TITLE 35: ENVIRONMENTAL PROTECTION
SUBTITLE G: WASTE DISPOSAL
CHAPTER I: POLLUTION CONTROL BOARD
SUBCHAPTER m: USED AND WASTE TIRES
PART 848
MANAGEMENT OF USED AND WASTE TIRES
SUBPART A: GENERAL
Section
848.101 Applicability
848.102 Severability
848.103 Other Regulations
848.104 Definitions
848.105
Incorporation by Reference
SUBPART B: MANAGEMENT STANDARDS
Section
848.201 Applicability
848.202 Requirements
848.203 Contingency Plan
848.204
Storage of Used and Waste Tires Within Buildings
848.205 Pesticide Treatment
848.206
Exemptions for Tire Retreading Facilities
848.207
Exemptions for Tire Stamping & Die Cutting Facilities
848.208
Exemptions for Sites With a Tire Removal Agreement
SUBPART C: RECORDKEEPING AND REPORTING
Section
848.301 Applicability
848.302 Records
848.303
Daily Tire Record
848.304
Annual Tire Summary
848.305
Retention of Records
848.306 Certification
SUBPART D: FINANCIAL ASSURANCE
Section
848.400
Scope and Applicability
848.401
Upgrading Financial Assurance
848.402
Release of Financial Institution
848.403
Application of Proceeds and Appeal
848.404
Removal Cost Estimate
848.406
Mechanisms for Financial Assurance
848.407
Use of Multiple Financial Mechanisms
848.408
Use of a Financial Mechanism for Multiple Sites
848.410 Trust Fund
848.413
Letter of Credit
848.415
Self-Insurance for Non-commercial Sites
SUBPART E: TIRE REMOVAL AGREEMENTS
Section
848.501 Applicability
848.502
Removal Performance Standard
848.503
Contents of Proposed Tire Removal Agreements
848.504
Time Allowed for Tire Removal
848.505 Removal Plan
848.506
Initiation of Tire Removal
848.507
Certification of Removal Completion
848.508 Agency Approval
848.509 Board Review
SUBPART F: TIRE TRANSPORTATION REQUIREMENTS
Section
848.601
Tire Transportation Prohibitions
848.602
Tire Transportation Registrations
848.603
Agency Approval of Registrations
848.604
Registration No Defense
848.605
Duration and Renewal
848.606 Vehicle Placarding
Appendix A
Financial Assurance Forms
Illustration A
"Trust Agreement"
Illustration B
"Certification of Acknowledgement"
Illustration C
"Irrevocable Standby Letter of Credit"
Illustration D
"Owner or Operator's Bond Without Surety"
Illustration E
"Owner or Operator's Bond With Parent Surety"
Illustration F
"Letter from the Chief Financial Officer"
AUTHORITY: Implementing Section 55.2 and authorized by Section 27 of the
Environmental Protection Act [415 ILCS 5/55.2 and 27].
SOURCE: Adopted in R90-9(A) at 15 Ill. Reg. 7959, effective May 10, 1991; amended
in R90-9(B) at 16 Ill. Reg. 3114, effective February 14, 1992, amended in R 98-9 at 22
Ill. Reg. 11420, effective June 23, 1998.
NOTE: Statutory language is denoted by capital letters.
SUBPART A: GENERAL
Section 848.101 Applicability
Section 55 of the Illinois Environmental Protection Act (Ill. Rev. Stat. 1989, ch. 111
1/2, par. 1055) sets forth prohibitions relative to the storage, processing, disposal and
transportation of used and waste tires. This Part sets forth rules establishing further
requirements relative to the storage, processing, disposal and transportation of used and
waste tires. This Part does not apply to:
a) Altered tires which have been chopped, shredded or processed, such that
the individual dimensions of height, length and width of the tire product
are two inches or less (an industry standard known as "two inch minus");
b) Converted, new or reprocessed tires; or
c) Reused tires which have been altered to prevent the accumulation of
water.
(Source: Amended at 16 Ill. Reg. 3114, effective February 14, 1992)
Section 848.102 Severability
If any section, subsection, sentence or clause of this Part shall be adjudged
unconstitutional, invalid or otherwise not effective for any reason, such adjudication shall
not affect the validity of this Part as a whole or of any section, subsection, sentence or
clause thereof not adjudged unconstitutional, invalid or otherwise not effective for any
reason.
Section 848.103 Other Regulations
a) The requirements of this Part are in addition to other requirements in the
Act or Board regulations. In case of conflict, applicability will be
determined on the basis of considerations such as, but not limited to, the
degree to which the statutory language in the Act or Board regulation is
expressly stated or necessarily implied, United States Environmental
Protection Agency program authorization requirements, and the
comparative stringency of the regulations.
b) The following are examples of other regulations which may be applicable
to facilities subject to this Part: 35 Ill. Adm. Code: Subtitle B: Air
Pollution; 35 Ill. Adm. Code: Subtitle C: Water Pollution; 35 Ill. Adm.
Code: Subtitle H: Noise Pollution; and 35 Ill. Adm. Code: Subtitle G:
Waste Disposal.
Section 848.104 Definitions
For the purposes of this Part, except as the context otherwise clearly requires, the words
and terms defined in this Section shall have the meanings given herein. Words and terms
not defined shall have the meanings otherwise set forth in the Act and regulations
adopted thereunder.
"Act" means the Illinois Environmental Protection Act [415 ILCS 5].
"Aisle" means an accessible clear space between storage piles or groups of
piles suitable for housekeeping operations, visual inspection of piling
areas and initial fire fighting operations.
"ALTERED TIRE" MEANS A USED TIRE WHICH HAS BEEN
ALTERED SO THAT IT IS NO LONGER CAPABLE OF HOLDING
ACCUMULATIONS OF WATER, INCLUDING, BUT NOT LIMITED
TO, USED TIRES THAT HAVE BEEN SHREDDED, CHOPPED,
DRILLED WITH HOLES SUFFICIENT TO ASSURE DRAINAGE,
SLIT LONGITUDINALLY AND STACKED SO AS NOT TO
COLLECT WATER, OR WHOLLY OR PARTIALLY FILLED WITH
CEMENT OR OTHER MATERIAL TO PREVENT THE
ACCUMULATION OF WATER. "ALTERATION" OR "ALTERING"
MEANS ACTION WHICH PRODUCES AN ALTERED TIRE. (Section
54.01 of the Act)
"CONVERTED TIRE" MEANS A USED TIRE WHICH HAS BEEN
MANUFACTURED INTO A USABLE COMMODITY OTHER THAN
A TIRE. "CONVERSION" OR "CONVERTING" MEANS ACTION
WHICH PRODUCES A CONVERTED TIRE. USABLE PRODUCTS
MANUFACTURED FROM TIRES, WHICH PRODUCTS ARE
THEMSELVES CAPABLE OF HOLDING ACCUMULATIONS OF
WATER, SHALL BE DEEMED TO BE "CONVERTED" IF THEY ARE
STACKED, PACKAGED, BOXED, CONTAINERIZED OR
ENCLOSED IN SUCH A MANNER AS TO PRECLUDE EXPOSURE
TO PRECIPITATION PRIOR TO SALE OR CONVEYANCE. (Section
54.02 of the Act)
"COVERED TIRE" MEANS A USED TIRE LOCATED IN A
BUILDING, VEHICLE OR FACILITY WITH A ROOF EXTENDING
OVER THE TIRE, OR SECURELY LOCATED UNDER A MATERIAL
SO AS TO PRECLUDE EXPOSURE TO PRECIPITATION. (Section
54.03 of the Act)
"DISPOSAL" MEANS THE PLACEMENT OF USED TIRES INTO OR
ON ANY LAND OR WATER EXCEPT AS AN INTEGRAL PART OF
SYSTEMATIC REUSE OR CONVERSION IN THE REGULAR
COURSE OF BUSINESS. (Section 54.04 of the Act)
"NEW TIRE" MEANS A TIRE WHICH HAS NEVER BEEN PLACED
ON A VEHICLE WHEEL RIM. (Section 54.05 of the Act)
"PROCESSING" MEANS THE ALTERING, CONVERTING OR
REPROCESSING OF USED OR WASTE TIRES. (Section 54.06 of the
Act)
“RECYCLABLE TIRE” MEANS A USED TIRE WHICH IS FREE OF
PERMANENT PHYSICAL DAMAGE AND MAINTAINS SUFFICIENT
TREAD DEPTH TO ALLOW ITS USE THROUGH RESALE OR
REPAIRING. (Section 54.06(a) of the Act)
"REPROCESSED TIRE" MEANS A USED TIRE WHICH HAS BEEN
RECAPPED, RETREADED OR REGROOVED AND WHICH HAS
NOT BEEN PLACED ON A VEHICLE WHEEL RIM. (Section 54.07 of
the Act)
"Retread" or "Retreading" means the process of attaching tread to the
casing of used tires.
"REUSED TIRE" MEANS A USED TIRE THAT IS USED AGAIN, IN
PART OR AS A WHOLE, BY BEING EMPLOYED IN A
PARTICULAR FUNCTION OR APPLICATION AS AN EFFECTIVE
SUBSTITUTE FOR A COMMERCIAL PRODUCT OR FUEL
WITHOUT HAVING BEEN CONVERTED. (Section 54.08 of the Act)
"STORAGE" MEANS ANY ACCUMULATION OF USED TIRES
THAT DOES NOT CONSTITUTE DISPOSAL. AT A MINIMUM,
SUCH AN ACCUMULATION MUST BE AN INTEGRAL PART OF
THE SYSTEMATIC ALTERATION, REUSE, REPROCESSING OR
CONVERSION OF THE TIRE IN THE REGULAR COURSE OF
BUSINESS. (Section 54.09 of the Act)
"TIRE" MEANS A HOLLOW RING, MADE OF RUBBER OR
SIMILAR MATERIALS, WHICH WAS MANUFACTURED FOR THE
PURPOSE OF BEING PLACED ON THE WHEEL RIM OF A
VEHICLE. (Section 54.10 of the Act)
“TIRE CARCASS” MEANS THE INTERNAL PART OF A USED TIRE
CONTAINING THE PLIES, BEADS, AND BELTS SUITABLE FOR
RETREAD OR REMANUFACTURE. (Section 54.10(a) of the Act)
“TIRE DERIVED FUEL” MEANS A PRODUCT MADE FROM USED
TIRES TO EXACT SPECIFICATION OF A SYSTEM DESIGNED TO
ACCEPT A TIRE DERIVED FUEL AS A PRIMARY OR
SUPPLEMENTAL FUEL SOURCE. (Section 54.10(b) of the Act)
"TIRE DISPOSAL SITE" MEANS A SITE WHERE USED TIRES
HAVE BEEN DISPOSED OF OTHER THAN AT A LANDFILL
PERMITTED BY THE AGENCY, OR OPERATED IN ACCORDANCE
WITH SECTION 55(D) OF THE ACT. (Section 54.11 of the Act)
“TIRE RETREADER” MEANS A PERSON OR FIRM THAT
RETREADS OR REMANUFACTURES TIRES. (Section 54.11(a) of the
Act)
"TIRE STORAGE SITE" MEANS A SITE WHERE USED TIRES ARE
STORED OR PROCESSED, OTHER THAN THE SITE AT WHICH
THE TIRES WERE SEPARATED FROM THE VEHICLE WHEEL RIM,
THE SITE WHERE THE USED TIRES WERE ACCEPTED IN TRADE
AS PART OF A SALE OF NEW TIRES, OR A SITE AT WHICH BOTH
NEW AND USED TIRES ARE SOLD AT RETAIL IN THE REGULAR
COURSE OF BUSINESS, AND AT WHICH NOT MORE THAN 250
USED TIRES ARE KEPT AT ANY TIME OR A FACILITY AT WHICH
TIRES ARE SOLD AT RETAIL PROVIDED THAT THE FACILITY
MAINTAINS LESS THAN 1300 RECYCLABLE TIRES, 1300 TIRE
CARCASSES, AND 1300 USED TIRES ON SITE AND THOSE TIRES
ARE STORED INSIDE A BUILDING SO THAT THEY ARE
PREVENTED FROM ACCUMULATING WATER. (Section 54.12 of
the Act)
“TIRE STORAGE UNIT” MEANS A PILE OF TIRES OR A GROUP OF
PILES OF TIRES AT A STORAGE SITE. (Section 54.12(a) of the Act)
“TIRE TRANSPORTER” MEANS A PERSON WHO TRANSPORTS
USED OR WASTE TIRES IN A VEHICLE. (Section 54.12(b) of the
Act)
"USED TIRE" MEANS A WORN, DAMAGED OR DEFECTIVE TIRE
WHICH IS NOT MOUNTED ON A VEHICLE WHEEL RIM. (Section
54.13 of the Act)
"VECTOR" MEANS ARTHROPODS, RATS, MICE, BIRDS OR
OTHER ANIMALS CAPABLE OF CARRYING DISEASE-
PRODUCING ORGANISMS TO A HUMAN OR ANIMAL HOST.
