7 CCR 1101-14-7-3 - Maintenance of Financial Responsibility
(a)
Substitution of FR Mechanisms.
(1) An
owner/operator may use any alternate FR mechanism specified above provided that
at all times the owner/operator maintains an effective FR mechanism that
satisfies the requirements of C.R.S. ยง
8-20.5-206.
(2) After obtaining alternate FR as specified
in this Article 7, an owner/operator may cancel a prior FR mechanism by
providing notice to the provider of FR.
(b) Cancellation by a Provider of FR.
If a provider of FR cancels or fails to renew for reasons other than incapacity of the provider as specified in subsection (c) below, the owner/operator must obtain alternate coverage within 60 calendar days after receipt of the notice of termination. If the owner/operator fails to obtain alternate coverage within 60 calendar days after receipt of the notice of termination, the owner/operator must notify the Director of such failure and submit:
(1) The name and address of
the provider of FR;
(2) The
effective date of termination; and
(3) The evidence of the FR mechanism subject
to termination, maintained in accordance with subsection (d).
(c) Reporting by Owner/Operator.
(1) An owner/operator must submit current
evidence of FR to the Director:
(i) Within 30
calendar days after the owner/operator identifies a release from an UST or AST,
which is required to be reported under Article 4.
(ii) Within 30 calendar days after the
owner/operator receives notice of any of the following and fails to obtain
alternate coverage as required by Article 7.
(A) Commencement of a voluntary or
involuntary proceeding under Title 11 (Bankruptcy), US Code, naming a provider
of FR as a debtor;
(B) Suspension
or revocation of the authority of a provider of financial responsibility to
issue a FR mechanism; or
(C) Any
other incapacity of a provider of FR. or (iii) As required by 7-2(b)(1) (vii)
and 7-3 (b).
(2) An owner/operator must certify compliance
with the FR requirements of Article 7 as specified in the new tank registration
form when notifying the Director of the installation of a new UST under
2-2-3(f)(3) or new AST under 3-2-4.
(3) The Director may require an
owner/operator to submit evidence of FR as described in subsection (d)(2) or
other information relevant to compliance with Article 7 at any time.
(d) Record keeping.
(1) Owners/operators must maintain evidence
of all FR mechanisms used to demonstrate financial responsibility for an UST or
AST until released under subsection (f). An owner/operator must maintain such
evidence at the site or at the owner's or operator's place of business. Records
maintained off-site must be made available upon request by the
Director.
(2) An owner/operator
must maintain the following types of evidence of FR:
(i) An owner/operator using a financial test
of self-insurance must maintain a copy of the chief financial officer's letter
based on year-end financial statements for the most recent financial reporting
year. Such evidence must be on file no later than 120 calendar days after the
close of the financial reporting year or 30 calendar days from the date of the
financial statement, whichever is earlier.
(ii) An owner/operator using a letter of
credit must maintain a copy of the signed agreement and copies of any
amendments to the agreement.
(iii)
An owner/operator using an insurance policy must maintain a copy of the signed
insurance policy, the certificate of insurance specified in subsection
7-2(b)(2)(iv) and any amendments to the policy.
(e) Drawing on FR Mechanisms.
(1) The Director shall require the insurer,
trustee, or institution issuing a letter of credit or certificate of deposit to
make available the amount of funds stipulated by the Director, up to the limit
of funds provided by the financial responsibility mechanism if:
(i) The owner/operator fails to establish
alternate FR within 60 calendar days after receiving notice of cancellation of
insurance, letter of credit, or other FR mechanism; and
(ii) The Director determines or suspects that
a release from an UST or AST covered by the mechanism has occurred and so
notifies the owner/operator or the owner/operator has notified the Director of
a release from an UST or AST covered by the mechanism.
(2) The Director may draw on these available
funds when:
(i) The Director makes a final
determination that a release has occurred and immediate or long term corrective
action for the release is needed, and the owner/operator, after appropriate
notice and opportunity to comply, has not conducted corrective action as
required; or
(ii) The Director has
received either:
(A) Certification from the
owner/operator, and the third-party liability claimant(s) and from the
attorneys representing the owner/operator and the third-party liability
claimant(s) that a third-party liability claim should be paid; or
(B) A valid final court order establishing a
judgment against the owner/operator for bodily injury or property damage caused
by an accidental release from an UST or AST covered by FR under Article 7; and
the Director determines that the owner/operator has not satisfied the
judgment.
(f) Release from the Requirements. An
owner/operator is no longer required to maintain FR under Article 7 for an UST
or AST after any necessary corrective action has been completed and the tank
has been permanently closed or undergoes a change-in-service as required by
these regulations.
(g) Bankruptcy
or Other Incapacity of Owner/Operator or Provider of FR.
(1) Within 10 calendar days after the
commencement of a voluntary or involuntary proceeding under Title 11
(Bankruptcy), US Code, naming an owner/operator as debtor, the owner/operator
must notify the Director by certified mail of such commencement and submit a
list of all affected UST or AST facilities.
(2) An owner/operator will be deemed to be
without the required FR in the event of a bankruptcy or incapacity of its
provider of FR, or a suspension or revocation of the authority of the provider
of FR to issue an insurance policy, letter of credit, or other FR mechanism.
The owner/operator must obtain alternate FR as specified in Article 7 within 30
calendar days after receiving notice of such an event. If the owner/operator
does not obtain alternate coverage within 30 calendar days after such
notification, the owner/operator must notify the Director
immediately.
(h)
Reestablishment of FR.
(1) Whenever the
required amount of FR has been reduced by payment of claims due to a release at
any facility, and the owner/operator is responsible for another facility or
other facilities then the owner/operator must immediately reestablish the
ability to pay the required amounts for any release at the other
facility(ies).
(2) Whenever the
required amount of FR for the owner/operator of a single facility has been
reduced by payment of claims due to a release at a facility and the period of
corrective action for that release has been completed, the owner/operator must
then immediately reestablish the required amount of FR.
Notes
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