Minn. R. agency 167, ch. 9220, WASTE TIRE FACILITY FINANCIAL ASSURANCE REQUIREMENTS, pt. 9220.0620
Subparts 2 to 10 apply to surety bonds that guarantee payment into a standby trust fund. For surety bonds held by a county under part 9220.0600, provisions in this part that refer to the commissioner apply to both the commissioner and the county.
An owner or operator may satisfy the requirements of part 9220.0560 by obtaining a surety bond that conforms to the requirements of subparts 2 to 10 and by submitting the bond to the commissioner. The surety company issuing the bond must be among those listed as acceptable sureties on federal bonds in Circular 570, issued by the United States Department of the Treasury, as published annually in the Federal Register on July 1.
The commissioner shall approve the form of a surety bond that contains terms adequate to ensure that financial assurance is provided. The commissioner shall provide a copy of the approved surety bond instrument with the permit application forms. The owner or operator of the waste tire facility must use the form provided by the commissioner when establishing a surety bond financial assurance mechanism.
The owner or operator who uses a surety bond to satisfy the requirements of part 9220.0560 shall also establish a standby trust fund. The bond shall require the surety to deposit all payments made under the bond directly into the standby trust fund in accordance with instructions from the commissioner. An originally signed duplicate of the trust agreement must be submitted to the commissioner with the surety bond. The standby trust fund must meet the requirements of part 9220.0580, except that compliance with the requirements in items A to D is not required until the standby trust fund is funded under this part:
The bond must guarantee that the owner or operator will:
Under the terms of the bond, the surety must become liable on the bond obligation when the owner or operator fails to perform as guaranteed by the bond.
The penal sum of the bond must be at least equal to the sum of the applicable current closure cost estimate.
Within 60 days of an increase in the sum of the current closure cost estimate to an amount greater than the penal sum, the owner or operator shall either cause the penal sum to be increased to an amount at least equal to the sum of the current closure cost estimate and submit evidence of the increase to the commissioner, or obtain other financial assurance as specified in parts 9220.0610 to 9220.0640 to cover the increase. Whenever the sum of the current closure cost estimate decreases, the penal sum may be reduced to the sum of the current closure cost estimate following written approval by the commissioner.
The bond must provide that the surety may cancel the bond only by sending notice of cancellation by certified mail to the owner or operator and the commissioner. The bond must also provide that cancellation is not effective until 120 days after the commissioner has received the notice of cancellation, as evidenced by the return receipt. For a surety bond held by a county under part 9220.0600, the bond must provide a 150-day cancellation period rather than a 120-day period.
The owner or operator may cancel the bond if the commissioner has given prior written consent. The commissioner shall provide written consent if:
Minn. R. agency 167, ch. 9220, WASTE TIRE FACILITY FINANCIAL ASSURANCE REQUIREMENTS, pt. 9220.0620
Statutory Authority: MS s 115A.914