ILLINOIS POLLUTION CONTROL BOARD
    March
    14,
    1991
    IN THE MATTER OF:
    )
    )
    R90-9
    (Docket A)
    USED AND WASTE TIRE REGULATION
    )
    (Docket B)
    (35 ILL.
    ADM. CODE 848)
    )
    (Rulemaking)
    PROPOSED RULE.
    SECOND NOTICE.
    OPINION AND ORDER OF THE BOARD
    (by J.
    C. Marlin):
    This matter is before the Board upon the Illinois
    Environmental Protection Agency’s (“Agency”)
    Proposal filed April
    6,
    1990,
    to regulate the storage, disposal, processing and
    transportation of used and waste tires.
    The Agency substantially
    amended its proposal
    in filings denoted as public comments on
    August
    9,
    1990 and again on October 26,
    1990.
    The Board today
    decides to send the Agency’s proposal to Second Notice for the
    purpose of submitting the rule to the legislature’s Joint
    Committee on Administrative Rules
    (JCAR).
    Certain portions of
    the proposal will be further considered
    in subdocket
    B, which the
    Board creates by its Order today.
    PROCEDURAL HISTORY
    The Agency filed its initial proposal pursuant to Section
    55.2(a)
    of the Illinois Environmental Protection Act
    (“Act”),
    Ill. Rev. Stat.
    1989,
    ch. 111 1/2, par.
    1055.2,
    as amended by
    P.A.
    86-452.
    Section 55.2 of the Act requires the Agency to
    submit such a proposal by July
    1,
    1990 and that the Board adopt
    such a proposal within one year.
    On April
    12,
    1990 the Board
    accepted the proposal for hearing, thereby beginning the
    calculation of time,
    pursuant to Section 28 of the Act, within
    which it must decide whether an Economic Impact Study
    (“EcIS”)was
    necessary for the proposal.
    On April 26,
    1990 the Board acted to
    send the Agency’s proposal to First Notice, without ruling upon
    its merits.
    The proposal was published in the Illinois Register
    on Nay 25,
    1990.
    14
    Ill. Reg.
    7763
    (Nay 25,
    1990)
    .
    The Agency’s
    filings of August
    9 and October 26, 1990
    (PC14), which submitted
    a substantially amended proposal for consideration,
    restarts the
    time frame
    in which the Board must act pursuant to Section 55.2
    of the Act.
    Economic Impact Statement Determination
    On June 7,
    1990, the Board decided the proposal did not
    require an EcIS citing the Illinois Department of Energy and
    Natural Resources’
    (DENR) comments
    (PC1)
    that
    “a formal economic
    impact study is not critical” to the proceeding.
    The DENR
    further stated that the body of economic information developed
    in
    120—113
    2
    the legislative process which led to the enactment of Section
    55.2 of the Act is available for consideration by the Board.
    The
    Agency adopted a neutral position regarding the determination
    (PC2).
    The Board concurred with DENR’s reasoning.
    The
    Board
    also notes that considerable economic information was developed
    in the prior dockets concerning this topic in R88-12,
    12
    Ill.
    Reg.
    8485
    (Nay
    13, 1988)
    and R88—24,
    13
    Iii.
    Reg. 7949
    (May 26,
    1989)
    Public Involvement
    During the initial 45 day public comment
    (“PC”)
    period
    following First Notice publication on Nay 25,
    1990, the Board
    received,
    in addition to the comments above,
    comments from the
    Administrative Code Division of the Secretary of State’s Office
    regarding format changes
    (PC3), remarks of the Illinois Coal
    Association
    (PC4), the comments of M.A. Associates
    (PC5)
    and
    comments of Metropolitan Tire Recycling and Recapping,
    Inc.
    (PC6).
    The Board held its first hearing on the Agency’s proposal on
    June 22,
    1990 at the State of Illinois Center,
    Chicago,
    Illinois.
    At this hearing, Mr. Gary King of the Agency presented testimony
    in support of the Agency’s regulatory proposal.
    Also testifying
    on the Agency’s behalf was Mr.
    Paul Purseglove.
    The Board’s
    Scientific and Technical Section provided testimony and comments
    •regarding the financial assurance portion of the proposal.
    Mr.
    Ken Kirby of Oxford Tire Recycling of Illinois, Ms. Bonnie Eynon
    Meyer of IDENR,
    Mr. Robert Grammer and Mr. Phil Morlay of Lakin
    General,
    Mr.
    Lloyd Renfro of the Illinois State Tire Dealers and
    Retreaders Association and Mr. Jack Filler also participated.
    The second hearing in this matter was held on for August 10,
    1990 at the City Counc~lchambers, Municipal building,
    Springfield,
    Illinois.
    On August
    9,
    1990 the Agency proposed
    revisions to its proposal in response to comments received at the
    hearing of June 22,
    1990.
    The revisions focused upon two
    aspects:
    (a)
    changes to the financial assurance requirements for
    operators, and
    (b) removal of tire shreds with dimensions of
    three inches or less from the standards.
    The revised proposal
    also contained corrections of numerous typographical errors as
    well as clarification amendments.
    Despite late filing, the
    Hearing Officer received testimony and exhibits concerning the
    revised proposal at the next day’s hearing.
    The August
    10,
    1990
    hearing participants included Dr. Robert Novak of the Illinois
    Natural History Survey; Mr. Joseph Naro of Clarke Outdoor
    *
    References to the transcript of the June 22,
    1990 hearing
    are designated “lR..”); those of the August
    9, 1990 hearing (“2R
    120—114
    3
    Spraying Company;
    and Mr. Billy Mitchell,
    Ms. Barbara Smith-
    Jones, Mr. Gilson White and Mr. Alvin McCoy of Pembroke Township.
    Mr. Ken Kirby also supplied testimony.
    Following the hearing of August 10,
    1990,
    the Hearing
    Officer ordered a period of post hearing public comment until
    September 7, 1990.
    This period was reopened until October
    5,
    1990 to receive further commentary.
    The content of the majority of the public comments are
    addressed in the body of this Opinion.
    A few, not addressed
    elsewhere,
    are discussed here.
    The public comment of
    Metropolitan Tire Recycling and Recapping,
    Inc.
    (Metropolitan)
    focussed on a desire for the proposed regulations to cover “used
    and waste tire monofills.”
    This monofill,
    as described, would
    receive and store slit or shredded tires in a manner which would
    allow ultimate retrieval over a period of decades.
    The
    regulations, designed for contemporaneous processing,
    do not
    address this alternative.
    The comment included proposed
    definition changes and additions as well as an exemption from
    management standards.
    The proposal was not supported by
    testimony at hearing.
    The Board, therefore, declines to take
    further action on
    it at this time.
    Metropolitan remains free to
    pursue these suggestions in Subdocket B.
    The analytical report of the DENR
    (PC7) describes test
    results performed by DTC Laboratories,
    Inc.
    for EP toxicity and
    heavy metals from tire chips.
    The Agency’s response to a letter
    received from Browning-Ferris Industries
    (PC8)
    stated that
    “storage” began at the end of the working day at a landfill.
    The comment of M.A. Associates,
    Inc.
    (PC6) called for the
    permitting of “tire jockeys.”
    The Board believes this concern
    is
    addressed by Subpart F:
    Tire Transportation Requirements.
    The
    comment of the Illinois Coal Association relating to statutory
    exemptions for used tires generated and located at coal mining
    sites,
    (PC4)
    are addressed in the general management standards
    exemption (Section 848.201).
    Metropolitan Tire Recycling and Recapping submitted comments
    on August
    2,
    1990 (PC6),
    followed by those of IDENR on August 8,
    1990
    (PC7).
    The Board also received comments from State
    Representative Larry Wennlund
    (PC9)
    filed August 10,
    1990,
    and
    comments from the Chicago Department of Public Health filed
    August 22,
    1990 and the Agency’s response to comments
    (PC8),
    filed August 13,
    1990.
    On September 17,
    1990,
    Lakin General Corporation submitted
    an analysis of the impact of the proposed rule upon its
    operations
    (PCll).
    The final comments of Oxford Tire Recycling
    of Illinois and of Lakin General Corporation were submitted on
    September 20,
    1990
    (PCI2).
    Finally, the Agency’s proposed
    120—115
    4
    exemption for tire retreaders appeared in public comments,
    (PC14)
    on October~~26,1990 and accompanied by a motion to file
    instanter.
    Establishment of Docket
    (B)
    Several of those testifying and submitting comments urged
    the Board to consider the special situation in the tire
    management scheme posed by tire recyclers and retreaders.
    Lakin
    General Corporation and Oxford Tire Recycling,
    Inc. gave
    testimony in support of some type of an exemption from management
    standards and also raised the question whether these managed
    sites do not also deserve relief from the proposed financial
    assurance standards.
    The Board reviewed the testimony and
    exhibits and found merit
    in the ideas.
    In the end, however,
    questions remained concerning which management standards and
    which financial assurances provisions recyclers and retreaders
    needed to meet.
    The Agency filed an amendment covering these
    issues on October 26,
    1990
    (PC14).
    The Board believes
    it
    prudent,
    therefore,
    to open Docket
    (B)
    in this matter and to more
    fully consider the ramifications of these exemptions there.
    To
    that end,
    a full discussion of the comments, testimony and
    exhibits received regarding these topics is omitted from this
    Opinion.
    They will be fully addressed. in Docket
    (B).
    We also anticipate that Docket B may be utilized to perfect
    today’s proposal in some other areas including those related to
    pesticide use and tire storage in buildings.
    Finally, we note
    that,
    since it was not proposed at First Notice, we have had to
    postpone until Docket B the repeal or modification of the
    existing Part 849 Tire Management Standards, which are largely
    superseded by Part 848; the Administrative Procedures Act does
    not allow at Second Notice a Part to be newly “opened up”.
    An
    order on Docket B will issue at a later date.
    DISCUSSION
    In general, the Agency’s proposal seeks to satisfy the
    legislature’s mandate by establishing standards for the storage,
    disposal, processing and transportation of used and waste tires.
    It was felt by the Agency that the Board’s•new landfill
    regulations, along with the prohibitions contained in the Act,
    adequately addressed the disposal requirements for this category
    **Comments received immediately prior to the August 10 hearing
    which
    were outside
    the comment
    period
    (PC6-9)
    were
    allowed by
    Hearing Officer Order of August
    17,
    1990.
    All others,
    including
    the Agency’s filing of October 26,
    1990, are hereby accepted in the
    record via Board Order today.
    120—116
    5
    of waste
    (1R.lE)
    (these regulations, adopted in Docket R88-7 and
    filed and effective September 18, 1991 are contained in Parts
    810—815).
    Therefore the Agency’s primary focus was on storage,
    processing and transportation.
    The Board notes that the Board’s new landfill regulations
    were in second notice during the time the hearings
    in this
    matter, R90-9, were being held.
    The new landfill regulations
    became effective on September 18, 1990.
    The Board has in a few
    instances adapted the proposed regulations here to be compatible
    with the new landfill regulations,
    as noted later when discussing
    particular sections.
    The Agency proposal establishes a new Part 848.
    The new
    Part is divided into six subparts A, through F.
    Subpart A
    contains general rules.
    Subpart B
    is the heart of the proposal
    and contains the management standards.
    Subpart C contains the
    recordkeeping and reporting requirements.
    The financial
    assurance requirements are in Subpart D.
    Tire removal agreement
    provisions are
    in Subpart E.
    The tire transportation
    requirements are in Subpart F.
    Finally, various financial
    assurance forms are appended in Appendix A.
    Regulatory Scheme Under the Act
    Prior to our discussion of individual subparts and sections,
    it would be useful to give a brief overview of the regulatory
    scheme envisioned by the Act.
    The legislature intended a
    comprehensive approach to remedy the used and waste tire problem.
    (See Section 55 of the Act.)
    The open dumping and open burning
    of used and waste tires is prohibited.
    Tire storage sites must
    operate in compliance with Board regulations,
    including those for
    recordkeeping and reporting.
    No person may abandon, dump or
    dispose of a used or waste tire on private or public property.~~~
    They must be processed or disposed of in a permitted landfill.
    The storage of used tires
    is prohibited unless the tire is
    altered, reprocessed, converted,
    covered or otherwise prevented
    from accumulating water.
    (See Section 55(a)
    of the Act.)
    Beginning January
    1,
    1992 no person shall cause or allow the
    operation of a tire storage site which contains more than 50 used
    We note that we have deleted the term “sanitary” wherever
    it
    is used in conjunction with landfill permitted by the Agency.
    The
    word
    is
    not
    necessary
    and,
    additionally,
    the
    Board’s
    new
    landfill regulations
    do
    not use the word
    “sanitary”.
    We also
    construe the language limiting landfill disposal only to permitted
    landfills to mean that, regarding on-site landfills exempt from the
    permitting
    requirements
    pursuant
    to
    Section
    21(d)
    of
    the
    Act,
    disposal
    is not allowed unless those landfills have “voluntarily”
    sought and received permits.
    120—117
    6
    tires unless the owner or operator:
    (1)
    registers the site with
    the Agency;
    (2)
    certifies to the Agency that the site complies
    with Board regulations proposed
    Part 848);
    (3)
    reports to the
    Agency the number of tires accumulated, the status of vector
    controls, and the actions taken to handle or process the tires;
    and,
    (4) pays the applicable fee.
    (Section 55(d)(l)).
    Until
    that time, tire storage sites are subject to present Board
    regulations under Part 849.
    (See Section 55(a)(4)).
    Beginning January
    1,
    1992, no person shall cause or allow
    the operation of a tire disposal site unless the owner or
    operator has:
    (1)
    received approval from the Agency after filing
    a tire removal agreement, or
    (2) has entered into a written
    agreement to participate in a consensual agreement under Section
    55.3 of the Act.
    (Section 55(d)(2)).
    This latter provision is
    limited to accumulations of fewer than 500 used or waste tires at
    a location and may be performed at no cost to the owner (subject
    to availability of funds).
    Various exemptions from management standards are given
    in
    Section 55.1.
    This proposal
    (Part 848) was required by Section
    55.2.
    The Agency is authorized to undertake preventive or
    corrective action with regard to used or waste tire accumulations
    under Section 55.3 of the Act.
    The contents of tire removal
    agreements are specified in Section 55.4 of the Act.
    Section
    55.5 of the Act requires the Agency to investigate alleged
    violations of the Act or Board regulations.
    No person is allowed to transport tires except in compliance
    with Board regulations
    (Section 55(g)).
    The use of pesticides to
    treat tires
    is also prohibited except as prescribed by Board
    regulations
    (Section 55(i)).
    As a general comment, the proposed regulations have been
    edited to the active voice,
    e.g.
    “the owner or operator shall.”
    SUBPART A:
    GENERAL
    848.101
    Applicability
    As discussed above,
    the proposal establishes requirements
    for the storage, processing,
    disposal and transportation of used
    and waste tires.
    One of the criticisms of the proposal voiced at
    the June 20,
    1990 hearing was that the Part should not apply to
    converted or reprocessed tires.
    Once the tires are chopped or
    shredded,
    it was argued, they are no longer used or waste tires
    and should not be treated as such (lR.1l5—l17).
    These tire
    materials do not easily fall under the rationale for stacking and
    spacing requirements (lR.l15,
    121).
    120—118
    7
    When the Agency revised its proposal, the Agency made it
    clear that converted or reprocessed tires are not covered by this
    Part.
    Likewise the Agency proposed that “altered tires” which
    have been processed such that the maximum ~imension of the
    chopped or shredded portion is
    3 inches or less not be regulated
    by this revised Part.
    The Agency felt that
    3 inches represented
    tires
    in “product type form”
    (2R.31).
    The Agency also maintained
    that
    6
    inch shreds should be subject to financial assurance as
    they were not in product form even though they eliminated the
    threat of mosquito breeding.
    The Agency also pointed out that
    many shreds have little or no value.
    The Agency believes,
    however, that shreds and chips would require less onerous
    financial assurance than whole tires (2R.3l—33).
    The Board is not persuaded that an exemption for small chips
    or shreds has been justified by the record.
    Chipped or shredded
    tires could be abandoned and constitute a potential solid waste
    and fire problem.
    Today’s proposal does not exempt altered tires
    from regulation unless they are stored at the site where they arc
    to be consumed as fuel.
    Chopped and shredded tires will,
    therefore,
    remain covered by the regulations, including financi~
    assurance.
    The Board believes the exemption for on site fuel u~
    is justified in that there is a little chance that this fuel wil~
    be abandoned once transported to the facility where it will be
    used.
    The exemption has been moved to the Management Standards
    section (848.201).
    If the Agency or -any other person wishes to
    revisit this
    issue in Docket
    B, they are free to present
    testimony supporting alternate language.
    Finally, though not appearing in its original proposal, the
    Agency’s revised proposal points out that the rules are in
    addition to,
    and do not supplant, those prohibitions and
    standards in Section 55 of the Act.
    The Board has removed this
    language and moved similar language to Sections 848.103 and
    848.201 under the Management Standards section.
    848.103
    Other Regulations
    The Board has reworded the language in this section.
    The
    new language in subsection
    a) more clearly sets out potential
    considerations in case of conflict.
