Financial Responsibility Requirements for Facilities in the Chemical, Petroleum and Electric Power Industries, 3512-3516 [2016-30040]
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STATE ADJUSTMENT FACTORS—
Continued
Appendix II
REGION-SPECIFIC OVERHEAD AND
OVERSIGHT PERCENTAGES
Region
1 ............................................
2 ............................................
3 ............................................
4 ............................................
5 ............................................
6 ............................................
7 ............................................
8 ............................................
9 ............................................
10 ..........................................
Total OC
percentage
48.64
47.60
51.42
49.57
50.13
48.66
47.63
48.19
48.73
48.14
Appendix III
STATE ADJUSTMENT FACTORS
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State
State
adjustment
factor
AK .........................................
AL .........................................
AR .........................................
AZ .........................................
CA .........................................
CO ........................................
CT .........................................
DE .........................................
FL ..........................................
GA .........................................
HI ..........................................
IA ..........................................
ID ..........................................
IL ...........................................
IN ..........................................
KS .........................................
KY .........................................
LA .........................................
MA ........................................
MD ........................................
ME ........................................
MI ..........................................
MN ........................................
MO ........................................
MS ........................................
MT .........................................
NC .........................................
ND .........................................
NE .........................................
NH .........................................
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1.19
0.91
0.87
0.96
1.17
0.97
1.18
1.10
0.92
0.89
1.19
0.98
0.97
1.15
1.00
0.94
0.99
0.89
1.20
0.99
1.03
1.04
1.12
1.04
0.89
0.97
0.87
0.92
0.97
1.06
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State
adjustment
factor
State
NJ .........................................
NM ........................................
NV .........................................
NY .........................................
OH ........................................
OK .........................................
OR ........................................
PA .........................................
RI ..........................................
SC .........................................
SD .........................................
TN .........................................
TX .........................................
UT .........................................
VA .........................................
VT .........................................
WA ........................................
WI .........................................
WV ........................................
WY ........................................
1.20
0.92
1.08
1.17
1.02
0.88
1.06
1.09
1.16
0.87
0.87
0.91
0.89
0.95
0.94
1.01
1.05
1.06
1.04
0.92
[FR Doc. 2016–30047 Filed 1–10–17; 8:45 am]
BILLING CODE 6560–50–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 320
[EPA–HQ–OLEM–2016–0212; FRL–9956–
56–OLEM]
RIN 2050–AG56
Financial Responsibility Requirements
for Facilities in the Chemical,
Petroleum and Electric Power
Industries
Environmental Protection
Agency (EPA).
ACTION: Notice of intent to proceed with
rulemakings.
AGENCY:
Section 108(b) of the
Comprehensive Environmental
Response, Compensation, and Liability
Act (CERCLA) establishes certain
regulatory authorities concerning
financial responsibility requirements.
SUMMARY:
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Specifically, the statutory language
addresses the promulgation of
regulations that require classes of
facilities to establish and maintain
evidence of financial responsibility
consistent with the degree and duration
of risk associated with the production,
transportation, treatment, storage, or
disposal of hazardous substances. On
January 6, 2010, the Environmental
Protection Agency (EPA) published an
Advance Notice of Proposed
Rulemaking (ANPRM) that identified
additional classes of facilities within
three industry sectors that may warrant
the development of financial
responsibility requirements under
CERCLA section 108(b)—the Chemical
Manufacturing industry (NAICS 325),
the Petroleum and Coal Products
Manufacturing industry (NAICS 324),
and the Electric Power Generation,
Transmission, and Distribution industry
(NAICS 2211). This document formally
announces EPA’s intention to publish a
notice for proposed rulemaking for
classes of facilities within the three
industries identified in the 2010
ANPRM, as well as gives an overview of
some of the comments received on the
ANPRM and initial responses to those
comments. The announcement in this
action is not a determination that
requirements are necessary for any or all
of the classes of facilities within the
three industries, or that EPA will
propose such requirements—rather, it is
an announcement that EPA intends to
move forward with the regulatory
process. After that process, EPA will
determine whether proposal of
requirements for any or all of the classes
of facilities within the three industries
is necessary.
DATES:
January 11, 2017.
For
more information on this action, contact
Peggy Vyas, U.S. Environmental
Protection Agency, Office of Resource
Conservation and Recovery, Mail Code
5303P, 1200 Pennsylvania Ave. NW.,
Washington, DC 20460; telephone (703)
FOR FURTHER INFORMATION CONTACT:
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Federal Register / Vol. 82, No. 7 / Wednesday, January 11, 2017 / Proposed Rules
308–5477 or (email) vyas.peggy@
epa.gov.
SUPPLEMENTARY INFORMATION:
I. General Information
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A. How can I get copies of this
document and other related
information?
1. Docket. EPA has established a
docket for this action under Docket ID
No. EPA–HQ–OLEM–2016–0212. The
2010 Advance Notice of Proposed
Rulemaking and its related documents,
including background documents and
public comments, are under Docket ID
No. EPA–HQ–SFUND–2009–0834. All
documents in the docket are listed in
the https://www.regulations.gov index.
Although listed in the index, some
information is not publicly available,
e.g., CBI or other information whose
disclosure is restricted by statute.
Certain other material, such as
copyrighted material, will be publicly
available only in hard copy. Publicly
available docket materials are available
either electronically in https://
www.regulations.gov or in hard copy at
EPA/DC, EPA West, Room 3334, 1301
Constitution Ave. NW., Washington, DC
20460. This Docket Facility is open from
8:30 a.m. to 4:30 p.m., Monday through
Friday, excluding legal holidays. The
Docket telephone number is (202) 566–
0276. The Public Reading Room is open
from 8:30 a.m. to 4:30 p.m., Monday
through Friday, excluding legal
holidays. The telephone number for the
Public Reading Room is (202) 566–1744.
2. Electronic Access. You may access
this Federal Register document
electronically from the Government
Printing Office under the ‘‘Federal
Register’’ listings at FDSys (https://
www.gpo.gov/fdsys/browse/
collection.action?collectionCode=FR).
II. Overview of CERCLA Section 108(b)
CERCLA section 108(b) generally
requires that EPA develop requirements
that classes of facilities establish and
maintain evidence of financial
responsibility ‘‘consistent with the
degree and duration of risk associated
with the production, transportation,
treatment, storage, or disposal of
hazardous substances.’’ 1 CERCLA
section 108(b)(2) directs that the level of
financial responsibility shall be initially
established, and, when necessary,
adjusted to protect against the level of
risk that EPA in its discretion believes
is appropriate based on the payment
experience of the Fund, commercial
1 Executive Order 12580 delegates the
responsibility to develop these requirements to the
Administrator of EPA for non-transportation related
facilities. 52 FR 2923, 3 CFR, 1987 Comp., p. 193.
