Missouri Code of State Regulations › Title 10 - DEPARTMENT OF NATURAL RESOURCES › Division 26 - Petroleum and Hazardous Substance Storage Tanks › Chapter 3 - Underground Storage Tanks- Financial Responsibility › Section 10 CSR 26-3.115 - Local Government Fund

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: This rule describes the requirements for use
				  of a local government fund for demonstrating financial
				  responsibility.
(1) A local
				government owner or operator may satisfy the requirements of
				10
				CSR 26-3.093 by establishing a dedicated fund account
				that conforms to the requirements of this rule. Except as specified in
				subsection (1)(B) of this rule, 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 (1) of the following requirements:
(A) 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 (USTs) and is funded
				for the full amount of coverage required under
				10
				CSR 26-3.093, or funded for part of the required
				amount of coverage and used in combination with other mechanisms that provide
				the remaining coverage; or
(B) 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 USTs and is funded for five (5) times the full
				amount of coverage required under
				10
				CSR 26-3.093, 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 (5) times the
				amount of coverage required under
				10
				CSR 26-3.093, the amount of financial responsibility
				demonstrated by the fund may not exceed one-fifth (1/5) the amount in the fund;
				or
(C) 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 USTs. A payment is made to the
				fund once every year for seven (7) years until the fund is fully-funded. This
				seven (7)-year period is referred to as the pay-in-period. The amount of each
				payment shall be determined by this formula
TF - CF/ Y
where-
TF = the total required financial assurance for the owner or
				  operator;
CF = the current amount in the fund; and
Y = the number of years remaining in the
				  pay-in-period.
1. The local government
				owner or operator has available bonding authority, approved through voter
				referendum (if this 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 USTs; or
2. 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.