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.
More Information
- Owners or operators of UST systems are required to provide proof of FR to DEC by submitting a completed Underground Storage Tank Financial Responsibility Form (PDF 143K) along with the forms of proof (e.g: certficate of insurance, surety bond, etc.)
- Alaska Regulations 18 AAC 78.910. Financial responsibility
- Alaska requirements are based on 40 CFR 280 Subpart H
- Frequently Asked Questions About Financial Responsibility for USTs (PDF 355K)
- Financial Responsibility Guide for Alaskan Underground Storage Tanks (PDF 1.2M) that explains how to obtain FR certification and insurance
- DEC UST Guidance and Forms
- EPA information about insurance for USTs
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
- For more information regarding USTs, visit the Underground Storage Tank webpage
- For more information regarding Financial Responsibility
- Contact Shauna McMahon
- Phone: 907-465-5233, Fax: 907-465-5245
- Mailing Address: P.O. Box 111800 Juneau, AK 99811
- Financial Responsibility Email Addresses
- Industry: dec.spar.pprp.ind.fr@alaska.gov
- NTV: dec.nontankvessel.cofr@alaska.gov
- UST: decustfr@alaska.gov
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