NR 664.0142(1)(1)The owner or operator shall have a detailed written estimate, in current dollars, of the cost of closing the facility in accordance with the requirements in ss. NR 664.0111 to 664.0115 and applicable closure requirements in ss. NR 664.0178, 664.0197, 664.0228, 664.0258, 664.0310, 664.0351, 664.0601 to 664.0603 and 664.1102.
NR 664.0142(1)(a)(a) The estimate shall equal the cost of final closure at the point in the facility’s active life when the extent and manner of its operation would make closure the most expensive, as indicated by its closure plan (see s. NR 664.0112 (2)).
NR 664.0142(1)(b)(b) The closure cost estimate shall be based on the costs to the owner or operator of hiring a third party to close the facility. A third party is a party who is neither a parent corporation nor a subsidiary of the owner or operator. The owner or operator may use costs for on-site disposal if the owner or operator can demonstrate that on-site disposal capacity will exist at all times over the life of the facility.
NR 664.0142(1)(c)(c) The closure cost estimate may not incorporate any salvage value that may be realized with the sale of hazardous wastes, or non-hazardous wastes if applicable under s. NR 664.0113 (4), facility structures or equipment, land or other assets associated with the facility at the time of partial or final closure.
NR 664.0142(1)(d)(d) The owner or operator may not incorporate a zero cost for hazardous wastes, or non-hazardous wastes if applicable under s. NR 664.0113 (4), that might have economic value.
NR 664.0142(2)(2)During the active life of the facility, the owner or operator shall adjust the closure cost estimate for inflation within 60 days prior to the anniversary date of the establishment of the financial instrument(s) used to comply with s. NR 664.0143. For owners and operators of disposal facilities using the net worth test, the closure cost estimate shall be updated for inflation as specified in s. 289.41 (5) (d), Stats. The adjustment may be made by recalculating the maximum costs of closure in current dollars, or by using an inflation factor derived from the most recent implicit price deflator for gross domestic product published by the U.S. department of commerce in its Survey of Current Business, as specified in pars. (a) and (b). The inflation factor is the result of dividing the latest published annual deflator by the deflator for the previous year.
NR 664.0142(2)(a)(a) The first adjustment shall be made by multiplying the closure cost estimate by the inflation factor. The result is the adjusted closure cost estimate.
NR 664.0142(2)(b)(b) Subsequent adjustments shall be made by multiplying the latest adjusted closure cost estimate by the latest inflation factor.
NR 664.0142(3)(3)During the active life of the facility, the owner or operator shall revise the closure cost estimate no later than 30 days after the department has approved the request to modify the closure plan, if the change in the closure plan increases the cost of closure. The revised closure cost estimate shall be adjusted for inflation as specified in sub. (2).
NR 664.0142(4)(4)The owner or operator shall keep the following at the facility during the operating life of the facility: The latest closure cost estimate prepared in accordance with subs. (1) and (3) and, when this estimate has been adjusted in accordance with sub. (2), the latest adjusted closure cost estimate.
NR 664.0142 HistoryHistory: CR 05-032: cr. Register July 2006 No. 607, eff. 8-1-06.
NR 664.0143NR 664.0143Financial assurance for closure. An owner or operator of each facility shall establish financial assurance for closure of the facility. The owner or operator shall choose from the options as specified in subs. (1) to (8).
NR 664.0143(1)(1)Closure trust fund.
NR 664.0143(1)(a)(a) An owner or operator may satisfy the requirements of this section by establishing a closure trust fund which conforms to the requirements of this subsection and submitting an originally signed duplicate of the trust agreement to the department. An owner or operator of a new facility shall submit the originally signed duplicate of the trust agreement to the department at least 60 days before the date on which hazardous waste is first received for treatment, storage or disposal. The trustee shall be an entity which has the authority to act as a trustee and whose trust operations are regulated and examined by a federal or state agency.
NR 664.0143(1)(b)(b) The wording of the trust agreement shall be identical to the wording on the department form specified in s. NR 664.0151 (1) (a) and the trust agreement shall be accompanied by a formal certification of acknowledgment as specified in s. NR 664.0151 (1) (b). Schedule A of the trust agreement shall be updated within 60 days after a change in the amount of the current closure cost estimate covered by the agreement.
