Wisconsin Administrative Code › Department of Natural Resources › NR 500-599 - Environmental Protection - Solid Waste Management › Chapter NR 520 - Solid Waste Management Fees And Financial Responsibility Requirements › Section NR 520.06 - Methods of providing proof of financial responsibility

Current through June 24, 2024
Financial assurances for closure, long-term care and remedial
				  actions where required, shall be established separately. The owner shall
				  specify, as part of the plan of operation submittal, which method of providing
				  proof of financial responsibility will be used for closure and for long-term
				  care. To provide proof of financial responsibility, the applicant shall use
				  only one of the following methods for each account:
(1) PERFORMANCE OR FORFEITURE BOND.
(a) If the owner chooses to submit a bond, it
				shall be in the amount determined according to s.
				NR
				520.08(1) (b), (2) (b) or (3) (b), if
				required, conditioned upon faithful performance by the owner and any successor
				in interest, of all closure or long-term care requirements of the approved plan
				of operation or subsequent remedial actions required by the department. Bonds
				for closure or long-term care shall be delivered to the department as part of
				the initial operating license application. All bonds shall be established using
				forms supplied by the department.
(b) Bonds shall be issued by a surety company
				among those listed as acceptable sureties for federal bonds in Circular 570 of
				the U.S. department of the treasury. At the option of the owner, a performance
				bond or a forfeiture bond may be filed. The department shall be the obligee of
				the bond. Surety companies may have the opportunity to complete the closure or
				long-term care of the facility in lieu of cash payment to the department if the
				owner or any successor in interest fails to carry out the closure or long-term
				care requirements of the approved plan of operation. The department shall mail
				notification of its intent to use the funds for that purpose to the last known
				address of the owner. If the owner submits a written request for a hearing to
				the secretary of the department within 20 days after the mailing of the
				notification, the department shall, prior to using the funds, hold a hearing
				for the purpose of determining whether or not the closure or long-term care
				requirements of the approved plan of operation have been carried out.
Note: Copies of Circular 570, "Companies Holding Certificates
				  of Authority as Acceptable Sureties on Federal Bonds and as Acceptable
				  Reinsuring Companies" can be obtained from surety bond branch, financial
				  management service, department of the treasury, Washington D.C. 20227, phone
				  (202) 874-6850. Copies are available for inspection at the offices of the
				  department of natural resources, the secretary of state, and the legislative
				  reference bureau.
(c) Each
				bond shall provide that, as long as any obligation of the owner for closure or
				long-term care remains, the bond may not be canceled by the surety, unless a
				replacement bond or other proof of financial responsibility under this section
				is provided to the department by the owner. If the surety proposes to cancel
				such a bond, the surety shall provide notice to the department and to the owner
				in writing by registered or certified mail not less than 90 days prior to the
				proposed cancellation date. Not less than 30 days prior to the expiration of
				the 90-day notice period, the owner shall deliver to the department a
				replacement bond or other proof of financial responsibility under this section,
				in the absence of which all disposal operations shall immediately cease and the
				bond shall remain in effect as long as any obligation of the owner remains for
				closure or long-term care. The surety may discharge its obligation under the
				bond at anytime by paying the unused portion of the bond to the
				department.
(d) If the surety
				company becomes bankrupt or insolvent or if its authorization to do business is
				revoked or suspended, the owner shall, within 30 days after receiving written
				notice, deliver to the department a replacement bond or other proof of
				financial responsibility under this section, in the absence of which all
				disposal operations shall immediately cease and the bond shall remain in effect
				as long as any obligation of the owner remains for closure or long-term
				care.