HAR §11-58.1-18. assurance

(a) Municipal solid waste landfills -- financial Applicability and effective date. (1) (2) (b) The requirements of this section apply to owners and operators of all.MSWLF units, except owners or operators who are s~ate or federal government entities whose debts and liabilities are the debts and liabilities of a state or the United States. The requirements of this section are effective April 9, 1994. Financial assurance for closure. 58.1-70 1717 §11-58.1-18 (1) The owner or operator must have a detailed written estimate, in current dollars, of the cost of hiring a third party to close the largest area of all MSWLF units ever requiring a final cover as required under section 11-58.l-17(a) at any time during the active life in accordance with the closure plan. The owner or operator must notify the director that the estimate has been placed in the operating record. (2) (c) (1) (A) The cost estimate must equal the cost of closing the largest area of all MSWLF units ever requiring a final cover at any time during the active life when the extent and manner of its operation would make closure the most expensive, as indicated by its closure plan (see section ll-58.1-17(a) (3) (B) ) • (B) During the active life of the MSWLf unit, the owner or operator must annually adjust the closure cost estimate for inflation. (C) The owner or operator must increase the closure cost estimate and the amount of financial assurance required under paragraph (2) if changes to the closure plan or MSWLF unit conditions increase the maximum cost of closure at any time during the remaining active life. (D) The owner or operator may reduce the closure cost estimate and the amount of financial assurance required under paragraph (2) if the cost estimate exceeds the maximum cost of closure at any time during the remaining life of the MSWLF unit. The owner or operator must notify the director that the justification for the reduction of the closure cost estimate and the amount of financial assurance has been placed in the operating record. The owner or operator of each MSWLF unit must establish financial assurance for closure of the MSWLF unit in compliance with subsection (e). The owher or operator must provide continuous coverage for closure until released from financial assurance requirements by demonstrating compliance with section 11-58.1-17(a) (8) and ( a) (9) . Financial assurance for post-closure care. The owner or operator must have a detailed written 58.1-71 1 717 ' ( §11-58.1-18 estimate, in current dollars, of the cost of hiring a third party to conduct post-closure care for the MSWLF unit in compliance with the post-closure plan developed under section ll-58.1-17(b). The post-closure cost estimate used to demonstrate financial assurance in paragraph (2) must account for the total costs of conducting pos~-closure care, including annual and periodic costs:as described in the post-closure plan over the entire post-closure care period. The owner or operator must notify the director that the estimate has been placed in the ··operating record. (A) The cost estimate for post-closure care must be based on the most expensive costs of post-closure care during the post-closure care period. (B) During the active life of the MSWLF unit and during the post-closure care period, the owner or operator must annually adjust the post-closure cost estimate for inflation. (C) The owner or operator must increase the post- closure care cost estimate and the amount of financial assurance required under paragraph (2) if changes in the post-closure plan or MSWLF unit conditions increase the maximum costs of post- closure care. (D) The owner or operator may reduce the post-closure cost estimate and the amount of financial assurance required under paragraph (2) if the cost estimate exceeds the maximum costs of post-closure care remaining over the post-closure care period. The owner or operator must notify the director that the justification for the reduction of the post-closure cost estimate and the amount of financial assurance has been placed in the operating record. (2) The owner or operator of each MSWLF unit must establish, in a manner in accordance with subsection (e), financial assurance for the costs of post-closure care as required under section ll-58.1-17(b). The owner or operator must provide continuous coverage for post-closure care until released from financial assurance requirements for post-closure care by demonstrating compliance with section ll-58.1-17(b) (5). (d) Financial assurance for corrective action. 58.1-72 1717 t ( (1) §11-58.1-18 An owner or operator of a MSWLF unit required to undertake a corrective action program under section ll-58.l-16(h) must have a detailed written estimate, in current dollars, of the cost of hiring a third party to perform the corrective action in accordance with the program required under section ll-58.1-16(h). The corrective action cost estimate must account for the total costs of corrective action activities as described in the corrective action plan for the entire corrective action period.