SOLID WASTE PROCESSING AND DISPOSAL
(Rule 1200-01-07-.03, continued)
(viii) The Commissioner will return the letter of credit to the issuing institution for termination when:
The insurance policy must be issued for a face amount at least equal to the current closure and/or post-closure cost estimate, except as provided in subparagraph (e) of this subparagraph. The term “face amount” means the total amount the insurer is obligated to pay under the policy. Actual payments by the insurer will not change the face amount, although the insurer’s future liability will be lowered by the amount of the payments.
The insurance policy must guarantee that funds will be available to close the facility whenever final closure occurs and to provide post-closure care requirements. The policy must also guarantee that during the period of final closure and post-closure, the insurer will be responsible for paying out funds, up to an amount equal to the face amount of the policy, upon the direction of the Commissioner, to such party or parties as the Commissioner specifies.
After beginning partial or final closure and during post-closure, an owner or operator may request reimbursements for closure expenditures by submitting itemized bills to the Commissioner. The owner or operator may request reimbursement for partial closure only if the remaining value of the policy is sufficient to cover the maximum cost of closing the facility over its remaining operating life and to cover the cost of post-closure care requirements. Within 60 days after receiving bills for closure activities, the Commissioner will instruct the insurer to make reimbursements in such amounts as the Commissioner specifies in writing, if the Commissioner determines that the partial or final closure expenditures are in accordance with the approved closure and/or post-closure plan or otherwise justified. If the Commissioner has reason to believe that the maximum cost of closure over the remaining life of the facility and the cost of post-closure will be significantly greater than the face amount of the policy, he may withhold reimbursements of such amounts as he deems prudent until he determines that the owner or operator is no longer required to maintain financial assurance for final closure and/or post-closure care of the facility. If the Commissioner does not instruct the insurer to make such reimbursements,
May, 2010 (Revised)
An owner or operator substitutes alternate financial assurance as specified in this subparagraph; or
The Commissioner releases the owner or operator from the requirements of this paragraph.
Closure and/or post-closure insurance. An owner or operator may satisfy the requirements of subparagraph (c) of this paragraph by obtaining insurance which conforms to the requirements of this part and filing a certificate of such insurance. At a minimum, the insurer must be licensed to transact the business of insurance, or eligible to provide insurance as an excess or surplus lines insurer in the State of Tennessee and have an A. M. Best rating of at least A or A- or have special approval from the Commissioner.
The wording of the certificate of insurance must be worded as required
at is to
subparagraph (l) of this subject to the review acceptance as a financial
The wording of the policy itself
and approval of the assurance mechanism.