Mississippi Administrative Code › Title 11 - Mississippi Department of Environmental Quality › Part 5 - Underground Storage Tank Regulations › Chapter 2 - Mississippi Commission on Environmental Quality Underground Storage Tanks Regulations Technical Standards and Corrective Action Requirements for Owners and Operators of Underground Storage Tanks (UST) (Adopted March 22, 1989; Amended August 25, 2011, Last Amended August 23, 2018) › Rule 11-5-2.8 - Financial Responsibility › Section 11-5-2.8-280.104 - Local government bond rating test

Current through June 25, 2024
(a) A general
				  purpose local government owner or operator and/or local government serving as a
				  guarantor may satisfy the requirements of § 280.93 by having a currently
				  outstanding issue or issues of general obligation bonds of $1 million or more,
				  excluding refunded obligations, with a Moody's rating of Aaa, Aa, A, or Baa, or
				  a Standard & Poor's rating of AAA, AA, A, or BBB. Where a local government
				  has multiple outstanding issues, or where a local government's bonds are rated
				  by both Moody's and Standard and Poor's, the lowest rating must be used to
				  determine eligibility. Bonds that are backed by credit enhancement other than
				  municipal bond insurance may not be considered in determining the amount of
				  applicable bonds outstanding.
(b) A
				  local government owner or operator or local government serving as a guarantor
				  that is not a general-purpose local government and does not have the legal
				  authority to issue general obligation bonds may satisfy the requirements of
				  § 280.93 by having a currently outstanding issue or issues of revenue
				  bonds of $1 million or more, excluding refunded issues and by also having a
				  Moody's rating of Aaa, A, A, or Baa, or a Standard & Poor's rating of AAA,
				  AA, A, or BBB as the lowest rating for any rated revenue bond issued by the
				  local government. Where bonds are rated by both Moody's and Standard &
				  Poor's, the lower rating for each bond must be used to determine eligibility.
				  Bonds that are backed by credit enhancement may not be considered in
				  determining the amount of applicable bonds outstanding.
(c) The local government owner or operator
				  and/or guarantor must maintain a copy of its bond rating published within the
				  last 12 months by Moody's or Standard & Poor's.
(d) To demonstrate that it meets the local
				  government bond rating test, the chief financial officer of a general purpose
				  local government owner or operator and/or guarantor must sign a letter worded
				  exactly as follows, except that the instructions in brackets are to be replaced
				  by the relevant information and the brackets deleted:
Letter from Chief Financial Officer
I am the chief financial officer of [insert: name and
					 address of local government owner or operator, or guarantor]. This letter is in
					 support of the use of the bond rating test to demonstrate financial
					 responsibility for [insert: "taking corrective action" and/or "compensating
					 third parties for bodily injury and property damage"] caused by [insert:
					 "sudden accidental releases" and/or "nonsudden accidental releases"] in the
					 amount of at least [insert: dollar amount] per occurrence and [insert: dollar
					 amount] annual aggregate arising from operating (an) underground storage
					 tank(s).
Underground storage tanks at the following facilities are
					 assured by this bond rating test: [List for each facility: the name and address
					 of the facility where tanks are assured by the bond rating test].
The details of the issue date, maturity, outstanding
					 amount, bond rating, and bond rating agency of all outstanding bond issues that
					 are being used by [name of local government owner or operator, or guarantor] to
					 demonstrate financial responsibility are as follows: [complete table]
Issue date
Maturity date
Outstanding amount
Bond rating
Rating agency
[Moody's or Standard & Poor's]
The total outstanding obligation of [insert amount],
					 excluding refunded bond issues, exceeds the minimum amount of $1 million. All
					 outstanding general obligation bonds issued by this government that have been
					 rated by Moody's or Standard & Poor's are rated as at least investment
					 grade (Moody's Baa or Standard & Poor's BBB) based on the most recent
					 ratings published within the last 12 months. Neither rating service has
					 provided notification within the last 12 months of downgrading of bond ratings
					 below investment grade or of withdrawal of bond rating other than for repayment
					 of outstanding bond issues.
