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(continued)
(E) the owner or operator is operating and will continue to operate in compliance with all applicable permit requirements of this chapter and with all applicable regulations promulgated by other state agencies governing discharges of hazardous or non-hazardous wastes to land and water, including, but not limited to, regulations promulgated by the California Integrated Waste Management Board and the State Water Resources Control Board; and
(2) The request to modify the permit includes an amended waste analysis plan, monitoring and response program for groundwater, air, soil, and soil-pore gas required under articles 6 and 17 of this chapter, human exposure assessment required under Title 42, U.S.C., Section 6939a, and closure and post-closure plans, and updated cost estimates and demonstrations of financial assurance for closure and post-closure care as necessary and appropriate, to reflect any changes due to the presence of hazardous constituents in the non-hazardous wastes, and changes in closure activities, including the expected year of closure, if applicable, under Title 22, CCR, section 66264.112(b)(7), as a result of the receipt of non-hazardous wastes following the final receipt of hazardous wastes; and
(3) The request to modify the permit includes revisions, as necessary and appropriate, to affected conditions of the permit to account for the receipt of non-hazardous wastes following receipt of the final volume of hazardous wastes; and
(4) The request to modify the permit and the demonstrations referred to in subsections (d)(1) and (d)(2) of this section are submitted to the Department no later than 180 days prior to the date on which the owner or operator of a facility receives the known final volume of hazardous wastes at the unit, or no later than 90 days after the effective date of this rule, whichever is later.
(e) In addition to the requirements in subsection (d) of this section, an owner or operator of a hazardous waste surface impoundment that is not in compliance with the liner and leachate collection system requirements pursuant to Title 22, CCR, Division 4.5, Chapter 14, Article 11 shall:
(1) Submit with the request to modify the permit:
(A) a contingent corrective measures plan, unless a corrective action program has already been submitted under sections 66264.99, 66264.100 and 66264.708; and
(B) a plan for removing hazardous wastes in compliance with subsection (e)(2) of this section; and
(2) Remove all hazardous wastes from the unit by removing all hazardous liquids, and by removing all hazardous sludges to the extent practicable without impairing the integrity of the liner(s), if any.
(3) Removal of hazardous wastes shall be completed no later than 90 days after the final receipt of hazardous wastes. The Department may approve an extension to this deadline if the owner or operator demonstrates that the removal of hazardous wastes will, of necessity, take longer than the allotted period to complete and that an extension will not pose a threat to human health or the environment.
(4) If a release that is a statistically significant increase (or decrease in the case of pH) over background values for detection monitoring parameters or constituents specified in the permit or that exceeds the facility's protection standards for groundwater, air, soil, or soil-pore gas at the points of compliance, if applicable, is detected in accordance with the requirements in articles 6, 15.5, or 17 of this chapter, the owner or operator of the unit:
(A) shall implement corrective measures in accordance with the approved contingent corrective measures plan required by subsection (e)(1) of this section no later than one year after detection of the release, or approval of the contingent corrective measures plan, whichever is later;
(B) may continue to receive wastes at the unit following detection of the release only if the approved corrective measures plan includes a demonstration that continued receipt of wastes will not impede corrective action; and
(C) may be required by the Department to implement corrective measures in less than one year or to cease receipt of wastes until corrective measures have been implemented if necessary to protect human health or the environment.
(5) During the period of corrective action, the owner or operator shall provide semi-annual reports to the Department that describe the progress of the corrective action program, compile all monitoring data for groundwater, air, soil, and soil-pore gas, and evaluate the effect of the continued receipt of non-hazardous wastes on the effectiveness of the corrective action.
(6) The Department may require the owner or operator to commence closure of the unit if the owner or operator fails to implement corrective action measures in accordance with the approved contingent corrective measures plan within one year as required in subsection (e)(4) of this section, or fails to make substantial progress in implementing corrective action and achieving the facility's protection standards for groundwater, air, soil, or soil-pore gas, or background levels if the facility has not yet established a protection standard for groundwater, air, soil or soil-pore gas.
(7) If the owner or operator fails to implement corrective measures as required in subsection (e)(4) of this section, or if the Department determines that substantial progress has not been made pursuant to subsection (e)(6) of this section, the Department shall:
(A) notify the owner or operator in writing that the owner or operator shall begin closure in accordance with the deadlines in subsections (a) and (b) of this section and provide a detailed statement of reasons for this determination, and
(B) provide the owner or operator and the public, through a newspaper notice, the opportunity to submit written comments on the decision no later than 20 days after the date of the notice.
(C) If the Department receives no written comments, the decision will become final five days after the close of the comment period. The Department shall notify the owner or operator that the decision is final, and that a revised closure plan, if necessary, shall be submitted within 15 days of the final notice and that closure shall begin in accordance with the deadlines in subsections (a) and (b) of this section.
(D) If the Department receives written comments on the decision, the Department shall make a final decision within 30 days after the end of the comment period, and shall provide the owner or operator in writing, and the public through a newspaper notice, a detailed statement of reasons for the final decision. If the Department determines that substantial progress has not been made, closure shall be initiated in accordance with the deadlines in subsections (a) and (b) of this section.
(E) The final determinations made by the Department under subsections (e)(7)(C)-(D) of this section are not subject to administrative appeal.

