SOLID WASTE PROCESSING AND DISPOSAL
(Rule 1200-01-07-.03, continued)
notify the operator in writing of any changes in the amount of financial assurance required (as established per subparagraph (b) of this paragraph). The operator must, within 60 days of receipt of that notice, file with the Commissioner any required additional financial assurance, subject to the provisions of part 3 of this subparagraph. Such additional financial assurance filed must also meet the requirements of this paragraph.
For facilities which are in operation and being developed according to a phased development plan, the operator may initially file financial assurance covering only closure and post-closure care of the parcel currently in operation and post-closure care of closed parcels. For facilities which are not yet in operation and are to be developed according to a phased development plan, the operator may initially file financial assurance covering only closure and post-closure care of the initial parcel to be operated.
For facilities being developed according to a phased development plan whose operators initially filed only partial financial assurance as provided in subpart (i) of this part, the operator must, at least 30 days prior to beginning operation of a parcel not covered by financial assurance on file with the Commissioner, file the required financial assurance for that parcel with the Commissioner.
Mechanisms of Financial Assurance - Following are acceptable financial assurance mechanisms:
Surety Bond - An operator may satisfy the requirements of subparagraph (c) of this paragraph by obtaining and filing a surety bond which conforms to the requirements of this part.
The surety company issuing the bond must be licensed to do business as a surety in Tennessee and must be among those listed as acceptable by the Commissioner.
The wording of the surety bond must be identical to the wording specified in part (l)1 of this paragraph.
Under the terms of the bond, the surety will become liable on the bond obligation when the operator fails to perform as guaranteed by the bond. Following a determination by the Commissioner that the operator has failed to so perform, under the terms of the bond the surety will perform final closure and post-closure care as guaranteed by the bond or will forfeit the amount of the penal sum, as provided in subparagraph (j) of this paragraph.
The penal sum of the bond must be in an amount at least equal to the amount of financial assurance required per subparagraph (b) of this paragraph.
Under the terms of the bond, the surety may cancel the bond by sending notice of cancellation by certified mail to the operator and to the Commissioner. Cancellation may not occur, however, during the 120 days beginning on the date of receipt of the notice of cancellation by both the operator and the Commissioner, as evidenced by the return receipts.
May, 2010 (Revised)