Ohio Admin. Code 3745-400-18 - Financial assurance for post-closure care of construction and demolition debris facilities
(A)
The owner or operator of a construction and demolition debris facility shall
establish and maintain financial assurance for post-closure care of the
facility as required by this rule. Financial assurance may be established and
maintained through the use of one of the options specified in paragraphs (B) to
(F) of this rule, unless it is demonstrated to the satisfaction of the
director or health commissioner
or director of the licensing authority that
an alternate option will guarantee funding for post-closure care. The owner or
operator may use the options in combination as specified in paragraph (G) of
this rule.
(1) Post-closure care cost
estimate. Financial assurance documentation shall include an itemized written
post-closure care cost estimate that calculates the cost of conducting the
post-closure care activities required by rule
3745-400-16
of the Administrative Code for all active licensed disposal areas and for all
inactive licensed disposal areas containing debris. The amount shall be
calculated in current dollars and be based upon a third party conducting all of
the post-closure care activities required by rule
3745-400-16
of the Administrative Code.
(a)
Three separate
cost quotes from three independent entities that are each valid for the
applicable license year.
(b)
Invoices for specified services incurred by the owner
or operator at the facility over the previous license year, accompanied by
documentation that the entity will continue to offer the service at the same
cost for the applicable license year.
(c)
Other
documentation acceptable to the director or health commissioner of the
licensing authority.
(2) Amount and funding
of financial assurance. Post-closure care financial assurance shall be funded
in an amount not less than the post-closure care cost estimate calculated in
accordance with paragraph (A)(1) of this rule unless
the owner or operator has chosen the five year transition in accordance with
rule
3745-400-25 of the
Administrative Code. If the funded post-closure care financial
assurance for the facility is less than the post-closure care cost estimate,
the owner or operator shall fund an amount not less than the post-closure care
cost estimate not later than thirty days after each of the following:
(a) License issuance.
(b) The updated post-closure care financial
assurance documentation required by paragraph (E)(11) of rule
3745-400-12
of the Administrative Code.
(c) The
updated post-closure care financial assurance documentation required by
paragraph (E)(7) of rule
3745-400-16
of the Administrative Code.
If a portion of the increase in the post-closure care cost estimate is due to the addition of active licensed disposal area for which a construction certification report has not been submitted in accordance with rule 3745-400-08 of the Administrative Code, the owner or operator may delay funding that portion of the post-closure care cost estimate necessary to conduct post-close activities for that uncertified active licensed disposal area until the date of submittal of the construction certification report. The owner or operator shall use any single or combination of financial assurance instruments as specified in paragraphs (B) to (F) of rule 3745-400-13 of the Administrative Code.
(3) Review of post-closure care financial
assurance.
(a) The post-closure cost care
estimate shall be recalculated for each of the following:
(i) Renewal of the annual license
application.
(ii) Any application
for a facility modification
(iii)
Prior to submittal of the updated post-closure care financial assurance
documentation required by paragraph (E)(11) of rule
3745-400-12
of the Administrative Code.
(iv) Prior to submittal of the updated
post-closure care financial assurance documentation required by paragraph
(E)(7) of rule
3745-400-16
of the Administrative Code.
(b) The post-closure cost care estimate shall
be recalculated if there is a change in the acreage of the active licensed
disposal area or inactive licensed disposal area containing debris.
(c) If there is no change in the acreage of
the active licensed disposal area or inactive licensed disposal area containing
debris, the owner or operator may as an alternative to recalculating the
post-closure care cost estimate, adjust the post-closure cost estimate
established in the facility's most recent issued license for inflation in
accordance with paragraph (A)(3) (d) of this rule.
(d) Adjustment of the post-closure cost
estimate for inflation. The adjustment shall be made as specified in this
paragraph, using an
the preceding February inflation factor derived from
the annual implicit price deflator for gross domestic product as published by
the U.S. department of commerce in the most recent
February issue of "Survey of Current Business."
. The inflation factor is the result of dividing the
latest published annual deflator by the deflator for the previous year.
(i) The first adjustment is made by
multiplying the post-closure care cost estimate by the inflation factor. The
result is the adjusted post-closure care cost estimate.
(ii) Subsequent adjustments are made by
multiplying the most recently adjusted post-closure care cost estimate by the
most recent inflation factor.
[Comment: The text of the
incorporated materials is not included in this rule and are hereby made a part
of this rule. The "Survey of Current Business" document is available at
http://www.bea.gov or by writing to the "United States Bureau of Economic
Analysis, 1441 L Street NW, Washington, DC 20230."]
