Md. Code Regs. 26.04.06.10

Current through Register Vol. 51, No. 22, November 1, 2024

Section 26.04.06.10 - Performance Bonds, Liability Insurance, or Other Form of Security

A. Except as provided under the provisions of §B of this regulation, a person applying for a Sewage Sludge Utilization Permit shall file with the Department a performance bond on a form prescribed or approved by the Department, liability insurance, or other form of security. The performance bond, liability insurance, or other form of security shall be payable to the Department and the obligation of the performance bond, liability insurance, or other form of security shall be conditioned upon the compliance with the terms and conditions of the Sewage Sludge Utilization Permit.

B. A performance bond, liability insurance, or other form of security is not required for the following persons or activities:

(1) An applicant proposing to dispose of or utilize sewage sludge at a municipal landfill if it is determined by the Department that the municipal landfill is regulated by a Refuse Disposal Permit issued in accordance with Environment Article, § 9-204, Annotated Code of Maryland, and that the financial assurance requirement in Environment Article, § 9-211, Annotated Code of Maryland, has been met;

(2) Users of sewage sludge that comply with the requirements of Regulations .09 and .52 of this chapter, and market Class A sewage sludge in accordance with a Sewage Sludge Utilization Permit issued by the Department; or

(3) Any local, State, or federal governmental agency or unit.

C. The amount of the performance bond, liability insurance, or other form of security shall be:

(1) $10,000 for a Sewage Sludge Utilization Permit for the transportation or marketing of sewage sludge, or for utilizing sewage sludge as part of a research project;

(2) $30,000 for a Sewage Sludge Utilization Permit to apply sewage sludge on agricultural land;

(3) $50,000 for a Sewage Sludge Utilization Permit to apply sewage sludge on marginal land;

(4) $75,000 for a Sewage Sludge Utilization Permit for utilizing sewage sludge as part of an innovative project; or

(5) $125,000 for a Sewage Sludge Utilization Permit for an in-State sewage sludge treatment, composting, storage, or distribution facility.

D. The amount of the performance bond, liability insurance, or other form of security for combined activities is the highest amount of all utilization activities listed in the Sewage Sludge Utilization Permit Application.

E. The Department may allow a permittee obtaining several Sewage Sludge Utilization Permits to apply sewage sludge on agricultural or marginal land to file one performance bond, liability insurance, or other form of security to satisfy the security requirements for more than one utilization site. The amount of the performance bond, liability insurance, or other form of security shall be the amount required in §C of this regulation for the first site plus 40 percent of the amount required in §C of this regulation for each additional site up to a maximum amount of $200,000.

F. Liability under the performance bond, liability insurance, or other form of security shall remain in effect until all terms and conditions of the Sewage Sludge Utilization Permit have been met. The Department may release the performance bond, liability insurance, or other form of security after the Department has determined that all terms and conditions of the Sewage Sludge Utilization Permits covered by the performance bond, liability insurance, or other form of security have been complied with.

G. The performance bond, liability insurance, or other form of security shall be executed by the person applying for a Sewage Sludge Utilization Permit and obtained from a corporate surety licensed to do business in this State. Instead of a performance bond, liability insurance, or other form of security executed by a corporate surety, the person may elect to deposit with the Department cash or negotiable bonds of the federal government or of this State or any other securities acceptable to the Department. The amount of the cash deposit or the market value of any securities shall be at least equal to the required sum of the performance bond, liability insurance, or other form of security. The Department shall receive and hold the cash or securities in trust, for the purposes for which the deposit is posted.

H. The obligation of the person applying for a Sewage Sludge Utilization Permit and of any corporate surety under the performance bond, liability insurance, or other form of security shall become due and payable, and all or any part of any cash or securities shall be applied to payment of the costs of complying with any requirement of the Sewage Sludge Utilization Permit if the Department has:

(1) Notified the permittee and any corporate surety that the terms and conditions of the Sewage Sludge Utilization Permit have not been complied with, and has specified in the notice the particular noncompliance with the Sewage Sludge Utilization Permit terms or conditions;

(2) Given the permittee a reasonable opportunity to correct the deficiencies and to comply with all of the terms and conditions of the Sewage Sludge Utilization Permit; and

(3) Determined that, at the end of a reasonable length of time, some or all of the noncompliance specified under §H(1) of this regulation remain uncorrected.

Md. Code Regs. 26.04.06.10

Regulations .10, Sewage Sludge Management, adopted effective November 3, 1986 (13:22 Md. R. 2399)
Regulations .10 adopted effective 41:10 Md. R. 562, eff.5/26/2014