ILLINOIS POLLUTION CONTROL BOARD
April 25,
1991
IN THE MATTER OF:
)
)
R90-9 (Docket A)
USED AND WASTE TIRE REGULATION
)
(Docket
B)
(35 ILL.
ADM. CODE 848)
)
(Rulemaking)
ADOPTED RULE.
FINAL ORDER.
OPINION AND ORDER OF THE BOARD
(by J.
C. Marlin)*:
On April
17, 1991 the the legislative Joint Committee on
Administrative Rules
(JCAR) took no action at their meeting on
these regulations concerning used and waste tires as proposed at
Second Notice.
The 45 day time period for Second Notice review
by JCAR expires May 9,
1991.
JCAR will not meet again during the
Second Notice period.
The Board must file an adopted rule
with
the Secretary of State by May 14, 1991 or return to First Notice~
The Board, therefore,
decides to proceed with final adoption of
these rules.
The regul~tionswill become effective January
1,
1992.
Certain modifications and additions to this rule will be
considered
in subdocket B, which the Board created by its Order
of March 14,
1991.
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 ~
on May 25,
1990.
14 Ill.
Reg.
7763
(May 25,
1990).
The Agency’s
*
The Board wishes to acknowledge the contributions of Ariand
Rao of the Board’s Scientific and Technical Section
(STS)
for his
work on this proceeding.
The Board also commends Marie Tipsord for
her assistance
in drafting the Board’s Opinion and Order
in this
matter.
A special thanks is reserved for Morton Dorothy of the STS
for his work
in drafting the financial
assurance portion
of the
Opinion and Order.
Lastly, the Board acknowledges the work of
Mark
P.
Miller,
who
has
served
as
Hearing
Officer
throughout
these
proceedings and who played
a large part
in
the drafting
of the
Board’s Opinion and Order in this matter.
12 1—7
49
2
filings of August 9 and October 26, 1990
(PC14),
which submitted
a ~substantially amended proposal for consideration,
restarted the
tii~eframe 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
~atural
Resources’
(DENR)
comments
(PCi)
that “a formal economic
impact study is not critical” to the proceeding.
The DENR
further stated that the body of economic information developed in
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
~a1so notes that considerable economic information was developed
:in the prior dockets concerning this topic
in R88-l2,
12 Ill.
‘eg. 8485
(May 13,
1988)
and R88—24,
13
Iii. Reg. 7949
(Nay 26,
1989)
-
Public Involvement
During the initial
45 day public comment
(“PC”)
period
following First Notice publication on May 25,
1990,
the Board
~‘received,in addition to the comments above,
comments from the
~dministrative
Code Division of the Secretary of State’s Office
regarding format changes
(PC3), remarks of the Illinois Coal
~\ssociation (PC4),
the comments of M.A. Associates
(PC5)
and
comunents 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.
~t
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.
i~enKirby 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 Council chambers, Municipal building,
12 1—750
3
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
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 inonofill,
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
**
References to the transcript of the June 22,
1990 hearing
are designated “lR._.”); those of the August 9,
1990 hearing
(“2R
If
)
•
121—75 1
4
exemptions f’o.r used tires generated and located at coal mining
sites,
(P•C~
are addressed in the general management standards
exemption
~Sie.ction
848.201).
Metroç~cditanTire Recycling and Recapping submitted comments
on August
2,.
1990 (PC6),
followed by those of IDENR on August 8,
199,0
(PC7).
The Board also received comments from State
Representati~veLarry Wennlund
(PC9)
filed August 10,
1990,
and
comments
fro~:nthe Chicago Department of Public Health filed
August 22, i~)9~
and the Agency’s response to comments (PC8),
filed August. l3~,1990.
On Se~t.~smber
17,
1990,
Lakin General Corporation submitted
an analysis ~f the impact of the proposed rule upon its
operations
(ft’cll).
The final comments of Oxford Tire Recycling
of Illinois ~
•of Lakin General Corporation were submitted on
September 2~0.1990
(PC12).
Finally, the Agency’s proposed
exemption fo.~r‘tire retreaders appeared in public comments,
(PC14)
on October 2:5, 1990 and accompanied by a motion to file
instanter.
EstablishIt~mL:zofDocket
(B)
Several, of those testifying and submitting comments urged
the Board tc~:cor~siderthe special situation in the tire
management s:’cheime posed by tire recyclers and retreaders.
Lakin
General Cor~orationand Oxford Tire Recycling,
Inc. gave
testimony ir~support of some type of an exemption from management
standards a~n~ialso raised the question whether these managed
sites deser~r~
relief from the financial assurance standards.
The
Board review~dthe testimony and exhibits and found merit
in the
ideas.
In t’Lie end, however, questions remained concerning which
management s’~tandardsand which financial assurances provisions
recyclers ai~dretreaders needed to meet.
The Agency filed an
amendment covering these issues on October 26,
1990
(PC14).
The
Board be1i~es it prudent, therefore,
to open Docket
(B)
in this
matter and t;~omcre fully consider the ramifications of these
exemptions
there.
To that end,
a full discussion of the
comments, textim~onyand exhibits received regarding these topics
is omitted f~romthis Opinion.
They will be fully addressed in
Docket
(B)..
We a1~xy. anticipate that Docket B may be utilized to perfect
the rules ~m.soime other areas including those related to
Comi~e~ts.
received immediately prior to the August 10 hearing
which were ~uts1de
the comment
period
(PC6-9)
were
allowed
by
Hearing Offi~erOrder of August
17,
1990.
All others,
including
the Agency’s
filing of October 26, 1990, are hereby accepted in the
record via Bt~arc1Order today.
121—752
5
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, today’s rules seek 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 of waste
(1R.l8)
(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 regulations set forth here to be compatible
with the new landfill regulations, as noted
later when discussing
particular sections.
The rules establish 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 rule 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.
12 1—753
6
** **
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 ac.cumulating 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
tires u:nless the owner or operator:
(1) registers the site with
the Agency;
(2) certifies to the Agency that the site complies
with Bo~ardregulations 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.
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)).
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.
12 1—754
7
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 rules establish requirements for the
storage, processing,
disposal and transportation of used and
waste tires.
One of the criticisms of the rules 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.1l5-117).
These tire
materials do not easily fall under the rationale for stacking and
spacing requirements
(lR.1l5,
121).
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 dimension 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.3l).
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.31—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 rules do not exempt altered tires from
regulation unless they are stored at the site where they are to
be consumed as fuel.
Chopped and shredded tires will,
therefore,
remain covered by the regulations, including financial assurance.
The Board believes the exemption for on site fuel use is
justified in that there is a little chance that this fuel will 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 pointed 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
121—755
8
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 langu~agein subsection
a) more cle’arly 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 tir~es.
848.104
Definitions
Today’s rules submit just three new definitions for
consideration:
“aisle”, “tire storage unit” and “tire
transporter”.
The Agency proposed two others,
“tire retreader”
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:
The ~Boardhas made several editing additions to blarify two
definitions.
The Board has added to the definition of “Tire
Disposal
Site”
an
“at”
between
“than”
and
“a”
to
correct
a
drafting
error.
We
have
deleted
“sanitary”
before
“landfill”.
The
term
~‘sanitary”
has
been
dropped
from
the
new
landfill
regulatio~s
which
were
adopted
after
the legislation passed.
We
have
also
added
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 ‘utanagement standards are largely based upon one
document,
NFPA 231D “Storage of Rubber Tires”.
The financial
assurance rules
(Subpart
D)
reference two documents:
Accounting
Standardst 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.
12 1—756
9
SUBPART
B:
MANAGEMENT STANDARDS
848.201
Applicability
Unless
exempted,
tire
disposal
sites
and
tire
storage
sites
must
meet
the
rules
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 rule.
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 storage of 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
population exempted from the 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.71-
84).
Because of the way “tire storage site” was 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,
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. 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
12 1—757
10
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
(1R.265).
The
Agency’s
brief
asserted
that
these
s.ites,
while
not
regulated
by
this
Part,
are
covered
by
the
general
management
sta~udards contained
in
Section 55(a) (3)
of
the
Act
(PC:13).
Irt
comments filed October 26,
1990
(PC14) the Agency revised
its position on the matter.
Apparently
in its meetings with the
Illinoi~sState Tire Dealers and Retreaders Association, the
Agency ~waspersuaded 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:
Thn~s, a site where used tires are separated from the
vehicle wheel rim and at which more than 250 new and
usied tires are kept and sold at retail in the regular
course of business does not meet the exceptions
.
.
(PC14 ,p.6)
The
Board
decided
it
could
not
accept
the
Agency’s
“new”
interpretation.
The Board interpreted this exemption from the
definition of tire storage site and thus from the Part 848
managem~ntstandards to apply only to one of the three conditions
at a tiime; the “or” cannot be ignored.
The result that the
Agency obviously was trying to avoid was that the 250 used tire
cutoff :language could be construed to apply only to the third
condition.
The Board does not believe the language says that or
that wa:s the legislative intent; we believe that the comma after
“..regu3.ar 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
confuse.~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, the Board
deleted the three numbers in the regulations in order to clarify
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.”
12 1—758
11
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)(l) 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 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
23lD
(Exh.l)
(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
12
1—759
12
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
TSU5
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.
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
(IR.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
(lR.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’xl5’
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.
121—760
13
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
~
pesticide use is prohibited as part of the control strategy for
mosquito breeding
(1R.137—8).
The testimony of
Dr. Robert Novak,
Illinois Natural History
Survey, revealed that this standard may be insufficient to
prevent mosquito breeding without pesticide application.
Either
the time period for alt~rationmust 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.81—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.lOO)
and Lakin General Corporation
echoed the utility of retaining pesticide application as a
mosquito management tool
(2R.102,l09;PC12).
No more than two or
three treatments per season result from Lakin General’s weekly
mosquito inspection and treatment program (2R.l13).
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.
121—761
14
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
of pesticides and
is derived from an explicit
statutory prohibition on the use of
pesticides.
PC13, pp.2-3
The Board agreed 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...
.“
(emphasis added)
The use of the term “ongoing”
is intended and specific.
If the
legislature had meant to say all applications were prohibited it
could easily have omitted the word “ongoing” and said exactly
that.
The language clearly signifies that not all pesticide
applications were prohibited, just those representing repeated
uses as the means to comply with the management standards.
In
addition, Section
55(i)
of the Act prohibits pesticide use except
“...
as prescribed except by Board regulations.”
This expressly
recognizes the Board’s ability to regulate the use of pesticides
on tires as a pest management tool.
Finally, the reporting
mechanisms mandated by Section 55 of the Act call for
a report as
to the status of vector controls.
See Section 55(d) (1) (iii).
The Board concluded that a
14 day period in which to alter
or convert used tires was 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 used
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.l13).
The
Board finds that such an operation would be consistent with the.
intent of Section 55.2(b)
of the Act regarding the prohibition
121—7 62
15
against ongoing use of pesticides without foreclosing on limited
“as
needed”
applications
for
the
prevention
of
mosquito
breeding
(1R.57-58;
109-117).
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
(lR.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
(lR.78).
Within’ two weeks they are required
to be processed.
The rule allows use of pesticides in accordance
with the contingency plan developed pursuant to Section 848.203.
The adequacy of the pesticide provisions of this rule 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
121—763
16
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”
(1R.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
f
ire—
fighting danger (lR.90-9l).
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 concluded that accumulation of tires within
buildings constituted 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
sniall scale
(less than 10,000 tires)
facilities as well.
The
Board, therefore,
incorporated 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
arid doors must be 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
12 1—764
17
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 231D 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 equipment, maintenance and operations.
Compliance with
the NFPA standard will afford adequate fire protection at large
tire storage facilities.
Section 848.205
Pesticide Treatment
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 are required, under the
rules, 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
12 1—765
18
of
tires
on
site,
and
also
to
acquire
information
for
developing
a
data
base
(1R.l50-151).
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
m~onthly reporting
would
(lR.l52-3).
Thea
information
that
is
required
to
be
maintained
by
the
rules
includes
weight
or
volume
of
tires:
received
at
the
site;
transpo~rtec.i
from
the
site;
and
burned
or
combusted
at
the
site,
and
the
total
number
of
tires
remaining
on
site
on
a
daily
and
annual
basis.
