Louisiana Administrative Code
Title 33 - ENVIRONMENTAL QUALITY
Part V - Hazardous Wastes and Hazardous Materials
Subpart 1 - Department of Environmental Quality-Hazardous Waste
Chapter 43 - Interim Status
Subchapter G - Financial Requirements
Section V-4407 - Financial Assurance for Post-Closure Care
Universal Citation: LA Admin Code V-4407
Current through Register Vol. 50, No. 9, September 20, 2024
An owner or operator of each hazardous waste disposal unit shall establish financial assurance for post-closure care of the facility. He must choose from the options as specified in Subsections A-E of this Section.
A. Post-Closure Trust Fund
1. An owner or operator may satisfy the
requirements of this Subsection by establishing a post-closure trust fund that
conforms to the requirements of this Paragraph and submitting an originally
signed duplicate of the trust agreement to the Office of Environmental Services
. The trustee must be an entity that has the authority to act as a trustee and
whose trust operations are regulated and examined by a federal or state
agency.
2. The wording of the trust
agreement must be identical to the wording specified in LAC 33:V.3719.A.1, and
the trust agreement must be accompanied by a formal certification of
acknowledgement (for example, see LAC 33:V.3719.A.2). Schedule A of the trust
agreement must be updated within 60 days after a change in the amount of the
current post-closure cost estimate covered by the agreement.
3. Payments into the trust fund must be made
annually by the owner or operator over the 20 years beginning with the
effective date of these regulations or over the remaining operating life of the
facility as estimated in the closure plan, whichever period is shorter; this
period is hereafter referred to as the pay-in period. The
payments in to the post-closure trust fund must be made as follows.
a. The first payment must be made by the
effective date of these regulations, except as provided in LAC 33:V.4407.A.5.
The first payment must be at least equal to the current post-closure cost
estimate, except as provided in LAC 33:V.4407.F, divided by the number of years
in the pay-in period.
b. Subsequent
payments must be made no later than 30 days after each anniversary date of the
first payment. The amount of each subsequent payment must be determined by this
formula.
where:
CE = current post-closure cost estimate
CV = current value of the trust fund
Y = number of years remaining in the pay-in period
4. The
owner or operator may accelerate payments into the trust fund or he may deposit
the full amount of the current post-closure cost estimate at the time the fund
is established. However, he must maintain the value of the fund at no less than
the value that the fund would have if annual payments were made as specified in
LAC 33:V.4407.A.3.
5. If the owner
or operator establishes a post-closure trust fund after having used one or more
alternate mechanisms specified in LAC 33:V.4407, his first payment must be in
at least the amount that the fund would contain if the trust fund were
established initially and annual payments made as specified in LAC
33:V.4407.A.3.
6. After the pay-in
period is completed, whenever the current post-closure cost estimate changes
during the operating life of the facility, the owner or operator must compare
the new estimate with the trustee's most recent annual valuation of the trust
fund. If the value of the fund is less than the amount of the new estimate, the
owner or operator, within 60 days after the change in the cost estimate, must
either deposit an amount into the fund so that its value after this deposit at
least equals the amount of the current post-closure cost estimate, or obtain
other financial assurance as specified in LAC 33:V.4407 to cover the
difference.
7. During the operating
life of the facility, if the value of the trust fund is greater than the total
amount of the current post-closure cost estimate, the owner or operator may
submit a written request to the Office of Environmental Services for release of
the amount in excess of the current post-closure cost estimate.
8. If an owner or operator substitutes other
financial assurance as specified in this Section for all or part of the trust
fund, he may submit a written request to the Office of Environmental Services
for release of the amount in excess of the current post-closure cost estimate
covered by the trust fund.
9.
Within 60 days after receiving a request from the owner or operator for release
of funds as specified in LAC 33:V.3711.G or H, the administrative authority
will instruct the trustee to release to the owner or operator such funds as the
administrative authority specifies in writing.
