NR 667.0142(1)(1)The owner or operator shall have at the facility a detailed written estimate, in current dollars, of the cost of closing the facility according to the requirements in ss. NR 667.0111 to 667.0115 and applicable closure requirements in ss. NR 667.0176, 667.0201, and 667.1108.
NR 667.0142(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 the closure plan (see s. NR 667.0112 (2)).
NR 667.0142(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 nor a subsidiary of the owner or operator. (See definition of parent corporation in s. NR 667.0141 (4).)
NR 667.0142(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, facility structures or equipment, land, or other assets associated with the facility at the time of partial or final closure.
NR 667.0142(1)(d)(d) The owner or operator may not incorporate a zero cost for hazardous wastes or non-hazardous wastes that might have economic value.
NR 667.0142(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 instruments used to comply with s. NR 667.0143. For owners and operators using the financial test or corporate guarantee, the closure cost estimate shall be updated for inflation within 30 days after the close of the firm’s fiscal year and before submission of updated information to the department as specified in s. NR 667.0143 (6) (b) 3. 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 667.0142(2)(a)(a) The first adjustment is made by multiplying the closure cost estimate by the inflation factor. The result is the adjusted closure cost estimate.
NR 667.0142(2)(b)(b) Subsequent adjustments are made by multiplying the latest adjusted closure cost estimate by the latest inflation factor.
NR 667.0142(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 667.0142(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 according to subs. (1) and (3) and, when this estimate has been adjusted according to sub. (2), the latest adjusted closure cost estimate.
NR 667.0142 HistoryHistory: CR 16-007: cr. Register July 2017 No. 739, eff. 8-1-17.
NR 667.0143NR 667.0143Financial assurance for closure. The owner or operator shall establish financial assurance for closure of each storage or treatment unit owned or operated. In establishing financial assurance for closure, the owner or operator shall choose from the financial assurance mechanisms in subs. (1) to (7). The owner or operator may also use a combination of mechanisms for a single facility if they meet the requirement in sub. (8), or may use a single mechanism for multiple facilities as in sub. (9). The department shall release the owner or operator from the requirements of this section after the owner or operator meets the criteria under sub. (10).
NR 667.0143(1)(1)Closure trust fund. Owners and operators can use the closure trust fund that is specified in s. NR 664.0143 (1) (a) and (b) and (f) to (k). The following provisions also apply:
NR 667.0143(1)(a)(a) Payments into the trust fund for a new facility shall be made annually by the owner or operator over the remaining operating life of the facility as estimated in the closure plan, or over 3 years, whichever period is shorter. This period of time is hereafter referred to as the pay-in period.
NR 667.0143(1)(b)(b) For a new facility, the first payment into the closure trust fund shall be made before the facility may accept the initial storage. A receipt from the trustee shall be submitted by the owner or operator to the department before this initial storage of waste. The first payment shall be at least equal to the current closure cost estimate, divided by the number of years in the pay-in period, except as provided in sub. (8) for multiple mechanisms. Subsequent payments shall be made no later than 30 days after each anniversary date of the first payment. The owner or operator determines the amount of each subsequent payment by subtracting the current value of the trust fund from the current closure cost estimate and dividing this difference by the number of years remaining in the pay-in period. Mathematically, the formula is Next Payment = (Current Closure Estimate – Current Value of the Trust Fund) Divided by Years Remaining in the Pay- in Period.
NR 667.0143(1)(c)(c) The owner or operator of a facility existing on August 1, 2017, may establish a trust fund to meet the financial assurance requirements in this section. If the value of the trust fund is less than the current closure cost estimate when a final approval of the license is granted for the facility, the owner or operator shall pay the difference into the trust fund within 60 days.
NR 667.0143(1)(d)(d) The owner or operator may accelerate payments into the trust fund or deposit the full amount of the closure cost estimate when establishing the trust fund. 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. (b) or (c).
NR 667.0143(1)(e)(e) The owner or operator shall submit a trust agreement with the wording specified in s. NR 664.0151 (1) (a).
NR 667.0143(2)(2)Surety bond guaranteeing payment into a closure trust fund. Owners and operators can use the surety bond guaranteeing payment into a closure trust fund, as specified in s. NR 664.0143 (2), including the use of the surety bond instrument specified in s. NR 664.0151 (2) and the standby trust specified in s. NR 664.0143 (2) (c).
NR 667.0143(3)(3)Surety bond guaranteeing performance of closure. Owners and operators can use the surety bond guaranteeing performance of closure, as specified in s. NR 664.0143 (3), the submission and use of the surety bond instrument specified in s. NR 664.0151 (3).
NR 667.0143(4)(4)Closure letter of credit. Owners and operators can use the closure letter of credit specified in s. NR 664.0143 (4) and the submission and use of the irrevocable letter of credit instrument specified in s. NR 664.0151 (4).
NR 667.0143(5)(5)Closure insurance. Owners and operators can use closure insurance, as specified in s. NR 664.0143 (5), utilizing the certificate of insurance for closure specified s. NR 664.0151 (5).
NR 667.0143(6)(6)Corporate financial test. An owner or operator that satisfies the requirements of this section may demonstrate financial assurance up to the amount specified in this subsection:
NR 667.0143(6)(a)(a) Financial component.
NR 667.0143(6)(a)1.1. The owner or operator shall satisfy one of the following three conditions:
NR 667.0143(6)(a)1.a.a. 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.
NR 667.0143(6)(a)1.b.b. A ratio of less than 1.5 comparing total liabilities to net worth.
NR 667.0143(6)(a)1.c.c. A ratio of greater than 0.10 comparing the sum of net income plus depreciation, depletion and amortization, minus $10 million, to total liabilities.
NR 667.0143(6)(a)2.2. The tangible net worth of the owner or operator shall be greater than: