EPA
United States
Environmental Protection
Agency
Office of
Underground Storage Tanks
Washington, D.C. 20460
EPA/530/UST- 88/005
December 1988
Dollars
Sens
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&EPA
UPDATE:
Underground Storage Tank
Financial Responsibility
TO „ _ „ „* ol
* manciai
Subtitle I of the Resource Conservation and Recovery Act requires
ownersand operators of underground storage tanks (USTs) to meet
Responsibility certain financial responsibility requirements for cleanup and third-
rrkmnliarifp Dates party damages resulting from leaks that may occur. EPAphasedin
Compliance Uates gj^jgj responsib&ty requirements for USTs over a two-year
period because of concerns about the unavailability of financial
assurance mechanisms to large portions of the regulated commu-
nity The phase-in was designed to achieve the maximum balance
between tne need to ensure financial capability for UST releases
I and the necessary time for owners and operators to obtain ass\ir-
I ance mechanisms.
I Petrol eum marketers owning 1 000 or more USTs and non-market-
ers with more than $20 million in tangible net worth were required
to comply in January 1989. Petroleum marketers owning between
100 and 999 USTs were required to comply in October 1989.
Extension of
Compliance
for Some UST
Owners
The Agency has decided to extend the compliance dates of the two
remaining groups: petroleum marketers owning between 13 and 99
USTs who were required to comply April 26, 1990, and all other
owners, including local governments, who were required to comply
October 26,1990.
The Agency will publish rules to extend these groups' compliance
dates for one year each. Those owners and operators who had to
comply by April 26, 1990, now have until April 26, 1991-Those
owners and operators who had to comply by October 26,1990, now
have to comply by October 26,1991.
The Agency believes that extending the financial responsibility
compliance dates will not adversely affect human health and the
environment, as the technical requirements for USTs will remain
in effect. These requirements include leak detection, tank upgrad-
ing and corrective action. '
MARCH 14,1990
United States Environmental Protection Agency, Office of Solid Waste & Emergency Response,
Office of Underground Storage Tanks
Washington, D.C. 20460 Repnduc** « R*cyd*d Papa-
Objectives of
EPA
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UPDATE: Underground Storage Tank Financial Responsibility
In extending the third and fourth compliance dates, the Agency desires to provide short-term
uOT owners and operators to whom methods of financial assurance are not available
mpliaiKe groups generally represent the small gas stations and convenience stores
needTaTeff^ctive financial responsibility mechanism. EPA continues to work
er wKh Confess and the states to enable small businesses to remain economically
wbih fat thfsame time, ensuring that mechanisms exist to pay for the cleanup of
leaking tanks.
Rationale for Extensions
Information collected by the Agency from the UST insurance **»*«*
and the states indicates that the owners and operators in toe third I
fourth
unity and the states indicates tat te owners an
compliance groups need more time to comply with the financial responsibility requirement
^ AgTn^Ss fearned that only about two percent of the third compliance group curTenUy
havelnsuSnce, and recent contractions in the insurance market have demonstrated that the
availability of insurance is likely to be further constrained.
Many
and operators cannot obtain insurance because they cannot meet Usurers'
n requirements. The Agency knows of eleven states that have "tabbed
financial assistance programs to help owners and operators upgrade or ^P1*?. *** ^8g
TheAgencyisencouragedbythese efforts and is developing matonals to help addifaonal states
AatmayS to establish financial assistance programs. Extending the compliance dates
^D^o^ more time for funds to become available to owners and o^rators who cannot
obtain insurance because of strict underwriting requirements.
The Agency beeves that states have taken the lead by sponsoring assurance ^ to help
owners to comply with the requirements and to clean up release*. While 34 sta tes have
erected legislation creating state assurance funds only 7 have received •»"•*»»""'
as compliance mechanisms. States need additional time to have their tods approved and to
^e them operational The Agency will use the additional time provided by the compliance
date extensions to work actively with the states to accomplish these tasks.
Finally, the Agency is in the process of developing several additional «^anisms, includmg
self-assurance ? mechanisms, that local governments can use to comply ™* *^"J£j!
responsibility reqtlirements. EPA hopes to finalize these mecfcmisms by ^October ^ 1990,
hoover, h^vernments may need additional time to ^^^^^^
mechanisms, because they operate on fixed budgetary cycles. Extending their compliance
date by one year will provide this needed relief.
