Wisconsin Administrative Code › Department of Natural Resources › NR 600-699 - Environmental Protection - Hazardous Waste Management › Chapter NR 664 - Hazardous Waste Treatment, Storage And Disposal Facility Standards › Subchapter H - Financial Requirements › Section NR 664.0145 - Financial assurance for long-term care

Current through June 24, 2024
The owner or operator of a hazardous waste management unit
					 subject to s.
					 NR
					 664.0144 shall establish financial assurance for
					 long-term care according to the approved long-term care plan for the facility
					 60 days prior to the initial receipt of hazardous waste or the effective date
					 of the rule, whichever is later. The owner or operator shall choose from the
					 following options:
(1) LONG-TERM CARE
				  TRUST FUND.
(a) An owner or operator may
				  satisfy the requirements of this section by establishing a long-term care trust
				  fund which conforms to the requirements of this subsection and submitting an
				  originally signed duplicate of the trust agreement to the department. An owner
				  or operator of a new facility shall submit the originally signed duplicate of
				  the trust agreement to the department at least 60 days before the date on which
				  hazardous waste is first received for disposal. 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.
(b) The wording of the trust agreement shall
				  be identical to the wording on the department form specified in s.
				  NR 664.0151(1)
				  (a) and the trust agreement shall be
				  accompanied by a formal certification of acknowledgment as specified in s.
				  NR 664.0151(1)
				  (b). Schedule A of the trust agreement shall
				  be updated within 60 days after a change in the amount of the current long-term
				  care cost estimate covered by the agreement.
(c) Payments into the trust fund shall be
				  made annually by the owner or operator over the term of the initial license or
				  over the remaining operating life of the facility as estimated in the closure
				  plan, whichever period is shorter. For the purposes of this section, this
				  period is referred to as the pay-in period." The payments into the long-term
				  care trust fund shall be made as follows:
1.
				  For a new facility, the first payment shall be made before the initial receipt
				  of hazardous waste for disposal. A receipt from the trustee for this payment
				  shall be submitted by the owner or operator to the department before this
				  initial receipt of hazardous waste. The first payment shall be at least equal
				  to the current long-term care cost estimate, except as provided in sub. (9),
				  divided by the number of years in the pay-in period. Subsequent payments shall
				  be made no later than 30 days after each anniversary date of the first payment.
				  The amount of each subsequent payment shall be determined by this formula:
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where CE is the current long-term care cost estimate, CV is
					 the current value of the trust fund and Y is the number of years remaining in
					 the pay-in period.
2. If an
				  owner or operator establishes a trust fund as specified in this subsection, and
				  the value of that trust fund is less than the current long-term care cost
				  estimate when a license is awarded for the facility, the amount of the current
				  long-term care cost estimate still to be paid into the fund shall be paid in
				  over the pay-in period as defined in par. (c) (intro). Payments shall continue
				  to be made no later than 30 days after each anniversary date of the first
				  payment made pursuant to ch. NR 665. The amount of each payment shall be
				  determined by this formula:
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					 view image
where CE is the current long-term care cost estimate, CV is
					 the current value of the trust fund and Y is the number of years remaining in
					 the pay-in period.
(d) The owner or operator may accelerate
				  payments into the trust fund or may deposit the full amount of the current
				  long-term care cost estimate at the time the fund is established. However, the
				  owner or operator shall maintain the value of the fund at no less than the
				  value that the fund would have if annual payments were made as specified in
				  par. (c).
(e) If the owner or
				  operator establishes a long-term care trust fund after having used one or more
				  alternate mechanisms specified in this section or in s.
				  NR
				  665.0145, the first payment shall be in at least the
				  amount that the fund would contain if the trust fund were established initially
				  and annual payments made according to specifications of this subsection and s.
				  NR
				  665.0145(1), as applicable.
(f) After the pay-in period is completed,
				  whenever the current long-term care cost estimate changes during the operating
				  life of the facility, the owner or operator shall compare the new estimate with
				  the trustee's most recent annual valuation of the trust fund. If the value of
				  the fund is less than the amount of the new estimate, the owner or operator,
				  within 60 days after the change in the cost estimate, shall either deposit an
				  amount into the fund so that its value after this deposit at least equals the
				  amount of the current long-term care cost estimate, or obtain other financial
				  assurance as specified in this section to cover the difference.
(g) During the operating life of the
				  facility, if the value of the trust fund is greater than the total amount of
				  the current long-term care cost estimate, the owner or operator may submit a
				  written request to the department for release of the amount in excess of the
				  current long-term care cost estimate.
(h) If an owner or operator substitutes other
				  financial assurance as specified in this section for all or part of the trust
				  fund, the owner or operator may submit a written request to the department for
				  release of the amount in excess of the current long-term care cost estimate
				  covered by the trust fund.
(i)
				  Within 60 days after receiving a request from the owner or operator for release
				  of funds as specified in par. (g) or (h), the department will instruct the
				  trustee to release to the owner or operator funds as the department specifies
				  in writing.
(j) During the period
				  of long-term care, the department may approve a release of funds if the owner
				  or operator demonstrates to the department that the value of the trust fund
				  exceeds the remaining cost of long-term care.
(k) An owner or operator or any other person
				  authorized to conduct long-term care may request reimbursements for long-term
				  care expenditures by submitting itemized bills to the department. Within 60
				  days after receiving bills for long-term care activities, the department will
				  instruct the trustee to make reimbursements in those amounts as the department
				  specifies in writing, if the department determines that the long-term care
				  expenditures are in accordance with the approved long-term care plan or
				  otherwise justified. If the department does not instruct the trustee to make
				  the reimbursements, the department will provide the owner or operator with a
				  detailed written statement of reasons.
(l) The department will agree to termination
				  of the trust when one of the following applies:
1. An owner or operator substitutes alternate
				  financial assurance as specified in this section.
2. The department releases the owner or
				  operator from the requirements of this section in accordance with sub.
				  (11).