Sec. 26.10.11.02. Additional Mechanism for Local Governments to Demonstrate Financial Responsibility

A. To demonstrate financial responsibility under this chapter, a local government may use any one or a combination of the mechanisms incorporated in Regulation .01 of this chapter, and the additional mechanism set forth in this regulation.

B. Local governments may satisfy the financial responsibility requirements of this chapter by obtaining environmental liability coverage from an insurance pool established under Article 48A, §482B, Annotated Code of Maryland. The insurance pool providing coverage shall be one that the Secretary of the Environment has determined to be financially sound and at least equivalent to one or more of the financial assurance mechanisms provided in 40 CFR 280.90-----280.116. When determining financial soundness, the Secretary may consider the certainty of the availability of the insurance pool funds to cover the potential liability of participating local governments to take corrective action or to compensate third parties for bodily injury and property damage, or both, caused by accidental releases arising from operation of petroleum underground storage tanks, as set forth in 40 CFR §280.93.

C. An insurance pool approved under this chapter shall annually provide any information the Department considers necessary to assess whether the insurance pool remains financially sound.

D. A local government using an insurance pool approved under this chapter to demonstrate financial responsibility shall obtain a separate endorsement, certificate, or similar document worded in accordance with the forms set forth in 40 CFR §280.97(b).

E. A local government using an insurance pool approved under this chapter to demonstrate financial responsibility, and an approved insurance pool, shall comply with all applicable provisions of 40 CFR 280.90-----280.116, incorporated by reference in Regulation .01 of this chapter, including those imposing requirements for reporting and record keeping.