California Code of Regulations › Title 22 - Social Security › Division 4.5 - Environmental Health Standards for the Management of Hazardous Waste › Chapter 14 - Standards for Owners and Operators of Hazardous Waste Transfer, Treatment, Storage, and Disposal Facilities › Article 8 - Financial Requirements › Section 66264.143 - Financial Assurance for Closure

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
An owner or operator of each facility shall establish and
					 demonstrate to the Department financial assurance for closure of the facility.
					 The owner or operator shall choose from the options as specified in subsections
					 (a) through (f) and (i) of this section or section
					 66264.146 of this article.
(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 subsection and submitting an originally
				  signed duplicate of the trust agreement to the Department. An owner or operator
				  of a new facility shall submit the originally signed duplicate of the trust
				  agreement to the Department at least 60 days before the date on which hazardous
				  waste is first received for transfer, treatment, storage or disposal. 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),
				  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 closure cost estimate covered by the trust
				  agreement.
(3) Payments into the
				  trust fund shall be made annually by the owner or operator over the term of the
				  initial RCRA permit, or 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 closure trust fund
				  shall be made as follows:
(A) For existing
				  facilities, the first payment shall be made at the time the trust fund is
				  established; a receipt from the trustee for this payment shall be submitted by
				  the owner or operator to the Department. The first payment shall be at least
				  equal to the current closure cost estimate, except as provided in subsection
				  (g) of this section, divided by the number of years in the pay-in period.
				  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 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.
(B) For a new
				  facility, the first payment shall be made before the initial receipt of
				  hazardous waste for transfer, treatment, storage or disposal. A receipt from
				  the trustee for this payment shall be submitted by the owner or operator to the
				  Department before this initial receipt of hazardous waste. The first payment
				  shall be at least equal to the current closure cost estimate, except as
				  provided in subsection (g) of this section, divided by the number of years in
				  the pay-in period. 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 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.
(C) If an
				  owner or operator establishes a trust fund as specified in section
				  66265.143(a) of
				  this division, and the value of that trust fund is less than the current
				  closure cost estimate when a permit is awarded for the facility, the amount of
				  the current closure cost estimate still to be paid into the trust fund shall be
				  paid in over the pay-in period as defined in subsection (a)(3) of this section.
				  Payments shall continue to be made no later than 30 days after each anniversary
				  date of the first payment made pursuant to chapter 15 of this division. The
				  amount of each payment must be determined by this formula:
Next payment =
CE-CV
Y
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 the full
				  amount of the current closure cost estimate may be deposited 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
				  closure trust fund after having used one or more alternate mechanisms specified
				  in this section or in section
				  66265.143 of this division, 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 according to
				  specifications of this subsection and section
				  66265.143, subsection (a) of this
				  division, as applicable.
(6) After
				  the pay-in period is completed, whenever the current closure cost estimate
				  changes, 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 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 Department 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, a written request may be submitted to the Department 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 subsections (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 beginning final closure, the
				  value of the trust fund shall equal the amount of the current closure 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
				  closure cost estimate, or obtain other financial assurance, as specified in
				  this section, to cover the difference.
(11) 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 Department. 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. Within 60 days after receiving
				  bills for partial or final closure activities, the Department shall instruct
				  the trustee to make reimbursements in those amounts as the Department specifies
				  in writing, if the Department determines that the partial or final closure
				  expenditures are in accordance with the approved closure plan, or otherwise
				  justified. If the Department 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, reimbursements of such amounts may be
				  withheld until the Department determines, in accordance with subsection (j) of
				  this section that the owner or operator is no longer required to maintain
				  financial assurance for final closure of the facility. If the Department does
				  not instruct the trustee to make such reimbursements, the Department shall
				  provide the owner or operator with a detailed written statement of
				  reasons.
(12) The Department shall
				  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 (j) of this section.