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Background
Action Taken
today
Discussion
United Statas
Environmsntal Protection
Agancy
Solid Wast* and
Emargancy Response
Washington, DC 20460
OS-42
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Rationale
Contact
Worksheet Test - A financial worksheet has been developed that recognizes
the unique financial structure of government entities. Local governments can
use readily available financial data to complete the worksheet and calculate a
score. Governments with scores at or above a selected level will be allowed to
self-insure.
Governmental Guarantee - A local government will be allowed to obtain a
guarantee fiom its state or another local government with which it can demon-
strate a "substantial governmental relationship." In order to serve as guarantor,
a local government must qualify using the bond rating or worksheet test
Fund Balance Test - Local governments may self-administer an UST response
fund if appropriate safeguards are met
Because several of the mechanisms contained in the original financial respon-
sibility rule promulgated on October 26,1988 do not apply to local govern-
ments (e g., the corporate test for setf-insurance), the Agency has developed a
rule which addresses the unique financial characteristics of local governments,
and which allows financially capable entities the opportunity to self-insure.
For additional information, contact EPA's RCRA/Superfund Hotline, Monday
through Friday, 8:30 a.m. to 7:30 p.m. EST. The national toU-free number is
800 424-9346; for the hearing impaired, the number is TDD 800 553-767i.
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Snvtr onrwfllai P»<*dte<»
Background
Action Taken Today
Discussion
Environmental
Fact Sheet
EPA Concerned About Small
Businesses: Extends Compliance
Date For Underground StorageTank
Financial Responsibility
Subtitle 1 of the Resource Conservation and Recovery Act (RCRA)
require* owners and opera lor* of underground storage tank* (USTs) lo show
ih/oueh insurant coverage Of other acceptable financial rnechanisms thai fcey
can oav for cleanups and third-party damage* resultine from any leak* that may
occur In final regulation* published on October 26. 1588, the Environmental
Projection Agency (EPA) pnased in the financial responsibility requirements over
a 2 year perild because c/concems about the unavailability of financial assurance
mechanism* to large portion* of the regulated community. The phase-in (with it»
four distinct group* of tank owners) was designed to achieve a balance between
the need to ensure the financial capability to pay for UST releases and the tun*
necessary for owners and operators to obtain assurance mechanisms.
The phase-in set different compliance dates far the tour compliance
woups. Petroleum marketers ownfrg 1000 of more USTs and non-marketers with
more than $20 million in tangible net worth were required »^P *""
1989. Petroleum marketers owning between 100 and 999 USTs were
comply in October 1 9 W.
In 1990, EPA revised its regulation* by ulendins «« «°mpn*«ce« *»*
petroleum marketer* owning between 13 and 99 USTs from Apnl 26. 1990. to
April 26. S991. The compliance date for petroleum marketers owning between 1
arSl2 USTs at more than one facility or fewer than )00 USTs at a »*$•!*&*
and non-marketers with less than $20 million in net worth was extended from
October 26. 1990. to October 26. 1991.
On December 16. 1991. EPA finalized an extension of the Oclooer 26. 1991
compliance date to December >1, 1991.
The Agency is concerned about the ability of small businessesto have
obtained financial assurance by October 26. 1991. lh finalizing the December >1,
1993 extension, the Agency desires to provide short-term relief to UST owners a^d
operators to whom methods of financial assurance are not currently readOy
available. This compliance group includes the owners and operators of the
smallest gasoline and service station* who are generaHy most in need of an
effective financial responsibility mechanism. ETA is working with «£»
enable small businesses to remain economically wabJe while, at the same
ensuring that mechanism* exist to pay for the cleanup of leaking tank*.
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Rationale For
Proposing An
Extension
Contact
A*er*y believes that lhl» exfcnjlon erf the ««ip11*r
deveJop £5 submit toir funds for EPA review. EPA wffl us« the addlHonaS tfrr*
to actively work with to States to accomplish this.
This extension to December 31. 1993 win also place the final com
date for financial responsibility after to final complianeedatefor EPA , $ 1
detection rwuiremenal By regulatJon. afl tanks (regulated under jubbde lol
MXUmusi bt tested by Oecimber 23. 1993. Tanks tot m«t to leak dent**
requirements are more l&ely to meei Insurers' underwitinftcnteria.
Additionafly. an extension will provide tfme for EPA to explore how or
whether to adopt some variation to Option 2 (considered to to proposed rule).
Such an approach may give certain subgroups an additional extension of the
federal financial responsibility requirementa.
For additional Information, contact EPA's RCXA Hotline. Monday
throuih Friday, 1:30 am to 7:30 pm BST. The national toB-free number is 8pO»
SSSiiJorlfc ^^hearingimpaired. *e number to TOD «OO.J53.76?1 to Washing-
ton, O.C, tht number b 7C3-9W-9810.
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DOLLARS AND SENSE
A Summary of the Financial Responsibility Regulations
for Underground Storage Tank Systems
U.S. Environmental Protection Agency
Office of Underground Storage Tanks
December 1988
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This document was prepared for the U.S. Environmental Protection
Agency under contract #68-01-7344.
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TABLE OF CONTENTS
What Are These Regulations All About? 1
Who Is Affected By These Regulations? 3
How Do You Comply With The Financial Responsibility Requirements? 6
What Records Must You Keep Or File With The Implementing Agency? 9
Samples of Financial Responsibility Forms 10
Videos, Brochures, And Handbooks On USTs 13
Financial Test Options 15
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WHAT ARE THESE REGULATIONS ALL ABOUT?
The U.S. Envkonmental Protection Agency (EPA) has published final regulations concerning financial
responsibilities if you own or operate underground storage tank systems containing petroleum. (EPA
plans to develop similar regulations for tanks containing hazardous substances in the future.) Al-
though the full regulations appear in the Federal Register (October 26, 1988), this brochure provides a
brief summary and answers some important questions about your financial responsibilities.
Why Has EPA Written These
New Regulations?
Several million underground storage tank sys-
tems (USTs) in the United States contain petro-
leum. Tens of thousands of these USTs, in-
cluding their piping, are currently leaking.
Many more are expected to leak in the future.
Leaking USTs can cause fires or explosions
that threaten human safety. In addition, leak-
ing USTs can contaminate nearby ground wa-
ter. Because many of us depend on ground
water for the water we drink, Federal legisla-
tion seeks to safeguard our nation's ground-
water resources.
!
Congress responded in 1984 to the problem of
leaking USTs by adding Subtitle I to the Re-
source Conservation and Recovery Act. Sub-
title I requires EPA to develop regulations to
protect human health and the environment from
leaking USTs and specifically mandates re-
quirements for financial responsibility.
What Is "Financial
Responsibility" And Why Is It
Necessary For You?
Financial responsibility means that if you own
or operate an UST, you must ensure, either
through insurance or other means explained
below, that there will be money to help pay for
the costs of third-party liability and corrective
action caused by a leak from your tank. These
costs could include cleaning up leaked petro-
leum, correcting environmental damage, sup-
plying drinking water, and compensating
people for personal injury or property damage.
Financial responsibility also protects vou. If
your UST leaks, you may be faced with high
cleanup costs or with lawsuits brought by third
parties. Having financial responsibility means
that money will be available to meet these
costs.
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What Kinds Of Tanks Are
Covered By The Rule?
Financial responsibility must be shown for all
USTs containing petroleum products. USTs are
defined by law to be tank systems with at least
10 percent of their volume below the surface of
the ground. The term "tank systems" also
includes the piping connected to the tank.
What Kinds Of Tanks Are Not
Covered?
Some tank systems have been exempted or
deferred from the financial responsibility rule:
+ USTs containing hazardous wastes
already regulated under RCRA.
4> UST systems containing electrical
equipment and hydraulic lifts.
^ Wastewater treatment USTs that are
regulated by the Clean Water Act.
*• USTs with a capacity of less than 110
gallons, and tanks holding a minimal
concentration of regulated substances.
+ USTs that serve as emergency back up,
hold regulated substances for only a short
time, and are expeditiously emptied after
use.
4 Field-constructed tanks.
USTs containing radioactive materials
and USTs used as backup diesel tanks at
nuclear facilities.
