Leaking Underground Storage Tank Trust Fund Program (66.805)

Program

66.805 Leaking Underground Storage Tank Trust Fund Program

Federal Agency

Agency: Environmental Protection Agency
Office: Office of Solid Waste and Emergency Response

Authorization

Solid Waste Disposal Act of 1976 (SWDA), as amended, Section 9003(h), Public Law 105-276; American Recovery and Reinvestment Act of 2009.

Program Number

66.805

Last Known Status

Active

Objectives

To support State (including Territories that are included in the definition of "State" in the Solid Waste Disposal Act) and Tribal corrective action programs that address releases from underground storage tanks. Funding Priority - Fiscal Year 2009: Program funds from the annual Leaking Underground Storage Tanks (LUST) Trust Fund appropriation are used to provide resources to States and Tribes for their underground storage tank (UST) programs. Corrective Action: Eighty percent of the funds appropriated to the Agency for corrective action must be distributed to the States under cooperative agreements. Program funds are to be used to provide resources for the oversight and corrective action for petroleum releases from federally-regulated underground storage tanks (USTs), as well as for enforcement activities related to such corrective action. States that have entered into cooperative agreements with EPA have the authority to respond to petroleum releases from USTs using Leaking Underground Storage Tanks (LUST) Trust funds where owners and operators are unknown, unwilling or unable to take corrective actions themselves, and in certain other circumstances. States may also oversee responsible party cleanups. When the LUST Trust Fund is used, tank owners/operators are liable to the State for costs incurred and are subject to cost recovery actions.

States receiving cooperative agreement funding with supplemental appropriations from the Leaking Underground Storage Tanks (LUST) Trust Fund provided by the American Recovery and Reinvestment Act of 2009 (Recovery Act), must use those funds for corrective actions that can be implemented expeditiously and promote job creation and preservation in a manner consistent with the Funding Priority listed above, as well as necessary oversight of responsible party lead cleanups. Funding Priority - Fiscal Year 2010: Program funds from the annual Leaking Underground Storage Tanks (LUST) Trust Fund appropriation are used to provide resources to States and Tribes for their underground storage tank (UST) programs. Corrective Action: Eighty percent of the funds appropriated to the Agency for corrective action must be distributed to the States under cooperative agreements. Program funds are to be used to provide resources for the oversight and corrective action for petroleum releases from federally-regulated underground storage tanks (USTs), as well as for enforcement activities related to such corrective action. States that have entered into cooperative agreements with EPA have the authority to respond to petroleum releases from USTs using Leaking Underground Storage Tanks (LUST) Trust funds where owners and operators are unknown, unwilling or unable to take corrective actions themselves, and in certain other circumstances. States may also oversee responsible party cleanups. When the LUST Trust Fund is used, tank owners/operators are liable to the State for costs incurred and are subject to cost recovery actions.

Types of Assistance

FORMULA GRANTS

Uses and Use Restrictions

States and Tribes may use financial assistance under this program for eligible and allowable costs incurred under cooperative agreements for corrective action, as described in Section: 54 Funding Priority. This financial assistance program is not eligible for inclusion in Performance Partnership Grants under 40 CFR 35.133. EPA will award cooperative agreements for corrective action activities. The applicable provisions in OSWER Directive 9650.10A, "LUST Trust Fund Cooperative Agreement Guidelines" apply to states receiving funds under this program. See http://www.epa.gov/swerust1/directiv/d965010a.htm.

LUST Trust Funds for corrective will not be used to implement any provision of the Energy Policy Act (EPAct) of 2005, Title XV, Subtitle B, that is not also a leaking underground storage tank activity authorized by Section 205 of the Superfund Amendments and Reauthorization Act. Funds made available by the Recovery Act are prohibited from uses relating to casinos and other gambling establishments, aquariums, zoos, golf courses, or swimming pools.

Assistance agreement awards under this program may involve or relate to geospatial information. Further information regarding geospatial information may be obtained by viewing the following website: http://geodata.epa.gov.

Eligibility Requirements

Applicant Eligibility

Cooperative agreements are only available to States and Territories that have UST programs. Additionally, these cooperative agreements are only available to Federally-recognized Tribes and Intertribal Consortia that must meet the requirements, as described in the Federal Register Notice, Vol. 67, No. 213, pp. 67181-67183, "Update to EPA Policy on Certain Grants to Intertribal Consortia.".

Beneficiary Eligibility

States, Territories, Tribes and Intertribal Consortia and the communities and industries affected by leaks from underground storage tanks.

Credentials/Documentation

The EPA Regional Offices maintain the credentials/documentation for State and Territorial programs and federally recognized Tribes and Intertribal Consortia. Costs will be determined in accordance with OMB Circular No. A-87 (2 CFR Part 225) for State and local governments. OMB Circular No. A-87 applies to this program.

Application and Award Process

Preapplication Coordination

This program is eligible for coverage under E.O. 12372, "Intergovernmental Review of Federal Programs." An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review. Tribes and Intertribal Consortia are not required to follow intergovernmental review procedures. Environmental impact information is not required for this program. This program is eligible for coverage under E.O. 12372, "Intergovernmental Review of Federal Programs." An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review.

