Indiana Administrative Code
Title 329 - SOLID WASTE MANAGEMENT DIVISION
Article 10 - SOLID WASTE LAND DISPOSAL FACILITIES
Rule 39 - Solid Waste Land Disposal Facilities; Financial Responsibility
Section 39-2 - Closure; financial responsibility
Universal Citation: 329 IN Admin Code 39-2
Current through September 18, 2024
Authority: IC 13-14-8-7; IC 13-15; IC 13-19-3
Affected: IC 8-1-2; IC 8-1-13; IC 13-20; IC 36-9-30
Sec. 2.
(a) The permittee shall establish financial responsibility for closure of all the permitted acreage for the solid waste land disposal facility before waste placement, except as provided in subsection (b). The permittee shall choose from the following options:
(1) The trust fund
option, including the following:
(A) The
permittee may satisfy the requirements of this section by doing as follows:
(i) Establish a trust agreement on forms
approved by the commissioner.
(ii)
Submit an original signed copy of the trust agreement to the
commissioner.
(B) All
trust agreements must contain the following:
(i) Identification of solid waste land
disposal facilities and corresponding closure cost estimates covered by the
trust agreement.
(ii) The
establishment of a trust fund in the amount determined by subsection (b) and
guarantee payments from that fund either:
(AA)
reimbursing the permittee for commissioner-approved closure work done;
or
(BB) making payments to the
commissioner for accomplishing required closure work.
(iii) The requirement for annual valuations
of the trust to be submitted to the commissioner.
(iv) The requirement for successor trustees
to notify the commissioner, in writing, of their appointment at least ten (10)
days before the appointment becoming effective.
(v) The requirement for the trustee to notify
the commissioner, in writing, of the failure of the permittee to make a
required payment into the fund.
(vi) A provision that the trust is
irrevocable unless terminated, in writing, with the approval of the:
(AA) permittee;
(BB) trustee; and
(CC) commissioner.
(vii) A certification that the signatory of
the trust agreement for the permittee was duly authorized to bind the
permittee.
(viii) A notarization of
all signatures by a notary public commissioned to be a notary public in the
state where notarization occurs at the time of notarization.
(ix) The requirement that the trustee is:
(AA) authorized to act as a trustee;
and
(BB) an entity whose operations
are regulated and examined by a federal agency or state agency.
(x) The requirement for:
(AA) initial payment into the fund be made
within thirty (30) days of the commissioner's approval of the trust agreement;
and
(BB) any subsequent payments be
made annually not later than June 15.
(2) The surety bond option, including the
following:
(A) The permittee may satisfy the
requirements of this section by doing as follows:
(i) Establish a surety bond on forms approved
by the commissioner.
(ii) Submit an
original signed copy of the surety bond to the commissioner.
(B) Choose from one (1) of the
following types of surety bonds:
(i) A
financial guarantee surety bond.
(ii) A performance surety bond.
(C) All surety bonds must contain
the following:
(i) The establishment of penal
sums in the amount determined by subsection (b).
(ii) If a performance surety bond is
established, provision that the surety company shall do either of the
following:
(AA) Perform the permittee's
closure obligations upon notice from the commissioner that the permittee has
failed to do so.
(BB) Comply with
the requirements in item (v).
(iii) Provision that the surety company may
not cancel the bond without first sending notice of cancellation by certified
mail to the permittee and the commissioner at least one hundred twenty (120)
days before the effective date of the cancellation.
(iv) Provision that the permittee may not
terminate the bond without prior written authorization by the
commissioner.
(v) Provision that,
upon written notice from the commissioner that the permittee has failed to
fulfill the closure obligations for the facility, the surety company shall do
either of the following:
(AA) Deposit the
amount that provides for closure into a standby trust fund, as directed by the
commissioner.
(BB) If the financial
assurance amount is less than twenty thousand dollars ($20,000) and a standby
trust fund is not established, submit all payments directly to the department
for the purpose of accomplishing required closure work.
(vi) Provision that the permittee shall
establish a standby trust fund in accordance with clause (D) if the permittee's
total financial assurance obligations for all facilities using the surety bond
or letter-of-credit to establish financial assurance are twenty thousand
dollars ($20,000) or more.
(D) If the financial assurance amount
determined under this rule is twenty thousand dollars ($20,000) or more, the
permittee shall establish a standby trust fund in accordance with the
requirements of subdivision (1) to be utilized in the event the:
(i) permittee fails to fulfill closure
obligations; and
(ii) bond
guarantee is exercised.
