Section 329IAC9-8-3. Definitions

   (a) The definitions in this section apply throughout this rule.

  (b) "Accidental release" means any:

(1) sudden; or

(2) nonsudden;

release of petroleum from an underground storage tank that results in a need for corrective action or compensation or both for bodily injury or property damage neither expected nor intended by the tank owner or operator.

  (c) "Bodily injury" has the meaning given to this term by applicable state law; however, this term must not include those liabilities that, consistent with standard insurance industry practices, are excluded from coverage in liability insurance policies for bodily injury.

  (d) "Chief financial officer", in the case of a local government owner and operator, means the individual with the overall authority and responsibility for the collection, disbursement, and use of funds by the local government.

  (e) "Commissioner" means the commissioner of the department of environmental management as created under IC 13-13-1-1.

  (f) "Controlling interest" means direct ownership of at least fifty percent (50%) of the voting stock of another entity.

  (g) "Financial reporting year" means the latest consecutive twelve (12) month fiscal or calendar year period for which any of the following reports used to support a financial test is prepared:

(1) A 10-K report submitted to the U.S. Securities and Exchange Commission (SEC).

(2) An annual report of tangible net worth submitted to Dun and Bradstreet.

(3) Annual reports submitted to the Energy Information Administration or the Rural Utilities Service of the United States Department of Agriculture (formerly the Rural Electrification Administration).

  (h) "Legal defense cost" means any expense that an owner or operator, or provider of financial assurance incurs in defending against claims or actions brought by any of the following:

(1) By the United States Environmental Protection Agency (EPA) or Indiana to require corrective action or recover the costs of corrective action.

(2) By or on behalf of a third party for bodily injury or property damage caused by an accidental release.

(3) By any person to enforce the terms of a financial assurance mechanism.

  (i) "Local government" includes any of the following:

(1) City.

(2) County.

(3) County solid waste management district.

(4) Joint solid waste management district.

(5) Municipal corporation.

(6) Municipality.

(7) School corporation.

(8) Special district.

(9) Special taxing district.

(10) Town.

(11) Township.

(12) Unit.

(13) Indian tribe.

(14) Any other legal entity given this term by applicable state law.

  (j) "Occurrence" means an accident, including continuous or repeated exposure to conditions, that results in a release from an underground storage tank. The definition of this term is intended to assist in the understanding of this rule and is not intended either to limit the meaning of occurrence in a way that conflicts with standard insurance usage or to prevent the use of other standard insurance terms in place of occurrence.

  (k) "Owner or operator", when the owner or operator are separate parties, means the party that is obtaining or has obtained financial assurance.

  (l) "Petroleum marketing facilities" means all facilities at which petroleum is produced or refined and all facilities from which petroleum is sold or transferred to other petroleum marketers or to the public.

  (m) "Petroleum marketing firms" means all firms owning petroleum marketing facilities. Firms owning other types of facilities with underground storage tanks as well as petroleum marketing facilities are considered to be petroleum marketing firms.

  (n) "Property damage" has the meaning given this term by applicable state law. This term must not include those liabilities that, consistent with standard insurance industry practices, are excluded from coverage in liability insurance policies for property damage. However, such exclusions for property damage must not include corrective action associated with releases from tanks covered by the policy.

  (o) "Provider of financial assurance" means an entity that provides financial assurance to an owner or operator of an underground storage tank through one (1) of the mechanisms listed in sections 6 through 13 of this rule, including any of the following:

(1) Guarantor.

(2) Insurer.

(3) Risk retention group.

(4) Surety.

(5) Issuer of a letter of credit.

(6) Issuer of a state-required mechanism.

(7) State.

  (p) "Substantial governmental relationship" means the extent of a governmental relationship necessary under applicable state law to make an added guarantee contract issued incident to that relationship valid and enforceable. A guarantee contract is issued incident to that relationship if it arises from a clear commonality of interest in the event of an underground storage tank release, including any of the following:

(1) Coterminous boundaries.

(2) Overlapping constituencies.

(3) Common ground water aquifer.

(4) Other relationship other than monetary compensation that provides a motivation for the guarantor to provide a guarantee.

  (q) "Tangible net worth" means the tangible assets that remain after deducting liabilities; such assets do not include intangibles such as goodwill and rights to patents or royalties. As used in this subsection, "assets" means all existing and all probable future economic benefits obtained or controlled by a particular entity as a result of past transactions.

  (r) "Termination", under section 8(b) of this rule, means only those changes that could result in a gap in coverage as where the insured has:

(1) not obtained substitute coverage; or

(2) obtained substitute coverage with a different retroactive date than the retroactive date of the original policy.

(Solid Waste Management Division; 329 IAC 9-8-3; filed Jul 19, 1999, 12:00 p.m.: 22 IR 3728; errata filed Sep 10, 1999, 9:08 a.m.: 23 IR 26; readopted filed Jan 10, 2001, 3:25 p.m.: 24 IR 1535)