D.C. Mun. Regs. tit. 20, r. 20-6712

Current through Register Vol. 71, No. 49, December 6, 2024

Rule 20-6712 - DRAWING ON FINANCIAL ASSURANCE MECHANISM

6712.1

A guarantor, surety, or issuer of a letter of credit shall place the amount of funds specified by the Department, up to the limit of funds provided by the financial assurance mechanism, into the standby trust if both of the following occur:

(a) The owner fails to establish alternative financial assurance within sixty (60) days after receiving notice of cancellation of the guarantee, surety bond, letter of credit, or other financial assurance mechanism; and

(b) The Department determines or suspects that a release from an UST covered by the mechanism has occurred and has notified the owner or operator, or the owner or operator has notified the Department of a release from an UST covered by the assurance mechanism.

6712.2

A guarantor, surety, or person issuing a letter of credit shall place the amount of funds specified by the Department, up to the limit of funds provided by the financial assurance mechanism, into a standby trust if any of the conditions set forth in §§ 6712.3(a), (b)(1), or (b)(2) occurs.

6712.3

The Department may draw on a standby trust fund when either of the following occurs:

(a) The Department makes a final determination that a release has occurred and immediate or long-term corrective action for the release is needed, and the owner or operator, after appropriate notice and opportunity to comply, has not conducted corrective action as required under Chapter 62; or

(b) The Department has received either of the following:

(1) Certification from the owner, the third-party liability claimant(s), and the attorneys representing the owner and the third-party liability claimant(s) that a third-party liability claim should be paid. The certification shall be in the form prescribed by Appendix 67-9 (Certification of Valid Claim); or

(2) A valid final court order establishing a judgment against the owner or operator for bodily injury or property damage that was caused by an accidental release from an underground storage tank covered by financial assurance under this chapter, and the Department determines that the owner or operator has not satisfied the judgment.

6712.4

If the Department determines that the amount of corrective action costs and third-party liability claims eligible for payment as provided in § 6712.3(b) may exceed the balance of the standby trust fund and the obligation of the provider of financial assurance, the first priority for payment shall be corrective action costs necessary to protect human health and the environment.

6712.5

The Department will pay third-party liability claims in the order in which the Department receives certifications and valid court orders under § 6712.3(b).

D.C. Mun. Regs. tit. 20, r. 20-6712

Final Rulemaking published at 43 DCR 2799 (May 24, 1996), incorporating text of Proposed Rulemaking published at 42 DCR 5765, 5779 (October 20, 1995); as amended by Final Rulemaking published at 46 DCR 7699 (October 1, 1999); amended by Final Rulemaking published at 67 DCR 1778 (2/21/2020)