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UST Financial Responsibility (FR)

Frequently Asked Questions

Revised On: Nov. 30, 2023 - 9:00 a.m.

The following frequently asked questions and answers can help UST owners and operators learn more about financial responsibility:

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

The RCO is the Responsible Corporate Officer who is authorized to legally bind a company or organization. The RCO is the main account holder in myDEQ, who may own/operate one or more Underground Storage Tanks (USTs) | Learn More > 

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 >

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 >

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.

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 >


1Must contain required language per 40 CFR 280.97(b) (1) or 40 CFR 280.97(b) (2) | View >
2Must comply with A.R.S. 49-1006.01.C | View >
340 CFR § 280.95 | View >
440 CFR § 280.102 | View >
540 CFR § 280.103 | View >
640 CFR § 280.96 | View >
740 CFR § 280.98 | View >
840 CFR § 280.99 | View >
9A.A.C. R18-12-310 | View >
1040 CFR § 280.104 | View >
1140 CFR § 280.105 | View >
1240 CFR § 280.106 | View >
1340 CFR § 280.107 | View >

There are some instances in which UST owners and operators do not need to provide proof of their FR mechanism each year, yet, they must certify that their FR mechanism is still current and accurate through the annual confirmation option in myDEQ.

For commercial liability insurance, use annual confirmation when the policies extend to more than one policy period year. For example, annual confirmation would be required for a policy period from Jan. 1, 2020, to Jan. 1, 2023. In this case, the UST owner or operator would not need to renew their policy each year, but rather provide annual confirmation in myDEQ.

The following FR mechanisms extend their coverage/validity for more than one year and just require annual confirmation:

  • Financial Test of Self-Insurance
  • Guarantee
  • Local Government Financial Test
  • Local Government Guarantee
  • Local Government Fund

Yes, a UST owner or operator must update myDEQ by selecting the Renewal/Cancellation Notification button and providing the following mandatory information:

  • First and last name
  • Email
  • Date notification received (accepts only past or current dates)
  • Reason for FR non-renewal cancellation

If a previously submitted FR mechanism expires, an enforcement action may be started. First, a notice of violation (NOV) may be issued. If after 30 days of the issuance of the NOV, proof of FR is still not submitted to ADEQ, the facility runs the risk of being issued a stop-use order, affixing a red tag to prohibit fuel delivery to the UST.1

14ARS 49-1023(B)(2) | View > ARS 49-1013 (C), ARS 49-1013(H) | View >

As of July 22, 2021, ADEQ no longer accepts paper forms. To help with this transition, ADEQ invites interested parties to contact the myDEQ help line at 602-771-2000 or by email | Email >

ADEQ offers pre-draft review assistance for UST owners and operators who need help determining the type of coverage that should be included in the insurance policy in order for it to meet federal and state FR requirements. 

UST owners and operators can email ADEQ the sample coverage that the insurance company is offering and we will advise whether or not the policy is compliant under Arizona Law | Email ADEQ to Learn More >