§ 66265.147. Liability Requirements.

(a) Coverage for sudden accidental occurrences. An owner or operator of a hazardous waste transfer, treatment, storage or disposal facility or a group of such facilities, shall demonstrate to the Department financial responsibility for bodily injury and property damage to third parties caused by sudden accidental occurrences arising from operations of the facility or group of facilities. Except as specified in Section 67450.16, the owner or operator shall have and maintain liability coverage for sudden accidental occurrences in the amount of at least $1 million per occurrence with an annual aggregate of at least $2 million, exclusive of legal defense costs. This liability coverage may be demonstrated, as specified in subsections (a)(1), (2), (3), (4), (5), (6) or (8) of this section, and for an operator which is a public agency proposing to operate a household hazardous waste collection facility, subsection (7).

(1) An owner or operator may demonstrate the required liability coverage by having liability insurance as specified in this subsection.

(A) At a minimum, the insurer shall 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) Each insurance policy shall be amended by attachment of the Hazardous Waste Facility Liability Endorsement or evidenced by a Certificate of Liability Insurance. If requested by the Department, the owner or operator shall provide a copy of the insurance policy; the copy of the insurance policy shall contain original signatures.

(C) The wording of the liability endorsement shall be identical to the wording specified in section 66264.151, subsection (i). The liability endorsement shall contain original signatures and shall be submitted to the Department.

(D) The wording of the certificate of insurance shall be identical to the wording specified in section 66264.151, subsection (j). The certificate of insurance shall contain original signatures and shall be submitted to the Department.

(E) An owner or operator of a new facility shall submit the liability endorsement or certificate of insurance to the Department at least 60 days before the date on which hazardous waste is first received for transfer, treatment, storage or disposal. The insurance shall be effective before this initial receipt of hazardous waste.

(2) An owner or operator may meet the requirements of this section by passing a financial test or using the guarantee for liability coverage as specified in subsections (f) and (g) of this section.

(3) An owner or operator may meet the requirements of this section by obtaining a letter of credit for liability coverage as specified in subsection (h) of this section.

(4) An owner or operator may meet the requirements of this section by obtaining a payment bond for liability coverage as specified in subsection (i) of this section.

(5) An owner or operator may meet the requirements of this section by obtaining a trust fund for liability coverage as specified in subsection (j) of this section.

(6) An owner or operator may demonstrate the required liability coverage through use of combinations of insurance, financial test, guarantee, letter of credit, payment bond and trust fund, except that the owner or operator may not combine a financial test covering part of the liability coverage requirement with a guarantee unless the financial statement of the owner or operator is not consolidated with the financial statement of the guarantor. The amounts of coverage demonstrated shall total at least the minimum amounts required by this section. If the owner or operator demonstrates the required coverage through the use of a combination of financial assurances under this subsection, the owner or operator shall specify at least one such assurance as “primary” coverage and shall specify the other assurance as “excess” coverage.

(7) An operator which is a public agency which is proposing to operate a household hazardous waste collection facility may meet the requirements of this section by obtaining self-insurance as specified in subsection (k) of this section.

(8) An owner or operator may meet the requirements of this section by obtaining an alternative financial mechanism, as described in subsection (l) of this section.

(9) An owner or operator shall notify the Department in writing within 30 days whenever:

(A) a claim results in a reduction in the amount of financial assurance for liability coverage under this section provided by a financial instrument authorized by subsections (a)(1) through (a)(5), (a)(7) and (a)(8) of this section; or

(B) a Certification of Valid Claim for bodily injury or property damages caused by a sudden or non-sudden accidental occurrence arising from the operation of a hazardous waste transfer, treatment, storage, or disposal facility is entered between the owner or operator and third-party claimant for liability coverage under subsections (a)(1) through (a)(5), (a)(7) and (a)(8) of this section; or