Note: Authority cited: Sections 25150, 25159, 25245, 58004 and 58012, Health and Safety Code. Reference: Sections 25159, 25159.5, 25200.10, 25245 and 25246, Health and Safety Code; 40 CFR Section 264.113.





s 66264.114. Disposal or Decontamination of Equipment, Structures and Soils.
During the partial and final closure periods, all contaminated equipment, structures and soils shall be properly disposed of or decontaminated by removing all hazardous waste and residues, unless otherwise specified in sections 66264.197, 66264.228, 66264.258, 66264.280, or 66264.310. By removing all hazardous wastes and residues or hazardous constituents during partial and final closure, the owner or operator may become a generator of hazardous waste and shall handle that waste in accordance with all applicable requirements of chapter 12 of this division.

Note: Authority cited: Sections 208, 25150, 25159 and 25245, Health and Safety Code. Reference: Sections 25159, 25159.5, 25245 and 25246, Health and Safety Code; 40 CFR Section 264.114.





s 66264.115. Certification of Closure.
Within 60 days of completion of partial closure, and within 60 days of the completion of final closure, the owner or operator shall submit to the Department, by registered mail, a certification that the hazardous waste management unit or facility, as applicable, has been closed in accordance with the specifications in the approved closure plan. The certification shall be signed by the owner or operator and by an independent qualified professional engineer, registered in California. Documentation supporting the independent qualified registered professional engineer's certification shall be furnished to the Department upon request until the Department releases the owner or operator from the financial assurance requirements for closure under section 66264.143, subsection (j).

Note: Authority cited: Sections 25150, 25159 and 25245, Health and Safety Code. Reference: Sections 25159, 25159.5, 25245 and 25246, Health and Safety Code; 40 CFR Section 264.115.





s 66264.116. Survey Plat.
No later than the submission of the certification of closure ofeach hazardous waste disposal unit, the owner or operator shall submit to the local zoning authority, or the authority with jurisdiction over local land use, and to the Department, a survey plat indicating the location and dimensions of landfill cells or other hazardous waste disposal units with respect to permanently surveyed vertical and horizontal benchmarks. This plat shall be prepared and certified by a professional land surveyor licensed in California. The plat filed with the local zoning authority, or the authority with jurisdiction over local land use, shall contain a note, prominently displayed, which states the owner's or operator's obligation to restrict disturbance of the hazardous waste disposal unit in accordance with the applicable regulations of this article.

Note: Authority cited: Sections 208, 25150, 25159 and 25245, Health and Safety Code. Reference: Sections 25259, 25159.5, 25245 and 25246, Health and Safety Code; 40 CFR Section 264.116.





s 66264.117. Post-Closure Care and Use of Property.
(a) This section pertains to facilities at which all hazardous wastes, waste residues, contaminated materials and contaminated soils will not be removed during closure. Additional requirements for such facilities are cited in title 23 of the California Code of Regulations.
(b)(1) Post-closure care for each hazardous waste management unit subject to the requirements of sections 66264.117 through 66264 .120 shall begin after completion of closure of the unit and, except as provided in subsections (b)(2)(A) and (b)(2)(B), continue for 30 years after that date and shall consist of at least the following:
(A) monitoring and reporting in accordance with the requirements of articles 6, 11, 12, 13, 14, and 16 of this chapter; and
(B) maintenance and monitoring of waste containment systems in accordance with the requirements of articles 6, 11, 12, 13, 14, and 16 of this chapter.
(2) Any time preceding partial closure of a hazardous waste management unit subject to post-closure care requirements or final closure, or any time during the post-closure period for a particular unit, the Department shall, in accordance with the permit modification procedures in chapters 20 and 21 of this division:
(A) shorten the post-closure care period applicable to the hazardous waste management unit, or facility, if all disposal units have been closed, if the owner or operator demonstrates to the satisfaction of the Department and the Department finds that the reduced period is sufficient to protect human health and the environment (e.g., leachate or ground-water monitoring results, characteristics of the hazardous wastes, application of advanced technology, or alternative disposal, treatment, or re-use techniques indicate that the hazardous waste management unit or facility is secure); or
(B) extend the post-closure care period applicable to the hazardous waste management unit or facility if the Department finds that the extended period is necessary to protect human health and the environment (e.g., leachate or ground-water monitoring results indicate a potential for migration of hazardous wastes at levels which may be harmful to human health and the environment).
(c) The Department shall require, at partial and final closure,continuation of any of the security requirements of section 66264.14 during part or all of the post-closure period when:
(1) hazardous wastes may remain exposed after completion of partial or final closure; or
(2) access by the public or domestic livestock may pose a hazard to human health.
(d) Post-closure use of property on or in which hazardous wastes remain after partial or final closure shall never be allowed to disturb the integrity of the final cover, liner(s), or any other components of the containment system, or the function of the facility's monitoring systems, unless the Department finds that thedisturbance:
(1) is necessary to the proposed use of the property, and will not increase the potential hazard to human health or the environment; or
(2) is necessary to reduce a threat to human health or the environment.
(e) All post-closure care activities shall be in accordance with the provisions of the approved post-closure plan as specified in section 66264.118.
(f) Upon closure of a hazardous waste facility wherein hazardous wastes remain on-site, no construction, filling, grading, excavating or mining shall occur without the issuance of a variance by the Department. No variance may be granted which is inconsistent with subsection (d) of this section.