The
Agency’s
intent in proposing this rule was to
eliminate
the
difficulty
of
counting
tires
and
instead
use
weight
or
volum~ebased
measures
(lR.l6-17,
39).
Although
the
Agency
requires
an
estimate
of
the
count
to
determine
if
it
falls
within
the
specified
range
(Section
848.303(b)
(3)),
the Agency did not
specify
any
relationship
between
the
weight
or
volume
of
tires
and
the
number
of
tires,
nor
did
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
coinbusted.
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
believed
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
~n
the
same
way
as
the
use
of
“population
equivalent”
in
other
Board
regulations
(Eg.
35
Ill.
Adm.
Code
301.345).
The
Board
has
concluded
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
(E.xh.l)
as one average size passenger tire
H78-l4
we~.ghingapproximately 25
lb.
(11 kg)
and occupying a volume of 3
ft
(o.c~e5: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 F~Eweight 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 m.ay be estimated by dividing
the volume
of the tires by the PTE volume of
3
ft3 (0.085 m3).
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).
12 1—766
19
The
information
provided
in
the
record
(R88-24,
Exh.26)
and
the data included in the DENR’s Illinois Scrap Tire Management
Study
(Exh.14)
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
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 was 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)
(lR.l97).
R88—7 was
in
12 1—767
20
t:urn
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
tthis
proceeding.
The
Board
has
therefore
substituted
the
R88-7
~ode1
language
for
the
Agency’s
original
language
with
two
distinctions
(2R.lB—20).
Problems
with
the
Agency
Proposal
Absence
of
a
Removal
Plan
The
IkCRA
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
assu.:rance
in
the
amount
of
the
cost
estimate.
Pursuant
to
the
financial
assurance
document,
a
financial
institution
promises to
pay
the
co~st estimate,
unless
the
operator provides closure in
accordance
with
the
plan.
The
Agency’s
proposal
was
fundamentally
different
from
the
RCRIL
and
~S8—7
model,
in
that
the
operator
does
not
have
to
prepare
a
plan
in
advance
of
the
decision to remove tires.
~.ather,
the
operator
prepares
a
“tire
removal
agreement”
within
3-0
days
after
the
decision
to
close
(Section
848.403).
This
has
two
major
consequences.
First,
there
is
no
“removal
plan”
on
whic.~hto
base
the
cost
estimate
(1R.l62).
Second,
there
is
no
rremoval
plan”
against
which
to
compare
the
operator’s
performance
in
removing
tires,
so
as
to
determine
whether
a
default occurred on the financial instruments
(1R.165).
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 L~oardhas conditioned financial assurance on compliance
w:itii a “removal plan”.
This will be the approved removal
agreement,, if one exists.
Otherwise,
it will be the proposed
agre.tament
The operator will have 30 days after approval to
~u~s~itute
or amend financial assurance to reflect the approved
plan.
Conditions
of
Default
The
conditions
of
default
in
the
Agency
proposal
were
found
i.n
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
12 1—768
21
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
(1R.21l).
If
either occurred,
the Agency may find itself
disputing
the
financial
institution
about when removal was
required.
It
might
be
necessary
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
(lR.213).
On
the
other
hand,
the
R88-7
language,
makes
abandonment
and
bankruptcy
default
conditions,
in
and
of
themselves.
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
found that inclusion of this language clarified 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 found 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)).
121—769
22
Current Dollars
Section 848.4D2 of the Agency’s revised Proposal provided
that the cost estimate is equal to the cost “in current dollars”
of removing all tires.
As the Board understands this
terminology, this ~meansthat 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
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 was 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 has chosen use only the language from R84—
22 and R88—7 and not limit guarantees to only parent corporations
(Section 848.415).
12 1—770
23
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
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),
required the
parent bond, but omitted it with respect to the operator using
the financial test himself
(1R.229).
The rule adopted 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
121—77 1
24
followed the
~gei1cy
proposal and RCRA financial assurance rules
on
two
points,
and
departed
from
R88-7
on
an
unrelated
third
point..
The Bo~ard
proposes
to
modify
the
R88-7
language
by
(1)
using the P~88—7language concerning extensions of letters of
credit with automatic default on failure to extend
(lR.218), and
(2) using the
.RCRA
i~odellanguage concerning standby trust funds
(1R.20:l).
In addition, the Board has dropped FSLIC insurance as
an indicator of solvency of a financial institution.
Automatic
Def&ults
The
R~RA
rules
(and
Agency
Proposal)
have
a
provision
in
which a fin~ancialinstitution must pay on a letter of credit if
the operato.r i.s unable to renew the letter of credit or obtain
alternative financial assurance on expiration of the letter.
(See
40
cpp 265.l43kc)(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.
Lri 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 R~34-2,2and 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 def-ault.~ 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
1~CRA
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
cut
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
approp~riati.on
jorocess
before
they
are
spent.
The
standby
trust
avoids
thes..e complications.
However,
the operator must pay a
premiinn 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
12 1—772
25
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
(lR.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 in~uranceshould be deleted as an indicator
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”
121—773
26
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 o~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
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
(lR.l72,
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 beginninq 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.l70,
174,
176,
179,
182,
190).
The Agency recommended changes to the provisions governing
release of fends from the trust.
These were along the lines
suggested by
the Board’s STS
(lR.197).
These changes are present
below, but closer to the R88-7 format.
121—774
27
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 establish a
trust under Section 811.410 to serve as a standby trust
(1R.202•)
As
is also discussed above,
the Board is following the RCRA
extension and automatic default provisions,
as suggested by the
Agency.
Section 848.413(g)
is the extension,
and Section
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.2l8).
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
(lR.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 (lR.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).
12 1—775
28
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 required 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
test:ified,.a number of changes were necessary to achieve a
consistent use of terminology and to clarify potentially
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 languag.e 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.
Sect-ion 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
121—776
29
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
(1R.2l4).
Section 848.507
This section reiterates the certification of removal
completion provision of Section 55.4(c)
of the Act.
Section 848.508
This section restates the provisions of Section 55.4
(e)
of
the Act.
Section 848.509
This section restates the 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)).
12 1—777
30
Sections 848.602
—
606
Sections 848.602 through 848.606 provide procedures for
submission and approval of registration, applications and
placarding.
The Board slightly altered the 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.
12 1—778
31
ORDER
The
following
rule
is hereby
adopted.
The Clerk
of the
Board is directed to submit this rule to the Secretary of State for
Final Notice publication in the Illinois Register.
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.
TITLE 35:
ENVIRONMENTAL PROTECTION
SUBTITLE
G:
WASTE DISPOSAL
CHAPTER I:
POLLUTION CONTROL BOARD
SUBCHAPTER m:
USED AND WASTE TIRES
PART 848
MANAGEMENT OF USED AND WASTE TIRES
SUBPART A:
GENERAL
Section
848.101
848.102
848.103
848. 104
848. 105
Section
848.201
848.202
848.203
848.204
848.205
Section
848.301
848.302
848.303
848.304
848.305
848.306
Applicability
Severability
Other Regulations
Definitions
Incorporation by Reference
SUBPART
B:
MANAGEMENT STANDARDS
Applicability
Requirements
Contingency Plan
Storage of Used and Waste Tires Within Buildings
Pesticide Treatment
SUBPART C:
RECORDKEEPING AND REPORTING
Applicability
Records
Daily Tire Record
Annual Tire Summary
Retention of Records
Certification
121—779
32
SUBPART
D:
FINANCIAL ASSURANCE
S~ection
8 ~48. 400
848
.
401
8-48
.
402
848.
403
848.404
848.406
8-~48.407
848.408
848.410
8-48.413
848.415
S-h~ction
8-48.501
8-48. 502
8-48.503
8’48.504
84.-
8.505
848.
506
8-48.507
8 ‘48.508
848.509
S~e
ct ion
848.601
8-’4~~8.602
8-48
.
603
8-48.604
848.605
8 48.
606
Scope and Applicability
Upgrading 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 Sites
Trust Fund
Letter of Credit
Self-Insurance for Non—commercial Sites
SUBPART
E:
TIRE REMOVAL AGREEMENTS
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”
Illustration C “Irrevocable Standby Letter of Credit”
Illustration D “Owner or Operator’s Bond Without Surety”
Illustration E “Owner or Operator’s Bond With Parent
Surety”
Illustration F “Letter from the Chief Financial Officer”
AL7THORITY:
Implementing Section 55.2 and authorized by Section 27
o:~the Environmental Protection Act
(Ill. Rev. Stat.
1989,
ch.
111
l~/2,pars.
1055.2 and 1027).
121—780
33
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
prohibitions
relative to the storage,
processing,
disposal and transportation
of used and waste tires.
This Part sets forth rules establishing
further requirements relative to the storage, processing, disposal
and transportation of used and waste tires.
This Part 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.
Section 848.102
Severability
If any section, subsection,
sentence or clause of this Part shall
be adjudged unconstitutional,
invalid or otherwise not effective
for any reason, such adjudication shall not affect the validity of
this Part as
a whole or of any section,
subsection,
sentence or
clause thereof not adjudged unconstitutional, invalid or otherwise
not effective for any reason.
Section 848.103
Other Regulations
a)
The requirements of this Part are in addition to other
requirements
in the Act or Board regulations.
In case
of
conflict,
applicability
will
be determined
on the
basis of considerations such as, but not limited to, the
degree to which the statutory language
in the Act
or
Board
regulation
is
expressly
stated
or
necessarily
implied,
United States Environmental Protection Agency
program authorization requirements, and the comparative
stringency of the regulations.
b)
The following are examples of other regulations which
may be applicable to sites or facilities subject to this
Part:
35
Ill.
Adm.
Code:
Subtitle
B:
Air Pollution;
35 Ill. Adm. Code:
Subtitle C:
Water Pollution;
35 Ill.
Adm.
Code:
Subtitle
H:
Noise Pollution;
and
35
Ill.
Adm.
Code:
Subtitle C:
Waste Disposal.
121—781
34
Section 848.104
Definitions
For the purposes of this
Part,
except as the context otherwise
clearly requires, the words and terms defined in this Section shall
have the meanings given herein.
Words and terms not defined shall
have the meanings otherwise set
forth
in the Act and regulations
adopted thereunder.
“Act”
means
the Illinois
Environmental Protection Act
(Ill. Rev.
Stat.
1989,
ch.
111 1/2,
par. 1001 et seq.).
“Aisle” means an accessible clear space between storage
piles
or
groups
of
piles
suitable
for
housekeeping
operations, visual inspection of piling areas and initial
fire fighting operations.
“ALTERED TIRE” MEANS A USED TIRE WHICH HAS BEEN ALTERED
SO THAT IT IS NO LONGER CAPABLE OF HOLDING ACCUMULATIONS
OF WATER, INCLUDING, BUT NOT LIMITED TO, USED TIRES THAT
HAVE
BEEN
SHREDDED,
CHOPPED,
DRILLED
WITH
HOLES
SUFFICIENT TO ASSURE DRAINAGE,
SLIT LONGITUDINALLY AND
STACKED SO AS NOT TO COLLECT WATER OR WHOLLY OR PARTIALLY
FILLED WITH
CEMENT OR
OTHER MATERIAL
TO
PREVENT
THE
ACCUMULATION OF
WATER.
“ALTERATION”
OR
“ALTERING”
MEANS
ACTION
WHICH PRODUCES AN ALTERED TIRE.
(Section 54.01
of
the
Act)
“CONVERTED
TIRE”
MEANS
A
USED
TIRE
WHICH
HAS
BEEN
MANUFACTURED INTO A USABLE COMMODITY OTHER THAN A TIRE.
“CONVERSION” OR “CONVERTING” MEANS ACTION WHICH PRODUCES
A
CONVERTED
TIRE.
