Section 329 IAC 3.1-14-16 - Surety bond guaranteeing payment into a post-closure trust fund optionAuthority: IC 13-14-8; IC 13-22-2; IC 13-22-8-1; IC 13-22-9-7
Affected: IC 13-22
Sec. 16.
(a) An owner or operator may satisfy the requirements of section 14 of this rule by: (1) obtaining a surety bond that conforms to the requirements of this section; and(2) submitting the bond to the commissioner. The surety company issuing the bond must, at a minimum, be authorized to do business in Indiana and be among those listed as acceptable sureties on federal bonds in Circular 570* of the U.S. Department of the Treasury.
(b) The wording of the surety bond must be identical to the wording specified in section 27 of this rule.(c) The owner or operator who uses a surety bond to satisfy the requirements of section 14 of this rule also shall establish a standby trust fund. Under the terms of the bond, all payments must be deposited by the surety directly into the standby trust fund in accordance with instructions from the commissioner. The standby trust fund must meet the requirements specified in section 15 of this rule except the following: (1) An originally signed duplicate of the trust agreement must be submitted to the commissioner with the surety bond.(2) Until the standby trust fund is funded in accordance with the requirements of sections 14 through 15 of this rule, this section, and sections 17 through 21 of this rule, the following are not required by sections 14 through 15 of this rule, this section, and sections 17 through 21 of this rule: (A) Payments into the trust fund in accordance with section 15 of this rule.(B) Updating of Schedule A of the trust agreement in accordance with section 26 of this rule to reflect current post-closure cost estimates.(C) Annual valuations as required by the trust agreement.(D) Notices of nonpayment as required by the trust agreement.(d) The bond must guarantee that the owner or operator shall complete the following, as applicable: (1) Fund the standby trust fund in an amount equal to the penal sum of the bond before the beginning of final closure of the facility.(2) Fund the standby trust fund in an amount equal to the penal sum within fifteen (15) days after an: (A) administrative order to begin final closure, issued by the commissioner, becomes final; or(B) order to begin final closure is issued by a United States district court or other court of competent jurisdiction.(3) Provide alternate financial assurance in accordance with section 15 of this rule, this section, and sections 17 through 19 of this rule and obtain the commissioner's written approval of the assurance provided within ninety (90) days after receipt by both the owner or operator and the commissioner of a notice of cancellation of the bond from the surety.(e) Under the terms of the bond, the surety shall become liable on the bond obligation when the owner or operator fails to perform as guaranteed by the bond.(f) The penal sum of the bond must be in an amount at least equal to the current post-closure cost estimate except as provided in section 20 of this rule.(g) Whenever the current post-closure cost estimate increases to an amount greater than the penal sum, the owner or operator, within sixty (60) days after the increase, shall either: (1) cause the penal sum to be increased to an amount at least equal to the current post-closure cost estimate and submit evidence of such increase to the commissioner; or(2) obtain other financial assurance in accordance with section 15 of this rule, this section, and sections 17 through 19 of this rule to cover the increase. Whenever the current post-closure cost estimate decreases, the penal sum may be reduced to the amount of the current post-closure cost estimate following written approval by the commissioner.
(h) Under the terms of the bond, the surety may cancel the bond by sending notice of cancellation by certified mail to the owner or operator and to the commissioner. Cancellation may not occur during the one hundred twenty (120) days beginning on the date of receipt of the notice of cancellation by both the owner or operator and the commissioner as evidenced by the return receipts.(i) The owner or operator may cancel the bond if the commissioner has given prior written consent based on the receipt by the commissioner of evidence of alternate financial assurance in accordance with section 15 of this rule, this section, and sections 17 through 19 of this rule. *This document is available for viewing at https://www.fiscal.treasury.gov/surety-bonds/circular-570.html and may be obtained from the United States Department of the Treasury, Bureau of the Fiscal Service, Surety Bond Program, 3700 East West Highway, Room 6D22, Hyattsville, MD 20782.
Solid Waste Management Board; 329 IAC 3.1-14-16; filed Jan 24, 1992, 2:00 p.m.: 15 IR 956; errata filed Feb 6, 1992, 3:15 p.m.: 15 IR 1027; filed Apr 1, 1996, 11:00 a.m.: 19 IR 1981; readopted filed Jan 10, 2001, 3:25 p.m.: 24 IR 1535; filed Apr 5, 2001, 1:29 p.m.: 24 IR 2437Filed 5/11/2021, 12:38 p.m.: 20210609-IR-329140287FRA