California Code of Regulations › Title 22 - Social Security › Division 4.5 - Environmental Health Standards for the Management of Hazardous Waste › Chapter 14 - Standards for Owners and Operators of Hazardous Waste Transfer, Treatment, Storage, and Disposal Facilities › Article 8 - Financial Requirements › Section 66264.145 - Financial Assurance for Postclosure Care

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
An owner or operator of a hazardous waste management unit
					 subject to the requirements of section
					 66264.144 shall establish and
					 demonstrate to the Department financial assurance for postclosure care in
					 accordance with the approved postclosure plan for the facility 60 days prior to
					 the initial receipt of hazardous waste or the effective date of the regulation,
					 whichever is later. The owner or operator shall choose from the following
					 options as specified in subsections (a) through (f) and (i) of this
					 section.
(a) Postclosure trust fund.
(1) An owner or operator may satisfy the
				  requirements of this section by establishing a postclosure trust fund which
				  conforms to the requirements of this subsection and submitting an originally
				  signed duplicate of the trust agreement to the Department. An owner or operator
				  of a new facility shall submit the originally signed duplicate of the trust
				  agreement to the Department at least 60 days before the date on which hazardous
				  waste is first received for disposal. The trustee shall be an entity which 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 shall
				  be identical to the wording specified in section
				  66264.151, subsection (a)(1). The
				  trust agreement shall contain original signatures and shall be accompanied by a
				  formal certification of acknowledgment (for example, see section
				  66264.151, subsection (a)(2)).
				  Schedule A of the trust agreement shall be updated within 60 days after a
				  change in the amount of the current postclosure cost estimate covered by the
				  agreement.
(3) Payments into the
				  trust fund shall be made annually by the owner or operator over the ten (10)
				  years beginning with the establishment of the trust fund, or the term of the
				  initial RCRA 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 postclosure
				  trust fund shall be made as follows.
(A) for
				  an existing facility, the first payment shall be made at the time the trust
				  fund is established; a receipt from the trustee for this payment shall be
				  submitted by the owner or operator to the Department. The first payment shall
				  be at least equal to the current postclosure cost estimate, except as provided
				  in subsection (g) of this section, divided by the number of years in the pay-in
				  period. Subsequent payments shall be made no later than 30 days after each
				  anniversary date of the first payment. The amount of each subsequent payment
				  shall be determined by this formula:
Next payment =
CE-CV
Y
where CE is the current postclosure cost estimate, CV is
					 the current value of the trust fund and Y is the number of years remaining in
					 the pay-in period.
(B) for a
				  new facility, the first payment shall be made before the initial receipt of
				  hazardous waste for disposal. A receipt from the trustee for this payment shall
				  be submitted by the owner or operator to the Department before this initial
				  receipt of hazardous waste. The first payment shall be at least equal to the
				  current postclosure cost estimate, except as provided in subsection (g) of this
				  section, divided by the number of years in the pay-in period. Subsequent
				  payments shall be made no later than 30 days after each anniversary date of the
				  first payment. The amount of each subsequent payment shall be determined by
				  this formula:
Next payment =
CE-CV
Y
where CE is the current postclosure cost estimate, CV is
					 the current value of the trust fund, and Y is the number of years remaining in
					 the pay-in period.
(C) if an
				  owner or operator establishes a trust fund as specified in section
				  66265.145, subsection (a) of this
				  division, and the value of that trust fund is less than the current postclosure
				  cost estimate when a permit is awarded for the facility, the amount of the
				  current postclosure cost estimate still to be paid into the fund shall be paid
				  in over the pay-in period as defined in subsection (a)(3) of this section.
				  Payments shall continue to be made no later than 30 days after each anniversary
				  date of the first payment made pursuant to chapter 15 of this division. The
				  amount of each payment shall be determined by this formula:
Next payment =
CE-CV
Y
where CE is the current postclosure 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 deposit the full amount of the current
				  postclosure cost estimate at the time the fund is established. However, the
				  value of the fund shall be maintained at no less than the value that the fund
				  would have if annual payments were made as specified in subsection (a)(3) of
				  this section.
(5) If the owner or
				  operator establishes a postclosure trust fund after having used one or more
				  alternate mechanisms specified in this section or in section
				  66265.145 of this division, the
				  first payment shall 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 as applicable.
(6) After the pay-in period is completed,
				  whenever the current postclosure cost estimate changes during the operating
				  life of the facility, the owner or operator shall 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, shall either deposit an
				  amount into the fund so that its value after this deposit at least equals the
				  amount of the current postclosure 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 postclosure cost estimate, the owner or operator may submit a
				  written request to the Department for release of the amount in excess of the
				  current postclosure 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 Department for
				  release of the amount in excess of the current postclosure 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) of this section, the
				  Department will instruct the trustee to release to the owner or operator such
				  funds as the Department specifies in writing.
(10) Before final postclosure occurs, the
				  value of the trust fund shall equal the amount of the current postclosure cost
				  estimate. If the value of the fund is less than the amount of the current
				  estimate, the owner or operator shall either deposit an amount into the fund so
				  that its value after this deposit at least equals the amount of the current
				  postclosure cost estimate, or obtain other financial assurance, as specified in
				  this section, to cover the difference.
(11) During the period of postclosure care,
				  the Department shall approve a release of funds if the owner or operator
				  demonstrates to the satisfaction of the Department that the value of the trust
				  fund exceeds the remaining cost of postclosure care.
(12) An owner or operator or any other person
				  authorized to conduct postclosure care may request reimbursements for
				  postclosure care expenditures by submitting itemized bills to the Department.
				  Within 60 days after receiving bills for postclosure care activities, the
				  Department shall instruct the trustee to make reimbursements in those amounts
				  as the Department specifies in writing, if the Department determines that the
				  postclosure care expenditures are in accordance with the approved postclosure
				  plan or otherwise justified. If the Department does not instruct the trustee to
				  make such reimbursements, the owner or operator shall be provided with a
				  detailed written statement of reasons.
(13) The Department shall agree to
				  termination of the trust when:
(A) an owner or
				  operator substitutes alternate financial assurance as specified in this
				  section; or
(B) the Department
				  releases the owner or operator from the requirements in accordance with
				  subsection (j) of this section.