No. 30910 (Amendment): R315-15-12. Reclamation Surety

DAR File No.: 30910
Filed: 01/15/2008, 10:03
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this amendment is to provide clarity and consistency with other division programs regarding financial assurance.

Summary of the rule or change:

This amendment defines "financial assurance mechanism" to mean "reclamation surety" as used in the Used Oil Management Act to provide consistency with other division programs. It requires 120-day notification for termination of financial mechanism and when cleanup and closure cost estimates need to be recalculated. It provides details for incremental funding for trust funds. It changes terminology for surety bonds. It provides for establishment of a standby trust agreement with letters of credit. It clarifies insurance requirements. It clarifies responsibilities of the Executive Secretary and the process and requirements for facilities filing bankruptcy.

State statutory or constitutional authorization for this rule:

Section 19-6-704

Anticipated cost or savings to:

the state budget:

The requirements that affect state agencies are not changed and the oversight and enforcement of the rule will not change. Currently, there are no state governmental entities that are operating a permitted used oil facility so there is no anticipated effect on the state budget.

local governments:

There are currently no local governments that operate a permitted used oil facility so there is no anticipated effect on local government budget. Also, the proposed requirements do not change the costs of oversight or enforcement of the used oil rules by local governments.

small businesses and persons other than businesses:

Minimal one-time compliance costs are expected for affected persons to review the proposed rule clarifications. This is anticipated to be less than $100. No additional compliance costs for affected persons are expected unless a letter of credit is selected as the financial assurance mechanism, then a standby trust agreement will be required. This may entail increased annual administrative fees from the financial institution for establishing and maintaining the standby trust based on the amount of the financial assurance required and the length of time the trust must remain active. This increased cost may vary between financial institutions.

Compliance costs for affected persons:

No additional compliance costs for affected persons is expected unless a letter of credit is selected as the financial assurance mechanism, then a standby trust agreement will be required. This may entail increased annual administrative fees from the financial institution for establishing and maintaining the standby trust based on the amount of the financial assurance required and the length of time the trust must remain active. This increased cost may vary between financial institutions.

Comments by the department head on the fiscal impact the rule may have on businesses:

A person that owns or operates a used oil facility may experience an increase in administrative fees from the financial institution if they choose a letter of credit with a standby trust agreement. There should be no other anticipated costs. Richard W. Sprott, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Environmental Quality
Solid and Hazardous Waste
288 N 1460 W
SALT LAKE CITY UT 84116-3231

Direct questions regarding this rule to:

Jim Smith at the above address, by phone at 801-538-7061, by FAX at 801-538-6715, or by Internet E-mail at [e-mail]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

03/03/2008

This rule may become effective on:

03/10/2008

Authorized by:

Dennis Downs, Director

RULE TEXT

R315. Environmental Quality, Solid and Hazardous Waste.

R315-15. Standards for the Management of Used Oil.

R315-15-12. [Reclamation Surety]Financial Assurance.

12.1 DEFINITIONS

For the purposes of Section R315-15-12, the following definitions apply:

(a) "Existing used oil facility" means any used oil transfer facility, off-specification burner, or used oil processing/re-refining facility in operation on July 1, 1993 under a used oil operating permit issued by the Division of Oil, Gas and Mining and in effect on or before June 30, 1993. An existing used oil facility is also required to obtain a permit from the Executive Secretary in accordance with Section R315-15-13.

(b) "New used oil facility" means any used oil transfer, off-specification burner, or used oil processing/re-refining facility that was not in operation as a used oil facility on July 1, 1993, and received an operating permit in accordance with Section R315-15-13 from the Executive Secretary after July 1, 1993.

(c) "Financial assurance mechanism" means "reclamation surety" as used in Sections 19-6-709 and 19-6-710 of the Used Oil Management Act.

