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.107 - LOCAL GOVERNMENT FUND

Current through Register Vol. 48, No. 6, June 28, 2024
A local government owner or operator may satisfy the
					 requirements of Section 280.93 by establishing a dedicated fund account that
					 conforms to the requirements of this section. Except as specified in paragraph
					 (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 one of the following requirements:
(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 and is funded for the
				  full amount of coverage required under Section 280.93, or funded for part of
				  the required amount of coverage and used in combination with other mechanism(s)
				  that provide the remaining coverage; or
(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 and is funded for five times the full amount of
				  coverage required under Section 280.93, 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 Section 280.93, the amount of financial
				  responsibility demonstrated by the fund may not exceed one-fifth the amount in
				  the fund; or
(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 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,
(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; or
(2) 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.