329 Ind. Admin. Code 3.1-14-32

Current through December 4, 2024
Section 329 IAC 3.1-14-32 - Wording of chief financial officer letters for liability coverage

Authority: IC 13-14-8; IC 13-22-2; IC 13-22-8-1; IC 13-22-9-7

Affected: IC 13-22

Sec. 32.

A letter from the chief financial officer, as specified in section 24 of this rule or 329 IAC 3.1-15-8(e), 329 IAC 3.1-15-10(g)), must be worded as follows except that instructions in brackets are to be replaced with the relevant information and the brackets deleted:

Letter from Chief Financial Officer (to demonstrate liability coverage or to demonstrate both liability coverage and assurance of corrective action, closure, or post-closure care).

[Address to commissioner of the Indiana Department of Environmental Management, State of Indiana]

I am the chief financial officer of [firm's name and address]. This letter is in support of the use of the financial test to demonstrate financial responsibility for liability coverage [insert "and corrective action, closure, and/or post-closure care" if applicable] in accordance with 329 IAC 3.1-14 or 329 IAC 3.1-15.

[Complete the following paragraphs regarding facilities and liability coverage. For each facility, include its U.S. EPA identification number, name, and address. If there are no facilities that belong in a particular paragraph, write "None" in the space indicated.]

The firm identified above is the owner or operator of the following facilities for which liability coverage for [insert "sudden", "nonsudden", or "both sudden and nonsudden"] accidental occurrences is being demonstrated through the financial test specified in 329 IAC 3.1-14 or 329 IAC 3.1-15.

[Or]

The firm identified above guarantees, through the guarantee specified in 329 IAC 3.1-14 and 329 IAC 3.1-15, liability coverage for [insert "sudden" or "nonsudden" or "both sudden and nonsudden"] accidental occurrences at the following facilities owned or operated by the following: ______________. The firm identified above is [insert either or both, as applicable: "the direct or higher tier parent corporation of the owner or operator" or "owned by the same parent corporation as the parent corporation of the owner or operator and receiving the following value in consideration of this guarantee ________________."].

[If you are using the financial test to demonstrate coverage of both liability and corrective action, closure, and/or post-closure care, fill in the following four (4) paragraphs regarding facilities and associated corrective action, closure, and post-closure cost estimates. For each facility, include its U.S. EPA identification number, name, address, and current corrective action, closure, and/or post-closure cost estimates. Identify each cost estimate as to whether it is for corrective action, closure, or post-closure care.]

1. The firm identified above owns or operates the following facilities for which financial assurance for corrective action, closure, or post-closure care or liability coverage is demonstrated through the financial test specified in 329 IAC 3.1-14 or 329 IAC 3.1-15. The current corrective action, closure, and/or post-closure cost estimates covered by the financial test are shown for each facility: ________.
2. The firm identified above guarantees, through the guarantee specified in 329 IAC 3.1-14 or 329 IAC 3.1-15, the corrective action, closure, and post-closure care or liability coverage of the following facilities owned or operated by the guaranteed party. The current cost estimates for the corrective action, closure, or post-closure care so guaranteed are shown for each facility: __________.
3. In states other than Indiana, this firm, as owner or operator or guarantor, is demonstrating financial assurance for the corrective action, closure, or post-closure care of the following facilities either to the United States Environmental Protection Agency (U.S. EPA) or to an authorized state through the use of a financial test 329 IAC 3.1-14 or 329 IAC 3.1-15. at least equivalent to 40 CFR 264 Subpart H or 40 CFR 265 Subpart H. The current corrective action, closure, and/or post-closure cost estimates covered by such a financial test are shown for each facility:____________.
4. The firm identified above owns or operates the following hazardous waste management facilities for which financial assurance for corrective action, closure, or, if a disposal facility, post-closure care is not demonstrated either to the U.S. EPA or a state through the financial test or any other financial assurance mechanism specified in 40 CFR 264 Subpart H and 40 CFR 265 Subpart H, or equivalent or substantially equivalent state mechanisms. The current corrective action, closure, and/or post-closure cost estimates not covered by such financial assurance are shown for each facility:_________.

This firm [insert "is required" or "is not required"] to file a Form 10K with the Securities and Exchange Commission (SEC) for the latest fiscal year.

The fiscal year of this firm ends on [month, day]. The figures for the following items marked with an asterisk (*) are derived from this firm's independently audited, year-end financial statements for the latest completed fiscal year, ended [date].

[Fill in Part A if you are using the financial test to demonstrate coverage ONLY for the liability requirements.]

Part A. Liability Coverage for Accidental Occurrences

[Fill in Alternative I if the criteria of 329 IAC 3.1-15-8(e)(1)(A) or 329 IAC 3.1-14-24(f)(1)(A) are used. Fill in Alternative II if the criteria of 329 IAC 3.1-15-8(e)(1)(B) or 329 IAC 3.1-14-24(f)(1)(B) are used.]

