General agency terms are defined in Chapter 3 of this title (relating
to Definitions). Definitions for financial assurance terms that appear throughout
this subchapter may alternatively be found in §37.11 of this title (relating
to Definitions) or in §37.402 of this title (relating to Definitions).
Petroleum UST specific terms may be found in Chapter 334, Subchapter A, §334.2
of this title (relating to Definitions). When used in this subchapter, the
following terms shall have the meanings given below, unless otherwise specified.
(1) Accidental release--Any sudden or nonsudden release of
petroleum from an UST that results in a need for corrective action and/or
compensation for bodily injury or property damage neither expected nor intended
by the tank owner or operator.
(2) Bodily injury--The meaning given to this term by applicable
state law; however, this term shall not include those liabilities which, consistent
with standard insurance industry practices, are excluded from coverage in
liability insurance policies for bodily injury.
(3) Chief financial officer--In the case of local government
owners and operators, the individual with the overall authority and responsibility
for the collection, disbursement, and use of funds by the local government.
(4) Controlling interest--Direct ownership of at least 50%
of the voting stock of another entity.
(5) Financial reporting year--The latest consecutive twelve-month
period for which any of the following reports used to support a financial
test is prepared:
(A) a 10-K report submitted to the United States Securities
and Exchange Commission;
(B) an annual report of tangible net worth submitted to Dun
and Bradstreet; or
(C) annual reports submitted to the Energy Information Administration
or the Rural Electrification Administration. Financial reporting year may
thus comprise a fiscal or calendar year period.
(6) Legal defense cost--any expense that an owner or operator
or provider of financial assurance incurs in defending against claims or actions
brought:
(A) by United States Environmental Protection Agency or a state
to require corrective action or to recover the costs of corrective action;
(B) by or on behalf of a third party for bodily injury or property
damage caused by an accidental release; or
(C) by any person to enforce the terms of a financial assurance
mechanism.
(7) Local government--The meaning given this term by applicable
state law. The term includes:
(A) counties, municipalities, townships, separately chartered
and operated special districts (including local government public transit
systems and redevelopment authorities), and independent school districts authorized
as governmental bodies by state charter or constitution; and
(B) special districts and independent school districts established
by counties, municipalities, townships, and other general purpose governments
to provide essential services.
(8) Occurrence--An accident, including continuous or repeated
exposure to conditions, which result in a release from an UST.
(9) Property damage--The meaning given this term by applicable
state law. This term shall not include those liabilities which, consistent
with standard insurance industry practices, are excluded from coverage in
liability insurance policies for property damage. However, exclusions for
property damage shall not include corrective action associated with releases
from tanks where covered by the policy.
(10) Provider of financial assurance--An entity that provides
financial assurance to an owner or operator of an UST through one of the approved
mechanisms.
(11) Substantial governmental relationship--The extent of a
governmental relationship necessary under applicable state law to make an
added guarantee contract issued incident to that relationship valid and enforceable.
A guarantee contract is issued "incident to that relationship" if it arises
from a clear commonality of interest in the event of an UST release such as
coterminous boundaries, overlapping constituencies, common ground-water aquifer,
or other relationship other than monetary compensation that provides a motivation
for the guarantor to provide a guarantee.
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