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