(C) a final court order establishing a judgment for bodily injury or property damage caused by a sudden or non-sudden accidental occurrence arising from the operation of a hazardous waste treatment, storage, or disposal facility is issued against the owner or operator or an instrument that is providing financial assurance for liability coverage under subsection (a)(1) through (a)(5), (a)(7) and (a)(8) of this section

(b) Coverage for non-sudden accidental occurrences. An owner or operator of a surface impoundment as defined in section 66260.10, landfill as defined in section 66260.10, or land treatment facility as defined in section 66260.10 which is used to manage hazardous waste, or a group of such facilities, shall demonstrate to the Department financial responsibility for bodily injury and property damage to third parties caused by non-sudden accidental occurrences arising from operations of the facility or group of facilities. The owner or operator shall have and maintain liability coverage for non-sudden accidental occurrences in the amount of at least $3 million per occurrence, as defined in section 66260.10 with an annual aggregate of at least $6 million, exclusive of legal defense costs. An owner or operator who must meet the requirements of this section may combine the required per-occurrence coverage levels for sudden and non-sudden accidental occurrences into a single per-occurrence level, and combine the required annual aggregate coverage levels for sudden and nonsudden accidental occurrences into a single annual aggregate level. Owners or operators who combine coverage levels for sudden and non-sudden accidental occurrences shall maintain liability coverage in the amount of at least $4 million per occurrence and $8 million annual aggregate. This liability coverage may be demonstrated as specified in subsections (b)(1) through (7) of this section.

(1) An owner or operator may demonstrate the required liability coverage by having liability insurance as specified in this subsection.

(A) At a minimum, the insurer shall 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) Each insurance policy shall be amended by attachment of the Hazardous Waste Facility Liability Endorsement or evidenced by a Certificate of Liability Insurance. If requested by the Department, the owner or operator shall provide a copy of the insurance policy; the copy of the insurance policy shall contain original signatures.

(C) The wording of the liability endorsement shall be identical to the wording specified in section 66264.151, subsection (i). The liability endorsement shall contain original signatures and shall be submitted to the Department.

(D) The wording of the certificate of insurance shall be identical to the wording specified in section 66264.151, subsection (j). The certificate of insurance shall contain original signatures and shall be submitted to the Department.

(E) An owner or operator of a new facility shall submit the liability endorsement or certificate of insurance to the Department at least 60 days before the date on which hazardous waste is first received for transfer, treatment, storage or disposal. The insurance shall be effective before this initial receipt of hazardous waste.

(2) An owner or operator may meet the requirements of this section by passing a financial test or using the guarantee for liability coverage as specified in sections (f) and (g) of this section.

(3) An owner or operator may meet the requirements of this section by obtaining a letter of credit for liability coverage as specified in subsection (h) of this section.

(4) An owner or operator may meet the requirements of this section by obtaining a payment bond for liability coverage as specified in subsection (i) of this section.

(5) An owner or operator may meet the requirements of this section by obtaining a trust fund for liability coverage as specified in subsection (j) of this section.

(6) An owner or operator may demonstrate the required liability coverage through use of combinations of insurance, financial test, guarantee, letter of credit, payment bond and trust fund, except that the owner or operator may not combine a financial test covering part of the liability coverage requirements with a guarantee unless the financial statement of the owner or operator is not consolidated with the financial statement of the guarantor. The amounts of coverage demonstrated shall total at least the minimum amounts required by this section. If the owner or operator demonstrates the required coverage through the use of a combination of financial assurances under this subsection, the owner or operator shall specify at least one such assurance as “primary” coverage and shall specify the other assurance as “excess” coverage.

(7) An owner or operator may meet the requirements of this section by obtaining an alternative financial mechanism, as described in subsection (l) of this section.