10. During the period of post-closure care,
the administrative authority may approve a release of funds if the owner or
operator demonstrates to the administrative authority that the value of the
trust fund exceeds the remaining cost of post-closure care.
11. An owner or operator, or any other person
authorized to perform post-closure care, may request reimbursement for the
post-closure expenditures by submitting itemized bills to the Office of
Environmental Services . Within 60 days after receiving bills for post-closure
activities, the administrative authority will instruct the trustee to make
reimbursements in those amounts as the administrative authority specifies in
writing, if the administrative authority determines that the post-closure
expenditures are in accordance with the approved post-closure plan or otherwise
justified. If the administrative authority does not instruct the trustee to
make such reimbursements, he will provide the owner or operator with a detailed
statement of reasons.
12. The
administrative authority will agree to termination of the trust when:
a. an owner or operator substitutes alternate
financial assurance as specified in this Section; or
b. the administrative authority releases the
owner or operator from the requirements of LAC 33:V.4407.A in accordance with
LAC 33:V.4407.H.
B. Surety Bond Guaranteeing Payment into a Post-Closure Trust Fund
1. An owner or
operator may satisfy the requirements of this Subsection by obtaining a surety
bond that conforms to the requirements of this Paragraph and submitting the
bond to the Office of Environmental Services . The surety company issuing the
bond must, at a minimum, be among those listed as acceptable sureties on
federal bonds in Circular 570 of the U.S. Department of the Treasury.
2. The wording of the surety bond must be
identical to the wording specified in LAC 33:V.3719.B.
3. The owner or operator who uses a surety
bond to satisfy the requirements of LAC 33:V.4407.B must also establish a
standby trust fund. Under the terms of the bond, all payments made thereunder
will be deposited by the surety directly into the standby trust fund in
accordance with instructions from the administrative authority. This standby
trust fund must meet the requirements specified in LAC 33:V.4407.A, except
that:
a. an originally signed duplicate of
the trust agreement must be submitted to the administrative authority with the
surety bond; and
b. until the
standby trust fund is funded pursuant to the requirements of LAC 33:V.4407.B,
the following are not required by these regulations:
i. payments into the trust fund as specified
in LAC 33:V.4407.A.3;
ii. updating
of Schedule A of the trust agreement (LAC 33:V.3719.A) to show current
post-closure cost estimates;
iii.
annual valuations as required by the trust agreement; and
iv. notices of nonpayment as required by the
trust agreement.
4. The bond must guarantee that the owner or
operator will:
a. fund the standby trust fund
in an amount equal to the penal sum of the bond before the beginning of final
closure of the facility; or
b. fund
the standby trust fund in an amount equal to the penal sum within 15 days after
an order to begin final closure is issued by the administrative authority
becomes final, or within 15 days after an order to begin final closure is
issued by a court of competent jurisdiction; or
c. provide alternate financial assurance as
specified in LAC 33:V.4407.B and obtain the administrative authority's written
approval of the assurance provided within days after receipt by both the owner
or operator and the administrative authority of a notice of cancellation of the
bond from the surety.
5.
Under the terms of the bond, the surety will become liable on the bond
obligation when the owner or operator fails to perform as guaranteed by the
bond.
6. The penal sum of the bond
must be in an amount at least equal to the current post-closure cost estimate,
except as provided in LAC 33:V.4407.F.
7. Whenever the current post-closure cost
estimate increases to an amount greater than the penal sum, the owner or
operator, within 60 days after the increase, must either cause the penal sum to
be increased to an amount at least equal to the current post-closure cost
estimate and submit evidence of such increase to the Office of Environmental
Services or obtain other financial assurance as specified in this Subsection to
cover the increase. Whenever the current post-closure cost estimate decreases,
the penal sum may be reduced to the amount of the current post-closure cost
estimate following written approval by the administrative authority.