"VECTOR" DOES NOT INCLUDE ANIMALS THAT TRANSMIT
DISEASE TO HUMANS ONLY WHEN USED AS HUMAN FOOD.
(Section 54.14 of the Act)
"VEHICLE" MEANS EVERY DEVICE IN, UPON OR BY WHICH
ANY PERSON OR PROPERTY IS OR MAY BE TRANSPORTED OR
DRAWN, EXCEPT DEVICES MOVED BY HUMAN POWER OR BY
ANIMAL POWER, DEVICES USED EXCLUSIVELY UPON
STATIONARY RAILS OR TRACKS, AND MOTORIZED
WHEELCHAIRS. (Section 54.15 of the Act)
"WASTE TIRE" MEANS A USED TIRE THAT HAS BEEN DISPOSED
OF. (Section 54.16 of the Act)
(SOURCE: Amended at 22 Ill. Reg. 11420, effective June 23, 1998)
Section 848.105 Incorporation by Reference
a) The Board incorporates the following documents by reference:
1) National Consensus Standard, NFPA 231D (1989) by reference.
2) 49 CFR 571.117 (1989).
3) 49 CFR 574 (1989).
4) "Accounting Standards, General Standards", 1988/89 Edition, as of
June 1, 1988, available from the Financial Accounting Standards
Board, 401 Merrit 7, P.O. Box 5116, Norwalk, CT 06856-5116.
5) "Auditing Standards"--Current Text, August 1, 1990 Edition,
available from the American Institute of Certified Public
Accountants, 1211 Avenue of the Americas, New York, NY
10036.
b) This Section incorporates no later amendments or editions.
SUBPART B: MANAGEMENT STANDARDS
Section 848.201 Applicability
a) This Part does not apply to used and waste tires exempted pursuant to
Section 55.1 of the Act.
b) Owners and operators of tire storage sites and tire disposal sites whose
operations are not specifically exempted by subsections (c) through (f)
shall:
1) Meet the requirements of this Part by January 1, 1992 if used or
waste tires were disposed of or stored prior to January 1, 1992; or
2) Meet the requirements of this Part prior to storing or disposing any
used or waste tires at the site if the site first accepts tires for
storage or disposal after January 1, 1992.
c) Tire storage sites and tire disposal sites where less than 50 used or waste
tires are stored at the site are exempted from the requirements of this Part.
However, the prohibition of Section 55 of the Act do apply to such sites.
d) This Part does not apply to used or waste tires disposed in permitted areas
of landfills permitted by the Agency pursuant to 35 Ill. Adm. Code:
Subtitle G: Waste Disposal. Used or waste tires stored at a landfill
permitted pursuant to 35 Ill. Adm. Code: Subtitle G: Waste Disposal are
subject to the requirements of this Part.
e) Owners or Operators who comply with the requirements of this Part are
not subject to the provisions of 35 Ill. Adm. Code 849.
f) Used or waste tires which have been altered by chopping, shredding or
slicing, and stored at the site where such tires are burned as fuel, are
exempted from the requirements of this Part.
Section 848.202 Requirements
a) Unless exempted by Section 848.201, owners and operators of tire storage
sites and tire disposal sites shall meet the requirements of this Section.
These requirements shall apply to all used or waste tires located at the site,
including altered tires, converted tires and reprocessed tires.
b) At sites at which more than 50 used or waste tires are located the owner or
operator shall comply with the following requirements:
1) Used or waste tires shall not be placed on or accumulated in any
pile outside of any building unless the pile is separated from all
other piles by no less than 25 feet and aisle space is maintained to
allow the unobstructed movement of personnel and equipment.
2) Used or waste tires shall not be accumulated in any area located
outside of any building unless the accumulation is separated from
all buildings, whether on or off the site, by no less than 25 feet.
3) Used or waste tires shall not be placed on or accumulated in any
pile unless the pile is separated from all potential ignition sources,
including cutting and welding devices, and open fires, by not less
than 250 feet or all such activities are carried out within a building.
4) Used or waste tires shall be drained of water on the day of
generation or receipt.
5) Used or waste tires received at the site shall not be stored unless
within 14 days after the receipt of any used tire the used tire is
altered, reprocessed, converted, covered or otherwise prevented
from accumulating water. All used and waste tires received at the
site before June 1, 1989, shall be altered, reprocessed, converted,
covered or otherwise prevented from accumulating water by
January 1, 1992.
6) USED OR WASTE TIRES SHALL NOT BE ABANDONED,
DUMPED OR DISPOSED ON PRIVATE OR PUBLIC
PROPERTY IN ILLINOIS, EXCEPT IN A LANDFILL
PERMITTED BY THE AGENCY PURSUANT TO 35 ILL.
ADM. CODE 807 OR 811
.
(Section 55(a)(5) of the Act)
7) Used or waste tires shall not be accepted from a vehicle in which
more than 20 tires are loaded unless the vehicle displays a placard
issued by the Agency under Subpart F.
8) Tires shall not be accumulated in an area if the grade of the ground
surface exceeds two percent slope unless the requirements of
subsection (d)(3) are met.
c) In addition to the requirements set forth in subsection (b), the owner or
operator shall comply with the following requirements at sites at which
more than 500 used or waste tires are located.
1) A contingency plan which meets the requirements of Section
848.203 shall be maintained.
2) The recordkeeping and reporting requirements of Subpart C shall
be met.
3) Used or waste tires shall not be placed on or accumulated in any
pile unless the pile is separated from grass, weeds, brush, over-
hanging tree limbs and similar vegetative growth by no less than
50 feet.
4) Used or waste tires shall not be placed on or accumulated in any
tire storage unit unless the unit is no more than 20 feet high by 250
feet wide by 250 feet long. In determining the width or length of
any tire storage unit the aisle space between any piles within the
unit shall be included.
5) Used or waste tires shall not be placed or accumulated in any tire
storage unit unless one of the following requirements is met:
A) The tire storage unit is separated from all buildings,
whether located on or off the site, and all other tire storage
units by an earthen berm that is no less than 1.5 times the
maximum height of any tire pile within the storage unit; or
B) The tire storage unit is separated from all buildings,
whether located on or off the site, and all other tire storage
units by a separation distance that is not less than the
distance identified by the following:
Required Separation Distances
From Tire Storage Units (in feet)
Tire Storage Unit Height
8
12
16
20
25 56 67 77 85
Unit Face
50 75 93 107
118
Dimensions
100 100 128 146 164
150 117 149 178 198
200 130 167 198 226
250 140 181 216 245
d) In addition to the requirements set forth in subsections (b) and (c), the
owner or operator shall comply with the following requirements at sites at
which more than 10,000 used or waste tires are located.
1) The area of the site where used or waste tires are stored shall be
completely surrounded by fencing in good repair which is not less
than 6 feet in height.
2) Entrance to the area where used or waste tires are located shall be
controlled at all times by an attendant, locked entrance, television
monitors, controlled roadway access or other equivalent
mechanisms.
3) The area of the site where used or waste tires are stored shall be
completely surrounded by an earthen berm or other structure not
less than 2 feet in height, and capable of containing runoff
resulting from tire fires, and accessible by fire fighting equipment;
except that the owner or operator shall provide a means for access
through or over the berm or other structure.
(Source: Amended at 16 Ill. Reg. 3114, effective February 14, 1992)
Section 848.203 Contingency Plan
a) If an owner or operator of a tire storage site or tire disposal site is required
by Section 848.202 to have a contingency plan under this Section, the
owner or operator must meet the contingency plan requirements of this
Section.
b) The contingency plan must be designed to minimize the hazards to human
health and the environment from fires and run-off of contaminants
resulting from fires and from disease-spreading mosquitoes and other
nuisance organisms which may breed in water accumulations in used or
waste tires.
c) The provisions of this plan must be carried out immediately whenever
there is a fire or run-off resulting from a tire fire, or evidence of mosquito
production in used or waste tires.
d) The contingency plan must describe the actions site personnel must take in
response to fires, run-off resulting from tire fires, and mosquito breeding
in used or waste tires.
e) This contingency plan must include evacuation procedures for site
personnel which describe signals to be used to begin evacuation,
evacuation routes, and alternate evacuation routes (in cases where the
primary routes could be blocked by fire). The contingency plan must
include provisions for pesticide application or other measures for control
of mosquito breeding in used and waste tires.
f) A copy of the contingency plan and all revisions to the plan must be
maintained at the site, and submitted to the local fire departments, police
departments, the Agency, and state and local emergency response teams
that may be called upon to provide emergency service.
g) The contingency plan must be reviewed and amended within 30 days, if
the plan fails in an emergency or the list of emergency coordinators
changes.
h) At all times, there must be at least one employee, either on the site
premises or on call, with responsibility for coordinating all emergency
response measures. This emergency coordinator must be familiar with all
aspects of the contingency plan, all operations and activities at the site, the
location of all records within the site and the site layout. In addition, this
person must have the authority to commit the resources needed to carry
out the contingency plan.
Section 848.204 Storage of Used and Waste Tires Within Buildings
a) Owners or operators of tire storage sites or tire disposal sites who store
used or waste tires within buildings shall meet the requirements of this
Section.
b) Used or waste tires may be stored within a building if:
1) the tires are drained of all water prior to placement in the building;
2) all of the building's windows and doors are in working order and
are secured to prevent unauthorized access;
3) the building is fully enclosed and has a roof and sides which are
impermeable to precipitation; and
4) the building is not a single family home or a residential dwelling.
c) In addition to the requirements set forth in subsection (b), if 500 or more
used or waste tires are stored within a building, then the owner or operator
shall:
1) develop a tire storage plan in consultation with the local fire
department or the state fire marshal meeting the following
requirements:
A) the plan shall be developed by considering the type of
building to be used for tire storage, i.e. warehouse or grain
elevator, and the type of used or waste tires being stored,
i.e. whole or shredded;
B) the plan shall include, but not be limited to: the tire storage
arrangement; aisle space if necessary; clearance distances
between tire piles and the building ceiling, unit heaters,
duct furnaces and sprinkler deflectors; and access to fire
fighting personnel and equipment; and
C) a copy of the tire storage plan shall be filed with the
Agency within 60 days of the effective date of this Part and
the plan requirements shall be implemented within 14 days
of filing the tire storage plan with the Agency;
2) have and maintain a contingency plan which meets the
requirements of Section 848.203; and
3) meet the recordkeeping and reporting requirements of Subpart C.
d) Buildings constructed after the effective date of these rules for the primary
purpose of storing used or waste tires in excess of 10,000 shall comply
with the NFPA 231D standard for storage of rubber tires incorporated by
reference at Section 848.105.