    In subsection b) we have
    simply stated the examples of other Subtitles that may be
    applicable,
    although the list is not exhaustive.
    The Board
    believes the reference to these regulations satisfies the mandate
    to promulgate regulations governing the “processing” of used and
    waste tires.
    848.104
    Definitions
    The Agency’s proposal submits just three new definitions for
    consideration:
    “aisle”,
    “tire storage unit” and “tire
    transporter”.
    The Agency proposed two others,
    “tire retreader”
    120—119
    8
    and “retread or retreading” when it submitted revisions in its
    post—hearing comments.
    These are retained.
    All others are taken
    directly from the Act without change except as follows for
    clarification of the intended meaning:
    Add to the definition of “Tire Disposal Site”
    an “at”
    between “than” and “a” to correct a drafting error.
    Delete
    “sanitary” before “landfill”.
    The term “sanitary” has been
    dropped from the new landfill regulations which were adopted
    after the legislation passed.
    Add after “Agency” a comma and
    “and operated in accordance with Section 55(d) of the Act,” so as
    to distinguish between these sites and open dumps.
    In the definition of “tire storage site”,
    utilize the
    paragraph format as used
    in the Act and delete the numbers “(1)”
    “(2)” and “(3)” for clarification,
    as is discussed below.
    Section 848.105
    Incorporations by Reference
    The management standards are largely based upon one
    document, NFPA 231D “Storage of Rubber Tires”.
    The financial
    assurance rules
    (Subpart
    D)
    reference two documents:
    Accounting
    Standards and Auditing Standards.
    Although the Agency did not
    propose to formally incorporate them, the Board believes
    incorporation is warranted.
    These are now incorporated by
    reference in a new section, Section 848.105.
    SUBPART B:
    MANAGEMENT STANDARDS
    848.201
    Applicability
    Unless exempted, tire disposal sites and tire storage sites
    must meet the proposal’s management standards by January
    1,
    1992.
    Tire storage sites where fewer than 50 used or waste tires are
    stored are exempted from regulation under the Agency’s proposal.
    If tires are disposed in permitted areas of landfills they are
    regulated by the landfill regulations, not by this Part;
    if they
    are stored there, however, they do have to meet management
    standards of this Part.
    The Board believes this distinction
    (848.201(d)
    satisfies its statutory mandate to develop criteria
    which distinguish storage from disposal.
    Exemptions from the applicability of management standards
    exist in the Act. The Act states that “No person shall:
    Except
    at a tire storage site which contains more than 50 used tires,
    cause or allow the~storageof any used tire unless the tire is
    altered, reprocessed, converted,
    covered, or otherwise prevented
    from accumulating water”
    (Section 55(a) (3) of the Act).
    Read
    simply, tire storage sites where more than 50 tires are kept are
    excluded from the provisions of 55(a)(3).
    In defining the term
    “tire storage site”
    as in that exemption, the scope of the
    120—120
    9
    population exempted from the proposed Part 848 management
    standards (although subject to the minimal Section 55(a)(3)
    standards),
    can change dramatically.
    This last point was discussed at length because of the
    apparent “conflict” between the Act’s definition of “tire storage
    site” and the applicability section of the proposed rule (1R.7l-
    84).
    Because of the way “tire storage site”
    is defined in the
    proposal it appeared that certain sites where tires are removed
    from the rim, such as auto graveyards, and tire dealerships could
    go unregulated by the proposed Part.
    Reading from the Act:
    “‘Tire storage site’ means a site where used tires are
    stored or processed,
    other than
    (1)
    the site at which
    the tires were separated from the vehicle wheel rim,
    (2)
    the site where the used tires were accepted in
    trade as part of the sale of new tires,
    ~
    (3)
    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.”
    Ill.
    Rev.
    Stat.
    1989,
    ch.
    111 1/2, par 1054.12
    The Agency, at hearing, maintained the position that all
    sites at which tires were removed from the rim, sites where used
    tires were accepted in trade for new tires or sites where both
    used and new tires were sold at retail
    (but not more than 250
    were kept at any point
    in time), were exempt from the management
    standards of the new Part.
    The Board requested the Agency to
    brief this point
    (lR.265).
    The Agency’s brief asserts that these
    sites, while not regulated by this Part,
    are covered by the
    general management standards contained in Section 55(a) (3)
    of the
    Act
    (PC13).
    In comments filed October 26,
    1990
    (PC14) the Agency revised
    its position on the matter.
    Apparently in its meetings with the
    Illinois State Tire Dealers and Retreaders Association, the
    Agency was persuaded its interpretation was incorrect.
    Now, the
    Agency asserts,
    all three conditions must be met before a site is
    excepted from the definition of tire storage site:
    Thus,
    a site where used tires are separated from the
    vehicle wheel rim and at which more than 250 new and
    used tires are kept and sold at retail in the regular
    120—12 1
    10
    course of business does not meet the exceptions
    .
    (PC14 ,p. 6)
    The Board cannot accept the Agency’s “new” interpretation.
    The Board interprets this exemption from the definition of tire
    storage site and thus from the Part 848 management standards to
    apply only to one of the three conditions at a time; the “or”
    cannot be ignored.
    The result that the Agency obviously is
    trying to avoid is that the 250 used tire cutoff language could
    be construed to apply only to the third condition.
    We do not
    believe the language says that or that was the legislative
    intent; we believe that the comma after “..regular course of
    business,” expresses the legislative intent to have the 250
    cutoff apply to each of the three conditions.
    If the 250 cutoff
    were intended to apply only to the third condition, the comma
    would not be necessary;
    it would be surplusage.
    We attribute the
    use of the numbers to a not unheard of, but ill—advised, tendency
    to “number” or “letter” things in definitions in a paragraphed
    format solely for emphasis, rather than relying on the symbols of
    grammar, such as commas,
    periods, semicolons, etc.
    While most of
    the time no harm is done,
    there are occasions where such
    numbering and lettering thoroughly confuses and threatens to
    distort the intended meaning.
    We also conclude that to construe
    the 250 cutoff as applying only to the third condition would
    allow such facilities as junkyards to be exempt,
    an irrational
    result that the legislature surely did not intend.
    Consistent
    with this Board determination, we are deleting the three numbers
    in the regulations in order to clarify what otherwise creates
    unnecessary confusion in the definition,
    as this record has amply
    demonstrated.
    The Board notes that if a site is determined to not be a
    tire storage site,
    or if it is
    a tire storage site where less
    than 50 used or waste tires are kept, that site must meet the
    management standards contained in Section 55(a)(3)
    of the Act.
    Used tires at such sites must be altered, reprocessed,
    converted,
    covered or otherwise prevented from accumulating water.
    As
    shown in our discussion of the regulatory scheme under the Act,
    the prohibitions of Section 55(d)(1) apply to tire storage sites
    having more than 50 used or waste tires after January 1,
    1992.
    Until January
    1,
    1992, the management standards of Part 849 apply
    to tire storage sites with more than 50 used or waste tires.
    See
    Section 55(a) (4)
    of the Act.
    848.202 Requirements
    The Agency comment omitted exception number two: “the site
    where the used tires were accepted in trade
    as part of a sale of
    new tires.”
    120—122
    11
    The Agency testified that it drew most of the management
    standards from those contained in the National Fire Protection
    Association’s
    (NFPA)
    document “Storage of Rubber Tires”, Standard
    231D
    (Exh.1)
    (lR.16).
    The management standards for used and waste tires escalate
    based upon the number of tires located at a site.
    These are
    summarized as follows:
    50
    —
    500 TIRES
    1.
    Aisle space of 25 feet
    (ft) between
    a tire
    pile and buildings or other tires piles.
    2.
    Separation distance of 250 ft from all
    ignition sources unless such activities are
    carried out within a building.
    3.
    Used or waste tires must be drained upon
    receipt.
    4.
    Within 14 days after the receipt of used or
    waste tires,
    such tires must be altered,
    reprocessed, converted, covered or otherwise
    prevented from accumulating water.
    5.
    Used or waste tires shall not be abandoned,
    dumped or disposed on private or public
    property except in a permitted landfill.
    6.
    Used or waste tires shall be accepted at a
    site only from vehicles meeting the Subpart
    F
    requirements.
    7.
    Tires shall not be accumulated if the grade
    of the area exceeds
    2 percent slope.
    501
    —
    10,000 TIRES
    8.
    The owner or operator of the site shall meet
    the requirements of Subpart C
    (recordkeeping
    and reporting) and Subpart D
    (financial
    assurance).
    9.
    The owner or operator shall maintain a
    contingency plan.
    10.
    Used or waste tire piles shall be separated
    from grass, weeds, brush, over—hanging tree
    limbs and similar vegetation by at least 50
    ft.
    11.
    The dimensions of a tire storage unit
    (TSU)
    must not exceed 250 ft
    (L)
    x 250 ft
    (W) x 20
    ft
    (H).
    12.
    A TSU must be separated from other TSUs and
    buildings either by the specified separation
    distance or by an earthen berm that is at
    least 1.5 times the height of the pile.
    120—123
    12
    10,001 OR MORE TIRES
    13.
    The area where tires are stored must be
    surrounded by a fence which
    is at least
    6 ft
    in height.
    14.
    Entrance to the area to be controlled at all
    times.
    15.
    The area of the site where the tires are
    stored must be surrounded by an earthen berm
    not less than
    2 ft in height.
    The Agency testified the grade requirement
    (#7) was to
    contain runoff
    (lR.23—24).
    The Agency testified that the purpose
    of requirement #12
    is to restrict the impact of any fire to the
    tire storage unit where the
    fire first originates.
    The Agency
    also proposes berm heights and separation distances based on NFPA
    guidelines
    (Exh.l, p.1).
    The Agency testified that requirements
    #13 and #14 are important to reduce the potential for tire fires
    resulting from outside intruders.
    The latter requirement would
    restrict tire fire runoff
    (1R.26-7).
    The Agency proposal
    recommended 2,500 tires as the cut off for those three additional
    standards.
    The Board, however,
    selected 10,000 as a more
    appropriate number.
    Given the conversion factors in Part
    848.302,
    a pile of 2,500 tires would measure 25’x25’x15’ while
    10,000 would measure 45’x45’x20’.
    The larger number will lessen
    the burden on storage facilities at little additional
    risk.
    The management standards set forth in Section 848.202 were
    envisioned to prevent mosquito breeding and reduce fire hazard.
    However, at the August 10,
    1990 hearing, concerns were raised
    regarding the adequacy of the proposed standards to deal with the
    issue of mosquito breeding.
    As stated above,
    the Agency required
    used or waste tires to be altered within 14 days of receipt.
    The Agency had designed the standards after concluding that
    Section 55 of the Act did not intend any pesticide application in
    the management of used and waste tires.
    The Agency derived its
    interpretation from its reading of Section 55.2(b)
    of the Act
    which,
    in addition to calling for certain management standards to
    be promulgated, states:
    In addition, such regulations shall prohibit the use of
    pesticides as an ongoing means of demonstrating
    compliance with this Title. Ill. Rev. Stat.
    1989 ch.
    111 1/2, par. 1055.2(b)
    The Agency interpreted this section to mean that
    ~jJ~
    pesticide use
    is prohibited as part of the control strategy for
    mosquito breeding
    (1R.l37-8).
    The testimony of Dr. Robert Novak, Illinois Natural History
    Survey, revealed that this standard may be insufficient to
    120—124
    13
    prevent mosquito breeding without pesticide application.
    Either
    the time period for alteration must be reduced from 14 to
    7 days
    or pesticide use should be included as part of the general
    management standards, he testified (2R.64,66).
    Dr. Novak
    testified that,
    in his opinion, pesticide application was not
    eliminated as a means of compliance in the legislation
    (2R.63).
    In his view, total elimination of pesticides as a treatment
    method
    is unrealistic
    (2R.64).
    Dr. Novak testified that if tires were altered within
    7 days
    of receipt at the facility no mosquito problem would exist
    (2R.66).
    He faulted the Agency’s proposal for not requiring
    alteration prior to 14 days, while not allowing pesticide
    application
    (2R.65).
    In his opinion, selective pesticide
    treatment does not violate the strictures of the statute.
    It
    would serve to prevent mosquito production in treated tires
    (2R.82).
    The goal, he believed, was to work toward alteration of
    the tire as soon as possible, perhaps within a
    7 day period but
    that,
    biologically,
    it made sense to retain pesticide application
    as a treatment method (2R.8l—3).
    Once management standards had
    been in place for some time,
    the need to treat with pesticides
    would diminish
    (2R.88).
    The representatives of Oxford Tire
    Recycling of Illinois (2R.100) and Lakin General Corporation
    echoed the utility of retaining pesticide application as a
    mosquito management tool (2R.l02,l09;PC12).
    No more than two or
    three treatments per season result from Lakin General’s weekly
    mosquito inspection and treatment program
    (2R.113).
    The
    application program is performed after notifying the Chicago
    Department of Public Health.
    The representative from Clarke
    Outdoor Spraying testified that the cost for treating a stack of
    15,000 tires
    8 feet tall
    is approximately $600.
    In its comments
    (PC1O)
    the Chicago Department of Public Health found the Agency’s
    approach “unrealistic”,
    “totally inadequate” and urged retention
    of the present rules regulating pesticide use on tires.
    Following these hearings and comments, the Agency retreated
    from its prior position that no pesticide use was intended by the
    Act.
    The Agency stated:
    From a careful reading of the proposed
    regulations
    .
    .
    .
    it is clear that total
    elimination of pesticide use is not intended,
    or required, by the regulation.
    The language of the
    pesticide use Section
    does not become effective until January 1,
    1994; only applies to tire storage or tire
    disposal sites that contain more than 500
    tires; and expressly allows the use of
    pesticides in response to evidence of
    mosquito production
    .
    .
    .
    The language
    .
    .
    is intended to reduce the routine application
    120—125
    14
    of pesticides and is derived from an explicit
    statutory prohibition on the use of
    pesticides.
    PC13, pp.2—3
    The Board agrees that the Agency’s original interpretation
    of this subsection was incorrect.
    The quoted language clearly
    states that pesticide application shall be prohibited as “an
    ongoing means of demonstrating compliance...
    •1~
    (emphasis added)
    The use of the term “ongoing” is intended and specific.
    If the
    legislature had meant to s~yall applications were prohibited it
    could easily have omitted the word “ongoing” and said exactly
    that.
    The language cleary signifies that not all pesticide
    applications were prohibiced,
    just those representing repeated
    uses as the means to comt~lywith the management standards.
    In
    addition, Section 55(i)
    ~f the Act prohibits pesticide use except
    “...
    as prescribed excep~by Board regulations.”
    This expressly
    recognizes the Board’s ability to regulate the use of pesticides
    on tires as a pest maflagement tool.
    Finally, the reporting
    mechanisms mandated by Section 55 of the Act call
    for a report a~
    to the status of vector controls.
    See Section 55(d) (1) (iii).
    The Board concludes that a 14 day period in which to alter
    or convert used tires is fully supported by the record in this
    proceeding as well as the exhaustive discussion of this topic
    contained in the Board’s Opinion and Order which adopted the usec
    and waste tire management standards of Part 849
    (R88—24,
    98 PCB
    381; April 27,
    1989).
    In addition, participants testified to thE
    efficacy of periodic inspections of tires that are stored on-sitE
    for mosquito pupae and mosquito larvae and the application of
    pesticides upon detection of mosquito infestation
    (2R.113).
    The
    Board finds that such an operation would be consistent with the
    intent of Section 55.2(b)
    of the Act regarding the prohibition
    against ongoing u3e of pesticides without foreclosing on limited
    “as needed” appli.~ationsfor the prevention of mosquito breeding
    (lR.57-58;
    109-11.7).
    Inspection and subsequent treatment may be
    used as part of the contingency plan.
    This approach is also
    consistent with the record developed in R88—24.
    (98 PCB 393-4,
    401-404) and the need for flexibility in the formulation of the
    management plan expressed therein.
    The two week maximum timeframe will, under certain
    conditions allow mosquitoes to fully develop (1R.82)
    .
    The tires
    generally covered by this provision will be newly generated or
    recently moved to a processing site.
    They are likely to be
    fairly clean and are required to be drained or treated initially.
    In order for mosquitoes to develop, tires must contain eggs,
    receive rain, contain organic matter and be subjected to
    favorable conditions
    (1R.78).
    Within two weeks they are required
    to be processed.
    The proposal allows use of pesticides in
    accordance with the contingency plan developed pursuant to
    120—12 6
    15
    Section 848.203.
    The adequacy of the pesticide provisions of
    this proposal may be further addressed in Docket B.
    In R88—24, the Board concluded that the most effective
    method of controlling mosquitoes in scrap tires
    is to destroy or
    alter tires
    so they are incapable of holding water.
    The present
    rule is intended to continue these methods.
    848.203
    Contingency Plan
    Under Section 848.202(c)
    sites storing more than 500 tires
    must prepare a contingency plan which meets the requirements of
    Section 848.203.
    The Agency testified that it considers the
    existence of a contingency plan to be a critical factor in
    coordinating an expeditious and effective response to
    environmental or public health hazards such as tire fires or
    insect infestations (lR.27).
    The Agency’s language attempted to
    mirror board RCRA regulations at 35 Ill.
    Adm. Code 725.
