Hawaii Administrative Rules › Title 11 - DEPARTMENT OF HEALTH › Subtitle 1 - GENERAL DEPARTMENTAL PROVISIONS › Chapter 280.1 - UNDERGROUND STORAGE TANKS › Subchapter 8 - FINANCIAL RESPONSIBILITY › Section 11-280.1-92 - Definition of terms

Current through June, 2024
When used in this subchapter, the following terms have the
					 meanings given below:
"Accidental release" means any sudden or nonsudden release
					 of petroleum arising from operating an underground storage tank system that
					 results in a need for release response action and/or compensation for bodily
					 injury or property damage neither expected nor intended by the tank system
					 owner or operator.
"Bodily injury" shall have the meaning given to this term
					 by applicable state law; however, this term shall not include those liabilities
					 which, consistent with standard insurance industry practices, are excluded from
					 coverage in liability insurance policies for bodily injury.
"Chief financial officer" in the case of local government
					 owners and operators, means the individual with the overall authority and
					 responsibility for the collection, disbursement, and use of funds by the local
					 government.
"Controlling interest" means direct ownership of at least
					 fifty percent of the voting stock of another entity.
"Financial reporting year" means the latest consecutive
					 twelve-month period for which any of the following reports used to support a
					 financial test is prepared:
(1) A 10-K report submitted to the U.S. Securities and
					 Exchange Commission;
(2) An annual report of tangible net worth submitted to Dun
					 and Bradstreet; or
(3) Annual reports submitted to the Energy Information
					 Administration or the Rural Utilities Service.
"Financial reporting year" may thus comprise a fiscal or a
					 calendar year period.
"Legal defense cost" is any expense that an owner or
					 operator or provider of financial assurance incurs in defending against claims
					 or actions brought:
(1) By EPA or the state to require release response action
					 or to recover the costs of release response action;
(2) By or on behalf of a third party for bodily injury or
					 property damage caused by an accidental release; or
(3) By any person to enforce the terms of a financial
					 assurance mechanism.
"Occurrence" means an accident, including continuous or
					 repeated exposure to conditions, which results in a release from an underground
					 storage tank system. This definition is intended to assist in the understanding
					 of these regulations and is not intended either to limit the meaning of
					 "occurrence" in a way that conflicts with standard insurance usage or to
					 prevent the use of other standard insurance terms in place of
					 "occurrence".
"Owner or operator", when the owner or operator are
					 separate parties, refers to the party that is obtaining or has obtained
					 financial assurances.
"Petroleum marketing facilities" include all facilities at
					 which petroleum is produced or refined and all facilities from which petroleum
					 is sold or transferred to other petroleum marketers or to the public.
"Property damage" shall have the meaning given this term by
					 applicable state law. This term shall not include those liabilities which,
					 consistent with standard insurance industry practices, are excluded from
					 coverage in liability insurance policies for property damage. However, such
					 exclusions for property damage shall not include response actions associated
					 with releases from USTs or tank systems which are covered by the policy.
"Provider of financial assurance" means an entity that
					 provides financial assurance to an owner or operator of an underground storage
					 tank system through one of the financial mechanisms listed in sections
					 11-280.1-95 through 11-280.1-107, including a guarantor, insurer, risk
					 retention group, surety, issuer of a letter of credit, issuer of a
					 state-required mechanism, or a state.
"Substantial business relationship" means the extent of a
					 business relationship necessary under applicable state law to make a guarantee
					 contract issued incident to that relationship valid and enforceable. A
					 guarantee contract is issued "incident to that relationship" if it arises from
					 and depends on existing economic transactions between the guarantor and the
					 owner or operator.
"Substantial governmental relationship" means the extent of
					 a governmental relationship necessary under applicable state law to make an
					 added guarantee contract issued incident to that relationship valid and
					 enforceable. A guarantee contract is issued "incident to that relationship" if
					 it arises from a clear commonality of interest in the event of an UST or tank
					 system release such as coterminous boundaries, overlapping constituencies,
					 common groundwater aquifer, or other relationship other than monetary
					 compensation that provides a motivation for the guarantor to provide a
					 guarantee.
"Tangible net worth" means the tangible assets that remain
					 after deducting liabilities; such assets do not include intangibles such as
					 goodwill and rights to patents or royalties. For purposes of this definition,
					 "assets" means all existing and all probable future economic benefits obtained
					 or controlled by a particular entity as a result of past transactions.
"Termination" under section 11-280.1-97(b)(1) and (2) means
					 only those changes that could result in a gap in coverage as where the insured
					 has not obtained substitute coverage or has obtained substitute coverage with a
					 different retroactive date than the retroactive date of the original
					 policy.