DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS

BUREAU OF FIRE SERVICES

UNDERGROUND STORAGE TANK REGULATIONS

(By authority conferred on the director of the department of licensing and regulatory

affairs by section 21106 of 1994 PA 451, MCL 324.21106, and Executive Reorganization

Order Numbers 1995-16, 1998-2, 2009-31, 2011-1, and 2012-7, MCL 324.99903,

29.461, 324.99919, 324. 99921, and 29.462.)

R 29.2101 Adoption of standards by reference.

Rule 1. The provisions of 40 C.F.R. part 280, subparts A to K, (2015), 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, and as

amended by 135 F.R. July 15, 2015, pages 41623 to 41669 are adopted by reference in

these rules. Copies of the adopted regulations may be obtained from the Superintendent

of Documents, U.S. Government Printing Office, Washington, DC 20402, 202-512-1800

or online at www.bookstore.gpo, at a cost as of the time of adoption of these rules of

$56.00, or a copy can be obtained online without cost at https:\\www.ecfr.gov.

History: 1998-2000 AACS; 2008 AACS; 2018 AACS.

AMENDMENTS TO ADOPTED FEDERAL REGULATIONS

SUBPART A. PROGRAM SCOPE AND INTERIM PROHIBITION

R 29.2103 Applicability.

Rule 3. Sections 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 as defined in section 280.12, except as otherwise provided in

subsection (c) of this section.

(1) Previously deferred UST systems. Airport hydrant fuel distribution systems,

UST systems with field-constructed tanks, and UST systems that store fuel solely for use

by emergency power generators shall meet the following requirements as applicable:

(i) Airport hydrant fuel distribution systems and UST systems with field-

constructed tanks shall meet the requirements in subpart K.

(ii) UST systems that store fuel solely for use by emergency power generators

installed on or before October 13, 2015 shall meet the subpart D requirements on or

before October 13, 2018.

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(iii) UST systems that store fuel solely for use by emergency power generators

installed after October 13, 2015 shall meet all applicable requirements of these rules at

installation.

(2) Any UST system listed in subsection c of this section shall meet the

requirements of section 280.11.

(b) Deleted.

(c) Partial exclusions. Subparts B, C, D, E, G, J, and K do not apply to any of the

following types of UST systems:

(1) A wastewater treatment tank system not covered under definition of

underground storage tank.

(2) Any UST system that 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 licensed by the nuclear regulatory commission and subject to

nuclear regulatory commission requirements regarding design and quality criteria,

including but not limited to 10 C.F.R. part 50.

(4) Aboveground storage tanks associated with either of the following:

(i) Airport hydrant fuel distribution systems regulated under subpart K.

(ii) UST systems that have field-constructed tanks regulated under subpart K.

(d) 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 an 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.

(e) An implementing agency may order, at the expense of the owner, a tightness

test of a UST system in accordance with the provisions of subsections 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.

(f) 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, and stating

what equivalent safety factors will be used instead of the rule. 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

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finding that the variation does not result in an increased hazard to life, property, or the

environment. The findings must be transmitted to the person requesting the variation and

must be maintained at the facility.

(1) Within 45 days of receiving a request for variance of section 280.35, the

department may grant a variance to any person requesting to extend the compliance

deadline for completion of integrity testing, as required under Section 280.35, of existing

spill prevention equipment and containment sumps used for interstitial monitoring at all

systems that they are responsible for under this section, not to exceed October 13, 2021.

Existing spill prevention equipment and containment sumps are those installed prior to

April 11, 2016.

(2) As an equivalent measure for purposes of granting the variance, the requestor shall

inspect all spill prevention equipment and containment sumps used for interstitial

monitoring included under the variance as part of their normal inspections as required by

these rules. Equivalent measures may be ceased for spill prevention equipment and

containment sumps for which integrity testing has been completed.

(3) The variance request shall include a written plan that the requestor will implement

by October 13, 2021 to insure completion of integrity testing at all systems that the

requestor is responsible for.

(g) 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.

(h) All UST systems shall comply with R 29.5601 to R 29.5605 and R 29.5651 to

R 29.5917. These rules shall supersede any conflicting provision of R 29.5601 to

R 29.5605 and R 29.5651 to R 29.5917.

(i) 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 are deemed to

be in compliance with these amendatory rules. Where specified, the provisions of these

rules are retroactive.

History: 1998-2000 AACS; 2008 AACS; 2018 AACS.

R 29.2105 Installation requirements for partially excluded UST systems.

Rule 5. Section 280.11 is amended to read as adopted from the July 15, 2015,

EPA-UST rules as follows:

Section 280.11. (a) No person may install an UST system listed in

subdivisions 280.10(c)(1), (2), or (3) for the purpose of storing regulated substances

unless the UST system:

(1) Will prevent releases due to corrosion or structural failure for the operational life

of the UST system;

(2) Is cathodically protected against corrosion, constructed of noncorrodible material,

steel clad with a noncorrodible material, or designed in a manner to prevent the release or

threatened release of any stored substance; and

(3) Is constructed or lined with material that is compatible with the stored substance.

(b) Not withstanding paragraph (a) of this section, an owner or operator may install an

UST system without corrosion protection at a site that is determined by a corrosion expert

not to be corrosive enough to cause it to have a release due to corrosion during its

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operating life. Owners and operators shall maintain records that demonstrate compliance

with the requirements of this paragraph for the remaining life of the tank.

History: 1990 AACS; 2018 AACS.

R 29.2107 Definitions.

Rule 7. Section 280.12 is amended to read as follows:

Section 280.12. Definitions.

"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 an 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

UST system and belowground releases associated with overfills and transfer operations

as the regulated substance moves to or from an UST.

"Beneath the surface of the ground" means beneath the ground surface or

otherwise covered with earthen materials.

"Cathodic protection" is a technique to prevent the 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. section 9601 et seq.

"Class A operator" means either the O/O as defined in these rules or legal designee

and has primary responsibility to operate and maintain the UST system. The class A

operator typically manages resources and personnel, such as establishing work

assignments, to achieve and maintain compliance with regulatory requirements.

"Class B operator" means an individual, or individuals, who has day-to-day

responsibility for implementing applicable regulatory requirements established by the

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department. The class B operator typically implements in-field aspects of operation,

maintenance, and recordkeeping for USTs at 1 or more facilities.

"Class C operator" means an individual responsible for responding to alarms or

other indications of emergencies caused by spills, releases, overfills, and other emergency

conditions associated with an UST system. The class C operator typically controls or

monitors the dispensing or sale of regulated substances. A "class C operator” is not

considered a "designated class B operator" as defined in these rules, although the same

individual may hold both positions.

"Compatible" means the ability of 2 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 determining how much piping is connected to any

individual UST system, the piping that joins 2 UST systems must be allocated equally

between the systems.

"Consumptive use," with respect to heating oil, means consumed on the premises.

“Containment sump” means a liquid-tight container that protects the environment

by containing leaks and spills of regulated substances from piping, dispensers, pumps and

related components in the containment area. Containment sumps may be single walled or

secondarily contained and located at the top of tank (tank top or submersible turbine

pump sump), underneath the dispenser (under-dispenser containment sump), or at other

points in the piping run (transition or intermediate sump).

"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" An UST meets the requirements of exclusion (o) for

deminimis concentration of regulated substances, under the definition of "UST system,"

if both of the following conditions are met:

(a) The concentration of a regulated substance in an UST system, when mixed

with a nonregulated substance, is less than 110 gallons of regulated substance when the

storage tank is full.

(b) 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.

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"Department" means the department of licensing and regulatory affairs, bureau of

fire services.

"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.

“Dispenser” means equipment located aboveground that dispenses regulated

substances from the UST system.

“Dispenser system” means the dispenser and the equipment necessary to connect

the dispenser to the UST system.

"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.

"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 floor of the pit and trenches into

which the UST system is 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

O/O 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 O/O 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 must be located on the farm property. "Farm" includes fish hatcheries,

rangeland, and nurseries that have growing operations.

"Field-constructed tank" means a tank that 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

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finished products or by-products from the production process or tanks that are only used

to recirculate materials.

"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 UST 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 any

substance regulated as a hazardous 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

1 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 of licensing and regulatory affairs,

bureau of fire services, by section 21106 of 1994 PA 451, MCL 324.21106, or a local

unit of government delegated authority under part 211 of 1994 PA 451, MCL 324.21101

to 324.21113.

"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 must be a minimum of 100 mils in thickness. The integral secondary

containment system must be acceptable to the department.

"In use" means that an UST or UST 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 UST system

from releasing product.

"Motor fuel" means a complex blend of hydrocarbons typically used in the

operation of a motor engine, such as motor gasoline, aviation gasoline, no. 1 or no. 2

diesel fuel, or any blend containing 1 or more of these substances (for example: motor

gasoline blended with alcohol).

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“NAPL” means a nonaqueous-phase liquid or a nonaqueous-phase liquid solution

composed of 1 or more organic compounds that are immiscible or sparingly soluble in

water.

"New tank system" means a tank system that 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 heating oil is used.

"Operational life" means the period beginning when installation of the tank system

has commenced until the time the tank system is permanently 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 UST system.

"Out of service" is defined the same as "out of use".

"Out of use" means that an UST system is not in use. (See definition of "in use").

The system must 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 UST system or in the property on

which an 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 UST system and

without being otherwise engaged in petroleum production, refining, or marketing relating

to the UST system, holds indicative of ownership primarily to protect the person's or the

regulated financial institution's security interest in the UST system or the property on

which it is located or to implement the terms of a trust agreement.

"O/O" means owner and/or operator.

"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.

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"Petroleum UST system" means an UST 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.

(g) Petroleum solvents.

"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 install as new 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 1976 PA 399,

MCL 325.1001 to 325.1023, and rules promulgated under that act.

"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. section 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. section 6921 to section 6931 and section 6933 to

section 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:

(1) Motor fuels.

(2) Jet fuels.

(3) Distillate fuel oils.

(4) Residual fuel oils.

(5) Lubricants.

(6) Petroleum solvents.

(7) Used oils.

"Release" means any spilling, leaking, emitting, discharging, escaping, leaching,

or disposing from an UST into groundwater, surface water, or subsurface soils.

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"Release detection" means determining whether a release of a regulated substance

has occurred from the UST system into the environment or a leak has occurred 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 to proper operating

condition, such as a tank, pipe, spill prevention equipment, overfill prevention equipment,

corrosion protection equipment, release detection equipment or other UST system

component that has caused a release of product from the UST system or has failed to

function properly. 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 must be

considered a replacement of the underground piping and must meet the requirements of

the new UST system underground piping in subsection 280.20(b).

“Replaced” means either of the following:

(1) For a tank – to remove a tank and install another tank.

(2) For piping – to remove 50% or more of piping and install other piping,

excluding connectors, connected to a single tank. For tanks with multiple piping runs,

this definition applies independently to each piping run.

"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. section 9601 et seq. as amended by 1986 Public Law 99-499.

"Secondary containment," 360-degree integral secondary containment system and,

for piping, a 360-degree double-walled pipe or a 360-degree integral secondary

containment system or other method of containment indicated in subsection 280.42(e).

Secondary containment systems must meet the requirements of subsections 280.42(a),

(b), and (d). This system has an inner and outer barrier with an interstitial space that is

monitored for leaks. This term includes containment sumps when used for interstitial

monitoring of piping.

"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" means fire marshal for the state of Michigan.

"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.

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“Training program” means any program that provides information to and evaluates

the knowledge of a class A, class B, or class C operator through testing, practical

demonstration, or another approach acceptable to the implementing agency regarding

requirements for UST systems that meet the requirements of subpart J.

"Under-dispenser containment (UDC)" means containment underneath a dispenser

that will prevent leaks from the dispenser and piping within or above the UDC 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 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 UST system does not include any of

the following:

(a) A farm or residential tank that has a capacity of 1,100 gallons or less and that is

used for storing motor fuel for noncommercial purposes.

(b) A tank used for storing heating oil for consumptive use on the premises where

the oil is stored.

(c) A septic tank.

(d) A pipeline facility, including gathering lines, regulated under either of the

following:

(1) The natural gas pipeline safety act of 1968, Public Law 90-481, as amended,

49 U.S.C. appendix section 1671 to section 1677, section 1679A to section 1682, and

section 1683 to section 1687.