12.2 APPLICABILITY

(a) The owner or operator of an existing or new used oil facility requiring a permit under Section R315-15-13 shall establish a [reclamation surety]financial assurance mechanism as evidence of financial responsibility under Section R315-15-10 sufficient to assure [reclamation]cleanup and closure of the facility in conformity with Subsection[Sections R315-15-12.4 and] R315-15-11.1 with one or more of the [reclamation surety]financial assurance mechanisms of [Section]Subsection R315-15-12.3 prior to receiving a permit from the Executive Secretary.

(b) Any increase in capacity to store or process used oil at a used oil facility permitted by the Executive Secretary, above the storage or processing capacity identified in the permit application approved by the Executive Secretary, shall require the owner or operator of the permitted used oil facility to increase the amount or face value of the [reclamation surety]financial assurance mechanism to meet the additional capacity. The additional amount or increase in face value of [reclamation surety]financial assurance mechanism shall be in place and effective before operation of the increased storage or processing capacity and shall meet the requirements of [Sections]Subsections R315-15-12.3 and R315-15-12.4.

(c) DIYer used oil collection centers, generator used oil collection centers, and used oil aggregation points are not required to post a [reclamation surety]financial assurance mechanism[ under this rule], but are subject to the [reclamation]cleanup and closure requirements of Sections R315-15-10 and R315-15-11[.1] unless they have received a waiver in writing from the Executive Secretary under Subsection R315-15-10(e).

12.3 [RECLAMATION SURETY]FINANCIAL ASSURANCE MECHANISMS

(a) Any [reclamation surety]financial assurance mechanism [in place]used to show financial responsibility under Sections R315-15-10 and 11 for an existing or new used oil facility shall:

(1) be legally valid, binding, and enforceable under [state]Utah and federal law;

(2) be approved by the Executive Secretary;[ and]

(3) ensure that funds will be available in a timely fashion [when needed ]for:

(i) completing all [reclamation]cleanup and closure activities indicated in the closure plan of the permit approved by the [Board, in coordination with the Department.]Executive Secretary; and

(ii) environmental pollution legal liability for third party damages for bodily injury and property damage resulting from a sudden or non-sudden accidental release of used oil from or arising from permitted operations; and

(4) require a written notice sent by certified mail to the Executive Secretary 120 days prior to cancellation or termination of the financial mechanism.

(5) be updated each year to adjust for inflation, using either:

(i) the gross domestic product implicit price deflator ratio of the increase of the current calendar year to the past calendar year or

(ii) a new estimated cleanup and closure cost estimate recalculated to account for all changes in scope and nature of the permitted operation.

(b) The owner or operator of an existing or new used oil facility shall establish a [reclamation surety]financial assurance mechanism for cleanup and closure by one of the following mechanisms and shall submit a signed original or an original signed duplicate[copy] of the [surety]financial assurance mechanism to the Executive Secretary for approval as part of the permit application[.]:

(1) Trust Fund[ for Reclamation].

(i) The trustee shall be an entity which has the authority to act as a trustee and whose operations are regulated and examined by a federal or state agency.

(ii) A signed original or an original signed duplicate[copy] of the trust agreement and accompanied by a formal certification of acknowledgement shall be submitted to the Executive Secretary.

(iii) For trust funds not fully funded at the time of permit approval by the Executive Secretary, incremental payments into the trust fund shall be made annually by the owner or operator to [be ]fully [funded]fund the trust within five years of [permit approval by ]the Executive [Secretary. ]Secretary's approval of the permit as follows:

(A) initial payment value shall be the initial cleanup and closure cost estimate value divided by the pay-in period, not to exceed five years, and

(B) next payment value shall be the difference of the approved current cleanup and closure cost estimate less the trust fund value, all divided by the remaining number of years in the pay-in period, and

(C) subsequent next payments shall be made into the trust fund annually on or before the anniversary date of the initial payment made into the trust fund, and

(D) no latter than 30 days after the last incremental payment to fully fund the trust, the permittee shall provide proof to the Executive Secretary in writing that the trust fund has been fully funded according the current permitted cleanup and closure cost estimate.

