden  accidental  releases"  and/or 
"nonsudden accidental releases"] in the amount of at least  [insert:   dollar 
amount] per occurrence and [insert:  dollar amount] annual aggregate  arising 
from operating [an] underground storage tank[s].

  Underground storage tanks at the following facilities are assured  by  this 
financial test [list for each facility:  the name and address of the facility 
where tanks  assured  by  this  financial  test  are  located.   If  separate 
mechanisms or combinations of mechanisms are being used to assure any of  the 
tanks at this facility, list each tank assured by this financial test by  the 
tank identification number provided in the notification submitted pursuant to 
40 C.F.R. Part 280.22 or the corresponding state requirements.]

  This owner or operator has not received an adverse opinion, or a disclaimer 
of opinion from an independent auditor on its financial  statements  for  the 
latest completed fiscal year.  Any outstanding issues of  general  obligation 
or revenue bonds, if rated, have a Moody's rating of Aaa, Aa, A, or Baa or  a 
Standard and Poor's rating of AAA, AA, A, or BBB; if rated by both firms, the 
bonds have a Moody's rating of Aaa, Aa, A, or Baa and a Standard  and  Poor's 
rating of AAA, AA, A, or BBB.

Worksheet For Municipal Financial Test

PART I,  BASIC INFORMATION

1.      Total Revenues

        (a)     Revenues (dollars)
                Value of revenues excludes liquidation of
                investments and issuance of debt.  Value includes all
                general fund operating and non-operating revenues, as
                well as all revenues from all other governmental
                funds including enterprise, debt service, capital
                projects, and special revenues, but excluding
                revenues to funds held in a trust or agency capacity.

        (b)     Subtract interfund transfer (dollars)

        (c)     Total Revenues (dollars)

2.      Total Expenditures

        (a)     Expenditures (dollars)
                Value consists of the sum of general fund operating
                and non-operating expenditures including interest
                payments on debt, payments for retirement of debt
                principal, and total expenditures from all other
                governmental funds including enterprise, debt
                service, capital projects, and special revenues.

        (b)     Subtract interfund transfers (dollars)

        (c)     Total expenditures (dollars)

3.      Local Revenues

        (a)     Total Revenues (from 1c) (dollars)

        (b)     Subtract total intergovernmental transfers (dollars)

        (c)     Local revenues (dollars)

4.      Debt Service

        (a)     Interest and fiscal charges (dollars)

        (b)     Add debt retirement (dollars)

        (c)     Total debt service (dollars)

5.      Total funds (dollars)

        (Sum of amounts held as cash and investment securities from all
        funds, excluding amounts held for employee retirement funds,
        agency funds, and trust funds)

6.      Population (persons)

PART II.  APPLICATION OF TEST

7.      Total Revenues to Population

        (a)     Total revenues (from 1c)

        (b)     Population (from 6)

        (c)     Divide 7a by 7b

        (d)     Subtract 417

        (e)     Divide by 5,212

        (f)     Multiply by 4.095

8.      Total Expenses to Population

        (a)     Total expenses (from 2c)

        (b)     Population (from 6)

        (c)     Divide 8a by 8b

        (d)     Subtract 524

        (e)     Divide by 5,401

        (f)     Multiply by 4.095

9.      Local Revenues to Total Revenues

        (a)     Local Revenues (from 3c)

        (b)     Total Revenues (from 1c)

        (c)     Divide 9a by 9b

        (d)     Subtract .695

        (e)     Divide by .205

        (f)     Multiply by 2.840

10.     Debt Service to Population

        (a)     Debt Service (from 4d)

        (b)     Population (from 6)

        (c)     Divide 10a by 10b

        (d)     Subtract 51

        (e)     Divide by 1,038

        (f)     Multiply by  -1.866

11.     Debt Service to Total Revenues

        (a)     Debt Service (from 4d)

        (b)     Total Revenues (from 1c)

        (c)     Divide 11a by 11b

        (d)     Subtract .068

        (e)     Divide by .259

        (f)     Multiply by  -3.533

12.     Total Revenues to Total Expenses

        (a)     Total Revenues (from 1c)

        (b)     Total Expenses (from 2c)

        (c)     Divide 12a by 12b

        (d)     Subtract .910

        (e)     Divide by .899

        (f)     Multiply by 3.458

13.     Funds Balance to Total Revenues

        (a)     Total Funds (from 5)

        (b)     Total Revenues (from 1c)

        (c)     Divide 13a by 13b

        (d)     Subtract .891

        (e)     Divide by 9.156

        (f)     Multiply by 3.270

14.     Funds Balance to Total Expenses

        (a)     Total Funds (from 5)

        (b)     Total Expenses (from 2c)

        (c)     Divide 14a by 14b

        (d)     Subtract .866

        (e)     Divide by 6.409

        (f)     Multiply by 3.270

15.     Total Funds to Population

        (a)     Total Funds (from 5)

        (b)     Population (from 6)

        (c)     Divide 15a by 15b

        (d)     Subtract 270

        (e)     Divide by 4,548

        (f)     Multiply by 1.866

16.     Add 7f + 8f + 9f + 10f + 11f + 12f + 13f + 14f + 15f + 4.937.

  I hereby certify that the financial index shown on line 16 of the worksheet 
is greater than zero and that the wording of this letter is identical to  the 
wording specified in 40 C.F.R.  Part  280.105(c)  as  such  regulations  were 
constituted on the date shown immediately below.

[Signature]

[Name]

[Title]

[Date]

  (f) If a local government owner or  operator  using  the  test  to  provide 
financial assurance finds that it no longer meets  the  requirements  of  the 
financial test based on the year-end financial statements, then the owner  or 
operator shall obtain alternative coverage within 150 days of the end of  the 
year for which financial statements have been prepared.
  (g) The  director  of  the  implementing  agency  may  require  reports  of 
financial condition at any time from the local government owner or operator.
If the director finds, on the basis of the reports or other information, that 
the local government owner or operator no longer  meets  the  financial  test 
requirements of (b) to (e), then the owner or operator shall obtain alternate 
coverage within 30 days after notification of the finding.
  (h) If the local government owner or operator  fails  to  obtain  alternate 
assurance within 150 days of finding that it no longer meets the requirements 
of the financial test based on the year-end financial statements or within 30 
days of notification by the director of the implementing agency  that  it  no 
longer meets the requirements of  the  financial  test,  then  the  owner  or 
operator shall notify the director of the failure within 10 days.

  History: 1998-2000 AACS.


