Md. Code Regs. 26.10.11.03

Current through Register Vol. 51, No. 12, June 14, 2024

Section 26.10.11.03 - Additional Mechanism for Local Governments to Demonstrate Financial Responsibility

A. In addition to the mechanisms for demonstrating financial responsibility listed in 40 CFR §§ 280.95 - 280.107, a local government may use the mechanism described in §§B-D of this regulation to demonstrate financial responsibility for one or more USTs.

B. A local government may obtain environmental liability coverage from an insurance pool that:

(1) Is established under Insurance Article, §§ 19-602 and 19-603, Annotated Code of Maryland;

(2) The Secretary of the Environment has determined to be financially sound and at least as equivalent to one or more of the financial assurance mechanisms provided in 40 CFR §§ 280.95 - 280.107; and

(3) On an annual basis, provides any information to the Department considered necessary to assess whether the insurance pool remains financially sound.

C. When determining the financial soundness of an insurance pool, the Secretary of the Environment may consider the certainty of the availability of the insurance pool funds to cover the potential liability of participating local governments to take corrective action or to compensate third parties for bodily injury and property damage, or both, caused by an accidental spill, release, or discharge arising from the operation of petroleum USTs, as set forth in 40 CFR § 280.93.

D. A local government using an insurance pool approved under this chapter to demonstrate financial responsibility for one or more USTs shall:

(1) Obtain a separate endorsement, certificate, or similar document worded in accordance with the forms set forth in 40 CFR § 280.97(b); and

(2) Comply with all applicable provisions of 40 CFR §§ 280.90 - 280.116, including those imposing requirements for reporting and recordkeeping.

Md. Code Regs. 26.10.11.03

Regulation .03 adopted effective 49:12 Md. R. 642, eff. 6/13/2022