Sec. 3.
(a) The
permittee shall establish financial responsibility for post-closure care for
all the permitted acreage of the solid waste land disposal facility before
waste placement, except as provided by subsection (b). The permittee shall
choose from the following options:
(1) The
trust fund option, including the following:
(A) The permittee shall do 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 conform to the requirements detailed in section
2(a)(1)(B) of this rule, with the exception that the term "post-closure" be
substituted for the term "closure".
(2) The surety bond option, including the
following:
(A) The permittee shall do 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 either of the following types of surety bonds:
(i) A financial guarantee surety
bond.
(ii) A performance surety
bond.
(C) All surety
bonds must conform to the requirements detailed in section 2(a)(2)(C) through
2(a)(2)(F) of this rule, with the exception that the term "post-closure" be
substituted for the term "closure".
(3) The letter-of-credit option, including
the following:
(A) The permittee shall do 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 conform to the
requirements detailed in section 2(a)(3)(B) through 2(a)(3)(D) of this rule,
with the exception that the term "post-closure" be substituted for the term
"closure".
(4) The
insurance option, including the following:
(A)
The permittee shall do as follows:
(i) Provide
evidence of insurance on forms approved by the commissioner.
(ii) Submit a certificate of post-closure
insurance to the commissioner.
(B) All insurance must conform to the
requirements detailed in section 2(a)(4)(B) and 2(a)(4)(C) of this rule, with
the exception that the term "post-closure" be substituted for the term
"closure".
(5) The
financial test for restricted waste sites option, including the following:
(A) This financial test is only available for
restricted waste sites.
(B) A
permittee shall meet the criteria and requirements set forth in section
2(a)(5)(A) through 2(a)(5)(F) or 2(a)(5)(G) of this rule to be deemed to have
established financial responsibility.
(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 permittee shall meet the criteria set
forth in section 2(a)(6)(B) and 2(a)(6)(C) of this rule to be deemed to have
established financial responsibility.
(C) If, at any time, the permittee fails to
meet the financial test, the permittee shall establish an alternate financial
responsibility mechanism within one hundred twenty (120) days after the end of
the fiscal year for which the financial data required by this subdivision shows
that the permittee no longer meets the requirements.
(D) 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 state board of
accounts' annual financial audit of the permittee. An adverse opinion or a
disclaimer of opinion is cause for disallowance.
(ii) Other qualifications may be cause for
disallowance if, in the opinion of the commissioner, the qualifications
indicate the permittee does not meet the requirements of this
subdivision.
(E) The
permittee shall choose an alternate financial responsibility mechanism within
ninety (90) days after notification of the disallowance under clause
(D).
(7) The local
government guarantee option. The local government guarantor and the permittee
shall meet the requirements of section 2(a)(7)(B) and 2(a)(7)(C) of this rule
for the permittee to be deemed to have established financial
responsibility.
(b) The
permittee shall choose a financial responsibility mechanism, as provided in
subsection (a), that guarantees funds will be available to meet the
post-closure requirements of the solid waste land disposal facility, including
the following:
(1) As applicable, funding must
equal the amount determined under:
(A)
329 IAC 10-23-3(c)(5)
and
329 IAC
10-23-3(c)(6);
(B)
329 IAC
10-31-3(b)(4); or
(C)
329 IAC
10-38-3(b)(3).
(2) Except for the trust fund mechanism, the
permittee may completely fund the post-closure care amount, as determined under
subdivision (1), based on the following formula and before the placement of any
waste in the permitted area that is certified to receive waste:
Click
here to view Image
Where: CA = Total of existing acres certified to receive
waste and acres that received waste previously.
TPA = Total permitted acres.
TRA = Total projected acres that will
be certified to receive waste within the current annual update year, which is
June 15 to June 15.
PC(f) = Fixed post-closure
costs.
PC(o) = All other post-closure costs
but fixed post-closure costs.
C = Contingencies, which equals 1.25.
PCF = Post-closure funding.
Fixed costs include semiannual inspections and reports,
access control and benchmark maintenance, ground water monitoring and well
maintenance, and methane gas monitoring and maintenance.
(3) For only the trust fund mechanism,
funding may also be accomplished by making annual payments equal to the amount
determined by the formula:
Click
here to view Image
Where: CE = The current total post-closure cost estimate as
determined by subdivision (1).
CV = The current value of the trust fund.
Y = The number of years in the term of the original permit,
which is five (5) years or less, or over the remaining life of the solid waste
land disposal facility, whichever is shorter.
(4) Annual funding for the trust fund
mechanism must be accomplished not later than June 15 of each year.
(c) The permittee shall submit an
annual update, not later than June 15 of each year, for the amount calculated
under subsection (b) for inflation and for changes in the post-closure plan
that increase the costs of post-closure to the commissioner during the active
life of the landfill and until post-closure certification is deemed adequate.
The permittee shall do the following:
(1)
During the active life of the facility and until post-closure certification is
deemed adequate, the permittee shall adjust the post-closure cost estimate for
inflation prior to June 15 of each year. The adjustment for inflation must be
done with either of the following methods:
(A)
Recalculating the post-closure cost estimate in current dollars.
(B) Using an inflation factor derived from
the most recent implicit price deflator for gross national product published by
the U.S. Department of Commerce in its Survey of Current Business*, specified
as follows:
(i) The first adjustment is made
by multiplying the post-closure cost estimate determined in accordance with
subsection (b) by the inflation factor, with the result being the adjusted
post-closure cost estimate.
(ii)
Subsequent adjustments are made by multiplying the latest adjusted post-closure
cost estimate by the latest inflation factor.
(2) During the active life of the facility,
the permittee shall revise the post-closure cost estimate not later than thirty
(30) days after the commissioner has approved the request to modify the
post-closure plan, if the change in the post-closure plan increases the cost of
post-closure care. The revised post-closure cost estimate must be adjusted
annually for inflation in accordance with subdivision (1).
(3) For permittees using the financial test
or guarantee, the post-closure care cost estimate must be updated for inflation
before June 15 of each year.
(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 post-closure cost estimate required under
subsection (c)(2).
(e) If the
formula in subsection (b)(2) is used, the permittee shall itemize separately
both the fixed costs and all other costs.
*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.
