NR 664.0145(7)(7) Long term care deposit with the department. An owner may deposit cash, certificates of deposit or U.S. government securities with the department. The deposit must be accompanied by a signed duplicate original of Form 4430-028 as specified in s. NR 664.0151 (14). The amount of the deposit shall be determined according to s. NR 664.0144 and shall be submitted as part of an interim license application or the feasibility and plan of operation report. Cash deposits placed with the department shall be segregated and invested in an interest bearing account. All interest payments shall be accumulated in the account. The department shall have the right to use part or all of the funds to carry out the long-term care requirements of the approved closure plan or the applicable requirements in this section if the owner fails to do so.

NR 664.0145(8)(8) Long term care escrow account.

NR 664.0145(8)(a)(a) An owner or operator may satisfy the requirements of this section by establishing a long-term care escrow account which conforms to the requirements of this subsection and submitting an originally signed duplicate of the escrow agreement to the department. An owner or operator of a new facility shall submit the originally signed duplicate of the escrow agreement to the department at least 60 days before the date on which hazardous waste is first received for disposal. The escrow agent shall be an entity which has the authority to act as an escrow agent and the escrow account shall be established with a bank or financial institution which is regulated and examined by a federal or state agency.

NR 664.0145(8)(b)(b) The wording of the escrow agreement shall be identical to the wording on the department form specified in s. NR 664.0151 (6) (a), and the escrow agreement shall be accompanied by a formal certification of acknowledgment as specified in s. NR 664.0151 (6) (b). Schedule A of the escrow agreement shall be updated within 60 days after a change in the amount of the current long-term care cost estimate covered by the agreement.

NR 664.0145(8)(c)(c) Payments into the escrow account 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 long-term care escrow account shall be made as follows:

NR 664.0145(8)(c)1.1. For a new facility, the first payment shall be made before the initial receipt of hazardous waste for disposal. A receipt from the escrow agent 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 long-term care 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:

NR 664.0145(8)(c)2.2. If an owner or operator establishes a escrow account as specified in this subsection, and the value of that escrow account is less than the current long-term care cost estimate when a license is awarded for the facility, the amount of the current long-term care cost estimate still to be paid into the account shall be paid in over the pay-in period as defined in the introduction to this paragraph. 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:

NR 664.0145(8)(d)(d) The owner or operator may accelerate payments into the escrow account or may deposit the full amount of the current long-term care cost estimate at the time the account is established. However, the owner or operator shall maintain the value of the account at no less than the value that the account would have if annual payments were made as specified in par. (c).

NR 664.0145(8)(e)(e) If the owner or operator establishes a long-term care escrow account after having used one or more alternate mechanisms specified in this section or in s. NR 665.0145, the first payment shall be in at least the amount that the account would contain if the escrow account were established initially and annual payments made according to specifications of this subsection and s. NR 665.0145 (7), as applicable.

NR 664.0145(8)(f)(f) After the pay-in period is completed, whenever the current long-term care cost estimate changes during the operating life of the facility, the owner or operator shall compare the new estimate with the escrow agent’s most recent annual valuation of the escrow account. If the value of the account 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 account so that its value after this deposit at least equals the amount of the current long-term care cost estimate, or obtain other financial assurance as specified in this section to cover the difference.

NR 664.0145(8)(g)(g) During the operating life of the facility, if the value of the escrow account is greater than the total amount of the current long-term care cost estimate, the owner or operator may submit a written request to the department for release of the amount in excess of the current long-term care cost estimate.

NR 664.0145(8)(h)(h) If an owner or operator substitutes other financial assurance as specified in this section for all or part of the escrow account, the owner or operator may submit a written request to the department for release of the amount in excess of the current long-term care cost estimate covered by the escrow account.

NR 664.0145(8)(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 escrow agent to release to the owner or operator funds as the department specifies in writing.

NR 664.0145(8)(k)(k) An owner or operator or any other person authorized to conduct long-term care may request reimbursements for long-term care expenditures by submitting itemized bills to the department. Within 60 days after receiving bills for long-term care activities, the department will instruct the escrow agent to make reimbursements in those amounts as the department specifies in writing, if the department determines that the long-term care expenditures are in accordance with the approved long-term care plan or otherwise justified. If the department does not instruct the escrow agent to make the reimbursements, the department will provide the owner or operator with a detailed written statement of reasons.

NR 664.0145(9)(9) Use of multiple financial mechanisms. An owner or operator may satisfy the requirements of this section by establishing more than one financial mechanism per facility. These mechanisms are limited to trust funds, surety bonds guaranteeing payment, deposits with the department, escrow accounts, letters of credit and insurance. The mechanisms shall be as specified in subs. (1), (2), (4), (5), (7) and (8) except that it is the combination of mechanisms, rather than the single mechanism, which shall provide financial assurance for an amount at least equal to the current long-term care cost estimate. The department may use any or all of the mechanisms to provide for long-term care of the facility.

NR 664.0145(10)(10) Use of a financial mechanism for multiple facilities. An owner or operator may use a financial assurance mechanism specified in this section to meet the requirements of this section for more than one facility. Evidence of financial assurance submitted to the department shall include a list showing, for each facility, the EPA identification number, name, address and the amount of funds for long-term care assured by the mechanism. If the facilities covered by the mechanism are in more than one state, identical evidence of financial assurance shall be submitted to and maintained with the state agency regulating hazardous waste or with the appropriate EPA regional administrator if the facility is located in unauthorized states. The amount of funds available through the mechanism shall be no less than the sum of funds that would be available if a separate mechanism had been established and maintained for each facility. In directing funds available through the mechanism for long-term care of any of the facilities covered by the mechanism, the department may direct only the amount of funds designated for that facility, unless the owner or operator agrees to the use of additional funds available under the mechanism.

NR 664.0145(11)(11) Release of the owner or operator from the requirements of this section. Within 60 days after receiving certifications from the owner or operator and a qualified professional engineer that the long-term care period has been completed for a hazardous waste disposal unit in accordance with the approved plan, the department will notify the owner or operator that the owner or operator is no longer required to maintain financial assurance for long-term care of that unit, unless the department has reason to believe that long term care has not been in accordance with the approved long-term care plan. The department shall provide the owner or operator with a detailed written statement of any reason to believe that long-term care has not been in accordance with the approved long-term care plan.

NR 664.0146NR 664.0146 Use of a mechanism for financial assurance of both closure and long-term care. An owner or operator may satisfy the requirements for financial assurance for both closure and long-term care for one or more facilities by using an irrevocable trust fund, surety payment or performance bond, deposit with the department, escrow account, letter of credit, insurance or net worth test that meets the specifications for the mechanism in both ss. NR 664.0143 and 664.0145. The amount of funds available through the mechanism shall be no less than the sum of funds that would be available if a separate mechanism had been established and maintained for financial assurance of closure and of long-term care.