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insurers, courts settlements and
judgments, and voluntary claims
satisfaction.
CERCLA section 108(b) also discusses
particular instruments for EPA to
consider in its regulations. Specifically,
paragraph (b)(2) states that financial
responsibility may be established by any
one, or any combination, of the
following: Insurance, guarantee, surety
bond, letter of credit, or qualification as
a self-insurer. Paragraph (b)(2) further
authorizes EPA to specify policy or
other contractual terms, conditions, or
defenses which are necessary, or which
are unacceptable in establishing
evidence of financial responsibility.
Paragraph (b)(2) also requires EPA to
cooperate with and seek the advice of
the commercial insurance industry to
the maximum extent practicable when
developing financial responsibility
requirements.2 Paragraph (b)(4) provides
direction on how the CERCLA section
108(b) instruments are to address
multiple owners and operators at a
single facility.3
CERCLA section 108(b)(3) requires
that regulations promulgated under
CERCLA section 108(b) incrementally
impose financial responsibility
requirements as quickly as can
reasonably be achieved, but in no event
more than four years after the date of
promulgation.4
CERCLA section 108(c) also includes
a ‘‘direct action’’ provision under which
any claim authorized by CERCLA
section 107 or 111 may be asserted
directly against any guarantor providing
evidence of financial responsibility
under CERCLA section 108(b) if the
person is liable under CERCLA section
107 and (1) is in bankruptcy,
reorganization, or arrangement pursuant
to the Federal Bankruptcy Code, or (2)
is likely to be solvent at the time of
judgment, but over whom jurisdiction in
the Federal courts cannot be obtained
with reasonable diligence.5
III. In re Idaho Conservation League
In August 2014, the groups Idaho
Conservation League, Earthworks, Sierra
Club, Amigos Bravos, Great Basin
Resource Watch, and Communities for a
Better Environment filed a lawsuit in
the U.S. Court of Appeals for the District
of Columbia Circuit, for a writ of
mandamus requiring issuance of
CERCLA section 108(b) financial
responsibility rules for the hardrock
mining industry, and for the three
additional industries identified by EPA
2 42
U.S.C. 9608(b)(2).
U.S.C. 9608(b)(4).
4 42 U.S.C. 9608(b)(3).
5 42 U.S.C. 9608(c)(2).
3 42
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3513
in the ANPRM, that is, Chemical
Manufacturing, Petroleum and Coal
Products Manufacturing, and Electric
Power Generation, Transmission, and
Distribution.6 Following oral arguments,
EPA and the petitioners submitted Joint
Motion for an Order on Consent, filed
on August 31, 2015, which included a
schedule for further administrative
proceedings under CERCLA section
108(b). The court order granting the
motion was issued on January 29, 2016.
A copy of the order can be found in the
docket for this action.
In addition to requiring EPA to
publish a proposed rule on hardrock
mining financial requirements by
December 1, 2016, the January 2016
Order requires EPA to ‘‘sign for
publication in the Federal Register a
determination whether EPA will issue a
action of proposed rulemaking on
financial responsibility requirements
under CERCLA § 108(b) in the (a)
chemical manufacturing industry; (b)
petroleum and coal products
manufacturing industry; and (c) electric
power generation, transmission, and
distribution industry by December 1,
2016.’’ The publication of this action
satisfies that component of the January
2016 order. The order includes the
following schedule for these
rulemakings:
‘‘EPA will sign for publication in the
Federal Register a notice of proposed
rulemaking in the first additional industry by
July 2, 2019, and sign for publication in the
Federal Register a notice of its final action
by December 2, 2020.
EPA will sign for publication in the
Federal Register a notice of proposed
rulemaking in the second additional industry
by December 4, 2019, and sign for
publication in the Federal Register a notice
of its final action by December 1, 2021.
EPA will sign for publication in the
Federal Register a notice of proposed
rulemaking in the third additional industry
by December 1, 2022, and sign for
publication in the Federal Register a notice
of its final action by December 4, 2024.’’ 7
While the January 2016 Order
identifies the other industries as being
the Chemical Manufacturing industry,
the Petroleum and Coal Products
Manufacturing industry, and the
Electric Power Generation,
Transmission and Distribution industry,
and sets a rulemaking schedule, it does
not specify which industry will be the
6 See In re: Idaho Conservation League, No. 14–
1149. For more information on the lawsuit please
refer to the preamble of the ‘‘Financial
Responsibility Requirements for the Hardrock
Mining Industry’’ proposed rule, published
elsewhere in this Federal Register.
7 In Re: Idaho Conservation League, No. 14–1149
(D.C. Cir. Jan. 29, 2016) (order granting joint
motion).
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first, second or third. EPA will decide
that at a later date. Nor does the January
2016 Order mandate any specific
outcome of the rulemakings.8 The Joint
Motion specified that it did not alter the
Agency’s discretion provided by
CERCLA and administrative law.9 In
other words, the substance of any
requirements arising out of CERCLA
section 108(b) for the additional classes
are not established in this action—any
such requirements, if they are imposed,
will not be established until EPA issues
any final rules for these classes.
Consequently, this document is not final
agency action.
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IV. Factors Identified by EPA for
Consideration in the Decision To
Develop a Proposed Rule for an
Additional Industry Sector
On July 28, 2009, EPA published a
Priority Notice in which we identified
classes of facilities in the hardrock
mining industry for development of
CERCLA section 108(b) financial
responsibility requirements. In that
action, EPA also announced its
intention to consider additional
industry sectors. EPA identified the
following factors as among those it may
consider in the decision whether to
propose requirements for an industry
sector: (1) The amounts of hazardous
substances released to the environment;
(2) the toxicity of these substances; (3)
the existence and proximity of potential
receptors; (4) contamination historically
found from facilities; (5) whether the
causes of this contamination still exist;
(6) experiences from Federal cleanup
programs; (7) projected costs of Federal
clean-up programs; and (8) corporate
structures and bankruptcy potential.10
EPA also indicated that the Agency
intends to consider whether financial
responsibility requirements under
CERCLA section 108(b) will effectively
reduce these risks.11
Some of the factors reflect the basic
elements of risk evaluation (i.e., the
probability of release, exposure, and
toxicity); others more closely relate to
the severity of consequences that result
when risks are realized, such as the
releases’ duration and the exposures
8 In granting the Joint Motion, the court expressly
stated that its Order ‘‘merely requires that EPA
conduct a rulemaking and then decide whether to
promulgate a new rule—the content of which is not
in any way dictated by the [Order].’’ In re Idaho
Conservation League, at 17 (quoting Defenders of
Wildlife v. Perciasepe, 714 F, 3d 1317, 1324 (D.C.
