(A) Each applicant shall show that it either
possesses the necessary funds or has reasonable assurance of obtaining the
necessary funds, or by a combination of the two, to cover the estimated costs
of conducting all licensed activities over the planned operating life of the
project, including costs of construction and operation.
(B) The licensee shall satisfy the disposal
site closure and stabilization funding requirements identified below.
(1) The applicant shall provide assurances
prior to the commencement of operations that sufficient funds will be available
to carry out disposal site closure and stabilization, including:
(a) Decontamination or dismantlement of land
disposal facility structures; and
(b) Closure and stabilization of the disposal
site so that following transfer of the disposal site to the site owner, the
need for ongoing active maintenance is eliminated to the extent practicable and
only minor custodial care, surveillance, and monitoring are required.
(2) These assurances
shall be based on department-approved cost estimates reflecting the
department-approved plan for disposal site closure and stabilization. The
applicant's cost estimates must take into account total costs that would be
incurred if an independent contractor were hired to perform the closure and
stabilization work.
(3) The
licensee's surety mechanism will be annually reviewed by the department to
assure that sufficient funds are available for completion of the closure plan,
assuming that the work has to be performed by an independent contractor.
(4) The amount of the licensee's
financial or surety arrangement shall change in accordance with changes in the
predicted costs of closure and stabilization. Factors affecting closure and
stabilization cost estimates include inflation, increases in the amount of
disturbed land, changes in engineering plans, closure and stabilization that
has already been accomplished, and any other conditions affecting costs. The
financial or surety arrangement shall be sufficient at all times to cover the
costs of closure and stabilization of the disposal units that are expected to
be used before the next license renewal.
(5) The financial or surety arrangement shall
be either open-ended or be written for a specified period of time and shall be
automatically renewed unless the person who issues the surety notifies the
department, the beneficiary (the site owner), and the principal (the licensee)
not less than ninety days prior to the renewal date of its intention not to
renew. In such a situation, the licensee must submit a replacement surety
within thirty days after notification of cancellation. If the licensee fails to
provide a replacement surety acceptable to the department, the beneficiary may
collect on the original surety.
(6) Proof of forfeiture shall not be
necessary to collect the surety so that, in the event that the licensee could
not provide an acceptable replacement surety within the required time, the
surety shall be automatically collected prior to its expiration. The conditions
described above shall be clearly stated on any surety instrument.
(7) Financial or surety arrangements shall
satisfy the requirements identified in rule
3701:1-40-17
of the Administrative Code.
(8)
The licensee's financial or surety arrangement shall remain in effect until the
closure and stabilization program has been completed and approved by the
department, and the license has been transferred to the site owner.
(C) The licensee shall provide
financial assurances for institutional controls as recorded below.
(1) Prior to the issuance of the license, the
applicant shall provide for department approval a decommissioning funding plan
that ensures that sufficient funds will be available to cover the costs of
monitoring and any required maintenance during the institutional control
period. The decommissioning funding plan shall be reviewed every five years by
the department to ensure that changes in inflation, technology, and disposal
facility operations are reflected in the arrangements.
(2) Subsequent changes to the decommissioning
funding plan specified in paragraph (C)(1) of this rule relevant to
institutional control shall be submitted to the department for prior approval.
(3) For the purposes of the
decommissioning funding plan required in paragraph (C)(1) of this rule the
types of acceptable financial guaranties shall include bonds issued by fidelity
or surety companies authorized to do business in the state, certificates of
deposit, deposits of government securities, irrevocable letters or lines of
credit, trust funds, escrow accounts, or similar types of arrangements, but
shall not include any arrangements that constitute self-insurance.
(4) Financial or surety arrangements shall
satisfy the requirements identified in rule
3701:1-40-17
of the Administrative Code.