USABLE
PRODUCTS MANUFACTURED
FROM
TIRES, WHICH PRODUCTS ARE THEMSELVES CAPABLE OF HOLDING
ACCUMULATIONS
OF
WATER,
SHALL
BE
DEEMED
TO
BE
“CONVERTED”
IF THEY ARE STACKED,
PACKAGED,
BOXED,
CONTAINERIZED OR
ENCLOSED
IN SUCH A MANNER AS TO
PRECLUDE EXPOSURE TO
PRECIPITATION
PRIOR
TO
SALE
OR
CONVEYANCE.
(Section
54.02 of the Act)
“COVERED TIRE” MEANS A USED TIRE LOCATED IN A BUILDING,
VEHICLE OR FACILITY WITH A ROOF EXTENDING OVER THE TIRE,
OR SECURELY LOCATED UNDER A MATERIAL SO AS TO PRECLUDE
EXPOSURE TO PRECIPITATION.
(Section 54.03 of the Act)
“DISPOSAL”
MEANS
THE PLACEMENT OF USED TIRES INTO OR ON
ANY
LAND
OR
WATER
EXCEPT
AS
AN
INTEGRAL
PART
OF
SYSTEMATIC
REUSE
OR
CONVERSION
IN THE REGULAR COURSE OF
BUSINESS.
(Section 54.04
of
the
Act)
“NEW TIRE” MEANS A TIRE WHICH HAS NEVER BEEN PLACED ON
A VEHICLE WHEEL RIM.
(Section 54.05 of the Act)
12 1—782
35
“PROCESSING”
MEANS
THE
ALTERING,
CONVERTING
OR
REPROCESSING OF USED OR WASTE TIRES.
(Section 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.
(Section 54.07
of the
Act)
“Retread” or “Retreading” means the process of attaching
tread to the casing of used tires.
“REUSED TIRE” MEANS A USED TIRE THAT
IS USED AGAIN,
IN
PART OR AS A WHOLE,
BY BEING EMPLOYED
IN A PARTICULAR
FUNCTION OR APPLICATION AS AN EFFECTIVE SUBSTITUTE FOR
A
COMMERCIAL
PRODUCT
OR
FUEL
WITHOUT
HAVING
BEEN
CONVERTED.
(Section 54.08 of the Act)
“STORAGE” MEANS ANY ACCUMULATION OF USED TIRES THAT DOES
NOT
CONSTITUTE
DISPOSAL.
AT
A
MINIMUM,
SUCH
AN
ACCUMULATION MUST BE AN INTEGRAL PART OF THE SYSTEMATIC
ALTERATION, REUSE, REPROCESSING OR CONVERSION OF THE TIRE
IN THE REGULAR COURSE OF BUSINESS.
(Section 54.09 of the
Act)
“TIRE” MEANS A HOLLOW RING,
MADE OF RUBBER OR SIMILAR
MATERIALS,
WHICH WAS
MANUFACTURED
FOR THE
PURPOSE
OF
BEING
PLACED ON THE WHEEL RIM OF A VEHICLE.
(Section
54.10
of the Act)
“TIRE DISPOSAL SITE” MEANS A SITE WHERE USED TIRES HAVE
BEEN DISPOSED OF OTHER THAN at A LANDFILL PERMITTED BY
THE AGENCY,
or operated
in accordance with
Section
55
(d)
of the Act.
(Section 54.11 of the Act)
“Tire retreader” means a person who retreads used tires.
“TIRE STORAGE SITE”
MEANS A SITE WHERE USED TIRES ARE
STORED OR PROCESSED,
OTHER THAN THE SITE AT WHICH
THE
TIRES WERE SEPARATED FROM THE VEHICLE WHEEL RIM, THE SITE
WHERE THE USED TIRES WERE ACCEPTED IN TRADE AS PART OF
A SALE OF NEW TIRES, OR A SITE AT WHICH BOTH NEW AND USED
TIRES
ARE
SOLD
AT
RETAIL
IN
THE
REGULAR
COURSE
OF
BUSINESS, AND AT WHICH NOT MORE THAN 250 USED TIRES ARE
KEPT AT ANY TIME.
(Section 54.12 of the Act)
“Tire Storage Unit” means a pile of tires or a group of
piles of tires at a tire storage site.
“Tire Transporter”
means
a person who transports
used or waste tires in a vehicle.
121—783
36
“USED TIRE” MEANS A WORN, DAMAGED OR DEFECTIVE TIRE WHICH
IS NOT MOUNTED ON A VEHICLE WHEEL RIM.
(Section 54.13
of the Act)
“VECTOR”
MEANS
ARTHROPODS,
RATS,
NICE,
BIRDS OR OTHER
ANIMALS CAPABLE OF CARRYING DISEASE-PRODUCING ORGANISMS
TO A HUMAN OR ANIMAL HOST.
“VECTOR”
DOES NOT INCLUDE
ANIMALS THAT
TRANSMIT
DISEASE
TO
HUMANS ONLY WHEN USED
AS
HUMAN FOOD.
(Section 54.14 of the Act)
“VEHICLE”
MEANS EVERY DEVICE IN,
UPON OR BY WHICH ANY
PERSON OR PROPERTY
IS OR MAY
BE TRANSPORTED OR DRAWN,
EXCEPT DEVICES MOVED BY HUMAN POWER OR BY ANIMAL POWER,
DEVICES USED EXCLUSIVELY UPON STATIONARY RAILS OR TRACKS,
AND MOTORIZED WHEELCHAIRS.
(Section 54.15 of the Act)
“WASTE TIRE” MEANS A USED TIRE THAT HAS BEEN DISPOSED
OF.
(Section 54.16 of the Act)
Section 848.105
Incorporation by Reference
a)
The
Board
incorporates
the
following
documents
by
reference:
1)
National
Consensus
Standard,
NFPA
23lD
(1989) by reference.
2)
49 CFR 571.117
(1989).
3)
49 CFR 574 (1989)
4)
“Accounting Standards, General Standards”,
1988/89
Edition,
as
of June
1,
1988,
available
from the
Financial Accounting Standards Board, 401 Merrit 7,
P.O. Box 5116, Norwalk, CT
06856—5116.
5)
“Auditing Standards”-—Current Text, August
1,
1990
Edition,
available from the American Institute
of
Certified Public
Accountants,
1211 Avenue
of
the
Americas, New York,
NY
10036.
b)
This
Section
incorporates
no
later
amendments
or
editions.
12 1—784
37
SUBPART B:
MANAGEMENT STANDARDS
Section 848.201
Applicability
a)
This Part does not apply to used and waste tires exempted
pursuant to Section 55.1 of the Act.
b)
Owners
and
operators
of
tire
storage
sites
and
tire
disposal
sites
whose
operations
are
not
specifically
exempted by subsections
(c) through
(
f)
shall:
1)
Meet the requirements
of this Part by January
1,
1992
if used
or waste
tires were
disposed
of
or
stored prior to January
1,
1992;
or
2)
Meet the requirements of this Part prior to storing
or disposing any used or waste tires at the site if
the site first accepts tires for storage or disposal
after January
1,
1992.
c)
Tire storage
sites and tire disposal
sites where
less
than 50 used or waste tires are stored at the site are
exempted from the requirements of this Part.
However,
the prohibitions
of Section
55 of the Act do
apply
to
such sites.
d)
This Part does not apply to used or waste tires disposed
in permitted areas of landfills permitted by the Agency
pursuant
to
35
Ill.
Adm.
Code:
Subtitle
G:
Waste
Disposal.
Used
or waste tires
stored
at a
landfill
permitted
pursuant to
35
Ill.
Adm.
Code:
Subtitle
G:
Waste Disposal are subject to the requirements of this
Part.
e)
Owners or Operators who comply with the requirements of
this Part are not subject to the provisions of
35
Ill.
Adm. Code 849.
f)
Used or waste tires which have been altered by chopping,
shredding or slicing,
and stored at the site where such
tires
are
burned
as
fuel,
are
exempted
from
the
requirements of this Part.
Section 848.202
Requirements
a)
Unless exempted by Section 848.201, owners and operators
of tire storage sites and tire disposal sites shall meet
the requirements
of this
Section.
These requirements
shall
apply
to
all used or waste tires
located at the
site,
including
altered
tires,
converted
tires
and
reprocessed tires.
12 1—785
38
b)
At sites
at which more than 50 used or waste tires are
located
the
owner
or operator
shall
comply with
the
following requirements:
1)
Used
or
waste
tires
shall
not be
placed
on or
accumulated
in any pile
outside
of
any building
unless the pile
is separated from all
other piles
by
no
less
than
25
feet
and
aisle
space
is
maintained to allow the unobstructed movement
of
personnel and equipment.
2)
Used or waste tires shall not be accumulated in any
area
located
outside of any building unless
the
accumulation
is
separated
from
all
buildings,
whether on or off the site, by no less than 25 feet.
3)
Used
or
waste
tires
shall
not
be
placed
on
or
accumulated in any pile unless the pile is separated
from
all
potential
ignition
sources,
including
cutting and welding devices, and open fires, by not
less
than
250
feet
or
all
such
activities
are
carried out within a building.
.4)
Used or waste
tires shall
be drained of water on
the day of generation or receipt.
:5)
Used or waste tires received at the site shall not
be
stored unless within
14 days after the receipt
of
any
used
tire
the
used
tire
is
altered,
reprocessed,
converted,
covered
or
otherwise
prevented
from accumulating water.
All used and
waste
tires
received at the site before
June
1,
1989,
shall
be
altered,
reprocessed,
converted,
covered
or otherwise prevented from accumulating
water by January
1,
1992.
£)
USED OR WASTE TIRES SHALL NOT BE ABANDONED, DUMPED
OR
DISPOSED
ON
PRIVATE
OR
PUBLIC
PROPERTY
IN
ILLINOIS,
EXCEPT
IN A
LANDFILL PERMITTED
BY
THE
AGENCY
PURSUANT TO
35
ILL.
ADM.
CODE
PART
807.
(Section 55(a) (5)
of the Act)
7)
Used or waste
tires shall not be accepted from
a
vehicle
in
which
more
than
20
tires
are
loaded
unless the vehicle displays a placard issued by the
Agency under Section 848:
Subpart
F.
S)
Tires shall
not be accumulated
in an area
if the
grade
of
the
ground
surface
exceeds
two percent
slope unless the requirements of subsection
(d) (3)
of this Section are met.
121—7
86
39
c)
In addition to the requirements set forth in subsection
(b),
the
owner
or
operator
shall
comply
with
the
following requirements at sites at which more than 500
used or waste tires are located.
1)
A contingency plan which meets the requirements of
Section 848.203 shall be maintained.
2)
The
recordkeeping
and
reporting
requirements
of
Subpart C shall be met.
3)
Used
or
waste
tires
shall
not
be
placed
on
or
accumulated in any pile unless the pile is separated
from grass,
weeds,
brush,
over—hanging
tree limbs
and similar vegetative growth by no
less than 50
feet.
-
4)
Used
or
waste
tires
shall
not
be
placed
on
or
accumulated in any tire storage unit unless the unit
is no more than 20 feet high by 250 feet wide by 250
feet long.
In determining the width or length of
any tire storage unit the aisle space between any
piles within the unit shall be included.
5)
Used
or
waste
tires
shall
not
be
placed
or
accumulated in any tire storage unit unless one of
the following requirements is met:
A)
The tire storage unit
is separated
from all
buildings, whether located on or off the site,
and all other tire storage units by an earthen
berm that is no less than 1.5 times the maximum
height
of any
tire
pile within
the
storage
unit;
or
B)
The tire storage unit
is separated from
all
buildings, whether located on or off the site,
and
all
other
tire
storage
units
by
a
separation distance that is not less than the
distance identified by the following:
121—787
40
Required Separation Distances
From Tire Storage Units
(in feet)
Tire Storage Unit Height
(in 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
(b) and
(c)
of this Section, the owner or operator shall
comply with the following requirements at sites at which
more than 10,000 used or waste tires are located.
1)
The area of the site where used or waste tires are
stored shall be completely surrounded by fencing in
good repair which is not less than 6 feet in height.
2)
Entrance to the area where used or waste tires are
located
shall
be
controlled
at
all
times
by
an
attendant,
locked
entrance,
television
monitors,
controlled
roadway
access
or
other
equivalent
mechanisms.
