Virginia Administrative Code › Title 9 - ENVIRONMENT › Agency 25 - STATE WATER CONTROL BOARD › Chapter 770 - VIRGINIA FINANCIAL RESPONSIBILITY REQUIREMENTS FOR MITIGATION ASSOCIATED WITH TIDAL DREDGING PROJECTS › Part III - Compensatory Mitigation Plan And Financial Responsibility Criteria › Section 9VAC25-770-130 - Letter of credit

Current through Register Vol. 40, No. 24, July 15, 2024
A. A permittee
				  may satisfy the requirements of this chapter by obtaining an irrevocable
				  standby letter of credit that conforms to the requirements of this section and
				  by submitting an originally signed duplicate of the letter of credit to the
				  department. The issuing institution shall be an entity that has the authority
				  to issue letters of credit in the Commonwealth of Virginia and whose
				  letter-of-credit operations are regulated and examined by a federal agency or
				  the State Corporation Commission.
B. The letter of credit shall be irrevocable
				  and issued for a period of at least one year in an amount at least equal to the
				  current cost estimate for implementation of the compensatory mitigation plan.
				  The letter of credit shall provide that the expiration date will be
				  automatically extended for a period of at least one year. If the issuing
				  institution decides not to extend the letter of credit beyond the current
				  expiration date, it shall, at least 120 days before the expiration date, notify
				  both the permittee and the department by certified mail of that decision. The
				  120-day period will begin on the date of receipt by the department as shown on
				  the signed return receipt. If the letter of credit is canceled by the issuing
				  institution, the permittee shall obtain alternate evidence of financial
				  responsibility to be in effect prior to the expiration date of the letter of
				  credit.
C. Whenever the approved
				  cost estimate increases to an amount greater than the amount of credit, the
				  permittee shall, within 60 days of the increase, cause the amount of credit to
				  be increased to an amount at least equal to the new estimate and submit a
				  revised mechanism to the department. Whenever the cost estimate decreases, the
				  letter of credit may be reduced to the amount of the new estimate following
				  written approval by the department.
D. The department shall cash the letter of
				  credit if it is not replaced 60 days prior to expiration with alternate
				  evidence of financial responsibility acceptable to the department or if the
				  permittee has failed to implement compensatory mitigation in accordance with
				  the approved plan or other permit or special order requirements.
E. In regards to implementation of a
				  compensatory mitigation plan either by the permittee or by an authorized third
				  party, proper implementation of a compensatory mitigation plan shall be deemed
				  to have occurred when the department determines that compensatory mitigation
				  has been completed. Such implementation shall be deemed to have been completed
				  when the provisions of the permittee's approved compensatory mitigation plan
				  have been executed and the provisions of any other permit requirements or
				  enforcement orders relative to the compensatory mitigation plan have been
				  complied with.
F. The permittee may
				  cancel the letter of credit only if alternate evidence of financial
				  responsibility acceptable to the department is substituted as specified in this
				  chapter or if the permittee is released by the department from the requirements
				  of this regulation.
G. The
				  department shall return the original letter of credit to the issuing
				  institution for termination when:
1. The
				  permittee substitutes acceptable alternate evidence of financial responsibility
				  for implementation of the compensatory mitigation plan as specified in this
				  chapter; or
2. The department
				  notifies the permittee that he is no longer required by this chapter to
				  maintain evidence of financial responsibility for implementation of the
				  compensatory mitigation plan for the project.