(a) Subject to the limitations of subsections (b) and (c) of
this section:
(1) an owner or operator, including a local government owner
or operator, may use any one or combination of the mechanisms listed in §37.825
of this title (relating to Financial Test of Self-Insurance), §37.830
of this title (relating to Guarantee), §37.835 of this title (relating
to Insurance and Risk Retention Group Coverage), §37.840 of this title
(relating to Surety Bond), §37.845 of this title (relating to Letter
of Credit), §37.850 of this title (relating to Trust Fund), and §37.855
of this title (relating to Standby Trust Fund) to demonstrate financial assurance
under this subchapter for one or more underground storage tank (UST) systems;
and
(2) A local government owner or operator may use any one or
a combination of the mechanisms listed in 40 Code of Federal Regulations §§280.104-280.107
(relating to Local Government Bond Rating Test, Local Government Financial
Test, Local Government Guarantee, Local Government Fund, respectively) to
demonstrate financial assurance under this subchapter for one or more USTs.
(b) An owner or operator may use a guarantee or surety bond
to establish financial assurance only if the Attorney General of Texas has
submitted a written statement to the agency that a guarantee or surety bond
executed as described in this section is a legally valid and enforceable obligation
in the state.
(c) An owner or operator may use self-insurance in combination
with a guarantee only if, for the purpose of meeting the requirements of the
financial test under this rule, the financial statements of the owner or operator
are not consolidated with the financial statements of the guarantor.
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