· The owner or operator must notify the director that the estimate has been placed in the operating record. (A) The owner or operator must annually adjust the estimate for inflation until the corrective action program is completed in accordance with section ll-58.1-16(h) (6). f (B) The owner or operator must increase the corrective action cost estimate and the amount of financial assurance required under paragraph; (2) if changes in the corrective action program or MSWLF unit conditions increase the maximum costs of corrective action. (C) The owner or operator may reduce the amount of the corrective action cost estimate and the amount of financial assurance required under paragraph (2) if the cost estimate exceeds the maximum remaining costs of corrective action. The owner or operator must notify the director that the justification for the reduction of the corrective action cost estimate and the amount of financial assurance has been placed in the operating record. (2) The owner or operator of each MSWLF unit required to undertake a corrective action program under section ll-58.l-16(h) must establish, in a manner in accordance with subsection "(e),· financial assurance for the most recent corrective action program~ The owner or operator must provide continuous coverage for corrective action until released from financial assurance requirements for corrective action by demonstrating compliance with section ll-58.l-16(h) (6) and (h) (7). 58.1-73 1 7 l '7 §11-58.1-18 (e) Allowable mechanism~- The mechanisms used to demonstrate financial assurance under this subsection must ensure that the funds necessary to meet the costs of closure, post-closure care, and corrective action for known releases will be available whenever they are needed. Owners and operators must choose from the options specified in paragraphs (1) through {10). (1) Trust fund. {A) An owner or operator may satisfy the requirements of this subsection by establishing a trust fund which conforms to the requirements of this paragraph. The trustee must be an entity which has the authority to act as a trustee and whose trust operations are regulated and examined by a federal or state agency. A copy of the trust agreement must be placed in the facility's operating record. (B) Payments into the trust fund must be made annually by the owner or operator over the term of the initial permit or over the remaining life of the MSWLF unit,.whichever is shorter, in the case of a trust fund for closure or post-closure care, or over one-half of the estimated length of the corrective action program in the case of corrective action for known releases. This period is referred to as the pay-in period. {C) For a trust fund used to demonstrate financial assurance for closure and post-closure care, the first payment into the fund must be at least equal to the current cost estimate for closure or post-closure care, except as provided in paragraph {10), divided by the number of years in the pay-in period as defined in subparagraph (B). The amount of subsequent payments must be determined by the following formula: Next Payment= CE-CV y where CE is the current cost estimate for closure or post-closure care (updated for inflation or other changes),· CV is the current value of the trust fund, and Y is the number of years remaining in the pay-in period. 58.1-74 1717 ( (D) §11-58.1-18 For a trust fund used to demonstrate financial assurance for corrective action, the first payment into the trust fund must be at least equal to one-half of the current cost estimate for corrective action, except as provided in paragraph (10), divided by the number of years in the corrective action pay-in period as defined in subparagraph (B). The amount of subsequent payments must .. be determined by the fallowing formula: Next Payment= RB-CV y where RB is the most recent estimate of the required trust fund balance for corrective action (i.e., the total costs that will be incurred during the second half of the corrective action period), CV is the current value of the trust fund, and Y is the number of years remaining on the pay-in period. (E) The initial payment into the trust fund must be made before the.initial receipt of waste or before the effective date of this section (April 9, 1994), whichever is later, in the case of closure and post~closure care, or within one hundred twenty days after the corrective action remedy has been selected in accordance with the requirements of section 11-58.1-16(h). (F) If the owner or operator establishes a trust fund after having used one or more alternate mechanisms specified in this subsection, the initial payment into the trust fund must be at least the amount that the fund would contain if the trust fund were established initially and annual payments made according to the specifications of this paragraph. (G) The owner or operator, or other person authorized to conduct closure, post-closure care, or corrective action activities may request reimbursement from the trustee for these expenditures. Requests for reimbursement will be granted by the trustee only if sufficient funds are remaining in the.trust fund to cover the remaining costs of closure, post-closure care, or corrective action, and if justification and documentation of the cost is placed in the 58.1-75 l717