North Carolina Administrative Code › Title 15A - Environmental Quality › Chapter 13 - SOLID WASTE MANAGEMENT › Subchapter B - SOLID WASTE MANAGEMENT › Section .1800 - FINANCIAL ASSURANCE REQUIREMENTS FOR SOLID WASTE MANAGEMENT FACILITIES › Section 13B .1805 - ALLOWABLE MECHANISMS FOR FINANCIAL ASSURANCE

Current through Register Vol. 39, No. 2, July 15, 2024
(a)
				  Pursuant to
				  G.S.
				  130A-295.2, owners and operators of solid
				  waste management facilities that are required to establish financial assurance
				  in accordance with this Section shall choose one of the mechanisms or a
				  combination of mechanisms in Paragraph (e) of this Rule to cover the cost of
				  closure, post-closure care, corrective action programs, and potential
				  assessment and corrective action.
(b) When multiple financial assurance
				  mechanisms are established, no more than one allowable mechanism shall be
				  provided by the same financial institution or its corporate entities. The
				  corporate financial test provided by a corporation and the corporate guarantee
				  provided by a corporate parent, sibling, or grandparent shall not be combined
				  if the financial statements of the two firms are consolidated. A surety bond
				  mechanism guaranteeing performance shall not be combined with other mechanisms.
				  The mechanisms shall be submitted to the Division as original signed hard
				  copies, and the language of each mechanism shall be identical to the language
				  specified in Rule .1806 of this Section for that mechanism.
(c) A corporate seal shall be required to
				  complete the financial assurance mechanism as part of the certification of
				  acknowledgement required in the mechanism language in Rule .1806 of this
				  Section for a corporate owner or operator using a trust fund, surety bond
				  guaranteeing payment or performance, corporate financial test, and corporate
				  guarantee as set forth in Paragraph (e) of this Rule. When a corporate seal is
				  required to certify a financial assurance mechanism but the corporation does
				  not have a corporate seal, a member of the corporation's senior management or a
				  representative of the board of directors shall submit to the Division a copy of
				  the corporation's bylaws, a corporate ownership organization chart describing
				  the relationship of the facility owner and operator to the corporation and its
				  parent companies, contact information for the board of directors or senior
				  management for the corporation, and a statement on corporate letterhead stating
				  the signee has the authority to execute correspondence and financial assurance
				  mechanisms on behalf of the corporation, pursuant to
				  G.S.
				  130A-295.2(f). The
				  documentation shall be submitted to the Division of Waste Management, Solid
				  Waste Section at 1646 Mail Service Center, Raleigh, NC 27699. Senior management
				  for the corporation shall be one of the following positions: the Chief
				  Executive Officer or President, the Chief Operating Officer or Vice President,
				  or the Chief Financial Officer or Treasurer.
(d) The July 1, 2010 edition of
				  40 CFR
				  258.74 is incorporated by reference and can
				  be obtained free of charge from the Division's website at
				  http://go.ncdenr.gov/fa. When used in
				  40 CFR
				  258.74, except where the context requires
				  references to remain without substitution, "United States" and "State" shall
				  mean the State of North Carolina; "Agency" shall mean the Department of
				  Environmental Quality; "Director" shall mean the Secretary of the Department of
				  Environmental Quality; "municipal solid waste landfills facility(ies)",
				  "MSWLF(s)", or "MSWLF unit(s)" shall mean solid waste management facility or
				  facilities; and "owner or operator" shall mean the owner and operator of a
				  solid waste management facility.
(e) The following mechanisms may be used to
				  meet the requirements of this Section for financial assurance.
(1) A trust fund as set forth in
				  40 CFR
				  258.74(a), including the
				  following requirements.
(A) The trust fund
				  may be elected as a standby trust mechanism to accompany the surety bond
				  mechanism in Subparagraph (2) of this Paragraph, or the letter of credit
				  mechanism in Subparagraph (3) of this Paragraph; or may be elected as a
				  standalone funded trust mechanism.
(B)
												40 CFR
				  258.74(a)(7) is revised to
				  state: "The owner or operator, or other person authorized to conduct closure,
				  post-closure care, or corrective action activities may request reimbursement
				  from the trustee for these expenditures. Requests for reimbursement shall be
				  granted only if sufficient funds are remaining in the trust fund to cover the
				  remaining costs of closure, post-closure care, corrective action programs, or
				  potential assessment and corrective action, and if justification and
				  documentation of the cost is submitted to the Division and placed in the
				  operating record."
(C) The trust
				  agreement shall be accompanied by a certification of acknowledgement as
				  specified following the language of the trust agreement in Rule .1806(1) of
				  this Section.
(D) Schedule A of the
				  trust agreement shall be updated no less than 60 days after any change in the
				  amount of the current cost estimate covered by the agreement.