3)
The area of the site where used or waste tires are
stored shall be completely surrounded by an earthen
berm or other
structure not
less
than
2
feet
in
height
except
that
the
owner
or
operator
shall
provide a means for access through or over the berm
or other
structure,
capable
of containing
runoff
resulting
from
tire
fires,
accessible
by
fire
fighting
equipment.
Sec~ion848.203
Contingency Plan
a)
If an owner or operator of a tire storage site or tire
disposal site is required by Section 848.202 to have a
-
contingency
plan
under
this
Section,
the
owner
or
operator must meet the contingency plan requirements of
this Section.
b)
The contingency plan must be designed to minimize the
hazards to Piuman health and the environment
from fires
and run-off of contaminants resulting from fires and from
121—788
41
disease—spreading mosquitoes and other nuisance organisms
which may breed in water accumulations
in used or waste
tires.
c)
The
provisions
of
this
plan
must
be
carried
out
immediately whenever there is a fire or run—off resulting
from tire
fire,
or evidence of mosquito production in
used or waste tires.
d)
The
contingency
plan
must
describe
the
actions
site
personnel
must
take
in
response
to
fires,
run—off
resulting from tire fires, and mosquito breeding in used
or waste tires.
e)
The contingency plan must include evacuation
procedures
for site personnel which describe signals to be used to
begin
evacuation,
evacuation
routes,
and
alternate
evacuation
routes
(in
cases
where
the primary
routes
could be blocked by fire).
The contingency plan must
include provisions
for pesticide application
or other
measures
for control
of mosquito breeding
in used and
waste tires.
f)
A copy of the contingency plan and all revisions to the
plan must be maintained at the site,
and submitted to
the
local
fire
departments,
police
departments,
the
Agency, and state and local emergency response teams that
may be called upon to provide emergency service.
g)
The contingency plan must be reviewed and amended within
30 days,
if the plan fails
in an emergency or the list
of emergency coordinators changes.
h)
At all times, there must be at least one employee, either
on the site premises or on call, with responsibility for
coordinating
all
emergency
response
measures.
This
emergency coordinator must be familiar with all aspects
of the contingency plan,
all operations and activities
at the site, the location of all records within the site
and the site layout.
In addition, this person must have
the authority to commit the resources needed to carry out
the contingency plan.
Section 848.204
Storage
of
Used
and
Waste
Tires
Within
Buildings
a)
Owners
or
operators
of
tire
storage
sites
or
tire
disposal
sites
who
store used
or waste
tires
within
buildings shall meet the requirements of this Section.
b)
Used or waste tires may be stored within a building if:
121—789
42
1)
the
tires
are
drained
of
all
water
prior
to
placement in the building;
2)
all
of
the building’s
windows
and
doors
are
in
working
order
and
are
secured
to
prevent
unauthorized access;
3)
the building is
fully enclosed and has a roof and
sides which are impermeable to precipitation; and
4)
the
building
is
not
a
single
family
home
or
a
residential dwelling.
c)
In addition to the requirements set forth in subsection
(b), if 500 or more used or waste tires are stored within
a building, then the owner or operator shall:
1)
develop
a
tire storage plan
in consultation with
the local fire department or the state fire marshal
meeting the following requirements:
A)
the plan shall be developed by considering the
type of building to be used for tire storage,
i.e. warehouse or grain elevator, and the type
of used or waste tires being stored,
i.e. whole
or shredded;
B)
the plan shall include, but not be limited to:
the tire storage arrangement; aisle
space
if
necessary;
clearance distances
between
tire
piles and the building ceiling, unit heaters,
duct furnaces and sprinkler deflectors;
and
access
to
fire
fighting
personnel
and
equipment; and
C)
a copy of the tire storage plan shall be filed
with the Agency within 60 days of the effective
date of
this
Part and
the plan requirements
shall be implemented within 14 days of filing
the tire storage plan with the Agency;
2)
have and maintain
a contingency plan which meets
the requirements of Section 848.203; and
3)
meet the recordkeeping and reporting requirements
of Subpart C.
d)
Buildings constructed after the effective date of these
rules for the primary purpose of storing used or waste
tires in excess of 10,000 shall comply with the NFPA 231D
standard
for
storage
of
rubber
tires
incorporated
by
reference at Section 848.105.
121—790
43
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 requirements:
a)
Maintain
a record of pesticide use at the site.
Such
a record shall include the following information for each
application:
1)
Date of pesticide application;
2)
Number of used or waste tires treated;
3)
Amount of pesticide applied; and
4)
Type of pesticide used.
b)
Notify the Agepcy of pesticide use within 10 days of each
application.
The
notification
shall
include
the
information listed in subsection
(a).
C)
Persons applying pesticides to used and waste tires must
comply with the requirements of the Illinois Pesticide
Act
(Ill.
Rev.
Stat.
1989,
ch.
5,
par.
801
et
seq.).
Information is available from:
Illinois Department of Agriculture
Bureau of Plant
& Apiary Protection
State Fairgrounds
P.O. Box 19281
Springfield, IL 62794—9281
SUBPART C:
RECORDKEEPING AND REPORTING
Section 848.301
Applicability
The
requirements
of
this
Subpart
shall
apply
to
an
owner
or
operator of
a tire storage site or a
tire disposal
site who
is
required by
the management
standards
of
Subpart
B
to maintain
records
in accordance with this Subpart.
Section 848.302
Records
a)
The owner and operator shall keep a record of used and
waste tires
at the site.
The owner and operator shall
keep the following records:
1)
Daily Tire Record
2)
Annual Tire Summary
121—791
44
h)
Each Annual Tire Summary submitted to the Agency shall
be in a form as prescribed by the Agency.
Section 848.303
Daily Tire Record
a)
The
owner
or operator shall
maintain
the
Daily
Tire
Record at the site; such record shall include the day of
the week,
the date,
the Agency designated site number
and the site name and address.
b)
The
following
information relative to
used
and
waste
tires shall be recorded in the Daily Tire Record:
I)
The weight or volume of used or waste tires received
at the site during the operating business day.
2)
The
weight
or
volume
of
used
or
waste
tires
transported
from
the
site
during
the
operating
business day and the destination of the tires
so
transported.
3)
The total
number of used or waste tires remaining
in
storage
at
the
conclusion
of
the
operating
business day determined in terms
of the passenger
tire equivalent
(PTE)
in accordance with subsection
(c).
4)
The weight or volume of used or waste tires burned
or combusted during the operating business day.
c)
The number of tires shall be determined in terms of the
passenger tire equivalent
(PTE)
by weight or by volume
as follows:
1)
PTE based on weight:
PTE
=
W
/
PTE weight factor
where,
W
=
weight of whole or shredded tires
(lb)
PTE weight factor
=
25 lb/PTE
2)
PTE based on volume:
PTE
=
V
/
PTE volume factor
where,
V
=
volume of whole or shredded tires
(ft3)
PTE volume factors:
for shredded tires,
1.25 ft3/ PTE;
121—792
45
for whole tires, 4.00
ft3/
PTE.
d)
If both weight
and volume of used
or waste tires
are
monitored at a site,
then the weight of the tires shall
be used to estimate the PTE by weight in accordance with
subsection
(c) (1).
e)
The owner or operator may establish procedures different
from those specified in subsection
(c)
for the purposes
of estimating the number of tires as long as the number
of
tires
are
estimated
in
terms
of
passenger
tire
equivalent.
Such methods shall be established based on
the different
types
of used or waste tires
including,
but not limited to, light truck tires, heavy duty truck
tires,
and shredded tires and method of stacking.
f)
If the number
of used
or waste tires
is estimated by
employing
a
procedure
established
in
accordance
with
subsection
(e), then the owner or operator shall submit
to the Agency such a procedure along with any supporting
information such
as
tire weight
and volume
data,
and
method of stacking, within 30 days of the effective date
of this Part for Agency approval.
g)
For the purposes of this Part, “passenger tire equivale-
nt”
(PTE) means an average sized passenger tire weighing
25
lb,
and occupying a volume of
4.0
ft3 when whole or
1.25 ft3 when shredded.
h)
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
an
Annual
Tire
Summary at the site; such record shall include the Agency
designated site number, the site name and address and the
calendar year for which the summary applies.
b)
The
following
information relative
to used and waste
tires shall be recorded in the Annual Tire Summary:
121—793
46
1)
The
weight
or
volume
of
used
or
waste
tires
received at the site during the calendar year.
2)
The
weight
or
volume
of
used
or
waste
tires
transported from the site during the calendar year.
3)
The total number of used or waste tires determined
in
terms
of the
passenger tire equivalent
(PTE)
remaining
in
storage
at
the
conclusion
of
the
calendar year.
4)
The
weight
or
volume
of
used
or
waste
tires
combusted during the calendar year.
c)
The Annual Tire Summary shall be received by the Agency
on or before January 31 of each year and shall cover the
preceding calendar year.
Section 848.305
Retention of Records
Copies of all records required to be kept under this Subpart shall
be retained by the owner and operator for three years and shall be
made available at -the site during the normal business hours of the
operator for inspection and photocopying by the Agency.
Section 848.306
Certification
a)
All records, summaries or reports submitted to the Agency
as required by this Subpart shall be signed by a person
designated by the owner or operator as responsible for
preparing and reviewing such documents as part of his or
her duties in the regular course of business.
b)
Any person signing a document submitted under this Part
shall
make
the following certification:
I certify that
this document and
all
attachments
were prepared under my direction or supervision.
Based
on my inquiry
of the person or persons who
manage
the
system,
or
those
persons
directly
responsible
for
gathering
the
information,
the
information
submitted
is,
to
the
best
of
my
knowledge and belief, true, accurate, and complete.
I
am aware
that there
are
significant
penalties
under
Section
44
of
the Environmental
Protection
Act
including
the
possibility
of
fine
and
imprisonment
for
knowingly
submitting
false
information.
12 1—794
47
SUBPART D:
FINANCIAL ASSURANCE
Section 848.400
Scope and Applicability
a)
This
Subpart
applies
to owners- and operators
of
tire
storage
sites
and
tire
disposal
sites,
except
as
otherwise provided in this Section.
b)
Unless exempted by subsection
(c), owners and operators
shall comply with this Subpart:
1)
Prior
to storing or disposing any used or waste
tires, for sites where used or waste tires are first
stored or disposed on or after January
1,
1992;
2)
By January
1,
1992,
for sites where used or waste
tires
are disposed or stored prior to January
1,
1992.
c)
Owners
and operators
of
tire
storage
sites
and
tire
disposal sites are exempt from this Subpart with respect
to the following types of sites:
1)
Sites where the
real estate of the
site
is
owned
by:
A)
The United States or one of its agencies;
B)
The State of Illinois or one of its agencies;
or
C)
A unit of local government.
2)
Tire disposal sites with
a
waste disposal
permit
under Section 21 of the Act and
35
Ill.
Adm.
Code
807 or 811.
If used or waste tires are stored at
the
site,
then
the
storage
activities,
unless
otherwise exempted, are subject to this Subpart.
3)
Sites where less than 500 used or waste tires are
stored at the site and less than 50 used or waste
tires have been disposed at the site,
as reported
on the annual notice of activity under Section 55(d)
of the Act.
4)
Sites where,
as reported
in the annual notice of
activity,
less than 5000 used or waste
tires
are
stored at the site and less than 50 used or waste
tires have been disposed.
Provided, however, that
this
exemption
does
not
apply
if
the
owner
or
operator has
been
issued,
in
any calendar
year,
12 1—795
48
pursuant to Section 55.5 of the Act, more than one
written notice of violation of Section 55(a),
(b)
or
(C) of the Act.
Section 848.401
Upgrading Financial Assurance
a)
The owner or operator shall maintain financial assurance
equal
to
or
greater
than
the
current
cost
estimate
calc&ilated pursuant
to
Section
848.404
at
all
times,
except as otherwise provided by subsection (b).
b)
The
owner
or operator shall increase the total amount of
financial
assurance
so
as
to
equal
the
current
cost
estimate
within
90
days
after
any
of
the
following
occtx:rrences:
-
1)
An increase in the current cost estimate;
2)
A decrease in the value of a trust fund;
3)
A determination
by
the
Agency
that
an
owner
or
operator
no
longer
meets
the
financial
test
of
Section 848.415(d);
or,
4)
Notification by the owner or operator that the owner
or
operator
intends
to
substitute
alternative
financial
assurance,
as
specified
in
Section
848..406,
for self—insurance.
