NR 667.0143(6)(b)1.c.
c. If the chief financial officer's letter providing evidence of financial assurance includes financial data showing that the owner or operator satisfies par.
(a) 1. b. or
c. that are different from data in the audited financial statements referred to in subd.
1. b. or any other audited financial statement or data filed with the SEC, then a special report from the owner's or operator's independent certified public accountant to the owner or operator is required. The special report shall be based upon an agreed upon procedures engagement in accordance with professional auditing standards and shall describe the procedures performed in comparing the data in the chief financial officer's letter derived from the independently audited, year-end financial statements for the latest fiscal year with the amounts in such financial statements, the findings of that comparison and the reasons for any differences.
NR 667.0143(6)(b)1.d.
d. If the chief financial officer's letter provides a demonstration that the firm has assured for environmental obligations as provided in par.
(a) 2. b., then the letter shall include a report from the independent certified public accountant that verifies that all of the environmental obligations covered by a financial test have been recognized as liabilities on the audited financial statements, how these obligations have been measured and reported and that the tangible net worth of the firm is at least $10 million plus the amount of any guarantees provided.
NR 667.0143(6)(b)2.
2. The owner or operator of a new facility shall submit the items specified in subd.
1. to the department at least 60 days before placing waste in the facility.
NR 667.0143(6)(b)3.
3. After the initial submission of items specified in subd.
1., the owner or operator shall send updated information to the department within 90 days following the close of the owner or operator's fiscal year. The department may provide up to an additional 45 days for an owner or operator who can demonstrate that 90 days is insufficient time to acquire audited financial statements. The updated information shall consist of all items specified in subd.
1. NR 667.0143(6)(b)4.
4. The owner or operator is no longer required to submit the items specified in this paragraph or comply with the requirements of this section if either:
NR 667.0143(6)(b)4.a.
a. The owner or operator substitutes alternate financial assurance as specified in this section that is not subject to these recordkeeping and reporting requirements.
NR 667.0143(6)(b)4.b.
b. The department releases the owner or operator from the requirements of this section, according to sub.
(10).
NR 667.0143(6)(b)5.
5. An owner or operator who no longer meets the requirements of par.
(a) may not use the financial test to demonstrate financial assurance. Instead an owner or operator who no longer meets the requirements of par.
(a), shall:
NR 667.0143(6)(b)5.a.
a. Send notice to the department of intent to establish alternate financial assurance as specified in this section. The owner or operator shall send this notice by certified mail within 90 days following the close the owner or operator's fiscal year for which the year-end financial data show that the owner or operator no longer meets the requirements of this section.
NR 667.0143(6)(b)5.b.
b. Provide alternative financial assurance within 120 days after the end of such fiscal year.
NR 667.0143(6)(b)6.
6. The department may, based on a reasonable belief that the owner or operator may no longer meet the requirements of par.
(a), require at any time the owner or operator to provide reports of its financial condition in addition to or including current financial test documentation as specified in this paragraph. If the department finds that the owner or operator no longer meets the requirements of par.
(a), the owner or operator shall provide alternate financial assurance that meets the requirements of this section.
NR 667.0143(7)(a)
(a) An owner or operator may meet
the requirements of this section by obtaining a written guarantee. The guarantor shall be the direct or higher tier parent corporation of the owner or operator, a firm whose parent corporation is also the parent corporation of the owner or operator or a firm with a substantial business relationship with the owner or operator. The guarantor shall meet the requirements for owners or operators in sub.
(6) and shall comply with the terms of the guarantee. The wording of the guarantee shall be identical to the wording in s.
NR 664.0151 (8). The certified copy of the guarantee shall accompany the letter from the guarantor's chief financial officer and accountants' opinions. If the guarantor's parent corporation is also the parent corporation of the owner or operator, the letter from the guarantor's chief financial officer shall describe the value received in consideration of the guarantee. If the guarantor is a firm with a substantial business relationship with the owner or operator, this letter shall describe this substantial business relationship and the value received in consideration of the guarantee.
