(b) If the source of the release is not regulated by the department pursuant to Chapter 6.5 (commencing with Section 25100) of Division 20, the department may waive the financial assurances required by Section 79180 if the department makes one of the following determinations:

1. (1) The responsible party is a small business and demonstrates all of the following:

   1. (A) The responsible party cannot qualify for any of the financial assurance mechanisms set forth in subdivision (b), (c), or (d) of Section 66265.143 of Title 22 of the California Code of Regulations.
   2. (B) The responsible party financially cannot meet the requirements of subdivision (a) of Section 66265.143 of Title 22 of the California Code of Regulations.
   3. (C) The responsible party is not capable of meeting the eligibility requirements set forth in subdivision (e) of Section 66265.143 of Title 22 of the California Code of Regulations.
2. (2) The responsible party is a small business and has demonstrated that the responsible party is financially not capable of establishing one of the financial assurance mechanisms set forth in subdivisions (a) to (e), inclusive, of Section 66265.143 of Title 22 of the California Code of Regulations while at the same time financing the response action applicable to the site.

3. (3) The responsible party is not separately required to demonstrate and maintain a financial assurance mechanism for a response action at a site because all of the following conditions apply:

   1. (A) The site is a multiple responsible party site.
   2. (B) Financial assurances that the response action at the site will be carried out is demonstrated and maintained by a financial assurance mechanism established jointly by all, or some, of the responsible parties.
   3. (C) The financial assurance mechanism specified in subparagraph (B) meets the requirements of Section 79180 and subdivision (b) of Section 79182.
4. (4) The responsible party is a local governmental entity.