Hawaii Administrative Rules › Title 11 - DEPARTMENT OF HEALTH › Subtitle 1 - GENERAL DEPARTMENTAL PROVISIONS › Chapter 265.1 - HAZARDOUS WASTE MANAGEMENT: INTERIM STATUS STANDARDS FOR OWNERS AND OPERATORS OF HAZARDOUS WASTE TREATMENT, STORAGE, AND DISPOSAL FACILITIES › Part 265 - INTERIM STATUS STANDARDS FOR OWNERS AND OPERATORS OF HAZARDOUS WASTE TREATMENT, STORAGE, AND DISPOSAL FACILITIES › Subpart H - Financial Requirements › Section 11-265.143 - Financial assurance for closure

Current through June, 2024
By the effective date of these regulations, an owner or
						operator of each facility must establish financial assurance for closure of the
						facility. He must choose from the options as specified in paragraphs (a)
						through (e) of this section.
(a)
					 Closure trust fund.
(1) An owner or operator
					 may satisfy the requirements of this section by establishing a closure trust
					 fund which conforms to the requirements of this paragraph and submitting an
					 originally signed duplicate of the trust agreement to the director. 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.
(2) The wording of the trust agreement must
					 be identical to the wording specified in § 264.151(a)(1), and the trust
					 agreement must be accompanied by a formal certification of acknowledgment (for
					 example, see § 264.151(a)(2)). Schedule A of the trust agreement must be
					 updated within 60 days after a change in the amount of the current closure cost
					 estimate covered by the agreement.
(3) Payments into the trust fund must be made
					 annually by the owner or operator over the 20 years beginning with the
					 effective date of these regulations or over the remaining operating life of the
					 facility as estimated in the closure plan, whichever period is shorter; this
					 period is hereafter referred to as the "pay-in period." The payments into the
					 closure trust fund must be made as follows:
(i) The first payment must be made by the
					 effective date of these regulations, except as provided in paragraph (a)(5) of
					 this section. The first payment must be at least equal to the current closure
					 cost estimate, except as provided in § 265.143(f), divided by the number
					 of years in the pay-in period.
(ii)
					 Subsequent payments must be made no later than 30 days after each anniversary
					 date of the first payment. The amount of each subsequent payment must be
					 determined by this -formula:
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where CE is the current closure cost estimate, CV is the
						current value of the trust fund, and Y is the number of years remaining in the
						pay-in period.
(4) The owner or operator may accelerate
					 payments into the trust fund or he may deposit the full amount of the current
					 closure cost estimate at the time the fund is established. However, he must
					 maintain the value of the fund at no less than the value that the fund would
					 have if annual payments were made as specified in paragraph (a)(3) of this
					 section.
(5) If the owner or
					 operator establishes a closure trust fund after having used one or more
					 alternate mechanisms specified in this section, his first payment must be in at
					 least the amount that the fund would contain if the trust fund were established
					 initially and annual payments made -as specified in paragraph (a)(3) of this
					 section.
(6) After the pay-in
					 period is completed, whenever the current closure cost estimate changes, the
					 owner or operator must compare the new estimate with the trustee's most recent
					 annual valuation of the trust fund. If the value of the fund is less than the
					 amount of the new estimate, the owner or operator, within 60 days after the
					 change in the cost estimate, must either deposit an amount into the fund so
					 that its value after this deposit at least equals the amount of the current
					 closure cost estimate, or obtain other financial assurance as specified in this
					 section to cover the difference.
(7) If the value of the trust fund is greater
					 than the total amount of the current closure cost estimate, the owner or
					 operator may submit a written request to the director for release of the amount
					 in -excess of the current closure cost estimate.
(8) If an owner or operator substitutes other
					 financial assurance as specified in this section for all or part of the trust
					 fund, he may submit a written request to the director for release of the amount
					 in excess of the current closure cost estimate covered by the trust
					 fund.
(9) Within 60 days after
					 receiving a request from the owner or operator for release of funds as
					 specified in paragraph (a) (7) or (8) of this section, the director will
					 instruct the trustee to release to the owner or operator such funds as the
					 director specifies in writing.
(10)
					 After beginning partial or final closure, an owner or operator or another
					 person authorized to conduct partial or final closure may request
					 reimbursements for partial or final closure expenditures by submitting itemized
					 bills to the director. The owner or operator may request reimbursements for
					 partial closure only if sufficient funds are remaining in the trust fund to
					 cover the maximum costs of closing the facility over its remaining operating
					 life. No later than 60 days after receiving bills for partial or final closure
					 activities, the director will instruct the trustee to make reimbursements in
					 those amounts as the director specifies in writing, if the director determines
					 that the partial or final closure expenditures are in accordance with the
					 approved closure plan, or otherwise justified. If the director has reason to
					 believe that the maximum cost of closure over the remaining life of the
					 facility will be significantly greater than the value of the trust fund, he may
					 withhold reimbursements of such amounts as he deems prudent until he
					 determines, in accordance with § 265.143(h) that the owner or operator is
					 no longer required to maintain financial assurance for final closure of the
					 facility. If the director does not instruct the trustee to make such
					 reimbursements, he will provide to the owner or operator a detailed written
					 statement of -reasons.
(11) The
					 director will agree to termination of the trust when:
(i) An owner or operator substitutes
					 alternate financial assurance as specified in this section; or
(ii) The director releases the owner or
					 operator from the requirements of this section in accordance with §
					 265.143(h).