Michigan Administrative Code › Department - Environmental Quality › Office of Waste Management & Radiological Protection › Hazardous Waste Management › Part 7 - FINANCIAL CAPABILITY › Section R. 299.9704 - Trust fund

Current through Vol. 24-12, July 15, 2024
Rule 704.
(1) An
				  owner or operator may satisfy the financial assurance requirements of R
				  299.9703 by establishing a trust fund for closure or post-closure, or both,
				  which conforms to the requirements of this rule. The trustee shall be a bank or
				  other financial institution which has the authority to act as a trustee and
				  whose trust operations are regulated and examined by a federal or state agency,
				  and the trust agreement shall be executed on a form approved by the
				  director.
(2) The trust fund shall
				  be funded at 100% of the closure and post-closure cost estimate approved at the
				  time of execution. Additional payments to the trust fund shall be made by the
				  owner or operator to maintain 100% funding when the closure or post-closure
				  cost estimates, or both, are increased.
(3) If the value of the trust fund is more
				  than the total amount of the current closure or post-closure cost estimate, or
				  both, the owner or operator may submit a written request to the director for
				  release of the amount in excess of the current closure or post-closure cost
				  estimate.
(4) If an owner or
				  operator substitutes other financial assurance, as specified in this part, 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 or
				  post-closure cost estimate covered by the trust fund.
(5) Within 60 days after receiving a request
				  from the owner or operator for release of funds as specified in subrules (3) or
				  (4) of this rule, the director shall instruct the trustee to release to the
				  owner or operator such funds as the director specifies in writing.
(6) After beginning partial or final closure,
				  an owner or operator or any other person authorized to perform closure, partial
				  closure, or post-closure care may request reimbursements for closure, partial
				  closure, or post-closure expenditures by submitting itemized bills to the
				  director. 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 closure, partial closure, or post-closure care
				  activities, the director shall determine whether the closure, partial closure,
				  or post-closure care expenditures, or both, are in accordance with the closure
				  plan or otherwise justified, and, if so, he or she shall instruct the trustee
				  to make reimbursement in such amounts as the director specifies in writing. If
				  the director does not instruct the trustee to make such reimbursements, the
				  director shall provide the owner or operator with a detailed written statement
				  of reasons.
(7) If the director has
				  reason to believe that the cost of closure or post-closure care, or both, will
				  be significantly more than the value of the trust fund, the director may
				  withhold reimbursement of such amounts as he or she deems prudent until he or
				  she determines, in accordance with R 299.9703(6), that the owner or operator is
				  no longer required to maintain financial assurance for closure or post-closure
				  care, or both.
(8) During the
				  period of post-closure care, the director may approve a release of funds if the
				  owner or operator demonstrates to the director that the value of the trust fund
				  exceeds the remaining cost of post-closure care.
(9) The director shall agree to termination
				  of the trust when an owner or operator substitutes alternate financial
				  assurance as specified in this part and the director releases the owner or
				  operator from the requirements of this part in accordance with R
				  299.9703(5).
(10) If the director
				  issues a notice of violation or other order to the owner or operator alleging
				  violation of closure or post-closure requirements, or both, the director may,
				  after providing the owner or operator 7 days' notice and opportunity for
				  hearing, access the funds in the trust to correct the violations, complete
				  closure, and maintain the facility in accordance with the approved
				  plans.