8. Under the terms of the bond, the surety
may cancel the bond by sending notice of cancellation by certified mail to the
owner or operator and to the Office of Environmental Services . Cancellation
may not occur, however, during the 120 days beginning on the date of receipt of
the notice of cancellation by both the owner or operator and the administrative
authority, as evidenced by the return receipts.
9. The owner or operator may cancel the bond
if the administrative authority has given prior written consent based on his
receipt of evidence of alternate financial assurance as specified in LAC
33:V.4407.B.
C. Post-Closure Letter of Credit
1. An owner or
operator may satisfy the requirements of this Subsection by obtaining an
irrevocable standby letter of credit that conforms to the requirements of this
Paragraph and by submitting the letter to the Office of Environmental Services
. The issuing institution must be an entity that has the authority to issue
letters of credit and whose letter-of-credit operations are regulated and
examined by a federal or state agency.
2. The wording of the letter of credit must
be identical to the wording specified in LAC 33:V.3719.D.
3. An owner or operator who uses a letter of
credit to satisfy the requirements of LAC 33:V.4407.C must also establish a
standby trust fund. Under the terms of the letter of credit, all amounts paid
pursuant to a draft by the administrative authority will be deposited by the
issuing institution directly into the standby trust fund in accordance with
instructions from the administrative authority. This standby trust fund must
meet the requirements of the trust fund specified in LAC 33:V.4407.A, except
that:
a. an originally signed duplicate of the
trust agreement must be submitted to the administrative authority with the
letter of credit; and
b. unless the
standby trust fund is funded pursuant to the requirements of LAC 33:V.4407.C,
the following are not required by these regulations:
i. payments into the trust fund as specified
in LAC 33:V.4407.A;
ii. updating of
Schedule A of the trust agreement (see LAC 33:V.3719.A) to show current
post-closure cost estimates;
iii.
annual valuations as required by the trust agreement; and
iv. notices of nonpayment as required by the
trust agreement.
4. The letter of credit must be accompanied
by a letter from the owner or operator referring to the letter of credit by
number, issuing institution, and date, and providing the following information:
the hazardous waste facility identification number, name and address of the
facility, and the amount of funds assured for post-closure care of the facility
by the letter of credit.
5. The
letter of credit must be irrevocable and issued for a period of at least one
year. The letter of credit must provide that the expiration date 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 Office of Environmental Services, by certified
mail, of a decision not to extend the expiration date. Under the terms of the
letter of credit, the 120 days will begin on the date when both the owner or
operator, and the administrative authority have received the notice, as
evidenced by the return receipts.
6. The letter of credit must be issued in an
amount at least equal to the current post-closure cost estimate, except as
provided in LAC 33:V.4407.F.
7.
Whenever the current post-closure cost estimate increases to an amount greater
than the amount of the credit during the operating life of the facility, the
owner or operator, within 60 days after the increase, must either cause the
amount of the credit to be increased so that it at least equals the current
post-closure cost estimate and submit evidence of such increase to the Office
of Environmental Services or obtain other financial assurance as specified in
this Section to cover the increase. Whenever the current post-closure cost
estimate decreases during the operating life of the facility, the amount of the
credit may be reduced to the amount of the current post-closure cost estimate
following written approval by the administrative authority.
8. During the period of post-closure care,
the administrative authority may approve a decrease in the amount of the letter
of credit if the owner or operator demonstrates to the administrative authority
that the amount exceeds the remaining cost of post-closure care.
9. Following a final administrative
determination by the administrative authority that the owner or operator has
failed to perform post-closure care in accordance with the approved
post-closure plan and other permit requirements, the administrative authority
may draw on the letter of credit.
10. If the owner or operator does not
establish alternate financial assurance as specified in this Section and obtain
written approval of such alternate assurance from the administrative authority
within 90 days after receipt by both the owner or operator and the Office of
Environmental Services of a notice from the issuing institution that it has
decided not to extend the letter of credit beyond the current expiration date,
the administrative authority will draw on the letter of credit. The
administrative authority may delay the drawing if the issuing institution
grants an extension of the term of the credit. During the last 30 days of any
such extension the administrative authority will draw on the letter of credit
if the owner or operator has failed to provide alternate financial assurance as
specified in this Section and obtain written approval of such assurance from
the administrative authority.
