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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 20-6712. DRAWING ON FINANCIAL ASSURANCE MECHANISM
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6712.1The Director shall require a guarantor, surety, or issuer of a letter of credit to place the amount of funds stipulated by the Director, up to the limit of funds provided by the financial assurance mechanism, into the standby trust if both of the following occur:
(a)The owner fails to establish alternate financial assurance within sixty (60) days after receiving notice of cancellation of the guarantee, surety bond, letter of credit, or, as applicable, other financial assurance mechanism; and
(b)The Director determines or suspects that a release from an underground storage tank covered by the mechanism has occurred and so notifies the owner or operator, or the owner or operator has notified the Director of a release from an underground storage tank covered by the assurance mechanism.
6712.2The Director shall require a guarantor, surety, or person issuing a letter of credit to place a specified amount of funds, up to the limit of funds provided by the financial assurance mechanism, into a standby trust if either of the following occurs:
(a)The Director makes a final determination that a release has occurred, that corrective action for the release is needed, and the owner or operator, after appropriate notice and opportunity to comply, has not conducted the required corrective action under Chapter 62; or
(b)The Director has received either of the following:
(1)Certification that a third-party liability claim should be paid, in accordance with § 6712.3(b)(1); or
(2)A valid final court order establishing a judgment against the owner or operator, and the Director determines that the owner or operator has not satisfied the judgment.
6712.3The Director may draw on a standby trust fund when either of the following occurs:
(a)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 or operator, after appropriate notice and opportunity to comply, has not conducted corrective action as required under Chapter 62; or
(b)The Director has received either of the following:
(1)Certification from the owner, the third-party liability claimant(s), and the attorney(s) representing the owner and the third-party liability claimant(s) that a third-party liability claim should be paid. The certification shall be in the form prescribed in Appendix 67-9 to this chapter; or
(2)A valid final court order establishing a judgment against the owner or operator for bodily injury or property damage caused by an accidental release from an underground storage tank covered by financial assurance under this chapter, and the Director determines that the owner or operator has not satisfied the judgment.
6712.4If the Director determines that the amount of corrective action costs and third-party liability claims eligible for payment as provided in § 6712.3(b) of this section may exceed the balance of the standby trust fund and the obligation of the provider of financial assurance, the first priority for payment shall be corrective action costs necessary to protect human health and the environment.
6712.5The Director shall pay third-party liability claims in the order in which the Director receives certifications and valid court orders under § 6712.3(b).