Cir. 2013).
9 See Joint Motion at 6 (‘‘Nothing in this Joint
Motion should be construed to limit or modify the
discretion accorded EPA by CECLA or the general
principles of administrative law’’.)
10 See 74 FR 37218.
11 See 74 FR 37219.
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that can result if releases are not
prevented or quickly controlled (e.g. as
a result of economic constraints).
V. Additional Classes Advance Notice
of Proposed Rulemaking
On January 6, 2010, EPA published an
ANPRM,12 in which the Agency
identified three additional industrial
sectors for the development, as
necessary, of a proposed CERCLA
section 108(b) regulation. To develop
the list of additional classes for the 2010
ANPRM, EPA used information from the
National Priorities List (NPL), as well as
analyzed data from the Biennial Report
(BR) and Toxics Release Inventory (TRI).
As was discussed in the document,
these sources were chosen because
‘‘they are well-established, reliable
sources of information on facilities
associated with hazardous substances,
and were readily available to the
Agency.’’ 13 In addition to these sources,
EPA further evaluated industry sectors
by gathering additional information
from natural resource damage cases. The
result of this analysis is explained in the
2010 ANPRM in detail, with the
conclusion that three industries—the
Chemical Manufacturing industry
(NAICS 325), the Petroleum and Coal
Products Manufacturing industry
(NAICS 324), and the Electric Power
Generation, Transmission, and
Distribution industry (NAICS 2211)—
should be considered for financial
responsibility requirements under
CERCLA section 108(b).
EPA specifically requested public
comment in the 2010 ANPRM on
whether to propose a regulation under
CERCLA section 108(b) for any class or
classes, or the industry as a whole,
including information demonstrating
why such financial responsibility
requirements would not be appropriate
for those particular classes. In addition,
the Agency requested information
related to the industry categories
discussed in the action, including data
on facility operations, information on
past and expected future environmental
responses, use of financial
responsibility mechanisms by the
industry categories, existing financial
responsibility requirements, and other
information the Agency might consider
in setting financial responsibility levels.
Finally, EPA requested information
from the insurance and the financial
sectors related to instrument
implementation and availability, and
potential instrument conditions.14
12 See
75 FR 816.
75 FR 819.
14 See 75 FR 830–831.
13 See
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EPA received over sixty comments on
the ANPRM, which can be found in the
docket for that action (see Docket ID No.
EPA–HQ–SFUND–2009–0834). Several
comments offered valuable insight that
will help to inform the Agency’s
approach to the additional classes
ANPRM. While the Agency is not
obligated to respond to comments
received on the ANPRM, EPA has
provided general responses to those
comments that relate specifically to this
announcement that EPA will continue
the regulatory process under CERCLA
section 108(b).
VI. Comments Received on the 2010
ANPRM
Representatives for the electric utility
industry submitted roughly one-third of
the comments on the 2010 ANPRM.
Representatives for the chemical
manufacturing industry, the petroleum
industry, the waste management
industry, the hardrock mining industry,
as well as other interested parties also
submitted comments.
The comments on the 2010 ANPRM,
which specifically addressed the need
for CERCLA section 108(b) regulation
for the additional classes, can be
divided into four categories: (1) Other
laws that the industry complies with
that obviate the need for CERCLA
section 108(b) regulation; (2) the sources
of data EPA used to select the
industries; (3) past versus current
practices within each industry; and (4)
the overall need for financial
responsibility for each industry. EPA is
broadly addressing these categories of
comments in this action.
A. Other Laws
Many commenters cited existing laws
that their industries are already
complying with to ensure that there are
no occurrences of non-permitted
releases of hazardous substances. In
particular, commenters pointed out that
there are already financial responsibility
requirements under the Resource
Conservation and Recovery Act (RCRA).
While EPA appreciates the concern, as
was discussed above, CERCLA section
108(b) broadly directs the development
of financial responsibility requirements
consistent with the degree and duration
of risk associated with the production,
transportation, treatment, storage or
disposal of hazardous substances. These
requirements, which are designed to
help ensure that CERCLA liabilities are
paid if CERCLA claims are made, are
distinct from financial responsibility
requirements for closure imposed under
other statutes, such as RCRA, which are
more narrowly designed to assure
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compliance with those closure
requirements.
At the same time, the Agency
recognizes that compliance with
regulatory requirements may reduce the
risks at a facility. Thus, as EPA moves
forward with developing proposed rules
for additional classes of facilities, EPA
expects to consider site factors that
reduce risks, including those that result
from compliance with other regulatory
requirements. EPA has taken a similar
approach in the CERCLA section 108(b)
proposed rule applicable to hardrock
mining, which is published elsewhere
in this Federal Register.
B. Data Used in Developing the ANPRM
In the ANPRM, EPA used data from
the Toxics Release Inventory (TRI), and
RCRA’s national Biennial Report (BR),
among other sources, to identify and
prioritize which classes of facilities
present the highest risk of injury due to
exposure, and thus to justify the need to
prioritize financial responsibility
requirements. The Chemical
Manufacturing and Petroleum and Coal
Products Manufacturing industries were
the top two industries in a ranking of
the quantity of hazardous waste
generated in 2007. They were
responsible for approximately 64
percent of all the hazardous waste
reported to the 2007 Biennial Report
cycle.15 The Electric Power Generation,
Transmission and Distribution industry
was responsible for approximately 0.05
percent hazardous waste generated. This
is not unexpected considering that coal
combustion residuals (CCRs) are a
‘‘Bevill exempt’’ 16 waste under RCRA,
and thus not subject to Biennial
Reporting requirements. Therefore, the
amount of hazardous waste generated is
not necessarily a valid representation of
the hazardous substances produced by
that industry.17
The Chemical Manufacturing and
Electric Power Generation,
Transmission and Distribution
industries ranked high on the list of onsite releases reported to TRI in 2007, at
number two and three respectively. The
Petroleum and Coal Products
Manufacturing industry ranked seventh
on that list.18
Commenters expressed concern that
releases reported to TRI are permitted
releases, subject to various
75 FR 820–821.
‘‘Bevill’’ exemption is codified at 40 CFR
261.3(a)(2)(i) and (g)(4) and 261.4(b)(7).
