Rcra Policy Compendium For Subparts G and H


     RCRA POLICY COMPENDIUM

                FOR

         SUBPARTS G AND H
    Prepared by  ICF  Incorporated
                 for
U.S. Environmental Protection Agency
   OSWER Policy Directive #9476.00-7
            December 1986

-------
                                                     OSWER Policy  Directive
                                                                #9476.00-7
                               INTRODUCTION
    This policy compendium has been prepared as a reference tool  for Regional
and State permit writers and staff responsible for the implementation of
requirements under Subparts G and H:   closure and post-closure care and
financial assurance.   The document is intended to identify and explain key
issues associated with these requirements.   To meet this  objectives the
document provides summaries of the key provisions of Subparts G and H and
compiles relevant Agency documents -- policy memoranda and RCRA Hotline
summary reports -- that clarify these provisions.  The purpose of this
document is not, however, to explain why the regulations  were promulgated in
their present form or why they may have been amended.   The Agency's current
and former regulatory positions on closure,  post-closure  care, and financial
assurance issues, and rationale for these positions, will be included in
separate documents, currently being prepared.

HOW TO USE THIS COMPENDIUM

    The compendium is divided into four major sections:

    1)  Subject Index

    2)  Regulatory Summaries

    3)  Documents:  EPA policy memoranda and RCRA Hotline Summary Reports

    4)  Regulations:   Current regulations under Subparts  G and H

    Section 1 presents a matrix illustrating the relationship between the
various sections of this policy compendium.   The first column of the matrix
lists each regulatory summary included in the compendium, by subject title.
The second column gives the page number for each regulatory summary as it
appears in the compendium, while the third column identifies by CFR citation
the regulatory provision for which the regulatory summary has been provided.
The last column provides the Section 2 document numbers of the policy
memoranda and RCRA Hotline reports that are associated with each regulatory
summary.

    Section 2 presents regulatory summaries for each section of the Subparts G
and H regulations; these summaries appear approximately in the same order as
the codified regulatory sections.  Each regulatory summary is identified,
first, by a CFR Part and Section number, and second, by a short- subject title
describing the nature of the regulatory provision.  An "overview"  follows that
briefly describes the major provisions of the regulatory section.  For those
regulatory provisions that were substantially changed by the May 2, 1986 and
July 14, 1986 amendments, a discussion of the nature of these changes is also
provided.  Other relevant policies are also highlighted where applicable.
                                             •*•                 .

-------
                                   -2-              OSWER Policy Directive
                                                               #9476.00-7
    In addition to describing the provisions of and major changes to each
regulatory section, the regulatory summaries also identify relevant EPA policy
memoranda and RCRA Hotline reports that clarify the regulatory section.  Each
of these documents is described in terms of:

    •   Subject

    •   Addressee (in the case of a policy memoranda)

    •   Originator

    •   Date

    •   CFR citation (Part, section, and paragraph number)

    •   Document number

The final entry -- document number -- provides a cross-reference to the
documents themselves, which are numerically ordered in Section 3 of the policy
compendium.  Document numbers also appear in parentheses in the regulatory
summary discussion of relevant policies associated with a particular
provision.  Document numbers preceded by "G" are relevant to Subpart G
requirements for closure and post-closure care, while document numbers
preceded by "H" are relevant to Subpart H requirements for financial
assurance.  These numbers are intended to guide the reader to Section 3 of the
policy compendium, where the documents themselves appear.

    Section 4 contains the current Subparts G and H regulations.  This
appendix has been provided so that the user of the document can quickly and
easily refer to actual regulatory language when reading the regulatory
summaries or supporting policy documents.

-------
                                                                                                        OSWER  Policy  Directive
                                                                                                                  /9H76.00-7
  1)1
                                   (M
                                          O

                                          o
                                 2 — — CM     iO
                    to
                    a
                                                                              M —
           O
           o
           sC M
           00
                                                                          £


                                                                          •3


«•*>
u

C.T

~
>«3
CV

0 &
U
w
-

d-KH-^fcvflK*.
w o o
^^^pj-l^
CM CM CM
_ <_ —
~:~"
i i >o
CM CM CM

.„...«,
0 0 U
fM fM !%)
	 ,
It. —
tu& ™=
^ lA
« \e
•0 CM

*" ^

~. s
i •«

R en

•O OMC-O
e a so IB







—
n.

in
•o
CM
o
-

^*
u
t^.,..
0
*
""•
^
CM

..
O
jy

                                        CM IB IB   X! IB

                                         ..<*! M
                                                          > IB ^O     ^
                                                          	C vO   •*   vfl   O   •£ C
                                                                             jr\.rMC\.CM   CM   CM   CMCM   CMCM
3 O
  -ai   — JCM CM —   —   —
  Z:   l  I  l  l  l     I    l
                                  CM CM CM CM
                                  I   I  I  I
                                  CM CM CM CM
 I  I  I  I
CM M CM CM

                                V)
                                •I
                                e
CM'-'-JCM—   <0   —
 I  I  I  I  I  I     I    I
n
s
ing closure
n e c i-
— O OS
•) O *»
O <8 — IB <"»
i. — • «i a c
3 3 IB — 41
(A WO U >
O 4) _ .- 4>
— UW ->
0 c-o » »
(_— g a-
o i u
e u at
w w <• — a
C C O— X
S«— 3X3 O
£ « 3 C
•cue as
91111
e care plan
en ing of care peri (id
/major modification
1. *l C
31-0
to O —

o a

U) —
O W ^
ac <-
«.- c a
o s
£ U
83 cS
E U 3
•o- a
S i i
al assurance requirei
ederal or State land
pplicable to federal
••
u
C VI
IB «t»
C C
— o
<- s
U. 1.
O 4)
> v>
>>o c
w WO
— >>w
— *» a
IS 3 «
u o x
— o o
"a i i
<- a
W M

C
V E
V) L.
U9 ••»
« 3 (A
41 —
•ft*1 —
.18 41 —
— IB O
W. .J (B
ai/><»
1 1

4)
I.
3
0
U
^^
C
M O
3 (0
— W
_ U
1.
V
!

?
«

«
ession
s
-j O —
1C i- C
•o as
i i i
u
V)
O -D
O IB
w
VI It.
O O
a
«*..* ^
*
o u b.
-•o«-
MOW
o— c
— t. IB
— a*»
(. i i
e dead! ines
ardous waste
ous waste
t. N -o
3 IB I-
O N
•*• - W  ** o
— 0 4) ** «
w — 1. — u  8 *> c 5 «- o
.- o x — « o «
3 u e*. c c «.
(0
O 1 1 1 1 1 1
of hazardous wastes
.»
IB
V)
O
a
in
—
•o
•o
C
«
«
o
0)
1
quipfflent
41
^
V)
i.
3
U
3
i.
°<»

1 l

-------
                                                                                                                      OSWER   Pol icy  Directive
                                                                                                                                  J9U76.00-7
C  ttj

*^  C]
(.  O
C  E
aSi
Q.O
=  o
                                  CO
9
«fl'
                                            IB    IB

                                            c\T   CM"
     — tjSvA \A *A
     — vflvflvO vO
       •CM CM CM CM
     >A
                          vO   vO      vo   v3   \0
                          CM   CM      CM   CM   CM
                          IB   IB      IB   IB
                  s      s    a   s
                  vO      *O    vO   vO
                  CM      CM    CM   CM
                                                                      O
                                                                      •—•3
     fr~.	—
        xaa a

     CM CM  CM CM CM
                            CM   CM      a CM    CM
                            *   S   — — J    *
                            .-   f   as*-    <-
                                   .   — 3  .
                            lA   lA   ^ «"• vA    lA
                            vO   vC   ff  • vO    O
                            CM   CM   •- lACM    CM
                                        •vO
                            ..    ..   ^ CM ••    ••
                            —>   —   vO   —    —
                            o   a   cv ..A    A


                            ?   •£   «°?    ?
                            —   £•    o""^-    —
                                   .   —>e  .
                            a   s      ca    s
                            vO   vO   "O m^O    vO
                            CM   CM    C   CM    CM

                            .. c  ••£ " ^ --a --J
                                                                                           vo
                                                                                           CM
                                                                                                        £A   d U
                                                                                                               \A IA   IA.
                                                                                                __    vflvO   vflvo   vO
                                                                                                 .  .    CM CM   CM M   M
                                                                                                •,- .A
                          ic^icf    ic^re^ic:
                          ~J — JT    ~-J— C1— J
                          CM •- CM —    CM — CM — CM •
                       J CM S CM   S CM - CM .T !
                       vO   tO      O
                                              CM   CM    CM   CM   CM
                                                                                           —   CM CM    — —  — —   ~
                                                                                           8) .=•         aa   a u    o
                                                                                                               OSO   CM
                                                                                                _                 _

                                                                                           vO   vC >C    vC C    -C C   >C
                                                                                           CM   CM CM    Cv; CM    CM CM   CM
U!
C 
^ -
IB SI
(.
        U-l
                                                                                                lAiA
             <-    CM   CM CM    ^   CM
             I     I     II     I     I
             PO    rt   i*^ m    f*>   r*%
                                            «   CM
                                             I     I
                                            m   m
                                                                                                      II
                                                                                                     CO
                                                                                                                 II
                                                                                                                OO
                        IB
                        U

      a—

      o «
      t. >
      3 C
      If)
      O I
                V


                VI
                O
                        I/I
                        o
                     10
                     o
                     a
                     •v.

                     2
                     3
                     u)
                     O

                     U      —
                  IB
                  
                  O
                  a
                  U)
        «
i. —
O IB
w w
   V

S'
^<-         C
   So    CD   — e
        *>   - 01
— —    —   U IB
                               —       CB
                                                            V)
                                                            O
                                                            U
                                               4)1'-
                                               VII IB
                                               (CIO
                                                          e u
                                       i
                                                    L.

                                                    O
                                                               

I  I  I
          * 09
          tf >
          at 09
                        o
                        u
M
l
C
o
             o —
             0)     O      -O   "3    I-
M           u) i, — u)   (B         O
O           3 O  O l-         »    -4,
u           —jw  i  co   ^    u    cr
             ^    «J—   O   —    IB
>»           ts ut  o>—   w    t    <-
MM         woo         a
(.    *J      « C  O-T3   u>         C
co»>      ^ a; ^^      o>    -j    o
o.    o      ea«ea*»   c   —    —
 I     O      B •>  l- C   —    O    J
•3           — (A  3 99   —   —    «
U    O       t   •o   —    —
             •    2)
      c a -J
      O l- u)
      N 3 B
   t.   ,0 5
   O I- O
   V O-<-
        u o
   0) 09
e c * — —
O— 3 1C CO
"™ ^"   "^ ^
i
a
"3
o-
09
Ol
                                                                                                                             •o

                                                                                                                             IB
                                                                                                                             Si

                                                                                                                             a

                                                                                                                             3
                                                                                                                             a
                                                                                                                             o


                                                                                                                             o
                                                                                                                             o
                                                                                                                             3)
                                                                                                                             ^
                                                                                                                             O

                                                                                                                             a
O 1C  C l. S
C 0)  CO CO 09
   •3— at.
•o
09 I  I  I  I
      i
      Z u)
                                                                                                                              > *
                                                                                                                              c >»

-------
                                                                                                            ObWIR   Policy  Directive
&  ,
£d
-a
U Ol
o a,
a 3
au
331
       a-   cj    co*»
                                      s   o
                   - —   z   z z   r   z z    coco
                                                                       fM
                                                                       CV
                                                                       o
                                                                       5
                                                                   ,   <*»      CV
                                                                       c      o
                                                                                                             z      z
                                                                              ^CM «."i
                                                                              3 — — — ^ ^CM ; —
   G   "£   3?
   a   2   2
   a!
                      s   a     &   &
                                 IT*
  •—'   >o   >c        ^   ^o     -o   o
  -t,   {M   CM        CM   CM     CV   CM
  Ol
  ol   .»   B«         •»   ««     °«»   B»
  «"i   —•   —        r~   r*   rr"°   r~
                          rf-i   <- v
                                ; vs   o
                                                                              "S

                                                                              «
                                                                              *
                                                      -O O   —
   Ol   CV   CV        CVCVCVCVCM          CM   CM CM
   431     *^   *"^       ^**   "^     J*™°   *^                   ^
  K|   .««..«      ..a • - a •• •- a • « a        •-   •• ••   vp
       » ,-\ — ,"\     «, ,-\ ~ ,"i — •=» _-\ » .*\

       (^ f^ (^ ^     f*) ^ f*^ *» ^" f^ »>• "*^,"»

       — #\ <— iT\     *- -f\ ~- if\ r- — J\<- ^
        •^  -vfi       -O  • O  •  -vS  • O
       .s-CM.rcM     ^^.j^^-^r, 5-.-M
       s3   >£        vO   >O    ^C *C   O
    i   CM   CM        CM   CM    CM CM   CM
                                                                       CM
                                                                       O
                                                                       CM
                                                                                       CO
                                                                              -O        ^O
                                                                              CV        6V
                                                                                                               •9   -a   -a
                                                                                                               c    e   c
                                                                                                               ••»    «   j     =^ -^

                                                                       CM      CM        CM CV
                                                                                                          CM CM CM CM CM   CM
i/i

O
3 3
90.1
                                                                                                                     I       I
                                                                                                                    .n     ^
o  >t
 •^ll    I    III    I    II    I     IIJC' — CI   —
 sci.*   a"   js"j   a1   ^ra*   s   s s   1111    i
 iwi   —   —   — — •-   —   ~—   —   ——   mi-)ao«   CM
                                                                                       CV
                                                                                        i
                                                                                       a- ev
                                                                                                                         cv
     u
     o «
       C   —
       
     — *t
     n O
     — in
       u>
       «

     C  I
nd
nc
as

bo
                      «

                      3
                      «J
                      10

                      91
     U
   ifl —
   w <«•
   C <-
   U O
-• E
«) 0) —
a s- 10
«j._ .—
   3 U
91 9°C

.E£§
u   —
« —u.
u «
   W W

la?
s R£
£ 00

 I  I I
                                                                     (/>
                                                                     V
                          2   -u
                          c   — «
                          a   — w
                          i.   J3 «J
                          (0   SO
O   O  V
        u

i   §-
—   —«
*»   •»—.
•«   >^  (J
e   c  c
—   —  a
—   we
                          •o
                           i
                                      a
                                      (8
                                      u
                                      L.


                                      §
                                                                            ti a
                                                                            u u
                                                  3 ->
                                                  U) V.
                                                  3 «
                                                  — U



                                                  i?
                                                  U) •-

                                                  S -^
                                                  a->

                                                  o'i
                                                                            u o
« —
o-o

« a
"-•o

«3  I
C
                                                                       o

                                                                       5
                                                                                               i.
                                                                                               3
                                                                                               ^
                                                                                               eg
                                                                                               t.
                                                                                               a
                                                                                                      c; a
                                                                                                      = i
                                                                                         >  i/i
                                                                                         <  o
                                                                                               a
                                                                                                                a w
                                                                                                               — O
owner
  u cj
  ®
  *) W
  w O
  IB

  *-> O
 • «
« « o
W O —
u) t, w

gww    —   — s "i: 3 3  '- - >
— CO    —   — >— OS-— 3
t, W C    —   -(B-..OOOOU
o         a   .a
del    «    ce i
C         —   —
                        aw—   w    —

                        £°± 1 = ^.2
                        a >-J   c    u
                        u «j«,oi3 a c
                        3 —    C — w  — x— ** « e
                   W    C — -J *J IB O — «B
                   o    — .o— « — — wen
                          B_^_^   -
                   >   >—
                                                                                                            i  i  i  i  i
                                                                                                                         — -3
                                                                                                                         =.5
 a-s
•a c
 2«

 l  Z
 in o
 = -3
— -3 ji
 s 3 a
— «> o
 u   =
S  s- 4)
   3 >-

 u)   u
 > >u
   u o
:  —
 a	
 u o «
 c Q.*J
 e   c
 t- e o
 3 — •a
 o w—
                                                                                               S  *> 
-------
                                                                                                                OSWER  Pol icy  O.rective
                                                                                                                           J9U76.00-7
01
C

*» C
i.
o E
as
ao
3 0
                 CO
                              CM    —
                              CM    CM
                              o    o
                   vfl

                   G


                   CM 00

                   O «J
   c
   o
   —
   w
   o
   4>
                 •o

                  i
O »

- o
s —

2 O
si a-
a


<- tc
o >
i- a
ID a:
CM

CO
                                                     i
                                                    o
                                     CM
                                      I
             I  I  I  I  t  I  I  I
            eoecettoooococo
                           — CM CM
                            I   I  I
                                                 CM CM
                                                  II
                                                          I
                                                         a
                   s
                    i
                                                            i
                                                            CO
                                        I
                                       PO
                                                                                    — CM    —
                                                                                     II    I
                                                                                                                I  l  l  I  I
                  a
                  o
                                                         C

                                                         fc.
                                                         O
       •a

        a
        l/>

        o
        a

                  a
               M  3}
               e  >
               CD  a
(.       (-        4)
te <•> eg  9        a
o c o  j        o
  « =  «<-      i.
a> B »<- a
4. C£>      * o
3 — *- -a r —   *-

O «J *J  3 Ol 3 t-

M A *^  W 4)  4] w w)
I O-O  9—  ul W) 3
                                        «>    c
                                        3    O
                                        ->    s
                                        ra
                                        -1    (.
                                        u>    CO

                                        S    a


                                        t)    T3
                         C        Gl   •*    C
                         a      * c   c    3
                         -      c -   —    o
                         a      c c        <-
                                ----   <-    01
                         a)      -J ™   o
                         I. >,  - U i.
                         IB w   -O ** O C    U)
                         u—    c      o    *»

                         qj— (AOO)«^>    C
                         U .fl -J   S •>   3 O
                                        a  u
                                                  S  B
                                                  £>-
                                                  3  M
                                      «> i
                                      O
                                             0)
                                             «J
                                             a
                                             —
                                             3
                                             at
                                             4)
                                             cr
                                                                 i



^*
4)
C
3
VI
0
U

in
0
a


^
^
>••
(•
3

eg
(A
 c n
si 	
O (5 Si
b. —
CD
t. •« U
- O on
C 0 U
« >• -
8 w S <_ 0
•o— a i.
C-- C 3

0^ ~ 0
O. as 4) 4) —
B U >- u u
— — 3 3 1
— «>«*»
o ao o «)
u a—— o
« 
s— s
0- O
a— —
u> a **
M— U
v. wi u
• '*^
f v» 3 C
o a—
J U)
221
w 4) 3
o at- o
•> O O v.
<» *»>. >.»

G.CO C > 4)
w s t--o
>»X > 3 C
« 4J 0 «> 3
>
(•till
5
-------
                                                                                                                        ObWLK  foncy  Directive
                                                                                                                                   J9U76.00-7
as
ao
                                                                                                eg
                    0>

                    o
                                                    pg
                                         co    co   ao
                                         i    r   =

             IB       '^3 *•      CO    IB    CO    IB

             ,•%;      C'          r»i    -o    r*>    m
             -      pg	      a   s    s    s
   >i   —
                     pg      — •«~-      pg    M
                              •  C!\J
                     ..      a-  IB
                                                         M
                               ^^ ^h      (Q    CQ   (Q    (Q
                     *          -eu
                     vO—  -5 .-\
                     CM S    C O ••
                     pj u-\    m-	
                                 S   S   S    S
                                 vC   vC   >O    \C
                                 M   M   CVJ    C\J


                                  • • CO  •• (B •• IB •» IB


                                  « j!»  is >.^ * a"N es vA
                                                                              •O


                                                                              IB



                                                                              IB


                                                                              CO*
                                                                           — vfl
                                                                            OM
                                                                            — -o      eji— ) a>   •->
                                                                               CO
                                                                            -
                                                                            — — .

                                                                            IB  CO
                                              TS-C -3   t3
                                              s c =    c
                                              IB IB CO    IB
                                                    f\<
                                                                         Pw P* Pg      Pu pg Pg Pg i
e «)
O 3)1
co —
U, IB
O >
i. O
It 3£

e-o
                                 CM
                                  I
                                                    PJ M PC
                                                    i  i   i
         I     I
        M   «
                                                                         — pg —
                                                                          III
        •o

         a
        •o

         CO

             c
                    IB —
                    a —
£
U
e
              U
              o
                              c
                              o
                              43
                              a
                              o
                              o

                              a
I



O

U
                              M
                              e
                                           3
                                           i/J
                                           O
   I


u> a
•o *»
c u
; a
u a.
   x
                                        3 I
a         ui
<—   ^    «J
—    o    c
_   —    Cfl

01    V    9)
c    a   M

«    e    3
CO   —    d

o    >>   —
a    co    o
o    a,   i-
                                                                  c
                                                                  o
                                                          u
                                                          9
                                                                       c
                                                                  m    co
                                                                  en   -
                                                                  £    a
c      --3
        — am
        A   o
•O .   *> IB 9 —
C    49 U *• U
3    ^ '^ 3  I


o>    ~ a— b
      «) CD u a
                                                                   0)
                                                                  •o
                                M  I  I


                                §
              c
 m         in •o

 e        — s
 0)         U u>

 5      0 — c
 *•   s_ h e °

 (A    O 2
 c   — CBS  -o
 —    *» c « c
       (0 9X3 M
 0)    C — (3
 O   — «> E *»
 C    S    1C
 IB    U. U U) CO
 U    ffl OJ S V
 3    »» u — -a
 u)   s  — eo 3
 m      <-— M
 co  .  .<- o
    tfl i/)Os  <-
 -  • >      O
 •83   -  •<-
-i-   r   >>
 Ci O O   U
 eo •*— Cs  —
 e    *J eo » —
 — c « c u o
 w —— — c ao
       -u. o    01
 v m a>    u o co
 O JJ O <•- 3 — ^
    i C C U  Ol 9)
 n «; cs — •  : >
 c M u £ a — o
 — cos  OS   mo

 L.  I  I  I I  I
-------
                                   1-1              OSWER Policy Directive-
                                                               #9476.00-7
§§264.110; 265.110  Applicability
Overview:

    These sections state that closure requirements (§§264.111-264.115, and
§§265.111-265.115) apply to all owners or operators of hazardous waste
management units/facilities.  Furthermore, survey plat and post-closure care
requirements (§§264.116-264.120, 265.116-265.120) apply only to hazardous
waste disposal units/facilities.  Waste piles and surface impoundments and
tanks from which the owner or operator intends to remove the waste at closure
may also be covered by the post-closure care requirements.  (See §§264.197,
264.228, 264.258, 265.197, 265.228, 265.258: closure and post-closure
technical standards for tanks, waste piles and surface impoundments)
-------
                                   2-1              OSWER Policy  Directive
                                                              #9476.00-7


§§264.111, 265.111  Closure Performance Standard


Overview:

    These sections define the objectives of proper  closure in broad  terms.
The standards state that the owner or operator  must control, minimize or
eliminate the potential for hazardous waste disposal units/facilities to
contaminate the environment or threaten human health.  Furthermore,  they state
that the owner or operator must close the  unit/facility  in a manner  that
minimizes the need for future maintenance.

Changes Made  by the May  2,  1986  Rule:

        •   Section now refers to specific standards in  the
            technical standards subparts.   The  general closure
            performance standard is to be  no less stringent than  the
            process-specific standards. In addition, owners or
            operators must comply with both the procedural and
            technical standards.

        •   Amends "contaminated rainfall" to "contaminated
            run-off" signifying broader application and  clarifying
            use of the term.

        •   Amends "hazardous waste constituents" to "hazardous
            constituents."  The latter term applies to all
            constituents of concern to the Agency  (i.e.,  the
            substances listed in Appendix  VIII), not merely those
            listed in Appendix VII of the  regulations.
-------
                                   3-1
OSWER Policy Directive
           #9476.00-7
§§264.112, 265.112   Closure Plan, Amendment of Plan
Overview:

    These sections require owners or operators  to have a written closure  plan
for each TSD facility.   Furthermore, they include requirements  for  the  content
of the plan, including  the scope of activities  to be described,  as  well as  the
process by which the plan must be or can be amended.  Finally,  they clarify
the rules concerning the deadlines for notification of partial  and  final
closure and the timing  of removal of wastes and decontamination or  dismantling
of equipment.

Changes Made  by the May 2,  1986  Rule:

            •    No longer requires owners and operators to
                maintain plans at the facility.  Facilities  with
                unapproved closure plans must make the plan
                available on the day of a site  inspection (including
                unannounced inspections).  Permitted facilities or
                interim status facilities with  approved plans are
                exempt  from making the plan available on the day of
                inspection unless specifically requested.  (However,
                because a copy of the closure plan is required  as
                part of the permit under §270.14(b)(13), the
                Regional Administrator will have closure plans  for
                permitted facilities available).

            •   Clarifies that the closure plan must address
                how closure of each unit will be conducted (partial
                and final closure).  The new rule mandates greater
                detail  for closure plans including procedures to
                handle  the maximum inventory of hazardous waste at
                partial or final closure and the activities
                necessary to shut-down operations to ensure  that
                closure satisfies the performance standard.

            •    Inclusion of the expected year  of closure is now
                required only of (1) permitted facilities using
                trust funds as their financial  assurance mechanisms
                that intend to close prior to the expiration of
                their permit; (2) facilities without approved plans;
                and (3) interim status facilities using trust funds
                whose remaining operating life is less than  20  years.

            •    Requires that closure plans now address the
                decontamination of equipment, structures and sfoils.

            •    Specifies deadlines for amending the plan if
                an unexpected event occurs during partial or final
                closure.
-------
                                  3-2              OSWER Policy Direct
                                                              #9476.OC
           •   Gives Regional Administrator expanded authority to
               request modification of a closure plan.

           •   Requires owners or operators of storage surface
               impoundments and waste piles not otherwise required
               to prepare contingent plans under §§264.228,
               264.258, 265.228, and 265.258 to submit an amended
               closure plan for approval no later than 60 days from
               the date that the Regional Administrator or the
               owner or operator determines that the unit/facility
               must be closed as a landfill, or no later than 30
               days from that date if the determination is made
               during partial or final closure.

           •   Requires owners or operators of hazardous waste
               tanks not otherwise required to prepare contingent
               closure plans under §§264.197 or 265.197 to submit
               an amended closure plan for approval upon a
               determination by the Regional Administrator or the
               owner or operator that the unit/facility must be
               closed as a landfill.  Because no explicit deadline
               is specified for tank owners or operators to submit
               amended plans, they must do so according to the
               deadlines for modifying closure plans for unexpected
               events (i.e., no later than 60 days after the
               unexpected event has occurred or no later than 30
               days from that date if the event occurs during
               partial or final closure).

           •   Explicitly states that criteria set forth in
               §§270.41 and 270.42 (major and minor permit
               modification criteria) must be used to determine
               whether a proposed change to an approved plan at an
               interim status facility is a major modification.
               Major modifications require public participation.
               Minor ones do not.

,112(d)      •   Applies notification  requirements  to partial
               closure of facilities with land disposal units and
               to final closure for  all  facilities.  Different
               notification requirements apply to land disposal
               units than to tanks,  containers, and incinerators.
               The notification requirements also vary depending on
               whether the unit/facility is permitted or operating
               under interim status.
-------
                                   3-3               OSWER Policy  Directive
                                                               #9476.00-7
            •    Redefines the date when the owner or operator
                "expects to begin closure."  The  owner  or  operator
                may be granted an extension by the Regional
                Administrator if the owner or operator  demonstrates
                that the hazardous waste management unit has
                additional capacity and that the  unit is in
                compliance with the applicable requirements.   The
                length of the extension is at the discretion of  the
                Regional Administrator.

            •    Requires interim status facilities without
                approved plans to submit plans prior to closure  of
                the first disposal unit, or final closure  if no
                disposal units are closed prior to final closure of
                the facility.

            •    Requires the Regional Administrator to  provide the
                owner or operator with a detailed written  statement
                of his/her reasons, if s/he does  not approve a plan
                or modification of a plan.

.112(e)      •    The regulations now explicitly state that
                hazardous wastes may be removed and equipment
                decontaminated and dismantled in  accordance with an
                approved plan at any time before  or after
                notification of partial or final  closure.  For
                interim status facilities without approved plans,
                such activity is permitted if it  satisfies the
                closure performance standard and  if it  can
                ultimately be judged in accordance with the approved
                plan.  If these activities prove  to be  inconsistent
                with the approved plan, the owner or operator  must
                conduct additional closure activities until the
                conditions of the approved plan are met.

Relevant Issues:

.112(b)      •   Closure plans should rely on proven techniques,
                not ones in the R&D stage unless  the owner or
                operator can demonstrate their effectiveness.
                Extensions to the time allowed for closure are not
                granted in cases where the owner  or operator chooses
                an unproven technology in lieu of a proven
                technology.  (Document #G9)

            •    Closure plans that address only final closure  must
                be amended if the owner or operator wants  to
                undertake closure of a unit. (Document  #G11)
-------
                                   3-4              OSWER Policy Directive
                                                              #9476.00-7
            •   Hazardous waste management units must have
               adequate ground-water monitoring systems  in order to
               demonstrate  successful  "clean closure."   The Regions
               should  use post-closure permits, §3004(u) corrective
               action  authority, and §3008(h) corrective action
               orders  to supplement the  regulations to address
               contaminated soil and ground water.  (Document #G12)

            •   Tanks used for periodic storage or to hold
               hazardous wastes from spills are subject  to closure
               requirements, and must  be included in a closure plan
               if hazardous waste was  stored in the tank for more
               than 90 days.  Extensions to the expected date of
               closure may  apply to these units.  (Document #G1)

            •   New hazardous waste management units built
               specifically to accomplish closure require a permit
               modification.  In the case of interim status
               facilities,  the owner  or operator must submit a
               revised Part A, and the Region must  agree that the
               new unit is  necessary to  comply with Part 265
               closure requirements. (Document #G13)

            •   When determining the maximum extent  of operation
               of a facility, the owner  or operator must include
               existing capacity and planned or permitted
               capacity.  (Document #G15)

.112(c)      •   If, after a  closure plan  is approved, certain
               applicable closure regulations change, the Regional
               Administrator will consider whether  the plan must be
               modified to  comply with the new regulations.  The
               decision will be based  on conditions at the site and
               progress of  closure already underway. (Document #G5)

.112(d)      •   Even when  a  facility's  interim status has been
               terminated,  closure and post-closure requirements
               are applicable and enforceable until the  activities
               have been completed as  required by regulation.
               (Document #G4).