(iv) For a new used oil facility, the [initial ]payment into the trust fund shall be made before the initial receipt of used oil.

(v) For an existing used oil facility, the [initial ]payment into the trust fund shall be made on or before April 1, 1994.

(vi) The owner or operator, or other person authorized to conduct [reclamation]cleanup and closure activities may request reimbursement from the trustee for [reclamation activities]cleanup and closure completed when approved in writing by the Executive Secretary.

(vii) The request for reimbursement may be granted by the trustee as follows:

(A) only if sufficient funds exist to cover the reimbursement request; and

(B) if justification and documentation of the [reclamation]cleanup and closure expenditures are submitted to and approved by the [Board, in coordination with the Department,]Executive Secretary in writing prior to the trustee granting reimbursement.

(viii) The Executive Secretary may cancel the incremental trust funding option at any time and require the permittee to provide either a fully funded trust or other cleanup and closure financial mechanism as provided in Section R315-15-12 under the following conditions:

(A) upon the insolvency of the permittee, or

(B) when a violation of Sections R315-15-10, 11 or 12 has been determined.

(ix) The trust agreement shall follow the wording provided by the Executive Secretary found in Subsection R315-15-17.2 .

(2) Surety Bond Guaranteeing Payment[ or Performance].

(i) The bond shall be effective as follows:

(A) For a new used oil facility, before the initial receipt of used oil; or

(B) For an existing used oil facility, on or before April 1, 1994.

(ii) The surety company issuing the bond shall, at a minimum, be among those listed as acceptable sureties on Federal bonds in Circular 570 of the U.S. Department of the Treasury and the owner or operator shall notify the Executive Secretary that a copy of the bond has been placed in the operating record.

(iii) The penal sum of the bond shall be in an amount at least equal to the [reclamation]cleanup and closure cost estimate developed under Subsection R315-15-11.2[12.4(c)].

(iv) 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.

(v) The owner or operator shall establish a standby trust [fund]agreement at the time the bond is established.

(A) The standby trust [fund]agreement shall meet the requirements of Subsection R315-15-12.3(b)(1), except for Subsections R315-15-12.3(b)(1)(iii), (viii), and (ix) and the standby trust agreement shall follow the wording provided by the Executive Secretary found in Subsection R315-15-17.14.

(B) Payment made under the terms of the bond shall be deposited by the surety directly into the standby trust [fund]agreement and payments from the standby trust fund shall be approved by the trustee with the written concurrence of the [Board, in coordination with the Department]Executive Secretary.

(vi) The surety bond shall automatically be renewed on the expiration date unless cancelled by the surety company 120 days in advance by sending both the bond applicant and the Executive Secretary a written cancellation notice by certified mail.

(vii) The bond applicant may terminate the bond for nonpayment of fee by providing written notice, by certified mail, to the Executive Secretary 120 days prior to termination.

(viii) Any change to the form or content of the surety bond shall be submitted to the Executive Secretary for approval and acceptance.

(ix) The surety bond shall follow the language provided by the Executive Secretary found in Subsection R315-15-17.3.

(3) [Insurance.

(i) The insurance shall be effective as follows:

(A) For a new used oil facility before the initial receipt of used oil; or

(B) For an existing used oil facility on or before April 1, 1994.

(ii) 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.

(iii) The insurance policy shall guarantee that funds will be available to perform the reclamation activities approved by the Board, in coordination with the Department.

(iv) The policy shall guarantee that the insurer will be responsible for the paying out of funds to the owner or operator or other person authorized to conduct the reclamation activities, as approved by the Board, in coordination with the Department, up to an amount equal to the face amount of the policy. Payment of any funds by the insurer shall be made with the concurrence of the Board, in coordination with the Department.

(v) The insurance policy shall be issued for a face amount at least equal to the reclamation cost estimate developed under Subsection R315-15-12.4(c).

