Current through Reg. 50, No. 13; March 28, 2025
(a) The executive director shall require the
guarantor, surety, or institution issuing a letter of credit to place the
amount of funds stipulated by the executive director, up to the limit of funds
provided by the financial assurance mechanism, into the standby trust if:
(1) the owner or operator fails to establish
alternate financial assurance within 60 days after receiving notice of
cancellation of the guarantee, surety bond, letter of credit, or, as
applicable, other financial assurance mechanism; and
(2) the agency determines or suspects that a
release from an underground storage tank (UST) covered by the mechanism has
occurred and so notifies the owner or operator or the owner or operator has
notified the executive director under Chapter 334, Subchapter D of this title
(relating to Release Reporting and Corrective Action) of a release from an UST
covered by the mechanism; or
(3)
the conditions of subsections (b)(1) or (2)(A) or (B) of this section are
satisfied.
(b) The
executive director may draw on a standby trust fund when:
(1) the agency makes a final determination
that a release has occurred and immediate or long-term corrective action for
the release is needed, and the owner or operator, after appropriate notice and
opportunity to comply, has not conducted corrective action as required under
Chapter 334, Subchapter D of this title; or
(2) the executive director has received
either:
(A) certification from the owner or
operator and the third-party liability claimant(s) and from attorneys
representing the owner or operator and the third-party liability claimant(s)
that the third-party liability claim should be paid. The certification must be
worded as follows, except that instructions in parentheses are to be replaced
with the relevant information and the parentheses deleted:
Attached
Graphic
(B) a
valid final court order establishing a judgment against the owner or operator
for bodily injury or property damage caused by an accidental release from an
UST covered by financial assurance under this subchapter and the agency
determines that the owner or operator has not satisfied the judgment.
(c) If the agency
determines that the amount of corrective action costs and third-party liability
claims eligible for payment under subsection (b) of this section may exceed the
balance of the standby trust fund and the obligation of the provider of
financial assurance, the first priority for payment shall be corrective action
costs necessary to protect human health and the environment. The executive
director shall pay third-party liability claims in the order in which the
executive director receives certifications under subsection (b)(2)(A) of this
section and valid court orders under subsection (b)(2)(B) of this
section.
