Alabama Administrative Code › Title 335 - ALABAMA DEPARTMENT OF ENVIRONMENTAL MANAGEMENT › LAND DIVISION - BROWNFIELD REDEVELOPMENT AND VOLUNTARY CLEANUP PROGRAM › Chapter 335-15-5 - FINANCIAL ASSURANCE › Section 335-15-5-.02 - Financial Assurance

Current through Register Vol. 42, No. 9, June 28, 2024
The applicant shall demonstrate proof of financial assurance
				  of his or her ability to implement the Voluntary Cleanup Plan, including
				  operations and maintenance activities, in accordance with r.
				  335-15-5-.02 for any voluntary
				  cleanup plan that requires operation and maintenance (e.g. groundwater
				  monitoring, groundwater remediation, maintenance of cap, operation of treatment
				  system) for the site following the initial cleanup activity (e.g. removal
				  action, risk assessment, etc.) no later than 60 days following approval of the
				  plan. Types of financial assurance include:
(a)
Assets of the
				applicant
. A certified financial report demonstrating suitable
				financial integrity and available resources sufficient to satisfy the projected
				cleanup cost.
(b)
Cleanup trust fund
.
1. A cleanup trust fund which conforms to the
				requirements of
				335-15-5-.02(b)2.
				An applicant must submit an originally signed duplicate of the trust agreement
				to the Department no later than 30 days following establishment of the trust
				fund or within 60 days after a change in the current cleanup cost
				estimate.
2. Payments into the fund
				shall be made quarterly for short term remedial actions and annually for long
				term remedial actions. The pay-in-period is equal to one-half of the estimated
				remedial action period. The first payment must be made at the time the trust
				fund is established and receipt from the trustee must be submitted by the
				applicant to the Department no later than 30 days following the payment date.
				Subsequent payments must be made no later than 30 days after the anniversary
				date of the first payment. The amount of each payment shall be determined by
				the following formula:
Payment amount = CE - CV / Y
where CE is the remedial action cost estimate at the time of
				  the payment; CV is the current value of the trust fund at the time of the
				  payment; and Y is the number of remaining quarter years for short term cleanup
				  or years for long term remediation in the pay-in-period, at the time of the
				  payment.
3. The applicant
				may accelerate payments into the trust fund or deposit the full amount of the
				current remedial action cost estimate at the time the fund is established.
				However, the value of the fund must be maintained at no less than the value
				that the fund would have if annual payments were made as specified in
				335-15-5-.02(b)2.
4. If during the remedial action
				period, the value of the trust fund is greater than the total amount of the
				current remedial action cost estimate, the applicant may submit a written
				request to the Department for release of the amount in excess of the current
				remedial action cost estimate.
5.
				After the pay-in-period is completed, the Department may approve a release of
				funds during the remedial action period, if the applicant demonstrates to the
				Department that the value of the trust fund exceeds the remaining cost of
				remedial action.
6. The Department
				will agree to termination of the trust when:
(i) An applicant substitutes alternate
				financial assurance as specified in
				335-15-5-.02(b);
				or
(ii) The Department releases the
				applicant from the requirements of
				335-15-5-.02(2)
				in accordance with
				335-15-5-.02(6).