I hereby certify that the wording of this letter is
					 identical to the wording specified in 40 CFR Part 280.104 (d) as such
					 regulations were constituted on the date shown immediately below.
[Date] ____________________
[Signature] ____________________
[Name] ____________________
[Title] ____________________
(e) To demonstrate that it meets the local
				  government bond rating test, the chief financial officer of local government
				  owner or operator and/or guarantor other than a general purpose government must
				  sign a letter worded exactly as follows, except that the instructions in
				  brackets are to be replaced by the relevant information and the brackets
				  deleted:
Letter from Chief Financial Officer
I am the chief financial officer of [insert: name and
					 address of local government owner or operator, or guarantor]. This letter is in
					 support of the use of the bond rating test to demonstrate financial
					 responsibility for [insert: "taking corrective action" and/or "compensating
					 third parties for bodily injury and property damage"] caused by [insert :
					 "sudden accidental releases" and/or "nonsudden accidental releases"] in the
					 amount of at least [insert: dollar amount] per occurrence and [insert: dollar
					 amount] annual aggregate arising from operating (an) underground storage
					 tank(s). This local government is not organized to provide general governmental
					 services and does not have the legal authority under state law or
					 constitutional provisions to issue general obligation debt.
Underground storage tanks at the following facilities are
					 assured by this bond rating test: [List for each facility: the name and address
					 of the facility where tanks are assured by the bond rating test].
The details of the issue date, maturity, outstanding
					 amount, bond rating, and bond rating agency of all outstanding revenue bond
					 issues that are being used by [name of local government owner or operator, or
					 guarantor] to demonstrate financial responsibility are as follows: [complete
					 table]
Issue date
Maturity date
Outstanding amount
Bond rating
Rating agency
[Moody's or Standard & Poor's]
The total outstanding obligation of [insert amount],
					 excluding refunded bond issues, exceeds the minimum amount of $1 million. All
					 outstanding revenue bonds issued by this government that have been rated by
					 Moody's or Standard & Poor's are rated as at least investment grade
					 (Moody's Baa or Standard & Poor's BBB) based on the most recent ratings
					 published within the last 12 months. The revenue bonds listed are not backed by
					 third-party credit enhancement or are insured by a municipal bond insurance
					 company. Neither rating service has provided notification within the last 12
					 months of downgrading of bond ratings below investment grade or of withdrawal
					 of bond rating other than for repayment of outstanding bond issues.
I hereby certify that the wording of this letter is
					 identical to the wording specified in 40 CFR part 280.104(e) as such
					 regulations were constituted on the date shown immediately below.
[Date] ____________________
[Signature] ____________________
[Name] ____________________
[Title] ____________________
(f) The Director of the implementing agency
				  may require reports of financial condition at any time from the local
				  government owner or operator, and/or local government guarantor. If the
				  Director finds, on the basis of such reports or other information, that the
				  local government owner or operator, and/or guarantor, no longer meets the local
				  government bond rating test requirements of §280.104, the local government
				  owner or operator must obtain alternative coverage within 30 days after
				  notification of such a finding.
(g)
				  If a local government owner or operator using the bond rating test to provide
				  financial assurance finds that it no longer meets the bond rating test
				  requirements, the local government owner or operator must obtain alternative
				  coverage within 150 days of the change in status.
(h) If the local government owner or operator
				  fails to obtain alternate assurance within 150 days of finding that it no
				  longer meets the requirements of the bond rating test or within 30 days of
				  notification by the Director of the implementing agency that it no longer meets
				  the requirements of the bond rating test, the owner or operator must notify the
				  Director of such failure within 10 days.
[58 FR 9053, Feb. 18, 1993]
58 FR 9053, Feb.
					 18,1993