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D.C. Municipal Regulations (Last Updated: September 13, 2017) |
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Title 20. ENVIRONMENT |
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Chapter 20-67. UNDERGROUND STORAGE TANKS - FINANCIAL RESPONSIBILITY |
Section 20-6706. GUARANTEES
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6706.1An owner may satisfy the requirements of § 6700 of this chapter by obtaining a guarantee that conforms to the requirements of this section.
6706.2The guarantor shall be a firm that meets one (1) of the following criteria:
(a)It has a controlling interest in the owner;
(b)It has a controlling interest in a firm that has a controlling interest in the owner;
(c)It is controlled through stock ownership by a common parent firm that possesses a controlling interest in the owner; or
(d)It is engaged in a substantial business relationship with the owner and issues the guarantee as an act incident to that business relationship.
6706.3Each guarantee issued under this section shall be provided in the form prescribed in Appendix 67-3 of this chapter.
6706.4Within one hundred twenty (120) days after the close of each financial reporting year, the guarantor shall demonstrate that it meets the financial test criteria of § 6703 based on year-end financial statements for the latest completed financial reporting year by completing a letter of assurance from the chief financial officer, as described in § 6703.3, and delivering the letter to the owner.
6706.5If the guarantor fails to meet the requirements of the financial test at the end of any financial reporting year, within one hundred twenty (120) days after the end of that financial reporting year, the guarantor shall notify the owner by certified mail (return receipt requested) before cancellation or non-renewal of the guarantee.
6706.6If the Director notifies the guarantor that the guarantor no longer meets the requirements of the financial test of §§ 6704 or 6705 and § 6703.3, the guarantor shall notify the owner by certified mail (return receipt requested) within ten (10) days of receiving the notification from the Director.
6706.7If the guarantor no longer meets the financial test, as provided in §§ 6706.5 or 6706.6, the guarantee shall terminate not less than one hundred twenty (120) days after the date the owner receives the notification, as evidenced by the return receipt. The owner shall obtain alternative coverage, in accordance with the provisions of §§ 6715.3 through 6715.5.
6706.8An owner who uses a guarantee to satisfy the requirements of § 6700 shall establish a standby trust fund when the guarantee is obtained.
6706.9Under the terms of the guarantee, all amounts paid by the guarantor under the guarantee shall be deposited directly into the standby trust fund in accordance with instructions from the Director under § 6712. The standby trust fund shall meet the requirements of § 6711 of this chapter.