11.
The administrative authority will return the letter of credit to the issuing
institution for termination when:
a. an owner
or operator substitutes alternate financial assurance as specified in LAC
33:V.4407; or
b. the administrative
authority releases the owner or operator from the requirements of LAC 33:V.4407
in accordance with LAC 33:V.4407.H.
D. Post-Closure Insurance
1. An owner or operator may satisfy the
requirements of this Subsection by obtaining post-closure insurance that
conforms to the requirements of this Paragraph and submitting a certificate of
such insurance to the Office of Environmental Services . The owner or operator
must submit to the administrative authority a letter from an insurer stating
that the insurer is considering issuance of post-closure insurance conforming
to the requirements of this Paragraph to the owner or operator. Within 90 days
after the effective date of these regulations, the owner or operator must
submit the certificate of insurance to the administrative authority or
establish other financial assurance as specified in this Section. At a minimum,
the insurer must be licensed to transact the business of insurance, or be
eligible to provide insurance as an excess or surplus lines insurer in one or
more states, and authorized to transact insurance business in
Louisiana.
2. The wording of the
certificate of insurance must be identical to the wording specified in LAC
33:V.3719.E.
3. The post-closure
insurance policy must be issued for a face amount at least equal to the current
post-closure cost estimate, except as provided in LAC 33:V.4407.F. The term
face amount means the total amount the insurer is obligated to
pay under the policy. Actual payments by the insurer will not change the face
amount, although the insurer's future liability will be lowered by the amount
of the payments.
4. The
post-closure insurance policy must guarantee that funds will be available to
provide post-closure care of the facility whenever the post-closure period
begins. The policy must also guarantee that once post-closure care begins, the
insurer will be responsible for paying out funds, up to an amount equal to the
face amount of the policy, upon the direction of the administrative authority,
to such party or parties as the administrative authority specifies.
5. An owner or operator or any other person
authorized to perform post-closure care may request reimbursement for
post-closure expenditures by submitting itemized bills to the Office of
Environmental Services . Within 60 days after receiving bills for post-closure
activities, the administrative authority will instruct the insurer to make
reimbursements in those amounts as the administrative authority specifies in
writing, if the administrative authority determines that the post-closure
expenditures are in accordance with the approved post-closure plan or otherwise
justified. If the administrative authority does not instruct the insurer to
make such reimbursements, he will provide a detailed written statement of
reasons.
6. The owner or operator
must maintain the policy in full force and effect until the administrative
authority consents to termination of the policy by the owner or operator as
specified in LAC 33:V.4407.D.11. Failure to pay the premium, without
substitution of alternate financial assurance as specified in LAC 33:V.4407,
will constitute a significant violation of these regulations, warranting such
remedy as the administrative authority deems necessary. Such violation will be
deemed to begin upon receipt by the administrative authority of a notice of
future cancellation, termination, or failure to renew due to nonpayment of the
premium, rather than upon the date of expiration.
7. Each policy must contain a provision
allowing assignment of the policy to a successor owner or operator. Such
assignment may be conditional upon consent of the insurer, provided such
consent is not unreasonably refused.
8. The policy must provide that the insurer
may not cancel, terminate, or fail to renew the policy except for failure to
pay the premium. The automatic renewal of the policy must, at a minimum,
provide the insured with the option of renewal at the face amount of the
expiring policy. If there is a failure to pay the premium, the insurer may
elect to cancel, terminate, or fail to renew the policy by sending notice by
certified mail to the owner or operator and the Office of Environmental
Services . Cancellation, termination, or failure to renew may not occur,
however, during the 120 days beginning with the date of receipt of the notice
by both the administrative authority and the owner or operator, as evidenced by
the return receipts. Cancellation, termination, or failure to renew may not
occur and the policy will remain in full force and effect in the event that on
or before the date of expiration:
a. the
administrative authority deems the facility abandoned; or
b. interim status is terminated or
revoked;
c. closure is ordered by
the administrative authority, or a U.S. District Court; or
d. the owner or operator is named as debtor
in a voluntary or involuntary proceeding under Title 11 (Bankruptcy), U.S.