Airport hydrant fueling systems.
Farm or residential tanks with capacity of
1,100 gallons or less storing motor fuel
which is not for resale.
Tanks for storing heating oil which is
used on-site.
Septic tanks.
Certain pipeline systems, such as those
regulated under the Natural Gas Pipeline
Safety Act of 1968.
Surface impoundments, pits, ponds, or
lagoons.
Storm or waste water collection systems.
Flow-through process tanks.
Liquid trap and other lines used in oil or
gas production.
Storage tanks on or above the floor of an
underground area, such as a basement or
tunnel.
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WHO IS AFFECTED BY THESE REGULATIONS?
Do You Have To Show
Financial Responsibility?
Either the owner or the operator of the tank
must show financial responsibility, but not both
if the owner and operator are different indi-
viduals or firms. It is the responsibility of the
owner and operator to decide which of them
will show financial responsibility.
Federal and State governments and their agen-
cies that own USTs are not required to docu-
ment financial responsibility. Local govern-
ments, however, must comply with the new
rule.
If you owned or operated a tank that was prop-
erly closed before the date for compliance that
applies to you, then the financial responsibility
requirements will not apply to your closed tank.
What Do You Have To Do?
The new financial responsibility regulations
require you to show that you have one of the
following:
*• at least $1 million to cover the costs of a
leak or spill from your underground
storage tank if you are a PETROLEUM
MARKETER (page 43334 of the Federal
Register of October 26, 1988); or
+ at least $500,000 if you are NOT A
MARKETER (page 43330 of the Federal
Register of October 26, 1988).
You may show that you have this coverage by
using insurance or any of the other methods of
coverage explained in this brochure. The
amount of financial responsibility that you
must show does not limit your total liability for
damages caused by a leak from your tank sys-
tem.
When Must You Comply With
The Financial Responsibility
Requirements?
The rule takes effect 90 days after its publica-
tion in the Federal Register (i.e., January 24,
1989). The date when you will have to show
financial responsibility, however, depends on
the compliance category that you fall into, as
shown below:
+ If you fall into one of the following
groups, you must show financial
responsibility on the same day that the
rule becomes effective on January 24,
1989: 1) petroleum marketing firms that
own 1,000 or more USTs; and 2) any
other UST owners that report a tangible
net worth of $20 million or more to the
SEC, Dun and Bradstreet, the Energy
Information Administration, or the Rural
Electrification Administration.
4 If you are a petroleum marketing firm that
owns 100 to 999 USTs, you must show
financial responsibility by October 26,
1989.
+ If you are a petroleum marketing firm that
owns 13 to 99 USTs at more than one site,
you must show financial responsibility by
April 26, 1990.
* If you fall into one of the following
groups, you must show financial
responsibility by October 26, 1990:
1) petroleum marketing firms owning 1 to
12 USTs or those having fewer than 100
USTs at one site; 2) all other UST owners
with a tangible net worth of less than $20
million; and 3) local governments.
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What Happens If You Install A
New UST Before Your
Scheduled Compliance Date?
The regulations require that you show financial
responsibility for a new UST when you notify
EPA that you have installed the tank. If you in-
stall a new UST before the date when you must
first show financial responsibility as described
above, then you must only show financial re-
sponsiblity for the new tank by that compliance
date. You may ignore the line on the new tank
notification form concerning financial responsi-
bility.
What Amount Of Money Are
You Responsible For?
The amount of money for which you must show
financial responsibility depends on the type of
business you operate, the amount of throughput
of your tank, and the number of tanks you
have:
*• If your tank is used in petroleum
production, refining or marketing (for
example, service stations and truck stops),
then you must be able to show that you
have $1 million of "per occurrence"
coverage. "Per occurrence" means the
amount of money that must be available
to pay the costs of one occurrence.
+ You must also have coverage for an
annual aggregate amount. The annual
aggregate amount is the total amount of
financial responsibility that you must
have to cover all leaks that might occur in
one year. The amount of aggregate
coverage that you must have depends on
the number of tanks that you own or
operate. The annual aggregate limits are:
~ 1 to 100 tanks, $1 million annual
aggregate; or
-- 101 or more tanks, $2 million annual
aggregate.
