Iowa Administrative Code › Agency 567 - Environmental Protection Commission › Title IX - Spills and Hazardous Conditions › Chapter 136 - Financial Responsibility for Underground Storage Tanks › Rule 567-136.16 - Local Government Fund

Current through Register Vol. 47, No. 3, July 24, 2024
A local government owner or operator may satisfy the
				  requirements of rule 567-136.4 (455B) by establishing
				  a dedicated fund account that conforms to the requirements of this rule. Except
				  as specified in subrule 136.16(2), 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 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 third 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 rule
				567-136.4 (455B), or funded for
				part of the required amount of coverage and used in combination with other
				mechanism(s) that provide the remaining coverage; or
(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 third 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 rule
				567-136.4 (455B), or funded for
				part of the required amount of coverage and used in combination with other
				mechanism(s) that provide the remaining coverage. If the fund is funded for
				less than five times the amount of coverage required under rule
				567-136.4 (455B), the amount of
				financial responsibility demonstrated by the fund may not exceed one-fifth the
				amount in the fund; or
(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 third 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 hereafter referred to as the
				"pay-in period." The amount of each payment must be determined by this 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
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 third parties for bodily injury and
				property damage caused by accidental releases arising from the operation of
				petroleum underground storage tanks, or
b. 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.