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Financial Responsibility for Underground Storage Tank Owners

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:

  • annually, 30 days prior to expiration of the FR;
  • for a change of owner, prior to operation by the new owner;
  • within 30 days after a release from an UST;
  • prior to operating a newly installed UST system;
  • if requested by DEC; and
  • during a facility audit.
See a list of UST facilities without current Proof of Financial Responsibility.
See a list of UST facilities with current Proof of Financial Responsibility.

More Information

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 oless 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 USTs on Indian lands (USTs 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