Note: Authority cited: Sections 208, 25150, 25159 and 25245, Health and Safety Code. Reference: Sections 25159, 25159.5, 25245 and 25246, Health and Safety Code; 40 CFR Section 264.117.





s 66264.118. Post-Closure Plan; Amendment of Plan.
(a) Written Plan. The owner or operator of a hazardous waste disposal unit shall have a written post-closure plan. In addition, certain surface impoundments and waste piles from which the owner or operator intends to remove or decontaminate the hazardous wastes at partial or final closure are required by sections 66264.228(c)(1)(B) and 66264.258(c)(1)(B) to have contingent post-closure plans. The plan shall be submitted with the permit application, in accordance with section 66270.14(b)(13) of this division, or when otherwise requested by the Department. The plan shall be approved by the Department as part of the permit issuance procedures under chapter 21 of this division. In accordance with section 66270.32 of this division, the approved post-closure plan will become a condition of any permit issued.
(b) For each hazardous waste management unit subject to the requirements of this section, the post-closure plan shall identify the activities that will be carried on after closure of each disposal unit and the frequency of these activities, and include at least:
(1) a description of the planned monitoring activities and frequencies at which they will be performed to comply with articles 6, 11, 12, 13, 14, and 16 of this chapter during the post-closure care period; and
(2) a description of the planned maintenance activities, and frequencies at which they will be performed, to ensure:
(A) the integrity of the cap and final cover and other containment systems in accordance with the requirements of articles 11, 12, 13, 14, and 16 of this chapter; and
(B) the function of the monitoring equipment in accordance with the requirements of articles 6, 11, 12, 13, 14, and 16 of this chapter; and
(3) the name, address, and phone number of the person or office to contact about the hazardous waste disposal unit or facility during the post-closure care period.
(c) Until final closure of the facility, a copy of the approved post-closure plan and all revisions shall be kept at the facility and furnished to the Department upon request, including request by mail. After final closure, the person or office specified in section 66264.118(b)(3) shall keep an updated and approved post-closure plan during the remainder of the post-closure period.
(d) Amendment of plan. The owner or operator shall submit a written notification of or request for a permit modification to authorize a change in the approved post-closure plan in accordance with the applicable requirements of chapters 20 and 21 of this division. The written notification or request shall include a copy of the amended post-closure plan for review or approval by the Department.
(1) The owner or operator may submit a written notification or request to the Department for a permit modification to amend the post-closure plan at any time during the active life of the facility or during the post-closure care period.
(2) The owner or operator shall submit a written notification of or request for a permit modification to authorize a change in the approved post-closure plan whenever:
(A) changes in operating plans or facility design affect the approved post-closure plan, or
(B) there is a change in the expected year of final closure, if applicable, or
(C) events which occur during the active life of the facility or the post-closure care period, including partial and final closures, affect the approved post-closure plan.
(3) The owner or operator shall submit a written request for a permit modification at least 60 days prior to the proposed change in facility design or operation, or no later than 60 days after an unexpected event has occurred which has affected the post-closure plan. The Department will approve, disapprove or modify this amended plan in accordance with the procedures in chapters 20 and 21 of this division. In accordance with section 66270.32 of this division, the approved post-closure plan will become a permit condition.
(4) The Department shall modify or request modifications to the plan under the conditions described in section 66264.118(d)(2) or for other causes if deemed necessary to prevent threats to human health and the environment. The owner or operator shall submit the modified plan no later than 60 days after the Department's request. Any modifications requested by the Department will be approved, disapproved, or modified in accordance with the procedures in chapters 20 and 21 of this division.