    The plan
    must be immediately implemented if a tire fire produces a human
    health or environmental threat or if there is evidence of
    mosquito infestation.
    The plan must describe the action that
    site personnel will take as a response and include an evacuation
    plan and a pesticide application plan.
    The provisions of the contingency plan are meant to cover
    operations that vary greatly in size.
    While each site requires
    an evacuation and fire response plan,
    the complexity and length
    of the plan at a 2,000 tire site will be considerably less than
    that at a 1,000,000 tire site.
    In Docket A, the Board has dropped the Agency provision that
    after July 1,
    1994 pesticides may only be used in response to
    insect production.
    This appears to be in conflict with the
    provision that tires be altered or covered within
    14 days of
    receipt.
    The entire matter of preventative use of pesticides may
    be reconsidered in Docket B.
    848.204
    Storage of Tires Within Buildings
    A provision which drew a lot of attention at hearing was
    storage of tires in buildings.
    Section 848.202
    is centered
    around outdoor management of used and waste tires.
    The Agency’s
    original proposal set out to exempt used tires from the
    management standards if stored
    in a building which had a working
    roof, windows and doors Section
    848.201(d).
    The Agency
    testified that some operators will rent abandoned buildings to
    fill them up with tires.
    This provision attempted to bring these
    buildings within the regulatory framework unless they were part
    of a “legitimate and continuous method of operation”
    (IR.22).
    At
    hearing the suggestion was made that the exemption should only
    apply to warehouses or similar facilities.
    The concern was that
    houses have low ceilings and numerous walls which posed a
    fire—
    120—127
    16
    fighting danger (lR.90-91).
    In response to concerns raised by
    the Board’s Scientific and Technical Section
    (STS), the Agency
    proposed new language to require the tires to be drained
    beforehand.
    The Agency also modified its original proposal to
    exclude single family homes and residential buildings in response
    to these comments.
    The Board concludes that accumulation of tires within
    buildings constitutes a threat of fire and should be managed in a
    way that reduces fire hazard and provides adequate access for
    fire fighting in an event of a tire fire.
    The Board notes that
    NFPA standard No. 231D (Exh.l) prescribes standards for large-
    scale
    (greater than 10,000 tires)
    storage of tires within
    buildings.
    Although the NFPA standard is drawn to apply to new
    buildings,
    certain requirements relating to pile size,
    aisle
    space and clearances may be applied to reduce fire hazard at
    small scale
    (less than 10,000 tires)
    facilities as well.
    The
    Board, therefore,
    incorporates several management provisions in
    order to bring these facilities into the management scheme with
    the intention that these standards will reduce fire hazard at
    these facilities.
    The standards incorporated by the Board are similar to those
    proposed by the Agency for outside storage in that the
    requirements for management escalate based upon the number of
    tires stored.
    At sites where fewer than 500 tires are stored
    within buildings,
    the requirements are the same as those proposed
    by the Agency:
    the tires must be drained of liquids,
    all windows
    and doors must he in working order and secured, the building must
    be roofed, the building must not be a single family home or
    residential dwelling.
    If more than 500 tires are stored within a building, the
    additional requirements specified at subsection 848.204(c)
    will
    also apply.
    This subsection basically requires the development
    and implementation of a storage plan that takes into account fire
    protection.
    The owner or operator subject to the requirements of
    this subsection will also have to meet the recordkeeping and
    financial assurance requirements of this Part.
    These are in
    addition to the requirements of subsection 848.204(b).
    With the above considerations also in mind, the Board
    is
    extending the NFPA Standard 23lD requirements to large-scale tire
    storage within buildings constructed after the effective date of
    this rule.
    These standards specify requirements relating to
    building arrangements, storage arrangements, fire protection, and
    building equipinent,.maintenance and operations.
    Compliance with
    the NFPA standard will afford adequate fire protection at large
    tire storage facilities.
    Section 848.205
    Pesticide Treatment
    120— 128
    17
    In developing its proposal, the Agency gave little
    consideration to pesticide application plans given its initial
    interpretation of Section 55.2(b)
    of the Act.
    The application
    plan developed as part of the contingency plan must include
    information such as the type of pesticide which is to be used,
    the method of application and that such use must be recorded
    (2R.58).
    The Agency is to be informed of pesticide use after the
    fact.
    The Board would appreciate comments in Docket B as to any
    concerns the Illinois Department of Public Health may have about
    this provision,
    as it differs markedly from existing Part 849.
    SUBPART
    C:
    RECORDKEEPING
    AND
    REPORTING
    Sections 848.301—306
    The recordkeeping and reporting requirements of Subpart C
    apply to those sites which, generally, have more than 500 tires
    stored (848.301).
    Owners and operators would be required, under
    the proposal, to keep two types of records:
    a daily tire record
    and an annual tire summary
    (848.302).
    The daily tire record is
    used to supply information for the annual report.
    Part of the
    information is facility—specific, e.g. site name, number and
    address.
    Other information relates to operational activities
    (848.303).
    The Agency testified that the operational information
    required for the annual tire summary is merely a summation of the
    information required for the daily tire record
    (848.304) (lR.30-
    31).
    The records,
    summaries and reports generated under this
    Section must be retained for three years
    (848.305)
    and certified
    (848.306).
    The Agency testified that the purpose of the recordkeeping
    requirement is to determine the applicable management standards
    of Subpart
    B, the complexity of which escalates with the number
    of tires on site,
    and also to acquire information for developing
    a data base (1R.150-lsl).
    This assures that the Agency can
    enforce the differing requirements.
    The Agency’s final
    justification is to create a database in order to begin the
    process of using tires as a resource.
    Daily reports, the Agency
    testified, mirrored the actual operations of the site better than
    weekly or monthly reporting would (1R.l52—3).
    The information that is required to be maintained by the
    Agency’s revised proposal includes weight or volume of tires:
    received at the site; transported from the site; and burned or
    combusted at the site,
    and the total number of tires remaining on
    site on a daily and annualbasis.
    The Agency’s intent was to
    eliminate the difficulty of counting tires and instead use weight
    or volume based measures
    (1R.16—l7,
    39).
    Although the Agency
    still requires an estimate of the count to determine if it falls
    within the specified range
    (Section
    848.303(b)
    (3)),
    the Agency
    has not specified any relationship between the weight or volume
    120—129
    18
    of tires and the number of tires, nor does it require the owner
    or operator of tire storage sites to develop such relationships.
    It is therefore not very clear how,
    in the Agency proposal, the
    owner or operator will estimate the number of tires received,
    transported or combusted.
    During ongoing operation at a site, one way of estimating
    the number of tires remaining on site is to use relationships
    between weight or volume and the number of tires.
    The Agency
    believes that due to differences in size and weight among the
    different types of tires, there will be more than one
    relationship and therefore, this option would not be feasible
    (lR.l53).
    This problem, however, may be avoided by considering a
    single equivalent weight/volume measure for estimating the number
    of tires based on either weight or volume.
    This concept may be
    viewed in the same way as the use of “population equivalent” in
    other Board regulations
    (Eg.
    35
    Ill.
    Adm. Code 301.345).
    The Board concludes that an appropriate measure for
    estimating the number of tires based on weight or volume would be
    the “passenger tire equivalent”
    (PTE), which has been defined by
    the NFPA (Exh.l)
    as one average size passenger tire
    H78-l4
    weighing approximately 25
    lb.
    (11 kg)
    and occupying
    a volume of
    3
    ft3 (0.085 m3)
    note
    that the volume is based on the tire
    dimensions:
    27.3 inches outer diameter by 225 mm
    width.
    If the
    weight of a load or pile of tires is known, then the number of
    tires
    in terms of the PTE may be estimated by dividing the weight
    of the tires by the PTE weight of 25 lb.
    (11 kg).
    On the other
    hand,
    if the volume of a load or pile of tires is known,
    the
    number of tires in terms of the PTE may be estimated by dividing
    the volume of the tires by the PTE volume of
    3
    ft3
    (0.085
    Tn3).
    It must be noted that the PTE based on occupied volume is
    dependent on the method of stacking (random or hand stacking)
    and
    also on the type of tire
    (whole or shredded).
    The information provided in the record
    (R88—24,
    Exh.26) and
    the data included
    in the DENR’s Illinois Scrap Tire Management
    Study
    (Exh.l4)
    indicate that the volume occupied by a tire in a
    randomly stacked pile ranges from 3.75 to 4.5 ft3 per tire, which
    is higher than the volume occupied by an average sized passenger
    tire
    (3
    ft3).
    When tires are stacked randomly, the space
    occupied by the tires will normally be greater than their actual
    volume.
    The information in the record is also based on tire
    piles which include tires of different sizes.
    In view of these
    considerations,
    it is reasonable to assume that the volume
    occupied by a whole PTE is
    4
    ft3, considering the additional
    volume occupied by tires when they are stacked randomly.
    In the
    case of shredded tires, the data indicate that the volume
    occupied by an average sized shredded passenger tire ranges from
    1 to 1.5 ft3 per tire.
    For the purposes of estimating the number
    of tires, the volume occupied by a PTE of shredded tires is
    chosen to be 1.25 ft3.
    The Board considers both estimations
    120—130
    19
    reasonably based given all available evidence.
    Therefore the
    Board has provided a method for estimating weight and volume of
    tires using the “tire equivalent” method.
    Provisions for using
    an alternate calculation based on the tires actually received at
    a site are also provided.
    The Board would appreciate further
    commentary on this provision in Docket B.
    SUBPART D:
    FINANCIAL ASSURANCE
    General Discussion of Financial Assurance
    The financial assurance provisions of Part 848, Subpart D
    are designed to ensure financial responsibility and
    accountability for the ultimate removal and proper disposal of
    used and waste tires at tire storage and disposal sites.
    They
    are to protect the public by providing for the removal of tires
    if the owner or operator abandons the site or is otherwise unable
    to properly terminate operations.
    The regulations are
    necessarily complex and technical.
    They require an owner or
    operator of a tire disposal site to choose among a specified
    number of options to ensure removal.
    These options involve a
    number of financial instruments, agreements and forms,
    all of
    which are discussed in the rules.
    The provisions of this section
    are summarized below.
    The Agency’s revised proposal
    is based on the financial
    assurance rules for RCRA hazardous waste facilities,
    which are
    found in 40 CFR 265 and 35 Ill.
    Adm. Code 725.
    At.the June 22,
    1990 hearing,
    the issue was raised that a more appropriate model
    would be the solid waste financial assurance rules found in 35
    Ill. Adm. Code 811, which were subject to multiple public
    hearings and extensive commentary and adopted by the Board in its
    R88—7 proceedings,
    114 PCB 483
    (8/17/90)
    (1R.197).
    R88—7 was in
    turn based on the R84-22(C) proceeding,
    66 PCB 463
    (11/21/85).
    The Agency agreed that the model developed in the R88-7
    proceeding was more appropriate and proposed the necessary change
    prior to the second hearing on August 10,
    1990.
    These changes
    were then discussed at the next day’s hearing.
    The public did
    not object to the use of the R88—7 financial assurance model for
    this proceeding.
    The Board has therefore substituted the R88-7
    model language for the Agency’s original language with two
    distinctions (2R.18—20).
    Problems with the Agency Proposal
    Absence of
    a Removal Plan
    The RCRA and solid waste financial assurance rules are based
    on a “closure plan”.
    The operator develops a “cost estimate”,
    which
    is based on the plan.
    The operator must provide financial
    assurance in the amount of the cost estimate.
    Pursuant to the
    120—13 1
    20
    financial assurance document,
    a financial institution promises to
    pay the cost estimate, unless the operator provides closure in
    accordance with the plan.
    The Agency’s proposal is fundamentally different from the
    RCRA
    and R88-7 model,
    in that the operator does not have to
    prepare a plan in advance of the decision to remove tires.
    Rather, the operator prepares
    a “tire removal agreement” within
    30 days after the decision to close
    (Section 848.403).
    This has
    two major consequences.
    First, there is no “removal plan” on
    which to base the cost estimate
    (1R.162).
    Second, there is no
    “removal plan” against which to compare the operator’s
    performance in removing tires, so as to determine whether
    a
    default occurred on the financial instruments (lR.l65).
    This aspect of the Agency’s proposal may actually be an
    editorial error,
    since it appears to be inconsistent with Section
    848.501 et seq., which appears to require approval of the tire
    removal agreement in advance.
    The Board proposes to condition financial assurance on
    compliance with a “removal plan”.
    This will be the approved
    removal agreement,
    if one exists.
    Otherwise,
    it will be the
    proposed agreement.
    The operator will have 30 days after
    approval to substitute or amend financial assurance to reflect
    the approved plan.
    Conditions of Default
    The conditions of default in the Agency proposal are found
    in Sections 848.404(b) (9) and
    (10).
    These are as follows:
    Following a failure by the owner or operator to perform
    removal in accordance with the approved tire removal
    agreement when required to do so, the Agency may draw
    on the letter of credit.
    The Agency may draw on the letter of credit when the
    operator fails to provide additional or substitute
    financial assurance when required to do so under this
    Subpart.
    These conditions omit two important conditions specified under
    the model developed in R88-7:
    abandonment and bankruptcy
    (lR.2l1).
    If either occurred, the Agency may find itself
    disputing the financial institution about when removal was
    required.
    ~Itmight
    benecessary for the Agency to file an
    enforcement action, and obtain a Board order requiring removal,
    before the letter of credit expired,
    in order to collect
    (1R.2l3).
    On the other hand, the R88-7 language, makes
    abandonment and bankruptcy default conditions,
    in and of
    themselves.
    120—132
    21
    The Agency’s proposed language is also vague in conditioning
    default on removal
    “when required”.
    The R88—7 language triggers
    liability if:
    1)
    the operator fails to initiate removal when
    ordered to do so by the Board or a court;
    or,
    2) notifies the
    Agency that it has initiated removal,
    or initiates removal, but
    fails to provide removal in accordance with the plan.
    The Board
    finds that inclusion of this language clarifies the default
    conditions.
    The Agency’s second condition, triggering a default
    automatically on failure to provide additional or substitute
    financial assurance when required to do so,
    is discussed below.
    Release for Work in Progress
    The Agency’s revised proposal, at Section 848.401(c) (5)
    provided an exemption from the financial assurance requirement
    for operators of sites where tires “are being removed” pursuant
    to an approved agreement.
    This would require the Agency to
    release financial assurance as soon as the operator initiates
    removal.
    The Board finds that this could lead to an unfunded
    removal if the operator initiated removal, obtained a release and
    then abandoned the site.
    In the R88-7 rules this situation is addressed under Section
    811.704(j),
    which authorizes the operator to revise the cost
    estimate to show completed activities.
    Under Section 811.702(a),
    the Agency would release financial institutions to the extent
    appropriate.
    The Board has followed the R88-7 formulation
    (Section 848.404(i)).
    Current Dollars
    Section 848.402 of the Agency’s revised Proposal provides
    that the cost estimate is equal to the cost “in current dollars”
    of removing all tires.
    As the Board understands this
    terminology, this means that the cost is to be reduced to current
    dollars.
    To do this,
    one would need to know the expected year in
    which removal
    is to be required.
    The rule should also specify a
    discount rate, or set limitations on assumptions about future
    inflation and earnings.
    In R88-7,
    the Board has adopted a
    similar rule in connection with the post—closure care cost
    estimate for landfills.
    However, the Board does not believe that
    reduction to present value
    is appropriate in the context of tire
    removal, which does not contemplate long—term maintenance of a
    site.
    Accordingly, the phrase “in current dollars” has been
    deleted.
    Lack of Control Over Financial Institutions
    120—133
    22
    The Agency proposal allowed trust funds and letters of
    credit, each of which requires the participation of a bank or
    other financial
    institution.
    The Agency proposal,
    following the
    RCRA model,
    allowed financial institutions regulated in any
    state.
    This posed two related problems.
    First, did “regulation
    in any state” give adequate assurance to Illinois that these
    institutions were sound,
    so that Illinois could collect on the
    financial assurance if necessary?
    Second, the Agency proposal
    appeared to authorize out—of—state financial institutions to
    participate in activities which, at least arguably, required that
    they be licensed by Illinois agencies.
    As is discussed below,
    the Board has limited financial institutions to those in
    regulated by or in compliance with appropriate Illinois laws, and
    to banks
    insured by FDIC.
    Parent Corporations
    The RCRA financial assurance rules allow a “parent
    corporation” which meets the financial test to guarantee the
    closure costs of a subsidiary.
    This is reflected in the Agency
    revised proposal at Section 848.404(c)(lO)
    (lR.229, 231,
    238).
    However,
    subsection
    (h)
    allows the operator to meet the financial
    responsibility requirement by demonstrating that a corporation
    which “owns an interest” in the operator meets the financial
    test.
    This conflicting provision appears to be drawn from R84-
    22,
    in which the Board determined that,
    under Illinois law, there
    is no reason to limit guarantees to parent corporations:
    any
    ownership interest in the operator would support a valid
    guarantee.
    The Board proposes to use only the language from R84-
    22 and R88—7 and not limit guarantees to only parent corporations
    (Section 848.415).
    Gross Revenue Test
    In R84—22 the Board added a “gross revenue test” to the
    financial test.
