Utah Admin. Code R313-25-31 - Funding for Disposal Site Closure and Stabilization
(1) The applicant shall provide assurances
prior to the commencement of operations, and a licensee shall provide
assurances annually, that sufficient funds are or will be available to carry
out land disposal facility closure and stabilization, including:
(a) decontamination or dismantlement of land
disposal facility structures, and
(b) closure and stabilization of the disposal
site so that following transfer of the disposal site to the site owner, the
need for ongoing active maintenance is eliminated to the extent practicable and
only minor custodial care, surveillance, and monitoring are required. These
assurances shall be based on Director approved cost estimates reflecting the
Director approved plan for disposal site closure and stabilization. The
applicant's or the licensee's cost estimates shall take into account total
costs that would be incurred if an independent contractor were hired to perform
the closure and stabilization work, in accordance with R313-25-31.5.
(2) In order to avoid unnecessary
duplication and expense, the Director will accept financial sureties that have
been consolidated with earmarked financial or surety arrangements established
to meet requirements of Federal or other State agencies or local governmental
bodies for decontamination, closure, and stabilization as to any unlicensed
facility. The Director will accept these arrangements only if they are
considered adequate to satisfy the requirements of Section R313-25-31 and if
they clearly identify the portion of the surety which covers the closure of
such unlicensed facility and is committed for use in accomplishing these
activities.
(3) The licensee's
financial or surety arrangement shall be submitted annually for review by the
Director to assure that sufficient funds will be available for completion of
the closure plan.
(4) The amount of
the licensee's financial or surety arrangement shall change in accordance with
changes in the predicted costs of closure and stabilization. Factors affecting
closure and stabilization cost estimates include inflation, increases in the
amount of disturbed land, changes in engineering plans, closure and
stabilization that have already been accomplished, and other conditions
affecting costs. The financial or surety arrangement shall be sufficient at all
times to cover the costs of closure and stabilization of the disposal units
that are expected to be used before the next license renewal.
(5) The financial or surety arrangement shall
be written for a specified period of time and shall be automatically renewed
unless the person who issues the surety notifies the Director; the beneficiary,
the site owner; and the principal, the licensee, not less than 90 days prior to
the renewal date of its intention not to renew. In such a situation, the
licensee shall submit a replacement surety within 30 days after notification of
cancellation. If the licensee fails to provide a replacement surety acceptable
to the Director, the beneficiary may collect on the original surety.
(6) Proof of forfeiture shall not be
necessary to collect the surety so that, in the event that the licensee could
not provide an acceptable replacement surety within the required time, the
surety shall be automatically collected prior to its expiration. The conditions
described above shall be clearly stated on surety instruments.
(7) Financial or surety arrangements
generally acceptable to the Director include surety bonds, cash deposits,
certificates of deposit, deposits of government securities, escrow accounts,
irrevocable letters or lines of credit, trust funds, and combinations of the
above or other types of arrangements as may be approved by the Director.
Self-insurance, or an arrangement which essentially constitutes self-insurance,
will not satisfy the surety requirement for private sector
applicants.
(8) The licensee's
financial or surety arrangement shall remain in effect until the closure and
stabilization program has been completed and approved by the Director, and the
license has been transferred to the site owner.
(9) The financial assurance shall be based on
an annual estimate and shall include closure and post-closure costs in all
areas subject to the licensed or permitted portions of the facility;
(10) Financial assurance for an unlicensed
facility that supports the operation of a licensed or permitted facility shall
include the estimated cost of:
(a) the
removal of structures;
(b) the
testing of structures, roads, and property to ensure no radiological
contamination has occurred outside of the licensed area; and
(c) stabilization and water infiltration
control;
(11) Financial
assurance cost estimates for a single approved waste disposal unit for which
the volume of waste already placed and proposed to be placed in the unit within
the surety period is less than the full waste capacity of the unit shall
reflect the closure and post-closure costs for a waste disposal unit smaller
than the approved waste disposal unit, if the unit could be reduced in size,
meet closure requirements, and reduce closure costs;
(12) Financial assurance cost estimates for
two approved adjacent waste disposal units that have been approved to be
combined into a single unit and for which the combined volume of waste already
placed and proposed to be placed in the units within the surety period is less
than the combined waste capacity for the two separate units shall reflect
either two separate waste disposal units or a single combined unit, whichever
has the lowest closure and post-closure costs;
(13) The licensee or permittee shall annually
propose closure and post-closure costs upon which financial assurance amounts
are based, including costs of potential remediation at the licensed or
permitted facility and, notwithstanding the obligations described in Subsection
R313-25-31(10), any unlicensed facility;
(14) To provide the information in Subsection
R313-25-31(13), the licensee or permittee shall provide:
(a) a proposed annual cost estimate using the
current edition of RS Means Facilities Construction Cost Data or using a
process, including an indirect cost multiplier, previously agreed to between
the licensee or permittee and the Director; or
(b)
(i) for
an initial financial assurance determination and for each financial assurance
determination every five years thereafter, a proposed competitive site-specific
estimate for closure and post-closure care of the facility at least once every
five years; and
(ii) for each year
between a financial assurance determination described in Subsection
R313-25-31(14)(b)(i), a proposed financial assurance estimate that accounts for
current site conditions and that includes an annual inflation adjustment to the
financial assurance determination using the Gross Domestic Product Implicit
Price Deflator of the Bureau of Economic Analysis, United States Department of
Commerce, calculated by dividing the latest annual deflator by the deflator for
the previous year; and
(15) The Director shall:
(a) annually review the licensee's or
permittee's proposed closure and post closure estimate; and
(b) approve the estimate if the Director
determines that the estimate would be sufficient to provide for closure and
post-closure costs.
Notes
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