For example, if you own or operate three serv-
ice stations with a total of 18 tanks, then you
must have financial responsibility in the
amount of $1 million per occurrence and $1
million annual aggregate. If you own or oper-
ate 50 service stations with a total of 200 tanks,
you must have financial responsibility in the
amount of $1 million per occurrence and $2
million annual aggregate.
> If your tanks are located at a facility not
engaged in petroleum production, refining
or marketing, and your facility has a
monthly throughput of more than 10,000
gallons, then you must show that you
have $1 million of "per occurrence"
coverage. If the facility has a monthly
throughput of 10,000 gallons or less, then
you must show that you $500,000 of "per
occurrence" coverage and $1 million or
$2 million of annual aggregate coverage
depending on the number of tanks you
own or operate, as discussed above.
For example, if you are an automobile dealer
With four small tanks with a total monthly
throughput of 10,000 gallons, then you would
only need to have financial responsibility in the
amount of $500,000 per occurrence and $1
million annual aggregate. If you have 30 deal-
erships with a total of 110 tanks, you would
need to have financial responsibility in the
amount of $500,000 per occurrence, but you
would need $2 million annual aggregate.
The chart on page 5 displays these
financial responsibility requirements.
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IMPORTANT REQWREMENTS AND MINIMUM
DEADLINES FOR YOUR FINANCIAL
RESPONSIBILITY
WHAT YOU MUST HAVE
WHO
PETROLEUM
MARKETER
THROUGHPUT
OF FACILITY
PER
OCCURRENCE
COVERAGE
AGGREGATE
COVERAGE
PETROLEUM
NON-MARKETER
10,000
GALLONS
OR LESS
MONTHLY
$1 MILLION IF
YOU HAVE 100
OR FEWER
TANKS;
OR
$2 MILLION IF
YOU HAVE
MORE THAN
100 TANKS
A
JANUARY 1989
MARKETERS
—'.WITH 1000 —
—I- TANKS; -I—
NON-MARKETERS
WITH NET WORTH
OF $20 MILLION
WHEN YOU MUST HAVE IT
A
I OCTOBER 1989
I I I I
• MARKETERS -
• WITH 100-999 -
— j- TANKS 4—
A
I APRIL 1990
1 I I I
' MARKETERS ~
• WITH 13-99 -
—I. TANKS -j—
A
OCTOBER 1990
MARKETERS
" WITH 1-1 2
• -I TANKS-
NON-MARKETERS
WITH NET WORTH
OF LESS THAN
~ $20 MILLION!
- AND LOCALI
GOVERNMENTS
— 5 —
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HOW DO YOU COMPLY WITH THE FINANCIAL
RESPONSIBILITY REQUIREMENTS?
How Can You Show Financial
Responsibility For Your
USTs?
You can demonstrate financial responsibility
for your USTs in several ways:
+ Show that your firm can meet the costs of
potential releases. If your Firm has a
tangible net worth of at least $10 million,
you can prove your financial
responsibility by passing one of these two
financial tests described on page 15.
•* Show that someone else is responsible for
cleanup and damage costs. You may
arrange to have someone else be
responsible for paying the costs of leaks
from your USTs. This may be done in a
number of ways (all are described in
detail in the rule):
1. Obtain insurance coverage from an
insurer or a risk retention group
(page 8); or
2. Obtain a guarantee for the amount you
are responsible for from a corporate
parent, grandparent, sibling, or from
another firm with whom you have a
substantial business relationship. The
provider of the guarantee has to pass
one of the financial tests described on
page 15; or
3. Obtain a surety bond for the amount
you are responsible for; or
4. Obtain a letter of credit for the
amount you are responsible for.
Use State funds. If your State has
established a State fund that will pay for
the cleanup costs of a leak from your tank
systems, then you may not need
additional coverage to show you can pay
for the same costs (page 7). You need to
check to see if the State fund covers your
tanks. You may also still need to show
financial responsibility for the costs of
compensating those injured by leaks,
unless the State fund would also pay for
those costs.
Use State approved methods. You may
also use any method of coverage
approved by your State.
Set up a trust fund. You may set up a
fully-funded trust fund to cover your
financial responsibility requirement.