    Section 848.404(c) (1) of the Agency proposal
    includes the definition of “gross revenue”, and subsections
    (g)
    and
    (h) make reference to the test.
    However, the test itself
    appears to be missing from the proposal.
    In R84-22 and R88-7,
    the gross revenue test limits the
    financial test to operators who derive less than half their gross
    revenues from waste disposal operations.
    This was added to
    recognize that the RCRA financial test was derived from a USEPA
    study of failure rates of diversified manufacturing operations,
    and hence could not predict failure rates for the general waste
    disposal business.
    The Board therefore excluded.firms which were
    primarily waste disposal from the test (1R.252).
    It is clear that the gross revenue test itself cannot be
    used in the waste tire rules since its terms do not reflect the
    nature of the used tire business.
    Arguably,
    it should be adapted
    120—134
    23
    so as to exclude persons who are primarily involved in tire
    disposal.
    However,
    it is not clear whether tire disposal
    qualifies as an industry in and of itself.
    Rather,
    it appears to
    be an activity which is primarily ancillary to the manufacture,
    sale and remanufacture of tires, and to the waste disposal
    industry.
    Since it seems unlikely that many of these people are
    primarily deriving their revenue from used tires,
    there appears
    to be no need to insert the gross revenue test.
    The Board has
    therefore omitted it.
    Operator’s Bond Without Surety
    The RCRA rules allow the operator to meet the financial
    assurance requirement if either the operator or a parent meet a
    financial test.
    A weakness in this approach is that at no point
    in the RCRA rules does either the operator or the parent ever
    promise to pay the amount of the cost estimate if the operator
    fails to close.
    To collect under the RCRA rules,
    the Agency
    would have to argue some sort of implied obligation in the rules.
    The Board closed this loophole in R84-22 and R88-7
    (lR.220).
    The
    Board required that the operator or “parent” using the financial
    test file a bond without surety promising to pay.
    The Agency’s proposal,
    in Section 848.404(h),
    requires the
    parent bond,
    but omits
    it with respect to the operator using the
    financial test himself
    (lR..229).
    The Board proposes to require
    both bonds.
    Differences Between the Board Proposal and R88-7
    As noted above, the Board has mainly followed the R88-7
    proposal.
    However, the Board has departed from R88-7 and instead
    followed the Agency proposal and RCRA financial assurance rules
    on two points,
    and departed from R88-7
    on an unrelated third
    point.
    The Board proposes to modify the R88-7 language by
    (1)
    using the R88—7 language concerning extensions of letters of
    credit with automatic default on failure to extend (lR.218), and
    (2) using the RCRA model language concerning standby trust funds
    (1R.201).
    In addition, the Board has dropped FSLIC insurance as
    an indicator of solvency of a financial institution.
    Automatic Defaults
    The RCRA rules
    (and Agency Proposal)
    have a provision in
    which a financial institution must pay on a letter of credit if
    the operator is unable to renew the letter of credit or obtain
    alternative financial .assurance on expiration of.the letter.
    (See 40 CFR 265.143(c) (5)
    and
    (9))
    Thus the financial
    institution is guaranteeing not only the operator’s performance,
    but its ability to obtain financial assurance in the future.
    120—135
    24
    In R84-22 the Board received testimony from experts to the
    effect that financial institutions would not issue letters of
    credit or other instruments with “automatic defaults.”
    The Board
    substituted alternative language intended to make letters of
    credit more available.
    However, the Agency’s experience has been
    that the R84-22 and R88-7 default provision is in practice no
    more acceptable to the financial institutions.
    And, since 1984,
    financial institutions have become accustomed to the RCRA
    “automatic default.”
    Therefore,
    the R84—22 and R88—7 language
    has failed in its basic goal of making letters of credit more
    available.
    Now the RCRA language appears to be
    acceptable to the
    financial institutions, and easier for the agency to administer.
    Therefore, the Board has returned to the RCRA language.
    Standby Trust Funds
    The RCRA rules
    (and Agency Proposal)
    require that the
    operator establish a “standby trust fund” which receives the
    proceeds of the financial assurance in the event
    of default.
    The
    trustee pays out the funds
    at the direction of the Agency to
    perform corrective action.
    The alternative to a standby trust is
    to have the proceeds paid directly to the State Treasury.
    The problem with paying into the State Treasury is that,
    first,
    there needs to be a special fund to receive the money, and
    second, any monies received are potentially subject to the
    appropriation process before they are spent.
    The standby trust
    avoids these complications.
    However, the operator must pay a
    premium to the trustee each year.
    In R84-22 and R88-7, there was a special fund in the
    Treasury to receive the proceeds of financial assurance.
    The
    Board was able to require the proceeds to be payable to that
    fund.
    There
    is no appropriate fund for used tires.
    FSLIC Insurance
    In R84-22,
    which implemented Section 21.1
    of the Act, the
    Board limited financial institutions to those which are properly
    qualified to do business in Illinois (1R.l98) The Board addressed
    the question of the qualifications of a financial institution to
    issue letters of credit.
    In Illinois the Commissioner of Banks
    and Trusts regulates these banking activities.
    However,
    federally regulated and out-of-State banks may be able to
    lawfully issue letters of credit, without being regulated by the
    Commissioner.
    At hearings it was suggested that FDIC or FSLIC
    insurance was a sufficient indicator of solvency (R84—22(C),
    66
    PCB 463,501;
    November 21,
    1985).
    The Board therefore added this
    as a qualification.
    Upon further review in this proceeding,
    the Board has
    concluded that FSLIC insurance should be deleted as an indicator
    120—136
    25
    of solvency.
    If the institution which issues a letter of credit
    becomes insolvent, the State will not be able to collect the
    proceeds to pay for removal.
    It is important to emphasize that
    neither FDIC nor FSLIC insure letters of credit as such.
    Rather,
    the insurance is taken as an indicator of solvency.
    If a
    financial institution became insolvent, the letter of credit
    would be a liability, which would be abandoned,
    unless a
    purchasing institution specifically wanted to pick it up to
    retain the operator as a customer.
    This would be unlikely if the
    operator was in financial trouble.
    Since 1984, many institutions
    with FSLIC insurance have become insolvent.
    The Board therefore
    has not chosen to use FSLIC insurance as an indicator of solvency
    (~848.4l3(b)(2)).
    Section by Section Discussion of Financial Assurance
    Section 848.400
    Purpose and Scope
    This Section has been largely taken from the introductory
    Section to the Agency’s Revised proposal
    (lR.243).
    Section 848.401
    Upgrading Financial Assurance
    This Section is similar to Section 811.701,
    except that
    references to the gross revenue test have been dropped.
    Section 848.402
    Release of Financial Institution
    This is the same as Section 811.702, except that references
    to insurers have been dropped.
    The reference to “sureties”
    remains, because the Section would apply to a parent corporation
    guarantee,
    which would include a bond,
    as discussed below.
    Section 848.403
    Application of Proceeds and Appeal
    This is the same as Section 811.703,
    except that references
    to insurance policies and bonds have been dropped.
    Section 848.404
    Removal Cost Estimate
    This is largely taken from Section 848.402
    in the Agency’s
    revised proposal.
    However, subsections
    (f) and
    (j)
    are taken
    from Section 811.704.
    The latter is an important provision which
    allows the operator to zero elements of the cost estimate after
    completion of activities.
    This could be used to base a request
    for a release of part of the financial assurance.
    As is
    discussed in general above,
    this corresponds with Section
    848.400(c) (5)
    in the Agency’s revised proposal.
    The removal cost estimate must be revised annually.
    The
    operator has to provide additional financial assurance to cover
    120—13 7
    26
    any increase, and can request a release of any excess resulting
    from a reduction of the cost estimate.
    Pursuant to the Board’s
    STS suggestions, the Agency has provided that the cost estimate
    must be based on the higher of the current inventory or the
    greatest anticipated inventory (1R.172, 187,
    192).
    Section 848.406
    Mechanisms
    This is the same as Section 811.706, except that mechanisms
    which are not to be used have been removed from the list.
    Sections 848.407 and 848.408
    Multiple Mechanisms and Sites
    These Sections correspond with Sections 811.707 and 811.708.
    Note that there is no equivalent for Section 811.709, which
    concerns trust funds for unrelated sites.
    Section 848.410
    Trust Fund
    This Section is largely taken from Section 811.710, with
    some adaptations taken from Section 848.404(a)
    of the Agency’s
    revised proposal.
    The pay-in period is a fixed five-year period,
    commencing with the first receipt of tires, or January
    1,
    1992,
    whichever is later.
    If the operator establishes the trust after
    the beginning of the pay-in period, he has to fund it up to the
    level which would have been required had the trust been
    established initially (lR.170,
    174,
    176,
    179,
    182,
    190)
    The Agency recommended changes to the provisions governing
    release of funds from the trust.
    These were along the lines
    suggested by the Board’s STS
    (lR.l97).
    These changes are present
    below, but closer to the R88-7 format.
    There are no Sections corresponding with Sections 811.711
    and 811.712, which deal with bonds,
    which will not be used for
    used tires since they appear to be unavailable.
    Section 848.413
    Letter of Credit
    This Section is largely drawn from Section 811.713.
    As is
    discussed in general above,
    FSLIC insurance has been dropped as
    an indicator of solvency of the financial institution.
    Section 811.713 requires payments pursuant to a letter of
    credit to be made directly to the State.
    Consistent with the
    Agency’s proposal, Section 811.413(d) requires such payments to
    go .into a standby trust fund.
    The operator has to ~establisha
    trust under Section 811.410 to serve as a standby trust
    (1R.202)
    As
    is also discussed above,
    the Board has proposed to follow
    the RCRA extension and automatic default provisions,
    as suggested
    by the Agency.
    Section 848.413(g)
    is the extension,
    and Section
    120—138
    27
    848.413(e) (2) (E)
    is the automatic default.
    This provides for a
    one year letter of credit,
    which is automatically extended for
    another year,
    unless the bank gives a 120 day notice of intent
    not to renew.
    If the operator failed to renew, the Agency could
    draw on the letter of credit (R.218).
    This is referred to as an
    “automatic default”.
    This differs from R88—7, which provides a
    five year letter of credit, with a single one—year extension.
    Under R84—22 and R88—7,
    failure to renew is not an automatic
    default, but the Agency could obtain a closure order during the
    year,
    triggering a default.
    Section 848.415
    Self—Insurance
    This Section is largely drawn from Section 811.715,
    except
    that provisions concerning the gross revenue test have been
    removed for the reasons discussed in general above.
    Section 848.415(a)
    includes definitions of both generally
    accepted auditing and accounting principles
    (1R.227).
    Although
    both terms are used in the rules, the latter was omitted in R88-
    7.
    Section 848.415(c)
    and
    (h) require a bond without surety or
    parent corporation bond,
    depending on whether it is the operator
    or parent which must meet the financial test.
    As is discussed in
    general above, these allow the Agency to collect the cost
    estimate directly in a civil action, reverse the burden of proof
    and provide a liquidated amount of damages (1R.220).
    Under the
    RCRA-type system, the Agency would have to file an enforcement
    action, prove a violation and establish an appropriate penalty
    (R.222,
    231).
    There is a possibility that an operator using the financial
    test should be required to establish a standby trust
    fund,
    and
    that these bonds should be payable into that trust.
    However,
    this would impose an annual maintenance fee on the operator for
    the trust,
    in a situation in which it is unlikely that the trust
    would ever be funded.
    The Board has instead proposed that these
    mechanisms would be payable to the State.
    One consequence of
    this
    is that any proceeds would be general revenue, which would
    require an appropriation to spend,
    since there is no separate
    fund established for them.
    SUBPART E:
    TIRE REMOVAL AGREEMENTS
    The majority of the provisions relating to tire removal
    agreements are taken directly from the Act.
    As the Agency
    testified,
    a number of changes were necessary to achieve a
    consistent use of terminology and to clarify potentially
    120—139
    28
    ambiguous terms
    (lR.37).
    Language taken from the Act has been
    capitalized by the Board.
    Section 848.502
    Beginning January
    1,
    1992 no person may operate a tire
    disposal site,
    other than a landfill, without having an Agency
    approved tire removal agreement or having entered into a written
    agreement to participate in a consensual removal action under
    Section 55.3 of the Act.
    (Section 55(d)).
    This Section largely
    restates the language used in Section 55.4
    (a) of the Act.
    Section 848.503
    Subparagraph
    (a)
    of this Section recites the informational
    requirements contained in Section 55.4(b)
    of the Act.
    Subparagraph
    (b) provides for amendments to the tire removal
    agreement.
    Subparagraph
    (C)
    allows removal to begin once a
    removal agreement has been approved notwithstanding completion of
    certification.
    Section 848.504
    This section largely restates the time limitations for tire
    removal set forth at Section 55.4(d)
    of the Act.
    Section 848.505
    Removal Plan
    As is discussed in general above,
    the financial assurance
    documents are conditioned on compliance with a “removal plan”.
    This means
    the
    approved tire removal agreement,
    if there
    is one.
    Otherwise,
    it means the proposed agreement.
    The operator is
    given 90 days to upgrade financial assurance following approval
    of an agreement.
    This
    is related to Section 848.401, which would
    come into play if the approved agreement resulted in a change to
    the cost estimate.
    The operator may substitute new financial
    assurance,
    or may simply file a letter from the financial
    institutions acknowledging receipt of the approved plan,
    and
    indicating no objections.
    Section 848.506
    Initiation of Tire Removal
    This has been moved from Section 848.403 in the Agency’s
    revised proposal.
    It belongs with the removal rules,
    rather than
    the financial assurance rules
    (lR.214).
    Section 848.507
    This section reiterates the certification of removal
    completion provision of Section 55.4(c)
    of the Act.
    Section 848.508
    120—140
    29
    This section restates the provisions of Section 55.4
    (e)
    of
    the Act.
    Section 848.509
    This section restates tire provisions for Board review found
    at Section 55.4(f)
    of the Act.
    SUBPART F:
    TIRE TRANSPORTATION REQUIREMENTS
    Sections 848.601
    —
    848.606
    Section 848.601
    The Agency testified that the tire transportation
    registration program drew its language from analogous provisions
    in Part 809 relating to special waste haulers
    (lR.40,4l).
    If a
    vehicle transports more than 20 tires, the proposal mandates a
    current and valid registration with the Agency and the display of
    a placard issued by the Agency.
    The Agency originally proposed
    that the tires must be covered.
    The revised proposal withdrew
    this requirement.
    The management standards (848.202(b) (6)) prohibit sites from
    receiving tires unless the transportation requirements are
    met.
    Similarly, persons are prohibited from delivering tires to a site
    unless these standards are met
    (848.601(b)).
    Sections 848.602
    —
    608
    Sections 848.602 through 848.608 provide procedures for
    submission and approval of registration, applications and
    placarding.
    The Board slightly altered bhe language contained in
    these Sections to add references to the Act where
    specific
    statutory authority existed.
    The Board also made minor
    clarifying amendments to these subsections.
    Section 848.Appendix A
    The Board has changed
    in this proposed rule the financial
    assurance forms adopted in R88—7,
    consistent with the discussion
    in Subpart D of this Opinion.
    120—141
    30
    ORDER
    The Board
    hereby
    proposes
    for Second Notice the following
    rule,
    35
    Ill.
    Adm.
    Code 848.
    The Board also hereby directs that
    Second Notice of the following proposed rule be submitted to the
    Joint Committee on Administrative Rules.
    In addition, the Board directs that Subdocket B be opened
    to deal with differing standards for tire retreaders, to deal with
    issues concerning pesticide application, to propose modifications.
    to Docket A and to repeal Part 849.
    Changes from First Notice to Second Notice are indicated by
    strike-out and underline.
    TITLE 35:
    ENVIRONMENTAL PROTECTION
    SUBTITLE
    G:
    WASTE DISPOSAL
    CHAPTER ~1I: POLLUTION CONTROL BOARD
    SUBCHAPTER m:
    USED AND WASTE TIRES
    PART 848
    MANAGEMENT OF USED AND WASTE TIRES
    SUBPART A:
    GENERAL
    Section
    848.101
    848. 102
    848.103
    848.104
    848.105
    Applicability
    Severability
    Other Regulations
    Definitions
    Incorporation by Reference
    SUBPART B:
    MANAGEMENT STANDARDS
    Section
    848.201
    848.202
    848.203
    848 .204
    848.205
    Applicability
    Requirements
    Contingency Plan
    Storage of Used and Waste Tires Within Buildings
    Pesticide Treatment
    Section
    848.301
    848.302
    SUBPART C:
    RECORDKEEPING AND REPORTING
    Applicability
    Records
    120—142
    31
    848.303
    848.304
    848.305
    848.306
    Section
    843.401
    Daily
    Tire
    Record
    Annual
    Tire
    Summary
    Retention
    of
    Records
    Certification
    SUBPART
    D:
    FINANCIAL
    ASSURANCE
    Applicability
    848.400
    848.401
    848.402
    848.403
    848.404
    848.406
    848.407
    848.408
    848.410
    848.413
    848.415
    Scope
    and
    Applicability
    p~pgrading
    Financial
    Assurance
    Release of Financial Institution
    Application of Proceeds and Appeal
    Removal Cost Estimate
    Mechanisms
    for
    Financial
    Assurance
    Use
    of
    Multiple
    Financial
    Mechanisms
    Use
    of
    a
    Financial Mechanism for Multiple
    Trust
    Fund
    Letter
    of
    Credit
    Self—Insurance
    for
    Non—commercial
    Sites
    SUBPART
    E:
    TIRE
    REMOVAL
    AGREEMENTS
    Section
    848.501
    848.502
    848.503
    848.504
    848.505
    848.506
    848.