            •   When, an owner or operator of a hazardous  waste
               management unit  fails to  notify the  Region of its
               intent  to close, the Region should request submittal
               of the  facility's Part  B  permit application.  This
               action  will  force the facility to  either  (1)
               acknowledge  the  intention of continued operation, or
                (2) submit appropriate  plariS and take action^ to
               close under  interim status.   (Document #G18)
-------
                                   3-5
                            OSVER Policy Directive
                                       #9476.00-7
Supporting  Documents:
        Originator
        Subject
        CFR Cite
        Date
        Document #

        Originator
        Subject
        CFR Cite
        Date
        Document #

        Originator
        Subject
        CFR Cite
        Date
        Document #

        Originator
        Addressee

        Subject
        CFR Cite
        Date
        Document #

        Originator
        Subject

        CFR Cite
        Date
        Document #

        Originator
        Addressee
        Subject
        CFR Cite
        Date
        Document #

        Originator

        Addressee

        Subject
        CFR Cite
        Date
        Document #
RCRA Hotline Monthly Status Report,  Question #8a
Addressing tanks used for spills in the closure plan
§§261.4(c), 264.114, 265.114
September, 1984
Gl

RCRA Hotline Monthly Status Report,  Question #2
Compliance with closure, post-closure and financial
responsibility requirements when interim status is
terminated.
§265.112(d)
December, 1984
G4

RCRA Hotline Monthly Status Report,  Question #7
Amending closure plan following change in regulations
§§264.112(c), 265.112(c)
December, 1982
G5

John H. Skinner, Director, Office of Solid Waste
James J. Scarborough, Chief, Residuals Management
Branch, Region IV
Closure Issues Related to Wood Preserving Plants
§§264.143(b), 265.113(b)
8/7/84
G9

RCRA Hotline Monthly Status Report,  Question #3
Removal of tank from permitted facility when permit
does not address the removal
§§264.112(a), 270.41
June, 1985
Gil

J. Winston Porter, Assistant Administrator
Regional Administrators, Region I-X
RCRA, Policies on Ground-Water Quality at Closure
§§265.117(a), 265.228, 265.258
8/27/85
G12

Bruce R. Weddle, Director, Permits and State Programs
Division
Hazardous Waste Division Directors and Branch Chiefs,
Regions I-X'
Permitting Units Created for Facility Closure
§270.72
10/11/85
G13
-------
                               3-6
                            OSWER Policy Directive
                                       #9476.00-7
8.  Originator

    Addressee

    Subject
    CFR Cite

    Date
    Document #

9.  Originator

    Addressee
    Subject
    CFR Cite
    Date
    Document #
George A Garland, Chief, Financial Responsibility and
Assessment Branch
William H. Taylor, Chief, Enforcement Section, Region
VI
Determination of a Facility's Operating Life
§§264.143(a), 264.145(a), 265.143(a), 265.145(a),
264.112(b), 265.112(b), 265.142(a)
12/3/84
G15

Steve Levy, Permits Branch, State Programs and
Resource Recovery
Regional Solid Waste Branch Chiefs, Regions I-X
Calling in Inactive Disposal Sites (.Issue tv'2)
§§264.113(a), 265.113(a)
5/26/83
G18
-------
                                   4-1              OSWER Policy  Directive
                                                              #9476.00-7
§§264.113; 265.113  Closure, Time Allowed  for Closure
Overview:

    These sections establish deadlines for treatment,  removal,  or disposal of
hazardous waste and completion of partial and final closure.  They also
explicitly state conditions for waivers from these deadlines  and  provide
deadlines for submitting the demonstrations.

Changes Made  by the May  2,  1986 Rule:

        •   Allows the Regional Administrator to grant extensions
            to the time allowed for  handling inventory and
            completing partial and final closure if the owner or
            operator makes  the following demonstrations:

            •   In all cases, the owner or operator has taken and
                will continue to take all steps  to prevent" threats
                to human health and  the environment; and

            •   Either of the following conditions prevail:

                        the required activities  will,  of necessity,
                        take longer  than the regulatory time  limit;
                        or

                        the hazardous waste management unit or
                        facility has the capacity to receive
                        additional hazardous waste, there is
                        reasonable likelihood that s/he or another
                        person will  recommence operations within  one
                        year, and closure of the unit or facility
                        would be incompatible with-continued
                        operation of the site.

            The length of this extension, if these conditions are
            met, is not limited.  This provision enables the
            original owner  or operator to temporarily suspend
            operations as a result of market fluctuations or
            economic conditions without being forced to close the
            unit.  (Documents #G10,  #G23)

        •   The owner or operator must complete  partial and final
            closure activities within 180 days after receipt  of
            final volume of hazardous waste.
-------
                                                    OSWER  Policy Directive
                                                               #9476.00-7
Relevant Issues:
            Solid waste may be accepted after  the  final  receipt  of
            hazardous  waste if and only if  the receipt of  solid
            waste is part of the  approved closure  plan  (e.g.,  the
            solid waste will be used  to bring  a disposal unit  to
            final elevation or to establish the final contour  of the
            unit).  Receipt of solid  waste,  however, should  not:

                   create problems due to  incompatability with
                   hazardous waste or  liners, or
                -- have high organic content, or  high voids ratio
                   which could cause settlement and damage  the
                    final cover,  or
                -- delay closure.   (Background Document,  April
                    1986; Document #G10)

            Extensions to the time allowed  for closure must  be
            related to the need for extra time to  complete
            legitimate closure activities or to a  likely transfer of
            the operation to new  parties.  Extensions cannot be
            granted solely to enable  the same  owner or operator  to
            accept non-hazardous  wastes in  the unit.   (Document  #G10)

            Landfills  engaged in  co-disposal of Hazardous  and
            non-hazardous wastes  can  continue  to accept
            non-hazardous waste in order to complete a partially
            filled hazardous waste unit and close  according  to the
            regulatory requirements.  The owner or operator,
            however, must complete closure  of  the  cell within  the
            180 day closure period.  (Document #G6)

            Irrigation of a vegetative  cover is allowed  in order
            to establish vegetation during  the closure  period  or
            maintain  it during dry spells.   Any liquid  applied to
            the cover, however, cannot  be a hazardous waste.
            (Document  #G6)

            Use of an  unproven technology may  justify  extension  of
            the closure deadline.  If,  however, the  owner  or
            operator  could use a  proven technology to  close  within
            the 180-day period, an extension would not  be  justified.
            (Document  #G9)
-------
                                   4-3
                            OSWER Policy Directive
                                       #9476.00-7
Supporting  Documents:

    1.  Originator

        Addressee

        Subject

        CFR Cite

        Date
        Document #

    2.  Originator

        Addressee

        Subject

        CFR Cite
        Date
        Document #

    3.  Originator
        Addressee
        Subject

        CFR Cite

        Date
        Document #

    4.  Originator

        Addressee

        Subject

        CFR Cite
        Date
        Document #
John H. Skinner, Acting Director, Office of
Solid Waste
Dr. Reva Rubenstein, Director, Institute of
Chemical Wastes Management Association
Interpretation of Closure and Post-Closure
Requirements
§§264.117(c), 265.117(c), 264.111, 265.111,
264.113(b), 265.113(b)
1/11/83
G6

John H. Skinner, Director, Office of Solid
Waste
James J. Scarborough, Chief, Residuals
Management Branch, Region IV
Closure Issues Related to Wood Preserving
Plants
§§264.143(b), 265.11300
8/7/84
G9

Chris Rhyne, HQ Permits Assistance Team
James Reidy, RCRA Permits Section, Region II
Closure Activities and Final Cover (Crucible
Steel)
§§264.11300, 265.11300, 264.117(c),
265.117(c)
9/18/84
G10

Gene A. Lucero, Director, Office of Waste
Programs Enforcement
Hazardous Waste Division Directors, Regions
I-X
Accepting Nonhazardous Wastes After Losing
Interim Status
§§265.113(b), 265.117(c)
12/20/85
G23
-------
                                   5-1               OSWER  Policy Directive
                                                              #9476.00-7
§§264.114; 265.114  Disposal or  Decontamination of Equipment, Structures,
                    and Soils
Overview:

    These sections mandate that all  contaminated parts  of  the unit or
facility, including structures, equipment,  and soil,  must  be disposed of or
decontaminated at partial and final  closure.

Changes Made  by the May 2, 1986 Rule:

        «   Explicitly, states that contaminated soils must be disposed of or
            decontaminated at partial  and final closure.   This  includes soil
            contaminated by any hazardous constituent,  not just hazardous
            wastes known to have been  present  at the  unit/facility.

Relevant Issues:

        •   While EPA recognizes the need to  establish  criteria
            for determining "how clean is clean",  these regulations
            do not address that issue.   The Agency is currently
            developing guidance that specifies how those
            determinations should be made.

        «   The regulations do not require dismantling  of
            equipment. The Agency agrees that  dismantling  is
            expensive and unnecessary.
-------
                                   6-1              OSWER Policy  Directive
                                                               #9476.00-7
§§264.115; 265.115  Certification  of Closure
Overview:

    These sections require the owner or operator  and an independent  registered
professional engineer to certify that the unit  or facility has  been  closed  in
accordance with the approved closure plan.

Changes Made  by the May 2,  1986 Rule:

        •   Requires that certification of land disposal units  be
            submitted within 60 days of the partial closure.
            Certification of closure of a facility is required
            within 60 days of final  closure.  Certification of
            non-land disposal units  may be delayed until closure of
            the next unit subject to the certification requirement
            or until final closure.

        •   Requires that certification of closure be submitted to
            the Regional Administrator by registered mail.

        •   Requires that documentation supporting the
            certification be furnished to the Regional Administrator
            upon request until s/he  releases  the  owner or operator
            from the closure financial assurance  requirements.

Relevant Issues:

        •   Submission of certifications by registered mail
            ensures the availability of a dated record of the
            submission.

        •   The deadlines were established to promote adequate  yet
            timely conduction, documentation, and submission of
            closure certifications.
-------
                                   7-1              OSWER Policy Directive
                                                               #9476.00-7
§§264.116; 265.116  Survey Plat
Overview

    These sections mandate that the owner or operator submit  a survey plat  to
the Regional Administrator and the local zoning or land use authority no  later
than 60 days after completion of closure of each land disposal unit.   The plat
must include the location and dimension of land disposal units with respect to
permanent benchmarks.   It must also contain a note stating the owner  or
operator's obligation to restrict disturbance of the units.

Change Made  by the May 2,  1986  Rule:

        •   Moves the survey plat requirement to §§264.116 and
            265.116 from §§264.119 and 265.119 to clarify that the
            plat is a closure activity rather than a post-closure
            care activity.

        •   Requires that the plat be filed no later than the
            submission of the certificate of closure for each
            hazardous waste disposal unit.

Relevant Issues:

        «   The owner or operator is responsible for providing
            information regarding waste type and location.  In
            preparing the survey plat, the professional land
            surveyor may use the operating log of the facility.
            His/her continual presence at the site during closure is
            unnecessary.

        «   The plat should not be limited to showing the
            designated boundaries of hazardous waste management
            units if areas outside those boundaries are
            contaminated.  The owner or operator, however, is not
            required to include contaminated areas outside the
            facility boundaries.  RCRA Section 3004(v) contains
            special requirements that address such contamination.
            The survey plat requirement does not apply to
            underground injection wells.
-------
                                   8-1              OSWER Policy  Directive
                                                               #9476.00-7
§§264.117, 265.117  Post-Closure Care and Use .of Property
Overview:

    These sections outline the length and basic requirements  of  post-closure
care (i.e.  ground-water monitoring,  monitoring and maintenance of  containment
systems, and security).  In addition, they provide a mechanism by  which  the
Regional Administrator can lengthen or shorten the post-closure  care  period.
Finally, these sections impose restrictions on the use of property.

Changes Made  by the May  2,  1986 Rule:

        •   Applies a 30-year post-closure care period to each
            hazardous waste management unit independently.  There are
            cases, however, where post-closure care for a unit must
            extend for 30 years beyond final closure of the
            facility.  For example,  it might not be possible  to
            establish separate ground-water monitoring systems for
            each unit.  In such instances, it would not be possible
            to differentiate monitoring results for separate  units.

        •   Allows the Regional Administrator to vary the length
            of the post-closure care period at any time prior to the
            closure of a unit or facility, or any time during the
            post-closure care period.

Relevant Issues:

        •   Land disposal units that stopped receiving hazardous
            wastes prior to July 26, 1982 and closed after January
            26, 1983 are subject to post-closure permit requirements
            but not Part 264 ground-water monitoring requirements.
            (Document #G14)

        •   Post-closure use of the property on or in which
            hazardous wastes remain after closure must never  be
            allowed to disturb the integrity of the final cover.
            The only exception is if the owner or operator can
            demonstrate that the disturbance:

            -- Is necessary to the proposed use of the property, and
               will not increase the potential hazard to human
               health or the environment; or

            -- Is necessary to reduce a threat to human health or  the
               environment.
-------
                                   8-2
                                            OSWER Policy Directive
                                                       #9476.00-7
            Owners and operators  must demonstrate  how disturbance
            of the cover would satisfy one of these conditions.
            Owners and operators  must also demonstrate specifically
            how the disturbance will continue to provide  for  control
            of pollutant migration and surface water infiltration
            and other applicable  conditions outlined in §§264.310
            and 265.310.  (Document #G10)

            The cover, etc.  may be disturbed if the disturbance  is
            necessary for remedial action.

            Proposed new land uses need not be approved by the
            Regional Administrator as long as they do not disturb
            the final cover, liner(s), containment system, or
            monitoring system. (Background Document, December 1980)

            An absolute ban on the placement of bulk or
            non-containerized liquid hazardous waste or hazardous
            waste containing free liquids  was irr.posed by  the  HSWA
            Codification Rule of  July 15,  1985. This ban superseded
            the previous regulations which allowed bulk liquids  to
            be added to a closed  unit but  only under very specific
            circumstances.  (Document #G6)
Supporting  Documents
    1.
    2.
Originator

Addressee

Subject

CFR Cite

Date
Document #
Notes
Originator
Addressee
Subject

CFR Cite

Date
Document #
John H.  Skinner, Acting Director,  Office of
Solid Waste
Dr. Reva Rubenstein, Director, Institute of
Chemical Wastes Management Association
Interpretation of Closure and Post-Closure
Requirements
§§264.117(c), 265.117(0), 264.111, 265.111,
264.113(b), 265.113(b)
1/11/83
G6
The discussion of liquids in landfills in
this letter is superseded by the HSWA
Codification Rule of 7/15/85.

Chris Rhyne, HQ Permits Assistance Team
James Reidy, RCRA Permits Section, Region II
Closure Activities and Final Cover (Crucible
Steel)
§§264.113(b), 265.113(b), 264.117(c),
265.117(c)
9/18/84            **
G10
-------
                           8-3
                            OSWER Policy Directive
                                       #9476.00-7
Originator

Addressee

Subject

CFR Cite
Date
Document #

Originator

Subject

CFR Cite
Date
Document #
Notes
Marcia E. Williams, Director, Office of
Solid Waste
Charles Finley, Director, Hazardous Waste
Division, Region X
Applicability of Post-Closure Permitting
Requirements to Non-Regulated Units
§§265.117(a), 270.l(c)
10/25/85
G14

RCRA Hotline Monthly Status Report, Question
#2
Applicability of ground-water monitoring to
regulated units
§265.117(a),264.90(a)
October 1982
G16
The July 15, 1985 Codification Rule
supersedes this document.  §264.90(a) now
provides that the general ground-water
monitoring and corrective action
requirements of Subpart F of Part 264 apply
to landfills,. surface impoundments, waste
piles, and land treatment units that receive
hazardous waste after-July 26, 1982.
-------
                                   9-1              OSWER Policy Directive
                                                               #9476.00-7
§§264.118; 265.118  Post-Closure Plan; Amendment of Plan
Overview:

    These sections outline in broad terms the contents  of the  plan,  describe
the process by which the plan can be or must be amended,  give  the Regional
Administrator authority to request changes,  and provide deadlines for
modifications.

Changes Made  by the May 1,  1986  Rule:

            •   Requires that owners or operators  of interim
                status units/facilities without approved
                post-closure plans have a copy of  the current  plan
                available for inspectors on  the day of  inspections
                (including unannounced inspections). Permitted
                facilities or interim status facilities with
                approved plans are exempt from making the plan
                available on the day of inspection unless
                specifically requested.

            •   Gives Regional Administrator explicit
                authority to request modification  of the  plan.

            •   Makes plan modification procedures for  interim
                status units/facilities consistent with permitted
                units/facilities.  The Regional Administrator  should
                use §270.41 and §270.42 to determine if a proposed
                change is minor or major.

            •   Requires that owners or operators  of storage
                surface impoundments and waste piles not  otherwise
                required to prepare contingent post-closure plans
                under §§264.228, 264.258, 265.228, and  265.258 must
                submit a post-closure plan for approval within 90
                days after the Regional Administrator or  the owner
                or operator determines that  the unit must be closed
                as a landfill.

            •   Requires that owners or operators  of hazardous
                waste tanks not otherwise required to prepare
                contingent post-closure plans under §§264.197  and
                265.197 must submit a post-closure plan for approval
                upon a determination by the Regional Administrator
                or the owner or operator that the unit  oust be
                closed as a landfill.  Because no explicit deadline
                is specified for tank ownersror operators to submit
                post-closure plans, they must, do so according to the
                deadlines for modifying post-closure care plans for
                unexpected events  (i.e., no later than 60 days after
                the unexpected event has occurred).
-------
                                   9-2
                                            OSWER Policy Directive
                                                       #9476.00-7
                Requires that owners or operators  of interim
                status facilities submit post-closure plans  180  days
                prior to closure of the first land disposal  unit
                rather than prior to final closure of the entire
                facility.

                Requires the Regional Administrator to provide
                the owner or operator with a detailed written
                statement of his/her reasons, if s/he does not
                approve a plan or modification of  a plan.
Relevant Issues:
            Approved post-closure plans become the conditions  of
            the permit and,  as such,  all amendments to the plan are
            considered permit modifications.

            The omnibus provision of  HSWA enables the
            Administrator (or State)  to add conditions to a
            facility's operating or post-closure care permit as
            necessary to protect human health or the environment.
            (Document #G22)

            Post-closure care requirements are enforceable even
            when a facility's interim status  has been terminated.
            (Document #G4)
Supporting  Documents:

    1.  Originator  :
        Subject
    2.
CFR Cite
Date
Document #

Originator
Subject

CFR Cite
Date
Document #
RCRA Hotline Monthly Status Report,  Question #2
Compliance with closure, post-closure and financial
responsibility requirements when interim status is
terminated.
§265.112(d)
December, 1984
G4

RCRA Hotline Monthly Status Report,  Question #2
Additional authority for permit writer provided under
Omnibus provision of HSWA
§§264.118(a)
February, 1986
G22
-------
                                   10-1             OSWER  Policy Directive
                                                              #9476.00-7
§§264.119; 265.119  Post-Closure Notices
Overview:

    These sections require the owner  or operator  to provide  information to  the
local zoning or land use authority concerning  the type,  quantity  and  location
of wastes within each cell or disposal unit  following closure  of  that  unit.
Furthermore, the owner or operator must place  a notice in  the  deed notifying
potential purchasers that the land was used  to manage hazardous waste, its  use
is restricted, and that there is a survey plat on file.  In  addition,  the
regulations provide for procedures for removing hazardous  waste during the
post-closure care period.

Changes Made by the May 2,  1986  Rule:

        •   Moves survey plat requirement to §264.116 and  §265.116.

        •   Makes the requirement of  submitting post-closure
            notices to the local land authority applicable to
            partial closures.  Notices to the  deed must be submitted
            following the closure of  the first and last land
            disposal units only.

        •   Established deadlines for submitting  the  deed  notice.

        •   Requires that the owner or operator of a  permitted
            unit/facility request a permit modification before
            removing hazardous waste.  The owner  or operator of an
            interim status unit/facility must  request the  Regional
            Administrator to approve  amendments to the post-closure
            plan prior to removing hazardous wastes.

        •   Enables owners or operators who  remove wastes  to
            request the Regional Administrator to approve  either
            removal of the deed notice or addition of a notice
            indicating that all the hazardous  wastes  have  been
            removed.
Supporting Documents:

    1.  Originator  :    Arthur Day, Acting Program Manager, Land
                        Disposal Branch, Office of Solid Waste
        Addressee   :    Kenneth Schuster, Chief, Land Disposal .
                        Branch, Office of Solid Waste
        Subject     :    Trip Report:  RegionrX - Closure Standards
                        for Disposal Facilities               '
        CFR Cite:       §§264.119, 265.119
        Date        :    8/10/83
        Document #  :    G7
-------
                                   11-1             OSWER Policy Directive
                                                               #9476.00-7
§§264.120; 265.120  Certification of  Completion of  Post-Closure  Care
Overview:

    These sections, added under the May 2, 1986 rule, require that the owner
or operator certify that post-closure care was performed in accordance with
the approved post-closure plan.  The certification must be submitted to the
Regional Administrator, by registered mail, no later than 60 days after
completion of the post-closure care period for each unit.  Both the owner or
operator and an independent registered professional engineer must sign the
certificate.

Relevant issues:

        •   Periodic certifications are not necessary for all disposal units
            but might be desirable in some cases based on site-specific
            factors.  In these instances, additional certification
            requirements could be incorporated into the post-closure plan
            since such plans are required to include a detailed schedule of
            activities.

        •   In cases where land is transferred during the post-closure care
            period", a prudent new owner or operator should ask for
            certification from the initial owner as a condition of sale.  Such
            certification, however, is not required as a condition of sale.
            The new owner, however, would be responsible under §§270.40 and
            270.72(d) for certifying the completion of post-closure care.
-------
                                   12-1             OSWER Policy Directive
                                                               #9476.00-7


§§264.140; 265.140  Applicability of Financial Requirements

Overview:

    These sections discuss the applicability of financial assurance
requirements for closure and post-closure care to owners or operators of
hazardous waste facilities.  Specifically, owners or operators of all
treatment, storage, and disposal facilities are subject to the financial
assurance requirements for closure.  Financial assurance requirements for
post-closure care are applicable to owners or operators of all facilities
required to prepare post-closure care plans (all disposal facilities under
Parts 264 and 265, including treatment and storage facilities that must be
closed as landfills) and contingent post-closure care plans (surface
impoundments and waste piles not meeting specified liner requirements under
Part 264, and tank systems not meeting specified secondary containment
requirements under Parts 264 and 265).  States and the Federal government are
exempt from Subpart H requirements.

    Relevant Issues:

        •   Section 256.140(c) exempts States and the Federal government
            from the requirements of this Subpart.  The Agency interprets this
            exemption to mean that where one party (the owner or the operator)
            is an exempted party because it is a State or Federal governmental
            unit, the other, private sector party need not comply with the
            Subpart H requirements.  However, a State or Federal agency own«r
            may, of course, require the private sector operator by contractual
            agreement to demonstrate financial responsibility (Document #H1)

        *   Counties are not exempt from Subpart H financial requirements.
            (Document ?>H3)

        •   State financial responsibility regulations that do not exempt
            Federal facilities from compliance would not act as a barrier to
            final authorization.  State regulations that require Federal
            facilities to provide closure and post-closure care financial
            assurance and liability coverage represent a "more extensive"
            rather than a "more stringent" version of the Federal program.
            Only "more stringent" State provisions become part of the
            Federally authorized program.  EPA does not, therefore, play a
            role in implementing or enforcing a State regulation that makes
            financial assurance requirements applicable to Federal
            facilities.   (Document #H21)
-------
                               12-2
                                            OSWER Policy Directive
                                                       #9476.00-7
Supporting  Documents:

1
Originator
Addressee

Subject

CFR Citation
Date
Document #

Originator
Addressee

Subject

CFR Citation
Date
Document #

Originator
Subject
CFR Citation
Date
Document #

Originator
Addressee

Subject
CFR Citation
Date
Document #
John J. Skinner, Acting Director,  Office of Solid Waste
Bradley E. Dillon, Associate General Counsel,  U.S.
Ecology, Inc.
Applicability of the Subpart H financial responsibility
requirements
§§264.140(c); 265.140(c)
1/5/83
HI

John J. Skinner, Director, Office of Solid Waste
Harry Seraydarian, Director, Toxics and Waste
Management Division, Region IX
U.S. Ecology's Nevada facility and financial
responsibility
§§264.140(c); 265.140(c)
1/30/84
H2

RCRA Hotline Monthly Status Report - Issue A
County exclusion
§§264.140(c); 265.140(c)
May 1982
H3

John J. Skinner, Director, Office of Solid Waste
Stephen R. Wassersug, Director, Air and Waste
Management Division, Region III
State financial regulations
§§264.140(c); 265.140(c)
12/14/83
H21
-------
                                   13-1
                                OSWER Policy Directive
                                           #9476.00-7
§§264.142; 265.142; 264.144; 265.144
Post-Closure Care
                  Cost Estimate for  Closure and
Overview:

    These sections require the preparation and update of the  cost  estimates
for closure and post-closure care of hazardous waste management  facilities.
They provide broad guidelines for preparing an initial estimate, state when
and how the owner or operator shall adjust the estimate, and  include
recordkeeping provisions for the most recently adjusted estimates.

    Changes made by the May  2,  1986 rule:
     142(a);
     144(a)
    ,142(a);
    ,144(a)
     ,142(b);
     ,144(b)
     ,142(b);
     ,144(b)
     142(c);
     ,144(c)
The closure or post-closure cost estimate must
be "detailed";  the owner or operator should
provide sufficient information so that the estimate
can be evaluated by the Regional Administrator.

The closure or post-closure cost estimate must
be based on third-party costs.  A third party is
neither a parent nor a subsidiary of the owner or
operator.

The owner or operator must update closure and
post-closure cost estimates for inflation within
60 days prior to the anniversary of the establishment
of the financial instrument(s).   For owners or
operators using the financial test or corporate
guarantee, the closure and post-closure cost estimate
must be updated for inflation within 30 days after
the close of the firms' fiscal year and- before
submission of updated information to the Regional
Administrator.

The owner or operator may adjust the closure
or post-closure cost estimate for inflation by
either (1) recalculating the costs annually in
current dollars, or (2) applying a published price
deflator to the previous year's estimate.

The owner or operator must revise the closure or
post-closure cost estimate within 30 days after
the Regional Administrator approves the request to
modify the closure or post-closure care plan when a
change in the closure or post-closure care plan
increases the cost of clpsure or post-closure care.
Owners or operators of interim status facilities who
do not have approved closure or post-closure care
plans must revise the closure or post-closure cost
estimate no later than 30 days after a revision has
been made to the closure or post-closure care plan
which increases the cost of closure or post-closure
care.
-------
                               13-2             OSWER Policy Directive
                                                           #9476.00-7
Changes made  by the May 2,  1986  rule which  apply only to
closure cost estimates:
                                                         \
.142(a)       Third-party labor costs must be  included for
              managing wastes on site.  In addition, if the
              owner or operator wishes to dispose on site, he
              must demonstrate that on-site disposal capacity
              will be available at all times over the life of
              the facility.

.142(a)       The owner or operator may not incorporate into
              the closure cost estimate any salvage value
              associated with wastes, equipment,  structure or
              other facilities assets at the time of partial or
              final closure.

.142(a)       The owner or operator may not incorporate into
              the closure cost estimate zero costs for hazardous
              waste that might have economic value.

Relevant Issues:

    •   The owner or operator may prepare estimates himself  or
        obtain expert assistance;

    •   The owner or operator may revise the closure or
        post-closure cost estimate downward if changes in the
        closure or post-closure plan decrease  costs.

    •   The inflation factor for updating the  closure and
        post-closure cost estimates is determined by dividing
        the latest annual Implicit Price Deflator for Gross
        National Product by the previous annual deflator.
        (Document:  #H6)

    •   EPA believes that there is no guarantee that there
        will be a market for wastes stored prior to recycling
        and that these wastes will be in a salable condition
        when recycled.  For this reason, such  wastes should  be
        considered a liability when calculating closure cost
        estimates.  The closure cost estimate  must therefore
        include the costs of shipping these wastes off site, or
        the third-party costs of handling such wastes on site if
        capacity is available.  (Document:  #H8,  Question 5)
-------
                               13-3
                             OSVER Policy Directive
                                        #9476.00-7
Supporting Documents:
    Originator
    Subject
    CFR Citation
    Date
    Document #

    Originator
    Addressee

    Subject
    CFR Citation
    Date
    Document #
    Note
    Originator
    Subject

    CFR Citation

    Date
    Document #
    Note
4.  Originator

    Addressee
    Subject
    CFR Citation
    Date
    Document #
RCRA Hotline Monthly Status Report - Question 8
Implicit price deflator
§§264.142(e); 264.144(c); 265.142(c); 265.144(c)
May 1983
H5

John H. Skinner, Director, Office of Solid Waste
James H. Scarborough, Chief, Residuals Management
Branch, Region IV
Closure cost estimates based on third-party costs
§§264.142(a); 265.142(a)
1/12/84
H7
The contents of this memo have been superseded by the
May 2S 1986 rule.

RCRA Hotline Monthly Status Report - Question 1
Inflation factor for updating closure or post-closure
cost estimates
§§264.142(b); 264;142(c); 264.144(b); 264.144(c);
265.142(b); 265.142(c); 265.144(b); 265.144(c)
January 1984
H6
The portion of the answer concerning deadlines and
milestones for updating cost estimates has been
superseded by the May 2,  1986 rule.

George A. Garland, Chief, Financial Responsibility and
Assessment Branch
William H. Taylor, Chief, Enforcement Section, Region VI
Wastes stored prior  to recycling are a liability
§§264.142(a); 265.142(a)
12/3/84
H8, Question 5
-------
                                   14-1             OSWER Policy Directive
                                                               #9476.00-7
§§264.143; 265.143; 264.145; 265.145  Financial Assurance for Closure and
Post-Closure Care
§§264.143(a); 264.145(a); 265.143(a);  265.145(a)   Trust Funds

Overview:

    These sections establish the requirements for owners  or operators  who
demonstrate financial assurance for closure and post-closure care by
establishing a trust fund.  The provisions establish the  pay-in period for  the
trust fund and specify the formula by  which annual payments must be
determined.  The provisions also allow accelerated payments and require that
the value of the fund be increased if  the cost estimate changes.   Owners or
operators may request a release of funds if they  substitute other financial
assurance for all or part of the trust fund and may request reimbursements  for
partial or final closure or post-closure care expenditures as they are
incurred.

    Changes made  by the May  2,  1986  rule:

    264.143(a)(10);       The owner or operator may request
    265.143(a)(10)        reimbursements for partial closure only if
                          sufficient funds, exclusive of  future inflation
                          adjustments, are remaining in the trust fund to
                          cover the maximum costs of closing the facility over
                          its remaining life.

    264.143(a)(lO);       If the Regional Administrator does not
    265.143(a)(10)        instruct the trustee to make reimbursements  for
                          "partial or final closure or post-closure care
                          expenditures, he must provide the owner or operator
                          with a detailed written statement of the reasons  for
                          denying reimbursements.