(8) An owner or operator shall notify the Department in writing within 30 days whenever:

(A) a claim results in a reduction in the amount of financial assurance for liability coverage under this section provided by a financial instrument authorized by subsections (b)(1) through (b)(7) of this section; or

(B) a Certification of Valid Claim for bodily injury or property damages caused by a sudden or non-sudden accidental occurrence arising from the operation of a hazardous waste transfer, treatment, storage, or disposal facility is entered between the owner or operator and third-party claimant for liability coverage under subsections (b)(1) through (b)(7) of this section; or

(C) a final court order establishing a judgement for bodily injury or property damage caused by a sudden or non-sudden accidental occurrence arising from the operation of a hazardous waste treatment, storage, or disposal facility is issued against the owner or operator or an instrument that is providing financial assurance for liability coverage under subsections (b)(1) through (b)(7) of this section.

(c) Request for variance. If an owner or operator can demonstrate to the satisfaction of the Department that the levels of financial responsibility required by subsection (a) or (b) of this section or section 67450.5 are not consistent with the degree and duration of risk associated with transfer, treatment, storage, or disposal at the facility or group of facilities, the owner or operator may obtain a variance from the Department. The request for a variance shall be submitted in writing to the Department. If granted, the variance shall take the form of an adjusted level of required liability coverage, such level to be based on the Department's assessment of the degree and duration of risk associated with the ownership or operation of the facility or group of facilities. The Department may require an owner or operator who requests a variance to provide such technical and engineering information as is deemed necessary by the Department to determine a level of financial responsibility other than that required by subsection (a) or (b) of this section or section 67450.5. The Department will process a variance request as if it were a permit modification request under section 66270.41, subsection (a)(5) of this division and subject to the procedures of section 66271.4 of this division. Notwithstanding any other provision, the Department may hold a public hearing at its discretion or whenever it finds, on the basis of requests for a public hearing, a significant degree of public interest is expressed in a tentative decision to grant a variance.

(d) Adjustments by the Department. If the Department determines that the levels of financial responsibility required by subsections (a) or (b) of this section or section 67450.5 are not consistent with the degree and duration of risk associated with transfer, treatment, storage or disposal at the facility or group of facilities, the Department may adjust the level of financial responsibility required under subsections (a) or (b) of this section or section 67450.5 as may be necessary to protect human health and the environment. This adjusted level shall be based on the Department's assessment of the degree and duration of risk associated with the ownership or operation of the facility or group of facilities. In addition, if the Department determines that there is a significant risk to human health and the environment from non-sudden accidental occurrences resulting from the operations of a facility that is not a surface impoundment, landfill or land treatment facility, the Department shall require that an owner or operator of the facility comply with subsection (b) of this section. An owner or operator shall furnish to the Department, within a reasonable time, any information which the Department requests to determine whether cause exists for such adjustments of level or type of coverage. The Department shall process an adjustment of the level of required coverage as if it were a permit modification under section 66270.41, subsection (a)(5) of this division and subject to the procedures of 66271.4 of this division. Notwithstanding any other provision, the Department may hold a public hearing at its discretion or whenever, on the basis of requests for a public hearing, a significant degree of public interest is expressed in a tentative decision to adjust the level or type of required coverage.

(e) Period of coverage. Within 60 days after receiving certifications from the owner or operator and an independent registered professional engineer that final closure has been completed in accordance with the approved closure plan, the Department shall notify the owner or operator in writing that he or she is no longer required by this section to maintain liability coverage for that facility, unless the Department has reason to believe that closure has not been in accordance with the approved closure plan.

(f) Financial test for liability coverage.

(1) An owner or operator may satisfy the requirements of this section by demonstrating that he or she passes a financial test as specified in this subsection. To pass this test the owner or operator shall meet the criteria of subsection (f)(1)(A) or (B) of this section.

(A) the owner or operator shall have:

1. net working capital and tangible net worth each at least six times the amount of liability coverage to be demonstrated by this test; and

2. tangible net worth of at least $10 million; and

3. assets in the United States amounting to either:

a. at least 90 percent of total assets; or

b. at least six times the amount of liability coverage to be demonstrated by this test.