17 This notice does not revisit EPA’s Regulatory
Determination for CCR disposal units. See
Hazardous and Solid Waste Management System;
Disposal of Coal Combustion Residuals from
Electric Utilities, 80 FR 21302, April 17, 2015.
18 See 75 FR 821.
environmental laws. Commenters also
expressed concern that BR data merely
shows the quantity of hazardous
substances generated and managed, and
not any mismanagement of those
substances. Neither of these,
commenters felt, should be used as
indicators of potential risk of exposure
due to a release. EPA recognizes the
limitations on the extent of information
that can be gained from TRI and BR
data, however, EPA believes these data
do offer insight into the characteristics
and management of hazardous
substances for facilities in each
industry, and that in conjunction with
other information, can be used as to
evaluate the relative degree of risk
posed by a class of facilities and the
priority need for financial responsibility
regulation under CERCLA section
108(b). As with the hardrock mining
rule, for each subsequent industry rule,
EPA intends to use other, more
industry-specific and more current
sources of data to identify risk, and will
propose financial responsibility
requirements based on the record EPA
will develop for each rulemaking.
Where the Agency finds risk associated
with management of hazardous
substances for a class of facilities, it is
obligated to promulgate financial
responsibility requirements that are
consistent with the degree and duration
of that risk. None of the commenters
submitted data to dissuade the Agency
from the path of acquiring additional
and more comprehensive information
for these industries. The Agency
considers quantity and toxicity of
hazardous substances released to the
environment are good indicators of risk.
C. Past versus Current Industry Practices
Another source of data for the
ANPRM was the Superfund National
Priorities List (NPL). The NPL is the list
of national priorities among the known
releases or threatened releases of
hazardous substances, pollutants, or
contaminants in the United States. The
Agency assigned three-digit NAICS 19
codes that best identified the activities
at each site, using available data and
best professional judgment. The
Chemical Manufacturing industry had a
total of 181 sites on the NPL from 1981–
2009, the Petroleum and Coal Products
Manufacturing industry had 30 sites.20
15 See
16 The
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19 North American Industry Classification System
(NAICS)—the standard used by Federal statistical
agencies in classifying business establishments for
the purpose of collecting, analyzing, and publishing
statistical data related to the U.S. business
economy. NAICS codes are available at: https://
www.census.gov.
20 See 75 FR 820.
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3515
Commenters whose industries had
sites listed on the NPL pointed out that
many of those sites either did not
remain in production, or had practices
that were improved based on
environmental regulations issued after
the initial contamination. Commenters
felt that legacy contamination was not a
valid indicator of current and future
risk. Also at issue was EPA’s analysis of
the NPL data. Some commenters felt
their industry was over-represented
based on incorrect analysis of the NPL
data.
EPA believes, notwithstanding the
commenters’ negative assessment of the
Agency’s analysis, that the NPL
assessment is informative. Like the TRI
and BR data, NPL data was used to
indicate which industries pose potential
risk that would warrant pursuing
financial responsibility regulation under
CERCLA section 108(b). The Agency did
not receive evidence that risks do not
continue at these sites. Where risk
continues, EPA believes it is appropriate
to consider site factors that reduce risks,
such as current industry practices, in
determining the level of financial
responsibility required. Consideration
will also be given to payment
experience of the Fund, commercial
insurers, court settlements and
judgments, and voluntary claims
satisfaction.
D. Need for Financial Responsibility
A common theme in the comments,
across all three industries, was that
there was no need for financial
responsibility since facilities within
these industries are not in danger of
going bankrupt. Many commenters felt
that rather than focus on a few examples
of past bankruptcies, EPA should
consider the financial health of all the
companies in an industry as a group.
EPA disagrees with commenters’
suggestion that need for financial
responsibility should be informed by
the financial health of the overall
industry. Financial responsibility is
imposed on classes within an industry,
but is assessed at the facility level, and
not the industry as a whole. Economic
solvency at an industry-wide level is not
a substitute for insurance against the
possibility of CERCLA liabilities
remaining unsatisfied on a facilityspecific basis. Furthermore, CERCLA
section 108(b) funds could be used to
address releases at currently-operating
facilities. It should be noted that, as
mentioned in the preamble to the
Financial Responsibility Requirements
under CERCLA Section 108(b) for
Classes of Facilities in the Hardrock
Mining Industry proposed rule, the
financial responsibility formula
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developed for the hardrock mining
industry is intended for that industry
only, and is not intended for other
industries. In future rulemakings under
CERCLA section 108(b) for the
additional classes, EPA will evaluate
how to determine financial
responsibility amounts for each
particular industry, and will propose an
appropriate methodology.
CERCLA authority to collect taxes for
the Superfund as reasons for EPA to
move forward with regulations ‘‘to
ensure that facilities generating and
handling hazardous substances will
remain financially able to clean-up
improperly disposed substances that
could pose threats to public health and
the environment.’’
E. Comments That Support CERCLA
Section 108(b) Requirements for
Additional Classes
Since the issuance of the 2010
ANPRM, EPA has not received evidence
that would demonstrate that regulation
under CERCLA section108(b) is not
necessary for the Chemical
Manufacturing industry (NAICS 325),
the Petroleum and Coal Products
Manufacturing industry (NAICS 324),
and the Electric Power Generation,
Transmission, and Distribution industry
(NAICS 2211).
EPA has not, at this time, identified
sufficient evidence to determine that
initiating the rulemaking process is not
warranted, nor has EPA identified
sufficient evidence to establish the
necessary CERCLA section 108(b)
requirements, if any. To make a final
decision regarding the need for CERCLA
section 108(b) requirements, the Agency
must gather additional information, and
must further evaluate the classes of
facilities within the three industry
sectors.
Therefore, in response to the January
29, 2016 Court Order, EPA is
sradovich on DSK3GMQ082PROD with PROPOSALS2
The Agency received two comments
on the ANPRM that supported the need
for CERCLA section 108(b) regulations
for the additional classes. The first
commenter provided an example of a
facility that required cleanup and
where, in the commenter’s opinion, had
the facility been subject to financial
responsibility requirements,
remediation would have been achieved
much earlier as financial resources
would have been available from the
outset to carry out the remediation and
there would have been less incentive for
the responsible party to delay cleanup.