Under the terms of the bond, all payments made if the bond is utilized must be deposited by the surety company directly into the standby trust fund in accordance with instructions from the commissioner.
(E) The surety company
issuing the bond must be:
(i) among those
listed as acceptable sureties for federal bonds in Circular 570* of the United
States Department of the Treasury; and
(ii) authorized to do business in
Indiana.
(F) The surety
company is not liable for deficiencies in the performance of closure by the
permittee after the commissioner releases the permittee in accordance with
section 6 of this rule.
(3) The letter-of-credit option, including
the following:
(A) The permittee may satisfy
the requirements of this section by doing as follows:
(i) Establish a letter-of-credit on forms
approved by the commissioner.
(ii)
Submit an original signed copy of the letter-of-credit to the
commissioner.
(B) All
letters of credit must contain the following:
(i) The establishment of credit in the amount
determined by subsection (b).
(ii)
Irrevocability.
(iii) An effective
period of at least one (1) year and automatic extensions for periods of at
least one (1) year unless the issuing institution provides written notification
of cancellation by certified mail to both the permittee and the commissioner at
least one hundred twenty (120) days before the effective date of
cancellation.
(iv) Provision that,
upon written notice from the commissioner that the permittee has failed to
fulfill the closure obligations for the facility, the institution issuing the
letter-of-credit shall do either of the following:
(AA) Deposit funds equal to the amount of the
letter-of-credit into a standby trust fund to be used to ensure the permittee's
closure obligations are fulfilled.
(BB) If the financial assurance amount is
less than twenty thousand dollars ($20,000) and a standby trust fund is not
established, submit all payments directly to the department for the purpose of
accomplishing required closure work.
(v) Provision that the permittee shall
establish a standby trust fund in accordance with clause (C) if the permittee's
total financial assurance obligations for all facilities using the
letter-of-credit or surety bond to establish financial assurance are twenty
thousand dollars ($20,000) or more.
(C) If the financial assurance amount
determined under this rule is twenty thousand dollars ($20,000) or more, the
permittee shall establish a standby trust fund in accordance with the
requirements of subdivision (1) to be utilized in the event the:
(i) permittee fails to fulfill its closure
obligations; and
(ii)
letter-of-credit is utilized.
Under the terms of the letter-of-credit, all amounts paid pursuant to a commissioner's request in the event the permittee fails to fulfill its closure obligations must be deposited by the issuing institution directly into the standby trust fund in accordance with instructions from the commissioner.
(D)
The issuing institution must be an entity:
(i)
that has the authority to issue letters of credit; and
(ii) whose letters of credit operations are
regulated and examined by a federal agency or state
agency.
(4) The
insurance option, including the following:
(A)
The permittee may satisfy the requirements of this section by doing as follows:
(i) Provide evidence of insurance on forms
approved by the commissioner.
(ii)
Submit a certificate of closure insurance to the commissioner.
(B) All insurance must include the
following:
(i) Be in the amount determined by
subsection (b).
(ii) Provide that,
upon written notification to the insurer by the commissioner that the permittee
has failed to perform final closure, the insurer shall make payments:
(AA) in any amount, not to exceed the amount
insured; and
(BB) to any person
authorized by the commissioner.
(iii) Provide that the permittee shall
maintain the policy in full force and effect unless the commissioner consents
in writing to termination of the policy.
(iv) Provide for assignment of the policy to
a transferee permittee.
(v) Provide
that the insurer may not cancel, terminate, or fail to renew the policy except
for failure of the permittee to pay the premium. No policy may:
(AA) be canceled;
(BB) be terminated; or
(CC) fail to be renewed; unless at least one
hundred twenty (120) days before the event the commissioner and the permittee
are notified by the insurer in writing.
(C) In one (1) or more states, the insurer
shall either be:
(i) licensed to transact the
business of insurance; or
(ii)
eligible to provide insurance as an excess or surplus lines insurer.
(5) The financial test
for restricted waste sites option, including the following:
(A) This financial test is only available for
restricted waste sites. To be deemed to have established financial
responsibility, the permittee must meet one (1) of the following requirements:
(i) All information in clause (B) if the
permittee currently has a bond rating issued by Standard and Poor's or
Moody's.