Code; or
e. the premium due is
paid.
9. Whenever the
current post-closure cost estimate increases to an amount greater than the face
amount of the policy during the operating life of the facility, the owner or
operator, within 60 days after the increase, must either cause the face amount
to be increased to an amount at least equal to the current post-closure cost
estimate and submit evidence of such increase to the Office of Environmental
Services or obtain other financial assurance as specified in this Section to
cover the increase. Whenever the current post-closure cost estimate decreases
during the operating life of the facility, the face amount may be reduced to
the amount of the current post-closure cost estimate following written approval
by the administrative authority.
10. Commencing on the date that liability to
make payments pursuant to the policy accrues, the insurer will thereafter
annually increase the face amount of the policy. Such increase must be
equivalent to the face amount of the policy, less any payments made, multiplied
by an amount equivalent to 85 percent of the most recent investment rates or of
the equivalent coupon-issue yield announced by the U.S. Treasury for 26 week
treasury securities.
11. The
administrative authority will give written consent to the owner or operator
that he may terminate the insurance policy when:
a. an owner or operator substitutes alternate
financial assurance as specified in LAC 33:V.4407; or
b. the administrative authority releases the
owner or operator from the requirements of LAC 33:V.4407 in accordance with LAC
33:V.4407.H.
E. Financial Test and Guarantees for Post-Closure Care
1. An owner or operator may
satisfy the requirements of LAC 33:V.4407.E by demonstrating that he passes a
financial test as specified in this Paragraph. To pass this test the owner or
operator must meet the criteria of LAC 33:V.4407.E.1.a or b.
a. The owner or operator must have:
i. two of the following three ratios: a ratio
of total liabilities to net worth less than 2.0; a ratio of the sum of net
income plus depreciation, depletion, and amortization to total liabilities
greater than 0.10; and a ratio of current assets to current liabilities greater
than 1.5; and
ii. net working
capital and tangible net worth each at least six times the sum of the current
closure and post-closure costs estimates and the current plugging and
abandonment cost estimates; and
iii. tangible net worth of at least $10
million; and
iv. assets located in
the United States amounting to at least 90 percent of total assets or at least
six times the sum of the current closure and post-closure cost estimates and
the current plugging and abandonment cost estimates.
b. The owner or operator must have:
i. a current rating for his 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; and
ii. tangible net worth at least six times the
sum of the current closure and post-closure cost estimates and the current
plugging and abandonment cost estimates; and
iii. tangible net worth of at least $10
million; and
iv. assets located in
the United States amounting to at least 90 percent of total assets or at least
six times the sum of the current closure and post-closure cost estimates and
the current plugging and abandonment cost estimates.
2. The phrase current
closure and post-closure cost estimates as used in Paragraph E.1 of
this Section refers to the cost estimates required to be shown in Paragraphs
1-4 of the letter from the owner's or operator's chief financial officer (see
LAC 33:V.3719.F). The phrase current plugging and abandonment cost
estimates as used in Paragraph E.1 of this Section refers to the cost
estimates required to be shown in Paragraphs 1-4 of the letter from the owner's
or operator's chief financial officer [
40 CFR
144.70(f)].
3. To demonstrate that he meets this test,
the owner or operator must submit the following items to the Office of
Environmental Services :
a. a letter signed
by the owner's or operator's chief financial officer and worded as specified in
LAC 33:V.3719.F; and
b. a copy of
the independent certified public accountant's report on examination of the
owner's or operator's financial statements for the latest completed fiscal
year; and
c. a special report from
the owner's or operator's independent certified public accountant to the owner
or operator stating that:
i. he has compared
the data which 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 such financial statements;
and
ii. in connection with that
procedure, no matters came to his attention which caused him to believe that
the specified data should be adjusted.