(2) 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 section 2001.

(e) A surface impoundment, pit, pond, or lagoon.

(f) A stormwater or wastewater collection system.

(g) A flow-through process tank.

(h) A liquid trap or associated gathering lines directly related to oil or gas

production and gathering operations.

(i) 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.

(j) Any pipes connected to a tank that is described in subparagraphs (a) to (i) and

(k) to (p) of this paragraph.

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(k) An UST 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. section 6921 to section 6931 and section 6933 to

section 6939b, or a mixture of the hazardous waste and other regulated substances.

(l) 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.

section 1317 and section 342.

(m) Equipment or machinery that contains regulated substances for operational

purposes, such as hydraulic lift tanks and electrical equipment tanks.

(n) An UST system that has a capacity of 110 gallons or less.

(o) An UST system that contains a deminimis concentration of regulated

substances. Please see the definition of "deminimis concentration."

(p) An emergency spill or overflow containment UST system that is emptied

within 10 days after use.

"Underground tank" means an UST, 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 UST 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; 2012 AACS; 2018 AACS.

R 29.2108 Rescinded.

History: 1998-2000 AACS; 2012 AACS; 2018 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. Performance standards for new UST systems. In order to prevent

releases due to structural failure, corrosion, or spills and overfills for as long as the UST

system is used to store regulated substances, all owners and operators of new UST

systems shall meet the following requirements. In addition, except for suction piping that

meets the requirements of subparagraphs 280.41(b)(1)(ii)(A) to (E), tanks and piping

must be secondarily contained and use interstitial monitoring in accordance with

subsection 280.43(g) of these rules. Secondary containment must be able to contain

regulated substances leaked from the primary containment until they are detected and

removed and prevent the release of regulated substances to the environment at any time

during the operational life of the UST system. For cases where the piping meets the

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definition of “replaced” in section 280.12, the entire piping run must be secondarily

contained.

(a) Tanks. Each tank must meet the definition of secondary containment as defined

in section 280.12 and must be properly designed and constructed. Any portion of a tank

that is underground and that routinely contains product must be protected from corrosion

by 1 of the following:

(1) The tank must be constructed of fiberglass-reinforced plastic.

(2) The tank must be constructed of steel and be cathodically protected by all of

the following:

(i) The tank must be coated with a suitable dielectric material.

(ii) Factory-installed or field-installed cathodic protection systems must be

designed by a corrosion expert.

(iii) Impressed current systems must be designed to allow a determination of

current operating status as required in subsection 280.31(c).

(iv) Cathodic protection systems must be operated and maintained in accordance

with section 280.31 or according to procedures acceptable to the department.

(3) The tank must be constructed of a steel-fiberglass-reinforced-plastic

composite. The fiberglass-reinforced plastic must be a minimum of 100 mils thick.

(4) The tank is constructed of metal without additional corrosion protection

measures provided that both of the following requirements are met:

(i) The tank is installed at a site that is determined by a corrosion expert not to be

corrosive enough to cause it to have a release due to corrosion during its operating life.

(ii) Owners and operators maintain records that demonstrate compliance with the

requirements of paragraph (a)(4)(i) of this section for the remaining life of the tank.

(5) The department shall determine that the tank construction and corrosion

protection have been 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 must be properly designed, constructed, and

protected from corrosion in compliance with 1 of the following provisions:

(1) The piping must be constructed of fiberglass-reinforced plastic.

(2) The piping must be constructed of metal and be cathodically protected in the

following manner:

(i) The piping must be coated with a suitable dielectric material.

(ii) Field-installed cathodic protection systems must be designed by a corrosion

expert.

(iii) Impressed current systems must be designed to allow a determination of

current operating status as required in subsection 280.31(c).

(iv) Cathodic protection systems must 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 must have

corrosion protection as specified in paragraphs (2)(i) to (iv) of this subdivision.

(3) The piping is constructed of metal without additional corrosion protection

measures provided that both of the following requirements are met:

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(i) The piping is installed at a site that is determined by a corrosion expert to not

be corrosive enough to cause it to have a release due to corrosion during its operating life.

(ii) Owners and operators maintain records that demonstrate compliance with the

requirements of paragraph (b)(3)(i) of this section for the remaining life of the piping.

(4) The department shall determine that the piping construction and corrosion

protection have been 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 subdivisions (2) and (3) of this subsection, to prevent

spilling and overfilling associated with product transfer to the UST system, owners and

operators shall use both of 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 that does 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 must be installed in the

suction piping if the flow restrictor causes a pressure buildup in the tank when activated.

(C) Restrict the flow from the delivery truck into the tank 30 minutes before

overfill, and sound an audible alarm 1 minute before overfill, or 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 paragraphs (1)(i) or (1)(ii) of this subsection

or the UST system is filled by transfers of no more than 25 gallons at 1 time.

(3) Flow restrictors used in vent lines may not be used to comply with paragraph

(c)(1)(ii) of this section when overfill prevention is installed or replaced.

(4) Spill and overfill prevention equipment shall be periodically tested or inspected

in accordance with section 280.35 or as otherwise allowed under section 280.10(f).

(d) All tanks and piping must be properly designed, constructed, installed,

operated, and maintained in accordance with R 29.5601 to R 29.5917. 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 an UST system unless the UST system is more than the

following distances from the following items:

(i) All UST system installations must also be in compliance with section 12701 of

part 127 of 1978 PA 368, MCL 333.12701, and rules promulgated under 1978 PA 368.

(ii) Section 1001 of 1976 PA 399, MCL 325.1001 to 325.1023, and rules

promulgated under 1976 PA 399.

(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

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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) All work listed in the manufacturer’s installation checklists has been

completed.

(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.

(f) Dispenser systems. Each UST system must be equipped with under-dispenser

containment for any new dispenser system installed.

(1) A dispenser system is considered new when both the dispenser and all of the

equipment needed to connect the dispenser to the UST system are installed at an

underground storage tank facility. The equipment necessary to connect the dispenser to

the UST system includes check valves, shear valves, unburied risers, flexible connectors,

or other transitional components that are underneath the dispenser and connect the

dispenser to the underground piping.

(2) Under-dispenser containment must be liquid-tight on its sides, bottom, and at

any penetrations. Under-dispenser containment must allow for visual inspection and

access to the components in the containment system or be periodically monitored for

leaks from the dispenser system.

History: 1998-2000 AACS; 2008 AACS; 2018 AACS.

R 29.2111 Upgrading existing UST systems.

Rule 11. Section 280.21 is amended to read as follows:

Section 280.21. In accordance with subpart G, owners and operators shall

permanently close any UST system that does not meet the new UST system performance

standards in section 280.20 or has not been upgraded in accordance with subsections (b)

to (d) of this section. This does not apply to previously deferred UST systems described

in subpart K of these rules and where an upgrade is determined to be appropriate by the

implementing agency.

(a) Alternatives allowed. All existing UST systems must 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 (d) of this section.

(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 must be upgraded to meet the

provisions of subsection 280.20(d) and 1 of the following requirements:

(1) Interior lining. Tanks upgraded by internal lining must meet the following:

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(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. If the internal lining is no longer performing in accordance with original

design specifications and cannot be repaired in accordance with a code of practice

developed by a nationally recognized association or independent testing laboratory, then

the lined tank shall be permanently closed in accordance with subpart G of these rules.

(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

subsection 280.20(e). In addition, all of the following requirements must 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,

"ASNT Standard for Qualification in Nondestructive Testing Personnel, CP-189-2011"

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 must 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 must 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.

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(G) Thin wall target area gauging. Areas that have a thickness gauging

measurements less than 50% of the original wall thickness as specified in UL 58 must

each receive 8 additional readings. Four of the 8 readings must be equally spaced

readings and each of the 4 readings must be at a 1 1/2 inch radius from the initial reading.

The 4 other readings must be equally spaced readings each at a 3-inch radius from the

initial reading. The average of the 8 readings must be reported as the average reading of

the thin wall target area.

(H) Perforations. Perforations must be identified and reamed to establish a

minimum of 1/8 of an inch edge wall thickness before any repairs. Eight thickness

measurements must 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 must be

established by averaging all of the section thicknesses reported. Thickness gauge

readings must 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 that has minimum dimensions of 8 inches by 8 inches and that 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 is 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 must be provided with a 1/4 inch thick steel striker plate that has minimum

dimensions of 8 inches by 8 inches and that 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 must not have any perforations.

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(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) The department shall approve all lining materials and procedures. Each lining

manufacturer must 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 O/O 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 must be on a form provided by the

department. A qualified applicator shall perform any tank lining.

(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 lining company responsible for the lining upgrade shall sign the report.

(2) Cathodic protection. Tanks upgraded by cathodic protection must meet the

requirements of section 280.20(a)(2)(ii), (iii), and (iv) and all of the following provisions:

(i) The integrity of the tank is ensured using 1 of the following methods:

(A) The tank was internally inspected and assessed to ensure that the tank was

structurally sound and free of corrosion holes prior to installing the cathodic protection

system.

(B) The tank has been installed for less than 10 years and is monitored monthly for

releases in accordance with subsections 280.43(d) to (i).

(C) 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 subsection 280.43(c).

The first tightness test must be conducted before installing the cathodic protection

system. The second tightness test must be conducted between 3 and 6 months after the

first operation of the cathodic protection system.

(D) 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 subparagraph (1)(ii)(A) of this subsection

and shall conduct the ultrasonic thickness gauging in accordance with

subparagraphs (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.

(E) 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 subparagraphs (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 corrosion expert shall

sign the report.

(iii) All internally inspected tanks that meet the upgrading requirements by

cathodic protection must be provided with a ¼ inch thick steel striker plate that is not less

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than 8 inches by 8 inches and that is rolled to the contour of the tank and welded on all

seams in a continuous manner under the fill tube.

(iv) The O/O 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 must 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 paragraphs (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 that routinely contains regulated

substances and that is in contact with the ground must be cathodically protected in

accordance with the provisions of subsection 280.20(d) and must meet the requirements

of paragraphs 280.20(b)(2)(ii) to (v).

(1) Replacement of underground piping systems in contact with the ground must

include the installation of secondary containment as defined in section 280.12.

(2) The O/O 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. To prevent spilling and

overfilling associated with product transfer to the UST system, all existing UST systems

must comply with UST system spill and overfill prevention equipment requirements

specified in subsection 280.20(c).

History: 1998-2000 AACS; 2008 AACS; 2018 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 1994

PA 451, MCL 324.21101 to 324.21113, on forms provided by the department. Owners

shall register all UST systems and pay all fees 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

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of ownership on a registration for underground storage tank form. New owners of an

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 must be

emptied under subsection 280.71(b). Also, any change in tank status or any change in the

information required on the form must be reported to the department on the registration

for underground storage tank form within 30 days of the change.

(b) The owner must submit 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 must 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) The construction materials of the tank and piping.

(4) The dimensions and capacity of each tank.

(5) The name of the regulated substance to be stored.

(6) A diagram of the UST system.

(7) 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 department shall be notified not

less than 7 calendar days before installation of the UST system. The department 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 must be covered from sight and a notarized affidavit must be submitted

by the owner to the department attesting to the fact that the installation complied with the

applicable rules under subsection 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 1994 PA 451, MCL 324.21101 to 324.21113. Upon

request, all UST information submitted to the department for review must 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.

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(d) Any O/O who meets the requirements of a designated clean corporate citizen in

R 336.2401 to R 336.2420 is 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 subsection 280.20(e).

(2) Cathodic protection of steel tanks and piping under subsections 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 subsection 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 O/O shall verify annually that he or she is compliant with the registration

requirements and submit that verification to the department. This must be accomplished

by using either the department database or a form provided by the department. The

department shall provide proof of registration upon receipt of proper registration and O/O

verification.

History: 1998-2000 AACS; 2008 AACS; 2018 AACS.

SUBPART C. GENERAL OPERATING REQUIREMENTS

R 29.2114 Spill and overfill control.

Rule 14. Section 280.30 is added as adopted from the July 15, 2015, EPA-UST

rules as follows:

Section 280.30. (a) Owners and operators shall ensure that releases due to spilling

or overfilling do not occur. The owner and operator shall ensure that the volume available

in the tank is greater than the volume of product to be transferred to the tank before the

transfer is made and that the transfer operation is monitored constantly to prevent

overfilling and spilling.

