Utah Administrative Code
Topic - Environmental Quality
Title R311 - Environmental Response and Remediation
Rule R311-206 - Petroleum Storage Tanks: Certificate of Compliance and Financial Assurance Mechanisms
Section R311-206-5 - Requirements for Owners and Operators Demonstrating Financial Assurance by Other Methods
Universal Citation: UT Admin Code R 311-206-5
Current through Bulletin 2024-06, March 15, 2024
(1) Owners and operators who elect to utilize an alternate form of financial assurance must meet the minimum coverage amounts using one or a combination of mechanisms as outlined in 40 CFR 280.94.
(a)
owners and operators must submit to the director the documents required by
40 CFR
280.111 to be kept and maintained for the
mechanism used.
(b) formats,
calculations, letters, reporting, and record keeping shall be done in
accordance with each applicable financial assurance mechanism specified in
40 CFR
280 subpart H.
(c) if the financial assurance documentation
submitted to the director is not in accordance with
40 CFR
280 subpart H, it shall be rejected and shall
be invalid.
(2) The processing fee established in Subsection 19-6-408(2) for each new or changed financial assurance document submitted for approval shall be included with the financial assurance document and shall be payable to the Department.
(a) processing fees for subsequent
reviews of financial assurance documents are due on July 1 of the fiscal year
for which the review is required.
(b) pursuant to
40 CFR
280.97, if the financial assurance mechanism
is an insurance policy, the insurer is liable for payment of amounts within any
deductible applicable to the policy to the provider of corrective action or a
damaged third party, with right of reimbursement by the insured for such
payment made by the insurer.
(i) this
provision does not apply with respect to that amount of any deductible for
which coverage is demonstrated under another mechanism or combination of
mechanisms as specified in 40 CFR 280.95 through
280.102 and
280.104 through
280.107.
(ii) a showing of financial assurance for the
deductible, if such a showing is made, shall be treated as a separate financial
assurance mechanism subject to the processing fee requirement referenced in
Subsection R311-206-5(2).
(c) if an owner or operator desires to make
any material change to the financial assurance document, the change shall be
approved by the director, and an additional processing fee shall be paid in
circumstances as determined by the director.
(3) Evidence of a current and approved financial assurance mechanism must be reported to the director as follows:
(a) owners and operators using the financial
test of self-insurance must submit the "Letter from Chief Financial Officer" to
the director within the maximum 120-day period specified in
40 CFR
280.95.
(b) owners and operators using insurance and
risk retention group coverage for financial assurance must submit the coverage
policy in its entirety, with the current Certificate of Insurance or
Endorsement specified in 40
CFR 280.97 (b), to the director within 30
days of acceptance of such policy by the insurer or risk retention group.
(i) if the insurance policy or risk retention
group coverage is canceled, the insurer or risk retention group shall provide
written notice of cancellation or other termination of coverage required by
40 CFR
280.97(b)(1)2.d. and
280.97(b)(2)2.d. to the director as well as the insured.
(ii) the insurer must have a rating of A- or
greater by A.M. Best Co.
(c) owners and operators using an irrevocable
letter of credit must submit proof of the letter of credit, standby trust fund,
and formal certification of acknowledgement to the director within 30 days of
issuance from the issuing institution.
(d) owners and operators using a fully funded
trust fund for financial assurance must submit proof of the trust fund and
formal certification of acknowledgement to the director within 30 days after
implementation of the trust fund.
(e) owners and operators using a guarantee
for financial assurance shall submit the Guarantee document, standby trust
fund, and certification of acknowledgement to the director within 30 days of
issuance.
(i) the owner or operator must also
submit the guarantor's letter from the chief financial officer within the
120-day period specified in 40 CFR 280.95.
(f) owners and operators using a surety bond
for financial assurance must submit the surety bond document, standby trust
fund, and certification of acknowledgement to the director within 30 days of
issuance.
(g) guarantees and surety
bonds may be used as financial assurance mechanisms in Utah only if the
requirement of 40 CFR Part 280.94(b) is met.
(h) owners and operators using one of the
local government methods specified in
40 CFR
280.104 through
280.107 must submit the letter
from the chief financial officer and associated documents to the director
within 120 days of the end of the owner, operator, or guarantor's fiscal
year.
(4) The director may require reports of financial condition or any other information relative to justification of the financial assurance mechanism from the owner or operator at any time.
(a) information requested must be
reported to the director within 30 calendar days after receiving the
request.
(b) owners and operators
must maintain evidence of all financial assurance mechanisms as specified in
40 CFR
280.111.
(c) owners and operators must keep records of
all financial assurance mechanisms in accordance with
40 CFR
280.111 and
280.113.
(d) the director may audit or commission an
audit of records supporting the financial assurance mechanism at any time.
(i) audits may be determined by random
selection or for specific reasons, including the occurrence of a release or
suspected release, deficiencies in complying with regulations or orders, or the
suspicion or discovery of inaccuracies.
(ii) auditing of financial assurance methods
may be accomplished by any method approved by the director.
(5) Any costs of securing a selected financial assurance mechanism and generating and providing the necessary reporting evidence of an assurance mechanism to the director is the sole responsibility of the owner or operator.
(6) Processing of the alternate financial assurance mechanism documents may be accomplished utilizing any method approved by the director.
Disclaimer: These regulations may not be the most recent version. Utah may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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