5 Colo. Code Regs. § 1002-66.5
Current through Register Vol. 47, No. 20, October 25, 2024
Section 5 CCR 1002-66.5 - TRUST FUND CRITERIAA permittee or applicant may satisfy the financial assurance requirements of subsection 61.13 of Regulation No. 61 by establishing a trust fund that conforms to the requirements of section 66.5 and submitting the trust agreement to the Division. The trustee must be an entity which has the authority to act as a trustee and its trust operations must be regulated and examined by a federal or state agency.
(1) The trustee, to be validated by the comptroller or banking commission, shall be the trust division of a federal or state chartered bank with capital and surplus of not less than $10,000,000, selected by the operator and acceptable to the Division. Said bank must be located and legally chartered to operate in one of the fifty (50) states. The trustee shall direct the investment of funds in the trust, using the standard of care of a fiduciary. No funds shall be released, disbursed, or transferred by the trustee from this trust without the express written authorization of the Division.(2) The trust agreement must be effective as of the date of issuance.(3) The wording of the trust agreement must be identical to the wording specified for a trust agreement in Appendix B, and no changes are allowed without Division approval. The trust agreement must be accompanied by a formal certification of acknowledgment. (4) Reimbursements- If the value of the trust fund is greater than the closure costs, the permittee may submit a written request with appropriate documentation justifying the request to the Division for the release of the amount in excess of the closure costs. (a) If the Division concurs with the accuracy of the justification, within sixty (60) days after receiving a request from the permittee for release of trust funds, the Division will instruct the trustee to release to the permittee the amount in the trust fund in excess of closure costs.(b) If the permittee substitutes other financial assurance that meets the requirements of subsections 61.13 -(iv) of Regulation No. 61 for all or part of the trust fund, the permittee may submit a written request to the Division for release of the amount in excess of the closure costs in the trust fund covered by another, approved financial assurance instrument(s).(c) After beginning partial or final closure, post-closure, and/or corrective action care of a facility(ies), a permittee may request reimbursements for closure, post-closure, and/or corrective action care expenditures by submitting itemized receipts to the Division. (i) The permittee may request reimbursements for partial or final closure, post-closure, and/or corrective actions only if the remaining value of the trust fund is sufficient to cover closure costs for the operation.(ii) Within sixty (60) days after receiving receipts for partial or final closure, post-closure, and/or corrective action care, the Division will instruct the trustee to make reimbursements in such amounts as the Division specifies in writing if the Division determines that the expenditures are in accordance with the approved financial assurance plan, or otherwise justified.(iii) If the Division has reason to believe that the closure costs over the remaining life of the operation will be significantly greater than the face amount of the trust fund, it may withhold reimbursements of such amounts as it deems prudent until it determines that the permittee is no longer required to maintain financial assurance for final closure of the operation. If the Division does not instruct the trustee to make such reimbursements, it will provide the permittee with a detailed written statement of reasons.(5) The Division shall agree to termination of a trust fund when the provisions of subsection 61.13 of Regulation No. 61 have been satisfied. (6) A trust fund must provide that the trustee waives all rights of set off or liens against the trust fund.