Texas Administrative Code › Title 30 - ENVIRONMENTAL QUALITY › Part 1 - TEXAS COMMISSION ON ENVIRONMENTAL QUALITY › Chapter 37 - FINANCIAL ASSURANCE › Subchapter F - FINANCIAL ASSURANCE MECHANISMS FOR LIABILITY › Section 37.501 - Trust Fund for Liability

Current through Reg. 49, No. 28; July 12, 2024
(a) An owner or
				  operator may satisfy the requirements of financial assurance for liability as
				  specified in Subchapter E of this chapter (relating to Financial Assurance
				  Requirements for Liability Coverage) by establishing a fully funded trust fund
				  that conforms to the requirements of this section, in addition to the
				  requirements specified in Subchapter A of this chapter (relating to General
				  Financial Assurance Requirements), and submitting an originally signed
				  duplicate of the executed trust agreement to the executive director.
(b) The trustee shall be an entity which has
				  the authority to act as a trustee and whose trust operations are regulated and
				  examined by a federal or state agency.
(c) The wording of the trust agreement must
				  be identical to the wording specified in §
										37.601(a)
				  of this title (relating to Trust Agreement for Liability), including a formal
				  certification of acknowledgment as specified in §
										37.601(b)
				  of this title.
(d) The trust fund
				  for liability shall be funded for the full amount of the liability coverage to
				  be provided by the trust before it may be relied upon to satisfy the
				  requirements of financial assurance for liability. If at any time after the
				  trust is created the amount of funds in the trust is reduced below the full
				  amount of the liability coverage to be provided, the owner or operator, by the
				  anniversary date of the establishment of the trust, shall either add sufficient
				  funds to the trust to cause its value to equal the full amount of liability
				  coverage to be provided, or obtain another financial assurance mechanism as
				  specified in this subchapter to cover the difference. For purposes of this
				  section, "the full amount of liability coverage to be provided" means the
				  amount of coverage for sudden and/or nonsudden accidental occurrences required
				  to be provided less the amount of financial assurance for liability coverage
				  being provided by other financial assurance mechanisms being used to
				  demonstrate financial assurance by the owner or operator.
(e) If the value of the trust fund is greater
				  than the total amount of the required liability coverage, the owner or operator
				  may submit a written request to the executive director for release of the
				  amount in excess of the required liability coverage.
(f) If an owner or operator substitutes other
				  financial assurance as specified in this subchapter for all or part of the
				  trust fund, the owner or operator may submit a written request to the executive
				  director for release of the amount in excess of the required liability coverage
				  as covered by the trust fund.
(g)
				  Within 60 days after receiving a request from the owner or operator for release
				  of funds as specified in subsection (e) or (f) of this section, the executive
				  director, if the request is approved, shall instruct the trustee in writing to
				  release to the owner or operator such funds.