Section 848.40:2
Release of Financial Institution
The Agency shall release a trustee, bank, surety or other financial
institution when:
a)
An owner
or operator substitutes alternative
financial
assu:rance such that the total
financial
assurance
for
the
site
is equal to or greater than the current cost
estimate, without counting the amounts
to be released;
or
b)
The
Agency
releases
the
owner
or
operator
from
the
requirements
of
this
Subpart
following
completion
of
removal.
Section 848.403
Application of Proceeds and Appeal
a)
The Agency may sue in any court of competent jurisdiction
to enforce its rights under financial instruments.
The
filing of an enforcement action before the Board is not
a condition precedent to such an Agency action,
except
121—796
49
when this Subpart or the terms of the instrument provide
otherwise.
b)
As provided in Titles VIII and IX of the Act and 35 Iii.
Adm. Code 103 and 104, the Board may order that an owner
or operator modify a removal plan or order that proceeds
from financial assurance be applied to the execution of
a removal plan.
c)
The following Agency actions may be appealed to the Board
as a permit denial pursuant to 35 Ill.
Adm. Code 105:
1)
A refusal to accept financial assurance tendered by
the owner or operator;
2)
A refusal to release the owner or operator from the
requirement to maintain financial assurance;
3)
A refusal to release excess funds from a trust;
5)
A refusal to approve a reduction in the amount of
a letter of credit;
7)
A determination that an owner or operator no longer
meets the financial test.
Section 848.404
Removal Cost Estimate
a)
The
owner
or
operator
shall
submit
to
the
Agency
a
written estimate of the cost of removing all used and
waste tires from the site.
1)
The owner or operator shall submit the cost estimate
with
the
annual
notice
of
activity pursuant
to
Section 55(d)
of the Act.
2)
The cost estimate is due on January 1 of each year,
commencing January
1,
1992.
b)
The owner
or operator shall
revise the cost estimate
whenever a change in the removal plan increases the cost
estimate.
c)
The cost estimate equals the larger of the following:
1)
The
cost
of
removing
all
used
and
waste
tires
accumulated at the site; or
2)
The cost of removing the maximum number of used and
waste tires which the owner or operator anticipates
will be accumulated at the site at any time.
12 1—797
50
d)
The owner or operator shall base the cost estimate on
either:
1)
Costs to the Agency under a contract to perform tire
removal actions in the area
in which the site
is
located; or
2)
Projected
costs,
assuming
that
the
Agency
will
contract with a third party to implement the removal
plan.
A third party is
a person who is neither a
parent nor a subsidiary of the owner or operator.
e)
The cost estimate must,
at a minimum,
include all costs
for all activities necessary to remove all used and waste
tires in accordance with all requirements of this Part.
f)
Once the
owner
or operator has completed an activity,
the
owner
or
operator
may
revise
the
cost
estimate
indicating that
the activity has
been completed,
and
zeroing that element of the cost estimate.
Section 848.406
Mechanisms for Financial Assurance
The owner or operator may utilize any of the following mechanisms
to provide financial assurance for removal of used and waste tires:
a)
A trust fund (Section 848.410);
b)
A letter of credit
(Section 848.413);
c)
Self-insurance (Section 848.415).
Section 848.407
Use of Multiple Financial Mechanisms
An owner or operator may satisfy the requirements of this Subpart
by establishing more than one financial mechanism per site.
These
mechanisms are limited to trust funds and letters of credit. The
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
121—7
98
51
amount of
funds available through the mechanism must be no less
than
the
sum
of
funds
that would
be
available
if
a
separate
mechanism had been established and maintained for each site.
The
amount
of
funds
available to the Agency must be
sufficient to
remove used and waste tires
from all of the owner or operator’s
sites.
In directing funds
available through a-single mechanism
for. the removal of any single site covered by that mechanism,
the
Agency shall direct only that amount of funds designated for that
site, unless the owner or operator agrees to the use of additional
funds available under that mechanism.
Section
848.410
Trust Fund
a)
An owner or operator may satisfy the requirements of this
Subpart by establishing a trust fund which conforms to
the
requirements
of
this
Section
and
submitting
an
original signed duplicate of the trust agreement to the
Agency.
b)
The trustee shall be an entity which has the authority
to act as a trustee and:
1)
Whose trust operations are examined by the Illinois
Commissioner of Banks and Trust Companies pursuant
to the Illinois Banking Act
(Ill. Rev.
Stat.
1989,
ch.
17, pars.
301 et seq.); or
2)
Who complies with the Corporate Fiduciary Act
(Ill.
Rev. Stat.
1989,
ch.
17, pars.
1551-1 et seq.).
c)
The
trust agreement must be on
the
forms specified in
Appendix A, Illustration A,
and the trust agreement must
be
accompanied
by
a
formal
certification
of
acknowledgment,
on
the
form specified
in Appendix A,
Illustration
B.
d)
Payments into the trust:
1)
The owner or operator shall make a payment into the
trust fund each year during the pay-in period.
2)
The pay-in period is five years.
The pay-in period
commences at one of the following times, whichever
is later:
A)
On the date the
site
first receives used or
waste tires; or
B)
On January
1,
1992.
3)
Annual
payments
are determined
by the
following
formula:
121—799
52
Annual payment
=
(CE-CV)/Y
where:
CE
=
Current cost estimate
CV
=
Current value of the trust fund
Y
=
Number of years remaining in the pay in
period.
4)
The owner or operator shall make the first annual
payment prior
to beginning of the pay-in period.
The
owner
or
operator
shall
also,
prior
to the
beginning of the pay-in period, submit to the Agency
a
receipt
from the trustee
for the
first
annual
payment.
5)
Subsequent annual
payments must be made
no
later
than
30 days after each anniversary
of the
first
payment.
6)
The owner or operator may accelerate payments into
the
trust
fund,
or may deposit the full amount of
the current cost estimate at the time the fund
is
established.
7)
The owner or operator shall maintain the value
of
the
fund at no less than the value the
fund would
have
if annual payments were made as specified in
subsection
(d) (3).
8)
If
the owner or operator establishes
a trust fund
after
having
used
one
or
more
alternative
mechanisms,
the first payment must be in at least
the amount the fund would contain if the trust fund
were established
initially
and
payments made
as
provided in subsection (d)(3).
e)
The trustee shall evaluate the trust fund annually,
as
of the day the trust was created or on such earlier date
as may be provided in the agreement.
The trustee shall
notify the owner or operator and the Agency of the value
within 30 days after the evaluation date.
f)
Release of excess funds:
1)
If the value of the financial assurance is greater
than the total amount of the current cost estimate,
the owner or operator may submit a written request
to the Agency for a release of the amount in excess
of the current cost estimate.
12 1—800
53
2)
Within
60 days after receiving a request
from the
owner or operator for a release of funds, the Agency
shall instruct the trustee to release to the owner
or operator such funds
as the Agency specifies in
writing
to
be
in
excess
of
the
current
cost
estimate.
g)
Reimbursement for removal expenses:
1)
After initiating removal,
an owner or operator, or
any other person authorized to perform removal, may
request reimbursement for removal expenditures, by
submitting itemized bills to the Agency.
2)
Within
60 days after receiving the itemized bills
for removal activities,
the Agency shall determine
whether the expenditures are in accordance with the
removal plan.
The Agency shall instruct the trustee
to make reimbursement in such amounts as the Agency
specifies in writing as expenditures in accordance
with the removal plan.
3)
If the Agency determines, based on such information
as is available to it, that the cost of removal will
be greater than the value
of the trust
fund,
it
shall withhold reimbursement of such amounts as it
determines
are
necessary
to
preserve
the
trust
corpus
in
order
to
accomplish
removal
until
it
determines that the owner or operator is no longer
required
to
maintain
financial
assurance
for
removal.
In the event the fund is
inadequate to
pay
all
claims,
the
Agency
shall
pay
claims
according to the following priorities:
A)
Persons with whom the Agency has contracted to
perform removal activities
(first priority);
B)
Persons who have completed removal authorized
by the Agency
(second priority);
C)
Persons who have completed work which furthered
the removal
(third priority);
D)
The
owner
or operator
and
related
business
entities
(last priority).
Section 848.413
Letter of Credit
a)
An owner or operator may satisfy the requirements of this
Subpart by obtaining an irrevocable
standby
letter of
121—801
54
credit which conforms to the requirements of this Section
and submitting the letter to the Agency.
b)
The issuing institution shall be an entity which has the
authority to issue letters of credit and:
1)
Whose letter—of—credit operations are regulated by
the
Illinois
Commissioner
of
Banks
and
Trust
Companies;
or,
2)
Whose deposits are insured by the Federal
Deposit
Insurance Corporation.
c)
Forms:
1)
The letter of credit must be on the forms specified
in Appendix A,
Illustration C.
2)
The letter of credit must be accompanied by a letter
from the owner or operator, referring to the letter
of credit by number,
issuing institution and date,
and providing the following information:
name and
address of the site and the amount of funds assured
for removal from the site by the letter of credit.
d)
An owner
or operator who uses a letter of credit must
also establish a standby trust
fund.
Any amounts drawn
by the Agency pursuant to the letter of credit will be
deposited in the standby trust fund.
The standby trust
fund must meet the requirements of a trust fund specified
in Section 848.410, except that:
1)
The
owner
or
operator
shall
submit
a
signed,
duplicate original of
the
trust agreement
to the
Agency with the letter of credit;
and
2)
Unless the standby trust
is
funded, the following
are not required:
A)
Payments into the trust
fund.
B)
Updating of Schedule A of the trust agreement
to show the current cost estimates.
C)
Annual
valuations
as
required
by the
trust
agreement.
D)
Notices of nonpayment as required by the trust
agreement.
e)
Cond:itions on which the Agency may draw on the letter of
credit:
121—802
55
1)
The Agency shall
draw on the letter of credit
if
the owner or operator fails to perform removal in
accordance with the removal plan.
2)
The Agency shall draw on the letter of credit when
the owner or operator:
A)
Abandons the site;
B)
Is adjudicated bankrupt;
C)
Fails to
initiate removal when ordered to do
so by the Board pursuant to Title VII of the
Act,
or when ordered to do so by
a court
of
competent jurisdiction;
D)
Notifies
the
Agency
that
it
has
initiated
removal,
or
initiates
removal,
but
fails
to
proyide removal in accordance with the removal
plan; or
E)
Fails
to
provide
additional
or
substitute
financial
assurance
when
required
to do
so
under this Subpart.
f)
Amount:
1)
The letter of credit must be issued in an amount at
least equal to the current cost estimate.
2)
The Agency shall approve a reduction in the amount
whenever the current cost estimate decreases.
g)
Term:
1)
The letter of credit must be irrevocable and issued
for a period of at least one year.
2)
The
letter
of
credit
must
provide
that
the
expiration date will be automatically extended for
a period of at least one year, unless, at least 120
days before the current expiration date, the issuing
institution notifies both the owner and operator and
the Agency, by certified mail, of a decision not to
extend the expiration date.
Under the terms of the
letter of credit,
the 120
days will begin
on the
date when both the owner or operator and the Agency
have received the notice, as evidenced by the return
receipts.
h)
Cure of default and refunds:
121—803
56
1)
The Agency shall release the financial institution
if,
after
the Agency
is
allowed to draw
on
the
letter of credit, the owner or operator or another
person provides financial assurance for removal from
the
site,
unless
the
Agency
determines
that
a
removal plan or the amount of substituted financial
assurance
is
inadequate
to
provide
removal
as
required by-this Part.
2)
After removal has been completed in accordance with
the removal plans and the requirements of this Part,
the Agency shall refund any unspent money which was
paid to the Agency by the financial institution.
Section &~8.415
Self-Insurance for Non-commercial Sites
a)
Definitions.
