Financial Responsibility for Underground Storage Tank Owners
Underground Storage Tank (UST) Financial Responsibility (FR) is a Federal and State requirement that you have financial resources to clean up a site if a release from your tank occurs and to pay compensation to third parties for damage to their property or for personal injury. For most owners and operators, UST pollution liability insurance is the most practical coverage option. See your insurance broker about pollution liability insurance. Make sure that your policy is specific for USTs 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 Responsibility from all applicable owners and operators:
- annually, 30 days prior to the 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 along with the forms of proof (e.g: certificate of insurance, surety bond, etc.)
- Here is an example of what the Insurance Endorsement proof (i.e. the Certificate of Insurance) should look like for Underground Storage Tank Financial Responsibility.
- Alaska Regulations 18 AAC 78.910. Financial responsibility
- Alaska requirements are based on 40 CFR 280 Subpart H (280.90-116)
- 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
- Association of State and Territorial Solid Waste Management Officials (ASTSWMO) Guide to Tank Insurance - October 2011
- 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 | Per Occurrence Coverage | Aggregate Coverage |
|---|---|---|
| Group 1: Petroleum producers, refiners, or marketers | $1 million | $1 Million for 100 or fewer tanks Or $2 Million for more than 100 tanks |
| Group 2: Non-marketers | $500,000 if throughput is 10,000 gallons monthly or less Or $1 million if throughput is more than 10,000 gallons monthly |
For More Information
- For more information regarding USTs, visit the Underground Storage Tank webpage
- For more information regarding Financial Responsibility
- Phone: 907-269-7579, Fax: 907-465-5245
- Mailing Address: P.O. Box 111800 Juneau, AK 99811
- UST Financial Responsibility Email:decustfr@alaska.gov
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