|
Financial Responsibility ("Pollution
Insurance")
Starting December 23, 1998, all
private and local government tank owners and operators of federally
regulated tanks shall provide annual proof of Financial Responsibility
("FR") in order to obtain a permit to operate. State and federal
governments are not required to provide proof of FR.
Financial Responsibility means that the owner has sufficient
financial backing to cover expenses due to cleanup or third-party
liability that results from a leaking UST. Underground tanks exempt
from the financial responsibility requirement are: tanks storing
heating fuel for consumptive use on the property, tanks storing vehicle
fuel of 1,100 gallon capacity or less located on farms or residential
property, and tanks storing CERCLA substances.
Financial Responsibility requirements vary depending on several
factors. The following table explains the amount of coverage required.
|
Financial Responsibility Requirements
(40 CFR 280 93 and Comm 10.816)
The association with the number of tanks owned must be tanks that are
located within the State of Wisconsin.
|
|
| Group of UST Owners
and Operators |
Per Occurrence Coverage
|
Aggregate Coverage
|
|
|
Group 1:
Petroleum marketers with 1,000 or more tanks
|
$1 million
|
$1 million
if you have
100 or fewer tanks
OR
$2 million
if you have more than 100 tanks
|
|
|
OR
|
|
|
Non marketers with net worth of $20 million or
more (for non marketers, the "per occurrence" amount is the same as
Group 4-B below)
|
|
|
Group 2:
Petroleum marketers with 100 - 999 tanks
Petroleum marketers with 100 - 999 tanks
|
|
|
Group 3:
Petroleum marketers with 13 - 99 tanks
Petroleum marketers with 13 - 99 tanks
|
|
|
Group 4-A:
Petroleum marketers with 1 - 12 tanks
Petroleum marketers with 1 - 12 tanks
|
|
|
Group 4-B:
Non marketers with net worth of less than $20 million
|
$500,000
if throughput* is 10,000 gallons monthly
or less
OR
$1 million
if throughput* is more than 10,000 gallons
monthly
|
|
|
Group 4-C:
Local governments (including Indian tribes not part of Group 5)
|
|
|
Group 5:
Indian tribes owning USTs on Indian lands (USTs must be in compliance
with UST technical requirements)
|
|
| |
* Throughput is
calculated on a facility basis. |
The following table lists the mechanisms by which
financial responsibility may be demonstrated *1:
| FR
Mechanism |
Link
|
Federal
Regulation |
Comm 10
Regulation |
|
|
Guarantee*2 |
|
40
CFR 280.96 |
Comm 10.822 & 10.836 |
plus Standby Trust Fund |
|
Insurance & Risk Retention*3 *4 |
|
40
CFR 280.97 |
Comm 10.824 |
|
|
Local Government Bond Test *4 |
|
40
CFR 280.104 |
|
Municipal and county only |
|
Local Government Financial Test |
|
40
CFR 280.105 |
|
Municipal and county only |
|
Local Government Fund |
|
40
CFR 280.107 |
|
Municipal and county only |
|
Local Government Guarantee |
|
40
CFR 280.106 |
|
Municipal and county only |
|
Letter of Credit |
|
40
CFR 280.99 |
Comm 10.828 & 10.836 |
plus Standby Trust Fund |
|
Self Insurance *4 |
|
40
CFR 280.95 |
Comm 10.82 |
|
|
Surety Bond*2 |
|
40
CFR 280.98 |
Comm 10.826 & 10.836 |
plus Standby Trust Fund |
|
Trust Funds |
|
40
CFR 280.102 |
Comm 10.834 |
|
|
Other |
|
40
CFR 280.108 |
Comm 10.838 |
Must
satisfy Comm 10.816 |
*1 All
financial responsibility (FR) must be accompanied by a list of
locations and the respective tanks that are covered by the FR.
Format (example) of tank listing by location that must
accompany FR verification.
*2 The Guarantee or Surety Bond may be
executed as financial responsibility only if fully compliant with the
requirements described in the
Attorney General's
written statement.
*3 See your
Insurance Broker about Insurance and Risk Retention Group Coverage for
Pollution Liability Insurance. Such insurance may be in the form of a
separate insurance policy or an endorsement to an existing policy. Make
sure that your policy is specific for USTs and meets all State and
Federal requirements. If the insurance policy has a deductible, you
must provide one of the approved mechanisms for securing the amount of
the deductible. You must include: a) "Certificate of Insurance" (refer
to *4(1) below) or "Endorsement" b) a
document reflecting the deductible dollar amount if not stated on the
certificate or endorsement, and, c) a list of the tanks covered by the
policy (in a format similar to the form at this link).
*4 Comm 10.844(2)(f) requires that a
Affidavit of Financial Responsibility be submitted. Following are links
to the certification statements for the three most common FR methods in
.pdf format. The forms may be completed by using your computer
keyboard. Print the form on your company letterhead stationary. A copy
with original signature must be submitted to the department. (1)
Pollution Insurance (a. - Owner is operator of the Tank), (b.- Owner of the
Tank is not the Operator); (2)
Self-insurance; (3)
Government bond.
Table
of Insurance Companies
- This link provides a table listing insurance
companies providing pollution insurance to tank owners in Wisconsin.
The list is updated periodically from information that we obtain as
staff work with owners, operators and insurance providers. The
"Insurance Type" category may not reflect the full scope of insurance
services; for example, an "agent" may also provide broker services.
"Producers" are generally agent / brokers.
If you need a reader to access documents in pdf
format, click on the icon to download.
|
|
Links to other Financial Responsibility references:
|
MAW
Newsletter Article (June 1999) |
|
|
40
CFR 280 - Federal Financial Responsibility Regulation |
|
|
Questions
& Answers from EPA Compendium |
|
|
EPA
Financial Responsibility Reference Manual |
|
