Section 93.710. Financial test of self-insurance.

 

(1)  To use the financial test of self-insurance to meet the financial responsibility requirements of s. ATCP 93.705 , an owner or operator, or guarantor, or both, shall meet the criteria of either sub. (2) or (3) based on year-end financial statements for the latest completed fiscal year.

(2)  

(a) The owner or operator, or guarantor, or both, shall have a tangible net worth of at least 10 times each one of the following:

1. The total of the applicable aggregate amount required by s. ATCP 93.705 , based on the number of storage tank systems for which a financial test is used to demonstrate financial responsibility to the department.

2. The sum of the corrective action cost estimates, the current closure and post-closure care cost estimates, and amount of liability coverage for which a financial test is used to demonstrate financial responsibility to the department.

3. The sum of current plugging and abandonment cost estimates for which a financial test is used to demonstrate financial responsibility to the department.

(b) The owner or operator, or guarantor, or both, shall have a tangible net worth of at least $10 million.

(c) The owner or operator, or guarantor, or both, shall have a letter signed by the chief financial officer as specified in sub. (4) .

(d) The owner or operator, or guarantor, or both, shall do one of the following:

1. File financial statements annually with the U.S. securities and exchange commission, energy information administration, or rural electrification administration.

2. Report annually the firm's tangible net worth to Dun and Bradstreet, if Dun and Bradstreet has assigned the firm a financial strength rating of 4A or 5A.

(e) The firm's year-end financial statements, if independently audited, may not include an adverse auditor's opinion, a disclaimer of opinion, or a going concern qualification.

(3)  

(a) The owner or operator, or guarantor, or both, shall meet the financial test requirements of 40 CFR 264.147 (f)(1), substituting the appropriate amounts specified in s. ATCP 93.705 (2) or (3) for the amount of liability coverage each time specified in that section.

(b) The fiscal year-end financial statements of the owner or operator, or guarantor, or both, shall be examined by an independent certified public accountant and be accompanied by the accountant's report of the examination.

(c) The firm's year-end financial statements may not include an adverse auditor's opinion, a disclaimer of opinion, or a going concern qualification.

(d) The owner or operator, or guarantor, or both, shall have a letter signed by the chief financial officer as specified in sub. (4) .

(e) If the financial statements of the owner or operator or guarantor, or both, are not submitted annually to the U.S. securities and exchange commission, energy information administration or rural electrification administration, the owner or operator, or guarantor, or both, shall obtain a special report by an independent certified public accountant stating all of the following:

1. The accountant has compared the data that the letter from the chief financial officer specifies as having been derived from the latest year-end financial statements of the owner or operator, or guarantor, or both, with the amounts in such financial statements.

2. In connection with that comparison, no matters came to the attention of the accountant which caused him or her to believe that the specified data should be adjusted.

(4)  To demonstrate that the financial test is met under sub. (2) or (3) , the chief financial officer of the owner or operator, or guarantor, shall sign, within 120 days of the close of each financial reporting year, as defined by the 12-month period for which financial statements used to support the financial test are prepared, a letter worded exactly as found in 40 CFR 280.95 (d) except for the following:

(a) The instructions in brackets in the letter shall be replaced by the relevant information and the brackets deleted.

(b) If financial responsibility for aboveground tanks within the scope of this subchapter is demonstrated using this method, all of the following changes shall be made:

1. Reference in the letter to underground tanks shall be amended to refer to aboveground tanks.

2. Certification that wording is identical to the wording required in 40 CFR 280.95 (d) shall be deleted.

(5)  If an owner or operator using the test to provide financial assurance finds that he or she no longer meets the requirements of the financial test based on the year-end financial statements, the owner or operator shall obtain alternative coverage within 150 days of the end of the year for which financial statements have been prepared.

(6)  The department may require reports of financial condition at any time from the owner or operator, or guarantor, or both. If the department finds, on the basis of such reports or other information, that the owner or operator, or guarantor, or both, no longer meet the financial test requirements of either sub. (2) or (3) , and sub. (4) , the owner or operator shall obtain alternate coverage within 30 days after notification of such a finding.

(7)  If the owner or operator fails to obtain alternate assurance within 150 days of finding that he or she no longer meets the requirements of the financial test based on the year-end financial statements, or within 30 days of notification by the department that he or she no longer meets the requirements of the financial test, the owner or operator shall notify the department of such failure within 10 days.

CR 07-029 : cr. Register November 2008 No. 635 , eff. 2-1-09; correction in (1), (2) (a) 1., (3) (a) made under s. 13.92 (4) (b) 7. , Stats., Register December 2011 No. 672 ; corrections in (1), (2) (a) 1., (3) (a) made under s. 13.92 (4) (b) 7. , Stats., Register October 2013 No. 694 .

Note

A link to 40 CFR 280 is available at the following U.S. EPA Web site: http://www.epa.gov/oust/fedlaws/otgg_final080807.pdf Microsoft Windows NT 6.1.7601 Service Pack 1