ILLINOIS POLLUTION CONTROL BOARD

December 27, 1984

IN

THE

MATTER

OF:

FINANCIAL ASSURANCE FOR CLOSURE

)

R84-22A

AND POST-CLOSURE CARE

OF

WASTE

)

DISPOSAL SITES

(EMERGENCY RULES)

)

IN

THE MATTER

OF:

)

FINANCIAL

ASSURANCE FOR CLOSURE

)

R84-22B

AND POST—CLOSURE CARE OF WASTE

)

DISPOSAL SITES (TEMPORARY RULES)

)

FINAL

ORDER.

ADOPTED EMERGENCY RULE (R84-22A)

PROPOSED RULE.

SECOND NOTICE (R8422B)

ORDER OF

THE BOARD

(by J. Anderson):

On July 19,

1984 the Board proposed amendments to

35

Ill.

Adrn, Code 807 in

order to implement the re~irement of

Section

21.1 of the

Act

that

persons

conducting

waste

disposal operations provide a

performance bond or other

securities insuring

closure of the site

and

post-closure

care in accordance with the

Act

and

Board ru1es~ The proposal

appeared

at 8 I1l~

Reg, 14145, August 10, 1984. The Board

has

conducted

hearings and received written comment on the

proposal. Section

21

~1

of the Act re~iiresthe Board to

adopt rules by January 1, 1985; yet, the Department of

Energy and Natural Resources has

not

prepared an economic

impact study.

The Board will therefore adopt regulations by

emergency action, and send temporary rules to second notice

in accordance with Sections 27(b) and 27(c) of the Act.

The

emergency rules and second notice proposal, as revised, are

attached to this Order. The Board has adopted a separate

Opinion.

IT is so ORDERED,

Board

Member John Marlin concurred.

Board

Member 13±13 Forcade dissented.

I, Dorothy N. Gunn, Clerk of the Illinois Pollution

Control

l3oard, her~ certify that the above Order was

adopted on the

~-day

of

~

1984 by a vote of

~1~yM.uñri,C1erk

Illinois Pollution Control Board

62467

---

ITLE 35: ENVIRONMENTAL PROTECTION

SUBTITLE 0. WASTE DISPOSAL

CHAPTER 1: POLLUTION CONTROL BOARD

SUE

~t~p

~iER 1’ SOL~DWASTE Nu SPECIAL WASTE HAULING

PART 807

Sect i or

807. .0

807 .32

807.2 3

807.2 ~

807..

807 2

807 207

807 20

807. 2~°

807 2 0

8O7,~ I

807,21

80,2 3

807 1

Secti

807. (3

807.302

807.3

807 30

807. 30

807.

807 3~)

807.3 ~

807 30

807.31

807 3 3

807.31

807.31

807~3be

807,31.

807. 316

Development Permits

Operating ?ermits

Lx erimental Permits

o

.er Authorization

1.

.1o.~tions for Permit

°~~m3tConditions

~‘tandards for Issuance

2cr

i

No Defense

°cr

ut

Revision

~ uplemental Permits

or Icr

Oc

Per its

~riL1t Revocat~on

Dc -ign peration ~nd Maintenance Criteria

~‘vi~edCost E5tlaates

S ‘BPART C

Sect i on

807 1

807.102

807,iu

807. 13

SUBPART ~l’ GENERAL PROVISIONS

Authority, Policy

and Purposes

R~peal

S

St~verability

Definitions

SUBPART B: SOLID WASTE PERMITS

Prohib~tior

C mo1ianc~ with Peri~.j

oh c o.otor

4~rer ~e ‘~o nd and Supervision

---

—3—

Operating

Records

Completion or Closure Requirements

SUBPART D: RESERVED

SUBPART B: CLOSURE AND POST-CLOSURE CARE

Section

807.501

807

,

S

Q_~

807.503

807._50

4

807.505

~ë

07.506

807.5 0

7

807.508

807,509

807. 5

23

807~524

Purpose, Scope and Applicability

Closure

Performance Standard

Closure

Plan

~iendmento Closure

Plan

Notice of

Closure and Final Amendment

to Plan

initiation of

Closure

Partial

Closure

~e~u:tification

of Closure

Use of

Waste Following Closure

Post-Closure

Care Plan

plementation and

Completion of

Post-Closure Care

Plan

SUBPART F:

