82_FR_3519 82 FR 3512 - Financial Responsibility Requirements for Facilities in the Chemical, Petroleum and Electric Power Industries

82 FR 3512 - Financial Responsibility Requirements for Facilities in the Chemical, Petroleum and Electric Power Industries

ENVIRONMENTAL PROTECTION AGENCY

Federal Register Volume 82, Issue 7 (January 11, 2017)

Page Range3512-3516
FR Document2016-30040

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.

Federal Register, Volume 82 Issue 7 (Wednesday, January 11, 2017)
[Federal Register Volume 82, Number 7 (Wednesday, January 11, 2017)]
[Proposed Rules]
[Pages 3512-3516]
From the Federal Register Online  [www.thefederalregister.org]
[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.

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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) [email protected].

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 http://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 http://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 (http://www.thefederalregister.org/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.
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    \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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    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\
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    \2\ 42 U.S.C. 9608(b)(2).
    \3\ 42 U.S.C. 9608(b)(4).
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    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\
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    \4\ 42 U.S.C. 9608(b)(3).
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    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\
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    \5\ 42 U.S.C. 9608(c)(2).
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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.
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    \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.
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    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\
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    \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.
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    \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''.)
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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\
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    \10\ See 74 FR 37218.
    \11\ See 74 FR 37219.
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    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).
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    \12\ See 75 FR 816.
    \13\ See 75 FR 819.
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    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\
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    \14\ See 75 FR 830-831.
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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

[[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\
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    \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.
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    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\
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    \18\ See 75 FR 821.
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    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\
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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: http://www.census.gov.
    \20\ See 75 FR 820.
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    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



