Frequently Asked Questions about...                                                         

Financial Responsibility for Underground Storage Tanks (USTs)


Q:  Who can I contact for more information?  Back to Top 

A:  If you have any questions regarding the financial responsibility requirements, please contact:

 

Q:  What is financial responsibility and why is it important?  Back to Top

A:  The purpose behind financial responsibility is for the underground storage tank owners and operators to have a source of funds available that can be used for cleaning up petroleum releases, and to pay for third-party losses if they occur. The financial responsibility requirement, along with the leak detection requirement, will mean that releases are discovered shortly after they occur and can be quickly cleaned up. This will ensure minimal damage to human health and the environment and will minimize the cost of cleanup and third-party damages.

 

Q:  Do all petroleum underground storage tank systems have to be covered by financial responsibility?  Back to Top

A:  Both federal and state rules require financial responsibility on all regulated operating petroleum underground storage tank systems except for:

 

Q:  What is a petroleum "marketer"?  Back to Top

A:  An example of a petroleum marketing firm is a gas station. Specifically, a petroleum marketing firm is one with at least one facility where petroleum is produced, refined, sold, or transferred to other marketers or to the public.

 

Q:  Do I have to prove to Ecology that I have insurance?  Back to Top

A:  You will need to have proof of insurance available upon request or if you have a release.

Please note that the documents establishing proof of insurance are actually collected and processed by another state agency, the Department of Licensing. They are normally submitted along with the Underground Storage Tank addendum to the Master Business License application. Please see "Underground Storage Tank Addendum" (form & instructions, external web site) for details.

 

Q:  My insurance agent/broker cannot find an insurance company that will cover financial responsibility. What do I do?  Back to Top

A:  You or your agent/broker may contact the Pollution Liability Insurance Agency (PLIA) at (800) 822-3905 for assistance. PLIA reinsures private insurance companies and includes Insurer Contact Information on their website.  Please see:  PLIA Commercial UST Reinsurance Program for more information.

 

Q:  What will Ecology do if I can’t afford the available insurance?  Back to Top

A:  If you are unable to get insurance on your present underground storage tank system, you will need to close your tanks properly. If you request it, Ecology can provide information on how to properly close your tank.

 

Q:  Can I get insurance if I have existing contamination on my site?  Back to Top

A:  Please check with your insurance provider -- most of them will insure a site IF there is a site characterization report and remediation work plan.  (Should a claim be made, the burden of proof that the release occurred after the policy date rests on the owner/operator.)  If you have questions regarding this type of insurance please call PLIA (Pollution Liability Insurance Agency) at (800) 822-3905.

 

Q:  Is an emergency generator underground storage tank system subject to the financial responsibility requirement?  Back to Top

A:  Yes. Emergency generator systems must comply with all underground storage tank regulations.

 

Q:  Is a school district subject to the financial responsibility requirement if it receives federal or state funds?  Back to Top

A:  Yes. To be a government entity excused from the requirement, the debts and liabilities of that entity have to be the debts and liabilities of the United States or a state of the United States.

 

Q:  What are the penalties for not having financial responsibility?  Back to Top

A:  You may be issued a field citation with a monetary penalty (currently $400) and allowed a short period of time to get insurance. After that, if you continue to operate without insurance you may face civil penalties of $5,000 per tank a day.


Other Questions?

For questions regarding specific sites or situations, please see:  UST/LUST Contacts

We'd like to make this page more helpful over time.  To suggest a general question that doesn't appear above, please email:  Melanie Saunders