Section 332.260  Financial Surety Requirements

a)         The license applicant shall establish financial surety arrangements, prior to the Agency authorization of commencement of operations, to assure the availability of sufficient funds for decontaminating, decommissioning and reclaiming the source material milling facility and licensed site, as well as the stabilization and closure of the byproduct material disposal site and the long-term care payment.

b)         An acceptable surety arrangement may consist of cash or negotiable securities deposited with the Agency, irrevocable assignments of savings or certificates of deposit, or the deposit of an instrument executed by the applicant or licensee and a corporate surety or financial institution with the Agency designated as the beneficiary.  However, self insurance, or any arrangement that essentially constitutes self insurance (e.g., a contract with a State or federal agency) will not satisfy the surety requirement since this provides no additional assurance other than that which already exists through license requirements.  The value of the deposit shall be equal to or greater than the amount of the surety required by subsection (c).  Any surety arrangement must be available in Illinois subject to judicial process and execution in the event required for the purposes set forth in this Part.

c)         The amount of funds to be ensured by such surety arrangements shall be greater than or equal to the Agency approved cost estimates for:

1)         decontamination, decommissioning, restoration and reclamation of buildings and the licensed site;

2)         stabilization and closure of the disposal area; and

3)         the requirements of Section 332.270 for the long-term care payment.

d)         In establishing specific surety arrangements, the applicant's or licensee's cost estimates shall take into account the total costs that would be incurred if an independent contractor were hired to perform the work identified in subsections (c)(1) and (2).

e)         To avoid duplication and expense, the Agency will accept surety arrangements that have been consolidated with surety arrangements established to meet requirements of other agencies in Illinois for decontamination, reclamation, restoration and disposal, if the applicant demonstrates, in writing, that the surety provides the same or a greater degree of protection for the licensed site, provided that the arrangements are adequate to satisfy these requirements and that the portion of the surety that covers the decommissioning, decontamination, reclamation and stabilization of the site and the long-term care payment is specifically identified and committed for use in accomplishing these activities.

f)         The applicant's or licensee's surety arrangements will be reviewed annually by the Agency to assure that sufficient funds will be available for completion of the closure plan if the work was to be performed by an independent contractor.  The amount of surety shall be adjusted to recognize any increases or decreases resulting from inflation, changes in engineering plans, activities performed, and any other conditions affecting costs.  Regardless of whether closure is phased through the life of the operation or takes place at the end of operations, a portion of the surety shall be retained until final compliance with the closure plan is determined by the Agency.

g)         The term of the surety mechanism shall be open-ended, unless the licensee proposes another arrangement that provides an equivalent or greater level of assurance.  The surety instrument shall provide that the surety mechanism will not be cancelled unless the surety notifies both the Agency and the licensee at least 90 days prior to cancellation.  Proof of forfeiture shall not be necessary to collect the surety so that, in the event the licensee could not provide an acceptable replacement surety within the required time, the surety shall be automatically collected prior to its expiration or cancellation.

(Source:  Amended at 32 Ill. Reg. 16756, effective October 6, 2008)