(b) The owner and operator shall report, investigate, and clean up any spills and

overfills in accordance with section 280.53.

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History: 2018 AACS.

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 shall 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 are 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 are 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 must be done within 6 months

of installation regardless of the surface over the UST system. Testing must also be

conducted every 3 years after the initial testing.

(2) Inspection criteria. The corrosion engineer who designs the system shall

specify the criteria that are used to determine that cathodic protection is performing

adequately. If the corrosion engineer does not specify criteria, then the criteria must be

as specified in NACE international standard practice SP-02-85-2011.

(c) UST systems with impressed current cathodic protection systems shall 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 shall be maintained (in accordance with section 280.34) to

demonstrate compliance with the performance standards in this section. These records

must provide both of the following:

(1) The results of the last 3 inspections required in paragraph (c) of this section.

(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 O/O not meeting the cathodic

protection tester definition. The O/O 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 subsection 280.20(a)(3) and

that is equipped with galvanic anodes installed by the tank manufacturer. The tank shall

be installed and tested in accordance with section 280.20(d).

(2) A 360-degree double-wall steel tank equipped with galvanic anodes.

Interstitial monitoring of the tank must be conducted in accordance with subsection

280.43(g).

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(g) Another method determined by the department to be equally protective.

History: 1998-2000 AACS; 2018 AACS.

R 29.2116 Compatibility.

Rule 16, Section 280.32 is added as adopted from the July 15, 2015, EPA-UST rules

as follows:

Section 280.32. Compatibility. (a) Owners and operators shall use an UST system

made of or lined with materials that are compatible with the substance stored in the UST

system.

(b) Owners and operators shall notify the implementing agency at least 30 days

prior to switching to a regulated substance containing greater than 10% ethanol, greater

than 20% biodiesel, or any other regulated substance identified by the implementing

agency. In addition, owners and operators with UST systems storing these regulated

substances shall meet 1 of the following:

(1) Demonstrate compatibility of the UST system, including the tank, piping,

containment sumps, pumping equipment, release detection equipment, spill equipment,

and overfill equipment. Owners and operators may demonstrate compatibility of the

UST system by using either of the following options:

(i) Certification or listing of UST system equipment or components by a nationally

recognized, independent testing laboratory for use with the regulated substance stored.

(ii) Equipment or component manufacturer approval. The manufacturer’s

approval must be in writing, indicate an affirmative statement of compatibility, specify

the range of biofuel blends the equipment or component is compatible with, and be from

the equipment or component manufacturer.

(2) Use another option determined by the implementing agency to be no less

protective of human health and the environment than the options listed in paragraph

(b)(1) of the section.

(c) Owners and operators shall maintain records in accordance with subsection

280.34(b) documenting compliance with subsection (b) of this section for as long as the

UST system is used to store the regulated substance.

History: 2018 AACS.

R 29.2117 Repairs.

Rule 17, Section 280.33 is amended to read as follows:

Section 280.33. Owners and operators of UST systems shall ensure that repairs

will prevent releases due to structural failure or corrosion as long as the UST system is

used to store regulated substances. The repairs must meet all of the following

requirements:

(a) Alterations to UST systems for product compatibility, repairs, or upgrades

must be properly conducted in accordance with the provisions of subsections 280.20(d)

and 280.21(b) and (c).

(b) Repairs to fiberglass-reinforced plastic tanks must be made in accordance with

the provisions of subsection 280.20(d).

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(c) Metal pipe sections and fittings that have released product as a result of

corrosion or other damage must be replaced. Fiberglass pipes and fittings that have

released product must 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) Repairs to secondary containment areas of tanks and piping used for interstitial

monitoring and to containment sumps used for interstitial monitoring of piping must have

the secondary containment tested for tightness according to the manufacturer’s

instructions, a code of practice developed by a nationally recognized association or

independent testing laboratory, or in compliance with these rules, within 30 days

following the date of completion of the repair. Repaired or upgraded tanks and piping

must 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 tank is internally inspected in

accordance with a code of practice developed by a nationally recognized association or

an independent testing laboratory; the repaired or upgraded portion of the tank system is

monitored monthly for release in accordance with a method specified in section

280.43(d) to (i); or another test method 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 must be tested in accordance with sections 280.31(b) and (c)

to ensure that it is operating properly.

(f) UST system owners and operators shall maintain records, in accordance with

section 280.34, of each repair for the remaining operating life of the UST system that

demonstrate compliance with the requirements of this section.

(g) Within 30 days following any repair to spill or overfill prevention equipment,

the repaired spill or overfill prevention equipment must be tested or inspected, as

appropriate, in accordance with section 280.35 to ensure it is operating properly.

History: 1998-2000 AACS; 2018 AACS.

R 29.2119 Reporting and recordkeeping.

Rule 19. Section 280.34 is amended to read as follows:

Section 280.34. Owners and operators of UST systems shall cooperate fully with

inspections, monitoring and testing conducted by the department, as well as requests for

document submission, testing, and monitoring by the O/O pursuant to section 9005 of

subtitle I of the Solid Waste Disposal Act, as amended, 42 U.S.C. §6901 et seq.

(a) Reporting. O/Os shall submit all of the following information to the

department:

(1) Notification for all UST systems (section 280.22), which includes certification

of installation for new UST systems (subsection 280.20(e)) and notification when any

person assumes ownership of an UST system (subsection 280.22(b)).

(2) Notification prior to UST systems switching to certain regulated substances

(subsection 280.32(b)).

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(3) Reports of all releases, including suspected releases (section 280.50), spills and

overfills (section 280.53), and confirmed releases (section 280.61).

(4) The corrective action planned or taken that meets the requirements of part 213,

of 1994 PA 451, MCL 324.21301a to 324.21334

(5) A notification before permanent closure or change in service (section 280.71).

(b) Recordkeeping.

information:

Owners and operators shall maintain the following

(1) A corrosion expert’s analysis of site corrosion potential if corrosion protection

equipment is not used (subdivision 280.20)(a)(4); subdivision 280.20(b)(3)).

(2) Documentation of operation of corrosion protection equipment (subsection

280.31(d)).

(3) Documentation of compatibility for UST systems (subsection 280.32(c)).

(4) Documentation of UST system repairs (subsection 280.33(g)).

(5) Documentation of compliance for spill and overfill prevention equipment and

containment sumps used for interstitial monitoring of piping (subsection 280.35(c)).

(6) Documentation of periodic walkthrough inspections (subsection 280.36(b)).

(7) Documentation of compliance with release detection requirements (section

280.45).

(8) Results of the site assessment conducted at permanent closure (section 280.74).

(9) Documentation of operator training (section 280.245).

(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.

History: 1998-2000 AACS; 2018 AACS.

R 29.2120 Testing.

Rule 20. Section 280.35 is added as adopted from the July 15, 2015, EPA-UST

rules as follows:

Section 280.35. Periodic testing of spill prevention equipment and containment

sumps used for interstitial monitoring of piping and periodic inspection of overfill

prevention equipment.

(a) Owners and operators of UST systems with spill and overfill prevention

equipment and containment sumps used for interstitial monitoring of piping shall meet

these requirements to ensure the equipment is operating properly and will prevent

releases to the environment:

(1) Spill prevention equipment (such as a catchment basin, spill bucket, or other

spill containment device) and containment sumps used for interstitial monitoring of

piping shall prevent releases to the environment by meeting either of the following:

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(i) The equipment is double walled and the integrity of both walls is periodically

monitored at a frequency not less than the frequency of the walkthrough inspections

described in section 280.36. Owners and operators shall begin meeting paragraph

(a)(1)(ii) of this section and conduct a test within 30 days of discontinuing periodic

monitoring of this equipment.

(ii) The spill prevention equipment and containment sumps used for interstitial

monitoring of piping are tested at least once every 3 years to ensure the equipment is

liquid tight by using vacuum, pressure, or liquid testing in accordance with 1 of the

following criteria.

(A) Requirements developed by the manufacturer. Note: This is only an option if

the manufacturer has developed requirements.

(B) Code of practice developed by a nationally recognized association or

independent testing laboratory.

(C) Requirements determined by the implementing agency to be no less protective

of human health and the environment than the requirements listed in subparagraphs

(a)(1)(ii)(A) and (B) of this section.

(2) Overfill prevention equipment shall be inspected at least once every 3 years.

At a minimum, the inspection shall ensure that overfill prevention equipment is set to

activate at the correct level specified in subsection 280.20(c) and will activate when

regulated substance reaches that level. Inspections shall be conducted in accordance with

1 of the criteria in subparagraphs (a)(1)(ii)(A) to (C) of this section.

(3) An under-dispenser containment (UDC) sump containing single-wall piping within

or above the UDC sump is not considered to be a containment sump used for interstitial

monitoring of piping, if both of the following apply:

(i) The dispenser system and UDC sump were installed prior to April 11, 2016.

(ii) The UDC sump is not used for interstitial monitoring of double-wall piping

installed outside the sump.

(b) Owners and operators shall begin meeting these requirements as follows:

(1) For UST systems in use on or before October 13, 2015, the initial spill

prevention equipment test, containment sump test and overfill prevention equipment

inspection must be conducted not later than October 13, 2018, or as otherwise allowed

under section 280.10(f). For diligent tank owners who nevertheless are unable to comply

with the October 2018 deadline, the department considers any good faith effort to comply

with the law when deciding if and how to respond to a violation.

(2) For UST systems brought into use after October 13, 2015, these requirements

apply at installation.

(c) Owners and operators shall maintain the following records, in accordance with

section 280.34, for spill prevention equipment, containment sumps used for interstitial

monitoring of piping, and overfill prevention equipment:

(1) All records of testing or inspection shall be maintained for 3 years.

(2) For spill prevention equipment and containment sumps used for interstitial

monitoring of piping not tested every 3 years, documentation showing that the prevention

equipment is double walled and the integrity of both walls is periodically monitored must

be maintained for as long as the equipment is periodically monitored.

History: 2018 AACS.

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R 29.2120a Periodic operation and maintenance walkthrough inspections.

Rule 20a. Section 280.36 is added as adopted from the July 15, 2015, EPA-UST

rules as follows:

Section 280.36 Periodic operation and maintenance walkthrough inspections.

(a) To properly operate and maintain UST systems owners and operators shall

meet 1 of the following:

(1) Conduct a walkthrough inspection that, at a minimum, checks the following

equipment as specified by the following:

(i) Every 30 days, except spill prevention equipment at UST systems receiving

deliveries at intervals greater than every 30 days may be checked prior to each delivery:

(A) Spill prevention equipment:

(I) Visually check for damage.

(II) Remove liquid or debris.

(III) Check for and remove obstructions in the fill pipe.

(IV) Check the fill cap to make sure it is securely on the fill pipe.

(V) For double walled spill prevention equipment with interstitial monitoring,

check for a leak in the interstitial area.

(B) Release detection equipment:

(I) Check to ensure the release detection equipment is operating with no alarms or

other unusual operating conditions present.

(II) Ensure records of release detection testing are reviewed and current.

(ii) Annually:

(A) Containment sumps:

(I) Visually check for damage, leaks to the containment area, or release to the

environment.

(II) Remove liquid or debris in containment sumps.

(III) For double walled sumps with interstitial monitoring, check for a leak in the

interstitial area.

(B) Hand held release detection equipment:

(I) Check devices such as tank gauge sticks or ground water bailers for operability

and serviceability.

(2) Conduct operation and maintenance walkthrough inspections according to a

standard code of practice developed by a nationally recognized association or

independent testing laboratory, acceptable to the department, that checks equipment

comparable to subdivision (a)(1) of this section.

(3) The facility class B operator shall conduct a site visit inspection to determine

the operational compliance status of each regulated UST system at the facility. The

facility class B operator shall perform these site visits at a minimum on a quarterly basis.

The quarterly site visit inspections do not eliminate the need for more frequent

monitoring of release detection and inspection of impressed current corrosion protection

systems.

(i) The facility class B operator shall document the site visit inspections in

accordance with subdivisions (b)(1) and (3) of this section. The class B operator shall

provide the class A operator with a copy of each site visit inspection report and alert the

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class A operator of any condition discovered during the inspection that may require

follow-up actions. These records shall include all of the following:

(A) Verification of proper tank registration.