    Relevant Issue:

        •   The pay-in period for the  trust fund  must be  calculated for the
            facility as a whole.  If the facility has more than one unit, the
            end of the facility's active life (for purposes of calculating  the
            trust fund pay-in period)  will be the year when the owner  or
            operator expects to close  the last unit (assuming this period is
            less than the permit life  or 20 years).  (Document:  #H8,  Question
            3; #H25, Question 3)
-------
                               14-2
                             OSWER Policy Directive
                                        #9476.00-7
Supporting Documents:

1.  Originator
    Addressee
    Subject

    CFR Citation
    Date
    Document #
    Originator

    Addressee
    Subject

    CFR Citation
    Date
    Document #

    Originator
    Subject

    CFR Citation
    Date
    Document #
George A. Garland, Chief, Financial Responsibility and
Assessment Branch
William H. Taylor, Chief, Enforcement Section,  Region VI
Calculation of a facility's operating life for
determining trust fund pay-in period
§§264.143(a); 264.145(a); 265.143(a); 265.145(a)
12/3/84
H8, Question 1
George A. Garland, Chief, Financial Responsibility and
Assessment Branch
William H, Taylor, Chief, Enforcement Section,  Region 6
Payments to the trust fund are based on the facility as
a whole
§§264.143(a); 264.145(a); 265.143(a); 265.145(a)
12/3/84
H8, Question 3

RCRA Hotline Monthly Status Report - Question 3
Determination of pay-in period for a facility with more
than one unit
§§264.143(a); 264.145(a); 265.143(a); 265.145(a)
June 1986
H25, Question 3
-------
                                   14-3             OSVER Policy Directive
                                                               #9476.00-7


§§264.143(b) and  (c); 264.145(b)  and (c); 265.143(b); 265.145(b)  Surety
Bonds

Overview:

    These sections establish the requirements  for owners  or  operators who
demonstrate financial assurance for closure or post-closure  care by obtaining
a surety bond.   Surety bonds guaranteeing performance of  closure or
post-closure care can be used by owners or operators of permitted  facilities
only; surety bonds guaranteeing payment into a closure or post-closure  trust
fund can be used by owners or operators of both permitted and  interim status
facilities.  The provisions require that owners or operators who use a  surety
bond must also establish a standby trust fund, into which all  payments  made
under the terms of the bond will be deposited.  Performance  bonds  must
guarantee that the owner or operator will perform closure or post-closure care
according to the closure or post-closure care  plan or other  permit
requirements, or provide alternative assurance.  Payment  bonds must guarantee
that the owner or operator will fund the standby trust fund  in an  amount equal
to the penal sum of the bond, which must be at least equal to  the  cost
estimate, or provide alternate financial assurance.  If the  owner  or operator
fails to pay or perform as specified by the bond, the surety will  become
liable on the bond obligation.  The provisions also specify  the circumstances
under which the surety or the owner or operator may cancel the bond.

    Changes made  by the May 2,  1986  rule:

    264.143(c)(5);        A final administrative determination under
    264.145(c)(5)          Section 3008 of RCRA that the owner  or operator
                          has failed to perform final closure  or post-closure
                          care in accordance with the approved closure  or
                          post-closure care plan is required before the surety
                          must perform closure or post-closure care or  deposit
                          the penal sum of the bond into  the standby trust
                          fund.
-------
                                   14-4             OSVER Policy Directive
                                                               #9476.00-7


§§264.143(d); 264.145(d); 265.143(c); 265.145(c)  Letters of Credit

Overview:

    These sections establish the requirements for owners  or operators  who
demonstrate financial assurance for closure and post-closure care by obtaining
a letter of credit.  The provisions require that owners or operators who
obtain a letter of credit must also establish a standby trust fund,  into which
all payments made under the terms of the letter of credit will be deposited.
The letter of credit must be irrevocable,  and must be issued in an amount at
least equal to the cost estimate.  The Regional Administrator may draw on the
letter of credit if the owner or operator  fails to perform closure or
post-closure care in accordance with the closure or post-closure care  plan.
The Regional Administrator will also draw  on the letter of credit if the owner
or operator does not establish alternate financial assurance after the issuing
institution decides not to extend the term of credit beyond the expiration
date.

    Changes made by the May 2,  1986  rule:

    264.143(d)(8);        A final administrative determination under
    264.145(d)(9);        Section 3008 of RCRA that the owner or operator
    265.143(c)(8);        has failed to perform final closure or
    265.145(c)(9)         post-closure care in accordance with the approved
                          closure or post-closure care plan is required before
                          the Regional Administrator may  draw on the letter of
                          credit.
-------
                                   14-5             OSWER  Policy  Directive
                                                              #9476.00-7


§§264.143(e); 264.145(e);  265.143(d); 265.145(d)  Closure/Post-Closure Care
Insurance

Overview:

    These sections establish the requirements for owners or  operators who
demonstrate financial assurance for closure and post-closure care by obtaining
insurance.   The provisions require that the insurance  policy must be issued
for a face amount (the total amount the insurer is obligated to pay under the
policy) at least equal to the cost estimate for closure or post-closure care
and that the owner or operator must increase the face  amount or obtain other
financial assurance if the cost estimate increases.  The insurer  may cancel,
terminate,  or decide not to renew the policy only if the owner or operator
fails to pay the premium.

    Changes made by the May  2,  1986  rule:

    264.143(e)(5);        The owner or operator may request
    265.143(d)(5)         reimbursements for partial closure only if
                          sufficient funds, exclusive  of future inflation
                          adjustments,  are remaining in the  insurance policy
                          to cover the maximum costs of closing the facility
                          over its remaining life.

    264.143(e)(5);        If the Regional Administrator does not
    265.143(d)(5)         instruct the insurer to make reimbursements  for
                          partial or final closure or  post-closure care
                          expenditures, he must provide the  owner or operator
                          with a detailed written statement  of the reasons  for
                          denying reimbursements.

    Supporting  Document:

    .1.  Originator  :  RCRA Hotline Monthly Status Report  -  Question 2
        Subject     :  Letter from broker stating that the broker is seeking
                       insurance
        CFR Citation:  §§265.143(d); 265.145(d)
        Date        :  June 1982
        Document #  :  Hll
-------
                                   14-6             OSWER Policy Directive
                                                               #9476.00-7


§§264.143(f);  264.145(f);  265.143(e);  265.145(e)   Financial Test and
Corporate  Guarantee

Overview:

    These sections establish the requirements for owners or operators who
demonstrate financial assurance for closure and post-closure care by using the
financial test or corporate guarantee.  The provisions specify the criteria
the owner or operator must meet to pass the financial test and the documents
that must be submitted to the Regional Administrator.  The Regional
Administrator may request reports of financial condition from an owner or
operator at any time, if he has reason to believe that the owner or operator
no longer meets the requirements of the financial test.  If the owner or
operator or Regional Administrator determines that the owner or operator is no
longer able to meet the financial test requirements, the owner or operator
must provide alternate financial assurance.  The Regional Administrator may
also disallow the use of the financial test on the basis of qualifications
expressed by an independent auditor on his examination of the financial
statements of the owner or operator.  Likewise, a guarantor, who must be the
direct corporate parent of the owner or operator, may provide financial
assurance for the owner or operator by meeting the requirements of the
financial test.  The corporate guarantee provisions require that if the owner
or operator fails to perform final closure or post-closure care in accordance-
with the closure or post-closure care plan, the guarantor will either perform
the required closure or post-closure care activities or establish a trust fund.

    Changes made by the May 2,  1986 rule:

    264.143(f)(2);        An owner or operator seeking to use the
    264.145(f)(2);        financial test or corporate guarantee to
    265.143(e)(2);        demonstrate financial responsibility must
    265.145(e)(2)         include the most current cost estimates of the
                          plugging and abandonment costs of Class I
                          underground injection control (UIC) facilities, if
                          applicable, when calculating the sum of closure and
                          post-closure cost estimates.

    Relevant  Issues:

        •   "Liabilities," for purposes of the financial test, are defined
            in §§264.141(f) and 265.141(f) as "probable future sacrifices of
            economic benefits arising from present obligations to transfer
            assets or provide services to other entities in the future as a
            result of past transactions or events."  A liability must
            therefore fulfill three conditions:   (1) it must involve a present
            duty or responsibility to transfer or use assets at a detertninable
            date;  (2) it must be unavoidable*4, and (3) the eve^t obligating the
            transfer or use of assets must have already occurred.  (This
            definition is consistent with the definition of  liabilities  in
            Financial Accounting Standards Board Concepts Statement #3,
            "Elements of Financial Statements of Business Enterprises,"
            paragraphs 28 and 29).   (Document #H9)
-------
                               14-7
                             OSWER Policy Directive
                                        #9476.00-7
        An ex-parent company may not provide a corporate guarantee for a
        newly independent company.   The newly independent company must
        establish its own financial assurance and this assurance must be
        in place when it becomes independent.  (Document #H4)

        For the financial test, the most recently issued bond, rated by
        Moody's or Standard and Poor's, 'must be used to determine if the
        company meets the bond rating requirements.   (Document #H12)

        No one other than a Chief Financial Officer may sign financial
        assurance and liability coverage demonstration letters for the
        financial test.   (Document #H13)
Supporting  Documents:
1.  Originator
    Subject
    CFR Citation
    Date
    Document #

2.  Originator
    Addressee
    Subject

    CFR Citation
    Date
    Document #

3.  Originator
    Subject

    CFR Citation
    Date
    Document #

4.  Originator
    Subject
    CFR Citation
    Date
    Document #

5.  Originator
    Subject

    CFR Citation
    Date
    Document #
RCRA Hotline Monthly Status Report - Question 2
Definition of "liabilities"
§§264.143(f); 264.145(f); 265.143(e); 265.145(0
.larch 1986
H9

William D. Ruckelshaus
Allan B. Mitchell, Mitchell & Schultz, Inc.
Capital requirement of the financial test for assurance
of closure and post-closure care
§§264.143(f); 264.145(f); 265.143(e); 265.145(e)
12/9/83
H10

RCRA Hotline Monthly Status Report - Question 1
Financial assurance requirements for a subsidiary
company which becomes an independent company
§§264.l43(f); 264.145(f); 265.143(e); 265.145(e)
December 1984
H4

RCRA Hotline Monthly Status Report
Date of issue used for financial test
§§264.143(f); 264.145(f); 265.143(e); 265.145(e)
March 1983
H12

RCRA Hotline Monthly Status Report - Question 5
Demonstration letters for financial test must be sent
by the Chief Financial Officer
§§264.143(f); 264.145/f); 265.143(e); 265.145(e)
April 1984                            '
H13
-------
                           14-8             OSWER Policy Directive
                                                       #9476.00-7
Originator  :   RCRA Hotline Monthly Status Report - Issue B
Subject     :   Definition of the term "assets in the United States'
CFR Citation:   §§264.143(f); 264.145(f); 265.143(e); 265.145(e)
Date        :   April 1982
Document #  :   H14
-------
                                   14-9             OSVER Policy Directive-
                                                               #9476.00-7


§§264.143(g); 264.145(g); 265.143(f); 265.145(f)'  Use of Multiple  Financial
Mechanisms

Overview:

    These sections allow owners or operators who use trust funds,  surety bonds
guaranteeing payment into a trust fund, letters of credit, and insurance to
satisfy the financial assurance requirements by establishing more than one
financial mechanism per facility.
-------
                                   14-10             OSWER Policy Directive
                                                               #9476.00-7


§§264.143(h); 264.145(h); 265.143(g);  265.145(g)   Use of a Financial
Mechanism for Multiple Facilities

Overview:

    These sections allow owners or operators to use one financial assurance
mechanism to meet the financial assurance requirements for more than one
facility.  The amount of funds available through the mechanism must be no less
than the sum of funds that would be available if a separate mechanism had been
established and maintained for each facility.
-------
                                   14-11             OSVER Policy Directive
                                                              #9476.00-7 '


§§264.143(i); 264.145(i); 265.143(h); 265.145(h) • Release of  Owner/Operator
From  Requirements for Financial Assurance for Closure and Post-Closure Care

Overview:

    These sections establish procedures  for  releasing  the owner or operator
from financial  assurance requirements  for  closure or post-closure care once
closure or post-closure care has  been  certified.

    Changes made by the May 2, 1986 rule:

    264.143(0;       Within 60 days after receiving the certifications
    264.145(0;       of  final closure or completion of post-closure
    265.143(h);       care from both the owner or operator and an
    265.145(h)         independent registered professional engineer, the
                      Regional  Administrator will release the owner or
                      operator  from financial assurance  requirements.  If the
                      Regional  Administrator has reason  to believe that
                      closure or  post-closure care was not conducted in
                      accordance  with  the  approved plans, he may refuse to
                      release the owner  or operator from financial
                      responsibility,  and must provide the owner or operator
                      with a detailed  written statement  of his reasons.
-------
                                   15-1             OSWER Policy Directive
                                                               #9476.00-7


§§264.147; 265.147  Liability Requirements


Overview:

    These sections require owners or operators of hazardous waste treatment,
storage, or disposal facilities to demonstrate financial responsibility for
sudden accidental occurrences.  Similarly,  they require owners or operators of
surface impoundments, landfills, or land treatment facilities to demonstrate
financial responsibility for non-sudden accidental occurrences.   Financial
responsibility has been interpreted by EPA to include the ability to pay for
bodily injuries and property damages to third parties that result from the
operation of hazardous waste management facilities.   Additional  provisions of
these sections include requests for variances and periods of coverage.
Financial responsibility may be demonstrated by use of the facility liability
endorsement/certificate of insurance, the financial test, or the corporate
guarantee.

Changes made by the May  2,  1986 rule:

    .147(e)       Within 60 days after receiving certifications  of final
                  closure,  the Regional Administrator will notify the owner or
                  operator in writing that he is no longer required to
                  maintain liability coverage, unless the Regional
                  Administrator has reason to believe that closure has not
                  been in accordance with the approved plan.

    Relevant  Issues:

        •   In using the word "occurrence" in the Hazardous" Waste Facility
            Certificate of Liability Insurance, the EPA did not intend to
            limit the insurance policies which may be used to meet the
            requirements of 40 CFR 264.147 or 265.147 to occurrence-based
            policies, to exclude claims-made policies, or to amend claims-made
            policies so that they respond on an occurrence basis.  Similarly,
            use of the terms "sudden accidental occurrence" and "non sudden"
            accidental occurrence" in the certificate does not preclude use of
            other terms, such as "environmental impairment" or "pollution
            incident," in the insurance policies to describe the extent of
            coverage.  The Agency does not intend that the certificate
            language should modify the contractual obligations regarding
            extent of coverage under the insurance policies used to satisfy
            liability coverage requirement.   (Document #H15)

        •   An owner or operator who chooses to demonstrate financial
            responsibility for both sudden and non-sudden accidental
            occurences through insurance may.,jobtain a single policy to cover
            both sudden and non-sudden accidental occurences if the policy
            provides coverage for at least the sum of the sudden and
            non-sudden minimum limits.   (Document #H16)
-------
                               15-2
                             OSWER Policy Directive
                                        #9476.00-7'
        There is no EPA requirement that a. facility give an insurance
        company advance notice of cancellation or termination of an
        insurance policy.   (Document #H18)

        For the financial  test, the most recently issued bond,  rated by
        Moody's or Standard and Poor's,  must be used to determine if the
        company meets the  bond rating requirement.   (Document #H12)

        No one other than  a Chief Financial Officer may sign financial
        assurance and liability coverage demonstration letters  for the
        financial test.  (Document #H13)

        Liability insurance is required on a per-firm basis rather than
        a per-facility basis.   The requirement for the use of an annual
        aggregate liability coverage accounts for the risk of multiple
        occurrences among  facilities belonging to the same owner or
        operator.  (Document #H19)

        A facility should  have sudden and non-sudden liability insurance
        until certification of final closure is received either by the
        Regional Administrator or State Director, depending on whether the
        state has program  authorization.  (Document #H24)

        The words "sudden" and "non-sudden" may be added to the wording
        of endorsements or certificates of insurance to indicate the
        monetary limits when one endorsement or certificate is  used for
        both types of coverage.  (Document #H22)
Supporting  Documents:
1.  Originator

    Addressee
    Subject

    CFR Citation
    Date
    Document #

2.  Originator

    Addressee
    Subject
    CFR Citation
    Date
    Document #
Bruce R. Weddle, Acting Director, State Programs and
Resource Recovery Division
Dr. B. M. Aickin, Director, ERAS (International Limited)
Clarification of terms used in hazardous waste
facilities certificates of liability insurance
§§264.147(a); 264.147(b); 26S.147(a); 265.147(b)
10/8/82
HIS

George A. Garland, Chief, Financial Responsibility and
Assessment Branch
Charles W. Shipley
Insurance coverage limits
§§264.147(a); 264.147(b); 265.147(a); 265.147(b)
11/20/84
H16
-------
                                15-3
                             OSWER Policy Directive
                                        #9476.00-7
 3.  Originator
    Addressee
    Subject

    CFR  Citation
    Date
    Document #

 4.  Originator
    Subject
    CFR  Citation
    Date
    Document #

 5.  Originator
    Subject
    CFR  Citation
    Date
    Document #

 6.  Originator
    Subject

    CFR  Citation
    Date
    Document #

 7.  Originator
    Subject
    CFR  Citation
    Date
    Document #

 8.  Originator
    Subject
    CFR  Citation
    Date
    Document #

 9.  Originator
    Subject
    CFR  Citation
    Date
    Document #

10.  Originator
    Subject
    CFR  Citation
    Date
    Document #
John J. Skinner, Director,  Office of Solid Waste
Regional Division Directors, Regions I-X
Availability of Environmental Impairment Liability
(EIL) insurance
§§264.147(b); 265.147(b)
11/28/84
H17

RCRA Hotline Monthly Status Report - Question 3
Termination of insurance
§§264..147(a); 264.147(b); 265.147(a); 265.147(b)
February 1983
RCRA Hotline Monthly Status Report
Date of bond issue used for financial test
§§264.147(f); 265.147(f)
March 1983
H12

RCRA Hotline Monthly Status Report - Question 5
Demonstration letters for financial test must be sent
by Chief Financial Officer
§§264.147(f); 265.147(f)
April 1984
H13

RCRA Hotline Monthly Status Report - Question 6
Liability coverage for multiple facilities
§§264.147(a); 264.147(b); 265.147(a); 265.147(b)
November 1984
H19

RCRA Hotline Monthly Status Report - Issue B
Definition of the term "assets in the United States"
§§264.147(f); 265.147(f)
April 1982
H14

RCRA Hotline Monthly Status Report - Question 2
Applicability of liability coverage requirements
§§264.147(e); 265.147(e)
January  1985
H24

RCRA Hotline Monthly Status Report - Question 4
Distinguishing between sudden  and non-sudden insurance
§§264.147(g); 265.147(g)              '
June  1982
H22
-------
                                   16-1             OSWER Policy Directive
                                                              #9476.00-7
§§264.149, 265.149  Use of State-Required Mechanisms
Overview:

    These sections allow a facility located in an unauthorized  State, with  a
hazardous waste program that includes requirements for financial  assurance  for
closure or post-closure care or liability coverage,  to use  State-required
financial mechanisms to meet the requirements of §§264.143,  264.145,  264.147,
265,143, 265.145, or 265.147.  The Regional Administrator must  determine that
the State mechanisms are "at least equivalent" to Subpart H financial
mechanisms.  If the State-required mechanism does not assure adequate funds to
meet Federal requirements, the owner or operator may satisfy the  Federal
requirements by increasing the funds available through the  State-required
mechanism or using additional financial mechanisms.

    Relevant Issue:

        •   Besides being able to use a State-required mechanism  in  lieu of
            a Federal mechanism, an owner or operator may use a
            State-approved mechanism in lieu of a Federal mechanism  if  the
            facility owner or operator receives approval from the Regional
            Administrator.  (Document #H20)

    Supporting  Document:

    1.  Originator  :  RCRA Hotline Monthly Status Report,  Question  12
        Subject     :  Substitution of State financial mechanisms
        CFR Citation:  §§264.149(a); 265.149(a)
        Date        :  September 1983
        Document #  :  H20
-------
                                   17-1             OSWER Policy Directive
                                                               #9476.00-7


§264.151  Wording of the  Instruments


Overview:

    This section specifies wording for trust agreements,  surety bonds
guaranteeing payment,  surety bonds guaranteeing performance,  letters of
credit, certificates of insurance, letters from Chief Financial Officers, and
corporate guarantees.

    Changes made by the May 2,  1986  rule:

    «1S1(b)            The language for surety bonds in §264.151(b) was
                       modified to provide that the surety is responsible for
                       funding the standby trust fund within  15 days after  a
                       final order to  begin closure has been  issued.

    •151(f),(g)        The Chief Financial Officer's letter (§264.151(f)
                       and (g))  for the financial test and corporate guarantee
                       must now include the current cost estimates  for
                       plugging and abandonment of Class I UIC wells,  if
                       applicable.

    Relevant Issues:

        •   The words "sudden" and "non-sudden" may be added  to the wording
            endorsements of certificates of insurance to indicate monetary
            limits when one endorsement or certificate is used for  both types
            of coverage.  (Document #H22)

        •   No one other than a Chief  Financial Officer may sign financial
            assurance and liability coverage demonstration letters  for the
            financial test.  (Document #H13)

        •   In using the word "occurrence" in the Hazardous Waste Facility
            Certificate of Liability Insurance, the EPA did not intend to
            limit the insurance policies which may be used to meet  the
            requirement of 40 CFR 264.147 or 265.147 to occurrence-based
            policies, exclude claims-made policies, or amend  claims-made
            policies so that they respond on an occurrence basis.  Similarly,
            use of the terms "sudden accidental occurrence" and "non-sudden"
            accidental occurrence" in the certificate does not preclude use of
            other terms, such as "environmental impairment" or "pollution
            incident," in the insurance policies to describe the extent of
            coverage.  The Agency does not intend that the certificate
            language should modify the contractual obligations regarding
            extent of coverage under the insurance policies u^ed to satisfy
            liability coverage requirement.  (Document #H15)
-------
                               17-2
                             OSWER Policy Directive
                                        #9476.00-7
        The terms "cancellation" and "termination" are defined as
        follows: cancellation occurs during the active life of the policy
        (i.e., for non-payment of the premium)  and termination occurs  when
        a policy runs its course and is not renewed.   (Document #H23)
Supporting  Documents:
1.  Originator
    Subject
    CFR Citation
    Date
    Document #

2.  Originator
    Subject

    CFR Citation
    Date
    Document #

3.  Originator
    Subject
    CFR Citation
    Date
    Document #

4.  Originator
    Subject

    CFR Citation
    Date
    Document #

5.  Originator

    Addressee
    Subject

    CFR Citation
    Date
    Document #

6.  Originator

    Addressee
    Subject
    CFR Citation
    Date
    Document #
RCRA Hotline Monthly Status Report - Question 4
Distinguishing between sudden and non-sudden insurance
§264.151(e)
June 1982
H22

RCRA Hotline Monthly Status Report - Question 5
Letter for financial test must be sent by Chief
Financial Officer
§§264.151(f); 265.151(g)
April 1984
H13

RCRA Hotline Monthly Summary Report - Issues B and D
Definition of the term "assets in the United States"
§§264.151(f-); 265.151(g)
April 1982
H14

RCRA Hotline Monthly Summary Report
Differentiating between cancellation and termination of
an insurance policy
§264.151(1)
January 1983
H23

Bruce R. Weddle, Acting Director, State Programs and
Resource Recovery Division
Dr. B. M. Aickin, Director, ERAS (International Limited)
Clarification of terms used in hazardous waste facility
certificates of liability insurance
§264.151(j)
10/8/82
HIS

George A. Garland, Chief, Financial Responsibility and
Assessment Branch
Charles W. Shipley
Insurance coverage limits
§§264.151(1); 264.15f(j)              »
11/20/84
H16
-------
RCRA/Superfund  Hotline                                   DOCUMENT  *G1
September  1984  Report
 a« -Do tvJts us*3 tee colUcting hazardous vast* spills ns«d to £• adcr*ss*£
  •  in tm eiesur* ?!»«?  „                               •   .
 e. Goes * tank ussd far spills fran a nsnufacturing praes*s.n««d to
   '                 wast* ranting in e^» e^nJi ter IWM  dvan 90 days?
         «« My tar.K th*t will b* uMd on a j*-»dietJ5l«  basis  fcr hazardous
                 storai;0 is subj«ct to f*ciiicy standards and sneuld b*
                     in tfw eloKtr« pLvi*  If th« tank  n*v«r  r«c«lv««
                    it cay not nowd to £*
            S«etien 261. 4 (c) •xelufios tfto wast* feat ri*julatien until it
            •xita t^a proevss.  If tr» rotor ial spill«a is or btesats a
                     wast* as a rtsult ef a prt^ictiiJi* spill, only
                     sutr^iar^s uftficc soeticn 262.34 vould ayply
               vasta is kirpt in tM tank fcr less than 90 cays.  Xf
           wastt is k«pt in tfta tarti D*y«r*3 9U days/  V^ facility standards
           for stcr»;« under stietlen 264 or 26) also would
           Sourest   €«crg« Garland (382-4761}
                     Dill ttint
-------
RCRA/Superfund  Hotline                                   DOCUMENT  #G2
August 1984 Report
      A  ntw landfill will have «  separata owner and operator.  Whlje
      both partlts will sign tht  ptrait,

      a)  1f ont party chosen as  tht 'permittee'?


      b)  whicn party is liable

           1)   during the operating life?

          ii)   during closure/post-closure?

               a}  Both the  owner and operator are  the  "permittees"
                   on the permit; however,  1t is  common for the
                   operator  to assume responsibility  for meeting
                   permit conditions.

               b)i)  Both tn« owner and operator are liable during the
                    facility's opera:ing life.

                11}  Both the owner and operator are liable during
                    closure/ post-closure of  the  facility, unless
                    the closure/post-closure  plans  specify that the
                    owner of the facility Is  becoming the operator
                  'as well  as the owner.   This action  would be
                    accompanied by a permit modification and relieve
                    the original operator  from liability (under
                    RCRA) during the closure/postclosure period.

                    Source:   Chaz Miller
                    Research: To* Gainer
-------
              DOCUMENT fG3
Wednesday
November 21, 1984
     IV
Environmental

Protection  Agency

40 CFR Part 265

Interim Status Standards for Owners sn<
Operators of Hazardous Waste
Treatment, Storage and Disposal
Facilities; Technical Amendment
-------
      /mONMENTAL PROTECTION
     JENCY

     i CFn Part 26S

   •SWH-fsJtHSA-4)

      •rim Status Standards for Owners
   and Operators of Hazardous Wast*
   Treatment, Storage and Disposal
   Faculties
   ACINCY: Environmental Protection
   Agency.
   ACTION; Technical Amendment	

   SUMMAMT: The Eavironmental Protection
   Agency it today promulgating a
   technical amendment to the interim
   status standards for owner* and
   operator* of hazardous waste facilities.
   This amendment merely clarifies the
   existing interim status standards
   regarding the applicability of
   requirements to facilities whose interim
   status is terminated. Today's
   amendment does not change any
   substantive requirements.
   OATC These amendments an effective
   December 5.1984.
   AOOACSX Background material relating
   to this amendment is maintained by the
   Docket Clerk. Office of Solid Waste
^WH-582). U.S. Eavironmental
^•election Agency. 401 M Street. SW,
 ^Washington. D.C 2)400, The docket is
   available for viewing Gram $00 a-m. to
   VOO pjru Monday thru Friday, excluding.
     ilidayv
   fO* WSrrNSJI INFORMATION CONTACT:
   The RCRA Hotline. toll-free at (800) 424-
   9348 or MS-WOO in Washington. D.C: or '
   Libby Scopino in the Office of Waste
   Programs Enforcement. U.S
   Environmental Protection Agency.
   Washington. D.C. (202} 475-8731.
   su»«a»rtXTAjrr INFOMMATIOIC EPA has
   promulgated regulations implementing
   Subtitle C of the Solid Waste Disposal
   Act as amended by the Resource
•   Conservation and Recovery Act of 197ft.
   as amended (RCRA). 42 U.S.C 8901 tt
   see/, establishing a comprehensive
•  program for the handling and
 • • management of hazardous waste (40* ••
   CFR Parts 280-285. 270. 271. and 124).    •
   Pursuant to Section 300S(a) of RCRA.
   the regulations require owners or
   operator* of hazardous waste
   management facilities to have a permit
     Recognizing that EPA would not be
   able to issue permits to all hazardous
   waate management facilities at once.
^fctction 300S(e) of RCRA provides that a
^•Tazardoua waste management facility
  . that meets certain requirements wtll be
  . treated as having been issued a permit
   EPA refers to such an owner or operator
    a on* who has interim status.
   Section 3004 of RCRA requires EPA to
 promulgate performance standards
 applicable to owners and operators of
 facilities that treat store or dispose of
 hazardous wastes. These Section 3004   r
 standards  are independently
 enforceable national standards which
 art separable from the Section 3005
 permit/interim status provisions. See 43
 FR 33158 (May 19.1980).
   EPA promulgated both Part 284
 general permitting standards and Part
 285 interim status  standards under the
 authority of Section 3004. EPA has. by  "
 regulation, limited the requirements for'
 facilities with interim status to those
 found in 40 CFR Part 285. See 40 CFR
 27Q.71(b). Pursuant to I 285.1 of the
 RCRA regulations, the  standards in Part
 285 apply "during  the period of interim
 status." These standards apply to
 owners and operator* of hazardous
 waste facilities who have fully complied
 with the interim status requirements.
/until final administrative disposition of
'their permit application ia made."
 (§265.l(b|).
   The wording of  I 285.1(b) implies that
 once a facility's interim statua is
 terminated the facility  would oo longer
 have to meet the Part 285 interim statua
 standards  including the closure, post- .
 closure and financial responsibility
 requirements. However. EPA has the
 statutory authority under Section 3004 to
 enforce the Part 285 standards at
 facilities which no longer have interim
 status. Some sections of the  regulations
 dearly reflect that authority. For
 example, the provisions in | 28S.112(c)
 and } 2S5.1l8(c) dearly require facilities
 whose interim status has been
 terminated to meet certain Part 283
 dosure and post-dosure requirements.
 Section 28S.ll2(c)  requires that
   The OWB« or operator nuat submit his
 doeure plan to the Rational Administrator at
 least 180 days before the data he expects to .  .
 betia dosun. The owner or operator oraat
 subout hia doeure plan to the Repoaal -
 Adavautrater ae later than 19 day* altar
   (1] Ttmuaotton ofinunat ttatut (except
 when a permit is iemed to the facility
 aiauliaaeouaiy with tenuaaoaa of iaurim •
 sutut: (emphasis added))
   (2) Israaace of a /iidiaaJ decree or order
 under Section 3008 of RCRA to eaase
 receiving wastes or dose.
 dearly. |  285-112(c) envisioned that
 facilities would submit dosure plans for
 approval subsequent to the termination
 of the facilities' Interim status.  •
   Further,  many of the other substantive
 requirements of Part 285 are dearly
 stated to be applicable until final     :
 dosure of  the facility is certified, For  •
 instance, i 28S.147T,e) requires mat
 liability insurance be maintained by the
 owner or operator of a facility until the
 certification of final closure is received
 by the Regional Administrator. A
 facility's interim status may be
 terminated prior to certification of final
 dosure. In those instances, the Agency
 requires the  facility whose interim
 status has been terminated to maintain
 liability insurance in spite of the
 language in I 285.1.
   As stated above. EPA believes that it
 has both the statutory and regulatory
 authority to apply the Part 285 standards
 to those facilities whose interim status
' has been (ermine ted. However, in order
 to darify the Part 285 standards, the
 Agency is amending Section 285.1 to
 state specifically that the Part 285
 requirements apply to an interim status
 facility until  either a permit is issued
 under Section 3005 of RCRA or until ail
 applicable Part 285 dosure and post-
 dosure responsibilities are fulfilled.

