IC 13-23-4
    Chapter 4. Financial Responsibility

IC 13-23-4-1
Permissible forms of evidence
    Sec. 1. The rules adopted under IC 13-23-1-2(c)(6) may allowevidence of financial responsibility in one (1) or a combination of thefollowing forms:
        (1) Insurance.
        (2) Guarantee.
        (3) Surety bond.
        (4) Letter of credit.
        (5) Qualification as a self-insurer.
        (6) Any other method satisfactory to the commissioner and theAdministrator of the United States Environmental ProtectionAgency.
As added by P.L.1-1996, SEC.13.

IC 13-23-4-2
Required policy provisions or contract terms
    Sec. 2. The rules adopted under IC 13-23-1-2(c)(6) may requirethe use of certain policy provisions or contract terms, includingprovisions or terms concerning the following:
        (1) The minimum amount of coverage required for variousclasses and categories of underground storage tanks establishedunder section 4 of this chapter.
        (2) Conditions or defenses that are necessary or unacceptable inestablishing evidence of financial responsibility.
As added by P.L.1-1996, SEC.13.

IC 13-23-4-3
Establishment of method to show evidence of financialresponsibility
    Sec. 3. (a) The commissioner may provide a method under whichthe owner or operator of an underground storage tank may establishevidence of financial responsibility as required under sections 1 and2 of this chapter and 42 U.S.C. 6991b(c)(6) with respect to the partof the potential liability of the owner or operator that is not coveredthrough the excess liability trust fund established by IC 13-23-7-1.
    (b) A method provided by the commissioner under this sectionmust be acceptable to the Administrator of the United StatesEnvironmental Protection Agency.
    (c) A method provided by the commissioner under this sectionmust establish requirements for the establishment of evidence offinancial responsibility by a small business petroleum marketer thatare less stringent than the requirements applying to a petroleummarketer that owns or operates more than twelve (12) undergroundstorage tanks.
As added by P.L.1-1996, SEC.13. Amended by P.L.9-1996, SEC.4.
IC 13-23-4-4
Underground storage tanks containing petroleum; minimumcoverage amounts; classes and categories
    Sec. 4. (a) The rules adopted under IC 13-23-1-2(c)(6) mayrequire a minimum amount of coverage for particular classes orcategories of underground storage tanks containing petroleum.Minimum coverage amounts established under this subsection mustbe at least one million dollars ($1,000,000) for each occurrence, withan appropriate aggregate amount.
    (b) The board may by rule set minimum coverage amounts lowerthan the amount set forth in subsection (a) for underground storagetanks containing petroleum that are:
        (1) not located at facilities engaged in the production, refining,or marketing of petroleum; and
        (2) not used to handle substantial quantities of petroleum.
    (c) In adopting rules establishing classes and categories ofunderground storage tanks containing petroleum for purposes of thissection, the board may consider the following factors:
        (1) The:
            (A) size, type, location, storage, and handling capacity ofunderground storage tanks in the class or category; and
            (B) volume of petroleum handled by those tanks.
        (2) The:
            (A) likelihood of release; and
            (B) potential extent of damage from any release;
        from underground storage tanks in the class or category.
        (3) The economic impact of the limits on the owners andoperators of each class or category, particularly relating to thesmall business segment of the petroleum marketing industry.
        (4) The availability of methods of financial responsibility inamounts greater than the amount established by this section.
        (5) Any other factors that the board considers pertinent.
As added by P.L.1-1996, SEC.13.

IC 13-23-4-5
Suspension of enforcement of financial responsibility requirements
    Sec. 5. (a) The commissioner, upon the application of any affectedperson or in the absence of any application, may suspendenforcement of the financial responsibility requirements for aparticular class or category of underground storage tanks if thecommissioner determines that the following conditions exist:
        (1) The methods of financial responsibility satisfying therequirements of this article are not generally available forunderground storage tanks in that class or category.
        (2) Steps are being taken:
            (A) to form a risk retention group for the class or category;or
            (B) to establish a fund under Section 9004(c)(1) of thefederal Solid Waste Disposal Act, as amended (42 U.S.C.6991c(c)(1), as amended), to be submitted as evidence of

financial responsibility.
    (b) A suspension of enforcement under this section may notexceed one hundred eighty (180) days. Following a suspension ofenforcement under this section, the commissioner may suspendenforcement for additional successive periods of not more than onehundred eighty (180) days if:
        (1) the commissioner determines that substantial progress hasbeen made in establishing a risk retention group; or
        (2) the owners or operators of underground storage tanks in theclass or category demonstrate to the satisfaction of thecommissioner that:
            (A) the formation of a risk retention group is not possible;and
            (B) the state is unable or unwilling to establish a fund asdescribed in subsection (a)(2)(B).
    (c) A determination to suspend enforcement of the financialresponsibility requirements for a particular class or category ofunderground storage tanks under subsection (a) or (b) may not beeffective until the Administrator of the United States EnvironmentalProtection Agency has made the same determination under Section9003(d)(5)(D) of the federal Solid Waste Disposal Act, as amended(42 U.S.C. 6991b(d)(5)(D), as amended), with respect to the sameclass or category of underground storage tanks.
As added by P.L.1-1996, SEC.13.

IC 13-23-4-6
Bankruptcy of owner or operator of underground storage tank;liability of guarantor
    Sec. 6. (a) If:
        (1) the owner or operator of an underground storage tank is inbankruptcy, reorganization, or arrangement under the federalbankruptcy law; or
        (2) despite the exercise of reasonable diligence, no state orfederal court could obtain jurisdiction over an owner oroperator likely to be solvent at the time of judgment;
any claim arising from conduct for which evidence of financialresponsibility is provided may be asserted directly against theguarantor.
    (b) In an action based upon a claim under subsection (a), theguarantor may invoke:
        (1) all rights and defenses that would have been available to theowner or operator if the action had been brought against theowner or operator by the claimant; and
        (2) all rights and defenses that would have been available to theguarantor if an action had been brought against the guarantor bythe owner or operator.
    (c) The total liability of a guarantor under this section is limitedto the aggregate amount in which the guarantor has providedevidence of financial responsibility for the owner or operator of anunderground storage tank. This section does not do any of the

following:
        (1) Limit any other liability of a guarantor to the owner oroperator of an underground storage tank, such as liability forbad faith in:
            (A) negotiating; or
            (B) failing to negotiate;
        the settlement of any claim.
        (2) Diminish the liability of any person under the following:
            (A) Section 107 or 111 of the federal ComprehensiveEnvironmental Response, Compensation, and Liability Actof 1980 (42 U.S.C. 9607 or 9611).
            (B) Any other applicable law.
As added by P.L.1-1996, SEC.13.

IC 13-23-4-7
Concurrence of Administrator of United States EnvironmentalProtection Agency with actions of board or commissioner
    Sec. 7. The provisions of IC 13-11-2-241(b)(10) and sections 1(6)and 5(c) of this chapter requiring the concurrence of theAdministrator of the United States Environmental Protection Agencyfor an action of the board or commissioner to be effective arenullified if the Administrator grants to the commissioner, under theprogram approved under Section 9004 of the federal Solid WasteDisposal Act, as amended (42 U.S.C. 6991c, as amended), theauthority to take the action without the Administrator's specificconcurrence.
As added by P.L.1-1996, SEC.13.