4. The owner or operator may obtain an
extension of the time allowed for submission of the documents specified in
Paragraph E.3 of this Section if the fiscal year of the owner or operator ends
during the 90 days prior to the effective date of these regulations and if the
year-end financial statements for that fiscal year will be audited by an
independent certified public accountant. The extension will end no later than
90 days after the end of the owner's or operator's fiscal year. To obtain the
extension, the owner's or operator's chief financial officer must send, by the
effective date of these regulations, a letter to the Office of Environmental
Services . This letter from the chief financial officer must:
a. request the extension;
b. certify that he has grounds to believe
that the owner or operator meets the criteria of the financial test;
c. specify for each facility to be covered by
the test the EPA identification number, name, address, and current closure and
post-closure cost estimates to be covered by the test;
d. specify the date ending the owner's or
operator's latest complete fiscal year before the effective date of these
regulations;
e. specify the date,
no later than 90 days after the end of such fiscal year, when he will submit
the documents specified in LAC 33:V.4407.E.3; and
f. certify that the year-end financial
statement of the owner or operator for such fiscal year will be audited by an
independent certified public accountant.
5. After the initial submission of items
specified in Paragraph E.3 of this Section, the owner or operator must send
updated information to the Office of Environmental Services within 90 days
after the close of each succeeding fiscal year. This information must consist
of all three items specified in Paragraph E.3 of this Section.
6. If the owner or operator no longer meets
the requirements of Paragraph E.1 of this Section, he must send notice to the
Office of Environmental Services of intent to establish alternate financial
assurance as specified in this Section. The notice must be sent by certified
mail within 90 days after the end of the fiscal year for which the year-end
financial data show that the owner or operator no longer meets the
requirements. The owner or operator must provide the alternate financial
assurance within 120 days after the end of such fiscal year.
7. The administrative authority may, based on
a reasonable belief that the owner or operator may no longer meet the
requirements of LAC 33:V.4407.E.1, require reports of financial condition at
any time from the owner or operator in addition to those specified in LAC
33:V.4407.E.3. If the administrative authority finds, on the basis of such
reports or other information, that the owner or operator no longer meets the
requirements of LAC 33:V.4407.E.1, the owner or operator must provide alternate
financial assurance as specified in LAC 33:V.4407 within 30 days after
notification of such a finding.
8.
The administrative authority may disallow use of this test on the basis of
qualifications in the opinion expressed by the independent certified public
accountant in his report on examination of the owner's or operator's financial
statements (see LAC 33:V.4407.E.3). An adverse opinion or a disclaimer of
opinion will be cause for disallowance. The administrative authority will
evaluate other qualifications on an individual basis. Based on the application,
the circumstances, and the accessibility of the applicant's assets, the
administrative authority may disallow the use of this test. The owner or
operator must provide alternate financial assurance as specified in LAC
33:V.4407 within 30 days after notification of the disallowance.
9. During the period of post-closure care,
the administrative authority may approve a decrease in the current post-closure
cost estimate for which this test demonstrates financial assurance if the owner
or operator demonstrates to the administrative authority that the amount of the
cost estimate exceeds the remaining cost of post-closure care.
10. The owner or operator is no longer
required to submit the items specified in LAC 33:V.4407.E.3 when:
a. an owner or operator substitutes alternate
financial assurance as specified in LAC 33:V.4407; or
b. the administrative authority releases the
owner or operator from the requirements of LAC 33:V.4407 in accordance with LAC
33:V.4407.H.