                                                   3512                           Federal Register / Vol. 82, No. 7 / Wednesday, January 11, 2017 / Proposed Rules




                                                   BILLING CODE 6560–50–C                                                                                                               Specifically, the statutory language
                                                                                                                              STATE ADJUSTMENT FACTORS—
                                                   Appendix II                                                                         Continued                                        addresses the promulgation of
                                                                                                                                                                                        regulations that require classes of
                                                       REGION-SPECIFIC OVERHEAD AND                                                                                         State       facilities to establish and maintain
                                                         OVERSIGHT PERCENTAGES                                                            State                          adjustment     evidence of financial responsibility
                                                                                                                                                                           factor       consistent with the degree and duration
                                                                                                     Total OC           NJ .........................................             1.20
                                                                                                                                                                                        of risk associated with the production,
                                                                    Region                          percentage          NM ........................................              0.92   transportation, treatment, storage, or
                                                                                                                        NV .........................................             1.08   disposal of hazardous substances. On
                                                   1 ............................................            48.64                                                                      January 6, 2010, the Environmental
                                                                                                                        NY .........................................             1.17
                                                   2 ............................................            47.60
                                                   3 ............................................            51.42
                                                                                                                        OH ........................................              1.02   Protection Agency (EPA) published an
                                                                                                                        OK .........................................             0.88   Advance Notice of Proposed
                                                   4 ............................................            49.57
                                                                                                                        OR ........................................              1.06   Rulemaking (ANPRM) that identified
                                                   5 ............................................            50.13
                                                                                                                        PA .........................................             1.09   additional classes of facilities within
                                                   6 ............................................            48.66
                                                                                                                        RI ..........................................            1.16
                                                   7 ............................................            47.63
                                                                                                                        SC .........................................             0.87
                                                                                                                                                                                        three industry sectors that may warrant
                                                   8 ............................................            48.19                                                                      the development of financial
                                                                                                                        SD .........................................             0.87
                                                   9 ............................................            48.73                                                                      responsibility requirements under
                                                                                                                        TN .........................................             0.91
                                                   10 ..........................................             48.14                                                                      CERCLA section 108(b)—the Chemical
                                                                                                                        TX .........................................             0.89
                                                                                                                        UT .........................................             0.95   Manufacturing industry (NAICS 325),
                                                   Appendix III                                                         VA .........................................             0.94   the Petroleum and Coal Products
                                                                                                                        VT .........................................             1.01   Manufacturing industry (NAICS 324),
                                                           STATE ADJUSTMENT FACTORS                                     WA ........................................              1.05   and the Electric Power Generation,
                                                                                                                        WI .........................................             1.06   Transmission, and Distribution industry
                                                                                                        State           WV ........................................              1.04
                                                                     State                           adjustment         WY ........................................              0.92
                                                                                                                                                                                        (NAICS 2211). This document formally
                                                                                                       factor                                                                           announces EPA’s intention to publish a
                                                                                                                        [FR Doc. 2016–30047 Filed 1–10–17; 8:45 am]                     notice for proposed rulemaking for
                                                   AK .........................................                  1.19   BILLING CODE 6560–50–P                                          classes of facilities within the three
                                                   AL .........................................                  0.91                                                                   industries identified in the 2010
                                                   AR .........................................                  0.87                                                                   ANPRM, as well as gives an overview of
                                                   AZ .........................................                  0.96
                                                                                                                        ENVIRONMENTAL PROTECTION                                        some of the comments received on the
                                                   CA .........................................                  1.17
                                                   CO ........................................                   0.97   AGENCY                                                          ANPRM and initial responses to those
                                                   CT .........................................                  1.18                                                                   comments. The announcement in this
                                                   DE .........................................                  1.10   40 CFR Part 320                                                 action is not a determination that
                                                   FL ..........................................                 0.92   [EPA–HQ–OLEM–2016–0212; FRL–9956–                               requirements are necessary for any or all
                                                   GA .........................................                  0.89   56–OLEM]                                                        of the classes of facilities within the
                                                   HI ..........................................                 1.19                                                                   three industries, or that EPA will
                                                   IA ..........................................                 0.98   RIN 2050–AG56                                                   propose such requirements—rather, it is
                                                   ID ..........................................                 0.97
                                                                                                                                                                                        an announcement that EPA intends to
                                                   IL ...........................................                1.15   Financial Responsibility Requirements
                                                   IN ..........................................                 1.00                                                                   move forward with the regulatory
                                                                                                                        for Facilities in the Chemical,
                                                   KS .........................................                  0.94                                                                   process. After that process, EPA will
                                                                                                                        Petroleum and Electric Power
                                                   KY .........................................                  0.99                                                                   determine whether proposal of
                                                                                                                        Industries
                                                   LA .........................................                  0.89                                                                   requirements for any or all of the classes
                                                   MA ........................................                   1.20   AGENCY: Environmental Protection                                of facilities within the three industries
                                                   MD ........................................                   0.99   Agency (EPA).                                                   is necessary.
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                                                   ME ........................................                   1.03
                                                                                                                        ACTION: Notice of intent to proceed with                        DATES:   January 11, 2017.
                                                   MI ..........................................                 1.04
                                                   MN ........................................                   1.12   rulemakings.
                                                                                                                                                                                        FOR FURTHER INFORMATION CONTACT:   For
                                                   MO ........................................                   1.04   SUMMARY:   Section 108(b) of the                                more information on this action, contact
                                                   MS ........................................                   0.89
                                                   MT .........................................                  0.97
                                                                                                                        Comprehensive Environmental                                     Peggy Vyas, U.S. Environmental
                                                   NC .........................................                  0.87   Response, Compensation, and Liability                           Protection Agency, Office of Resource
                                                   ND .........................................                  0.92   Act (CERCLA) establishes certain                                Conservation and Recovery, Mail Code
                                                   NE .........................................                  0.97   regulatory authorities concerning                               5303P, 1200 Pennsylvania Ave. NW.,
                                                   NH .........................................                  1.06   financial responsibility requirements.                          Washington, DC 20460; telephone (703)
                                                                                                                                                                                                                                     EP11JA17.005</GPH>




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                                                                         Federal Register / Vol. 82, No. 7 / Wednesday, January 11, 2017 / Proposed Rules                                                    3513

