Hawaii Administrative Rules › Title 11 - DEPARTMENT OF HEALTH › Subtitle 1 - GENERAL DEPARTMENTAL PROVISIONS › Chapter 264 - HAZADOUS WASTE MANAGEMENT STANDARDS FOR OWNERS AND OPERATERS OF HAZADOUS WASTE TREATMENT, STORAGE, AND DISPOSAL FACILITIES › Subchapter H - FINANCIAL REQUIREMENTS › Section 11-264-145 - Financial assurance for post-closure care

Current through June, 2024
The owner or operator of a hazardous waste management unit
					 subject to the requirements of section
					 11-264-144 must establish
					 financial assurance for post-closure care in accordance with the approved
					 post-closure plan for the facility sixty days prior to the initial receipt of
					 hazardous waste or the effective date of the hazardous waste regulations,
					 whichever is later. He must choose from the following options:
(a) Post-closure trust fund.
(1) An owner or operator may satisfy the
				  requirements of this section by establishing a post-closure trust fund which
				  conforms to the requirements of this subsection and submitting an originally
				  signed duplicate of the trust agreement to the director. An owner or operator
				  of a new facility must submit the originally signed duplicate of the trust
				  agreement to the director at least sixty days before the date on which
				  hazardous waste is first received for disposal. The trustee must be an entity
				  which has the authority to act as a trustee and whose trust operations are
				  regulated and examined by the State.
(2) The wording of the trust agreement must
				  be identical to the wording specified in paragraph 11-264-151(a)(1), and the
				  trust agreement must be accompanied by a formal certification of acknowledgment
				  (for example, see paragraph 11-264-151(a)(2) ). Schedule A of the trust
				  agreement must be updated within sixty days after a change in the amount of the
				  current post-closure cost estimate covered by the agreement.
(3) Payments into the trust fund must be made
				  annually by the owner or operator over the term of the initial hazardous waste
				  management permit 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
				  post-closure trust fund must be made as follows:
(i) For a new facility, the first payment
				  must be made before the initial receipt of hazardous waste for disposal. A
				  receipt from the trustee for this payment must be submitted by the owner or
				  operator to the director before this initial receipt of hazardous waste. The
				  first payment must be at least equal to the current post-closure cost estimate,
				  except as provided in subsection 11-264-145(g), divided by the number of years
				  in the pay-in period. Subsequent payments must be made no later than thirty
				  days after each anniversary date of the first payment. The amount of each
				  subsequent payment must be determined by this formula:
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where CE is the current post-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.
(ii) If
				  an owner or operator establishes a trust fund as specified in subsection
				  11-265-145(a), and the value of that trust fund is less than the current
				  post-closure cost estimate when a permit is awarded for the facility, the
				  amount of the current post-closure cost estimate still to be paid into the fund
				  must be paid in over the pay-in period as defined in paragraph (a)(3). Payments
				  must continue to be made no later than thirty days after each anniversary date
				  of the first payment made pursuant to chapter 11-265. The amount of each
				  payment must be determined by this formula:
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where CE is the current post-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 he may deposit the full amount of the current
				  post-closure cost estimate at the time the fund is established. However, he
				  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 paragraph
				  (a)(3).
(5) If the owner or
				  operator establishes a post-closure trust fund after having used one or more
				  alternate mechanisms specified in this section or in section 11-265-145, his
				  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 according to
				  specifications of this subsection and subsection 11-265-145(a), as
				  applicable.
(6) After the pay-in
				  period is completed, whenever the current post-closure cost estimate changes
				  during the operating life of the facility, 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 sixty 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 post-closure cost estimate,
				  or obtain other financial assurance as specified in this section to cover the
				  difference.
(7) During the
				  operating life of the facility, if the value of the trust fund is greater than
				  the total amount of the current post-closure cost estimate, the owner or
				  operator may submit a written request to the director for release of the amount
				  in excess of the current post-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, he may submit a written request to the director for release of the amount
				  in excess of the current post-closure cost estimate covered by the trust
				  fund.
(9) Within sixty days after
				  receiving a request from the owner or operator for release of funds as
				  specified in paragraph (a)(7) or (8), the director will instruct the trustee to
				  release to the owner or operator such funds as the director specifies in
				  writing.
(10) During the period of
				  post-closure care, the director may approve a release of funds if the owner or
				  operator demonstrates to the director that the value of the trust fund exceeds
				  the remaining cost of post-closure care.
(11) An owner or operator or any other person
				  authorized to conduct post-closure care may request reimbursements for
				  post-closure care expenditures by submitting itemized bills to the director.
				  Within sixty days after receiving bills for post-closure care activities, the
				  director will instruct the trustee to make reimbursements in those amounts as
				  the director specifies in writing, if the director determines that the
				  post-closure care expenditures are in accordance with the approved post-closure
				  plan or otherwise justified. If the director does not instruct the trustee to
				  make such reimbursements, he will provide the owner or operator with a detailed
				  written statement of reasons.
(12)
				  The director will agree to termination of the trust when:
(i) An owner or operator substitutes
				  alternate financial assurance as specified in this section; or
(ii) The director releases the owner or
				  operator from the requirements of this section in accordance with subsection
				  11-264-145(i).