Ohio Administrative Code
Title 3745 - Ohio Environmental Protection Agency
Chapter 3745-580 - Scrap tire
Section 3745-580-23 - Financial assurance for scrap tire transporter closure
Universal Citation: OH Admin Code 3745-580-23
Current through all regulations passed and filed through September 16, 2024
(A) This rule is applicable to a scrap tire transportation business that is issued a registration certificate pursuant to rule 3745-580-103 of the Administrative Code.
(B) General requirements.
(1)
For the purposes
of this rule, "owner or operator" means the owner, operator, registrant, or
person responsible for closure of the scrap tire transportation
business.
(2)
The owner or operator shall execute and fund a
financial assurance instrument in the amount specified in section
3734.74 of the Revised Code and
that meets the requirements of paragraph (E) of this rule.
(3)
The owner or
operator shall maintain financial assurance for closure throughout the
operating life of the scrap tire transportation business and may be released
only in accordance with paragraph (J) of this rule.
(C) [Reserved.]
(D) [Reserved.]
(E) The owner or operator shall select a closure financial assurance mechanism from the list of mechanisms specified in paragraphs (F) to (I) of this rule provided the owner or operator satisfies the criteria for use of that mechanism. The owner or operator of a scrap tire transportation business that also owns or operates a solid waste facility may select a closure financial assurance mechanism in accordance with Chapter 3745-27 or Chapter 3745-503 of the Administrative Code, as applicable, for both the solid waste facility and the scrap tire transportation business.
(F) Closure trust fund.
(1)
The owner or
operator may satisfy the requirements of this rule by establishing a closure
trust fund that conforms to the requirements of this paragraph, by sending an
originally signed duplicate of the trust agreement to the director prior to
issuance of a registration certificate. The trustee shall be an entity that has
the authority to act as a trustee and which trust operations are regulated and
examined by a federal or state agency.
(2)
The wording of
the trust agreement shall be identical to the wording specified in paragraph
(A)(1) of rule
3745-580-24 of the
Administrative Code on forms prescribed by the director, and the trust
agreement shall be accompanied by a formal certification of
acknowledgment.
(3)
A closure trust fund shall be executed and funded in
the amount specified in section
3734.74 of the Revised Code at
the time the fund is established.
(4)
If the value of
the trust fund is less than the the amount specified in section
3734.74 of the Revised Code at
any time, the owner or operator shall, not later than sixty days after the
value of the trust fund is below the amount specified in section
3734.74 of the Revised Code,
either deposit a sufficient amount into the trust fund so that the value is not
less than the amount specified in section
3734.74 of the Revised Code, or
obtain alternative financial assurance using one of the mechanisms specified in
this rule.
(5)
The director shall instruct the trustee to release to
the owner or operator such funds as the director specifies in writing, after
receiving one of the following requests from the owner or operator for a
release of funds:
(a)
A written request to the director for the release of
the amount in excess of the amount specified in section
3734.74 of the Revised
Code.
(b)
A written request to the director for release of the
amount in the trust fund as a result of such substitution, if the owner or
operator substitutes alternative financial assurance from the list of
mechanisms specified in this rule.
(6)
Reimbursement for
scrap tire transporter closure. After beginning closure, the owner or operator,
or any other person authorized by the owner, operator, or director to perform
closure, may request reimbursement for closure expenditures by submitting
itemized bills to the director. After receiving itemized bills for closure
activities, the director shall determine whether the closure expenditures are
in accordance with applicable rules, or are otherwise justified, and if so,
will instruct the trustee to make reimbursement in such amounts as the director
specifies in writing. If the director determines that the cost of scrap tire
transporter closure will be greater than the value of the trust fund, the
director may withhold reimbursement of such amounts as deemed prudent until the
director determines, in accordance with paragraph (J) of this rule, that the
owner or operator is no longer required to maintain financial assurance for
scrap tire transporter closure.
(7)
The director will
agree to termination of the trust fund when one of the following occurs:
(a)
The owner or
operator substitutes alternative financial assurance for closure as specified
in paragraph (F)(4) of this rule.