                                                   308–5477 or (email) vyas.peggy@                         insurers, courts settlements and                       in the ANPRM, that is, Chemical
                                                   epa.gov.                                                judgments, and voluntary claims                        Manufacturing, Petroleum and Coal
                                                   SUPPLEMENTARY INFORMATION:                              satisfaction.                                          Products Manufacturing, and Electric
                                                                                                              CERCLA section 108(b) also discusses                Power Generation, Transmission, and
                                                   I. General Information                                  particular instruments for EPA to                      Distribution.6 Following oral arguments,
                                                   A. How can I get copies of this                         consider in its regulations. Specifically,             EPA and the petitioners submitted Joint
                                                   document and other related                              paragraph (b)(2) states that financial                 Motion for an Order on Consent, filed
                                                   information?                                            responsibility may be established by any               on August 31, 2015, which included a
                                                                                                           one, or any combination, of the                        schedule for further administrative
                                                      1. Docket. EPA has established a                     following: Insurance, guarantee, surety                proceedings under CERCLA section
                                                   docket for this action under Docket ID                  bond, letter of credit, or qualification as            108(b). The court order granting the
                                                   No. EPA–HQ–OLEM–2016–0212. The                          a self-insurer. Paragraph (b)(2) further               motion was issued on January 29, 2016.
                                                   2010 Advance Notice of Proposed                         authorizes EPA to specify policy or                    A copy of the order can be found in the
                                                   Rulemaking and its related documents,                   other contractual terms, conditions, or                docket for this action.
                                                   including background documents and                      defenses which are necessary, or which                    In addition to requiring EPA to
                                                   public comments, are under Docket ID                    are unacceptable in establishing                       publish a proposed rule on hardrock
                                                   No. EPA–HQ–SFUND–2009–0834. All                         evidence of financial responsibility.                  mining financial requirements by
                                                   documents in the docket are listed in                   Paragraph (b)(2) also requires EPA to                  December 1, 2016, the January 2016
                                                   the http://www.regulations.gov index.                   cooperate with and seek the advice of                  Order requires EPA to ‘‘sign for
                                                   Although listed in the index, some                      the commercial insurance industry to                   publication in the Federal Register a
                                                   information is not publicly available,                  the maximum extent practicable when                    determination whether EPA will issue a
                                                   e.g., CBI or other information whose
                                                                                                           developing financial responsibility                    action of proposed rulemaking on
                                                   disclosure is restricted by statute.
                                                                                                           requirements.2 Paragraph (b)(4) provides               financial responsibility requirements
                                                   Certain other material, such as
                                                                                                           direction on how the CERCLA section                    under CERCLA § 108(b) in the (a)
                                                   copyrighted material, will be publicly
                                                                                                           108(b) instruments are to address                      chemical manufacturing industry; (b)
                                                   available only in hard copy. Publicly
                                                                                                           multiple owners and operators at a                     petroleum and coal products
                                                   available docket materials are available
                                                                                                           single facility.3                                      manufacturing industry; and (c) electric
                                                   either electronically in http://                           CERCLA section 108(b)(3) requires                   power generation, transmission, and
                                                   www.regulations.gov or in hard copy at
                                                                                                           that regulations promulgated under                     distribution industry by December 1,
                                                   EPA/DC, EPA West, Room 3334, 1301
                                                                                                           CERCLA section 108(b) incrementally                    2016.’’ The publication of this action
                                                   Constitution Ave. NW., Washington, DC
                                                                                                           impose financial responsibility                        satisfies that component of the January
                                                   20460. This Docket Facility is open from
                                                                                                           requirements as quickly as can                         2016 order. The order includes the
                                                   8:30 a.m. to 4:30 p.m., Monday through
                                                                                                           reasonably be achieved, but in no event                following schedule for these
                                                   Friday, excluding legal holidays. The
                                                                                                           more than four years after the date of                 rulemakings:
                                                   Docket telephone number is (202) 566–
                                                                                                           promulgation.4                                           ‘‘EPA will sign for publication in the
                                                   0276. The Public Reading Room is open                      CERCLA section 108(c) also includes
                                                   from 8:30 a.m. to 4:30 p.m., Monday                                                                            Federal Register a notice of proposed
                                                                                                           a ‘‘direct action’’ provision under which              rulemaking in the first additional industry by
                                                   through Friday, excluding legal
                                                                                                           any claim authorized by CERCLA                         July 2, 2019, and sign for publication in the
                                                   holidays. The telephone number for the
                                                                                                           section 107 or 111 may be asserted                     Federal Register a notice of its final action
                                                   Public Reading Room is (202) 566–1744.                                                                         by December 2, 2020.
                                                      2. Electronic Access. You may access                 directly against any guarantor providing
                                                                                                           evidence of financial responsibility                     EPA will sign for publication in the
                                                   this Federal Register document                                                                                 Federal Register a notice of proposed
                                                   electronically from the Government                      under CERCLA section 108(b) if the
                                                                                                                                                                  rulemaking in the second additional industry
                                                   Printing Office under the ‘‘Federal                     person is liable under CERCLA section
                                                                                                                                                                  by December 4, 2019, and sign for
                                                   Register’’ listings at FDSys (http://                   107 and (1) is in bankruptcy,                          publication in the Federal Register a notice
                                                   www.gpo.gov/fdsys/browse/                               reorganization, or arrangement pursuant                of its final action by December 1, 2021.
                                                   collection.action?collectionCode=FR).                   to the Federal Bankruptcy Code, or (2)                   EPA will sign for publication in the
                                                                                                           is likely to be solvent at the time of                 Federal Register a notice of proposed
                                                   II. Overview of CERCLA Section 108(b)                   judgment, but over whom jurisdiction in                rulemaking in the third additional industry
                                                      CERCLA section 108(b) generally                      the Federal courts cannot be obtained                  by December 1, 2022, and sign for
                                                   requires that EPA develop requirements                  with reasonable diligence.5                            publication in the Federal Register a notice
                                                                                                                                                                  of its final action by December 4, 2024.’’ 7
                                                   that classes of facilities establish and                III. In re Idaho Conservation League
                                                   maintain evidence of financial                                                                                   While the January 2016 Order
                                                   responsibility ‘‘consistent with the                       In August 2014, the groups Idaho                    identifies the other industries as being
                                                   degree and duration of risk associated                  Conservation League, Earthworks, Sierra                the Chemical Manufacturing industry,
                                                   with the production, transportation,                    Club, Amigos Bravos, Great Basin                       the Petroleum and Coal Products
                                                   treatment, storage, or disposal of                      Resource Watch, and Communities for a                  Manufacturing industry, and the
                                                   hazardous substances.’’ 1 CERCLA                        Better Environment filed a lawsuit in                  Electric Power Generation,
                                                   section 108(b)(2) directs that the level of             the U.S. Court of Appeals for the District             Transmission and Distribution industry,
                                                   financial responsibility shall be initially             of Columbia Circuit, for a writ of                     and sets a rulemaking schedule, it does
                                                   established, and, when necessary,                       mandamus requiring issuance of                         not specify which industry will be the
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                                                   adjusted to protect against the level of                CERCLA section 108(b) financial
                                                   risk that EPA in its discretion believes                responsibility rules for the hardrock                    6 See In re: Idaho Conservation League, No. 14–