NR 667.0143(7)(b)
(b) For a new facility, the guarantee shall be effective and the guarantor shall submit the items in par.
(a) and the items specified in sub.
(6) (b) 1. to the department at least 60 days before the owner or operator places waste in the facility.
NR 667.0143(7)(c)1.
1. If the owner or operator fails to perform closure at a facility covered by the guarantee, the guarantor shall either:
NR 667.0143(7)(c)1.b.
b. Establish a fully funded trust fund as specified in sub.
(1) (a) in the name of the owner or operator (payment guarantee)
NR 667.0143(7)(c)2.
2. The guarantee shall remain in force for as long as the owner or operator is required to comply with the applicable financial assurance requirements of this subchapter unless the guarantor sends prior notice of cancellation by certified mail to the owner or operator and to the department. Cancellation may not occur, however, during the 120 days beginning on the date of receipt of the notice of cancellation by both the owner or operator and the department as evidenced by the return receipts.
NR 667.0143(7)(c)3.
3. If notice of cancellation is given, the owner or operator shall, within 90 days following receipt of the cancellation notice by the owner or operator and the department, obtain alternate financial assurance and submit documentation for that alternate financial assurance to the department. If the owner or operator fails to provide alternate financial assurance and obtain the written approval of such alternative assurance from the department within the 90-day period, the guarantor shall provide that alternate assurance in the name of the owner or operator and submit the necessary documentation for the alternative assurance to the department within 120 days of the cancellation notice.
NR 667.0143(7)(c)4.
4. If a corporate guarantor no longer meets the requirements of sub.
(6) (a), the owner or operator shall, within 90 days, obtain alternative assurance and submit the assurance to the department for approval. If the owner or operator fails to provide alternate financial assurance within the 90-day period, the guarantor shall provide that alternate assurance within the next 30 days and submit it to the department for approval.
NR 667.0143(7)(c)5.
5. The guarantor is no longer required to meet the requirements of this section when either:
NR 667.0143(7)(c)5.a.
a. The owner or operator substitutes alternate financial assurance as specified in this section.
NR 667.0143(8)
(8) Use of multiple financial mechanisms. An owner or operator may use more than one mechanism at a particular facility to satisfy the requirements of this section. The acceptable mechanisms are trust funds, surety bonds guaranteeing payment into a trust fund, letters of credit, insurance, the financial test, and the guarantee, except owners or operators cannot combine the financial test with the guarantee. The mechanisms shall be as specified in subs.
(1),
(2),
(4),
(5),
(6), and
(7) respectively, except it is the combination of mechanisms rather than a single mechanism that shall provide assurance for an amount at least equal to the cost estimate. If an owner or operator uses a trust fund in combination with a surety bond or letter of credit, the owner or operator may use the trust fund as the standby trust for the other mechanisms. A single trust fund may be established for 2 or more mechanisms. The department may use any or all of the mechanisms to provide for closure of the facility.
NR 667.0143(9)
(9) Use of a financial mechanism for multiple facilities. An owner or operator may use a financial mechanism for multiple facilities, as specified in s.
NR 664.0143 (8).
NR 667.0143(10)
(10) Release of the owner or operator from the requirements of this section. Within 60 days after receiving certifications from the owner or operator and an independent registered professional engineer that final closure has been completed in accordance with the approved closure plan, the department shall notify the owner or operator in writing that the owner or operator is no longer required by this section to maintain financial assurance for final closure of the facility, unless the department has reason to believe that final closure has not been completed in accordance with the approved closure plan. The department shall provide the owner or operator with a detailed written statement of any such reasons to believe that closure has not been conducted in accordance with the approved closure plan.
NR 667.0143 History
History: CR 16-007: cr.
Register July 2017 No. 739, eff. 8-1-17; correction in (7) (c) 5. b. made under s.