(B) 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; and

2. tangible net worth of at least $10 million; and

3. tangible net worth at least six times the amount of liability coverage to be demonstrated by this test; and

4. assets in the United States amounting to either:

a. at least 90 percent of total assets; or

b. at least six times the amount of liability coverage to be demonstrated by this test.

(2) The phrase “amount of liability coverage” as used in subsection (f)(1) of this section refers to the annual aggregate amounts for which coverage is required under subsections (a) and (b) of this section and sections 67450.14 and 67450.15.

(3) To demonstrate that this test can be met, the owner or operator shall submit the following items to the Department:

(A) a letter signed by the owner's or operator's chief financial officer and worded as specified in section 66264.151, subsection (g). The letter shall be on the official letterhead stationery of the owner or operator, and shall contain an original signature. An owner or operator may use the financial test to demonstrate both assurance for closure or postclosure care, as specified in section 66264.143, subsection (f), section 66264.145, subsection (f), section 66265.143, subsection (e), section 66265.145, subsection (e) and section 67450.13, and liability coverage as specified in section 66264.147, subsection (a), section 66264.147, subsection (b), section 66265.147, subsection (a), section 66265.147, subsection (b), sections 67450.14 and 67450.15. If an owner or operator is using the financial test to cover both forms of financial responsibility, a separate letter is not required.

(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.

(C) a special report from the owner's or operator's independent certified public accountant to the owner or operator stating that:

1. the independent certified public accountant 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

2. in connection with that procedure, no matters came to the independent certified public accountant's attention which caused him or her to believe that the specified data should be adjusted.

(4) An owner or operator of a new facility shall submit the items specified in subsection (f)(3) of this section to the Department at least 60 days before the date on which hazardous waste is first received for transfer, treatment, storage or disposal.

(5) After the initial submission of items specified in subsection (f)(3) of this section, the owner or operator shall send updated information to the Department within 90 days after the close of each succeeding fiscal year. This information shall consist of all three items specified in subsection (f)(3) of this section.

(6) If the owner or operator no longer meets the requirements of subsection (f)(1) of this section, liability coverage shall be obtained for the entire amount of coverage as described in this section by use of the financial mechanisms described in this section. Notice shall be sent to the Department of the owner's or operator's intent to obtain the required coverage; notice shall be sent by either registered mail or by certified mail within 90 days after any occurrence that prevents the owner or operator from meeting the test requirements. Evidence of liability coverage shall be submitted to the Department within 90 days after any occurrence that prevents the owner or operator from meeting the requirements.

(7) The Department may, based on a reasonable belief that the owner or operator no longer meets the requirements of subsection (f)(1) of this section, require reports of financial condition at any time from the owner or operator in addition to those specified in subsection (f)(3) of this section. If the Department finds, on the basis of such reports or other information, that the owner or operator no longer meets the requirements of subsection (f)(1) of this section, the owner or operator shall provide alternate financial assurance for closure and postclosure care and evidence of the required liability coverage as specified in this section within 30 days after notification of such a finding.

(8) The Department 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 (see subsection (f)(3)(B) of this section). An adverse opinion or a disclaimer of opinion will be cause for disallowance. The Department will evaluate other qualifications on an individual basis. The owner or operator shall provide evidence of liability coverage for the entire amount required as specified in this section within 30 days after notification of disallowance.

(9) The owner or operator is no longer required to submit the items specified in subsection (f)(3) of this section when:

(A) an owner or operator substitutes alternate financial assurance for closure and postclosure care and evidence of liability coverage as specified in this section; or

(B) the Department releases the owner or operator from the requirements of this section in accordance with sections 66265.143, subsection (i), 66265.145, subsection (i) and 66265.147, subsection (e).

(g) Guarantee for liability coverage.