R 29.2167   Local government guarantee.
  Rule 67.  Section 280.106 is amended to read as follows:
  Section 280.106. (a) A local government owner or operator may  satisfy  the 
requirements of section 280.93 by obtaining a guarantee that conforms to  the 
requirements of this section.  The guarantor shall be  either  the  state  in 
which the local government owner or operator is located or a local government 
having a substantial governmental relationship with the  owner  and  operator 
and issuing the guarantee as an act incident to the  relationship.   A  local 
government acting as the guarantor shall demonstrate 1 of the following:
  (1) That it meets the bond rating test requirement of section  280.104  and 
shall deliver a copy of the chief financial officer's letter as contained  in 
section 280.104(c) to the local government owner or operator.
  (2) That it meets the worksheet test requirements of  section  280.105  and 
shall deliver a copy of the chief financial officer's letter as contained  in 
section 280.105(c) to the local government owner or operator.
  (3) That it  meets  the  local  government  fund  requirements  of  section 
280.107(a), (b), or (c) and shall deliver  a  copy  of  the  chief  financial 
officer's letter as contained in section  280.107  to  the  local  government 
owner or operator.
  (b) If the local government guarantor is unable  to  demonstrate  financial 
assurance under section 280.104, 280.105, 280.107(a), 280.107(b), or  280.107 
(c) at the end of the financial reporting  year,  then  the  guarantor  shall 
send, by certified mail, before cancellation or nonrenewal of the  guarantee, 
notice to the owner or operator.  The guarantee will terminate not less  than 
120 days after the date the owner or operator receives the  notification,  as 
evidenced by  the  return  receipt.   The  owner  or  operator  shall  obtain 
alternative coverage as specified in section 280.114(c).
   (c) The guarantee agreement shall be worded as specified in subsection (d) 
or (e) of this section, depending  on  which  of  the  following  alternative 
guarantee arrangements is selected:
  (1) If, in the  default  or  incapacity  of  the  owner  or  operator,  the 
guarantor guarantees to fund a standby trust as directed by the  director  of 
the implementing agency, then the guarantee shall be worded as  specified  in 
subsection (d) of this section.
  (2) If, in the  default  or  incapacity  of  the  owner  or  operator,  the 
guarantor guarantees to make payments as directed  by  the  director  of  the 
implementing agency  for  taking  corrective  action  or  compensating  third 
parties for bodily injury and property damage, then the  guarantee  shall  be 
worded as specified in subsection (e) of this section.
  (d) If the guarantor is a state, then the local government  guarantee  with 
standby trust shall be  worded  as  specified  in  subdivision  (1)  of  this 
subsection, except that instructions in brackets  are  to  be  replaced  with 
relevant information and the brackets deleted.  If the guarantor is  a  local 
government, then the local government guarantee with standby trust  shall  be 
worded as specified in  subdivision  (2)  of  this  subsection,  except  that 
instructions in brackets are to be replaced with relevant information and the 
brackets deleted.  Subdivisions (1)  and  (2)  of  this  subsection  read  as 
follows:
  (1) Local government guarantee with standby trust made by a state guarantee 
made this [date] by [name of state], herein referred to as guarantor, to [the 
state implementing agency] and to any and all third parties, and obliges,  on 
behalf of [local government owner or operator].

Recitals

  (i) Guarantor is a state.
  (ii) [Local government owner or operator] owns or  operates  the  following 
underground storage tank(s) covered by this guarantee: [list  the  number  of 
tanks at each facility and the name(s) and address(es) of  the  facility(ies) 
where the tanks are located.  If more than 1 instrument  is  used  to  assure 
different tanks at any 1 facility, for each tank covered by this  instrument, 
list the tank identification number provided in  the  notification  submitted 
pursuant to 40 C.F.R. Part 280 or the corresponding  state  requirement,  and 
the name and address of the facility.]  This guarantee  satisfies  40  C.F.R.
Part 280, subpart H, requirements for assuring funding for [insert:   "taking 
corrective action" and/or "compensating third parties for bodily  injury  and 
property damage caused by" either "sudden accidental releases" or  "nonsudden 
accidental releases" or "accidental releases"; if coverage is  different  for 
different tanks or locations, indicate the type  of  coverage  applicable  to 
each  tank  or  location]  arising  from  operating  the   above   identified 
underground storage tank(s) in the  amount  of  [insert  dollar  amount]  per 
occurrence and [insert dollar amount] annual aggregate.
  (iii) Guarantor guarantees to [implementing agency]  and  to  any  and  all 
third parties that:
  In the event that [local government owner or  operator]  fails  to  provide 
alternative coverage within 60 days after receipt of a notice of cancellation 
of  this  guarantee  and  the  [director  of  the  implementing  agency]  has 
determined or suspects that a release has occurred at an underground  storage 
tank covered by this guarantee, the guarantor,  upon  instructions  from  the 
[director] shall fund a standby trust fund in accordance with  the  provision 
of 40 C.F.R.
280.112, in an amount not to exceed the coverage limits specified above.

  In the event that the [director] determines that [local government owner or 
operator] has failed to perform corrective action for releases arising out of 
the operation of the above-identified tank(s) in accordance with 40 C.F.R.
Part 280, subpart  F,  the  guarantor  upon  written  instructions  from  the 
[director] shall fund a standby trust fund in accordance with the  provisions 
of 40 C.F.R. 280.112,  in  an  amount  not  to  exceed  the  coverage  limits 
specified above.

  If [owner or operator] fails to satisfy a judgment  or  award  based  on  a 
determination of liability for bodily injury  or  property  damage  to  third 
parties caused by ["sudden" and/or "nonsudden"] accidental  releases  arising 
from the operation of the above-identified tank(s), or fails to pay an amount 
agreed to in settlement of a claim arising from or alleged to arise from such 
injury  or  damage,  the  guarantor,  upon  written  instructions  from   the 
[director], shall fund a standby trust in accordance with the  provisions  of 
40 C.F.R.
280.112 to satisfy such judgment(s), award(s), or settlement agreement(s)  up 
to the limits of coverage specified above.

  (iv) Guarantor agrees to notify [owner or operator] by certified mail of  a 
voluntary or involuntary proceeding under title 11  (bankruptcy),  U.S.  Code 
naming guarantor  as  debtor,  within  10  days  after  commencement  of  the 
proceeding.
  (v) Guarantor agrees to remain bound under this  guarantee  notwithstanding 
any modification or alteration of  any  obligation  of  [owner  or  operator] 
pursuant to 40 C.F.R. Part 280.
  (vi) Guarantor agrees to remain bound under this guarantee for so  long  as 
[local  government  owner  or  operator]  must  comply  with  the  applicable 
financial responsibility requirements of 40 C.F.R. Part 280, subpart  H,  for 
the above identified tank(s), except that guarantor may cancel this guarantee 
by sending notice by certified mail to [owner or operator], such cancellation 
to become effective no earlier than 120 days after receipt of such notice  by 
[owner or operator], as evidenced by the return receipt.
  (vii) The guarantor's obligation does not apply to any of the following:
  (A) Any obligation of [local government owner or operator] under a  workers 
compensation, disability benefits, or unemployment compensation law or  other 
similar law;
  (B) Bodily injury to an employee of [insert:   local  government  owner  or 
operator] arising from, and in the course of, employment by  [insert:   local 
government owner or operator};
  (C)  Bodily  injury  or  property  damage  arising  from   the   ownership, 
maintenance, use, or entrustment to others of any aircraft, motor vehicle, or 
watercraft;
  (D) Property damage to any property owned, rented, loaned to, in the  care, 
custody, or control of, or occupied by [insert:  local  government  owner  or 
operator] that is not the  direct  result  of  a  release  from  a  petroleum 
underground storage tank;
  (E) Bodily damage or property damage for which [insert owner  or  operator] 
is obligated to pay damages by reason of the assumption  of  liability  in  a 
contract or agreement other than a contract or agreement entered into to meet 
the requirements of 40 C.F.R. 280.93.
  (viii) Guarantor expressly waives notice of acceptance of this guarantee by 
[the implementing agency],  by  any  or  all  third  parties,  or  by  [local 
government owner or operator],

  I hereby certify that the wording of this guarantee  is  identical  to  the 
wording  specified  in  40  C.F.R.  280.106(d)  as  such   regulations   were 
constituted on the effective date shown immediately below.