 Good Cause  Exception
   This technical amendment is
 published without prior notice and
 comment because the Agency believes
 that such notice and corr-raent ii
 unnecessary pursuant tc  »ne good cause
 exception in the Administrative
 Procedures Act 5  U.S.C Section
 553(APA). Today's amendment merely
 clarifies an existing Agency rule and as
 such is a routine, insignificant technical
 amendment The impact of the
 amendment oo the public is" insignificant
 because the  amendment does not  ,
 impose any new substantive
 requirements. It merely codifies the
 already implied requirement that
 owners and  operators of facilities whose
 interim status is terminated must comply
 with the applicable Part 285 standards
 until final dosure  and post-dosure
 responsibilities are fulfilled.
 Effective Date

   RCRA Section 3010(b) provides that
 regulations and amendments  to
 refuladona under  RCRA take affect six
 months from the date of promulgation.
 Toe purpose) of this requirement is to
 allow sufficient leed time for  regulated
 communities to prepare for compliance
 with major new regulations. Section
 S53(d) of the Administrative Procedures
 Act (APA) prohibits "publication or
 service of a substantive rule ... less
 than 30 days before its effective date
 except for good cause."
   For the amendment proposed today.
 EPA believes that an effective date six
 months or 30 days after promulgation
 would be unnecessary. These
 amendments simply darify existing
 regulatory language and do.not  impos*
 any new substantive requirement*.
 Therefore, the Agency finds that the
-------
                Kegister /
     cause that thi< amendment bt
effective two week* after publication,

Compliant* With Executive Order 1231
  Under Executive Order 1231. EPA
must judge whether a regulation is
"major" and therefore subject to the
requirement of • Regulatory Impact
Analysis. This proposed regulation ia
not major because  it will aot result is  an
effect oa the economy of S10G million or
more, not will ii result in an increase in
cast* or priet* t@ industry. There would
be BO adverse impact on the ability of
U.S.-based enterprises to compete with
foreign-based enterprises in domestic or
export market*. Because this
amendment is not a major regulation,  no
Regulatory Impact  Ajiaiysis is being
conducted
  These amendment* were submitted to
the Office of Management  and Budget
for review as required by Executive
Order 12291. Any comment* from Okffl
to EPA and any response to those
comments are available for viewing at
the Office of Solid Waste Docket. Room
S3S-C U-S-E.P.A-. 401 M Street. «W.
Washington. D.C 2M6&
Paperwork Reduction Act
  There is ae recerdkeeping or reporting
burden associated  with today's action.
Regulatory Flexibility Act
  The Regulatory Flexibility Act
requires that Federal Agencies prepare
regulatory flexibility analyses assessing
the impacts of proposed rules on entities
such as small businesses, small
organizations, and small governmental
jurisdictions. Such an analysis is aot  .
required, however, when the head of an
Agency certifies that a proposed rule
will not have a significant economic
impact on a substantial number of small
entities.
  I find that today's proposal, if
promulgated, would have no impact on
small entities because tt does not
impose any additional substantive
requirements. Accordingly. 1 certify that
this amendment will not have a
significant impact on a substantial
number of small entities.
List of Subjects ia 40 CFK Part 2S5
  Hazardous materials. Packaging and
containers. Reporting and recordkeeping
requirement*. Security measures. Surety
bond*. Waste treatment and disposal
Water supply.
  Dated: October 3.19M.
unit;.— r>  ».r4..^l^<.-.
Admintttntof.

PART »S—(AMENDED!

  40 CFR Part 2&S is amended as
foQows:
13*5.1  (Amonoedl
  1. Section 26&.1 (a] is revised to read
a* follows:
  (a) The purpose of this part ia to
establish ""«'«*"«« national standards
that define the acceptable* management
of hazardous waste during the period of
interim status and until certification of
final closure or. if the facility ia subject
to post-closure requirement*, until post-
closure responsibilities are fulfilled.
  2. Section 26S.l(b) ia  revised to read,
as follows:
  (b) The standards of this pan appij
owners and operators of faculties °Ju
treat store or dispose of hazardo
Vaste who have fully complied
requirement* for inter.m status
Section 300S(e) of RCRA and f ro.iC
this Chapter until either a permit is
issued under Section 3005 of RCRA o
until applicable Part 28S closure and
pest-closure responsibilities are fulfil
and to those owners and operators ol
facilities in existence on November 1
I960 who have failed to provide time!
notification as required by Section
3010(a) of RCRA and/or failed to file
Part A of the permit application at
required by 40 CFR ruio (e) and (gj.
These standards apply to all treaunei
storage and disposal of hazardous wi
at these facilities after the effective d
of these regulations, except a*
specifically provided otherwise is Ou
Part or Part 281 of this  Chapter.
  CaouneflC As tutad in &tcuon 300SU) <
RCRA, after taw'tffectivt  data of wgulauc
under tiut Section (L«_ Piru 270 *ad l£«
th«a QxapttrL tb« tnatra«nL tiorif* «ad
diapotaJ o/hazardous w»»i« * prohibited
exe»pt m accordanc* «ntta a per-^.. S*cti
3005(t) ol RCRA provtdn for th« COQURU<
operatioa of u txiatia« facdity that
cenaia eondiuooa. uuui final
disposition of the ownat'i aad
permit application ia mad*.
(Soea. tOOB. aOD2(a).  300*. and 3005
Solid Wasta OUpoaal Ao. a* aa«nd«d b;
Resource Caaaervanon and R*eovtrj As
1ST*, aa aaMAded. 42 U-S.C 880S.
6824. 6823)
(Tt om. M-ana
-------
RCRA/Superfund Hotline                                     DOCUMENT  #G4
December 1984  Report
If a facility's interim status  is  terminated,  inust  tr.e  owner/operator cf Lie
facility still Tteet tr.e S265 interim status  standards for closure, post-closure,
and financial responsibility?

    Yes; a facility which has had  its interim  status terminated -rust meet 3265
    standards, including those  for closure,  post-closure, and financial
    responsibility.  A technical amendment to  the interim status standards
    which was published in the  November 21,  1384 Federal Register (49 !T* 46094)
    clarified that interim status  standards  are applicaole  to facilities whose
    interim status is terminated until  their closure and post-closure require-
    ments are fulfilled.

    Source:    Libby Scopino (202)  475-8731
    Research:  Hilary Sontner
-------
RCRA/Superfund Hotline                                  DOCUMENT  #G5
December 1982 Report
  If after a closure plan  is  approved, certain applicable closure
  regulations change, does the closure plan have to be modified  to
  comply with the new regulations?

  The Beg ion would decide  on  a case by case basis and would consider
  effective date of the changes to the regulations and the progress
  of the closure underway.

  Source:    Scott Biehl
  Research:  Irene Homer
-------
                                                      DOCUMENT  #G6
                             JAN  | |  1983
Dr. Revs Rubenstein
Director
Institute of Chemical Wast*
  *anage«ent
National Solid wastes
  Management Association
1120 Connecticut Avenue, H.W.
Washington, D.C.   20036

Dear Dr. Rubenstein:

     This letter is in response to your letter of December 6,
1982, requesting interpretation of closure and post-closure
requirements regarding land disposal facilities.  I have
responded to your questions in the order presented in.your
letter and attachment.

1. , Recontouring the final cover material and/or adjusting
   ~ inplace waste in the sane unit as required to maintain the
    function of the final cover as a result of•• subsidence and
    settlement, does not constitute receipt of hazardous waste
    after January 25, 1983.j These actions must be described
    in each facility's closure and post-closure plans which
    must be approved by the Regional Administrator.  Modifica-
    tions can be made to these plans as- necessary- with Agency
    approval.

2.  The controlled Irrigation of the vegetative cover is allowed
    in order to establish vegetation during the closure period
    or to maintain it during prolonged dry spells in the post-
    closure period.  But the regulations require the final cover
    to provide long-term minimization of migration of liquids
    through the closed landfill (S264.*310(a) (1)), and to function
    with minimum maintenance (*264.310(a)(2)).  Thus, the
    guidance documents recommend that the plant species chosen
    be indigenous, require minimal or .-no additional, moisture,
    and be selected based on anticipated moisture, light,
    temperature, elevation, and competitive cohabitants, etc.
-------
The closure and post-closure plans should contain  a  descrip<
felon of why and when the  irrigation nay h*» determined  to
be necessary  (e.g., recommended by local agronomist  to
establish vegetation during a dry period), the amount  and
frequency of water application, and water balance  analysis
showing the effect of the irrigation water on total  annual
liquid input through the  final cover.,

C?A ha* available two reports that provide technical
information on this subject, entitled "Evaluating  Cover
Systems for Solid and Hazardous Waste* SW-867, September
1982t which discusses irrigation of plant cover and  other
plant requirements} and (2) "Hydrologic Simulation on
Solid Waste Disposal Sites- sw-868, Septem&er 1982,  which
is a computerized water balance iodei» to evaluate the
probable hydrologic performance of existing or proposed
landfill designs.  Both of the reports are available from
the Government Printing Office (SW-467 is Stock No.  055-
000-00228-2 ?S4.75, SW-868 is Stock Mo. 055-000-00225-8
*S6.00).  EPA is currently revising the model for  BHy
-------
 recirculation,  if:  (a) there is a liner and leachate
 collection  system,  (b) leachate is removed from the
 leachate  collection lysteTn, (c) the addition of
 serves  tojgnHancg~e1os ure Te.g.,  accelerates subsidence
-end' s'tabilizationr/^lher Xhan_jnf9rel'y serves as a_convenient
 vay to  dispose  of the" liquids. "Tnd toithe liquid addition
 fj-JEgffiaTnSa' anfl "Justified in fch«eio«ure plan. _Such
 ctosure would not be completed  untij. recirculatipn._cease8Ju_
 Xlso, reelrcviiation or a hazardous waste (leacnate) after
 •January 26,  1983 would make the unit a~~regulated uni^
 subject to  the_requirements of  Part 264.  I should point
 out that  recirculatibrTof a hazardous waste (leachate) can
 occur during operation_*»4- would  normally be considered an
 operational  ra'th'er  than closure activity.  Closure activities
 are those which  _le~ad_ to .stabil'fzat ion "oF the unit in a_
 tinely  Tanner After receipt of  wastes has ceased.   Fourth,
 the characteristics and purpose of any" Iiquids"~To De adced
 Co  the  land'fill  or  to the cover during or after closure.
 must be specified in the closure  or post-closure plans and
 approved  by  the  RA  (or authorized State), including any
 extension of the closure period.   Such purpose and extension
 oust be consistent  with the environmental objectives specif-ted
 ifl  Part 264  or  265. _

 Landfills that  are  currently engaged in co-disposal of
 hazardous and non-hazardous wastes could continue to accept
 non-hazardous wastes after January 25, 1983, in order to'
 complete  a partially filled hazardous waste unit and close
 under either 40  CPR Part 265 or Part 264 requirements.  This
 assumes that the owner or operator completes the cell in a
 tinely  cianner, which generally  means within the 180 day
 closure period.   If the closure cannot be coapleted_wijth-in
 the 180 days the owner or operator must apply to have the
 closure period extended beyond  6  oonths, for a specified
 time period, as  pr_ovide
-------
    or closure permit (e.g., tii** period, final contours,  type
    of waste).
                                        •

    For the situation vhere a surface inpoundraent 'closes  as a
    landfill" before January 25, 1983, I presume you mean  no
    «nore hazardous wastes received after January 25, 1983, but
    closure (e.g., dewatering, etc.) has not yet been done.
    The waste will be removed free the surface impoundment,
    solidified and replaced in the sane impoundment, to ensure
    that it will bear the weight of the cover.  EPA does not
    consider this replacement of waste after January 25, 1983,
    to be 'receipt* of hazardous waste which would constitute
    a 'regulated unit'.'  This decision assumes that the
    solidifying material is not a hazardous waste.

    For your last question you described the case where
    multiple hazardous waste trenches will cease to recejjre
    hazardous waste on or before January 25, 1993, and where
    the closure plan provides for a delayed closure of a half-
    filled trench for the deposit of solidified hazardous
    waste from closed and capped trenches*—In gynertl, such
    placement nf-Tolirll f 1e*1
    trenches into the reserved half •filled—feg»Rcfa~r even at
    the sane facility, will be considered "receipt" of hazardous
    waste such AS to constitute a "regulated* uniOSicause the  J
    waste is received and disposed at the facility unTf after
    January 26, 1983.*  I refer you to the July 26, 1982 federal
    Register preamble discussion at 47 Pft 32289 which describes
    the concept of a waste management unit.  Where landfills
    consist of a series of trenches which are separately lined,
    each trench is a separate waste aanagement unit.  The transfer
    of hazardous waste from one unit to another after January 26,
    1983 therefore makes the receiving trench or unit a "regulated
    unit.  _

     As a side note, I should mention that the closure
performance standard for interim status and for permitting
facilities is the same (40 CPU 264.111 and 40 CP* 265.111).
The final cover or cap for landfills closed under Part 264 or
265 standards should be similar.  Significant Differences in
the design of the cap should result from site specific factors
rather than the type of permit a facility haft.  Thus, nany of
the above comments apply to both Part 264 and 265 closure
requirements.

     I hope the above explanations help clarify the regulations
for you.  Should you have any further questions with regard to
                                  "r             i
-------
how this regulation effects NSW*A rnewbers please  contact we  or
Fred Lindsay of ny staff (382-4754)*
                                         •


                                  Sincerely yours.
                                  John H. Skinner
                                  Acting Director
                                  Office of Solid Waste

cct  Regions I - X (with incoming)

     *
-------
                                                         DOCUMENT #G7
AU6 I 0  i?^


 Trip  Pepe>rt -


 Arthur Day* A<^^>g Program Manauer
      l"l«,v«*l Branch,  Office r>f SoliH Kaatf (WM-565ri
 Kenneth Ae  «hfster,  Chief
 Land tfi«p««*l  Branch,  nf,£ir<* of S«H> w«»t<» (WH-565E)
      X  led the pretentation cf two LU«* training programs in
 Region  X  during July 11-14, 1183.  The first program was the
 Permit  Applicant's Training Program for Hazardous waste Land
 Treatment, Storage, and Disposal P*eilitiet.  Cd Monnig
 of  TRW?  Inc.  assisted with this program, at hat been the
 usual practice.  The attendance theet ie attached*  Questions
 raised  during the pregratn art discussed below.  Additional
 wort  is  being conducted ^n the underscored numbered items.
     the  *ecc?nd  prograr «at the Per«it Writer's Training
     Program  for Subpart F«  £ presented modules 1, 7. 10,
and  11.   Ed Monnig  presented nodules 3, 4, 5. and 9, while
Larry (
-------
                                                DOCUMENT #G8
                   .AU6- I 7 BS3
MEMORANDUM
SUBJECT:  Definitions for Data Element
          Dictionary

r'KOM:     Arthur Glazer
          Program Manager
          Permits Branch

TO:       drenda Daley
          Assistant Program Manager
          Computer Sciences Corporation


     The following are the new definitions you  requested  for
the Data Element Dictionary to cover state reporting.   I  see  no
reason why these definitions could not De used  for  reporting
actions in non-authorized states as well.  Call me  if you have
any questions on 382-4692.

                      Closure Certification

Tne date the facility owner or operator and a registered
professional engineer certified that tne facility closed  in
accordance with the approved closure plan for the facility.   Use
tne postnark date as the certification date for certifications
that are mailed in.  For certification statements that  are
nand-carried to .the Agency, use the date the Agency recievea  tne
certification.  where the owner or operator certification is
submitted at a d"*ffef»ent time from the engineer's certification,
tne date of tne ft»ter sucwittal governs.
-------
                        WASHINGTON. 0 C  20460

                                                  DOCUMENT
                          AUG071984
                                                          evie«ce««-
MEMORANDUM
SUBJECT:  Closure issues Related to Wood Preserving Plants

FROM: |    John H. Skinner, Director           ^
      '\  Office of Solid Waste  /    •/'' t' •      5?f
     f.A  •                          i  '  A» < • ' ,   " " ">  ^

TO:   ,   James H. Scarbrough, Chief
          Residuals Management Branch, Region IV


     In  your June 26, 1984 memorandum you posed  three questions
regarding closure activities and the use of unproven technolo-
gies for closure at wood preserving plants.  Several questions
regarding the definition of K001 hazardous wastes generated
by these facilities were also raised? these latter questions
have been partly answered in my July 25, 1984 memorandum.A/

     First, the maximum time allowed for closure after final
receipt  of waste is 180 days as specified in §2€4«113(b)
unless the Regional Administrator grants the owner or operator
an extension.  The grounds for extensions are strictly limited
to instances, when: (1) of necessity, it  takes longer than
180 days to perform closure,or (2)  a new owner  or operator
will recommence operations at the site and closure would be
incompatible with continued operation.  It seems that the
first criteria could be argued in the case of wood preservation
plants.   However, if the owner or operator could use a proven
technology to complete closure within the 180 day period, an
extension may not be justified.  In addition, I  agree with
your assessment on this issue and reaffirm the guidance  in
the preamble to the May 19, 1980 regulations: "A variance
procedure will allow a longer period, where it can be justified
although in no case may closure take more than three years.*
I/  A question was raised regarding contaminated rainwater
"~   run-off from treated wood storage areas.  We hope  to
    this issue along with the regulatory status of spray
    fields in conjunction with EGD.  We expect to get  back  to
    you on these points in the near future.
-------
     Second, we agree with you that closure techniques should
b« based on proven techniques and not concepts still in the
R and D stage.  For example, if the owner or operator wishes
to use land spreading of hazardous wa^ste at closure, he must
demonstrate the effectiveness of the technique in his permit
application in. accordance with Subpart M (land treatment) in
$264.272..S/  In this instance, more details are required
to determine the specific nature of the technology.  However,
if an interim status facility wishes to add a land treatment
technique, these new processes must be allowable under §270.72
as changes to interim status.  If these processes cannot be
justified under §270.72, a RCRA permit is required before
they can be used at the facility regardless of whether it is
to be used during the operating life or a.t closure.

     Third, the addition or creation of new processes at the
facility during interim status may be allowable under $270.72.
If the facility is permitted, however, process changes are
not allowed as minor modifications; therefore, the new process
would require a RCRA permit.

   .  I hope this memorandum addresses your concerns.  Please
contact Carole Ansheles at 382-4761 if you have any further
questions.
2_/  As explained in my July 25, 1984 memorandum, we are currently
~   investigating the regulatory status of spray irrigation
    technologies to determine if they meet the definition of a
    land treatment unit/ a surface impoundment, or a landfill.
-------
•£
V
\
                                                    DOCUMENT #GIO


                              SEP I 8 1984
      :•'!:•' !
Subject:  stean Team Conr.ents, Crucible Steel, Syracuse, NY

Fron:     Chris Rhyne
          KG Pemit Assistance Tear.

To;       Janes Beidy, Chief
          PCHA Permit* Section, Region II
Pack a
           Crucible Corporation operates a speciality steel will on
      the west side of Cnondaga Lake approxiraately 2 miles northwest
      of Syracuse, New York.  Since 1973 Crucible has heen operating
      a 2u acre landfill to dispose of its steel tsill WASC*.  These
      wastes, including EAP and ACD dusts, waste caustic solids, and
      acid pickling slucices, are spread over the surface of an inactive
      Solvay Process Wasteced that is 60 feet deep and 36S acres in
      are*I extent.
                                                                    •
           Tne Solvay Process Wastebed was fcmed as a by-product frcn
      tno production of Soda Ash (sodium carbonate) dating hack no 1231
      and is comprised of Calciun Carbon«t«t, Calciun Silicate, nacjnesiun
          •oxide, and lessor amounts of eeher ecnnounda.  The averaoc r.H
and is comprised or Calciun Car&on^t*, Calciun Silicate, Macne
Hydroxide, and lessor amounts of oeher cceipounds.  The average
is ap^roximatfely 12.C.
     After spending time with the State of New York in an
to obtain a permit to dispose of their hazardous waste, Crucible
decided to halt the disposal of hazardous waste at this site
in M*rcn of 1982.  -Since Crucible was no long«r di«posinQ of
hazardous waste, they agreed to sufcnit a closure pl^n to the
fiegion II office.  In this plan, Crucible propc5^« to continue
operating the land* ill as A non-hazardous waste landfill,
applying ncn-hazardpus waste over thn in-pl^ce hazardous w«ste.
Kinal cover would U« appli*
-------
    ' • *iay the re«iuiror3ont  for  cover at closure  t»e  delayed  for  an
                period cf tin»e?
     • Assuming the  regulations  allow delayed  cover, do  CruciMo's
       ary-ur.«nts for delayed cover r**r,Cnstrat«»  that,  the  facility
       will prevont  threats to huran health and the  envircnrent?

     • May the final cover be covered by non-hazardous waste
       after installation?                           :
1 vi
     The first  issue  is whether  there is a le
-------
levered (as would ft« the case if the landfill were covered with
irpern«abl« lirer), this would increase, the effective stresses
in the Solvay fcaste, resulting in increased settlement.   Nowhere
does flr. Teeter indicate that the increased settlement would
create instability in the dike.

     Crucible's other environnental argument for delaying cover
is that the Solvay Kaste adsorbs the chromium feeing leached from  '
the hazardous steel nill waste.  This argument is based on Section
cf the Engineering Report and Plan of Operation accompanying
the application for a State of New York permit.

     In this docurent lab scale  and fi«ld scale test results are
reported.   The report, however*  does not support Crucible's
conclusion.  The.following questions and observations are included
for your uset

     1*  Significant amounts of  ehromlun were leached from the
         Pilot colunn leaching test (see tables 4-4, 4-5, 4-6,
         and 4-7 for exaaples).

     2.  The "Multiple 2 Colunn  Tests" did not indicate  how much
         tap water was leached through the columns or what the
         composition of the leacheate was at the completion of
         the test.  This information is critical to proper
         evaluation of the data.

     3.  Hexavalent Chroniun i.i  readily leached frcn both Air
         Pollution Oust and Waste Caustic Solids (See Table 4-8,
         page 4-12.K

     4,  Crucible Indicates that Caustic Sludge and Acid Pickling
         Sludge do not leach chronate with neutral pH water, but
         do leach chromate during the EP toxicity teat at pH 5.0.
         They then conclude that these wastes could not  be
         expected to leach Hexavalent Chronlum in the Crucible
         Landfill (see page 4-13).  This is not necessarily
         true since acid rain deposited in this region can be
         expected to have a pH of <5.0 (see pages 4-7 and 4-10).

     5.  Field Scale tub leaching tests showed a high' level
         (17.6 ruj/L) of Chrcniun in the leachate when Solvay
         Waste was used as an adsorbant (see table 4-15, pago
         4-24).
                                                        •
     6«  Trivalent ant! Hexavalent Chroniun tests are not
         thoroughly reported since the quantity of leachata
         passed through the Solvay Process Waste has not been
         stated.  Results do, however, indicate that 'Hexavalent
         Chrcaiun is not well adsorbed by the Solvay Waste.
                               -3-
-------
     7,  Kexavalent Chroriun Adsorption Tests shew that Chrcnate
         is net well acso^erf (3SG mg/L) and is easily leached
         Dy tap water (see P*ge 4-28.).

     8.  In the Sequential Adsorptinn Column? test the Hexavalent
         Chromium content of the Solvay Process waste «a* very
         low (,5rg/L). Crucible indicates that this is duo to
         the reduction of K*»xavalent Chromium to Trivalent
         Chroniun.  Our .review indicates that this is unlikely "'
         tc happen.  Since the chromate content of the leachate
         was not reported, no reliable deductions can t^e made.
         Their theory of reduction of the Hexavalent Chrowiun to
         Trivalent Chrcnium with Ferrous Iron as the reducing
         agent is unsubstantiated (see page 4-29).

     The third issue is whether the final cover can he covered
fcy additional non-hazardous waste.  It is distinctly the
intent of the regulations that final cover be "final*.  (This is
clearly implied by the reference to the vegetative layer in rule,
presnble, and guidance).  Moreover, $265.li?(c) states that
post-closure use^ of the property on or in which hazardous wastes
remain after closure nust never be allowed to disturb the integrity
of the final cover.  The only exception is if the owner or
operator can demonstrate that th* disturbance:

     (1) Is necessary to the proposed use of the property, and
         will not Increase th* potential hazard to hunan health
         or the environnent; or

     (2) Is necessary to reduce a threat to human health or the
         environment.
                                                             •
Obviously,  the first test would be the one that night be used at
tnis site.   To meet r.eet this test, Crucible would still have to
show how disturbance of the cover would not only satisfy the
requirements of $265.117 (c) (1 ) but nuttt demonstrate specifically
hew. this disturbance will still provide for control of pollutant
migration and surface water infiltration (5265.310(b) and other
applicable conditions outlined in $265.310.
     Crucible's request for an extended period of ti^e for
installation of a final cap should be denied.  First, it is
doubtful that continued operation of the nonhazardous. landfill is
•necessary" for this completion of closure activities.'  Even if it
could be construed as such, 3 years 'vou Id be the limit outlined
in the regulatory preamble.  Secondly, the purely environrental
arguments outlined in Crucible reports are not technically sub-
stantiated.  In fact, the underlying Solvay Process Waste is
-------
apparently a significant contributor to the poor qualitv ground
water underneath the site.  Crucible's steelwill waste nerely
exacerbates the prcblen by naking its-own hazardous waste con-
tribution in the fora of Hexavalent Chroniun, anri by providing a
conduit for increased infiltration into the underlying Solvay
Process Waste.

     Covering cf the final cap with additional non-hazardous
solid waste night be allowed if Crucible can denonstrat* that
this disturbed cap will function as well as a normal exposed
final cap as per S265.117(e) and S265.310, and that periodic
inspections will not b« necessary.

     In any event, the currently proposed cap configuration
should not be .approved.  Sinew it is a soil-only cap, it will
allow significant amounts of precipitation to enter the under-
lying Solvay Process Wasts,  An inpcrvious cap design will not
only mitigate the threat posed by the chrowiun-containing ste«sl
mill wastes but will also lower the contaninant loading contri-
buted by underlying Solvay Process Waste.  If the Region should
allow the interim cap, it should take another look'at subsidence,
since it appears to be significant.  The problera vith slope
stability should not be increased by the addition of the inper-
-- -"'- cap. -
Contact*
     Region II - Catherine Massinino PTS 264-1717
     Headquarters - Chris Rhyne F7S. 382-4695
cci  Terry Grcgan
     Peter Guerrero
     Bruce Weddie
     Krrvie Regna
     Ron Key
     Oov Weitnan
     Nancy Hutztl
     Art Day
-------
                         .       wj-c                                    nnrrMFMT
           June  1985  Report                                           DOCLMENT
Partial Closure

    The owner/operator (o/o) of a permitted facility plans to remove a tank  fron service.
    His permit does not address removal of the tank.  Must the permit be modified to
    reflect this tank removal?

         Removing the tank would constitute partial closure of the facility.  The closure
         plan should address this situation according to 5264.112(a)(l).  Since  the permit
         does not cover - partial closure, the o/o must amend his plan.  Section 264.112O)
         requires the o/o to amend his plan whenever changes in operating plans  (e.g.,
         tank removal) affect the closure plan.  To amend the closure plan to address
         partial closure, the o/o must comply with the standards for major modifications
         for permits under $270.41.  The o/o should amend his plan to address all antici-
         pated partial closures so that he need only modify his permit once.

         Source:    Susan Hughes (202) 382-4790
-------
 
-------
                                -2-
 New  Closure Policies

      In the past» there  has been  some uncertainty regarding
 what level of clean-up is  required at closure.  Facilities were
 allowed to close in some cases without an adequate ground-water
 monitoring system in place or without a plan .to respond to con-
 tamination.

      We must be clear that ground-water quality is an integral
 aspect of RCRA closure.  Owners and operators must not be allowed
 to "walk away" from units with inadequate monitoring systems and
 ground-water contamination at closure.  In many cases, the interim
 status regulations (Part 265, Subparts F and G) can and should be
 used  to address ground-water quality issues at closure.  Post-
 closure permits, corrective action orders (RCRA $3008(h)), and
 corrective action authority under RCRA $3004(u) can and should
 be used when applicable  and necessary to supplement these regula-
 tions to address contaminated soils or ground water at closing
 facilities.  For example, approval and completion of a closure by
 removal under $$265.228  or 265.258 does not preclude the Agency's
 ability to use 3008(h) orders, 3004(u) authority, or other appli-
 cable RCRA provisions as necessary.

      For facilities with closing  land disposal units, the facility
 management process (as described  in the FY 86 RIP) will be used
 to determine the most appropriate course of action.  The strategy
 for each facility will depend upon the specific facts of each
 case.  All closures, however, should be guided by the principles
 outlined in this memorandum.

 New Authorities

     Several new tools are available to the permitting and
 enforcement programs to  supplement the closure process of
 Part 265.   These new authorities should be used (when applicable
 and within the context of overall Agency priorities) to assure
 that adequate ground-water monitoring and protection are imple-
mented at closing facilities.  The following provisions of the
 1984 Amendments give the Agency broad new authority to address
 potential soil and ground-water contamination at closure:

     S3005(i)  changes the definition of "regulated unit" in
 S264.90(a) to include units that received waste after July 26,
 1982  (from the current date of January 26, 1983).  This expands
 the universe of facilities that is subject to the requirements
 of Part 264, Subpart F,  through a post-closure permit.

     S3004(u)  requires corrective action for releases from solid
 waste management units,  and from regulated units (for releases
-------
                               -3-
other than ground-water releases), at facilities seeking RCRA
permits.  This authority may be used when a closed or closing
unit is located at a facility which is receiving either an operat-
ing or post-closure permit.

     S3008(h) allows corrective actien to be required at any
interim status facility with a release of hazardous waste into
the environment.  This authority may be used in tandem with the
closure process to require corrective action during or after
closure.

