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.
ATCP 93.733(1)(1)
To use a guarantee to meet the financial responsibility requirements of s.
ATCP 93.705, a local government owner or operator shall obtain a guarantee that conforms to the requirements of this section. The guarantor shall be either the state in which the local government owner or operator is located or a local government having a substantial governmental relationship with the owner and operator and issuing the guarantee as an act incident to that relationship.
ATCP 93.733(2)
(2) A local government acting as the guarantor shall do one of the following:
ATCP 93.733(2)(a)
(a) Demonstrate that it meets the bond rating test requirement of s.
ATCP 93.727 and deliver a copy of the chief financial officer's letter as contained in s.
ATCP 93.727 (4) or
(5) to the local government owner or operator.
ATCP 93.733(2)(b)
(b) Demonstrate that it meets the worksheet test requirements of s.
ATCP 93.730 and deliver a copy of the chief financial officer's letter as contained in s.
ATCP 93.730 (4) to the local government owner or operator.
ATCP 93.733(2)(c)
(c) Demonstrate that it meets the local government fund requirements of s.
ATCP 93.735 (1) and deliver a copy of the chief financial officer's letter as contained in s.
ATCP 93.735 (2) to the local government owner or operator.
ATCP 93.733(3)
(3) If the local government guarantor is unable to demonstrate financial assurance under any of s.
ATCP 93.727,
93.730 or
93.735 (1) at the end of the financial reporting year, the guarantor shall send by certified mail, before cancellation or non-renewal of the guarantee, notice to the owner or operator. The guarantee shall terminate no less than 120 days after the date the owner or operator receives the notification as evidenced by the return receipt. The owner or operator shall obtain alternative coverage as specified in s.
ATCP 93.753.
ATCP 93.733(4)(a)
(a) The guarantee agreement shall be worded as specified in subs.
(5) to
(8), depending on which of the following alternative guarantee arrangements is selected:
ATCP 93.733(4)(a)1.
1. If, in the default or incapacity of the owner or operator, the guarantor guarantees to fund a standby trust as directed by the department, the guarantee shall be worded as specified in sub.
(5) or
(6).
ATCP 93.733(4)(a)2.
2. If, in the default or incapacity of the owner or operator, the guarantor guarantees to make payments as directed by the department for taking corrective action or compensating third parties for bodily injury and property damage, the guarantee shall be worded as specified in sub.
(7) or
(8).
ATCP 93.733(4)(b)
(b) The local government guarantor shall sign a guarantee that is identical to the guarantee specified in the CFR section referenced in subs.
(5) to
(8), except for the following:
ATCP 93.733(4)(b)1.
1. The instructions in brackets in the guarantee shall be replaced by the relevant information and the brackets deleted.
ATCP 93.733(4)(b)2.
2. 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 93.733(4)(b)2.a.
a. Reference in the guarantee to underground tanks shall be amended to refer to aboveground tanks.
ATCP 93.733(5)
(5) If the guarantor is a state, the local government guarantee with standby trust shall be identical to the wording found in
40 CFR 280.106 (d), except as modified under sub.
(4).
ATCP 93.733(6)
(6) If the guarantor is a local government, the local government guarantee with standby trust shall be identical to the wording found in
40 CFR 280.106 (d), except as modified under sub.
(4).
ATCP 93.733(7)
(7) If the guarantor is a state, the local government guarantee without standby trust shall be identical to the wording found in
40 CFR 280.106 (e), except as modified under sub.
(4).
ATCP 93.733(8)
(8) If the guarantor is a local government, the local government guarantee without standby trust shall be identical to the wording found in
40 CFR 280.106 (e), except as modified under sub.
(4).
ATCP 93.733 History
History: CR 17-092: cr.
Register October 2019 No. 766, eff. 11-1-19; correction in (4) (a) made under s.
35.17, Stats.,
Register October 2019 No. 766.
ATCP 93.735(1)(a)
(a) To use a local government fund to meet the financial responsibility requirements of s.
ATCP 93.705, a local government owner or operator shall establish a dedicated fund account that conforms to the requirements of this section. A dedicated fund may not be commingled with other funds or otherwise used in normal operations, except as specified in par.
(c). A dedicated fund shall be considered eligible if it meets the requirements in one of par.
(b),
(c), or
(d).
ATCP 93.735(1)(b)
(b) The fund is dedicated by state constitutional provision or local government statute, charter, ordinance, or order to pay for taking corrective action and for compensating third parties for bodily injury and property damage caused by accidental releases arising from the operation of petroleum underground storage tanks and is funded for the full amount of coverage required under s.
ATCP 93.705, or funded for part of the required amount of coverage and used in combination with other mechanisms that provide the remaining coverage.
ATCP 93.735(1)(c)1.1. The fund is dedicated by state constitutional provision or local government statute, charter, ordinance, or order as a contingency fund for general emergencies, including taking corrective action and compensating third parties for bodily injury and property damage caused by accidental releases arising from the operation of petroleum underground storage tanks and is funded for 5 times the full amount of coverage required under s.
ATCP 93.705 or funded for part of the required amount of coverage and used in combination with other mechanisms that provide the remaining coverage.
ATCP 93.735(1)(c)2.
2. If the fund is funded for less than 5 times the amount of coverage required under s.
ATCP 93.705, the amount of financial responsibility demonstrated by the fund may not exceed one-fifth the amount in the fund.
ATCP 93.735(1)(d)1.1. The fund is dedicated by state constitutional provision, or local government statute, charter, ordinance, or order to pay for taking corrective action and for compensating third parties for bodily injury and property damage caused by accidental releases arising from the operation of petroleum storage tanks.