Effective Date:________________________________________________

[Name of guarantor]

[Authorized signature for guarantor]

[Name of person signing]

[Title of person signing]

Signature of witness or notary:

  (2)  Local  government  guarantee  with  standby  trust  made  by  a  local 
government.

  Guarantee made this [date]  by  [name  of  guaranteeing  entity],  a  local 
government organized under the laws of [name of state], herein referred to as 
guarantor, to [the state implementing  agency]  and  to  any  and  all  third 
parties, and obliges, on behalf of [local government owner or operator].

Recitals

  (i) Guarantor meets or exceeds [select  1:   the  local  bond  rating  test 
requirements of 40  C.F.R.  280.104,  the  local  government  financial  test 
requirements of 40 C.F.R. 280.105, or the  local  government  fund  under  40 
C.F.R.
Part 280.107(a), (b), or (c)].
  (ii) [Local government owner or operator] owns or  operates  the  following 
underground storage tank(s) covered by this guarantee:  [list the  number  of 
tanks at each facility and the name(s) and address(es) of  the  facility(ies) 
where the tanks are located.  If more than 1 instrument  is  used  to  assure 
different tanks at any 1 facility, for each tank covered by this  instrument, 
list the tank identification number provided in  the  notification  submitted 
pursuant to 40 C.F.R. Part 280 or the corresponding  state  requirement,  and 
the name and address of the facility.]  This guarantee  satisfies  40  C.F.R.
Part 280, subpart H, requirements for assuring funding for [insert:   "taking 
corrective action" and/or "compensating third parties for bodily  injury  and 
property damage caused by" either "sudden accidental releases" or  "nonsudden 
accidental releases" or "accidental releases"; if coverage is  different  for 
different tanks or locations, indicate the type  of  coverage  applicable  to 
each  tank  or  location]  arising  from   operating   the   above-identified 
underground storage tank(s) in the  amount  of  [insert  dollar  amount]  per 
occurrence and [insert:
dollar amount] annual aggregate.
  (iii) Incident to our substantial  governmental  relationship  with  [local 
government owner or operator], guarantor guarantees to [implementing  agency] 
and to any and all third parties that:

  In the event that [local government owner or  operator]  fails  to  provide 
alternative coverage within 60 days after receipt of a notice of cancellation 
of  this  guarantee  and  the  [director  of  the  implementing  agency]  has 
determined or suspects that a release has occurred at an underground  storage 
tank coverage by this guarantee, the guarantor, upon  instructions  from  the 
[director] shall fund a standby trust fund in accordance with the  provisions 
of 40 C.F.R.
280.112, in an amount not to exceed the coverage limits specified above.

  In the event that the [director] determines that [local government owner or 
operator] has failed to perform corrective action for releases arising out of 
the operation of the above-identified tank(s) in accordance  with  40  C.F.R.
280, subpart F, the guarantor upon written instructions from  the  [director] 
shall fund a standby trust fund in  accordance  with  the  provisions  of  40 
C.F.R. Part 280.112, in an amount not to exceed the coverage limits specified 
above.

  If [owner or operator] fails to satisfy a judgment  or  award  based  on  a 
determination of liability for bodily injury  or  property  damage  to  third 
parties caused by ["sudden" and/or "nonsudden"] accidental  releases  arising 
from the operation of the above identified tank(s), or fails to pay an amount 
agreed to in settlement of a claim arising from or alleged to arise from such 
injury  or  damage,  the  guarantor,  upon  written  instructions  from   the 
[director], shall fund a standby trust in accordance with the  provisions  of 
40 C.F.R.
280.112 to satisfy such judgment(s), award(s), or settlement agreement(s)  up 
to the limits of coverage specified above.

  (iv) Guarantor agrees that, if  at  the  end  of  any  fiscal  year  before 
cancellation of this guarantee, the guarantor fails to  meet  or  exceed  the 
requirements of the financial responsibility mechanism specified in paragraph 
(i) of this subdivision,  guarantor  shall  send  within  120  days  of  such 
failure, by certified mail, notice to [local government owner  or  operator], 
as evidenced by the return receipt.
  (v) Guarantor agrees to notify [owner or operator], by certified mail of  a 
voluntary or involuntary proceeding under title 11  {bankruptcy},  U.S.  Code 
naming guarantor  as  debtor,  within  10  days  after  commencement  of  the 
proceeding.
  (vi) Guarantor agrees to remain bound under this guarantee  notwithstanding 
any modification or alteration of  any  obligation  of  [owner  or  operator] 
pursuant to 40 C.F.R. Part 280.
  (vii) Guarantor agrees to remain bound under this guarantee for so long  as 
[local  government  owner  or  operator]  must  comply  with  the  applicable 
financial responsibility requirements of 40 C.F.R. Part 280, subpart  H,  for 
the above identified tank(s), except that guarantor may cancel this guarantee 
by sending notice by certified mail to [owner or operator], such cancellation 
to become effective no earlier than 120 days after receipt of such notice  by 
[owner or operator], as evidenced by the return receipt.
  (viii) The guarantor's obligation does not apply to any of the following:
  (A) Any obligation of [local government owner or operator] under a workers' 
compensation, disability benefits, or unemployment compensation law or  other 
similar law;
  (B) Bodily injury to an employee of [insert:   local  government  owner  or 
operator] arising from, and in the course of, employment by  [insert"   local 
government owner or operator];
  (C)  Bodily  injury  or  property  damage  arising  from   the   ownership, 
maintenance, use, or entrustment to others of any aircraft, motor vehicle, or 
watercraft;
  (D) Property damage to any property owned, rented, loaned to, in the  care, 
custody, or control of, or occupied by [insert:  local  government  owner  or 
operator] that is not the  direct  result  of  a  release  from  a  petroleum 
underground storage tank;
  (E) Bodily damage or property damage for which [insert:  owner or operator] 
is obligated to pay damages by reason of the assumption  of  liability  in  a 
contract or agreement other than a contract or agreement entered into to meet 
the requirements of 40 C.F.R. 280.93.
  (ix) Guarantor expressly waives notice of acceptance of this  guarantee  by 
[the implementing agency],  by  any  or  all  third  parties,  or  by  [local 
government owner or operator].

