Minnesota Administrative Rules
Agency 167 - Pollution Control Agency
Chapter 7045 - HAZARDOUS WASTE
FACILITY STANDARDS
Part 7045.0514 - FINANCIAL ASSURANCE FOR CORRECTIVE ACTION
Universal Citation: MN Rules 7045.0514
Current through Register Vol. 49, No. 13, September 23, 2024
Subpart 1. In general.
An owner or operator of a facility shall establish financial assurance for corrective action for the facility by choosing an option in subparts 2 to 7.
Subp. 2. Corrective action trust fund.
The following apply to corrective action trust funds:
A. An owner or operator may satisfy the
requirements of this part by establishing a corrective action trust fund which
conforms to the requirements of items A to L and by submitting an originally
signed duplicate of the trust agreement to the commissioner. An owner or
operator of a new facility shall submit the originally signed duplicate of the
trust agreement to the commissioner at least 60 days before the date on which
hazardous waste is first received for treatment, storage, or disposal. The
trustee must be an entity which has the authority to act as a trustee and whose
trust operations are regulated and examined by a federal or state
agency.
B. The wording of the trust
agreement must be identical to the wording specified in part
7045.0524, subpart
1, item A and the trust
agreement must be accompanied by a formal certification of acknowledgment as
shown in part
7045.0524, subpart
1, item B. Schedule A of the
trust agreement must be updated within 60 days after a change in the amount of
the current corrective action cost estimate covered by the agreement.
C. Payments into the trust fund must be made
annually by the owner or operator over the first ten years of facility
operation 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 into the corrective action
trust fund must be made as described in subitems (1) and (2):
(1) For a new facility, the first payment
must be made before the initial receipt of hazardous waste for treatment,
storage, or disposal. A receipt from the trustee for this payment must be
submitted by the owner or operator to the commissioner before this initial
receipt of hazardous waste. The first payment must be at least equal to the
current corrective action cost estimate, except as provided in subpart
8, divided by the number of
years in the pay-in period. 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:
| CE-CV | ||
| next payment = | _____ | |
| Y |
where CE is the current corrective action cost estimate, CV is the current value of the trust fund, and Y is the number of years remaining in the pay-in period.
(2)
For an existing facility, the first payment must be made within 90 days of
permit issuance. A receipt from the trustee for this payment must be submitted
by the owner or operator to the commissioner within seven days of the payment.
The amounts of the first payment and subsequent payments and the timing of
subsequent payments shall be the same as for a new facility as specified in
subitem (1).
D. The
owner or operator may accelerate payments into the trust fund or he or she may
deposit the full amount of the current corrective action cost estimate at the
time the fund is established. However, he or she shall 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 item C.
E. If the owner or operator establishes a
corrective action trust fund after having used one or more alternate mechanisms
specified in this part, the 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 according to specifications of subpart
2, as applicable.
F. After the pay-in period is completed,
whenever the current corrective action cost estimate changes, the owner or
operator shall 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, shall either deposit an amount into the fund so that its
value after this deposit at least equals the amount of the current corrective
action cost estimate or obtain other financial assurance as specified in this
part to cover the difference.
G. If
the value of the trust fund is greater than the total amount of the current
corrective action cost estimate, the owner or operator may submit a written
request to the commissioner for release of the amount in excess of the current
corrective action cost estimate covered by the trust fund.
H. If an owner or operator substitutes other
financial assurance as specified in this part for all or part of the trust
fund, he or she may submit a written request to the commissioner for release of
the amount in excess of the current corrective action cost estimate covered by
the trust fund.
I. Within 60 days
after receiving a request from the owner or operator for release of funds as
specified in item G or H, the commissioner shall instruct the trustee to
release to the owner or operator the funds as the commissioner specifies in
writing.
J. The trustee shall
notify the owner or operator and the commissioner by certified mail within ten
days following the expiration of the 30-day period after the anniversary of the
establishment of the trust if no payment is received from the owner or operator
during the period. Within 60 days after receipt by both the owner or operator
and the commissioner of a notice of nonpayment of any payment required by this
part, the owner or operator shall:
(1) make
the required payment;
(2) provide
alternative financial assurance as specified in this part and obtain the
commissioner's written approval of the assurance provided; or
(3) stop accepting waste and begin closure of
the facility.