The second commenter supporting
the need for financial responsibility
requirements for the additional classes
cited a 2005 GAO report that the
number of sites on the NPL continues to
expand, with EPA adding an average of
28 sites to the NPL each year from 1983
to 2003, and the 1995 expiration of
VerDate Sep<11>2014
19:18 Jan 10, 2017
Jkt 241001
VII. Conclusion
PO 00000
Frm 00130
Fmt 4701
Sfmt 9990
announcing its intent to proceed with
rulemakings according to the schedule
stipulated in the order. This
announcement does not indicate that
EPA has determined that requirements
are necessary for any or all of the classes
of facilities within the three industries,
or that EPA will propose such
requirements—rather, this
announcement indicates that EPA
intends to move forward with the
regulatory process. That process will
include gathering and analyzing
additional information to support the
Agency’s ultimate decision. At that
time, EPA will decide whether proposal
of requirements for any or all of the
classes of facilities within each industry
sector is necessary and, if they are, will
propose appropriate requirements. If,
however, after a careful evaluation of
the information for each industry sector,
EPA were to determine that
requirements under CERCLA section
108(b) are not necessary, EPA would
propose not to impose requirements. In
other words, this document does not
constitute a rulemaking. It merely
indicates the initiation of the
rulemaking process rather than being
the culmination of such a process.
Dated: December 1, 2016.
Gina McCarthy,
Administrator.
[FR Doc. 2016–30040 Filed 1–10–17; 8:45 am]
BILLING CODE 6560–50–P
E:\FR\FM\11JAP2.SGM
11JAP2
Agencies
[Federal Register Volume 82, Number 7 (Wednesday, January 11, 2017)]
[Proposed Rules]
[Pages 3512-3516]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-30040]
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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 320
[EPA-HQ-OLEM-2016-0212; FRL-9956-56-OLEM]
RIN 2050-AG56
Financial Responsibility Requirements for Facilities in the
Chemical, Petroleum and Electric Power Industries
AGENCY: Environmental Protection Agency (EPA).
ACTION: Notice of intent to proceed with rulemakings.
-----------------------------------------------------------------------
SUMMARY: Section 108(b) of the Comprehensive Environmental Response,
Compensation, and Liability Act (CERCLA) establishes certain regulatory
authorities concerning financial responsibility requirements.
Specifically, the statutory language addresses the promulgation of
regulations that require classes of facilities to establish and
maintain evidence of financial responsibility consistent with the
degree and duration of risk associated with the production,
transportation, treatment, storage, or disposal of hazardous
substances. On January 6, 2010, the Environmental Protection Agency
(EPA) published an Advance Notice of Proposed Rulemaking (ANPRM) that
identified additional classes of facilities within three industry
sectors that may warrant the development of financial responsibility
requirements under CERCLA section 108(b)--the Chemical Manufacturing
industry (NAICS 325), the Petroleum and Coal Products Manufacturing
industry (NAICS 324), and the Electric Power Generation, Transmission,
and Distribution industry (NAICS 2211). This document formally
announces EPA's intention to publish a notice for proposed rulemaking
for classes of facilities within the three industries identified in the
2010 ANPRM, as well as gives an overview of some of the comments
received on the ANPRM and initial responses to those comments. The
announcement in this action is not a determination that requirements
are necessary for any or all of the classes of facilities within the
three industries, or that EPA will propose such requirements--rather,
it is an announcement that EPA intends to move forward with the
regulatory process. After that process, EPA will determine whether
proposal of requirements for any or all of the classes of facilities
within the three industries is necessary.
DATES: January 11, 2017.
FOR FURTHER INFORMATION CONTACT: For more information on this action,
contact Peggy Vyas, U.S. Environmental Protection Agency, Office of
Resource Conservation and Recovery, Mail Code 5303P, 1200 Pennsylvania
Ave. NW., Washington, DC 20460; telephone (703)
[[Page 3513]]
308-5477 or (email) vyas.peggy@epa.gov.
SUPPLEMENTARY INFORMATION:
I. General Information
A. How can I get copies of this document and other related information?
1. Docket. EPA has established a docket for this action under
Docket ID No. EPA-HQ-OLEM-2016-0212. The 2010 Advance Notice of
Proposed Rulemaking and its related documents, including background
documents and public comments, are under Docket ID No. EPA-HQ-SFUND-
2009-0834. All documents in the docket are listed in the https://www.regulations.gov index. Although listed in the index, some
information is not publicly available, e.g., CBI or other information
whose disclosure is restricted by statute. Certain other material, such
as copyrighted material, will be publicly available only in hard copy.
Publicly available docket materials are available either electronically
in https://www.regulations.gov or in hard copy at EPA/DC, EPA West, Room
3334, 1301 Constitution Ave. NW., Washington, DC 20460. This Docket
Facility is open from 8:30 a.m. to 4:30 p.m., Monday through Friday,
excluding legal holidays. The Docket telephone number is (202) 566-
0276. The Public Reading Room is open from 8:30 a.m. to 4:30 p.m.,
Monday through Friday, excluding legal holidays. The telephone number
for the Public Reading Room is (202) 566-1744.
2. Electronic Access. You may access this Federal Register document
electronically from the Government Printing Office under the ``Federal
Register'' listings at FDSys (https://www.gpo.gov/fdsys/browse/collection.action?collectionCode=FR).
II. Overview of CERCLA Section 108(b)
CERCLA section 108(b) generally requires that EPA develop
requirements that classes of facilities establish and maintain evidence
of financial responsibility ``consistent with the degree and duration
of risk associated with the production, transportation, treatment,
storage, or disposal of hazardous substances.'' \1\ CERCLA section
108(b)(2) directs that the level of financial responsibility shall be
initially established, and, when necessary, adjusted to protect against
the level of risk that EPA in its discretion believes is appropriate
based on the payment experience of the Fund, commercial insurers,
courts settlements and judgments, and voluntary claims satisfaction.
---------------------------------------------------------------------------
\1\ Executive Order 12580 delegates the responsibility to
develop these requirements to the Administrator of EPA for non-
transportation related facilities. 52 FR 2923, 3 CFR, 1987 Comp., p.
193.
---------------------------------------------------------------------------
CERCLA section 108(b) also discusses particular instruments for EPA
to consider in its regulations. Specifically, paragraph (b)(2) states
that financial responsibility may be established by any one, or any
combination, of the following: Insurance, guarantee, surety bond,
letter of credit, or qualification as a self-insurer. Paragraph (b)(2)
further authorizes EPA to specify policy or other contractual terms,
conditions, or defenses which are necessary, or which are unacceptable
in establishing evidence of financial responsibility. Paragraph (b)(2)
also requires EPA to cooperate with and seek the advice of the
commercial insurance industry to the maximum extent practicable when
developing financial responsibility requirements.\2\ Paragraph (b)(4)
provides direction on how the CERCLA section 108(b) instruments are to
address multiple owners and operators at a single facility.\3\
---------------------------------------------------------------------------
\2\ 42 U.S.C. 9608(b)(2).