(e) The amount of financial
assurance shall not be less than the recalculated post-closure cost estimate
for each renewal of the annual license application, application for a facility
modification, submittal of the updated post-closure care financial assurance
documentation required by paragraph (E)(11) of rule
3745-400-12
of the Administrative Code, and submittal of the updated post-closure care
financial assurance documentation required by paragraph (E)(7) of rule
3745-400-16 of the Administrative Code. Established and funded financial
assurance may be utilized to fulfill the financial assurance requirements if
the dollar amount of the financial assurance is equal to or greater than the
amount required in paragraph (A) of this rule.
(4) Post-closure care financial assurance
documentation shall also include the original copy of the financial assurance
instruments necessary to achieve compliance with the financial assurance
provisions of this rule. The wording contained in the instruments shall be in
accordance with the appropriate paragraph of rule
3745-400-14
of the Administrative Code, unless an option other than those specified in
paragraphs (B) to (F) of this rule is proposed.
(5) Release of funds. Reimbursement shall be
made as follows:
(a) Release of funds prior
to completion of post-closure care. The owner or operator, or any other person
authorized to perform post-closure care activities on behalf of the owner or
operator, may request and receive authorization for reimbursement from or a
reduction of the financial assurance required under this rule. In accordance
with paragraph (A)(3) (e) of this rule, the amount of financial assurance
remaining shall not be less than the recalculated post-closure care cost
estimate. A request for reimbursement from or reduction of financial assurance
shall be submitted to the director or health
commissioner of the licensing authority and include the following:
(i) The amount of reimbursement or reduction
of the financial assurance calculated based upon the unit cost of the completed
post-closure care activities contained in the current approved financial
assurance cost estimate.
(ii) A
post-closure care cost estimate recalculated in accordance with paragraph
(A)(1) of this rule.
(iii) A
comparison of the recalculated post-closure care cost estimate to the amount of
financial assurance remaining if the requested amount of reimbursement or
reduction of the financial assurance is released or reduced.
(b) Release of funds after
completion of post-closure care period. The owner or operator or any other
person authorized to perform post-closure care activities may request and
receive authorization for reimbursement of all remaining funds or termination
of the financial assurance required under this rule after post-closure care has
been completed in accordance with rule
3745-400-16
of the Administrative Code.
(c) The
director or health commissioner of the licensing
authority shall make a determination not later than ninety days after receipt
of a complete request.
(B) Post-closure care trust fund.
(1) The owner or operator may satisfy the
requirements of this rule by establishing a post-closure care trust fund that
conforms to this rule and by submitting an originally signed duplicate of the
trust agreement to the director or health
commissioner or director of the licensing
authority. The trustee shall be an entity that has the authority to act as a
trustee and whose 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
3745-400-14
of the Administrative Code and the trust agreement shall be accompanied by a
formal certification of acknowledgment.
(3) Unless the owner or operator
has chosen the five year transition in accordance
with rule
3745-400-25 of the
Administrative Code or the owner or operator is delaying funding of a
portion of the post-closure cost estimate until submittal of a construction
certification report in accordance with paragraph (A)(2) of this rule, the
owner or operator shall fully fund the total dollar amount of the trust fund
not later than thirty days after each of the following:
(a) License issuance.
(b) The updated post-closure care financial
assurance documentation required by paragraph (E)(11) of rule
3745-400-12
of the Administrative Code.
(c) The
updated post-closure care financial assurance documentation required by
paragraph (E)(7) of rule
3745-400-16
of the Administrative Code.
The owner or operator shall submit to the
(4) If the
owner or operator establishes a post-closure care trust fund to replace one or
more alternative mechanisms specified in this rule, the owner or operator shall
fully fund the trust fund in an amount at least equal to the post-closure care
cost estimate determined in accordance with paragraph (A) of this
rule.
(5) The owner or operator, or
any other person authorized to perform post-closure care, may request release
of funds for post-closure care expenditures in accordance with paragraph (A)(5)
of this rule. The director or health commissioner
or director of the licensing authority
shall calculate in accordance with paragraph (A)(5) of this rule the amount to
be released and shall instruct the trustee, in writing, to make such release.
(6) The director or health commissioner
or director of the licensing authority
shall agree to termination of the trust fund when either of the following
occurs:
(a) The owner or operator substitutes
alternative financial assurance for post-closure care as specified in this
rule.