YOUR WALL OF
PROTECTION
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Can You Use A Combination
Of Methods To Show
Financial Responsibility?
You may also use a combination of methods to
show financial responsibility. The methods
you choose must cover all the costs that you are
responsible for (both third-party liability and
corrective action) and add up to the amount of
coverage you are required to show. If the
methods you choose cover different costs (for
example, the insurance policy covers damages
to other people and property and the guarantee
covers cleanup costs), then each method must
provide the total amount of responsibility that
you must demonstrate.
What About State Funds?
Some States have established programs to pay
for cleanup costs from petroleum leaks. These
State funds often may be used by owners and
operators of USTs to demonstrate financial
responsibility. In most States, however, funds
will pay only part of cleanup costs. In addi-
tion, few States will pay for third-party dam-
ages caused by petroleum leaks.
You should contact your State environmental
agency to determine if the State has a fund that
you may use to show financial responsibility.
Find out what the State will pay for and what
amount of financial responsibility you must
obtain. In several States, for example, you
must demonstrate financial responsibility for
the first $100,000 of cleanup costs before the
State will demonstrate financial responsibility
for the remaining costs. Most State funds will
not pay more than $1 million per occurrence.
If you don't know how to reach your State Co-
ordinator, call EPA's Hotline for the phone
number of your State Coordinator (1-800-424-
9346)
What Happens If Your
Coverage Is Cancelled?
If your method of financial responsibility is
cancelled, you must find another mechanism to
replace it within 60 days after you receive the
notice of cancellation. If you cannot get an-
other mechanism in that time, then you must
notify the implementing Agency or the State.
Your coverage or insurance contract must spec-
ify that the provider of coverage or insurance
may only cancel your coverage by sending you
a notice by certified mail. For guarantees,
surety bonds, or letters of credit, cancellation
can only occur 120 days after you receive the
notice. Insurance policy coverage can be
cancelled 60 days after you receive the notice.
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Can You Get Private
Insurance Coverage For Your
USTs?
Private insurance coverage for USTs is still
limited, but there are several major insurers
who offer policies. Insurers are often selective
in the tanks they will cover. If you want to
purchase insurance, you may be required to
meet certain conditions for coverage. For ex-
ample, your insurer may ask you to test your
tank for tightness, or he may require certain
improvements in your tank system, such as
liners, cathodic corrosion protection, and leak
detection. Some insurers simply will not pro-
vide coverage for certain types of tanks, like
tanks that are more than 20 years old.
You may also be able to get insurance coverage
through a risk retention group. A risk retention
group is an insurance company formed by busi-
nesses or individuals with similar risks to pro-
vide insurance coverage for those risks. To
join a risk retention group, you will probably
be asked to make a one-time payment ~ called
a capital contribution ~ and thereafter pay an-
nual premiums as with any other insurance
policy.
If you are interested in purchasing insurance
through either a private insurer or a risk reten-
tion group to show financial responsibility for
your USTs, you should contact your insurance
agent. You may want to take with you the
sample Endorsement or Certificate of Insurance
that appear on pages 11 and 12. These docu-
ments are examples of policies that meet EPA
financial responsibility requirements. If you
belong to a trade association, it may also be
able to provide you with information about
insurers and risk retention groups that cover
USTs.
ASK THE EXPERT
INSURANCE
BROKER
INSUKANCt
A6ENT
INSURANCE
PROVIPER
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WHAT RECORDS MUST YOU KEEP OR FILE
WITH THE IMPLEMENTING AGENCY?
You must keep records of the type of coverage
you have at your tank site or your place of busi-
ness. In addition, you must maintain a certifi-
cation of financial responsibility (see page 10).
You must keep both of these records until your
tanks are properly closed.
You only need to report and/or file copies of
these records with EPA in the following cases:
^ You install a new tank system.
+ You have confirmed that a tank system is
leaking.
You receive notice that a method of
coverage you have will be cancelled or
will not provide sufficient coverage, and
you are unable to get other coverage.
• EPA or a State agency requests your
records.
..9..
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SAMPLES OF FINANCIAL RESPONSIBILITY
FORMS
CERTIFICATION OF FINANCIAL RESPONSIBILITY
[Owner or operator] hereby certifies that it is in compliance with the requirements of Subpart H of 40 CFR Part 280.