Application Procedure

OMB Circular No. A-102 applies to this program. This program is excluded from coverage under OMB Circular No. A-110. States and Tribes apply for funds through EPA regional offices under this CFDA.

Award Procedure

These funds are awarded non-competitively. Applications will be subjected to administrative evaluation to determine the adequacy of application in relation to assistance agreement regulations and to technical and program evaluation to determine the merit and relevance of the project. The Agency will advise the applicant if funding is being considered. A final work plan will be negotiated with the applicant. A cooperative agreement must be signed between EPA and the State or Territory or EPA and the Tribe or Intertribal Consortia. These grants are non-discretionary. EPA awards the cooperative agreement to states through a previously established allocation process, issued under national guidance rather than through competition. See EPA Order 5700.5, Section 6(c)(1).

For the Recovery Act funding, EPA will award separate cooperative agreements. Applicants will need to submit full workplans. However, to expedite the award of ARRA cooperative agreements, awards may be made on partial work plans. In these cases, the award must include a condition requiring submission of a full work plan within a specified time period.

Deadlines

Contact the headquarters or regional office, as appropriate, for application deadlines.

Range of Approval/Disapproval Time

Generally from 3 to 4 months. The Agency will award Recovery Act funding on an expedited basis.

Appeals

Disputes will be resolved under 40 CFR 30.63 or 40 CFR 31.70, as applicable.

Renewals

Contact the appropriate Regional Office. See http://www.epa.gov/OUST/regions/index.htm.

Assistance Considerations

Formula and Matching Requirements

Statutory Formula: Title Solid Waste Disposal Act.

Matching Requirements: LUST corrective action funding awarded under Section 9003(h)(7) of the Solid Waste Disposal Act is subject to an allocation process developed by the Agency. By guidance, the Agency has established a process for allocating funds to states under Section 9003(h)(7) based on the cumulative numbers of confirmed UST releases, total number of existing registered petroleum UST systems, cleanups initiated, cleanups completed, the percentage of the population using groundwater for drinking water, and the number of states with approved UST programs. This program allocates funding to Tribes and Intertribal Consortia non-competitively based on their programmatic needs and national guidance. States must provide a 10 percent cost share for cooperative agreements awarded under Section 9003(h)(7). There is no matching requirement for corrective action cooperative agreements for Tribes or Intertribal Consortia awarded pursuant to Public Law 105-276. Cooperative agreements awarded with Recovery Act funds are not subject to cost share requirements under section 9003(h)(7)(B) of the SWDA.

This program does not have MOE requirements.

Length and Time Phasing of Assistance

The terms of the grant shall be determined at the time of the grant award by the specific EPA Regional Office.

Cooperative agreements awarded with Recovery Act funds may be awarded on a two and one-half year budget and performance period (e.g., 4/1/2009 to 9/30/2011). The budget and performance period may be extended on a limited basis to allow work to be performed on eligible sites. See the following for information on how assistance is awarded/released: LUST Trust Fund Corrective Action assistance agreements are awarded to states annually on a multi-year cycle. States request funds through a letter of credit drawdown. The LUST Trust Fund Recovery Act assistance agreements will be awarded to states in a lump sum. States will request funds through a letter of credit drawdown.

Post Assistance Requirements

Reports

For the LUST Trust Fund Corrective Action assistance agreements, states report program performance results semi-annually and progress reports as part of the yearly review with EPA. For the LUST Trust Fund Recovery Act assistance agreements, states will report program performance results on a quarterly basis. For the LUST Trust Fund Corrective Action assistance agreements, states are required to submit Cash Reports to EPA's regional grants offices. For the LUST Trust Fund Recovery Act assistance agreements, states will be required to submit Cash Reports to EPA's regional grants offices. No progress reports are required. States are required to submit Financial Status Reports to regional grants offices. Performance monitoring is conducted to determine states' progress towards meeting overall program goals.

Audits

In accordance with the provisions of OMB Circular No. A-133 (Revised, June 27, 2003), "Audits of States, Local Governments, and Non-Profit Organizations," nonfederal entities that expend financial assistance of $500,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133. Grants and cooperative agreements are subject to inspections and audits by the Comptroller General of the United States, the EPA Office of Inspector General, other EPA staff or any authorized representative of the Federal government. Reviews by the EPA Project Officer and the Grants Specialist may occur each year. In accordance with the provisions of OMB Circular No. A-133 (Revised, June 27, 2003), "Audits of States, Local Governments, and Non-Profit Organizations," non-federal entities that expend $500,000 or more in a year in Federal awards shall have a single or a program-specific audit conducted for that year. Non-federal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in OMB Circular No. A-133.

Records

The record retention requirements of 40 CFR Part 31 (governmental units) or 40 CFR Part 30 (non-profit intertribal consortia) are applicable depending upon the identity of the recipient. Financial records, including all documents to support entries on accounting records and to substantiate changes to each grant must be kept available to personnel authorized to examine EPA grant accounts. All records must be maintained until expiration of three years from the date of submission of the final expenditure report. If questions still remain, such as those raised as a result of audit, related records should be retained until the matter is completely resolved.