Section 848.205 Pesticide Treatment
Owners or operators of tire storage sites or tire disposal sites treating used or waste tires
with pesticides pursuant to this Part or Title XIV of the Act:
a) Use a pesticide labelled for control of mosquito larvae unless an adult
mosquito problem is identified.
b) Maintain a record of pesticide use at the site. Such a record shall include
the following information for each application:
1) Date of pesticide application;
2) Number of used or waste tires treated;
3) Amount of pesticide applied; and
4) Type of pesticide used.
c) Notify the Agency of pesticide use within 10 days of each application.
The notification shall include the information listed in subsection (b).
d) Persons applying pesticides to used and waste tires must comply with the
requirements of the Illinois Pesticide Act (Ill. Rev. Stat. 1989, ch. 5,
par. 801 et seq.). Information is available from:
Illinois Department of Agriculture
Bureau of Plant & Apiary Protection
State Fairgrounds
P.O. Box 19281
Springfield, IL 62794-9281
(Source: Amended at 16 Ill. Reg. 3114, effective February 14, 1992)
Section 848.206 Exemptions for Tire Retreading Facilities
a) Existing sites. Sites which meet all of the conditions of subsection (a)(1)
are exempt as set out in subsection (a)(2).
1) Conditions for exemption.
A) Registration. The site was operated by a tire retreader who,
as of January 1, 1992, held a valid registration with the
U.S. Department of Transportation as a tire retreader under
49 CFR 571.117 and 574. (October 1, 1990). This
incorporation includes no later amendments or editions.
B) Number of Tires. The facility contains no more than
100,000 whole used or waste tires.
C) Equipment. The retreader:
i) Has equipment at the site which is capable of
retreading at least 500 tires per day when operated
in accordance with the equipment manufacturer's
specifications; and
ii) Maintains documentation at the site which
demonstrates that an average of 500 or more tires
per day of operation were retreaded at the site
during the previous calendar year.
D) Segregation. The owner or operator of the site segregates
tires intended to be retreaded from those tires determined to
be unsuitable for retreading.
2) Scope of Exemption.
A) The following Sections do not apply:
i) Pile separation distances specified at Sections
848.202(b)(1) and (2);
ii) The storage limitation on whole tires specified at
Section 848.202(b)(5);
iii) Tire storage unit requirements of Sections
848.202(c)(4) and (5); and
iv) The earthen berm requirement of Section
848.202(d)(3).
B) The owner or operator may exclude from the cost estimate
under Section 848.404 the cost of removing one fourth of
the previous calendar year's tire production as shown by
documentation maintained at the site.
3) Alternate Management Standards. As a part of the contingency
plan requirements of Section 848.203 the owner or operator shall:
A) Within 90 days after the effective date of these regulations,
develop and implement a tire storage plan to minimize the
threat of fire and mosquito breeding. Such a plan shall
include, but is not limited to, tire storage arrangements,
aisle space, access to fire fighting personnel and equipment
and mosquito inspection and control.
B) Request and submit to the Agency a statement from the
Illinois Department of Public Health that the program
developed under subsection (a)(3)(A) is adequate to control
mosquito larvae and pupae; except that, if the Department
has not sent a statement within 45 days after receipt of the
request, such statement need not be submitted and the
Agency shall make such a determination. The owner or
operator has the burden of demonstrating that the threat of
mosquito breeding has been minimized. Requests for such
statements of determination shall be sent to:
Division of Environmental Health
Office of Health Protection
Illinois Department of Public Health
525 W. Jefferson Street
Springfield, Illinois 62761
b) New sites. Sites which meet all of the conditions of subsection (b)(1) are
exempt as set out in subsection (b)(2).
1) Conditions for exemption.
A) Registration. The site is operated by a tire retreader who,
since January 1, 1992, first obtained a valid registration
with the U.S. Department of Transportation as a tire
retreader under 49 CFR 571.117 and 574 (October 1,
1990). This incorporation includes no later amendments or
editions.
B) Equipment. The retreader:
i) Has equipment at the site which is capable of
retreading at least 500 tires per day when operated
in accordance with the equipment manufacturer's
specifications; and
ii) Maintains documentation at the site which
demonstrates that an average of 500 or more tires
per operating day were retreaded at the site during
the previous calendar year. However, an owner or
operator who does not have a calendar year in
operation may use estimated production for the first
two months, and average monthly production
thereafter, until a calendar year of data is available.
C) Segregation. The owner or operator of the site segregates
tires intended to be retreaded from those tires determined to
be unsuitable for retreading.
2) Scope of Exemption.
A) The storage limitation for whole tires specified at Section
848.202(b)(5) does not apply.
B) The owner or operator may exclude from the cost estimate
under Section 848.404 the cost of removing one fourth of
the previous calendar year's production as shown by
documentation maintained at the site. The owner or
operator may exclude one fourth of the estimated first 12
months production during the first year of operation.
3) Alternate Management Standards. As a part of the contingency
plan requirements of Section 848.203 the owner or operator shall:
A) Within 90 days after the effective date of these regulations
develop and implement a tire storage plan to minimize the
threat of mosquito breeding. Such a plan shall include, but
is not limited to, mosquito inspection and control.
B) Request and submit to the Agency a statement from the
Illinois Department of Public Health that the program
developed under subsection (b)(3)(A) is adequate to control
mosquito larvae and pupae; except that, if the Department
has not sent a statement within 45 days after the request,
such statement need not be submitted and the Agency shall
make such a determination. The owner or operator has the
burden of demonstrating that the threat of mosquito
breeding has been minimized. Requests for such
statements of determination shall be sent to:
Division of Environmental Health
Office of Health Protection
Illinois Department of Public Health
525 W. Jefferson Street
Springfield, Illinois 62761
c) Small sites. Sites which meet the conditions of subsection (c)(1) are
exempt as set out in subsection (c)(2).
1) Conditions for exemption.
A) Number of tires. The facility contains no more than 500
whole used or waste tires.
B) Registration. The site is operated by a tire retreader who
holds a valid registration with the U.S. Department of
Transportation as a tire retreader under 49 CFR 571.177
and 574 (October 1, 1990). This incorporation includes no
later amendments or editions.
C) Equipment. The retreader:
i) Has equipment at the site which is capable of
retreading at least 20 tires per day when operated in
accordance with equipment manufacturer's
specifications; and
ii) Maintains documentation at the site which
demonstrates that an average of 20 tires per day
were retreaded at the site during the previous
calendar year. However, an owner or operator who
does not have a calendar year in operation may use
estimated production for the first two months, and
average monthly production thereafter, until a
calendar year of data is available.
2) Scope of exemption. The following do not apply:
A) The pile separation distances specified at Section
848.202(b)(1) and (2); and
B) The tire storage limitation of Section 848.202(b)(5).
3) Alternate Management Standards. As a part of the contingency
plan requirements of Section 848.203 the owner or operator shall:
A) Within 90 days after the effective date of these regulations
develop and implement a tire storage plan to minimize the
threat of fire and mosquito breeding. Such a plan shall
include, but is not limited to, tire storage arrangements,
aisle space, access to fire fighting personnel and equipment
and mosquito inspection and control.
B) Request and submit to the Agency a statement from the
Illinois Department of Public Health that the program
developed under subsection (c)(3)(A) is adequate to control
mosquito larvae and pupae; except that, if the Department
has not sent a statement within 45 days after receipt of the
request, such statement need not be submitted and the
Agency shall make such a determination. The owner or
operator has the burden of demonstrating that the threat of
mosquito breeding has been minimized. Requests for such
statements of determination shall be sent to:
Division of Environmental Health
Office of Health Protection
Illinois Department of Public Health
525 W. Jefferson Street
Springfield, Illinois 62761
(Source: Added at 16 Ill. Reg. 3114, effective February 14, 1992)
Section 848.207 Exemptions for Tire Stamping and Die Cutting Facilities
a) Existing Sites. Sites which meet all of the conditions of subsection (a)(1)
are exempt as set out in subsection (a)(2).
1) Conditions for exemption.
A) Operation. The site was in operation as a tire stamping and
die cutting facility on or before January 1, 1992.
B) Number of tires. The facility contains no more than 20,000
whole used or waste tires.
C) Equipment. The stamping and die cutting facility has
equipment at the site which is capable of stamping and die
cutting at least 50 tires per day when operated in
accordance with the equipment manufacturer's
specifications; and
D) Documentation. The stamping and die cutting facility
maintains documentation at the site which demonstrates
that an average of 50 or more tires per operating day were
processed at the site during the previous calendar year.
However, an owner or operator who does not have a
calendar year in operation may use estimated production
for the first two months, and average monthly production
thereafter, until a calendar year of data is available.
E) Segregation. The owner or operator of the site segregates
tires intended to be stamped or die cut from those tires
determined to be unsuitable for stamping or die cutting.
2) Scope of exemption.
A) The following Sections do not apply:
i) Pile separation distances specified at Sections
848.202(b)(1) and (2);
ii) The storage limitations on whole tires specified at
Section 848.202(b)(5);
iii) Tire storage unit requirements of Sections
848.202(c)(4) and (5); and
iv) The earthen berm requirement of Section
848.202(d)(3).
B) The owner or operator may exclude from the cost estimate
under Section 848.404 the cost of removing one fourth of
the previous calendar year's tire production as shown by
documentation maintained at the site.
3) Alternate Management Standards. As a part of the contingency
plan requirements of Section 848.203 the owner or operator shall:
A) Within 90 days after the effective date of these regulations
develop and implement a tire storage plan to minimize the
threat of fire and mosquito breeding. Such a plan shall
include, but is not be limited to, tire storage arrangements,
aisle space, access to fire fighting personnel and equipment
and mosquito inspection and control.
B) Request and submit to the Agency a statement from the
Illinois Department of Public Health that the program
developed under subsection (a)(3)(A) is adequate to control
mosquito larvae and pupae; except that, if the Department
has not sent a statement within 45 days of receipt of the
request, such statement need not be submitted and the
Agency shall make such a determination. The owner or
operator has the burden of demonstrating that the threat of
mosquito breeding has been minimized. Requests for such
statements of determination shall be sent to:
Division of Environmental Health
Office of Health Protection
Illinois Department of Public Health
525 W. Jefferson Street
Springfield, Illinois 62761
b) New sites. Sites which meet all of the conditions of subsection (b)(1) are
exempt as set out in subsection (b)(2).
1) Conditions for exemption.
A) Operation. The site was not in operation as a tire stamping
and die cutting facility on or before January 1, 1992.
B) Equipment. The stamping and die cutting facility has
equipment at the site which is capable of stamping and die
cutting at least 50 tires per day when operated in
accordance with the equipment manufacturer's
specifications; and
C) Documentation. The stamping and die cutting facility
maintains documentation at the site which demonstrates
that an average of 50 or more tires per operating day were
processed at the site during the previous calendar year.
However, an owner or operator who does not have a
calendar year in operation may use estimated production
for the first two months, and average monthly production
thereafter, until a calendar year of data is available.
D) Segregation. The owner or operator of the site segregates
tires intended to be stamped or die cut from those tires
determined to be unsuitable for stamping or die cutting.
2) Scope of exemption.
A) The storage limitation for whole tires specified at Section
848.202(b)(5) does not apply.
B) The owner or operator may exclude from the cost estimate
under Section 848.404 the cost of removing one fourth of
the previous calendar year's production as shown by
documentation maintained at the site. The owner or
operator may use the estimated first 12 months production
during the first year of operation.