    5052
    848.
    5068
    848.
    507-i
    Section
    848.601
    848.602
    848.603
    848
    .
    604
    848.605
    848.606
    Applicability
    Removal
    Performance
    Standard
    Contents of Proposed Tire Removal Agreements
    Time Allowed for Tire Removal
    Removal
    Plan
    Initiation of Tire Removal
    Certification of Removal Completion
    Agency Approval
    Board Review
    SUBPART F: TIRE TRANSPORTATION REQUIREMENTS
    Tire Transportation Prohibitions
    Tire Transportation Registrations
    Agency Approval of Registrations
    Registration No Defense
    Duration and Renewal
    Vehicle Placarding
    848 .Appendix A FINANCIAL ASSURANCE FORMS
    Illustration A “Trust Agreement”
    Illustration B “Certification of Acknowledgement”
    120—143
    32
    Illustration E “Irrevocable Standby Letter of Credit”
    Illustration
    G
    “Owner
    or
    Operator’s
    Bond
    Without
    Surety”
    Illustration H “Owner or Operator’s Bond With Parent
    Surety”
    Illustration
    I “Letter from the Chief Financial Officer”
    AUTHORITY:
    Implementing Section 55.2 and authorized by Section 2~
    of the Environmental Protection Act (“Act”)-
    (Ill. Rev. Stat.
    1989,
    ch.
    111 1/2, pars.
    1055.2 and 1027).
    SOURCE:
    Adopted in R90-9, at
    Ill.
    Reg.
    ,
    effective
    NOTE:
    Capitalization denotes statutory language.
    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
    prohibitionE
    relative to the storage, processing,
    disposal
    and transportatior
    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 shall
    not
    apply
    to any site
    at which
    tires are retreaded if the owner
    or
    operator
    of
    such
    a
    site holds
    a
    valid
    registration
    as
    a
    tire
    retreader pursuant to 49 CFR 571.117 and 49 CFR 574
    (incorporated
    by reference at Section
    848.105)
    and complies with
    35
    Ill.
    Adm.
    Code
    849.
    The
    requirements
    set
    forth
    in
    these
    rules
    arc
    in
    addition to, and do not supplant, the prohibitions, standards, and
    ~equirements
    set
    forth
    in
    Section
    55
    of
    the
    Environmcntal
    Protection Act
    (“Act”)
    (Ill.
    Rev.
    Stat.
    ch.
    111
    l,’2,
    par.
    1055).
    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.
    120—144
    33
    Section 848.103
    Other Regulations
    a)
    riirnyjs
    ions.
    b)
    The
    following
    are
    specific
    examples
    of
    other
    provisio-nsrequlations which may be applicable
    to
    sites
    ~
    facilities subject to this Part:
    1)
    Facilities
    combusting
    used
    and
    waste
    tires
    in
    enclosed
    devices
    are
    subject
    to
    35
    Ill.
    Adm.
    Code.Subtjtle B:
    Air Pollution-rI
    2)
    Facilities which discharge wast-ewater to waters of
    the State
    or
    sewers are subject
    to
    35
    Ill.
    Adin.
    Code.Subtjtle C:
    Water Pollution--j
    3)
    Facilities
    processing —used
    and
    waste
    tires
    a-re
    subject
    to
    35
    Ill.
    Adm.
    Code.Subtitle
    H:
    Noise
    Pollution-:-;
    and
    35
    Ill.
    Adm.
    Code.Subtitile
    G:
    Waste Disposal.
    4)
    Transporters are subject to 35 Ill.
    Adm. Code 809:
    Special Waste Hauling,
    if used and waste tires are
    commingled with special wastes in transport
    5)
    Facilities
    disposing
    used
    and
    waste
    tires
    are
    subject to 35
    Ill.
    Adm.
    Code.
    807.
    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 ttherein.
    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
    (Ill.
    Rev. Stat 1989, ch 111 1/2,
    par.
    1001 et seq.).
    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. Unless otherwise expressly
    stated, persons and facilities subject to this Part are
    also subject to other Board regulations.
    Applicability
    is determined on the basis of the language in the other
    120—145
    34
    “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
    FLLED
    WITH
    CEMENT
    OR
    OTHER
    MATERIAL TO
    PREVENT
    THE
    ACCUMULATION
    OF WATER.
    “ALTERATION” OR “ALTERING” MEANS
    ACTION WHICH PRODUCES AN ALTERED TIRE.
    (Ill. Rev. Stat.
    1989 Ch. 111 1/2, par.
    1054.01) (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.
    -(-1-11.
    Rev.
    Stat. l98~ch.
    lii 1/2, par.
    1054.02)
    (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.
    (Ill.
    Rev.
    Stat.
    1989
    ch.
    ±1-11/2,
    par. 1054.03) (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.
    (Ill.
    Rev.
    Stat.
    1989
    ch.
    111
    1/2,
    par.
    l054~—0-4)(Section 54.04
    of the Act)
    “NEW
    TIRE”
    MEANS
    A
    TIRE
    WHICH
    HAS
    NEVER BEEN
    PLACED
    ON
    A
    VEHICLE WHEEL RIM.
    (Ill.
    Rev. Stat.
    1909 ch. 111
    1/2,
    per.
    lpSection 54.05 of the Act)
    “PROCESSING”
    MEANS
    THE
    ALTERING,
    CONVERTING
    OR
    REPROCESSING OF USED OR WASTE TIRES.
    (Ill.
    Rev.
    Stat.
    ~-9-89ch.
    111
    l,’2,
    par. lOSection 54.06 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.
    (Ill.
    Rev.
    Stat.
    1939
    eh.
    ill
    l,’2,
    par.
    10 Section 54.07 of the Act)
    120—146
    35
    “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.
    (Ill.
    Rev.
    Stat.
    1909 ch.
    lii 1/2,
    par.
    10
    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.
    (Ill. Rev. Stat.
    198-9
    e~h. 111 1/2, par.
    10 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.
    (Ill.
    Rev.
    stat. 1989 ch. 111 1/2,
    par.
    10
    Section
    54.10
    of the Act)
    “TIRE
    DISPOSAL
    SITE”
    MEANS
    A
    SITE
    WHERE
    USED
    TIRES
    HAVE
    BEEN
    DISPOSED
    OF
    OTHER
    THAN
    ,~,
    A
    SANITARY
    LANDFILL
    PERMITTED BY THE AGENCY--. or operated in accordance with
    Section
    55
    (d)
    of the Act.
    (Ill.
    Rev.
    Stat.
    1989 ch.
    111
    l,’2, par.
    10 Section 54.11 of the Act)
    “Tire retreader” means
    a person who retreads used tires.
    “TIRE
    STORAGE SITE” MEANS
    A SITE WHERE USED TIRES ARE
    STORED OR PROCESSED, OTHER THAN n-THE SITE AT WHICH THE
    TIRES WERE SEPARATED FROM THE VEHICLE WHEEL RIM, ~2-)-THE
    SITE WHERE THE USED TIRES WERE ACCEPTED IN TRADE AS PART
    OF A SALE OF NEW TIRES,
    OR
    3-)-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.
    (Ill.
    11ev. Stat. 1939 ch.
    111 1/2,
    par.
    10 Section 54.12 of the Act)
    “T-ire Transporter” means a person who transports used or
    waste tires in a vehicle.
    “Tire Storage Unit” means a
    a pile of tires or a group
    of piles of tires at a tire storage site.
    “Tire
    Transporter”
    means
    a
    Derson
    who
    transports used or waste tires in a vehicle.
    120—147
    36
    “USED TIRE” MEANS A WORN, DAMAGED OR DEFECTIVE TIRE WHICH
    IS NOT MOUNTED ON A VEHICLE WHEEL RIM.
    (Ill.
    11ev.
    Stat.
    1909 ch.
    11-1--l/2,
    par.
    10 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.
    (Ill.
    Rev.
    Stat.
    1989
    ch.
    111
    1,’2,
    par.
    ~lO 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.
    (Ill.
    11ev.
    Stat.
    1989
    ch.
    111
    1/2,
    par.
    10
    Section
    54.15 of the Act)
    “WASTE
    TIRE”
    MEANS
    A
    USED
    TIRE
    THAT
    HAS BEEN DISPOSED
    OF.
    (Ill.
    Rev.
    Stat.
    1989
    ch.
    ill
    l,’2,
    par.
    10
    Section
    54.16 of the Act)
    Section 848.105
    Incorporation by Reference
    ~j
    The
    Board
    incorporates
    the
    following
    documents
    by
    reference:
    National
    Consensus Standard,
    NFPA
    23lD
    (1989)
    by reference.
    ~
    49 CFR 571.117
    (1989).
    fl
    49
    CFR 574
    (1989)
    il
    “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.
    ~
    “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.
    ~j
    This
    Section
    incorporates
    no
    later
    amendments
    or
    editions.
    120—148
    37
    SUBPART B:
    MANAGEMENT STANDARDS
    Section 848.201
    Applicability
    ~
    This Part does not apply to used and waste tires exempted
    pursuant to Section 55.1 of the Act.
    a-)-~j~Owners and operators of tire disposal storage sites and
    tire
    storage
    disposal
    sites whose
    operations
    are
    not
    specifically exempted by subsections
    (~)
    through
    Cd
    ~)
    shall:
    1)
    Meet the requirements of this Cubp~artby 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 Cubp~artprior
    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.
    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
    S-ubp~art.
    However,
    the prohibitions
    of Section
    55 of
    the Act do
    apply to such sites.
    Sites where less than 50 used or
    ~1—~
    1—i
    ~
    r~r~
    4
    r~i—~ rir’~f
    exeiapted
    frr~rn
    1h~
    e~çjjThe requirements of ~his
    Subp~artdedoes not apply to
    used
    or
    waste
    tires
    disposed
    in
    permitted
    areas
    of
    sanitary landfills permitted by the Agency pursuant to
    35 Ill. Adm.
    Code. &W7-Subtitle G:
    Waste Disposal.
    Any
    used or waste tires thus
    ~ir~r1
    shall not be included
    in determining the number of tires
    for purposes of the
    requirements of this Subpart.
    Used or waste tires stored
    at a sanitary landfill permitted pursuant to 35 Ill. Adm.
    Code.
    Bo7Subtitle
    G:
    Waste Disposal are subject to the
    requirements of this Cubp~art.
    es ~~oreu witnin a building are not subject to
    equirements ot tnis
    Subpart if:
    1)
    the building has a roof extending over all sides of
    the building which is imp~ermeableto precipitation;
    A
    ._.l 1
    ~
    ~
    doors-
    ~
    —4-~.
    ~orki~~,
    ~
    ~
    ~
    ~
    secured
    to
    prevent
    unauthorized
    access.
    .----
    .-....A~-
    -~A
    requ~remento
    this Suxpart.
    -,
    ‘.
    120—149
    38
    ~j
    Owners or Operators who comply with the requirements of
    this Part are not
    sub-ject to the provisions of
    35
    Ill.
    Adm. Code 849.
    fl.
    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
    fte-t more than 500 used or waste tires
    are located the following requirements shall
    apply.
    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.
    ~4J
    Used or waste tires shall be drained of water on
    the day of generation or receipt.
    4-)-~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
    ~
    waste
    tires
    received
    at the
    site before
    June
    1,
    1989,
    shall
    be
    altered,
    reprocessed,
    converted,
    120—150
    39
    covered or
    otherwise prevented from accumulating
    water by no later than January
    1,
    1992.
    &)-~j.USED OR WASTE TIRES SHALL NOT BE ABANDONED, DUMPED
    OR
    DISPOSED
    ON
    PRIVATE
    OR
    PUBLIC
    PROPERTY
    IN
    ILLINOIS,
    EXCEPT IN A
    SANITARY
    LANDFILL PERMITTED
    BY THE AGENCY PURSUANT TO
    35
    ILL.
    ADM.
    CODE PART
    807.
    (Section 55(a)(5) of the Act)
    6-~-fl.Used or waste tires shall
    not be accepted from
    a
    vehicle
    in which more than ~0
    tires
    are loaded
    unless the tires were
    ti
    n~rnr~rted
    to the site:
    A)
    in an enclosed vehicle or in a vehicle in which
    the
    tires
    were
    covered
    with
    a
    material
    to water;
    ana
    B~-
    the vehicle displays
    a placard issued by the
    Agency under Section 848:
    Subpart
    F.
    ~7-)-~j.
    Tires
    shall
    not be accumulated in an area
    if
    the
    grade of
    this area the pround surface exceeds two
    percent slope unless the requirements of subsection
    (d) (3) of this Section are met.
    C)
    In addition to the requirements set forth
    in subsection
    (b),
    the
    owner
    or
    operator
    shall
    comply
    with
    the
    following requirements shall apply at sites at which more
    than 500 used or waste tires are located.
    1)
    The owner
    or operator shall
    have and maintain
    a-A
    contingency plan which meets
    the requirements
    of
    Section 848.203 shall be maintained.
    2)
    The
    owner
    or operator
    shall
    maintain
    records
    in
    accordance with Section 848- 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.
    120—15 1
    40
    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 (feet)
    8
    12
    16
    20
    25
    56
    67
    77
    85
    Unit Face
    50
    75
    93
    107
    118
    Dimensions
    100
    100
    128
    146
    164
    (feet)
    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
    (h)
    and
    (c)
    of
    this
    Section,
    the
    owner
    or operator shall
    comply with the following requirements
    shall
    apply
    at
    sites at which more than 2,50010,000 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
    120—152
    41
    berm or
    other
    structure not
    less than
    2
    feet
    in
    height.
    The owner or operator shall provide a means
    for
    access
    through
    or
    over
    the
    berm
    or
    other
    structure accessible by fire fighting equipment.
    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
    pperator must meet the contingency plan must
    meet the
    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, which
    could
    threaten
    human
    health
    or
    the
    environment,
    or
    evidence of insect 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 fires and insect mosquito breeding in used
    or waste tires.
    e)
    ______________
    ~1
    ‘.
    LU~
    i~yeneythat pesticides will be
    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
    Th4~e
    contingency
    plan must include ~n evacuation plan
    procedures
    for
    site
    personnel.
    This
    plan must 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
    e
    provisions
    for
    pesticide application plan or other measures for control
    of
    insect mosquito breeding
    in used and waste
    tires.
    After July
    1,
    1994,
    pesticides- may only be applied to
    tires
    as
    provided
    in
    the
    contingency
    plan
    in
    response
    to:
    1)
    evidence
    of
    insect
    production
    in
    used
    or
    waste
    tires;
    and
    after noti~-te-~’”
    applied.
    120—153
    42
    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 immediately
    amended
    within
    30
    days,
    if
    the
    plan
    fails
    in
    an
    emergency,
    the
    site changes
    in
    a way that materially
    increases
    the potential
    risk
    for
    fires,
    run-off
    from
    fires
    or
    insect
    breeding
    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
    ~j
    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.
    ~j
    Used
    or
    waste
    tires
    may
    be
    stored
    within
    a
    building
    if:
    fl
    the
    tires
    are
    drained
    of
    all
    water
    prior
    to
    placement in the building
    ~
    all of building’s windows and doors are in working
    order
    and
    are
    secured
    to
    prevent
    unauthorized
    access
    ~j
    the building
    is
    fully enclosed and has
    a roof and
    sides which are impermeable to precipitation; and
    ~j
    the
    building
    is
    not
    a
    single
    family
    home
    or
    a
    residential dwelling.
    ~j
    In addition to the requirements set forth
    in subsection
    Lk).
    if 500 or more used or waste tires are stored within
    a building then the owner or operator shall:
    jj
    develop
    a
    tire storage plan
    in consultation with
    the local fire department or the state fire marshal
    meeting the following requirements:
    ~
    the plan shall be developed by considering the
    the
    type
    of
    building
    to
    be
    used
    for
    tire
    storage,
    i.e. warehouse or grain elevator, and
    120—154
    43
    the type of used or waste tires being stored,
    i.e. whole or shredded
    ~j
    the plan shall include, but not be limited to:
    the tire storage arran~ement; 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
    ~j
    a copy of the tire storageplan shall be filed
    with the A~encvwithin 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
    21
    have and maintain a
    contingency plan which meets
    the requirements of Section 848.203;
    and
    ~j
    meet the recordkeepinci and reporting requirements
    of Subpart
    C.
    ~j
    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 Section
    848.203
    shall meet the following reauirements:
    ~j
    Maintain a record of pesticide use at the site.
    Such
    a record shall include the following information for each
    aPPlication:
    fl
    Date of pesticide application
    21
    Number of used or waste tires treated
    21
    Amount of pesticide applied; and
    ji.
    TYPe of pesticide used.
    ~j
    Notify the Agency of pesticide use within 10 days of each
    application.
    The
    notification
    shall
    include
    the
    information listed in subsection
    (a).
