§ 67450.49. Financial Assurance for Shwccaf Closure.

(a) This section applies to all SHWCCAFs deemed to have a permit by rule pursuant to section 66270.60, subsection (d)(7).

(b) The owner or operator of a SHWCCAF shall prepare and submit to the CUPA or authorized agency a written estimate, in current dollars, of the cost of closing the SHWCCAF. The estimate shall be based on the maximum projected closure cost. However, the closure cost estimate may take into account any salvage value that may be realized from the sale of wastes, facility structures or equipment, land, or other facility assets at the time of closure. The closure cost estimate may also take into account reduced costs that may be incurred by employing the operator's own personnel and/or equipment for actual closure activities.

(1) The owner or operator of a SHWCCAF shall adjust annually the closure cost estimate for inflation within sixty (60) days prior to the anniversary date of the original establishment of the financial mechanism(s). The adjustment shall be made as specified below using an inflation factor derived from the annual Implicit Price Deflator for Gross National Product as published by the U.S. Department of Commerce in its Survey of Current Business. The inflation factor is obtained by dividing the latest published annual Deflator by the Deflator for the previous year.

(A) The first adjustment is made by multiplying the closure cost estimate by the inflation factor developed as specified in subsection (b)(1) of this section. The result is the adjusted closure cost estimate.

(B) Subsequent adjustments are made by multiplying the latest adjusted closure cost estimate by the latest inflation factor developed as specified in subsection (b)(1) of this section.

(2) The owner or operator of a SHWCCAF shall revise the closure cost estimate no more that thirty (30) days after a change in the closure plan increases the cost of closure. The revised closure cost estimate shall be adjusted for inflation as specified in subsection (b)(1) of this section.

(3) The most current closure plan and the most current closure cost estimate shall be kept on file at the SHWCCAF during the operating life of the facility.

(c) Financial assurance for closure of a SHWCCAF shall be established by one of the following methods and submitted with the certification required in subsection (d) of this section:

(1) a closure trust fund, as specified in section 66265.143, subsection (a);

(2) a surety bond guaranteeing payment into a closure trust fund, as specified in section 66265.143, subsection (b);

(3) a closure letter of credit, as specified in section 66265.143, subsection (c);

(4) closure insurance, as specified in section 66265.143, subsection (d);

(5) a financial test and corporate guarantee for closure, as specified in section 66265.143, subsection (e);

(6) multiple financial mechanisms for closure costs, as specified in section 66265.143, subsection (f),

(7) an alternate financial mechanism, as specified in section 66265.143, subsection (h); or

(8) self-insurance (for public agencies).

(A) A public agency operating a SHWCCAF may satisfy the requirements of this section by submitting a certificate of self-insurance to the CUPA or authorized agency. The public agency shall submit DTSC Form 1220 (2/96) that may be obtained from the CUPA or authorized agency. The certificate of self-insurance shall contain original signatures.

(B) The public agency shall guarantee that funds shall be available to close the facility whenever final closure occurs. The public agency shall also guarantee that once final closure begins, the public agency shall, at the direction of the CUPA or authorized agency, provide funding up to an amount equal to the full amount of the most recent closure cost estimate, to a party or parties specified by the CUPA or authorized agency.

(d) The owner or operator of a SHWCCAF shall submit a financial assurance certification to the CUPA or authorized agency that documents compliance with the closure cost estimate and financial assurance requirements of subsections (b), (c), and (d) of this section, as necessary. The certification shall be submitted with the notification required by sections 67450.43(b), (c), or (f), as appropriate, or annually in years where notification is not required.

(1) The certification shall contain the following information:

(A) The current closure cost estimate of the SHWCCAF as determined in subsection (b) of this section.

(B) The mechanism(s) established to provide the closure cost assurance for the SHWCCAF, as described in subsection (d), including:

1. The name and location of the financial institution, insurance company, surety company, or other appropriate organization used to establish the closure assurance for the SHWCCAF.

2. The effective date of the closure assurance for the SHWCCAF.

(C) The certification shall be signed according to the requirements of section 66270.11 as those requirements apply to permit applications.

(2) The CUPA or authorized agency may require the owner or operator of a SHWCCAF to submit the Certification of Financial Assurance Page of the Unified Program Consolidated Form (UPCF) (1/99 revised) found in Title 27, CCR, Division 1, Subdivision 4, Chapter 1, Appendix E (after section 15620), as the certification required by the section.

HISTORY

1. New section filed 1-30-2002; operative 1-30-2002 pursuant to Government Code section 11343.4 (Register 2002, No. 5).

2. Change without regulatory effect amending subsections (a) and (c)(1)-(5) and repealing and adding new subsections (c)(6)-(7) filed 12-19-2005 pursuant to section 100, title 1, California Code of Regulations (Register 2005, No. 51).

Note

Note: Authority cited: Sections 25150 and 25245, Health and Safety Code. Reference: Sections 25150, 25200, 25245 and 25404.1, Health and Safety Code.