ATCP 93.720(1)(1)
To use a letter of credit to meet the financial responsibility requirements of s.
ATCP 93.705, an owner or operator shall obtain an irrevocable standby letter of credit that conforms to the requirements of this section. The issuing institution shall be authorized to issue letters of credit in each state where the letters are used and the institution's letter of credit operations shall be regulated and examined by a federal or state agency.
ATCP 93.720(2)(a)
(a) The instructions in brackets in the letter shall be replaced by the relevant information and the brackets deleted.
ATCP 93.720(2)(b)
(b) If financial responsibility for aboveground tanks within the scope of this subchapter is demonstrated using this method, all of the following changes shall be made:
ATCP 93.720(2)(b)1.
1. Reference in the letter to underground tanks shall be amended to refer to aboveground tanks.
ATCP 93.720(3)(a)
(a) An owner or operator who uses a letter of credit to satisfy the requirements of s.
ATCP 93.705 shall also establish a standby trust fund when the letter of credit is acquired.
ATCP 93.720(3)(b)
(b) Under the terms of the letter of credit, all amounts paid pursuant to a draft by the department shall be deposited by the issuing institution directly into the standby trust fund in accordance with instructions from the department under s.
ATCP 93.747.
ATCP 93.720(4)(a)
(a) The letter of credit shall be irrevocable with a term specified by the issuing institution.
ATCP 93.720(4)(b)
(b) The letter of credit shall provide that credit be automatically renewed for the same term as the original term, unless, at least 120 days before the current expiration date, the issuing institution notifies the owner or operator by certified mail of its decision not to renew the letter of credit.
ATCP 93.720(4)(c)
(c) Under the terms of the letter of credit, the 120 days shall begin on the date the owner or operator receives the notice as evidenced by the return receipt.
ATCP 93.720 History
History: CR 17-092: cr.
Register October 2019 No. 766, eff. 11-1-19.
ATCP 93.723(1)(1)
To use a trust fund to meet the financial responsibility requirements of s.
ATCP 93.705, an owner or operator shall establish a trust fund that conforms to the requirements of this section. The trustee shall be an entity that has the authority to act as a trustee and whose trust operations are regulated and examined by a federal agency or an agency of the state in which the fund is established.
ATCP 93.723(2)(a)
(a) The instructions in brackets in the agreement shall be replaced by the relevant information and the brackets deleted.
ATCP 93.723(2)(b)
(b) If financial responsibility for aboveground tanks within the scope of this subchapter is demonstrated using this method, all of the following changes shall be made:
ATCP 93.723(2)(b)1.
1. Reference in the agreement to underground tanks shall be amended to refer to aboveground tanks.
ATCP 93.723(4)
(4) The trust fund, when established, shall be funded for the full required amount of coverage or funded for part of the required amount of coverage and used in combination with other mechanisms that provide the remaining required coverage.
ATCP 93.723(5)
(5) If the value of the trust fund is greater than the required amount of coverage, the owner or operator may submit a written request to the department for release of the excess.
ATCP 93.723(6)
(6) If other financial assurance as specified in this subchapter is substituted for all or part of the trust fund, the owner or operator may submit a written request to the department for release of the excess.
ATCP 93.723(7)
(7) Within 60 days after receiving a request from the owner or operator for release of funds as specified in sub.
(5) or
(6), the department shall instruct the trustee to release to the owner or operator such funds as the department specifies in writing.
ATCP 93.723 History
History: CR 17-092: cr.
Register October 2019 No. 766, eff. 11-1-19.
ATCP 93.725(1)(b)
(b) The trustee of the standby trust fund shall be an entity that has the authority to act as a trustee and whose trust operations are regulated and examined by a federal agency or an agency of the state in which the fund is established.
ATCP 93.725(2)(a)
(a) The instructions in brackets in the agreement shall be replaced by the relevant information and the brackets deleted.
ATCP 93.725(2)(b)
(b) If financial responsibility for aboveground tanks within the scope of this subchapter is demonstrated using this method, all of the following changes shall be made:
ATCP 93.725(2)(b)1.
1. Reference in the agreement to underground tanks shall be amended to refer to aboveground tanks.
ATCP 93.725(3)
(3) The department shall instruct the trustee to refund the balance of the standby trust fund to the provider of financial assurance if the department determines that no additional corrective action costs or third-party liability claims will occur as a result of a release covered by the financial assurance mechanism for which the standby trust fund was established.
ATCP 93.725(4)
(4) An owner or operator may establish one trust fund as the depository mechanism for all funds assured in compliance with this section.
ATCP 93.725 History
History: CR 17-092: cr.