  I hereby certify that the wording of this guarantee  is  identical  to  the 
wording  specified  in  40  C.F.R.  280.106(d)  as  such   regulations   were 
constituted on the effective date shown immediately below.

Effective date:______________________________

[Name of guarantor]

[Authorized signature for guarantor]

[Name of person signing]

[Title of person signing]

Signature of witness or notary

  (e) If the guarantor is a state, the  local  government  guarantee  without 
standby trust shall be  worded  as  specified  in  subdivision  (1)  of  this 
subsection, except that instructions in brackets  are  to  be  replaced  with 
relevant information and the brackets deleted.  If the guarantor is  a  local 
government, the local government guarantee without  standby  trust  shall  be 
worded as specified in  subdivision  (2)  of  this  subsection,  except  that 
instructions in brackets are to be replaced with relevant information and the 
brackets deleted.  Subdivisions (1)  and  (2)  of  this  subsection  read  as 
follows:
  (1) Local government guarantee without standby trust made by a state.

  Guarantee made this [date] by  [name  of  state],  herein  referred  to  as 
guarantor, to [the state implementing  agency]  and  to  any  and  all  third 
parties, and obliges, on behalf of [local government owner or operator].

Recitals

  (i) Guarantor is a state.
  (ii) [Local government owner or operator] owns or  operates  the  following 
underground storage tank(s) covered by this guarantee:  [list the  number  of 
tanks at each facility and the name(s) and address(es) of  the  facility(ies) 
where the tanks are located.  If more than 1 instrument  is  used  to  assure 
different tanks at any 1 facility, for each tank covered by this  instrument, 
list the tank identification number provided in  the  notification  submitted 
pursuant to 40 C.F.R. Part 280 or the corresponding  state  requirement,  and 
the name and address of the facility.]  This guarantee  satisfies  40  C.F.R.
Part 280, subpart H, requirements for assuring funding for [insert:   "taking 
corrective action" and/or "compensating third parties for bodily  injury  and 
property damage caused by" either "sudden accidental releases" or  "nonsudden 
accidental releases" or "accidental releases"; if coverage is  different  for 
different tanks or locations, indicate the type  of  coverage  applicable  to 
each  tank  or  location]  arising  from  operating  the   above   identified 
underground storage tank(s) in the amount of  [insert:   dollar  amount]  per 
occurrence and [insert":  dollar amount] annual aggregate.
  (iii) Guarantor guarantees to [implementing agency]  and  to  any  and  all 
third parties and obliges that:

  In the event that [local government owner or  operator]  fails  to  provide 
alternative coverage within 60 days after receipt of a notice of cancellation 
of  this  guarantee  and  the  [director  of  the  implementing  agency]  has 
determined or suspects that a release has occurred at an underground  storage 
tank covered by this guarantee, the guarantor, upon written instructions  for 
the [director] shall make funds available to pay for corrective  actions  and 
compensate third parties for bodily injury and property damage in  an  amount 
not to exceed the coverage limits specified above.

  In the event that the [director] determines that [local government owner or 
operator] has failed to perform corrective action for releases arising out of 
the operation of the above identified tank(s) in accordance  with  40  C.F.R.
Part 280, subpart  F,  the  guarantor  upon  written  instructions  from  the 
[director] shall make funds available to pay for  corrective  actions  in  an 
amount not to exceed the coverage limits specified above.

  If [owner or operator] fails to satisfy a judgment  or  award  based  on  a 
determination of liability for bodily injury  or  property  damage  to  third 
parties caused by ["sudden" and/or "nonsudden"] accidental  releases  arising 
from the operation of the above identified tank(s), or fails to pay an amount 
agreed to in settlement of a claim arising from or alleged to arise from such 
injury  or  damage,  the  guarantor,  upon  written  instructions  from   the 
[director], shall make funds available to compensate third parties for bodily 
injury and property damage in an amount not to  exceed  the  coverage  limits 
specified above.

  (iv) Guarantor agrees to notify [owner or operator] by certified mail of  a 
voluntary or involuntary proceeding under title 11  {bankruptcy},  U.S.  Code 
naming guarantor  as  debtor,  within  10  days  after  commencement  of  the 
proceeding.
  (v) Guarantor agrees to remain bound under this  guarantee  notwithstanding 
any modification or alteration of  any  obligation  of  [owner  or  operator] 
pursuant to 40 C.F.R. Part 280.
  (vi) Guarantor agrees to remain bound under this guarantee for so  long  as 
[local  government  owner  or  operator]  must  comply  with  the  applicable 
financial responsibility requirements of 40 C.F.R. Part 280, subpart  H,  for 
the above identified tank(s), except that guarantor may cancel this guarantee 
by sending notice by certified mail to [owner or operator], such cancellation 
to become effective no earlier than 120 days after receipt of such notice  by 
[owner or operator], as evidenced by the return receipt.  If  notified  of  a 
probable release, the guarantor agrees to remain bound to the terms  of  this 
guarantee for all charges arising from the release, up to the coverage limits 
specified above, notwithstanding  the  cancellation  of  the  guarantee  with 
respect to future releases.
  (vii) The guarantor's obligation does not apply to any of the following:
  (A) Any obligation of [local government owner or operator] under a workers' 
compensation disability benefits, or unemployment compensation law  or  other 
similar law;
  (B) Bodily injury to an employee  of  [insert  local  government  owner  or 
operator] arising from, and in the course of, employment by  [insert:   local 
government owner or operator];
  (C)  Bodily  injury  or  property  damage  arising  from   the   ownership, 
maintenance, use, or entrustment to others of any aircraft, motor vehicle, or 
watercraft;
  (D) Property damage to any property owned, rented, loaned to, in the  care, 
custody, or control of, or occupied by [insert:  local  government  owner  or 
operator] that is not the  direct  result  of  a  release  from  a  petroleum 
underground storage tank;
  (E) Bodily damage or property damage for which [insert:  owner or operator] 
is obligated to pay damages by reason of the assumption  of  liability  in  a 
contract or agreement other than a contract or agreement entered into to meet 
the requirements of 40 C.F.R. 280.93.

  (viii) Guarantor expressly waives notice of acceptance of this guarantee by 
[the implementing agency],  by  any  or  all  third  parties,  or  by  [local 
government owner or operator].

  I hereby certify that the wording of this guarantee  is  identical  to  the 
wording  specified  in  40  C.F.R.  280.106(e)  as  such   regulations   were 
constituted on the effective date shown immediately below.

Effective date:  _______________________

[Name of guarantor]

[Authorized signature for guarantor]

[Name of person signing]

[Title of person signing]

Signature of witness or notary:

  (2) Local government guarantee  without  standby  trust  made  by  a  local 
government.

  Guarantee made this [date]  by  [name  of  guaranteeing  entity],  a  local 
government organized under the laws of [name of state], herein referred to as 
guarantor, to [the state implementing  agency]  and  to  any  and  all  third 
parties, and obliges, on behalf of [local government owner or operator].