FINANCIAL ASSURANCE FOR CLOSURE

AND

POST-CLOSURE CARE

Purpose, Scope

arid

Applicability

Requirement to Obtain Financial Assurance

Time

for Submission of Financial Assurance

Upgrading Financial Assurance

Release of Financial Institution

~j~ication

ofProceedsa~pl

Re I se

of thea eratc~i

Current

Cost Estimate

Cost

Estimate for

Closure

Esti~teorPost-co

sure Care

i3iennial

Revision of

Cost

Estimate

~

Mechanisms for

Financial

Assurance

iJ~gfj~u1tiL~~inancia1

Mechanisms

U

se of

Fin an cial Mec an

ism fo

Multile

Site

Trust: Fund for Unrelated Sites

ACRA Financial Assurance

~:~:uat

Fund

~33~tvBo~Gu~ranteein9

Payment Into Trust

Fund

5:3333

Bpn

d Gu ar an teein2 Perf

ormance

Letter

of Credit

Closure insurance

Se!

beinsurance for

Non—commercial Sites

Section

807,317

807,318

Section

807.600

807,. 601

807.602

807.603

807

.

60

4

807.

6 05

807. 6136

807.620

~

807.

621

80 7. 62

.~

80 7 23

807, 62 4

8

07. 641)

807.

41

807.04 2

80

7

~:

43

807 644

807 6 61

________

807.662

807.663

807,664

________________

807.665

_______________________

807.

6 66

~

A,

Illustration A

~RE33X A, I:I:.ustration

B

A,

Ii

~stration~

~

~o3io

3t1 ation D

~s~reement

Certificate of

Acknowledgment

Forfeiture

Bond

Performance

Bond

62-169

---

—4—

~2~ixA,~1lustratioiuE

Irrevocable Standby Letter of Credit

~~~J~Ji:Iustration

and/or Post—Closure Care

Au~ndix A,

illustration 0 ~~ator~s Bon

~~~iixA,

Illustration

H

Operator~ s-Bond With Parent Surety

~~nd3xA,IflustrationI

Letter from Chief Financial Officer

Appencuix -A Bu Old Fule

Numbers

Referenced

AUTHORITY; Implementing

Sections

5, 21.1 and 22 and

autho-

rized

by Section 27 of

the

Environmental Protection Act

(ill.

Rev, Stat. :2) 63, oh, 111

1/2, pars.

1005, 1021.1,

1022

and 1027).

SOURCE: Adopted as an emergency

rule

and filed with the

Secretary of State July 27, 1973; amended at 2 Ill, Reg.

16,

p.

3, effective April 10, 1978;

codified at

7 Ill. Req.

13636; recodified

from

Subchapter h to Subchapter i

at

8 Ill,

Req. 13198; amended at

*

Ill.

Reg.

_____,

effective

______

SUBPART A:

GENERAL PROVISIONS

Section

807.104

Definitions

Except

as

hereinafter stated, and unless a different meaning

of

a word or

term is clear from its context, the definitions

of words or terms

as are used in this Part shall be the same

as those used in the

Environmental Protection Act.

“Abandonment”

means the failure to initiate closure

~

waste”.

“Bedrock” means the solid rock exposed at

the

surface

of

the

earth or ovenlain by unconsolidated

material.

“CalF’ means

compacted refbse completely enclosed ~

cover material,

“Compactior$’ means the reduction of volume of material

under loac;.

Ccn333:;tiorL:csa~treatmenj~.