3) Alternate Management Standards. As a part of the contingency
plan requirements of Section 848.203 the owner or operator shall:
A) Within 90 days after the effective date of these regulations
develop and implement a tire storage plan to minimize the
threat of mosquito breeding. Such a plan shall include, but
is not limited to, mosquito inspection and control.
B) Request and submit to the Agency a statement from the
Illinois Department of Public Health that the program
developed under subsection (b)(3)(A) is adequate to control
mosquito larvae and pupae; except that, if the Department
has not sent a statement within 45 days after receipt of the
request, such statement need not be submitted and the
Agency shall make such a determination. The owner or
operator has the burden of demonstrating that the threat of
mosquito breeding has been minimized. Requests for such
statements of determination shall sent to:
Division of Environmental Health
Office of Health Protection
Illinois Department of Public Health
525 W. Jefferson Street
Springfield, Illinois 62761
(Source: Added at 16 Ill. Reg. 3114, effective February 14, 1992)
Section 848.208 Exemptions for Sites with a Tire Removal Agreement
Owners and operators of tire disposal sites are exempt from the financial assurance
requirements of Subpart D as to that site where written approval of a tire removal
agreement has been obtained from the Agency under Subpart E.
(Source: Added at 16 Ill. Reg. 3114, effective February 14, 1992)
SUBPART C: RECORDKEEPING AND REPORTING
Section 848.301 Applicability
The requirements of this Subpart shall apply to an owner or operator of a tire storage site
or a tire disposal site who is required by the management standards of Subpart B to
maintain records in accordance with this Subpart.
Section 848.302 Records
a) The owner and operator shall keep a record of used and waste tires at the
site. The owner and operator shall keep the following records:
1) Daily Tire Record
2) Annual Tire Summary
b) Each Annual Tire Summary submitted to the Agency shall be in a form as
prescribed by the Agency.
Section 848.303 Daily Tire Record
a) The owner or operator shall maintain the Daily Tire Record at the site;
such record shall include the day of the week, the date, the Agency
designated site number and the site name and address.
b) he following information relative to used and waste tires shall be recorded
in the Daily Tire Record:
1) The weight or volume of used or waste tires received at the site
during the operating business day.
2) The weight or volume of used or waste tires transported from the
site during the operating business day and the destination of the
tires so transported.
3) The total number of used or waste tires remaining in storage at the
conclusion of the operating business day determined in terms of
the passenger tire equivalent (PTE) in accordance with subsection
(c).
4) The weight or volume of used or waste tires burned or combusted
during the operating business day.
c) The number of tires shall be determined in terms of the passenger tire
equivalent (PTE) by weight or by volume as follows:
1) PTE based on weight:
PTE = W / PTE weight factor
where,
W = weight of whole or shredded tires (lb)
PTE weight factor = 25 lb/PTE
2) PTE based on volume:
PTE = V / PTE volume factor
where,
V = volume of whole or shredded tires (ft(3))
PTE volume factors:
for shredded tires, 1.25 ft(3)/ PTE;
for whole tires, 4.00 ft(3)/ PTE.
d) If both weight and volume of used or waste tires are monitored at a site,
then the weight of the tires shall be used to estimate the PTE by weight in
accordance with subsection (c)(1).
e) The owner or operator may establish procedures different from those
specified in subsection (c) for the purposes of estimating the number of
tires as long as the number of tires are estimated in terms of passenger tire
equivalent. Such methods shall be established based on the different types
of used or waste tires including, but not limited to, light truck tires, heavy
duty truck tires, and shredded tires and method of stacking.
f) If the number of used or waste tires is estimated by employing a procedure
established in accordance with subsection (e), then the owner or operator
shall submit to the Agency such a procedure along with any supporting
information such as tire weight and volume data, and method of stacking,
within 30 days of the effective date of this Part for Agency approval.
g) For the purposes of this Part, "passenger tire equivalent" (PTE) means an
average sized passenger tire weighing 25 lb, and occupying a volume of
4.0 ft(3) when whole or 1.25 ft(3) when shredded.
h) Entries on the Daily Tire Record as required by subsection (a) shall be
made contemporaneously with the receipt or transport of each load, unless
the owner or operator uses a different method of recording the required
information which assures that required information can be entered on the
Daily Tire Record by the end of each business day, in which case the
information must be recorded in the Daily Tire Record by the end of each
business day. Where an alternative method of contemporaneous recording
is used, that record, in addition to the Daily Tire Record, must be
maintained in accordance with the record retention provisions of Section
848.305.
Section 848.304 Annual Tire Summary
a) The owner or operator shall maintain an Annual Tire Summary at the site;
such record shall include the Agency designated site number, the site
name and address and the calendar year for which the summary applies.
b) The following information relative to used and waste tires shall be
recorded in the Annual Tire Summary:
1) The weight or volume of used or waste tires received at the site
during the calendar year.
2) The weight or volume of used or waste tires transported from the
site during the calendar year.
3) The total number of used or waste tires determined in terms of
passenger tire equivalent (PTE) remaining in storage at the
conclusion of the calendar year.
4) The weight or volume of used or waste tires combusted during the
calendar year.
c) The Annual Tire Summary shall be received by the Agency on or before
January 31 of each year and shall cover the preceding calendar year.
Section 848.305 Retention of Records
Copies of all records required to be kept under this Subpart shall be retained by the owner
and operator for three years and shall be made available at the site during the normal
business hours of the operator for inspection and photocopying by the Agency.
Section 848.306 Certification
a) All records, summaries or reports submitted to the Agency as required by
this Subpart shall be signed by a person designated by the owner or
operator as responsible for preparing and reviewing such documents as
part of his or her duties in the regular course of business.
b) Any person signing a document submitted under this Part shall make the
following certification:
I certify that this document and all attachments were prepared
under my direction or supervision. Based on my inquiry of the
person or persons who manage the system, or those persons
directly responsible for gathering the information, the information
submitted is, to the best of my knowledge and belief, true,
accurate, and complete. I am aware that there are significant
penalties under Section 44 of the Environmental Protection Act
including the possibility of fine and imprisonment for knowingly
submitting false information.
SUBPART D: FINANCIAL ASSURANCE
Section 848.400 Scope and Applicability
a) This Subpart applies to owners and operators of tire storage sites and tire
disposal sites, except as otherwise provided in this Section.
b) Unless exempted by subsection (c), owners and operators shall comply
with this Subpart:
1) Prior to storing or disposing any used or waste tires, for sites
where used or waste tires are first stored or disposed on or after
January 1, 1992;
2) By January 1, 1992, for sites where used or waste tires are
disposed or stored prior to January 1, 1992.
c) Owners and operators of tire storage sites and tire disposal sites are
exempt from this Subpart with respect to the following types of sites:
1) Sites where the real estate of the site is owned by:
A) The United States or one of its agencies;
B) The State of Illinois or one of its agencies; or
C) A unit of local government.
2) Tire disposal sites with a waste disposal permit under Section 21
of the Act and 35 Ill. Adm. Code 807 or 811. If used or waste
tires are stored at the site, then the storage activities, unless
otherwise exempted, are subject to this Subpart.
3) Sites where less than 500 used or waste tires are stored at the site
and less than 50 used or waste tires have been disposed at the site,
as reported on the annual notice of activity under Section 55(d) of
the Act.
4) Sites where, as reported in the annual notice of activity, less than
5000 used or waste tires are stored at the site and less than 50 used
or waste tires have been disposed. Provided, however, that this
exemption does not apply if the owner or operator has been issued,
in any calendar year, pursuant to Section 55.5 of the Act, more
than one written notice of violation of Section 55(a), (b) or (c) of
the Act.
Section 848.401 Upgrading Financial Assurance
a) The owner or operator shall maintain financial assurance equal to or
greater than the current cost estimate calculated pursuant to Section
848.404 at all times, except as otherwise provided by subsection (b).
b) The owner or operator shall increase the total amount of financial
assurance so as to equal the current cost estimate within 90 days after any
of the following occurrences:
1) An increase in the current cost estimate;
2) A decrease in the value of a trust fund;
3) A determination by the Agency that an owner or operator no
longer meets the financial test of Section 848.415(d); or
4) Notification by the owner or operator that the owner or operator
intends to substitute alternative financial assurance, as specified in
Section 848.406, for self-insurance.
Section 848.402 Release of Financial Institution
The Agency shall release a trustee, bank, surety or other financial institution when:
a) An owner or operator substitutes alternative financial assurance such that
the total financial assurance for the site is equal to or greater than the
current cost estimate, without counting the amounts to be released; or
b) The Agency releases the owner or operator from the requirements of this
Subpart following completion of removal.
Section 848.403 Application of Proceeds and Appeal
a) The Agency may sue in any court of competent jurisdiction to enforce its
rights under financial instruments. The filing of an enforcement action
before the Board is not a condition precedent to such an Agency action,
except when this Subpart or the terms of the instrument provide otherwise.
b) As provided in Titles VIII and IX of the Act and 35 Ill. Adm. Code 103
and 104, the Board may order that an owner or operator modify a removal
plan or order that proceeds from financial assurance be applied to the
execution of a removal plan.
c) The following Agency actions may be appealed to the Board as a permit
denial pursuant to 35 Ill. Adm. Code 105:
1) A refusal to accept financial assurance tendered by the owner or
operator;
2) A refusal to release the owner or operator from the requirement to
maintain financial assurance;
3) A refusal to release excess funds from a trust;
5) A refusal to approve a reduction in the amount of a letter of credit;
7) A determination that an owner or operator no longer meets the
financial test.
Section 848.404 Removal Cost Estimate
a) The owner or operator shall submit to the Agency a written estimate of the
cost of removing all used and waste tires from the site.
1) The owner or operator shall submit the cost estimate with the
annual notice of activity pursuant to Section 55(d) of the Act.
2) The cost estimate is due on January 1 of each year, commencing
January 1, 1992.
b) The owner or operator shall revise the cost estimate whenever a change in
the removal plan increases the cost estimate.
c) The cost estimate equals the larger of the following:
1) The cost of removing all used and waste tires accumulated at the
site; or
2) The cost of removing the maximum number of used and waste
tires which the owner or operator anticipates will be accumulated
at the site at any time.
d) The owner or operator shall base the cost estimate on either:
1) Costs to the Agency under a contract to perform tire removal
actions in the area in which the site is located; or
2) Projected costs, assuming that the Agency will contract with a
third party to implement the removal plan. A third party is a
person who is neither a parent nor a subsidiary of the owner or
operator.
e) The cost estimate must, at a minimum, include all costs for all activities
necessary to remove all used and waste tires in accordance with all
requirements of this Part.
f) Once the owner or operator has completed an activity, the owner or
operator may revise the cost estimate indicating that the activity has been
completed, and zeroing that element of the cost estimate.
Section 848.406 Mechanisms for Financial Assurance
The owner or operator may utilize any of the following mechanisms to provide
financial assurance for removal of used and waste tires:
a) A trust fund (Section 848.410);
b) A letter of credit (Section 848.413);
c) Self-insurance (Section 848.415).
Section 848.407 Use of Multiple Financial Mechanisms
An owner or operator may satisfy the requirements of this Subpart by establishing more
than one financial mechanism per site. These mechanisms are limited to trust funds and
letters of credit. The mechanism must be as specified in 35 Ill. Adm. Code 848.410 and
848.413, respectively, except that it is the combination of mechanism, rather than the
single mechanism, which must provide financial assurance for an amount at least equal to
the current cost estimate. The owner or operator may use any or all of the mechanisms to
provide for removal.
