Current through Register Vol. 54, No.43, October 26, 2024
Section 236.605 - Funding for site closure and decommissioning(a) The applicant shall provide assurances prior to the receipt of a license that sufficient funds are available to carry out disposal site closure and decommissioning, including decontamination or dismantlement of structures. The applicant shall also provide assurances regarding closure and stabilization of the disposal site so that following transfer of the disposal site to this Commonwealth, the need for ongoing active maintenance is eliminated to the extent practicable and only minor custodial care, surveillance and monitoring are required. These assurances shall be based on cost estimates submitted by the applicant and which reflect the Department approved plan for disposal site closure and decommissioning. The applicant's cost estimates shall take into account the total costs that would be incurred if an independent contractor were hired to perform the closure and decommissioning work.(b) The licensee's financial or surety arrangement shall be submitted as part of the application, and annually thereafter, for review by the Department to assure that sufficient funds will be available for completion of the closure and decommissioning plan.(c) The amount of the licensee's financial or surety arrangement shall change in accordance with changes in the predicted costs of closure and decommissioning. Factors affecting closure and decommissioning cost estimates include inflation, increases in the amount of disturbed land, changes in engineering plans, closure and stabilization that has already been accomplished, and other conditions affecting costs. The financial or surety arrangement shall be sufficient to cover the costs of closure and decommissioning of the disposal units that are expected to be used before the next 5 year review period.(d) The surety arrangement shall be written for a specified period of time, shall name the Department as the obligee and shall be automatically renewable unless the surety notifies the Department, and the principal-the licensee-at least 90 days prior to the renewal date, of its intention not to renew. In this situation, the licensee shall submit a replacement surety within 30 days after notification of cancellation. If the licensee fails to provide a replacement surety acceptable to the Department within 30 days before the cancellation becomes effective, the failure constitutes grounds for forfeiture of the surety.(e) Surety bonds will only be acceptable if issued by a surety authorized to do business in this Commonwealth. If the principal place of business of a surety is outside of this Commonwealth the surety bond shall be signed by an authorized Commonwealth resident agent of the surety.(f) Proof of the licensee's failure to replace the surety is not necessary for the Department to exercise its right of default. The right of the Department to declare a default because of the licensee's failure to replace the surety shall be a condition of the obligation.(g) Financial or surety arrangements generally acceptable to the Department include surety bonds, cash deposits, certificates of deposit, government securities rated at least BBB by Standard and Poor or Baa by Moody's Investor Services, trust accounts, irrevocable stand-by letters of credit, trust funds and combinations thereof or other types of arrangements that may be approved by the Department. Self-insurance, or an arrangement which essentially constitutes self-insurance, does not satisfy the financial or surety requirements as they apply to private-sector applicants.(h) The licensee's financial or surety arrangement shall remain in effect until the closure and decommissioning program has been completed and approved by the Department, and the license has been transferred to the Commonwealth Custodial Agency.