Alternative I

1. Amount of annual aggregate liability coverage to be demonstrated. $_____
2.* Current assets. $_____
3.* Current liabilities. $_____
4. Net working capital (line 2 minus line 3). $_____
5.* Tangible net worth. $_____
6.* If less than 90% of assets are located in the U.S., give total U.S. assets. $_____

YES NO

7. Is line 5 at least $10 million?
8. Is line 4 at least 6 times line 1?
9. Is line 5 at least 6 times line 1?
10.* Are at least 90% of assets located in the U.S.? If not, complete line 11.
11. Is line 6 at least 6 times line 1?

Alternative II

1. Amount of annual aggregate liability coverage to be demonstrated. $_____
2. Current bond rating of most recent issuance and name of rating service.
3. Date of issuance of bond.
4. Date of maturity of bond.
5.* Tangible net worth. $_____
6.* Total assets in U.S. (required only if less than 90% of assets are located in the U.S.). $_____

YES NO

7. Is line 5 at least $10 million?
8. Is line 5 at least 6 times line 1?
9.* Are at least 90% of assets located in the U.S.? If not, complete line 10.
10. Is line 6 at least 6 times line 1?

[Fill in Part B if you are using the financial test to demonstrate assurance of both liability coverage AND corrective action, closure, and/or post-closure care.]

Part B. Corrective Action, Closure or Post-Closure Care and Liability Coverage

[Fill in Alternative I if the criteria of 329 IAC 3.1-15-4(g)(1)(A) or 329 IAC 3.1-15-6(g)(1)(A) and 329 IAC 3.1-15-8(e)(1)(A) are used or if 329 IAC 3.1-14-9(a)(1) or 329 IAC 3.1-14-19(a)(1) and 329 IAC 3.1-14-24(f)(1)(A) are used. Fill in Alternative II if the criteria of 329 IAC 3.1-15-4(g)(1)(B) or 329 IAC 3.1-15-6(g)(1)(B) and 329 IAC 3.1- 15-8(e)(1)(B) are used or if 329 IAC 3.1-14-9(a)(2) or 329 IAC 3.1-14-19(a)(2) and 329 IAC 3.1-14-24(f)(1)(B) are used.]

Alternative I

1. Sum of current corrective action, closure, and post-closure cost estimates (total of all cost $_____ estimates listed above).
2. Amount of annual aggregate liability coverage to be demonstrated. $_____
3. Sum of lines 1 and 2. $_____
4.* Total liabilities (if any portion of your corrective action, closure, or post-closure cost estimates is included in your total liabilities, you may deduct that portion from this line and add that amount to lines 5 and 6).$_____
5.* Tangible net worth. $_____
6.* Net worth. $_____
7.* Current assets. $_____
8.* Current liabilities. $_____
9. Net working capital (line 7 minus line 8). $_____
10.* The sum of net income plus depreciation, depletion, and amortization. $_____
11.* Total assets in U.S. (required only if less than 90% of assets located in the U.S.). $_____

YES NO

12. Is line 5 at least $10 million?
13. Is line 5 at least 6 times line 3?
14. Is line 9 at least 6 times line 3?
15.* Are at least 90% of assets located in the U.S.? If not, complete line 16.
16. Is line 11 at least 6 times line 3?
17. Is line 4 divided by line 6 less than 2.0?
18. Is line 10 divided by line 4 greater than 0.1?
19. Is line 7 divided by line 8 greater than 1.5?

Alternative II

1. Sum of current corrective action, closure, and post-closure cost estimates (total of all cost $_____ estimates listed above).
2. Amount of annual aggregate liability coverage to be demonstrated. $_____
3. Sum of lines 1 and 2. $_____
4. Current bond rating of most recent issuance and name of rating service.
5. Date of issuance of bond.
6. Date of maturity of bond.
7.* Tangible net worth (if any portion of the corrective action, closure, or post-closure costestimates is included in "total liabilities" on your financial statements, you may add that portion to this line). $_____
8.* Total assets in the U.S. (required only if less than 90% of assets are located in the U.S.). $_____

YES NO

9. Is line 7 at least $10 million?
10. Is line 7 at least 6 times line 3?
11.* Are at least 90% of assets located in the U.S.? If not, complete line 12.
12. Is line 8 at least 6 times line 3?

I hereby certify that the wording of this letter is identical to the wording specified in 329 IAC 3.1-14-32 as such rule was constituted on the date shown immediately below.

[Signature]

[Name]

[Title]

[Date]

329 IAC 3.1-14-32

Solid Waste Management Board; 329 IAC 3.1-14-32; filed Jan 24, 1992, 2:00 p.m.: 15 IR 975; filed Apr 1, 1996, 11:00 a.m.: 19 IR 2000; readopted filed Jan 10, 2001, 3:25 p.m.: 24 IR 1535
Filed 5/11/2021, 12:38 p.m.: 20210609-IR-329140287FRA