Financial Responsibility Forms and Guidance
What is Financial Responsibility?
The Aboveground Storage Tank Act (Act) (WV Code §22-30-7) and its implementing rule (47 CSR 63-12) require owners or operators to demonstrate or provide evidence of adequate financial resources to undertake corrective action for releases from regulated tanks (Level 1 and Level 2 ASTs) or tank facilities. The financial responsibility requirements are in place to ensure that financial resources are available to initiate prompt and effective corrective action measures.
Who is subject to the AST Financial Responsibility requirements?
The tank owner and operator of regulated aboveground storage tanks (ASTs) are responsible for compliance with the financial responsibility requirements.
When should I be able to demonstrate that I have met the Financial Responsibility requirements?
The financial responsibility requirements under Section 12 of the AST Rule (§47-63) became effective on August 1, 2016. Owners or operators are required to demonstrate financial responsibility for all regulated ASTs beyond the effective date of the rule.
How much Financial Responsibility do I need to have on my regulated ASTs?
The owner or operator shall demonstrate financial responsibility in an amount calculated as follows:
- For Level 1 ASTs, an amount equal to twenty cents per gallon of the aggregate storage capacity for the tank or tank facility, at a minimum of five thousand dollars ($5,000).
- For Level 2 ASTs, an amount equal to ten cents per gallon of the aggregate storage capacity for the tank or tank facility, at a minimum of five thousand dollars ($5,000).
Bonds or other surety alternatives issued in accordance with Articles 3, 6, and 6A of Chapter 22 of the West Virginia Code satisfies the financial responsibility requirements of the AST Act and the Rule, provided that the owner or operator provides proof that the bond will cover tank-related costs of cleanup activities/corrective action up to the amount of the bond.
How do I demonstrate Financial Responsibility?
The forms or mechanisms of demonstrating adequate financial responsibility may include, but are not limited to, surety bond, letter of credit, self-insurance, evidence of current insurance, or guarantee. Owners or operators may use any one or combination of mechanisms to demonstrate adequate financial responsibility for one or more tanks or tank facilities. The following provides a brief description and summary of the requirements of the most commonly utilized mechanisms along with examples and/or approved templates for certain mechanisms.
If an owner or operator wishes to use an alternative method to demonstrate financial responsibility other than those listed here, please contact the DEP AST program.