(B) Verification of functional status of corrosion protection equipment, if required

and present, including proper cathodic protection system readings in the case of

impressed current corrosion protection systems.

(C) Verification of functional status of release detection equipment including

reviewing the alarm history report for the previous 3 months and checking that each

alarm condition was documented and responded to appropriately. A copy of the alarm

history report or log, along with documentation describing action taken in response to any

alarm or alarms, must be attached to the monthly report.

(D) Results of inspection for the following:

(I) The presence of product, water, or debris in the spill containers.

(II) Verifying the functional status of leak prevention equipment, such as spill and

overfill.

(III) Inspection of fill riser for damage and obstructions that would prevent a

shutoff valve from operating properly.

(IV) Inspection of fill riser cap for secure fit.

(V) Inspection of spill protection equipment interstice (if double-walled) for leaks.

(VI) Verification that liquid and debris (if present) were removed from spill

protection.

(E) Results of inspection for the following:

(I) The presence of product, water, or debris in under dispenser containment areas

or containment sumps, including interstices, if double-walled.

(II) Checking to ensure that the monitoring equipment in these containment areas

is located in the proper position to detect a leak at the earliest possible opportunity.

(III) Verification that liquid and debris, if present, were removed from

containment areas.

(F) Results of checks to ensure operability and serviceability of devices such as

tank gauge sticks or groundwater bailers.

(G) Verification that any required testing, monitoring, or periodic inspections of

the UST systems have been completed, including documentation of the dates those

activities occurred.

(H) Verification of the presence of all required records necessary to substantiate

operational compliance.

(b) Records must include a list of each area checked, whether each area checked

was acceptable or needed action taken, and a description of actions taken to correct an

issue. Owners and operators shall maintain the following records of operation and

maintenance walkthrough inspections for 1 year:

(1) Inspections must be documented on a form approved by the department.

(2) Documentation of inspections performed in accordance with subdivision (a)(3)

of this section must contain a signature of the class B operator.

(3) Delivery records if spill prevention equipment is checked less frequently than

every 30 days due to infrequent deliveries.

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(c) Within 30 days of changing from 1 inspection option to another, the facility

shall amend its registration and perform an inspection in accordance with the newly

chosen walkthrough inspection option from subsection (a) of this section.

History: 2018 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 O/O 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, maintained, and electronic and mechanical

components are tested for proper operation in accordance with the manufacturer’s

instructions, including routine maintenance and service checks for operability or running

condition; a code of practice developed by a nationally recognized association or

independent testing laboratory; or requirements determined by the department to be no

less protective of human health and the environment.

(3) A test of the proper operation shall be performed at least annually and, at a

minimum, as applicable to the facility, cover the following components and criteria:

(i) Automatic tank gauge and other controllers: test alarm; verify system

configuration; and test battery backup.

(ii) Probes and sensors: inspect for residual buildup; ensure floats move freely;

ensure shaft is not damaged; ensure cables are free of kinks and breaks; and test alarm

operability and communication with controller.

(iii) Automatic line leak detector: test operation to meet criteria in subsection

280.44(a) by simulating a leak.

(iv) Vacuum pumps and pressure gauges: ensure proper communication with

sensors and controller.

(v) Hand-held electronic sampling equipment associated with groundwater and

vapor monitoring: ensure proper operation.

(4) Meets the performance requirements in section 280.43, 280.44 or subpart K, as

applicable, with any performance claims and their manner of determination described in

writing by the equipment manufacturer. In addition, the methods listed in subsections

280.43(b); 280.43(c); 280.43(d); 280.43(h); 280.43(i); 280.44(a); 280.44(b); and subpart

K, must be capable of detecting the leak rate or quantity specified for the method in the

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corresponding section of the rule 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 section 280.43, 280.44, or subpart K indicates a release may have occurred,

then O/Os shall notify the department in accordance with the provisions of subpart E of

these rules.

(c) 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. For previously deferred UST systems described in subpart A and subpart

K, this requirement applies after the effective dates described in paragraphs

280.10(a)(1)(ii) and (iii) and subsection 280.251(a).

History: 1998-2000 AACS; 2018 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 (i), 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 10 years after the tank was installed.

(2) A tank that has a capacity of 550 gallons or less and a tank with a capacity of

551 to 1,000 gallons that meet the tank diameter criteria in subsection 280.43(b) and that

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) Piping installed on or before April 11, 2016 must meet 1 of the following:

(i) Pressurized piping. Underground piping that conveys regulated substances

under pressure must be in compliance with both of the following requirements:

(A) Be equipped with an automatic line leak detector in accordance with section

280.44(a).

(B) Have an annual line tightness test conducted in accordance with

section 280.44(b) or have monthly monitoring conducted in accordance with section

280.44(c).

(ii) Suction piping. Underground piping that conveys regulated substances under

suction must have a line tightness test conducted at least once every 3 years and in

accordance with section 280.44(b) or use an applicable 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:

(A) The belowgrade piping operates at less than atmospheric pressure.

(B) The belowgrade piping is sloped so that the contents of the pipe will drain

back into the storage tank if the suction is released.

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(C) Only 1 check valve is included in each suction line.

(D) The check valve is located directly below, and as close as practical to, the

suction pump.

(E) A method is provided that allows compliance with paragraphs (B) to (D) of

this subdivision to be readily determined.

(2) Piping installed or replaced after April 11, 2016 must meet 1 of the following:

(i) Pressurized piping shall be monitored for releases at least every 30 days in

accordance with subsection 280.43(g) and be equipped with an automatic line leak

detector in accordance with subsection 280.44(a).

(ii) Suction piping shall be monitored for releases at least every 30 days in

accordance with subsection 280.43(g). No release detection is required for suction piping

that meets subparagraphs (b)(1)(ii)(A) to (E) of this section.

History: 1998-2000 AACS; 2018 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 containment, and release

detection in accordance with section 280.43(g) at least every 30 days, that meets the

following requirements:

(a) "Secondary containment system," must be designed, constructed, and installed to

facilitate all of the following:

(1) Contain regulated substances released from the tank system until they are

detected and removed.

(2) Prevent the release of regulated substances to the environment at any time

during the operational life of the UST system.

(3) Be checked for evidence of a release not less than once every 30 days.

(b) Double-wall tanks and integral secondary containment systems must 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.

(c) External liners and vaults must be designed, constructed and installed to contain

100% capacity of largest tank in its boundary, prevent interference of precipitation or

groundwater intrusion with the ability to contain or detect a release of regulated

substances, and surround the tank completely, lateral and vertical, to prevent migration of

regulated substance.

(d) Underground piping must be equipped with secondary containment that

satisfies the requirements of this section. In addition, underground piping that conveys

regulated substances under pressure must be equipped with an automatic line leak

detector in accordance with section 280.44(a) and must 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 or outer wall.

(e) Other methods of release detection may be used if owners and operators

comply with all of the following provisions:

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(1) 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 (i) can detect a release of petroleum.

(2) 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.

(3) Obtain approval from the department to use the alternative release detection

method before the installation and operation of the UST system.

History: 1998-2000 AACS; 2018 AACS.

R 29.2125 Methods of release detection for tanks.

Rule 25. Section 280.43 is amended to read as follows:

Section 280.43. Each method of release detection for tanks used to meet the

requirements of section 280.41 must be conducted in accordance with the following:

(a) Inventory control. Product inventory control, or another test of equivalent

performance, must 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 1 foot 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 tank is made to the nearest 1/8 of an

inch not less than once a month.

(b) Manual tank gauging. Manual tank gauging must meet all of the following

requirements:

(1) Tank liquid level measurements are taken at the beginning and ending of a

period using the appropriate minimum duration of test value in the following table 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:

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Nominal Tank Capacity

Minimum

Duration of

Test

Weekly

Standard

(1 test)

Monthly

Standard

(average of

4 tests)

550 gallons or less

551 to 1,000 gallons (when tank diameter is 64

36 hours

44 hours

10 gallons

9 gallons

5 gallons

4 gallons

inches)

551 to 1,000 gallons (when tank diameter is 48

inches)

551 to 1,000 gallons (also requires periodic tank 36 hours

tightness testing)

1,001 to 2,000 gallons (also requires periodic

tank tightness testing)

58 hours

12 gallons

13 gallons

26 gallons

6 gallons

7 gallons

13 gallons

36 hours

(5) Only a tank that has a nominal capacity of 550 gallons or less and tanks with a

nominal capacity of 551 to 1,000 gallons that meet the tank diameter criteria in the table

in subdivision (b)(4) of this section 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 nominal capacity shall not

use manual tank gauging to meet the requirements of this subpart.

(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 that routinely contains product 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 must 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 must 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.

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(ii) Inventory control, or another test of equivalent performance, is conducted in

accordance with the requirements of subsection (a) of this section.

(2) The test shall be performed with the system operating in 1 of the following

modes:

(i) In-tank static testing conducted at least once every 30 days.

(ii) Continuous in-tank leak detection operating on an uninterrupted basis or

operating within a process that allows the system to gather incremental measurements to

determine the leak status of the tank at least once every 30 days.

(3) 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. MCL 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.

(4) Each tank in a manifolded tank system must be provided with its own

automatic tank gauging probe that meets the requirements of subdivisions (1) and (2) of

this subsection and must 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 UST or

the underground piping system, or both, to verify that testing or monitoring for vapors

within the soil gas of the excavation zone meet all of the following conditions:

(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.

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(7) Monitoring wells are clearly marked and secured to avoid unauthorized access

and tampering. A monitoring well shall have a liquid tight 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

UST or the underground piping system, or both, to verify that testing or monitoring for

liquids on the groundwater meets all of the following conditions:

(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 must 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 liquid tight 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 must

comply with part 127 of 1978 PA 368, MCL 333.12701 to 333.12771, and rules

promulgated under 1978 PA 368.

(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. The

monitoring device can detect at least 1/8 of an inch of NAPL on top of the groundwater

in the monitoring wells.

(7) Within and immediately below the UST system excavation zone, the site is

assessed to ensure compliance with the requirements in subdivision (1) to (5) of this

subsection and to establish the number and positioning of monitoring wells or devices

that will detect releases from any portion of the tank that routinely contains product.

(g) Interstitial monitoring. Interstitial monitoring between the UST system and a

secondary barrier immediately around or beneath it must be used, but only if the system

is designed, constructed, and installed to detect a leak from any portion of the tank that

routinely contains product and also meets 1 of the following requirements:

(1) For double walled UST systems, the sampling or testing method can detect a

leak through the inner wall in any portion of the tank that routinely contains product.

(2) For UST systems with a secondary barrier within the excavation zone, the

sampling or testing method used can detect a leak between the UST system and the

secondary barrier. The secondary barrier shall meet all of the following:

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(i) The secondary barrier around or beneath the UST system consists of artificially

constructed material that is sufficiently thick and impermeable (at least 10^-6cm/sec for

the regulated substance stored) to direct a leak to the monitoring point and permit its

detection.

(ii) The barrier is compatible with the regulated substance stored so that a leak

from the UST system will not cause a deterioration of the barrier allowing a release to

pass through undetected.

(iii) For cathodically protected tanks, the secondary barrier must be installed so

that it does not interfere with the proper operation of the cathodic protection system.

(iv) The groundwater, soil moisture, or rainfall will not render the testing or

sampling method used inoperative so that a release could go undetected for more than 30

days.

(v) The site is assessed to ensure that the secondary barrier is always above the

groundwater and not in a 25-year flood plain, unless the barrier and monitoring designs

are for use under these conditions.

(vi) Monitoring wells are clearly marked and secured to avoid unauthorized access

and tampering.

(3) For tanks with an internally fitted liner, an automated device can detect a leak

between the inner wall of the tank and the liner, and the liner is compatible with the

substance stored.

(h) Statistical inventory reconciliation. Release detection methods based on the

application of statistical principles to inventory data similar to those described in

subsection 280.43(a) shall meet all of the following requirements:

(1) Report a quantitative result with a calculated leak rate.

(2) Be capable of detecting a leak rate of 0.2 gallon per hour or a release of 150

gallons within 30 days.

(3) Use a threshold that does not exceed 1/2 the minimum detectible leak rate.

