Requirements for Amount and Scope of Financial Responsibility

(1) All Owners or Operators of UST systems shall maintain and demonstrate financial responsibility for taking corrective action and for compensating third parties for bodily injury and property damage caused by accidental releases from UST systems. Failure to maintain and/or demonstrate financial responsibility shall subject the Owner or Operator to enforcement including, but not limited to, delivery prohibition in accordance with 310 CMR 80.48. (2) An Owner or Operator shall maintain and demonstrate financial responsibility in at least the following per-occurrence amounts: (a) For Owners and Operators of UST systems that handle an average of more than 10,000 gallons of regulated substance per month based on annual throughput for the previous calendar year: $1 million. (b) For all other Owners and Operators of UST systems: $500,000. (3) An Owner or Operator of UST systems shall maintain and 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 UST systems in at least the following annual aggregate amounts: (a) For Owners and Operators of 1 to 100 tanks, $1 million; and (b) For Owners and Operators of 101 or more tanks, $2 million. (4) The amounts of assurance required under 310 CMR 80.52, excludes legal defense costs. (5) If an Owner or Operator uses separate mechanisms or separate combinations of mechanisms to satisfy the financial responsibility requirements, the financial mechanisms in total shall be in the full amount specified in 310 CMR 80.52(2) and (3). (6) If an Owner or Operator uses separate mechanisms or separate combinations of mechanisms to demonstrate financial responsibility for different UST systems, the annual aggregate required shall be based on the number of tanks covered by each such separate mechanism or combination of mechanisms. (7) An Owner or Operator shall review the amount of their annual aggregate coverage whenever additional tanks are acquired or installed. If the number of tanks for which assurance must be provided exceeds 100, the Owner or Operator shall demonstrate financial responsibility in the annual aggregate amount of at least $2 million within 60 days of installing or acquiring the tank(s) that exceeds 100. (8) The required per-occurrence and annual aggregate coverage amounts do not in any way limit the liability of the Owner and Operator.