Section 329IAC9-8-17. Local government fund

   (a) A local government owner or operator may satisfy the requirements of section 4 of this rule by establishing a dedicated fund account that conforms to this section. Except as specified in subdivision (2), a dedicated fund must not be commingled with other funds or otherwise used in normal operations. A dedicated fund is considered eligible if it meets one (1) of the following requirements:

(1) The fund is:

(A) dedicated by:

(i) state constitutional provision; or

(ii) local government:

(AA) statute;

(BB) charter;

(CC) ordinance; or

(DD) order;

(B) established 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

(C) funded for:

(i) the full amount of coverage required under section 4 of this rule; or

(ii) part of the required amount of coverage and used in combination with another mechanism that provides the remaining coverage.

(2) The fund is:

(A) dedicated by:

(i) state constitutional provision; or

(ii) local government:

(AA) statute;

(BB) charter;

(CC) ordinance; or

(DD) order;

(B) established 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

(C) funded for either of the following:

(i) Five (5) times the full amount of coverage required under section 4 of this rule.

(ii) Part of the required amount of coverage and used in combination with another mechanism that provides the remaining coverage. If the fund is funded for less than five (5) times the amount of coverage required under section 4 of this rule, the amount of financial responsibility demonstrated by the fund must not exceed one-fifth (¹/5) the amount in the fund.

(3) The following requirements must be completed:

(A) The fund is dedicated by:

(i) state constitutional provision; or

(ii) local government:

(AA) statute;

(BB) charter;

(CC) ordinance; or

(DD) order.

(B) The fund is established 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.

(C) A payment is made to the fund once every year for seven (7) years until the fund is fully funded. This seven (7) year period is hereafter referred to as the "pay-in-period". The amount of each payment must be determined by the following formula:

TF - CF

Y

Where:	TF	=	Total required financial assurance for the owner or operator.
	CF	=	Current amount in the fund.
	Y	=	Number of years remaining in the pay-in-period.

(D) The local government owner or operator shall meet one (1) of the following requirements:

(i) 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), that meets the following requirements:

(AA) The bonding authority is for an amount equal to the difference between the required amount of coverage and the amount held in the dedicated fund.

(BB) The bonding authority must 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 underground storage tanks.

(ii) The local government owner or operator has a letter signed by the appropriate state attorney general that states the following:

(AA) The use of the bonding authority will not increase the local government's debt beyond the legal debt ceilings established by the relevant state laws.

(BB) Prior voter approval is not necessary before use of the bonding authority.

  (b) To demonstrate that it meets the requirements of the local government fund, the chief financial officer of the:

(1) local government owner or operator and local government guarantor;

(2) local government owner or operator; or

(3) local government guarantor;

shall sign 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 local government owner or operator or guarantor]. This letter is in support of the use of the local government fund mechanism to demonstrate financial responsibility for [insert "taking corrective action" or "compensating third parties for bodily injury and property damage" or both of those phrases] caused by [insert "sudden accidental releases" or "nonsudden accidental releases" or both of those phrases] 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 local government fund mechanism: [List for each facility the name and address of the facility where tanks are assured by the local government fund.]

[Insert "The local government fund is funded for the full amount of coverage required under 329 IAC 9-8-4, or funded for part of the required amount of coverage and used in combination with other mechanism(s) that provide the remaining coverage" or "The local government fund is funded for ten (10) times the full amount of coverage required under 329 IAC 9-8-4, or funded for part of the required amount of coverage and used in combination with other mechanisms(s) that provide the remaining coverage" or "A payment is made to the fund once every year for seven (7) years until the fund is fully funded and [insert name of local government owner or operator] has available bonding authority, approved through voter referendum, of an amount equal to the difference between the required amount of coverage and the amount held in the dedicated fund" or "A payment is made to the fund once every year for seven (7) years until the fund is fully funded and I have attached a letter signed by the state attorney general stating that:

1. the use of the bonding authority will not increase the local government's debt beyond the legal debt ceilings established by the relevant state laws; and

2. prior voter approval is not necessary before use of the bonding authority".]

The details of the local government fund are as follows:

Amount in fund (market value of fund at close of last fiscal year):

[If fund balance is incrementally funded as specified in 329 IAC 9-8-17(a)(3), insert:

Amount added to fund in the most recently completed fiscal year:

Number of years remaining in the pay-in-period: ____.]

A copy of the state constitutional provision, or local government statute, charter, ordinance, or order dedicating the fund is attached.

I hereby certify that the wording of this letter is identical to the wording specified in 329 IAC 9-8-17(b) as such regulations were constituted on the date shown immediately below.

[Date]

[Signature]

[Name]

[Title]

(Solid Waste Management Division; 329 IAC 9-8-17; filed Jul 19, 1999, 12:00 p.m.: 22 IR 3755; readopted filed Jan 10, 2001, 3:25 p.m.: 24 IR 1535)