R 299.9704 Trust fund.

Rule 704. (1) An owner or operator may satisfy the financial assurance requirements of R 299.9703 by establishing a trust fund for closure or postclosure, or both, that conforms to the requirements of this rule. The trustee shall be a bank or other financial institution that has the authority to act as a trustee and whose trust operations are regulated and examined by a federal or state agency, and the trust agreement must be executed on a form approved by the director. (2) The trust fund must be funded at 100% of the closure and postclosure cost estimate approved at the time of execution. Additional payments to the trust fund must be made by the owner or operator to maintain 100% funding when the closure or postclosure cost estimates, or both, are increased. (3) If the value of the trust fund is more than the total amount of the current closure or postclosure cost estimate, or both, the owner or operator may submit a written request to the director for release of the amount in excess of the current closure or postclosure cost estimate. (4) If an owner or operator substitutes other financial assurance, as specified in this part, for all or part of the trust fund, the owner or operator may submit a written request to the director for release of the amount in excess of the current closure or postclosure cost estimate covered by the trust fund. (5) Within 60 days after receiving a request from the owner or operator for release of funds as specified in subrules (3) or (4) of this rule, the director shall instruct the trustee to release to the owner or operator the funds as the director specifies in writing. (6) After beginning partial or final closure, an owner or operator or another person authorized to perform closure, partial closure, or postclosure care may request reimbursements for closure, partial closure, or postclosure expenditures by submitting itemized bills to the director. The owner or operator may request reimbursement for partial closure only if sufficient funds remain in the trust fund to cover the maximum costs of closing the facility over its remaining operating life. Within 60 days after receiving bills for closure, partial closure, or postclosure care activities, the director shall determine whether the closure, partial closure, or postclosure care expenditures, or both, are in accordance with the closure plan or otherwise justified, and, if so, the director shall instruct the trustee to make reimbursement in the amounts as the director specifies in writing. If the director does not instruct the trustee to make the reimbursements, the director shall provide the owner or operator with a detailed written statement of reasons. (7) If the director has reason to believe that the cost of closure or postclosure care, or both, will be significantly more than the value of the trust fund, the director may withhold reimbursement of the amounts as the director determines prudent until the director determines, in accordance with R 299.9703(6), that the owner or operator is no longer required to maintain financial assurance for closure or postclosure care, or both. (8) During the period of postclosure care, the director may approve a release of funds if the owner or operator demonstrates to the director that the value of the trust fund exceeds the remaining cost of postclosure care. (9) The director shall agree to termination of the trust when an owner or operator substitutes alternate financial assurance as specified in this part and the director releases the owner or operator from the requirements of this part in accordance with R 299.9703(5). (10) If the director issues a notice of violation or other order to the owner or operator alleging violation of closure or postclosure requirements, or both, the director may, after providing the owner or operator 7 days notice and opportunity for hearing, access the funds in the trust to correct the violations, complete closure, and maintain the facility in accordance with the approved plans.