North Dakota Administrative Code › Title 33.1 - Department of Environmental Quality › Article 33.1-24 - Hazardous Waste Management › Chapter 33.1-24-08 - Technical Standards and Corrective Action Requirements for Owners and Operators of Underground Storage Tanks › Section 33.1-24-08-94 - Local government bond rating test

Current through Supplement No. 393, July, 2024
1. A general
				purpose local government owner or operator, or local government, or both,
				serving as a guarantor may satisfy the requirements of section
				33.1-24-08-83 currently
				outstanding issue or issues of general obligation bonds of one million dollars
				or more, excluding refunded obligations, with a Moody's rating of Aaa, Aa, A,
				or Baa, or a Standard and 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.
2. 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 section
				33.1-24-08-83 by having a
				currently outstanding issue or issues of revenue bonds of one million dollars
				or more, excluding refunded issues and by also having a Moody's rating of Aaa,
				Aa, A, or Baa, or a Standard and 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 and 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.
3.
				The local government owner or operator or guarantor, or both, must maintain a
				copy of its bond rating published within the last twelve months by Moody's or
				Standard and Poor's.
4. To
				demonstrate that it meets the local government bond rating test, the chief
				financial officer of a general purpose local government owner or operator, or
				guarantor, or both, 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 or tanks.
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 and Poor's]
The total outstanding obligation of [insert amount],
				  excluding refunded bond issues, exceeds the minimum amount of one million
				  dollars. All outstanding general obligation bonds issued by this government
				  that have been rated by Moody's or Standard and Poor's are rated as at least
				  investment grade (Moody's Baa or Standard and Poor's BBB) based on the most
				  recent ratings published within the last twelve months. Neither rating service
				  has provided notification within the last twelve 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 subsection 4 of section 33.1-24-08-94 as such rules
				  were constituted on the date shown immediately below.
[Date]
[Signature]
[Name]
[Title]
5.
				To demonstrate that it meets the local government bond rating test, the chief
				financial officer of the local government owner or operator, or guarantor, or
				both, 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:
The total outstanding obligation of [insert amount],
				  excluding refunded bond issues, exceeds the minimum amount of one million
				  dollars. All outstanding revenue bonds issued by this government that have been
				  rated by Moody's or Standard and Poor's are rated as at least investment grade
				  (Moody's Baa or Standard and Poor's BBB) based on the most recent ratings
				  published within the last twelve 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 twelve months of downgrading of bond ratings below an investment grade nor
				  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 subsection 5 of section 33.1-24-08-94 as such rules
				  were constituted on the date shown immediately below.
[Date]
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" or "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 or tanks. 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 and 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 and Poor's are rated as at least investment grade (Moody's
				  Baa or Standard and Poor's BBB) based on the most recent ratings published
				  within the last twelve 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
				  twelve 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 subsection 5 of section 33.1-24-08-94 as such
				  regulations were constituted on the date shown immediately below.
[Signature]
[Name]
[Title]
6.
				The department may require reports of financial condition at any time from the
				local government owner or operator, or local government guarantor, or both. If
				the department finds, on the basis of such reports or other information, that
				the local government owner or operator, or guarantor, or both, no longer meets
				the local government bond rating test requirements of this section, the local
				government owner or operator must obtain alternative coverage within thirty
				days after notification of such a finding.
7. 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 one hundred fifty days of the
				change in status.
8. If the local
				government owner or operator fails to obtain alternate assurance within one
				hundred fifty days of finding that it no longer meets the requirements of the
				bond rating test or within thirty days of notification by the department that
				it no longer meets the requirements of the bond rating test, the owner or
				operator shall notify the department of such failure within ten days.
General Authority:
NDCC 23.1-04-03,
					 23.1-04-06; S.L. 2017, ch. 199, § 1
Law Implemented:
NDCC 23.1-04-06; S.L. 2017,
					 ch. 199, § 19