    120—155
    44
    ~
    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:
    Ilinois
    Department
    of
    Agriculture
    Bureau
    of
    Plant
    &
    Apiary
    Protection
    State Fairgrounds
    P.O. Box 19281
    Srpinc~field,IL 62794—9281
    SUBPART C:
    RECORDKEEPING
    AND
    REPORTING
    Section 848.301
    Applicability
    The requirements
    of this
    Subpart
    shall
    appy to 14
    an
    owner
    or
    operator of
    a tire storage site or
    a tire disposal
    site ~
    is
    required by Section 848.202 by the management standards of Subpart
    ~ to maintain records in accordance with this Subpart, the records
    and recordkceping shall meet the requirements of 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
    maintáinP~he Daily
    Tire
    Record shall
    be maintained at the site ai~d,suchrecord
    shall include the day of the week,
    the date,
    the Agency
    designated site number and the site name and address.
    b)
    The
    following
    information relative
    to used and waste
    tires shall be recorded in the Daily Tire Record:
    1)
    The number end weight or volume
    of whole used or
    waste tires and the weight of chopped or shredded
    of tires received at the site during the operating
    business day.
    2)
    The r~-umberand weight or volume
    of whole used
    or
    waste
    tires and the weight of chopped or shredded
    tires transported from the site during the operating
    120—15 6
    45
    business day and the destination of the tires
    so
    transported.
    3)
    The
    total
    number
    of
    whole
    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 number
    and
    weight or volume
    of whole used
    or
    waste tires and the weight of chopped or shredded
    tires
    burned
    or
    coinbusted
    during
    the
    operating
    business day.
    ~j
    The number of tires shall be determined in terms of the
    passenger tire equivalent
    (PTE)
    by weight or by volume
    as follows:
    fl
    PTE based on weight:
    PTE
    =
    W
    /
    PTE weight factor
    where,
    W
    =
    weight of whole or shredded tires
    (lb)
    PTE weight factor
    =
    25 lb/PTE
    ii
    PTE based on volume:
    PTE
    =
    V / PTE volume factor
    where,
    V
    =
    volume of whole or shredded tires
    (ft3~
    PTE volume factors:
    for shredded tires,
    1.25
    ft3/ PTE;
    for whole tires,
    4.00 ft~/PTE.
    ~j
    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).
    ~j
    The
    owner
    or
    operator
    may establish
    Procedures
    different
    from
    those
    specified
    in subsection
    (c)
    fqr the purposes
    of
    estimating
    the
    number
    of
    tires
    as
    br:,
    as
    the
    number
    of
    tires
    are
    estimated
    in
    terms
    of
    assenqer
    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.
    120—15 7
    46
    fl
    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, method
    of stacking, within 30 days of the effective date of this
    Part for Agency approval.
    gj
    For the purposes of this Part, “passenger tire equivale-
    nt”
    (PTE) means an average sized passenger tire weighing
    25
    lb. and occupying a volume of 4.0 ft~when whole or
    1.25 ft~when shredded.
    e~) Entries on the Daily Tire Record as required by subsec-
    tion (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 A~nAnnual
    Tire
    Summary
    shall
    be maintained
    at the
    site;
    such
    record
    shalle~d—s~-&l-1-
    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 number end weight or volume of whole used
    or
    waste tires and the weight of chopped or shredded
    of tires received at the site during ‘the calendar
    year.
    2)
    The number
    and weight or volume of whole used or
    waste tires
    and the weight of chopped or shredded
    tires transported from the site during the calendar
    year.
    3)
    The
    total
    number
    of
    whole
    used
    or
    waste
    tires
    determined
    in
    terms
    of
    the
    passenger
    tire
    equivalent
    (PTE)
    remaining
    in
    storage
    at
    the
    conclusion of the
    calendar year.
    120—158
    47
    4)
    The
    number
    and
    weight
    or volume of whole used
    or
    waste tires and the weight of chopped or shredded
    tires burned or coinbusted 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
    desiginated 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 for submitting false information, including the
    possibility
    of
    fine and imprisonment
    for knowing
    violations.
    SUBPART D:
    FINANCIAL ASSURANCE
    Section 848.401
    Applicability
    a)
    ‘T’hr’
    ,—~riii4
    of thi~~~art
    shall apply to
    and -operators
    of t..~
    ~
    sites
    and tire diap
    sites,
    ~
    -
    ‘ -
    “‘
    .
    .
    --
    ~
    ~
    ~
    (C),
    for tL.~~ites
    and tire disposal sites where used or waste tires
    are
    disposed or stored prior to January
    1,
    1992,
    owners and
    operators
    shall
    comply
    with the
    requirements
    of
    this
    Subpart
    by
    January
    1,
    1992.
    Unless
    exempted
    by
    .-.-~
    -‘y’3;-,
    I-
    pr’~’’
    n~r~
    r~TTn~r~J1 ~
    1
    Ti
    i~fl
    1
    ~
    ~
    I t•il•i
    h
    )
    i
    i
    ~.
    ~i
    Ti
    ~
    iii
    rir
    Ti
    ri
    r’~~r~r
    120—159
    subsection
    (C),
    for tire storage sites and tire disposal
    sites
    where
    used
    or
    waste
    tires
    are
    first
    stored
    or
    disposed after
    January
    1,
    1992,
    owners
    and operators
    shall comply with the requirements of this Subpart prior
    to storing or disposing any used or waste tires
    at the
    site.
    -1)
    Owners
    and
    operators
    where
    the
    real
    estate
    -of
    the
    site
    is
    owned
    by
    the
    fcdcral
    government
    or
    an
    agency
    thereof,
    the
    State
    or
    Illinois
    or
    an agency thereof
    or
    a unit of local government.
    2)
    Owners and operators of tire disposal sites where
    the
    site
    ha3
    been permitted by the Agency under 35
    Ill.
    Adm.
    Code
    007
    for
    the
    disposal
    of
    solid
    waste
    at
    a sanitary landfill.
    If
    used
    or
    waste
    tires
    are
    stored
    at
    the site in addition to being disposed at
    the
    site
    then
    the
    storage
    activities,
    unless
    otherwise exempted, are subject to the requirements
    of this Subpart.
    3)
    Owners
    and operators 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
    notice
    of
    activity
    annually
    submitted to the Agency under Section 55(c)
    of the
    Act.
    4)
    Owners
    and
    operators
    where,
    as
    reported
    on
    the
    notice
    of
    activities
    annually
    submitted
    to
    the
    Agency
    under
    Subsection
    55(c)
    of
    the Act, less than
    5000
    used
    or
    waste tires are stored at the site and
    1-ess
    than
    50
    used
    or
    waste
    tires
    have
    been disposed,
    -if
    the
    owner
    or
    operator
    has
    not
    been
    issued
    2
    written
    notices
    under
    Section
    55.5
    of
    the
    Act
    in
    any
    calendar
    year
    for
    violation
    of
    subsection
    (a),
    (b)
    or
    (c)
    of
    Section
    55
    of
    the
    Act.
    5)
    -a-ne ~
    ~if
    ti~
    a~3 sites wh~~
    written
    approval
    of
    a tire removal agreement has
    been obtained from the Agency under Section
    -848:
    S-ubpart E Section 848.Subpart E and tires have been
    or
    are being removed
    from the site
    in accordance
    ~.J,
    f.h
    thr
    ~r~hrfi111e
    in
    t.hc~ t-4
    vr~
    i~mr~v-~1
    ~
    -
    120—160
    48
    -3-
    ~~i
    ~
    requirements of this Subpart:
    Cost Estimate for Tire Removal
    a)
    Beginning January
    1,
    1992, the owner or operator shall
    annually submit to the Agency a written estimate of the
    cost of removing all used and waste tires from the site.
    The cost estimate shall be submitted with the notice of
    activity annually submitted to the Agency under Section
    55(c)
    of the Act.
    b)
    The estimate must equal the cost of removing the maximum
    number of used and waste tires reported on the notice of
    activity for the calendar year as submitted to the Agency
    under Section 55(c)
    of the Act.
    ~-~)
    Phr~—~
    T
    fl~!
    -cm
    th~~
    ~
    tô
    th~~
    cwrmr
    cr
    ~stima~____
    ‘-
    based
    operator of hiring a third party to r-einove tne usca una
    waste tires from the site.
    A third party is
    a party who
    is neither
    a
    parent nor
    a
    subsidiary of the owner
    or
    operator.
    Notwithstanding
    the
    above,
    an
    owner
    or
    operator may use costs to the Agency under a contract to
    perform tire removal actions for the area
    in -which the
    site
    is located as a basis for determining the removal
    cost estimate.
    Section
    Financial
    Assurance for Tire Removal
    An owner
    or operator shall establish financial assurance
    for the
    -removal
    of
    used
    and
    waste
    tires
    from
    the
    site.
    The
    owner
    or
    --~-~-
    ~hnll choose from the options as specified in subsections
    (a) through
    (c).
    ‘
    .—,_________I
    I)
    An
    owner
    or operator may satisfy the requirements
    of this Section by establishing a removal trust fund
    which conforms to the requirements of this paragraph
    and submitting an original, signed duplicate of the
    trust agreement to the Agency.
    The trustee must be
    an
    entity
    which
    has
    the
    authority
    to
    act
    as
    a
    trustee and whose trust operations are regulated and
    examined by a Federal or State agency.
    -~,
    ‘.
    ic~
    ~Jr
    nri
    C
    ~-
    Ci I5~IT
    nriri~~u,c~nt
    must
    hc
    ri~
    fl
    Y~1~
    f
    ii
    ~
    1•• ~
    jf
    tL~ ~
    specified
    in
    Section
    848.~~ndix
    A,
    ~
    A and the trust agreement must be accompanied by a
    formal certification of acknowledgment as specified
    in Section 840.Appendix A, Illustration B.
    Schedule
    A of the trust agreement must be updated within 60
    days
    after
    a
    change
    in
    the
    amount
    of
    the
    current
    removal cost estimate covered by the agreement.
    120—161
    Section 848.402
    49
    50
    3)
    Payments into the tru3t fund must be made annually
    by the owner or operator over the
    5 years beginning
    January
    1,
    1992,
    or the date used or waste
    tires
    are first received, whichever is later.
    This period
    is
    hereafter
    referred
    to
    as
    the
    “pay-in
    period.”
    The payments
    into the removal trust
    fund must be
    made as follows:
    A)
    The first payment must be made before January
    1,
    1992
    or the date used
    or waste
    tires
    are
    first received at the facility,
    whichever
    is
    later.
    The
    first payment must be
    at
    least
    equal
    to
    the current removal
    cost estimate,
    except as provided in subsection
    (f), divided
    by
    5.
    ~4’HtI
    (I
    Sub
    ent
    ~J~LI~~,At3
    must
    be
    ~de-
    lat~
    tha~
    30
    days
    after
    each
    anniversary
    date
    of
    the
    fi
    r~if ii~’mTir,l—
    -
    Pht
    rnnriu,r~t— r~f
    ~.rir~h
    1h~Tir11TiTit-
    —
    payment must be determined by this
    formula:
    (CE
    CV)/Y
    where
    CE
    is
    the
    current
    removal
    cost
    estimate,
    CV
    is the current value of
    the trust fund and Y is the
    number
    rif
    ~-~-r~
    r~m~
    4
    ti
    4
    rirt
    4
    ii
    i’~i—iii
    -i
    period.
    .1
    4)
    The
    owner
    or
    operator
    may
    accelerate
    payments
    into
    the trust
    fund or may deposit the full amount
    of
    the current removal cost estimate at the time the
    fund is established.
    However, the owner-or operator
    shall maintain the value of the fund at no less than
    the
    value
    that
    the
    fund
    would
    have
    if
    annual
    payments
    were— made
    as
    specified
    in
    subsection
    (a) (3)
    5)
    If
    the
    owner
    or
    operator
    establishes
    a
    removal
    trust
    fund
    after
    having
    used
    one
    or
    more
    alternate
    mechanisms specified in this Section, ‘the owner or
    operator’s
    first
    payment
    must
    be
    in
    at
    least
    the
    amount
    that
    the
    fund
    would
    contain
    if
    the
    trust
    fund
    were
    established
    i-nitially
    and
    annual
    payments
    made
    as specified in subsection
    (a) (3).
    ~)
    the
    p~y in
    period
    is
    ~~leted,
    th~...
    operator
    shall
    annually
    compare
    the
    removal
    cost
    estimate
    with
    the
    trustee’s
    most
    recent
    annual
    valuation of the trust
    fund.
    If the value of the
    fund
    is
    less than the amount
    of the most recent
    estimate,
    the
    owner or
    operator,
    within
    120
    day-s
    120—162
    B)
    51
    after the change in the cost estimate, -shall either
    deposit an amount into the fund so—that its value
    after
    -this
    deposit at
    least equals the amount
    of
    the current removal cost estimate,
    or obtain other
    financial assurance as specified in this Section to
    c~rv~rcir
    thr’
    ~-1
    I
    ff~~’rpnc~p
    -
    7)
    If the value of the trust fund is greater than the
    total amount of
    the
    current removal cost -estimate,
    the owner or operator may
    submit a written request
    to the Agency for release of the amount in excess
    of
    the
    current
    removal
    cost
    esti~iate.
    3)
    If
    an
    owner
    or
    operator
    substitutes
    other
    financial
    assurance as specified in this Section
    for all or
    part of the trust
    fund,
    the owner or operator may
    s-u-bmit a written request to the Agency for release
    of the amount in excess of the current removal cost
    estimate
    covered
    by
    the
    trust
    fund.
    ~)
    Within 90 days after receiving a request from the
    owner or operator for release of funds as specified
    in subsections
    (a) (7)
    or
    (a) (8),
    the Agency shall
    instruct the trustee
    to release to
    the
    owner
    or
    operator
    such
    funds
    as
    the
    Agency
    specifies
    in
    writing.
    120—163
    ui)
    ~ffr’r
    1
    rur
    fi runl
    r~Thn1fal
    ,
    run
    -~,inningpart4e..
    or operator or another person authorized to conduct
    partial or final removal may request reimbursement
    for
    removal
    expenditures
    by
    submitting
    itemized
    bills
    to the Agency.
    The owner
    or operator may
    request reimbursement
    for partial removal only if
    sufficient funds are remaining in the trust fund to
    cover the maximum costs of removing all remaining
    used
    and
    waste
    tircs.
    Within
    60
    days
    after
    receiving
    bills
    for
    partial
    or
    final
    removal
    activities,
    the Agency shall
    instruct the trustee
    to make reimbursement in those amounts as the Agency
    specifies in writing if the Agency determines that
    the partial or
    final
    removal
    expenditures arc
    in
    accordance
    with
    the
    approved
    removal
    plan,
    or
    otherwise justified.
    If the Agency determines that
    the maximum cost of removal over the remaining life
    of the facility will be significantly greater than
    the value
    of
    the
    trust
    fund,
    it
    shall
    withhold
    reimbursement of such amounts as it deems pruden-t
    until
    it determines,
    in accordance with subsection
    (f),
    that
    the
    owner
    or
    operator
    is
    no
    longer
    required
    to
    maintain
    financial
    assurance
    for
    final
    removal
    of
    used
    and
    waste
    tires—at the
    facility.
    If
    the
    Agency
    does
    not
    instruct
    the
    trustee
    to
    make
    52
    such reimbursements,
    the Agency shall provide the
    owner or operator
    a detailed written statement of
    reasons.
    The Agenc~
    when:
    A)
    An
    owner
    or
    operator
    substitutes
    alternate
    financial
    assurance
    as
    specified
    in
    this
    Section; or
    B)
    The
    A,_,
    ~
    ~
    ~
    t~i?
    nan......
    ~
    a.
    ..#~#
    ._a.
    ~.
    ~.
    ~....
    the requirements of this Section in accordance
    t.jith
    ~mhri~’f4rin
    (f~
    b)
    Removal letter of credit.
    1)
    An
    owner
    or
    operator
    may
    satisfy
    the
    requirements
    of
    this
    Section
    by obtaining an irrevocable standby
    letter
    of
    credit
    which
    conforms to the requirements
    of
    this
    paragraph and submitting the letter to the
    Agency.
    The issuing institution must be an
    entity
    which has the authority to i3sue letters of credit
    and whose letter-of credit operations are regulated
    and examined by a Federal or State agency.
    2)
    The
    wording
    of
    the
    letter
    of
    credit must be
    as
    specified in Section 840.Appendix A,
    Illustration
    e~-
    3)
    An owner or operator who uses a letter of credit to
    -
    .~..,.,
    4
    of this
    Secti..,... shall ~
    establish
    a
    standby
    trust
    fund.
    Under
    the
    terms
    of
    th~~
    1
    r~tF~r
    riP r~ru~d
    ii—
    -
    ru
    1
    1
    rumriiin1—~ riru 4 ~-1
    nn~~nrui-ut
    fri
    a
    draft
    by
    the
    Agency
    will
    be depositcd by the
    issuing institution directly into the standby trust
    fund
    in
    accordance
    with
    instructions
    from
    the
    Agency.
