North Dakota Administrative Code › Title 33 - State Department of Health › Article 33-24 - Hazardous Waste Management › Chapter 33-24-08 - Technical Standards and Corrective Action Requirements for Owners and Operators of Underground Storage Tanks › Section 33-24-08-97 - Local government fund

Current through Supplement No. 393, July, 2024
A local government owner or operator may satisfy the
				  requirements of section
				  33-24-08-83
				  establishing a dedicated fund account that conforms to the requirements of this
				  section. Except as specified in subsection 2, 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 one of the following
				  requirements:
1. 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 and
				is funded for the full amount of coverage required under section
				33-24-08-83
				or funded for part of the required amount of coverage and used in combination
				with other mechanism or mechanisms that provide the remaining
				coverage.
2. 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, and is funded for five times the full
				amount of coverage required under section
				33-24-08-83,
				or funded for part of the required amount of coverage and used in combination
				with other mechanisms that provide the remaining coverage. If the fund is
				funded for less than five times the amount of coverage required under section
				33-24-08-83,
				the amount of financial responsibility demonstrated by the fund may not exceed
				one-fifth the amount in the fund.
3. 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 must be determined by this formula:
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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:
a. 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; or
b. The local government owner or operator 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 must
				also state that prior voter approval is not necessary before use of the bonding
				authority.