(b) The
director or health commissioner
or director of the licensing authority
notifies the owner or operator that the owner or operator is no longer required
by this rule to maintain financial assurance for post-closure care of the
construction and demolition debris facility.
(C) Surety bond guaranteeing payment into a
post-closure care trust fund.
(1) The owner
or operator may satisfy the requirements of this rule by obtaining a surety
bond that conforms to this rule and by submitting the originally signed surety
bond to the director or health commissioner
or director of the licensing authority. At
a minimum, the surety bond company issuing the surety bond shall be among those
listed as acceptable sureties on federal bonds in the most recent
"Circular 570" of
listing of approved sureties as published by the U.S.
department of the treasury.
[Comment: The text of the
incorporated materials is not included in this rule and are hereby made a part
of this rule. "Circular 570" is published in the "Federal Register" annually on
the first day of July; interim changes in the circular are also published in
the "Federal Register." This United States department of treasury document is
available at http://www.fms.treas.gov.]
(2) The wording of the surety bond shall be
identical to the wording specified in paragraph (B) of rule
3745-400-14
of the Administrative Code.
(3) The
owner or operator who uses a surety bond to satisfy the requirements of this
rule shall also establish a standby trust fund not later than the date the
surety bond is obtained. Under the terms of the surety bond, all payments made
thereunder shall be deposited by the surety bond company directly into the
standby trust fund in accordance with instructions from the
director or health commissioner
or director of the licensing authority.
This standby trust fund shall meet the requirements specified in paragraph (B)
of this rule, except as follows:
(a) An
originally signed duplicate of the trust agreement shall be submitted
to the director or health commissioner of the licensing
authority with the surety bond.
(b) Until the standby trust fund is funded,
pursuant to the requirements of this rule, a deposit into the standby trust
fund as specified in paragraph (B) of this rule is not required.
(4) The surety bond shall
guarantee that the owner or operator will do one of the following:
(a) Fund the standby trust fund in an amount
equal to the penal sum of the surety bond before the beginning of post-closure
care.
(b) Fund the standby trust
fund in an amount equal to the penal sum of the surety bond not later than
fifteen days after post-closure care is required in compliance
accordance
with paragraph (A) of rule
3745-400-16
of the Administrative Code.
(c)
Provide alternative financial assurance as specified in this rule and obtain
written approval of the alternative financial assurance from the
director or health commissioner
or director of the licensing authority not
later than ninety days after both the owner or operator and the
director or health commissioner
or director of the licensing authority
receive notice of cancellation of the surety bond from the surety bond
company.
(5) Under the
terms of the surety bond, the surety bond company shall become liable on the
surety bond obligation when the owner or operator fails to perform as
guaranteed by the surety bond.
(6)
Except as provided in paragraph (G) of this rule, the penal sum of the surety
bond shall be in an amount at least equal to the post-closure care cost
estimate determined in accordance with paragraph (A) of this rule.
(7) Under the terms of the surety bond, the
surety bond shall remain in full force and effect unless the surety bond
company sends written notice of cancellation by certified mail or other form of
mail accompanied by a receipt to the owner or operator, the
approved board of
director, and the health,
and the director
commissioner of the licensing
authority . Cancellation shall not occur during the one hundred twenty day
period beginning on the first day that both
the owner or operator,
and the director, and
the health commissioner or director
of the licensing authority have received the notice of cancellation, as
evidenced by the return receipts.
(8) The owner or operator may cancel the
surety bond if the director or health commissioner of
the licensing authority has given prior written approval. The
director or health commissioner
or director of the licensing authority
shall provide such written approval when one of the following occurs:
(a) The owner or operator substitutes
alternative financial assurance for post-closure care as specified in this
rule.
(b) The
director or health commissioner
or director of the licensing authority
notifies the owner or operator that the owner or operator is no longer required
to maintain financial assurance for post-closure care of the construction and
demolition debris facility.
(D) Surety bond guaranteeing performance of
post-closure care.
(1) The owner or operator
may satisfy the requirements of this rule by obtaining a surety bond that
conforms to this rule and by submitting the originally signed surety bond to
the director or health commissioner
or director of the licensing authority. The
surety bond company issuing the surety bond shall at a minimum be among those
listed as acceptable sureties on federal bonds in the most recent
"Circular 570" of
listing of approved sureties as published by the U.S.
department of the treasury.
[Comment: Comment: The text of the
incorporated materials is not included in this rule and are hereby made a part
of this rule. "Circular 570 is published in the "Federal Register" annually on
the first day of July; interim changes in the circular are also published in
the "Federal Register." This United States department of treasury document is
available at http://www.fms.treas.gov.]