                                                   is appropriate based on the payment                     mining industry, and for the three                     1149. For more information on the lawsuit please
                                                                                                           additional industries identified by EPA                refer to the preamble of the ‘‘Financial
                                                   experience of the Fund, commercial                                                                             Responsibility Requirements for the Hardrock
                                                                                                                                                                  Mining Industry’’ proposed rule, published
                                                                                                             2 42 U.S.C. 9608(b)(2).
                                                     1 Executive Order 12580 delegates the                                                                        elsewhere in this Federal Register.
                                                                                                             3 42 U.S.C. 9608(b)(4).
                                                   responsibility to develop these requirements to the                                                              7 In Re: Idaho Conservation League, No. 14–1149
                                                                                                             4 42 U.S.C. 9608(b)(3).
                                                   Administrator of EPA for non-transportation related                                                            (D.C. Cir. Jan. 29, 2016) (order granting joint
                                                   facilities. 52 FR 2923, 3 CFR, 1987 Comp., p. 193.        5 42 U.S.C. 9608(c)(2).                              motion).



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                                                   3514                   Federal Register / Vol. 82, No. 7 / Wednesday, January 11, 2017 / Proposed Rules

                                                   first, second or third. EPA will decide                 that can result if releases are not                      EPA received over sixty comments on
                                                   that at a later date. Nor does the January              prevented or quickly controlled (e.g. as               the ANPRM, which can be found in the
                                                   2016 Order mandate any specific                         a result of economic constraints).                     docket for that action (see Docket ID No.
                                                   outcome of the rulemakings.8 The Joint                                                                         EPA–HQ–SFUND–2009–0834). Several
                                                                                                           V. Additional Classes Advance Notice
                                                   Motion specified that it did not alter the                                                                     comments offered valuable insight that
                                                                                                           of Proposed Rulemaking
                                                   Agency’s discretion provided by                                                                                will help to inform the Agency’s
                                                   CERCLA and administrative law.9 In                         On January 6, 2010, EPA published an                approach to the additional classes
                                                   other words, the substance of any                       ANPRM,12 in which the Agency                           ANPRM. While the Agency is not
                                                   requirements arising out of CERCLA                      identified three additional industrial                 obligated to respond to comments
                                                   section 108(b) for the additional classes               sectors for the development, as                        received on the ANPRM, EPA has
                                                   are not established in this action—any                  necessary, of a proposed CERCLA                        provided general responses to those
                                                   such requirements, if they are imposed,                 section 108(b) regulation. To develop                  comments that relate specifically to this
                                                   will not be established until EPA issues                the list of additional classes for the 2010            announcement that EPA will continue
                                                   any final rules for these classes.                      ANPRM, EPA used information from the                   the regulatory process under CERCLA
                                                   Consequently, this document is not final                National Priorities List (NPL), as well as             section 108(b).
                                                   agency action.                                          analyzed data from the Biennial Report                 VI. Comments Received on the 2010
                                                   IV. Factors Identified by EPA for                       (BR) and Toxics Release Inventory (TRI).               ANPRM
                                                   Consideration in the Decision To                        As was discussed in the document,
                                                   Develop a Proposed Rule for an                          these sources were chosen because                        Representatives for the electric utility
                                                   Additional Industry Sector                              ‘‘they are well-established, reliable                  industry submitted roughly one-third of
                                                                                                           sources of information on facilities                   the comments on the 2010 ANPRM.
                                                      On July 28, 2009, EPA published a                                                                           Representatives for the chemical
                                                                                                           associated with hazardous substances,
                                                   Priority Notice in which we identified                                                                         manufacturing industry, the petroleum
                                                                                                           and were readily available to the
                                                   classes of facilities in the hardrock                                                                          industry, the waste management
                                                                                                           Agency.’’ 13 In addition to these sources,
                                                   mining industry for development of                                                                             industry, the hardrock mining industry,
                                                                                                           EPA further evaluated industry sectors
                                                   CERCLA section 108(b) financial                                                                                as well as other interested parties also
                                                                                                           by gathering additional information
                                                   responsibility requirements. In that                                                                           submitted comments.
                                                                                                           from natural resource damage cases. The
                                                   action, EPA also announced its
                                                                                                           result of this analysis is explained in the              The comments on the 2010 ANPRM,
                                                   intention to consider additional
                                                                                                           2010 ANPRM in detail, with the                         which specifically addressed the need
                                                   industry sectors. EPA identified the