The following definitions are intended to
assist
in the understanding
of this Part and
are
not
intended to limit the meanings of terms
in any way that
conflicts with generally accepted accounting principles:
“Assets” means all existing and all probable future
economic
benefits
obtained
or
controlled
by
a
particular entity.
-
“Current
assets”
means
cash
or
other
assets
or
resources commonly
identified
as
those
which are
reasonably expected to be realized in cash or sold
or consumed during the normal operating cycle
of
the business.
“Current
liabilities”
means
obligations
whose
liquidation is reasonably expected to require the
use of existing resources properly classifiable as
current
assets
or the
creation
of
other
current
liabilities.
“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.
121—804
57
“Liabilities” means probable future sacrifices of
economic benefits arising from present obligations
to transfer
assets or provide
services to
other
entities
in
the
future
as
a
result
of
past
transactions or events.
“Net working capital” means current
assets minus
current liabilities.
“Net
worth”
means
total
assets
minus
total
liabilities and is equivalent to owner’s equity.
“Tangible
net worth”
means
tangible assets
less
liabilities;
tangible
assets
do
nOt
include
intangibles such as goodwill and rights to patents
or royalties.
b)
Information to be Filed
An owner or operator may satisfy the financial assurance
requirements of this Part by providing the following:
1)
Bond
without
surety
promising
to
pay
the
cost
estimate (subsection
(c)).
2)
Proof that the owner or operator meets the financial
test (subsection
(d)).
c)
Bond Without Surety.
An
owner
or operator utilizing
self—insurance
shall
provide
a bond without
surety on
the forms specified in Appendix A, Illustration D.
The
owner or operator shall promise to pay the current cost
estimate
to the Agency
unless
the
owner
or operator
provides removal in accordance with the removal plan.
d)
Financial Test
1)
To pass the financial test,
the owner or operator
shall
meet
the
criteria
of
either
subsection
(d) (1) (A)
or
(d) (1) (B)
:
A)
The owner or operator shall have:
i)
Two
of
the
following
three
ratios:
a
ratio of total
liabilities to net worth
of less than 2.0;
a ratio of the sum of
net
income plus depreciation,
depletion
and amortization to total liabilities of
greater than 0.1;
or
a ratio of current
assets to current liabilities of greater
than 1.5; and
121—805
58
ii)
Net working capital and tangible net worth
each at least six times the current cost
estimate; and
il-i)
Tangible
net
worth
of
at
least
$10
million; and
iv)
Assets in the United States amounting to
at
least
90
percent
of
the
owner
or
operator’s total assets and at least six
times the current cost estimate.
B)
The owner or operator shall have:
1)
A current rating of AAA, AA, A or BBB for
its most recent bond issuance as
issued
by Standard and Poor, or a rating of Aaa,
Aa, A or Baa,
as issued by Moody; and
ii)
Tangible net worth at least six times the
current cost estimate; and
iii) Tangible
net
worth
of
at
least
$10
million; and
iv)
Assets
located
in
the
United
States
amounting to at least
90 percent of its
total
assets
or at
least
six times
the
current cost estimate.
:2)
To demonstrate that
it meets this test,
the owner
or operator shall submit the following items to the
Agency:
A)
A
letter
signed
by
the
owner
or operator’s
chief financial officer and worded as specified
-in Appendix A, Illustration F; and
B)
A
copy
of
the
independent certified public
accountant’s report on examination of the owner
or
operator’s
financial
statements
for
the
latest completed fiscal year; and
C)
A special report from the owner or operator’s
independent certified public accountant to the
owner or operator stating that:
i)
The accountant has compared the data which
the
letter
from
the
chief
financial
officer specifies as having been derived
from the independently audited, year-end
financial statements for the latest fiscal
12
1—806
59
year with the amounts in
such financial
statements; and
ii)
In
connection
with
that
procedure,
no
matters came to the accountant’s attention
which
caused the accountant
to believe
that
the
specified
data
should
be
adjusted.
e)
Updated Information.
1)
After the initial submission of items specified in
subsection
(d), the owner
or operator shall send
updated information
to the Agency within
90 days
after the close of each succeeding fiscal year.
2)
If
the
owner
or
operator
no
longer
meets
the
requirements
of
subsection
(d),
the
owner
or
operator shall send notice to the Agency of intent
to establish alternative financial assurance.
The
notice must be sent by certified mail within 90 days
after the end of the fiscal year for which the year-
end financial data show that the owner or operator
no longer meets the requirements.
f)
Qualified
Opinions.
If
the
opinion
required
by
subsections
(d) (2) (B) and
(d) (2) (C)
includes an adverse
opinion
or
a
disclaimer
of
opinion,
-the Agency
shall
disallow
the
use
of
self—insurance.
If
the
opinion
includes other qualifications, the Agency shall disallow
the use of self—insurance
if:
1)
The qualifications relate to the numbers which are
used in the financial test;
and,
2)
In
light
of
the
qualifications,
the
owner
or
operator has
failed
to demonstrate that
it meets
the financial test.
g)
Parent Corporation.
An owner
or operator may satisfy
the
financial
assurance requirements
of
this
Part by
demonstrating that a corporation which owns an interest
in the owner or operator meets the financial test.
The
owner
or operator shall
also provide
a
bond with the
parent as surety (Appendix A, Illustration E).
12 1—807
60
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 OWNR
OR OPERATOR HAS ENTERED INTO A WRITTEN
AGREEKENT TO PARTICIPATE
IN A CONSENSUAL REMOVAL
ACTION UNDER SECTION
55.3(c)
OF THE ACT
(Section
55.4 of the Act); or
-
2)
The owner or operator has received
a permit
from
the Agency pursuant to the requirements of
Subtitle
G: Waste Disposal for the disposal of solid waste
at lar~dfills; or
3)
The
owner
or
operator has
submitted
a
complete
written proposal pursuant to Section 848.503 for a
tire removal agreement to the Agency in accordance
with this Subpart by July
1,
1991,
the owner
or
operator has submitted all information required or
necessary to process the submission, and the Agency
has not made
a determination with respect
to the
submittal.
b)
The requirements of subsection
(a)
shall
not apply
if
the
owner
or operator has removed all used and waste
tires
from the tire disposal site prior
to January
1,
1992.
An owner or operator may obtain approval of a tire
removal agreement for a specific area within a facility;
however, the remainder of the facility must be operated
under
a permit issued by the Agency under 35
Ill.
Adm.
Code:
Subtitle G:
Waste
Disposal
for
the
disposal
of
solid waste
in landfills or be subject to a consensual
removal action under Section 55.3(c)
of the Act.
c)
For tire disposal sites at which used or waste tires are
first disposed after January 1,
1992, prior to disposing
any used or waste
tires
the owner
or operator
shall
obtain
a
permit
from
the
Agency
pursuant
to
the
requirements
of
35
Ill.
Adm.
Code:
Subtitle
G:
Waste
Disposal
for
the disposal of solid wastes at landfills.
Section 848.502
Removal Performance Standard
121—808
61
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
AWl
RESIDUES
THEREFROM;
AND
c)
PROTECTS HUMAN HEALTH DURING THE REMOVAL AND POST REMOVAL
PERIODS.
(Section 55.4 of the Act)
Section 848.503
Contents
of
Proposed
Tire
Removal
Agreements
a)
A proposed TIRE REMOVAL AGREEMENT SUBMITTED TO THE AGENCY
for
approval
under
this
Subpart
E
SHALL
INCLUDE
THE
FOLLOWING:
1)
A COMPLE~TEINVENTORY OF THE TIRES
LOCATED ON THE
SITE.
2)
A DESCRIPTION OF HOW THE REMOVAL WILL BE CONDUCTED
IN ACCORDANCE WITH Section 848.502.
3)
A
DESCRIPTION
OF THE METHODS
TO
BE USED
DURING
REMOVAL INCLUDING, BUT NOT LIMITED TO, THE METHODS
FOR REMOVING, TRANSPORTING, PROCESSING, STORING OR
DISPOSING OF TIRES
AND RESIDUES,
AND THE OFFSITE
FACILITIES TO BE USED.
4)
A DETAILED DESCRIPTION OF OTHER ACTIVITIES NECESSARY
DURING
THE
REMOVAL
PERIOD
TO
ENSURE
THAT
THE
REQUIREMENTS OF Section 848.502 ARE MET.
5)
A SCHEDULE OF COMPLETING THE REMOVAL OF TIRES FROM
THE SITE, AS REQUIRED IN Section 848.504.
(Section
55.4 of the Act)
b)
The owner or operator may propose amendment of the tire
removal agreement at any time prior to notification of
the completion of partial or final removal of tires from
the facility.
To request a change in an approved tire
removal
permit,
an
owner
or
operator
shall
submit
a
written request to the Agency.
The written request must
include a copy of the amended tire removal agreement for
approval by the Agency.
c)
Nothing
in
this
Section
shall
preclude the
owner
or
operator from removing used or waste tires in accordance
with the approved partial or final tire removal agreement
121—809
62
before certification of completion of partial or final
removal.
S~e-c~tion848.504
Time Allowed for Tire Removal
a)
EACH APPROVED tire
removal AGREEMENT
SHALL
INCLUDE A
SCHEDULE BY WHICH THE OWNER OR OPERATOR MUST COMPLETE
THE REMOVAL ACTIVITIES.
THE TOTAL TIME ALLOWED SHALL
NOT EXCEED THE FOLLOWING:
1)
ONE YEAR IF THE SITE CONTAINS 1,000 TIRES OR LESS;
2)
TWO YEARS IF THE SITE CONTAINS MORE
THAN
1,000 TIRES
BUT LESS THAN 10,000 TIRES;
3)
FIVE
YEARS
IF THE
SITE
CONTAINS
10,000
OR MORE
TIRES.
b)
THE OWNER OR OPERATOR
MAY
APPLY FOR AN EXTENSION OF TIME,
NO LATER
THAN
90 DAYS BEFORE THE END OF THE TIME PERIOD
SPECIFIED IN THE AGREEMENT.
THE AGENCY SHALL NOT GRANT
SUCH AN EXTENSION UNLESS IT DETERMINES THAT THE OWNER OR
OPERATOR
HAS
PROCEEDED
TO
CARRY
OUT
THE
AGREEMENT
WITH
ALL DUE DILIGENCE.
THE REQUESTED EXTENSION OF TIME
MAY
NOT
EXCEED
3
YEARS,
AND
THE
AGENCY
MAY
APPROVE
THE
REQUEST AS SUBMITTED OR
MAY
APPROVE A LESSER AMOUNT OF
TIME if the removal activities can be completed within
such lesser amount of time.
(Section 55.4 of the Act)
Se~ction848.505
Removal Plan
a)
The removal plan is the approved tire removal agreement
for the site,
if one has been approved.
Otherwise,
the
removal plan is the proposed tire removal agreement.
b)
An owner or operator who has provided financial assurance
based on
a proposed agreement shall provide substitute
financial assurance based on the approved plan within 90
days after the Agency approves a tire removal agreement.
This may consist of substitute financial assurance,
or
a
letter from the financial
institution acknowledging
receipt of the approved plan and indicating no objection.
Se~c.tion848.506
Initiation of Tire Removal
a)
Any owner or operator who is required to obtain financial
assurance under this Subpart shall submit a proposed tire
removal agreement to the Agency that satisfies Sections
848.502
-
848.505 within 30 days after the date on which
any tire disposal site or tire storage site receives the
known
final volume of used or waste tires or,
if there
121—810
63
is
a reasonable possibility that the tire disposal site
or tire storage
site will receive
additional used
or
waste tires,
no
later than one year after the date on
which the site received the most recent volume of used
or waste
tires.
If the owner
or operator
of
a
tire
storage site or tire disposal site demonstrates to the
Agency
that
the
site
has
the
capacity
to
receive
additional used
or waste tires
and that
the owner or
operator has taken and will continue to take all steps
to prevent threats to human health and the environment,
the Agency shall
approve an extension to this one—year
limit.
b)
The owner
or operator
shall begin removal
of used and
waste tires in accordance with the approved tire removal
agreement within
30 days after written Agency approval
of the tire removal agreement unless the tire removal
agreement specifies otherwise.
c)
The Agency shall have authority to approve a later date
for
initiation
of
tire
removal
in
a
tire
removal
agreement if:
1)
the owner
or operator demonstrates
to
the Agency
that a binding contractual relationship exists under
which the owner or operator will remove all used and
waste tires from the site within two years; or
2)
other
factors
relative
to operation
of
the
site
necessitate a later date for initiating removal of
used and waste tires.
