Mechanisms for Financial Assurance

Section 845.950  Mechanisms for Financial Assurance a)         The owner or operator of a CCR surface impoundment must use any of the mechanisms listed in this subsection (a) to provide financial assurance for closure and post-closure care, and for corrective action at a CCR surface impoundment.  An owner or operator of a CCR surface impoundment must also meet the requirements of subsections (b), (c), and (d). The mechanisms are as follows: 1)         A trust fund (see Section 845.960); 2)         A surety bond guaranteeing payment (see Section 845.970); 3)         A surety bond guaranteeing performance (see Section 845.980); or 4)         An irrevocable letter of credit (see Section 845.990). b)         The owner or operator of a CCR surface impoundment must ensure that the language of the mechanisms listed in subsection (a), when used for providing financial assurance for closure, post-closure, and corrective action, is consistent with the forms prescribed by the Agency and satisfies the following: 1)         The amount of funds assured is sufficient to cover the costs of closure, post-closure care, and corrective action; and 2)         The funds will be available in a timely fashion when needed. c)         The owner or operator of a CCR surface impoundment must provide financial assurance utilizing one or more of the mechanisms listed in subsection (a) within the following timeframes: 1)         An owner or operator of an existing CCR surface impoundment must provide financial assurance to the Agency for closure and post-closure care within 60 days after April 21, 2021; 2)         An owner or operator of a new CCR surface impoundment must provide financial assurance to the Agency for closure and post-closure care at least 60 days before the date of initial receipt of CCR in the CCR surface impoundment. 3)         In the case of corrective action required by this Part, the owner or operator of the CCR surface impoundment must provide preliminary financial assurance for corrective action no later than when the owner or operator initiates an assessment of corrective measures under Section 845.650(d)(3). The preliminary financial assurance for corrective action must be maintained until replaced with financial assurance based on the cost estimate of the corrective action. The owner or operator of the CCR surface impoundment must provide financial assurance based on the approved corrective action plan to the Agency within 60 days after either the Agency's approval or April 21, 2021, whichever is later. d)         The owner or operator must provide continuous financial assurance coverage until the owner or operator is released from the financial assurance requirements of this Subpart under Section 845.920(b). e)         Use of Multiple Financial Assurance Mechanisms.  An owner or operator may satisfy the requirements of this Subpart by establishing more than one financial mechanism per CCR surface impoundment.  These mechanisms are limited to trust funds, surety bonds guaranteeing payment, and letters of credit.  The mechanisms must be as specified in Sections 845.960, 845.970, and 845.990, as applicable, except that it is the combination of mechanisms, rather than the single mechanism, that must provide financial assurance for an aggregate amount at least equal to the current cost estimate for closure, post-closure care, and corrective action, except that mechanisms guaranteeing performance, rather than payment, may not be combined with other instruments.  The owner or operator may use any or all the mechanisms to provide financial assurance for corrective action, closure and post-closure care. f)         Use of a Financial Assurance Mechanism for Multiple CCR Surface Impoundments in Illinois.  An owner or operator may use a financial assurance mechanism specified in this Subpart to meet the requirements of this Subpart for more than one CCR surface impoundment located in Illinois.  Evidence of financial assurance submitted to the Agency must include a list showing, for each CCR surface impoundment, the identification number (see Section 845.130), name, address and the amount of funds assured by the mechanism.  The amount of funds available through the mechanism must be at least the sum of funds that would be available if a separate mechanism had been established and maintained for each CCR surface impoundment.  The amount of funds available to the Agency must be enough to close and provide post-closure care for all of the owner's or operator's CCR surface impoundments.  In directing funds available through a single mechanism for the closure and post-closure care of any single CCR surface impoundment covered by that mechanism, the Agency must direct only that amount of funds designated for that CCR surface impoundment, unless the owner or operator agrees to the use of additional funds available under that mechanism.