Hawaii Administrative Rules › Title 11 - DEPARTMENT OF HEALTH › Subtitle 1 - GENERAL DEPARTMENTAL PROVISIONS › Chapter 264 - HAZADOUS WASTE MANAGEMENT STANDARDS FOR OWNERS AND OPERATERS OF HAZADOUS WASTE TREATMENT, STORAGE, AND DISPOSAL FACILITIES › Subchapter H - FINANCIAL REQUIREMENTS › Section 11-264-143 - Financial assurance for closure

Current through June, 2024
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 (f).
(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. An owner or operator
				  of a new facility must submit the originally signed duplicate of the trust
				  agreement to the director at least sixty days before the date on which
				  hazardous waste is first received for treatment, storage, or disposal. 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 term of the initial RCRA or State
				  hazardous waste management 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:
(i) 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 director 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 11-264-143(g), divided
				  by the number of years in the pay-in period. 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,
(ii) If an
				  owner or operator establishes a trust fund as specified in subsection
				  11-265-143(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 paragraph (a)(3). Payments must
				  continue to be made no later than thirty days after each anniversary date of
				  the first payment made pursuant to chapter 11-265. The amount of each 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 may deposit the full amount of the current
				  closure cost estimate at the time the fund is established. However, he 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 or in section 11-265-143, 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 according to specifications of this
				  subsection and subsection 11-265-143(a), 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 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 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 (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. Within 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 may
				  withhold reimbursements of such amounts as he deems prudent until he
				  determines, in accordance with subsection 11-264-143(i) 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 will provide the owner or operator with 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
				  11-264-143(i).