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 14-32 - Wording of chief financial officer letters for liability coverage

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. 32.
A letter from the chief financial officer, as specified in
				  section 24 of this rule or
				  329 IAC
				  3.1-15-8(e),
				  329 IAC
				  3.1-15-10(g)), must be worded as
				  follows except that instructions in brackets are to be replaced with the
				  relevant information and the brackets deleted:
Letter from Chief Financial Officer (to demonstrate liability
				  coverage or to demonstrate both liability coverage and assurance of corrective
				  action, closure, or post-closure care).
[Address to commissioner of the Indiana Department of
				  Environmental Management, State of Indiana]
I am the chief financial officer of [firm's name and
				  address]. This letter is in support of the use of the financial test to
				  demonstrate financial responsibility for liability coverage [insert "and
				  corrective action, closure, and/or post-closure care" if applicable] in
				  accordance with
				  329
				  IAC 3.1-14 or
				  329
				  IAC 3.1-15.
[Complete the following paragraphs regarding facilities and
				  liability coverage. For each facility, include its U.S. EPA identification
				  number, name, and address. If there are no facilities that belong in a
				  particular paragraph, write "None" in the space indicated.]
The firm identified above is the owner or operator of the
				  following facilities for which liability coverage for [insert "sudden",
				  "nonsudden", or "both sudden and nonsudden"] accidental occurrences is being
				  demonstrated through the financial test specified in
				  329
				  IAC 3.1-14 or
				  329
				  IAC 3.1-15.
[Or]
The firm identified above guarantees, through the guarantee
				  specified in
				  329
				  IAC 3.1-14 and
				  329
				  IAC 3.1-15, liability coverage for [insert "sudden" or
				  "nonsudden" or "both sudden and nonsudden"] accidental occurrences at the
				  following facilities owned or operated by the following: ______________. The
				  firm identified above is [insert either or both, as applicable: "the direct or
				  higher tier parent corporation of the owner or operator" or "owned by the same
				  parent corporation as the parent corporation of the owner or operator and
				  receiving the following value in consideration of this guarantee
				  ________________."].
[If you are using the financial test to demonstrate coverage
				  of both liability and corrective action, closure, and/or post-closure care,
				  fill in the following four (4) paragraphs regarding facilities and associated
				  corrective action, closure, and post-closure cost estimates. For each facility,
				  include its U.S. EPA identification number, name, address, and current
				  corrective action, closure, and/or post-closure cost estimates. Identify each
				  cost estimate as to whether it is for corrective action, closure, or
				  post-closure care.]
1. The firm
				identified above owns or operates the following facilities for which financial
				assurance for corrective action, closure, or post-closure care or liability
				coverage is demonstrated through the financial test specified in
				329
				IAC 3.1-14 or
				329
				IAC 3.1-15. The current corrective action, closure,
				and/or post-closure cost estimates covered by the financial test are shown for
				each facility: ________.
2. The
				firm identified above guarantees, through the guarantee specified in
				329
				IAC 3.1-14 or
				329
				IAC 3.1-15, the corrective action, closure, and
				post-closure care or liability coverage of the following facilities owned or
				operated by the guaranteed party. The current cost estimates for the corrective
				action, closure, or post-closure care so guaranteed are shown for each
				facility: __________.
3. In states
				other than Indiana, this firm, as owner or operator or guarantor, is
				demonstrating financial assurance for the corrective action, closure, or
				post-closure care of the following facilities either to the United States
				Environmental Protection Agency (U.S. EPA) or to an authorized state through
				the use of a financial test
				329
				IAC 3.1-14 or
				329
				IAC 3.1-15. at least equivalent to 40 CFR 264 Subpart
				H or 40 CFR 265 Subpart H. The current corrective action, closure, and/or
				post-closure cost estimates covered by such a financial test are shown for each
				facility:____________.
4. The firm
				identified above owns or operates the following hazardous waste management
				facilities for which financial assurance for corrective action, closure, or, if
				a disposal facility, post-closure care is not demonstrated either to the U.S.
				EPA or a state through the financial test or any other financial assurance
				mechanism specified in 40 CFR 264 Subpart H and 40 CFR 265 Subpart H, or
				equivalent or substantially equivalent state mechanisms. The current corrective
				action, closure, and/or post-closure cost estimates not covered by such
				financial assurance are shown for each facility:_________.
This firm [insert "is required" or "is not required"] to file
				  a Form 10K with the Securities and Exchange Commission (SEC) for the latest
				  fiscal year.
The fiscal year of this firm ends on [month, day]. The
				  figures for the following items marked with an asterisk (*) are derived from
				  this firm's independently audited, year-end financial statements for the latest
				  completed fiscal year, ended [date].
[Fill in Part A if you are using the financial test to
				  demonstrate coverage ONLY for the liability requirements.]
Part A. Liability Coverage for Accidental Occurrences
[Fill in Alternative I if the criteria of
				  329 IAC 3.1-15-8(e)(1)(A)
				   or
				  329 IAC 3.1-14-24(f)(1)(A)
				   are used. Fill in Alternative II if the
				  criteria of
				  329 IAC 3.1-15-8(e)(1)(B)
				   or
				  329 IAC 3.1-14-24(f)(1)(B)
				   are used.]
