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Underground Storage Tanks (UST) Financial Responsibility


Mandatory Financial Responsibility for Regulated Underground Storage Tanks (USTs)

On May 19, 2003 the New Jersey Department of Environmental Protection (hereinafter "Department") amended and added new rules to the Regulations Implementing the New Jersey Underground Storage of Hazardous Substances Act, N.J.A.C. 7:14B et seq.

One of these amendments specifically addressed N.J.A.C. 7:14B-15 -Financial Responsibility Requirements. This subchapter set forth financial responsibility assurance requirements for owners and operators of underground storage tank systems for the purpose of remediation and for compensating third parties for bodily injury and property damage as a result of a discharge from an underground storage tank system. If the owner and operator of an underground storage tank system are separate persons, only one person is required to demonstrate financial responsibility; however, both the owner and operator are responsible in the event of noncompliance. A copy of the current rule N.J.A.C. 7:14B-1.1 et seq. can be found at . The Federal Requirements for Financial Responsibility can be found at EPA - Financial Responsibility Requirements For USTs. The State Requirements for Financial Responsibility can be found at

In addition the Federal EPA has developed a 'List of Known Insurance Providers for Underground Storage Tanks' that can be found at This provides UST owners and operators with a list of some of the insurance providers who may be able to help them comply with financial responsibility requirements by providing a suitable insurance mechanism.

If you think you presently have liability insurance for your underground storage tank(s), please make sure you are covered for taking corrective action and compensating third parties for bodily injury and property damage caused by both sudden accidental releases and non-sudden accidental releases.

Note: Failure to submit current and valid financial assurance mechanism information necessary to demonstrate financial responsibility during renewals and modifications will result in non-issuance of a valid Registration Certificate. For existing registrations non-submittal may result in revocation of your registration. In addition as stated in 7:14B-1.8(b) and N.J.A.C. 7:14B-2.1(c) respectively "No person or business firm shall introduce hazardous substances into a regulated underground storage tank which is not properly registered with the Department pursuant to N.J.A.C. 7:14B-2.1." and "Any person that owns or operates an underground storage tank system shall only use such tank upon receipt of a valid Registration Certificate issued by the Department."

If you have not submitted updated financial responsibility information for your facility you must complete and submit to the Department as required by N.J.A.C. 7:14B-2.2(d) 5 & 7:14B-15 the New Jersey 'Underground Storage Tank Facility Certification Questionnaire - UST-021'. Please complete Section A #3 and #4 with updated Facility Operator and Tank Owner information, Section C-Financial Responsibility, and sign the certification section on the back of the form.

When Self-Insurance is chosen for insurance type in Section C please complete and attach the Financial Test of Self Insurance form to your Questionnaire. When Local Government is chosen for insurance type in Section C please complete and attach the Financial Test for Local Government form to your Questionnaire.