“Cover material’~~means soil

or

other material that is

used

to cover compacted

solid

waste in a sanitary

landfFll and that free

of objects that would hinder

compaction and free of

content

that

would be

conducive

to vector harbor age

,

feeding

or breeding

“Development” means construction

or

installation of a

39-~eS~~’ia—Ret’-;unit.

62- 170

---

~s~1”nuean~j~he

disc

harpe~deposit,

inj~ection

rdum,p—

~2illiI~,l~kin~r2lacin9

~

or

on any

1

and or

water or into

any

wel1

so

that

such

waste

or any constituent thereof

ma enter the environment or

be

emitted into the

a~ror disc

ar9ed

into an~waters,

~~udii~_roundwater,

As used in this P art, udis~posa1n

i cludes methods of storac~e

or

treatment in which

there

I nocertain-ol an to

remove wastes or was~_33~4~u es

from the storage or

treatment unit to another unit for

~Tt

I

m~~isosal,

“Facility”, as used in

this

Part,

me

ans the same thins,

as “unit”,

“Fir:

al

volume of waste”

means the last

smUt’

of

~

of waste

is assumed to

be

the final volume

if

the

operator

_

waste wit in ~30

d~-ter

~

the operator demon-

stratestj~~heoera~2r~ects

add ition al waste.

~ste at n~njattne

Si for disposal

in a manner

which

is not contr oiled

by the

a,perat or does not affe Ct

the determination of when

the final volume of waste was

~ceived

by

the

operator,

“Groundwater” means water

occurring in the zone

of

saturation in

any

aquifer or soil.

“Hazardous waste”

~

~

~

~

is as

defined__in

35 Iii. AdTCL. Code

721

~ncet

iuit~ ~uto~

C~P~

S

‘reatment”

OL “storage” ~r:

such a manner that

~eor~ would

face ‘technical dIf Ii—

cul ties or

bin h coeds.

in removing the wastes or waste

~

s

al

unit, so that

it may become

necessary to close the treat-

rnentotatorane’cnitas

a

dis osal_unit, A treatment or

storac~eunF.snwhicnwastes

or waste residues remain or

more

than c’le’-e33rJs ascii med

to be

“

inde fin ite

storage”

unless the ~~itor

demonstrates

that it will be tech—

al~feau4lcleandecc~omica11y

reasonable to remove

the wasto or ul t:Lna~

e~~sal

~ior to or upon cI

osu

re,

“Leachate” means liquid

containing materials

removed

from solid waste.

82-171

---

“Lift” means an accuricilation of refuse which

is compacted

into a cell and over which

compacted

cover

is

placed,

“Modification” means any

physical change, or change in

the method of operation,

of

a

solid waste management

e~4ty

unit. For

perposes of permits issued pirsuant

to

this

Part,

the Agency

may specify conditions under

which a solid

waste management

~eH~~y

unit may be

operated

without causing

a modification as herein

defined.

“Operator” means a person

who ~

~

conducts a waste

~ tmerit waste sj or a

eor wa

s te

S

al.

~Qner”:~earLsaers2nwI~oj~as an

in ter~~,direct1or

~

~‘ts~astetreatme:~t,~qastestorae

or waste disposal ~atson.

The “owner” is the “operator”

~foeratIc~ris,

__

no

so

~n

Si ~ec at e~

“Permeability” means

the

capability of a material to

pass a fluid.,

“Professional

Engineer”

means an engineer registered to

practice engineering in the

State of Illinois.

“Refuse”

means

~

waste,

“Salvaging” means the relurn of

~

waste material s to

beneficial use

“Scavenging” means the removal

of materials from a

soiid

waste management 1~e~a~r±~tyunit

in a

manner

not in

conformity with the regulations governing salvaging.