Recitals

  (i) Guarantor meets or exceeds [select 1:  the local government bond rating 
test requirements of 40 C.F.R. 280.104, the local government  financial  test 
requirements of 40 C.F.R. 280.105, the local government fund under 40 C.F.R.
280.107(a), (b), or (c)].
  (ii) [Local government owner or operator] owns or  operates  the  following 
underground storage tank(s) covered by this guarantee:  [list the  number  of 
tanks at each facility and the name(s) and address(es) of  the  facility(ies) 
where the tanks are located.  If more than 1 instrument  is  used  to  assure 
different tanks at any 1 facility, for each tank covered by this  instrument, 
list the tank identification number provided in  the  notification  submitted 
pursuant to 40 C.F.R. Part 280 or the corresponding  state  requirement,  and 
the name and address of the facility.]  This guarantee  satisfies  40  C.F.R.
Part 280, subpart H, requirements for assuring funding for [insert:   "taking 
corrective action" and/or "compensating third parties for bodily  injury  and 
property damage caused by" either "sudden accidental releases" or  "nonsudden 
accidental releases" or "accidental releases"; if coverage is  different  for 
different tanks or locations, indicate the type  of  coverage  applicable  to 
each  tank  or  location]  arising  from  operating  the   above   identified 
underground storage tank(s) in the amount of  [insert:   dollar  amount]  per 
occurrence and [insert:  dollar amount] annual aggregate.

  (iii) Incident to our substantial  governmental  relationship  with  [local 
government owner or operator], guarantor guarantees to [implementing  agency] 
and to any and all third parties and obliges that:

  In the event that [local government owner or  operator]  fails  to  provide 
alternative coverage within 60 days after receipt of a notice of cancellation 
of  this  guarantee  and  the  [director  of  the  implementing  agency]  has 
determined or suspects that a release has occurred at an underground  storage 
tank covered by this guarantee, the guarantor, upon written instructions from 
the [director] shall make funds available to pay for corrective  actions  and 
compensate third parties for bodily injury and property damage in  an  amount 
not to exceed the coverage limits specified above.

  In the event that the [director] determines that [local government owner or 
operator] has failed to perform corrective action for releases arising out of 
the operation of the above identified tank(s) in accordance  with  40  C.F.R.
Part 280, subpart  F,  the  guarantor  upon  written  instructions  from  the 
[director] shall make funds available to pay for  corrective  actions  in  an 
amount not to exceed the coverage limits specified above.

  If [owner or operator] fails to satisfy a judgment  or  award  based  on  a 
determination of liability for bodily injury  or  property  damage  to  third 
parties caused by ["sudden" and/or "nonsudden"] accidental  releases  arising 
from the operation of the above identified tank(s), or fails to pay an amount 
agreed to in settlement of a claim arising from or alleged to arise from such 
injury  or  damage,  the  guarantor,  upon  written  instructions  from   the 
[director], shall make funds available to compensate third parties for bodily 
injury and property damage in an amount not to  exceed  the  coverage  limits 
specified above.

  (iv) Guarantor agrees that  if  at  the  end  of  any  fiscal  year  before 
cancellation of this guarantee, the guarantor fails to  meet  or  exceed  the 
requirements of the financial responsibility mechanism specified in paragraph 
(i) of this subdivision,  guarantor  shall  send  within  120  days  of  such 
failure, by certified mail, notice to [local government owner  or  operator], 
as evidenced by the return receipt.
  (v) Guarantor agrees to notify [owner or operator] by certified mail  of  a 
voluntary or involuntary proceeding under title 11  {bankruptcy},  U.S.  Code 
naming guarantor  as  debtor,  within  10  days  after  commencement  of  the 
proceeding.
  (vi) Guarantor agrees to remain bound under this guarantee  notwithstanding 
any modification or alteration of  any  obligation  of  [owner  or  operator] 
pursuant to 40 C.F.R. Part 280.
  (vii) Guarantor agrees to remain bound under this guarantee for so long  as 
[local  government  owner  or  operator]  must  comply  with  the  applicable 
financial responsibility requirements of 40 C.F.R. 280, subpart  H,  for  the 
above identified tank(s), except that guarantor may cancel this guarantee  by 
sending notice by certified mail to [owner or operator], such cancellation to 
become effective no earlier than 120 days after receipt  of  such  notice  by 
[owner or operator], as evidenced by the return receipt.  If  notified  of  a 
probable release, the guarantor agrees to remain bound to the terms  of  this 
guarantee for all charges arising form the release, up to the coverage limits 
specified above, notwithstanding  the  cancellation  of  the  guarantee  with 
respect to future releases.
  (viii) The guarantor's obligation does not apply to any of the following:
  (A) Any obligation of [local government owner or operator] under a workers' 
compensation disability benefits, or unemployment compensation law  or  other 
similar law;
  (B) Bodily injury to an employee of [insert:   local  government  owner  or 
operator] arising from, and in the course of, employment by  [insert:   local 
government owner or operator];
  (C)  Bodily  injury  or  property  damage  arising  from   the   ownership, 
maintenance, use, or entrustment to others of any aircraft, motor vehicle, or 
watercraft;
  (D) Property damage to any property owned, rented, loaned to, in the  care, 
custody, or control of, or occupied by [insert:  local  government  owner  or 
operator] that is not the  direct  result  of  a  release  from  a  petroleum 
underground storage tank;
  (E) Bodily damage or property damage for which [insert:  owner or operator] 
is obligated to pay damages by reason of the assumption  of  liability  in  a 
contract or agreement other than a contract or agreement entered into to meet 
the requirements of 40 C.F.R. 280.93.
  (ix) Guarantor expressly waives notice of acceptance of this  guarantee  by 
[the implementing agency],  by  any  or  all  third  parties,  or  by  [local 
government owner or operator].

  I hereby certify that the wording of this guarantee  is  identical  to  the 
wording  specified  in  40  C.F.R.  280.106(e)  as  such   regulations   were 
constituted on the effective date shown immediately below.

Effective date:  _________________________________

[Name of guarantor]

[Authorized signature for guarantor]

[Name of person signing]

[Title of person signing]

Signature of witness or notary:

  History:  1998-2000 AACS.