(i) Other methods. The department may approve another method or combination

of methods 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 (c) to (h) 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; 2018 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 must be conducted in accordance with all of the following

provisions:

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(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

subdivision 280.40(a)(3).

(b) With respect to line tightness testing, the following provisions:

(1) Line tightness testing must be capable of detecting a 0.1 gallons per hour leak

rate at 1 ½ times the operating pressure.

(2) Secondary containment piping must be tested by a positive pressure of not less

than 5 psig for a minimum of 1 hour.

(3) A periodic test of piping may be conducted only if it can detect a 0.1 gallon per

hour leak rate at 1 ½ times the operating pressure.

(c) Applicable tank methods. Except as described in subsection 280.41(a), any of

the methods in section 280.43(e) to (i) 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; 2018 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 must 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. Not later than

October 13, 2018, records of site assessments required under subdivisions 280.43(e)(6)

and 280.43(f)(7) shall be maintained for as long as the methods are used. Records of site

assessments developed after October 13, 2015 must be signed by a professional engineer

or professional geologist, or equivalent licensed professional with experience in

environmental engineering, hydrogeology, or other relevant technical discipline

acceptable to the implementing agency.

(b) The results of any sampling, testing, or monitoring shall be maintained for not

less than 1 year 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 until the next test is conducted as follows:

(1) The results of annual operation tests conducted in accordance with subdivision

280.40(a)(3) shall be maintained for 3 years. At a minimum, the results shall list each

component tested, indicate whether each component tested meets criteria in subdivision

280.40(a)(3) or needs to have action taken, and describe any action taken to correct an

issue.

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(2) The results of tank tightness testing, line tightness testing, and vapor

monitoring using a tracer compound placed in the tank system conducted in accordance

with subsection 280.252(d) shall be retained until the next test is conducted.

(c) Written documentation of all calibration, maintenance, and repair of release

detection equipment permanently located on-site shall be maintained for not less than

1 year 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 must be retained for 5 years

from the date of installation.

History: 1998-2000 AACS; 2018 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. O/Os of UST systems, or a person who is employed by the O/O,

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, operators or others of released regulated substances

at the UST site or in the surrounding area, such as the presence of visible NAPL 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, or liquid in the interstitial

space of secondarily contained systems, unless system equipment or component is found

not to be releasing regulated substances to the environment; any defective system

equipment or component is immediately repaired or replaced; and for secondarily

contained systems, except as provided for in paragraph 280.43(g)(2)(iv), any liquid in the

interstitial space not used as part of the interstitial monitoring method, for example, brine

filled, is immediately removed.

(c) Monitoring results, including investigation of an alarm, 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) The leak is contained in the secondary containment and both of the following

are met:

(i) Except as provided for in paragraph 280.43(g)(2)(iv), any liquid in the

interstitial space not used as part of the interstitial monitoring method, such as brine

filled, is immediately removed.

(ii) Any defective system equipment or component is immediately repaired or

replaced.

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(3) In the case of inventory control, described in subsection 280.43(a), a second

month of data does not confirm the initial result or the investigation determines no release

has occurred.

(4) The alarm was investigated and determined to be a non-release event, for

example, from a power surge or caused by filling the tank during release detection

testing.

(d) A person who is employed by the O/O may do the reporting on behalf of the

O/O; however, the O/O has the final responsibility to make sure the report is made.

History: 1998-2000 AACS; 2018 AACS.

R 29.2130 Investigation due to offsite impacts.

Rule 30. Section 280.51 is added as adopted from the July 15, 2015, EPA-UST rules

as follows:

Section 280.51. When required by the implementing agency, owners and operators

of UST systems shall follow the procedures in section 280.52 to determine if the UST

system is the source of offsite impacts. These impacts include the discovery of regulated

substances, for instance the presence of free product or vapors in soils, basements, sewer

and utility lines, and nearby surface and drinking waters, that have been observed by the

implementing agency or brought to its attention by another party.

History: 2018 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 1994 PA 451, MCL 324.21301a to 324.21334, 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), or as appropriate,

secondary containment testing described in subsection 280.33(d).

(1) The test shall determine whether a leak exists in the portion of the UST system

that routinely contains product, or the attached delivery piping, or if a breach of either

wall of the secondary containment has occurred.

(2) If the system test confirms a leak into the interstice or a release, owners and

operators shall repair, replace, upgrade, or close the UST system. In addition, owners

and operators shall begin corrective action in accordance with the provisions of subpart F

of these rules and part 213 of 1994 PA 451, MCL 324.21301a to 324.21334, if the test

results for the UST system, tank, or delivery piping, indicate that a leak exists.

(3) Further investigation is not required if the test results for the UST system, tank,

and delivery piping, do not indicate that a leak exists and if environmental contamination

is not the basis for suspecting a release.

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(4) Owners and operators shall conduct a site check as described in subdivision (b)

of this section if the test results for the UST system, tank and delivery piping, 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, O/Os shall begin corrective action in accordance

with subpart F of these rules and part 213 of 1994 PA 451, MCL 324.21301a to

324.21334. 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; 2018 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) O/Os 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 1994

PA 451, MCL 324.21301a to 324.21334, in either of the following cases:

(1) Spill or overfill of petroleum that results in a release into the environment, such

as groundwater, surface water, or subsurface soils, that exceeds 25 gallons or that causes

a sheen on nearby surface water.

(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 that is less than 25 gallons and a spill or overfill of a

hazardous substance that is less than the reportable quantity. If cleanup cannot be

accomplished within 24 hours, or another reasonable time period established by the

implementing agency, owners and operators shall immediately notify the implementing

agency.

History: 1998-2000 AACS; 2018 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 amended to read as adopted from the July 15, 2015,

EPA-UST rules as follows:

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Section 280.60. General. Owners and operators of petroleum or hazardous

substance UST systems shall, in response to a confirmed release from the UST system,

comply with the requirements of this subpart and part 213 of 1994 PA 451, MCL

324.21301a to 324.21334, except for underground storage tanks excluded under

definition in these rules and UST systems subject to subtitle C, resource conservation and

recovery act (RCRA), 42 U.S.C. §6901 et seq. 1976, as amended, corrective action

requirements under section 3004(u) of the RCRA.

History: 1990 AACS; 2018 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, O/Os, or a

person employed by the O/Os, 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 must 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 O/O to believe a

release had occurred.

(b) Take immediate action to prevent any further release of the regulated substance

into the environment.

(c) Identify and mitigate fire, explosion, and vapor hazards.

(d) 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 is considered valid notification

of the release.

(e) A person who is employed by the O/O may do the reporting on behalf of the

O/O; however, the O/O has the final responsibility to ensure the report is made.

History: 1990 AACS; 2018 AACS.

R 29.2139 Notifications.

Rule 39. Section 280.62 is amended to read as follows:

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Section 280.62. Upon receiving a report of a release, the department shall send a

confirmation of receiving the release report to the O/O within 14 days.

History: 1998-2000 AACS; 2018 AACS.

R 29.2141 Rescinded.

History: 1990 AACS; 2018 AACS.

R 29.2143 Rescinded.

History: 1990 AACS; 2018 AACS

R 29.2145 Rescinded.

History: 1990 AACS; 2018 AACS.

R 29.2147 Rescinded.

History: 1990 AACS; 2018 AACS.

R 29.2149 Rescinded.

History: 1990 AACS; 2018 AACS.

SUBPART G. CLOSURE AND CHANGE IN SERVICE OF UST SYSTEMS

R 29.2151 Temporary closure.

Rule 51. Section 280.70 is amended to read as follows:

Section 280.70. Temporary closure.

(a) An UST system is considered temporarily closed if it is empty for more than

90 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 and K of these rules. However, release detection and release detection

operation and maintenance testing and inspections in subparts C and D areis not required

if the UST system is empty. In addition, spill and overfill operation and maintenance

testing and inspections in subpart C are not required. 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 must be

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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 an UST system is temporarily closed for 3 months or more, 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 an 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) Immediately before bringing an 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; 2018 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 must 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 ensure the notification is given.

(b) an UST system is 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 section 280.70 or the requirements for change in service specified in

section 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 must be removed from the ground. If buildings or structures

exist above or near the tank, or in close proximity to the tank such that removal would

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jeopardize the building or structure integrity, the O/O may close the UST system in place.

To close the UST system in place, the tank must 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 must 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 an 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 must 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, must be on a form provided by the department. 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 O/O. 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 O/O may submit a site assessment form, in accordance with section 280.72,

signed by the owner, within 45 days of permanent closure or a change in service.

History: 1998-2000 AACS; 2018 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 1one 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 visible NAPL as a liquid

or vapor is discovered, under subsections (a) or (c) of this section or in any other manner,

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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 1994 PA 451, MCL 324.21301a to 324.21334.

(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 an UST, the owners and operators shall

perform a site assessment in compliance with either of the following provisions:

(1) Two soil borings must be taken as close as practical to the tank, but not more

than 5 feet from the tank. One boring must be taken at each end of the tank, but not more

than 2 feet below the bottom of the tank and the boring must be taken at the bottom of

each end of the tank.

(2) Upon removal of an UST, the owners and operators shall perform a site

assessment in compliance with either of the following provisions:

(i) One discrete sample must be taken from the excavation floor underneath the fill

pipe area for each tank removed and 1 discrete sample must be taken from the excavation

floor underneath the opposite end of the tank.

(ii) One water sample must be taken if the entire floor of the excavation is covered

with water or a 1-for-1 water-for-soil sample must be taken if the excavation is partially

covered with water.

(e) Additional sample or samples must be taken when deemed necessary by the

department or the person who performs the site assessment.

(f) A site assessment for piping must 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 must 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 must 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 that indicates the location of tanks and piping and that

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; 2018 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 O/O of an UST system that

was permanently closed before the effective date of these rules shall assess the

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excavation zone and close the UST system in accordance with this subpart if suspected or

confirmed releases from the UST system, in the judgment of the department, may pose a

current or potential threat to human health and the environment.

History: 1998-2000 AACS; 2018 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 excavation

zone 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 in 1 of the following ways:

(a) By the owners and operators who took the UST system out of service.

(b) By the current owners and operators of the UST system site.

(c) By mailing these records to the implementing agency if they cannot be maintained

at the closed facility.

History: 1998-2000 AACS; 2018 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 1994 PA 451, MCL 324.21101 to

324.21113.

(e) If the owner and operator of a petroleum UST are separate persons, only

1 person is required to demonstrate financial responsibility; however, both parties are

liable in event of noncompliance.

History: 1998-2000 AACS; 2018 AACS.

R 29.2162 Compliance dates.

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Rule 62. Section 280.91 is added as adopted from the July 15, 2015, EPA-UST

rules as follows:

Section 280.91. Owners of petroleum USTs are required to comply with the

requirements of this subpart. Previously deferred UST systems shall comply with the

requirements of this subpart according to the schedule in section 280.251(a).

History: 2018 AACS.

R 29.2163 Definition of terms.

Rule 63. Section 280.92 is amended to read as follows:

Section 280.92. As used in this subpart:

(a) "Accidental release" means any sudden or nonsudden release of petroleum

arising from an UST that results in a need for corrective action and/or compensation for

bodily injury or property damage neither expected nor intended by the tank O/O.

(b) "Bodily injury" has the meaning given to this term by applicable state law;

however, this term does 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 licensing and regulatory affairs, bureau of fire services.

(f) "Financial reporting year," which may comprise either a fiscal or a calendar year

period, 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

utilities service.

(g) "Legal defense cost" means any expense that an O/O 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.

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(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 UST.

(j) "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.

(k) "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.

(l) "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.

(m) "Provider of financial assurance" means an entity that provides financial

assurance to an O/O of an UST through 1 of the mechanisms listed in sections 280.95 to

280.107, 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.

(n) "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 O/O.

(o) "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 from 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.

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(p) "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.

(q) "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; 2018 AACS.

R 29.2163a Amount and scope of required financial responsibility.

Rule 63a. Section 280.93 is amended to read as adopted from the July 15, 2015,

EPA-UST rules as follows:

Section 280.93. (a) O/Os of petroleum USTs shall demonstrate financial

responsibility for taking corrective action and for compensating third parties for bodily

injury and property damage caused by accidental releases arising from the operation of

petroleum USTs in at least the following per occurrence amounts:

(1) For O/Os of petroleum USTs that are located at petroleum marketing facilities,

or that handle an average of more than 10,000 gallons of petroleum per month based on

annual throughput for the previous calendar year, $1 million.

