California Code of Regulations › Title 27 - Environmental Protection › Division 2 - Solid Waste › Subdivision 1 - Consolidated Regulations for Treatment, Storage, Processing or Disposal of Solid Waste › Chapter 6 - Financial Assurances at Solid Waste Facilities and at Waste Management Units for Solid Waste › Subchapter 3 - Allowable Mechanisms › Article 2 - Calrecycle - Financial Assurance Mechanisms › Section 22248 - CalRecycle - Closure and/or Postclosure Maintenance and/or Reasonably Foreseeable Corrective Action Insurance

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) The
						issuer of the insurance policy shall be an insurer, including a captive
						insurance company that, at a minimum, is licensed by the California Department
						of Insurance to transact the business of insurance in the State of California
						as an admitted carrier.
(b) If
						coverage is not available as specified in ¶(a), the operator may seek
						coverage from an insurer, including a captive insurance company that, at a
						minimum, shall be eligible to provide insurance as an excess or surplus lines
						insurer in California.
(c) If
						coverage is obtained as described in ¶(b), the insurance shall be
						transacted by and through a surplus lines broker currently licensed under the
						regulations of the California Department of Insurance [California Insurance
						Code (CIC), Division 1, Part 2, Chapter 6] and upon the terms and conditions
						prescribed by the California Department of Insurance.
(d) CalRecycle or its designee may object to
						the use of any insurer at anytime, whether before or after placement of
						coverage based on information obtained from, but not limited to, the Surplus
						Line Association of California, Best's Insurance Reports, and/or the Non-
						Admitted Insurers Quarterly List.
(e) The closure or postclosure maintenance
						insurance or reasonably foreseeable corrective action policy shall guarantee
						that funds will be available to close the solid waste landfill whenever closure
						occurs or to provide postclosure maintenance for the solid waste landfill
						whenever the postclosure maintenance period begins or provide for corrective
						action for the solid waste landfill if corrective action is deemed necessary,
						whichever is applicable. The policy shall also guarantee that once the closure
						or postclosure maintenance or corrective action program begins, the insurer
						will be responsible for the paying out of funds to the operator or person
						authorized to conduct closure or postclosure maintenance or corrective action,
						up to an amount equal to the face amount of the policy.
(f) The insurance policy shall be issued for
						a face amount at least equal to the most recently approved closure and/or
						postclosure maintenance and/or reasonably foreseeable corrective action cost
						estimate(s) whichever is applicable, unless the policy is being used in
						combination with another acceptable mechanism. The term "face amount" means the
						total amount the insurer is obligated to pay under the policy. Actual payments
						by the insurer will not change the face amount, although the insurer's future
						liability may be lowered by the amount of the payments.
(g) An operator, or any other person
						authorized to conduct closure or postclosure maintenance or corrective action,
						may receive disbursements for closure or postclosure maintenance or corrective
						action expenditures, which ever is applicable. Requests for disbursements will
						be granted by the insurer only if the expenditures have been reviewed and
						approved in writing by CalRecycle or its designee.
(h) Notwithstanding any other provisions of
						this section, if either partial or complete closure, postclosure maintenance or
						corrective action activities are ordered by CalRecycle, EA, RWQCB, or other
						government entity or court of competent jurisdiction as a result of failure by
						the operator or other authorized person to conduct such activities, the policy
						shall also guarantee that the insurer shall be responsible for paying out funds
						to CalRecycle for deposit into a special account established by CalRecycle for
						closure, postclosure maintenance or corrective action activities of the
						facility. The policy shall further guarantee that the insurer shall, without
						delay, pay to CalRecycle the amount CalRecycle requests, up to an amount equal
						to the face amount of the policy, regardless of any remaining premiums to be
						paid. CalRecycle requests for payment will be based on current estimated
						expenses as determined by CalRecycle for closure, postclosure maintenance or
						corrective action activities. Any payments made by the insurer that exceed the
						actual expenses incurred in performing the insured activity will be repaid to
						the insurer at the completion of the insured activity.
(i) Each policy shall contain a provision
						allowing assignment of the policy to a successor operator. Such assignment may
						be conditional upon consent of the insurer, provided that such consent is not
						unreasonably refused.
(j) Except as
						provided in §
												22231, the insurer may not cancel,
						terminate, or fail to renew the policy.
(k) For insurance policies providing coverage
						for postclosure maintenance, commencing on the date that liability to make
						payments pursuant to the policy accrues, the insurer shall thereafter annually
						increase the face amount of the policy. Such increases must be equivalent to
						the face amount of the policy, less any payments made, multiplied by an amount
						equivalent to 85 percent of the most recent investment rate or of the
						equivalent coupon-issue yield announced by the U.S. Treasury for 26-week
						Treasury securities.
(l) The
						operator may cancel the insurance policy only if alternate financial assurance
						is substituted as specified in §
												22227, or if the operator is no
						longer required to demonstrate financial responsibility in accordance with the
						requirements of Subchapter 2 of this Chapter.
(m) Each closure and/or postclosure
						maintenance and/or reasonably foreseeable corrective action insurance policy
						shall be evidenced by a certificate of insurance established by using form
						CalRecycle 106 (02/2010). Each certificate of insurance shall contain the
						insurer's warranty that the policy conforms in all respects with the
						requirements of this Subdivision, as applicable, and as such regulations were
						constituted on the date the policy is certified to on an annual basis. In
						addition, the insurer shall agree that any provision of the policy inconsistent
						with these regulations is amended to eliminate such inconsistency by submittal
						of the certification for closure and/or postclosure maintenance and/or
						reasonably foreseeable corrective action insurance.
1. New
						  section filed 6-18-97; operative 7-18-97 (Register 97, No. 25).
2.
						  Amendment of subsections (a), (b) and (e), new subsection (h), subsection
						  relettering, and amendment of newly designated subsection (m) filed 5-9-2002;
						  operative 6-8-2002 (Register 2002, No. 19).
3. Amendment of section
						  heading and subsection (j) filed 2-25-2008; operative 2-25-2008 pursuant to
						  Government Code section
						  11343.4
						  (Register 2008, No. 9).
4. Amendment of section heading and
						  subsections (d), (g), (h), (j) and (m) filed 4-9-2010; operative 7-1-2010
						  (Register 2010, No. 15).
Note: Authority cited: Section
							 40502,
							 Public Resources Code. Reference: Sections
							 43103
							 and
							 43500-
							 43610,
							 Public Resources Code.