Participation in the underground storage tank (UST) Preapproval Program is limited to UST owners and operators who are able to demonstrate compliance with eligibility criteria.¹

Criteria for Owner/Operators Using Insurance to Comply with Financial Responsibility (FR) Requirements

To be eligible, the owner/operator must demonstrate that:

• Current FR (proof of insurance) is maintained with ADEQ — There are no gaps in submission of FR documentation to ADEQ;
• UST insurance was relied on as a financial assurance mechanism at the time of the confirmed release date;
• A timely claim was filed with the insurer;
• A claim was or is being pursued until a coverage determination is made

Important

• If a coverage determination for an insurance claim is pending, you are required to keep ADEQ informed of your efforts to pursue coverage and to provide ADEQ with a coverage determination letter. 
• You are responsible for ensuring that your UST insurance provider understands you are conducting corrective actions under the Preapproval Program as you pursue coverage under your policy.
• Acceptance into the Preapproval Program does not alleviate the UST insurance provider from providing coverage.

Documents Required for Owner/Operators Using Insurance for FR Compliance

UST insurance policy with deductible — Documentation is typically more than 30 pages and includes Declarations Page, Insuring Agreement, Definitions, Exclusions and Conditions | View/Download Example >

Notice of claim-acceptable documentation (one of the following options) —

• Acknowledgement of claim from insurance company | View/Download Example >
• Claim form completed by insured | View/Download Example >
• Email from insured requesting claim be opened | View/Download Example >

Continued pursuit of claim-acceptable documentation (one of the following options) —

• Email between insured and insurance company in regards to the claim | View/Download Example >
• Claim denial letter | View/Download Example >

Criteria for Owner/Operators not Using Insurance as for FR Compliance

Financial Assurance Mechanism Documentation: includes guarantees, surety bonds, letters of credit, financial tests of self-insurance, trust funds, stand-by trusts, certificates of deposit, local government bond ratings, local government financial tests, and local government guarantees.

More information about FR requirements | Visit Federal Regulations Website >

¹A.R.S. § 49-1051 | View >

The ADEQ UST Corrective Action Preapproval Program does not provide federally and state required coverage for UST releases and third-party damages. This means funding through the ADEQ Preapproval Program is not financial assurance and cannot be used to demonstrate compliance with financial responsibility. 

The financial assurance mechanism(s) utilized by UST owners and operators to demonstrate compliance with financial responsibility requirements is primary to eligibility for state reimbursement funding.

UST owners and operators relying on UST insurance to demonstrate compliance with financial responsibility (FR), activities conducted, and costs incurred without following notification requirements under their UST insurance policy may be denied insurance coverage and may not be eligible for reimbursement under this program.