(2) The wording of the surety bond shall be
identical to the wording specified in paragraph (C) of rule
3745-400-14
of the Administrative Code.
(3) The
owner or operator who uses a surety bond to satisfy the requirements of this
rule shall also establish a standby trust fund not later than the date the
surety bond is obtained. Under the terms of the surety bond, all payments made
thereunder shall be deposited by the surety bond company directly into the
standby trust fund in accordance with instructions from the
director or health commissioner
or director of the licensing authority.
This standby trust fund shall meet the requirements specified in paragraph (B)
of this rule except as follows:
(a) An
originally signed duplicate of the trust agreement shall be submitted
to the director or health commissioner of the licensing
authority with the surety bond.
(b) Until the standby trust fund is funded,
pursuant to the requirements of this rule, a deposit into the standby trust
fund as specified in paragraph (B) of this rule is not required.
(4) The surety bond shall
guarantee that the owner or operator shall do one of the following:
(a) Perform post-closure care in accordance
with rule
3745-400-16
of the Administrative Code and other requirements of any authorizing
documents.
(b) Provide alternative
financial assurance as specified in this rule, and obtain written approval of
the alternative financial assurance from the director
or health commissioner or director of
the licensing authority not later than ninety days after
both the owner or operator and the
director and health commissioner
or director of the licensing authority
receive notice of cancellation of the surety bond from the surety bond company,
as evidenced by the return receipts.
(5) Under the terms of the surety bond, the
surety bond company shall become liable on the surety bond obligation when the
owner or operator fails to perform as guaranteed by the surety bond. Following
a determination by the approved board
of
director or health
or the director
commissioner of the licensing authority that the owner
or operator has failed to perform post-closure care activities in accordance
with rule
3745-400-16
of the Administrative Code and requirements of any authorizing documents, the
surety bond company shall perform post-closure care activities in accordance
with rule
3745-400-16
of the Administrative Code and requirements of any authorizing documents or
shall deposit the amount of the penal sum of the surety bond into the trust
fund.
(6) The penal sum of the
surety bond shall be in an amount at least equal to the post-closure care cost
estimate determined in accordance with paragraph (A) of this rule.
(7) Under the terms of the surety bond, the
surety bond shall remain in full force and effect unless the surety bond
company sends written notice of cancellation by certified mail or other form of
mail accompanied by a receipt to the owner or operator, the
approved board of
director, and the health,
and the director
commissioner of the licensing
authority . Cancellation shall not occur during the one hundred twenty day
period beginning on the first day that both
the owner or operator,
and the director, and
the health commissioner or director
of the licensing authority have received the notice of cancellation, as
evidenced by the return receipts.
(8) The owner or operator may cancel the
surety bond if the director or health
commissioner or director of the licensing
authority has given prior written approval. The director or health commissioner
or director of the licensing authority
shall provide such written approval when one of the following occurs:
(a) The owner or operator substitutes
alternative financial assurance for post-closure care as specified in this
rule.
(b) The
director or health commissioner
or director of the licensing authority
notifies the owner or operator that the owner or operator is no longer required
to maintain financial assurance for post-closure care of the construction and
demolition debris facility.
(9) The surety bond company shall not be
liable for deficiencies in the completion of post-closure care activities by
the owner or operator after the owner or operator has been notified by the
director or health commissioner
or director of the licensing authority in
accordance with this rule that the owner or operator is no longer required to
maintain financial assurance for post-closure care of the construction and
demolition debris facility.
(E) Post-closure care letter of credit.
(1) The owner or operator may satisfy the
requirements of this rule by obtaining an irrevocable standby letter of credit
that conforms to the requirements of this rule and by having the originally
signed letter of credit delivered to the director
or health commissioner or director of
the licensing authority. The issuing institution shall 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.
(2) The wording of the letter of credit shall
be identical to the wording specified in paragraph (D) of rule
3745-400-14
of the Administrative Code.
(3) An
owner or operator who uses a letter of credit to satisfy the requirements of
this rule shall also establish a standby trust fund not later than the date the
letter of credit is obtained. Under the terms of the letter of credit, all
amounts paid pursuant to a draft by the director
or health commissioner or director of
the licensing authority shall be deposited directly by the issuing institution
into the standby trust fund in accordance with instructions from the
director or health commissioner
or director of the licensing authority. The
standby trust fund shall meet the requirements of the trust fund specified in
paragraph (B) of this rule, except as follows:
(a) An originally signed duplicate of the
trust agreement shall be submitted to the director or
health commissioner of the licensing authority with the letter of
credit.