(b)
The director
notifies the owner or operator, in accordance with paragraph (J) of this rule
that the owner or operator is no longer required by this rule to maintain
financial assurance for scrap tire transporter closure.
(G) Surety bond guaranteeing payment into scrap tire management fund.
(1)
The owner or operator may satisfy the requirements of
this rule by obtaining a surety bond that conforms to the requirements of this
paragraph and by delivering the originally signed bond to the director by
certified mail or any other form of mail accompanied by a receipt prior to
issuance of the registration certificate and by submitting a copy of the bond
into the operating record, if applicable. The surety company issuing the bond
shall at a minimum be among those listed as acceptable sureties on federal
bonds in the most recent listing of approved sureties as published by the U.S.
department of the treasury.
(2)
The wording of
the surety bond shall be identical to the wording specified in paragraph (B) of
rule 3745-580-24 of the
Administrative Code on forms prescribed by the director.
(3)
Under the terms
of the surety bond all payments made thereunder will be deposited by the surety
directly into the scrap tire management fund established by division (G) of
section 3734.82 of the Revised Code and
in accordance with instructions from the director.
(4)
The bond shall
guarantee that the surety will become liable on the bond obligation unless the
owner or operator provides alternative financial assurance as specified in this
rule, and obtains the director's written approval of the alternative financial
assurance provided, not later than ninety days after both the owner or operator
and the director receive notice of cancellation of the bond from the
surety.
(5)
Under the terms of the bond, the surety shall 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 shall be in the amount
specified in section 3734.74 of the Revised
Code.
(7)
Under the terms of the bond, the bond shall remain in
force unless the surety sends written notice of cancellation by certified mail
or any other form of mail accompanied by a receipt to the owner or operator and
to the director. Cancellation cannot occur, however, during the one hundred
twenty day period beginning on the first day that both the owner or operator
and the director have received the notice of cancellation, as evidenced by the
return receipts.
(8)
The owner or operator may cancel the bond if the
director has given prior written consent. The director will provide such
written consent to the surety bond company when one of the following
occurs:
(a)
The
owner or operator substitutes alternative financial assurance for closure of a
scrap tire transporter as specified in this rule.
(b)
The director
notifies the owner or operator, in accordance with paragraph (J) of this rule,
that the owner or operator is no longer required to maintain financial
assurance for the scrap tire transporter.
(H) Surety bond guaranteeing performance of scrap tire transporter closure.
(1)
The owner or
operator may satisfy the requirements of this rule by obtaining a surety bond
that conforms to the requirements of this paragraph and by delivering the
originally signed bond to the director prior to issuance of the registration
certificate. The surety company issuing the bond shall at a minimum be among
those listed as acceptable sureties on federal bonds in the most recent listing
of approved sureties as published by the U.S. department of the
treasury.
(2)
The wording of the surety bond shall be identical to
the wording specified in paragraph (C) of rule
3745-580-24 of the
Administrative Code on forms prescribed by the director.
(3)
Under the terms
of the surety bond, all payments made thereunder will be deposited by the
surety directly into the scrap tire management fund established by division (G)
of section 3734.82 of the Revised Code and
in accordance with instructions from the director.
(4)
The bond shall
guarantee that the surety will become liable on the bond obligation unless the
owner or operator provides alternative financial assurance as specified in this
rule, and obtains the director's written approval of the alternate financial
assurance provided not later than ninety days after both the owner or operator
and the director receive notice of cancellation of the bond from the
surety.
(5)
Performing activities. 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 by the
director that the owner or operator has failed to perform closure activities in
accordance with applicable rules, the surety shall perform closure in
accordance with applicable rules or deposit the amount of the penal sum into
the scrap tire management fund established by division (G) of section
3734.82 of the Revised
Code.
(6)
The penal sum of the bond shall be in the amount
specified in section 3734.74 of the Revised
Code.