ATCP 93.735(1)(d)2.
2. A payment is made to the fund once every year for 7 years until the fund is fully funded. This 7-year period is hereafter referred to as the pay-in period.
ATCP 93.735(1)(d)3.
3. The amount of each payment shall be determined by the formula (TF - CF)/Y, where TF is the total required financial assurance for the owner or operator, CF is the current amount in the fund, and Y is the number of years remaining in the pay-in period.
ATCP 93.735(1)(d)4.
4. If the method in this paragraph is chosen, one of the following is also required:
ATCP 93.735(1)(d)4.a.
a. The local government owner or operator has available bonding authority, approved through voter referendum if such approval is necessary prior to the issuance of bonds, for an amount equal to the difference between the required amount of coverage and the amount held in the dedicated fund. This bonding authority shall be available for taking corrective action and for compensating third parties for bodily injury and property damage caused by accidental releases arising from the operation of petroleum storage tanks.
ATCP 93.735(1)(d)4.b.
b. The local government owner or operator has a letter signed by the appropriate state attorney general stating that the use of the bonding authority will not increase the local government's debt beyond the legal debt ceilings established by Wisconsin statutes. The letter shall also state that prior voter approval is not necessary before use of the bonding authority.
ATCP 93.735(2)
(2) To demonstrate that it meets the requirements of the local government fund, the chief financial officer of the local government owner or operator or guarantor shall sign a letter worded exactly as specified in
40 CFR 280.107 (d), except for the following:
ATCP 93.735(2)(a)
(a) The instructions in brackets in the letter shall be replaced by the relevant information and the brackets deleted.
ATCP 93.735(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 93.735(2)(b)1.
1. Reference in the letter to underground tanks shall be amended to refer to aboveground tanks.
ATCP 93.735 History
History: CR 17-092: cr.
Register October 2019 No. 766, eff. 11-1-19; correction in (1) (a) made under s.
35.17, Stats.,
Register October 2019 No. 766.
ATCP 93.737
ATCP 93.737 Substitution of financial assurance mechanisms by owner or operator. ATCP 93.737(1)(1)
An owner or operator may substitute any alternate financial assurance mechanisms as specified in this subchapter, provided that at all times an effective financial assurance mechanism or combination of mechanisms is maintained which satisfies the financial responsibility requirements of s.
ATCP 93.705.
ATCP 93.737(2)
(2) After obtaining alternate financial assurance as specified in this subchapter, an owner or operator may cancel a financial assurance mechanism by providing notice to the provider of financial assurance.
ATCP 93.737 History
History: CR 17-092: cr.
Register October 2019 No. 766, eff. 11-1-19.
ATCP 93.740
ATCP 93.740 Cancellation or nonrenewal by a provider of financial assurance. ATCP 93.740(1)(a)
(a) Except as otherwise provided, a provider of financial assurance may cancel or fail to renew an assurance mechanism by sending a notice of termination by certified mail to the owner or operator.
ATCP 93.740(1)(b)
(b) Termination of a guarantee, a surety bond, or a letter of credit may not occur until 120 days after the date on which the owner or operator receives the notice of termination as evidenced by the return receipt.
ATCP 93.740(1)(c)1.1. Termination of insurance or risk retention group coverage or state-funded assurance, except for nonpayment or misrepresentation by the insured, may not occur until 60 days after the date on which the owner or operator received notice of termination as evidenced by the return receipt.
ATCP 93.740(1)(c)2.
2. Termination for nonpayment of premium or misrepresentation by the insured may not occur until a minimum of 10 days after the date on which the owner or operator receives the notice of termination, as evidenced by the return receipt.
ATCP 93.740(2)(a)(a) If a provider of financial responsibility cancels or fails to renew for reasons other than incapacity of the provider as specified in s.
ATCP 93.753, the owner or operator shall obtain alternate coverage as specified in this subchapter within 60 days after receipt of the notice of termination.
ATCP 93.740(2)(b)
(b) If the owner or operator fails to obtain alternate coverage within 60 days after receipt of the notice of termination, the owner or operator shall notify the department of such failure and submit all of the following to the department:
ATCP 93.740 History
History: CR 17-092: cr.
Register October 2019 No. 766, eff. 11-1-19.
ATCP 93.743
ATCP 93.743 Reporting by owner or operator. ATCP 93.743(1)(1)
General. The owner or operator of a petroleum storage tank subject to financial responsibility requirements under the scope of this subchapter shall submit a copy of the applicable forms listed in s.
ATCP 93.745 (2) documenting current evidence of financial responsibility to the department in accordance with this section.
ATCP 93.743(2)(a)(a)
Underground tanks. Copies of the applicable forms listed in s.
ATCP 93.745 (2) shall be submitted to the department upon annual permit renewal as required in s.
ATCP 93.145, along with all of the following:
ATCP 93.743(2)(a)1.
1. The specific location and designated regulated object number of tanks at each facility covered by the respective mechanism of financial responsibility.
ATCP 93.743(2)(a)2.
2. If insurance and risk retention under s.
ATCP 93.715 is used, the insurance underwriter certificate of insurance, and schedule of covered locations and storage tanks as provided by the insurer, reflecting pollution coverage in the amounts required under s.
ATCP 93.705.
ATCP 93.743(2)(b)
(b)
Aboveground tanks. Copies of the applicable forms listed in s.
ATCP 93.745 (2) shall be submitted to the department within 30 days after the owner or operator identifies a release from an aboveground storage tank that is required to be reported under s.
ATCP 93.585.