(b) Until the standby trust
fund is funded, pursuant to the requirements of this rule, a deposit into the
standby trust fund as specified in paragraph (B) of this rule is not
required.
(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 construction and
demolition debris facility and the owner or operator, and the amount of funds assured for post-closure
care of the construction and demolition debris facility 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 shall be automatically
extended for a period of at least one year unless, at least
not later
than one hundred twenty days prior to the current expiration date, the
issuing institution notifies the owner or operator, the
approved board of
director, and the health,
and the director
commissioner of the licensing
authority 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
the owner or operator, licensing authority,
and
the director, and the health commissioner of the licensing
authority have received the notice, as evidenced by the return
receipts.
(6) Except as provided in
paragraph (G) of this rule, the letter of credit shall be in an amount at least
equal to the post-closure care cost estimate determined in accordance with
paragraph (A) of this rule.
(7)
Following a determination by the approved board of
health or the director that the owner or operator has failed to
perform post-closure care activities in accordance with rule
3745-400-16
of the Administrative Code and the requirements
of any authorizing documents, the approved board of
health or director or health commissioner of
the licensing authority may draw on the letter of credit.
(8) If the owner or operator does not
establish alternative financial assurance as specified in this rule and obtain
written approval of such alternative financial assurance from the
director or health commissioner
or director of the licensing authority not
later than ninety days after the owner or operator, licensing authority
the
director, and the health commissioner
, and
director
of the licensing authority have
received notice from the issuing institution that it shall not extend the
letter of credit beyond the current expiration date, the
approved board of
director or health commissioner
or
director
of the licensing authority
shall draw on the letter of credit. The approved board of
director
or health commissioner
or the director
of
the licensing authority may delay the drawing if the issuing institution
grants an extension of the term of the credit. During the final thirty days of
any such extension, the approved board of
director or health commissioner
or the
director
of the licensing authority
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 or health commissioner
or director of the licensing
authority.
(9) The
director or health commissioner
or director of the licensing authority
shall return the original letter of credit to the issuing institution for
termination when one of the following occurs:
(a) The owner or operator substitutes
alternative financial assurance for post-closure care as specified in this
rule.
(b) The
director or health commissioner
or director of the licensing authority
notifies the owner or operator that the owner or operator is no longer required
to maintain financial assurance for post-closure care of the construction and
demolition debris facility.
(F) Post-closure care insurance.
(1) The owner or operator may satisfy the
requirements of this rule by obtaining post-closure care insurance that
conforms to this rule and by submitting an originally signed certificate of
such insurance to the director or health
commissioner or director of the licensing
authority.
(2) The owner or
operator using insurance as a financial assurance mechanism shall submit
documentation to the director or health commissioner of
the licensing authority stating whether the insurer is a subsidiary or
has a corporate, legal, or financial affiliation with the owner or operator. If
the post-closure care insurance is issued by a subsidiary or affiliate, the
owner or operator shall include a detailed written description of the
relationship between the insurer and the owner and
the
or operator.
(3) An insurer issuing an insurance policy
in satisfaction
to
satisfy the requirements of this rule 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. The owner or operator shall submit to the
director or health commissioner of the licensing
authority the following information regarding the insurer's qualifications:
(a) The most recent A.M. Best rating of the
insurer.
(b) Documentation
demonstrating that the insurer is domiciled in the United States.
(c) The most recent report on examination
from the insurance department from the insurer's state of domicile.
(d) Documentation demonstrating that the
insurer has capital and surplus of at least one hundred million
dollars.
(e) Documentation
demonstrating that the insurer received an unqualified opinion of the insurer's
annual financial statements from an independent certified public
accountant.
(4) The
director or health commissioner of the licensing
authority may disallow use of the insurer by the owner or operator on the basis
of one or more of the following:
(a) The A.M.
Best rating is less than A-.
(b)
The report on examination does not demonstrate that the status of the insurer
is satisfactory.
(c) The opinion
expressed by the independent certified public accountant in the report on
examination of the insurer's financial statements.
(5) The wording of the certificate of
insurance shall be identical to the wording specified in paragraph (E) of rule
3745-400-14
of the Administrative Code.