Section 848.507
Certification of Removal Completion
WITHIN 60 DAYS AFTER THE COMPLETION OF REMOVAL ACTIVITIES UNDER AN
APPROVED tire removal AGREEMENT under this Subpart E, THE OWNER OR
OPERATOR SHALL SUBMIT TO THE AGENCY A CERTIFICATION THAT THE SITE
OR THE AFFECTED PORTION OF THE
SITE
subject to
a
tire removal
agreement HAS BEEN CLEARED OF TIRES IN ACCORDANCE WITH THE APPROVED
tire removal AGREEMENT.
(Section 55.4 of the Act)
Section 848.508
Agency Approval
FOR A SITE AT WHICH THE OWNER OR OPERATOR IS PROPOSING TO PROCEED
WITH REMOVAL under
a tire removal agreement, rather than obtaining
a permit under
35
Ill.
Adm.
Code:
Subtitle G: Waste Disposal
for
the
disposal
of
solid
waste
in
a
landfill,
THE
AGENCY
SHALL
APPROVE, MODIFY OR DISAPPROVE A PROPOSED AGREEMENT WITHIN 90 DAYS
OF RECEIVING IT.
IF THE AGENCY
DOES NOT APPROVE THE AGREEMENT,
THE AGENCY
SHALL
PROVIDE
THE
OWNER OR OPERATOR WITH A WRITTEN
STATEMENT OF REASONS FOR THE REFUSAL, AND THE OWNER OR OPERATOR
SHALL MODIFY THE AGREEMENT OR SUBMIT A NEW AGREEMENT FOR APPROVAL
121—811
64
WITHIN
30
DAYS
AFTER
RECEIVING THE
STATEMENT.
THE AGENCY SHALL
APPROVE OR MODIFY THE SECOND PROPOSED AGREEMENT WITHIN 60 DAYS.
IF THE AGENCY MODIFIES THE SECOND PROPOSED AGREEMENT, THE AGREEMENT
AS MODIFIED SHALL BECOME THE APPROVED AGREEMENT.
(Section 55.4 of
the Act)
Section 848.509
Board Review
MODIFICATION
OF OR
REFUSAL TO
MODIFY
A
proposed tire
removal
AGREEMENT SUBMITTE~DBY AN OWNER OR OPERATOR PROPOSING TO PROCEED
WITH REMOVAL under
-a tire removal agreement IS A PERMIT DENIAL FOR
PURPOSES OF appeal pursuant to
35
Ill.
Adm.
Code 105.
(Section
55.4 of the Act)
SUBPART F:
TIRE TRANSPORTATION REQUIREMENTS
Section 848.601
Tire Transportation Prohibitions
a)
Except as provided
in subsection
(c),
no person shall
transport more than 20 used or waste tires in a vehicle
unless the following requirements are met.
1)
The
owner
or operator has registered the vehicle
with the Agency
in accordance with this Subpart,
received approval
of
such
registration
from the
Agency, and such registration is current, valid and
in effect.
2)
The
owner
or operator displays
a
placard
on the
vehicle,
issued
by
the
Agency
following
registration,
in accordance with the requirements
of this Subpart.
b)
No person shall provide,
deliver or transport used
or
waste tires to a tire transporter for transport unless
the tram;porter’s vehicle displays
a placard issued by
the Agency under this Subpart identifying the transporter
as a registered tire hauler.
Section 848.602
Tire Transportation Registrations
a)
Tire
transportation
registrations
shall
be
made
on
application forms prescribed by the Agency which as
a
minimum shall require the following information:
1)
Name, address, telephone number and location of the
vehicle owner(s) and operator(s).
2)
A description of the number and types of vehicles
to he used.
12
1—812
65
3)
An agreement by the vehicle owner(s) and operator(s)
that:
A)
Tire loading, transportation and unloadingwill
be conducted in compliance with all applicable
state and federal laws and regulations.
B)
No tires shall be transported with other wastes
on
one
vehicle
if
such
could
result
in
a
hazardous
combination
likely
to
cause
explosion,
fire,
or release of a dangerous or
toxic gas,
or in violation of any applicable
state or federal law and regulation.
C)
The equipment and procedures to be used shall
be proper
for the tire transportation to be
safe for the
haulers,
handlers,
and
others,
and
meet
the
requirements
of
all
other
applicable
state
and
federal
laws
and
regulations.
-
b)
All tire transporter registrations
shall
be
signed by
the owner(s)
and operator(s)
of the vehicle;
or,
in the
name
of
the
owner
and
operator,
by
the
owner’s
and
operator’s
duly
authorized
agent
when
accompanied
by
evidence of authority to sign the application.
Section 848.603
Agency Approval of Registrations
a)
Tire
transporter
registration
applications
shall
be
deemed to be filed on the date of initial receipt by the
Agency of
a properly completed application on the form
prescribed.
b)
If the Agency
fails to take
final
action approving or
denying approval of this registration within 90 days from
the filing of the completed application, the applicant
may deem the registration approval granted for a period
of one calendar year commencing on the 91st day after the
application was filed.
c)
The Agency shall be deemed to have taken final action on
the date that the notice of final action is mailed.
d)
The Agency shall require the application to be complete
and consistent with the provisions of the Act and Board
regulations and may undertake such investigations and
request the applicant to furnish such proof as it deems
necessary to verify the information and statements made
in the application.
If the application is complete and
the approval thereof will not cause a violation of the
12 1—813
66
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
Board
r~egulat
ions.
f)
The
applicant may
deem any conditions
imposed by
the
A~gencyas a denial of approval of the registration for
piurposes of review pursuant to Section 40 of the Act.
g)
A tire transporter registration
approved hereunder
is
a~itomatica11ymodified to include any relevant change in
the Act or Board regulations.
The Agency shall revise
any
tire transporter registration issued by the Agency
under this Part to make the registration compatible with
any such relevant changes and so notify the registrant.
Failure of the Agency to
issue
a revised registration
s~ia11not excuse the registrant from compliance with any
such change.
Ii)
N~otire 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.
1)
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.
S---~action~B4S..
604
Registration No Defense
TC~-ie existeri~ceof an approved tire transporter registration under
t~nisPart shall not provide the transporter with
a defense to
a
~riolatioriof the Act or Board regulations, except for hauling used
c~.r
waste tires without an approved tire transporter registration.
S~ction84S.605
Duration and Renewal
a)
All registrations approved hereunder shall be effective
for a period of two years from the date of approval and
are renewable, except as provided in Section 848.603(1).
Applications
for registration renewal shall be made 90
days prior to the expiration date of the registration on
the forms prescribed by the Agency.
121—814
67
Section 848.606
Vehicle Placarding
a)
Upon approval
of a registration as
a tire transporter,
the
owner
or
operator
of
any
vehicle
registered
to
transport used or waste tires shall place a placard on
opposite
sides
of
the
vehicles
which
displays
a
number
issued by the Agency following the words “Registered Tire
Transporter:
(number)
.“
b)
Registered tire transporter numbers and letters shall be
removable only by destruction.
Directly adjacent to the
words and number,
the vehicle owner and operator shall
display
a
seal
furnished
by
the
Agency
which
shall
designate the date on which the registration expires.
121—815
68
S~ction848.Appendix A Financial Assurance Forms
Illustration A Trust Agreement
TRUST AGREEMENT
Trust Fund Number__________________
T:~:-ustAgreement, the “Agreement,” entered into as of the
dary
of
—
,
by and between
_________________
_____
___________
the “Grantor,” and
______________
——
,
the “Trustee.”
Whereas,
the
Illinois
Pollution
Control
Board
(IPCB)
has
e~tab1i~hedcertain
regulations
applicable
to
the
Grantor,
re~quiringthat an owner or operator of a used or waste tire storage
oi~disposal site provide assurance that
funds will be available
wh:i~enneeded for removal of used and waste tires from the site.
Wh-ereas~, the Grantor has elected to establish
a trust to provide
all or ~partof such financial assurance for the sites identified
1?i, 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,
an~dthe Trustee is willing to act as trustee.
Wh:-:ereas~, Trustee
is
an
entity
which
has authority
to
act
as
a
t~rustee and whose trust operations are regulated by
the Illinois
Cc~•mmissionerof Banks
& Trust Companies or who complies with the
Ccrporate Fiduciary Act
(Ill. Rev. Stat.
1989,
ch.
17, par.
1551-
1
ct seq.).
(Line through any condition which does not apply.)
Mcrw, Therefore,
the Grantor and the Trustee agree as follows:
S~ction.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.
S~ction 2.
Identification of Sites and Cost Estimates.
This
A~:reementpertains to the sites and cost estimates
identified on
attached. Schedule A
(on Schedule A,
list the name and address and
ir~itialcost estimate of each site for which financial assurance
i~demor~stratedby this Agreement).
121—816
69
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
c- ner 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;
12 1—817
70
b)
The Trzs~teeis authorized to invest the Fund in time or demand
deposiis~of the Trustee, to the extent insured by the Federal
Deposit-
~nsurance Corporation.
c)
Th
Tr~tee is authorized to hold cash awaiting investment or
distri~:tion uninvested
for
a
reasonable
time
and without
1iabiU±~-y
for the payment of interest thereon.
Section
7.
Commingling
and
Investment.
The
Trustee
is
expressly authorized in its discretion:
a)
To tra~s~-fer
from time to time any or all of the assets of the
Fund
ta~ any
common,
commingled
or
collective
trust
fund
creat-e~: -by the
Trustee
in
which
the
Fund
is
eligible
to
parti-c3.p~ate, subject to all of the provisions thereof, to be
commin~l~dwith
the
assets
of
other
trusts
participating
thereit
and
b)
To purth~seshares in any investment company registered under
the In’~’e~stmentCompany Act of 1940
(15 U.S.C.
80a-l et seq.)
includimg one which may be created, managed, underwritten or
to whj-ch~investment advice is rendered or the shares of which
are so2di
:by the Trustee.
The Trustee may vote such shares in
its
di~c•retion.
Section
8.
Express
Powers
of
Trustee.
Without
in
any way
limiting t1~powers and discretion conferred upon the Trustee by
the other ~a~.wisions of this Agreement or by law, the Trustee
is
expressly a~-thborizedand empowered:
a)
To
sell,,
exchange,
convey, transfer or otherwise dispose of
any prcç~-ertyheld by it, by public or private sale.
No person
dealjn~ with
the
Trustee
shall
be
bound
to
see
to
the
applic~*:-ion of
the purchase
money
or
to
inquire
into the
va1idi~yor expedience of any such sale or other disposition;
b)
To
inake.,
execute,
acknowledge
and
deliver
any
and
all
docum-ez~4z~~s
of transfer and conveyance and
any and all
other
instrune~.nts
that may be necessary or appropriate to carry out
the p~-~sgranted in this agreement;
c)
To regie~terany securities held in the Fund
in its own name
or in ~
name of a nominee and to hold any security in bearer
form
o~~inbook entry, or to combine certificates representing
such securities
‘with certificates of the same issue held by
the Trn~:teein 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
securiti~esmay 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
12 1—818
71
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
diThursements of the Trustee shall be paid from the Fund.
Section 10.
Annual
Valuation.
The
Trustee
shall
annually
furnish to the Grantor and to the IEPA a statement confirming the
value of the Trust.
The evaluation day shall be each year on the
_______
day
of
__________________.
Any securities
in the
Fund
shall be valued at market value as of the evaluation day.
The
Trustee shall mail the evaluation statement to the Grantor and the
IEPA within 30 days after the evaluation day.
The failure of the
Grantor to object in writing to the Trustee within
90 days after
the statement has been furnished to the Grantor and the IEPA shall
constitute a conclusively binding assent by the Grantor, barring
the
Grantor from
asserting
any
claim
or
liability against
the
Trustee with respect to matters disclosed in the statement.
