[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: 40CFR281.37]



[Page 579]

 

                   TITLE 40--PROTECTION OF ENVIRONMENT

 

         CHAPTER I--ENVIRONMENTAL PROTECTION 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, 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]