Section 22253 - CalRecycle - Insurance and Environmental Fund (California Code of Regulations)

§ 22253. CalRecycle - Insurance and Environmental Fund

(a) To be eligible to use this mechanism to demonstrate financial responsibility for compensating third parties for bodily injury and property damage, the operator shall fulfill the requirements of (a) through (e) of this section no later than July 2, 1992.

(b) The operator shall submit a signed certification to CalRecycle on form CalRecycle 110 (03/17), which is incorporated by reference; and

(c) The operator shall submit certification of coverage to demonstrate the establishment and maintenance of comprehensive general liability insurance coverage with limits in at least the amounts specified in Article 3 of Subchapter 2 of this Chapter. This insurance must conform to the requirements of § 22251 (a - d) and/or § 22252(a); and

(d) The operator shall demonstrate the establishment of an environmental liability fund, which shall be fully funded, as described, before July 2, 1997. This means that the operator shall make the initial payment as described in (d)(3) by July 2, 1992 and subsequent payments as described in section (d)(4) on July 1st of the following years: 1993, 1994, 1995, 1996, and 1997.

(1) The environmental liability fund shall have a trustee that is authorized to act as a trustee and whose trust operations are regulated and examined by a federal or state agency.

(2) The environmental liability fund shall be established by using form CalRecycle 111 (03/17), which is incorporated by reference.

(3) The funding of the environmental liability fund shall be initiated with a payment of $200,000 or a payment that is at least equal to the applicable aggregate liability coverage amount specified in Article 3 of Subchapter 2 of this Chapter, divided by 5, which is the maximum number of years in the pay-in period.

(4) On each anniversary date of July 1, the minimum payment shall be determined by this formula:

Minimum Payment = AC - CV / Y + 1

where AC is the aggregate coverage required, CV is the current value of the trust fund and Y is the number of years remaining in the pay-in period.

(5) The operator may accelerate payments into the environmental liability fund. However, the value of the environmental liability fund shall be maintained at no less than the value that the environmental fund would have, if payments were made as specified in (d)(3) and (d)(4).

(6) If the value of the environmental liability fund becomes greater than the total amount of the applicable aggregate liability coverage, the operator may request in writing that the CIWMB authorize the release of the excess funds. CalRecycle shall review the request within 90 days of receipt of the request. If any excess funds are verified, CalRecycle shall instruct the trustee to release the funds.

(e) The operator may substitute any alternate financial assurance mechanism(s), as identified in § 22227, for the Insurance and Environmental Fund mechanism.

(1. New section filed 6-18-97; operative 7-18-97 (Register 97, No. 25). 2. Amendment of section heading and section filed 2-25-2008; operative 2-25-2008 pursuant to Government Code section 11343.4(Register 2008, No. 9). 3. Change without regulatory effect amending section heading and subsections (b), (d)(2) and (d)(6) and amending forms CalRecycle (formerly CIWMB) 110 and 111 (incorporated by reference) filed 12-11-2017 pursuant to section 100, title 1, California Code of Regulations (Register 2017, No. 50).)

Note: Authority cited: Sections 40502 and 43040, Public Resources Code. Reference: Sections 43040 and 43103, Public Resources Code.

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