Section 848.408 Use of a Financial Mechanisms for Multiple Sites
An owner or operator may use a financial assurance mechanism specified in this Subpart
to meet the requirements of this Subpart for more than one site. Evidence of financial
assurance submitted to the Agency must include a list showing, for each site, the name,
address and the amount of funds assured by the mechanism. 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 site. The
amount of funds available to the Agency must be sufficient to remove used and waste
tires from all of the owner or operator's sites. In directing funds available through a
single mechanism for the removal of any single site covered by that mechanism, the
Agency shall direct only that amount of funds designated for that site, unless the owner
or operator agrees to the use of additional funds available under that mechanism.
Section 848.410 Trust Fund
a) An owner or operator may satisfy the requirements of this Subpart by
establishing a trust fund which conforms to the requirements of this
Section and submitting an original signed duplicate of the trust agreement
to the Agency.
b) The trustee shall be an entity which has the authority to act as a trustee
and:
1) Whose trust operations are examined by the Illinois Commissioner
of Banks and Trust Companies pursuant to the Illinois Banking
Act (Ill. Rev. Stat. 1989, ch. 17, pars. 301 et seq.); or
2) Who complies with the Corporate Fiduciary Act (Ill. Rev. Stat.
1989, ch. 17, pars. 1551-1 et seq.).
c) The trust agreement must be on the forms specified in Appendix A,
Illustration A, and the trust agreement must be accompanied by a formal
certification of acknowledgment, on the form specified in Appendix A,
Illustration B.
d) Payments into the trust:
1) The owner or operator shall make a payment into the trust fund
each year during the pay-in period.
2) The pay-in period is five years. The pay-in period commences at
one of the following times, whichever is later:
A) On the date the site first receives used or waste tires; or
B) On January 1, 1992.
3) Annual payments are determined by the following formula:
Annual payment = (CE-CV)/Y
where:
CE = Current cost estimate
CV = Current value of the trust fund
Y = Number of years remaining in the pay in period.
4) The owner or operator shall make the first annual payment prior to
beginning of the pay-in period. The owner or operator shall also,
prior to the beginning of the pay-in period, submit to the Agency a
receipt from the trustee for the first annual payment.
5) Subsequent annual payments must be made no later than 30 days
after each anniversary of the first payment.
6) The owner or operator may accelerate payments into the trust fund,
or may deposit the full amount of the current cost estimate at the
time the fund is established.
7) The owner or operator shall maintain the value of the fund at no
less than the value the fund would have if annual payments were
made as specified in subsection (d)(3).
8) If the owner or operator establishes a trust fund after having used
one or more alternative mechanisms, the first payment must be in
at least the amount the fund would contain if the trust fund were
established initially and payments made as provided in subsection
(d)(3).
e) The trustee shall evaluate the trust fund annually, as of the day the trust
was created or on such earlier date as may be provided in the agreement.
The trustee shall notify the owner or operator and the Agency or the value
within 30 days after the evaluation date.
f) Release of excess funds:
1) If the value of the financial assurance is greater than the total
amount of the current cost estimate, the owner or operator may
submit a written request to the Agency for a release of the amount
in excess of the current cost estimate.
2) Within 60 days after receiving a request from the owner or
operator for a release of funds, the Agency shall instruct the trustee
to release to the owner or operator such funds as the Agency
specifies in writing to be in excess of the current cost estimate.
g) Reimbursement for removal expenses:
1) After initiating removal, an owner or operator, or any other person
authorized to perform removal, may request reimbursement for
removal expenditures, by submitting itemized bills to the Agency.
2) Within 60 days after receiving the itemized bills for removal
activities, the Agency shall determine whether the expenditures are
in accordance with the removal plan. The Agency shall instruct
the trustee to make reimbursement in such amounts as the Agency
specifies in writing as expenditures in accordance with the removal
plan.
3) If the Agency determines, based on such information as is
available to it, that the cost of removal will be greater than the
value of the trust fund, it shall withhold reimbursement of such
amounts as it determines are necessary to preserve the trust corpus
in order to accomplish removal until it determines that the owner
or operator is no longer required to maintain financial assurance
for removal. In the event the fund is inadequate to pay all claims,
the Agency shall pay claims according to the following priorities:
A) Persons with whom the Agency has contracted to perform
removal activities (first priority);
B) Persons who have completed removal authorized by the
Agency (second priority);
C) Persons who have completed work which furthered the
removal (third priority);
D) The owner or operator and related business entities (last
priority).
Section 848.413 Letter of Credit
a) An owner or operator may satisfy the requirements of this Subpart by
obtaining an irrevocable standby letter of credit which conforms to the
requirements of this Section and submitting the letter to the Agency.
b) The issuing institution shall be an entity which has the authority to issue
letters of credit and:
1) Whose letter-of-credit operations are regulated by the Illinois
Commissioner of Banks and Trust Companies; or
2) Whose deposits are insured by the Federal Deposit Insurance
Corporation.
c) Forms:
1) The letter of credit must be on the forms specified in Appendix A.
Illustration C.
2) The letter of credit must be accompanied 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: name and address of the site and the amount of funds
assured for removal from the site by the letter of credit.
d) An owner or operator who uses a letter of credit must also establish a
standby trust fund. Any amounts drawn by the Agency pursuant to the
letter of credit will be deposited in the standby trust fund. The standby
trust fund must meet the requirements of a trust fund specified in Section
848.410, except that:
1) The owner or operator shall submit a signed, duplicate original of
the trust agreement to the Agency with the letter of credit; and
2) Unless the standby trust is funded, the following are not required:
A) Payments into the trust fund.
B) Updating of Schedule A of the trust agreement to show the
current cost estimates.
C) Annual valuations as required by the trust agreement.
D) Notices of nonpayment as required by the trust agreement.
e) Conditions on which the Agency may draw on the letter of credit:
1) The Agency shall draw on the letter of credit if the owner or
operator fails to perform removal in accordance with the removal
plan.
2) The Agency shall draw on the letter of credit when the owner or
operator:
A) Abandons the site;
B) Is adjudicated bankrupt;
C) Fails to initiate removal when ordered to do so by the
Board pursuant to Title VII of the Act, or when ordered to
do so by a court of competent jurisdiction;
D) Notifies the Agency that it has initiated removal, or
initiates removal, but fails to provide removal in
accordance with the removal plan; or
E) Fails to provide additional or substitute financial assurance
when required to do so under this Subpart.
f) Amount:
1) The letter of credit must be issued in an amount at least equal to
the current cost estimate.
2) The Agency shall approve a reduction in the amount whenever the
current cost estimate decreases.
g) Term:
1) The letter of credit must be irrevocable and issued for a period of
at least one year.
2) The letter of credit must provide that the expiration date will be
automatically extended for a period of at least one year, unless, at
least 120 days before the current expiration date, the issuing
institution notifies both the owner and operator and the Agency, 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 Agency have
received the notice, as evidenced by the return receipts.
h) Cure of default and refunds:
1) The Agency shall release the financial institution if, after the
Agency is allowed to draw on the letter of credit, the owner or
operator or another person provides financial assurance for
removal from the site, unless the Agency determines that a
removal plan or the amount of substituted financial assurance is
inadequate to provide removal as required by this Part.
2)
After removal has been completed in accordance with the removal
plans and the requirements of this Part, the Agency shall refund
any unspent money which was paid to the Agency by the financial
institution.
Section 848.415
Self-Insurance for Non-commercial Sites
a)
Definitions. The following definitions are intended to assist in the
understanding of this Part and are not intended to limit the meanings of terms
in any way that conflicts with generally accepted accounting principles:
b)
Information to be Filed
An owner or operator may satisfy the financial assurance requirements of
this Part by providing the following:
1) Bond without surety promising to pay the cost estimate (subsection
(c)).
2) Proof that the owner or operator meets the financial test
(subsection (d)).
c) Bond Without Surety. An owner or operator utilizing self-insurance shall
provide a bond without surety on the forms specified in Appendix A,
Illustration D. The owner or operator shall promise to pay the current cost
estimate to the Agency unless the owner or operator provides removal in
accordance with the removal plan.
d) Financial Test
1) To pass the financial test, the owner or operator shall meet the
criteria of either subsection (d)(1)(A) or (d)(1)(B):
A) The owner or operator shall have:
i) Two of the following three ratios: a ratio of total
liabilities to net worth of less than 2.0; a ratio of the
sum of net income plus depreciation, depletion and
amortization to total liabilities of greater than 0.1;
or a ratio of current assets to current liabilities of
greater than 1.5; and
ii) Net working capital and tangible net worth each at
least six times the current cost estimate; and
iii) Tangible net worth of at least $10 million; and
iv) Assets in the United States amounting to at least 90
percent of the owner or operator's total assets and at
least six times the current cost estimate.
B) The owner or operator shall have:
i) A current rating of AAA, AA, A or BBB for its
most recent bond issuance as issued by Standard
and Poor, or a rating of Aaa, Aa, A or Baa, as
issued by Moody; and
ii) Tangible net worth at least six times the current cost
estimate; and
iii) Tangible net worth of at least $10 million; and
iv) Assets located in the United States amounting to at
least 90 percent of its total assets or at least six
times the current cost estimate.
2) To demonstrate that it meets this test, the owner or operator shall
submit the following items to the Agency:
A) A letter signed by the owner or operator's chief financial
officer and worded as specified in Appendix A, Illustration
F; and
B) A copy of the independent certified public accountant's
report on examination of the owner or operator's financial
statements for the latest completed fiscal year; and
C) A special report from the owner or operator's independent
certified public accountant to the owner or operator stating
that:
i) The accountant has compared the data which the
letter from the chief financial officer 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
ii) In connection with that procedure, no matters came
to the accountant's attention which caused the
accountant to believe that the specified data should
be adjusted.
e) Updated Information.
1) After the initial submission of items specified in subsection (d), the
owner or operator shall send updated information to the Agency
within 90 days after the close of each succeeding fiscal year.
2) If the owner or operator no longer meets the requirements of
subsection (d) the owner or operator shall send notice to the
Agency of intent to establish alternative financial assurance. The
notice must be sent by certified mail within 90 days after the end
of the fiscal year for which the year-end financial data show that
the owner or operator no longer meets the requirements.
f) Qualified Opinions. If the opinion required by subsections (d)(2)(B) and
(d)(2)(C) includes an adverse opinion or a disclaimer of opinion, the
Agency shall disallow the use of self-insurance. If the opinion includes
other qualifications, the Agency shall disallow the use of self-insurance if:
1) The qualifications relate to the numbers which are used in the
financial test; and,
2) In light of the qualifications, the owner or operator has failed to
demonstrate that it meets the financial test.
g) Parent Corporation. An owner or operator may satisfy the financial
assurance requirements of this Part by demonstrating that a corporation
which owns an interest in the owner or operator meets the financial test.
The owner or operator shall also provide a bond with the parent as surety
(Appendix A, Illustration E).
