NR 661.0143(3)(c)(c) An owner or operator who uses a letter of credit to satisfy the requirements of this section shall also establish a standby trust fund. Under the terms of the letter of credit, all amounts paid pursuant to a draft by the department will be deposited by the issuing institution directly into the standby trust fund in accordance with instructions from the department. This standby trust fund shall meet the requirements of the trust fund specified in sub. (1), except for all of the following:

NR 661.0143(3)(d)(d) The letter of credit shall be accompanied by a letter from the owner or operator referring to the letter of credit by number, issuing institution, and date, and providing the following information: The EPA Identification Number, if any issued; name, and address of the facility; and the amount of funds assured for the facility by the letter of credit.

NR 661.0143(3)(e)(e) The letter of credit shall be irrevocable and issued for a period of at least one year. The letter of credit shall provide that the expiration date will be automatically extended for a period of at least one year unless, at least 120 days before the current expiration date, the issuing institution notifies both the owner or operator and the department by certified mail of a decision not to extend the expiration date. Under the terms of the letter of credit, the 120 days will begin on the date when both the owner or operator and the department have received the notice, as evidenced by the return receipts.

NR 661.0143(3)(f)(f) Except as provided in sub. (6), the letter of credit shall be issued in an amount at least equal to the current cost estimate.

NR 661.0143(3)(g)(g) Whenever the current cost estimate increases to an amount greater than the amount of the credit, the owner or operator, within 60 days after the increase, shall either cause the amount of the credit to be increased so that it at least equals the current cost estimate and submit evidence of such increase to the department, or obtain other financial assurance as specified in this section to cover the increase. Whenever the current cost estimate decreases, the amount of the credit may be reduced to the amount of the current cost estimate following written approval by the department.

NR 661.0143(3)(h)(h) Following a determination by the department that the hazardous secondary material do not meet the conditions of the exclusion under s. NR 661.0004 (1) (x), the department may draw on the letter of credit.

NR 661.0143(3)(i)(i) If the owner or operator does not establish alternate financial assurance as specified in this section and obtain written approval of such alternate assurance from the department within 90 days after receipt by both the owner or operator and the department of a notice from the issuing institution that it has decided not to extend the letter of credit beyond the current expiration date, the department will draw on the letter of credit. The department may delay the drawing if the issuing institution grants an extension of the term of the credit. During the last 30 days of any such extension the department will draw on the letter of credit if the owner or operator has failed to provide alternate financial assurance as specified in this section and obtain written approval of such assurance from the department.

NR 661.0143(3)(j)(j) The department will return the letter of credit to the issuing institution for termination when any of the following apply:

NR 661.0143(4)(a)(a) An owner or operator may satisfy the requirements of this section by obtaining insurance that conforms to the requirements of this subsection and submitting a certificate of such insurance to the department. At a minimum, the insurer shall be licensed to transact the business of insurance, or eligible to provide insurance as an excess or surplus lines insurer, in one or more states.

NR 661.0143(4)(b)(b) The wording of the certificate of insurance shall be identical to the wording specified in s. NR 661.0151 (4).

NR 661.0143(4)(c)(c) The insurance policy shall be issued for a face amount at least equal to the current cost estimate, except as provided in sub. (6). The term “face amount” means the total amount the insurer is obligated to pay under the policy. Actual payments by the insurer will not change the face amount, although the insurer’s future liability will be lowered by the amount of the payments.

NR 661.0143(4)(d)(d) The insurance policy shall guarantee that funds will be available whenever needed to pay the cost of removal of all hazardous secondary material from the unit, to pay the cost of decontamination of the unit, to pay the costs of the performance of activities required under subch. G of ch. NR 664 or subch. G of ch. NR 665, as applicable, for the facilities covered by this policy. The policy shall also guarantee that once funds are needed, the insurer will be responsible for paying out funds, up to an amount equal to the face amount of the policy, upon the direction of the department, to such party or parties as the department specifies.

NR 661.0143(4)(e)(e) After beginning partial or final closure under ch. NR 664 or 665, as applicable, an owner or operator or any other authorized person may request reimbursements for closure expenditures by submitting itemized bills to the department. The owner or operator may request reimbursements only if the remaining value of the policy is sufficient to cover the maximum costs of closing the facility over its remaining operating life. Within 60 days after receiving bills for closure activities, the department will instruct the insurer to make reimbursements in such amounts as the department specifies in writing if the department determines that the expenditures are in accordance with the approved plan or otherwise justified. If the department has reason to believe that the maximum cost over the remaining life of the facility will be significantly greater than the face amount of the policy, the department may withhold reimbursement of such amounts as the department deems prudent until the department determines, in accordance with sub. (8), that the owner or operator is no longer required to maintain financial assurance for the particular facility. If the department does not instruct the insurer to make such reimbursements, the department will provide to the owner or operator a detailed written statement of reasons.

NR 661.0143(4)(f)(f) The owner or operator shall maintain the policy in full force and effect until the department consents to termination of the policy by the owner or operator as specified in par. (j). Failure to pay the premium, without substitution of alternate financial assurance as specified in this section, will constitute a significant violation of this section warranting such remedy as the department deems necessary. Such violation will be deemed to begin upon receipt by the department of a notice of future cancellation, termination, or failure to renew due to nonpayment of the premium, rather than upon the date of expiration.

NR 661.0143(4)(g)(g) Each policy shall contain a provision allowing assignment of the policy to a successor owner or operator. Such assignment may be conditional upon consent of the insurer, provided such consent is not unreasonably refused.

NR 661.0143(4)(h)(h) The policy shall provide that the insurer may not cancel, terminate, or fail to renew the policy except for failure to pay the premium. The automatic renewal of the policy shall, at a minimum, provide the insured with the option of renewal at the face amount of the expiring policy. If the owner or operator fails to pay the premium, the insurer may elect to cancel, terminate, or fail to renew the policy by sending notice by certified mail to the owner or operator and the department. Cancellation, termination, or failure to renew may not occur, however, during the 120 days beginning with the date of receipt of the notice by both the department and the owner or operator, as evidenced by the return receipts. Cancellation, termination, or failure to renew may not occur and the policy will remain in full force and effect in the event that, on or before the date of expiration, any of the following occurs: