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 11-265-143 - Financial assurance for closure

Current through June, 2024
By the effective date of these rules, an owner or operator
					 of each facility must establish financial assurance for closure of the
					 facility. He must choose from the options as specified in subsections (a)
					 through (e).
(a) Closure trust fund.
(1) An owner or operator may satisfy the
				  requirements of this section by establishing a 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 closure cost estimate covered by the agreement.
(3) Payments into the trust fund must be made
				  annually by the owner or operator over the twenty years beginning with the
				  effective date of these rules 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 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 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 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 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 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 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 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 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 director
				  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, he or she may submit a written request to the
				  director for release of the amount in excess of the current 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) After beginning
				  partial or final closure, an owner or operator or another person authorized to
				  conduct partial or final closure may request reimbursements for partial or
				  final closure expenditures by submitting itemized bills to the director. The
				  owner or operator may request reimbursements 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. No later than sixty
				  days after receiving bills for partial or final closure 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 partial
				  or final closure expenditures are in accordance with the approved closure plan,
				  or otherwise justified. If the director has reason to believe that the maximum
				  cost of closure over the remaining life of the facility will be significantly
				  greater than the value of the trust fund, he or she may withhold reimbursements
				  of such amounts as he or she deems prudent until he or she determines, in
				  accordance with subsection (h) that the owner or operator is no longer required
				  to maintain financial assurance for final closure of the facility. If the
				  director does not instruct the trustee to make such reimbursements, he or she
				  will provide to the owner or operator a detailed written statement of
				  reasons.
(11) 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).