N.Y. Comp. Codes R. & Regs. Tit. 6 §§ 613-8.2

Current through Register Vol. 46, No. 45, November 2, 2024

Section 613-8.2 - Definition of terms

When used in this Subpart, the following terms have the meanings given below:

(a)Accidental release means any sudden or non-sudden release of petroleum arising from operating an underground storage tank that results in a need for corrective action and/or compensation for bodily injury or property damage neither expected nor intended by the tank system owner or operator.

(b)Bodily injury has the meaning given to this term by applicable state law; however, this term does not include those liabilities which, consistent with standard insurance industry practices, are excluded from coverage in liability insurance policies for bodily injury.

(c)Chief Financial Officer, in the case of local government tank system owners and operators, means the individual with the overall authority and responsibility for the collection, disbursement, and use of funds by the local government.

(d)Controlling interest means direct ownership of at least 50 percent of the voting stock of another entity.

(e)Financial reporting year means the latest consecutive twelve-month period for which any of the following reports used to support a financial test is prepared:

(1) a 10-K report submitted to the SEC;

(2) an annual report of tangible net worth submitted to Dun and Bradstreet; or

(3) annual reports submitted to the Energy Information Administration or the Rural Utilities Service.

This term may comprise a fiscal or a calendar year period.

(f)Legal defense cost is any expense that a tank system owner or operator, or provider of financial assurance incurs in defending against claims or actions brought:

(1) by EPA or the state to require corrective action or to recover the costs of corrective action;

(2) by or on behalf of a third party for bodily injury or property damage caused by an accidental release; or

(3) by any person to enforce the terms of a financial assurance mechanism.

(g)Local government includes the following:

(1) counties, municipalities, townships, separately chartered and operated special districts (including local government public transit systems and redevelopment authorities), and independent school districts authorized as governmental bodies by state charter or constitution; and

(2) special districts and independent school districts established by counties, municipalities, townships, and other general purpose governments to provide essential services.

(h)Occurrence means an accident, including continuous or repeated exposure to conditions, which results in a release from an underground storage tank. This definition is intended to assist in the understanding of these regulations and is not intended either to limit the meaning of "occurrence" in a way that conflicts with standard insurance usage or to prevent the use of other standard insurance terms in place of "occurrence."

(i)Petroleum marketing facilities include all facilities at which petroleum is produced or refined and all facilities from which petroleum is sold or transferred to other petroleum marketers or to the public.

(j)Property damage means injury to real or personal property through another's negligence willful destruction, or by some act of nature. This term does not include those liabilities which, consistent with standard insurance industry practices, are excluded from coverage in liability insurance policies for property damage. However, such exclusions for property damage does not include corrective action associated with releases from tanks which are covered by the policy.

(k)Provider of financial assurance means an entity that provides financial assurance to a tank system owner or operator of an underground storage tank through one of the mechanisms listed under subdivision 8.4(d) of this Subpart, including a guarantor, insurer, risk retention group, surety, issuer of a letter of credit, issuer of a state-required mechanism, or a state.

Substantial business relationship means the extent of a business relationship necessary under applicable state law to make a guarantee contract issued incident to that relationship valid and enforceable. A guarantee contract is issued "incident to that relationship" if it arises from and depends on existing economic transactions between the guarantor and the tank system owner or operator.

(l)Substantial governmental relationship means the extent of a governmental relationship necessary under applicable state law to make an added guarantee contract issued incident to that relationship valid and enforceable. A guarantee contract is issued "incident to that relationship" if it arises from a clear commonality of interest in the event of a UST release such as coterminous boundaries, overlapping constituencies, common groundwater aquifer, or other relationship other than monetary compensation that provides a motivation for the guarantor to provide a guarantee.

(m)Tangible net worth means the tangible assets that remain after deducting liabilities; such assets do not include intangibles such as goodwill and rights to patents or royalties. For purposes of this definition, "assets" means all existing and all probable future economic benefits obtained or controlled by a particular entity as a result of past transactions.

(n)Termination, per clause 8.4(d)(3)(ii)(a) of this Subpart, means only those changes that could result in a gap in coverage as where the insured has not obtained substitute coverage or has obtained substitute coverage with a different retroactive date than the retroactive date of the original policy.

N.Y. Comp. Codes R. & Regs. Tit. 6 §§ 613-8.2

Adopted New York State Register July 19, 2023/Volume XLV Issue 29, eff. 10/17/2023