                                                                                                           conclusion that three industries—the                   for CERCLA section 108(b) regulation
                                                   following factors as among those it may
                                                                                                           Chemical Manufacturing industry                        for the additional classes, can be
                                                   consider in the decision whether to
                                                                                                           (NAICS 325), the Petroleum and Coal                    divided into four categories: (1) Other
                                                   propose requirements for an industry
                                                                                                           Products Manufacturing industry                        laws that the industry complies with
                                                   sector: (1) The amounts of hazardous
                                                                                                           (NAICS 324), and the Electric Power                    that obviate the need for CERCLA
                                                   substances released to the environment;
                                                                                                           Generation, Transmission, and                          section 108(b) regulation; (2) the sources
                                                   (2) the toxicity of these substances; (3)
                                                                                                           Distribution industry (NAICS 2211)—                    of data EPA used to select the
                                                   the existence and proximity of potential
                                                                                                           should be considered for financial                     industries; (3) past versus current
                                                   receptors; (4) contamination historically
                                                                                                           responsibility requirements under                      practices within each industry; and (4)
                                                   found from facilities; (5) whether the
                                                                                                           CERCLA section 108(b).                                 the overall need for financial
                                                   causes of this contamination still exist;
                                                                                                              EPA specifically requested public                   responsibility for each industry. EPA is
                                                   (6) experiences from Federal cleanup
                                                                                                           comment in the 2010 ANPRM on                           broadly addressing these categories of
                                                   programs; (7) projected costs of Federal
                                                                                                           whether to propose a regulation under                  comments in this action.
                                                   clean-up programs; and (8) corporate
                                                   structures and bankruptcy potential.10                  CERCLA section 108(b) for any class or                 A. Other Laws
                                                   EPA also indicated that the Agency                      classes, or the industry as a whole,
                                                   intends to consider whether financial                   including information demonstrating                       Many commenters cited existing laws
                                                   responsibility requirements under                       why such financial responsibility                      that their industries are already
                                                   CERCLA section 108(b) will effectively                  requirements would not be appropriate                  complying with to ensure that there are
                                                   reduce these risks.11                                   for those particular classes. In addition,             no occurrences of non-permitted
                                                      Some of the factors reflect the basic                the Agency requested information                       releases of hazardous substances. In
                                                   elements of risk evaluation (i.e., the                  related to the industry categories                     particular, commenters pointed out that
                                                   probability of release, exposure, and                   discussed in the action, including data                there are already financial responsibility
                                                   toxicity); others more closely relate to                on facility operations, information on                 requirements under the Resource
                                                   the severity of consequences that result                past and expected future environmental                 Conservation and Recovery Act (RCRA).
                                                   when risks are realized, such as the                    responses, use of financial                            While EPA appreciates the concern, as
                                                   releases’ duration and the exposures                    responsibility mechanisms by the                       was discussed above, CERCLA section
                                                                                                           industry categories, existing financial                108(b) broadly directs the development
                                                     8 In granting the Joint Motion, the court expressly   responsibility requirements, and other                 of financial responsibility requirements
                                                   stated that its Order ‘‘merely requires that EPA        information the Agency might consider                  consistent with the degree and duration
                                                   conduct a rulemaking and then decide whether to         in setting financial responsibility levels.            of risk associated with the production,
                                                   promulgate a new rule—the content of which is not
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                                                                                                           Finally, EPA requested information                     transportation, treatment, storage or
                                                   in any way dictated by the [Order].’’ In re Idaho
                                                   Conservation League, at 17 (quoting Defenders of        from the insurance and the financial                   disposal of hazardous substances. These
                                                   Wildlife v. Perciasepe, 714 F, 3d 1317, 1324 (D.C.      sectors related to instrument                          requirements, which are designed to
                                                   Cir. 2013).                                             implementation and availability, and                   help ensure that CERCLA liabilities are
                                                     9 See Joint Motion at 6 (‘‘Nothing in this Joint
                                                                                                           potential instrument conditions.14                     paid if CERCLA claims are made, are
                                                   Motion should be construed to limit or modify the
                                                   discretion accorded EPA by CECLA or the general
                                                                                                                                                                  distinct from financial responsibility
                                                   principles of administrative law’’.)                      12 See 75 FR 816.                                    requirements for closure imposed under
                                                     10 See 74 FR 37218.                                     13 See 75 FR 819.                                    other statutes, such as RCRA, which are
                                                     11 See 74 FR 37219.                                     14 See 75 FR 830–831.                                more narrowly designed to assure


