[Code of Federal Regulations]
[Title 40, Volume 24]
[Revised as of July 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 40CFR281.37]

[Page 527-528]
 
                   TITLE 40--PROTECTION OF ENVIRONMENT
 
                           AGENCY (CONTINUED)
 
PART 281--APPROVAL OF STATE UNDERGROUND STORAGE TANK PROGRAMS--Table of Contents
 
                Subpart C--Criteria for No-Less-Stringent
 
Sec. 281.37  Financial responsibility for UST systems containing petroleum.

    (a) In order to be considered no less stringent than the federal 
requirements for financial responsibility for UST systems containing 
petroleum, the state requirements for financial responsibility for 
petroleum UST systems must ensure that:
    (1) Owners and operators have $1 million per occurrence for 
corrective action and third-party claims in a timely manner to protect 
human health and the environment;
    (2) Owners and operators not engaged in petroleum production, 
refining, and marketing and who handle a throughput of 10,000 gallons of 
petroleum per month or less have $500,000 per occurrence for corrective 
action and third-party claims in a timely manner to protect human health 
and the environment;
    (3) Owners and operators of 1 to 100 petroleum USTs must have an 
annual aggregate of $1 million; and
    (4) Owners and operators of 101 or more petroleum USTs must have an 
annual aggregate of $2 million.
    (b) Phase-in of requirements. Financial responsibility requirements 
for petroleum UST systems must, at a minimum, be scheduled to be applied 
at all UST systems on an orderly schedule that completes a phase-in of 
the financial responsibility requirements within the time allowed in the 
Federal regulations under 40 CFR 280.91.
    (c) States may allow the use of a wide variety of financial 
assurance mechanisms to meet this requirement. Each financial mechanism 
must meet the following criteria in order to be no less stringent than 
the federal requirements. The mechanism must: Be valid and enforceable; 
be issued by a provider that is qualified or licensed in the state; not 
permit cancellation without allowing the state to draw funds; ensure 
that funds will only and directly be used for corrective action and 
third party liability costs; and require that the provider notify the 
owner or operator of any circumstances that would impair or suspend 
coverage.
    (d) States must require owners and operators to maintain records 
that demonstrate compliance with the state financial responsibility 
requirements,

[[Page 528]]

and these records must be made readily available when requested by the 
implementing agency.

[53 FR 43382, Oct. 26, 1988; 53 FR 51274, Dec. 21, 1988; 54 FR 38788, 
Sept. 20, 1989, as amended at 55 FR 46025, Oct. 31, 1990]