(ii) Clause (B)(i) and
either clause (B)(ii) or (B)(iii) if the permittee is one (1) of the following:
(AA) A public utility operating in Indiana
that is subject to the jurisdiction of the Indiana utility regulatory
commission under IC 8-1-2 and remits annual financial information to the
commission under IC 8-1-2-16.
(BB)
A rural electric membership corporation that is formed and operating under the
authority of IC 8-113.
(iii) Clause (B)(i) and (B)(ii) if the
permittee currently does not have a bond rating issued by Standard and Poor's
or Moody's.
(B) The
following criteria must be used to establish financial responsibility:
(i) Less than fifty percent (50%) of the
company's gross revenues are derived from waste management.
(ii) The permittee meets the following four
(4) tests:
(AA) Two (2) of the following three
(3) ratios are met:
(aa) A ratio of total
liabilities to net worth less than two (2.0).
(bb) A ratio of the sum of net income plus
depreciation, depletion, and amortization to total liabilities greater than
one-tenth (0.1).
(cc) A ratio of
current assets to current liabilities greater than one and one-half
(1.5).
(BB) Net working
capital and tangible net worth each at least six (6) times the sum of the
current closure and current post-closure cost estimates.
(CC) Tangible net worth of at least ten
million dollars ($10,000,000).
(DD)
Assets located in the United States amounting to at least ninety percent (90%)
of the permittee's total assets or at least six (6) times the sum of the
current closure and current post-closure cost estimates.
(iii) The permittee meets the following four
(4) tests:
(AA) A current rating for the
permittee's most recent bond issuance of AAA, AA, A, or BBB as issued by
Standard and Poor's or Aaa, Aa, A, or Baa as issued by Moody's.
(BB) Tangible net worth of at least six (6)
times the sum of the current closure and current post-closure cost
estimates.
(CC) Tangible net worth
of at least ten million dollars ($10,000,000).
(DD) Assets located in the United States
amounting to at least ninety percent (90%) of the permittee's total assets or
at least six (6) times the sum of the current closure and current post-closure
cost estimates.
(C) To demonstrate the financial test has
been met, the permittee shall submit the following documents to the
commissioner to establish financial assurance and annually within ninety (90)
days after the close of each fiscal year:
(i)
A letter signed by the permittee's chief financial officer that:
(AA) demonstrates the applicable criteria
have been met; and
(BB) is on forms
approved by the commissioner.
(ii) A copy of an independent certified
public accountant's report examining the permittee's financial statements for
the latest completed fiscal year.
(iii) A special report from the permittee's
independent certified public accountant to the permittee stating the following:
(AA) The certified public accountant has
compared the data that the letter from the chief financial officer specifies as
having been derived from the independently audited, year-end financial
statements for the latest fiscal year with the amounts in the financial
statements.
(BB) In connection with
the procedure in subitem (AA), no matters came to the attention of the
certified public accountant that caused the certified public accountant to
believe that the specified data should be adjusted.
(D) If at any time the permittee
fails to meet the financial test, the permittee shall establish one (1) of the
financial assurance mechanisms described in subdivisions (1) through (4) or an
alternate mechanism described in clause (G) within one hundred twenty (120)
days after the end of the fiscal year for which the year-end financial data
shows that the permittee no longer meets the requirements.
(E) The commissioner may disallow use of this
test in accordance with the following:
(i) On
the basis of qualifications in the opinion expressed in the independent
certified public accountant's report examining the permittee's financial
statements. An adverse opinion or a disclaimer of opinion will be cause for
disallowance.
(ii) Other
qualifications may be cause for disallowance if, in the opinion of the
commissioner, they indicate the permittee does not meet the requirements of
this subdivision.
The permittee shall establish one (1) of the financial assurance mechanisms described in subdivisions (1) through (4) or an alternate mechanism described in clause (G) within thirty (30) days after notification of the disallowance.
(F) If a permittee using clause (B)(iii) for
the financial test has a current bond rating of BBB- as issued by Standard and
Poor's or Baa3 as issued by Moody's for the permittee's most recent bond
issuance, the commissioner may request that the permittee submit the following
information to the department on a quarterly basis until the bond rating is
upgraded:
(i) The current bond rating of the
most recent issuance.
(ii) The name
of the rating service.
(iii) The
date of issuance of the bond.
(iv)
The date of maturity of the bond.
(v) The last credit rating action.
(vi) An explanation of any events, such as a
decrease in the bond ratings or inclusion on a negative credit watch list.