“Site” means any Iocatiori

.,

Fl

ace or tract of land e~~t

used fo.r vetid waste managem.ent. A. site

c3•e’3:3f~c3cOteunits,~

“Solid waste” means rceiuse waste,

~

~

Be~r~1~

“

Sol

4-’-4ane~ct’:Id

waste management”

~as~ema~aemen~.means

e—~eee~—ee~~e7

62-172

---

“Storage” means the containment

of waste~either on a

____at’ basis

or for

a period

of years, in such a

manner as

not

to constitu

te disposal of

such waste.

“Surface water” means all

water the surface of which is

exposed to the atmosphere.

“Treatment”~eansar~y~

method, technique or process

designed to change the

physical, chemical or biological

~

any waste so

as to neutralize

such waste or so as to

render such waste safer for

~

or reduced in volume

~~‘mean’deyIce,r~ec~anismementorare

a

used

for st~~e, treatment or

disposal of waste.

Vector”

me an s any :i iv in g agent,

other than lii man,

capable of transmitting~ directly

or indirectly, an

infectious

disease.,

“Waste”rneansan~qarba~e,

sludge from a waste treatment

~t,~atei~uoivty~atment

plant~

or air pollution

control cilit’or other

discarded material, including

solid, liquid, semi--solid,

or contained gaseous material

resulting from industriai,

commercial,

mining and agri-

cultural

operations,

or from community activities,

but

does

not include solid or

dissolved materials in domestic

~ge,orso1idordisso1vedmaterialsinirrigation

return flows or industrial

discharges which are point

sources subject to j~rn~its_under

35 Iii, Adm. Code

• 102

or sou

to e,

~gcia1nuc1

y-p~odu c

t

materials as defined

~by a

Atomic B r

Act of 1954,

as

d

~0

~ran

solic or

di s~9lved

mater i al from an~ fatility,j~ubject

to the Federal

Surface Mininq Control and Reclamation Act of 1977

(P. L.95-87ortheru1e~~g~ations

thereunder

law or~~ule or_r~atio~d2R~ed~~h~~ate

of Illinois put so ant thereto.

~astemasaqem~’:”r~eanstrie~rocess

of storage, treat—

ment. ~

ciwaste,_not

including

hauling

or

transport.

“Water table” means tbvr.

asrface in unconfined water at

which the pressure is

atmospheric and is defined by the

level

s at which water stands in

well

s that penetrate

the water just far enough to hold

standing water.

~rj~orking

face” means any part

of a sanitary landfill

where ~e4~ee waste is being

disposed.

(Source:

Amended at

Ill. Req.

_____,

effective

_________

82-.

173

---

SUB FR’

Section 80 .05

i~p ‘a ‘~r tor Permit

a)

All

aj icati. s cr

permit

required under these

rtgulaticn~

£

a

ntain

all

data

and

information

specif e I r

e ~1es governing

the

type of

tac at

to’

c t e permit is required.

b)

The Mei y i

a

ovt procedures requiring atch

a

is

so.

a

it

is reasonably necessary

to determine v.

a

.tar tie eel4d waste

management

site will ae~t

•.

requtrements of the Act and

regus a

c)

The

intor’ ~ticn r ,y

be aibnittel

-~crjbe the

form in which

all

...d

~nier

d)

Ml permit ap stcst..cns shall be signed by the

octet an

open

o of the ee1~ waste management

site

-

the

t

(ul authorized agents, shall be

a..ccmpanied b

idence of authority to sign the

app1~ctCo. ~nI shall be certified as to all

enginear ma eatures by a professional engineer.

e)

A

-

permit

a~.Ucations

to the aupro r ate address designated by the

Aga icy in.t r

e sent by registered or certified

mai’, rc.

~t.

equested or delivered in

A~pl_~..aao.swhich

are

hand-delivered

i. a

receipted Zor by the

Met

rj

t~ a

isim of

Land

Pollution

Con

0

o t

taec ~

iav-~ be ~r

-

Ar a~,li

a

1’

1’

14e son

ba

r-~q

sQ

H ; vet

‘4-

~tl-

u?

r

f)

An appi

“

t

t

tor cast

shall

not be deemed

filed unt 1

e

?j°...

ha ~eceived,

at the desig-

.at~ c.