(1) Subject to subsection (g)(2) of this section, an owner or operator may meet the requirements of this section by obtaining a written guarantee, hereinafter referred to as “guarantee.” The guarantor shall 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 shall meet the requirements for owners or operators in subsections (f)(1) through (f)(6) of this section. The wording of the guarantee shall be identical to the wording specified in section 66264.151, subsection (h)(2), and shall have original signatures. A certified copy of the guarantee shall accompany the items sent to the Department as specified in subsection (f)(3) of this section. 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, this letter shall 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 shall describe this “substantial business relationship” and the value received in consideration of the guarantee. The term of the guarantee shall provide as follows:

(A) if the owner or operator fails to satisfy a judgment based on a determination of liability for bodily injury or property damage to third parties caused by sudden or non-sudden accidental occurrences (or both as the case may be), arising from the operation of facilities covered by this guarantee, or fails to pay an amount agreed to in settlement of claims arising from or alleged to arise from such injury or damage, the guarantor shall do so up to the limits of coverage.

(B) the guarantee shall remain in force unless the guarantor sends notice of cancellation by certified mail to the owner or operator and to the Department. This guarantee shall not be terminated unless and until the Department approves alternate liability coverage complying with section 66264.147 and/or section 66265.147.

(2)(A) In the case of corporations incorporated in states other than California, a guarantee may be used to satisfy the requirements of this section only if the Attorney General or Insurance Commissioner of;

1. the State in which the guarantor is incorporated, and

2. each state in which a facility covered by the guarantee is located have submitted a written statement to the Department that a guarantee executed as described in this section is a legally valid and enforceable obligation in that State.

(B) In the case of corporations incorporated outside the United States, a guarantee may be used to satisfy the requirements of this section only if;

1. the non-U.S. corporation has identified a registered agent for service of process in each State in which a facility covered by the guarantee is located and in the State in which it has its principal place of business; and if

2. the Attorney General or Insurance Commissioner of each State in which a facility covered by the guarantee is located and the State in which the guarantor corporation has its principal place of business, has submitted a written statement to the Department that a guarantee executed as described in this section is a legally valid and enforceable obligation in that State.

(h) Letter of credit for liability coverage:

(1) An owner or operator may satisfy the requirements of this section by obtaining an irrevocable standby letter of credit that conforms to the requirements of this subsection and submitting a copy of the letter of credit to the Department.

(2) The financial institution issuing the letter of credit 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.

(3) The wording of the letter of credit shall be identical to the wording specified in section 66264.151, subsection (k) of this division. The letter of credit shall contain original signatures and shall be accompanied by a letter from the owner or operator referring to the letter of credit by number, issuing institution, effective 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 valid third party liability claims of the facility by the letter of credit.

(4) An owner or operator who uses a letter of credit to satisfy the requirement of this section may also establish a standby trust fund. Under the terms of the letter of credit, all amounts paid pursuant to a draft

by the trustee of the standby trust shall be deposited by the issuing institution directly into the standby trust fund in accordance with instructions from the trustee. The trustee of the standby trust fund shall 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. This standby trust fund shall meet all of the requirements of the trust fund specified in subsection (j) of this section.

(5) The wording of the standby trust fund shall be identical to the wording specified in section 66264.151, subsection (n).

(6) The letter of credit shall be irrevocable and issued for a period of at least one (1) year. The letter of credit shall provide that the expiration date will be automatically extended for a period of at least one (1) year unless, at least 120 days before the current expiration date, the issuing institution notifies both the owner or operator and the Department by certified mail of a decision not to extend the expiration date. Under the terms of the letter of credit, the 120 days shall begin on the date when both the owner or operator and the Department have received the notice, as evidenced by the return receipts.

(7) The letter of credit shall be issued in an amount at least equal to the required per occurrence and annual aggregate amount for sudden, or nonsudden, or sudden and nonsudden liability coverage, except as provided in subsection (b)(6) of this section.

(i) Payment bond for liability coverage.