On the basis of the submitted information, if the commissioner finds that the permittee no longer meets the restricted waste financial test requirements, the permittee shall establish alternate financial assurance in accordance with clause (D).
(G) A permittee may propose a financial
assurance mechanism for restricted waste sites other than those listed in
subdivisions (1) through (4) and clauses (A) through (F) in accordance with the
following:
(i) The permittee shall demonstrate
to the satisfaction of the commissioner that the proposed mechanism provides
equivalent or greater financial responsibility for closure of all the permitted
acreage than the listed mechanisms.
(ii) Any proposed mechanism is subject to the
approval of the commissioner.
(6) The local government financial test
option, including the following:
(A) This
financial test is only available for permittees that are local governments. As
used in this subdivision, "local government" means a county, municipality,
township, or solid waste management district.
(B) A local government permittee that
satisfies the following requirements may demonstrate financial assurance up to
the amount specified in clause (C):
(i) The
local government permittee shall meet the following financial component
requirements:
(AA) The local government
permittee shall satisfy the following as applicable:
(aa) If the local government permittee has
outstanding, rated general obligation bonds that are not secured by insurance,
a letter-of-credit, or other collateral or guarantee, the local government
permittee shall have on all the general obligation bonds a current rating of:
(1) AAA, AA, A, or BBB as issued by Standard
and Poor's; or
(2) Aaa, Aa, A, or
Baa as issued by Moody's.
(bb) The local government permittee shall
satisfy the following financial ratios based on the local government
permittee's most recent audited annual financial statement:
(1) A ratio of cash plus marketable
securities to total expenditures greater than or equal to five-hundredths
(0.05).
(2) A ratio of annual debt
service to total expenditures less than or equal to two-tenths
(0.20).
(BB)
The local government permittee shall:
(aa)
prepare the local government permittee's financial statements in conformity
with generally accepted accounting principles (GAAP) for governments;
and
(bb) have the financial
statements audited by an independent certified public accountant or the state
board of accounts.
(CC) A
local government permittee is not eligible to assure the local government
permittee's obligations under this subdivision if any of the following applies
to the local government permittee:
(aa) The
local government permittee is currently in default on any outstanding general
obligation bonds.
(bb) The local
government permittee has any outstanding general obligation bonds rated lower
than BBB as issued by Standard and Poor's or Baa as issued by
Moody's.
(cc) The local government
permittee has operated at a deficit equal to five percent (5%) or more of total
annual revenue in each of the past two (2) fiscal years.
(dd) The local government permittee receives
an adverse opinion, disclaimer of opinion, or other qualified opinion from the
independent certified public accountant or the state board of accounts auditing
its financial statement as required under subitem (BB). The commissioner may
evaluate qualified opinions on a case-by-case basis and allow use of the
financial test in cases where the commissioner deems the qualification
insufficient to warrant disallowance of use of the test.
(DD) As used in this subdivision, the
following terms apply:
(aa) "Cash plus
marketable securities" means all the cash plus marketable securities held by
the local government permittee on the last day of a fiscal year, excluding cash
and marketable securities designated to satisfy past obligations, such as
pensions.
(bb) "Debt service" means
the amount of principal and interest due on a loan in a given time period,
typically the current year.
(cc)
"Deficit" means total annual revenues minus total annual
expenditures.
(dd) "Total
expenditures" means all expenditures, excluding capital outlays and debt
repayment.
(ee) "Total revenues"
means revenues from all taxes and fees but does not include the proceeds from
borrowing or asset sales, excluding revenues from funds managed by the local
government permittee on behalf of a specific third party.
(EE) If the local government permittee has a
current bond rating of BBB- as issued by Standard and Poor's or Baa3 as issued
by Moody's for the permittee's most recent bond issuance, the commissioner may
request that the permittee submit the following information to the department
on a quarterly basis until the bond rating is upgraded:
(aa) The current bond rating of the most
recent issuance.
(bb) The name of
the rating service.
(cc) The date
of issuance of the bond.
(dd) The
date of maturity of the bond.
(ee)
The last credit rating action.
(ff)
An explanation of any events, such as a decrease in the bond ratings or
inclusion on a negative credit watch list.
On the basis of the submitted information, if the commissioner finds that the local government permittee no longer meets the local government financial test requirements, the permittee shall provide alternate financial assurance in accordance with item (iii)(EE) of this clause.