K. After
beginning corrective action, an owner, operator, or other person authorized to
perform corrective action may request reimbursement for corrective action
expenditures by submitting itemized bills to the commissioner. Within 60 days
after receiving bills for corrective action activities, the commissioner shall
determine whether the corrective action expenditures are in accordance with the
corrective action plan or otherwise justified, and if so, the commissioner
shall instruct the trustee to make reimbursement in amounts as the commissioner
specifies in writing. If the commissioner has reason to believe that the cost
of corrective action will be significantly greater than the value of the trust
fund, the commissioner may withhold reimbursement of amounts as deemed prudent
until it is determined, in accordance with subpart
10, that the owner or
operator is no longer required to maintain financial assurance for corrective
action.
L. The commissioner shall
agree to termination of the trust if:
(1) an
owner or operator substitutes alternate financial assurance as specified in
this part; or
(2) the agency
releases the owner or operator from the requirements of this part in accordance
with subpart
10.
Subp. 3. Surety bond guaranteeing payment into corrective action trust fund.
The following apply to surety bonds that guarantee payment into corrective action trust funds:
A.
An owner or operator may satisfy the requirements of this part by obtaining a
surety bond which conforms to the requirements of items A to I and by
submitting the bond to the commissioner. An owner or operator of a new facility
shall submit the bond to the commissioner at least 60 days before the date on
which hazardous waste is first received for treatment, storage, or disposal.
The bond must be effective before this initial receipt of hazardous waste. The
surety company issuing the bond must be among those listed as acceptable
sureties on federal bonds in Circular 570, issued by the United Stated
Department of the Treasury, as published annually in the Federal Register on
July 1.
B. The wording of the
surety bond must be identical to the wording specified in part
7045.0524, subpart
2.
C. The owner or operator who uses a surety
bond to satisfy the requirements of this part shall 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 commissioner. This standby trust fund must meet the
requirements specified in subpart
2, except that: an originally
signed duplicate of the trust agreement must be submitted to the commissioner
with the surety bond; and until the standby trust fund is funded pursuant to
the requirements of this subpart, the requirements specified in subitems (1) to
(4) are not required:
(1) payments into the
trust fund as specified in subpart
2;
(2) updating of Schedule A of the trust
agreement to show current corrective action cost estimates;
(3) annual valuations as required by the
trust agreement;
(4) notices of
nonpayment as required by the trust agreement.
D. The bond must guarantee that the owner or
operator will:
(1) fund the standby trust
fund in an amount equal to the penal sum of the bond before the beginning of
corrective action for the facility;
(2) fund the standby trust fund in an amount
equal to the penal sum within 15 days after an order to begin correction action
is issued by the commissioner, the agency, or a court of competent
jurisdiction; or
(3) provide
alternate financial assurance as specified in this part and obtain the
commissioner's written approval of the assurance provided, within 90 days after
receipt by both the owner or operator and the commissioner of a notice of
cancellation of the bond from the surety.
E. 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.
F. The penal sum of the bond must be in an
amount at least equal to the current corrective action cost estimate, except as
provided in subpart
8.
G. Whenever the current corrective action
cost estimate increases to an amount greater than the penal sum, the owner or
operator, within 60 days after the increase, shall either cause the penal sum
to be increased to an amount at least equal to the current corrective action
cost estimate and submit evidence of the increase to the commissioner, or
obtain other financial assurance as specified in this part to cover the
increase. Whenever the current corrective action cost estimate decreases, the
penal sum may be reduced to the amount of the current corrective action cost
estimate following written approval by the commissioner.
H. 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 commissioner. 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 commissioner, as evidenced
by the return receipts.
I. The
owner or operator may cancel the bond if the commissioner has given prior
written consent based on the commissioner's receipt of evidence of alternate
financial assurance as specified in this part.
Subp. 4. Surety bond guaranteeing performance of corrective action.