35.17, Stats.,
Register July 2017 No. 739.
NR 667.0147(1)(1)
Coverage for sudden accidental occurrences. An owner or operator of a hazardous waste treatment or storage facility, or a group of such facilities, shall demonstrate financial responsibility for bodily injury and property damage to third parties caused by sudden accidental occurrences arising from operations of the facility or group of facilities. The owner or operator shall have and maintain liability coverage for sudden accidental occurrences in the amount of at least one million dollars per occurrence with an annual aggregate of at least $2,000,000, exclusive of legal defense costs. This liability coverage may be demonstrated as specified in pars.
(a) to
(g):
NR 667.0147(1)(a)
(a)
Trust fund for liability coverage. An owner or operator may meet the requirements of this section by obtaining a trust fund for liability coverage as specified in s.
NR 664.0147 (10).
NR 667.0147(1)(b)
(b)
Surety bond for liability coverage. An owner or operator may meet the requirements of this section by obtaining a surety bond for liability coverage as specified in s.
NR 664.0147 (9).
NR 667.0147(1)(c)
(c)
Letter of credit for liability coverage. An owner or operator may meet the requirements of this section by obtaining a letter of credit for liability coverage as specified in s.
NR 664.0147 (8).
NR 667.0147(1)(d)
(d)
Insurance for liability coverage. An owner or operator may meet the requirements of this section by obtaining liability insurance as specified in s.
NR 664.0147 (1) (a).
NR 667.0147(1)(e)
(e)
Financial test for liability coverage. An owner or operator may meet the requirements of this section by passing a financial test as specified in sub.
(6).
NR 667.0147(1)(f)
(f)
Guarantee for liability coverage. An owner or operator may meet the requirements of this section by obtaining a guarantee as specified in sub.
(7).
NR 667.0147(1)(g)
(g)
Combination of mechanisms. An owner or operator may demonstrate the required liability coverage through the use of combinations of mechanisms as allowed by s.
NR 664.0147 (1) (f).
NR 667.0147(1)(h)
(h) An owner or operator shall notify the department in writing within 30 days whenever any of the following occurs:
NR 667.0147(1)(h)1.
1. A claim results in a reduction in the amount of financial assurance for liability coverage provided by a financial instrument authorized in pars.
(a) to
(g).
NR 667.0147(1)(h)2.
2. A certification of valid claim for bodily injury or property damages caused by a sudden accidental occurrence arising from the operation of a hazardous waste treatment, storage, or disposal facility is entered between the owner or operator and third-party claimant for liability coverage under pars.
(a) to
(g).
NR 667.0147(1)(h)3.
3. A final court order establishing a judgment for bodily injury or property damage caused by a sudden accidental occurrence arising from the operation of a hazardous waste treatment, storage, or disposal facility is issued against the owner or operator or an instrument that is providing financial assurance.
NR 667.0147(5)
(5) Period of coverage. Within 60 days after receiving certifications from the owner or operator and an independent registered professional engineer that final closure has been completed according to the approved closure plan, the department shall notify the owner or operator in writing that the owner or operator is no longer required by this section to maintain liability coverage from that facility, unless the department has reason to believe that closure has not been in accordance with the approved closure plan.
NR 667.0147(6)
(6) Financial test for liability coverage. An owner or operator that satisfies the requirements of this subsection may demonstrate financial assurance for liability up to the amount specified in this subsection.
NR 667.0147(6)(a)1.1. If using the financial test for only liability coverage, the owner or operator shall have tangible net worth greater than the sum of the liability coverage to be demonstrated by this test plus $10,000,000.
NR 667.0147(6)(a)2.
2. The owner or operator shall have assets located in the United States amounting to at least the amount of liability covered by this financial test.
NR 667.0147(6)(a)3.
3. An owner or operator who is demonstrating coverage for liability and any other environmental obligations, including closure under s.
NR 667.0143 (6), through a financial test shall meet the requirements of s.
NR 667.0143 (6).
NR 667.0147(6)(b)1.
1. The owner or operator shall submit the following items to the department:
NR 667.0147(6)(b)1.a.
a. A letter signed by the owner's or operator's chief financial officer that provides evidence demonstrating that the firm meets the conditions of par.
(a) 1. and
2. If the firm is providing only liability coverage through a financial test for a facility or facilities with a license under this chapter, the letter should use the wording in s.
NR 667.0151 (2). If the firm is providing only liability coverage through a financial test for facilities regulated under this chapter and also ch.
NR 664 or
665, it shall use the letter in s.
NR 664.0151 (7). If the firm is providing liability coverage through a financial test for a facility or facilities with a license under this chapter, and it assures closure costs or any other environmental obligations through a financial test, it shall use the letter in s.
NR 667.0151 (1) for the facilities issued a license under this chapter.
NR 667.0147(6)(b)1.b.
b. A copy of the independent certified public accountant's unqualified opinion of the owner's or operator's financial statements for the latest completed fiscal year. To be eligible to use the financial test, the owner's or operator's financial statements shall receive an unqualified opinion from the independent certified public accountant. An adverse opinion, disclaimer of opinion or other qualified opinion will be cause for disallowance, with the potential exception for qualified opinions provided in the next sentence. The department may evaluate qualified opinions on a case-by-case basis and allow use of the financial test in cases where the department deems that the matters which form the basis for the qualification are insufficient to warrant disallowance of the test. If the department does not allow use of the test, the owner or operator shall provide alternate financial assurance that meets the requirements of this section within 30 days after the notification of disallowance.
NR 667.0147(6)(b)1.c.
c. If the chief financial officer's letter providing evidence of financial assurance includes financial data showing that the owner or operator satisfies pars.
(a) 1. and
2. that are different from data in the audited financial statements referred to in subd.
1. b. or any other audited financial statement or data filed with the Securities and Exchange Commission, then a special report from the owner's or operator's independent certified public accountant to the owner or operator is required. The special report shall be based upon an agreed upon procedures engagement according to professional auditing standards and shall describe the procedures performed in comparing the data in the chief financial officer's letter derived from the independently audited, year-end financial statements for the latest fiscal year with the amounts in such financial statements, the findings of that comparison, and the reasons for any differences
NR 667.0147(6)(b)2.
2. The owner or operator of a new facility shall submit the items specified in subd.
1. to the department at least 60 days before placing waste in the facility.
NR 667.0147(6)(b)3.
3. After the initial submission of items specified in subd.
1., the owner or operator shall send updated information to the department within 90 days following the close of the owner or operator's fiscal year. The department may provide up to an additional 45 days for an owner or operator who can demonstrate that 90 days is insufficient time to acquire audited financial statements. The updated information shall consist of all items specified in subd.
1. NR 667.0147(6)(b)4.
4. The owner or operator is no longer required to submit the items specified in this paragraph or comply with the requirements of this paragraph when either:
NR 667.0147(6)(b)4.a.
a. The owner or operator substitutes alternate financial assurance as specified in this section that is not subject to these recordkeeping and reporting requirements.
NR 667.0147(6)(b)5.
5. An owner or operator who no longer meets the requirements of par.
(a) may not use the financial test to demonstrate financial assurance. An owner or operator who no longer meets the requirements of par.
(a) shall:
NR 667.0147(6)(b)5.a.
a. Send notice to the department of intent to establish alternate financial assurance as specified in this section. The owner or operator shall send this notice by certified mail within 90 days following the close of the owner or operator's fiscal year for which the year-end financial data show that the owner or operator no longer meets the requirements of this section.
NR 667.0147(6)(b)5.b.
b. Provide alternative financial assurance within 120 days after the end of such fiscal year.
NR 667.0147(6)(b)6.
6. The department may, based on a reasonable belief that the owner or operator may no longer meet the requirements of par.
