Illinois Administrative Code › Title 35 - ENVIRONMENTAL PROTECTION › Part 724 - STANDARDS FOR OWNERS AND OPERATORS OF HAZARDOUS WASTE TREATMENT, STORAGE, AND DISPOSAL FACILITIES › Subpart H - FINANCIAL REQUIREMENTS › Section 724.241 - Definitions of Terms as Used in This Subpart

Current through Register Vol. 48, No. 28, July 12, 2024
For the purposes of this Subpart H, the following terms have
				  the given meanings:
a) "Closure plan" means the plan for closure prepared in
				  accordance with the requirements of Section
				  724.212.
b) "Current closure cost estimate" means that the most recent
				  of the estimates prepared in accordance with Section
				  724.242(a),
				  (b), and (c).
c) "Current post-closure cost estimate" means the most recent
				  of the estimates prepared in accordance with Section
				  724.244(a),
				  (b), and (c).
d) "Parent corporation" means a corporation that directly
				  owns at least 50 percent of the voting stock of the corporation which is the
				  facility owner or operator; the latter corporation is deemed a "subsidiary" of
				  the parent corporation.
e) "Post-closure plan" means the plan for post-closure care
				  prepared in accordance with the requirements of Sections
				  724.217
				  through
				  724.220.
f) The following terms are used in the specifications for the
				  financial test for closure, post-closure care, and liability coverage. The
				  definitions are intended to assist in the understanding of these regulations
				  and are not intended to limit the meanings of terms in a way that conflicts
				  with generally accepted accounting practices.
"Assets" means all existing and all probable future economic
				  benefits obtained or controlled by a particular entity.
"Current assets" means cash or other assets or resources
				  commonly identified as those that are reasonably expected to be realized in
				  cash or sold or consumed during the normal operating cycle of the
				  business.
"Current liabilities" means obligations whose liquidation is
				  reasonably expected to require the use of existing resources properly
				  classifiable as current assets or the creation of other current
				  liabilities.
"Current plugging and abandonment cost estimate" means the
				  most recent of the estimates prepared in accordance with 35 Ill. Adm. Code
				  704.212(a),
				  (b), and (c).
"Independently audited" refers to an audit performed by an
				  independent certified public accountant in accordance with generally accepted
				  auditing standards.
"Liabilities" means probable future sacrifices of economic
				  benefits arising from present obligations to transfer assets or provide
				  services to other entities in the future as a result of past transactions or
				  events.
"Net working capital" means current assets minus current
				  liabilities.
"Net worth" means total assets minus total liabilities and is
				  equivalent to owner's equity.
"Tangible net worth" means the tangible assets that remain
				  after deducting liabilities; such assets would not include intangibles, such as
				  goodwill and rights to patents or royalties.
g) In the liability insurance requirements the terms "bodily
				  injury" and "property damage" have the meanings given below. The Board intends
				  the meanings of other terms used in the liability insurance requirements to be
				  consistent with their common meanings within the insurance industry. The
				  definitions given below of several of the terms are intended to assist in the
				  understanding of these regulations and are not intended to limit their meanings
				  in a way that conflicts with general insurance industry usage.
"Accidental occurrence" means an accident, including
				  continuous or repeated exposure to conditions, that results in bodily injury or
				  property damage neither expected nor intended from the standpoint of the
				  insured.
"Bodily injury" means bodily injury, sickness, or disease
				  sustained by a person, including death resulting from any of these at any time.
				  However, this term does not include those liabilities that, consistent with
				  standard insurance industry practices, are excluded from coverage in liability
				  insurance policies for bodily injury.
BOARD NOTE: Derived from the Insurance Services Office, Inc.
				  definition of this term.
"Environmental damage" means the injurious presence in or
				  upon land, the atmosphere, or any watercourse or body of water of solid,
				  liquid, gaseous, or thermal contaminants, irritants, or pollutants.
BOARD NOTE: Derived from the Insurance Services Office, Inc.
				  definition of this term. This term is used in the definition of "pollution
				  incident".
"Legal defense costs" means any expenses that an insurer
				  incurs in defending against claims of third parties brought under the terms and
				  conditions of an insurance policy.
"Nonsudden accidental occurrence" means an occurrence that
				  takes place over time and involves continuous or repeated exposure.
"Pollutants" means any solid, liquid, gaseous or thermal
				  irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis,
				  chemicals, and waste.
BOARD NOTE: Derived from the Insurance Services Office, Inc.
				  definition of this term. This definition is used in the definition of
				  "pollution incident".
"Pollution incident" means emission, discharge, release, or
				  escape of pollutants into or upon land, the atmosphere or any watercourse or
				  body of water, provided that such emission, discharge, release, or escape
				  results in "environmental damage". The entirety of any such emission,
				  discharge, release, or escape must be deemed to be one "pollution incident".
				  "Waste" includes materials to be recycled, reconditioned, or reclaimed. The
				  term "pollution incident" includes an "occurrence".
BOARD NOTE: Derived from the Insurance Services Office, Inc.
				  definition of this term. This definition is used in the definition of "property
				  damage".
"Property damage" means as follows:
Either of the following:
Physical injury to, destruction of or contamination of
				  tangible property, including all resulting loss of use of that property;
				  or
Loss of use of tangible property that is not physically
				  injured, destroyed or contaminated, but has been evacuated, withdrawn from use
				  or rendered inaccessible because of a "pollution incident".
This term does not include those liabilities that, consistent
				  with standard insurance industry practices, are excluded from coverage in
				  liability insurance policies for property damage.
BOARD NOTE: Derived from the Insurance Services Office, Inc.
				  definition of this term.
"Sudden accidental occurrence" means an occurrence that is
				  not continuous or repeated in nature.
h) "Substantial business relationship" means the extent of a
				  business relationship necessary under applicable state law to make a guarantee
				  contract issued incident to that relationship valid and enforceable. A
				  "substantial business relationship" must arise from a pattern of recent or
				  ongoing business transactions, in addition to the guarantee itself, such that
				  the Agency can reasonably determine that a substantial business relationship
				  currently exists between the guarantor and the owner or operator that is
				  adequate consideration to support the obligation of the guarantee relating to
				  any liability towards a third party. "Applicable state law", as used in this
				  subsection (h), means the laws of the State of Illinois and those of any sister
				  state that govern the guarantee and the adequacy of the
				  consideration.
BOARD NOTE: Derived from
					 40 CFR
					 264.141(h) (2017) and the
					 discussion at 53 Fed. Reg. 33938, 33941-33943 (Sep. 1, 1988). This term is also
					 independently defined in 35 Ill. Adm. Code 725.141(h) and
					 727.240(b)(8).
					 Any Agency determination that a substantial business relationship exists is
					 subject to Board review pursuant to Section 40 of the
					 Act.