(vi) An owner or operator, or other authorized person may receive reimbursements for reclamation activities completed if:

(A) the value of the policy is sufficient to cover the reimbursement request; and

(B) justification and documentation of the reclamation expenditures are submitted to and approved by the Board, in coordination with the Department, prior to receiving reimbursement.

(vii) Each policy shall contain a provision allowing assignment of the policy to a successor owner or operator.

(viii) The insurance policy shall provide that the insurer may not cancel, terminate, or fail to renew the policy except for failure to pay the premium. If there is a failure to pay the premium, the insurer may cancel the policy by sending notice of cancellation by certified mail to the owner or operator and the Executive Secretary 120 days in advance of cancellation. If the insurer cancels the policy, the owner or operator shall obtain an alternate reclamation surety meeting the requirements of this subsection within 60 days of cancellation of the policy.

(4)] Letter of Credit[ for Reclamation.]

(i) The letter of credit shall be effective as follows:

(A) For a new used oil facility, before the initial receipt of used oil; or

(B) For an existing used oil facility, on or before April 1, 1994.

(ii) [An owner or operator of a used oil facility subject to the reclamation surety requirements of Section R315-15-12 may obtain an irrevocable standby letter of credit for reclamation of the used oil facility and shall submit a copy to the Executive Secretary.

(iii) ]The financial institution issuing the letter of credit 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 state or federal agency.

([iv]iii) The letter of credit shall be issued in an amount at least equal to the [reclamation]cleanup and closure cost estimate developed under Subsection R315-15-11.2[12.4(c)].

(iv) The owner or operator shall establish a standby trust agreement at the time the letter of credit is established.

(A) The standby trust agreement shall meet the requirements of Subsection R315-15-12.3(b)(1), except for Subsections R315-15-12.3(b)(1)(iii), (viii), and (ix) and the surety bond shall follow the language incorporated by reference in Subsection R315-15-17.14.

(B) Payment made under the terms of the letter of credit shall be deposited by the surety directly into the standby trust and payments from the standby trust fund shall be approved by the trustee with the written concurrence of the Executive Secretary.

(vi) The letter of credit shall follow the wording provided by the Executive Secretary found in Subsection R315-15-17.4.

(4) Insurance.

(i) The insurance shall be effective as follows:

(A) For a new used oil facility before the initial receipt of used oil; or

(B) For an existing used oil facility on or before April 1, 1994.

(C) Insurance coverage period shall be the earliest date of permit issuance or a retroactive date established by the earliest period of coverage for any financial assurance mechanism.

(ii) 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.

(iii) The insurance policy shall guarantee that funds will be available to perform the cleanup and closure activities approved by the Executive Secretary.

(iv) The policy shall guarantee that the insurer will be responsible for the paying out of funds to the owner or operator or person authorized to conduct the cleanup and closure activities, as approved by the Executive Secretary, up to an amount equal to the face amount of the policy. Payment of any funds by the insurer shall be made with the written concurrence of the Executive Secretary.

(A) The Insurer shall establish at a standby trust agreement for only the benefit of the Executive Secretary when the Executive Secretary notifies the Insurer that the Executive Secretary is making a claim, as provided for in Rule R315-15, for cleanup and closure of a permitted used oil transfer, processor, re-refiner, or off-specification burner facility.

(B) The Insurer shall place the face value of the applicable coverage in the trust within thirty (30) days of establishing the standby trust agreement.

(C) The standby trust agreement shall meet the requirements of Subsection R315-15-12.3(b)(1), except for Subsections R315-15-12.3(b)(1)(iii), (iv), (v), (viii), and (xi), and the standby trust agreement shall follow the language provided by the Executive Secretary incorporated by reference in Subsection R315-15-17.14.

(v) The insurance policy shall be issued for a face amount at least equal to the cleanup and closure cost estimate developed under Subsection R315-15-11.2.

