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 725.243 - Financial Assurance for Closure

Current through Register Vol. 48, No. 28, July 12, 2024
An owner or operator of each facility must establish
				  financial assurance for closure of the facility. The owner or operator must
				  choose from the options specified in subsections (a) through (e).
a) Closure Trust Fund
1) An owner or operator may satisfy the
				requirements of this Section by establishing a closure trust fund that conforms
				to the requirements of this subsection and submitting an original, signed
				duplicate of the trust agreement to the Agency. The trustee must be an entity
				that 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 must be
				as specified in 35 Ill. Adm. Code
				724.251,
				and the trust agreement must be accompanied by a formal certification of
				acknowledgment, as specified in 35 Ill. Adm. Code 724.251. Schedule A of the
				trust agreement must be updated within 60 days after a change in the amount of
				the current closure cost estimate covered by the agreement.
3) Payments into the trust fund must be made
				annually by the owner or operator over the remaining operating life of the
				facility as estimated in the closure plan; this period is hereafter referred to
				as the "pay-in period". The payments into the closure trust fund must be made
				as follows:
A) The first payment must be at
				least equal to the current closure cost estimate, except as provided in
				subsection (f), divided by the number of years in the pay-in period.
B) Subsequent payments must be made no later
				than 30 days after each anniversary date of the first payment. The amount of
				each subsequent payment must be determined by this formula:
Next Payment
=
(
CE-CV
)
Y
Where:
CE
=
the current closure cost estimate
CV
=
the current value of the trust fund
Y
=
the number of years remaining in the pay-in
							 period
4) The owner or operator may accelerate
				payments into the trust fund or may deposit the full amount of the current
				closure cost estimate at the time the fund is established. However, the owner
				or operator must maintain the value of the fund at no less than the value that
				the fund would have if annual payments were made as specified in subsection
				(a)(3).
5) If the owner or operator
				establishes a closure trust fund after having used one or more alternate
				mechanisms specified in this Section, the owner or operator's first payment
				must 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).
6) After the pay-in period
				is completed, whenever the current closure cost estimate changes, the owner or
				operator must 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, must 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 Agency
				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, the owner or operator may submit a written
				request to the Agency 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 subsection
				(a)(7) or (a)(8), the Agency must instruct the trustee to release to the owner
				or operator such funds as the Agency specifies in writing.
10) After beginning partial or final closure,
				an owner or operator or another person authorized to conduct partial or final
				closure may request reimbursement for closure expenditures by submitting
				itemized bills to the Agency. The owner or operator may request reimbursement
				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 Agency must instruct the trustee to make reimbursement in those
				amounts as the Agency specifies in writing if the Agency determines that the
				partial or final closure expenditures are in accordance with the approved
				closure plan, or otherwise justified. If the Agency determines that the maximum
				cost of closure over the remaining life of the facility will be significantly
				greater than the value of the trust fund, it must withhold reimbursement of
				such amounts as it deems prudent until it determines, in accordance with
				subsection (h), that the owner or operator is no longer required to maintain
				financial assurance for final closure of the facility. If the Agency does not
				instruct the trustee to make such reimbursements, the Agency must provide the
				owner or operator a detailed written statement of reasons.
11) The Agency must agree to termination of
				the trust when either of the following occurs:
A) An owner or operator substitutes alternate
				financial assurance, as specified in this Section; or
B) The Agency releases the owner or operator
				from the requirements of this Section in accordance with subsection
				(h).