Superfund: Insuring Underground Petroleum Tanks
RCED-88-39
Published: Jan 15, 1988. Publicly Released: Jan 15, 1988.
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Highlights
Pursuant to a legislative requirement, GAO determined the availability of pollution liability insurance for owners and operators of petroleum storage and distribution facilities, focusing on: (1) the current and projected availability of tank insurance; (2) tank owners' and operators' ability to maintain financial responsibility through methods other than insurance; (3) the experience of marine vessel owners and operators in getting insurance for similar liabilities; and (4) available options to assist tank owners and operators in demonstrating financial responsibility.
Recommendations
Recommendations for Executive Action
Agency Affected | Recommendation | Status |
---|---|---|
Environmental Protection Agency | The Administrator, EPA, should implement financial responsibility requirements over a timetable that: (1) is realistic in terms of availability of insurance and other financial assurance methods; (2) provides incentives for prompt and appropriate technical improvements by tank owners and operators; and (3) allows for the development of appropriate state regulatory and enforcement programs. |
Closed – Implemented
Final rule issued on October 26, 1988 included phase-in compliance. The rule took effect on January 24, 1989.
|
Environmental Protection Agency | The Administrator, EPA, should modify the timetable for tank upgrading or replacement by establishing a staggered schedule under which older tanks will be upgraded or replaced first. |
Closed – Implemented
Final rule issued September 23, 1988 on tank upgrade included a requirement that older tanks be replaced or upgraded first.
|
Environmental Protection Agency | The Administrator, EPA, should continue to investigate the appropriate levels of liability for tank owners and proper requirements for self-insurance. |
Closed – Not Implemented
EPA contends that it could not change level of insurance because the amount is set in the law. Also, there have been no complaints about self-insurance tests in the October 1988 rule. No one has sued EPA, which further supports EPA contention that the level is appropriate.
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Topics
Environmental lawFinancial managementHazardous substancesInsurance companiesLiability insurancePetroleum storageSafety regulationSafety standardsTanks (containers)Water pollution