Register October 2019 No. 766, eff. 11-1-19.
ATCP 93.727
ATCP 93.727 Local government bond rating test. ATCP 93.727(1)(a)
(a) To use the bond rating test to meet the financial responsibility requirements of s.
ATCP 93.705, a general purpose local government owner or operator or local government serving as a guarantor shall have a currently outstanding issue or issues of general obligation bonds of $1 million or more, excluding refunded obligations, with a Moody's rating of Aaa, Aa, A, or Baa, or a Standard & Poor's rating of AAA, AA, A, or BBB.
ATCP 93.727(1)(b)
(b) Where a local government has multiple outstanding issues, or where a local government's bonds are rated by both Moody's and Standard and Poor's, the lowest rating shall be used to determine eligibility.
ATCP 93.727(1)(c)
(c) Bonds that are backed by credit enhancement other than municipal bond insurance may not be considered in determining the amount of applicable bonds outstanding.
ATCP 93.727(2)(a)
(a) A local government owner or operator or local government serving as a guarantor that is not a general purpose local government and does not have the legal authority to issue general obligation bonds may satisfy the requirements of s.
ATCP 93.705 by having a currently outstanding issue or issues of revenue bonds of $1 million or more, excluding refunded issues, and by also having a Moody's rating of Aaa, Aa, A, or Baa, or a Standard & Poor's rating of AAA, AA, A, or BBB as the lowest rating for any rated revenue bond issued by the local government.
ATCP 93.727(2)(b)
(b) Where bonds are rated by both Moody's and Standard & Poor's, the lower rating for each bond shall be used to determine eligibility.
ATCP 93.727(2)(c)
(c) Bonds that are backed by credit enhancement may not be considered in determining the amount of applicable bonds outstanding.
ATCP 93.727(3)
(3) The local government owner or operator or guarantor shall maintain a copy of its bond rating published within the last 12 months by Moody's or Standard & Poor's.
ATCP 93.727(4)
(4) To demonstrate that it meets the local government bond rating test, the chief financial officer of a general purpose local government owner or operator or guarantor shall sign a letter that is identical to the letter specified in
40 CFR 280.104 (d), except for the following:
ATCP 93.727(4)(a)
(a) The instructions in brackets in the letter shall be replaced by the relevant information and the brackets deleted.
ATCP 93.727(4)(b)
(b) If financial responsibility for aboveground tanks within the scope of this subchapter is demonstrated using this method, all of the following changes shall be made:
ATCP 93.727(4)(b)1.
1. Reference in the letter to underground tanks shall be amended to refer to aboveground tanks.
ATCP 93.727(5)
(5) To demonstrate that it meets the local government bond rating test, the chief financial officer of a local government owner or operator or guarantor other than a general purpose government shall sign a letter which is identical to the letter specified in
40 CFR 280.104 (e), except for the following:
ATCP 93.727(5)(a)
(a) The instructions in brackets in the letter shall be replaced by the relevant information and the brackets deleted.
ATCP 93.727(5)(b)
(b) If financial responsibility for aboveground tanks within the scope of this subchapter is demonstrated using this method, all of the following changes shall be made:
ATCP 93.727(5)(b)1.
1. Reference in the letter to underground tanks shall be amended to refer to aboveground tanks.
ATCP 93.727(6)
(6) The department may require reports of financial condition at any time from the local government owner or operator or local government guarantor. If the department finds that the local government owner or operator or guarantor no longer meets the local government bond rating test requirements of this section, the local government owner or operator shall obtain alternative coverage within 30 days after notification of such a finding.
ATCP 93.727(7)
(7) If a local government owner or operator or local government guarantor using the bond rating test to provide financial assurance finds that it no longer meets the bond rating test requirements, the local government owner or operator shall obtain alternative coverage within 150 days of the change in status.
ATCP 93.727(8)
(8) If the local government owner or operator fails to obtain alternate assurance within 150 days of finding that it no longer meets the requirements of the bond rating test, or within 30 days of notification by the department that the owner or operator no longer meets the requirements of the bond rating test, the owner or operator shall notify the department of such failure within 10 days.
ATCP 93.727 History
History: CR 17-092: cr.
Register October 2019 No. 766, eff. 11-1-19.
ATCP 93.730
ATCP 93.730 Local government financial test. ATCP 93.730(1)(1)
To use a financial test to meet the financial responsibility requirements of s.
ATCP 93.705, a local government owner or operator shall pass the financial test specified in this section. To be eligible to use the financial test, the local government owner or operator shall have the ability and authority to assess and levy taxes or to freely establish fees and charges. To pass the local government financial test, the owner or operator shall meet the criteria of this section based on year-end financial statements for the latest completed fiscal year.