Section 11.
Advice of
Counsel.
The Trustee may from time to
time consult with counsel, who may be counsel to the Grantor, with
respect
to any question arising as to the construction
of this
Agreement or any action to be taken hereunder.
The Trustee shall
be fully protected, to the extent permitted by law,
in acting upon
the advice of counsel.
Section 12.
Trustee Compensation.
The Trustee shall be entitled
to
reasonable
compensation
for
its
services
as
agreed upon
in
writing from time to time with the Grantor.
Section 13.
Successor Trustee.
The Trustee may resign or the
Grantor
may
replace
the
Trustee,
but
such
resignation
or
replacement shall not be effective until the Grantor has appointed
a
successor trustee
and 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,
12 1—819
72
transfer a~nd pay
over
to the
successor trustee
the
funds
and
properties
then constituting
the
Fund.
If
for any reason
the
Grant~orcan~.notor does not act in the event of the resignation of
the
~TrustE.~a,the
Trustee
may
apply
to
a
court
of
competent
juri$icti4~n for the appointment
of
a successor trustee or
for
instructio~i~.s. The successor trustee
shall
specify the date
on
which it a~
.:.sumes administration of the trust in a writing sent to
the Granto-”:,
the IEPA and the present Trustee by certified mail
ten days
h~efore such• change
becomes
effective.
Any
expenses
incurredb~the Trustee as a result of any of the acts contemplated
by this Se~-tionshall be paid as provided in Section
9.
Section 14~..
Instructions to the Trustee.
All orders,
requests
and .instru~tionsby the Grantor to the Trustee shall be in writing,
signed by
~uch
persons as are designated in the attached Exhibit
A or such c’~therdesignees as the Grantor may designate by amendment
to E~thibit A.
The Trustee
shall
be
fully protected
in
acting
without
im~--iry
in accordance with the Grantor’s orders,
requests
and instru~tions.
All
orders,
requests and instructions by the
IEPA
to t~e Trustee
shall
be
in
writing,
signed
by
the
IEPA
Director a~rhis designees, and the Trustee shall act and shall be
fully- prot~ctedin acting in accordance with such orders,
requests
and instru~’tions. The Trustee shall have the right to assume,
in
the
~bsenc~a
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
occur-red.
The Trustee shall have no duty to act in the absence of
such
order.~s, requests and
instructions
from the
Grantor
and/or
IEPA~, exce~tas provided in this agreement.
Section 15.
Notice of Nonpayment.
The Trustee shall notify the
Grantor an~.J.the IEPA, by certified mail within ten days following
the expira-’zion of the 30-day period after. the anniversary of the
establishm~antof the Trust,
if no payment
is
received
from
the
Grantor du:~ingthat period.
After the pay-in period is completed,
the Truste~ shall not be required to send
a notice of nonpayment.
Section
16...
Amendment
of
Agreement.
This
Agreement may
be
amend7ed by
an
instrument in writing executed by the Grantor,
the
Trustee
an-~:d the
IEPA Director,
or by
the Trustee and the
IEPA
Director i~’~
the Grantor ceases to exist.
Section 17..
Irrevocability
and Termination.
Subject to
the
right of
th~
parties to amend this Agreement as provided in Section
16,
this
~rust
shall
be
irrevocable
and
shall
continue
until
termi:-nated
--at the written agreement of the Grantor, the Trustee and
the IF-PA Director, or by the Trustee and the IEPA,
if the Grantor
cease-s to
~-exist. Upon termination of the Trust,
all remaining
trust prope~:rty,less final trust administration expenses, shall be
deliv~eredt~othe Grantor.
121—820
73
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 affe,ct 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.
121—82
1
74
~tt~est:
Signature of
GrEantor
Typed
Nanue
TLtle_________
___________________
Se~l
Att:est:
Signature of
Tru~stee
T~~ped
Na~me
P~ttle
SeaLl
121—822
75
Section 848.Appendix A Financial Assurance Forms
Illustration B Certificate of Acknowledgment
CERTIFICATE OF ACKNOWLEDGMENT
State of
______________________________)
SS
County of ____________________________
On this
_______
day of
_____________________,
________
before
me
personally
came
______________________________
(owner
or
operator) to me known, who, being by me duly sworn, did depose and
say that she/he resides at________________________________________
(address), that she/he is __________________________________________
____________________
(title) of
-
_____
(corporation),
the
corporation
described
in
and
which
executed the above--instrument; that she/he knows the seal of said
corporation;
that the
seal
affixed
to
such
instrument
is
such
corporate seal;
that it was
so affixed by order
of the Board
of
Directors of said corporation, and that she/he signed her/his name
thereto by like order.
______________________________________ Notary Public
My Commission Expires ______________________________
Section 848.Appendix A Financial Assurance Forms
Illustration C Irrevocable Standby Letter of Credit
IRREVOCABLE STANDBY LETTER OF CREDIT
Director
Illinois Environmental Protection Agency
2200 Churchill Road
Springfield, Illinois 62706
Dear Sir or Madam:
We have authority to issue letters of credit.
Our letter-of-credit
operations are regulated by the Illinois Commissioner of Banks and
Trusts or our deposits are insured by the Federal Deposit Insurance
Corporation.
(Omit language which does not apply)
We hereby establish our Irrevocable Standby Letter of Credit
No.
__________________
in your favor, at the request and for the account
of ________________________________________ up to the aggregate
121—823
76
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 successive expiration date, unless, at least
120 days before the current expiration date,
we notify both you
and
by
certified mail that we have decided not to extend this letter of
credit beyond the current expiration date.
In the event you are
so notified,
any unused portion of the credit 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
121—924
77
This credit is subject to _________________________________
Section 848 .Appendix A Financial Assurance Forms
Illustration D Owner or Operator’s Bond Without Surety
OWNER OR OPERATOR’S BOND WITHOUT SURETY
Date bond executed:
Effective date:
Owner or operator:
Owner or operator’s address:
Site:
Site address:
Penal
sum:
S
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
121—825
78
Date
Corpor~~ateseal
Sec-tic-n 848.Appendix A Financial Assurance Forms
r.llustration E Owner or Operator’s Bond With Parent Surety
OWNER OR OPERATOR’S BOND WITH PARENT SURETY
Date b~-ondexecuted:
Effective Date:
Surety:
Surety?
-t
s address:
Owner
or operator:
Owner
or operator’s address:
Site:
Site a~ddress:
Penal.
sum:
$_____
The O~neror operator and Surety promise to pay the
above
penal
sum
tc~
the Illinois Environmental Protection Agency (“IEPA”) unless
the O~iner or operator provides removal
in accordance
with
the
remova’~.lplan for the site.
To the payment of this obligation the
Owner
~r operator and Surety jointly and severally bind themselves,
their
heirs, executors,
administrators,
successors and assigns.
Wherea’-~.sthe Owner or operator is required under 35 Ill. Adm. Code
848.St~bpartD to provide financial assurance for removal; and
Wherea~.sthe Owner or operator and Surety agree that this bond shall
be goirerned by the laws of the State of Illinois; and
12 1—826
79
Whereas the Surety is a corporation which owns an interest in the
Owner or operator;
The Surety shall pay the penal sum to the IEPA if, during the term
of the bond,
the Owner or operator fails to provide removal
for
any
site
in
accordance with the removal plan
for -that
site
as
guaranteed by this bond.
The Owner or operator fails to so provide
when the Owner or operator:
a)
Abandons the site;
b)
Is adjudicated bankrupt;
c)
Fails
to initiate removal when ordered to do so by the
Board or a court of competent jurisdiction; or
d)
Notifies the Agency that
it has
initiated removal,
or
initiates
removal,
but fails
to remove used and waste
tires in accordance with the removal plan.
e)
Fails
to
provide
additional
or
substitute
financial
assurance when required to do so under this Subpart.
The Surety shall pay the penal sum of the bond to the IEPA within
30 days after the IEPA mails notice to the Surety that the Owner
or operator has failed to so provide removal.
Payment shall be
made by check or draft payable to the State of Illinois.
In Witness Whereof, the Owner or operator and Surety have executed
this bond and have affixed their seals on the date set forth above.
The persons whose signatures appear below certify that they are
authorized to execute this surety bond on behalf of the Owner or
operator and Surety.
Owner or operator
Surety
Signature
Name
Typed Name
121—927
80
Address
Title
State ~ofInco~.rporation
Date
Signature
Typed ~Name
Title
Corpor~ateseal
Corporate seal
Section 848,Appendix A Financial Assurance Forms
I:1lustr~tionF Letter From Chief Financial Officer
LETTER FROM CHIEF FINANCIAL OFFICER
Director
Illincis Environmental Protection Agency
2200 C~iurchii.1Road
Springfield, Illinois 62706
Dear S.ir or- ~adam:
I am the chief financial officer of___________________________
This i~tteris in support of this firm’s use of financial test to
demonstrate
financial
assurance pursuant
to
35
Ill.
Adm.
Code
848.415.
This letter Ls to demonstrate financial assurance for the following
sites:
Owner
or
operator:
Name:
Address:
12 1—828
81
City:
Current
S
cost estimate:
Owner or operator:
Name:
Address:
City:
Current cost estimate:
$
Please
attach
a
separate page
if more space
is
needed
for
all
facilities.
Attached is an Owner or operator’s Bond without Surety or an Owner
or operator’s Bond with Parent Surety for the current cost estimate
for each site.
(Strike inapplicable language.)
Financial Test
Alternative
I
1.
Sum of current cost estimates
(total
of all cost estimates
shown in paragraphs above)
$
2.
Total
liabilities
(if any portion
of the cost estimates
is
included
in total liabilities,
you may deduct the amount of
that portion from this line and add that amount to lines
3
and 4)
$
______________________________________
3.
Tangible net worth
$_______________________________________
4.
Net worth
$_________________________________________
5.
Current assets
S
_________
12 1—229
82
6.
Current liaoilities
$
7.
Net working capital
(line
5 minus line
6)
$
8.
The
sum
of
net
income
plus- depreciation,
depletion,
and
amortization
$
9.
Total assets in U.S.
(required only if less than
90 percent
of firm’s assets are located in the U.S.)
$
_____
_____
Yes
No
10.
Is line 3 at least $10 million? _____________________________
11.
Is line
3 at least
6 times line 1? _________________________
12.
Is line 7 at least
6 times line 1? _________________________
13.
Are at least 90 percent of firm’s assets located in the U.S.?
If not, complete line 14. ________________________________
14.
Is line 9 at least
6 times line 1? __________________________
15.
Is line
2 divided by line 4 less than 2.0?
_________________
16.
Is line 8 divided by line 2 greater than 0.1?
______________
17.
Is line 5 divided by line
6 greater than 1.5?
______________
Signature
Typed Name
Title
Date
Financial Test
Alternative II
1.
Sum of
current cost estimates
(total
of all cost estimates
shown in paragraphs above)
$
2.
Current bond rating of most recent issuance of this firm and
name of rating service _________________________________________
12 1—830
83
3.
Date of issuance of bond
____
4.
Date of maturity of bond_____
5.
Tangible net worth
(if
any portion
of the cost estimate
is
included
in
“total
liabilities”
on
your
firm’s
financial
statements,
you may add the amount
of that portion to this
line)
$
6.
Total assets in U.S.
(required only if less than 90 percent
of firm’s assets are located in the U.S.)
$
Yes
No
7.
Is line 5 at least $10 million? ____________________________
8.
Is line 5 at least
6 times line 1? __________________________
9.
Are at least 90 percent of firm’s assets located in the U.S.?
If not complete line 10. __________________________________
10.
Is line 6 at least
6 times line 1?
Signature
Typed name
Title
Date
12 1—83
1
84
IT IS SO ORDERED.
I,
Dorothy M.
Gunn,
Clerk
of the Illinois Pollution Control
Board, he~eb~y
certify that the abqve Opinion- and Order was adopted
on the
~‘S~-
day of
-C~
/
,
1991,
by a vote of
/1’
~
~Th.
Dorothy M./’~unn, Clerk
Illinois Pç~l1utionControl Board
121—832
