California Code of Regulations › Title 27 - Environmental Protection › Division 2 - Solid Waste › Subdivision 1 - Consolidated Regulations for Treatment, Storage, Processing or Disposal of Solid Waste › Chapter 6 - Financial Assurances at Solid Waste Facilities and at Waste Management Units for Solid Waste › Subchapter 3 - Allowable Mechanisms › Article 2 - Calrecycle - Financial Assurance Mechanisms › Section 22253 - CalRecycle - Insurance and Environmental Fund

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) To
						be eligible to use this mechanism to demonstrate financial responsibility for
						compensating third parties for bodily injury and property damage, the operator
						shall fulfill the requirements of (a) through (e) of this section no later than
						July 2, 1992.
(b) The operator
						shall submit a signed certification to CalRecycle on form CalRecycle 110
						(03/17), which is incorporated by reference; and
(c) The operator shall submit certification
						of coverage to demonstrate the establishment and maintenance of comprehensive
						general liability insurance coverage with limits in at least the amounts
						specified in Article 3 of Subchapter 2 of this Chapter. This insurance must
						conform to the requirements of §
												22251 (a - d) and/or §
												22252(a);
						and
(d) The operator shall
						demonstrate the establishment of an environmental liability fund, which shall
						be fully funded, as described, before July 2, 1997. This means that the
						operator shall make the initial payment as described in (d)(3) by July 2, 1992
						and subsequent payments as described in section (d)(4) on July 1st of the
						following years: 1993, 1994, 1995, 1996, and 1997.
(1) The environmental liability fund shall
						have a trustee that is authorized to act as a trustee and whose trust
						operations are regulated and examined by a federal or state agency.
(2) The environmental liability fund shall be
						established by using form CalRecycle 111 (03/17), which is incorporated by
						reference.
(3) The funding of the
						environmental liability fund shall be initiated with a payment of $200,000 or a
						payment that is at least equal to the applicable aggregate liability coverage
						amount specified in Article 3 of Subchapter 2 of this Chapter, divided by 5,
						which is the maximum number of years in the pay-in period.
(4) On each anniversary date of July 1, the
						minimum payment shall be determined by this formula:
Minimum Payment =
AC - CV
Y + 1
where AC is the aggregate coverage required, CV is the
						  current value of the trust fund and Y is the number of years remaining in the
						  pay-in period.
(5) The
						operator may accelerate payments into the environmental liability fund.
						However, the value of the environmental liability fund shall be maintained at
						no less than the value that the environmental fund would have, if payments were
						made as specified in (d)(3) and (d)(4).
(6) If the value of the environmental
						liability fund becomes greater than the total amount of the applicable
						aggregate liability coverage, the operator may request in writing that the
						CIWMB authorize the release of the excess funds. CalRecycle shall review the
						request within 90 days of receipt of the request. If any excess funds are
						verified, CalRecycle shall instruct the trustee to release the
						funds.