(ii) The local government permittee shall
meet the following public notice component requirements:
(AA) The local government permittee shall
place a reference to the closure and post-closure care costs assured through
the financial test into the local government permittee's next comprehensive
annual financial report (CAFR) at the time of the next required local
government financial test annual submittal or before the initial receipt of
waste at the facility, whichever is later. Disclosure must include the
following:
(aa) Nature and source of closure
and post-closure care requirements.
(bb) Reported liability at the balance sheet
date.
(cc) Estimated total closure
and post-closure care cost remaining to be recognized.
(dd) Percentage of landfill capacity used to
date.
(ee) Estimated landfill life
in years.
(BB) A
reference to corrective action costs must be placed in the CAFR not later than
one hundred twenty (120) days after the corrective action remedy has been
selected in accordance with the requirements of
329 IAC
10-21-13.
(CC) For the first year the financial test is
used to assure costs at a particular facility, the reference may instead be
placed in the facility's operating record until issuance of the next available
CAFR if timing does not permit the reference to be incorporated into the most
recently issued CAFR or budget.
(DD) For closure and post-closure costs,
conformance with Government Accounting Standards Board Statement 18**, issued
August 1993, meets the requirements of subitems (AA) through (CC).
(iii) The local government
permittee shall meet the following record keeping and reporting requirements:
(AA) The local government permittee shall
place the following documentation in the facility's operating record:
(aa) A letter signed by the local government
permittee's chief financial officer that meets the following:
(1) Lists all of the current cost estimates
covered by a financial test as described in clause (C).
(2) Provides evidence and certifies that the
local government permittee meets the conditions of item (i)(AA) through
(i)(CC).
(3) Certifies that the
local government permittee meets the conditions of item (ii) and clause
(C).
(4) Is on forms approved by
the commissioner.
(bb)
The local government permittee's independently audited year-end financial
statements for the latest fiscal year, except for local government permittees
where audits are required every two (2) years when unaudited statements may be
used in years when audits are not required, including the unqualified opinion
of the auditor, who shall be an independent certified public accountant, or the
state board of accounts that conducts equivalent comprehensive
audits.
(cc) A report to the local
government permittee from the local government permittee's independent
certified public accountant or the state board of accounts based on performing
an agreed upon procedures engagement relative to the:
(1) financial ratios required by item
(i)(AA)(bb); and
(2) requirements
of item (i)(BB), (i)(CC)(cc), and (i)(CC)(dd).
The independent certified public accountant's or state board of accounts' report must state the procedures performed and the findings.
(dd) A
copy of the CAFR used to comply with item (ii) or certification that the
requirements of General Accounting Standards Board Statement 18**, issued
August 1993, have been met.
(BB) The documentation required in subitem
(AA) must be placed in the facility operating record as follows:
(aa) In the case of closure and post-closure
care, either at the time of the next required local government financial test
annual submittal or before the initial receipt of waste at the facility,
whichever is later.
(bb) In the
case of corrective action, not later than one hundred twenty (120) days after
the corrective action remedy is selected in accordance with the requirements of
329 IAC
10-21-13.
(CC) After the initial placement of the
documentation required in subitem (AA) in the facility's operating record and
within one hundred eighty (180) days following the close of the local
government permittee's fiscal year, the local government permittee shall:
(aa) update the information; and
(bb) place the updated information in the
operating record.
(DD)
The local government permittee is no longer required to meet the requirements
of this item when either the local government permittee:
(aa) substitutes alternate financial
assurance in accordance with this rule; or
(bb) is released from the requirements of
this rule in accordance with section 6 or 11 of this rule.
(EE) A local government permittee shall
satisfy the requirements of the financial test at the close of each fiscal
year. If the local government permittee no longer meets the requirements of the
local government financial test, the local government permittee shall, within
one hundred twenty (120) days following the close of the local government
permittee's fiscal year, complete the following:
(aa) Obtain alternative financial assurance
that meets the requirements of this rule.
(bb) Place the required submissions for that
assurance in the facility's operating record.
(cc) Notify the commissioner that the local
government permittee no longer meets the criteria of the financial test and
that alternate assurance has been obtained.
(FF) The commissioner, based on a reasonable
belief that the local government permittee may no longer meet the requirements
of the local government financial test, may require additional reports of
financial condition from the local government permittee at any time. If the
commissioner finds, on the basis of the reports or other information, that the
local government permittee no longer meets the requirements of the local
government financial test, the local government permittee shall provide
alternate financial assurance in accordance with subitem (EE).
