Current through Register Vol. 48, No. 38, September 20, 2024
a)
An operator may satisfy the requirements of this Subpart by obtaining a surety
bond that conforms to the requirements of this Section and submitting the bond
to the Agency.
b) The surety
company issuing the bond must be licensed by the Illinois Department of
Insurance, pursuant to the Illinois Insurance Code [215 ILCS 5 ], or at a
minimum the insurer must be licensed to transact the business of insurance, or
approved to provide insurance as an excess or surplus lines insurer, by the
insurance department in one or more states, and approved by the U.S. Department
of the Treasury as an acceptable surety.
BOARD NOTE: The U.S. Department of the Treasury lists
acceptable sureties in its Circular 570.
c) The surety bond must be on the form
specified in Appendix A, Illustration C.
d) Any payments made under the bond will be
placed in the Landfill Closure and Post-Closure Fund within the State
Treasury.
e) Conditions:
1) The bond must guarantee that the operator
will:
A) Provide closure and post-closure care
in accordance with the closure and post-closure care plans in the permit;
and
B) Provide alternate financial
assurance, as specified in this Subpart, and obtain the Agency's written
approval of the assurance provided within 90 days after receipt by both the
operator and the Agency of a notice from the surety that the bond will not be
renewed for another term.
2) The surety will become liable on the bond
obligation when, during the term of the bond, the operator fails to perform as
guaranteed by the bond. The operator fails to perform when the operator:
A) Abandons the site;
B) Is adjudicated bankrupt;
C) Fails to initiate closure of the site or
post-closure care when ordered to do so by the Board or a court of competent
jurisdiction;
D) Notifies the
Agency that it has initiated closure, or initiates closure, but fails to close
the site or provide post-closure care in accordance with the closure and
post-closure care plans; or
E)
Fails to provide alternate financial assurance, as specified in this Subpart,
and obtain the Agency's written approval of the assurance provided within 90
days after receipt by both the operator and the Agency of a notice from the
surety that the bond will not be renewed for another term.
f) Penal sum:
1) The penal sum of the bond must be in an
amount at least equal to the current cost estimate.
2) Whenever the current cost estimate
decreases, the penal sum may be reduced to the amount of the current cost
estimate, following written approval by the Agency.
3) Whenever the current cost estimate
increases to an amount greater than the penal sum, the operator, within 90 days
after the increase, must either cause the penal sum to be increased to an
amount at least equal to the current cost estimate and submit evidence of the
increase to the Agency or obtain other financial assurance, as specified in
this Subpart, to cover the increase and submit evidence of the alternate
financial assurance to the Agency.
g) Term:
1)
The bond shall be issued for a term of at least one year and shall not be
cancelable during that term.
2) The
surety bond must provide that, on the current expiration date and on each
successive expiration date, the term of the surety bond will be automatically
extended for a period of at least one year unless, at least 120 days before the
current expiration date, the surety notifies both the operator and the Agency
by certified mail of a decision not to renew the bond. Under the terms of the
surety bond, the 120 days will begin on the date when both the operator and the
Agency have received the notice, as evidenced by the return receipts.
3) The Agency shall release the surety by
providing written authorization for termination of the bond to the operator and
the surety when either of the following occurs:
A) An operator substitutes alternate
financial assurance, as specified in the Subpart; or
B) The Agency releases the operator from the
requirements of this Subpart in accordance with Section
807.606(b)
of this Part.
h) Cure of default and refunds:
1) The Agency shall release the surety if,
after the surety becomes liable on the bond, the operator or another person
provides financial assurance for closure and post-closure care of the site,
unless the Agency determines that a plan or the amount of substituted financial
assurance is inadequate to provide closure and post-closure care as required by
this Part.
2) After closure and
post-closure care have been completed in accordance with the plans and
requirements of this Part, the Agency shall refund any unspent money that was
paid to the Agency by the surety subject to appropriation of funds by the
Illinois General Assembly.