The following apply to surety bonds that guarantee performance of corrective action:
A.
An owner or operator may satisfy the requirements of this part by obtaining a
surety bond which conforms to the requirements of items A to J and submitting
the bond to the commissioner. An owner or operator of a new facility shall
submit the bond to the commissioner at least 60 days before the date on which
hazardous waste is first received for treatment, storage, or disposal. The bond
must be effective before this initial receipt of hazardous waste. The surety
company issuing the bond must be among those listed as acceptable sureties on
federal bonds in Circular 570, issued by the United States Department of the
Treasury, as published annually in the Federal Register on July 1.
B. The wording of the surety bond must be
identical to the wording specified in part
7045.0524, subpart
3.
C. The owner or operator who uses a surety
bond to satisfy the requirements of this part shall 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 commissioner. This standby trust must meet the
requirements specified in subpart
2, except that: an originally
signed duplicate of the trust agreement must be submitted to the commissioner
with the surety bond; and unless the standby trust fund is funded under this
subpart, the requirements specified in subitems (1) to (4) are not required:
(1) payments into the trust fund as specified
in subpart
2;
(2) updating of Schedule A of the trust
agreement to show current corrective action cost estimates;
(3) annual valuations as required by the
trust agreement; and
(4) notices of
nonpayment as required by the trust agreement.
D. The bond must guarantee that the owner or
operator will:
(1) perform corrective action
in accordance with the corrective action plan and other requirements of the
permit for the facility whenever required to do so; or
(2) provide alternate financial assurance as
specified in this part and obtain the commissioner's written approval of the
assurance provided, within 90 days after receipt by both the owner or operator
and the commissioner of a notice of cancellation of the bond from the
surety.
E. 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. Following a
determination that the owner or operator has failed to perform corrective
action in accordance with the corrective action plan and other permit
requirements when required to do so, under the terms of the bond the surety
will perform corrective action according to the corrective action plan and
other permit requirements or will deposit the amount of the penal sum into the
standby trust fund.
F. The penal
sum of the bond must be in an amount at least equal to the current corrective
action cost estimate.
G. Whenever
the current corrective action cost estimate increases to an amount greater than
the penal sum, the owner or operator, within 60 days after the increase, shall
either cause the penal sum to be increased to an amount at least equal to the
current corrective action cost estimate and submit evidence of the increase to
the commissioner or obtain other financial assurance as specified in this part.
Whenever the current corrective action cost estimate decreases, the penal sum
may be reduced to the amount of the current corrective action cost estimate
following written approval by the commissioner.
H. 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 commissioner. 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 commissioner, as evidenced
by the return receipts.
I. The
owner or operator may cancel the bond if the commissioner has given prior
written consent. The commissioner shall provide written consent if:
(1) an owner or operator substitutes
alternate financial assurance as specified in this part; or
(2) the agency releases the owner or operator
from the requirements of this part in accordance with subpart
10.
J. The surety is not liable for deficiencies
in the performance of corrective action by the owner or operator after the
agency releases the owner or operator from the requirements of this part in
accordance with subpart
10.
Subp. 5. Corrective action letter of credit.
The following apply to corrective action letters of credit:
A. An owner or operator may
satisfy the requirements of this part by obtaining an irrevocable standby
letter of credit which conforms to the requirements of items A to J and by
submitting the letter to the commissioner. An owner or operator of a new
facility must submit the letter of credit to the commissioner at least 60 days
before the date on which hazardous waste is first received for treatment,
storage, or disposal. The letter of credit must be effective before this
initial receipt of hazardous waste. The issuing institution must be an entity
which has the authority to issue letters of credit and whose letter-of-credit
operations are regulated and examined by a federal or state agency.
B. The wording of the letter of credit must
be identical to the wording specified in part
7045.0524, subpart
4.
