Texas Administrative Code › Title 30 - ENVIRONMENTAL QUALITY › Part 1 - TEXAS COMMISSION ON ENVIRONMENTAL QUALITY › Chapter 37 - FINANCIAL ASSURANCE › Subchapter T - FINANCIAL ASSURANCE FOR RADIOACTIVE SUBSTANCES AND AQUIFER RESTORATION › Section 37.9059 - Financial Assurance Requirements for Liability

Current through Reg. 49, No. 28; July 12, 2024
(a) Owners or operators required to
				  demonstrate financial assurance for liability must comply with Subchapters A,
				  E, F, and G of this chapter (relating to General Financial Assurance
				  Requirements; Financial Assurance Requirements for Liability Coverage;
				  Financial Assurance Mechanisms for Liability; and Wording of the Mechanisms for
				  Liability).
(b) An owner or
				  operator subject to this section must demonstrate financial assurance for
				  bodily injury and property damage to third parties caused by sudden accidental
				  occurrences arising from operations of the compact waste disposal facility
				  and/or federal facility waste disposal facility. The owner or operator must
				  have and maintain liability coverage for sudden accidental occurrences in the
				  amount of at least $1 million per occurrence with an annual aggregate of at
				  least $2 million, exclusive of legal defense costs.
(c) An owner or operator subject to this
				  section must demonstrate financial assurance for bodily injury and property
				  damage to third parties caused by non-sudden accidental occurrences arising
				  from operations of the compact waste disposal facility and/or federal facility
				  waste disposal facility. An owner or operator must have and maintain liability
				  coverage for non-sudden accidental occurrences in the amount of at least $3
				  million per occurrence with an annual aggregate of at least $6 million,
				  exclusive of legal defense costs.
(d) Owners or operators who must meet the
				  requirements of this section may combine the required per-occurrence coverage
				  levels for sudden and non-sudden accidental occurrences into a single
				  per-occurrence level, and combine the required annual aggregate coverage levels
				  for sudden and non-sudden accidental occurrences into a single annual aggregate
				  level. Owners or operators who combine coverage levels for sudden and
				  non-sudden accidental occurrences must maintain liability coverage in the
				  amount of at least $4 million per occurrence and $8 million annual
				  aggregate.
(e) Owners or operators
				  subject to this subchapter may use any of the mechanisms specified in
				  Subchapter F of this chapter except for the Financial Test for Liability and
				  the Corporate Guarantee for Liability to demonstrate financial assurance for
				  sudden and for non-sudden liability.
(f) Owners or operators required to provide
				  liability coverage may not use a claims-made insurance policy as security
				  unless the applicant places in escrow, as provided by the executive director,
				  an amount sufficient to pay an additional year of premiums for renewal of the
				  policy by the state on notice of termination of coverage. The escrow account
				  must be funded at the same time the insurance policy becomes
				  effective.
(g) The required limits
				  of coverage in this subsection are distinct from any other liability
				  requirements under this chapter.