Section R. 29.2169 - Drawing on financial assurance mechanismsRule 69. Section 280.112 is amended to read as follows:
Section 280.112.
(a) Except as specified in subsection (d) of this section, the director of the implementing agency shall require the guarantor, surety, or institution issuing a letter of credit to place the amount of funds stipulated by the director, up to the limit of funds provided by the financial assurance mechanism, into the standby trust if either of the following provisions applies:(1) The O/O fails to establish alternate financial assurance within 60 days after receiving notice of cancellation of the guarantee, surety bond, letter of credit, or, as applicable, other financial assurance mechanism and the director determines or suspects that a release from an underground storage tank covered by the mechanism has occurred and notifies the O/O of the determination or suspicion or the O/O has notified the director under subpart E or F of these rules of a release from an underground storage tank covered by the mechanism.(2) The conditions of subsection (b)(1) or (2)(i) or (ii) of this section are satisfied.(b) The director of the implementing agency may draw on a standby trust fund when in either of the following situations: (1) The director makes a final determination that a release has occurred and immediate or long-term corrective action for the release is needed, and the O/O, after appropriate notice and opportunity to comply, has not conducted corrective action as required under 40 C.F.R. Part 280, subpart F.(2) The director has received either of the following: (i) Certification from the O/O and the third-party liability claimant or claimants and from attorneys representing the O/O and the third-party liability claimant or claimants that a third-party liability claim should be paid. The certification must be worded as follows, except that instructions in brackets are to be replaced with the relevant information and the brackets deleted: Certification of Valid Claim
The undersigned, as principals and as legal representatives of [insert: owner or operator] and [insert: name and address of third-party claimant], hereby certify that the claim of bodily injury [and/or] property damage caused by an accidental release arising from operating [owner's or operator's] underground storage tank should be paid in the amount of $[ ________ ].
[Signatures]
Owner or operator
Attorney for owner or operator
[Notary] Date
[Signatures]
Claimant(s)
Attorney(s) for claimant(s)
[Notary] Date
(ii) A valid final court order establishing a judgment against the O/O for bodily injury or property damage caused by an accidental release from an underground storage tank covered by financial assurance under this subpart and the director determines that the O/O has not satisfied the judgment.(c) If the director of the implementing agency determines that the amount of corrective action costs and third-party liability claims eligible for payment under subsection (b) of this section may exceed the balance of the standby trust fund and the obligation of the provider of financial assurance, then the first priority for payment shall be corrective action costs necessary to protect human health and the environment. The director shall pay third-party liability claims in the order in which the director receives certifications under subsection (b)(2)(i) of this section and valid court orders under subsection (b)(2)(ii) of this section.(d) A governmental entity acting as guarantor under section 280.106(e), the local government guarantee without standby trust, shall make payments as directed by the director under the circumstances described in section 280.112(a), (b), and (c).Mich. Admin. Code R. 29.2169
1998-2000 AACS; 2018 MR 21, Eff. 11/14/2018