11. An
owner or operator may meet the requirements of LAC 33:V.4407.E by obtaining a
written guarantee. The guarantor must be the direct or higher-tier parent
corporation of the owner or operator, a firm whose parent corporation is also
the parent corporation of the owner or operator, or a firm with a substantial
business relationship with the owner or operator. The guarantor must meet the
requirements for an owner or operator in LAC 33:V.4407.E.1-9 and must comply
with the terms of the guarantee. The wording of the guarantee must be identical
to the wording specified in LAC 33:V.3719.H. A certified copy of the guarantee
must accompany the items sent to the administrative authority specified in LAC
33:V.4407.E.3. One of these items must be the letter from the guarantor's chief
financial officer. If the guarantor's parent corporation is also the parent
corporation of the owner or operator, the letter must describe the value
received in consideration of the guarantee. If the guarantor is a firm with a
substantial business relationship with the owner or operator, this letter must
describe this substantial business relationship and the value received in
consideration of the guarantee. The terms of the guarantee must provide that:
a. if the owner or operator fails to perform
post-closure care of a facility covered by the corporate guarantee in
accordance with the post-closure plan and other permit requirements whenever
required to do so, the guarantor will do so or establish a trust fund as
specified in LAC 33:V.4407.A in the name of the owner or operator;
b. the corporate guarantee will remain in
force unless the guarantor sends notice of cancellation by certified mail to
the owner or operator and to the Office of Environmental Services .
Cancellation may not occur, however, during the 120 days beginning on the date
of receipt of the notice of cancellation by both the owner or operator and the
administrative authority, as evidenced by the return receipts; and
c. if the owner or operator fails to provide
alternate financial assurance as specified in LAC 33:V.4407 and obtain the
written approval of such alternate assurance from the administrative authority
within 90 days after receipt by both the owner or operator and the
administrative authority of a notice of cancellation of the corporate guarantee
from the guarantor, the guarantor will provide such alternate financial
assurance in the name of the owner or operator.
F. Use of Multiple Financial Mechanisms. An owner or operator may satisfy the requirements of this Subsection by establishing more than one financial mechanism per facility. These mechanisms are limited to trust funds, surety bonds guaranteeing payment into a trust fund, letters of credit, and insurance. The mechanisms must be as specified in Subsections A, B, C, and D of this Section, respectively, except that it is the combination of mechanisms rather than the single mechanism which must provide financial assurance for an amount at least equal to the current post-closure cost estimate. If an owner or operator uses a trust fund in combination with a surety bond or a letter of credit, he may use the trust fund as the standby trust fund for the other mechanisms. A single standby trust fund may be established for two or more mechanisms. The administrative authority may use any or all of the mechanisms to provide for post-closure care of the facility.
G. Use of a Financial Mechanism for Multiple Facilities. An owner or operator may use a financial assurance mechanism specified in this Subsection to meet the requirements of this Subsection for more than one facility. Evidence of financial assurance submitted to the Office of Environmental Services must include a list showing, for each facility, the EPA identification number, name, address, and the amount of funds for post-closure assured by the mechanism. The amount of funds available through the mechanism must be no less than the sum of funds that would be available if a separate mechanism had been established and maintained for each facility. In directing funds available through the mechanism for post-closure care of any of the facilities covered by the mechanism, the administrative authority may direct only the amount of funds designated for that particular facility, unless the owner or operator agrees to the use of additional funds available under the mechanism.
H. Release of the Owner or Operator from the Requirements of this Section. Within 60 days after receiving certifications from the owner or operator and an independent, qualified professional engineer that the post-closure care period has been completed in accordance with the approved post-closure plan, the administrative authority will notify the owner or operator in writing that he is no longer required by this Section to maintain financial assurance for post-closure care of that unit, unless the administrative authority has reason to believe that post-closure care has not been in accordance with the approved post-closure plan. The administrative authority will provide the owner or operator a detailed written statement of any such reason to believe that post-closure care has not been in accordance with the approved post-closure plan.
AUTHORITY NOTE: Promulgated in accordance with R.S. 30:2001 et seq., and specifically R.S. 30:2180 et seq.
Disclaimer: These regulations may not be the most recent version. Louisiana 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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