Alternative I
1.
				Amount of annual aggregate liability coverage to be demonstrated.
				$_____
* 2. Current assets.
				$_____
* 3. Current liabilities.
				$_____
4. Net working capital (line
				2 minus line 3). $_____
* 5.
				Tangible net worth. $_____
* 6. If
				less than 90% of assets are located in the U.S., give total U.S. assets. $_____
YES NO
7.
				Is line 5 at least $10 million?
8.
				Is line 4 at least 6 times line 1?
9. Is line 5 at least 6 times line
				1?
* 10. Are at least 90% of assets
				located in the U.S.? If not, complete line 11.
11. Is line 6 at least 6 times line 1?
Alternative II
1.
				Amount of annual aggregate liability coverage to be demonstrated.
				$_____
2. Current bond rating of
				most recent issuance and name of rating service.
3. Date of issuance of bond.
4. Date of maturity of bond.
* 5. Tangible net worth. $_____
* 6. Total assets in U.S. (required only if
				less than 90% of assets are located in the U.S.). $_____
YES NO
7.
				Is line 5 at least $10 million?
8.
				Is line 5 at least 6 times line 1?
*
				9. Are at least 90% of assets located in the U.S.? If
				not, complete line 10.
10. Is line
				6 at least 6 times line 1?
[Fill in Part B if you are using the financial test to
				  demonstrate assurance of both liability coverage AND corrective action,
				  closure, and/or post-closure care.]
Part B. Corrective Action, Closure or Post-Closure Care and
				  Liability Coverage
[Fill in Alternative I if the criteria of
				  329 IAC
				  3.1-15-4(g)(1)(A)  or
				  329 IAC
				  3.1-15-6(g)(1)(A)  and
				  329 IAC 3.1-15-8(e)(1)(A)
				   are used or if
				  329 IAC
				  3.1-14-9(a)(1)  or
				  329
				  IAC 3.1-14-19(a)(1)  and
				  329 IAC 3.1-14-24(f)(1)(A)
				   are used. Fill in Alternative II if the
				  criteria of
				  329 IAC
				  3.1-15-4(g)(1)(B)  or
				  329 IAC
				  3.1-15-6(g)(1)(B)  and 329 IAC 3.1-
				  15-8(e)(1)(B) are used or if
				  329 IAC
				  3.1-14-9(a)(2)  or
				  329
				  IAC 3.1-14-19(a)(2)  and
				  329 IAC 3.1-14-24(f)(1)(B)
				   are used.]
Alternative I
1. Sum
				of current corrective action, closure, and post-closure cost estimates (total
				of all cost $_____ estimates listed above).
2. Amount of annual aggregate liability
				coverage to be demonstrated. $_____
3. Sum of lines 1 and 2. $_____
* 4. Total liabilities (if any portion of
				your corrective action, closure, or post-closure cost estimates is included in
				your total liabilities, you may deduct that portion from this line and add that
				amount to lines 5 and 6).$_____
*
				5. Tangible net worth. $_____
*
				6. Net worth. $_____
*
				7. Current assets. $_____
*
				8. Current liabilities. $_____
9. Net working capital (line 7 minus line 8).
				$_____
* 10. The sum of net income
				plus depreciation, depletion, and amortization. $_____
*
				11. Total assets in U.S. (required only if less than
				90% of assets located in the U.S.). $_____
YES NO
12.
				Is line 5 at least $10 million?
13.
				Is line 5 at least 6 times line 3?
14. Is line 9 at least 6 times line
				3?
* 15. Are at least 90% of assets
				located in the U.S.? If not, complete line 16.
16. Is line 11 at least 6 times line
				3?
17. Is line 4 divided by line 6
				less than 2.0?
18. Is line 10
				divided by line 4 greater than 0.1?
19. Is line 7 divided by line 8 greater than
				1.5?
Alternative II
1. Sum
				of current corrective action, closure, and post-closure cost estimates (total
				of all cost $_____ estimates listed above).
2. Amount of annual aggregate liability
				coverage to be demonstrated. $_____
3. Sum of lines 1 and 2. $_____
4. Current bond rating of most recent
				issuance and name of rating service.
5. Date of issuance of bond.
6. Date of maturity of bond.
* 7. Tangible net worth (if any portion of
				the corrective action, closure, or post-closure costestimates is included in
				"total liabilities" on your financial statements, you may add that portion to
				this line). $_____
* 8. Total
				assets in the U.S. (required only if less than 90% of assets are located in the
				U.S.). $_____
YES NO
9.
				Is line 7 at least $10 million?
10.
				Is line 7 at least 6 times line 3?
*
				11. Are at least 90% of assets located in the U.S.? If
				not, complete line 12.
12. Is line
				8 at least 6 times line 3?
I hereby certify that the wording of this letter is identical
				  to the wording specified in 329 IAC 3.1-14-32 as such rule was constituted on
				  the date shown immediately below.
[Signature]
[Name]
[Title]
[Date]