Michigan Administrative Code › Department - Licensing and Regulatory Affairs › Bureau of Fire Services › Underground Storage Tank Regulations. R 29.2101-29.2192 › AMENDMENTS TO ADOPTED FEDERAL REGULATIONS › Subpart H - FINANCIAL RESPONSIBILITY › Section R. 29.2168 - Local government fund

Current through Vol. 24-12, July 15, 2024
Rule 68. Section 280.107 is amended to read as
						follows:
Section 280.107. A local government O/O may satisfy the
						requirements of section 280.93 by establishing a dedicated fund account that
						conforms to the requirements of this section. Except as specified in subsection
						(b) of this section, 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 any of the following requirements:
(a) The fund is dedicated by state
					 constitutional provision or by 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 section 280.93, or is funded for part of
					 the required amount of coverage and is used in combination with another
					 mechanism or mechanisms that provide the remaining coverage.
(b) The fund is dedicated by state
					 constitutional provision or by 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 5 times the full amount of
					 coverage required under section 280.93 or is funded for part of the required
					 amount of coverage and is used in combination with another mechanism or
					 mechanisms that provide the remaining coverage. If the fund is funded for less
					 than 5 times the amount of coverage required under section 280.93, then the
					 amount of financial responsibility demonstrated by the fund may not be more
					 than 1/5 the amount in the fund.
(c) The fund is dedicated by state
					 constitutional provision or by 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 7 years until the fund is fully funded. The 7-year
					 period is hereafter referred to as the "pay-in period." The amount of each
					 payment must be determined by the following formula:
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Where TF is the total required financial assurance for
						the O/O, CF is the current amount in the fund, and Y is the number of years
						remaining in the pay-in period, and either of the following provisions
						applies:
(1) The local government O/O
					 has available bonding authority, approved through voter referendum if approval
					 is necessary before 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. The 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.
(2) The
					 local government O/O 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 shall also state that prior voter approval is
					 not necessary before use of the bonding authority.