An owner or operator may satisfy the requirements of financial assurance
for closure, post closure, or corrective action by obtaining a local government
guarantee provided by a local government. The local government guarantee must
meet the requirements of this section, in addition to the requirements 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). The local government guarantor must meet the requirements
of the local government financial test in §37.271 of this title (relating
to Local Government Financial Test) and must comply with the following terms
of the local government guarantee.
(1) If the owner or operator fails to perform closure, post
closure, or corrective action of a facility covered by the guarantee, the
guarantor will:
(A) perform, or pay a third party to perform, closure, post
closure, or corrective action as required; or
(B) establish a fully funded trust fund as specified in §37.201
of this title (relating to Trust Fund) in the name of the owner or operator.
(2) The guarantee will remain in force unless the
guarantor sends notice of cancellation by certified mail to the owner or operator
and to the executive director. Cancellation may not occur, however, during
the 120 days beginning on the date of the receipt of the notice of cancellation
by both the owner or operator and the executive director, as evidenced by
the return receipts.
(3) If a guarantee is canceled, the owner or operator
must, within 90 days following receipt of the cancellation notice by the owner
or operator and the executive director, obtain alternate financial assurance
and submit evidence of that alternate financial assurance to the executive
director. If the owner or operator fails to provide alternate financial assurance
within the 90-day period, the guarantor must provide that alternate assurance
within 120 days following the guarantor's notice of cancellation.
(4) The owner or operator must submit to the executive
director an originally signed local government guarantee worded as specified
in §37.381 of this title (relating to Local Government Guarantee) along
with the items required in §37.271(3) of this title. The items must be
updated annually in accordance with the requirements of the local government
financial test.
(5) The owner or operator is no longer required to comply
with the requirements of this section when the conditions as specified in §37.61
of this title (relating to Termination of Mechanisms) are met.
(6) If a local government guarantor no longer meets the
requirements of §37.271 of this title, the owner or operator must, within
90 days, obtain alternate financial assurance, and submit such evidence of
the alternate financial assurance to the executive director. If the owner
or operator fails to obtain alternate financial assurance within that 90-day
period, the guarantor must provide that alternate financial assurance within
the next 30 days.
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