Ala. Admin. Code r. 335-4-8-.02

Current through Register Vol. 43, No. 1, October 31, 2024

Section 335-4-8-.02 - Transporters

(1) Any person proposing to transport scrap tires or processed tire material shall submit with its permit application documentation of financial assurance using one of the following:

(a) A surety bond in which the applicant is the principal obligor and ADEM is the obligee.

1. 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 or be a corporate surety licensed to do business in the State of Alabama.

2. The amount of the surety bond for environmental cleanup and restoration resulting from a transportation-related accident or event shall be established as follows:

(i) Transporters proposing to transport tire materials shall be required to provide a surety bond in an amount equal to $10,000.

(ii) If the surety bond is drawn upon, the transporter shall notify ADEM within twenty-four (24) hours, and shall acquire additional financial assurance in the amount of $10,000 within five (5) days of the surety bond being drawn. If the owner/operator fails to provide the additional assurance as required, ADEM may terminate the permit as prescribed in 335-4-3-.06(c).

(b) A person proposing to transport tire materials may submit documentation satisfactory to ADEM of a net worth equal to ten (10) times the value of a surety bond required in 335-4-8-.02(1)(a). The documentation shall be submitted with a letter from the chief financial officer of the applicant or Certified Public Accountant.

(c) Proof of insurance in a minimum amount of $1,000,000 to abate any problems created as a result of the transporter's failure to properly manage scrap tires, exclusive of legal defense costs. The insurance may not include a pollution exclusion clause. Proof of insurance shall be provided on a Certificate of Insurance form naming ADEM as the certificate holder and giving at least thirty (30) days written Notice of Cancellation to the certificate holder.

(2) A transporter shall demonstrate to the satisfaction of ADEM that the financial instrument submitted with their application as required in 335-4-3-.04 is in force for the duration of the permit. Nothing in 335-4-8-.02 shall be construed to allow a transporter to operate in violation of the U.S. Department of Transportation rules governing financial assurance.

Ala. Admin. Code r. 335-4-8-.02

New Rule: Filed June 30, 2004; effective August 4, 2004. Amended: Filed February 27, 2007; effective April 3, 2007.

Amended by Alabama Administrative Monthly Volume XLII, Issue No. 09, June 28, 2024, eff. 8/12/2024.

Author: James L. Bryant, M. Gavin Adams. Adam N. Rhodes.

Statutory Authority:Code of Alabama 1975, §§ 22-40A-1et seq.