(a), require at any time the owner or operator to provide reports of its financial condition in addition to or including current financial test documentation as specified in this paragraph. If the department finds that the owner or operator no longer meets the requirements of par.
(a), the owner or operator shall provide alternate financial assurance that meets the requirements of this section.
NR 667.0147(7)(a)(a) Subject to par.
(b) of this section, an owner or operator may meet the requirements of this section by obtaining a written guarantee, hereinafter referred to as guarantee. The guarantor shall be the direct or higher-tier parent corporation of the owner or operator, a firm whose parent corporation is also the parent corporation of the owner or operator or a firm with a substantial business relationship with the owner or operator. The guarantor shall meet the requirements for owners or operators in sub.
(6) (a) and
(b). The wording of the guarantee shall be identical to the wording specified in s.
NR 664.0151 (8) (b). A certified copy of the guarantee shall accompany the items sent to the department as specified in sub.
(6) (b). One of these items shall be the letter from the guarantor's chief financial officer. If the guarantor's parent corporation is also the parent corporation of the owner or operator, this letter shall describe the value received in consideration of the guarantee. If the guarantor is a firm with a “substantial business relationship” with the owner or operator, this letter shall describe this “substantial business relationship” and the value received in consideration of the guarantee. If the owner or operator fails to satisfy a judgment based on a determination of liability for bodily injury or property damage to third parties caused by sudden accidental occurrences arising from the operation guarantee or fails to pay an amount agreed to in settlement of claims arising from or alleged to arise from such injury or damage, the guarantor shall do so up to the limits of coverage.
NR 667.0147(7)(b)1.1. In the case of corporations incorporated in the United States, a guarantee may be used to satisfy the requirements of this section only if the Attorneys General or Insurance Commissioners of the state in which the guarantor is incorporated, and each state in which a facility covered by the guarantee is located, have submitted a written statement to the department that a guarantee executed as described in this section and s.
NR 664.0151 (8) (b) is a legally valid and enforceable obligation in that state.
NR 667.0147(7)(b)2.
2. In the case of corporations incorporated outside the United States, a guarantee may be used to satisfy the requirements of this section only if:
NR 667.0147(7)(b)2.a.
a. The non-U.S. corporation has identified a registered agent for service of process in each state in which a facility covered by the guarantee is located and in the state in which it has its principal place of business.
NR 667.0147(7)(b)2.b.
b. The Attorney General or Insurance Commissioner of each state in which a facility covered by the guarantee is located and the state in which the guarantor corporation has its principal place of business, has submitted a written statement to the department that a guarantee executed as described in this section and s.
NR 664.0151 (8) (b) is a legally valid and enforceable obligation in that state.
NR 667.0147 History
History: CR 16-007: cr.
Register July 2017 No. 739, eff. 8-1-17; correction in (6) (b) 1. a., c. made under s.
35.17, Stats., and correction in (6) (b) 4. b., (7) made under s.
13.92 (4) (b) 7, Stats.,
Register July 2017 No. 739; correction in (6) (b) 4. b. made under s.
13.92 (4) (b) 7., Stats.,
Register December 2018 No. 756;
CR 19-082: am. (6) (b) 4. b. Register August 2020 No. 776, eff. 9-1-20. NR 667.0148
NR 667.0148 Incapacity of owners or operators, guarantors or financial institutions. NR 667.0148(1)
(1) An owner or operator shall notify the department by certified mail of the commencement of a voluntary or involuntary proceeding under Title 11 of the United States Code, naming the owner or operator as debtor, within 10 days after commencement of the proceeding. A guarantor of a corporate guarantee as specified in ss.
NR 667.0143 (7) and
667.0147 (7) shall make such a notification if the guarantor is named as debtor, as required under the terms of the corporate guarantee (s.
NR 664.0151 (8)).
NR 667.0148(2)
(2) An owner or operator who fulfills the requirements of s.