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                                                                         Federal Register / Vol. 82, No. 7 / Wednesday, January 11, 2017 / Proposed Rules                                             3515

                                                   compliance with those closure                           environmental laws. Commenters also                       Commenters whose industries had
                                                   requirements.                                           expressed concern that BR data merely                  sites listed on the NPL pointed out that
                                                      At the same time, the Agency                         shows the quantity of hazardous                        many of those sites either did not
                                                   recognizes that compliance with                         substances generated and managed, and                  remain in production, or had practices
                                                   regulatory requirements may reduce the                  not any mismanagement of those                         that were improved based on
                                                   risks at a facility. Thus, as EPA moves                 substances. Neither of these,                          environmental regulations issued after
                                                   forward with developing proposed rules                  commenters felt, should be used as                     the initial contamination. Commenters
                                                   for additional classes of facilities, EPA               indicators of potential risk of exposure               felt that legacy contamination was not a
                                                   expects to consider site factors that                   due to a release. EPA recognizes the                   valid indicator of current and future
                                                   reduce risks, including those that result               limitations on the extent of information               risk. Also at issue was EPA’s analysis of
                                                   from compliance with other regulatory                   that can be gained from TRI and BR                     the NPL data. Some commenters felt
                                                   requirements. EPA has taken a similar                   data, however, EPA believes these data                 their industry was over-represented
                                                   approach in the CERCLA section 108(b)                   do offer insight into the characteristics              based on incorrect analysis of the NPL
                                                   proposed rule applicable to hardrock                    and management of hazardous                            data.
                                                   mining, which is published elsewhere                    substances for facilities in each                         EPA believes, notwithstanding the
                                                   in this Federal Register.                               industry, and that in conjunction with                 commenters’ negative assessment of the
                                                                                                           other information, can be used as to                   Agency’s analysis, that the NPL
                                                   B. Data Used in Developing the ANPRM                                                                           assessment is informative. Like the TRI
                                                                                                           evaluate the relative degree of risk
                                                      In the ANPRM, EPA used data from                     posed by a class of facilities and the                 and BR data, NPL data was used to
                                                   the Toxics Release Inventory (TRI), and                 priority need for financial responsibility             indicate which industries pose potential
                                                   RCRA’s national Biennial Report (BR),                   regulation under CERCLA section                        risk that would warrant pursuing
                                                   among other sources, to identify and                    108(b). As with the hardrock mining                    financial responsibility regulation under
                                                   prioritize which classes of facilities                  rule, for each subsequent industry rule,               CERCLA section 108(b). The Agency did
                                                   present the highest risk of injury due to               EPA intends to use other, more                         not receive evidence that risks do not
                                                   exposure, and thus to justify the need to               industry-specific and more current                     continue at these sites. Where risk
                                                   prioritize financial responsibility                     sources of data to identify risk, and will             continues, EPA believes it is appropriate
                                                   requirements. The Chemical                              propose financial responsibility                       to consider site factors that reduce risks,
                                                   Manufacturing and Petroleum and Coal                    requirements based on the record EPA                   such as current industry practices, in
                                                   Products Manufacturing industries were                  will develop for each rulemaking.                      determining the level of financial
                                                   the top two industries in a ranking of                                                                         responsibility required. Consideration
                                                                                                           Where the Agency finds risk associated
                                                   the quantity of hazardous waste                                                                                will also be given to payment
                                                                                                           with management of hazardous
                                                   generated in 2007. They were                                                                                   experience of the Fund, commercial
                                                                                                           substances for a class of facilities, it is
                                                   responsible for approximately 64                                                                               insurers, court settlements and
                                                                                                           obligated to promulgate financial
                                                   percent of all the hazardous waste                                                                             judgments, and voluntary claims
