New Mexico Administrative Code › Title 20 - ENVIRONMENTAL PROTECTION › Chapter 5 - PETROLEUM STORAGE TANKS › Part 117 - FINANCIAL RESPONSIBILITY › Section 20.5.117.1717 - LOCAL GOVERNMENT FUND

Current through Register Vol. 35, No. 13, July 16, 2024
A local government owner or operator may satisfy the
				  requirements of 20.5.117.1703 NMAC 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 the requirements in either Subsection A, B or C
				  of this section.
A. 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, petroleum above ground storage tanks, or both and is funded for the full
				amount of coverage required under 20.5.117.1703 NMAC, or funded for part of the
				required amount of coverage and used in combination with other mechanism(s)
				that provide the remaining coverage.
B. 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, petroleum above ground storage tanks, or both and is
				funded for five times the full amount of coverage required under 20.5.117.1703
				NMAC, 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
				20.5.117.1703 NMAC, the amount of financial responsibility demonstrated by the
				fund may not exceed one-fifth the amount in the fund.
C. 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 shall 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
(1) 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, petroleum above ground
				storage tanks, or both; or
(2) the
				local government owner or operator has a letter signed by the 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.