Note: Authority cited: Sections 208, 25150, 25159 and 25245, Health and Safety Code. Reference: Sections 25159, 25159.5, 25245 and 25246, Health and Safety Code; 40 CFR Section 264.118.





s 66264.119. Post-Closure Notices.
(a) No later than 60 days after certification of closure of each hazardous waste disposal unit, the owner or operator shall submit to the local zoning authority, or the authority with jurisdiction over local land use, and to the Department a record of the type, location, and quantity of hazardous wastes disposed of within each cell or area (not limited to only hazardous waste disposal unit) of the facility. For hazardous wastes disposed of before January 12, 1981, the owner or operator shall identify the type, location, and quantity of the hazardous wastes to the best of the owner's or operator's knowledge and in accordance with any records the owner or operator has kept. Any changes in the type, location or quantity of hazardous wastes disposed of within each cell or area of the facility that occur after the survey plat and record of wastes have been filed shall be reported to the local zoning authority or the authority with jurisdiction over local land use and to the Department.
(b) Within 60 days of certification of closure of the first hazardous waste disposal unit and within 60 days of certification of closure of the last hazardous waste disposal unit, the owner or operator shall:
(1) record, in accordance with State law, a notation on the deed to the facility property, or on some other instrument which is normally examined during title search, that will in perpetuity notify any potential purchaser of the property that:
(A) the land has been used to manage hazardous wastes; and
(B) its use is restricted under article 7 of this chapter; and
(C) the survey plat and record of the type, location, and quantity of hazardous wastes disposed of within each cell or area (not limited to only hazardous waste disposal unit) of the facility required by sections 66264.116 and 66264.119(a) have been filed with the local zoning authority or the authority with jurisdiction over local land use and with the Department; and
(2) submit, to the Department, a certification, signed by the owner, that the notation specified in subsection (b)(1) of this section has been recorded, including a copy of the document in which the notation has been placed.
(c) If at any time the owner or operator or any subsequent owner or operator of the land upon which a hazardous waste disposal unit is located wishes to remove hazardous wastes and hazardous waste residues, the liner, if any, or contaminated underlying and surrounding soils, the owner or operator shall request a modification to the post-closure permit in accordance with the applicable requirements in chapters 20 and 21 of this division. The owner or operator shall demonstrate that the removal of hazardous wastes will satisfy the criteria of section 66264.117(d). By removing hazardous waste, the owner or operator may become a generator of hazardous waste and shall manage it in accordance with all applicable requirements of this chapter. If the Department grants a permit modification or otherwise grants approval to conduct such removal activities, and the removal activities are completed to the satisfaction of the Department the owner or operator may request that the Department approve either:
(1) the removal of the notation on the deed to the facility property or other instrument normally examined during title search; or
(2) the addition of a notation to the deed or instrument indicating the removal of the hazardous waste.

Note: Authority cited: Sections 208, 25150, 25159 and 25245, Health and Safety Code. Reference: Sections 25159, 25159.5, 25245 and 25246, Health and Safety Code; 40 CFR Section 264.119.





s 66264.120. Certification of Completion of Post-Closure Care.
No later than 60 days after completion of the established post-closure care period for each hazardous waste disposal unit, the owner or operator shall submit to the Department, by registered mail, a certification that the post-closure care period for the hazardous waste disposal unit was performed in accordance with the specifications in the approved post-closure plan. The certification shall be signed by the owner or operator and an independent qualified professional engineer, registered in California. Documentation supporting the independent qualified registered professional engineer's certification shall be furnished to the Department upon request until the Department releases the owner or operator from the financial assurance requirements for post-closure care under section 66264.145, subsection (j).

Note: Authority cited: Sections 25150, 25159 and 25245, Health and Safety Code. Reference: Sections 25159, 25159.5, 25245 and 25246, Health and Safety Code; 40 CFR Section 264.120.





s 66264.140. Applicability.
(a) The requirements of sections 66264.142, 66264.143 and 66264.147 apply to owners and operators of all hazardous waste facilities, as defined in section 66260.10, except as provided otherwise in this article.
(b) The requirements of sections 66264.144 and 66264.145 apply only to owners and operators of:
(1) hazardous waste facilities, which are disposal facilities, as defined in section 66260.10;
(2) for purposes of this article, a facility which utilizes a temporary waste pile, as defined in section 66260.10, and surface impoundments as defined in section 66260.10, shall be considered as a disposal site until the owner or operator has demonstrated to the satisfaction of the Department that all wastes have been removed from the site;
(3) tank systems that are required under section 66264.197 to meet the requirements for landfills; and
(4) Containment buildings that are required under section 66264.1102 to meet the requirements for landfills.
(c) States and the Federal government are exempt from the requirements of this article.
(d) For purposes of this article, state government shall not include municipal, local, city, county, city-county special district government or any subdivisions thereof.

