THE OHIO FINANCIAL ASSURANCE FUND 

Fund Facts

Obtaining A Valid Certificate Of Coverage

The Board issues a Certificate of Coverage to any responsible person who has paid the annual petroleum underground storage tank financial assurance fee assessed on each UST or UST system that contains or has contained petroleum, demonstrated to the Board financial responsibility for the deductible amount, and has met the criteria of assurability.

PAYMENT OF FEES

The fee is set by the Board each year and fee statements are mailed to UST owners by the end of April. Fees must be paid annually by July 1 to avoid a lapse in coverage. Owners who do not submit fees by July 1 are in non-compliance with the law and may be subject to a late payment fee of up to $1000 per tank. Coverage will not resume until the fees and any assessed penalty are received by the Board. The fee must be paid for each tank that is subject to the fee. Unpaid fees will be referred to the Attorney General for collection.

FINANCIAL RESPONSIBILITY 

Financial responsibility is the ability to pay for the costs of corrective actions and third-party bodily injury or property damage resulting from an accidental release of petroleum from a regulated UST. A responsible person must demonstrate financial responsibility for the deductible amount of coverage with the Financial Assurance Fund. Those mechanisms which have been approved are:

∑ Financial test of self-insurance
∑ Insurance or risk retention group coverage
∑ Guarantee & stand-by trust fund
∑ Surety bond & stand-by trust fund
∑ Letter of credit & stand-by trust fund
∑ Trust fund

An additional four mechanisms were designed for use by political subdivisions only:

∑ State or political subdivision bond rating test
∑ State or political subdivision financial test
∑ Political subdivision guarantee
∑ State or political subdivision fund

All ten mechanisms are described in BUSTRís Financial Responsibility Guide. You may obtain this booklet from BUSTR

ASSURABILITY 

An underground storage tank system is an assurable tank system upon certification by the responsible person that, as of the date of the certification, the following criteria are met:

1. The UST system and the petroleum product stored meet the statutory
    definitions;

2. The UST system is properly registered with the State Fire Marshal
    (BUSTR); 

3. The UST system meets the structural design, corrosion protection, spill 
    and overfill prevention,  installation, and upgrading requirements required
    by rule 1301:7-9-06 adopted by the Fire Marshal;

4. The UST system meets leak detection standards and records are maintained
    as required by rule 1301:7-9-07 adopted by the Fire Marshal;

5. The UST is in compliance with 1301:7-9-12 of the Administrative Code 
    and one of the following applies:

∑ The UST is intentionally being used to store or
  dispense petroleum; or
∑ The UST is either temporarily out of service or is
  temporarily closed and a BUSTR  permit has been
  obtained.

6. The responsible person is in compliance with all applicable rules for 
     petroleum underground storage tank systems that have been adopted
     by the Fire Marshal.

Assurability requirements are ongoing in nature and are criteria for maintaining, as well as acquiring, a valid Certificate of Coverage.

The Certificate of Coverage will contain the following information:

∑ The amount of coverage to which the responsible person is entitled;

∑ The time period for which the certificate provides coverage; and

∑ The number of tanks that are included in the coverage.

In no event will eligibility for reimbursement from the Fund be granted when a release is suspected or confirmed prior to the effective date of a valid certificate of coverage.

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