Recipients must account for Recovery Act funds separately.

Program Accomplishments

Fiscal Year 2008: For FY 2008, 50 States, five territories and approximately 10 Indian Tribes submitted assistance agreement applications and the same number of awards were granted. In FY 2008, EPA met 98 percent of its national goal of 13,000 LUST cleanups completed. EPA met and exceeded its tribal LUST cleanups completed goal of 30 LUST cleanups completed by completing 40 LUST cleanups in Indian country. Fiscal Year 2009: It is anticipated that 50 States, five territories and approximately 10 Indian Tribes will submit assistance agreement applications and the same number of awards will be granted in FY 2009. In FY 2009, 49 states and five territories will submit assistance agreement applications and the same number of awards will be granted for the LUST Trust Fund Recovery Act cooperative agreements. In FY 2009, EPA expects to meet its national goal of 12,250 LUST cleanups completed, including 30 LUST cleanups completed in Indian country. Fiscal Year 2010: No Current Data Available

Financial Information

Account Identification

20-8153-0-7-304 - LUST 20-81-53-0-7-304 and for LUST Recovery Act funding 68-9/0 8196.

Obligations

(Formula Grants) FY 08 $61,237,000; FY 09 est $252,861,000; FY 10 est $63,192,000 - FY 09 LUST Recovery Act actual $190,700,000.

Range and Average of Financial Assistance

For the LUST corrective action funding, in FY 2008, Range for Territories and States: $43,000 - $3,700,000; Territory Average $54,000; State Average: $2,100,000. Range for Tribes and Intertribal Consortia: $20,00 - $300,000; Average: $160,000. For FY 2009, Range for Territories and States: $44,000 - $4,000,000; Territory Average $54,000; State Average: $1,100,000. Range for Tribes and Intertribal Consortia: $15,000 to $ 500,000; Average: $113,000. For 2010, the estimated Range for Territories and States: $44,000 - $4,000,000; Territory Average $54,000; State Average: $1,100,000. Range for Tribes and Intertribal Consortia: $15,000 to $ 500,000; Average: $113,000.

For the LUST Recovery Act funding, in FY 2009, Range for Territories and States: $57,000 - $15,600,000; Territory Average: $84,000; State Average: $3,700,000. Tribes are not receiving LUST Recovery Act funding through LUST corrective action cooperative agreements.

Regulations, Guidelines and Literature

The regulations governing the award and administration of the Recovery Act Leaking Underground Storage Tanks cooperative agreements and the Leaking Underground Storage Tank corrective action cooperative agreements are the "Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments" set forth at 40 CFR Part 31 (www.access.gpo.gov/nara/cfr/waisidx_00/40cfr31_00.html). Non-profit recipients are subject to 40 CFR Part 30.

Guidelines: Leaking Underground Storage Tanks Trust Fund. Cooperative Agreement Guidelines. Energy Policy Act of 2005 Grant Guidelines, http://www.epa.gov/swerust1/index.htm. Guidance To Regions For Implementing The LUST Provisions Of The American Recovery And Reinvestment Act of 2009, http://www.epa.gov/oust/eparecovery/index.htm.

Costs will be determined in accordance with OMB Circular No. A-87 (2 CFR Part 225) for State and local governments and Indian Tribes and OMB Circular A-122 (2 CFR Part 230) for Intertribal Consortia that follow the assistance regulations for nonprofit organizations. Contact Regional LUST Program Manager for documents.

Related Programs

66.804 State and Tribal Underground Storage Tanks Program

Information Contacts

Regional or Local Office

See Regional Agency Offices. See Appendix IV Of the Catalog for list of Underground Storage Tanks Regional Program Manager addresses.

Headquarters Office

Lynn Depont USEPA Headquarters
Ariel Rios Building
1200 Pennsylvania Avenue, N. W.
Mail Code: 5401P , Washington, District of Columbia 20460 Email: depont.lynn@epa.gov Phone: (703) 603-0175

Web Site Address

http://www.epa.gov/OUST/cat/index.htm.

Examples of Funded Projects

Fiscal Year 2008: Conducted site assessment/site characterization; reviewed site characterization reports; reviewed corrective action plans; conducted enforcement actions; provided assistance to Tribes to help develop and implement the LUST program; and conducted cleanups and provided oversight of responsible party cleanups. . Fiscal Year 2009: No Current Data Available Fiscal Year 2010: No Current Data Available

Criteria for Selecting Proposals

This program allocates funding to States and Tribes non-competitively under the allocation system referenced in Section :101. Guidelines for LUST corrective action cooperative agreements are found in OSWER Directive 9650-10A, and at OUST's website http://www.epa.gov/swerust1/directiv/d965010a.htm. Guidelines for LUST Recovery Act cooperative agreements are found in Guidance To Regions For Implementing The LUST Provisions Of The American Recovery And Reinvestment Act of 2009, http://www.epa.gov/oust/eparecovery/index.htm.