1. (1) To use a guarantee to meet the financial responsibility requirements of s. ATCP 93.705, a local government owner or operator shall obtain a guarantee that conforms to the requirements of this section. The guarantor shall be either the state in which the local government owner or operator is located or a local government having a substantial governmental relationship with the owner and operator and issuing the guarantee as an act incident to that relationship.

2. (2) A local government acting as the guarantor shall do one of the following:

   1. (a) Demonstrate that it meets the bond rating test requirement of s. ATCP 93.727 and deliver a copy of the chief financial officer’s letter as contained in s. ATCP 93.727 (4) or (5) to the local government owner or operator.
   2. (b) Demonstrate that it meets the worksheet test requirements of s. ATCP 93.730 and deliver a copy of the chief financial officer’s letter as contained in s. ATCP 93.730 (4) to the local government owner or operator.
   3. (c) Demonstrate that it meets the local government fund requirements of s. ATCP 93.735 (1) and deliver a copy of the chief financial officer’s letter as contained in s. ATCP 93.735 (2) to the local government owner or operator.
3. (3) If the local government guarantor is unable to demonstrate financial assurance under any of s. ATCP 93.727, 93.730 or 93.735 (1) at the end of the financial reporting year, the guarantor shall send by certified mail, before cancellation or non-renewal of the guarantee, notice to the owner or operator. 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. The owner or operator shall obtain alternative coverage as specified in s. ATCP 93.753.

4. (4)

   1. (a) The guarantee agreement shall be worded as specified in subs. (5) to (8), depending on which of the following alternative guarantee arrangements is selected:

      1. 1. If, in the default or incapacity of the owner or operator, the guarantor guarantees to fund a standby trust as directed by the department, the guarantee shall be worded as specified in sub. (5) or (6).
      2. 2. If, in the default or incapacity of the owner or operator, the guarantor guarantees to make payments as directed by the department for taking corrective action or compensating third parties for bodily injury and property damage, the guarantee shall be worded as specified in sub. (7) or (8).

   2. (b) The local government guarantor shall sign a guarantee that is identical to the guarantee specified in the CFR section referenced in subs. (5) to (8), except for the following:

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

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

         2. b. Certification that wording is identical to the wording required in 40 CFR 280.106 (d) or 40 CFR 280.106 (e) 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. There are 2 different documents specified in 40 CFR 280.106.

5. (5) If the guarantor is a state, the local government guarantee with standby trust shall be identical to the wording found in 40 CFR 280.106 (d), except as modified under sub. (4).

   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.

6. (6) If the guarantor is a local government, the local government guarantee with standby trust shall be identical to the wording found in 40 CFR 280.106 (d), except as modified under sub. (4).

   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.

7. (7) If the guarantor is a state, the local government guarantee without standby trust shall be identical to the wording found in 40 CFR 280.106 (e), except as modified under sub. (4).

   Note: A link to 40 CFR 280 is available at the following Web site: http://www.epa.gov/oust/fedlaws/cfr.htm.

8. (8) If the guarantor is a local government, the local government guarantee without standby trust shall be identical to the wording found in 40 CFR 280.106 (e), except as modified under sub. (4).

   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.

History

History: CR 17-092: cr. Register October 2019 No. 766, eff. 11-1-19; correction in (4) (a) made under s. 35.17, Stats., Register October 2019 No. 766.