1. (1) To use a guarantee to meet the financial responsibility requirements of s. ATCP 93.705, an owner or operator shall obtain a guarantee that conforms to the requirements of this section. The guarantor shall be a firm that is engaged in a substantial business relationship with the owner or operator and issues the guarantee as an act incident to that business relationship or the guarantor shall be a firm that meets at least one of the following requirements:

   1. (a) The firm possesses a controlling interest in the owner or operator.
   2. (b) The firm possesses a controlling interest in a firm described under par. (a).
   3. (c) The firm is controlled through stock ownership by a common parent firm that possesses a controlling interest in the owner or operator.

2. (2)

   1. (a) Within 120 days of the close of each financial reporting year, the guarantor shall demonstrate that it meets the financial test criteria of s. ATCP 93.710 based on year-end financial statements for the latest completed financial reporting year by completing the letter from the chief financial officer described in s. ATCP 93.710 (4), and the guarantor shall deliver the letter to the owner or operator.
   2. (b) If the guarantor fails to meet the requirements of the financial test at the end of any financial reporting year, within 120 days of the end of that financial reporting year, the guarantor shall send notice by certified mail to the owner or operator before cancellation or non-renewal of the guarantee.
   3. (c) If the department notifies the guarantor that he or she no longer meets the requirements of the financial test of s. ATCP 93.710 (2) or (3), the guarantor shall notify the owner or operator within 10 days of receiving such notification from the department.
   4. (d) Under either par. (b) or (c), the guarantee shall terminate no less than 120 days after the date the owner or operator receives the notification as evidenced by the return receipt.
   5. (e) The owner or operator shall obtain alternative coverage as specified in s. ATCP 93.753.

3. (3) The guarantee shall be worded exactly as found in 40 CFR 280.96 (c) except for the following:

   1. (a) The instructions in brackets in the guarantee shall be replaced by the relevant information and the brackets deleted.

   2. (b) If financial responsibility for aboveground tanks within the scope of this subchapter is demonstrated using this method, all of the following changes shall be made:

      1. 1. Reference in the guarantee to underground tanks shall be amended to refer to aboveground tanks.

      2. 2. Certification that wording is identical to the wording required in 40 CFR 280.96 (c) shall be deleted.

         Note: A link to 40 CFR 280 is available at the following Web site: https://www.ecfr.gov/current/title-40/chapter-I/subchapter-I/part-280.

4. (4)

   1. (a) An owner or operator who uses a guarantee to satisfy the requirements of s. ATCP 93.705 shall establish a standby trust fund when the guarantee is obtained.
   2. (b) Under 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 department under s. ATCP 93.747.
   3. (c) This standby trust fund shall meet the requirements for standby trust funds in s. ATCP 93.725.

History

History: CR 17-092: cr. Register October 2019 No. 766, eff. 11-1-19.