[Code of Federal Regulations]

[Title 40, Volume 26]

[Revised as of July 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 40CFR280.93]



[Page 528-529]

 

                   TITLE 40--PROTECTION OF ENVIRONMENT

 

         CHAPTER I--ENVIRONMENTAL PROTECTION AGENCY (CONTINUED)

 

PART 280_TECHNICAL STANDARDS AND CORRECTIVE ACTION REQUIREMENTS FOR 

OWNERS AND OPERATORS OF UNDERGROUND STORAGE TANKS (UST)--Table of Contents

 

                   Subpart H_Financial Responsibility

 

Sec.  280.93  Amount and scope of required financial responsibility.



    (a) Owners or operators of petroleum underground storage tanks must 

demonstrate financial responsibility for taking corrective action and 

for compensating third parties for bodily injury and property damage 

caused by accidental releases arising from the operation of petroleum 

underground storage tanks in at least the following per-occurrence 

amounts:

    (1) For owners or operators of petroleum underground storage tanks 

that are located at petroleum marketing facilities, or that handle an 

average of more than 10,000 gallons of petroleum per month based on 

annual throughput for the previous calendar year; $1 million.

    (2) For all other owners or operators of petroleum underground 

storage tanks; $500,000.

    (b) Owners or operators of petroleum underground storage tanks must 

demonstrate financial responsibility for taking corrective action and 

for compensating third parties for bodily injury and property damage 

caused by accidental releases arising from the operation of petroleum 

underground storage tanks in at least the following annual aggregate 

amounts:

    (1) For owners or operators of 1 to 100 petroleum underground 

storage tanks, $1 million; and

    (2) For owners or operators of 101 or more petroleum underground 

storage tanks, $2 million.

    (c) For the purposes of paragraphs (b) and (f) of this section, 

only, ``a petroleum underground storage tank'' means a single 

containment unit and does not mean combinations of single containment 

units.

    (d) Except as provided in paragraph (e) of this section, if the 

owner or operator uses separate mechanisms or separate combinations of 

mechanisms to demonstrate financial responsibility for:

    (1) Taking corrective action;

    (2) Compensating third parties for bodily injury and property damage 

caused by sudden accidental releases; or

    (3) Compensating third parties for bodily injury and property damage 

caused by nonsudden accidental releases, the amount of assurance 

provided by each mechanism or combination of mechanisms must be in the 

full amount specified in paragraphs (a) and (b) of this section.

    (e) If an owner or operator uses separate mechanisms or separate 

combinations of mechanisms to demonstrate financial responsibility for 

different petroleum underground storage tanks, the annual aggregate 

required shall be based on the number of tanks covered by each such 

separate mechanism or combination of mechanisms.

    (f) Owners or operators shall review the amount of aggregate 

assurance provided whenever additional petroleum underground storage 

tanks are acquired or installed. If the number of petroleum underground 

storage tanks for which assurance must be provided exceeds 100, the 

owner or operator shall demonstrate financial responsibility in the 

amount of at least $2 million of annual aggregate assurance by the 

anniversary of the date on which the mechanism demonstrating financial 

responsibility became effective. If assurance is being demonstrated by a 

combination of mechanisms, the owner or operator shall demonstrate 

financial responsibility in the amount of at least



[[Page 529]]



$2 million of annual aggregate assurance by the first-occurring 

effective date anniversary of any one of the mechanisms combined (other 

than a financial test or guarantee) to provide assurance.

    (g) The amounts of assurance required under this section exclude 

legal defense costs.

    (h) The required per-occurrence and annual aggregate coverage 

amounts do not in any way limit the liability of the owner or operator.