General
Overview
Owners or operators of an underground storage tank (UST) must
demonstrate financial assurance for corrective action and third
party pollution liability, except for owners and operators of any
UST system described in Title 30, Texas Administrative Code (TAC),
§334.3 (relating to Exemptions) and §334.4 (relating to
Exclusions) or a state or federal entity described in
§37.801(b) (relating to Applicability). Rules detailing
financial assurance requirements for USTs are found in
Subchapter I of Chapter 37. 
Other Subchapters of Chapter 37 do not apply
to UST owners and operators.
A brief summary of the two types of required coverages is listed
below:
1) Corrective Action - covers the
cost of taking corrective action caused by accidental releases
arising from the operation of USTs.
2) Third Party Liability -
compensates third parties for bodily injury and property damage
caused by accidental releases arising from the operation of
USTs.
Questions? We
Can Help
For further information about UST financial assurance, please contact us.
Types of Financial
Assurance Mechanisms
Owners or operators may choose from any of the options listed
below for providing financial assurance: insurance, surety bond,
letter of credit, financial test (self insurance), corporate
guarantee or trust. Local governments may also choose the local
government test or local government guarantee.
Insurance is the most common choice. The required coverage is not
usually included in the Commercial General Liability coverages
routinely carried by many businesses. Insurance agents may know the
required coverage as Pollution Legal Liability.
Documentation Required
Regardless of the option you choose to demonstrate your
financial assurance requirements, you must have a mechanism worded
exactly as required by
Subchapter I of Chapter 37. Mechanisms worded per federal regulations
in 40 CFR Chapter 280 are not acceptable, with the exception of the
local government test and local government guarantees, which should
be worded per Chapter 280. ACORD forms from insurance companies are
also unacceptable. Original mechanisms should be maintained at the
designated place of business or at the location of the USTs.
