South Carolina Code of Regulations › Chapter 61 - DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL › Subchapter 61-92 - UNDERGROUND STORAGE TANK CONTROL REGULATIONS › Part 280 - TECHNICAL STANDARDS AND CORRECTIVE ACTION REQUIREMENTS FOR OWNERS AND OPERATORS OF UNDERGROUND STORAGE TANKS (UST) › Subpart H - FINANCIAL RESPONSIBILITY › Section 61-92.280.H.104 - LOCAL GOVERNMENT BOND RATING TEST

Current through Register Vol. 48, No. 6, June 28, 2024
(a) A general purpose local government owner
				  or operator and/or local government serving as a guarantor may satisfy the
				  requirements of Section 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 Section 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, Aa, 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" 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(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 R.61-92.280.104(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" 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(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 R.61-92.280.104(e) as such regulations
					 were constituted on the date shown immediately below.
[Date] ____________
[Signature] ___________
[Name] ___________
[Title] ____________
(f) The Department may require reports of
				  financial condition at any time from the local government owner or operator,
				  and/or local government guarantor. If the Department 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 Section 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 Department that it no longer
				  meets the requirements of the bond rating test, the owner or operator must
				  notify the Department of such failure within 10 days.