\3\ 42 U.S.C. 9608(b)(4).
---------------------------------------------------------------------------
CERCLA section 108(b)(3) requires that regulations promulgated
under CERCLA section 108(b) incrementally impose financial
responsibility requirements as quickly as can reasonably be achieved,
but in no event more than four years after the date of promulgation.\4\
---------------------------------------------------------------------------
\4\ 42 U.S.C. 9608(b)(3).
---------------------------------------------------------------------------
CERCLA section 108(c) also includes a ``direct action'' provision
under which any claim authorized by CERCLA section 107 or 111 may be
asserted directly against any guarantor providing evidence of financial
responsibility under CERCLA section 108(b) if the person is liable
under CERCLA section 107 and (1) is in bankruptcy, reorganization, or
arrangement pursuant to the Federal Bankruptcy Code, or (2) is likely
to be solvent at the time of judgment, but over whom jurisdiction in
the Federal courts cannot be obtained with reasonable diligence.\5\
---------------------------------------------------------------------------
\5\ 42 U.S.C. 9608(c)(2).
---------------------------------------------------------------------------
III. In re Idaho Conservation League
In August 2014, the groups Idaho Conservation League, Earthworks,
Sierra Club, Amigos Bravos, Great Basin Resource Watch, and Communities
for a Better Environment filed a lawsuit in the U.S. Court of Appeals
for the District of Columbia Circuit, for a writ of mandamus requiring
issuance of CERCLA section 108(b) financial responsibility rules for
the hardrock mining industry, and for the three additional industries
identified by EPA in the ANPRM, that is, Chemical Manufacturing,
Petroleum and Coal Products Manufacturing, and Electric Power
Generation, Transmission, and Distribution.\6\ Following oral
arguments, EPA and the petitioners submitted Joint Motion for an Order
on Consent, filed on August 31, 2015, which included a schedule for
further administrative proceedings under CERCLA section 108(b). The
court order granting the motion was issued on January 29, 2016. A copy
of the order can be found in the docket for this action.
---------------------------------------------------------------------------
\6\ See In re: Idaho Conservation League, No. 14-1149. For more
information on the lawsuit please refer to the preamble of the
``Financial Responsibility Requirements for the Hardrock Mining
Industry'' proposed rule, published elsewhere in this Federal
Register.
---------------------------------------------------------------------------
In addition to requiring EPA to publish a proposed rule on hardrock
mining financial requirements by December 1, 2016, the January 2016
Order requires EPA to ``sign for publication in the Federal Register a
determination whether EPA will issue a action of proposed rulemaking on
financial responsibility requirements under CERCLA Sec. 108(b) in the
(a) chemical manufacturing industry; (b) petroleum and coal products
manufacturing industry; and (c) electric power generation,
transmission, and distribution industry by December 1, 2016.'' The
publication of this action satisfies that component of the January 2016
order. The order includes the following schedule for these rulemakings:
``EPA will sign for publication in the Federal Register a notice
of proposed rulemaking in the first additional industry by July 2,
2019, and sign for publication in the Federal Register a notice of
its final action by December 2, 2020.
EPA will sign for publication in the Federal Register a notice
of proposed rulemaking in the second additional industry by December
4, 2019, and sign for publication in the Federal Register a notice
of its final action by December 1, 2021.
EPA will sign for publication in the Federal Register a notice
of proposed rulemaking in the third additional industry by December
1, 2022, and sign for publication in the Federal Register a notice
of its final action by December 4, 2024.'' \7\
---------------------------------------------------------------------------
\7\ In Re: Idaho Conservation League, No. 14-1149 (D.C. Cir.
Jan. 29, 2016) (order granting joint motion).
While the January 2016 Order identifies the other industries as
being the Chemical Manufacturing industry, the Petroleum and Coal
Products Manufacturing industry, and the Electric Power Generation,
Transmission and Distribution industry, and sets a rulemaking schedule,
it does not specify which industry will be the
[[Page 3514]]
first, second or third. EPA will decide that at a later date. Nor does
the January 2016 Order mandate any specific outcome of the
rulemakings.\8\ The Joint Motion specified that it did not alter the
Agency's discretion provided by CERCLA and administrative law.\9\ In
other words, the substance of any requirements arising out of CERCLA
section 108(b) for the additional classes are not established in this
action--any such requirements, if they are imposed, will not be
established until EPA issues any final rules for these classes.
Consequently, this document is not final agency action.
---------------------------------------------------------------------------
\8\ In granting the Joint Motion, the court expressly stated
that its Order ``merely requires that EPA conduct a rulemaking and
then decide whether to promulgate a new rule--the content of which
is not in any way dictated by the [Order].'' In re Idaho
Conservation League, at 17 (quoting Defenders of Wildlife v.
Perciasepe, 714 F, 3d 1317, 1324 (D.C. Cir. 2013).
\9\ See Joint Motion at 6 (``Nothing in this Joint Motion should
be construed to limit or modify the discretion accorded EPA by CECLA
or the general principles of administrative law''.)
---------------------------------------------------------------------------
IV. Factors Identified by EPA for Consideration in the Decision To
Develop a Proposed Rule for an Additional Industry Sector
On July 28, 2009, EPA published a Priority Notice in which we
identified classes of facilities in the hardrock mining industry for
development of CERCLA section 108(b) financial responsibility
requirements. In that action, EPA also announced its intention to
consider additional industry sectors. EPA identified the following
factors as among those it may consider in the decision whether to
propose requirements for an industry sector: (1) The amounts of
hazardous substances released to the environment; (2) the toxicity of
these substances; (3) the existence and proximity of potential
receptors; (4) contamination historically found from facilities; (5)
whether the causes of this contamination still exist; (6) experiences
from Federal cleanup programs; (7) projected costs of Federal clean-up
programs; and (8) corporate structures and bankruptcy potential.\10\
EPA also indicated that the Agency intends to consider whether
financial responsibility requirements under CERCLA section 108(b) will
effectively reduce these risks.\11\
---------------------------------------------------------------------------
\10\ See 74 FR 37218.
\11\ See 74 FR 37219.
---------------------------------------------------------------------------
Some of the factors reflect the basic elements of risk evaluation
(i.e., the probability of release, exposure, and toxicity); others more
closely relate to the severity of consequences that result when risks
are realized, such as the releases' duration and the exposures that can
result if releases are not prevented or quickly controlled (e.g. as a
result of economic constraints).
