Virginia Administrative Code › Title 9 - ENVIRONMENT › Agency 25 - STATE WATER CONTROL BOARD › Chapter 900 - CERTIFICATION OF NONPOINT SOURCE NUTRIENT CREDITS › Part VI - Financial Assurance › Section 9VAC25-900-270 - Financial assurance requirements for perpetual credits

Current through Register Vol. 40, No. 24, July 15, 2024
A. Subject to
				  the requirements and limitations outlined in this section, the owner shall
				  demonstrate financial assurance for the nutrient credit-generating project
				  generating perpetual nutrient credits using any one or combination of the
				  mechanisms specified in
				  9VAC25-900-290 through
				  9VAC25-900-330.
				  However, for restoration projects, the owner may only use a trust fund as
				  provided in
				  9VAC25-900-290 to
				  demonstrate financial assurance for the long-term management fund as described
				  in
				  9VAC25-900-230
				  C 2, unless a third-party long-term steward is approved by the department in
				  accordance with
				  9VAC25-900-230
				  C 3.
B. The financial assurance
				  mechanism used shall provide funding for the full amount of the cost estimate
				  or of the sum of all cost estimates at all times.
C. The owner may only establish or continue
				  to use insurance, as outlined in
				  9VAC25-900-330, to
				  demonstrate financial assurance for that portion of the total cost estimate
				  that does not include credits that have been exchanged. On an annual basis, the
				  owner shall either establish or increase the noninsurance mechanism outlined in
				  9VAC25-900-290 through
				  9VAC25-900-320
				  in an amount to be determined in accordance with the following formula:
CE/TCIAS * CEDAAP
where:
CE = Cost Estimate
TCIAS = Total Number of Credits Initially Available for
					 Exchange
CEDAAP = Number of Credits Exchanged During the Applicable
					 Annual Period
D. The owner
				  shall establish or increase the mechanism as required by subsection C of this
				  section no later than 30 days after the current anniversary date of the
				  nutrient credit certification. The applicable annual period for credits
				  exchanged is the one culminating on the anniversary date of the nutrient credit
				  certification.
E. The financial
				  assurance mechanisms used to provide evidence of the financial assurance shall
				  ensure that the funds necessary will be available whenever they are
				  needed.
F. After submittal of a
				  complete financial assurance mechanism, the department shall notify the owner
				  of the tentative decision to approve or reject the financial assurance
				  mechanism.
G. A financial assurance
				  mechanism must be in a form that ensures that the department will receive
				  proper notification in advance of any termination or revocation. The owner may,
				  at its discretion and with prior approval of the department, replace the
				  financial assurance or financial institution that issued the financial
				  assurance. The owner shall provide the department with prior notice of its
				  desire to replace the issuing institution and a draft of the new mechanism for
				  review. The provisions of the new mechanism shall conform to the provisions of
				  the former mechanism and this part.
Statutory Authority: § 62.1-44.19:20 of the Code of
						Virginia.