SUBPART E: TIRE REMOVAL AGREEMENTS
Section 848.501 Applicability
a) By January 1, 1992, the owner or operator of a tire disposal site shall
obtain written approval from the Agency of a tire removal agreement
submitted pursuant to this Subpart unless:
1) THE OWNER OR
OPERATOR HAS ENTERED INTO A
WRITTEN AGREEMENT TO PARTICIPATE IN A
CONSENSUAL REMOVAL ACTION UNDER SECTION
55.3(C) OF THE ACT
(Section 55.4 of the Act); or
2) The owner or operator has received a permit from the Agency
pursuant to the requirements of Subtitle G: Waste Disposal for the
disposal of solid waste at landfills; or
3) The owner or operator has submitted a complete written proposal
pursuant to Section 848.503 for a tire removal agreement to the
Agency in accordance with this Subpart by July 1, 1991, the owner
or operator has submitted all information required or necessary to
process the submission, and the Agency has not made a
determination with respect to the submittal.
b) The requirements of subsection (a) shall not apply if the owner or operator
has removed all used and waste tires from the tire disposal site prior to
January 1, 1992. An owner or operator may obtain approval of a tire
removal agreement for a specific area within a facility; however, the
remainder of the facility must be operated under a permit issued by the
Agency under 35 Ill. Adm. Code: Subtitle G: Waste Disposal for the
disposal of solid waste in landfills or be subject to a consensual removal
action under Section 55.3(c) of the Act.
c) For tire disposal sites at which used or waste tires are first disposed after
January 1, 1992, prior to disposing any used or waste tires the owner or
operator shall obtain a permit from the Agency pursuant to the
requirements of 35 Ill. Adm. Code: Subtitle G: Waste Disposal for the
disposal of solid wastes at landfills.
Section 848.502 Removal Performance Standard
THE OWNER OR OPERATOR OF A TIRE DISPOSAL SITE REQUIRED TO FILE
AND RECEIVE APPROVAL OF A TIRE REMOVAL AGREEMENT UNDER THIS
SUBPART E SHALL REMOVE USED OR WASTE TIRES FROM THE SITE IN A
MANNER THAT:
a) MINIMIZES THE NEED FOR FURTHER MAINTENANCE;
b) REMOVES ALL USED AND WASTE TIRES AND ANY RESIDUES
THEREFROM; AND
c) PROTECTS HUMAN HEALTH DURING THE REMOVAL AND POST
REMOVAL PERIODS
.
(Section 55.4 of the Act)
Section 848.503 Contents of Proposed Tire Removal Agreements
a) A proposed TIRE REMOVAL AGREEMENT SUBMITTED TO THE
AGENCY for approval under this Subpart E SHALL INCLUDE THE
FOLLOWING:
1) A COMPLETE INVENTORY OF THE TIRES LOCATED ON
THE SITE.
2) A DESCRIPTION OF HOW THE REMOVAL WILL BE
CONDUCTED IN ACCORDANCE WITH Section 848.502.
3) A DESCRIPTION OF THE METHODS TO BE USED DURING
REMOVAL INCLUDING, BUT NOT LIMITED TO, THE
METHODS FOR REMOVING, TRANSPORTING,
PROCESSING, STORING OR DISPOSING OF TIRES AND
RESIDUES, AND THE OFFSITE FACILITIES TO BE USED.
4) A DETAILED DESCRIPTION OF OTHER ACTIVITIES
NECESSARY DURING THE REMOVAL PERIOD TO ENSURE
THAT THE REQUIREMENTS OF Section 848.502 ARE MET.
5) A SCHEDULE OF COMPLETING THE REMOVAL OF TIRES
FROM THE SITE, AS REQUIRED IN Section 848.504. (Section
55.4 of the Act)
b) The owner or operator may propose amendment of the tire removal
agreement at any time prior to notification of the completion of partial or
final removal of tires from the facility. To request a change in an
approved tire removal permit, an owner or operator shall submit a written
request to the Agency. The written request must include a copy of the
amended tire removal agreement for approval by the Agency.
c) Nothing in this Section shall preclude the owner or operator from
removing used or waste tires in accordance with the approved partial or
final tire removal agreement before certification of completion of partial
or final removal.
Section 848.504 Time Allowed for Tire Removal
a) EACH APPROVED TIRE REMOVAL AGREEMENT SHALL
INCLUDE A SCHEDULE BY WHICH THE OWNER OR OPERATOR
MUST COMPLETE THE REMOVAL ACTIVITIES. THE TOTAL
TIME ALLOWED SHALL NOT EXCEED THE FOLLOWING:
1) ONE YEAR IF THE SITE CONTAINS 1,000 TIRES OR LESS;
2) TWO YEARS IF THE SITE CONTAINS MORE THAN 1,000
TIRES BUT LESS THAN 10,000 TIRES;
3) FIVE YEARS IF THE SITE CONTAINS 10,000 OR MORE
TIRES.
b) THE OWNER OR OPERATOR MAY APPLY FOR AN EXTENSION
OF TIME, NO LATER THAN 90 DAYS BEFORE THE END OF THE
TIME PERIOD SPECIFIED IN THE AGREEMENT. THE AGENCY
SHALL NOT GRANT SUCH AN EXTENSION UNLESS IT
DETERMINES THAT THE OWNER OR OPERATOR HAS
PROCEEDED TO CARRY OUT THE AGREEMENT WITH ALL DUE
DILIGENCE. THE REQUESTED EXTENSION OF TIME MAY NOT
EXCEED 3 YEARS, AND THE AGENCY MAY APPROVE THE
REQUEST AS SUBMITTED OR MAY APPROVE A LESSER
AMOUNT OF TIME if the removal activities can be completed within
such lesser amount of time. (Section 55.4 of the Act)
Section 848.505 Removal Plan
a) The removal plan is the approved tire removal agreement for the site, if
one has been approved. Otherwise, the removal plan is the proposed tire
removal agreement.
b) An owner or operator who has provided financial assurance based on a
proposed agreement shall provide substitute financial assurance based on
the approved plan within 90 days after the Agency approves a tire removal
agreement. This may consist of substitute financial assurance, or a letter
from the financial institution acknowledging receipt of the approved plan
and indicating no objection.
Section 848.506 Initiation of Tire Removal
a) Any owner or operator who is required to obtain financial assurance under
this Subpart shall submit a proposed tire removal agreement to the Agency
that satisfies Sections 848.502 - 848.505 within 30 days after the date on
which any tire disposal site or tire storage site receives the known final
volume of used or waste tires or, if there is a reasonable possibility that
the tire disposal site or tire storage site will receive additional used or
waste tires, no later than one year after the date on which the site received
the most recent volume of used or waste tires. If the owner or operator of
a tire storage site or tire disposal site demonstrates to the Agency that the
site has the capacity to receive additional used or waste tires and that the
owner or operator has taken and will continue to take all steps to prevent
threats to human health and the environment, the Agency shall approve an
extension to this one-year limit.
b) The owner or operator shall begin removal of used and waste tires in
accordance with the approved tire removal agreement within 30 days after
written Agency approval of the tire removal agreement unless the tire
removal agreement specifies otherwise.
c) The Agency shall have authority to approve a later date for initiation of
tire removal in a tire removal agreement if:
1) the owner or operator demonstrates to the Agency that a binding
contractual relationship exists under which the owner or operator
will remove all used and waste tires from the site within two years;
or
2) other factors relative to operation of the site necessitate a later date
for initiating removal of used and waste tires.
Section 848.507 Certification of Removal Completion
WITHIN 60 DAYS AFTER THE COMPLETION OF REMOVAL ACTIVITIES
UNDER AN APPROVED tire removal AGREEMENT under this Subpart E, THE
OWNER OR OPERATOR SHALL SUBMIT TO THE AGENCY A CERTIFICATION
THAT THE SITE OR THE AFFECTED PORTION OF THE SITE subject to a tire
removal agreement HAS BEEN CLEARED OF TIRES IN ACCORDANCE
WITH THE APPROVED tire removal AGREEMENT. (Section 55.4 of the Act)
Section 848.508 Agency Approval
FOR A
SITE AT WHICH THE OWNER OR OPERATOR IS PROPOSING TO
PROCEED WITH REMOVAL under a tire removal agreement, rather than obtaining a
permit under 35 Ill. Adm. Code: Subtitle G: Waste Disposal for the disposal of solid
waste in a landfill, THE AGENCY SHALL APPROVE, MODIFY OR DISAPPROVE A
PROPOSED AGREEMENT WITHIN 90 DAYS OF RECEIVING IT. IF THE
AGENCY DOES NOT APPROVE THE AGREEMENT, THE AGENCY SHALL
PROVIDE THE OWNER OR OPERATOR WITH A WRITTEN STATEMENT OF
REASONS FOR THE REFUSAL, AND THE OWNER OR OPERATOR SHALL
MODIFY THE AGREEMENT OR SUBMIT A NEW AGREEMENT FOR APPROVAL
WITHIN 30 DAYS AFTER RECEIVING THE STATEMENT. THE AGENCY SHALL
APPROVE OR MODIFY THE SECOND PROPOSED AGREEMENT WITHIN 60
DAYS. IF THE AGENCY MODIFIES THE SECOND PROPOSED AGREEMENT,
THE AGREEMENT AS MODIFIED SHALL BECOME THE APPROVED
AGREEMENT. (Section 55.4 of the Act)
Section 848.509 Board Review
MODIFICATION OF OR REFUSAL TO MODIFY A proposed tire removal
AGREEMENT SUBMITTED BY AN OWNER OR OPERATOR PROPOSING TO
PROCEED WITH REMOVAL under a tire removal agreement IS A PERMIT DENIAL
FOR PURPOSES OF appeal pursuant to 35 Ill. Adm. Code 105. (Section 55.4 of the
Act)
SUBPART F: TIRE TRANSPORTATION REQUIREMENTS
Section 848.601 Tire Transportation Prohibitions
a) Except as provided in Subsection (c), no person shall transport more than
20 used or waste tires in a vehicle unless the following requirements are
met.
1) The owner or operator has registered the vehicle with the Agency
in accordance with this Subpart, received approval of such
registration from the Agency, and such registration is current, valid
and in effect.
2) The owner or operator displays a placard on the vehicle, issued by
the Agency following registration, in accordance with the
requirements of this Subpart.
b) No person shall provide, deliver or transport used or waste tires to a tire
transporter for transport unless the transporter's vehicle displays a placard
issued by the Agency under this Subpart identifying the transporter as a
registered tire hauler.
Section 848.602 Tire Transportation Registrations
a) Tire transportation registrations shall be made on application forms
prescribed by the Agency which as a minimum shall require the following
information:
1) Name, address, telephone number and location of the vehicle
owner(s) and operator(s).
2) A description of the number and types of vehicles to be used.
3) An agreement by the vehicle owner(s) and operator(s) that:
A) Tire loading, transportation and unloading will be
conducted in compliance with all applicable state and
federal laws and regulations.
B) No tires shall be transported with other wastes on one
vehicle if such could result in a hazardous combination
likely to cause explosion, fire, or release of a dangerous or
toxic gas, or in violation of any applicable state or federal
law and regulation.
C) The equipment and procedures to be used shall be proper
for the tire transportation to be safe for the haulers,
handlers, and others, and meet the requirements of all other
applicable state and federal laws and regulations.
b) All tire transporter registrations shall be signed by the owner(s) and
operator(s) of the vehicle; or, in the name of the owner and operator, by
the owner's and operator's duly authorized agent when accompanied by
evidence of authority to sign the application.
Section 848.603 Agency Approval of Registrations
a) Tire transporter registration applications shall be deemed to be filed on the
date of initial receipt by the Agency of a properly completed application
on the form prescribed.
b) If the Agency fails to take final action approving or denying approval of
this registration within 90 days from the filing of the completed
application, the applicant may deem the registration approval granted for a
period of one calendar year commencing on the 91st day after the
application was filed.
c) The Agency shall be deemed to have taken final action on the date that the
notice of final action is mailed.
d) The Agency shall require the application to be complete and consistent
with the provisions of the Act and Board regulations and may undertake
such investigations and request the applicant to furnish such proof as it
deems necessary to verify the information and statements made in the
application. If the application is complete and the approval thereof will
not cause a violation of the Act or Board regulations, the Agency shall
approve the registration.
e) In approving tire transporter registrations hereunder, the Agency may
impose such conditions as may be necessary to accomplish the purposes of
the Act and the Board regulations.
f) The applicant may deem any conditions imposed by the Agency as a
denial of approval of the registration for purposes of review pursuant to
Section 40 of the Act.
g) A tire transporter registration approved hereunder is automatically
modified to include any relevant change in the Act or Board regulations.