V. Additional Classes Advance Notice of Proposed Rulemaking
On January 6, 2010, EPA published an ANPRM,\12\ in which the Agency
identified three additional industrial sectors for the development, as
necessary, of a proposed CERCLA section 108(b) regulation. To develop
the list of additional classes for the 2010 ANPRM, EPA used information
from the National Priorities List (NPL), as well as analyzed data from
the Biennial Report (BR) and Toxics Release Inventory (TRI). As was
discussed in the document, these sources were chosen because ``they are
well-established, reliable sources of information on facilities
associated with hazardous substances, and were readily available to the
Agency.'' \13\ In addition to these sources, EPA further evaluated
industry sectors by gathering additional information from natural
resource damage cases. The result of this analysis is explained in the
2010 ANPRM in detail, with the conclusion that three industries--the
Chemical Manufacturing industry (NAICS 325), the Petroleum and Coal
Products Manufacturing industry (NAICS 324), and the Electric Power
Generation, Transmission, and Distribution industry (NAICS 2211)--
should be considered for financial responsibility requirements under
CERCLA section 108(b).
---------------------------------------------------------------------------
\12\ See 75 FR 816.
\13\ See 75 FR 819.
---------------------------------------------------------------------------
EPA specifically requested public comment in the 2010 ANPRM on
whether to propose a regulation under CERCLA section 108(b) for any
class or classes, or the industry as a whole, including information
demonstrating why such financial responsibility requirements would not
be appropriate for those particular classes. In addition, the Agency
requested information related to the industry categories discussed in
the action, including data on facility operations, information on past
and expected future environmental responses, use of financial
responsibility mechanisms by the industry categories, existing
financial responsibility requirements, and other information the Agency
might consider in setting financial responsibility levels. Finally, EPA
requested information from the insurance and the financial sectors
related to instrument implementation and availability, and potential
instrument conditions.\14\
---------------------------------------------------------------------------
\14\ See 75 FR 830-831.
---------------------------------------------------------------------------
EPA received over sixty comments on the ANPRM, which can be found
in the docket for that action (see Docket ID No. EPA-HQ-SFUND-2009-
0834). Several comments offered valuable insight that will help to
inform the Agency's approach to the additional classes ANPRM. While the
Agency is not obligated to respond to comments received on the ANPRM,
EPA has provided general responses to those comments that relate
specifically to this announcement that EPA will continue the regulatory
process under CERCLA section 108(b).
VI. Comments Received on the 2010 ANPRM
Representatives for the electric utility industry submitted roughly
one-third of the comments on the 2010 ANPRM. Representatives for the
chemical manufacturing industry, the petroleum industry, the waste
management industry, the hardrock mining industry, as well as other
interested parties also submitted comments.
The comments on the 2010 ANPRM, which specifically addressed the
need for CERCLA section 108(b) regulation for the additional classes,
can be divided into four categories: (1) Other laws that the industry
complies with that obviate the need for CERCLA section 108(b)
regulation; (2) the sources of data EPA used to select the industries;
(3) past versus current practices within each industry; and (4) the
overall need for financial responsibility for each industry. EPA is
broadly addressing these categories of comments in this action.
A. Other Laws
Many commenters cited existing laws that their industries are
already complying with to ensure that there are no occurrences of non-
permitted releases of hazardous substances. In particular, commenters
pointed out that there are already financial responsibility
requirements under the Resource Conservation and Recovery Act (RCRA).
While EPA appreciates the concern, as was discussed above, CERCLA
section 108(b) broadly directs the development of financial
responsibility requirements consistent with the degree and duration of
risk associated with the production, transportation, treatment, storage
or disposal of hazardous substances. These requirements, which are
designed to help ensure that CERCLA liabilities are paid if CERCLA
claims are made, are distinct from financial responsibility
requirements for closure imposed under other statutes, such as RCRA,
which are more narrowly designed to assure
[[Page 3515]]
compliance with those closure requirements.
At the same time, the Agency recognizes that compliance with
regulatory requirements may reduce the risks at a facility. Thus, as
EPA moves forward with developing proposed rules for additional classes
of facilities, EPA expects to consider site factors that reduce risks,
including those that result from compliance with other regulatory
requirements. EPA has taken a similar approach in the CERCLA section
108(b) proposed rule applicable to hardrock mining, which is published
elsewhere in this Federal Register.
B. Data Used in Developing the ANPRM
In the ANPRM, EPA used data from the Toxics Release Inventory
(TRI), and RCRA's national Biennial Report (BR), among other sources,
to identify and prioritize which classes of facilities present the
highest risk of injury due to exposure, and thus to justify the need to
prioritize financial responsibility requirements. The Chemical
Manufacturing and Petroleum and Coal Products Manufacturing industries
were the top two industries in a ranking of the quantity of hazardous
waste generated in 2007. They were responsible for approximately 64
percent of all the hazardous waste reported to the 2007 Biennial Report
cycle.\15\ The Electric Power Generation, Transmission and Distribution
industry was responsible for approximately 0.05 percent hazardous waste
generated. This is not unexpected considering that coal combustion
residuals (CCRs) are a ``Bevill exempt'' \16\ waste under RCRA, and
thus not subject to Biennial Reporting requirements. Therefore, the
amount of hazardous waste generated is not necessarily a valid
representation of the hazardous substances produced by that
industry.\17\
---------------------------------------------------------------------------
\15\ See 75 FR 820-821.
\16\ The ``Bevill'' exemption is codified at 40 CFR
261.3(a)(2)(i) and (g)(4) and 261.4(b)(7).
\17\ This notice does not revisit EPA's Regulatory Determination
for CCR disposal units. See Hazardous and Solid Waste Management
System; Disposal of Coal Combustion Residuals from Electric
Utilities, 80 FR 21302, April 17, 2015.
---------------------------------------------------------------------------
The Chemical Manufacturing and Electric Power Generation,
Transmission and Distribution industries ranked high on the list of on-
site releases reported to TRI in 2007, at number two and three
respectively. The Petroleum and Coal Products Manufacturing industry
ranked seventh on that list.\18\
---------------------------------------------------------------------------
\18\ See 75 FR 821.