(2) For all other O/Os of petroleum USTs, $500,000.

(b) O/Os of petroleum USTs shall demonstrate financial responsibility for taking

corrective action and for compensating third parties for bodily injury and property

damage caused by accidental releases arising from the operation of petroleum USTs in at

least both of the following annual aggregate amounts:

(1) For O/Os of 1 to 100 petroleum USTs, $1 million.

(2) For O/Os of 101 or more petroleum USTs, $2 million.

(c) For the purposes of subsections (b) and (f) of this section, only, ‘‘a petroleum

underground storage tank’’ means a single containment unit and does not mean

combinations of single containment units.

(d) Except as provided in subsection (e) of this section, if the O/O uses separate

mechanisms or separate combinations of mechanisms to demonstrate financial

responsibility for taking corrective action, and 1 of the following:

(1) Compensating third parties for bodily injury and property damage caused by

sudden accidental releases.

(2) Compensating third parties for bodily injury and property damage caused by

nonsudden accidental releases, the amount of assurance provided by each mechanism or

combination of mechanisms must be in the full amount specified in subsections (a) and

(b) of this section.

(e) If an O/O uses separate mechanisms or separate combinations of mechanisms

to demonstrate financial responsibility for different petroleum USTs, the annual

aggregate required shall be based on the number of tanks covered by each such separate

mechanism or combination of mechanisms.

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(f) O/Os shall review the amount of aggregate assurance provided whenever

additional petroleum USTs are acquired or installed. If the number of petroleum USTs for

which assurance must be provided exceeds 100, the O/O shall demonstrate financial

responsibility in the amount of at least $2 million of annual aggregate assurance by the

anniversary of the date on which the mechanism demonstrating financial responsibility

became effective. If assurance is being demonstrated by a combination of mechanisms,

the O/O shall demonstrate financial responsibility in the amount of at least $2 million of

annual aggregate assurance by the first occurring effective date anniversary of any 1 of

the mechanisms combined (other than a financial test or guarantee) to provide assurance.

(g) The amounts of assurance required under this section exclude legal defense

costs.

(h) The required per occurrence and annual aggregate coverage amounts do not in

any way limit the liability of the O/O.

History: 1998-2000 AACS; 2018 AACS.

R 29.2163b Allowable mechanisms and combinations of mechanisms.

Rule 63b. Section 280.94 is amended to read as adopted from the July 15, 2015,

EPA-UST rules 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 O/O, including a local government O/O, 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 USTs.

(2) A local government O/O 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 USTs.

(b) An O/O 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 USTs 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 O/O 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 O/O are not consolidated with the financial statements of the guarantor.

History: 1998-2000 AACS; 2018 AACS.

R 29.2163c Financial test of self-insurance.

Rule 63c. Section 280.95 is amended to read as adopted from the July 15, 2015,

EPA-UST rules as follows:

Section 280.95. (a) An O/O, and/or guarantor, may satisfy the requirements of

section 280.93 by passing a financial test as specified in this section. To pass the financial

test of self-insurance, the O/O, and/or guarantor must meet the criteria of subsection (b)

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or (c) of this section based on year-end financial statements for the latest completed fiscal

year.

(b) (1) The O/O, and/or guarantor, shall have a tangible net worth of at least 10

times all of the following:

(i) The total of the applicable aggregate amount required by section 280.93, based on

the number of USTs for which a financial test is used to demonstrate financial responsibility

to EPA under this section or to a state implementing agency under a state program approved

by EPA under 40 C.F.R. part 281 (2015);

(ii) The sum of the corrective action cost estimates, the current closure and post-

closure care cost estimates, and amount of liability coverage for which a financial test is

used to demonstrate financial responsibility to EPA under 40 C.F.R. 264.101, 264.143,

264.145, 265.143, 265.145, 264.147, and 265.147 (2015) or to a state implementing

agency under a state program authorized by EPA under 40 C.F.R. part 271 (2015).

(iii) The sum of current plugging and abandonment cost estimates for which a

financial test is used to demonstrate financial responsibility to EPA under 40 C.F.R.

part 144.63 (2015) or to a state implementing agency under a state program authorized by

EPA under 40 C.F.R. part 145 (2015).

(2) The O/O, and/or guarantor, shall have a tangible net worth of at least $10

million.

(3) The O/O, and/or guarantor, shall have a letter signed by the chief financial

officer worded as specified in subsection (d) of this section.

(4) The O/O, and/or guarantor, shall do either of the following:

(i) File financial statements annually with the U.S. securities and exchange

commission, the energy information administration, or the rural utilities service.

(ii) Report annually the firm’s tangible net worth to Dun and Bradstreet, and Dun

and Bradstreet must have assigned the firm a financial strength rating of 4A or 5A.

(5) The firm’s year-end financial statements, if independently audited, cannot

include an adverse auditor’s opinion, a disclaimer of opinion, or a ‘‘going concern’’

qualification.

(c) (1) The O/O, and/or guarantor shall meet the financial test requirements of 40

C.F.R. part 264.147(f)(1) (2015), substituting the appropriate amounts specified in

subdivisions 280.93 (b)(1) and (b)(2) for the ‘‘amount of liability coverage’’ each time

specified in that section.

(2) The fiscal year-end financial statements of the O/O, and/or guarantor, must be

examined by an independent certified public accountant and be accompanied by the

accountant’s report of the examination.

(3) The firm’s year-end financial statements cannot include an adverse auditor’s

opinion, a disclaimer of opinion, or a ‘‘going concern’’ qualification.

(4) The O/O, and/or guarantor, shall have a letter signed by the chief financial

officer, worded as specified in subsection (d) of this section.

(5) If the financial statements of the O/O, and/or guarantor, are not submitted

annually to the U.S. Securities and Exchange Commission, the energy information

administration, or the rural utilities service, the O/O, and/or guarantor, shall obtain a

special report by an independent certified public accountant stating all of the following:

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(i) He or she has compared the data that the letter from the chief financial officer

specifies as having been derived from the latest year-end financial statements of the O/O,

and/or guarantor, with the amounts in such financial statements.

(ii) In connection with that comparison, no matters came to his or her attention that

caused him or her to believe that the specified data should be adjusted.

(d) To demonstrate that the test for self-insurance meets the financial test under

subdivision (b) or (c) of this section, the chief financial officer of the O/O, or guarantor,

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, or guarantor]. This letter is in support of the use of [insert: ‘‘the financial test of

self-insurance,’’ and/or ‘‘guarantee’’] 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 re-leases’’ or “accidental releases”] in the amount of at least [insert: dollar

amount] per occurrence and [insert: dollar amount] annual aggregate arising from

operating (an) UST(s).

USTs at the following facilities are assured by this financial test or a financial test

under an authorized State program by this [insert: ‘‘owner or operator,’’ and/or

‘‘guarantor’’]: [List for each facility: the name and address of the facility where tanks

assured by this financial test are located, and whether tanks are assured by this financial

test or a financial test under a State program approved under 40 C.F.R. part 281. 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 or a financial test under a

State program authorized under 40 C.F.R. part 281 by the tank identification number

provided in the notification submitted pursuant to 40 C.F.R. part 280.22 or the

corresponding State requirements.]

A [insert: ‘‘financial test,’’ and/or ‘‘guarantee’’] is also used by this [insert:

‘‘owner or operator,’’ or ‘‘guarantor’’] to demonstrate evidence of financial

responsibility in the following amounts under other EPA regulations or state programs

authorized by EPA under 40 C.F.R. parts 271 and 145:

EPA Regulations

Amount

Closure (section section 264.143 and 265.143) ..........................

Post-Closure Care (section section 264.145 and 265.145).................

Liability Coverage (section section 264.147 and 265.147) ...............

Corrective Action (section subsection 264.101(b)) .........................

Plugging and Abandonment (section 144.63) .......................

Closure ...................................................

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Post-Closure Care .........................................

Liability Coverage .......................................

Corrective Action .........................................

Plugging and Abandonment ..................................

Total .....................................................

This [insert: ‘‘owner or operator,’’ or ‘‘guarantor’’] has not received an adverse

opinion, a disclaimer of opinion, or a ‘‘going concern’’ qualification from an independent

auditor on his financial statements for the latest completed fiscal year.

[Fill in the information for Alternative I if the criteria of subsection (b) of section

280.95 are being used to demonstrate compliance with the financial test requirements.

Fill in the information for Alternative II if the criteria of subsection (c) of section 280.95

are being used to demonstrate compliance with the financial test requirements.]

Alternative I

1. Amount of annual UST aggregate coverage being assured by a financial test,

and/or guarantee

$ ______

2. Amount of corrective action, closure and postclosure care costs, liability

coverage, and plugging and abandonment costs covered by a financial test and/or

guarantee

$ ______

3. Sum of lines 1 and 2

4. Total tangible assets

$ ______

5. Total liabilities [if any of the amount reported on line 3 is included in total

liabilities, you may deduct that amount from this line and add that amount to line 6]

$ ______

6. Tangible net worth [subtract line 5 from line 4]

$ ______

Yes

No

7. Is line 6 at least $10 million?

8. Is line 6 at least 10 times line 3?

___ ___

9. Have financial statements for the latest fiscal year been filed with theSecurities

and Exchange Commission? ___ ___

10. Have financial statements for the latest fiscal year been filed with the Energy

Information Administration? ___ ___

11. Have financial statements for the latest fiscal year been filed with the Rural

Utilities Service? ___ ___

12. Has financial information been provided to Dun and Bradstreet, and has Dun and

Bradstreet provided a financial strength rating of 4A or 5A? [Answer ‘‘Yes’’ only if both

criteria have been met.]

___ ___

Alternative II

1. Amount of annual UST aggregate coverage being assured by a test, and/or

guarantee

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$______

2. Amount of corrective action, closure and postclosure care costs, liability coverage,

and plugging and abandonment costs covered by a financial test, and/or guarantee

$______

3. Sum of lines 1 and 2

4. Total tangible assets

$______

5. Total liabilities [if any of the amount reported on line 3 is included in total

liabilities, you may deduct that amount from this line and add that amount to line 6]

$______

6. Tangible net worth [subtract line 5 from line 4]

7. Total assets in the U.S. [required only if less than 90 percent of assets are located in

the U.S.]

$______

Yes No

8. Is line 6 at least $10 million?

9. Is line 6 at least 6 times line 3?

___ ___

10. Are at least 90 percent of assets located in the U.S.? [If ‘‘No,’’ complete line 11.]

___ ___

11. Is line 7 at least 6 times line 3?

[Fill in either lines 12–15 or lines 16–18:]

12. Current assets

13. Current liabilities

14. Net working capital [subtract line 13 from line 12]

___ ___

$______

Yes No

15. Is line 14 at least 6 times line 3?

16. Current bond rating of most recent bond issue

17. Name of rating service

___ ___

18. Date of maturity of bond

19. Have financial statements for the latest fiscal year been filed with

the SEC, the Energy Information Administration, or the Rural

Utilities Service?

___ ___

[If ‘‘No,’’ please attach a report from an independent certified public accountant

certifying that there are no material differences between the data as reported in lines 4-18

above and the financial statements for the latest fiscal year.]

[For both Alternative I and Alternative II complete the certification with this

statement.]

I hereby certify that the wording of this letter is identical to the wording specified in

40 C.F.R. part 280.95(d) as such regulations were constituted on the date shown

immediately below.

[Signature]

[Name]

[Title]

[Date]

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(e) If an O/O using the test to provide financial assurance finds that he or she no

longer meets the requirements of the financial test based on the year-end financial

statements, the O/O shall obtain alternative coverage within 150 days of the end of the

year for which financial statements have been prepared.

(f) The director of the implementing agency may require reports of financial

condition at any time from the O/O, and/or guarantor. If the director finds, on the basis of

such reports or other information, that the O/O, and/or guarantor, no longer meets the

financial test requirements of subsections 280.95(b) or (c) and (d), the O/O shall obtain

alternate coverage within 30 days after notification of such a finding.

