Underground Storage Tank (UST) Program

Underground storage tank system illustration

Preapproval Financial Responsibility (FR) Eligibility Categories

To help determine your eligibility for the Preapproval Program, refer to Arizona Revised Statutes (ARS) and the categories below | View ARS § 49-1006.02(A), (B) and (C) >

Select the FR category that represents the method of financial assurance relied upon to demonstrate FR compliance for the time period(s) associated with the release(s). This will identify which actions are needed for you to demonstrate preapproval program eligibility.

No Cost Share Obligation

Category A: Financial assurance mechanism is UST insurance with a deductible less than $50,000

To demonstrate eligibility, you will be required to provide:

  • A complete copy of the applicable UST insurance policy in effect at the time the release is discovered (if not already on file with ADEQ)
  • Documentation demonstrating a timely claim was filed with the insurance provider
  • Correspondence between you and your insurance provider that demonstrates pursuit of coverage through denial or, after assistance from ADEQ under ARS § 49-1006.01(D), until ADEQ determines that the claim has been constructively denied

Cost Share Obligation

All of the following categories require a $50,000 cost share obligation.

Category B1: Financial assurance mechanism is UST insurance with a deductible of $50,000 or more. Note that eligibility ends on the date that the insurer is obligated to provide payment under the policy.

To demonstrate eligibility, you will be required to provide:

  • A complete copy of the applicable UST insurance policy in effect at the time the release is discovered (if not already on file with ADEQ)
  • Documentation demonstrating timely notice was provided to the insurance provider

Category B2: Reliance upon a financial assurance option other than UST insurance.

To demonstrate eligibility, you will be required to provide:

  • Documentation demonstrating compliance with requirements under your applicable financial assurance mechanism(s)

Category C: Financial assurance mechanism is UST insurance with release reported between July 1, 2006 and Dec. 31, 2015 (with no evidence of filing a timely claim against its insurance provider). Note that maximum amount of preapproval funding available is $500,000.

To demonstrate eligibility, you will be required to provide:

  • A complete copy of the applicable UST insurance policy in effect at the time the release is discovered (if not already on file with ADEQ)

Preapproval for corrective actions and associated costs within the cost share obligation amount is not required.