(GG) The commissioner may disallow use of
this test in accordance with the following:
(aa) On the basis of qualifications in the
opinion expressed in the state board of accounts' annual financial audit of the
local government permittee. An adverse opinion or a disclaimer of opinion is
cause for disallowance.
(bb) Other
qualifications may be cause for disallowance if, in the opinion of the
commissioner, the qualifications indicate the local government permittee does
not meet the requirements of this subdivision.
(HH) The local government permittee shall
choose an alternate financial responsibility mechanism within ninety (90) days
after notification of the disallowance in subitem (GG).
(C) The local government permittee
shall complete the calculation of costs to be assured. The portion of the
closure, post-closure, and corrective action costs for which a local government
permittee can assure under this subdivision is determined as follows:
(i) If the local government permittee does
not assure other environmental obligations through a financial test, the local
government permittee may assure closure, post-closure, and corrective action
costs that equal up to forty-three percent (43%) of the local government
permittee's total annual revenue.
(ii) If the local government permittee
assures other environmental obligations through a financial test, including
those associated with:
(AA) underground
injection control (UIC) facilities under
40 CFR
144.62;
(BB) petroleum underground storage tank
facilities under
329 IAC
9-8;
(CC)
polychlorinated biphenyls (PCB) storage facilities under 40 CFR 761;
or
(DD) hazardous waste treatment,
storage, and disposal facilities under
329
IAC 3.1-14 or 329 IAC 3.115; the local government
permittee shall add those costs to the closure, post-closure, and corrective
action costs the local government permittee seeks to assure under this
subdivision. The total assured amount may not exceed forty-three percent (43%)
of the local government permittee's total annual revenue.
(iii) The local government permittee shall
obtain an alternate financial assurance instrument for those costs that exceed
the limits set in this clause.
(7) The local government guarantee option,
including the following:
(A) A permittee may
demonstrate financial assurance for closure, post-closure, and corrective
action, as required by this section and sections 3 and 10 of this rule, as
follows:
(i) Obtain a written guarantee
provided by a local government.
(ii) Submit an original signed copy of the
written guarantee to the commissioner.
(B) The guarantor shall meet the requirements
of the local government financial test in subdivision (6) and shall comply with
the terms of a written guarantee as follows:
(i) The guarantee must be effective:
(AA) before the initial receipt of waste or
at the time of the next required local government financial test annual
submittal, whichever is later, in the case of closure and post-closure care;
or
(BB) not later than one hundred
twenty (120) days after the corrective action remedy has been selected in
accordance with the requirements of
329 IAC
10-21-13.
(ii) The guarantee must provide the
following:
(AA) If the permittee fails to
perform any combination of closure, post-closure care, or corrective action of
a facility covered by the guarantee, the guarantor shall:
(aa) perform or pay a third party to perform
any combination of closure, post-closure care, or corrective action as required
under this subitem; or
(bb)
establish a fully funded trust fund in accordance with subdivision (1) in the
name of the permittee.
(BB) The guarantee will remain in force
unless the guarantor sends notice of cancellation by certified mail to the
permittee and to the commissioner. Cancellation must not occur during the one
hundred twenty (120) days beginning on the date of receipt of the notice of
cancellation by both the permittee and the commissioner as evidenced by the
return receipts.
(CC) If a
guarantee is canceled under subitem (BB), the permittee shall, within ninety
(90) days following receipt of the cancellation notice by the permittee and the
commissioner, complete the following:
(aa)
Obtain alternate financial assurance under this rule.
(bb) Place evidence of that alternate
financial assurance in the facility operating record.
(cc) Notify the commissioner.
(DD) If the permittee fails to
provide alternate financial assurance within the ninety (90) day period under
subitem (CC), the guarantor shall complete the following:
(aa) Provide alternate assurance within one
hundred twenty (120) days following the guarantor's notice of
cancellation.
(bb) Place evidence
of the alternate assurance in the facility operating record.
(cc) Notify the commissioner.
(C) The
permittee shall complete the following record keeping and reporting
requirements:
(i) The permittee shall place a
certified copy of the guarantee along with the documentation required under
subdivision (6)(B)(iii) into the facility's operating record:
(AA) before the initial receipt of waste or
at the time of the next required local government financial test annual
submittal, whichever is later, in the case of closure and post-closure care;
or
(BB) not later than one hundred
twenty (120) days after the corrective action remedy has been selected in
accordance with
329 IAC
10-21-13.