(vi) An owner or operator, or other authorized person may receive reimbursements for cleanup and closure activities completed if:

(A) the value of the policy is sufficient to cover the reimbursement request; and

(B) justification and documentation of the cleanup and closure expenditures are submitted to and approved by the Executive Secretary, prior to receiving reimbursement.

(vii) Each policy shall contain a provision allowing assignment of the policy to a successor owner or operator.

(viii) The insurance policy shall provide that the insurer may not cancel, terminate, or fail to renew the policy except for failure to pay the premium. If there is a failure to pay the premium, the insurer may cancel the policy by sending notice of cancellation by certified mail to the owner or operator and the Executive Secretary 120 days in advance of cancellation. If the insurer cancels the policy, the owner or operator shall obtain an alternate financial assurance mechanism meeting the requirements for financial responsibility under Section R315-15-10 and of this subsection within 60 days of notice of cancellation of the policy.

(ix) The policy coverage amount for cleanup and closure is exclusive of legal and defense costs.

(x) Bankruptcy or insolvency of the Insured shall not relieve the Insurer of its obligations under the policy.

(xi) The Insurer as first-payer is liable for the payment of amounts within any deductible, retention, self-insured retention (SIR), or reserve applicable to the policy, with a right of reimbursement by the Insured for any such payment made by the Insurer. This provision does not apply with respect to that amount of any deductible, retention, self-insured retention, or reserve for which coverage is otherwise demonstrated as specified in Section R315-15-12.

(xii) Whenever requested by the Executive Secretary, the Insurer agrees to furnish to the Executive Secretary a signed duplicate original of the policy and all endorsements.

(xiii) Cancellation of the policy, whether by the Insurer, the Insured, a parent corporation providing insurance coverage for its subsidiary, or by a firm having an insurable interest in and obtaining liability insurance on behalf of the owner or operator of the used oil management facility, will be effective only upon written notice and only after the expiration of 120 days after a copy of such written notice is received by the Executive Secretary for those facilities which are located in Utah.

(xiv) Any other termination of the policy will be effective only upon written notice and only after the expiration of 120 days after a copy of such written notice is received by the Executive Secretary for those facilities which are located in Utah.

(xv) All policy provisions related to Rule R315-15 shall be construed pursuant to the laws of the Sate of Utah. In the event of the failure of the Insurer to pay any amount claimed to be due hereunder, the Insurer and the Insured will submit to the jurisdiction of the appropriate court of the State of Utah, and will comply with all the requirements necessary to give such court jurisdiction. All matters arising hereunder, including questions related to the interpretation, performance and enforcement of this policy, shall be determined in accordance with the law and practice of the State of Utah (notwithstanding Utah conflicts of law rules).

(xvi) Endorsement(s) added to, or removed from the policy that have the effect of affecting the environmental pollution liability language, directly or indirectly, shall be approved in writing by the Executive Secretary before said endorsement(s) become effective.

(xvii) Neither the Insurer or Insured shall contest the state of Utah's use of the drafting history of the insurance policy in a judicial interpretation of the policy or endorsement(s) to said policy.

(xviii) The Insurer shall establish a standby trust fund for the benefit of the Executive Secretary at the time the Executive Secretary first makes a claim against the insurance policy.

(A) The standby trust fund shall meet the requirements of Subsection R315-15-12.3(b)(1), except for item Subsections R315-15-12.3(b)(1)(iii), (iv), (v), (viii), and (ix) and the standby trust agreement shall follow the wording found in Subsection R315-15-17.14.

(B) Payment made under the terms of the insurance policy shall be deposited by the Insurer as grantor directly into the standby trust fund and payments from the trust fund shall be approved by the trustee with the written concurrence of the Executive Secretary.

(5) [The owner or operator of an existing or new used oil facility may establish reclamation surety by other mechanisms as approved by the Executive Secretary.

(6) ]The owner or operator of an existing or new used oil facility may establish [reclamation surety]a financial assurance mechanism by a combination of the above mechanisms as approved by the Executive Secretary.

