7 CCR 1101-14-7-1 - Applicability

(a) Owners and operators of petroleum storage tank systems are required to demonstrate compliance with the financial responsibility (FR) requirements in federal regulations by any of the mechanisms described in 40 CFR 280.94 through 280.103. Per C.R.S. § 8-20.5-206, FR is required for underground storage tanks. Per C.R.S. § 8-20.5-303, FR is also required for aboveground storage tanks (ASTs) in Colorado Per the June 2015 revision of EPA regulations, airport hydrant fuel distribution systems, UST systems with field constructed tanks, and UST systems that store fuel solely for use by emergency power generators must also demonstrate FR. Approved mechanisms per these Colorado regulations are described later in this article. FR is intended to ensure that adequate monies are available in the event of an accidental release from a petroleum storage tank system to provide for cleanup of the release (corrective action) and to potentially compensate impacted third parties for bodily injury and property damage resulting from the release. According to 40 CFR 280.93, the amount of FR required ranges from $500,000 up to $2 million depending on the type of facility, monthly throughput of petroleum product and number of tanks. If an owner or operator cannot meet the required deductible amounts listed in Article 8, another FR mechanism must be identified and obtained in order for the owner or operator to remain in compliance and continue operation of the storage tank system.

(b) This FR requirement applies to the following:

(1) Owners/operators of all petroleum UST and AST systems except as otherwise provided in this section.

(2) If the owner and operator of a petroleum tank system are separate persons, only one person is required to demonstrate FR; however, both persons are jointly liable for release cleanup and third-party damages, if neither person complies with Article 7.

(c) This FR requirement does not apply to the following:

(1) State and federal government entities whose debts and liabilities are the debts and liabilities of a state or the United States.

(2) Owners/operators of any UST system exempted in 2-1-1(b) or AST system exempted in 3-1(b).

Notes

7 CCR 1101-14-7-1

37 CR 18, September 25, 2014, effective 10/15/2014 39 CR 18, September 25, 2016, effective 1/1/2017 40 CR 05, March 10, 2017, effective 5/1/2017 40 CR 07, April 10, 2017, effective 5/1/2017 41 CR 07, April 10, 2018, effective 5/1/2018 42 CR 04, February 25, 2019, effective 3/17/2019