C. An owner or operator who uses a letter of
credit to satisfy the requirements of this part shall also establish a standby
trust fund. Under the terms of the letter of credit, all amounts paid pursuant
to a draft by the commissioner will be deposited by the issuing institution
directly into the standby trust fund in accordance with instructions from the
commissioner. This standby trust fund must meet the requirements of the trust
fund specified in subpart
2 except that an originally
signed duplicate of the trust agreement must be submitted to the commissioner
with the letter of credit; and unless the standby trust fund is funded pursuant
to the requirements of this subpart, the requirements specified in subitems (1)
to (4) are not required:
(1) payments into
the trust fund as specified in subpart
2;
(2) updating of Schedule A of the trust
agreement to show current corrective action cost estimates;
(3) annual valuations as required by the
trust agreement;
(4) notices of
nonpayment as required by the trust agreement.
D. 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 identification number, name and address of the facility, and the amount of
funds assured for corrective action for the facility by the letter of
credit.
E. 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 commissioner 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 commissioner have
received the notice, as evidenced by the return receipts.
F. The letter of credit must be issued in an
amount at least equal to the current corrective action cost estimate, except as
provided in subpart
8.
G. Whenever the current corrective action
cost estimate increases to an amount greater than the amount of the credit, the
owner or operator, within 60 days after the increase, shall either cause the
amount of the credit to be increased so that it at least equals the current
corrective action cost estimate and shall submit evidence of the increase to
the commissioner or obtain other financial assurance as specified in this part
to cover the increase. Whenever the current corrective action cost estimate
decreases, the amount of the credit may be reduced to the amount of the current
corrective action cost estimate following written approval by the
commissioner.
H. Following a
determination that the owner or operator has failed to perform corrective
action in accordance with the corrective action plan and other permit
requirements when required to do so, the commissioner may draw on the letter of
credit.
I. If the owner or operator
does not establish alternate financial assurance as specified in this part and
obtain written approval of alternate assurance from the commissioner within 90
days after receipt by both the owner or operator and the commissioner of a
notice from issuing institution that it has decided not to extend the letter of
credit beyond the current expiration date, the commissioner shall draw on the
letter of credit. The commissioner may delay the drawing if the issuing
institution grants an extension of the term of the credit. During the last 30
days of an extension, the commissioner shall draw on the letter of credit if
the owner or operator has failed to provide alternate financial assurance as
specified in this part and to obtain written approval of assurance from the
commissioner.
J. The commissioner
shall return the letter of credit to the issuing institution for termination
if:
(1) an owner or operator substitutes
alternate financial assurance as specified in this part; or
(2) the agency releases the owner or operator
from the requirements of this part in accordance with subpart
10.
Subp. 6. Corrective action insurance.
The following apply to corrective action insurance:
A. An owner or operator may satisfy the
requirements of this part by obtaining corrective action insurance which
conforms to the requirements of items A to J and by submitting a certificate of
insurance to the commissioner. An owner or operator of a new facility must
submit the certificate of insurance to the commissioner at least 60 days before
the date on which hazardous waste is first received for treatment, storage, or
disposal. The insurance must be effective before this initial receipt of
hazardous waste. The insurer must be licensed to transact the business of
insurance, or eligible to provide insurance as an excess or surplus lines
insurer, in one or more states.
B.
The wording of the certificate of insurance must be identical to the wording
specified in part
7045.0524, subpart
5.
C. The corrective action insurance policy
must be issued for a face amount at least equal to the current corrective
action cost estimate, except as provided in subpart
8. The term "face amount"
means the total amount the insurer is obligated to pay under the policy. Actual
payments by the insurer do not change the face amount, although the insurer's
future liability will be lowered by the amount of the payments.
D. The corrective action insurance policy
must guarantee that funds will be available to perform corrective action for
the facility whenever required by the facility permit. The policy must also
guarantee that once closure or corrective action begins, the insurer is
responsible for paying out funds, up to an amount equal to the face amount of
the policy, upon the direction of the commissioner, to the party or parties the
agency specifies.