    This
    standby
    trust
    firnrl
    m,i~,1-
    m~r’t
    requ~rements
    o...
    the
    trust
    fund
    specified
    i~
    subsection
    (a), except that:
    A)
    An
    agr
    original,
    eement must
    signed
    duplicate
    of
    be
    submitted
    to
    the
    the
    trust
    Agency
    with
    the letter of credit; and
    B)
    Unless
    the
    standby
    trust
    fund
    i’
    ~
    of this Section,
    ~-±r~
    by
    these
    i)
    Payments into the trust fund as specified
    in
    ~iih~c~rt4rin (n~u.
    120—164
    ‘
    ~..,
    ‘—I
    pursuant to the requireir
    the
    following
    are
    not
    ;1 t~
    I (l’fl~
    -
    rr~rt
    53
    -i-i)
    Updating
    of
    Schedule
    A
    of
    the
    trust
    agreement
    to
    show current removal
    cost
    estimates.
    iii) Annual
    agreem
    valuations as required by the trust
    ent.
    iv)
    Noti....~.&f
    an.ia~ay1flCnt
    a.~.~ired
    by the
    trust agreement.
    4)
    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:
    the EPA
    Identification Number, name and address-of the site,
    and the amount of funds assured for removal of used
    and waste tires at the site by the letter of credit.
    -5)
    The letter of credit must be irrevocable and issued
    for
    a period of at least
    1 year.
    The letter of
    credit mu3t provide that the expiration date will
    be automatically extended for a period of at least
    year unless, at least 120 days before the current
    expiration
    date,
    the issuing institution notifies
    both
    the
    owner
    or
    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.
    C)
    The letter of credit must be issued—in an amount at
    least equal
    to
    the current removal cost estimate,
    except as provided in subsection
    (d).
    7)
    Whenever the current removal cost eatima~4’~”-eaaes
    to
    an
    amount
    greater
    than
    the
    amount
    of
    the
    credit,
    the
    owner
    or
    operator,
    within
    120
    days after the
    ~increase, shall
    either
    cause
    the
    amount
    of
    the
    credit to be increased so that it at least equals
    the
    current
    removal
    cost
    estimate
    and
    submit
    evidence of such increase to the Agency, or obtain
    other
    financial
    assurance
    as -specified
    in
    this
    Section
    to
    cover the increase.
    Whenever the cw~rcnt
    removal coat estimate—decreases, the amount of the
    er-edit may be reduced to the amount of the current
    removal cost estimate following written approval by
    120—165
    the Agency.
    54
    8)
    Following
    a
    failure by the owner
    or operator
    to
    perform
    final
    removal
    in
    accordance
    with
    the
    approved removal plan when required to do so, the
    Agency may draw on the letter of credit.
    9)
    If
    the
    owner
    or
    operator
    does
    not
    establish
    alternate financial assurance as specified in this
    Section
    and
    obtain
    written
    approval
    of
    such
    alternate assurance from the Agency within 90 days
    after receipt by both the owner or operator and the
    Agency of a notice from issuing institution that it
    has
    decided
    not to
    extend
    the
    letter
    of
    credit
    beyond the current expiration date, the Agency shall
    draw on the letter of credit.
    The Agency may delay
    the drawing if the
    issuing institution grants
    an
    extension of the
    term
    of the credit.
    During the
    last 30 days of any such extension the Agency shall
    drawS on
    the
    letter
    of
    credit
    if
    the
    owner
    or
    operator has failed to provide alternate financial
    assurance as specified in this Section and obtain
    written approval of such assurance from the Agency.
    lfl)
    mh~
    ~
    ~thn11
    rr’fwrn
    fhr’
    1~ffr’r
    riP
    r’~r~4f
    Fri
    fhu~
    issuing
    institution
    for
    terminati..I~L
    A)
    An
    owner
    or
    operator
    substitutes
    alternate
    financial
    assurance
    as
    specified
    in
    this
    Section; or
    ..-.~..
    ---
    ;‘~~
    the owner or operator from
    -i
    ~
    ruf
    thi
    ru
    P~c,rti
    run
    in
    rurir’~rirdpnce
    .1..
    c)
    Financial test and corpora
    —
    —
    _e
    —
    --
    1)
    An owner or operator may satisfy the requirements
    of this Section by demonstrating that the owner or
    operator passes
    a
    financial
    test
    as specified
    in
    this paragraph.
    To pass
    this test the owner
    or
    operator
    shall
    meet
    the
    criteria
    of
    either
    subsection
    (c) (1) (A)
    or
    (c) (1) (B):
    “I
    or operator shall have:
    i)
    Two
    of
    the
    following thr
    1..
    less than 2.0; a ratio of the sum of net
    income plus depreciation,
    depletion and
    amortization to total liabilities greater
    than 0.1;
    and a ratio of current assets
    to current liabilities greater than 1.5
    120—166
    B)
    1The
    r1.~c~aa’..J
    ~th
    ~equ...
    with subsection
    (f).
    ii)
    Net work
    each at
    ing capital and tangible net w
    least six~times the sum of
    orth
    the
    current removal cost estimates;
    $10
    iii) Tangible
    net
    worth
    of
    at
    least
    million; and
    iv)
    ri—~-~
    i)
    A current rating for its most recent bond
    issuance of AAA,
    AA, A or BBB as issued
    by Standard and Poor’s or Aaa,
    Aa,
    A or
    Baa as issued by
    Mo-ody’s,
    ii)
    Tangible net worth at least six times the
    sum of the current removal cost estimates;
    -i-u)
    Tangible
    net
    worth
    of
    at
    least
    $10
    million; and
    iv)
    Assets
    located
    in
    the
    United
    States
    amounl-irurc to at least 90 ri~ccntof total
    asset-s or at least six times the sum of
    the current removal coat estimates.
    2)
    The phrase “current removal cost estimates” as used
    in subsection
    (c) (1)
    refers to the cost estimates
    required to be shown in paragraphs 1
    4 of the letter
    from
    the
    owner’s
    or
    operator’s
    chief
    financial
    officer
    (Section 848.Appendix A,
    Illustration D).
    3)
    To demonstrate that the owner or operator meets this
    test,
    the
    owner
    or
    operator
    shall
    submit
    the
    following items to the Agency.
    A)
    A letter signed by the owner’s or operator’s
    chief financial officer and worded as specified
    in Section 848.Appendix A,
    Illustration D.
    B)
    A
    copy
    of
    the
    independent
    certified public
    accountant~s report
    on
    examination
    of
    the
    owner’s or operator’s financial statements for
    the latest completed fiscal year.
    i~-~nrui~i-
    fvr~m
    Fh
    ritznr~’
    rir
    operators
    ~dependent
    certified public accountant to the
    owner or operator stating that—
    120—167
    55
    Assests
    located
    in
    the
    United
    ~
    amounting to at least 90 percent of total
    assets or at least six times the sum of
    B)
    The owner or operator shall have:
    C)
    A
    56
    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 prn~~n~~-
    nri
    matters came to cne accountant~sattention
    which
    caused
    the
    accountant
    to believe
    that
    the
    specified
    data
    should
    be
    adjusted.
    5)
    After the initial submission of items specified in
    subsection
    (c) (3), the owner or operator shall send
    updated information to the Agency within 90 days
    after
    the
    close
    of
    each succeeding
    fiscal
    year.
    This information must consist of
    all
    three
    items
    specified in subsection
    (c) (3).
    6)
    If
    the
    owner
    or
    operator
    no
    longer
    meets
    the
    requirements
    of
    subsection
    (c) (1),
    the
    owner
    or
    operator shall send notice to the Agency of
    inte-n-t
    to
    establish
    alternate
    financial
    assurance
    as
    specified in this Section.
    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.
    The
    owner
    or
    operator
    shall
    provide the alternate financial assurance within 120
    days after the end of such fiscal year.
    7)
    The
    Agency may,
    based on a reasonable belief that
    the
    owner
    or
    operator
    may
    no
    longer
    meet
    the
    requirements of subsection
    (c) (1), require reports
    of financial condition at any time from the owner
    or
    operator
    in
    addition
    to
    those
    specified
    in
    subsection
    (c) (3).
    If the Agency
    finds,
    on the
    basis
    of such reports or
    other
    information,
    that
    the
    owner
    or
    operator
    no
    longer
    meets
    the
    requirements
    of
    subsection
    (c) (1),
    the
    owner
    or
    eperator shall provide alternate financial assurance
    as specified
    in this Section within
    GO days after
    notification of such a finding.
    -
    8)
    The Agency may disallow use
    of this
    test
    on the
    basis of qualifications in the opinion expressed by
    the independent certified public accountant in the
    accountant’s report on examination of the owner’-s
    or operator’s financial statements
    (see subsection
    120—168
    57
    ~
    s..,
    ~
    .
    opinion will be cause for disallowance.
    The Agency
    shall evaluate other qualifications on an individual
    basis.
    The
    owner
    or
    operator
    shall
    provide
    alternate financial assurance as specified in this
    Section within 30 days after notification
    of the
    disallowance.
    of cancellati....., by both the
    ~.
    and
    the
    Agency,
    evidenced by the
    return
    receipts.
    120—169
    .~
    I ~
    9)
    The
    owner
    or
    operator
    is
    no
    longer
    required
    to
    submit
    the
    items
    specified
    in
    subsection
    (C)
    (3)
    when:
    A)
    An
    owner
    or
    operator
    substitutes
    alternate
    financial
    assurance
    as
    specified
    in
    this
    Section;
    or
    B)
    The
    Agency releases the owner or operator from
    the requirements of this Section in accordance
    with subsection
    (f).
    1
    1))
    Z~.n
    ~
    rir
    rinc’rrufrir
    mn~~ mc~~~f
    fh~~
    ~
    r~f
    this
    Section
    by
    obtaining
    a
    written
    guarantee,
    hereafter
    referred
    to
    as
    “corporate
    guarantee.”
    The guarantor shall
    be the parent
    corporation of
    the owner
    or operator.
    The guarantor shall meet
    the
    requirements
    for
    owners
    or
    operators
    in
    subsections
    (c) (1) through
    (c) (3)
    and shall comply
    with
    the terms
    of
    the corporate guarantee.
    The
    wording
    of
    the
    corporate
    guarantee
    must
    be
    as
    specified
    in
    Section
    848.Appendix
    A,
    Illuatration
    E.
    The corporate guarantee must accompany the items
    sent
    to
    the
    Agency
    as
    specified
    in
    subsection
    (c) (3).
    The terms of the corporate guarantee must
    provide the following items:
    A)
    If the owner or operator fails to perform final
    removal of used and waste tires at a facility
    covered —by
    the
    corporate
    guarantee
    the
    guarantor will do so or establish a trust fund
    as specified in subsection
    (a)
    in the name
    0-f
    the owner or operator.
    B)
    The corporate guarantee will remain
    in force
    unless
    the
    guarantor
    sends
    notice
    of
    cancellation by certified inafl
    Fri
    the owner or
    operator and
    to- the Agency.-----C....n..ellation may
    not
    occur.
    however,
    during
    the
    120
    days
    fh~ rinf~
    rif
    rsceipt ~
    Fh~
    nr~Fir~
    —owner--~-4-~-
    ~-
    ofsucha.~...
    within 90 days aft~....
    a.
    ~
    the owner
    or operator
    and the Agency
    of
    a
    notice
    of
    cancellation of the corporate guarantee from
    the guarantor, the guarantor will provide such
    alternate financial assurance in the name of
    -
    - -
    -—
    -
    --
    -
    --
    -—
    -
    ---
    .s_
    -
    --
    d)
    Use
    of
    multiple
    financial
    mechanisms.
    An
    owner
    or
    operator may satisfy the requirements of this Section by
    establishing
    more
    than
    one
    financial
    mechanism
    per
    facility.
    These mechanisms are limited to trust
    funds
    runr3
    1
    ~ttrr~
    ruf
    rrrt~i
    f
    ‘Vh~ mprhrini ~
    mii~t h~ n~
    specified
    in
    subsections
    (a)
    and
    (b),
    respectively,
    except that it is the combination of mechanisms, rather
    than the single mechanism, which must provide financial
    assurance for an amount
    at
    least -equal to the current
    removal cost est~imate.
    If an owner or operator uses a
    trust fund
    in combination with a letter of credit, the
    owner or operator may use the trust fund as the standby
    trust fund for the other mechanisms.
    A single standby
    trust fund may be established for two or more mechanisms.
    The Agency
    may use
    any
    or
    all
    of
    the mechanisms
    to
    provide
    for removal
    of used and waste tires
    from the
    site.
    e)
    Use
    of
    a
    financial mechanism for multiple facilities.
    A-n-
    owner
    or
    operator
    may
    use
    a
    financial
    assurance
    mechanism
    specified
    in
    this
    Section
    to
    meet
    the
    requirements of this Section for more than one facility.
    E~’id-ence
    of
    financial
    assurance submitted to the Agency
    must include
    a list showing,
    for each facility,
    name,
    e~4rcssand the amount of funds for removal assured by
    the mechanism.
    The amount of funds
    available through
    the mechanism must be no less than the sum of funds that
    wetild be
    available
    if
    a
    separate mechanism
    had
    been
    established and maintained for each facility.
    The amount
    e-~-fundsavailable to the Agency must be 2ufficient to
    remove
    used
    and waste
    tires
    at
    all
    of
    the
    owner
    or
    operator’s
    facilities.
    In
    directing
    funds
    available
    through the mechanism for removal of used and waste tires
    at any of the facilities covered by
    the mechanism, the
    Ag-cncy may direct only the amount of funds designated for
    that facility, unless
    the owner or operator agrees to the
    use of additional funds available under the mechanism.
    been completed in accordance with the approved removal
    plan.
    The Agency shall notify the owner or operator in
    120—170
    58
    C)
    If
    the
    owner
    or
    operator
    fails
    to
    provide
    alternate financial assurance as specified in
    this Section and obtain the written approval
    1
    F~-ri-uriI—~~
    assurnnri~
    frrum
    Fh~
    nrr~ru—-~7
    59
    writing
    that
    the
    owner
    or
    operator
    is no longer required
    by
    this
    —Section
    to
    maintain
    financial
    assurance
    for
    removal of used and waste tires at the facility, unless
    the
    Agency
    determines
    that
    removal
    has
    not
    -
    been
    in
    accordance with the approved removal- plan.
    The Agency
    shall provide the owner or operator
    a detailed written
    statement of any such determination that removal has not
    h~c~n
    in
    nririri-i-~~rir~s—
    t.rith
    th~ ririnrrivr~i1
    rs~mrivn1
    riInn
    g)
    Appeal.
    The following Agency actions are deemed to be
    permit modifications or refusals to modify for purposes
    o-f
    appeal
    to
    the
    Board.
    1)
    An increase in, or a refusal to ~decreasethe
    of a letter of credit or a trust fund.
    amount
    2)—
    .~
    .a±±±a
    a
    ‘~......_.....
    a.
    a a
    S....
    ~
    f4,
    a... a. a
    ..j
    that
    an
    owner
    or
    operator,
    or parent
    corpoL~Lion, no
    1
    rinrii~~r ~nr’r-t—~i
    ,
    fin~nrii~
    ~
    S~cti
    on
    R42 .400
    Scope
    and
    Applicability
    ~J
    This
    Subpart applies
    to
    owners
    and operators
    of tire
    storage
    sites
    and
    tire
    disposal
    sites,
    except
    as
    otherwise
    provided in this Section.
    ~j
    Unless exempted by subsection
    (C),
    owners and operators
    shall comply with this Subpart:
    fl
    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
    ~j
    By January
    1,
    1992,
    for sites where used or waste
    tires
    are disposed or stored prior to January
    1,
    1992.
    gj
    Owners
    and
    operators
    of
    tire
    storage
    sites
    and
    tire
    disposal sites are exempt from this Subpart with respect
    to the following types of sites:
    fl
    Sites where the real estate of the site
    is owned
    ~.j..The United States or one of its agencies
    ~j
    The State of Illinois or one of its agencies
    or
    çj
    A unit of local government.
    120— 17 1.
    60
    21
    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 subiect to this Subpart.
    ~J
    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.
    4j..
    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
    is 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
    ~j
    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).
    ~j
    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:
    ~j...An increase in the current cost estimate
    ~j
    A decrease in the value of a trust fund
    ~j..
    A
    determination
    by
    the
    Agency
    that
    an
    owner
    or
    operator
    no
    longer
    meets
    the
    financial
    test
    of
    Section
    848.415(e);
    or..
    j)..
    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
    120—172
    61
    The Agency shall release a trustee, bank, surety or other financial
    institution when:
    ~
    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
    ~
    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
    ~j
    The Agency may sue in any court of competent lurisdiction
    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.
    ~j
    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.
    ~j
    The following Agency actions may be appealed to the Board
    as a permit denial pursuant to 35
    Ill.
    Adm. Code 105:
    fl
    A refusal to accept financial assurance tendered by
    the owner or operator
    21
    A refusal
    to release the owner or operator from the
    requirement to maintain financial assurance
    ~j
    A refusal to release excess funds from a trust
    ~j
    A refusal
    to approve a reduction in the amount of
    a letter of credit
    -
    21
    A determination that an owner or operator no longer
    meets the financial test.
    Section 848.404
    Removal Cost Estimate
    ~j
    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.
