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0 0 <br /> DEMONSTRATION OF FINANCIAL RESPONSIBILITY FOR PETROLEUM USTS, <br /> continued <br /> When to submit Submit a current Certification of Financial Responsibility and letter from <br /> the Chief Financial Officer(if using this option)when: <br /> • applying for initial Permit to Operate, or <br /> • applying for renewal Permit to Operate, or <br /> • changes occur in the mechanism(s) used to demonstrated <br /> financial responsibility, or <br /> • requested to do so by the Hazardous Materials Division (HMD). <br /> Note that the CFO letter must be updated annually even though it need <br /> not be sent to us annually. The letter is considered privileged financial <br /> information and will be protected by the HMD from public review. <br /> Fund eligibility To use the Fund as a financial responsibility method, an owner or <br /> operator of a petroleum underground storage tank must achieve and <br /> maintain: <br /> • compliance with UST laws and regulations and <br /> • compliance with applicable financial responsibility requirements. <br /> Other alternatives for For those without the $50,000 net worth necessary to use the CFO <br /> small businesses letter, use of a $5,000 Certificate of Deposit (CD) in conjunction with the <br /> State Fund is a practical solution. The purchaser of the CD must name <br /> the State Water Board as payee and sign an agreement with the Board. <br /> For more information about the CD option or insurance companies that <br /> offer UST insurance that includes corrective action (clean up) and third <br /> party compensation, call Barbara Rinker at the Board -- (916) 341-5648. <br /> Traditional business insurance rarely includes the above coverage. <br /> Summary of The mechanisms listed below may be used separately or combined to <br /> approved achieve financial responsibility compliance. <br /> mechanisms <br /> � ' <br /> MOST POPULAR OTHER OPTIONS LOCAL GOVT <br /> • Financial Test of • Guarantee • Bond Rating Test <br /> Self-Insurance . Surety Bond • Financial Test <br /> • State Clean Up • Trust Fund • Guarantee <br /> Fund with: • Letter of Credit • Government Fund <br /> • Chief Financial Officer . Insurance and Risk <br /> letter or Retention Group <br /> • Certificate of Deposit <br /> Call us at if you require more information on approved <br /> mechanisms. <br />