                                                                                                           responsibility requirements that are
                                                   reported to the 2007 Biennial Report                                                                           satisfaction.
                                                                                                           consistent with the degree and duration
                                                   cycle.15 The Electric Power Generation,                 of that risk. None of the commenters                   D. Need for Financial Responsibility
                                                   Transmission and Distribution industry                  submitted data to dissuade the Agency
                                                   was responsible for approximately 0.05                                                                            A common theme in the comments,
                                                                                                           from the path of acquiring additional                  across all three industries, was that
                                                   percent hazardous waste generated. This                 and more comprehensive information
                                                   is not unexpected considering that coal                                                                        there was no need for financial
                                                                                                           for these industries. The Agency                       responsibility since facilities within
                                                   combustion residuals (CCRs) are a                       considers quantity and toxicity of
                                                   ‘‘Bevill exempt’’ 16 waste under RCRA,                                                                         these industries are not in danger of
                                                                                                           hazardous substances released to the                   going bankrupt. Many commenters felt
                                                   and thus not subject to Biennial                        environment are good indicators of risk.
                                                   Reporting requirements. Therefore, the                                                                         that rather than focus on a few examples
                                                   amount of hazardous waste generated is                  C. Past versus Current Industry Practices              of past bankruptcies, EPA should
                                                   not necessarily a valid representation of                                                                      consider the financial health of all the
                                                   the hazardous substances produced by                       Another source of data for the                      companies in an industry as a group.
                                                   that industry.17                                        ANPRM was the Superfund National                       EPA disagrees with commenters’
                                                      The Chemical Manufacturing and                       Priorities List (NPL). The NPL is the list             suggestion that need for financial
                                                   Electric Power Generation,                              of national priorities among the known                 responsibility should be informed by
                                                   Transmission and Distribution                           releases or threatened releases of                     the financial health of the overall
                                                   industries ranked high on the list of on-               hazardous substances, pollutants, or                   industry. Financial responsibility is
                                                   site releases reported to TRI in 2007, at               contaminants in the United States. The                 imposed on classes within an industry,
                                                   number two and three respectively. The                  Agency assigned three-digit NAICS 19                   but is assessed at the facility level, and
                                                   Petroleum and Coal Products                             codes that best identified the activities              not the industry as a whole. Economic
                                                   Manufacturing industry ranked seventh                   at each site, using available data and                 solvency at an industry-wide level is not
                                                   on that list.18                                         best professional judgment. The                        a substitute for insurance against the
                                                      Commenters expressed concern that                    Chemical Manufacturing industry had a                  possibility of CERCLA liabilities
                                                   releases reported to TRI are permitted                  total of 181 sites on the NPL from 1981–               remaining unsatisfied on a facility-
                                                   releases, subject to various                            2009, the Petroleum and Coal Products                  specific basis. Furthermore, CERCLA
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                                                                                                           Manufacturing industry had 30 sites.20                 section 108(b) funds could be used to
                                                     15 See 75 FR 820–821.                                                                                        address releases at currently-operating
                                                     16 The ‘‘Bevill’’ exemption is codified at 40 CFR       19 North American Industry Classification System     facilities. It should be noted that, as
                                                   261.3(a)(2)(i) and (g)(4) and 261.4(b)(7).              (NAICS)—the standard used by Federal statistical       mentioned in the preamble to the
                                                     17 This notice does not revisit EPA’s Regulatory      agencies in classifying business establishments for    Financial Responsibility Requirements
                                                   Determination for CCR disposal units. See               the purpose of collecting, analyzing, and publishing   under CERCLA Section 108(b) for
                                                   Hazardous and Solid Waste Management System;            statistical data related to the U.S. business
                                                   Disposal of Coal Combustion Residuals from              economy. NAICS codes are available at: http://         Classes of Facilities in the Hardrock
                                                   Electric Utilities, 80 FR 21302, April 17, 2015.        www.census.gov.                                        Mining Industry proposed rule, the
                                                     18 See 75 FR 821.                                       20 See 75 FR 820.                                    financial responsibility formula