(7)
Under the terms of the bond, the bond shall remain in
force unless the surety sends written notice of cancellation by certified mail
or any other form of mail accompanied by a receipt to the owner or operator and
to the director. Cancellation cannot occur, however, during the one hundred
twenty day period beginning on the first day that both the owner or operator
and the director have received the notice of cancellation as evidenced by the
return receipts.
(8)
The owner or operator may cancel the bond if the
director has given prior written consent. The director will provide such
written consent to the surety bond company when one of the following
occurs:
(a)
The
owner or operator substitutes alternative financial assurance for closure of a
scrap tire transporter as specified in this rule.
(b)
The director
notifies the owner or operator, in accordance with paragraph (J) of this rule,
that the owner or operator is no longer required by this rule to maintain
financial assurance for scrap tire transporter closure.
(9)
The
surety shall not be liable for deficiencies in the completion of scrap tire
transporter closure by the owner or operator after the owner or operator has
been notified by the director, in accordance with this rule, that the owner or
operator is no longer required to maintain financial assurance for scrap tire
transporter closure.
(I) Closure letter of credit.
(1)
The
owner or operator may satisfy the requirements of this rule by obtaining an
irrevocable standby letter of credit ("letter of credit") that conforms to the
requirements of this paragraph and by having the originally signed letter of
credit delivered to the director by certified mail or any other form of mail
accompanied by a receipt prior to issuance of the registration certificate. The
issuing institution shall 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.
(2)
The wording of the letter of credit shall be identical
to the wording specified in paragraph (D) of rule
3745-580-24 of the
Administrative Code on forms prescribed by the director.
(3)
Under the terms
of the letter of credit, all amounts paid pursuant to a draft by the director
shall be deposited promptly and directly into the scrap tire management fund
established by division (G) of section
3734.82 of the Revised Code and
in accordance with instructions from the director.
(4)
The letter of
credit shall 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 names and addresses of the scrap tire
transporter business and the owner and the operator and the amount of funds
assured for scrap tire transporter closure by the letter of
credit.
(5)
The letter of credit shall be irrevocable and issued
for a period of at least one year. The letter of credit shall provide that the
expiration date will be automatically extended for a period of at least one
year unless, not later than one hundred twenty days prior to the current
expiration date, the issuing institution notifies both the owner and operator
and the director by certified mail or any other form of mail accompanied by a
receipt of a decision not to extend the expiration date. Under the terms of the
letter of credit, the one hundred twenty day period shall begin on the day when
both the owner or operator and the director have received the notice, as
evidenced by the return receipts.
(6)
The letter of
credit shall be issued in the amount specified in section
3734.74 of the Revised
Code.
(7)
Under the terms of the letter of credit, the director
may draw on the letter of credit following a determination that the owner or
operator has failed to do the following:
(a)
Perform scrap
tire transporter closure in accordance with applicable rules.
(b)
Provide
alternative financial assurance as specified in this rule and obtain written
approval of such alternative financial assurance from the director not later
than ninety days after the owner and operator and the director have received
notice from the issuing institution that it will not extend the letter of
credit beyond the current expiration date, the director shall draw on the
letter of credit. The director may delay the drawing if the issuing institution
grants an extension of the term of the credit. During the thirty days of any
such extension the director shall draw on the letter of credit if the owner or
operator has failed to provide alternative financial assurance as specified in
this rule and has failed to obtain written approval of such alternative
financial assurance from the director.
(8)
The director
shall return the original letter of credit to the issuing institution for
termination when either of the following occur:
(a)
The owner or
operator substitutes alternative financial assurance for scrap tire transporter
closure as specified in this rule.
(b)
The director
notifies the owner or operator, in accordance with paragraph (J) of this rule,
that the owner or operator is no longer required to maintain financial
assurance for scrap tire transporter closure.
(J) Release of the owner or operator from the requirements of this rule. The director shall notify the owner or operator in writing that the owner or operator is no longer required by this rule to maintain financial assurance for scrap tire transporter closure, unless the director has reason to believe that closure has not been completed in accordance with applicable rules.
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