HAR §11-280.1-95. 11-261

1-1, 40 C.F.R. sections 264.101, 264.143, 264.145, and 264.147, as incorporated and amended in section 11-264.1-1, and 40 C.F.R. sections 265.143, 265.145, and 265.147, as incorporated and amended in section 11-265.1-1, to EPA under 40 C.F.R. sections 261.143, 261.147, 264.101, 264.143, 264.145, 264.147, 265.143, 265.145, and 265.147, or to a state implementing agency under a state program authorized by EPA under 40 C.F.R. part 271; and (C) The sum of current plugging and abandonment cost estimates for which a financial test is used to demonstrate financial responsibility to EPA under 40 C.F.R. section 144.63 or to a state implementing agency under a state program authorized by EPA under 40 C.F.R. part 145. (2) The owner or operator, and/or guarantor, must have a tangible net worth of at least $10,000,000. (3) The owner or operator, and/or guarantor, must have a letter signed by the chief financial officer worded as specified in subsection (d). (4) The owner or operator, and/or guarantor, must either: (A) File financial statements annually with the U.S. Securities and Exchange Commission, the Energy Information Administration, or the Rural Utilities Service; or (B) Report annually the firm's tangible net worth to Dun and Bradstreet, and Dun and Bradstreet must have assigned the firm a financial strength rating of 4A or SA. (5} The firm's year-end financial statements, if independently audited, cannot include an 280.1-104 3 5 8 4 §11-280.1-95 adverse auditor's opinion, a disclaimer of opinion, or a "going concern" qualification. (c) (1) The owner or operator, and/or guarantor, must meet the financial test requirements of 40 C.F.R. section 264.147(f) (1), as incorporated and amended in chapter 11-264.1, substituting the appropriate amounts specified in section 11-280.1-93(b) (1) and (2) for the "amount of liability coverage" each time specified in that section. (2) The fiscal year-end financial statements of the owner or operator, and/or guarantor, must be examined by an independent certified public accountant and be accompanied by the accountant's report of the examination. (3) The firm's year-end financial statements cannot include an adverse auditor's opinion, a disclaimer of opinion, or a "going concern" qualification. (4) The owner or operator, and/or guarantor, must have a letter signed by the chief financial officer, worded as specified in subsection (d) . ( 5) If the financial statements of the owner or operator, and/or guarantor, are not submitted annually to the U.S. Securities and Exchange Commission, the Energy Information Administration or the Rural Utilities Service, the owner or operator, and/or guarantor, must obtain a special report by an independent certified public accountant stating that: (A) 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, and/or guarantor, with the amounts in such financial statements; and (B) In connection with that comparison, no 280.1-105 §11-280.1-95 matters came to the accountant's attention which caused the accountant to believe that the specified data should be adjusted. (d) To demonstrate that it meets the financial test under subsection (bl or (c), the chief financial officer of the owner or operator, or guarantor, must sign, within one hundred twenty days of the close of each financial reporting year, as defined by the twelve-month period for which financial statements used to support the financial test are prepared, a letter worded exactly as follows, except that the instructions in brackets are to be replaced by the relevant information and the brackets deleted: LETTER FROM CHIEF FINANCIAL OFFICER I am the chief financial officer of [insert: name and address of the owner or operator, or guarantor]. This letter is in support of the use of [insert: "the financial test of self-insurance" or "guarantee" or both] to demonstrate financial responsibility for [insert: "taking corrective action" or "compensating third parties for bodily injury and property damage" or both] caused by [insert: "sudden accidental releases" or "nonsudden accidental releases" or "accidental releases"] in the amount of at least [insert: dollar amount] per occurrence and [insert: dollar amount] annual aggregate arising from operating (an) underground storage tank(s). Underground storage tanks at the following facilities are assured by this financial test, or a corresponding financial test under EPA or another authorized state program, by this [insert: "owner or operator" or "guarantor"]: [List for each facility: the name and address of the facility where tanks assured by this financial test are located, and whether tanks are assured by this financial test or a corresponding financial test under EPA or under a state program approved under 40 C.F.R. part 281. If separate mechanisms or combinations of 280.1-106 3 5 8 4 §11-280.1-95 mechanisms are being used to assure any of the tanks at this facility, list each tank assured by this financial test by the tank identification number provided in the notification submitted pursuant to section 3421-30, Hawaii Revised Statutes, or 40 C.F.R. section 280.22, or in the permit applications submitted under sections 11-280.1-324 and 11-280.1-326.] A (insert: "financial test" and/or "guarantee"] is also used by this [insert: "owner or operator" or "guarantor"] to demonstrate evidence of financial responsibility in the following amounts under other EPA regulations or state programs authorized by EPA under 40 C.F.R. parts 271 and 145: EPA Regulations: Closure (§§261.143, 264.143, and 265.143) Post-Closure Care (§§264.145 and 265.145) Liability Coverage (§§261.147, 264.147, and 265.147) Corrective Action (§264.l0l(b)) Plugging and Abandonment (§144.63) Authorized State Programs: Closure Post-Closure Care Liability Coverage Corrective Action Plugging and Abandonment TOTAL Amount $ $ $ $ $ $ $ $ $ $ $ This [insert: "owner or operator" or "guarantor") has not received an adverse opinion, a disclaimer of opinion, or a "going concern" qualification from an independent auditor on his or her financial statements for the latest completed fiscal year. 280.1-107 3 5 8 L §11-280.1-95 [Fill in the information for Alternative I if the criteria of subsection (b} are being used to demonstrate compliance with the financial test requirements. Fill in the information for Alternative II if the criteria of subsection (c} are being used to demonstrate compliance with the financial test requirements.] ALTERNATIVE I Amount 1. Amount of annual UST aggregate $ coverage being assured by a financial test, or guarantee or both 2. Amount of corrective action, closure $ and post-closure care costs, liability coverage, and plugging and abandonment costs covered by a financial test, or guarantee or both 3. Sum of lines 1 and 2 $ 4. Total tangible assets $ 5. Total liabilities [if any of the $ amount reported on line 3 is included in total liabilities, you may deduct that amount from this line and add that amount to line 6) 6. Tangible net worth [subtract line 5 from line 4) 7. Is line 6 at least $10,000,000? 8. Is line 6 at least ten times line 3? $ Yes Yes No No 9. Have financial statements for the Yes No latest fiscal year been filed with the U.S. Securities and Exchange Commission? 10. Have financial statements for the Yes No latest fiscal year been filed with the federal Energy Information Administration? 11. Have financial statements for the Yes No latest fiscal year been filed with the federal Rural Utilities Service? 280.1-108 a 5 B 4