D.C. Mun. Regs. tit. 20, § 6704
Financial Test of Self-insurance: Test A
Effective Feb 21, 202067 DCR 1778Authority: Section 107 of the District Department of the Environment Establishment Act of 2005, effective February 15, 2006 (D.C. Law 16-51; D.C. Official Code § 8-151.07 (2013 Repl. & 2019 Supp.)); the District of Columbia Underground Storage Tank Management Act of 1990, effective March 8, 1991 (D.C. Law 8-242; D.C. Official Code §§ 8-113.01 et seq. (2013 Repl.)); Sections 11 and 21 of the Water Pollution Control Act of 1984, effective March 16, 1985 (D.C. Law 5-188; D.C. Official Code §§ 8-103.10 & 8-103.20 (2013 Repl.)); and Mayor's Order 2006-61, dated June 14, 2006. Source: Final Rulemaking published at 43 DCR 2799 (May 24, 1996), incorporating text of Proposed Rulemaking published at 42 DCR 5765 (October 20, 1995); as amended by Final Rulemaking published at 46 DCR 7699 (October 1, 1999); as amended by Final Rulemaking published at 67 DCR 1778 (February 21, 2020).District of Columbia, Office of the Secretary
6704.1 To meet financial Test A, the owner, guarantor, or both shall have a tangible net worth of at least ten (10) times the sum of the following:
- (a) The total of the applicable aggregate amount required by § 6700, based on the number of USTs for which a financial test is used to demonstrate financial responsibility to the Department;
- (b) The sum of the corrective action cost estimates, the current closure and post-closure care cost estimates, and the amount of liability coverage for which a financial test is used to demonstrate financial responsibility to the Department; and
- (c) The sum of current plugging and abandonment cost estimates for which a financial test is used to demonstrate financial responsibility to the Department.
6704.2 The owner or guarantor seeking to meet financial Test A shall have a tangible net worth of at least ten million dollars ($10,000,000).
6704.3 The owner or guarantor seeking to meet financial Test A shall have a letter of assurance signed by the chief financial officer in the form specified by Appendix 67-2 (Financial Test of Self-Insurance Letter from Chief Financial Officer).
6704.4 The owner or guarantor seeking to meet financial Test A must either:
- (a) File financial statements annually with the U.S. Securities and Exchange Commission, the Energy Information Administration, or the Rural Utilities Service; or
- (b) Report the firm's tangible net worth annually to Dun and Bradstreet, and Dun and Bradstreet must have assigned the firm a financial strength rating of 4A or 5A.
6704.5 The owner or guarantor seeking to meet financial Test A cannot have year-end financial statements, if independently audited, that include an adverse auditor's opinion, a disclaimer of opinion, or a "going concern" qualification.
SOURCE: Final Rulemaking published at 43 DCR 2799 (May 24, 1996), incorporating text of Proposed Rulemaking published at 42 DCR 5765, 5773 (October 20, 1995); as amended by Final Rulemaking published at 46 DCR 7699 (October 1, 1999); as amended by Final Rulemaking published at 67 DCR 1778 (February 21, 2020).