Illinois Administrative Code › Title 35 - ENVIRONMENTAL PROTECTION › Part 724 - STANDARDS FOR OWNERS AND OPERATORS OF HAZARDOUS WASTE TREATMENT, STORAGE, AND DISPOSAL FACILITIES › Subpart H - FINANCIAL REQUIREMENTS › Section 724.243 - Financial Assurance for Closure

Current through Register Vol. 48, No. 28, July 12, 2024
An owner or operator of each facility must establish
				  financial assurance for closure of the facility. The owner or operator must
				  choose from the options that are specified in subsections (a) through
				  (f).
a) Closure Trust Fund
1) An owner or operator may satisfy the
				requirements of this Section by establishing a closure trust fund that conforms
				to the requirements of this subsection (a) and submitting an original signed
				duplicate of the trust agreement to the Agency. An owner or operator of a new
				facility must submit the original signed duplicate of the trust agreement to
				the Agency at least 60 days before the date on which hazardous waste is first
				received for treatment, storage or disposal. The trustee must be an entity that
				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 must be
				that specified in Section
				724.251,
				and the trust agreement must be accompanied by a formal certification of
				acknowledgment, as specified in Section 724.251. Schedule A of the trust
				agreement must be updated within 60 days after a change in the amount of the
				current 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 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 closure trust fund must be made as
				follows:
A) For a new facility, the first
				payment must be made before the initial receipt of hazardous waste for
				treatment, storage, or disposal. A receipt from the trustee for this payment
				must be submitted by the owner or operator to the Agency before this initial
				receipt of hazardous waste. The first payment must be at least equal to the
				current closure cost estimate, except as provided in subsection (g), divided by
				the number of years in the pay-in period. Subsequent payments must be made no
				later than 30 days after each anniversary date of the first payment. The amount
				of each subsequent payment must be determined by the following formula:
Next Payment =
Click here to view
				  image
Where:
CE
=
the current closure cost estimate
CV
=
the current value of the trust fund
Y
=
the number of years remaining in the pay-in
							 period
B) If
				an owner or operator establishes a trust fund as specified in 35 Ill. Adm. Code
				725.243(a)
				and the value of that trust fund is less than the current closure cost estimate
				when a permit is awarded for the facility, the amount of the current closure
				cost estimate still to be paid into the trust fund must be paid in over the
				pay-in period as defined in subsection (a)(3). Payments must continue to be
				made no later than 30 days after each anniversary date of the first payment
				made pursuant to 35 Ill. Adm. Code 725. The amount of each payment must be
				determined by the following formula:
Next Payment =
Click here to view
				  image
Where:
CE
=
the current closure cost estimate
CV
=
the current value of the trust fund
Y
=
the number of years remaining in the pay-in
							 period
4) The owner or operator may accelerate
				payments into the trust fund or may deposit the full amount of the current
				closure cost estimate at the time the fund is established. However, the owner
				or operator 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 subsection
				(a)(3).
5) If the owner or operator
				establishes a closure trust fund after having used one or more alternate
				mechanisms specified in this Section or in 35 Ill. Adm. Code 725.243, its 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 (a) and 35 Ill. Adm. Code 725.243, as
				applicable.
6) After the pay-in
				period is completed, whenever the current closure cost estimate changes, 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 60 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
				closure cost estimate or obtain other financial assurance as specified in this
				Section to cover the difference.
7)
				If the value of the trust fund is greater than the total amount of the current
				closure cost estimate, the owner or operator may submit a written request to
				the Agency for release of the amount in excess of the current 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, it may submit a written request to the
				Agency for release of the amount in excess of the current closure 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), the Agency must instruct
				the trustee to release to the owner or operator such funds as the Agency
				specifies in writing.
10) After
				beginning partial or final closure, an owner or operator or another person
				authorized to conduct partial or final closure may request reimbursement for
				closure expenditures by submitting itemized bills to the Agency. The owner or
				operator may request reimbursement for partial closure only if sufficient funds
				are remaining in the trust fund to cover the maximum costs of closing the
				facility over its remaining operating life. Within 60 days after receiving
				bills for partial or final closure activities, the Agency must instruct the
				trustee to make reimbursement in those amounts as the Agency specifies in
				writing if the Agency determines that the partial or final closure expenditures
				are in accordance with the approved closure plan, or otherwise justified. If
				the Agency determines that the maximum cost of closure over the remaining life
				of the facility will be significantly greater than the value of the trust fund,
				it must withhold reimbursement of such amounts as it deems prudent until it
				determines, in accordance with subsection (i), that the owner or operator is no
				longer required to maintain financial assurance for final closure of the
				facility. If the Agency does not instruct the trustee to make such
				reimbursements, the Agency must provide the owner or operator with a detailed
				written statement of reasons.
11)
				The Agency must agree to termination of the trust when either of the following
				occurs:
A) An owner or operator substitutes
				alternate financial assurance, as specified in this Section; or
B) The Agency releases the owner or operator
				from the requirements of this Section in accordance with subsection
				(i).