(1) An owner or operator may satisfy the requirements of this section by obtaining a payment bond that conforms to the requirements of this subsection and submitting a copy of the bond to the Department.

(2) The surety company issuing the bond shall be among those listed as acceptable sureties on Federal bonds in the most recent Circular 570 of the U.S. Department of the Treasury.

(3) The wording of the payment bond shall be identical to the wording specified in section 66264.151, subsection (l). The payment bond shall contain original signatures.

(4) A payment bond may be used to satisfy the requirements of this section only if the Attorney General or Insurance Commissioner of

(A) the State in which the surety is incorporated, and

(B) each State in which a facility/TTU covered by the payment bond is located have submitted a written statement to the Department that a payment bond executed as described in this section and is a legally valid and enforceable obligation in that State.

(j) Trust fund for liability coverage.

(1) An owner or operator may satisfy the requirements of this section by establishing a trust fund that conforms to the requirements of this subsection by submitting an originally signed duplicate of the trust agreement and a formal certification of acknowledgment.

(2) The trustee shall 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.

(3) The trust fund for liability coverage shall be funded for the full amount of the liability coverage to be provided by the trust fund before it may be relied upon to satisfy the requirements of this section. If at any time after the trust fund is created the amount of funds in the trust fund is reduced below the full amount of the liability coverage to be provided, the owner or operator, by the anniversary date of the establishment of the fund, shall either add sufficient funds to the trust fund to cause its value to equal the full amount of liability coverage to be provided, or obtain other financial assurance as specified in this section to cover the difference. For purposes of this subsection, “the full amount of the liability coverage to be provided” means the amount of coverage for sudden and/or nonsudden occurrences required to be provided by the owner or operator by this section, less the amount of financial assurance for liability coverage that is being provided by other financial assurance mechanisms being used to demonstrate financial assurance by the owner or operator.

(4) The wording of the trust agreement shall be identical to the wording specified in section 66264.151, subsection (m).

(k) Self-Insurance for Public Agencies.

(1) A public agency operating a household hazardous waste collection facility may demonstrate the required liability coverage by self-insuring as specified in this section, and by submitting evidence of such insurance to the Department.

(2) The public agency shall have:

(A) self-insurance;

(B) an active safety and loss prevention program that seeks to minimize the frequency and magnitude of third party damages caused by accidental occurrences and other self-insured losses; and

(C) procedures for and a recent history of timely investigation and resolution of any claims for third party damages caused by accidental occurrences and other self-insured losses.

(3) To demonstrate that self-insurance can be used, the public agency shall submit the following items to the Department at least 45 days before the date on which hazardous waste is first received. The insurance shall be effective before the initial receipt of hazardous waste:

(A) a Certificate of Self-Insurance shall be completed by utilizing only form DTSC 1165 (12/00), (Certificate of Self-Insurance), without making any changes to the form, which shall be provided by the Department; and

(B) a letter from the Chief Administrative Officer of the public agency which contains an original signature, stating that self-insurance is the chosen mechanism for liability coverage.

(4) If the public agency no longer meets the requirements of subsection (k)(2) of this section, notice shall be sent by either registered mail or certified mail within 30 days after any occurrence that prevents the public agency from meeting the self-insurance requirements. Alternative liability coverage shall be obtained for the entire amount of coverage as described in Section 67450.4, subsection (b) by using one of the other financial mechanisms described in this section. Evidence of the alternative liability coverage shall be submitted to the Department within 90 days after any occurrence that prevents the public agency from meeting the self-insurance requirements.

(5) The Department may, based on the reasonable belief that the public agency no longer meets the requirements of subsection (k)(2) of this section, require reports of financial condition and insurance policies at any time from the public agency in addition to those specified in subsection (k)(3) of this section. If the Department finds, on the basis of such reports or other information, that the public agency no longer meets the requirements of subsection (k)(2) of this section, the public agency shall provide alternate financial assurance for liability coverage as specified in this section within 30 days after notification of such a finding.

