7 Del. Admin. Code § 1352-D-14.0

Current through Register Vol. 28, No. 7, January 1, 2025

Section 1352-D-14.0 - Local Government Fund

14.1 Requirements for Use of Local Government Fund to Comply with Financial Responsibility

14.1.1. A local government Owner or Operator may satisfy the requirements of PART D, Section 3.0 by establishing a dedicated fund account that conforms to the requirements of this Section. Except as specified in PART D, subsection 14.1.1.2, 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:

14.1.1.1 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 ASTs and is funded for the full amount of coverage required under PART D, Section 3.0, or funded for part of the required amount of coverage and used in combination with other mechanism(s) that provide the remaining coverage; or

14.1.1.2 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 ASTs, and is funded for 5 times the full amount of coverage required under PART D, Section 3.0, 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 PART D, Section 3.0, the amount of financial responsibility demonstrated by the fund shall not exceed one fifth the amount in the fund; or

14.1.1.3 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 ASTs. A payment is made to the fund once every year for 7 years until the fund is fully-funded. This 7 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 responsibility 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

14.1.1.3.1 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 ASTs, or

14.1.1.3.2 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 shall also State that prior voter approval is not necessary before use of the bonding authority.

14.1.2 To demonstrate that it meets the requirements of the local government fund, the Chief Financial Officer of the local government Owner or Operator and/or Guarantor shall sign a letter worded as specified in PART D, Section 31.0, Form Q, except that the instructions in brackets are to be replaced by the relevant information and the brackets deleted.

14.1.3 An Owner or Operator using a local government fund under PART D, Section 14.0 shall maintain the following documents:

14.1.3.1 A copy of the State constitutional provision or local government statute, charter, ordinance, or order dedicating the fund, and

14.1.3.2 Year-end financial statements for the most recent completed Financial Reporting Year showing the amount in the fund. If the fund is established under PART D, subsection 14.1.1.3 using incremental funding backed by bonding authority, the financial statements shall show the previous year's balance, the amount of funding during the year, and the closing balance in the fund, and

14.1.3.3 If the fund is established under PART D, subsection 14.1.1.3 using incremental funding backed by bonding authority, the Owner or Operator shall also maintain documentation of the required bonding authority, including either the results of voter referendum under PART D, subsection 14.1.1.3.1, or attestation by the State Attorney General as specified under PART D, subsection 14.1.1.3.2.

7 Del. Admin. Code § 1352-D-14.0

20 DE Reg. 815 (4/1/2017)
27 DE Reg. 536 (1/1/2024) (Final)