Section 2808.1 - Use of Fund to Meet Financial Responsibility Requirements(a) As an alternative to, or in conjunction with, demonstration of financial responsibility in the manner and through use of other mechanisms authorized by the Federal Act, an owner or operator may demonstrate financial responsibility of up to $1 million through use of the Fund. In order to use the Fund as a basis for demonstration of financial responsibility for taking corrective action and for compensating third parties for bodily injury and property damage, an owner or operator must at all times: (1) demonstrate financial responsibility of at least the following amount per occurrence and per annual aggregate coverage exclusive of the Fund: | Claim Priority Class | Financial Responsibility |
| Pursuant to Section 2811.1 | Amount |
| | |
| Priority Class A | | $-0- |
| Priority Class B | | $ 5,000 |
| Priority Class C | | $ 5,000 |
| Priority Class D | | $10,000 |
If a waiver is granted pursuant to section 2811, subdivision (a)(2)(B), demonstrate financial responsibility of at least twice the above amounts per occurrence and per annual aggregate coverage, exclusive of the Fund.
(2) demonstrate financial responsibility for an additional $1 million, exclusive of the Fund if the owner or operator is required to comply with the provisions of section 2807, subdivision (a)(4); and(3) maintain eligibility to participate in the Fund.(b) An owner or operator may demonstrate the financial responsibility required by subdivisions (a)(1) and (2) of this section through the use of any of the mechanisms authorized by the Federal Act, or through the use of any mechanism specified and approved by the Board. Owners and operators who choose to fulfill financial responsibility requirements in this manner must meet all applicable conditions and requirements, and are subject to all applicable provisions, indicated in the Federal Act.(c) As an alternative to the mechanisms indicated in subdivision (b) of this section, an owner or operator may demonstrate compliance with applicable financial responsibility requirements by demonstration of a tangible net worth of ten times the required minimum applicable annual aggregate coverage required under or pursuant to subdivision (a)(1) of this section. The tangible net worth amount must be calculated on the basis of current market value of tangible assets and must reflect the tangible net worth of the owner or operator as of the close of the latest completed fiscal year used by the owner or operator. In order to utilize the alternative specified in this subdivision, the owner or operator shall ensure that both of the following occur: (1) the chief financial officer or the owner or operator must sign, under penalty of perjury, a letter worded exactly as follows, except that the instructions in brackets are to be replaced by the relevant information and the brackets deleted: LETTER FROM CHIEF FINANCIAL OFFICER
I am the chief financial officer for [insert: business name, business address and correspondence address of the owner or operator]. This letter is in support of the use of the Underground Storage Tank Cleanup Fund to demonstrate financial responsibility for taking corrective action and/or compensating third parties for bodily injury and property damage caused by an unauthorized release of petroleum in the amount of at least [insert: dollar amount] per occurrence and [insert: dollar amount] annual aggregate coverage.
Underground storage tanks at the following facilities are assured by this letter: [insert: the name and address of each facility where the underground storage tanks for which financial responsibility is being demonstrated are located].
1. Amount of annual aggregate coverage being assured by this letter | $ __________ |
2. Total tangible assets | $ __________ |
3. Total liabilities | $ __________ |
4. Tangible net worth (subtract line 3 from line 2. Line 4 must be at least 10 times line 1) | $ __________ |
I hereby certify that the wording of this letter is identical to the wording specified in section 2808.1, subdivision (c)(1), chapter 18, division 3, title 23 of the California Code of Regulations.
I declare under penalty of perjury that the foregoing is true and correct to the best of my knowledge and belief. Executed at [insert: place of execution] on [insert: date].
[Signature]
[Name]
[Title]
(2) the letter must be signed by the date on which the owner or operator commences use of the alternative allowed by this subdivision and the letter must be renewed within 150 days after the close of each subsequent fiscal year so long as the owner or operator continues to use this alternative to demonstrate financial responsibility.(d) If an owner or operator using the alternative provided by subdivision (c) of this section no longer meets applicable tangible net worth requirements based on the net worth of the owner or operator as of the close of the latest completed fiscal year used by the owner or operator, the owner or operator must demonstrate the required financial responsibility by an acceptable alternate mechanism within 150 days of the close of such fiscal year.(e) The Division or any appropriate regulatory agency may require reports of financial condition at any time from an owner or operator. If the Division or regulatory agency finds, on the basis of such reports or other information, that the owner or operator no longer meets the applicable tangible net worth requirements, the owner or operator must demonstrate the required financial responsibility by an acceptable mechanism within 30 days after notification of such finding.(f) If an owner or operator subject to the requirements of subdivisions (d) and (e) of this section cannot demonstrate the required financial responsibility called for by these subdivisions within the time frames stated therein, the owner or operator must notify the Division and any appropriate regulatory agencies within 10 days after expiration of the time frames indicated in subdivisions (d) and (e).Cal. Code Regs. Tit. 23, § 2808.1
1. New section filed 12-2-91 as an emergency; operative 12-2-91. Text remains in effect uninterrupted pursuant to Health and Safety Code section 25299.77 (Register 92, No. 9).
2. Editorial correction deleting duplicate text following HISTORY 1. (Register 92, No. 21).
3. Editorial correction of printing errors in HISTORY 1. (Register 92, No. 43).
4. Amendment of subsections (a)(1), (c), and (d)(1) filed 12-27-94 as an emergency; operative 12-27-94 (Register 94, No. 52). Notwithstanding Chapter 3.5 (commencing with section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, this section shall not be repealed by OAL and shall remain in effect until revised by the State Water Resources Control Board, pursuant to Health and Safety Code section 25299.77, subdivision (b).
5. Repealer and new subsection (a)(1) filed 8-8-96; operative 8-8-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 32).
6. Amendment of section and NOTE filed 10-27-2000; operative 11-26-2000 (Register 2000, No. 43). Note: Authority cited: Section 25299.77, Health and Safety Code. Reference: Sections 25299.31, 25299.32, 25299.33 and 25299.58(d), Health and Safety Code.
1. New section filed 12-2-91 as an emergency; operative 12-2-91. Text remains in effect uninterrupted pursuant to Health and Safety Code section 25299.77 (Register 92, No. 9).
2. Editorial correction deleting duplicate text following History 1. (Register 92, No. 21).
3. Editorial correction of printing errors in History 1. (Register 92, No. 43).
4. Amendment of subsections (a)(1), (c), and (d)(1) filed 12-27-94 as an emergency; operative 12-27-94 (Register 94, No. 52). Notwithstanding Chapter 3.5 (commencing with section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, this section shall not be repealed by OAL and shall remain in effect until revised by the State Water Resources Control Board, pursuant to Health and Safety Code section 25299.77, subdivision (b).
5. Repealer and new subsection (a)(1) filed 8-8-96; operative 8-8-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 32).
6. Amendment of section and Note filed 10-27-2000; operative 11-26-2000 (Register 2000, No. 43).