Nebraska Administrative Code
Topic - ENVIRONMENT AND ENERGY
Title 132 - NEBRASKA DEPARTMENT OF ENVIRONMENTAL QUALITY
Chapter 8 - FINANCIAL ASSURANCE CRITERIA: SOLID WASTE MANAGEMENT FACILITIES
Section 132-8-014 - Corporate Financial Test
Universal Citation: 132 NE Admin Rules and Regs ch 8 ยง 014
Current through March 20, 2024
An owner or operator that satisfies the requirements of this section may demonstrate financial assurance up to the amount specified in this section:
014.01 Financial Component
014.01A The owner or operator must satisfy
one of the following three conditions:
014.01A1 A current rating for its senior
unsubordinated debt of AAA, AA, A, or BBB as issued by Standard and Poor's or
Aaa, Aa, A or Baa, as issued by Moody's; or
014.01A2 A ratio of less than 1.5 comparing
total liabilities to net worth; or
014.01A3 A ratio of greater that 0.10
comparing the sum of net income plus depreciation, depletion and amortization,
minus $10 million, to total liabilities.
014.01B The tangible net worth of the owner
or operator must be greater than:
014.01B1
The sum of the current closure, post-closure care, remedial action cost
estimates and any other environmental obligations, including guarantees,
covered by a financial test plus $10 million except as provided in Section
014.01B 2.
014.01B2 $10 million in net worth plus the
amount of any guarantees that have not been recognized as liabilities on the
financial statements provided all of the current closure, post-closure care,
and remedial action costs and any other environmental obligations covered by a
financial test are recognized as liabilities on the owner's or operator's
audited financial statements, and subject to the approval of the
Department.
014.01C The
owner or operator must have assets located in the United States amounting to at
least the sum of current closure, post-closure care, remedial action cost
estimates and any other environmental obligations covered by a financial test
as described in Section 014.03.
014.02 Recordkeeping and Reporting Requirements
014.02A The owner or operator
must provide the Department the following items and place a copy into the
facility's operating record:
014.02A1 A
letter signed by the owner's or operator's chief financial officer that:
014.02A1(a) Lists all current cost estimates
covered by a financial test, including, but not limited to, cost estimates
required for municipal solid waste management facilities under this chapter,
cost estimates required for underground injection control facilities, if
applicable, cost estimates required for petroleum underground storage tank
facilities, if applicable, cost estimated required for PCB storage facilities,
if applicable, and cost estimates required for hazardous waste treatment,
storage and disposal facilities, if applicable; and
014.02A1(b) Provides evidence demonstrating
that the firm meets the conditions of either Section
014.01A1 or 014.01A2 or
014.01A3 and Section 014.01B
and 014.01C.
014.02A2 A copy of the independent certified
public accountant's unqualified opinion of the owner's or operator's financial
statements for the latest completed fiscal year. To be eligible to use the
financial test, the owner's or operator's financial statements must receive an
unqualified opinion from the independent certified public accountant. An
adverse opinion, disclaimer of opinion, or other qualified opinion will be
cause for disallowance, with the potential exception for qualified opinions
provided in the next sentence. The Department may evaluate qualified opinions
on a case-by-case basis and allow use of the financial test in cases where the
Department deems that the matters which form the basis for the qualification
are insufficient to warrant disallowance of the test. If the Department does
not allow use of the test, the owner or operator must provide alternate
financial assurance that meets the requirement of this chapter.
014.02A3 If the chief financial officer's
letter providing evidence of financial assurance includes financial data
showing that owner or operator satisfies Sections
014.01A2 and 014.01A3 that
are different from data in the audited financial statements referred to in
Section 014.02A2 or any other audited financial
statement or data filed with the SEC, then a special report from the owner's or
operator's independent certified public accountant to the owner or operator is
required. The special report shall be based upon an agreed upon procedures
engagement in accordance with professional auditing standards and shall
describe the procedures performed in comparing the data in the chief financial
officer's letter derived from the independently audited, year-end financial
statements for the latest fiscal year with the amounts in such financial
statements, the findings of that comparison, and the reasons for any
differences.
014.02A4 If the chief
financial officer's letter provides a demonstration that the firm has assured
for environmental obligations as provided in Section 014.01B
2, then the letter shall include a report from the independent
certified public accountant that verifies that all of the environmental
obligations covered by a financial test have been recognized as liabilities on
the audited financial statements, how these obligations have been measured and
reported, and that the tangible net worth of the firm is at least $10 million
plus the amount of any guarantees provided.
014.02B An owner or operator must provide the
Department the items specified in Section 014.02A and
place a copy into the operating record. before the initial receipt of waste in
the case of closure, and post-closure care, or no later than 120 days after the
remedial action workplan has been approved by the Department.
014.02C After the initial placement of items
specified in Section 014.02A in the operating record,
the owner or operator must annually update the information, provide the
Department the updated information, and place a copy into the operating record
within 90 days following the close of the owner or operator's fiscal year. The
Department may provide up to an additional 45 days for an owner or operator who
can demonstrate that 90 days is insufficient time to acquire audited financial
statements. The updated information must consist of all items specified in
Section 014.02A.
014.02D The owner or operator is no longer
required to submit the items specified in Section
014.02 or comply with the requirements of this section
when:
014.02D1 The owner or operator
substitutes alternate financial assurance as specified in this chapter that is
not subject to these recordkeeping and reporting requirements: or
014.02D2 The owner or operator is released
from the requirements of this chapter in accordance with Sections
004, 006 and
008.
014.02E If the owner or operator no longer
meets the requirements of Section 014.01, the owner or
operator must, within 120 days following the close of the owner or operator's
fiscal year, notify the Department that the owner or operator no longer meets
the criteria of the financial test, obtain alternative financial assurance that
meets the requirements of this chapter, provide the Department the required
submissions for that assurance, and place a copy into the operating
record.
014.02F The Department may,
based on a reasonable belief that the owner or operator may no longer meet the
requirements of Section 014.01, require at any time
the owner or operator to provide reports of its financial condition in addition
to or including current financial test documentation as specified in Section
014.02. If the Department finds that the owner or
operator no longer meets the requirements of Section
014.01, the owner or operator must provide alternate
financial assurance that meets the requirements of this chapter.
014.03 Calculations of Costs to be Assured
When calculating the current cost estimates for closure, post-closure care, remedial action, or the sum of the combination of such costs to be covered, and any other environmental obligations assured by a financial test referred to in this section, the owner or operator must include cost estimates required for municipal solid waste management facilities under this part, as well as cost estimates required for the following environmental obligations, if it assures them through a financial test: obligations associated with underground injection control facilities, petroleum underground storage tank facilities, PCB storage facilities, and hazardous waste treatment, storage and disposal facilities.
Disclaimer: These regulations may not be the most recent version. Nebraska 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.
This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply.