Note: Authority cited: Sections 25150, 25159, 25159.5, 25179.6, 25245 and 58012, Health and Safety Code. Reference: Sections 25159, 25159.5, 25245 and 58012, Health and Safety Code; 40 CFR Section 264.140.





s 66264.141. Definition of Terms As Used in This Article.
(a) The following terms, as defined in section 66260.10 are used in the specifications for the financial tests for closure, post-closure care, and liability coverage. The definitions are intended to assist in the understanding of these regulations and are not intended to limit the meanings of terms in a way that conflicts with generally accepted accounting practices.
"Assets"
"Current assets"
"Current liabilities"
"Current plugging and abandonment cost estimate"
"Independently audited"
"Liabilities"
"Net working capital"
"Net worth"
"Substantial business relationship"
"Tangible net worth"
(b) In the liability coverage requirements the terms "bodily injury" and "property damage" as defined in section 66260.10 shall have the meanings given these terms by applicable State law. However, these terms do not include those liabilities which, consistent with standard industry practices, are excluded from coverage in liability policies for bodily injury and property damage. The Department intends the meanings of other terms used in the liability insurance requirements to be consistent with their common meanings within the insurance industry. The definitions given below and defined in section 66260.10 are intended to assist in the understanding of these regulations and are not intended to limit their meanings in a way that conflicts with general insurance industry usage.
"Accidental occurrence"
"Legal defense costs"
"Nonsudden accidental occurrence"
"Sudden accidental occurrence"

Note: Authority cited: Sections 208, 25150, 25159, 25159.5 and 25245, Health and Safety Code. Reference: Section 25245, Health and Safety Code; 40 CFR Section 264.141.





s 66264.142. Cost Estimate for Closure.
(a) The owner or operator shall prepare and submit to the Department a detailed written estimate, in current dollars, of the cost of closing the facility in accordance with the requirements in sections 66264.111 through 66264.115 and applicable closure requirements in sections 66264.178, 66264.197, 66264.228, 66264.258, 66264.280, 66264.310, 66264.351, 66264.601 through 66264.603, and 66264.1102.
(1) The estimate shall be submitted in accordance with sections 66270.10 and 66270.14. The estimate shall equal the cost of final closure at the point in the facility's active life when the extent and manner of its operation would make closure the most expensive, as indicated by its closure plan (see section 66264.112(b)).
(2) The closure cost estimate shall be based on the costs to the owner or operator of hiring a third party to close the facility. A third party is a party who is neither a parent nor a subsidiary of the owner or operator. (See definition of parent corporation in section 66260.10.) The owner or operator may use costs for on-site disposal if it can be demonstrated that on-site disposal capacity will exist at all times over the life of the facility.
(3) The closure cost estimate shall not incorporate any salvage value that may be realized with the sale of hazardous wastes, or non-hazardous wastes if applicable under section 66264.113(d), facility structures or equipment, land, or other assets associated with the facility at the time of partial or final closure.
(4) The owner or operator shall not incorporate a zero cost for hazardous wastes, or non-hazardous wastes if applicable under section 66264.113(d), that might have economic value.
(b) During the active life of the facility, the owner or operator shall adjust the closure cost estimate for inflation within 60 days prior to the anniversary date of the establishment of the financial instrument(s) used to comply with section 66264.143. For owners and operators using the financial test or corporate guarantee, the closure cost estimate shall be updated for inflation within 30 days after the close of the firm's fiscal year and before submission of updated information to the Department as specified in section 66264.143(f)(3). The adjustment shall be made by recalculating the maximum costs of closure in current dollars, or by using an inflation factor derived from the most recent Implicit Price Deflator for Gross National Product published by the U.S. Department of Commerce in its Survey of Current Business, as specified in subsections (b)(1) and (2) of this section. The inflation factor is the result of dividing the latest published annual Deflator by the Deflator for the previous year.
(1) The first adjustment is made by multiplying the closure cost estimate by the inflation factor. The result is the adjusted closure cost estimate.
(2) Subsequent adjustments are made by multiplying the latest adjusted closure cost estimate by the latest inflation factor.
(c) During the active life of the facility, the owner or operator shall revise the closure cost estimate no later than 30 days after the Department has approved the request to modify the closure plan, if the change in the closure plan increases the cost of closure. The revised closure cost estimate shall be adjusted for inflation as specified in subsection (b) of this section.
(d) The owner or operator shall keep the following at the facility during the operating life of the facility: the latest closure cost estimate prepared in accordance with subsections (a) and (c) of this section and, when this estimate has been adjusted in accordance with subsection (b) of this section, the latest adjusted closure cost estimate.