Add i t ional Guidance
          is the first in a series of guidance memos that will
be issued regarding the closure of hazardous waste management
facilities.  Future guidance will address in detail the issues
raised in this memo, including technical and policy guidance for
closure by removal and post-closure care.  I encourage you to
contact my staff to discuss any of the issues regarding
closure and to identify any areas in which Headquarters should
be preparing additional guidance.

ccs   John Skinner
      Gene Lucero
      Bill Hedeman •
      OSW Senior Staff
      Peter Cook
      Lloyd Guerci
      Waste Management Division Directorst Regions I-X
      RCRA Branch Chiefs, Regions I-X
      Permit Section Chiefs, Regions X-X
      Enforcement Section Chiefs, Regions I-X
      Mark Greenwood
-------
                                                  DOCUMENT #G1
           UNITrC STATES ENVIRONMENTAL PROTECTION AGENCY
                       WASHINGTON. O.C. 204(0
  SEP I I	                                            0,,,c,o,
                                               SOCIO WASTI AND IMIMCINCV Mf


MEMORANDUM


SUBJECT:  Permitting Units  Created  for  Facility Closure
FROM:     Bruce R. Weddle,  Director
          Permits And  State Programs  Division  (WH-563)

TO:       Hazardous Waste Division Directors -and Branch Chiefs
          Regions I-X

     This memorandum addresses  the question of whether hazardous
waste management units  built specifically  as part of the closure
process must by covered by  RCRA permits.   Some facilities have
proposed closure schemes which  involve  the creation of a new
tank, impoundment, pile, or incinerator to manage hazardous wastes
exhumed and/or transferred  during closure.  A  number of owners/
operators have argued  that  creation of  these new units is a
necessary and temporary measure to accomplish  closure of reguiattd
units.  They have sought to have the  new units approved in their
Part 265 closure plan  rather than through  the  permit process.

     In all cases, the  addition of new  units requires more than
closure plan approval.  In  some cases it requires a permit.  The
Part 264 standards apply to new units added during closure as
well as to new operating units.  The  regulations do not provide
a means for exempting  new units from  the permitting standards
simply because they are used in the closure process.

     Alternatively, the addition of new units may constitute an
allowable change to a  facility  during interim status.  According
to S270.72(c), changes  in processes or  addition of processes may
be^allowed if a revised Part A  and justification are submitted,
and the Director approves the change  because of an emergency
situation or because it is  necessary  to comply with Federal
regulations or State or local laws.   In the case of adding a new
unit for closure, this  section  could  be applicable if the Director
agrees that the additional  unit is necessary for the owner/operate
to comply with Part 265 closure requirements.  In no case, however
may the cost of adding  these units*-exceed  50%  o& the cost of
building a comparable entirely  new facility ($270.72(e)).

ccz  Permit Section Chiefs,  Regions I-X
     Peter Guerrero
     Tarry Grogan
     Carole Anaheles
     Amy Mills
-------
                                                    DOCUMENT  *G14
  \        UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

  *                    WASHINGTON. D.C. 20460
                            ^ro 25 -••
                            Ser «t fe W - «* »- -
                                              SOLID WASTE AND EMERGEMCV «isi
MEMORANDUM
SUBJECT:  Applicability of Post-Closure Permitting
          Requirements to Non-Regulated Units

PROM:     Marcia E. Williams, Director
          Office of Solid Waste

TO:       Charles E. Finley, Director
          Hazardous Waste Division, Region X


     In your memorandum of May 20 (attached) and in phone
conversations with Jeff Webb of your staff, you requested
clarification-on several points regarding closure for disposal
facilities that stopped receiving waste prior to July 26f  1982.
Outlined below is a discussion of those points.

     We agree with your interpretation that land disposal  units
that stopped receiving wastes prior to July 26, 1982 and closed
after January 26, 1983 are subject to the post-closure permit
requirements of §270.l(c), but not ground-water monitoring
requirements of Part 264 Subpart P.  We do not agree with  your
conclusion, however, that such a permit could require compliance
with Part 265 ground-water monitoring requirements.  Part  265 is
applicable only to interim status units and cannot be incorporated
into a permit.

     If the unit described above is the only unit at the facility
subject to permitting, issuance of a post-closure permit would
have little benefit since ground-water monitoring requirements
cannot be applied.  The unit/facility in this case should  be
closed under interim status, and thus subject to the general
closure performance standards of Part 265 and post-closure ground-
water monitoring (§265.117), as applicable.  If the unit has
caused ground-water contamination, enforcement action to compel
corrective action under §3008(h) should be initiated.  Alternative:
if the unit is located at a facility which has ahother unit(s)
requiring a permit, the 3004(u) corrective action authority woulf
apply when the permit is issued since the unit is a "solid waste
management unit."
-------
                             -2-   '  ' •


     If you have any further questions regarding this issue, please
contact Dave Fagan, Acting Manager, Permits Policy Program at
382-4740.

Attachment

cc: RCBA Branch Chiefs
    Permit Section Chiefs
-------
                                                           DOCUMENT  #G14
                                                            ATTACHMENT

            UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

                         Seattle, dHftftfi48n> 98101
       N/S 533                MAY 2 3 1985


MEMORANDUM
             Applicability  of  40 CFR  Part 264, Subpart 6
SUBJECT:     to Non-Regulated  Units

           . Charles  E.  Flndley, Director/ l '
FROM:        Hazardous Waste Division   I

             John H.  Skinner,  Director
T0:          Office of Solid Waste (WH-562 B)


       The purpose of this  correspondence 1s to confirm our Interpretation
 of 270.1(c) which states that all owners and operators of hazardous waste
 management units must have permits during the active life (Including the
 closure period)  and  for units which  close after the effective date of the
 Part 264 standards for  any post-closure care period required under 264.117,

       We are Interpreting  this to require permits for the closure and
 post-closure care of any unit not closed (Including certification of
 closure) prior to permit Issuance.   If the unit ceased receipt of wastes
 prior to July 26, 1982, the permit would not require compliance with
 Subpart F of Part 264,  but with the  ground water monitoring requirements
 of Part 265 Interim  status.   All other applicable requirements of
 Part 264, particularly  the closure performance standards of Subparts G, K,
 L, M, and N, would also be Imposed through the permit.

       Such an Interpretation  would subject the facility to the provisions
 of the 1984 Amendments, particularly Section 3004(u).

       We would appreciate  confirmation of this Interpretation.
-------

                       WASHINGTON, O.C. 20460              DOCUMENT  #G1
                                               SOLID WASTE AND EMEMGENCv
MEMORANDUM

SUBJECT:  Determination of a Facility's Operatin
FROM:     George A. Garland, Chief
          Financial Responsibility and Assessment Branch (WH-562B)

TO:       William H. Taylor, Chief
          Enforcement Section, Region 6


     This memo addresses the questions raised by the State of
Oklahoma in their letter to Region 6 dated September 6, 1984.
Most of these questions concern how one determines the operating
life of a facility for the purpose of calculating the trust fund
pay-in-period.  As requested, I also address the separate issue
of how to treat recycling in the closure cost estimate.


1•   How does one calculate a facility's operating life for
     determine the pay-in-period for the trust fundT

     For permitted facilities, "payments into the trust fund
must be made annually by the owner or operator over the term of
the initial RCRA permit or the remaining operating life 'of the
facility as estimated in the closure plan, whichever period is
shorter" (SS264.143(a)(3) and ,145(a)(3)).  For interim status.
facilities, "payments into the trust fund must be made annually
by the owner or operator over the 20 years beginning with the
effective date of these regulations or over the remaining operat-
ing life of the facility as estimated in the closure plan, which-
ever period is shorter" ($5265.143(a)(3) and .145(a)(3)).

     For purposes of this requirement, the operating life of a
facility must be presumed to end in that year in which the owner
or operator currently expects to close his facility.  His expected
year of closure should be identified in his closure plan.

     EPA should be able to determine, after reviewing the facil-
ity's operating record, whether the owner or operator's estimate
of the year he expects to close his facility is reasonable.  If
EPA believes that the facility's operating life 1,3 less than
that stated, we may require the owner or operator to change the
closure plan.
-------
2.   Should a facility's operating life be determined based on
     existing, permitted unbuilt, or unperaitted unbuilt
     The capacity of boch permitted a'nd interim status facilities
to store or dispose of wastes for the purpose of determining the
facility's operating life should be based on "the maximum extent
of operation which will be unclosed during the life of the facil-
ity" as required in the closure plan under SS 264. 1 1 2(a) (1 )  and
265.112
-------
                              - 3 -


     Prior to the tine the facility receives its final volume of
waste, the owner or operator should be able to determine the
year he expects to close based on the treatment or other storage
and disposal processes he employs.  If he plans to operate longer
than he had originally intended, he must modify his closure plan.


5.   Should waste stored in tanks prior to recycling be considered
     a salable asset or liability for disposal?

     Section 265.142(a) states that the cost estimate "must equal
the cost of closure at the point in the facility's operating life
when the extent and manner of its operation would make closure
the most expensive".  Since EPA has no guarantee that there will
be a market for wastes stored prior to recycling and that these
wastes will be in a salable condition when recycled, such wastes
should be considered a liability.

     As discussed in the January 12, 1984 memo from John Skinner
to James Scarbrough on closure cost estimates based on third
party costs, the owner or operator of a recycling facility may
continue to recycle wastes during the closure period as a legiti-
mate closure activity.  While the owner or operator need not
include the cost of disposing of that inventory of waste that he
anticipates will be.eliminated because of recycling during
closure, his cost estimate must reflect the labor and materials
necessary for recycling that waste.  It is important to point
out that recycling may only continue for 90 days after the final
receipt of waste unless an extension of the closure period is
granted by the Regional Administrator.  The cost estimate must
also include a reasonable estimate of the cost to dispose of chat
amount of waste which cannot be recycled with existing treatment
capacity in the 90 days of closure.


     If you have further question, please contact Alyce Ujihara
of my staff at 382-4784.
-------
        RCRA/Superfund Hotline                                   DOCUMENT  *G16
        October  1982  Report
QUESTION:    If a  surface  impoundment does not accept any hazardous  waste  after
             1/25/83  and is called to submit Part B of its permit  application,
             which Subparts of the 264 regulations would apply?

RESOLUTION:   Currently  Subparts A-E, G, H, < would apply but Subpart  F  (ground-
             water protection) would not.  Because of the wording  in  264.90(a),
             such  a unit is currently not subject to groundwater protection under
             Subpart  F  of  Part 264.  The impoundment would, however,  be subject
             to grounawater monitoring requirements under Part  265.   This may
             be amended in the future.

             SOURCE:  John Lehman
             RESEARCH:  Tony Baney
-------
RCRA/Superfund  Hotline                                   DOCUMENT *G1'
January 1984 Report
  An owner/operator of a disposal surface impoundment  proposes  to  lc*er
  the di'
-------
   Regional Solid Waste Branch
     Chiefs'  Meeting — May 12, 1983                   DOCUMENT *G18
INACTIVE
     A second issue raised at tne meeting concerns land disposal
facilities which the Region oelieves stopped accepting wastes
as of January 26, 1933 (the effective date of the new part 264
standards).  A numoer of sucn facilities were identified in the
Agency's recent response to Congressman Florio's request for
in format ion on RCRA implementation.  The purpose of the closure
regulation*, of course, \* to have owners and operators who havo
received their last volume of waste suotnit closure ^lans (and,
if a^licaol*. post-closure plans) ana raove towers closure uy
tne date six ^wntns after wastes were last received (e.g., close
ay July 26, 1983, in aany instances).

     If, aowever, the Region has not received notice of intent
to close from the owner or operator in the situation discussed
above, what actions should oe taken?  In aost eases, the Region
snould request suomittal of tne facility* s Part B application.
This action will force the facility to either i (1) acknowledge
its intention of continued operation by submitting a Part b
and oeginnin* the perait process under the new standards, or
(2) submit appropriate plans and take actions to close under
interia status.  The six-aonth deadline for Part B suoroittal
will provide the Region with. leverage to ootain a response
from the facility and thus end what could oe a lenghty period
of uncertain regulatory status and possiole evasion of the new
Part 264 requirements because of facility inaction,
-------
RCRA/Superfund  Hotline                                    DOCUMENT  #G19
September  1983  Report
     One  company leis«s a site and has interim status to store  hazardous
     waste in containers at  that  site.  The operator has submitted a
     closure plan to the Regional Administrator but the plan  has not
     been approved.  Can the owner of the site lease the property to
     someone else for their  use prior to certification of closure?

         Yes, the site can be used by the second leasee prior to certification
         of closure as long  as the owner, current operator, or  original
         operator assumes responsibility for carrying-out closure.

            Source:  Carole- Aasheles and Oov weitman
-------
RCRA/Superfund  Hotline
April 1984  Report
                                             DOCUMENT  #G20
An owner of a TSDF  has RCRA surface impoundments in which  no  hazardous waste has
been placed since January 26, 1983.  A closure plan has  been  submitted but not
approved.  The TSDF  land is divided into two parts to be sold.  One half has all
the surface impoundments, the other half has none.

a) Does either half  have interim status if the present owner/operator was plannim
to close down all hazardous waste management?

b) If a change of ownership does occur, does the Part A  change?

     a) If  the property sold has no'units, that portion  has no interim status.
     The half that  has the surface impoundments has interim status even thougn tm
     old owner is planning on closing. Interim status is in effect until
     terminated by  124 procedures.

     b) Yes;  changes  in the ownership of a facility may  be made if the new owner
     or operator submits a revised Part A permit application  no later man 9U day
     prior  to the scheduled cnange ( 270.72(d)).
     Source:
     Research:
Debbie Wolpe
Irene Homer
-------
   RCRA/Superfund Hotline                                     DOCUMENT 
-------
 RCRA/Superfund Hotline                                     DOCUMENT #G22
 February 1986 Report
The Qtnibus Provision and Permits

An interim status landfill contains reactive hazardous waste (D003).   The land-
fill is a regulated unit because it accepted hazardous waste after July 26, 1982.
Since it is a regulated unit, the landfill is subject to 40 CFR 264 post-closure
standards.  EPA enforces 40 CFR 264 post-closure standards by issuing a post-
closure permit. 'Prior to closure, the waste at the facility will be treated
until it no longer exnibits the cnaracteristic of reactivity.  The permit writer
is concerned that during the post-closure period, waste residues will be reduceo
anaerobically to the point where the material would again exhibit the characteris-
tic of reactivity.  The permit writer wants to require the owner of the site to
perform hydrogen sulfide gas monitoring and sulfide detection during the post-
closure period to measure the rate of anaerobic reactions.  Can these monitoring
requirements be included in the post-closure permit?
   Yes;  the Hazardous and Solid Waste Amendments of 1984 (HSWA) significantly
   increased the authority of the EPA when writing permits by adding an "omnibus
   provision" to the Solid Waste Disposal Act (§3005(c)(3)).  This provision
   states that "(e]ach permit issued under this section shall contain such terms
   and conditions as the Administrator (or the State) determines necessary to
   protect human health and the environment."  The final codification rule
   published in the July 15, 1985 Federal Register (50 FR 28702) incorporated
   the statutory provision into 40 CFR 270.32(b)(2) of the regulations.  This
   provision gives permit writers the authority to impose permit standards in
   addition to applicable permit standards found in 40 CFR 264, as long as the
   permit writer can justify the need for the additional standards in terns of
   protection of human health and the environment.  Additional standards can be
   justified by basing the standards on such sources as documented studies,
   expert opinions, and published articles.

   Source:    Lillian Bagus  (202) 382-4691
-------
                                                       DOCUMENT *G23
\        UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
                     WASHINGTON, D.C. 20460
                                                         20 -5
                                                     OFFICE OF
                                            SOLID WASTI AND EMERGENCY RESPONS
MEMORANDUM

SUBJECT:    Accepting Nonhazardous Wastes After Losing
            Interim Status
FROM:       Gene A. Lucero,  Director
            Office of Waste  Programs Enforcement

TO:         Hazardous Waste  Division Directors
            Regions I - X


     This memorandum provides guidance on whether and under what
circumstances a land disposal facility may continue accepting non-
hazardous wastes after losing interim status on November 8, 1985.

     On September 25, 1985 EPA's policy regarding the Loss of
Interim Status provision (Section 3005 (e)(2) of RCRA, as amended)
for interim status land disposal facilities was published in the
Federal Register (50 FR 38946).  The notice stated that owners and
operators of interim status  land disposal facilities that lose
interim status as a.result of failure to apply for a final permit
determination and/or to certify compliance with all applicable
ground-water monitoring and  financial responsibility requirements
must stop introducing wastes into affected facilities or units on
November 8, 1985.  The purpose of this memorandum is to clarify
the policy with respect to the receipt of nonhazardous wastes by
those facilities that no longer have interim status.

     The Agency considers it good practice to close hazardous
waste land disposal units or facilities as soon as they are no
longer needed to manage hazardous waste, in order to minimize the
likelihood of environmental and human health damage.  Therefore,
units that are required to close should be closed expeditiouslyr
they should not be allowed to remain open solely for the purpose
of receiving nonhazardous wastes.  The Agency is currently com-
pleting a rulemaking to specify this requirement in the regulations
See, proposed §§264.112 (c)  and (d)(2) and 265.112 (c) and  (d)(2)
and associated preamble, 50 Federal Register 11068, 11073  (March
19, 1985).                        "«•              ,
-------
                            -2-

     While the unit or facility is undergoing closure, nonhazardous
wastes may continue to be received, provided that such receipt does
not delay the beginning or performance of closure activities and
does not impair the effectiveness of the closure activities.  Once
closure is completed, however, nonhazardous wastes may only be
disposed of in the land disposal unit under certain very limited
circumstances. (See 265.117 (c)]. \/

     The closure process itself is required to be expeditious.  The
regulations require that the owner or operator must submit the
closure plan for the facility within 15 days after the termination
of interim status.  The regulations also specify timeframes for
approval of the closure plan within 180 days of its receipt.  The
owner or operator must treat, remove from the site, or dispose of
on-site all wastes within 90 days after receiving the final volume
of hazardous waste (or 90 days after approval of the closure plan,
if that is later).  And finally, all closure activities must be
completed within 180 days after receipt of the final volume (or
180 days after approval of the closure plan, if that is later).
Only under certain circumstances may closure activities take
longer than these prescribed timeframes.

     In light of the above deadlines, the receipt of nonhazardous
wastes during closure should generally be limited to a brief
period of time.  While §265.113 does allow an extension of the•
closure-completion deadline if the closure activities of necessity
will take longer than the specified time, such an extension 'cannot
be used to permit the continued receipt of nonhazardous waste.

     In the event Regional or State personnel determine that the
placement of nonhazardous wastes in a hazardous waste management
unit may pose a significant environmental or public health hazard,
several accions should be taken.  First, the facility owner should
be reminded that the continuation of the activity may complicate
the closure process and increase closure costs.  Second, appro-
priate Federal or State enforcement authorities should be used to
prohibit disposal of nonhazardous waste into the unit.  In additior
when appropriate, the review of the closure plan for the facility
or unit should be expedited, and appropriate restrictions imposed
via the closure plan approval process.
                                               i
!_/  Nonhazardous wastes may, however, be disposed of in a nonhaz-
ardous waste unit even if hazardous waste units at the facility ar
closing, provided that closure of the hazardous waste disposal
units is not impaired.
-------
                                                     Document «H,
                                   c IC-60
                                 5 :S83
r
Mr. Bradley E. Dillon
Associate General Counsel
US Ecology, Inc.
9200 Shelbyville Road, Suite 525
P. Oo Box 7246
Louisville, Kentucky  40207

Dear Mr. Dillon:

     Your letter of November 5, 1982, raises a question about
the applicability of the Subpart H, Financial Responsibility
requirements to a US Ecology facility.  Your specific concern
is the extent of your responsibility for compliance in view of
the "5265.140(c)  exemption for States and the Federal government
and the fact that your facility operates on land leased from the
State of Nevada.

     Section 265.140(c) states "States and the Federal government
are exempt from the requirements of this subpart."  The Subpart H
regulations apply to owners and operators; while either party may
fulfill the requirements, the Agency may take action against
either or both of the parties in the event of noncompliance.  The
Agency interprets this exemption to mean that wnere one party
(the owner or the operator) is an exempted party because it is
a State or Federal governmental unit, the other, private sector
party need not comply with the Subpart H requirements.  However,
a State or Federal agency owner may, of course, require the
private sector operator by contractual agreement to demonstrate
financial responsibility.

     I suggest that you confer with staff of EPA Region IX  and
the state of Nevada to determine the extent and applicability of
responsibilities for the concerned parties under the Resource
Conservation and Recovery Act regulations.  You should be aware
that the RCRA Subpart G regulations, which stipulate the require-
-------
                                 _ ~> -
ments for performance of closure and post-closure care, do not
contain any such exemption.  The exemption applies only to the
Subpart H regulations, which contain the requirements for proving
financial responsibility for closure and post-closure care and
for liability coverage.

                                   Sincerely,
                                   John H. Skinner
                                   Acting Director
                                   Office of Solid Waste
cc:  Dick Procunier,  Region IX -
-------
                                                      Document =H-2
MEMORANDUM
SUBJECT:   U.S. Ecology8s Nevada Facility and Financial
           Responsibility

FROM:      John H. Skinner, Director
           Otfice of Solid Waste (.'.11-562)

T'Js        Harry Serayclarian, Director
           Toxics and Waste Mana^eir.ent Division
             Region IX  (T-l)
     Your r.enorar.'i.un c: April 5 requested comments on the
Notice of Deficiency you sent U.S. Ecology.  -

     While I sympathise with your desire to ensure that all
owners and operators demonstrate financial responsibility, E?A
is not in a position to require such compliance  in this instance
Section 140(c) of tne regulations clearly exempts tno States
and the Federal government from the Subpart H" regulations.
Therefore, EPA does not have authority to enforce compliance
with the financial requirements since the U.S. Ecology  facility
is located on land owned by the State of Nevada.  Only  the
State of Nevada may require U.S. Ecology to demonstrate
financial responsibility by contractual arrangement.

     This point is covered in both the January 5, 1933  letter
to U.S. Ecology and the May 11, 1983 aen-.orandurn  to you  (copy
attached).  I want to reassure you that my staff  had  extensive
conversations with your staff before the January  letter was
issued.  I hope this clears up the natter for you.
Attachraont
-------
UNITED S. .fc3 ENVIRONMENTAL
                                              A -.NCY
                                                         Document  «K2
                                                         Attachment
            11 MAY  ;SS3
TO:
M&MORANDJJM.

SUBJECT;  April  20,  1933, Meaorar.cuTn  on Pin.ar.cial Re^uir s^r.cs

          -Jci-.n H.  S X i P. no ? ,  Dirsctor
          Offics oc  Solid Waste  (UK-552}

          Harry  Seraydarian, D^r-ictcr
          Toxics and Waste :*afiagement rivisionr Rag ion  I.x  (T-l)
     Your twoorandim of April 20 r  198 3 r  suggested that a
regulatory  interpretation aeaorandua be  written to- clarify  the
exemption. of  States and the Federal govsrnnent troa the RCP.A
Subpart 3,  Financial Requirements  ( 55264.14Q(c) and- 265^14-0(0 )).
However^ the  intsrpretation. you  suggest- dce.s not appear to  be
consistent  with  th--> regulations.   Our int-rprstation oc the
regulations,  eonfirTned by Oftic-e of General Counsel staff,  is
that set forth  in my January 5,  1933 , - lettar ssnt to .Mr. Sraale/
E. Dillon at  US  Ecology, a copy  of which is attached.  A copy
of that letter vas also seat to  Richard  Procur.isr, the Region
IX financial  contact.

     Your suggestion that~2PA notify the various State and
Federal agencies which, cay S« affected £>y this oxe^p^ion s^y
be pursued  at a  later data.  However, sxnce the owners arc
operators or  hazardous waste facilities  are jointly anci
severally liable? for the other rs^uirecier.to of, the Resource
Conservation  \r?i S^covery Act (?.CSA) r^uiac icns ,  I zr. net
sur~- tr.at such = "arrcwly fccusec  .^tt^r would oe a-i^rocria zi .
Ratner', a la:i^r orcadly adcress:.-.^  tr.-j  pcc=-p.ci3i .-:>_;. j2- in. -.a
cf the StJii-?-3 ^~d -->.;? ?rd*ral . 'overmeni: _r.^-.-r ch-- RC.-_-v
r^gu lit ior.3 vT_li r-? senc.

     You can  :^  sur-"1 that -as v-^  rr.^x^ c^cis;.7;v3 en r^v-i.aicr/
r^portin.- to  ~?.\ '-:--: a. Quarters . tais  ^ariic.lar 5-:-ctic.i -.v.»l 2s
'<-?pt in ni"1.   I i^ c-.Tt.^ir. t.iac should  v« rind s-r.-:ircr.T.';'i.'.ai
probl-?ns c?.\:.'ii'1  cr -r:
-------
                      ENERGY ALTERNATIVES
                                     inc.
 To:      Carolyn Barley,  Office of Solid waste
         Earoara Hostage,  Office of Emergency and Remecial
         Response

 Thru:    Severly Scctswccd, Project Director

 Fro-Ti:    Tony Earey, Frojec:  Manager

 Cate:    June 10, 15=:

 Re:      Monthly Peccri - RCRA/Sucerfund I-.C'US'T/ Assistance
         He-line for May,  1532.

         This resort is precared and submitted  for £?A Contract
         No.' 63-01-65^5.
I-v.   Rescluticn of Issues
A.  Issue:
The financial requirements of sutpart H do not  accly to states
and the  Federal Govern-ent according to 26^/265.1^0.  Counties
wonder if  they too are part of the state exclusion.
    Resolution: Counties are not exeunt, according  to Emily Sano.   Note  that
               the May 19,  1980 FR preamble,, p.  33199, makes a distinction
               between the  state exclusion and the county accountability.
               (Issue researched by Irene Homer).
-------
   *i           UNITS- STATES ENVIRC>V.*JT...:..»N:TECTICN AGENCY
                            w ASHING.- iiN. ;...C. /Jiso                       Document  =

                             J A vj A 3 y  25.  1935

                                                                    5" Ct 3«
                                                         sow-3 *»*J? t AN: i

MPCHANDL'M

SfBJSCT:  RCWSuperfur.d Hotline Monthly Status Report — Decerier 1934

F8CM:     Carolyn Barley, Project Officer
          Office of Solid Waste (332-2117)

          Barbara Hostage, Project Officer
          Office of Emergency and Remedial Response (382-21867"

TO:       Addressees
    T>.e Hotline responded to 2/33 questions and re
-------
                                                            Document »
                                                                      H-
   ,'OBJECT:   5.C?.A/SU?E*?'J!
-------
                                                                Document *H-6

   F^.rfun
-------
                                                            «H-7
                             JAN I 2 !9:-
 5*0» A* DO*
         Clo»«r* Cast !att»*t»a Ba»«4  en  Third  Ftrty Co«t«
         Join a. »*i«iv*r, Stricter
         Cffic* ot solid Wait*
To:      J»>^»» H, ScarSrovKsh, CHi*f
                   MAaa-3«»*nt sraneh
                XV
        * is in r«s;o*»«  to year »«%eraiMi«B of »ov*sb*r 22, 1113
in vnie* yo« rai*-* th* iaau* of va*th«r  «  eio«ur« plan for A r»-
e^clii>j tAcility c«n «p«cify continuation  o£ rveycliiig ia oro context of A •tateavnt »ad«  ia ta«  5^pt*«o^r 19, 1)13 ftC2A/
Sup«r(aod tiotlin^ r»?ort.  m« iotlia« rvport «tat*d that •
co4t »»ti»«t« cannot. b« r«axic«d to  r«fl*ct plann^d r»cy«li»g of
va*t« at • facility or th« planned  aal«  of «qnlp««nt or property
    cost •aeisMt* *»uat  r»tl»«t closur*  at tMi «oat «xp«aaiT« point
in t.*w» facility's ep«rating  lif«,  rat&«r tnan aoaa point aftar tA«
eaeiiity's inv«ntory  ia r«duc*d  by contiA««d r*«ycliag of wast* on
fit** or after sal* o<  capital.
         * tr»* Hotlla* «*»o  ia corrvct^  yo«r m*«o raises a ««p«rat,«
iaatw, wnlcb tb« aotllfr*  r*port did  not  addr***.  Tiat isso* i*
«t\*t&*r th« cloaur* coat  *«tiMt* way r*fl*et tl^« co«t o* «lo«or-*
activiti«a carri*4 owt by th* o«rt*r/operator (vtio »ay ««• hi* oim
^*raoon*l an^ »qui^»«nt  1C b« d*siraa)«  or vMtfctr th« ««ti*-at*
wust r*fl9«t th* co*ts o< clo«\tr* activit** carr 1*4 ovt by a taird
       s«*ei> as tn* gtyr*fr»*»t or a privat* contractor*
     Yo« r*f*r*nc*d  s«r*ral  stat*««flt« ia tiM regulations and EPA
yuldaac* uoooMnts vfeleft yoo iat*rpr.*t to m«aji ta*t tb*> first ea*«
ia eorr*ct.   In tao  eo«t««t  of  rscyoliag fa«illti*a, you a«vo ia*
t*rpr*t*d th« r*q«latioQ« aod ittldanc*. to B«*B taat 1) eo«cio«a>4
recycling at  a recycling facility it a Com o< •trsuitaont* and a
lagitiJutsj aicmur* actirity, and  2)  ta« clo««r» cost *ati»at» for
a r*«yelia9 facility My rvflsct  tft« ownor/op«r»tor's o*ti costs of
carrying out  nia closer* plan.
-------
     t  eonoir witn  thes« interpretations.  witn regard to your
        ?r   -lei**  •***« "°te oi an i^rtant requirement whicn
   ' '       it!!"inool of a lar3«, aoan<1on*d .toct»ile of waste
               -l
i-sse                    clO9Ur..
           * t - oCnorator has aa day, 
-------
                       W A                3


                                                       Document  *H-3
                                              SCU, 3 *AS-£ AS 3
MEMORANDUM

SUBJECT:  Determination of a Facility's Operatin
FROM:     George A. Garland,  Chief
          Financial Responsibility and Assessment Branch (WH-5623)

TO:       William H. Taylor,  Chief
          Enforcement Section,  Region 6


     This memo addresses the questions raised by the State of
Oklahoma in their letter to Region 6 dated September 6, 1984.
Most of these questions concern how one determines the operating
life of a facility for the purpose of calculating the trust fund
pay-in-period.  As requested, 1 also address the separate issue
of how to treat recycling in the closure cost estimate.


1.   How .does one calculate a facility's operating life for
     determing the pay-in-period for the trust fund?

     For permitted facilities,  "payments into the trust fund
must be made annually by the owner or operator over the term of
the initial RCRA permit or the remaining operating life of the
facility as estimated in the closure plan, whichever period is
shorter" (§ §264.143(a) (3) and .145(a)O)).  For interim status
facilities, "payments into the trust fund must be made annually
by the owner or operator over the 20 years beginning with the
effective date of these regulations or over the remaining operat-
ing life of the facility as estimated in the closure plan, which-
ever period is shorter" (SS265.143(a)(3) and .145(a)(3)).

     For purposes of this requirement, the operating life of a
facility must be presumed to end in that year in which the owner
or operator currently expects to close his facility.  His expected
year of closure should be identified in his closure plan.

     EPA should be able to determine, after reviewing the facil-
 ity's operating record, whether the owner or operator's estimate
of the year he expects to close his facility is reasonable.  If
 EPA believes  that  the facility's operating life is less than
 that stated,  we may require  the owner or operator to change  the
 closure plan.                      -«•
-------
2.   Should a facility's operating life be deeenained based on
     existing. permitted unbuilt, or unpertnltted unbuilt caoa'cicv?

