Hawaii Administrative Rules › Title 11 - DEPARTMENT OF HEALTH › Subtitle 1 - GENERAL DEPARTMENTAL PROVISIONS › Chapter 265 - HAZARDOUS WASTE MANAGEMENT INTERIM STATUS STANDARDS FOR OWNERS OPERATORS OF HAZARDOUS WASTE TREATMENT, STORAGE AND DISPOSAL FACILITIES › Subchapter H - FINANCIAL REQUIREMENTS › Section 11-265-145 - Financial assurance for post-closure care

Current through June, 2024
By the effective date of these rules, an owner or operator
					 of a facility with a hazardous waste disposal unit must establish financial
					 assurance for post-closure care of the disposal unit(s).
(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. 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 7 years beginning from June 18, 1994, 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." Owners and operators who became subject to the regulations of
				  40 CFR Part 265 after April 7, 1982, shall make annual payments into the trust
				  fund over a pay-in period of 20 years beginning from the date the owner or
				  operator became subject to the regulations of 40 CFR 265, or over a pay-in
				  period that equals the remaining operating life of the facility as estimated in
				  the closure plan, whichever period is shorter. Owners and operators who become
				  subject to the regulations of this chapter after June 18, 1994, shall make
				  annual payments into the trust fund over a pay-in period of 20 years beginning
				  from the date the owner or operator becomes subject to the regulations of this
				  chapter, or over a pay-in period that equals the remaining operating life of
				  the facility as estimated in the closure plan, whichever period is shorter. The
				  payments into the post-closure trust fund must be made as follows:
(i) The first payment must be made by the
				  effective date of these rules, except as provided in paragraph (a)(5). The
				  first payment must be at least equal to the current post-closure cost estimate,
				  except as provided in subsection (f), divided by the number of years in the
				  pay-in period.
(ii) 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.
(4) The owner or operator may accelerate
				  payments into the trust fund or he or she may deposit the full amount of the
				  current post-closure cost estimate at the time the fund is established.
				  However, he or she 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, 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 as specified in paragraph (a) (3).
(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 or she 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 (a)(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 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
				  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 or she 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
				  (h).