---------------------------------------------------------------------------
Commenters expressed concern that releases reported to TRI are
permitted releases, subject to various environmental laws. Commenters
also expressed concern that BR data merely shows the quantity of
hazardous substances generated and managed, and not any mismanagement
of those substances. Neither of these, commenters felt, should be used
as indicators of potential risk of exposure due to a release. EPA
recognizes the limitations on the extent of information that can be
gained from TRI and BR data, however, EPA believes these data do offer
insight into the characteristics and management of hazardous substances
for facilities in each industry, and that in conjunction with other
information, can be used as to evaluate the relative degree of risk
posed by a class of facilities and the priority need for financial
responsibility regulation under CERCLA section 108(b). As with the
hardrock mining rule, for each subsequent industry rule, EPA intends to
use other, more industry-specific and more current sources of data to
identify risk, and will propose financial responsibility requirements
based on the record EPA will develop for each rulemaking. Where the
Agency finds risk associated with management of hazardous substances
for a class of facilities, it is obligated to promulgate financial
responsibility requirements that are consistent with the degree and
duration of that risk. None of the commenters submitted data to
dissuade the Agency from the path of acquiring additional and more
comprehensive information for these industries. The Agency considers
quantity and toxicity of hazardous substances released to the
environment are good indicators of risk.
C. Past versus Current Industry Practices
Another source of data for the ANPRM was the Superfund National
Priorities List (NPL). The NPL is the list of national priorities among
the known releases or threatened releases of hazardous substances,
pollutants, or contaminants in the United States. The Agency assigned
three-digit NAICS \19\ codes that best identified the activities at
each site, using available data and best professional judgment. The
Chemical Manufacturing industry had a total of 181 sites on the NPL
from 1981-2009, the Petroleum and Coal Products Manufacturing industry
had 30 sites.\20\
---------------------------------------------------------------------------
\19\ North American Industry Classification System (NAICS)--the
standard used by Federal statistical agencies in classifying
business establishments for the purpose of collecting, analyzing,
and publishing statistical data related to the U.S. business
economy. NAICS codes are available at: https://www.census.gov.
\20\ See 75 FR 820.
---------------------------------------------------------------------------
Commenters whose industries had sites listed on the NPL pointed out
that many of those sites either did not remain in production, or had
practices that were improved based on environmental regulations issued
after the initial contamination. Commenters felt that legacy
contamination was not a valid indicator of current and future risk.
Also at issue was EPA's analysis of the NPL data. Some commenters felt
their industry was over-represented based on incorrect analysis of the
NPL data.
EPA believes, notwithstanding the commenters' negative assessment
of the Agency's analysis, that the NPL assessment is informative. Like
the TRI and BR data, NPL data was used to indicate which industries
pose potential risk that would warrant pursuing financial
responsibility regulation under CERCLA section 108(b). The Agency did
not receive evidence that risks do not continue at these sites. Where
risk continues, EPA believes it is appropriate to consider site factors
that reduce risks, such as current industry practices, in determining
the level of financial responsibility required. Consideration will also
be given to payment experience of the Fund, commercial insurers, court
settlements and judgments, and voluntary claims satisfaction.
D. Need for Financial Responsibility
A common theme in the comments, across all three industries, was
that there was no need for financial responsibility since facilities
within these industries are not in danger of going bankrupt. Many
commenters felt that rather than focus on a few examples of past
bankruptcies, EPA should consider the financial health of all the
companies in an industry as a group. EPA disagrees with commenters'
suggestion that need for financial responsibility should be informed by
the financial health of the overall industry. Financial responsibility
is imposed on classes within an industry, but is assessed at the
facility level, and not the industry as a whole. Economic solvency at
an industry-wide level is not a substitute for insurance against the
possibility of CERCLA liabilities remaining unsatisfied on a facility-
specific basis. Furthermore, CERCLA section 108(b) funds could be used
to address releases at currently-operating facilities. It should be
noted that, as mentioned in the preamble to the Financial
Responsibility Requirements under CERCLA Section 108(b) for Classes of
Facilities in the Hardrock Mining Industry proposed rule, the financial
responsibility formula
[[Page 3516]]
developed for the hardrock mining industry is intended for that
industry only, and is not intended for other industries. In future
rulemakings under CERCLA section 108(b) for the additional classes, EPA
will evaluate how to determine financial responsibility amounts for
each particular industry, and will propose an appropriate methodology.
E. Comments That Support CERCLA Section 108(b) Requirements for
Additional Classes
The Agency received two comments on the ANPRM that supported the
need for CERCLA section 108(b) regulations for the additional classes.
The first commenter provided an example of a facility that required
cleanup and where, in the commenter's opinion, had the facility been
subject to financial responsibility requirements, remediation would
have been achieved much earlier as financial resources would have been
available from the outset to carry out the remediation and there would
have been less incentive for the responsible party to delay cleanup.
The second commenter supporting the need for financial
responsibility requirements for the additional classes cited a 2005 GAO
report that the number of sites on the NPL continues to expand, with
EPA adding an average of 28 sites to the NPL each year from 1983 to
2003, and the 1995 expiration of CERCLA authority to collect taxes for
the Superfund as reasons for EPA to move forward with regulations ``to
ensure that facilities generating and handling hazardous substances
will remain financially able to clean-up improperly disposed substances
that could pose threats to public health and the environment.''
VII. Conclusion
Since the issuance of the 2010 ANPRM, EPA has not received evidence
that would demonstrate that regulation under CERCLA section108(b) is
not necessary for the Chemical Manufacturing industry (NAICS 325), the
Petroleum and Coal Products Manufacturing industry (NAICS 324), and the
Electric Power Generation, Transmission, and Distribution industry
(NAICS 2211).
EPA has not, at this time, identified sufficient evidence to
determine that initiating the rulemaking process is not warranted, nor
has EPA identified sufficient evidence to establish the necessary
CERCLA section 108(b) requirements, if any. To make a final decision
regarding the need for CERCLA section 108(b) requirements, the Agency
must gather additional information, and must further evaluate the
classes of facilities within the three industry sectors.
Therefore, in response to the January 29, 2016 Court Order, EPA is
announcing its intent to proceed with rulemakings according to the
schedule stipulated in the order. This announcement does not indicate
that EPA has determined that requirements are necessary for any or all
of the classes of facilities within the three industries, or that EPA
will propose such requirements--rather, this announcement indicates
that EPA intends to move forward with the regulatory process. That
process will include gathering and analyzing additional information to
support the Agency's ultimate decision. At that time, EPA will decide
whether proposal of requirements for any or all of the classes of
facilities within each industry sector is necessary and, if they are,
will propose appropriate requirements. If, however, after a careful
evaluation of the information for each industry sector, EPA were to
determine that requirements under CERCLA section 108(b) are not
necessary, EPA would propose not to impose requirements. In other
words, this document does not constitute a rulemaking. It merely
indicates the initiation of the rulemaking process rather than being
the culmination of such a process.
Dated: December 1, 2016.
Gina McCarthy,
Administrator.
[FR Doc. 2016-30040 Filed 1-10-17; 8:45 am]
BILLING CODE 6560-50-P