(g) If the O/O fails to obtain alternate assurance within 150 days of finding that he

or she no longer meets the requirements of the financial test based on the year-end

financial statements, or within 30 days of notification by the director of the implementing

agency that he or she no longer meets the requirements of the financial test, the O/O shall

notify the director of such failure within 10 days.

History: 1998-2000 AACS; 2018 AACS.

R 29.2163d Guarantee.

Rule 63d. Section 280.96 is amended to read as adopted from the July 15, 2015,

EPA-UST rules as follows:

Section 280.96. (a) An O/O 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:

(1) A firm that meets 1 of the following:

(i) Possesses a controlling interest in the O/O.

(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 O/O.

(2) A firm that is engaged in a substantial business relationship with the O/O and

that 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 subsection 280.95(d) and shall deliver

the letter to the O/O. 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 O/O. If the director of the implementing agency

notifies the guarantor that the guarantor no longer meets the requirements of the financial

test of subsections 280.95(b) or (c) and (d), then the guarantor shall notify the O/O within

10 days of receiving the notification from the director. In both cases, the guarantee shall

terminate not less than 120 days after the date that the O/O receives the notification, as

evidenced by the return receipt. The O/O shall obtain alternate coverage as specified in

section 280.114.

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(c) The guarantee must 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.

part 280.95(b) or (c) and (d) and agrees to comply with the requirements for guarantors as

specified in 40 C.F.R. part 280.96(b).

(2) [Owner or operator] owns or operates the following UST(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 280.22 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 fromfor different tanks or locations, indicate the type of coverage applicable to

each tank or location] arising from operating the above-identified UST(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 UST

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. part 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. 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

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"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. part 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.

parts 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 UST;

(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. Part 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. part 280.96(c), as such regulations were constituted on the

effective date shown immediately below.

Effective date: _____

[Name of guarantor]

[Authorized signature for guarantor]

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[Name of person signing]

[Title of person signing]

Signature of witness ofor notary: _______________

(d) An O/O 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; 2018 AACS.

R 29.2163e Insurance and risk retention group coverage.

Rule 63e. Section 280.97 is amended to read as adopted from the July 15, 2015,

EPA-UST rules as follows:

Section 280.97. (a) An O/O 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. This insurance may be in the form of a separate

insurance policy or an endorsement to an existing insurance policy.

(b) Each insurance policy must be amended by an endorsement worded as specified

in subdivision (b)(1) of this section, or evidence by a certificate of insurance worded as

specified in subdivision (b)(2) of this section, except that instructions in brackets must 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:

____________________________________________________________________

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Endorsement:

1. This endorsement certifies that the policy to which the endorsement is attached

provides liability insurance covering the following USTs: [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 280.22, 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 UST(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 USTs or locations, indicate the

amount of coverage for each type of coverage and/or for each UST 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

[”Insurer” 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. parts 280.95-280.102 and 280.104-280.107.

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. 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 1 days after a copy of such written notice is received by

the insured.

[Insert for claims made policies:

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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 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. part 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]

____________________________________________________________________

(2) Certificate of Insurance

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:

____________________________________________________________________

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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 UST(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.

part 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 UST(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 USTs or locations, indicate the

amount of coverage for each type of coverage and/or for each UST 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

[Insurer" 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. parts 280.95 to 280.102 and 280.104 to 280.107.

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

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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. part 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; 2018 AACS.

R 29.2163f Surety bond.

Rule 63f. Section 280.98 is added as adopted from the July 15, 2015, EPA-UST

rules as follows:

Section 280.98. (a) An O/O 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 must 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"]

________________________________________________________________

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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. part 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 itis 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 USTs 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

accidental releases" or "nonsudden accidental releases" or "sudden and nonsudden

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accidental releases" or “accidental releases”] 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 UST;

(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. part 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. part 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. part 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

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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.

part 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 O/O 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 O/O 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: 2018 AACS.

R 29.2163g Letter of credit.

Rule 63g. Section 280.99 is added as adopted from the July 15, 2015, EPA-UST

rules as follows:

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Section 280.99. (a) An O/O 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 Solid

Waste Disposal Act, 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 UST(s) identified below in the amount of [in words]

$ [insert dollar amount] per occurrence and [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.

part 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 UST;

(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

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agreement other than a contract or agreement entered into to meet the requirements of 40

C.F.R. part 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. part 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 and copyrighted by the Internal

Chamber of Commerce," or "the Uniform Commercial Code"].

(c) An O/O 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 is irrevocable with a term specified by 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 O/O 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 O/O receives the notice, as evidenced by the return receipt.

History: 2018 AACS.

R 29.2164 Use of state-required mechanism.

Rule 64. Section 280.100 is amended to read as adopted from the July 15, 2015,

EPA-UST rules as follows:

Section 280.100 Use of state-required mechanism

(a) For underground storage tanks located in a state that does not have an approved

program, and where the state requires owners or operators of underground storage tanks

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to demonstrate financial responsibility for taking corrective action and/or for

compensating third parties for bodily injury and property damage, an O/O may use a

state-required financial mechanism to meet the requirements of section 280.93 if the EPA

regional administrator determines that the state mechanism is at least equivalent to the

financial mechanisms specified in this subpart.

(b) The regional administrator will evaluate the equivalency of a state required

mechanism principally in terms of certainty of the availability of funds for taking

corrective action and/or for compensating third parties; the amount of funds that will be

made available; and the types of costs covered. The regional administrator may also

consider other factors as is necessary.

(c) The state, an O/O, or any other interested party may submit to the regional

administrator a written petition requesting that 1 or more of the state-required

mechanisms be considered acceptable for meeting the requirements of section 280.93.

The submission shall include copies of the appropriate state statutory and regulatory

requirements and shall show the amount of funds for corrective action and/or for

compensating third parties assured by the mechanism(s). The regional administrator may

require the petitioner to submit additional information as is deemed necessary to make

this determination.

(d) Any petition under this section may be submitted on behalf of all of the state’s

underground storage tank owners and operators.

(e) The regional administrator will notify the petitioner of his or her determination

regarding the mechanism’s acceptability in lieu of financial mechanisms specified in this

subpart. Pending this determination, the owners and operators using such mechanisms are

deemed to be in compliance with the requirements of section 280.93 for underground

storage tanks located in the state for the amounts and types of costs covered by such

mechanisms.

History: 1990 AACS; 2018 AACS.

R 29.2165 State fund or other state assurance.

Rule 65. Section 280.101 is amended to read as follows:

Section 280.101 Deleted.

History: 1998-2000 AACS; 2018 AACS.

R 29.2165a Trust fund.

Rule 65a. Section 280.102 is added as adopted from the July 15, 2015, EPA-UST

rules as follows:

Section 280.102. (a) An O/O may satisfy the requirements of section 280.93 by

establishing a trust fund that conforms to the requirements of this section. The trustee

must be an entity that has the authority to act as a trustee and whose trust operations are

regulated and examined by a federal agency or an agency of the state in which the fund is

established.

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(b) The wording of the trust agreement must be identical to the wording specified

in subdivision 280.103(b)(1), and must be accompanied by a formal certification of

acknowledgment as specified in subdivision 280.103(b)(2).

(c) The trust fund, when established, must be funded for the full required amount

of coverage, or funded for part of the required amount of coverage and used in

combination with other mechanism(s) that provide the remaining required coverage.

(d) If the value of the trust fund is greater than the required amount of coverage,

the O/O may submit a written request to the director of the implementing agency for

release of the excess.

(e) If other financial assurance as specified in this subpart is substituted for all or

part of the trust fund, the O/O may submit a written request to the director of the

implementing agency for release of the excess.

(f) Within 60 days after receiving a request from the O/O for release of funds as

specified in subsection (d) or (e) of this section, the director of the implementing agency

shall instruct the trustee to release to the O/O such funds as the director specifies in

writing.

History: 2018 AACS.

R 29.2165b Standby trust fund.

Rule 65b. Section 280.103 is added as adopted from the July 15, 2015, EPA-UST

rules as follows:

Section 280.103. (a) An O/O using any 1 of the mechanisms authorized by

sections 280.96, 280.98, or 280.99 shall establish a standby trust fund when the

mechanism is acquired. The trustee of the standby trust fund shall be an entity that has

the authority to act as a trustee and whose trust operations are regulated and examined by

a federal agency or an agency of the state in which the fund is established.

(b)(1) The standby trust agreement, or trust agreement, must be worded as follows,

except that instructions in brackets are to be replaced with the relevant information and

the brackets deleted:

TRUST AGREEMENT

Trust agreement, the ‘‘Agreement,’’ entered into as of [date] by and between

[name of the owner or operator], a [name of state] [insert ‘‘corporation,’’ ‘‘partnership,’’

‘‘association,’’ or ‘‘proprietorship’’], the ‘‘Grantor,’’ and [name of corporate trustee],

[insert ‘‘Incorporated in the state of ___’’ or ‘‘a national bank’’], the ‘‘Trustee.’’

Whereas, the United States Environmental Protection Agency, ‘‘EPA,’’ an agency

of the United States Government, has established certain regulations applicable to the

Grantor, requiring that an owner or operator of an UST shall provide assurance that funds

will be available when needed for corrective action and third party compensation for

bodily injury and property damage caused by sudden and nonsudden accidental releases

arising from the operation of the UST. The attached Schedule A lists the number of tanks

at each facility and the name(s) and address(es) of the facility(ies) where the tanks are

located that are covered by the standby trust agreement.

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[Whereas, the Grantor has elected to establish [insert either ‘‘a guarantee,’’

‘‘surety bond,’’ or ‘‘letter of credit’’] to provide all or part of such financial assurance for

the USTs identified herein and is required to establish a standby trust fund able to accept

payments from the instrument (This paragraph is only applicable to the standby trust

agreement.)];

Whereas, the Grantor, acting through its duly authorized officers, has selected the

Trustee to be the trustee under this agreement, and the Trustee is willing to act as trustee;

Now, therefore, the Grantor and the Trustee agree as follows:

Section 1. Definitions

As used in this Agreement:

(a) The term ‘‘Grantor’’ means the owner or operator who enters into this

Agreement and any successors or assigns of the Grantor.

(b) The term ‘‘Trustee’’ means the Trustee who enters into this Agreement and

any successor Trustee.

Section 2. Identification of the Financial Assurance Mechanism

This Agreement pertains to the [identify the financial assurance mechanism,

either a guarantee, surety bond, or letter of credit, from which the standby trust fund is

established to receive payments (This paragraph is only applicable to the standby trust

agreement.)].

Section 3. Establishment of Fund

The Grantor and the Trustee hereby establish a trust fund, the ‘‘Fund,’’ for the

benefit of [implementing agency]. The Grantor and the Trustee intend that no third party

have access to the Fund except as herein provided. [The Fund is established initially as a

standby to receive payments and shall not consist of any property.] Payments made by

the provider of financial assurance pursuant to [the Director of the implementing

agency’s] instruction are transferred to the Trustee and are referred to as the Fund,

together with all earnings and profits thereon, less any payments or distributions made by

the Trustee pursuant to this Agreement. The Fund shall be held by the Trustee, IN

TRUST, as hereinafter provided. The Trustee shall not be responsible nor shall it

undertake any responsibility for the amount or adequacy of, nor any duty to collect from

the Grantor as provider of financial assurance, any payments necessary to discharge any

liability of the Grantor established by [the state implementing agency]

Section 4. Payment for [‘‘Corrective Action’’ and/or Third Party Liability Claims’’]

The Trustee shall make payments from the Fund as [the Director of the

implementing agency] shall direct, in writing, to provide for the payment of the costs of

[insert: ‘‘taking corrective action’’ and/or compensating third parties for bodily injury

and property damage caused by’’ either ‘‘sudden accidental releases’’ or ‘‘nonsudden

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accidental releases’’ or ‘‘accidental releases’’] arising from operating the tanks covered

by the financial assurance mechanism identified in this Agreement.

The Fund may not be drawn upon to cover 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 UST;

(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

CFR part 280.93.

The Trustee shall reimburse the Grantor, or other persons as specified by [the

Director], from the Fund for corrective action expenditures and/or third party liability

claims in such amounts as [the Director] shall direct in writing. In addition, the Trustee

shall refund to the Grantor such amounts as [the Director] specifies in writing. Upon

refund, such funds shall no longer constitute part of the Fund as defined herein.