     The capacity of boch permitted and interim status facilities
to store or' dispose of wastes for the purpose of determining the
facility's operating life should be based on "the maximum extent
of operation which will be unclosed during the life of the facil-
ity" as required in the closure plan under SS 264.1 1 2(a) (1 ) and
265.112(a)(1).

     Thus, for permitted facilities, operating life should be
based on permitted capacity which may include unbuilt capacity.
Operating life will not be based on unpermitced capacity.  If
the owner .or operator later decides to increase capacity at a
permitted facility by building additional units or expanding
existing units, he must modify his permit.

     For interim status facilities, operating life should be
based on the capacity described in Part A of the facility's
permit application.  If the owner or operator later decides to
increase capacity beyond what is stated in the Part A, the owner
or operator must modify his Part A and his closure plan.


3.   Are payments _to the trust fund based on each  individual
     unit or the racility as a whole?

     Sections 264. 1 43(a) (3) , 264. 1 45 (a) (3) , 265 . 1 43(a) (3) , and
265.1 45(a) (3) state that the payments inco the trust fund must be
made -over the remaining operating life of the facility (if less
than the permit life or 20 years) .  We cannot interpret "facility"
as it is used here to mean "unit".  Thus, the pay-in-period to
the trust fund must be calculated for the facility as a whole.
If the facility has more than one unit, the end of the facility's
operating life for purposes of calculating the trust fund pay. in
period will be that year when the owner or operator expects to
close the last unit (assuming this period is less  than the permit
life or 20 years) .
4.   How does one determine the operating lffe of a tank or
     surface impoundment which can be rerilled?  How do treatment
     processes affect operating life?

     During the operating life, the level of waste in a tank or
an impoundment may vary.  Filling and emptying is part of a tank
or impoundment's normal operating life.  Wastes may be created,
sludges may settle out, liquids may evaporate or be drained off,
sludges may be dredged out and disposed of.  While the level of
waste  in a tank or impoundment may 'fluctuate, the facility is
still  operating until the year the owner or operator has indicated
he expects co close the facility.
-------
     Prior to che time the facility receives its final volume of
waste, the owner or operator should be able to determine the
year he expects to close based on the treatment or other storage
and disposal processes he employs.   If he plans to operate  lor.ge:
than he had originally intended,  he must modify his closure plan.


5.   Should waste stored in tanks prior to recycling be considered
     a saiaele asset or liability for disposal?              —-

     Section 265°142(a) states that the cost estimate "must equal
the cost of closure at the point  in the facility's operating life
when the extent and manner of its operation would make closure
the most expensive".  Since EPA has no guarencee that there will
be a market for wastes stored prior to recycling and that these
wastes will be in a salable condition when recycled, such wastes
should be considered a liability.

     As discussed in the January  12, 1984 memo from John Skinner
to James Scarbrough on closure cost estimates based on third
party costs, the owner or operator of a recycling facility aay
continue to recycle wastes during the closure period as a legiti-
mate closure activity.  While the owner or operator need not
include the cost of disposing of that inventory of waste that he
anticipates will be eliminated because of recycling during
closure, his cost estimate must reflect the labor and materials
necessary for recycling that waste.  It is important to point
out that recycling aay only continue for 90 days after the final
receipt of waste unless an extension of the closure period is
granted by the Regional Administrator.  The cost estimate must
also include a reasonable estimate of the cost to dispose of that
amount of waste which cannot be recycled with existing treatment
capacity in the 90 days of closure.


     If you have further question, please contact Alyce Ujihara
of my staff at 382-4784.
-------
                                                                   Document 4H

MErePAsa-M                                                SOLI°WASTE ANO ev<"je 'w • •

(SUBJECT:  Monthly Repc/:'. - RC?A/Superfund Industry Assistance Hotline Report for
          " March 19 3r,
       2. Financial Test Liabilities

          The financial test used  to demonstrate compliance with financial
          responsibility requirements under §265.143*utilizes a ratio of total
          liabilities to net worth, §265.143(e)(l)(i)(A).  What is to be included in
          the total liabilities estimate?  Would accounts payable be included in
          the total liability number?

              Neither the  regulations nor the statute contains any definition of
              total liabilities.   According to the Glossary of Terms in "Financial
              Assurance for Closure and Post-Closure Cares  Requirements for Owners
              and Operators of Hazardous Waste Treatment, Storage, or Disposal
              Facilities"  (SW-955), total liabilities are defined as "total debt*
              owed by a business or individual including all liabilities."  (p.  ij;

              In that sane glossary, EPA defines "liabilities" as:

                 "...probable future sacrifices of economic benefits arising fron
                 present obligations to transfer assets or provide services to
                 other entities in the future as a result of past transactions or
                 events."  (p. 8)

              The Agency uses the  sar.e definition of total liabilities as used in
              generally accepted accounting practices.  Therefore, for further
              clarification, owners or operators should be directed to Financial
              Accounting Standards Board Concepts Statement No. 3 Elements of
              Financial Statements of Business Enterprises which stipulates
              three essential conditions that an item must fulfill to qualify as
              a "liability:"

                 o  It must involve a present duty or responsibility to transfer  ;c
                    use assets at  a deteminable date;

                 o  It must be unavoidable? and

                 o  The event obligating the transfer or use of assets must
                    have already occurred.

              According to this definition, owners or operators should not excises -..:-
              company's day-to-
-------
Key Words; Closure, Financial Test

Regulaticr.s; 40 CrR Parts 254, 265

Subject; Capital Requirement of the Financial Test for Assurance of
         Closure and Pest-Closure Care at Hazardous Waste Management
         Facilities

Addressee; Mr. Allan B« Mitchell, Mitchell & Schultz, Inc., P.O.
           Box liO, 310 E. Lee, Sapulpa, Oklahoma  74066

Originator: William D* Ruckelshaus

Date: 12-9-83

Summary; The financial test is the neans by which a financially
sound firm may demonstrate its ability to cover the costs of
closure and post-closure.  This test differs from other acceptable
mechanises for assurance of financial responsibility.  In the
event of abandonment or bankruptcy, there is no special fund of
money that EPA can use to properly close and maintain a facility.
Therefore, it is imperative that the Agency knows that a firm
passing the test is viable and that sufficient funds would
remain even if the financial position of the firm were to change.

   The financial test determines the needed safety margin.  There are
two alternative sets of criteria found in §264 and §265.  The
first alternative  is the "ratios" test which requires a net
working capital of at least six times the sum of the closure and
post-closure estimates.  To assure that the closure and post-closure
costs themselves would not cause insolvency, the Agency originally
determined that a  firm should have net working capital of at
least twice the cost estimates.  However, in studying bankruptcies,
the Agency discovered that many firms experienced a rapid deterioration
of financial condition in the several years prior to business
failure.  In such  cases, net working capital fell by an average
of 66% in two years.  Thus, a multiple of six  (a factor of two—to
insure ability to  pay—times three—to protect against rapid
deterioration) was found to be necessary. •

   The second alternative is the "bond rating" test.  This assures
viability and credit-worthiness, as opposed to predicting bankruptcy
as in the "ratios" test.  Both Moody's and Standard and Poor's  look
at many factors, including ratios, in assigning a rating, e.g.
firm size, ability to raise money easily, etc.  These firms also
have a statistically lower business failure rate than those that
pass the "ratios"  test.                 'r                »

   Over 90% of those firms wishing to pass the financial requirements
test are able to do so.  EPA believes that these requirements are
consistent with its responsibility to protect human health and  the
environment.
-------
                                                                      Docu.T.e.nr  =--
               •JNiTEr STATES ENVIRONMENTAL PROTECTION AGENCY
                                 JUINGTCN 0 C.  20.160
                                                         SOLID WASTf J..NO
  «"ajffC7-  RC.WSUPERFUNO HOTLINE MONTHLY-STATUS REPORT - June 1922.
            Toll Free - 300-424-9346
            Wash OC/FTS - 232-2000

  •ROM:     Carolyn Barley, Project Officer '  4z*^ge~£sasij£—.
            Office of Solid Waste (2S2-45C5)W     //          7
            Saroara Hostage, Project Officer  >
            Office of Emergency and Rer.ec-ial Response  U
-------
                                                   Document  ?H-;2
       Carolyn  Barley,  Office cf Sclid Waste
       Barbara  Hostage,  Office cf Emergency and Remedial Re.sccr.s3
Thru:-  Beverly Spctswocc,  Project

°rcm:   Tony  Baney,  Prcject Manager

)ate:   April 11,  1333

le:     Monthly Resort  - RCRA/Surerfund Industrv Assistance
       Hotline for  March,  1933.

       This  report, submitted under EPA Contract :ic. 53-C1-654?,
       was  prepared by Denise Wrigr.t, Information Specialist.
 Issue:             To  meet  the  bend  rating  :cr  t.-.e  financial  test,
                   which  bends  are  considered-capital  cr  pollution
                   control  bonds?   If tr.e  last  bend --as  issued  two
                   years  ago, which  rating  is  used-tne one  at
                   issuance or  the  current  one?

 Resolution:        The most recently issued bond must  be  used  to
                   see if the company meets the bond ratings  of
                   Moody's  or Standard and  Poor's.   The current
                   rating of the bond is  used.

                   Source:    Emily Sano
                   Research:  Irene Homer
-------
                                                                  Document: =H-13
      i          UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

      . *         .               WASHINGTON. D.C.  20460
                                    MAY  22,  1934
                                                                      o^ BICE
                                                           SOLID WASTE AND
   HEMCRANDUM

   SUBJECT:  RCRA/Superfund Hotline Monthly Status Report -- April  1984

   FROM:     Carolyn Sarley, Project Officer
            Office of Solid Waste (382-5235)

            Barbara Hostage, Project Officer
            Office of Emergency and Remedial Response (382-2136)
RCRA/Superfund Hotline
April 1984 Report
Paae 3
5..  264 and 255 Sjbpart H  state  that  a  financial  test  letter(s) sent to tne Reqi '•.••
    Administrator demonstrating  financial  assurance and  liaoility cove-ace rrust :a
    signed by the Chief Financial  Officer  (CFO).  Can  someone  other tnan the CFO r,
    del'egated to sign  these  letters?
         No;  only the CFO can  sign  financial  assurance  :na
         demcnstraticn letters.
-------
                                                              Document  =H-14
 ^\l^Xr Jj

       \
                  ENERGY ALTERNATIVES
To:


Thru:

Frcm:

  te:
Carolyn Barley,  Office  of Solid Waste
Barbara Hostage, Offics of Emergency and Remedial ^esscnse

Eeverly Spotswccd,  Project Director

Tcny Saney, Project Mar.acsr

May 10, 1982

Monthly «scort - SC^A/Sussrfund Industry Assistance Hotline  fcr Acril
.1982.

This report is precsrsd and  submitted for EPA Contract No. 6S-C1-6549,
     jiicn:
               The financial  rec'-iirs^ents of ^0 CSF 25^/265 Suboart H have
               raised many  cues'icns.  The most frecuent cues'ions are en the
               definitions  of terms used in the financial test,  especially
               the teirm "assets  in the United States."
                  o
               than
            cublically owned corporation's  fcreicn assets are greater
            1G% of its total assets,  the Securities and Excr.ancs
               Commission (SEC)  requires the corocraticn to file an annual
               researched by Karen Gale].

0.  Issue
       Another question 'often posed  to the staff is what is the
       diffsince between "assets in  the United States" (265.1&5
       (e)(l)(ii)(D), and "assets located in the United States"
       (265.145 (e)U)(ii)(D)?
-------
nlr««f.nr, roiq fInternational) f.in
t»->ex Rous*
•tinories
London «:C3*» 1«J, England                :

near nr. Aicfcint

     Thank you for your letter of July  2fi,  19B2,  regarding
the hazardous v**ste Facility Certificate of  Liability  Insurance
included in the liability coverage  regulation  applicable  to
hazardous waste facility'owners and operators  (40 CPP.  "?*54.151 ( j) 1
As Acting nirector of the Division  r»*oonsihle for de»relonn*-t»:
nf the" liability coverage regulation, T an  pleased to  provi^^
you with th« following response.

     Your concerns, as w« understand them,  have to do  vith
the Agency's intent in using certain terria  in  the Certificate.
TO clarify the intended meanings, we confirm the following.
Tn using th« word 'occurrence* in th« Certificate, the Agency
^i'* not intend to Unit the insurance policies which may  be  used
to neet the r«guir*?«ents of Aft c?*  -?$4.147  or  755.147  to   .
nccurr«nce—ba^ed colirien.  Mor did the Agency intend  to
exclude coverage provided hv claiwfl-"iade nr>licie^, or  to
qfiend clai'^-n^de policies so that  thev respond on an  occvirr^nc^
basis.  (The Agency's intent in using the  tern "occurrence"
is indicated in the preamble to the regulation under 'Definitions
and rjsage" (47 r* 16551, April If,  1332).1)   Furthermore,
use of the words "each occurrence"  in the Certificate  is  not
intended to alter limits of liability under the policies
which respond on a "per clain" or "per  incident"  basis.

     Similarly, use of the terms "sudden accidental occurrence"
and "nonsudden accidental occurrence" in the Certificate
doe* not preclude use of other terms, such  as  "environ.nental
i*»pairnent* or 'pollution incident,* in the insurance  policies
'o describe the extent of coverage. As indicated in the
preanbl*, the Agency does not intend that the  Certificate
language should modify the contractual  obligations regarding
extent of coverage under th« insurance  policie* jjaed to
satisfy the liability coverage requirement  (47 ??. l«S4l,
und*r 'Extent of Coverage").
-------
                             -•5-
           *tate«.ents arc intended  to  clarify th*» neanir.qa
njr t»r   used In f>« Certificate  *.nd -^ouH  not  h^ interpreted
*« « cc*^en». on th« acceptability of ccv*raq« prcvidex! fcy
any articular insur»nc«» oolicy  in  newtina  the renuir-^ents
of 4n c.v* 2^4.147 or 26^.147.

     w« hope tht* letter re?oon«1^ to ami  alleviates your
concerns•

                               Sincerely,
                               *ruce P.
                               Acting Director
                               State Prograns and
                               Resource Becov«ry Division
-------
                                                      Document =H-16
 Charles W. Shipley
 1 Vullians Center
 Suice  1770
 Tulsa, OK  74172

 Dear Mr. Shipley:

     This leccer is in response co your question to ray staff
 regarding insurance coverage Units required under the KCUA
 Subpart H regulations.

     As you knov;, 40 CFK 2b4.147 and 265.147 require all owners
 or operators of hazardous waste management facilities to demon-
 strate financial responsibility for bodily injury and property
 OeuTJSfce to third parties caused by sudden accidental occurrences
 in the amount of $1 million per occurrence and $2 million annual
 ap.&rcj>;ate.   In addition, the owner or operator of a surface
 impoundment, landfill, or land treatment facility must demonstrate
 financial responsibility for bodily injury and property damage
 to third parties caused by nonsudden accidental occurrences in
 the aiuount of $3 million per occurrence and $6 million annual
 agp,rep,ate.  An owner or operator has several options to satisfy
 this liability coverage requirement. .

     An owner or operator who chooses to meet both the sudden
 and nonsudden requirement solely through the purchase of insurance
may obtain a single insurance policy to cover both sudden and
 nonsudden accidental occurrences.  This policy, however, nust
 provide coverage for at least the sug of the sudden ami nonsuaUen
niniaun limits.  In other words, sucn a policy must provide
 coverage for at least $4 million per occurrence with an annual
 aggregate Of ac least $8 million.  The liability limits
of S4/S8 million are consistent with our regulations and provide
adequate coverage,   of course, an owner or operator nay satisfy
 the liability coverage requirement by ootaininig two separate
 insurance policies, one to cover sudden accidental occurrences
 (with limits of at  least S1  and $2 million) and one to cover
nonsudden accidental occurrences (with limits of at least $J
 and $6 million).
-------
     We are aware that this option is noc specifically addressed
in S* 264.147.or 265*147 of the regulations.  The required
wordinp, for the enaorsenienc and the certificate of insurance
(5S 264.151(i)(1) and 264.151(J)0)) i however, staces that:

     The coverage applies at [list EPA Identification
     llumber,  name, and address for each facility] for
     [insert  "sudden accidental occurrences," "nonsudden
     accidental occurrences/'  or "sudden and nonaudden
     accidental occurrences"]  (empftasis added).

     If you have further questions, please feel to contact me at
(202) 382-4761.

                               Sincerely,
                               George A.  Garland
                               Chief, Financial Responsibility
                                 and Assessment Branch
-------
                                                      Docuemnt *H-i7
                                   1984
MEI«ORAMDL'?1                       •                  . -

SUBJECT:  Availability of Environoental Impairment Liability
          (EIL) Insurance .        .        .   .   .  .           .   .  ' •

          John H. Skinner, Director                   '"-.'•••
          Office of Solid Waste (^H-562)

TO:       Regional' Division Directors * •••             •  •
        .  Regions I-X'
                *                                  «,

     There has been some question raised  in the Regions about
the availability of Environmental Impairment Liability (EIL)
insurance.  EIL insurance is necessary for owners and operators
of surface impoundments, landfills,-and land treatment facilities
to meet-the liability coverage requirement for nonsudden accidental
occurrences under 55 264.147(b) and 265.147(6), -if they are not
using the financial test.  Owners and operators with annual sales
or revenues of less than S5 million will become subject to this
requirement in January 1985.

     It is my understanding that this type of insurance is avail-
able, although there is a waiting list.  Attached is a list of
companies which offer EIL insurance and the limits of coverage
they provide.  The Agency has been advised that at this time
only two companies on the list, Shand Morahan and American
International Group, are taking new customers.  The rest of the
companies are offering policies only in limited circumstances.

Attachment
-------
                ~~ '  ~  "ii.'.'"."	~'\~~~~~ '""  -"'" <"2£:> = %>         Documert
                             "* A
                             ffiA:
                                                            -j-i
 SUBJECT:   SC?A/STJPE?5UMD HCTLI^ ^^TIHLY ST*Z*JS P2X?*° - *-urusr" ln
           Toll Free  -  300-424-9346     ""    ' '   """   '     ^^
           Vfesh X/FTS   38 2-3 WO
                 ..      . <-.  ,
 FSCM:      Caralyn Barley, Project officer
           Office crsalid Waste (382-5233)
           Sarsara Hostage,  Project Cff icsr
           Cfiice cf Sner;ency and ?eme£iai Resperie (382-791?)
                             ccr.cany
               nctica of cancellation?
 -J
Answer:        The insurance ccnpany is bcur.d by -.he certificate cr
               to give proper notice.  TT.ere is no recruirscnent for tr.e facil.r/
               to give ttie* insurance ccncany advance notice.  Tne insurance
               cor.cany could protect itself against this in its contract witr.
               th« facility.

               Scurca:    Karen Gale                            ; ^>L ( ^   -
               Researoh:  Irene Homer                          : '
-------
                                                                       Document  *H-19



                  UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
\ ^\i/^- .*                       WASHINGTON, O.C. 20460
                                   CEC-20ISSJ                        O.,c,5,
                                                            sotio
      MEMORANDUM

      SUBJECT:  RCRA/Superfund Hotline Monthly Status Report — Novenber 1984

      FPCM:     Carolyn Barley, Project Officer (382-5235)  £2«fr»«^<.
               Office of Solid Waste                             ^f
                                                               y   / /            -^
               Barbara Hostage, Project Officer \£cvU/a*aL> Tlfe&Oai—     (J
               Office of Qnergency and P-enedial Response (382-218'$)
      The Agency requires owners cr operators of hazardous waste treatoent, storage,
      or disposal  facilities  to have  liability coverage fcr accidental occurrences
      arising  from the operation of their  facilities.  These requirements.are specified
      in 40 CFR §264.147 and  §265.147 fcr  permitted and interim status facilities,'
      respectively.  The required  coverage for sudden accidental occurrences is at
      least $1 million per  occurrence with an annual aggregate of at least S2 million,
      exclusive of legal defense costs.  The required coverage for ncnsudden accidental
      occurrences  applies to  facilities with surface impoundments, landfills, or land
      treatment units.  These facilities mat also have sudden accidental insurance
      coverage. Nonsudden  coverage  is at  least S3 million per occurrence with an annual
      aggregate of at least $6 million, exclusive of legal defense costs.  Must an
      owner or operator of  several facilities have liability coverage in the amounts
      just stated  for each  facility?

         No; one policy will  cover all facilities.  Liability  insurance is required oo.
         a per firm basis rather than a per facility basis.  The requirement fcr the
         use of an annual aggregate  liability coverage encompasses the risk of multiple
         occurrences airong  facilities belonging to the sane owner or operator.  Fcr
         exanple,  an owner  of six  container storage facilities would only need sudden
         accidental occurrence coverage of 51 million per occurrence with an annual
         aggregate of $2 million.  This  issue  is  addressed  in  the April 16, 1982 Federal
         Register  (47 FT* 16546).

         Source:    Carole Ansneles  (202)  382-4761               f
         Research: Hilary Sottrer
-------
       'i          UNITES STATS5 ENVIRONMENTAL P*oi£C7ICN AGENCY     D°curr,ent  =K-20

\ ^SZZ *                        WASHINGTON, O.C. 204CO
                                     nCTCS-3 15, 1S83
     SUBJECT:     R£RA/Su0e\fund Hotline Monthly  Status  Report - September 1933
                  Tell Fre« V 800-414-9346
                  Wash OC/FTS . 3S2-30CO

     FROM:        Carolyn Birrty,  Project Officer  X?    ^
                  Office of Solid  waste (382-5235)  V _ ^<  *^*-
                                             • • .7          ^               >r
                  Barbara Hestige, Project Officer No/                     ^
                                 ,
                  Office of Emergency and Remedial  Response  (382-2i86)
            If a State does  not  have  a  required financial mechanism but nas an
            approved  financial mec.ianism, can a facility owner/operator use tne
            approved  mechanism uncer  AOCFR 2S4.U9?

                Section 2S4.U9  of the  regulations allows the substitution of a
                financial  mechanism «nicn the State requires for one of the E?A
                aporsved mechanisms.  This substitution requires the approval
                of the ^egieral  Administrator.  A State approved (but not recui
                mecnanism  can also be used in lieu of tne r»
-------
                        Document.  *H-21
DEC I 4
                                    *• N
                                      3
                                    T *
                                    i* H
                                      I
                                    » 3
SUBJECT!  State Financial Regulations

PROWi     John H. Skinner
          Director, Office of Solid Waste

TOi       Stephen *t wassersug, Director                           ^ ^
          Air and Waste Management Division, Region III            ^'^
                                                                   31 **

     Thank you for your October 4, 1983 memorandum on the above    rS
subject.  X regret the delay in responding! however, it was          ^
necessary that we coordinate this response with the Office of        ^
General Counsel (OGC).  OGC reviewed this Issue and determined       o
that the position presentsd below is consistent with our legal       H
authority.                                                           ^
                                                                     MM
     You have asked whether State (Maryland's) financial respon-     -^
Aibllity regulations which do net exempt Federal facilities          =
would be a ba'rrier to final authorisation,  we note that Maryland's
regulations require Federal facilities to provide! (1) financial
assurance of closure and poet-closure care, and (2) liability
coverage for sudden and non-sudden accidental occurrences.

     Our review of these provisions was governed by two applicable
Part 271 regulations! 5271.1(1) and 4271.4(b).  Section 271.1(1)
states that nothing in Part 271 precludes a State from! (1)
adopting iwore stringent or more extensive requirements than EPA
Has promulgated, or (2) operating a program with a greater scope
of coverage than EPA requires.  Section 271.4(b) establishes a
potential limitation on this authority, however.  It provides
that "any aspect of State law or of the State program which has
no basis in human health or environmental protection and which
acts as a prohibition on the treatment, storage, or disposal of
hazardous waste in the State may be deemed inconsistent.'  40 CFR
271.4 is based on Section 3006(b) of RCRA which providee that a
State program must be consistent with the Federal program (or
state programs applicable in other States) to receive authorisation.
-------
                               -2-
          M-ritina that during SPA's public comment period  on
         *T phase 1JA application no comments wara racaivad
      ar^iM3 the 1«<3«* *nd factual basis for imposition of
            financial responsibility requirements on Federal
             Howavar, we independently concluded that Maryland's
 reguU*lon* raised serious issues with regard to their legal
 basis.

     To expedite our consistsncy reviev, we initially projected
 the worst casei namely, that the Maryland liability insurance
requirement has no basis in human health and environmental
protection and acts as a prohibition on treatment, storage, or
disposal of hazardous waste in Maryland by Federal facilities. I/
The Federal Tort Claims Act and/or the Anti-Deficiency Act  may
preclude Federal facilities from being sble to obtain third party
liability insurance; therefore. Federal facilities presumably
could not obtain Maryland permits.  For the reasons stated  below,
SPA has concluded that even this 'worst case" analysis is not
adequate cause to deem the Maryland program to be inconsistent.
     First, the Maryland regulation* will not be part of the
Federally-authoriied Maryland hasardous waste management program.
The Maryland regulation does not represent a 'more stringent*
version of a Federal requirement but, rather, a 'more extensiva*
State reqxiireaent that goes beyond the scope of the Federal
program.  It is sere extensive because it subjects a greater
nuaber of facilitiee to financial responsibility requirements
than the Federal program.  Under 40 CPU 5271.1(1) only more
stringent State provisions become part of the Faderally-author tied
program.  Since the Maryland financial responsibility requirements
will not be included in the authorised program, EPA will not play
a role administering the Maryland regulation, nor can EPA choose
or be compelled to enforce it.

     Second, we have concluded that the current status or future
fate of the Maryland regulation does not undermine or significantly
affect the ftCRA Subtitle C program.  A court decision striking
down or upholding the) regulation would have no impact on non-Fadertl
facilities or other non-financial responsibility requirements
that apply to Federal facilities.  This provision, therefore, is
easily severable from the Subtitle C program.
     I/  The health or environmental basis for the cloeura/post-
closuFe care requirement is questionable since the Federal
government has the financial means tP provide such care.  However,
this provision would not act as a prohibition within the meaning
of 40 CP* *271.4(b) and consequently is not a barrier to final
authorization.

     2/  This memorandum does not express any opinion concerning
the effect of Section  €001 of RCKA.
-------
                              -3-
           • -      .*ercl8ing  our  discretion un?l«r  40 CPR «271.4(b)
     According'  •  that  we have  determined that the Maryland
we are advi«i"<3 y°"  u    requirements (I)  will not be part of the
financial '••"M
-------
                                                                          Document  #H-=22
                   NiTSS'STATSS ENVIRONMENTAL PROTECTION AGENCY
                                WASHINGTON  DC. 20460
                                                                      -««.-:» ;*

                                                           SOUO WASTE AND i'.-f »C*«i
     SUBJECT:   SCRA/SUPESVUNO  HOTLINE MONTHLY  STATUS  REPORT - June 1982
               Tell  Frae  - 800-424-9346
               Wash  OC/rrS - 282-3CCO

     RCM:      Carolyn  Barley,  Project Officer
               Office of  Solid  Wasta (282-4505)^

               Barbara  Hostage,  Project Officer
               Office of  Ener^ency and Remedial  Sasponse  (£45-3057

   Question:     If an endorsement or certificate of insurance is used for be
IL,               sudden and non-sudden insurance, how is the cistinctior ?.ade
 »         v      between sudden and non-sudden?

   Rsssl-tion:   According to Emily Sano, sudden and non-sudden ^ay be added to
                 indicate the monetary limits i.i^the wording -here <5xc3Si car--
                 la nguage has also been allowed.
                                                                         f' LL-"-)
-------
                                                   Document  *H-23
   totar
                                                     \''
 c r c rn i

 Dare:

 He:
Carolyn Barley,  office  c: Solid '.Vasts
Barbara Hcscace,  Office of Emergency and Remedial
Response

Beverly Spc-svccd,  Project Direc-or

Tony Baney,  ?rojeo~  Manager

February 13 ,  1933

Monthly Report - RCRA/Superfand Industry Assistance
Hotline for  Januarv,  1933.
          This  reccrt is crecared and submitted  for  EPA Ccr.tr:
          Mo. 65-01-5549."
Issue:
Resolution;
              What is the difference  between "cancellation"  ar.d
              "termination" of an insurance cclicy under  lectio.
              254.151(1)(2)(d) and (e)?
              Cancellation occurs curing  the active life of  --•
              policy (i.e. cancellation for non-paynent of the
              premium).  Termination  occurs when a policy runs
              course and is not renewed.
              Source:   Emily Sano
              Research: Karen Gale
-------
               UNITED STATES ENVIRONMENTAL PROTECTION          Document  *H24

                             WASHINGTON. D.C.  20440
                                  ,'.':-^   4  l'3£5           »OUO WAJTI ANO
SUBJECT?  RCRA/Superfund Hotline Monthly Status Report — January  1985

FROM?     Carolyn Barley, Project Officer
          Office of Solid Waste (382-2217)

          Barbara Hostage, Project Officer
          Office of Ewergency and Remedial Response (382-2186)

TDs       Addressees
        A facility has a surface  impoundment which has not be«n used to store
        hazardous waste since July 1983.  The facility is still operating under|
        interim status as a generator of hazardous waste.  Although the surface
        itrpoundment has not been  closed in accordance with interim status require-
        ments, the owner/operator of the facility canceled the liability insurance
        for the surface impoundment.  Is the facility in compliance with Part 265
        Subpart H of RCRA?
             The facility is not in compliance with RCRA.   The facility should
             have sudden and nonsudden liability insurance for the surface
             impoundment until certification of closure is received .either  by
             the Regional Administrator or State Director, depending  on which
             has program authorization (5265.147(e)).  Certification  of closure
             is addressed more fully in $265.115.

             Source:  Carole Ansheles (202) 382-4761
-------
      '-.           - '  • ~- -' - ---••-- < '•=.% . ,:_ --w  =._ .  _*, A •- • -
    'J                        WASHINGTON  c c  2QJ50                 Document  4H25
'(. ;*&*'


                                AJ6   4  1986


                                                          SCL 3 /VAS~£ ,\-.j s'.'Sa'ie'.C'i
 MEMORANDUM

 SUBJECT:   .Monthly Report - RCSA/Superfund Industry Assistance  Hotline R*oort
            for June 1986.                                              '  ^

 FRCM:      Joan Warren, Office of Solid  Waste
            (WH-562)


   3.  Financial Requirements/Closure Costs

       The regulations  under 40 CFR 265.143(a) apply to  the use of a trust
       fund as a financial assurance mechanism for closure of an interim
       status facility.  Section 265.143(a)(3) requires  the owner/operator
       to make annual payments into the  fund throughout  the "pay-in period."
       The "pay-in period" is defined as the 20-year period following July
       6, 1982 (the effective date of  the regulation per 47 FR 15032) or
       the remaining operating life of the  facility, whichever period  is
       shorter.  An interim status facility  with three surface unpoundments
       has estimated different closure dates for each unit.  If the facility
       uses a trust fund for closure/financial assurance, how does it make
       adjustments in the pay-in period  for  the different closure dates?
       Do the new closure/financial assurance regulations, effective October
       29, 1986 (see the May 2, 1986 Federal Register)(51 FR 16422)), change
       these requirements?

