(a) An owner or operator may satisfy the requirements of financial
assurance by obtaining an irrevocable standby letter of credit which conforms
to the requirements of this section, in addition to the requirements specified
in Subchapters A and B of this chapter (relating to General Financial Assurance
Requirements and Financial Assurance Requirements for Closure, Post Closure,
and Corrective Action), and submit an originally signed irrevocable standby
letter of credit to the executive director.
(b) The financial institution issuing the irrevocable standby
letter of credit shall be an entity that has the authority to issue irrevocable
standby letters of credit and whose operations are regulated and examined
by a federal or state agency.
(c) The wording of the irrevocable standby letter of credit
must be identical to the wording specified in §37.331 of this title (relating
to Irrevocable Standby Letter of Credit).
(d) The originally signed irrevocable standby letter of credit
must be accompanied by a letter from the owner or operator referring to the
irrevocable standby letter of credit by number, issuing institution, and date,
and providing the following information for each facility: the permit number,
name and physical and mailing addresses of the facility, and the amount of
funds assured for closure, post closure, or corrective action by the irrevocable
standby letter of credit.
(e) The letter of credit must be irrevocable and issued for
a period of at least one year. The irrevocable standby letter of credit must
provide that the expiration date shall 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
executive director by certified mail of a decision not to extend the expiration
date. Under the terms of the irrevocable standby letter of credit, the 120
days shall begin on the date when both the owner or operator and the executive
director have received the notice, as evidenced by the return receipts.
(f) The irrevocable standby letter of credit must be issued
in an amount at least equal to the current cost estimate, except as provided
in §37.41 of this title (relating to Use of Multiple Financial Assurance
Mechanisms), §37.51 of this title (relating to Use of a Financial Assurance
Mechanism for Multiple Facilities), or §37.52 of this title (relating
to Use of a Universal Financial Assurance Mechanism for Multiple Facilities
and Program Areas).
(g) Following a determination that the owner or operator has
failed to perform closure or post closure in accordance with the closure plan,
post closure plan, and other applicable requirements of the permit, or has
failed to perform corrective action in accordance with the permit or other
applicable requirements, the executive director may draw on the irrevocable
standby letter of credit.
(h) If the owner or operator does not establish alternate financial
assurance as specified in this subchapter and obtain written approval of such
alternate assurance from the executive director within 90 days after receipt
by both the owner or operator and the executive director of a notice from
the issuing institution that it has decided not to extend the irrevocable
standby letter of credit beyond the current expiration date, the executive
director shall draw on the irrevocable standby letter of credit. The executive
director may delay the drawing if the issuing institution grants an extension
of the term of the letter of credit. During the last 30 days of any such extension,
the executive director shall draw on the irrevocable standby letter of credit
if the owner or operator has failed to provide alternate financial assurance
as specified in this subchapter and obtain written approval of such assurance
from the executive director.
(i) Upon termination, in accordance with §37.61 of this
title (relating to Termination of Mechanisms), the executive director shall
return the irrevocable standby letter of credit to the issuing institution.
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