(l) Liability Coverage -Alternative Mechanism.

(1) An owner or operator of a facility or facilities where solely non-RCRA hazardous waste is managed, a Transportable Treatment Unit (TTU) operated pursuant to section 67450.2(a) and/or a Fixed Treatment Unit (FTU) operated pursuant to section 67450.2(b), may demonstrate the required liability coverage by means of a mechanism other than those specified in subsections (a) and (b) of this section, provided that, prior to its use, the proposed mechanism has been submitted to and approved by the Department. The mechanism shall be at least equivalent to the mechanisms specified in subsections (a) and (b) of this section. The Department shall evaluate the equivalency of a mechanism principally in terms of:

(A) certainty of the availability of funds for the required liability coverage; and

(B) the amount of funds that will be made available;

(C) the Department shall also consider other factors deemed to be appropriate, and shall require the owner or operator to submit additional information as is deemed necessary to make the determination.

(2) The owner or operator shall submit to the Department the proposed mechanism together with a letter requesting that the alternate mechanism be considered acceptable for meeting the requirements of subsections (a) and (b) of this section and sections 67450.14 and 67450.15. The submission shall include the following information:

(A) the name, address and phone number of the issuing institution; and

(B) hazardous waste facility identification number, name, address and the amount of liability, TTU or FTU coverage to be provided for each facility; and

(C) the terms of the proposed mechanism (period of coverage, renewal/extension, cancellation).

(3) The Department shall notify the owner or operator in writing of the determination made regarding the proposed mechanism's acceptability in lieu of the other mechanisms specified in subsections (a) and (b) of this section and sections 67450.14 and 67450.15.

(4) If a proposed mechanism is found acceptable, the owner or operator shall submit a fully executed document to the Department. The document shall contain original signatures and shall be accompanied by a formal certification of acknowledgment.

(5) If a proposed mechanism is found acceptable except for the amount of coverage, the owner or operator shall either increase the coverage or obtain other liability coverage as specified in subsections (a) and (b) of this section and sections 67450.14 and 67450.15. The amount of coverage available through the combination of mechanisms shall at least equal the amounts required by subsections (a) and (b) of this section and sections 67450.14 and 67450.15.

HISTORY

1. New section filed 5-24-91; operative 7-1-91 (Register 91, No. 22).

2. Amendment of subsections (g) and (l) filed 10-23-91; operative 1-1-92 (Register 92, No. 12).

3. Amendment of section and Note filed 4-12-93; operative 4-12-93 (Register 93, No. 16).

4. Change without regulatory effect amending section filed 8-17-95 pursuant to section 100, title 1, California Code of Regulations (Register 95, No. 33).

5. Amendment of Note filed 10-13-98; operative 11-12-98 (Register 98, No. 42).

6. Amendment of subsections (a) and (b) and amendment of Note filed 10-19-98; operative 11-18-98 (Register 98, No. 43).

7. Change without regulatory effect amending subsections (b), (b)(8)(B)-(C), (f)(3)-(f)(3)(B) and (g)(3)(A)-(C), new (g)(4), subsection renumbering and amendment of subsections (h)(1)-(h)(2)(B), (i)(3), (i)(4)(A), (i)(5), (j)(3)-(4), (k)(4) and (l)(3)(A) filed 11-6-2001 pursuant to section 100, title 1, California Code of Regulations (Register 2001, No. 45).

8. Change without regulatory effect amending section filed 12-19-2005 pursuant to section 100, title 1, California Code of Regulations (Register 2005, No. 51).

9. Change without regulatory effect amending subsection (g)(1) filed 3-20-2006 pursuant to section 100, title 1, California Code of Regulations (Register 2006, No. 12).

Note

Note: Authority cited: Sections 25150, 25159, 25159.5, 25245, 58004 and 58012, Health and Safety Code. Reference: Sections 25200.1 and 25245, Health and Safety Code; 40 CFR Section 265.147.