NR 664.0143(1)(c)(c) Payments into the trust fund shall be made annually by the owner or operator over the term of the initial license or over the remaining operating life of the facility as estimated in the closure plan, whichever period is shorter. For the purposes of this section, this period is referred to as the “pay-in period.” The payments into the closure trust fund shall be made as follows:
NR 664.0143(1)(c)1.1. For a new facility, the first payment shall be made before the initial receipt of hazardous waste for treatment, storage or disposal. A receipt from the trustee for this payment shall be submitted by the owner or operator to the department before this initial receipt of hazardous waste. The first payment shall be at least equal to the current closure cost estimate, except as provided in sub. (9), divided by the number of years in the pay-in period. Subsequent payments shall be made no later than 30 days after each anniversary date of the first payment. The amount of each subsequent payment shall be determined by this formula:
-
=
where CE is the current closure cost estimate, CV is the current value of the trust fund and Y is the number of years remaining in the pay-in period.
NR 664.0143(1)(c)2.2. If an owner or operator establishes a trust fund as specified in this subsection, and the value of that trust fund is less than the current closure cost estimate when a license is awarded for the facility, the amount of the current closure cost estimate still to be paid into the trust fund shall be paid in over the pay-in period as defined in par. (c)(intro). Payments shall continue to be made no later than 30 days after each anniversary date of the first payment made pursuant to ch. NR 665. The amount of each payment shall be determined by this formula:
-
=
where CE is the current closure cost estimate, CV is the current value of the trust fund and Y is the number of years remaining in the pay-in period.
NR 664.0143(1)(d)(d) The owner or operator may accelerate payments into the trust fund or may deposit the full amount of the current closure cost estimate at the time the fund is established. However, the owner or operator shall maintain the value of the fund at no less than the value that the fund would have if annual payments were made as specified in par. (c).
NR 664.0143(1)(e)(e) If the owner or operator establishes a closure trust fund after having used one or more alternate mechanisms specified in this section or in s. NR 665.0143, the first payment shall be in at least the amount that the fund would contain if the trust fund were established initially and annual payments made according to specifications of this subsection and s. NR 665.0143 (1), as applicable.
NR 664.0143(1)(f)(f) After the pay-in period is completed, whenever the current closure cost estimate changes, the owner or operator shall compare the new estimate with the trustee’s most recent annual valuation of the trust fund. If the value of the fund is less than the amount of the new estimate, the owner or operator, within 60 days after the change in the cost estimate, shall either deposit an amount into the fund so that its value after this deposit at least equals the amount of the current closure cost estimate, or obtain other financial assurance as specified in this section to cover the difference.
NR 664.0143(1)(g)(g) If the value of the trust fund is greater than the total amount of the current closure cost estimate, the owner or operator may submit a written request to the department for release of the amount in excess of the current closure cost estimate.
NR 664.0143(1)(h)(h) If an owner or operator substitutes other financial assurance as specified in this section for all or part of the trust fund, the owner or operator may submit a written request to the department for release of the amount in excess of the current closure cost estimate covered by the trust fund.
NR 664.0143(1)(i)(i) Within 60 days after receiving a request from the owner or operator for release of funds as specified in par. (g) or (h), the department will instruct the trustee to release to the owner or operator funds as the department specifies in writing.
NR 664.0143(1)(j)(j) After beginning partial or final closure, an owner or operator or another person authorized to conduct partial or final closure may request reimbursements for partial or final closure expenditures by submitting itemized bills to the department. The owner or operator may request reimbursements for partial closure only if sufficient funds are remaining in the trust fund to cover the maximum costs of closing the facility over its remaining operating life. Within 60 days after receiving bills for partial or final closure activities, the department will instruct the trustee to make reimbursements in those amounts as the department specifies in writing, if the department determines that the partial or final closure expenditures are in accordance with the approved closure plan, or otherwise justified. If the department has reason to believe that the maximum cost of closure over the remaining life of the facility will be significantly greater than the value of the trust fund, the department may withhold reimbursements of amounts as the department deems prudent until the department determines, in accordance with sub. (11) that the owner or operator is no longer required to maintain financial assurance for final closure of the facility. If the department does not instruct the trustee to make the reimbursements, the department will provide the owner or operator with a detailed written statement of reasons.