(c) [In approving the reclamation surety, the Executive Secretary will take into account existing financial mechanisms the used oil facility may already have in place under Sections R315-7-15 or R315-8-8.]The owner or operator of an existing or new used oil facility or operation shall establish a financial assurance mechanism for bodily injury and property damage to third parties resulting from sudden and/or non-sudden accidental releases of used oil from a permitted used oil facility or operation as follows:

(1) An owner or operator that is a used oil processor, transfer facility, or off-specification burner, or a group of such facilities regulated under Rule R315-15 shall demonstrate financial responsibility for bodily injury and property damage to third parties caused by sudden and/or non-sudden accidental release of used oil arising from operations or operations of the facility or group of facilities shall have and maintain liability coverage in the amount as specified in Subsection R315-15-10(b). This liability coverage shall be demonstrated by one or more of the financial mechanisms in Subsection R315-15-12.3(c)(3).

(2) An owner or operator that is a used oil transporter regulated under Rule R315-15, must demonstrate financial responsibility for bodily injury and property damage to third-parties resulting from sudden release of used oil arising from transit, loading and unloading, to or from facilities within Utah. The owner or operator shall maintain liability coverage for sudden accidental occurrences in the amount specified in Subsection R315-15-10(c). This liability coverage shall be demonstrated by one or more of the financial mechanisms in Subsection R315-15-12.3(c)(3).

(3) The owner or operator using insurance to demonstrate compliance with Subsection R315-15-10(b) or (c) shall use one or more of the following financial assurance mechanisms:

(i) Insurance. The owner or operator shall follow the wording provided by the Executive Secretary found in Subsections R315-15-17.5 through R315-15-17.9, as may be applicable.

(ii) Trust. The owner or operator shall follow the wording provided by the Executive Secretary found in Subsection R315-15-17.12.

(iii) Surety Bond. The owner or operator shall follow the wording provided by the Executive Secretary found in Subsection R315-15-17.11.

(iv) Letter of Credit. The owner or operator shall follow the wording provided by the Executive Secretary found in Subsection R315-15-17.10.

(d) [The owner or operator of a used oil transfer, processing or rerefining facility may terminate or cancel an active reclamation surety mechanism under the following conditions:

(1) if the owner or operator establishes alternate reclamation surety as approved by the Executive Secretary; or

(2) if the owner or operator is released from the reclamation surety requirements by the Executive Secretary.]Adjustments by the Executive Secretary. If the Executive Secretary determines that the levels of financial responsibility required by Subsection R315-15-10(b) or (c), as applicable are not consistent with the degree and duration of risk associated with used oil operations or facilities, the Executive Secretary may adjust the level of financial responsibility required under Subsection R315-15-10(b) or (c), as applicable, as may be necessary to protect human health and the environment. This adjusted level will be based on the Executive Secretary's assessment of the degree and duration of risk associated with the used oil operations or facilities. In addition, if the Executive Secretary determines that there is a significant risk to human health and the environment from non-sudden release of used oil resulting from the used oil operations or facilities, the Executive Secretary may require that an owner or operator of the used oil facility or operation comply with Subsection R315-15-10(b) and (c), as applicable. An owner or operator must furnish, within a reasonable time to the Executive Secretary when requested in writing, any information which the Executive Secretary requests to determine whether cause exists for an adjustment to the financial responsibility under Subsection R315-15-10(b) or (c) with the used oil operations or facilities. Failure to provide the requested information as and when requested under this section may result in the Executive Secretary revoking the owner's or operator's used oil permit(s). Any adjustment of the level or type of coverage for a facility that has a permit will be treated as a permit modification.

(e) When the owner or operator of a permitted used oil facility or operation believes that its responsibility for cleanup and closure or for environmental pollution liability as described in Subsection R315-15-10(d) has changed, it may submit a written request to the Executive Secretary to modify its permit to reflect the changed responsibility.