.

-

ifr

dcuments,

and

-t

o

r

a

-

a

....ated Agercy pro’~edures.

i A

.~

aft r t~areceipt of an appli—

- .

c.r.c

permit

os cation for an operating

• ~

‘

.io

£

aoplicaticn is incomplete, and of

,.‘

app.. cation shall be

deemed

to

e

t

the date received by the Agency.

a k

~ the Agency’s notification

p

-e

~ incomplete as a denial of

ni

~)~.ii

,)

Ua

e’ of review

parsiant

to

.‘

U.

-

ft. I

C2 174

---

g)

If ~ie Agcno~i f

~o take final

action

on

the

applicat’on icr i~vc1opment

permit within 90 days

from the fii!rq h reof or on

the application for

o~er~’t~o~

1

1,ar~

L5

days from the filing

thereof, tie a~g icint may

deem the permit granted

on the 9ls~ day r trio 46th

day after the applica—

tior was t led

h) Any auplaca t for a permit may

waive the require-

ment

thrt ~ie lg..ncy s~iall take

final action

within 90 days or 45 days

from the filing of the

applicatic r.

1)

The Agency shall en all

notices of final action

by registered or certifed mail,

return receipt

requested. l~inal action shall

be deemed to have

taken place ~ tie date that

such notice is mailed.

j)

~~cifi’si~y

auttrzed~

statuteL Aany

person

adversely a~lecttd by th issuance

of a permit may

pettlon fib Bo~rl for

a iearing before the Board

t conte~ ~ i~’suance by the

Agency.

k) Up~n recorpt ± request

for a permit required by

thece regulati.

r~,

the

Agency shall

notify the

State’s Attorrey and

the Chairman

of the County

Board of the “ounty in which

the subject facility

is locatmd and each member

of the General

Assembly

from the legaslative dastrict

in which that facility

iS lo a ~d cna the

c

erk of

each municipality any

portior

‘

r

c

iJ

fin .iree

miles of the site.

1)

All ~p1

o.~.edf

tm

March 1, 1985, shall

in~1oda a

nrc p1.

or

~o a ~c1osure

care

pla~7

a do’ to ~‘o

t a

ti

r

d a post--.closure care

h

ii

a onerator will close

~

__

________

wfih a

~

r

~a

~egu~ ~ons.

(Source:

.~.

effective

____

Section

a) As ...v

-

r

3

(a) and 21(d) of the Act,

~~

a b.

accomplish

the purposes of

r istent

with regula-

tia.

r

e

tie Board

thereunder,

lit ii

~eportm and_full

acces~to

adec a~-

;e

~d

soection

of faciirties,

a.~m

it

~.

ec2~E~anc,~,~iththis

Act srd~

t:~.

standards_adopted

th~ror de

---

b) The applicant may deem any condition imposed by

the Agency as a denial of the permit for purposes

of

review oursuant to

Section

40 of

the Act.