            Assuming that the estimated  closure dates  fall before July 6,
            2002 for the units, the pay-in period for the facility would
            equal the pay-in period for  the  unit closing last.  Specifically,
            Section 265.143(a)(3) states that the owner/operator must make
            payments into the trust fund "over the remaining operating life
            of the facility as estimated in  the closure  plan...."  For
            example, if unit A closes in six  years, unit 3 in eight years,
            and unit C  in ten years, the pay-in period would be ten years.
            Closure of  the first two impoundments would constitute partial
            closure, as defined in §260.10,  so that the  facility 'would
            continue'operating until the last unit closed.  A definition
            of "final closure" was added to  §260.10 by the May 2, 1936
            regulations.

            The new closure/financial assurance regulations published in
            the May 2,  1986 Federal Register  (51 FR 16422) do not directly
            affect the current pay-in period  system.  EPA requested Garments
            on the system in the preamble to  the proposed closure/financial
            assurance regulations published-in the March 19, J985 Federal
            Register (see 50 FR 11068).  Some comments suggested that the
            pay-in period should be as long  as the shortest operating life
            of a unit at a multiple process  facility.  EPA believes that
            the accelerated pay-in period may be cost-prohibitive for
            smaller facilities and discourage owners/operators from conducting
            partial closures (51 FR 16438).   Presently, EPA will maintain
            the existing pay-in period regulations and evaluate the situation
-------
T,r»t"?  mil  specify the  ground-water
protection  standard  in  tht  faculty
permit, including:
    The  compliance   point  under
I 264.95: and
  (4)  The  compliance  period under
I 264.96.
  (b) The ownet or operator must im-
plement  a  corrective  action  program
that  prevent*  hazardous constituent*
from  exceeding  their respective  con-
centration  limit*  at  the compliance
point  by  removing  the  hazardous
waste  constituent! or treating  them in
place.  The permit vtl! specify the spe-
cific measures that will be taken.
    The  owner  or operator must
begin  corrective action  within a rea-
sonable time period after the  ground-
water  protection standard is exceeded.
The Regional Administrator will speci-
fy  that   tune  penod  in the  facility
permit. II a facility permit includes a
corrective action program in addition
to a compliance monitoring program.
the permit  will specify when the cor-
rective action will begin and such a re-
quirement  will  operate  in   lieu  of
1264.9*1X2).
  (d> In conjunction with a corrective
action program, the owner or operator
must  establish   and  Implement   a
ground-water monitoring program  to
demonstrate the  effectiveness  of  tht
corrective  action  program.  Such  a
monitoring  program may be based on
the  requirements for a compliance
monitoring   program  under  1264.96
and must be as effective as that pro*
gram in  determining compliance with
the ground-water protection standard
under i 264.92 and in determining  the
success of a corrective action program
under paragraph   of  this  section,
where appropriate.
  (e> In addition to the other  require*
menu of  this section, the owner or op-
erator  must  conduct   a  corrective
action program to remove  or  treat in
place  any  hazardous  constituent*
under I 264.93 that exceed concentra-
tion limit*  under 1264.64 in ground
water between the compliance point
under }  264.95 and the downgradlem
facility   property   boundary.   The
permit will  specify the measure* to be
taken.
  (1) Corrective action measures under
this paragraph must be  initiated and
completed within a reasonable period
of time considering the extent of con-
tamination.
  <2) Corrective action measures under
this caracraph  may be  terminated
once the  concentration * of hazardous
constltuenu under | 264.93 i* reduced
to levels below their respective concen-
tration limits under | 264.94.
  i n The  owner or operator must con-
tinue   corrective  action   measures
during  the compliance period to the
extern  necessary  to  ensure that the
ground-water  protection  standard  is
not exceeded. If the owner or operator
is conducting corrective action at the
end of the compliance penod. he must
continue that corrective action for  as
long as necessary  to  achieve compli-
ance with the ground-water protection
standard.  The owner or operator  may
terminate  corrective  action  measures
taken beyond the penod equal to the
active  life of  the  waste management
area (including the closure period) If
he  can demonstrate, based  on data
from   the ground-water  monitonnt
program under paragraph   If the owner or operator deter-
mines  that the corrective action pro-
gram no  longer satisfies the require-
menu of this section, he must, within
90  days, submit an application  for a
permit  modification to make any ap-
propriate  chan
2. 1916]
12*4.11*
  Except as I 2M.1 provides otherwise:
  (a) Sections 2M.in-2M.ii5 (which
concern closure) apply to the owners
and operators of all hazardous waste
management facilities: and
  (b) Sections 284.116-2M.120 (whieh
concern post-closure care) apply to the
owner* and operators of;
  (1) All hasardous waste disposal
facilities: and
  (2) Waste piles and surface
impoundments  from which the owner 9?
operator inteads to remove the wastes
at closure to the extent that these
sections are made applicable to su
(sdlitiet) io || 284.221 or 2M.25&

I mm
  The owner or operator must close '.fit
facility in a manner that
  (a) Minimizes the need for further
maintenance: and
  (b) Controls, minimizes or eliminates.
to the extent necessary to protect humar
health and the environment post-
ciosure escape of hazardous waste.
hazardous constituents,  leachate
contaminated run-off, or hazardous
waste decomposition products to the
ground or surface waters or to the
atmosphere: and
  (c) Complies with the closure
requirements of this Subpart including,
but not limited to. the requirement* of
II 284.171, 284.197. 284.221. 284.251.
2M.260.284.310 and 2M.3S1.
1264.111
tdmentet
  (s) Written plan. (1) The owner or
 operator of a hazardous waste
                                                                                      [lee. 264.112(8X1)]
-------
 PSPMIT-EO
management facility must have •
wnt'en closure plwi. In addition, certain
surface impoundment! and w-ute piles
from which the owntr or operator
intend* to remove or decontaminate the
hazardous waste at par'tal or Trial
closure are required by
5}2W228(c)(l!(:)and2S4233;:!;i)(i)to
have contingent  closure plans. The  plan
must be submitted with  'he permit
a;,p!icat'on. m accordance with
« 2"0.14(r>)(13) of ths Chapter, and
approved t> thf R'.^icna! Administrator
a« part oi 'be perr.it issuance
procedures under Patt 124 of this
Chapter  In accordance with  i 2*0.32 of
this Chapter, the appruved closure plan
will become a  condition of any RCRA
permit.
  (2) The Regional Administrator's
approval of the pi.in mu*t ensure that
tne approved closure plan is cons1*'-"it
with j| 264.111-294.113 and the
applicable requirements of i i 264.90 it
stq.. 2*4.17* 204.197. 264.224. 244.234.
264.240. 264.3ia and 264.391. Ur.Ul And
closure is completed and certified in
accordance with | 264.113. a copy of the
approved plan and ail approved
rev is;ons must be fun-ashed to the
Regional Administrator upon rtqueitt.
including request by mail.
  (b) Content of plan. The plan must
uk-ntify steps necessary to perform
partial and/or final closure of the
facility at any point during its active life.
The closure plan must include, at least:
  (1) A description of how each
hazardous waste management unit  at
the facility will be closed in accordance
with | 264.111:
  (2) A description of how final closure
of the facility will be conducted in
accordance with I 264.111. The
description must identify the maximum
extent of the operations which will  be
unclosed dunng the active life of the
facility: and
  (3) An estimate of the maximum
inventory of hazardous wastes ever OB*
site over the active life of the facility
and a detailed description of the
method* to be uaed during partial
closures and ftnaj closure, including, but
not limited to. methods for removing.
transporting, treating, storing, or
disposing of all hazardous wastes, and
identification of the typefa) of the off-
site hazardous waste management  units
to be used, if applicable: and
               (4) A detailed descnpnon of the steps
             needed to remove or decontaminate ail
             hazardous waste residues and
             contaminated: containment system
             components, equipment, structures and
             soils dunng partial and final cioaun.
             including, but not limited to. procedures
             for cleaning equipment and removing
             contaminated soils, methods for
             sampling and testing surrounding soils.
             and criteria for determining  the evtent ef
             decontamination required to satisfy the
             closure performance standaid: and

               (?) A detailed descnption  of other
             activities necessary dunng the closure
             penod to ensure that all partial closure*
             and final closure satisfy the closure
             performance standards, including, but
             not linked to. ground-water monitoring.
             l»achate collection, and run-on and run-
             off tgn?r->l- jrd
               (6) A schedule for closure of each
             hazardous waste management unit and
             for final closure of the facility. The
             schedule muat include, at a minimum.
             the total time required to cloee each
             hazardous waste management unit and
             the r.me required for intervening closure
             activities which will allow tracking of
             the prof?*** of partial and final closure
             (For example, in the case of a  landfill
             unit,  estimates of the time required to
             treat or dispose of all hazardous waste
             inventory and of the time required tn
             place a final cover muat be included.)
               (7) For facilities that use trust funds to
             establish financial  assurance under
             H 264.143 or 264.143 and that  are
             expected to cloee pnor to the expiration
             of the permit  aa eetimate of the
             expected year of final closure.
               (c) Amindmtnt of plan. The owner or
             operator muat submit a written request
             for a  permit modification to authorize a
             change m operating plans, facility
             design, or the approved closure plan in
             accordance with the procedures IB Parts
             124 and 270. The written request must
             include a copy of the amended closure
             plan  for approval by the Regional
             Administrator.
               (1) The owner or operator may submit
             a written request to the Regional
             Administrator for a permit modification
             to amend the closure plan at any time
             pnor to the notification of partial or final
             closure of the facility.
               (2) The owner or operator muat submit
             a written request for a permit
 modification to autisrze a :
 the approved closure pian vn
   (i) Changes in operating ?.
 facility design affect the c:os'
   fii) There is a change m the
 y*»r of closure, if applicable
   (in) In conducting part:a: o
 closure activities, unexpettec
 require a modification of the
 closure plan.

  (3) The owner or operator n
a written request for a permit
modification including a copy
amended closure pian  for app
least 80 day* pnor to the pro;
change m facility design or c;
no later than M days after an
unexpected event *as occur1
has affected the closure pian.
unexpected event occurs dur
partial or final closure period
or ooerator mus' request a pe
modification no later than 30
the unexpected event An ow
operator of a surface impouni
waste pile that intends to rcrr
hazardous waste at closure a
otherwise required to prepart
contingent closure plan und*
 H 264.224(c)(l)(i) or 2*4.2561;
must submit an amended do:
 the Regional Administrator n
60 days from the  date that thi
operator or Regional Admim:
determines that the hazardc'.
management unit must be ::c
landfill, subject to the requiri
i 244.310. or no later than 30
that data if the determmatior
dunng partial or final closure
Regional Administrator wiii ,
disapprove, or modify this an
plan in accordance with the ;
in Parts 124 and 2TO. In accor
i 270.32 of this Chapter, the i
closure plan will become a ct
any RCRA permit issued.
  (4) The Regional Adnunisti
request modifications to the '
the conditions described m
 I 264.112(c)(2). The owner or
muat submit the modified pla
days of the Regional Admin:
request or within 30 days if'
in facility conditions occurs i
partial or final closure. Any
modifications requested by t
Administrator will be apprc\
 accordance with the proceat.
 124 and 2m
                                                                                          [See. 264.113(6X4
 s-
FuOti«n«C Ov ?Hf BUACAU OF NATIONAl AFFAIRS. INC WMMngton 0 C 2003?
-------
 '61 2020
  (d) Notification of partial elosurt and
final dosur*.
  (l) Tht owotr or operator suit notify
the Regional Administrator m wntini it
least flo days pnof t@ the date on which
ht expects te begin dosurt of a surface
impoundment waite pile, land
treatment or landfill unit or final  dosure
of a facility with such a unit. The  owner
or operator mu«t notify the Regional
Administrator in wntinf at leaat 4* days
prior to the date on which he expects to
begin final cloiure of a facility with only
treatment or storage tanks, container
storage, or incinerator units to b« dosed.
  (2) The date when he "expects to
befin closure" must be either no later
than 30 days after the date on which  any
hazardous waste managemem unit
receives the known final volume of
hazardous wastes or. if there is a
reasonable possibility that the
hazardous waste management unit will
receive additional hazardous wastes, no
later than one year after the date on
which  the unit received the most recent
volume of hazardous waste. If the owner
or operator of a hazardous waste
management unit eats demonstrate to the
Regional Administrator that the
hazardous waste management unit or
facility MS 'fie capacity te receive
additional hazardous wastes and he baa
taken, and will continue to take, ail
steps to prevent threats to human health
and the environment including
compliance with all applicable permit
requirements, the  Regional
Administrator may approve aa
extension to this one-year limit
  (3) ff the facility's permit is
terminated, or if the facility is otherwise
ordered, by judicial decree or final order
under Section 3000 of RCRA to cease
receiving hazardous wastes or to doe*.
then the requirements of this paragraph
do not  apply. However,  the owner or
operator muai doee the  facility IB
accordance with the deadlines
established in i 264.113.

  (e) Rtmovai of waste* and
decontamination or ditmojitlin$ of
tquipaiint. Nothing is this Section shall
preclude the owner or operator troai
removing hazardous waste* and
decontaminating or dismantling
equipment in accordance with the
approved partial or final doeure plan at
any time before or after notification of
partial or final doeure.
IM4113 ueeur* ame allowed for
  (a) Within 90 days after receiving the
final volume of hazardous wastes at a
hazardous waste management unit or
facility, the owner or operator must
treat remove from the unit or facility, or
dispose of on-site. all hazardous wastes
in accordance with the approved closure
plan. The Regional Administrator may
approve a longer period if the owner or
operator complies with all applicable
requirements for requesting a
modification to the permit and
demonstrates that
  ft )(i) The activities required to comply
with this paragraph will, of necessity.
take longer than 90 days to complete: or
  (ii)(A) The hazardous waste
management unit or facility has the
capacity to receive additional hazardous
wastes: and
  (B) There is a reasonable likelihood
that he or another person will
recommence operation of the hazardous
waste management unit or the facility
within one year and
  (C) Closure of the Hazardous waste
management unit or facility would b«
incompatible with continued operation
of the sitr. and
  (2) He has taken and will continue te
take all steps to prevent threats te
human health and the environ/neat
including compliance with ail applicable
permit requirements.
  (b) The owner or operator must
complete partial and final closure
activities in accordance with the
•pproved dosure plan and within IV
days after receiving the final volume of
hazardous wastes at the hazardous
waste management unit or facility. The
Regional Administrator may approve an
extension to the dosure period if the
owner or operator complies with all
applicable requirements for requettint a
modification to the permit and
demonstrate* that

  (l)(l) The partial or final doeure
activities will of necessity, take longer
than let) days to complete: or
  (UKA) The hazardous waste
management unit or facility has the
capacity to receive additional hazardous
wast**: and
  (B) Thar* is reasonable likelihood that
ha or another parson will recommence
operation of the hazardous waste
management unit atlh* facility withia
one year snd
  (C) Goaurt of the hazardous
management unit or facility wouic be
incompatible with continued opere::o^
of the site: and
  (2) He has taken and will continue to
take ali ittpg so prevent threats to
human health and the environment from
the  unclosed but not operating
hazardoue waste management unit or
facility, mduding compliance with  b*
owner or operator and by an
irdependent registered profession*!
engineer. Documentation supporting the
independent registered professional
engineer's certification must be
furnished to the Retional Administrator
upontoquest until he releases the
or operator from the financial *ssura
JW^tt

"•
                                                                                          [See. 2*4,111]
-------
             fur cionro i:-Jer
12«4.1H  Sunreypett
  \.i Ij'-r rh«n the JulwnisM'in of :'•••
i . rtifi- ..fion of closure .>( »'i /mi- j 4u" *••• Ree/ona! AJ-mr...ii:;:or. a
«..-\,.-v pin: ,,-.:! cj'in^ rhe location and
u:Ti«>iMiin<  >f landfill' c«»l!i .»•. on to rcstrct di>:ur'>ani c of the
Ki/jrJou* wH«te di»pii<>r<«nl« ^
('. rejiul.ii.oni.

; 2*4117
  (til t) I'j3t-< K>»ur« cjrt for
h.4/,irdoui W4«t< m.tn.iiii'mftiit unit
»il»icct to ?h* r«quin>m«nti of
\\ 2»4.Tl7-»4.t20 must h*fin ifttr
m>mpletiun of ciutun of the unit <*nd
continue for 30 yttn «fter that dnti of
Suho-rt!. F.  K. L M. and N of thia Part.
  \i\ Any time preceding fwnui cloaure
uf 4 hax^rdoua waste m^n^gement unit
5i>ii|ert to post-rlgsun care
requirement! or final closure, or *ny
time during  the post-closure p«nod for a
punicular unit the Regional
AJmntstrator may. in accordance with
ihe permit modification procedures in
Parts 124 and 270:
  (i) Shorten the poet-cloeure care
uwrtitd applicable to the hazardous
w«ite nianaferaent unit or fanliry. if alt
Jii«pojal units have been closed, if he
firvJs that the reduced penod is
sufficient to protect human health and
the environment (e.g.. leachate or
ground-water monitoring results.
             • hdM'-'-.-nsrica of the hdzardous
             ippliv.dtiun of jdvjn<.<-d ti"..hnolog\.  or
             altc.-native ditp«i$«l. twit^ent. or"re-use
                           u^'.e tr.ai rh« hazardojs
                            .>r! am; or i^'ili1.;. ts
             >ti.urel. or
               in i txtind the post-ensure c-.-e
             ph.ind ^ppliCHol* to the hi^jrdous
             waste m«inaCement un:t or facility if he
             finds that the extended p«r*od is
             n«(.-c,!»4ry to protect hum^n health «ls which ma.
             I.e harmful to h'im.in hr^ith «nj the
             i-nvironment).
               l>)| Th* Rt^rionnl Admmis'.'xU' m.iy
             •u<4uir«. xt partial ana fm4> cluture.
             continuation of *nv of the security
             requirements of f 2*4.14 Jumg par; ur
             ill of the  post-closure period when:
               ill Hazardous wastes mity remain
             exposed after completion 01 partial ur
             fin.il closure: or
               Ul Access by the public or dc>m«jtic
             livestock  may DUM a h«z.ird to humxr.
             health.
               (ci Post-closure use of prup«rt> on or
             m which hazardous wastes remain alter
             particl or final  closure must never be
             allowed to diaturb the integniy of the
             final cover, linerfs). or any other
             components of the containment s>item.  '
             or the function of the facility's
             monitoring systems, unless the Rcgr mal
             Aummistraror finds that the
             disturbance:
               (l| Is necessary to the proposed u*e of
             the property, and will not increase the
             potential  hazard to human health or the
             environment or
               (2) Is necessary 10 reduce » threat to
             human health or the environment.
               (d) All  post-closure care activities
             must be in accordance with the
             provisions of the approved post-closuie
             plan M specified in I 264.118.
             IMa.li*  »«« assure sasm amenanxnt
                                                                                surf ; ?«•
tK* Ch-ip'er  In acc'irdiurs »nf
< 2?0 ;2 jf this Chapter  me d;*i
post-cij$;-r» pUn will became A
tonuition of any RCRA p;rr.   s
  I b| For each hazardous *e,:e
rnananem*r.t unit lusi^o tc L^e
r*quirjmcn'» of this Section. ..".e
closure pUn must identify the ar;
that  wil; j« Darned on au.'r c:o»u
i»«cn dis^oaai unit  ami the freq.e
these -tctivii:e-«. and include a; .e
  (1) A deiuiptinn of the pitnnei
monitoring activities and frequer.
whirr "they will be performed iu i
with Subparts F. K. L M. and N .
Pan  during the pOk'.-cicsure c?,rc
and
  (2) A description ot ;r.e pi^nnr
mamtenanci* activities, and '•cc.
at which they will  b. ptr^rmeu
ensure:

  HI The tntegmy  ul tne cap *nu
cover or other containment jvs;-
accordance with the requirem<*.'.
Subparts K. L M. and N of this P
  fii) The function of th» mnnito:
equipment in accordance wi'.r-, >.r
requirements uf Subparts F. i.  L
N of this Pert and
  (3) The name, address, antf pn
number of the person or office •-:
about the hazardous waste d;jpi
or ur;lity during the post-ciostr
penod.
-  (c) Until final closure of the  fa
copy of the spproved pos'-cin
-------
    2C22
the > amend the pntt-clo«urp p!xn «t any
1 f « diicng the active; Itf* «f th* Nt -fity
o.* during th* po*t-c!osur» r./r*  prrod.
  !C| The owner or operator rt:M
* wrtten *equest for e permit
modification to authorize H ch*nv»e T>
the approved post-closure plfn
  (ii Chantet m operating plans or
'«r:l:ty design affect the approved post-
dosur* plan, or
  'c| There is a change ;n the exp«ct'd
>(r»r of final closure, if applicable, or
  lhi\ Events which occur dunng the
acme life of the facility, including
partial and final closum. affect tne
at proved post-vbsur* plan.
  (3) The owner or operator rrust submit
a wntren request for a permit
modification at least 00 days pr.or to ih«
proposed change ia facility design or   •
operation, or no latar than 00 days after
an unexpected event has occurred
which ha* affected the post-closure
p!«t An owner or operator of a surface
in>.3«undm*nt or waste pile that ir'-ntl.i
to remove all hazardous waste  at
closure and  is not otherwise  required to
suUiut t contingent post •closure ptan
under || 2C4.22a(c)(l)fii) and
2b4 238(cin;(ii) must submit a pos«-
clfsure plan to the Regional
Adm:.nsuator no later than 90  days
after the dale that the owner or operator
or Regional Administrator determine*
that the hazardous waste management
ur.-.t must be closed as a landfill subject
to the requirements of I 284410. The
Rfc* usnal Administrator will approve.
disapprove :r modify this plan in
accordance with the procedure* in Peru
124 and £ra In accordance with 1 270.32
of this Chapter, the approved poet-
closure plea will become a permit
condition.
  (4) The Regional Administrator may
request modifications to the plan under
iff csrditionj described .n
I :&4 !tfl(d)(2|. The owner or operator
must submit the modified plan no later
than 60 days a for the Reg'orui!
Administrator's request, or no later 'r.ar.
9u jays if the unit is, a surface
impoundment or waste  pu* act
previously required to preeart 4
contingent post-closure plan. Anv
modifications requested by the Regional
Admimstratof wilt be approved,
disapproved, ar modified iti accordance
with the procedure* in Pans t24 .and 2?o.

}N«.iif  yean ctteure aeacea.
  (a) Ne later than 00 days after
certification of closure of each
hazardous waste disposal unit, the
owner or opera (or must submit to the
local zoning amh&nty. or she «uthor»y
with jurisdiction o%er local U^'i use.
^nd to the Refonal Adm-nmpawr «
.•••cord of the type, location, and quantity
of h iz^rdoua wastes disposed of within
each evil or other dupesal unit of the
faculty, for ha&trdovs wastes disposed
of before- (anukfy 12,  1981. the owner or
operator must identify  p«. lecatioa
and quantity oi the hazardous wastes  to
the best of his knowledge and m
accordance with any records he has
  (h| Within 00 days of certification of
closure of the first hazardous waste
disposal unit and within 00 days of
certification of doeure of the last
hazardous waste disposal unit, the
owner or operator tcuat:
  (1) Record, ia accordance with State
law. • notation on the deed  to the
facility property— or on some other
instrument which ie normally examined
during title search— that will in
perpetuity notify any potential
purchaser of the property that
  (i) The land has bees used to manage
hsza'doua wastes; and
  (u) Its use i» restricted under 40 CFR
Sitfapart C regulation* end
  (iii) The survey plat and record of the
type, location, and quantity of
hazardous wastes disposed of within
each cell or other hazardous waste
dtspoeeJ unit of the facility required by
I 284.116 and I 2S4419(a) have been
filed with the local wrong authority or
the authority with jurisdiction over local
lend use end with the Rational
Administrator and
  (2) Submit a certification, signed by
the owner or operator, that  he has
recorded the notation specified in
p«r*irapn (b|(i) of this Secto
including a copy of the d3cu.-
»h;cn rhe notation nas been 3i
th- Regional Ad.-nimstraior
  (cj If the owner or operator or ar.-,
J'ubseqjent owntrr or operator of tne
land upon which a hazardous wa«e
d'spcssl unit is located wishes "i
rtmo\t hazardous wastes and
hazardous waste residues,  th? '••"*<'
a«y. or contaminated soils, he must
r*e,u«t 3 modification to the post-
c'Mtre perui-t  m »cccrd»nce v^.th th
applicable requirements m  P&rs 114
270. The owner or operator must
dumonstrste that the removal of
hazardous wastes will satisfy the
criteria of | 284.11'fc). By removing
hazardous waste,  the owne; sr opera
may become t  generator of hg^ardou
waste and must manage if m acesrs^
with all applicable requirements cf :r
Chapter. If he is granted a permit
modification or otherwue granted
approval to conduct such removal
activities, the owner or oeefator mav
request that thi> Regional Admirus;; v
..pprove either
  (I) The removal of the natstion OP '
deed to the facility property or other
instrument normally examined d-.r-.n«
title search: or
  (2) The sdOition of a notation te  ih«
deed or instrument indicating t
removal of th* hazardous wastel
{384.110  eertMcMon
           ear*.
  N'o later than 60 days after
of the rstablished-post-closure c«r^
period for each hazardous * are
disposal unit, the owner or opera" '
must submit to th« Regional
Administrate* by registered r,,;!  •.
certification that th: post-dos,.rv c. •-
penod for the hszardous waste 
-------
PERMITTED FACILITIES STANDARDS
                                                                       s
                                                                   161;
 Subpart H—Financial Requirement*

 [Interim final]
 (Subpart H added by 46 PR 2847,
 January 12, 1981]

 {M4.140  AwiXaMMy.

 [264.140 amended by 47 FR 15047, April
 7. 1982]
   (•) The requirement* of H 204.142,
 204.143. and 204.147-151 apply to owner*
 and operator* of all hazardous watt*
 facilities, except as provided otherwise
 in this lection or in I 204.1.
   (b) The requirements of H 204.144
 and 204.143 apply only to owners and
 operators of:
 (1) Disposal facilities, and
 (2) Piles, and surface impoundments
 from which the owner or operator
 intends to remove the wastes at closure.
 to the extent that thes* sections are
 made applicable to such facilities in
 | §204.228  and 204.258.
 [264.140(6) revised by 47 FR 32349, July
 26. 1982. effective January ::•. 1983]

  (c) States and the Federal government
are exempt from the requirements of this
subpart

 12M.141  OeflnMona of term* aa oee* In
 Meautopart
 [264.141  revised by 47 FR 15047. April 7..
 1982: amended by 47 FR 16554, April 16,
 1982; 51  FR 16443. May 2. 1986]
   (a) "Closure plan" means the plan for
 closure prepared in accordance with the
 requirements of { 264.112.
   (b) "Current closure cost estimate"
 means the most recent of the estimates
 prepared in accordance with 4 i 204.142
 (a), (b). and (c).
  (c) "Current post-closure cost
 estimate" means the most recent of the
 estimates prepared in accordance with
 if 204.144 (a), (b). and (c).
  (d) "Parent corporation" means a
 corporation which directly owns at least
 50 percent of the voting stock of the
 corporation which is the facility owner
 or operator: the latter corporation is
deemed a "subsidiary'* of the parent
corporation.
  (e) "Post-closure plan" means the plan
for post-closure care prepared in
accordance with  the requirements of
 ii 204.117-204.120.
   (f) The following terms an used in the
 specifications for the financial tests for
 closure, post-closure cars, and liability
 coverage. The definitions are intended
 to assist in the understanding of these
 regulations and are not intended to limit
 the meanings of terms in a way that
 conflicts with generally accepted
 accounting practices.
   "Assets" means all existing and all
 probable future economic benefits
 obtained or controlled by a particular
 entity.
   "Current assets" means cash or other
 assets or resources commonly identified
 as those which are reasonably expected
 to be realized In cash or sold or
 consumed during  the normal operating
 cycle of the business.
   "Current liabilities" means obligations
 whose liquidation is reasonably
 expected to require the use of existing
 resources properly classifiable as
 current assets or the creation of other
 current liabilities.
   "Current plugging and abandonment
 cost Mtimite" means the most recent of
 the estimates prepared in accordance
 with } 144.62(a). (b). and (c) of this  title.

 [Added by 51 FR  16443. May  2, 1986]

   "Independently audited" refers to an
 audit performed by an independent
 certified public accountant in
 accordance with generally accepted
 auditing standards.
   "Liabilities" means probable future
 sacrifices  of economic benefits arising
 from present obligations to transfer
 assets or provide  services to other
entities in  the future as a result of past
transactions or events.
  "Net working capital" means current
 assets minus current liabilities.
  "Net worth" means total assets minus
 total liabilities and is equivalent to
 owner's equity.
  'Tangible net worth" means the
tangible assets that remain after
deducting  liabilities: such assets would
 not include intangibles such as goodwill
 and rights to patents or royalties.
   (g) In the liability insurance
 requirements the terms "bodily injury"
 and "property damage" shall have me
 meanings given these terms by
 applicable State law. However, the.se
 terms do not include those liabilities
 which, consistent with standard
 industry practices, are excluded from
 coverage in liability policies for bo<
 injury and property damage. The
 Agency intends the meanings of otr
 terms used in the liability insuranci
 requirements to be consistent with
 common meanings within the insuri
 industry. The definitions given beio
 several of the terms are intended fa
 assist in the understanding of these
 regulations and are not intended to
 their meanings  in a way that conflic
 with general insurance industry usa
  "Accidental occurrence" means a
 accident including continuous or
 repeated exposure to conditions, wl
 results in bodily injury or property
 damage neither expected  nor intenc
 from the standpoint of the insured.
  "Legal defense costs" means any
 expenses that an insurer incurs in
 defending against claims of third pa
 brought under the terms and candit;
 of an insurance policy.
  "Nonsudden accidental occurrenc
 means an occurrence which takes  p
 over time and involves continuous c
 repeated exposure.
  "Sudden accidental occurrence"
 means an occurrence which is not
 continuous or repeated in nature.
I M4.142  Coat estimate for closure.
  (a) The owner or operator must ha
detailed written estimate, in current
dollars, of the cost of closing the fac
in accordance with the requirement:
}S 204.111-204.115 and applicable
closure requirements in § § 264 178.
204.197. 204.228. 264.258. 264.280. 264
and 204.351.
  (1) The estimate must equal the cc
final closure at the point in the facih
active life when the extent and man,
of its operation would make closure
most expensive, as indicated by  its
closure plan (see § 264.1l2(b)); and
  (2} The closure cost estimate musi
based on the costs to the owner or
operator of hiring a third party to clc
tiie facility. A thjrd party is a party <
is neither a parent nor a subsidiary '
the owner or operator. (See dcfinitic
parent corporation in $ 204.141 fd).)"
owner ur operator may use costs for
site disposal if he can demonstrate :
on-site disposal capacity will exist i
times over the life of the facility.
  (3) The closure cost estimate may
inu>rpora'.e any salvage value that r
                                                                                t
                                                                                       [Sec. 264.142
-------
181:202*
                                                   FEDERAL REGULATIONS
 Lc ft jfized with the sale of hazardous
 wdjU'4. facility structures or equipment,
 land, or other assets associated with the
 Luliry at the nme of partial or final
 closure.
   (4) The owncs or operator may not
 incorporate a zero cost for'hazardous
 wastes Uut might have economic value.

