[Code of Federal Regulations]
[Title 40, Volume 26]
[Revised as of July 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 40CFR280.93]

[Page 524-525]
 
                   TITLE 40--PROTECTION OF ENVIRONMENT
 
         CHAPTER I--ENVIRONMENTAL PROTECTION AGENCY (CONTINUED)
 
PART 280_TECHNICAL STANDARDS AND CORRECTIVE ACTION REQUIREMENTS FOR OWNERS AND 
 
                   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

[[Page 525]]

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 $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.