Current through Register Vol. 48, No. 38, September 20, 2024
a) An owner or
operator may satisfy the requirements of this Subpart by obtaining an
irrevocable standby letter of credit which conforms to the requirements of this
Section and submitting the letter to the Agency. A letter of credit obtained by
an owner or operator of an MSWLF unit must be effective before the initial
receipt of waste or before April 9, 1997 (the effective date of the financial
assurance requirements under RCRA Subtitle D regulations), or such later date
granted pursuant to Section
811.700(g),
whichever is later, in the case of closure and post-closure care, or no later
than 120 days after the remedy has been selected in accordance with the
requirements of Section
811.325.
b) The issuing institution shall be an entity
that has the authority to issue letters of credit and:
1) Whose letter-of-credit operations are
regulated by the Illinois Department of Financial and Professional Regulation
pursuant to the Illinois Banking Act [205 ILCS 5 ]; or
2) Whose deposits are insured by the Federal
Deposit Insurance Corporation.
c) Forms:
1) The letter of credit must be on the forms
specified in Appendix A, Illustration E.
2) The letter of credit must be accompanied
by a letter from the owner or operator, referring to the letter of credit by
number, the name and address of the issuing institution, and the effective date
of the letter, and providing the following information: the name and address of
the site and the amount of funds assured for closure and post-closure care of
the site, or for corrective action at an MSWLF unit by the letter of
credit.
d) Any amounts
drawn by the Agency pursuant to the letter of credit will be deposited in the
Landfill Closure and Post-Closure Fund within the State Treasury.
e) Conditions on which the Agency shall draw
on the letter of credit:
1) The Agency shall
draw on the letter of credit if the owner or operator fails to perform closure
or post-closure care in accordance with the closure and post-closure care
plans, or fails to implement corrective action at an MSWLF unit in accordance
with Section
811.326.
2) The Agency shall draw on the letter of
credit when the owner or operator:
A)
Abandons the site;
B) Is
adjudicated bankrupt;
C) Fails to
initiate closure of the site or post-closure care or corrective action when
ordered to do so by the Board pursuant to Title VIII of the Act, or when
ordered to do so by a court of competent jurisdiction;
D) Notifies the Agency that it has initiated
closure or corrective action, or initiates closure or corrective action, but
fails to Provide closure and post-closure care or corrective action in
accordance with the closure and post-closure care or corrective action
plans;
E) For a corrective action
bond, fails to implement corrective action at an MSWLF unit in accordance with
Section 811.326; or
F) Fails to
provide alternative 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 owner or operator and the Agency of a notice from the
issuing institution that the letter of credit will not be extended for another
term.
f)
Amount:
1) The letter of credit must be
issued in an amount at least equal to the current cost estimate.
2) Whenever the current cost estimate
decreases, the amount of credit 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 amount of the credit, the owner or
operator, within 90 days after the increase, must either cause the amount of
the credit to be increased to an amount at least equal to the current cost
estimate and submit evidence of that increase to the Agency or obtain other
financial assurance, as specified in this Subpart, to cover the increase and
submit evidence of the alternative financial assurance to the Agency.
g) Term:
1) The letter of credit must be issued for a
term of at least one year and must be irrevocable during that term.
2) The letter of credit must provide that, on
the current expiration date and on each successive expiration date, the letter
of credit will be automatically extended for a period of at least one year
unless, at least 120 days before the current expiration date, the issuing
institution notifies both the owner or operator and the Agency by certified
mail of a decision not to extend the letter of credit for another term. Under
the terms of the letter of credit, the 120 days will begin on the date when
both the owner or operator and the Agency have received the notice, as
evidenced by the return receipts.
3) The Agency must return the letter of
credit to the issuing institution for termination when either of the following
occurs:
A) An owner or operator substitutes
alternative financial assurance, as specified in this Subpart; or
B) The Agency releases the owner or operator
from the requirements of this Subpart in accordance with Ill. Adm. Code
813.403(b).
h) Cure of default and
refunds:
1) The Agency shall release the
financial institution if, after the Agency is allowed to draw on the letter of
credit, the owner or operator or another person provides financial assurance
for closure and post-closure care of the site or corrective action at an MSWLF
unit, unless the Agency determines that a plan or the amount of substituted
financial assurance is inadequate to provide closure and post-closure care, or
implement corrective action at an MSWLF unit, as required by this
Part.
2) After closure and
post-closure care have been completed in accordance with the closure and
post-closure care plans and the requirements of this Part or after the
completion of corrective action at an MSWLF unit in accordance with Section
811.326, the Agency shall refund any unspent money which was paid into the
"Landfill Closure and Post-Closure Fund" by the financial institution, subject
to appropriation of funds by the Illinois General Assembly.
BOARD NOTE: MSWLF corrective action language at subsection
(a) is derived from
40 CFR
258.74(c)(1) (1996). P.A.
89-200, signed by the Governor on July 21, 1995 and effective January 1, 1996,
amended the deadline for financial assurance for MSWLFs from April 9, 1995 to
the date that the federal financial assurance requirements actually become
effective, which was April 9, 1997. On November 27, 1996 (61 Fed. Reg. 60337),
USEPA added
40 CFR
258.70(c) (1996), codified
here as Section
811.700(g),
to allow states to waive the compliance deadline until April 9, 1998. The other
clarifying changes reflect the inclusion of financial assurance requirements
for implementing corrective action at MSWLF units under this
Section.