Note: Authority cited: Sections 25150, 25159, 25159.5, 25179.6, 25245, 58004 and 58012, Health and Safety Code. Reference: Sections 25159, 25159.5 and 25245, Health and Safety Code; 40 CFR Section 264.142.





s 66264.143. Financial Assurance for Closure.
An owner or operator of each facility shall establish and demonstrate to the Department financial assurance for closure of the facility. The owner or operator shall choose from the options as specified in subsections (a) through (f) and (i) of this section or section 66264.146 of this article.
(a) Closure trust fund.
(1) An owner or operator may satisfy the requirements of this section by establishing a closure trust fund which conforms to the requirements of this subsection and submitting an originally signed duplicate of the trust agreement to the Department. An owner or operator of a new facility shall submit the originally signed duplicate of the trust agreement to the Department at least 60 days before the date on which hazardous waste is first received for transfer, treatment, storage or disposal. The trustee shall be an entity which has the authority to act as a trustee and whose trust operations are regulated and examined by a Federal or State agency.
(2) The wording of the trust agreement shall be identical to the wording specified in section 66264.151, subsection (a)(1), shall contain original signatures and shall be accompanied by a formal certification of acknowledgment (for example, see section 66264.151, subsection (a)(2)). Schedule A of the trust agreement shall be updated within 60 days after a change in the amount of the current closure cost estimate covered by the trust agreement.
(3) Payments into the trust fund shall be made annually by the owner or operator over the term of the initial RCRA permit, or ten (10) years beginning with the establishment of the trust fund or over the remaining operating life of the facility as estimated in the closure plan, whichever period is shorter; this period is hereafter referred to as the "pay-in period." The payments into the closure trust fund shall be made as follows:
(A) For existing facilities, the first payment shall be made at the time the trust fund is established; a receipt from the trustee for this payment shall be submitted by the owner or operator to the Department. The first payment shall be at least equal to the current closure cost estimate, except as provided in subsection (g) of this section, divided by the number of years in the pay-in period. Subsequent payments shall be made no later than 30 days after each anniversary date of the first payment. The amount of each subsequent payment shall be determined by this formula:
Next payment = CE-CV
Y
where CE is the current closure cost estimate, CV is the current value of the trust fund and Y is the number of years remaining in the pay-in period.
(B) For a new facility, the first payment shall be made before the initial receipt of hazardous waste for transfer, treatment, storage or disposal. A receipt from the trustee for this payment shall be submitted by the owner or operator to the Department before this initial receipt of hazardous waste. The first payment shall be at least equal to the current closure cost estimate, except as provided in subsection (g) of this section, divided by the number of years in the pay-in period. Subsequent payments shall be made no later than 30 days after each anniversary date of the first payment. The amount of each subsequent payment shall be determined by this formula:
Next payment = CE-CV
Y
where CE is the current closure cost estimate, CV is the current value of the trust fund, and Y is the number of years remaining in the pay-in period.
(C) If an owner or operator establishes a trust fund as specified in section 66265.143(a) of this division, and the value of that trust fund is less than the current closure cost estimate when a permit is awarded for the facility, the amount of the current closure cost estimate still to be paid into the trust fund shall be paid in over the pay-in period as defined in subsection (a)(3) of this section. Payments shall continue to be made no later than 30 days after each anniversary date of the first payment made pursuant to chapter 15 of this division. The amount of each payment must be determined by this formula:
Next payment = CE-CV
Y
where CE is the current closure cost estimate, CV is the current value of the trust fund, and Y is the number of years remaining in the pay-in period.
(4) The owner or operator may accelerate payments into the trust fund or the full amount of the current closure cost estimate may be deposited at the time the fund is established. However, the value of the fund shall be maintained at no less than the value that the fund would have if annual payments were made as specified in subsection (a)(3) of this section.
(5) If the owner or operator establishes a closure trust fund after having used one or more alternate mechanisms specified in this section or in section 66265.143 of this division, the first payment shall be in at least the amount that the fund would contain if the trust fund were established initially and annual payments made according to specifications of this subsection and section 66265.143, subsection (a) of this division, as applicable.
(6) After the pay-in period is completed, whenever the current closure cost estimate changes, the owner or operator shall compare the new estimate with the trustee's most recent annual valuation of the trust fund. If the value of the fund is less than the amount of the new estimate, the owner or operator, within 60 days after the change in the cost estimate, shall either deposit an amount into the fund so that its value after this deposit at least equals the amount of the current closure cost estimate, or obtain other financial assurance as specified in this section to cover the difference.
(7) If the value of the trust fund is greater than the total amount of the current closure cost estimate, the owner or operator may submit a written request to the Department for release of the amount in excess of the current closure cost estimate.
(8) If an owner or operator substitutes other financial assurance as specified in this section for all or part of the trust fund, a written request may be submitted to the Department for release of the amount in excess of the current closure cost estimate covered by the trust fund.
