Iowa Administrative Code › Agency 567 - Environmental Protection Commission › Title IX - Spills and Hazardous Conditions › Chapter 136 - Financial Responsibility for Underground Storage Tanks › Rule 567-136.3 - Definition of Terms

Current through Register Vol. 47, No. 3, July 24, 2024
"Accidental release"
means any sudden or
				  nonsudden release of petroleum arising from operating an underground storage
				  tank that results in a need for corrective action and/or compensation for
				  bodily injury or property damage neither expected nor intended by the tank
				  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 50 percent of the voting stock of another entity.
"Director"
means the director of the Iowa
				  department of natural resources or local agency responsible for carrying out an
				  approved UST program.
"Financial reporting year"
means the latest
				  consecutive 12-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 SEC;
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 a state to require corrective action or to
				  recover the costs of corrective 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.
"Local government"
means counties,
				  municipalities, townships, separately chartered and operated special districts
				  (including local government public transit systems and redevelopment
				  authorities), and independent school districts authorized as governmental
				  bodies by state charter or constitution and special districts and independent
				  school districts established by counties, municipalities, townships, and other
				  general purpose governments to provide essential services.
"Occurrence"
means an accident, including
				  continuous or repeated exposure to conditions, which results in a release from
				  an underground storage tank.
NOTE: This definition is intended to assist in the
				  understanding of these rules 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 corrective
				  action associated with releases from tanks 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 through one of the mechanisms listed in rules
				  567-136.6 (455B) to
				  567-136.16 (455B), 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 UST 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
				  136.8(2)
"a"
and
"b"
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 date for
				  compliance established in rule
				  567-136.2 (455B).