Section 93.735. Local government fund.

 

(1)  

(a) To use a local government fund to meet the financial responsibility requirements of s. ATCP 93.705 , a local government owner or operator shall establish a dedicated fund account that conforms to the requirements of this section. A dedicated fund may not be commingled with other funds or otherwise used in normal operations, except as specified in par. (c) . A dedicated fund shall be considered eligible if it meets the requirements in one of pars. (b) , (c) or (d) .

(b) 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 petroleum underground storage tanks and is funded for the full amount of coverage required under s. ATCP 93.705 , or funded for part of the required amount of coverage and used in combination with other mechanisms that provide the remaining coverage.

(c)

1. 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 petroleum underground storage tanks, and is funded for 5 times the full amount of coverage required under s. ATCP 93.705 , or funded for part of the required amount of coverage and used in combination with other mechanisms that provide the remaining coverage.

2. If the fund is funded for less than 5 times the amount of coverage required under s. ATCP 93.705 , the amount of financial responsibility demonstrated by the fund may not exceed one-fifth the amount in the fund.

(d)

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 petroleum storage tanks.

2. 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.

3. The amount of each payment shall be determined by the formula (TF - CF)/Y, where TF is the total required financial assurance 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.

4. If the method in this paragraph is chosen, one of the following is also required:

a. 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 petroleum storage tanks.

b. 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 Wisconsin statutes. The letter shall also state that prior voter approval is not necessary before use of the bonding authority.

(2)  To demonstrate that it meets the requirements of the local government fund, the chief financial officer of the local government owner or operator or guarantor shall sign a letter worded exactly as specified in 40 CFR 280.107 (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 280.107 (d) shall be deleted.

CR 07-029 : cr. Register November 2008 No. 635 , eff. 2-1-09; correction in (1) (a), (b), (c) 1., 2. made under s. 13.92 (4) (b) 7. , Stats., Register December 2011 No. 672 ; corrections in (1) (a), (b), (c) 1., 2. 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/cfr.htm . Microsoft Windows NT 6.1.7601 Service Pack 1