Financial Responsibly

Financial Responsibility Requirements

ALL PETROLEUM UST OWNERS/OPERATORS ARE RESPONSIBLE FOR COMPLYING WITH THE REGULATIONS!

Insurance Coverage RequirementsPer Occurrence: $1M per tank for UST owners/operators who handle more than

10,000 gallons of product per month (annual average)

$500K per tank for UST owners/operators handling smaller amounts

Aggregate Coverage: $1M aggregate coverage ( for owners of up to 100 tanks)

$2M aggregate coverage (for owners of 101 or more tanks)

Financial ResponsibilityAssurance Mechanisms Available

Insurance Coverage Guarantee Surety Bond Letter of Credit Trust Fund

Financial Responsibility

UST owner must be able to pay for cleanup or third-party liability compensation resulting from a UST leak

The financial responsibility mechanism protects the facility owner by ensuring that the business will remain viable and will be able to perform any necessary cleanup

Owner must maintain a financial responsibility mechanism until the tank is permanently closed and any contamination cleaned up to satisfaction

Submit proof of financial responsibility to the Department of Licensing with any UST addendum to the Master Business License or at time of renewal to avoid a hold placed on your tank endorsement. Make sure your aware of the different dated on the business license and insurance, this could cause a problem during renewal.

Financial Responsibility

USTs for individual home use are not subject to financial responsibility requirements, but hospitals and apartment buildings, among others, are subject

A UST owner/operator without proof of financial responsibility will be given a short grace period to correct the situation, then may be fined up to $5,000 per tank per day

ECY Notifications

Financial assurance changes with in 30 days, suspected/confirmed release, change in ownership

If UST owner and operator are not the same person, only one person must demonstrate financial responsibility. However, BOTH PARTIES ARE RESPONSIBLE IN THE EVENT OF NON-COMPLIANCE

Environmentally Sensitive Areas

Agencies in these areas may have special requirements and/or charge extra fees:

Areas sensitive to protecting ground or surface water Areas close to wetlands Areas located within a 100-year flood plain Areas especially sensitive to leaking tanks

Registration Modifications

Change in property ownership, tank ownership, or designated permittee must be submitted within 30 days of change

Submit modification application with copy of financial assurance mechanism to DOR