Virginia Administrative Code › Title 9 - ENVIRONMENT › Agency 20 - VIRGINIA WASTE MANAGEMENT BOARD › Chapter 70 - FINANCIAL ASSURANCE REGULATIONS FOR SOLID WASTE DISPOSAL, TRANSFER AND TREATMENT FACILITIES › Part III - Financial Assurance Criteria › Article 4 - Allowable Financial Mechanisms › Section 9VAC20-70-170 - Letter of credit

Current through Register Vol. 40, No. 24, July 15, 2024
A. An
					 owner or operator may satisfy the requirements of this article by obtaining an
					 irrevocable standby letter of credit that satisfies the requirements of this
					 section and by submitting the original letter of credit to the director. A copy
					 of the letter of credit shall be placed in the facility's operating record. The
					 letter of credit shall be effective before the initial receipt of waste or
					 before January 7, 1998, whichever is later, in case of closure and post-closure
					 care, or no later than 120 days after the corrective action remedy has been
					 selected. The issuing institution shall be a bank or other financial
					 institution that has the authority to issue letters of credit and whose letter
					 of credit operations are regulated and examined by the Commonwealth of
					 Virginia, by a federal agency, or by an agency of another state.
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 closure, post-closure care, or corrective action,
					 whichever is applicable. 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 date, notify
					 both the owner or operator and the director by certified mail of that decision.
					 The 120-day period will begin on the date of receipt by the director as shown
					 on the signed return receipt. Expiration cannot occur, however, while an
					 enforcement action is pending. Within 60 days of receipt of notice from the
					 issuing institution that it does not intend to extend the letter of credit, the
					 owner or operator shall obtain alternate financial assurance and submit it to
					 the director.
C. Whenever the cost
					 estimate increases to an amount greater than the amount of credit, the owner or
					 operator 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 or obtain other
					 financial assurance as specified in this article to cover the increase.
					 Whenever the cost estimate decreases, the letter of credit may be reduced to
					 the amount of the new estimate following written approval by the director. The
					 issuing institution shall send the notice of an increase or decrease in the
					 amount of the credit to the director by certified mail within 60 days of the
					 change.
D. In the event of failure
					 of the owner or operator to comply with the final closure, post-closure care or
					 corrective action requirements, the director may cash the letter of
					 credit.
E. The owner or operator
					 may cancel the letter of credit only if alternate financial assurance
					 acceptable to the director is substituted as specified in this article or if
					 the owner or operator is released by the director from the requirements of this
					 chapter.
F. The director shall
					 return the original letter of credit to the issuing institution for termination
					 when:
1. The owner or operator substitutes
					 acceptable alternate financial assurance for closure, post-closure care, or
					 corrective action as specified in this article; or
2. The director notifies the owner or
					 operator that he is no longer required by this article to maintain financial
					 assurance for closure, post-closure, or corrective action of the
					 facility.