The Agency shall revise any tire transporter registration issued by the
Agency under this Part to make the registration compatible with any such
relevant changes and so notify the registrant. Failure of the Agency to
issue a revised registration shall not excuse the registrant from compliance
with any such change.
h) No tire transporter registration is transferable from one person to another.
A tire transporter registration is personal to the person(s) named in the tire
transporter registration.
i) Violation of any conditions or failure to comply with any provisions of the
Act or with any Board regulation shall be grounds for sanctions as
provided in the Act, including revocation of the registration as herein
provided and the denial of applications for renewal.
Section 848.604 Registration No Defense
The existence of an approved tire transporter registration under this Part shall not provide
the transporter with a defense to a violation of the Act or Board regulations, except for
hauling used or waste tires without an approved tire transporter registration.
Section 848.605 Duration and Renewal
a) All registrations approved hereunder shall be effective for a period of two
years from the date of approval and are renewable, except as provided in
Section 848.603(i).
b) Applications for registration renewal shall be made 90 days prior to the
expiration date of the registration on the forms prescribed by the Agency.
Section 848.606 Vehicle Placarding
a) Upon approval of a registration as a tire transporter, the owner or operator
of any vehicle registered to transport used or waste tires shall place a
placard on opposite sides of the vehicles which displays a number issued
by the Agency following the words "Registered Tire Transporter:
(number)."
b) Registered tire transporter numbers and letters shall be removable only by
destruction. Directly adjacent to the words and number, the vehicle owner
and operator shall display a seal furnished by the Agency which shall
designate the date on which the registration expires.
Section 848.APPENDIX A Financial Assurance Forms
Section 848.ILLUSTRATION A Trust Agreement
TRUST AGREEMENT
Trust Fund Number __________________
Trust Agreement, the "Agreement," entered into as of the ______ day of
___________________, by and between _____________________, a
_____________________, the "Grantor," and ________________________, the
"Trustee."
Whereas, the Illinois Pollution Control Board (IPCB), has established certain regulations
applicable to the Grantor, requiring that an owner or operator of a used or waste tire
storage or disposal site provide assurance that funds will be available when needed for
removal of used and waste tires from the site.
Whereas, the Grantor has elected to establish a trust to provide all or part of such
financial assurance for the sites identified in this Agreement, and/or to serve as a standby
trust fund.
Whereas, the Grantor, acting through its duly authorized officers, has selected the Trustee
to be the trustee under this Agreement, and the Trustee is willing to act as trustee.
Whereas, Trustee is an entity which has authority to act as a trustee and whose trust
operations are regulated by the Illinois Commissioner of Banks & Trust Companies or
who complies with the Corporate Fiduciary Act (Ill. Rev. Stat. 1989, ch. 17, par.
1551-1 et seq.). (Line through any condition which does not apply.)
Now, Therefore, the Grantor and the Trustee agree as follows:
Section 1. Definitions. As used in this Agreement:
(a) The term "Grantor" means the owner or operator who enters into this Agreement
and any successors or assigns of the owner or operator.
(b) The term "Trustee" means the Trustee who enters into this Agreement and any
successor Trustee.
Section 2. Identification of Sites and Cost Estimates. This Agreement pertains to the
sites and cost estimates identified on attached Schedule A (on Schedule A, list the name
and address, and initial cost estimate of each site for which financial assurance is
demonstrated by this Agreement).
Section 3. Establishment of Fund. The Grantor and the Trustee hereby establish a
trust fund, the "Fund," for the benefit of the IEPA. The Grantor and the Trustee intend
that no other third party have access to the Fund except as provided in this Agreement.
The Fund is established initially as consisting of the property, which is acceptable to the
Trustee, described in Schedule B to this Agreement. Such property and any other
property subsequently transferred to the Trustee is referred to as the Fund, together with
all earnings and profits on the Fund, less any payments or distributions made by the
Trustee pursuant to this Agreement. The Fund shall be held by the Trustee, in trust, as
provided in this Agreement. The Trustee shall not be responsible nor shall it undertake
any responsibility for the amount or adequacy of, nor any duty to collect from the
Grantor, any payments necessary to discharge any liabilities of the Grantor.
Section 4. Payment for Removal. The Trustee shall make payments from the Fund
as the IEPA shall direct, in writing, to provide for the payment of the costs of removal at
the sites covered by this Agreement. The Trustee shall reimburse the Grantor or other
persons as specified by the IEPA from the Fund for removal expenditures in such
amounts as the IEPA shall direct in writing. In addition, the Trustee shall refund to the
Grantor such amounts as the IEPA specifies in writing. Upon refund, such funds shall no
longer constitute part of the Fund.
Section 5. Payments Comprising the Fund. Payments made to the Trustee for the
Fund shall consist of cash or securities acceptable to the Trustee.
Section 6. Trust Management. The Trustee shall invest and reinvest the principal
and income of the Fund and keep the Fund invested as a single fund, without distinction
between principal and income, in accordance with general investment policies and
guidelines which the Grantor may communicate in writing to the Trustee from time to
time, subject, however, to the provisions of this Section. In investing, reinvesting,
exchanging, selling, and managing the Fund, the Trustee shall discharge his duties with
respect to the trust fund solely in the interest of the beneficiary and with the care, skill,
prudence, and diligence under the circumstances then prevailing which persons of
prudence, acting in a like capacity and familiar with such matters, would use in the
conduct of an enterprise of a like character and with like aims; except that;
(a) Securities or other obligations of the Grantor, or any other owner or operator of
the sites, or any of their affiliates as defined in Section 80a-2(a) the Investment
Company Act of 1940, as amended (15 U.S.C. 80a-2(a)) shall not be acquired or
held, unless they are securities or other obligations of the Federal government or
the State of Illinois;
(b) The Trustee is authorized to invest the Fund in time or demand deposits of the
Trustee, to the extent insured by the Federal Deposit Insurance Corporation.
(c) The Trustee is authorized to hold cash awaiting investment or distribution
uninvested for a reasonable time and without liability for the payment of interest
thereon.
Section 7. Commingling and Investment. The Trustee is expressly authorized in its
discretion:
(a) To transfer from time to time any or all of the assets of the Fund to any common,
commingled or collective trust fund created by the Trustee in which the Fund is
eligible to participate, subject to all of the provisions thereof, to be commingled
with the assets of other trusts participating therein; and
(b) To purchase shares in any investment company registered under the Investment
Company Act of 1940 (15 U.S.C. 80a-1 et seq.) including one which may be
created, managed, underwritten or to which investment advice is rendered or the
shares of which are sold by the Trustee. The Trustee may vote such shares in its
discretion.
Section 8. Express Powers of Trustee. Without in any way limiting the powers and
discretion conferred upon the Trustee by the other provisions of this Agreement or by
law, the Trustee is expressly authorized and empowered:
(a) To sell, exchange, convey, transfer or otherwise dispose of any property held by
it, by public or private sale. No person dealing with the Trustee shall be bound to
see to the application of the purchase money or to inquire into the validity or
expedience of any such sale or other disposition;
(b) To make, execute, acknowledge and deliver any and all documents of transfer and
conveyance and any and all other instruments that may be necessary or
appropriate to carry out the powers granted in this Agreement;
(c) To register any securities held in the Fund in its own name or in the name of a
nominee and to hold any security in bearer form or in book entry, or to combine
certificates representing such securities with certificates of the same issue held by
the Trustee in other fiduciary capacities, or to deposit or arrange for the deposit of
such securities in a qualified central depositary even though, when so deposited,
such securities may be merged and held in bulk in the name of the nominee of
such depositary with other securities deposited therein by another person, or to
deposit or arrange for the deposit of any securities issued by the United States
Government, or any agency or instrumentality thereof, with a Federal Reserve
Bank, but the books and records of the Trustee shall at all times show that all such
securities are part of the Fund;
(d) To deposit any cash in the Fund in interest-bearing accounts maintained or
savings certificates issued by the Trustee, in its separate corporate capacity, or in
any other banking institution affiliated with the Trustee, to the extent insured by
the Federal Deposit Insurance Corporation; and
(e) To compromise or otherwise adjust all claims in favor of or against the Fund.
Section 9. Taxes and Expenses. All taxes of any kind that may be assessed or levied
against or in respect of the Fund and all brokerage commissions incurred by the Fund
shall be paid from the Fund. All other expenses incurred by the Trustee, to the extent not
paid directly by the Grantor, and all other proper charges and disbursements of the
Trustee shall be paid from the Fund.
Section 10. Annual Valuation. The Trustee shall annually furnish to the Grantor and
to the IEPA a statement confirming the value of the Trust. The evaluation day shall be
each year on the ______ day of _________. Any securities in the Fund shall be valued at
market value as of the evaluation day. The Trustee shall mail the evaluation statement to
the Grantor and the IEPA within 30 days after the evaluation day. The failure of the
Grantor to object in writing to the Trustee within 90 days after the statement has been
furnished to the Grantor and the IEPA shall constitute a conclusively binding assent by
the Grantor, barring the Grantor from asserting any claim or liability against the Trustee
with respect to matters disclosed in the statement.
Section 11. Advice of Counsel. The Trustee may from time to time consult with
counsel, who may be counsel to the Grantor, with respect to any question arising as to the
construction of this Agreement or any action to be taken hereunder. The Trustee shall be
fully protected, to the extent permitted by law, in acting upon the advice of counsel.
Section 12. Trustee Compensation. The Trustee shall be entitled to reasonable
compensation for its services as agreed upon in writing from time to time with the
Grantor.
Section 13. Successor Trustee. The Trustee may resign or the Grantor may replace the
Trustee, but such resignation or replacement shall not be effective until the Grantor has
appointed a successor trustee and this successor accepts the appointment. The successor
trustee shall have the same powers and duties as those conferred upon the Trustee
hereunder. Upon the successor trustee's acceptance of the appointment, the Trustee shall
assign, transfer and pay over to the successor trustee the funds and properties then
constituting the Fund. If for any reason the Grantor cannot or does not act in the event of
the resignation of the Trustee, the Trustee may apply to a court of competent jurisdiction
for the appointment of a successor trustee or for instructions. The successor trustee shall
specify the date on which it assumes administration of the trust in a writing sent to the
Grantor, the IEPA and the present Trustee by certified mail ten days before such change
becomes effective. Any expenses incurred by the Trustee as a result of any of the acts
contemplated by this Section shall be paid as provided in Section 9.
Section 14. Instructions to the Trustee. All orders, requests, and instructions by the
Grantor to the Trustee shall be in writing, signed by such persons as are designated in the
attached Exhibit A or such other designees as the Grantor may designate by amendment
to Exhibit A. The Trustee shall be fully protected in acting without inquiry in accordance
with the Grantor's orders, requests, and instructions. All orders, requests, and
instructions by the IEPA to the Trustee shall be in writing, signed by the IEPA Director
or his designees, and the Trustee shall act and shall be fully protected in acting in
accordance with such orders, requests and instructions. The Trustee shall have the right
to assume, in the absence of written notice to the contrary, that no event constituting a
change or a termination of the authority of any person to act on behalf of the Grantor or
IEPA hereunder has occurred. The Trustee shall have no duty to act in the absence of
such orders, requests and instructions from the Grantor and/or IEPA, except as provided
in this Agreement.
Section 15. Notice of Nonpayment. The Trustee shall notify the Grantor and the
IEPA, by certified mail within ten days following the expiration of the 30-day period
after the anniversary of the establishment of the Trust, if no payment is received from the
Grantor during the period. After the pay-in period is completed, the Trustee shall not be
required to send a notice of nonpayment.
