Arizona Administrative Code › Title 18 - ENVIRONMENTAL QUALITY › Chapter 12 - DEPARTMENT OF ENVIRONMENTAL QUALITY - UNDERGROUND STORAGE TANKS › Article 3 - FINANCIAL RESPONSIBILITY › Section R18-12-314 - Local Government Bond Rating Test

Current through Register Vol. 30, No. 28, July 12, 2024
A. General purpose local government owners
				and operators or a local government serving as a guarantor that has the legal
				authority to issue general obligation bonds may satisfy the requirements of
				R18-12-303
				by having a currently outstanding issue or issues of general obligation bonds
				of $1 million or more, excluding refunded, with a Moody's rating of Aaa, Aa, A,
				or Baa, or a Standard & Poor's rating of AAA, AA, A, or BBB. If a local
				government has multiple outstanding issues, or if a local government's bonds
				are rated by both Moody's and Standard and Poor's, the lowest rating shall be
				used to determine eligibility. Bonds that are backed by credit enhancement
				other than municipal bond insurance may not be considered in determining the
				amount of applicable bonds outstanding.
B. Local government owners and operators or a
				local government serving as a guarantor that is not a general purpose local
				government and does not have the legal authority to issue general obligation
				bonds may satisfy the requirements of
				R18-12-303
				by having a currently outstanding issue or issues of revenue bonds of $1
				million or more, excluding refunded issues and by also having a Moody's rating
				of Aaa, Aa, A, or Baa, or a Standard & Poor's rating of AAA, AA, A, or BBB
				as the lowest rating for any rated revenue bond issued by the local government.
				If bonds are rated by both Moody's and Standard & Poor's, the lower rating
				for each bond shall be used to determine eligibility. Bonds that are backed by
				credit enhancement may not be considered in determining the amount of
				applicable bonds outstanding.
C.
				Local government owners and operators, or a guarantor, or both, shall maintain
				a copy of its bond rating published within the last 12 months by Moody's or
				Standard & Poor's.
D. To
				demonstrate that it meets the local government bond rating test, the chief
				financial officer of a general purpose local government owner or operator, or
				the guarantor, or both, shall sign a letter worded exactly as provided in
				40 CFR
				280.104(d), amended as of
				October 13, 2015, except that the instructions in brackets are to be replaced
				by the relevant information and the brackets deleted.
E. To demonstrate that it meets the local
				government bond rating test, the chief financial officer of a local government
				owner and operator, or the guarantor, or both, shall sign a letter worded
				exactly as provided in
				40 CFR
				280.104(e), amended as of
				October 13, 2015, except that the instructions in brackets are to be replaced
				by the relevant information and the brackets deleted.
F. The Director may require reports of
				financial condition at any time from local government owners and operators, or
				the local government guarantor, or both. If the Director finds, on the basis of
				such reports or other information, that the local government owner or operator,
				or the guarantor, or both, no longer meets the local government bond rating
				test requirements of this Section, the local government owner or operator shall
				obtain alternative coverage within 30 days after notification of such a
				finding.
G. If local government
				owners and operators using the bond rating test to provide financial assurance
				finds that it no longer meets the bond rating test requirements, the local
				government owner or operator shall obtain alternative coverage within 150 days
				of the change in status.
H. If the
				local government owner or operator fails to obtain alternate assurance within
				150 days of finding that it no longer meets the requirements of the bond rating
				test or within 30 days of notification by the Director that it no longer meets
				the requirements of the bond rating test, the owner or operator shall notify
				the Director of such failure within 10 days.