Hawaii Administrative Rules › Title 11 - DEPARTMENT OF HEALTH › Subtitle 1 - GENERAL DEPARTMENTAL PROVISIONS › Chapter 280.1 - UNDERGROUND STORAGE TANKS › Subchapter 8 - FINANCIAL RESPONSIBILITY › Section 11-280.1-107 - Local government fund

Current through June, 2024
A local government owner or operator may satisfy the
					 requirements of section 11-2801-93 by establishing a dedicated fund account
					 that conforms to the requirements of this section Except as specified in
					 paragraph (2), a dedicated fund may not be commingled with other funds or
					 otherwise used in normal operations A dedicated fund will be considered
					 eligible if it meets one of the following requirements:
(1) The fund is dedicated by state
				  constitutional provision, or local government statute, charter, ordinance, or
				  order to pay for taking corrective action and for compensating third parties
				  for bodily injury and property damage caused by accidental releases arising
				  from the operation of petroleum underground storage tanks or tank systems and
				  is funded for the full amount of coverage required under section 11-2801-93, or
				  funded for part of the required amount of coverage and used in combination with
				  other mechanism(s) that provide the remaining coverage; or
(2) The fund is dedicated by state
				  constitutional provision, or local government statute, charter, ordinance, or
				  order as a contingency fund for general emergencies, including taking
				  corrective action and compensating third parties for bodily injury and property
				  damage caused by accidental releases arising from the operation of petroleum
				  underground storage tanks or tank systems, and is funded for five times the
				  full amount of coverage required under section 11-2801-93, or funded for part
				  of the required amount of coverage and used in combination with other
				  mechanism(s) that provide the remaining coverage If the fund is funded for less
				  than five times the amount of coverage required under section 11-2801-93, the
				  amount of financial responsibility demonstrated by the fund may not exceed
				  one-fifth the amount in the fund; or
(3) The fund is dedicated by state
				  constitutional provision, or local government statute, charter, ordinance or
				  order to pay for taking corrective action and for compensating third parties
				  for bodily injury and property damage caused by accidental releases arising
				  from the operation of petroleum underground storage tanks or tank systems A
				  payment is made to the fund once every year for seven years until the fund is
				  fully-funded This seven-year period is hereafter referred to as the
				  "pay-in-period" The amount of each payment must be determined by this formula:
TF - CF/Y
Where TF is the total required financial assurance for the
					 owner or operator, CF is the current amount in the fund, and Y is the number of
					 years remaining in the pay-in-period, and;
(A) The local government owner or operator
				  has available bonding authority, approved through voter referendum (if such
				  approval is necessary prior to the issuance of bonds), for an amount equal to
				  the difference between the required amount of coverage and the amount held in
				  the dedicated fund. This bonding authority shall be available for taking
				  corrective action and for compensating third parties for bodily injury and
				  property damage caused by accidental releases arising from the operation of
				  petroleum underground storage tanks or tank systems, or
(B) The local government owner or operator
				  has a letter signed by the appropriate state attorney general stating that the
				  use of the bonding authority will not increase the local government's debt
				  beyond the legal debt ceilings established by the relevant state laws. The
				  letter must also state that prior voter approval is not necessary before use of
				  the bonding authority.