ATCP 93.730(2)
(2) The local government owner or operator shall have the following information available, as shown in the year-end financial statements for the latest completed fiscal year:
ATCP 93.730(2)(a)
(a) Total revenues consisting of the sum of general fund operating and non-operating revenues including net local taxes, licenses and permits, fines and forfeitures, revenues from use of money and property, charges for services, investment earnings, sales of assets such as property and publications, restricted and unrestricted intergovernmental revenues, and total revenues from all other governmental funds including enterprise, debt service, capital projects, and special revenues, but excluding revenues to funds held in a trust or agency capacity. For purposes of this test, the calculation of total revenues excludes all transfers between funds under the direct control of the local government using the financial test, liquidation of investments and issuance of debt.
ATCP 93.730(2)(b)
(b) Total expenditures consisting of the sum of general fund operating and non-operating expenditures including public safety, public utilities, transportation, public works, environmental protection, cultural and recreational, community development, revenue sharing, employee benefits and compensation, office management, planning and zoning, capital projects, interest payments on debt, payments for retirement of debt principal, and total expenditures from all other governmental funds including enterprise, debt service, capital projects, and special revenues. For purposes of this test, the calculation of total expenditures excludes all transfers between funds under the direct control of the local government using the financial test.
ATCP 93.730(2)(c)
(c) Local revenues consisting of total revenues, as defined in par.
(a), minus the sum of all transfers from other governmental entities, including all monies received from federal, state, or local government sources.
ATCP 93.730(2)(d)
(d) Debt service consisting of the sum of all interest and principal payments on all long-term credit obligations and all interest-bearing short-term credit obligations. For purposes of this test, debt service includes interest and principal payments on general obligation bonds, revenue bonds, notes, mortgages, judgments, and interest bearing warrants. For purposes of this test, debt service excludes payments on non-interest-bearing short-term obligations, interfund obligations, amounts owed in a trust or agency capacity, and advances and contingent loans from other governments.
ATCP 93.730(2)(e)
(e) Total funds consisting of the sum of cash and investment securities from all funds, including general, enterprise, debt service, capital projects and special revenue funds, but excluding employee retirement funds, at the end of the local government's financial reporting year. For purposes of this test, the calculation of total funds includes federal securities, federal agency securities, state and local government securities, and other securities such as bonds, notes, and mortgages. For purposes of this test, the calculation of total funds excludes agency funds, private trust funds, accounts receivable, value of real property, and other non-security assets.
ATCP 93.730(2)(f)
(f) Population consisting of the number of people in the area served by the local government.
ATCP 93.730(3)
(3) The local government's year-end financial statements, if independently audited, may not include an adverse auditor's opinion or a disclaimer of opinion. The local government may not have outstanding issues of general obligation or revenue bonds that are rated as less than investment grade.
ATCP 93.730(4)
(4) To demonstrate that it meets the financial test of this section, the chief financial officer of the local government owner or operator, shall sign, within 120 days of the close of each financial reporting year, as defined by the 12-month period for which financial statements used to support the financial test are prepared, a letter which is identical to the letter specified in
40 CFR 280.105 (c), except for the following:
ATCP 93.730(4)(a)
(a) The instructions in brackets in the letter shall be replaced by the relevant information and the brackets deleted.
ATCP 93.730(4)(b)
(b) If financial responsibility for aboveground tanks within the scope of this subchapter is demonstrated using this method, all of the following changes shall be made:
ATCP 93.730(4)(b)1.
1. Reference in the letter to underground tanks shall be amended to refer to aboveground tanks.
ATCP 93.730(5)
(5) If a local government owner or operator using the test to provide financial assurance finds that it no longer meets the requirements of the financial test based on the year-end financial statements, the owner or operator shall obtain alternative coverage within 150 days of the end of the year for which financial statements have been prepared.
ATCP 93.730(6)
(6) The department may require reports of financial condition at any time from the local government owner or operator. If the department finds that the local government owner or operator no longer meets the financial test requirements of this section, the owner or operator shall obtain alternate coverage within 30 days after notification of such a finding.
ATCP 93.730(7)
(7) If the local government owner or operator fails to obtain alternate assurance within 150 days of finding that it no longer meets the requirements of the financial test based on the year-end financial statements or within 30 days of notification by the department that it no longer meets the requirements of the financial test, the owner or operator shall notify the department of such failure within 10 days.
ATCP 93.730 History
History: CR 17-092: cr.
Register October 2019 No. 766, eff. 11-1-19.