(6)
Except as provided in paragraph (G) of this rule, the post-closure care
insurance policy shall be issued for a face amount at least equal to the amount
of the post-closure care cost estimate determined in accordance with paragraph
(A) of this rule. The face amount shall be the total amount the insurer is
obligated to pay under the policy. Actual payments by the insurer shall not
change the face amount, but the insurer's future liability shall be lowered by
the amount of the payments.
(7) The
post-closure care insurance policy shall guarantee that funds shall be
available to conduct post-closure care of the construction and demolition
debris facility whenever post-closure care begins. The policy shall also
guarantee that once post-closure care of the construction and demolition debris
facility begins, the insurer shall be responsible for paying out funds, up to
an amount equal to the face amount of the policy, upon the direction of the
director or health commissioner
or director of the licensing authority, to
such party or parties as the director or health
commissioner or director of the licensing
authority specifies.
(8) After
beginning post-closure care, the owner or operator, or any other person
authorized to perform post-closure care activities, may request reimbursement
for post-closure care expenditures. The director
or health commissioner or director of
the licensing authority shall calculate in accordance with paragraph (A) of
this rule the amount to be reimbursed and shall instruct the insurer, in
writing, to make such reimbursement.
(9) The owner or operator shall maintain the
policy in full force and effect until the director
or health commissioner or director of
the licensing authority consents to termination of the policy by the owner or
operator as specified in paragraph (F) (13) of this rule. Failure to pay the
premium, without substitution of alternative financial assurance as specified
in this rule, constitutes a violation of these rules, warranting such remedy as
the director or health commissioner
or director of the licensing authority
deems necessary. Such violation shall be deemed to begin upon receipt by the
director or health commissioner
or director of the licensing authority of a
notice of future cancellation, termination, or failure to renew due to
nonpayment of the premium, rather than upon the date of expiration.
(10) Each policy shall contain a provision
allowing assignment of the policy to a successor owner or operator. Such
assignment may be conditional upon consent of the insurer, provided such
consent is not unreasonably refused.
(11) The policy shall provide that the
insurer may not cancel, terminate, or fail to renew the policy except for
failure to pay the premium. The automatic renewal of the policy shall at a
minimum provide the insured with the option of renewal at the face amount of
the expiring policy. If there is a failure to pay the premium, the insurer may
elect to cancel, terminate, or fail to renew the policy by sending written
notice by certified mail or other form of mail accompanied by a receipt to the
owner or operator, the director, and the health
commissioner, and director of the licensing
authority not later than one hundred twenty days prior to the date of
cancellation, termination, or failure to renew. Cancellation, termination, or
failure to renew shall not occur during the one hundred twenty day period
beginning on the first day that both the
owner or operator,
and the director, and
the health commissioner or director
of the licensing authority have received the notice, as evidenced by the return
receipts.
(12) If the
director or health commissioner
or director of the licensing authority
disallows use of the insurer, the owner or operator shall provide alternative
financial assurance as specified in this rule not later than thirty days after
notification of the disallowance of the insurer.
(13) The director
or health commissioner or director of
the licensing authority shall give written approval that the owner or operator
may terminate the insurance policy when one of the following occurs:
(a) The owner or operator substitutes
alternative financial assurance for post-closure care as specified in this
rule.
(b) The
director or health commissioner
or director of the licensing authority
notifies the owner or operator that the owner or operator is no longer required
to maintain financial assurance for post-closure care of the construction and
demolition debris facility.
(G) Use of multiple financial assurance
mechanisms. The owner or operator may satisfy the requirements of this rule by
establishing more than one financial assurance mechanism for the construction
and demolition debris facility. The mechanisms are limited to trust funds,
surety bonds guaranteeing payment into a post-closure care trust fund, letters
of credit, and insurance. The mechanisms shall conform to paragraphs (B), (C),
(E), and (F) of this rule, except that it is the combination of mechanisms,
rather than each single mechanism, that shall provide financial assurance for
an amount at least equal to the post-closure care cost estimate calculated in
accordance with paragraph (A) of this rule. If an
the owner or
operator uses a trust fund in combination with a surety bond or a letter of
credit, the owner or operator may use the trust fund as the standby trust fund
for the other mechanisms. A single standby trust fund may be established for
two or more mechanisms. The director or health
commissioner of the licensing authority may invoke use of any or all of
the mechanisms in accordance with paragraphs (B), (C), (E), and (F) of this
rule to provide for post-closure care of the construction and demolition debris
facility.
Notes
Promulgated Under: 119.03
Statutory Authority: 3714.02
Rule Amplifies: 3714.02
Prior Effective Dates: 08/01/2012
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