§ 22228. CIWMB -Acceptable Mechanisms and Combination of Mechanisms. (T14:Section17258.74,18233,18283)
(a) Subject to the limitations and conditions of ¶(b) through ¶(l), an operator shall use any one, or any combination of mechanisms as described in Article 2 of this Subchapter:
(1) § 22240, Trust Fund;
(2) § 22241, Enterprise Fund;
(3) § 22242, Government Securities;
(4) § 22243, Letter of Credit;
(5) § 22244, Surety Bond;
(6) § 22245, Pledge of Revenue;
(7) § 22246, Financial Means Test;
(8) § 22247, Guarantee;
(9) § 22248, Closure and/or Postclosure Maintenance and/or Reasonably Foreseeable Corrective Action Costs Insurance;
(10) § 22249, Local Government Financial Test;
(11) § 22249.5, Local Government Guarantee;
(12) § 22250, Federal Certification;
(13) § 22251, Liability Insurance;
(14) § 22252, Self-Insurance and Risk Management;
(15) § 22253, Insurance and Environmental Fund; and
(16) § 22254, State Approved Mechanism.
(b) Any mechanism(s) used to demonstrate financial responsibility shall be updated within 60 days after changes are made in the amount of any current closure or postclosure cost estimate or third party liability coverage requirement or corrective action cost estimate covered by the mechanism(s).
(c) If a combination of mechanisms as described in Article 2 of this Subchapter are chosen, the operator shall designate one mechanism as "primary" and all others as "excess" coverage.
(d) If an operator combines a trust fund and/or an enterprise fund with any other mechanism to cover closure costs and/or postclosure maintenance costs and/or third party operating liability coverage requirements and/or corrective action costs, the operator may only use the fund buildup authorized by § 22225 and/or § 22226, for the portion of closure and/or postclosure maintenance costs and/or corrective action costs covered by the trust fund and/or enterprise fund.
(e) The enterprise fund, government securities, local government financial test, and self-insurance and risk management mechanisms are acceptable only for disposal facilities operated by government agencies. A local government guarantee and a pledge of revenue may be used by an operator or provider of financial assurances that is a government agency for a disposal facility to demonstrate financial responsibility for postclosure maintenance and/or corrective actions.
(f) An operator shall not combine a performance bond or a local government guarantee with any other mechanism(s) for closure, for postclosure maintenance, or for corrective action.
(g) The financial means test and guarantee mechanisms are acceptable only for disposal facilities operated by private firms. A private operator may combine a financial means test with a guarantee only if, for the purpose of meeting the requirements of the financial means test, the financial statements of the operator are not consolidated with the financial statements of the guarantor.
(h) The insurance and environmental fund mechanism shall not be combined with any other mechanisms identified in ¶(a).
(i) The Federal Certification mechanism provided in § 22250 shall only be used by federal entities.
(j) A government agency may act as a provider of financial assurance for a disposal facility by using a pledge of revenue to demonstrate financial responsibility for postclosure maintenance on behalf of a private operator, if either:
(1) The agency owns the facility; or
(2) The agency is the rate setting authority and has control of the waste stream in the jurisdiction where the disposal facility is located.
(k) A government agency may provide a local government guarantee for a disposal facility of another government agency or private company.(1. New section filed 6-18-97; operative 7-18-97 (Register 97, No. 25). 2. Editorial correction of Note (Register 98, No. 48). 3. New subsections (a)(10) and (a)(11), subsection renumbering, amendment of subsections (e) and (f), new subsection (k) and amendment of Note filed 11-23-98; operative 12-23-98 (Register 98, No. 48). 4. Amendment of subsections (a) and (f) filed 5-9-2002; operative 6-8-2002 (Register 2002, No. 19).)
Note: Authority cited: Sections 40502, 43040 and 43601.5, Public Resources Code. Reference: Sections 43040, 43103 and 43500- 43610.1, Public Resources Code; Part 258.74(f) and (h), Title 40, Code of Federal Regulations.
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