§ 130A-295.04. Financial responsibility requirements for applicants for a permit and permit holders for hazardous waste facilities. - North Carolina Statutes

§ 130A‑295.04. Financial responsibility requirements for applicants for a permit and permitholders for hazardous waste facilities.

(a)        In addition to anyother financial responsibility requirements for solid waste managementfacilities under this Part, the applicant for a permit or a permit holder for ahazardous waste facility shall establish financial assurance that will ensurethat sufficient funds are available for facility closure, post‑closuremaintenance and monitoring, any corrective action that the Department mayrequire, and to satisfy any potential liability for sudden and nonsuddenaccidental occurrences, even if the applicant or permit holder becomesinsolvent or ceases to reside, be incorporated, do business, or maintain assetsin the State.

(b)        To establishsufficient availability of funds under this section, the applicant for a permitor a permit holder for a hazardous waste facility may use insurance, financialtests, third‑party guarantees by persons who can pass the financial test,guarantees by corporate parents who can pass the financial test, irrevocableletters of credit, trusts, surety bonds, or any other financial device, or anycombination of the foregoing, shown to provide protection equivalent to thefinancial protection that would be provided by insurance if insurance were theonly mechanism used.

(c)        The applicant for apermit or a permit holder for a hazardous waste facility, and any parent,subsidiary, or other affiliate of the applicant, permit holder, or parent,including any joint venturer with a direct or indirect interest in theapplicant, permit holder, or parent, shall be a guarantor of payment forclosure, post‑closure maintenance and monitoring, any corrective actionthat the Department may require, and to satisfy any potential liability forsudden and nonsudden accidental occurrences arising from the operation of thehazardous waste facility.

(d)        In addition to anyother financial assurance requirements for hazardous waste managementfacilities under this section, an applicant for a permit or a permit holder fora commercial hazardous waste facility shall establish financial assurance thatwill ensure that sufficient funds are available for corrective action and foroff‑site screening for potential migration of contaminants in the eventof a release of hazardous waste or hazardous waste constituents into theenvironment in an amount approved by the Department. The applicant for a permitor a permit holder may not use a financial test or captive insurance toestablish financial assurance under this subsection.

(e)        The Department mayrequire an applicant for a permit for a hazardous waste facility to providecost estimates for facility closure, post‑closure maintenance andmonitoring, and any corrective action that the Department may require to theDepartment. The Department may require an applicant for a permit for acommercial hazardous waste facility to provide cost estimates for off‑sitescreening for potential migration of contaminants in the event of a release ofhazardous waste or hazardous waste constituents into the environment.

(f)         Assets used tomeet the financial assurance requirements of this section shall be in a formthat will allow the Department to readily access funds for the purposes set outin this section. Assets used to meet financial assurance requirements of thissection shall not be accessible to the permit holder except as approved by theDepartment.

(g)        The Department mayprovide a copy of any filing that an applicant for a permit or a permit holderfor a hazardous waste facility submits to the Department to meet the financialresponsibility requirements under this section to the State Treasurer. TheState Treasurer shall review the filing and provide the Department with awritten opinion as to the adequacy of the filing to meet the purposes of thissection, including any recommended changes.

(h)        In order tocontinue to hold a permit for a hazardous waste facility, a permit holder mustmaintain financial responsibility as required by this Part and must provide anyinformation requested by the Department to establish that the permit holdercontinues to maintain financial responsibility.

(i)         An applicant for apermit or a permit holder for a hazardous waste facility shall satisfy theDepartment that the applicant or permit holder has met the financialresponsibility requirements of this Part before the Department is required tootherwise review the application.

(j)         The Commission mayadopt rules regarding financial responsibility in order to implement this section.(2007‑107,s. 1.1(a))