UST Financial Responsibility | Frequently Asked Questions

How do I register for myDEQ?

The Responsible Corporate Officer (RCO) must request an account | Learn How > | Watch Video >

What is an RCO?

The main account holder, who may own/operate one or more Underground Storage Tanks (USTs) | Learn More > 

Can brokers register to submit Financial Responsibility for the UST owner or operator? If so, how can they sign up?

Yes, the main account holder adds users to provide access to their account and prepare information on their behalf | Learn More >

Once the RCO provides access to a user, they will receive an email with a link to setup their own login | Learn More >

What is Financial Responsibility (FR)?

State and federal law requires owners of USTs to provide evidence of FR in case of environmental hazards such as leaking USTs:

  • Arizona Revised Statutes (ARS) requires owners and operators to establish evidence of FR to demonstrate that they are financially capable | View ARS 49-1006 >
  • Code of Federal Regulations (CFR) delineates the corrective action requirements for UST owners and operators | View 40 CFR § 280 H >

Why is FR important?

FR is important because it demonstrates that the owner or operator has the financial capacity to cover anys costs related to cleaning up confirmed spills or leaks. Leaks from USTs may create a risk to soil, groundwater and surface water (drinking water resources) and air (through vapor intrusion), and contamination from leaks may require extensive and expensive cleanup efforts. Requiring FR provides protection for UST owners who may be at financial risk in the event of a spill. They could suffer economic losses if they didn’t have mechanisms such as insurance as a backup.

What are mechanisms that can be used to prove FR?

Types of mechanisms used to prove FR include:

1. Commercial Liability is the most commonly used. To successfully submit proof of Commercial Liability in myDEQ:

  • You must provide a certificate of insurance with information on the types and limits of coverage, insurance company, policy number, name insured and policy's effective periods1 | View Example Certificate >
  • You must provide the tank schedule, identifying the tanks covered under the policy and a compliant retroactive date2 (unless the retroactive date is listed on another official policy document) | View Example Tank Schedule > | Learn More About Retroactive Dates >
  • You cannot provide an ACORD as proof of commercial liability insurance.

2. Financial Test of Self-Insurance, which must include:3

  • A letter from the Chief Financial Officer (CFO)
  • Financial statements
  • Tanks list
  • A report from an independent certified public accountant

3. Trust Fund4
4. Standby Trust Fund, which must include the standby trust bond5
5. Guarantee, which must include:6

  • A letter from the Chief Financial Officer (CFO)
  • Financial statements
  • Tanks list
  • A report from an independent certified public accountant
  • Guarantee agreement
  • Standby trust fund documentation

6. Surety Bond, which must include standby trust documentation7
7. Letter of Credit, which must include standby trust documentation8
8. Certificate of Deposit, which must include documentation of another mechanism9

Local governments can submit:

1. Bond Rating Test, which must include a letter from the Chief Financial Officer (CFO)10
2. Bond Financial Test, which must include a letter from the Chief Financial Officer (CFO) and financial statements11 
3. Guarantee, which must include:12

  • Guarantee agreement
  • Financial statements
  • Letter from the Chief Financial Officer (CFO) — pdf upload
  • Standby trust fund (conditional)

4. Local Government Fund, which must include a letter from the Chief Financial Officer (CFO) and financial statements13

For more information on types of FR, visit the Financial Responsibility Options for USTs webpage | Visit Page >