North Carolina Administrative Code › Title 15A - Environmental Quality › Chapter 02 - Environmental Management › Subchapter O - FINANCIAL RESPONSIBILITY REQUIREMENTS FOR OWNERS AND OPERATORS OF UNDERGROUND STORAGE TANKS › Section .0300 - ASSURANCE MECHANISMS › Section 02O .0302 - SELF INSURANCE

Current through Register Vol. 39, No. 2, July 15, 2024
(a) An owner,
				  operator, or guarantor may meet the financial responsibility requirements by
				  passing the financial test specified in Paragraph (b) of this Rule.
(b) An owner, operator or guarantor,
				  individually or collectively, shall meet the following criteria based on
				  year-end financial statements for the latest completed fiscal year.
(1) The owner, operator, or guarantor,
				  individually or collectively shall have a total tangible net worth of at least
				  the sum of the amounts specified in (b)(2), (b)(3), (b)(4), (b)(5), and (b)(6)
				  of this Rule, not to exceed three million dollars ($3,000,000) and not to be
				  less than one hundred fifty thousand dollars ($150,000):
(2) A cleanup cost factor determined by
				  multiplying the following:
(A) the number of
				  petroleum underground storage tanks that an owner or operator owns or operates
				  in the state of North Carolina and that are covered by self-insurance. USTs
				  that are manifolded together are considered separate USTs. A multi-compartment
				  UST is considered one UST;
(B)
				  twenty thousand dollars ($20,000) for taking corrective action to cleanup
				  environmental damage pursuant to
				  G.S.
				  143-215.94(B)(b)(3);
(C) the proportion of financial assurance
				  required pursuant to Rule .0204 of this Subchapter being covered by
				  self-insurance; and
(D) a constant
				  equal to 0.05.
(3) A
				  third party liability cost factor determined by multiplying the following:
(A) the number of petroleum underground
				  storage tanks that an owner or operator owns or operates in the state of North
				  Carolina and that are covered by self-insurance;
(B) one hundred thousand dollars ($100,000)
				  for compensating third parties for bodily injury and property damage pursuant
				  to G.S.
				  143-215.94(B)(b)(5);
				  and
(C) the proportion of financial
				  assurance required pursuant to Rule .0204 of this Subchapter being covered by
				  self-insurance; and
(D) a constant
				  equal to 0.02.
(4) The
				  amount of tangible net worth used to assure financial responsibility for
				  petroleum underground storage tanks not located in North Carolina;
(5) Ten times the sum of the corrective
				  action cost estimates (40
				  CFR 264.101(b)), the closure
				  (40 CFR
				  264.143 and
				  265.143) and post-closure care
				  (40 CFR
				  264.145 and
				  265.145) cost estimates, and
				  amount of liability coverage (40 CFR 264.147 and
				  265.147) for Hazardous Waste
				  Management Facilities and Hazardous Waste Storage Facilities for which a
				  financial test is used to demonstrate financial responsibility to EPA or to a
				  State implementing agency under a State program authorized by EPA under
				  40 CFR
				  271; and
(6) Ten times the sum of current plugging and
				  abandonment cost estimates for injection wells (40 CFR 144.63) for
				  which a financial test is used to demonstrate financial responsibility to the
				  EPA under 40 CFR
				  144.63 or to a State implementing agency
				  under a State program authorized by EPA under 40 CFR Part 145.
(7) In addition to any other requirements of
				  this Section, a guarantor shall have a net worth of at least two hundred
				  thousand dollars ($200,000) greater than any tangible net worth used by the
				  guarantor in Subparagraph (1) of this Paragraph.