(ii) The permittee is no longer required to
maintain the documentation specified in this clause when the permittee:
(AA) substitutes alternate financial
assurance in accordance with this rule; or
(BB) is released from the requirements of
this rule in accordance with section 6 or 11 of this rule.
(iii) If a local government guarantor no
longer meets the requirements of subdivision (6), the permittee shall, within
ninety (90) days, complete the following:
(AA)
Obtain alternative assurance.
(BB)
Place evidence of the alternate assurance in the facility operating
record.
(CC) Notify the
commissioner.
(iv) If the
permittee fails to obtain alternate financial assurance within the ninety (90)
day period required in item (iii), the guarantor shall provide that alternate
assurance within the next thirty (30) days.
(b) The following requirements apply to determining the financial responsibility closure cost estimate:
(1) For purposes of establishing
financial responsibility under subsection (a), the permittee shall have a
detailed written estimate of the cost of closing the facility based on the
following:
(A) The applicable closure costs
derived under:
(i)
329 IAC
10-22-2(c);
(ii)
329 IAC
10-30-4(b); or
(iii)
329 IAC
10-37-4(b).
(B) One (1) of the closure cost estimating
standards under subdivision (2).
(2) The permittee shall use one (1) of the
following closure cost estimating standards:
(A) The entire solid waste land disposal
facility closure standard is an amount that equals the estimated total cost of
closing the entire solid waste land disposal facility, less an amount
representing portions of the solid waste land disposal facility that have been
certified for partial closure in accordance with:
(i)
329 IAC
10-22-3;
(ii)
329 IAC 10-30-5;
or
(iii)
329 IAC
10-37-5.
(B) The incremental closure standard is an
amount that, for any year of operation, equals the total cost of closing the
portion of the solid waste land disposal facility dedicated to the current year
of solid waste land disposal facility operation, plus all closure amounts from
all other partially or completely filled portions of the solid waste land
disposal facility from prior years of operation that have not yet been
certified for partial closure in accordance with:
(i)
329 IAC
10-22-3;
(ii)
329 IAC 10-30-5;
or
(iii)
329 IAC
10-37-5.
(c) Until final closure of the solid waste land disposal facility is certified, the permittee shall annually review and submit to the commissioner the financial closure cost estimate derived under this section, not later than June 15 of each year, in accordance with the following:
(1) The submittal must include a
copy of the existing contour map of the solid waste land disposal facility that
delineates the boundaries of all areas into which waste has been placed as of
the annual review and certified by a registered professional engineer or
registered land surveyor.
(2) As
part of the annual review, the permittee shall revise the closure estimate by
making an inflation adjustment using an inflation factor derived from the
annual implicit price deflator for gross national product as published by the
United States Department of Commerce in its Survey of Current Business***. The
inflation factor is the result of dividing the latest published annual deflator
by the deflator for the previous year as follows:
(A) The first revision is made by multiplying
the original closure cost estimate by the inflation factor. The result is the
revised closure cost estimate.
(B)
Subsequent revisions are made by multiplying the latest revised closure cost
estimate by the latest inflation factor.
(3) The permittee shall revise the closure
cost estimate not later than thirty (30) days after the commissioner has
approved changes to the closure plan if the changes increase the cost of
closure. The revised closure cost estimate must be adjusted annually for
inflation in accordance with subdivision (2).
(d) The permittee shall update the amount of financial assurance provided in the financial assurance instrument within sixty (60) days after the revision to the closure cost estimate required under subsection (c)(3).
(e) The permittee may revise the closure cost estimate downward whenever:
(1) a change in the closure plan decreases
the cost of closure; or
(2)
portions of the solid waste land disposal facility have been certified for
partial closure under:
(A)
329 IAC
10-22-3;
(B)
329 IAC 10-30-5;
or
(C)
329 IAC 10-37-5.
*This document is available for viewing at https://www.fiscal.treasury.gov/surety-bonds/circular-570.html and may be obtained from the United States Department of the Treasury, Bureau of the Fiscal Service, Surety Bond Program, 3700 East West Highway, Room 6D22, Hyattsville, MD 20782.
**This document is incorporated by reference. This document
is available for viewing at
***This document is available for viewing at https://apps.bea.gov/scb/ and may be obtained from the United States Department of Commerce, Bureau of Economic Analysis, 4600 Silver Hill Road, Suitland, MD 20746.
Disclaimer: These regulations may not be the most recent version. Indiana may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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