E. After
beginning corrective action, an owner or operator or any other person
authorized to perform corrective action may request reimbursement for
corrective action expenditures by submitting itemized bills to the
commissioner. Within 60 days after receiving bills for corrective action
activities, the commissioner shall determine whether the corrective action
expenditures are in accordance with the corrective action plan or otherwise
justified, and if so, the commissioner shall instruct the insurer to make
reimbursement in amounts the commissioner specifies in writing. If the
commissioner has reason to believe that the cost of corrective action will be
significantly greater than the face amount of the policy, the commissioner may
withhold reimbursement of these amounts as deemed prudent until it is
determined, in accordance with subpart
10, that the owner or
operator is no longer required to maintain financial assurance for corrective
action for the facility.
F. The
owner or operator shall maintain the policy in full force and effect until the
commissioner consents to termination of the policy by the owner or operator as
specified in item J.
G. Each policy
must contain a provision allowing assignment of the policy to a successor owner
or operator. The assignment may be conditional upon consent of the insurer,
provided the consent is not unreasonably refused.
H. 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 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 commissioner. 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 commissioner and the owner or operator, as evidenced
by the return receipts. Cancellation, termination, or failure to renew may not
occur and the policy remains in full force and effect if on or before the date
of expiration one or more of the following events occurs:
(1) the agency deems the facility
abandoned;
(2) the permit is
terminated or revoked or a new permit is denied;
(3) corrective action is ordered by the
commissioner, the agency, or a court of competent jurisdiction;
(4) the owner or operator is named as debtor
in a voluntary or involuntary proceeding under United States Code, title 11,
Bankruptcy, as amended;
(5) the
premium due is paid;
(6) closure is
ordered by the commissioner, the agency, or a court of competent
jurisdiction.
I.
Whenever the current corrective action cost estimate increases to an amount
greater than the face amount of the policy, the owner or operator, within 60
days after the increase, shall either cause the face amount to be increased to
an amount at least equal to the current corrective action cost estimate and
submit evidence of the increase to the commissioner or obtain other financial
assurance as specified in this part to cover the increase. Whenever the current
corrective action cost estimate decreases, the face amount may be reduced to
the amount of the current corrective action cost estimate following written
approval by the commissioner.
J.
The commissioner shall give written consent to the owner or operator that he or
she may terminate the insurance policy if:
(1) an owner or operator substitutes
alternate financial assurance as specified in this part; or
(2) the agency releases the owner or operator
from the requirements of this part in accordance with subpart
10.
Subp. 7. Financial test and corporate guarantee for corrective action.
The financial test and corporate guarantee for corrective action is as follows:
A. An owner or
operator may satisfy the requirements of this part by demonstrating that he or
she passes a financial test as specified in items A to L. To pass this test,
the owner or operator shall meet the criteria of either item B or C.
B. The owner or operator shall have:
(1) 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 0.1; and a ratio of current assets to current liabilities greater
than 1.5;
(2) net working capital
and tangible net worth each at least six times the current corrective action
cost estimate;
(3) tangible net
worth of a least $10,000,000; and
(4) assets in the United States amounting to
at least 90 percent of his or her total assets or at least six times the
current corrective action cost estimate.
C. The owner or operator shall have:
(1) a current rating for his or her 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;
(2) tangible net worth at least six times the
current corrective action cost estimate;
(3) tangible net worth of at least
$10,000,000; and
(4) assets located
in the United States amounting to at least 90 percent of his or her total
assets or at least six times the current corrective action cost
estimate.
D. The phrase
"current corrective action cost estimates" as used in items A to C refers to
the cost estimates required to be shown in paragraphs 1 to 4 of the letter from
the owner's or operator's chief financial officer as specified in part
7045.0524, subpart
6.
E. To demonstrate that he or she meets this
test, the owner or operator shall submit the following items to the
commissioner:
(1) a letter signed by the
owner's or operator's chief financial officer and worded as specified in part
7045.0524, subpart
6;
(2) 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
(3) a special report from the owner's or
operator's independent certified public accountant to the owner or operator
stating that he or she 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 the financial statements and, in connection with that procedure, no
matters came to his or her attention which caused him or her to believe that
the specified data should be adjusted.
F. An owner or operator of a new facility
shall submit the items specified in item E to the commissioner at least 60 days
before the date on which hazardous waste is first received for treatment,
storage, or disposal.