(f) The Executive Secretary may release the requirement for cleanup and closure financial assurance after the owner or operator has clean-closed the facility according to Section R315-15-11.

(g) The owner or operator of a permitted used oil facility or operation may request the Executive Secretary to modify its permit to change its financial assurance mechanism or mechanisms as described in Section R315-15-12.

(h) The Executive Secretary may modify the permit to change financial assurance mechanism or mechanisms after the owner or operator has established a replacement financial assurance mechanism or mechanisms acceptable to the Executive Secretary.

(i) Incapacity of owners or operators, guarantor, or financial institution. An owner or operator of a permitted used oil facility or operation shall notify the Executive Secretary by certified mail within 10 days of the commencement of a bankruptcy proceeding naming the owner or operator as debtor.

(1) An owner or operator who fulfills the financial responsibility requirements by obtaining a trust fund, surety bond, letter of credit, or insurance policy will be considered to be without the required financial responsibility or liability coverage in the event of:

(i) bankruptcy of the trustee or issuing institution; or

(ii) a suspension or revocation of the authority of the trustee institution to act as trustee; or

(iii) a suspension or revocation of the authority of the institution to issue a surety bond, a letter of credit, or an insurance policy.

(2) The owner or operator of a permitted used oil facility or operation must establish other financial responsibility or liability coverage within 60 days after such an event.

12.4 [RECLAMATION SURETY ]ANNUAL UPDATE [AND]OF CLOSURE COST ESTIMATE AND FINANCIAL ASSURANCE MECHANISM

(a) The [reclamation surety]financial responsibility information required by S[ubs]ections R315-15-[12.4(c) shall be]10, 11, and 12 and submitted to the Executive Secretary with the initial permit application for a [new ]used oil facility or [by April 1, 1994 for an existing used oil facility]operation, or information provided as part of subsequent modifications to the permit made thereafter, shall be updated annually.

(b) The [reclamation surety shall be updated each year to adjust for inflation or facility modification that would affect the amount of the reclamation surety required. The updated reclamation surety information shall be submitted to the Executive Secretary by March 1 of each year beginning March 1, 1995.]following annual updated financial responsibility information for the previous calendar year shall be submitted to the Executive Secretary by March 1 of each year for each permitted facility or operation:

[(c)](1) The [reclamation]cleanup and closure cost estimate shall be based on a third party performing [reclamation]cleanup and closure of the facility to a post-operational land use in accordance with [Section]Subsection R315-15-11.1[ and at a minimum shall contain the following elements:

(1) the estimated cost of removing from the facility the permitted maximum used oil storage capacity of the facility;

(2) the estimated cost of removing from the facility and decontaminating all used oil residues in containers, tanks, containment systems, soils, structures, and equipment; and

(3) a written description and an itemized estimated cost of the proposed methods for removing used oil and used oil residues from the facility and decontaminating used oil residues at the facility].

(2) The financial assurance mechanism shall be adjusted to reflect the new cleanup and closure cost estimate.

(3) The type of financial assurance mechanism, its current face value, and corresponding financial institution's instrument control number shall be provided.

(4) The type of environmental pollution liability financial responsibility for third-party damage mechanism shall be provided, including:

(i) policy number or other mechanism control number,

(ii) effective date of policy or other mechanism, and

(iii) coverage types and amounts.

(5) The type of general liability insurance information shall be provided, including:

(i) policy number,

(ii) date of policy, effective date of policy, retroactive date of coverage, if applicable, and

(iii) coverage types and amounts.

(c) Other type of information deemed necessary to evaluate compliance with a permitted used oil facilities or operations and Sections R315-15-10, 11, and 12, shall be provided upon request by the Executive Secretary.

 

KEY: hazardous waste, used oil[*]

Date of Enactment or Last Substantive Amendment: [June 17, 1998]2008

Notice of Continuation: October 4, 2007

Authorizing, and Implemented or Interpreted Law: 19-6-704