California Code of Regulations › Title 22 - Social Security › Division 4.5 - Environmental Health Standards for the Management of Hazardous Waste › Chapter 45 - Requirements for Units and Facilities Deemed to Have a Permit by Rule › Article 1 - Permit by Rule › Section 67450.13 - Financial Assurance for Closure of Transportable Treatment Units and Fixed Treatment Units Which Are Authorized Under Permit by Rule and Generators Who Are Authorized Under Conditional Authorization

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Notwithstanding any other requirements of
				  this article, this section shall apply to all owners or operators of
				  transportable treatment units (TTUs) (as defined in section
				  66260.10) deemed to have a permit
				  by rule pursuant to section
				  67450.2, subsection (a), with
				  owners or operators of fixed treatment units (FTUs) (as defined in section
				  66260.10) deemed to have a permit
				  by rule pursuant to section
				  67450.2, subsection (b), and
				  generators operating pursuant to a grant of Conditional Authorization (CA) (as
				  defined in Health & Safety Code section
				  25110.9.1, subdivision (a)).
				  Agencies of the State and Federal governments are exempt from the requirements
				  of this section. For purposes of this section, state government shall not
				  include municipal, local, city, county, city-county special district government
				  or any subdivisions thereof.
(1) The TTU owner
				  or operator, FTU owner or operator, or a generator operating pursuant to a
				  grant of Conditional Authorization shall prepare a written estimate of the cost
				  of closing each unit. The estimate shall equal the actual cost or the costs
				  estimated by an owner or operator or a generator that would be incurred for
				  closing a treatment unit when using the owner or operator or generator's own
				  staff and/or personal equipment. The closure cost estimate may take into
				  account any salvage value that may be realized from the sale of wastes,
				  facility structure or equipment, land or other facility assets. This estimate
				  shall be submitted as an attachment to the Certification of Financial Assurance
				  for Permit by Rule and Conditionally Authorized Operations page(s) of the
				  Unified Program Consolidated Form (x/99)).
(2) The TTU owner or operator, FTU owner or
				  operator, or a generator operating pursuant to a grant of Conditional
				  Authorization shall adjust the closure cost estimate for inflation by March 1
				  of each year. The adjustment shall be made as specified in subsections
				  (a)(2)(A) and (a)(2)(B) of this section, using an inflation factor derived from
				  the annual Implicit Price Deflator for Gross National Product as published by
				  the U.S. Department of Commerce in its Survey of Current Business. The
				  inflation factor is the result of dividing the latest published annual Deflator
				  by the Deflator of the previous year.
(A) The
				  first adjustment is made by multiplying the closure cost estimate by the
				  inflation factor. The result is the adjusted closure cost estimate.
(B) Subsequent adjustments are made by
				  multiplying the latest adjusted closure cost estimate by the latest inflation
				  factor.
(3) The TTU owner
				  or operator or FTU owner or operator shall revise the closure cost estimate
				  whenever a change in the closure plan increases the cost of closure. The
				  revised closure cost estimate shall be adjusted for inflation as specified in
				  subsection (a)(2) of this section. The owner or operator shall maintain the
				  following at the facility during the operating life of the facility: the latest
				  closure cost estimate prepared in accordance with subsection (a)(1) of this
				  section, and the latest closure cost estimate adjusted in accordance with
				  subsection (a)(2) of this section.
(4) A generator operating pursuant to a grant
				  of Conditional Authorization shall revise the closure cost estimate whenever a
				  change occurs that increases the cost of closure. The revised closure cost
				  estimate shall be adjusted for inflation as specified in subsection (a)(2) of
				  this section. The owner or operator shall maintain the following at the
				  facility during the operating life of the facility: the latest closure cost
				  estimate prepared in accordance with subsection (a)(1) of this section, and the
				  latest closure cost estimate adjusted in accordance with subsection (a)(2) of
				  this section.
(5) On or after
				  October 1, 1996, financial assurance for closure of a TTU, FTU, or treatment
				  unit operated by a generator authorized pursuant to a grant of Conditional
				  Authorization shall be obtained by one of the following methods:
(A) a closure trust fund, as described in
				  section 66265.143, subsection
				  (a);
(B) a surety bond guaranteeing
				  payment into a closure trust fund, as described in section
				  66265.143, subsection
				  (b);
(C) a closure letter of
				  credit, as described in section
				  66265.143, subsection
				  (c);
(D) closure insurance, as
				  described in section
				  66265.143, subsection
				  (d);
(E) a financial test and
				  corporate guarantee for closure, as described in section
				  66265.143, subsection
				  (e);
(F) Use of multiple financial
				  mechanisms for closure costs as described in section
				  66265.143, subsection (f);
				  or
(G) an alternative financial
				  mechanism for closure costs, as described in sections
				  66265.143, subsection (h), or
				  subsection (c) of this section. A certificate of deposit, as described in
				  section 3-104(2)(c) of
				  the Uniform Commercial Code, or a savings account as described in section
				  4-104(a) of the
				  Uniform Commercial Code, are examples of alternative financial
				  mechanisms.
(6) A FTU
				  owner or operator, or a generator operating pursuant to a grant of Conditional
				  Authorization may request permission to fund the financial mechanism over a
				  period not to exceed five (5) years from the CUPA or the authorized agency. The
				  request to the CUPA or authorized agency, shall contain the reason(s) and
				  information as specified in subsections (c)(1) and (c)(2) of this section. A
				  CUPA or the authorized agency, shall evaluate and respond to each request in
				  writing within sixty (60) days of receipt.
(7)
(A)
				  Notwithstanding any other provision of regulation, financial assurance for
				  closure of a FTU, operated pursuant to permit by rule, or treatment unit
				  operated by a generator authorized pursuant to a grant of Conditional
				  Authorization shall establish the CUPA, or the authorized agency, as the
				  beneficiary of any financial documents to be submitted to comply with the
				  requirements of this section.
(B)
				  Financial assurance for closure of a TTU shall establish the Department as the
				  beneficiary of any financial documents to be submitted to comply with the
				  requirements of this section. (8)(A) On and after January 1, 1997, a financial
				  assurance mechanism shall be submitted with the certification required in
				  subsection (b) to the CUPA or the authorized agency, unless the FTU owner or
				  operator, operating pursuant to permit by rule, or a generator operating
				  pursuant to a grant of Conditional Authorization is exempt by subsection (e) of
				  this section.