Michigan Administrative Code › Department - Environmental Quality › Office of Waste Management & Radiological Protection › Hazardous Waste Management › Part 7 - FINANCIAL CAPABILITY › Section R. 299.9703 - Financial assurance for closure and postclosure care

Current through Vol. 24-12, July 15, 2024
Rule 703.
(1) The
				  owner or operator of each facility shall establish financial assurance for
				  closure of the facility by utilizing the options specified in R 299.9704 to R
				  299.9709. The owner or operator of each disposal facility shall establish
				  financial assurance for postclosure care of the facility utilizing the options
				  specified in R 299.9704 to R 299.9709. An owner or operator of a new facility
				  shall submit these documents to the director or his or her designee not less
				  than 60 days before the date on which hazardous waste is first received for
				  treatment, storage, or disposal. An owner or operator shall submit all
				  revisions and renewals of the documents to the director within 60 days of the
				  revision or renewal.
(2) An owner
				  or operator may satisfy the requirements of this rule by establishing more than
				  1 financial mechanism per facility. These mechanisms are limited to trust
				  funds, surety bonds, letters of credit, certificates of deposit and time
				  deposit accounts, and insurance. The mechanisms shall be as specified in this
				  part, except that it is the combination of mechanisms, rather than the single
				  mechanism, which shall provide financial assurance for an amount at least equal
				  to the current closure and postclosure cost estimate. The director may use any
				  or all of the mechanisms to provide for closure and postclosure care of the
				  facility.
(3) An owner or operator
				  may use a financial assurance mechanism specified in this part to meet the
				  requirements of this rule for more than 1 facility. Evidence of financial
				  assurance submitted to the director shall include a list showing, for each
				  facility, the site identification number, name, address, and the amount of
				  funds for closure and postclosure assured by the mechanism. If the facilities
				  covered by the mechanism are in more than 1 EPA region, identical evidence of
				  financial assurance shall be submitted to, and maintained with, the regional
				  administrators of all such EPA regions. The amount of funds available through
				  the mechanism shall be not less than the sum of funds that would be available
				  if a separate mechanism had been established and maintained for each facility.
				  In directing funds available through the mechanism for closure and postclosure
				  care of any of the facilities covered by the mechanism, the director may direct
				  only the amount of funds designated for that facility, unless the owner or
				  operator agrees to the use of additional funds available under the
				  mechanism.
(4) An owner or operator
				  may satisfy the requirements for financial assurance for both closure and
				  postclosure care for one or more facilities by using a trust fund, surety bond,
				  letter of credit, certificate of deposit and time deposit account, or insurance
				  that meets the requirements of this part for both closure and postclosure care.
				  The amount of funds available through the mechanism shall not be less than the
				  sum of funds that would be available if a separate mechanism had been
				  established and maintained for financial assurance of closure and of
				  postclosure care.
(5) Within 60
				  days after receiving certifications from the owner or operator and an
				  independent registered professional engineer that closure has been accomplished
				  in accordance with the closure plan, or that the postclosure care period has
				  been completed for a hazardous waste disposal unit in accordance with the
				  approved postclosure plan, the director shall notify the owner or operator, in
				  writing, that he or she is no longer required by this section to maintain
				  financial assurance for closure of the particular facility or postclosure care
				  of the particular unit, unless the director has reason to believe that closure
				  or postclosure care has not been in accordance with the approved plan. The
				  director shall provide the owner or operator with a detailed written statement
				  of any such reason to believe that closure or postclosure care has not been in
				  accordance with the approved plan.
(6) An owner or operator shall notify the
				  director, by certified mail, of the commencement of a voluntary or involuntary
				  proceeding under the bankruptcy provisions of Public Law 95-598, 11 U.S.C.
				  §§1 to 151302, naming the owner or operator as debtor, within 10 days
				  after commencement of the proceeding.
(7) An owner or operator who fulfills the
				  requirements of this rule by obtaining a trust fund, surety bond, letter of
				  credit, certificate of deposit or time deposit account, or insurance policy
				  shall be deemed to be without the required financial assurance or liability
				  coverage in the event of bankruptcy of the trustee or issuing institution, a
				  suspension or revocation of the authority of the trustee institution to act as
				  trustee, or a suspension or revocation of the authority of the institution
				  issuing the surety bond, letter of credit, certificate of deposit or time
				  deposit account, or insurance policy to issue such instruments. The owner or
				  operator shall establish other financial assurance or liability coverage within
				  60 days after such an event.
(8)
				  The director may replace all or part of the requirements of this rule with
				  alternative requirements for financial assurance if the director does all of
				  the following:
(a) Prescribes alternative
				  requirements for the hazardous waste management unit under 40 C.F.R.
				  §§264.90(f) or 264.110(c), or both, or 265.90(f) or 265.110(d), or
				  both.
(b) Determines that it is not
				  necessary to apply the requirements of this rule because the alternative
				  financial assurance requirements will protect human health and the
				  environment.
(c) Specifies the
				  alternative financial assurance requirements in an operating license or
				  enforceable document.