UNOFFICIAL COPY 23 RS BR 1672
Page 1 of 3
XXXX 2/20/2023 5:04 PM Jacketed
AN ACT relating to environmental protection. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
ď˘Section 1. KRS 224.60-120 is amended to read as follows: 3
(1) Each petroleum storage tank owner or operator shall establish and maintain 4
evidence of financial responsibility, as provided for in this section, for taking 5
corrective action and for compensating third parties for bodily injury and property 6
damage. 7
(a) For petroleum storage tank owners or operators of eleven (11) or more tanks, 8
the level of financial responsibility to be established and maintained shall be 9
twelve thousand five hundred dollars ($12,500) per occurrence for taking 10
corrective action and twelve thousand five hundred dollars ($12,500) per 11
occurrence for compensating third parties for bodily injury and property 12
damage. 13
(b) For petroleum storage tank owners or operators of six (6) to ten (10) tanks 14
who have not been issued a closure letter from the cabinet, the level of 15
financial responsibility to be established and maintained shall be two thousand 16
five hundred dollars ($2,500) per occurrence for taking corrective action and 17
two thousand five hundred dollars ($2,500) per occurrence for compensating 18
third parties for bodily injury and property damage. 19
(c) For petroleum storage tank owners or operators of five (5) or less tanks who 20
have not been issued a closure letter from the cabinet, the level of financial 21
responsibility to be established and maintained shall be five hundred dollars 22
($500) per occurrence for taking corrective action and for compensating third 23
parties for bodily injury and property damage. 24
(2) Evidence of financial responsibility may be established by any combination of the 25
following: 26
(a) Commercial or private insurance, including risk retention groups; 27 UNOFFICIAL COPY 23 RS BR 1672
Page 2 of 3
XXXX 2/20/2023 5:04 PM Jacketed
(b) Qualification as a self-insurer; 1
(c) A guarantee, surety bond, or letter of credit; or 2
(d) Any other reasonable and economically practicable means in a form 3
acceptable to the division. 4
(3) To qualify as a self-insurer, the petroleum storage tank owner or operator shall 5
demonstrate a net worth in excess of the amounts specified in subsection (1) of this 6
section. "Net worth" shall mean the monetary value of assets that remain after 7
deducting liabilities. "Assets" shall mean all existing and all probable future 8
economic benefits obtained or controlled by a particular entity as a result of past 9
transactions. 10
(4) The total liability of any guarantor under KRS 224.60-105 to 224.60-160 is limited 11
to the aggregate amount which the guarantor has provided as evidence of financial 12
responsibility to the petroleum storage tank owner or operator pursuant to this 13
section. This subsection does not limit any other state or federal statutory, 14
contractual, or common law liability of a guarantor to a petroleum storage tank 15
owner or operator, including, but not limited to, the liability of the guarantor for bad 16
faith either in negotiating or in failing to negotiate the settlement of any claim. 17
"Guarantor" shall mean any person, other than the petroleum storage tank owner or 18
operator, who provides evidence of financial responsibility for a petroleum storage 19
tank owner or operator pursuant to this section. 20
(5) It is the intent of the General Assembly that the fund established pursuant to KRS 21
224.60-140, combined with the financial responsibility required by this section, 22
may be used by petroleum storage tank owners or operators to demonstrate their 23
compliance with any financial responsibility requirements promulgated under 24
federal regulations. 25
(6) The[ Department for Environmental Protection,] Division of Waste Management[,] 26
within the Department for Environmental Protection shall promulgate 27 UNOFFICIAL COPY 23 RS BR 1672
Page 3 of 3
XXXX 2/20/2023 5:04 PM Jacketed
administrative regulations to implement this section. In promulgating administrative 1
regulations, the division shall not restrain or limit the use of any of the means of 2
establishing financial responsibility specified in this section. The administrative 3
regulations may allow a twenty-five percent (25%) reduction in the level of 4
financial responsibility set in subsection (1) of this section for the timely 5
completion of corrective action. 6