NR 667.0143 or
667.0147 by obtaining a trust fund, surety bond, letter of credit or insurance policy shall be deemed to be without the required financial assurance or liability coverage in the event of bankruptcy of the trustee or issuing institution, or a suspension or revocation of the authority of the trustee institution to act as trustee or of the institution issuing the surety bond, letter of credit or insurance policy to issue the instruments. The owner or operator shall establish other financial assurance or liability coverage within 60 days after such an event.
NR 667.0148 History
History: CR 16-007: cr.
Register July 2017 No. 739, eff. 8-1-17.
NR 667.0151(1)(1)
The chief financial officer of an owner or operator of a facility with a standardized license who uses a financial test to demonstrate financial assurance for that facility shall complete a letter as specified in s.
NR 667.0143 (6). The letter shall be worded as follows, except that instructions in brackets are to be replaced with the relevant information and the brackets deleted:
I am the chief financial officer of [name and address of firm]. This letter is in support of this firm's use of the financial test to demonstrate financial assurance for closure costs, as specified in subch. H of ch. NR 667
, Wis. Adm. Code. This firm qualifies for the financial test on the basis of having [insert “a current rating for its senior unsecured debt of AAA, AA, A, or BBB as issued by Standard and Poor's or Aaa, Aa, A, or Baa as issued by Moody's Investors Services” or “a ratio of less than 1.50 comparing total liabilities to net worth” or “a ratio of greater than 0.10 comparing the sum of net income plus depreciation, depletion and amortization, minus $10 million, to total liabilities.”] This firm [insert “
is required” or “is not required”] to file a Form 10K with the Securities and Exchange Commission (SEC) for the latest fiscal year. The fiscal year of this firm ends on [month, day]. The figures for the following items marked with an asterisk are derived from this firm's independently audited, year-end financial statements for the latest completed fiscal year, ended [date]. [If this firm qualifies on the basis of its bond rating, fill in the requested information: “This firm has a rating of its senior unsecured debt of” [insert the bond rating] “from” [insert “Standard and Poor's” or “Moody's”]. Complete Line 1. Total Liabilities below and then skip the remaining questions in the next section and resume completing the form at the section entitled Obligations Covered by a Financial Test or Corporate Guarantee.] [If this firm qualifies for the financial test on the basis of its ratio of liabilities to net worth, or sum of income, depreciation, depletion and amortization to net worth, please complete the following section.]
- See PDF for table 
[If the above figures are taken directly from the most recent audited financial statements for this firm insert “The above figures are taken directly from the most recent audited financial statements for this firm.” If they are not, insert “The following items are not taken directly from the firms most recent audited financial statements” [insert the numbers of the items and attach an explanation of how they were derived.]
[If you did not answer Yes to either of these two questions, you cannot use the financial test and need not complete this letter. Instead, you shall notify the department for the facility that you intend to establish alternate financial assurance as specified in s.
NR 667.0143. The owner or operator shall send this notice by certified mail within 90 days following the close of the owner or operator's fiscal year for which the year-end financial data show that the owner or operator no longer meets the requirements of this section. The owner or operator shall also provide alternative financial assurance within 120 days after the end of such fiscal year.]
Obligations Covered by a Financial Test or Corporate Guarantee
[On the following lines list all obligations that are covered by a financial test or a corporate guarantee extended by your firm. You may add additional lines and leave blank entries that do not apply to your situation.]
-
See PDF for table
Any financial assurance required under, or as part of an action undertaken under, the Comprehensive Environmental Response, Compensation and Liability Act.
- See PDF for table
Any other environmental obligations that are assured through a financial test.
- See PDF for table
[You must be able to answer Yes to both of these questions to use the financial test for this facility.]
I hereby certify that the wording of this letter is identical to the wording specified in s.
NR 667.0151 as such rules were constituted on the date shown immediately below.
[Signature] _________________________
[Name] ____________________________
[Title] _____________________________
[Date] ____________________________