G. After the
initial submission of items specified in item E, the owner or operator shall
send updated information to the commissioner within 90 days after the close of
each succeeding fiscal year. This information must consist of all three items
specified in item E.
H. If the
owner or operator no longer meets the requirements of item A, he or she shall
send notice to the commissioner of intent to establish alternate financial
assurance as specified in this part. 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 shall provide the alternate financial
assurance within 120 days after the end of the fiscal year.
I. The commissioner may, based on a
reasonable belief that the owner or operator may no longer meet the
requirements of item A, require reports of financial condition at any time from
the owner or operator in addition to those specified in item E. If the
commissioner finds, on the basis of these reports or other information, that
the owner or operator no longer meets the requirements of item A, the owner or
operator shall provide alternate financial assurance as specified in this part
within 30 days after notification of a finding.
J. The commissioner may disallow use of this
test on the basis of qualifications in the opinion expressed by the independent
certified public accountant in his or her report on examination of the owner's
or operator's financial statements required by item E, subitem (2). An adverse
opinion or a disclaimer of opinion is cause for disallowance. The commissioner
shall evaluate other qualifications on an individual basis. The owner or
operator shall provide alternate financial assurance as specified in this part
within 30 days after notification of the disallowance.
K. The owner or operator is no longer
required to submit the items specified in item E if:
(1) an owner or operator substitutes
alternate financial assurance as specified in this part; or
(2) the agency releases the owner or operator
from the requirements of this part in accordance with subpart
10.
L. An owner or operator may meet the
requirements of this part by obtaining a written guarantee, hereafter referred
to as "corporate guarantee." The guarantor must be the parent corporation of
the owner or operator. The guarantor must meet the requirements for owners or
operators in items A to J and must comply with the terms of the corporate
guarantee. The wording of the corporate guarantee must be identical to the
wording specified in part
7045.0524, subpart
8. A certified copy of the
corporate guarantee must accompany the items sent to the commissioner as
specified in item E. The terms of the corporate guarantee must provide that:
(1) If the owner or operator fails to perform
corrective action of a facility covered by the corporate guarantee in
accordance with the corrective action plan and other permit requirements
whenever required to do so, the guarantor will do so or will establish a trust
fund as specified in subpart
2 in the name of the owner or
operator.
(2) The corporate
guarantee remains in force unless the guarantor sends notice of cancellation by
certified mail to the owner or operator and to the commissioner. 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 commissioner,
as evidenced by the return receipts.
(3) If the owner or operator fails to provide
alternate financial assurance as specified in this part and to obtain the
written approval of alternate assurance from the commissioner within 90 days
after receipt by both the owner or operator and the commissioner of a notice of
cancellation of the corporate guarantee from the guarantor, the guarantor must
provide alternative financial assurance in the name of the owner or
operator.
Subp. 8. Use of multiple financial mechanisms.
An owner or operator may satisfy the requirements of this part 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 subparts 2, 3, 5, and 6 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 corrective action cost estimate. If an owner or operator uses a trust fund in combination with a surety bond or a letter of credit, he or she 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 commissioner may use any or all of the mechanisms to provide for corrective action for the facility.
Subp. 9. Use of financial mechanism for multiple facilities.
An owner or operator may use a financial assurance mechanism specified in this part to meet the requirements of this part for more than one facility. Evidence of financial assurance submitted to the commissioner must include a list showing, for each facility, the identification number, name, address, and the amount of funds for corrective action 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 corrective action for any of the facilities covered by the mechanism, the agency may direct only the amount of funds designated for that facility, unless the owner or operator agrees to the use of additional funds available under the mechanism.
Subp. 10. Release of the owner or operator from the requirements of this part.
Within 60 days after the end of the postclosure care period or after termination of corrective action in accordance with part 7045.0484, subpart 14, item F, whichever is later, the agency shall notify the owner or operator in writing that he or she is no longer required by this part to maintain financial assurance for corrective action for the particular facility, unless the agency has reason to believe that corrective action, if necessary, has not been accomplished in accordance with the corrective action plan.
Statutory Authority: MS s 116.07
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