SECTION 37.820. Allowable Mechanisms and Combinations of Mechanisms

(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.

Source Note: The provisions of this §37.820 adopted to be effective November 23, 2000, 25 TexReg 11399