(9) Within 60 days after receiving a request from the owner or operator for release of funds as specified in subsections (a)(7) or (8) of this section, the Department will instruct the trustee to release to the owner or operator such funds as the Department specifies in writing.
(10) Before beginning final closure, the value of the trust fund shall equal the amount of the current closure cost estimate. If the value of the fund is less than the amount of the current estimate, the owner or operator shall either deposit an amount into the fund so that its value after this deposit at least equals the amount of the current closure cost estimate, or obtain other financial assurance, as specified in this section, to cover the difference.
(11) After beginning partial or final closure, an owner or operator or another person authorized to conduct partial or final closure may request reimbursements for partial or final closure expenditures by submitting itemized bills to the Department. The owner or operator may request reimbursements for partial closure only if sufficient funds are remaining in the trust fund to cover the maximum costs of closing the facility over its remaining operating life. Within 60 days after receiving bills for partial or final closure activities, the Department shall instruct the trustee to make reimbursements in those amounts as the Department specifies in writing, if the Department determines that the partial or final closure expenditures are in accordance with the approved closure plan, or otherwise justified. If the Department has reason to believe that the maximum cost of closure over the remaining life of the facility will be significantly greater than the value of the trust fund, reimbursements of such amounts may be withheld until the Department determines, in accordance with subsection (j) of this section that the owner or operator is no longer required to maintain financial assurance for final closure of the facility. If the Department does not instruct the trustee to make such reimbursements, the Department shall provide the owner or operator with a detailed written statement of reasons.
(12) The Department shall agree to termination of the trust when:
(A) an owner or operator substitutes alternate financial assurance as specified in this section; or
(B) the Department releases the owner or operator from the requirements in accordance with subsection (j) of this section.
(b) Surety bond guaranteeing payment into a closure trust fund.
(1) An owner or operator may satisfy the requirements of this section by obtaining a surety bond which conforms to the requirements of this subsection and submitting the bond to the Department. An owner or operator of a new facility shall submit the bond to the Department at least 60 days before the date on which hazardous waste is first received for transfer, treatment, storage or disposal. The bond shall be effective before this initial receipt of hazardous waste. The surety company issuing the bond must, at a minimum, be among those listed as acceptable sureties on Federal bonds in Circular 570 of the U.S. Department of the Treasury.
(2) The wording of the surety bond shall be identical to the wording specified in section 66264.151, subsection (b). The surety bond shall contain original signatures and shall be accompanied by the documents specified in this subsection.
(3) The owner or operator who uses a surety bond to satisfy the requirements of this section shall also establish a standby trust fund. Under the terms of the bond, all payments made thereunder shall be deposited by the surety directly into the standby trust fund in accordance with instructions from the Department. This standby trust fund shall meet the requirements specified in subsection (a) of this section, except that:
(A) an originally signed duplicate of the standby trust agreement shall be submitted to the Department with the surety bond; and
(B) until the standby trust fund is funded pursuant to the requirements of this section, the following are not required by these regulations:
1. payments into the trust fund as specified in subsection (a) of this section;
2. updating of Schedule A of the trust agreement (see section 66264.151, subsection (a)) to show current closure cost estimates as required by subsection (a)(2) of this section;
3. annual valuations as required by the trust agreement; and
4. notices of nonpayment as required by the trust agreement.
(4) The bond shall guarantee that the owner or operator shall:
(A) fund the standby trust fund in an amount equal to the penal sum of the bond before the beginning of final closure of the facility; or
(B) fund the standby trust fund in an amount equal to the penal sum within 15 days after an administrative order to begin final closure issued by the Department becomes final, or within 15 days after an order to begin final closure is issued by a U.S. district court or other court of competent jurisdiction; or
(C) provide alternate financial assurance as specified in this section, and obtain the Department's written approval of the assurance provided, within 90 days after receipt by both the owner or operator and the Department of a notice of cancellation of the bond from the surety.
(5) Under the terms of the bond, the surety shall become liable on the bond obligation when the owner or operator fails to perform as guaranteed by the bond.
(6) The penal sum of the bond shall be in an amount at least equal to the current closure cost estimate, except as provided in subsection (g) of this section.
(7) Whenever the current closure cost estimate increases to an amount greater than the penal sum, the owner or operator, within 60 days after the increase, shall either cause the penal sum to be increased to an amount at least equal to the current closure cost estimate and submit evidence of such increase to the Department, or obtain other financial assurance as specified in this section to cover the increase. Whenever the current closure cost estimate decreases, the penal sum may be reduced to the amount of the current closure cost estimate following written approval by the Department.
(8) Under the terms of the bond, the surety may cancel the bond by sending notice of cancellation by certified mail to the owner or operator and to the Department. Cancellation shall not occur, however, during the 120 days beginning on the date of receipt of the notice of cancellation by both the owner or operator and the Department, as evidenced by the return receipt.
