Arizona Administrative Code › Title 18 - ENVIRONMENTAL QUALITY › Chapter 12 - DEPARTMENT OF ENVIRONMENTAL QUALITY - UNDERGROUND STORAGE TANKS › Article 3 - FINANCIAL RESPONSIBILITY › Section R18-12-317 - Local Government Fund

Current through Register Vol. 30, No. 28, July 12, 2024
A.
				Local government owners and operators may satisfy the requirements of
				R18-12-303 by establishing a dedicated fund account that conforms to the
				requirements of this Section. Except as specified in subsection (A)(2), a
				dedicated fund may not be commingled with other funds or otherwise used in
				normal operations. A dedicated fund shall 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 3rd parties for bodily injury and property damage caused by
				accidental releases arising from the operation of petroleum underground storage
				tanks and is funded for the full amount of coverage required under
				R18-12-303,
				or funded for part of the required amount of coverage and used in combination
				with other mechanisms that provide the remaining coverage;
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 3rd parties for bodily injury and property
				damage caused by accidental releases arising from the operation of petroleum
				underground storage tanks, and is funded for five times the full amount of
				coverage required under
				R18-12-303,
				or funded for part of the required amount of coverage and used in combination
				with other mechanisms that provide the remaining coverage. If the fund is
				funded for less than five times the amount of coverage required under
				R18-12-303,
				the amount of financial responsibility demonstrated by the fund may not exceed
				1/5 the amount in the fund;
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 3rd parties for bodily injury and property damage caused by
				accidental releases arising from the operation of petroleum underground storage
				tanks. A payment is made to the fund once every year for seven years until the
				fund is fully-funded. This seven-year period is referred to as the
				"pay-in-period." The amount of each payment shall be determined by the
				following 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 one of the following is met:
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 3rd parties for bodily injury and
				property damage caused by accidental releases arising from the operation of
				petroleum underground storage tanks;
b. The local government owner or operator has
				a letter signed by the 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 shall
				also state that prior voter approval is not necessary before use of the bonding
				authority.