 [264.142  (a) and  (b) introductory text
 revised by 51  FR 16443.  May 2. 1986]

  la) Ounnf the active life of the
 f'ir.lity. the owner or operator must
 udj-.iii the closure co*t estimate for
 i.'Hoiion within 60 days priof to ths
 anniversary date of the establishment of
 tK» financ'ai instrumental used ?o
 comoiy with f 204.141. For owners «*id
 < -eratois using she financ'Hl test or
 corporate «uan'nr»« thp closure cert
 rj-!-i«V!'e tfusf be updated for itifatiosi
 wt:'->:r> W days after the close of the
 hrm's fiscal year *nd before S!!h[.-.i««mn
of 'jprLted  information >•> (be R"0''.onal
 A.'!m;.i:dtrtitor as specific: in
1 :.\A 143.;f)(J|. Th* ddj;:»;~er»t raay be
 mjHe by rscnleyldtir.g 'K» av;r .-TJ
o-sti ofdoture in r-rrert dull.-? cr ny
 u-"'g an inflation fee'a- denvad fvsni
 i.;>- mo*: r-cent inif'i!C'' Price Dml-v-...>d b>;
»h* U.S. Department of Commsr.-e in its
5<./v^> of Current B>;$it>e*!i. as wcc.i'ied
 in p..r;igr3phs fb)(l) and  -;!>)(2i o.'this
 sf wiiwii. Ths inf! jtion fd< to? is the result
cf d'vidine  the latest published annual
 Df.fl.ifor by the  Deflator for the previ.vjs
year-
  (i)  The first adjustment is made by
multiplying the closure cost estimate by
 the inflation factor. The result is the
adjusted closure cost estimate.
  (ii) Subsequent adjustments are made
 by mutliplying the lastest adjusted
closure cost estimate by  the latest
inflation factor.
  {;.) Dunng the active afe of the facility.
 tf.e owner or operator trust revise the
cl'-suie cost estimate no  later than 30
da> j after the Regional Administrator
lies 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 must be
 adjusted for inflation as specified in
 § 264.U2(li).

(264.142(c) amended by 51  FR 16443.
May  2. 1986]
   (d) The owner or operator must keep
 the following at the facility during the
 operating life of the facility: The latest
 closure cost estimate prepared us
 accordance with || 284.142 (a) and (cj
 and when this estimate hae been
 adjusted in accordance with
 I 264.142(b). the latest adjusted closure
 cost estimate.
  (Approved by the Office of Manage-
 ment and Budget under control number
 2050-0036!
 [264.142 amended by SO FR 4513. January
 31. 1985]
12*4.143  Fin
[264.143 revised by 47 FR IS047. April 7.
1982]

  An owner or operator of each facility
must establish financial assurance for
closure of the facility. He must caoes*
from the options as specified in
paragraphs (a) through (f) of this section.
  (a) CJoaun trust fund (1) An owner or
operator may satisfy the requirements of
this section by establishing a closure
trust fund which conforms to the
requirements of this paragraph and
submitting an originally signed duplicate
of the trust agreement to the Regional
Administrator. An owner or operator of
• new facility must submit the orifinaJly
signed duplicate of toe trust agreement
to the Regional Administrator al least to
days before the date on which
hazardous waste is first received for
treatment storage, or disposal. The
trustee must be art entity which hac the
authority to act as a trustee and whose
trust operations  are regulated and
examined by a Federal or State agency.
  (2) The wording of the trust agreement
must be identical to the wording
specified in | 284.1Sl(a)(l). and the trust
agreement must  be accompanied by a
formal certification of acknowledgment
(for  example, see | 264.15l(a)(2)).
Schedule A of the trust agreement must
be updated within 80 days after a
chant* in the amount of the current
closure coat estimate covered by the
agreement
  (3) Payments into the trust fund must
be made annually by the owner or
operator over the term of the initial
RCRA permit or over the remaining
operating life of the facility aa  estimated
in the closure plan, whichever period is
shorten this period is hereafter referred
to as the "pay-in period." The paymen^
into the closure trust fund must be made
as follows:
  (i) For • new facility, the first payment
must be made before the initial receipt
of hazardous waste for treatment.
storage, or disposal. A receipt from the
trustee for this payment must be
ji-triti? .1 oy 'h*  wr.:" or r,;;c.Bator to
..'•" Ht-.-'.T-'! Adrr'ni-.-'.ii T l-sfori! this
in 'sJ r-cr.pt of hs;:«-.;ci'i wast*. This
t'-rst j»fyff^nt .ruv be a» l*>.--*t p.^ci' to
Mm current rlosuf co«t es:ir:ate. except
•?s ,-roi;J«d in § ?C!4.1*:{«]. divided by
tr.f IU.T.:*.- of yettrs in  i!-.« pay-in period,
.couso:<>;:! psyr&Knts must b* raade es
I'i'.dr t.lan 30 days after each
anniversary date of the first payment.
The amount of ettch subsequent
payment must be determined by this
fornula:

                      ce cv
where. CE ia the current closure cost
estimate. CV is the current value of the
trust fund, and Y is the number of years
remaining in the pay-in period.
  (ii) If an owner or operator establishes
a trust fund as specified in i 285.143(a)j
of this chapter, and the value of that
trust fund is less than the current
closure cost estimate when a permit is
awarded for the facility, the amount of
the current closure cost estimate still to
be paid into the trust fund must be paid
in over the pay-in period as defined in
paragraph (a)(3) of this section.
Payments must continue to be made no
later than 30 days after each
anniversary date of the first payment
made pursuant to Part 20S of this
chapter. The amount of each payment
must be determined by this formula:
                      ci-cv
 where CE is the current closure cost
 estimate. CV is the current value of the
 trust fund, and Y ia the number of yean
 remaining in the pay-in penod.
   (4) The owner or operator may
 accelerate payments into the trust fund
 or he may deposit the full  amount of the
 current closure cost estimate at the tune
 the fund ia established. However, ne
 must maintain the value of the fund at
 no less than the value that the fund
 would have if annual payments were
         f
                                                                                        [Sec 2<4.143(eM4)]
                                                 Environment Aeooner
-------
 PERMITTED FACILITIES STANDARDS
                                                                           S-7
                                                                       161:20;
made as specified in pacagraph (a)(3) of
this section.
   (3) If the o.wner or operator
establishes a closure trust fund after
having used one or more alternate
mecha&siri tpeciftai in this section or
in { 285.143 of this chapts,. his first
payment mus: be in at le-.t the ..mount
that th« fund would contain if the trust
fund were established initially and
annual payments made according to
specifications of this paragraph and
f 2*5.143(a) of this chapter, aa
applicable.
   ',!•.} Afici ?*<« r---'>'-'r p*~ed  •'•
c-:"i- !v'!f-J v,!ic,"»vvr thj •.•:'«••-;' closure
' Lit est:rr.r.;e c. jpg«s. tRe ov^er or
 v.-uh :he irustPt '$ most !•:.--•
 .  !va'  n rfth-6 IT;;.* f. -.J. If'i.ev-'.u*
 of tn*- J'ur.i is U.ts •! .in r.-.c ar.nun; of the
 fif*" *st:rrut* ?! ? c'*'.'.  o" op^'a'or.
 within fiO day» after tr.c cli -.ri^ in lite
 cost estimate. rm»t e:»hn .iepcsit jn
 amount into the fund »o ;i..»t its value
 aftf.r th:» dr.pofr.t a'. l*««t equals the
 amount of the current closure cost
 estJ'niie. or obtain other financial
 assurance as specified in this section to
 cover the difference.
  (7) If the value of the trust fund is
 greater than the total amount of the
 current closure cost estimate, the owner
 or operator may submit a written
 request to the Regjonel Administrator
 for release of the amount in excess of
 the current closure cost estimate.
  (8) If an owner or operator substitutes
 other financial assurance as specified in
 this section for ail or part of the trust
 fund, he nay submit a written request to
 the Regional Administrator for release
 of the amount in excess of the current
 closure coat estimate covered by the
 trust fund.

  (9) Within 60 days after receiving a
request from the owner or operator for
release of funds as  specified in
paragraphs (a) (7) or (8) of this section.
the Regional Administrator will instruct
the trustee to release to the owner or
operator such fund* aa the Regional
Administrator specifies in writing.

  (10) After beginning partial or final
closure, an owner or operator or another
person authorized to conduct partial or
final closure m*y request
reimbursements for partial or final
closure expenditures by submitting
itemized hills to rt • Regional
     Administrator. The owner or operator
     may ;equest reimbursements for partial
     closure only if sufficient-funds are
     remaining in the trust fund to cover ihe
     maximum costs of dosing the facility
     over its remaining operating life. Within
     SO d.i^s dfter receiving bills for partidl or
     firui closure activities, the K  -jtonal
     Administrator will .c;trur.t the trust** to
     make reimbursements in those amounts
     as th« Regional Administrator specifics
     in writing, if the Regional Administrator
     determines that the parti.! or final
     closure expenditures are in accordance
     with the arproved closure plan, or
     otherwise just.fled. If the Regional
     Adrr:in:su-itor his r«json to bel. f(;e
     d.vner or operator is no Icr jvr regrired
     to .-ndin;din financial asauidflce for l:».al
     fl.j»ur« of the facility. If thj Rc^n-i.
     .\.i::unMtra»or does not inj'njvt the
     tn'^.-ce to make  Payments into  the trust fun<
specified in § 264.143,. rS-!
Regional Arir.:n:a;iator r --CT.I" -n 15 days a.''* r .in order to t-cv
final c'osure is issued by a U.S. cl:5:r;<-
cojrt or other court of competpr.t
jurisdiction; or
(264.|43(b)(4)(ii) amended by  51 I
16443. May 2. 1986]

  dii)  Provide  alternate  financial
surance as specified in  this  sect
and  obtain the Regional Admin i!
tor s written approval of the assur:
provided,  within 90 days after rec
by both the owner or operator and
Regional  Administrator  of a  no.tic
cancellation of the  bond   from
surety.
  (5) Under the terms of the oona.
surety will become haol
bond.
  (6) The penal sum of the  bond r
be in an amount  at  least equal to
current closure cost estimate, ex
as provided in  5 264.143
-------
  161:2026
                                                FEDERAL REGULATIONS
greater then the penal sum. the owner
or operator, within 80 days after the
increase, must either cause ibe penal
sum to be increased to an amount at
least equal  to the current closure cost
estimate and submit evidence of such
increase to the Regional Administra-
tor,  or obtain other financial  assur-
ance as specified in this section to
cover the increase. Whenever the cur-
rent closure cost estimate  decreases.
the penal sum may be reduced to the
amount of the current closure cost es-
timate  following  written  approval by
the Regional Administrator.
  (8) Under the terms of the bond, the
surety may cancel the bond by sending
notice of cancellation by certified mail
to the owner or  operator and to the
Regional  Administrator. Cancellation
may not  occur, however, during  the
120 days beginning on the date of re-
ceipt of the notice of cancellation by
both the  owner or operator and  the
Regional  Administrator,  as  evidence
by the return receipts.
  (9)  The  owner or operator  may
cancel the  bond  if the Regional  Ad-
ministrator   has  given  prior  written
consent based  on his receipt  of  evi-
dence of alternate financial assurance
as specified in this section.
   Surety bond guaranteeing per-
/ermance  of closure. (1) An owner or
operator may satisfy the requirements
of this section by obtaining a surety
bond which  conforms to  the  require-
ments  of  this paragraph  and submit-
ting  the bond to the Regional Admin-
istrator. An owner or  operator  of  a
new  facility must  submit  the  bond to
che Regional Administrator at least 60
days before the date on which hazard-
ous  waste  is first received  for treat-
ment,  storage,  or disposal. The bond
must be effective before this initial re-
ceipt of hazardous waste. The surety
company issuing  the  bond must, at  a
mirv.mum. be among those listed as ac-
ceptable sureties  on  Federal bonds in
Circular 570 of the  U.S.  Department
of the  Treasury.
  (2; The wording of the surety bond
must be identical  to the wording speci-
fied  m I 264.131(0.
  (3) The owner or operator who uses
a surety bond  to  satisfy  the  require-
ments of this section must also estab-
lish  a  standby trust fund. Under the
terms  of the bond, all payments made
thereunder  will be deposited  by  the
surety directly into the standby trust
fund in accordance  with instructions
from the Regional Administrator. This
standby trust must meet the require-
ments specified in § 264.143(a). except
that:
    Notices  of nonpayment as re-
 quired &y the crust  agreement.
  (4)  The  bond must  guarantee that
 the owner or operator will:
  m Perform  final closure in accord-
 ance  with  the  closure plan and other
 requirement* of the permit for the fa-
 cility whenever required to do so; or
   Provide alternate financial assur-
 ance  as specified in this  section,  and
 obtain  the Regional  Administrator's
 written approval of the assurance pro-
 tided, withm 90 days after receipt by
 both  the  owner or operator and  the
 Regional Administrator of a notice of
 cancellation  of the  bond  from  the
 surety.
  (5! Under the terms of the bond. >i:a
 surely will become liable on the brnd
 obligation when the owner or operator
 fai'f to perform m guaranteed by the
 bond. Following a final sdminij'rat,\.>
 determination pursuant to section 3006
 of RCRA that the owner or operator ha§
 failed to perform final daawe in
 accordance with the approved closure
 plan and other permit requirement*
 when required to do so. under the terms
 of the bond the surety will perform final
 rlosur* 99 guaranteed bv the bond or
 will deposit the amount of the penal sum
 into the standby trust fund.
 (264.U3(c)(5) amended by 51 FR 16443.
 May 2. 1986]

  (6) The penal sum of the bond must
be in an amount at least equal to  the
current closure cost estimate,
  (7)  Whenever the  current closure
cost  estimate increases to  an amount
greater than the penal sum. the owner
or operator, within 60 days after  the
Increase, must  either cause the penal
sum to be  Increased to an amount at
 least equal to the current closure cost
estimate and submit evidence of such
increase to the Regional  Administra-
 tor,  or obtain  other financial assur-
 ance  as  specified  in  this  section.
 Whenever  the current closure cost es-
 timate decreases, the penal  sum may
 be reduced to the amount of the cur-
 rent  closure cost  estimate  following
 wntten approval by the Regional  Ad-
 ministrator.
  <8) Under the terms of the. bond, the
 surety may canel the bond 'by sending
 notice of cancellation by certified mail
 to the owner  or operator and to the
 Regional  Administrator.  Cancellation
 may  not  occur, however,  during  the
 120 days beginning on the date of re-
 ceipt of the notice of cancellation by

         Environment R«porw
both  ths owner or operator and
Regional  Administrator, as evident
by the return receipts.
  (»)  The owner  or  operator  may
cancel the bond  if the Regional  Ad-
ministrator  has  given  prior  written
consent.  The Regional  Administrator
will  provide  such  written consent
when:
  (1) An owner or operator substitutes
alternate  financial assurance as speci-
fied in this section: or
  (ii) The Regional Administrator re-
leases the owner or operator from the
requirements of this section in accord-
ance with i 264.143(1).
  (10) The surety will not be liable for
deficiencies in the performance of clo-
sure by  the owner or operator after
the Regional  Administrator releases
the owner or operator from the re-
quirements of this section  m accord-
ance with f 264.143d).
  (d)  Closure letter of credit. (1)  An
owner or operator may satisfy the re-
quirements of this  section by obtain-
ing an irrevocable standby letter  of
credit which conforms to  the require-
ments of  this  paragraph  and suomit-
ting the letter to the Regional Admin-
istrator.  An owner or operator of  a
new facility must submit the letter of
credit to  the Regional  Administrator
at least  60  days  before the date orj
which hazardous waste is first received
for treatment, storage,  or  disposal."
The letter of credit must be effective
before this initial receipt of hazardous
waste. The issuing institution must be
an entity which has the authority to
issue letters of credit and whose letter-
of-credit  operations are regulated and
examined  by  a  Federal  or   State
agency.
  (2)  The wording  of  ihe letter  of
credit must be identical to the wording
specified in $ 264.151:
  (B) Updating of Schedule A of tnt
                                                                                  [Sec. 2«4.143
-------
PERMITTED FACILITIES STANDARDS
 trust  agreement  (see  J264.151ta»  to
 show current closure cost estimates:
   iC) Annual valuations as required by
 the trust agreement: and
    Notices of  nonpayment  as  re-
 quired by the trust agreement.
   <4> The letter of credit must be ac-
 companied 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, name, and address of  the  fa-
 cility, and the amount  of funds as-
 sured  for closure of the facility by the
 letter of credit.
  (5) The letter of credit must be irrev-.
 oemble and Issued  for a period of at
 least I year. The letter of credit must
 provide that  the  expiration  date will
 be automatically extended for a period
 of at least  1  year  unless,  at  least  120
 days before  the  current  expiration
 date, the  issuing  institution notifies
 both the owner  or operator and  the
 Regional  Administrator  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 Region Ad-
 ministrator have received the  notice.
 as evidenced by the return receipts.
  (6) The  letter  of  credit  must be
 issued  in an amount at least equal to
 the  current  closure  cost   estimate.
 except as provided in § 264.143(g).
  (7) Whenever  the  current closure
 cost estimate increases to an amount
 greater than the amount of the credit.
 the owner or  operator, within 60 days
 after the increase, must either cause
 the  amount  of the  credit to  be  in-
 creased so that it  at least  equals the
 current  closure   cost  estimate  and
 submit  evidence  of such  increase  to
 the Regional  Administrator, or  obtain
 other financial assurance  as  specified
 in this  section to  cover the  increase.
 Whenever  the current closure cost es-
 timate decreases,  the amount  of the
 credit may be reduced to the amout of
 the current closure cost estimate fol-
 lowing  written approval by  the Re-
 gional Administrator.
   (8) Following a final administrative
 determination  pursuant to section 3008
 of RCRA that the owner or operator has
 failed to perform final closure in
 accordance with the closure plan and
 other permit requirements whan
 required to do  so. the Regional
 Administrator may draw on tne let:er of
 credit.
 [264.143(d)(8) amended by 51 FR 16443.
 May 2. 1986]
  (9) If the owner or operator does not
establish alternate  financial assurance
as specified in this section and  obtain
written approval of such alternate as-
surance from the  Regional  Adminis-
                                    both  the owner or operator and  the
                                    Regional Administrator  of a  notice
                                    from  issuing institution that it has de-
                                    cided not to extend the letter of credit
                                    beyond  rho  current  pxpira'ion  date.
                                    the Regional  Administrator wi!! draw
                                    on the totter of credit The P.'^ional
                                    Administrator may delay thr drawing
                                    if the issuing  institution grants an ex-
                                    tension  of  the  term of  the credit.
                                    During the last  30 days  of any such
                                    extension the Regional Administrator
                                    will draw on the letter of credit if the
                                    owner or operator has failed  to  pro-
                                    vide  alternate financial assurance  as
                                    specified  in  this section  and obtain
                                    written  approval of  such assurance
                                    from  the Regional Administrator
                                      '10) The Regional Administrator will
                                    return the letter of credit to the issu-
                                    ing institution for termination when:
                                      (ii An owner or operator substitutes
                                    alternate financial assurance as speci-
                                    fied in this section: or
                                      'IP  The Regional Administrator re-
                                    leases the owner or operator from the
                                    requirements of this section in accord-
                                    ance with i 264.143d)
                                        Closure insurance. (I) An owner
                                    or operator may satisfy  the require-
                                    ments of this  section  by obtaining clo-
                                    sure insurance which conforms to the
                                    requirements  of this  paragraph  and
                                    submitting a certificate of such insur-
                                    ance  to  the Regional  Administrator.
                                    An owner or operator of a new facility
                                    must  submit  the certificate of insur-
                                    ance  to the Rfgional'Administrator at
                                    least  60 days before the date on which
                                    hazardous waste is  first  received  for
                                    treatment, storage, or disposal  The in-
                                    surance must be effective before  this
                                    initial receipt  of hazardous waste. At a
                                    minimum, the insurer must be licensed
                                    to transact the  business of insurance.
                                    or eligible to  provide  insurance as an
                                    excess or suplus lines insurer, in one
                                    or more States.
                                      <2)  The wording of the certificate of
                                    insurance  must  be identical  to  the
                                    wording specified in $ 264.151 face amount, although
                                    the insurers  future  liability  will  be
                                    lowered  by  the  amount  of the pay-
                                    ments.
                                      <4)  The closure  insurance  policy
                                    must  guarantee  that  funds will   be.
                                    available to close the facility whenever
                                    final  closure occurs. The policy  must
                                    also guarantee that once  final closure
                                    begins, 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 Regional Ad-
                                    ministrator, to such party or parties as
                                    the Regional Administrator specifies.
   (5J Af»er beginning partial or I
 closure, an owner or operator o>
 oihei person authorized to cn«-
 dosure may request rtimbursur
 closure expenditures Hy jubrnitr
 itemized bills to the Regional
 Administrator. The ownrr ?• or.
 m:
 c!or::» on'v if the reraa-nirg va!
 tht p;''.ry i.i suffiiuura to cover t
 r.svmu'n touts of clotty  ':• n
 ov«r itn rerr.'-.r r.g opara'.r.j I1*1
 6f ,hy« z~'-::r recei-. ing b
         -.'-rts in «i'i;h
                                                                             ot'-.
trator within 90 days after receipt by
   5-30-46                    PuMnn«d By THE BUREAU OF NATIONAL AFFAIRS. INC.. WatMngton. D.C. 20037
wn.i^c. if tu • K»%".)«iL -V T.'.'ii -i
tV. . •  rts  >:n
cl"S'ire pxj"»r.'i;:ii:tj r.c :a a •..
*.th tht aru.'O'. ed dor ... ?'&.: r.
       sj j-jii.'ied. I, •':.£ ?.<•.•<;-"
       af: it;r fu: reiser. io b*>;.
the rn.ix.m T rost of closure cw
rrrnia.nma ':fe of .he f^..: *y  wili
sigrv'rc-i"!.  srcater thar. ihe ^'.
amount of thr o-.',cv. <,e ..-.a^ HI
r»imt",rsa:n£nts cf such ar.u-x'.  •
deems prudent unt:'. he deterrm;-
ac.-ordanr.e  with 5 2SJ.ilJ(i). rh*
owner or oj;er4tor is no !one>?r :<
to maint^ir  financial asjuranr:
closure of the fauiity. If ths Rezi
Administrator does net :r.stru.t
insurer to make such rtimLra. }?•;
he will provide the ow.ier or cot
wth a uVuilcd wnttc.i st^err.ei
reasons.
(264.143(eH5) revised by 51 FF
May 2. 1 9*6)
  (8)  The  owner  or  operai
maintain the  policy in full t
effect  until the Regional Ad
tor consents  to termination
policy by  the  owner  or  op<
specified in paragraph  
-------
  161:2028
                                                FEDERAL REGULATIONS
the  option of  renewal  at  the  face
amount of the expiring policy. If there
\s a failure to  pay the premium.ihe in-
surer may elect to cancel, terminate.
or fail to renew the policy by sending
notice by certified mail to the owner
or operator and the Regional Adminis-
trator.  Cancellation,  termination or
failure to renew may not occur, howev-
er, during the 120 days beginning  with
the  date  of receipt of the notice by
both the  Regional Administrator and
the owner or operator, as evidenced by
the  return receipts. Cancellation, ter-
mination, 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:
  (1)  The  Regional  Administrator
deems the facility abandoned: or
  ;
  (ii) A copy of the independent certi-
fied public accountant's report  on ex-
amination of the owner's or operator's
financial  statements  for  the  latest
completed fiscal year: and
  (iii)  A   special   report   from  the
owner's or operator's independent cer-
tified public  accountant to the  owner
or operator stating that:
  (A) He ha* compared the data which
the letter from the chief financial offi-
cer specifies as having been derived
from the independently audited, year-
end financial statements for the latest
fiscal year with the amounts in such
financial statements; and
  (B) In connection with  that  proce-
dure, no matters came to his attention
which  caused him to believe that the
specified data should be adjusted.
  (4) An owner  or  operator of  a new
facility must submit the items speci-
fied in paragraph (f><3) of  this section
to the Regional  Administrator at least
90 days before the date on which haz-
ardous waste is first received for treat-
ment, storage, or disposal.
  (9) After the initial submission  of
items specified in paragraph  (f)(3) of
this section,  the  owner or operator
must send updated information to the
Regional Administrator within 90 days
after  the- close of  each   succeeding
fiscal year. This information must con-
sist of all  three items specified in para-
graph (f)<3) of this section.
  (6) If the owner  or operator  no
longer  meets  the  requirements  of
paragraph  of
 this section. If the Regional Adminis-
 trator finds, on the  basis of such re-
 ports or other information, that  the
 owner or operator no longer meets the
 requirement* of paragraph (f)(D  of
 this section, the owner  or  operator
 must provide alternate financial assur-
 ance as specified in this section within
 30 days  after  notification of such  a
 finding.

   (8) The Regional Administrator may
 disallow use of this test on the basis of
                                                                                     (See. 2#4,l4J
-------
 PERMITTED FACILITIES STANDARDS
qualifications in the opinion expressed
by the independent certified public ac-
countant in his report on examination
of the owner s or operator's financial
statements (see paragraph (f)(3)(ii) of
this section). An  adverse opinion or a
disclaimer of opinion  will be cause  for
disallowance. The Regional  Adminis-
trator will evaluate  other qualifica-
tions  on  an  individual  basis.  The
owner or operator must provide alter-
nate financial assurance as specified in
this section within 30  days after notifi-
cation of the disallowance.
  (9)  The owner  or  operator  is  no
longer required  to submit  the items
specified in  paragraph (f)(3) of this
section when:
  (i) An  owner or operator substitutes
alternate financial assurance as speci-
fied in this section: or
  Hi)  The  Regional Administrator  re-
leases the  owner or operator from the
requirements of this section in accord-
ance with j 264.143(i>.
  (10) An owner or operator may meet
the requirements of this section by ob-
taining a written  guarantee, hereafter
referred  to as 'corporate guarantee."
The guarantor must be the parent cor-
poration of  the  owner  or operator.
The guarantor must meet the require-
ments for owners or operators in para-
graphs (fxi) through (f><8> of this sec-
tion and must comply with the terms
of the corporate guarantee. The word-
ing of the corporate  guarantee must
be identical to the wording specified in
|264.151(h>.  The  corporate guarantee
must accompany the items sent to  the
Regional Administrator as specified in
paragraph  (f)<3) of this  section.  The
terms of  the corporate guarantee must
provide that:
  (i) If the owner or operator fails to
perform  final closure of a facility cov-
ered by the corporate  guarantee in ac-
cordance  with the closure  plan and
other permit requirements  whenever
required  to do so. the guarantor will
do so or establish a trust fund as speci-
fied in I  264.143*a; in  the name of  the
owner or operator.
  (ii)  The corporate  guarantee  will
remain in  force unless the guarantor
sends notice of cancellation by certi-
fied mail to the owner or operator and
to the Regional Administrator. Cancel-
lation may not occur,  however,  during
the 120 days beginning on the date of
receipt of the notice of cancellation by
both  the owner  or operator and  the
Regional Administrator,  as  evidenced
by the return receipts.
  oil) If the owner or  operator fails to
provide alternate financial  assurance
as specified in this section and  obtain
the written approval of such alternate
assurance from the Regional Adminis-
trator within  90 days  after receipt  by
both  the owner  or operator and  the
Regional Administrator of a notice of
            cancellation of the corporate guaran-
            tee from the guarantor, the guarantor
            will provide such alternative financial
            assurance in the name of the owner or
            operator.

              (g)  Use of multiple financial mecha-
            nisms. An owner or operator may sat-
            isfy  the requirements of  this section
            by establishing more than one finan-
            cial  mechanism  per facility.  These
            mechanisms are limited to trust funds.
            surety  bonds  guaranteeing  payment
            into a trust fund, letters of credit, and
            insurance. The mechanisms must  be as
            specified  in paragraphs  (a), (b), (d),
            and <-": •<• ''•••-
 i .* i2u Iti-l 2.3. 2:-.» .:,&. :»» _iu. ., -,
 :>.'••• -HO.
   I d The poi! JoSuT" cost i  i'ir..,v
 'i.jst r>« biisctl ..it: :he C'.'s;s to the ..
 .r Dpt-rator of h..-;ni? a ;nird prff\ tu
 • orduct ;jwS'-c!osMre care er jf 5 nars of post-( !o=ur,' i ,irr
 ii;:(u.rrd under § 264.11"
   (bl D.irng tl.c active life of thn
 f.i-.::tiv. 'he owner or opc-utor "inst
 •idjij-' 'He posi-closurc cost p-./'uv-'1
 •r.ii -lion witHin 60 days pr»ir '•> 'nr
 nnnuKr-tdry di.'c of the er,'. ihi »ri t;;••*•
 1 1 «t sstnnrttc mast ^-: -jpi!.,1-- : '. -
 inflation within 30 days dft«v  the <•'
 01' tfe firm's fiscal y^•^^ and bet'i.-e rn
 «;.')rt'.is;iion of updated .rrofTr-nu'i' '.
 the Rc^'nnal Admmistrdtor ds SIK , ,".
 in <5 J!>4.M5iniS!. The acn ^t.T, :•• -,-. •
 be  T -«•.!(« by reralculat-.ne fre  p.;st-
  5-30-W
                                                                                               2«4.144(bJ]
PuWi«n«d by THE BUREAU OP NATIONAL AFFAIRS. INC.. Wunmgton. DC. 20037
-------
 161:2030
                                                   FEDERAL REGULATIONS
       cost pstim;itr> in r.urrr:t -id;
 or by usinx an tnf..U:on f;;r'f>r do"!1. •
 from the most recent Implies P;i...
 U- n.i!or for GrrM N-Miorw! J>u«hii.'
 puL"i.'hcrt bv the U.S. D*r"l|r^c';t >'
 Q..nrr'»!'-i» in itsSunx-t, i f Cm •••••'
 /'...-. /••••*• .:s specified in I 284.14"i. :•;
 dna '!••!,'.:> The 'iHai-cn tar.fjr ts •:-.
 rr>>i'!i of d-vi»li.-.tf th«? latest
 *nnu;i! Deflator !n- fr,® 0«''°:rf"r ?nr tf-i-
 pro* lous year.

  (1) The first adjustment is ma.de by
multiplying the post-closure cost esti-
mate  by  the  inflation  factor. The
result is the adjusted post-closure cost
estimate.
  <2)  Subsequent   adjustments  are
made by multiplying the latest adjust-
ed post-closure  cost estimate  by  the
latest inflation factor.

  ((.; 13..'ing the actu-f life of tt:e ! 1. 1! -c
?.*••:• cwnc-r or operator -iusi revisii th.
pus' -closure cost estimate wuh'n uii
fl,;vs dffr the Re?ion.u Admir,,.