Financial Responsibility (FR) means that you have sufficient financial backing to cover expenses due to cleanup or third-party liability that result from a leaking UST. For most people this means you must have UST pollution liability insurance. Premiums for Pollution Liability Insurance have dropped considerably over the years, making the price more affordable. See your Insurance Broker about Pollution Liability Insurance. Make sure that your policy is specific for UST's and meets State and Federal requirements.
Private and local government tank owners and operators are required to show proof of Financial Responsibility. State and Federal governments are not required to show proof. Alaska does not have a State fund to offer tank owners and operators.
DEC requires proof of Financial Responsible from all applicable owners and operators:
- within 30 days after a release from a UST;
- within 30 days after a new installation of a UST;
- if requested by DEC;
- during a facility audit.
More Information
- DEC provides a Certificate of Financial Responsibility (PDF 64K) form as partial proof of having met Financial Responsibility requirements. The other document of proof is the Financial Responsibility instrument itself.
- Alaska Regulations 18 AAC 78.910. Financial responsibility.
- Alaska requirements are based on 40 CFR 280 Subpart H.
- DEC has prepared a document called "Frequently Asked Questions About Financial Responsibility for UST's" that you can download. (PDF 121K)
- DEC has prepared a Fact Sheet called "Document Compliance with Financial Responsibility" that explains acceptable documentation when using insurance as proof of FR. (PDF 150K)
- EPA information about Financial Responsibility.
- Financial Responsibility for Underground Storage Tanks: A Reference Manual (EPA)
 All UST Guidance and Forms
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LIST OF ALASKA-APPROVED INSURANCE COMPANIES WHO SELL UST POLICIES |
Agricultural Excess and Surplus Insurance Company (Part of Great American Insurance Company)
49 East 4th St., Suite 300
Cincinnati, OH 45202
Phone: (800) 336-3324; Fax: (513) 579-6311
Contact: John Wheeler |
Kemper Environmental, Princeton Forrestal Village
155 Village Boulevard
Princeton, New Jersey 08540-5743
Phone: 609-936-3000 / 800-679-0025; Fax: 609-936-3058
Contact: Joe Valenza |
| American International Group (AIG) Environmental, 175 Water Street, 12th Floor NY, NY 10038, Phone: (212) 458-6149, Contact: William Bell |
United Coastal Insurance Company, 233 Main St., New Britain, CT 06050-2350, Phone: (860) 223-5000; Fax: (860) 229-1111, Contact: Susan Deriso |
| Colony Insurance/Front Royal Insurance, 9201 Forest Hill Ave., Suite 200, Richmond, VA 23235, Phone: (804) 327-1700 x1785; (800) 577-6614, Fax: (804) 327-1792, Contact: Arthur G. Davis |
Zurich-American Insurance Company, 301 Mac Ave., Suite 210, East Lansing, MI 48826, Phone: (517) 324-9420; (800) 713-1158, Fax: (517) 333-1884, Contact: Tim Walter, Internet: www.zurichamerican.com |
Financial Responsibility requirements vary depending on several factors. The following table explains the amount of coverage required.
| Group Of UST Owners And Operators |
Compliance Deadline |
Per Occurrence Coverage |
Aggregate Coverage |
GROUP 1:
Petroleum marketers with 1,000 or more tanks
OR
Nonmarketers with net worth of $20 million or more (for nonmarketers, the "per occurrence" amount is the same as Group 4-B below) |
January 1989 |
$1 million |
$2 million
if you have
more than
100 tanks
OR
$1 million
if you have 100
or fewer tanks |
GROUP 2:
Petroleum marketers with 100-999 tanks |
October 1989 |
$1 million |
$2 million
if you have
more than
100 tanks
OR
$1 million
if you have fewer
than 100 tanks |
GROUP 3:
Petroleum marketers with 13-99 tanks |
April 1991 |
$1 million |
$1 million |
GROUP 4-A:
Petroleum marketers with 1-12 tanks |
December 1993 |
$1 million |
$1 million |
GROUP 4-B:
Nonmarketers with net worth of less
than $20 million |
December 1993 |
$500,000
if throughput is
10,000 gallons
monthly or less
OR
$1 million
if throughput is more
than 10,000 gallons
monthly |
$2 million
if you have
more than
100 tanks
OR
$1 million
if you have fewer
than 100 tanks |
GROUP 4-C:
Local governments (including
Indian tribes not part of Group 5) |
February 1994 |
$500,000
if throughput is
10,000 gallons
monthly or less
OR
$1 million
if throughput is more
than 10,000 gallons
monthly |
$2 million
if you have
more than
100 tanks
OR
$1 million
if you have fewer
than 100 tanks |
GROUP 5:
Indian tribes owning UST's on
Indian lands (UST's must be in
compliance with UST technical
requirements) |
December 1998 |
$500,000
if throughput is
10,000 gallons
monthly or less
OR
$1 million
if throughput is more
than 10,000 gallons
monthly |
$2 million
if you have
more than
100 tanks
OR
$1 million
if you have fewer
than 100 tanks |
| For more information about Financial Responsibility for USTs, please contact:
|
For more information about UST's, please contact: |
Clare Pavia, UST FR Contact
Industry Preparedness Program
DEC Division of Spill Prevention and Response
410 Willoughby Ave., Ste. 303, PO Box 111800
Juneau, AK 99801-1800
Telephone: (907) 465-5283
Fax Number: (907) 465-5245
Email Address: Clare.Pavia@alaska.gov |
Dave Guinn, UST Manager
Industry Preparedness Program
DEC Division of Spill Prevention and Response
555 Cordova Street
Anchorage, AK 99501-2617
Telephone: (907) 269-8149
Fax Number: (907) 269-7600
Email Address: Dave.Guinn@alaska.gov |
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