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                                                   3516                  Federal Register / Vol. 82, No. 7 / Wednesday, January 11, 2017 / Proposed Rules

                                                   developed for the hardrock mining                       CERCLA authority to collect taxes for                  announcing its intent to proceed with
                                                   industry is intended for that industry                  the Superfund as reasons for EPA to                    rulemakings according to the schedule
                                                   only, and is not intended for other                     move forward with regulations ‘‘to                     stipulated in the order. This
                                                   industries. In future rulemakings under                 ensure that facilities generating and                  announcement does not indicate that
                                                   CERCLA section 108(b) for the                           handling hazardous substances will                     EPA has determined that requirements
                                                   additional classes, EPA will evaluate                   remain financially able to clean-up                    are necessary for any or all of the classes
                                                   how to determine financial                              improperly disposed substances that                    of facilities within the three industries,
                                                   responsibility amounts for each                         could pose threats to public health and                or that EPA will propose such
                                                   particular industry, and will propose an                the environment.’’                                     requirements—rather, this
                                                   appropriate methodology.                                                                                       announcement indicates that EPA
                                                                                                           VII. Conclusion
                                                                                                                                                                  intends to move forward with the
                                                   E. Comments That Support CERCLA                           Since the issuance of the 2010                       regulatory process. That process will
                                                   Section 108(b) Requirements for                         ANPRM, EPA has not received evidence                   include gathering and analyzing
                                                   Additional Classes                                      that would demonstrate that regulation                 additional information to support the
                                                      The Agency received two comments                     under CERCLA section108(b) is not                      Agency’s ultimate decision. At that
                                                   on the ANPRM that supported the need                    necessary for the Chemical                             time, EPA will decide whether proposal
                                                   for CERCLA section 108(b) regulations                   Manufacturing industry (NAICS 325),                    of requirements for any or all of the
                                                   for the additional classes. The first                   the Petroleum and Coal Products                        classes of facilities within each industry
                                                   commenter provided an example of a                      Manufacturing industry (NAICS 324),                    sector is necessary and, if they are, will
                                                   facility that required cleanup and                      and the Electric Power Generation,                     propose appropriate requirements. If,
                                                   where, in the commenter’s opinion, had                  Transmission, and Distribution industry                however, after a careful evaluation of
                                                   the facility been subject to financial                  (NAICS 2211).                                          the information for each industry sector,
                                                   responsibility requirements,                              EPA has not, at this time, identified                EPA were to determine that
                                                   remediation would have been achieved                    sufficient evidence to determine that                  requirements under CERCLA section
                                                   much earlier as financial resources                     initiating the rulemaking process is not               108(b) are not necessary, EPA would
                                                   would have been available from the                      warranted, nor has EPA identified                      propose not to impose requirements. In
                                                   outset to carry out the remediation and                 sufficient evidence to establish the                   other words, this document does not
                                                   there would have been less incentive for                necessary CERCLA section 108(b)                        constitute a rulemaking. It merely
                                                   the responsible party to delay cleanup.                 requirements, if any. To make a final                  indicates the initiation of the
                                                      The second commenter supporting                      decision regarding the need for CERCLA                 rulemaking process rather than being
                                                   the need for financial responsibility                   section 108(b) requirements, the Agency                the culmination of such a process.
                                                   requirements for the additional classes                 must gather additional information, and
                                                                                                                                                                    Dated: December 1, 2016.
                                                   cited a 2005 GAO report that the                        must further evaluate the classes of
                                                   number of sites on the NPL continues to                 facilities within the three industry                   Gina McCarthy,
                                                   expand, with EPA adding an average of                   sectors.                                               Administrator.
                                                   28 sites to the NPL each year from 1983                   Therefore, in response to the January                [FR Doc. 2016–30040 Filed 1–10–17; 8:45 am]
                                                   to 2003, and the 1995 expiration of                     29, 2016 Court Order, EPA is                           BILLING CODE 6560–50–P
sradovich on DSK3GMQ082PROD with PROPOSALS2




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Document Created: 2018-02-01 14:59:22
Document Modified: 2018-02-01 14:59:22
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionNotice of intent to proceed with rulemakings.
DatesJanuary 11, 2017.
ContactFor 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) 308-5477 or (email) [email protected]
FR Citation82 FR 3512 
RIN Number2050-AG56

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