    120—173
    62
    fl
    The owner or operator shall submit the cost estimate
    with
    the
    annual
    notice
    of
    activity
    pursuant
    to
    Section 55(d)
    of the Act.
    21
    The cost estimate is due on January
    1 of each year,
    commencing January 1,
    1992.
    ~j
    The owner
    or operator
    shall
    revise the
    cost estimate
    whenever a change in the removal plan increases the cost
    estimate.
    ~j
    The cost estimate equals the larger of the following:
    .~j
    The
    cost
    of
    removing
    all
    used
    and
    waste
    tires
    accumulated at the site;
    or
    21
    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.
    ~j...The owner or operator shall
    base the cost estimate on
    either:
    fl
    Costs to the Agency under
    a contract to perform tire
    removal actions
    in the area
    in which the
    site
    is
    located;
    or
    21
    Prolected
    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.
    ~
    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.
    jJ
    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:
    ~j.
    A trust fund
    (Section
    848.410-)
    ~j
    A
    letter
    of
    credit
    (Section
    848.413)
    fl
    Self—insurance
    (Section
    848.415).
    120—174
    63
    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
    mechanisms must be as specified in 35
    Ill.
    Adm. .Code 848.410
    and
    848.413,
    respectively,
    excePt
    that
    it
    is
    the
    combination
    of
    mechanisms,
    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 Mechanism 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
    £or 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
    ~j
    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.
    jpj
    The trustee shall be an entity which has the authority
    to act as
    a trustee and:
    fl
    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
    21
    Who complies with the Corporate-Fiduciary Act (Ill.
    Rev.
    Stat.
    1989,
    ch.
    17,
    pars.
    1551—1 et seq.).
    ~j
    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
    120—17
    5
    64
    acknowledgment,
    on
    the
    form specified
    in Appendix
    A,
    Illustration
    B.
    ~j
    Payments into the trust:
    fl~.
    The owner or operator shall make a payment into the
    trust fund each year during the pay-in period.
    .21
    The pay-in period is five years.
    The pay-in period
    commences at one of the following times, whichever
    is later:
    ~
    On the date the
    site first receives used or
    waste tires;
    or
    .~j
    On January
    1,
    1992.
    .~j..
    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.
    41
    The owner or operator shall make the first annual
    p~ymentprior
    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.
    ~j
    Subsequent
    annual payments must be made no later
    than
    30 days after each anniversary of the first
    payment.
    .Qj
    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.
    fl
    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).
    120—176
    65
    ~j.. 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).
    ~j
    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 of the value
    within 30 days after the evaluation date.
    ~j
    Release of excess funds:
    fl
    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.
    21
    Within
    60 days after receiving a request from the
    owner or operator for a release of funds, the Agency
    shall instruct the trustee to the owner or oPerator
    such
    funds
    as
    the
    Agency
    specifies
    in
    writing
    to
    be
    in excess of the current cost estimate.
    gj
    Reimbursement for removal expenses:
    fl
    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.
    i)..
    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.
    ~j
    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
    120—177
    66
    pay
    all
    claims,
    the
    Agency
    shall
    pay
    claims
    according to the following priorities:
    ~j
    Persons with whom the Agency has contracted to
    perform removal activities
    (first priority)
    ~j
    Persons who have completed removal authorized
    by_the Agency (second priority);
    ~j
    Persons who have completed work which furthered
    the_removal
    (third priority);
    ~j
    The
    owner
    or
    operator
    and
    related
    business
    entities
    (last
    priority).
    Section 848.413
    Letter of Credit
    ~j
    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.
    ~j
    The issuing institution shall be an entity which has the
    authority to issue letters of credit and:
    fl
    Whose letter—of—credit operations are regulated by
    the
    Illinois
    Commissioner
    of
    Banks
    and
    Trust
    Companies;
    or,
    21
    Whose deposits are insured by the Federal Deposit
    Insurance
    Corporation.
    gj
    Forms:
    fl
    The letter of credit must be on the forms specified
    in
    Appendix
    A,
    Illustration
    E.
    21
    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.
    ~,j
    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:
    120—178
    67
    fl
    The
    owner
    or
    operator
    shall
    submit
    a
    signed,
    duplicate original of the trust
    agreement to the
    Agency with the letter of credit;
    and
    21
    Unless the standby trust
    is
    funded, the following
    are not required:
    ~j.
    Payments into the trust
    fund.
    ~1
    Updating of Schedule A of the trust agreement
    to show the current cost estimates.
    ci
    Annual
    valuations
    as
    required
    by- the
    trust
    agreement.
    P1
    Notices of nonpayment as required by the trust
    agreement.
    ~
    Conditions on which the Agency may draw on the letter of
    credit:
    jj
    The Agency shall
    draw on the letter of credit
    if
    the owner or operator fails to perform removal in
    accordance with the removal plan.
    j).
    The Agency shall draw on the letter of credit when
    the owner or operator:
    ~j
    Abandons the site
    ~j
    Is adiudicated bankrupt
    .Q1.
    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 lurisdiction
    P1
    Notifies
    the
    Agency
    that
    it
    has
    initiated
    removal,
    or
    initiates
    removal,
    but fails
    to
    provide removal in accordance with the removal
    plan; or
    -
    ~j
    Fails
    to
    provide
    additional
    or
    substitute
    financial
    assurance when
    required
    to
    do
    so
    under this Subpart.
    fi
    Amount:
    jj
    The letter of credit must be issued in an amount at
    least equal to the current cost estimate.
    120—179
    68
    21
    The Agency shall approve a reduction in the amount
    whenever the current cost estimate decreases.
    gj
    Term:
    .31
    The letter of credit must be irrevocable and issued
    for
    a
    period
    of
    at
    least
    one
    year.
    21
    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.
    ~ifl
    Cure of default and refunds:
    .3,j.
    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.
    21
    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
    ~j
    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:
    “Assets” means all existing and all probable future
    economic
    benefits
    obtained
    or
    controlled
    by
    a
    particular entity.
    “Current
    assets”
    means
    cash
    or
    other
    assets
    or
    resources
    commonly identified as
    those which
    are
    reasonably expected to be realized in cash or sold
    or consumed during
    the normal operating cycle of
    the business.
    120—180
    69
    “Current
    liabilities”
    means
    obligations
    whose
    liquidation
    is reasonably expected to require
    the
    use of existing resources properly classifiable as
    current
    assets
    or the
    creation
    of other
    current
    liabilities.
    “Generally
    accepted
    accounting
    principles”
    means
    “Accounting
    Standards”,
    incorporated by reference
    in Section 848.105.
    “Generally
    accepted
    auditing
    standards”
    means
    Auditing Standards--Current Text.
    incorporated by
    reference
    at
    848.105.
    “Independently audited” refers to an audit performed
    by
    an
    independent certified public
    accountant
    in
    accordance
    with
    generally
    accepted
    auditing
    standards.
    “Liabilities” means probable future sacrifices of
    economic benefits arising from present obligations
    to
    transfer assets or provide
    services to
    other
    entities
    in
    the
    future
    as
    a
    result
    of
    Past
    transactions or events.
    “Net working
    capital” means
    current
    assets minus
    current liabilities.
    “Net
    worth”
    means
    total
    assets
    minus
    total
    liabilities and
    is equivalent to owner’s e~ity.
    “Tangible
    net worth”
    means
    tangible
    assets
    less
    liabilities;
    tangible
    assets
    do
    not
    include
    intangibles such as goodwill and rights to patents
    or royalties.
    ki
    Information to be Filed
    An
    owner
    or
    operator
    may
    satisfy
    the financial assurance
    requirements of this Part by providing the following:
    .31
    Bond
    without
    surety
    promising
    to
    pay
    the
    cost
    estimate
    (subsection
    (c)).
    meets the financial
    fl
    Proof that the owner or operator
    test (subsection
    (efl.
    çj
    Bond Without Surety~
    An
    owner
    or operator utilizing
    self-insurance
    shall
    provide
    a bond without surety on
    the forms specified in Appendix A, Illustration G.
    The
    owner or operator shall promise to pay the current cost
    120—181
    70
    estimate
    to
    the
    Agency
    unless
    the
    owner
    or
    operator
    provides removal
    in accordance with the removal plan.
    ~j
    Financial Test
    .3j.
    To pass the financial test,
    the owner or operator
    shall
    meet
    the
    criteria
    of
    either
    subsection
    (e) (1) (A) or
    (e) (1) (B):
    The owner or operator shall have:
    il
    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
    £L1
    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
    jyj
    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.
    The
    owner
    or
    operator
    shall
    have:
    Jj
    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
    iIJ.
    Tangible net worth at least six times the
    current
    cost
    esti-mate;
    and
    iii) Tangible
    net
    worth
    of
    at
    least
    $10
    million; and
    i~1
    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.
    120—182
    71
    21
    To demonstrate that it meets this test,
    the owner
    or operator shall submit the following items to the
    Agency:
    ~j
    A
    letter
    signed by the owner
    or
    operator’s
    chief financial officer and worded as specified
    in Appendix A, Illustration I; and
    .~j
    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
    ~
    A special report from the owner or operator’s
    independent certified public accountant to the
    owner or operator stating that:
    j)
    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
    -
    ~JJ
    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
    adlusted.
    ~j
    Updated Information.
    fl
    After the initial submission of items specified in
    subsections
    Cd) and (e), the owner or operator shall
    send updated information to the A~encv within
    90
    days after the close of each succeeding fiscal year.
    21
    If
    the
    owner
    or
    operator
    no
    longer
    meets
    the
    requirements of subsections
    Cd) and
    (e), 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
    ~perator no longer meets the requirements.
    gj
    gualified
    Opinions.
    If
    the
    opinion
    required
    by
    ~ithsections (e) (2) (B) and
    (e) (2) LC)
    includes an adverse
    opinion
    or
    a
    disclaimer
    of
    opinion,
    the Agency
    shall
    disallow
    the
    use
    of
    self-insurance.
    If
    the
    opinion
    120=183
    72
    includes other qualifications, the Agency shall disallow
    the use of self—insurance if:
    .3j~
    The qualifications relate to the numbers which are
    used
    in the gross
    revenue test or the
    financial
    test; and,
    21
    In
    light
    of
    the
    qualifications,
    the
    owner
    or
    operator has
    failed
    to demonstrate that
    it meets
    the gross revenue test or financial test.
    ~j
    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 H).
    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
    (Ill.
    Rev.
    Stat.
    l93~~
    ch.
    111
    1,’2,
    par.
    10
    Section
    55.4
    of
    the
    ~);
    or
    2)
    The
    owner
    or
    operator
    has
    received
    a
    permit
    from
    the Agency pursuant to the requirements of 35 Ill.
    Adm,.
    Code
    307
    Subtitle
    G:
    Waste
    Disposal
    for
    permitting the disposal of solid waste at sanitary
    landfills;
    or
    3)
    The
    owner
    or
    operator has
    submitted
    a
    complete
    written proposal
    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
    reasonably
    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
    120—184
    73
    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.
    Adin.
    Code
    307
    Subtitle
    G:
    Waste
    Disposal for the disposal of
    solid
    waste
    in sanitary 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 807 Subtitle G: Waste
    Disposal for permitting the disposal of solid wastes at
    s-anitary 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.
    (Ill.
    Rev.
    Stat.
    1980
    ch.
    11.1
    l,’2,
    par.
    10
    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.
    120—185
    74
    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.
    (Ill.
    Rev.
    Stat.
    1939 ch.
    111 1/2,
    par.
    10 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.
    An owner or operator with an approved tire
    removal agreement shall submit a written request to the
    Agency to authorize a change to the approved tire removal
    agreement.
    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
    reasonably
    completed within such lesser amount of time.
    (Ill. Rev.
    Stat.
    1989 ch. 111 1/2, par.
    10 Section 55.4 of the Act)
    120—186
    75
    Section 848.505
    Removal Plan
    ~j
    The removal plan is the approved tire removal agreement
    fp~the site,
    if one has been approved.
    Otherwise, the
    ~noval
    plan is the proposed tire removal agreement.
    ki
    An owner or operator who has provided financial assurance
    based on a ~ro~osed agreement shall provide substitute
    financial assurance based on the approved plan within 90
    days after the A~encvapproves a tire removal agreement.
    This may consist of substitute financial assurance,
    or
    a
    letter
    from the financial
    institution acknowledging
    receipt of the a~~roved
    Plan and indicating no obiection.
    Section 848.506
    Initiation of Tire Removal
    flj..
    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.
    kI
    The owner or operator shall begin
    removal
    of used and
    waste
    tires
    in
    accordance
    with
    the
    approved
    tire
    removal
    ~greement within
    30 days after written Agency approval
    of the tire removal
    agreement unless the tire removal
    agreement specifies otherwise.
    ~j
    The Agency shall have authority to approve a later date
    for
    initiation
    of
    tire
    removal
    in
    a
    tire
    removal
    agreement
    if:
    fl.
    the owner
    or oPerator demonstrates to the Aqency
    that a binding contractual relationship exists under
    which the owner
    or operator will removal
    all used
    and waste tires from the site within two years; or
    120— 187
    76
    21
    other
    factors
    relative
    to operation of the
    site
    necessitate a later date for initiating removal of
    used and waste tires.
    Section 848.50~5~
    Certification of Removal Comoletion
    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.
    (Ill.
    Rev.
    Stat.
    1939
    ch.
    111
    1/2,
    par.
    ~l-~Section 55.4 of the Act)
    Section 848.506~
    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 8-G~?-~Subtitle G: Waste Disposal
    for the disposal of solid waste in a sanitary 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.
    (Ill.
    Rev.
    Stat.
    ~39
    ch.
    ill
    l,’2,
    par.
    10 Section 55.4 of the Act)
    Section 848.50~
    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.
    (Ill. Rev.
    Stat.
    1989 ch.
    111 1/2, par.
    10 Section 55.4 of the Act)
    SUBPART F:
    TIRE TRANSPORTATION REQUIREMENTS
    Section 848.601
    Tire Transportation Prohibitions
    a)
    Except as provided in &~~ubsection(c),
    no person shall
    transport more than ~O
    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.
    120—188
    77
    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.
    3)
    The
    tires
    are
    covered
    by
    a
    material
    or
    roof
    impermeable to watcr.
    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.
    c)
    The requirements
    set
    forth
    in subsections
    (a)
    and
    (b)
    shall only apply to tires transported from—tire di3po3al
    sites,
    tire storage sites,
    sites where used tires were
    accepted in trade as part of a sale of new tires or sites
    at which both new and used tires are sold at retail in
    the r~c~ular
    course of business.
    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
    and
    operator.
    2)
    A description of the number and types
    of vehicles
    to be used.
    3)
    An agreement by the vehicle owner and identified
    operator that:
    A)
    Tire loading, transportation and unloadingwill
    be conducted in compliance with all applicable
    state
    and
    federal
    laws
    and
    regulations.
    B)
    All vehicles used in tire transportation will
    be clean and in good repair at all times when
    so employed.
    C)
    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.
    120—189
    78
    D)
    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 and operator 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
    120—190
    79
    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
    these
    rulesthis
    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.
    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
    sites of the vehicles which displays
    a number
    issued by the Agency following the words “Registered Tire
    Transporter:
    (number)
    .“
    b)
    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.
    120—19 1
    80
    Section 848.Appendix A “Financial Assurance Forms”
    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 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).
    120—192
    81
    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 attached 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 site,
    or any of.their affiliates as
    defined
    -in Section 80a-2(a)
    of 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;
    120—193
    82
    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-l 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
    120—194
    83
    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 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 the 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,
    120—195
    84
    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
    that
    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.
    120—196
    85
    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
    120—197
    86
    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
    Illustration E 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
    120—198
    87
    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. 111½, 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 succesive
    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 will 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
    120—199
    88
    This
    credit
    is
    subject
    to
    Section
    848.Appendix
    A
    Financial
    Assurance
    Forms
    Illustration G 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
    120—200
    89
    Date
    Corporate
    seal
    Section 848.Appendix A Financial Assurance Forms
    Illustration H 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;
    120—20 1
    90
    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
    120—202
    91
    State of Incorporation
    Date
    Signature
    Typed
    Name
    Title
    Corporate seal
    Corporate seal
    Section 848.Appendix A Financial Assurance Forms
    Illustration
    I 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
    ant the chief financial officer of
    This letter is in support of this firm’s use of the gross revenue
    test and financial test to demonstrate financial assurance pursuant
    to 35 Iii. Adm. Code 848.415.
    This letter is to demonstrate financial assurance for the following
    sites:
    Owner
    or
    operator:
    Name:
    Address:
    City:
    Current cost estimate:
    $
    120—203
    92
    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
    $
    120—204
    93
    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
    120—205
    94
    statements,
    you may add the amount dfthat
    portion to thi
    line)
    $
    -
    6.
    Total
    assets in U.S.
    (required only if less than 90 percen
    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
    IT IS SO ORDERED.
    I,
    Dorothy M.
    Gunn,
    Clerk of the Illinois Pollution Contro:
    Board, hereby certify that the above Opinion and Order was adopte
    on the
    day of
    ________________,
    1991,
    by a vote of
    ~
    4.
    ~
    Dorothy M~/Gunn,Clerk
    Illinois Pollution Control Board
    120—206

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