The financial assurance mechanism[s] used to demonstrate financial responsibility urister Subpart H of 40 CFR Part
280 Is [are] as follows:
[For each mechanism, list the type of mechanism, name of issuer,, mechanism mtff&fa- (if applicable), amount of
coverage, effective period of coverage and whether the mechanisn|j$iyers "taking corradve aeftori" and/or
"compensating third parties for bodily injury and property damage cattf&j by" either "sud^ift Accidental releases" or
"non-sudden accidental releases" or "accidental released,"} ..
•J,, >".'•,,- '"-*:
[Signature of owner or operator] s "
* w s
[Name of owner or operator]
!•
, -
[Title]
[Date]
The owner or operator must update this certification whenever the financial insurance mechanisrn(s) used to
demonstrate financial responsibility change(s).
-10-
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ENDORSEMENT
Name: ! [name of each covered location]
Address:; [address of each covered location]
Policy Number:
Period of Coverage: [current policy period]
Name of [Insurer or Risk Retention Group]:
Address of [Insurer or Risk Retention Group]:
Name of Insured:
Address of Insured:
Endorsement:
1. This endorsement certifies that the policy to which
the endorsement is attached provides liability
insurance covering the following underground storage
tanks:
[List the number of tanks at each facility and the
name(s) and address(es) of the facihty(ies) where Urn*.
tanks are located. If more than one instrument (5 used'
to assure different tanks at any one facility, for,
tank covered by this instrument, list the tank',--f
identification number provided in tb$ 'iotificaticf ('
submitted pursuant to 40 CFR 280I&S,
corresponding state requirement, an<$ Jhd
address of the facility 1 ^ ,"-
for [insert: "taking corr«np3$e stu!;ft&>"s and/ove.
The limits of liability are [insert the dollar amount of
the "each occurrence" and "annual aggregate" limits
of the Insurer's of Group's liability; if the amount of
coverage is different for different types of coverage or
for different underground storage tanks or locations,
indicate the amount of coverage for each type of
coverage and/or for each underground storage tank or
location], exclusive of legal defense costs. This
coverage is provided under [policy number]. The
effective date of said policy is [date].
2. The insurance afforded with respect to such
occurrences is subject to all of the terms and
conditions of the policy; provided, however, that any
provisions inconsistent with subsections (a) through
(e) of this Paragraph 2 are hereby amended to
conform with subsections (a) through (e):
a. Bankruptcy or Insolvency of the insured shall
not relieve the ["Insurer" or "Group"] of its
obligations under the policy to which this
endorsement
b. The ["Insurer" _sr "Gldap"] is liable for the
pjiy.ment of amourtte'Jwithin any deductible
t|pcabie to the polfey to tee" provider of
cttftWiye action or a $«1*4flfed third-party, with a
rigrtf '«rfjreimbursem«nt Bf ? the insured for any such
'"•(>aymMt'niade tfir fte ["Insurer" or "Group"]. This
jM-ovision; ^ftgff'riif apply with respect to that
, ^.Jmount of. Jfty deductible for which coverage is
T*" demonstrated under another mechanism or
combination of mechanisms as specified in 40
' CFR 280.95-280.102.
c. Whenever requested by [a Director of an
implementing agency], the ["Insurer" or "Group"]
agrees to furnish to [the Director] a signed
duplicate original of the policy and all
endorsements.
d. Cancellation or any other termination of the
insurance by the ["Insurer" or "Group"] will be
effective only upon written notice and only after the
expiration of 60 days after a copy of such written
notice is received.
[Insert for claims-made policies:
e. The insurance covers claims for any occurrence
that commenced during the term of the policy that
is discovered and reported to the ["Insurer" or
"Group"] within six months of the effective date of
the cancellation or termination of the policy].
I hereby certify that the wording of this instrument is
identical to the wording in 40 CFR 280.97(b)(1) and that
the ["Insurer" of "Group"] is ["licensed to transact the
business of insurance or eligible to provide insurance
as an excess or surplus lines insurer in one or more
states".]
[Signature of authorized representative of Insurer or
Risk Retention Group]
[Name of person signing]
[Title of person signing], Authorized
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