R 29.2168  Local government fund.
  Rule 68. Section 280.107 is amended to read as follows:
  Section 280.107.  A local government owner  or  operator  may  satisfy  the 
requirements of section 280.93 by establishing a dedicated fund account  that 
conforms to the  requirements  of  this  section.   Except  as  specified  in 
subsection (b) of this section, a dedicated fund may not be  commingled  with 
other funds or otherwise used in normal operations.  A dedicated fund will be 
considered eligible if it meets any of the following requirements:
  (a) The fund is dedicated by state constitutional  provision  or  by  local 
government statute, charter, ordinance, or order to pay 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 
underground storage tanks and is funded  for  the  full  amount  of  coverage 
required under section 280.93, or is funded for part of the  required  amount 
of coverage and is used in combination with another mechanism  or  mechanisms 
that provide the remaining coverage.
  (b) The fund is dedicated by state constitutional  provision  or  by  local 
government statute, charter, ordinance, or order as a  contingency  fund  for 
general emergencies, including  taking  corrective  action  and  compensating 
third parties for bodily injury and  property  damage  caused  by  accidental 
releases arising from the operation of petroleum underground  storage  tanks, 
and is funded for 5 times the full amount of coverage required under  section 
280.93 or is funded for part of the required amount of coverage and  is  used 
in  combination  with  another  mechanism  or  mechanisms  that  provide  the 
remaining coverage.  If the fund is funded for less than 5 times  the  amount 
of coverage required under section  280.93,  then  the  amount  of  financial 
responsibility demonstrated by the fund may not be more than 1/5  the  amount 
in the fund.
  (c) The fund is dedicated by state constitutional  provision  or  by  local 
government statute, charter, ordinance, or order to pay 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 
underground storage tanks.  A payment is made to the fund once every year for 
7 years until the fund is fully  funded.   The  7-year  period  is  hereafter 
referred to as the "pay-in period."  The amount  of  each  payment  shall  be 
determined by the following formula:

                                        TF - CF
                                           Y

  Where TF is the  total  required  financial  assurance  for  the  owner  or 
operator, CF is the current amount in the fund, and Y is the number of  years 
remaining in the pay-in  period,  and  either  of  the  following  provisions 
applies:
  (1) The local government owner or operator has available bonding authority, 
approved through  voter  referendum  if  approval  is  necessary  before  the 
issuance of bonds, for an amount equal to the difference between the required 
amount of coverage and the amount held in the dedicated  fund.   The  bonding 
authority  shall  be  available  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  underground 
storage tanks.
  (2) The local government owner or operator  has  a  letter  signed  by  the 
appropriate state attorney general  stating  that  the  use  of  the  bonding 
authority will not increase the local government's debt beyond the legal debt 
ceilings established by the relevant state laws.  The letter shall also state 
that prior voter  approval  is  not  necessary  before  use  of  the  bonding 
authority.
  (d) To demonstrate that it meets the requirements of the  local  government 
fund, the chief financial officer of the local government owner  or  operator 
or guarantor shall sign a letter worded exactly as follows, except  that  the 
instructions in brackets are to be replaced by the relevant  information  and 
the brackets deleted:

Letter From Chief Financial Officer

  I am the chief financial officer of [insert:  name  and  address  of  local 
government owner or operator, or guarantor].  This letter is  in  support  of 
the use of the local  government  fund  mechanism  to  demonstrate  financial 
responsibility for [insert:  "taking corrective action: and/or  "compensating 
third parties for bodily injury and property damage"] caused by [insert:
"sudden accidental releases: and/or "nonsudden accidental releases"]  in  the 
amount of at least [insert:  dollar  amount]  per  occurrence  and  insert:
dollar amount] annual  aggregate  arising  from  operating  (an)  underground 
storage tank(s).

  Underground storage tanks at the following facilities are assured  by  this 
local government fund mechanism:  [list for  each  facility:   the  name  and 
address of the facility where tanks are assured by the local government fund].

  [Insert:  "the local government fund is  funded  for  the  full  amount  of 
coverage required under section 280.93, or funded for part  of  the  required 
amount of coverage and used  in  combination  with  other  mechanism(s)  that 
provide the remaining coverage." Or "the local government fund is funded  for 
10 times the full amount of coverage required under section 280.93, or funded 
for part of the required amount of coverage  and  used  in  combination  with 
other mechanism(s) that provide the remaining coverage,"  or  "a  payment  is 
made to the fund once every year for 7 years until the fund  is  fully-funded 
and [name of local  government  owner  or  operator]  has  available  bonding 
authority, approved through voter referendum,  of  an  amount  equal  to  the 
difference between the required amount of coverage and the amount held in the 
dedicated fund" or "a payment is made to the fund once every year for 7 years 
until the fund is fully-funded and I have attached a  letter  signed  by  the 
state attorney general stating that (1) the use of the bonding authority will 
not increase the local government's  debt  beyond  the  legal  debt  ceilings 
established by the relevant state laws and (2) that prior voter  approval  is 
not necessary before use of the bonding authority"].

The details of the local government fund are as follows:

Amount in fund (market value of fund of close of last fiscal year): __________

[If fund balance is incrementally funded as specified in ß 280.107(c), insert:

Amount added to fund in the most recently completed fiscal year:
________

Number of years remaining in the pay-in period:  ________

  A copy of the state constitutional provision, or local government  statute, 
charter, ordinance or order dedicating the fund is attached.

  I hereby certify that the wording  of  this  letter  is  identical  to  the 
wording  specified  in  40  C.F.R.  280.107(d)  as  such   regulations   were 
constituted on the date shown immediately below.

[Signature]

[Name]

[Title]

[Date]

  History: 1998-2000 AACS.


R 29.2168a  Substitution  of  financial  assurance  mechanisms  by  owner  or 
operator.
  Rule 68a. Section 280.108 is amended to read as follows:
  Section 280.108. (a) An owner or  operator  may  substitute  any  alternate 
financial assurance mechanisms as specified in this subpart if, at all times, 
the owner operator maintains an effective financial  assurance  mechanism  or 
combination of mechanisms that satisfies the requirements of section 280.93.
  (b) After obtaining alternate financial  assurance  as  specified  in  this 
subpart, an owner or operator may cancel a financial assurance  mechanism  by 
providing notice to the provider of financial assurance.

  History: 1998-2000 AACS.


R 29.2168b Cancellation or nonrenew by provider of financial assurance.
  Rule 68b. Section 280.109 is amended to read as follows:
  Section 280.109. (a) 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.  Termination of a local  government 
guarantee, a 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.   Termination  of 
insurance  or   risk   retention   coverage,   except   for   nonpayment   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 
nonpayment of premium or misrepresentation by the insured may not occur until 
a minimum of 10 days after the date on which the owner or  operator  receives 
the notice of termination, as evidenced by the return receipt.
  (b) If a provider of financial responsibility cancels or fails to renew for 
reasons other than  incapacity  of  the  provider  as  specified  in  section 
280.114, then the owner  or  operator  shall  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, then the owner  or 
operator shall notify the director of the implementing agency of the  failure 
and submit all of the following information:
  (1) The name and address of the provider of financial assurance.
  (2) The effective date of termination.
  (3)  Evidence  of  the  financial  assistance  mechanism  subject  to   the 
termination maintained in accordance with section 280.107(b).

  History: 1998-2000 AACS.