Section 5. Payments Comprising the Fund

Payments made to the Trustee for the Fund shall consist of cash and securities

acceptable to the Trustee.

Section 6. Trustee Management

The Trustee shall invest and reinvest the principal and income of the Fund and

keep the Fund invested as a single fund, without distinction between principal and

income, in accordance with general investment policies and guidelines which the Grantor

may communicate in writing to the Trustee from time to time, subject, however, to the

provisions of this Section. In investing, reinvesting, exchanging, selling, and managing

the Fund, the Trustee shall discharge his duties with respect to the trust fund solely in the

interest of the beneficiaries and with the care, skill, prudence, and diligence under the

circumstances then prevailing which persons of prudence, acting in a like capacity and

familiar with such matters, would use in the conduct of an enterprise of a like character

and with like aims; except that:

(i) Securities or other obligations of the Grantor, or any other O/O of the tanks, or

any of their affiliates as defined in the Investment Company Act of 1940, as amended, 15

U.S.C. 80a–2(a), shall not be acquired or held, unless they are securities or other

obligations of the federal or a state government;

(ii) The Trustee is authorized to invest the Fund in time or demand deposits of the

Trustee, to the extent insured by an agency of the federal or state government; and

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(iii) The Trustee is authorized to hold cash awaiting investment or distribution

uninvested for a reasonable time and without liability for the payment of interest thereon.

Section 7. Commingling and Investment

The Trustee is expressly authorized in its discretion:

(a) To transfer from time to time any or all of the assets of the Fund to any

common, commingled, or collective trust fund created by the Trustee in which the Fund

is eligible to participate, subject to all of the provision thereof, to be commingled with the

assets of other trusts participating therein; and

(b) To purchase shares in any investment company registered under the Investment

Company Act of 1940, 15 U.S.C. 80a–1 et seq., including 1 which may be created,

managed, underwritten, or to which investment advice is rendered or the shares of which

are sold by the Trustee. The Trustee may vote such shares in its discretion.

Section 8. Express Powers of Trustee

Without in any way limiting the powers and discretions conferred upon the

Trustee by the other provisions of this Agreement or by law, the Trustee is expressly

authorized and empowered:

(a) To sell, exchange, convey, transfer, or otherwise dispose of any property held

by it, by public or private sale. No person dealing with the Trustee shall be bound to see

to the application of the purchase money or to inquire into the validity or expediency of

any such sale or other disposition;

(b) To make, execute, acknowledge, and deliver any and all documents of transfer

and conveyance and any and all other instruments that may be necessary or appropriate to

carry out the powers herein granted;

(c) To register any securities held in the Fund in its own name or in the name of a

nominee and to hold any security in bearer form or in book entry, or to combine

certificates representing such securities with certificates of the same issue held by the

Trustee in other fiduciary capacities, or to deposit or arrange for the deposit of such

securities in a qualified central depository even though, when so deposited, such

securities may be merged and held in bulk in the name of the nominee of such depository

with other securities deposited therein by another person, or to deposit or arrange for the

deposit of any securities issued by the United States government, or any agency or

instrumentality thereof, with a Federal Reserve bank, but the books and records of the

Trustee shall at all times show that all such securities are part of the Fund;

(d) To deposit any cash in the Fund in interest bearing accounts maintained or

savings certificates issued by the Trustee, in its separate corporate capacity, or in any

other banking institution affiliated with the Trustee, to the extent insured by an agency of

the federal or state government; and

(e) To compromise or otherwise adjust all claims in favor of or against the Fund.

Section 9. Taxes and Expenses

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All taxes of any kind that may be assessed or levied against or in respect of the

Fund and all brokerage commissions incurred by the Fund shall be paid from the Fund.

All other expenses incurred by the Trustee in connection with the administration of this

Trust, including fees for legal services rendered to the Trustee, the compensation of the

Trustee to the extent not paid directly by the Grantor, and all other proper charges and

disbursements of the Trustee shall be paid from the Fund.

Section 10. Advice of Counsel

The Trustee may from time to time consult with counsel, who may be counsel to

the Grantor, with respect to any questions arising as to the construction of this Agreement

or any action to be taken here under. The Trustee shall be fully protected, to the extent

permitted by law, in acting upon the advice of counsel.

Section 11. Trustee Compensation

The Trustee shall be entitled to reasonable compensation for its services as agreed

upon in writing from time to time with the Grantor.

Section 12. Successor Trustee

The Trustee may resign or the Grantor may replace the Trustee, but such

resignation or replacement shall not be effective until the Grantor has appointed a

successor trustee and this successor accepts the appointment. The successor trustee shall

have the same powers and duties as those conferred upon the Trustee here under. Upon

the successor trustee’s acceptance of the appointment, the Trustee shall assign, transfer,

and pay over to the successor trustee the funds and properties then constituting the Fund.

If for any reason the Grantor cannot or does not act in the event of the resignation of the

Trustee, the Trustee may apply to a court of competent jurisdiction for the appointment of

a successor trustee or for instructions. The successor trustee shall specify the date on

which it assumes administration of the trust in writing sent to the Grantor and the present

Trustee by certified mail 10 days before such change becomes effective. Any expenses

incurred by the Trustee as a result of any of the acts contemplated by this Section shall be

paid as provided in Section 9.

Section 13. Instructions to the Trustee

All orders, requests, and instructions by the Grantor to the Trustee shall be in

writing, signed by such persons as are designated in the attached Schedule B or such

other designees as the Grantor may designate by amendment to Schedule B. The Trustee

shall be fully protected in acting without inquiry in accordance with the Grantor’s orders,

requests, and instructions. All orders, requests, and instructions by [the Director of the

implementing agency] to the Trustee shall be in writing, signed by [the Director], and the

Trustee shall act and shall be fully protected in acting in accordance with such orders,

requests, and instructions. The Trustee shall have the right to assume, in the absence of

written notice to the contrary, that no event constituting a change or a termination of the

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authority of any person to act on behalf of the Grantor or [the director] here under has

occurred. The Trustee shall have no duty to act in the absence of such orders, requests,

and instructions from the Grantor and/or [the Director], except as provided for herein.

Section 14. Amendment of Agreement

This Agreement may be amended by an instrument in writing executed by the

Grantor and the Trustee, or by the Trustee and [the Director of the implementing agency]

if the Grantor ceases to exist.

Section 15. Irrevocability and Termination

Subject to the right of the parties to amend this Agreement as provided in Section

14, this Trust shall be irrevocable and shall continue until terminated at the written

direction of the Grantor and the Trustee, or by the Trustee and [the Director of the

implementing agency], if the Grantor ceases to exist. Upon termination of the Trust, all

remaining trust property, less final trust administration expenses, shall be delivered to the

Grantor.

Section 16. Immunity and Indemnification

The Trustee shall not incur personal liability of any nature in connection with any

act or omission, made in good faith, in the administration of this Trust, or in carrying out

any directions by the Grantor or [the Director of the implementing agency] issued in

accordance with this Agreement. The Trustee shall be indemnified and saved harmless by

the Grantor, from and against any personal liability to which the Trustee may be

subjected by reason of any act or conduct in its official capacity, including all expenses

reasonably incurred in its defense in the event the Grantor fails to provide such defense.

Section 17. Choice of Law

This Agreement shall be administered, construed, and enforced according to the

laws of the state of [insert name of state], or the Comptroller of the Currency in the case

of National Association banks.

Section 18. Interpretation

As used in this Agreement, words in the singular include the plural and words in

the plural include the singular. The descriptive headings for each section of this

Agreement shall not affect the interpretation or the legal efficacy of this Agreement.

In Witness whereof the parties have caused this Agreement to be executed by

their respective officers duly authorized and their corporate seals (if applicable) to be

hereunto affixed and attested as of the date first above written. The parties below certify

that the wording of this Agreement is identical to the wording specified in 40 CFR

part 280.103(b)(1) as such regulations were constituted on the date written above.

[Signature of Grantor]

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[Name of the Grantor]

[Title]

Attest:

[Signature of Trustee]

[Name of the Trustee]

[Title]

[Seal]

[Signature of Witness]

[Name of the Witness]

[Title]

[Seal]

(2) The standby trust agreement, or trust agreement must be accompanied by a

formal certification of acknowledgment similar to the following. State requirements may

differ on the proper content of this acknowledgment.

State of ————————————————————

County of ———————————————————

On this [date], before me personally came [owner or operator] to me known, who,

being by me duly sworn, did depose and say that she/he resides at [address], that she/he is

[title] of [corporation], the corporation described in and which executed the above

instrument; that she/he knows the seal of said corporation; that the seal affixed to such

instrument is such corporate seal; that it was so affixed by order of the Board of Directors

of said corporation; and that she/he signed her/his name thereto by like order.

[Signature of Notary Public]

[Name of Notary Public]

(c) The Director of the implementing agency will instruct the trustee to refund the

balance of the standby trust fund to the provider of financial assurance if the Director

determines that no additional corrective action costs or third party liability claims will

occur as a result of a release covered by the financial assurance mechanism for which the

standby trust fund was established.

(d) An O/O may establish 1 trust fund as the depository mechanism for all funds

assured in compliance with this rule.

History: 2018 AACS.

R 29.2166 Local government bond rating test.

Rule 66. Section 280.104 is amended to read as follows:

Section 280.104. (a) A general purpose local government O/O, 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

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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 must 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 O/O or local government serving as a guarantor that is not

a general-purpose local government and that 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, Aa, 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 must 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 O/O, 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 O/O, 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" or “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 Maturity Outstanding Bond Bond Rating Agency

Date Date Amount Rating [Moody's or Standard and Poor's]

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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 O/O, 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" or “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]

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Issue Maturity Outstanding Bond Bond Rating Agency

Date Date Amount Rating [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 O/O, 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 O/O,

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

O/O shall obtain alternative coverage within 30 days after notification of such a finding.

(g) If a local government O/O using the bond rating test to provide financial

assurance finds that it no longer meets the bond rating test requirements, then the local

government O/O shall obtain alternative coverage within 150 days of the change in

status.

(h) If the local government O/O fails to obtain alternate assurance within 150 days

of finding that it no longer meets the requirements of the bond rating test or within 30

days of notification by the director of the implanting agency that it no longer meets the

requirements of the bond rating test, the O/O shall notify the director of this failure within

10 days.

History: 1998-2000 AACS; 2018 AACS.

R 29.2166a Local government financial test.

Rule 66a. Section 280.105 is amended to read as follows:

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Section 280.105. (a) A local government O/O 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 O/O 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 O/O 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 O/O 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).

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(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 O/O 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 O/O 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" or “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

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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)

$_____

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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

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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)

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(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

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(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 O/O 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 O/O 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 O/O. If the director finds, on the basis

of the reports or other information, that the local government O/O no longer meets the

financial test requirements of (b) to (e), then the O/O shall obtain alternate coverage

within 30 days after notification of the finding.

(h) If the local government O/O 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 O/O shall notify the director of the failure within 10 days.

History: 1998-2000 AACS; 2018 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 O/O 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 O/O 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:

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(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 subsection 280.104(d)

and (e) to the local government O/O.

(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 subsection 280.105(c)

to the local government O/O.

(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 O/O.

(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 O/O. The guarantee will

terminate not less than 120 days after the date the O/O receives the notification, as

evidenced by the return receipt. The O/O shall obtain alternative coverage as specified in

subsection 280.114(e).

(c) The guarantee agreement must 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 O/O, the guarantor guarantees to fund a

standby trust as directed by the director of the implementing agency, then the guarantee

must be worded as specified in subsection (d) of this section.

(2) If, in the default or incapacity of the O/O, 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 must 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 must 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 must 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

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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. Part 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. 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. Part 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:

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(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. Part 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. Part 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:

If the guarantor is a local government, the local government guarantee with standby

trust must be worded exactly as follows, except that instructions in brackets are to be

replaced with relevant information and the brackets deleted:

(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].

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Recitals

(i) Guarantor meets or exceeds [select 1: the local bond rating test requirements of

40 C.F.R. Part 280.104, the local government financial test requirements of 40 C.F.R.

Part 280.105, or the local government fund under 40 C.F.R. Part 280.107(a), (b), or (c)].