COMPLIANCE INFO_2005-2012 - Laserfiche WebLink

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DEMONSTRATION OF FINANCIAL RESPONSIBILITY FOR PETROLEUM LISTS, continued When to submit Submit a current Certification of Financial Responsibility and letter from the Chief Financial Officer(if using this option)when: • applying for initial Permit to Operate, or • applying for renewal Permit to Operate, or • changes occur in the mechanism(s) used to demonstrated financial responsibility, or • requested to do so by the Hazardous Materials Division (HMD). Note that the CFO letter must be updated annually even though it need not be sent to us annually. The letter is considered privileged financial information and will be protected by the HMD from public review. Fund eligibility To use the Fund as a financial responsibility method, an owner or operator of a petroleum underground storage tank must achieve and maintain: • compliance with UST laws and regulations and • compliance with applicable financial responsibility requirements. Other alternatives for For those without the $50,000 net worth necessary to use the CFO small businesses letter, use of a $5,000 Certificate of Deposit (CD) in conjunction with the State Fund is a practical solution. The purchaser of the CD must name the State Water Board as payee and sign an agreement with the Board. For more information about the CD option or insurance companies that offer UST insurance that includes corrective action (clean up) and third party compensation, call Barbara Rinker at the Board -- (916) 341-5648. Traditional business insurance rarely includes the above coverage. Summary of The mechanisms listed below may be used separately or combined to approved achieve financial responsibility compliance. mechanisms Ad E1.�EG WIS P ' MOST POPULAR OTHER OPTIONS LOCAL GOVT • Financial Test of Guarantee • Bond Rating Test Self-Insurance Surety Bond • Financial Test • State Clean Up Trust Fund • Guarantee Fund with: • Letter of Credit • Government Fund • Chief Financial Officer ® Insurance and Risk letter or Retention Group • Certificate of Deposit Call us at if you require more information on approved mechanisms.