R 29.2168c Reporting by owner or operator.
  Rule 68c. Section 280.110 is amended to read as follows:
  Section 280.110. (a) An owner or  operator  shall  submit  the  appropriate 
forms listed in section 280.111(b) documenting current evidence of  financial 
responsibility to the director of the implementing agency as follows:
  (1) Within 30 days after the owner or operator identifies a release from an 
underground storage tank required to be  reported  under  section  280.53  or 
280.61.
  (2) If the owner or operator fails to obtain alternate coverage as required 
by this subpart, within 30 days after the owner or operator  receives  notice 
of:
  (i) Commencement of a voluntary or involuntary proceeding  under  title  11 
(bankruptcy), U.S. Code, naming a provider of financial assurance as a debtor,
  (ii) Suspension or revocation of the authority of a provider  of  financial 
assurance to issue a financial assurance mechanism,
  (iii) Failure of a guarantor to meet the requirements of the financial test,
  (iv) Other incapacity of a provider of financial assurance, or
  (3) As required by sections 280.95(g) and 280.109(b).
  (b) An owner  or  operator  must  certify  compliance  with  the  financial 
responsibility requirements of  this  part  as  specified  in  the  new  tank 
notification form when notifying the appropriate state or local agency of the 
installation of a new underground storage tank under section 280.22.
  (c) The director of  the  implementing  agency  may  require  an  owner  or 
operator to submit evidence of financial assurance as  described  in  section 
280.111(b) or other information relevant to compliance with this  subpart  at 
any time.

  History: 1998-2000 AACS.


R 29.2168d Recordkeeping.
  Rule 68d.  Section 280.111 is amended to read as follows:
  Section 280.111 (a) Owners or  operators  must  maintain  evidence  of  all 
financial assurance mechanisms used to demonstrate  financial  responsibility 
under this subpart for an underground storage tank until  released  from  the 
requirements of this subpart under section 208.113.   An  owner  or  operator 
must maintain such evidence at the  underground  storage  tank  site  or  the 
owner's or operator's place of work.  Records  maintained  off-site  must  be 
made available upon request of the implementing agency.
  (b) An owner or operator must maintain the following types of  evidence  of 
financial responsibility:
  (1) An owner or operator using an assurance mechanism specified in  section 
280.95 through section 280.100 or section 280.102 or section 280.104  through 
section 280.107 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.  Such evidence 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) A local government owner or operator using a local government guarantee 
under section 280.106 (d) must maintain a copy of the  signed  standby  trust 
fund agreement and copies of any amendments to the agreement.
  (5) A local government owner or operator using the  local  government  bond 
rating test under section 280.104 must maintain a copy  of  its  bond  rating 
published within the last twelve months by Moody's or Standard and Poor's.
  (6) A local  government  owner  or  operator  using  the  local  government 
guarantee under section  280.106,  where  the  guarantor's  demonstration  of 
financial responsibility relies on the bond rating test under section 280.104 
must maintain a copy of the guarantor's bond rating published within the last 
twelve months by Moody's or Standard and Poor's.
  (7) 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.
  (8) An owner or operator covered by a state fund or other  state  assurance 
must maintain on file a copy of any  evidence  of  coverage  supplied  by  or 
required by the state under section 280.101(d).
  (9) An owner or operator  using  a  local  government  fund  under  section 
280.107 must maintain the following documents.
  (i) A copy of  the  state  constitutional  provision  or  local  government 
statute, charter, ordinance, or order dedicating the fund, and
  (ii) Year-end financial statements for the most recent completed  financial 
reporting year showing the amount in the fund.  If the  fund  is  established 
under section 280.107(a)(3)  using  incremental  funding  backed  by  bonding 
authority, the financial statements must show the  previous  year's  balance, 
the amount of funding during the year, and the closing balance in the fund.
  (iii)  If  the  fund  is  established  under  section  280.107(a)(3)  using 
incremental funding backed by bonding authority, the owner or  operator  must 
also maintain documentation of  the  required  bonding  authority,  including 
either the results of a voter referendum (under section 280.107(a)(3)(i)), or 
attestation  by  the  state  attorney  general  as  specified  under  section 
280.107(a)(3)(ii).
  (10) A local government  owner  or  operator  using  the  local  government 
guarantee supported by the local government fund must maintain a copy of  the 
guarantor's year-end financial  statements  for  the  most  recent  completed 
financial reporting year showing the amount of the fund.
  (11) An owner  or  operator  using  an  assurance  mechanism  specified  in 
sections  280.95  through  280.107  must  maintain  an  updated  copy  of   a 
certification of financial responsibility  worded  as  follows,  except  that 
instructions in brackets are to be replaced with the relevant information and 
the brackets deleted:

Certification Of Financial Responsibility

  [Owners or operator] hereby certifies that it is  in  compliance  with  the 
requirements of subpart H of 40 C.F.R. Part 280.

  The  financial  assurance  mechanism(s)  used  to   demonstrate   financial 
responsibility under subpart H of 40 C.F.R. Part 280 is (are) as follows:

  [For each mechanism, list the type of mechanism, name of issuer,  mechanism 
number (if applicable), amount of coverage, effective period of coverage  and 
whether the mechanism covers "taking corrective action" and/or  "compensating 
third parties for bodily injury and property damage caused by" either "sudden 
accidental  releases"  or  "nonsudden  accidental  releases"  or  "accidental 
releases."]

[Signature of owner or operator]

[Name of owner or operator]

[Title]

[Date]

[Signature of witness or notary]

[Name of witness or notary]

[Date]

  The owner or operator must update this certification whenever the financial 
assurance mechanism(s) used to demonstrate financial responsibility change(s).

  History: 1998-2000 AACS.


R 29.2169 Drawing on financial assurance mechanisms.
  Rule 69. Section 280.112 is amended to read as follows:
  Section 280.112. (a) Except as specified in subsection (d) of this section, 
the director of the implementing agency shall require the guarantor,  surety, 
or institution issuing a letter of  credit  to  place  the  amount  of  funds 
stipulated by the director,  up  to  the  limit  of  funds  provided  by  the 
financial assurance mechanism, into  the  standby  trust  if  either  of  the 
following provisions applies:
  (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 the director determines or suspects  that  a  release  from  an 
underground storage tank covered by the mechanism has occurred  and  notifies 
the owner or operator of the determination  or  suspicion  or  the  owner  or 
operator has notified the director under subpart E or F of these rules  of  a 
release from an underground storage tank covered by the mechanism.
  (2) The conditions of subsection (b)(1) or (2)(i) or (ii) of  this  section 
are satisfied.
  (b) The director of the implementing agency may draw  on  a  standby  trust 
fund when in either of the following situations:
  (1) The director 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  40  C.F.R.  part  280, 
subpart F.
  (2) The director has received either of the following:
  (i) Certification from the owner or operator and the third-party  liability 
claimant or claimants and from attorneys representing the owner  or  operator 
and the third-party  liability  claimant  or  claimants  that  a  third-party 
liability claim should  be  paid.   The  certification  shall  be  worded  as 
follows, except that instructions in brackets are to  be  replaced  with  the 
relevant information and the brackets deleted:

Certification of Valid Claim

  The undersigned, as principals and as legal representatives of [insert:
owner or operator] and [insert:  name and address of  third-party  claimant], 
hereby certify that the claim  of  bodily  injury  [and/or]  property  damage 
caused  by  an  accidental  release  arising  from  operating   [owner's   or 
operator's] underground  storage  tank  should  be  paid  in  the  amount  of 
$[________}.

