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Mandatory Financial Assurance for Underground Storage Tanks

July 19, 2012

 

MANDATORY FINANCIAL ASSURANCE FOR UNDERGROUND STORAGE TANKS

Beginning as early as October 1, 2012, owners and operators of certain underground storage tanks (USTs) must have environmental insurance or its equivalent to cover the cost of clean-up plus third party claims for property damage and personal injury caused by leaks from those tanks.

The October 1, 2012 deadline applies to owners and operators of USTs located at 6 or more separate parcels of land. Municipalities and owners and operators of USTs located at 5 or fewer properties have until October 1, 2013 to obtain insurance or its equivalent.

This financial assurance requirement applies to gasoline and diesel USTs, hazardous substance USTs, non-hazardous waste oil USTs, and other underground USTs regulated under the Regulations of Connecticut State Agencies ยง22a-449(d)-101 et seq.

Financial assurance is not required for on-site heating oil, hazardous waste tanks, hydraulic lift and electrical lift tanks and residential tanks.

For most UST owners and operators, $1 million in coverage is required. The financial assurance requirement can be satisfied by pollution liability policies, self-insurance for high net worth businesses (>$10 million), surety bonds, guarantees, letters of credit or a combination of methods.

Public Act 12-01, which established the above deadlines for financial assurance, also made sweeping changes to the Connecticut Underground Storage Tank Petroleum Clean-up Account, including the enactment of deadlines for filing claims.

For more information, contact:

M. Anne Peters, Esq.

CARMODY & TORRANCE LLP

50 Leavenworth Street | Waterbury, CT 06721

Direct: 203-575-2647 | Cell: 203-525-3750 | Fax: 203-575-2600