Code of Massachusetts Regulations › 310 CMR - DEPARTMENT OF ENVIRONMENTAL PROTECTION › Title 310 CMR 80.00 - Underground Storage Tank Systems › FINANCIAL RESPONSIBILITY › Section 80.51 - Definitions

Current through Register 1525, July 5, 2024
The following definitions shall apply only to 310 CMR 80.51
				  through
				  80.63.
Note
: The definitions in 310 CMR 80.51 are intended to
				  assist in the understanding of
				  310 CMR 80.00 and are not
				  intended either to limit the meaning of the terms in a way that conflict with
				  standard insurance usage or to prevent the use of other standard insurance
				  terms in place of defined terms.
Accidental Release
means any sudden
				  or nonsudden release of a regulated substance from a UST system 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
means substantial
				  impairment of the physical condition including, but not limited to, any burn,
				  fracture of any bone, subdural hematoma, injury to any internal organ, or any
				  injury which occurs as the result of repeated harm to any bodily function or
				  organ, including human skin, however,
Bodily Injury
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
means, in
				  the case of local government Owners and Operators, 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% of the voting stock of an entity.
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:
(a) a 10-K report submitted to the SEC;
(b) an annual report of tangible net worth submitted to Dun
				  and Bradstreet; or
(c) annual reports submitted to the Energy Information
				  Administration or the Rural Electrification Administration.
Financial Reporting Year
may thus
				  comprise a fiscal or a calendar year period.
General Purpose Local Government
means a local government entity that does not perform a single function or
				  limited range of functions. A General Purpose Local Government, includes, but
				  is not limited to, municipalities, counties, townships, towns, villages and
				  parishes.
Guarantor
means any person, other
				  than a person liable pursuant to M.G.L. c. 21E, § 5, who provides evidence
				  of financial responsibility pursuant to M.G.L. c. 21O.
Legal Defense Cost
means any expense
				  that an Owner or Operator or provider of financial assurance incurs in
				  defending against claims or actions brought:
(a) By the Environmental Protection Agency (EPA) or the
				  Commonwealth to require corrective action or to recover the costs of corrective
				  action;
(b) By or on behalf of a third party for bodily injury or
				  property damage caused by an accidental release; or
(c) By any person to enforce the terms of a financial
				  assurance mechanism.
Local Government
means:
(a) Cities, municipalities and towns, separately chartered
				  and operated special districts (including, but not limited to. local government
				  public transit systems and redevelopment authorities), and independent school
				  districts authorized as governmental bodies by state charter or constitution in
				  the Commonwealth; and
(b) Special districts and independent school districts
				  established by cities, municipalities or towns, and other general purpose
				  governments to provide essential services.
Occurrence
means an event, including
				  continuous or repeated exposure to conditions, which results in a release from
				  a UST system.
Property Damage
means injury to real
				  or personal property.
Property Damage
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 a
				  UST system through one of the mechanisms listed in
				  310 CMR
				  80.54(1) through (11),
				  including a guarantor, local government guarantor, insurer, risk retention
				  group, surety, issuer of a letter of credit, the Underground Storage Tank
				  Petroleum Product Cleanup Fund, or the Commonwealth.
Substantial Business Relationship
means the extent of a business relationship necessary under Massachusetts 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 Massachusetts 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 a UST release such as coterminous
				  boundaries, overlapping constituencies, common ground-water aquifer, or other
				  relationship other than monetary compensation that provides a motivation for
				  the guarantor to provide a guarantee.
Termination
means only those changes
				  that could result in a gap in coverage such 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.