[Signatures]

Owner or operator

Attorney for owner or operator

[Notary]                        Date

[Signatures]

Claimant(s)

Attorney(s) for claimant(s)

[Notary]                        Date

  (ii) 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 underground storage tank covered by financial  assurance  under  this 
subpart and the director determines  that  the  owner  or  operator  has  not 
satisfied the judgment.
  (c) If the director of the implementing 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, 
then the  first  priority  for  payment  shall  be  corrective  action  costs 
necessary to protect human health and the environment.   The  director  shall 
pay third-party liability claims in the order in which the director  receives 
certifications under subsection (b)(2)(i) of this  section  and  valid  court 
orders under subsection (b)(2)(ii) of this section.
  (d) A governmental entity acting as guarantor under section 280.106(e), the 
local government guarantee without standby  trust,  shall  make  payments  as 
directed by  the  director  under  the  circumstances  described  in  section 
280.112(a), (b), and (c).

  History: 1998-2000 AACS.


R 29.2170 Release from requirements.
  Rule 70. Section 280.113 is amended as to read as follows:
  Section  280.113.   An  owner  or  operator  need  not  maintain  financial 
responsibility under this subpart for an underground storage tank  after  the 
tank has been properly closed or, if corrective  action  is  required,  after 
corrective action has been completed and the tank has been properly closed as 
required by 40 C.F.R. part 280, subpart G.

  History: 1998-2000 AACS.


R 29.2171  Bankruptcy or other incapacity of owner or operator or provider of 
financial assurance.
  Rule 71. Section 280.114 is amended to read as follows:
  Section 280.114 (a) Within 10 days after commencement  of  a  voluntary  or 
involuntary proceeding under title 11 (bankruptcy) of the United States  Code 
naming an owner or operator as debtor, the owner or operator shall notify the 
director of the implementing agency, by certified mail, of  the  commencement 
of a proceeding and submit the appropriate forms listed in section 280.111(b) 
documenting current financial responsibility.
  (b) Within 10  days  after  commencement  of  a  voluntary  or  involuntary 
proceeding under title 11 (bankruptcy) of the United  States  Code  naming  a 
guarantor providing financial assurance as debtor, the guarantor shall notify 
the owner or operator, by certified mail, of the commencement of a proceeding 
as required under the terms of the guarantee specified in section 280.96.
  (c) Within 10  days  after  commencement  of  a  voluntary  or  involuntary 
proceeding under title 11 (bankruptcy), of the United States  Code  naming  a 
local government owner or operator as debtor, the local government  owner  or 
operator shall notify the director of the implementing agency,  by  certified 
mail, of the commencement of a proceeding and submit  the  appropriate  forms 
listed in section 280.111(b) documenting current financial responsibility.
  (d) Within 10  days  after  commencement  of  a  voluntary  or  involuntary 
proceeding under title 11 (bankruptcy), of the United States  Code  naming  a 
guarantor providing a local government financial  assurance  as  debtor,  the 
guarantor shall notify the local government owner or operator,  by  certified 
mail, of the commencement of a proceeding as required under the terms of  the 
guarantee specified in section 280.106.
  (e) 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  the 
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 
shall obtain alternate financial  assurance  as  specified  in  this  subpart 
within 30  days  after  receiving  notice  of  an  event  specified  in  this 
subsection.  If the owner or operator  does  not  obtain  alternate  coverage 
within 30 days after notification, the owner or  operator  shall  notify  the 
director of the implementing agency.
  (f) Within 30 days after receipt of notification that a state fund or other 
state assurance has become incapable of paying for assured corrective  action 
or third-party  compensation  costs,  the  owner  or  operator  shall  obtain 
alternate financial assurance.

  History: 1998-2000 AACS.


R 29.2172 Replenishment of guarantees, letters of credit, or surety bonds.
  Rule 72. Section 280.115 is amended to read as follows:
  Section 280.115. (a) If at any time after a standby trust is funded, on the 
instruction of the director of the implementing agency, with funds drawn from 
a guarantee, local government guarantee with standby trust, letter of credit, 
or surety bond, and if the amount in the standby trust is reduced  below  the 
full amount of coverage required, then the owner or operator  shall,  by  the 
anniversary date of the financial mechanism from which the funds were  drawn, 
do either of the following:
  (1) Replenish the value of financial assurance to equal the full amount  of 
coverage required.
  (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 to be provided by section 280.93 of this subpart.   If 
a combination of mechanisms was used to provide the assurance funds that were 
drawn upon, then replenishment shall occur by the earliest  anniversary  date 
among the mechanisms.

  History: 1998-2000 AACS.


R 29.2173   Suspension of enforcement.
  Rule 73.  Section 280.116 is deleted.
  Section 280.116. Deleted.

  History: 1998-2000 AACS.


R 29.2174   Adoption of standards by reference.
  Rule 74.   The following standards are adopted in these rules by  reference 
and are available as at the address and cost specified:
  (a) Recommended practice 1631  entitled  "Interior  Lining  of  Underground 
Storage Tanks" of the American Petroleum Institute, 1220  L.  Street,  North, 
Washington, DC 20005, at a cost as of the time of   adoption of  these  rules 
of $30.00.
  (b) NLPA standard  631  entitled  "Entry,  Cleaning,  Internal  Inspection, 
Repair and  Lining  of  Underground  Storage  Tanks"  of  the  National  Leak 
Prevention Association, 7685 Fields Ertel Road, Cincinnati, OH  45241,  at  a 
cost as of the time of adoption of these rules of $35.00.
  (c)  ASNT  recommended   practice   no.   SNT-TC-1A   entitled   "Personnel 
Qualification  in  Nondestructive  Testing"  of  the  American  Society   for 
Nondestructive Testing, 1711 Arlington Lane, P.O.  Box  28518,  Columbus,  OH 
43228-0518, at a cost as of the time of adoption of these rules of $41.60.
  (d) Standard practice SP 5 entitled "White Metal  Blast  Cleaning"  of  the 
Steel  Structures  Painting  Council,  4400  Fifth  Avenue,  Pittsburgh,   PA 
15213-2683, at a cost as of the time of adoption of these rules of $60.00.
  (e) NACE recommended practice RP-02-85-94 entitled  "Corrosion  Control  of 
Underground Storage Tank Systems by  Cathodic  Protection"  of  the  National 
Association of Corrosion Engineers (NACE)  International,  P.O.  Box  218340, 
Houston, TX, 77218, at a cost   as of the time of the adoption of these rules 
of $20.00.
  (f)  SW-846   entitled   "Test   Methods   for   Evaluating   Solid   Waste 
Physical/Chemical Methods" of  the  United  States  Environmental  Protection 
Association, 5403 W. Street, Washington, DC 20460 at a cost as of the time of 
adoption of these rules of $239.00.
  The standards adopted in this rule may also be purchased from Department of 
Environmental Quality, Town Center, 333 South Capitol Ave., Second Floor, P.O.
Box 30157, Lansing, Michigan 48909-7657, at a cost as of the time of adoption 
of  these  rules  $30.00,  $35.00,  $41.60,  $60.00,  $20.00,   or   $239.00, 
respectively.

   History: 1998-2000 AACS.