Indiana Administrative Code › Title 329 - SOLID WASTE MANAGEMENT DIVISION › Article 3.1 - HAZARDOUS WASTE MANAGEMENT PERMIT PROGRAM AND RELATED HAZARDOUS WASTE MANAGEMENT › Rule 14 - Financial Requirements for Owners and Operators of Interim Status Hazardous Waste Treatment, Storage, and Disposal Facilities › Section 14-8 - Corrective action or closure insurance option

Current through July 10, 2024
Authority: IC 13-14-8; IC 13-22-2; IC
				  13-22-8-1; IC
				  13-22-9-7
Affected: IC 13-22
Sec. 8.
(a) An owner
				or operator may satisfy the requirements of sections 4 through 7 of this rule,
				this section, and sections 9 through 11 of this rule by obtaining corrective
				action or closure insurance that conforms to the requirements of this section
				and submitting a certificate of the insurance to the commissioner. The owner or
				operator shall submit the certificate of insurance to the commissioner or
				establish other financial assurance in accordance with sections 5 through 7 of
				this rule, this section, and section 9 of this rule. At a minimum, the insurer
				must be licensed to transact the business of insurance, or eligible to provide
				insurance as an excess or surplus lines insurer, in one (1) or more
				states.
(b) The wording of the
				certificate of insurance must be identical to the wording specified in section
				30 of this rule.
(c) The corrective
				action or closure insurance policy must be issued for a face amount at least
				equal to the current corrective action or closure cost estimate except as
				provided in section 10 of this rule. As used in this section, "face amount"
				means the total amount the insurer is obligated to pay under the policy. Actual
				payments by the insurer will not change the face amount, although the insurer's
				future liability will be lowered by the amount of the payments.
(d) The corrective action or closure
				insurance policy must guarantee that funds will be available to perform
				corrective action or close the facility whenever corrective action or final
				closure occurs. The policy must guarantee that once corrective action or final
				closure begins, the insurer is responsible for paying out funds up to an amount
				equal to the face amount of the policy, upon the direction of the commissioner,
				to the party or parties as the commissioner specifies.
(e) After beginning corrective action,
				partial closure, or final closure, an owner or operator or any other person
				authorized to conduct corrective action or closure may request reimbursements
				for corrective action or closure expenditures by submitting itemized bills to
				the commissioner. The owner or operator may request reimbursements for partial
				closure only if the remaining value of the policy is sufficient to cover the
				maximum costs of closing the facility over its remaining operating life. Within
				sixty (60) days after receiving bills for corrective action or closure
				activities, the commissioner shall instruct the insurer to make reimbursements
				in amounts the commissioner specifies in writing if the commissioner determines
				that the corrective action, partial closure, or final closure expenditures are
				in accordance with the approved corrective action or closure plan or otherwise
				justified. If the commissioner has reason to believe that the maximum cost of
				corrective action or closure over the remaining life of the facility will be
				significantly greater than the face amount of the policy, the commissioner may
				withhold reimbursement of amounts the commissioner deems prudent until it is
				determined, in accordance with section 12 of this rule, that the owner or
				operator is no longer required to maintain financial assurance for corrective
				action or final closure of the particular facility. If the commissioner does
				not instruct the insurer to make reimbursements, the commissioner shall provide
				to the owner or operator a detailed written statement of reasons.
(f) The owner or operator shall maintain the
				policy in full force and effect until the commissioner consents to termination
				of the policy by the owner or operator in accordance with subsection (j).
				Failure to pay the premium, without substitution of alternate financial
				assurance in accordance with sections 5 through 7 of this rule, this section,
				and section 9 of this rule, constitutes a violation of this rule warranting a
				remedy the commissioner deems necessary and is authorized to make. The
				violation is deemed to begin upon receipt by the commissioner of a notice of
				future cancellation, termination, or failure to renew due to nonpayment of the
				premium rather than upon the date of expiration.
(g) Each policy must contain a provision
				allowing assignment of the policy to a successor owner or operator. The
				assignment may be conditional upon consent of the insurer provided consent is
				not unreasonably refused.
(h) The
				policy must provide that the insurer may not cancel, terminate, or fail to
				renew the policy except for failure to pay the premium. The automatic renewal
				of the policy must, at a minimum, provide the insured with the option of
				renewal at the face amount of the expiring policy. If there is a failure to pay
				the premium, the insurer may elect to cancel, terminate, or fail to renew the
				policy by sending notice by certified mail to the owner or operator and the
				commissioner. Cancellation, termination, or failure to renew may not occur
				during the one hundred twenty (120) days beginning with the date of receipt of
				the notice by both the commissioner and the owner or operator as evidenced by
				the return receipts. Cancellation, termination, or failure to renew may not
				occur and the policy must remain in full force and effect in the event that on
				or before the date of expiration:
(1) the
				commissioner deems the facility abandoned;
(2) interim status is terminated or
				revoked;
(3) corrective action or
				closure is ordered by the commissioner, U.S. EPA, or court of competent
				jurisdiction;
(4) the owner or
				operator is named as debtor in a voluntary or involuntary bankruptcy proceeding
				under
				11
				U.S.C. 101 et seq.; or
(5) the premium due is
				paid.