Current through Bulletin 2024-06, March 15, 2024
(a) Used oil
activities. An owner or operator of an off-specification burner facility,
transportation facility, processing/re-refining facility, or transfer facility,
or a group of such facilities, is financially responsible for:
(1) cleanup and closure costs;
(2) general liabilities, including operation
of motor vehicles, worker compensation and contractor liability; and
(3) environmental pollution legal liability
for bodily injury or property damage to third parties resulting from sudden or
non-sudden used oil releases.
(i)
(A) The owner or operator of a permitted used
oil facility or operation shall present evidence satisfactory to the Director
of its ability to meet these financial requirements.
(B) The owner or operator shall present with
its permit application the information the Director requires to demonstrate its
general comprehensive liability coverage.
(C) The owner or operator shall use the
financial mechanisms described in
R315-15-12 to
demonstrate its ability to meet the financial requirements of R315-15-10(a)(1)
and (a)(3).
(ii) In
approving the financial mechanisms used to satisfy the financial requirements,
the Director will take into account existing financial mechanisms already in
place by the facility if required by
R315-264-140
through 151, R315-265-140 through 150, and
R311-201-6.
Additionally, the Director will consider other relevant factors in approving
the financial mechanisms, such as the volumes of used oil handled and existing
secondary containment.
(iii)
Financial responsibility, environmental pollution legal liability and general
liability coverage shall be provided to the Director as part of the permit
application and approval process and shall be maintained until released by
Director.
(iv) Changes in extent,
type, or amount of the environmental pollution legal liability and financial
responsibility shall be considered a permit modification requiring notification
to and approval from the Director.
(b)
(1)
Environmental pollution legal liability coverage for third party damages at
used oil facilities. Each used oil processor, re-refiner, transfer facility,
and off-specification burner shall obtain and maintain environmental pollution
liability coverage for bodily injury and property damage to third parties
resulting from sudden accidental releases, non-sudden accidental releases, or
both, of used oil at its facility. This liability coverage shall be maintained
for the duration of the permit or until released by the Director as provided
for in R315-15-10.
(2) Changes in
extent, type, or amount of the financial mechanism will be considered a permit
modification requiring notification to and approval from the Director. The
minimum amount of environmental pollution legal liability coverage using an
assurance mechanism as specified in this section for third-party damages shall
be:
(i) For operations where individual
volumes of used oil are greater than 55 gallons, such as tanks, storage
vessels, used oil processing equipment, and that are raised above grade-level
sufficiently to allow for visual inspection of the underside for releases shall
be required to obtain coverage in the amount of $1 million per occurrence for
sudden releases, with an annual aggregate coverage of $2 million, exclusive of
legal defense costs; and
(ii) For
operations in whole or part that do not qualify under Subsection
R315-15-10(b)(2)(i), coverage shall be in the amount of $1 million per
occurrence for sudden releases, with an annual aggregate coverage of $2
million, and $3 million per occurrence for non-sudden releases, with an annual
aggregate coverage of $6 million, exclusive of legal defense costs;
(iii) For operations covered under Subsection
R315-15-10(b)(2)(ii), the owner or operator may choose to use a combined
liability coverage for sudden and non-sudden accidental releases in the amount
of $4 million per occurrence, with an annual aggregate coverage of $8 million,
exclusive of legal defense costs.
(c) Used oil transporter environmental
pollution legal liability coverage for third party damages. Each used oil
transporter shall obtain environmental pollution legal liability coverage for
bodily injury and property damage to third parties covering sudden accidental
releases of used oil from its vehicles and other equipment and containers used
during transit, loading, and unloading in Utah, and shall maintain this
coverage for the duration of the permit or until released by the Director as
provided for R315-15-10. The minimum amount of the coverage for used oil
transporters shall be $1 million per occurrence for sudden releases, with an
annual aggregate coverage of $2 million, exclusive of legal defense costs.
Changes in extent, type, or amount of the liability coverage shall be
considered a permit modification requiring notification to and approval from
the Director.
(d) An owner or
operator responsible for cleanup and closure under
R315-15-11 or
environmental pollution legal liability for bodily injury and property damage
to third parties under R315-15-10(b) and (c) shall demonstrate its ability to
satisfy its responsibility to the Director through the use of an acceptable
financial assurance mechanism indicated under
R315-15-12.
(e) Used Oil Collection Centers. Except for
DIYers, who are subject to Utah Code Annotated
19-6-718,
an owner of a used oil collection center shall be subject to the same liability
requirements as a permitted facility under R315-15-10(a) and (b) unless these
requirements are waived by the Director. In accordance with Utah Code Annotated
19-6-710,
the Director may waive the requirement of proof of liability insurance or other
means of financial responsibility that may be incurred in collecting or storing
used oil if the following criteria are satisfied:
(1) The used oil storage tank or container is
in good condition with no severe rusting, apparent structural defects or
deterioration, and no visible leaks;
(2) There is adequate secondary containment
for the tank or container that is impervious to used oil to prevent any used
oil released into the secondary containment system from migrating out of the
system;
(3) The storage tank or
container is clearly labeled with the words "Used Oil";
(4) DIYer log entries are complete including
the name and address of the generator, date and quantity of used oil received;
and
(5) Oil sorbent material is
readily available on site for immediate cleanup of spills.
(f) The Director shall waive an owner or
operator from its existing financial responsibility mechanism as described in
R315-15-10 when:
(1) The Director approves an
alternative mechanism;
(2) The
owner or operator has achieved cleanup and closure according to
R315-15-11;
or
(3) The Director determines that
financial responsibility is no longer applicable under R315-15.
(g) State of Utah and Federal
government used oil permittees are exempt from the requirements of
R315-15-10.
