NR 665.0141(7)(h)(h) “Net worth” has the meaning given in s. 289.41 (1) (c), Stats.
NR 665.0141(7)(i)(i) “Tangible net worth” means the tangible assets that remain after deducting liabilities. The assets would not include intangibles such as goodwill and rights to patents or royalties.
NR 665.0141(8)(8)In the liability insurance requirements, the terms “bodily injury” and “property damage” shall have the meanings given these terms by applicable state law. However, these terms do not include those liabilities which, consistent with standard industry practice, are excluded from coverage in liability policies for bodily injury and property damage. The department intends the meanings of other terms used in the liability insurance requirements to be consistent with their common meanings within the insurance industry. The definitions given below of several of the terms are intended to assist in the understanding of this chapter and are not intended to limit their meanings in a way that conflicts with general insurance industry usage.
NR 665.0141(8)(a)(a) “Accidental occurrence” means an accident, including continuous or repeated exposure to conditions, which results in bodily injury or property damage neither expected nor intended from the standpoint of the insured.
NR 665.0141(8)(b)(b) “Legal defense costs” means any expenses that an insurer incurs in defending against claims of third parties brought under the terms and conditions of an insurance policy.
NR 665.0141(8)(c)(c) “Nonsudden accidental occurrence” means an occurrence which takes place over time and involves continuous or repeated exposure.
NR 665.0141(8)(d)(d) “Sudden accidental occurrence” means an occurrence which is not continuous or repeated in nature.
NR 665.0141(9)(9)“Substantial business relationship” means the extent of a business relationship necessary under applicable state law to make a guarantee contract issued incident to that relationship valid and enforceable. A substantial business relationship shall arise from a pattern of recent or ongoing business transactions, in addition to the guarantee itself, such that a currently existing business relationship between the guarantor and the owner or operator is demonstrated to the satisfaction of the department.
NR 665.0141 HistoryHistory: CR 05-032: cr. Register July 2006 No. 607, eff. 8-1-06.
NR 665.0142NR 665.0142Cost estimate for closure.
NR 665.0142(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 665.0111 to 665.0115 and applicable closure requirements in ss. NR 665.0197, 665.0228, 665.0258, 665.0310, 665.0351, 665.0381, 665.0404 and 665.1102.
NR 665.0142(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 665.0112 (2)).
NR 665.0142(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 665.0142(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 665.0113 (4), facility structures or equipment, land or other assets associated with the facility at the time of partial or final closure.
NR 665.0142(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 665.0113 (4), that might have economic value.
NR 665.0142(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 665.0143. For owners and operators of disposal facilities using the net worth test, the closure cost estimate shall be updated for inflation as required under s. 289.41 (5) (d), Stats. The adjustment may be made by recalculating the closure cost estimate 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 665.0142(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 665.0142(2)(b)(b) Subsequent adjustments shall be made by multiplying the latest adjusted closure cost estimate by the latest inflation factor.
NR 665.0142(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 a revision has been made to the closure plan which increases the cost of closure. If the owner or operator has an approved closure plan, the closure cost estimate shall be revised 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 665.0142(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) to (3) and, when this estimate has been adjusted in accordance with sub. (2), the latest adjusted closure cost estimate.
NR 665.0142 HistoryHistory: CR 05-032: cr. Register July 2006 No. 607, eff. 8-1-06.
NR 665.0143NR 665.0143Financial assurance for closure. By June 1, 1984, 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 (7).
NR 665.0143(1)(1)Closure trust fund.
NR 665.0143(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. 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 665.0143(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 665.0143(1)(c)(c) Payments into the trust fund shall be made annually by the owner or operator over the 20 years beginning on June 1, 1984 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 665.0143(1)(c)1.1. The first payment shall be made by June 1, 1984, except as provided in par. (e). The first payment shall be at least equal to the current closure cost estimate, except as provided in sub. (8), divided by the number of years in the pay-in period.
NR 665.0143(1)(c)2.2. 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:
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