Section 16. Amendment of Agreement. This Agreement may be amended by an
instrument in writing executed by the Grantor, the Trustee and the IEPA Director, or by
the Trustee and the IEPA Director if the Grantor ceases to exist.
Section 17. Irrevocability and Termination. Subject to the right of the parties to
amend this Agreement as provided in Section 16, this Trust shall be irrevocable and shall
continue until terminated at the written agreement of the Grantor, the Trustee and the
IEPA Director, or by the Trustee and the IEPA, if the Grantor ceases to exist. Upon
termination of the Trust, all remaining trust property, less final trust administration
expenses, shall be delivered to the Grantor.
Section 18. Immunity and Indemnification. The Trustee shall not incur personal
liability of any nature in connection with any act or omission, made in good faith, in the
administration of this Trust, or in carrying out any directions by the Grantor or the IEPA
Director issued in accordance with this Agreement. The Trustee shall be indemnified and
saved harmless by the Grantor or from the Trust Fund, or both, from and against any
personal liability to which the Trustee may be subjected by reason of any act or conduct
in its official capacity, including all expenses reasonably incurred in its defense in the
event the Grantor fails to provide such defense.
Section 19. Choice of Law. This Agreement shall be administered, construed and
enforced according to the laws of the State of Illinois.
Section 20. Interpretation. As used in this Agreement, words in the singular include
the plural and words in the plural include the singular. The descriptive headings for each
Section of this Agreement shall not affect the interpretation or the legal efficacy of this
Agreement.
In Witness Whereof the parties have caused this Agreement to be executed by their
respective officers duly authorized and their corporate seals to be
hereunto affixed and attested as of the date first above written.
Attest: Signature of
Grantor____________________________________________________
Typed Name____________________________________________________
Title____________________________________________________
Seal
Attest: Signature of
Trustee____________________________________________________
Typed Name____________________________________________________
Title____________________________________________________
Seal
Section 848.Appendix A Financial Assurance Forms
Illustration B Certificate of Acknowledgment
CERTIFICATE OF ACKNOWLEDGMENT
State of ________
)
)
SS
County of ________
)
On this ____ day of ________, ____ before me personally came ________________
(owner or operator) to me known, who, being by me duly sworn, did depose and say that
she/he resides at ________________________ (address), that she/he is
__________________________ (title) of ______________________ (corporation), the
corporation described in and which executed the above instrument; that she/he knows the
seal of said corporation; that the seal affixed to such instrument is such corporate seal;
that it was so affixed by order of the Board of Directors of said corporation, and that
she/he signed her/his name thereto by like order.
____________________ Notary Public
My Commission Expires ________________
Section 848.Appendix A Financial Assurance Forms
llustration C Irrevocable Standby Letter of Credit
IRREVOCABLE STANDBY LETTER OF CREDIT
Director
Illinois Environmental Protection Agency
2200 Churchill Road
Springfield, Illinois 62706
Dear Sir or Madam:
We have authority to issue letters of credit. Our letter-of-credit operations are regulated
by the Illinois Commissioner of Banks and Trusts or our deposits are insured by the
Federal Deposit Insurance Corporation. (Omit language which does not apply)
We hereby establish our Irrevocable Standby Letter of Credit No. ______ in your favor,
at the request and for the account of ________________ up to the aggregate amount of
________ U.S. dollars ($________), available upon presentation of
1. your sight draft, bearing reference to this letter of credit No. _________; and
2. your signed statement reading as follows: "I certify that the amount of the draft is
payable pursuant to regulations issued under authority of the Environmental
Protection Act (Ill. Rev. Stat. 1989, ch. 111 1/2, par. 1001 et seq.) and 35 Ill.
Adm. Code 848.413(e)."
This letter of credit is effective as of __________________________ and will expire on
________; but such expiration date will be automatically extended for a period of
__________ on ________ and on each successive expiration date, unless, at least 120
days before the current expiration date, we notify both you and ________ by certified
mail that we have decided not to extend this letter of credit beyond the current expiration
date. In the event you are so notified, any unused portion of the credit shall be available
upon presentation of your sight draft for 120 days after the date of receipt by both you
and __________ as shown on the signed return receipts.
Whenever this letter of credit is drawn on under and in compliance with the terms of this
credit, we shall duly honor such draft upon presentation to us, and we shall deposit the
amount of the draft directly into the standby trust fund ________ in accordance with your
instructions.
This letter of credit is governed by the Uniform Commercial Code (Ill. Rev. Stat. 1989,
ch. 26, pars. 1-101 et seq.).
Signature
____________________________________________________
Typed Name
____________________________________________________
Title
____________________________________________________
Date
____________________________________________________
Name and address of issuing institution
____________________________________________________
____________________________________________________
This credit is subject to____________________________
____________________________________________________
____________________________________________________
Section 848.Appendix A Financial Assurance Forms
ILLUSTRATION D Owner or Operator's Bond Without Surety
OWNER OR OPERATOR'S BOND WITHOUT SURETY
Date bond executed:
____________________________________________________
Effective date:
____________________________________________________
Owner or operator:
____________________________________________________
Owner or operator's address:
____________________________________________________
____________________________________________________
Site:
____________________________________________________
Site address:
____________________________________________________
____________________________________________________
Penal sum: $
____________________________________________________
The owner or operator promises to pay the penal sum to the Illinois Environmental
Protection Agency unless the Owner or operator provides removal in accordance with the
removal plan for the site.
Owner or operator:
____________________________________________________
Signature
____________________________________________________
Typed Name
____________________________________________________
Title
____________________________________________________
Date
____________________________________________________
Corporate seal
Section 848.Appendix A Financial Assurance Forms
ILLUSTRATION E Owner or Operator's Bond With Parent Surety
OWNER OR OPERATOR'S BOND WITH PARENT SURETY
Date bond executed:
____________________________________________________
Effective date:
____________________________________________________
Surety:
____________________________________________________
Surety's address:
____________________________________________________
Owner or operator:
____________________________________________________
Owner or operator's address:
____________________________________________________
Site:
____________________________________________________
Site address:
____________________________________________________
Penal sum:
$________________________________________________
The Owner or operator and Surety promise to pay the above penal sum to the Illinois
Environmental Protection Agency ("IEPA") unless the Owner or operator provides
removal in accordance with the removal plan for the site. To the payment of this
obligation the Owner or operator and Surety jointly and severally bind themselves, their
heirs, executors, administrators, successors and assigns.
Whereas the Owner or operator is required under 35 Ill. Adm. Code 848.Subpart D to
provide financial assurance for removal; and
Whereas the Owner or operator and Surety agree that this bond shall be governed by the
laws of the State of Illinois; and
Whereas the Surety is a corporation which owns an interest in the Owner or operator;
The Surety shall pay the penal sum to the IEPA if, during the term of the bond, the
Owner or operator fails to provide removal for any site in accordance with the removal
plan for that site as guaranteed by this bond. The Owner or operator fails to so provide
when the Owner or operator:
a) Abandons the site;
b) Is adjudicated bankrupt;
c) Fails to initiate removal when ordered to do so by the Board or a court of
competent jurisdiction; or
d) Notifies the Agency that it has initiated removal, or initiates removal, but
fails to remove used and waste tires in accordance with the removal plan.
e) Fails to provide additional or substitute financial assurance when required
to do so under this Subpart.
The Surety shall pay the penal sum of the bond to the IEPA within 30 days after the
IEPA mails notice to the Surety that the Owner or operator has failed to so provide
removal. Payment shall be made by check or draft payable to the State of Illinois.
In Witness Whereof, the Owner or operator and Surety have executed this bond and have
affixed their seals on the date set forth above.
The persons whose signatures appear below certify that they are authorized to execute
this surety bond on behalf of the Owner or operator and Surety.
Owner or Operator
____________________________________________________
Surety
____________________________________________________
Signature
____________________________________________________
Name
____________________________________________________
Typed Name
____________________________________________________
Address
____________________________________________________
Title
____________________________________________________
State of Incorporation
____________________________________________________
Date
____________________________________________________
Signature
____________________________________________________
Typed Name
____________________________________________________
Title
____________________________________________________
Corporate seal - Corporate seal
Section 848.Appendix A Financial Forms
ILLUSTRATION F Letter from Chief Financial Officer
LETTER FROM CHIEF FINANCIAL OFFICER
Director
Illinois Environmental Protection Agency
2200 Churchill Road
Springfield, Illinois 62706
Dear Sir or Madam:
I am chief financial officer of____________________________________________.
This letter is in support of this firm's use of the financial test to demonstrate financial
assurance pursuant to 35 Ill. Adm. Code 848.415.
This letter is to demonstrate financial assurance for the following sites:
Owner or operator:
____________________________________________________
Name:
____________________________________________________
Address:
____________________________________________________
City:
____________________________________________________
Current cost estimate:
$___________________________________________________
Owner or Operator:
____________________________________________________
Name:
____________________________________________________
Address:
____________________________________________________
City:
____________________________________________________
Current cost estimate:
$___________________________________________________
Please attach a separate page if more space is needed for all facilities.
Attached is an Owner or operator's Bond without Surety or an Owner or operator's Bond
with Parent Surety for the current cost estimate for each site. (Strike inapplicable
language.)
Financial Test
Alternative I
1. Sum of current cost estimates (total of all cost estimates shown in paragraphs
above)
$ _____________________________________________
2. Total liabilities (if any portion of the cost estimates is included in total liabilities,
you may deduct the amount of that portion from this line and add that amount to
lines 3 and 4)
$ ______________________________________________
3. Tangible net worth
$ _____________________________________________
4. Net worth
$ _____________________________________________
5. Current assets
$ _____________________________________________
6. Current liabilities
$ _____________________________________________
7. Net working capital (line 5 minus line 6)
$ _____________________________________________
8. The sum of net income plus depreciation, depletion, and amortization
$ _____________________________________________
9. Total assets in U.S. (required only if less than 90 percent of firm's assets are
located in the U.S.)
$ _____________________________________________
Yes
No
10. Is line 3 at least $10 million?______________________________
11. Is line 3 at least 6 times line 1?_____________________________
12. Is line 7 at least 6 times line 1?_____________________________
13. Are at least 90 percent of firm's assets located in the U.S.? If not, complete line
14.__________________________________
14. Is line 9 at least 6 times line 1?_____________________________
15. Is line 2 divided by line 4 less than 2.0?______________________
16. Is line 8 divided by line 2 greater than 0.1?___________________
17. Is line 5 divided by line 6 greater than 1.5?___________________
Signature
________________________________________________
Typed name
________________________________________________
Title
________________________________________________
Date
________________________________________________
Financial Test
Alternative II
1. Sum of current cost estimates (total of all cost estimates shown in paragraphs
above)
$ ________________________________________________
2. Current bond rating of most recent issuance of this firm and name of rating
service
________________________________________________
3. Date of issuance of bond
________________________________________________
4. Date of maturity of bond
________________________________________________
5. Tangible net worth (if any portion of the cost estimate is included in"total
liabilities" on your firm's financial statements, you may add the amount of that
portion to this line)
$ ________________________________________________
6. Total assets in U.S. (required only if less than 90 percent of firm's
assets are located in the U.S.)
$ ________________________________________________
Yes
No
7. Is line 5 at least $10 million?______________________________
8. Is line 5 at least 6 times line 1?_____________________________
9. Are at least 90 percent of firm's assets located in the U.S.? If not, complete line
10. __________________________________
10. Is line 6 at least 6 times line 1?_____________________________
Signature
____________________________________________________
Typed Name
____________________________________________________
Title
____________________________________________________
Date
____________________________________________________