(9) The owner or operator may cancel the bond with prior written consent from the Department based on receipt of evidence of alternate financial assurance as specified in this section.
(c) Surety bond guaranteeing performance of closure.
(1) An owner or operator of a permitted facility, as defined in section 66260.10, may satisfy the requirements of this section by obtaining a surety bond which conforms to the requirements of this subsection and submitting the bond to the Department. An owner or operator of a new facility shall submit the bond to the Department at least 60 days before the date on which hazardous waste is first received for transfer, treatment, storage or disposal. The bond shall be effective before this initial receipt of hazardous waste. 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.
(2) The wording of the surety bond shall be identical to the wording specified in section 66264.151, subsection (c). The surety bond shall contain original signatures and shall be accompanied by the documents specified in this subsection.
(3) The owner or operator who uses a surety bond to satisfy the requirements of this section shall also establish a standby trust fund. Under the terms of the bond, all payments made thereunder shall be deposited by the surety directly into the standby trust fund in accordance with instructions from the Department. This standby trust must meet the requirements specified in subsection (a) of this section, except that:
(A) an originally signed duplicate of the standby trust agreement shall be submitted to the Department with the surety bond; and
(B) unless the standby trust fund is funded pursuant to the requirements of this section, the following are not required by these regulations:
1. payments into the trust fund as specified in subsection (a) of this section;
2. updating of Schedule A of the trust agreement to show current closure cost estimates as required by subsection (a)(2) of this section;
3. annual valuations as required by the trust agreement; and
4. notices of nonpayment as required by the trust agreement.
(4) The bond shall guarantee that the owner or operator will:
(A) perform final closure in accordance with the closure plan and other requirements of the permit for the facility whenever required to do so; or
(B) provide alternate financial assurance as specified in this section, and obtain the Department's written approval of the assurance provided, within 90 days after receipt by both the owner or operator and the Department of a notice of cancellation of the bond from the surety.
(5) Under the terms of the bond, the surety shall become liable on the bond obligation when the owner or operator fails to perform as guaranteed by the bond. Following a determination by the Department that the owner or operator has failed to perform final closure in accordance with the approved closure plan and other permit requirements when required to do so, under the terms of the bond the surety shall perform final closure as guaranteed by the bond or shall deposit the amount of the penal sum into the standby trust fund. For facilities that require a RCRA permit, the determination shall be made pursuant to Health and Safety Code Section 25187.
(6) The penal sum of the bond shall be in an amount at least equal to the current closure cost estimate.
(7) Whenever the current closure cost estimate increases to an amount greater than the penal sum, the owner or operator, within 60 days after the increase, shall either cause the penal sum to be increased to an amount at least equal to the current closure cost estimate and submit evidence of such increase to the Department, or obtain other financial assurance as specified in this section. Whenever the current closure cost estimate decreases, the penal sum may be reduced to the amount of the current closure cost estimate following written approval from the Department.
(8) Under the terms of the bond, the surety may cancel the bond by sending notice of cancellation by certified mail to the owner or operator and to the Department. Cancellation shall not occur, however, during the 120 days beginning on the date of receipt of the notice of cancellation by both the owner or operator and the Department, as evidenced by the return receipts.
(9) The owner or operator may cancel the bond if the Department has given prior written consent. The Department will provide such written consent when:
(A) an owner or operator substitutes alternate financial assurance as specified in this section; or
(B) the Department releases the owner or operator from the requirements of this section in accordance with subsection (j) of this section.
(10) The surety shall not be liable for deficiencies in the performance of closure by the owner or operator after the Department releases the owner or operator from the requirements of this section in accordance with subsection (j) of this section.
(d) Closure letter of credit.
(1) An owner or operator may satisfy the requirements of this section by obtaining an irrevocable standby letter of credit which conforms to the requirements of this subsection and submitting the letter to the Department. An owner or operator of a new facility shall submit the letter of credit to the Department at least 60 days before the date on which hazardous waste is first received for transfer, treatment, storage or disposal. The letter of credit shall be effective before this initial receipt of hazardous waste. The issuing institution shall be an entity which has the authority to issue letters of credit and whose letter of credit operations are regulated and examined by a Federal or State agency.
(2) The wording of the letter of credit shall be identical to the wording specified in section 66264.151, subsection (d). The letter of credit shall contain original signatures and shall be accompanied by the documents specified in (3) and (4) of this subsection.
(3) An owner or operator who uses a letter of credit to satisfy the requirements of this section shall also establish a standby trust fund. Under the terms of the letter of credit, all amounts paid pursuant to a draft by the Department shall be deposited by the issuing institution directly into the standby trust fund in accordance with instructions from the Department. This standby trust fund shall meet the requirements of the trust fund specified in subsection (a) of this section, except that:
(A) an originally signed duplicate of the standby trust agreement shall be submitted to the Department with the letter of credit; and (continued)