California Code of Regulations › Title 22 - Social Security › Division 4.5 - Environmental Health Standards for the Management of Hazardous Waste › Chapter 15 - Interim Status Standards for Owners and Operators of Hazardous Waste Transfer, Treatment, Storage, and Disposal Facilities › Article 8 - Financial Requirements › Section 66265.145 - Financial Assurance for Postclosure Care

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
An owner or operator of a facility with a hazardous waste
					 disposal unit shall establish and demonstrate to the Department financial
					 assurance for postclosure care of the disposal unit(s). The owner or operator
					 shall choose from the options as specified in subsections (a) through (e) and
					 (h) of this section.
(a) Postclosure
				  trust fund.
(1) An owner or operator may
				  satisfy the requirements of this section by establishing a postclosure trust
				  fund which conforms to the requirements of this subsection and submitting an
				  originally signed duplicate of the trust agreement to the Department. The
				  trustee shall 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 shall be identical to the wording specified in section
				  66264.151, subsection (a)(1). The
				  trust agreement shall contain original signatures and shall be accompanied by a
				  formal certification of acknowledgment (for example, see section
				  66264.151, subsection (a)(2)).
				  Schedule A of the trust agreement shall be updated within 60 days after a
				  change in the amount of the current postclosure cost estimate covered by the
				  agreement.
(3) Payments into the
				  trust fund shall be made annually by the owner or operator over the ten (10)
				  years beginning with the establishment of the trust fund 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 postclosure trust fund shall be made as follows:
(A) The first payment shall be at least equal
				  to the current postclosure cost estimate, except as provided in subsection (f)
				  of this section, divided by the number of years in the pay-in period.
(B) Subsequent payments shall be made no
				  later than 30 days after each anniversary date of the first payment. The amount
				  of each subsequent payment shall be determined by this formula:
Next payment = (CE-CV)/Y
where CE is the current postclosure 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 deposit the full amount of the current
				  postclosure cost estimate at the time the fund is established. However, the
				  value of the fund shall be maintained at no less than the value that the fund
				  would have if annual payments were made as specified in subsection (a)(3) of
				  this section.
(5) If the owner or
				  operator establishes a postclosure trust fund after having used one or more
				  alternate mechanisms specified in this section, the first payment shall 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 subsection
				  (a)(3) of this section.
(6) After
				  the pay-in period is completed, whenever the current postclosure cost estimate
				  changes during the operating life of the facility, the owner or operator shall
				  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, shall either deposit an amount into the fund so that its value after
				  this deposit at least equals the amount of the current postclosure cost
				  estimate, or obtain other financial assurance as specified in this section to
				  cover the difference.
(7) During
				  the operating life of the facility, if the value of the trust fund is greater
				  than the total amount of the current postclosure cost estimate, the owner or
				  operator may submit a written request to the Department for release of the
				  amount in excess of the current postclosure 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, the owner or operator may submit a written request to the Department for
				  release of the amount in excess of the current postclosure 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 subsection (a)(7) or (8) of this section, the
				  Department will instruct the trustee to release to the owner or operator such
				  funds as the Department specifies in writing.
(10) Before final postclosure occurs, the
				  value of the trust fund shall equal the amount of the current postclosure cost
				  estimate. If the value of the fund is less than the amount of the current
				  estimate, the owner or operator shall either deposit an amount into the fund so
				  that its value after this deposit at least equals the amount of the current
				  postclosure cost estimate, or obtain other financial assurance, as specified in
				  this section, to cover the difference.
(11) During the period of postclosure care,
				  the Department shall approve a release of funds if the owner or operator
				  demonstrates to the satisfaction of the Department that the value of the trust
				  fund exceeds the remaining cost of postclosure care.
(12) An owner or operator or any other person
				  authorized to conduct postclosure care may request reimbursements for
				  postclosure expenditures by submitting itemized bills to the Department. Within
				  60 days after receiving bills for postclosure care activities, the Department
				  will instruct the trustee to make reimbursements in those amounts as the
				  Department specifies in writing, if the Department determines that the
				  postclosure expenditures are in accordance with the approved postclosure plan
				  or otherwise justified. If the Department does not instruct the trustee to make
				  such reimbursements, the owner or operator shall be provided a detailed written
				  statement of reasons.
(13) The
				  Department will agree to termination of the trust when:
(A) an owner or operator substitutes
				  alternate financial assurance as specified in this section; or
(B) the Department releases the owner or
				  operator from the requirements in accordance with subsection (i) of this
				  section.