R 299.9707 Certificate of deposit or time deposit account.

Rule 707. (1) An owner or operator may satisfy the requirements of R 299.9703 by placing funds in the amount of the current approved closure or postclosure cost estimate in an insured, negotiable certificate of deposit or time deposit account held by a bank or other financial institution regulated and examined by a federal or state agency. The value of the certificate of deposit or time deposit account must be fully insured by an agency of the United States government, unless otherwise approved by the director. (2) The certificate or account must be in the sole name of the director with a maturity of not less than 6 months. (3) The owner or operator shall execute an agreement with the director that identifies the reasons for which the director may cash the certificate of deposit or time deposit account. The agreement must be executed on a form approved by the director. (4) A certificate or time deposit account of less than a 1year maturity must provide for automatic renewal. An owner or operator shall renew or replace a certificate of deposit or time deposit account of 1 year or more not less than 60 days before the maturity date. (5) The certificate of deposit or time deposit account must be issued in an amount not less than the current approved closure or postclosure cost estimate, except when used with other mechanisms as provided in R 299.9703(2). (6) When the current approved closure or postclosure cost estimate increases to an amount more than the value of the certificate of deposit or time deposit account, the owner or operator, within 60 days after the increase is approved or issued by the director, shall either cause the amount of the certificate of deposit or time deposit account to be increased so that it not less than the current approved closure or postclosure cost estimate and submit evidence of the increase to the director or obtain other financial assurance as specified in this part to cover the increase. During the period of postclosure care, the director may approve a decrease in the amount of the certificate of deposit or time deposit account if the owner or operator demonstrates to the director that the amount exceeds the remaining cost of postclosure care after inflation is considered. (7) The director may cash the certificate of deposit or withdraw funds from the time deposit account to correct the violations, complete closure, and maintain the facility in accordance with the approved plans after doing both of the following: (a) Issuing a notice of violation or other order to the owner or operator that alleges that the owner or operator has failed to perform closure or postclosure care in accordance with the closure or postclosure plan or other license requirements. (b) Providing the owner or operator 7 days notice and opportunity for hearing. (8) If the owner or operator elects not to continue the use of the certificate of deposit or time deposit account to provide financial assurance as required, or any portion thereof, the owner or operator shall provide acceptable financial assurance to the director 60 days before the maturity date of the certificate of deposit or time deposit account. If the owner or operator fails to so provide, the director may cash the certificate of deposit or time deposit account and place the funds in a state treasury account. The director may release the funds to the owner or operator when the owner or operator provides acceptable replacement financial assurance. (9) The director shall release funds held in a certificate of deposit or time deposit account to the owner or operator when the owner or operator substitutes alternate financial assurance as specified in this part or the director releases the owner or operator from the requirements of this part in accordance with R 299.9703(5).