Current through September 21, 2024
(a) The
administrator shall require the guarantor, surety, or institution issuing a
letter of credit to place the amount of funds stipulated by the administrator
up to the limit of funds provided by the financial assurance mechanism into the
department's trust and agency account, which operates as a standby trust, if:
(i) The owner and/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 the administrator
determines or suspects that a release from an underground storage tank covered
by the mechanism has occurred and so notifies the owner and/or operator or the
owner and/or operator has notified the administrator pursuant to Chapter XVII,
Water Quality Rules and Regulations, Parts E or F, of a release from an
underground storage tank covered by the mechanism, or;
(ii) The conditions of Sections
13(b) (i)
or (b) (ii) (A) or (B) are
satisfied.
(b) The
administrator may draw on a standby trust fund when:
(i) The administrator makes a final
determination that a release has occurred and immediate or long-term corrective
action for the release is needed, and the owner and/or operator, after
appropriate notice and opportunity to comply, has not conducted corrective
action as require under Chapter XVII, Water Quality Rules and Regulations, Part
F, or;
(ii) The administrator has
received certification from the owner and/or operator and the third-party
liability claimant(s) and from attorneys representing the owner and/or operator
and the third-party liability claim ant(s) that a third-party liability claim
should be paid. The certification must be worded as specified in
40
CFR 280.108.
(iii) 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 underground storage tank covered by
financial assurance under this chapter and the administrator determines that
the owner or operator has not satisfied the judgment.
(c) If the administrator determines that the
amount of corrective action costs and third-party liability claims eligible for
payment under Section
13(b) 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 administrator
shall pay third-party liability claims in the order in which the administrator
receives certifications under Section
13(b)
(ii), and valid court orders under Section
13(b)
(iii).
