Washington Administrative Code › Title 173 - Ecology, Department of (See also Titles 197, 317, 372, and 508) › Chapter 173-360A - Underground storage tank regulations › Part 10 - FINANCIAL RESPONSIBILITY › Section 173-360A-1073 - Mechanism-Local government fund

Current through Register Vol. 24-14, July 15, 2024
(1)
Applicability of mechanism.
A local government owner or operator
				may satisfy the requirements of WAC 173-360A-1015 by establishing a dedicated
				fund account that conforms to the requirements of this section.
(2)
Restrictions on commingled
				funds.
Except as specified in subsection (3)(b) of this section, a
				dedicated fund may not be commingled with other funds or otherwise used in
				normal operations.
(3)
Local
				government fund requirements.
To be considered eligible, a dedicated
				fund must meet 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 remedial action and for compensating third parties for
				bodily injury and property damage caused by accidental releases arising from
				the operation of underground storage tanks and is funded for the full amount of
				coverage required under WAC 173-360A-1015, 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 remedial action and compensating third parties
				for bodily injury and property damage caused by accidental releases arising
				from the operation of underground storage tanks, and is funded for five times
				the full amount of coverage required under WAC 173-360A-1015, 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 WAC 173-360A-1015,
				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 remedial action and for compensating third parties for
				bodily injury and property damage caused by accidental releases arising from
				the operation of underground storage tanks. A payment must be 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." Equation 1073-1 must be
				used to determine the amount of each payment; and
Equation 1073-1
Payment amount = TY - CF/ Y
Where:
TY = The total required financial assurance for the
						  owner or operator
CF = The current amount in the fund
Y = Number of years remaining in the pay period
(i) 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 must
				be available for taking remedial action and for compensating third parties for
				bodily injury and property damage caused by accidental releases arising from
				the operation of underground storage tanks; or
(ii) 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.