Illinois Administrative Code › Title 35 - ENVIRONMENTAL PROTECTION › Part 725 - INTERIM STATUS STANDARDS FOR OWNERS AND OPERATORS OF HAZARDOUS WASTE TREATMENT, STORAGE, AND DISPOSAL FACILITIES › Subpart H - FINANCIAL REQUIREMENTS › Section 725.241 - Definitions of Terms as Used in this Subpart H

Current through Register Vol. 48, No. 28, July 12, 2024
a) "Closure plan" means the plan for closure
				prepared in accordance with the requirements of Section
				725.212.
b) "Current closure cost estimate" means the
				most recent of the estimates prepared in accordance with Sections
				725.242(a),
				(b), and (c).
c) "Current post-closure cost estimate" means
				the most recent of the estimates prepared in accordance with Sections
				725.244(a),
				(b), and (c).
d) "Parent corporation" means a corporation
				that directly owns at least 50 percent of the voting stock of the corporation
				that 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
				725.217
				through
				725.220.
f) The following terms are used in the
				specifications for the financial tests 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" mean all existing and all probable future economic
				  benefits obtained or controlled by a particular entity.
"Current assets" mean 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.
"Pollutant" 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
					 265.141(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 724.141(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.