c)

~~~mits

esued after

March

1,

1985 shall include

~

~

-closure~~anifi~uired;

3)

~atornotif

the

—

A~r~j within 30 da~

~receivin

the

final_v~lu

o waste;

4)

~remeitthatheoeratorinitiate

*

~

iQ~a

fter the site receives_its final

voluwe of ~aste;

5)

~

-

a~

to modif a

closure lan less

than

d~io.0o

receitof

the final volume

of waste

6)

Ar~~

raent

~theoeratorr2!i~finan-

—

caa.0

inoi a.ount~~ecur~ntcoste~imate

s.~tar-c

9~nc~!thSE~aL~F2

for

closui~

~st-~closure

care

7’

~~cr

rat the operator file revised

co~ ast~ra c~ For closure and post—closure

~

~

in accordance

(Source: Anc

ded ~

effective

_____)

Section 807.209

a)

Tie gezic

r

a -

~a

aiy sermit issued by it

—

to maRc th err

coirpat~ble with

any relevant

ne

uiat

alof ted by the Board,

I h~p

i-

a

~

~ics~

modification of a

t ~

807 ,,20r ~

a)J~

~nref1~2t1nth~9~1fica-

ti~

~c

(Source:

Amended a~

,

effective

)

---

—1 1~-.

Section

807.214

Revised Cost Estimates

a)

A

revised cost

estimate is an ost

estimate other

—

than one

which results

from

modification of a closure

~coesrecarean.

b) ~

~

it tel ates, itt need

not inclu de

an~additio~al

~

Section 807,205.

c)

A revised cost ec~ioo

a.

rmit modification

i.~r~evised

cost

estimate shal lbe

~dincorora

~hermitunlessthe

~

action

on

the revised

cost

estimate

within 9Cd a s

after its recei

t as

~bSecti~i39

a o

t e Act.

(Source:

Added at

,

effective

_________

SUBPART

E:

CLOSURE AND

POST-CLOSURE

CARE

Section

807.501

~~Scop~andA2p1icabi1it1

a) This

Sub art contains

eneral rovisions overnin

~

sites,

eseeneral

provisions may be supplemented

~secific

closure

and ost-closure

care

~ements

for certaint

es of waste mana ement

soecificall

the closure and ost-closure

irements for sanitar

landfills contained

art C,

~

~

Su

boart reso iresadiosure

I an and, for s~ne

os

it

care 1 an. The cc will beco~e

~onditions

ranant to Section 807.206.

which are not re ired to havea ermit

to Section 21(d) of the Act are not re ired

~reaciosure

or oct—closure care

Ian

c~ ~12~

re Ian and

oct-closure 2are

lan form

the

basis of the cost estimates and financial

~

~

in at ion as to whether aunit isadi soosal

or indefinite storae

unit, w~

mu st roy ie

financial assurance,

(Source:

Added at

111. Rag.

—

,

effective

_____

______)

62-.177

---

Section

807.502

~iosure

Performance Standard

addiUon to

the dP~~fic ~

Part,an

operator of

awdst~Jd ~j3~nt

site s

Icose_the

site

ma

manner

which,

release or

contamfi

it

to

the sm

threat

s

reed for further mairtenance’ aid

~ i~9~liminat~sost—dIosure

.~

‘~

~ a ~t~

~—r~r~‘

t’ tu

~‘ ‘-‘

t ~

I e ~

~‘

h~t~

~or~s~decom~on

~

~

~ ,an health or the environment,

(Sources Added

at

Ii . keg

effective

Section 807.503

~

~~afis

a

sterna

meat site si all have

pre~areda ~

con di

?ibn oTEt1~~i~

b)

~

o c aninde~

have r

~

a !~~~continentclosure1an

w

1

ch sha

J

a

~

~~ne

a r e j~llb~~mea~a

a 10

sure

cx ~

c)

The c losc a

j- I .shall inc Iu de as aminium,

1)

$te

or

02”

~a

be

t h~

Ii’-

a~ f or

the

ematare fir al closure

~.

att~e_time

du~~ its intencii

ifo when toe cost of c’osuor vill

c

~acest;

o ‘~L~e

final cosureof

at tre end of_its

irite ~ed

oj7eri~

3)

~fir

-

~

en

a ~r

nterno~~sitt~2i~n!L

if

~

al

o

~s hutdowns of the site withon

in

3

.

fin al closure

4)

A d

1o~Lthestesnecessarto

~ e

j~~n~~rindlopure

~

Rr~

~arinwhici~t~~of

~

---

—13—

6)

An

year of

closure

7)

c

—

whior

~or the

~,remature and

final closure

~znclude

at a minimum:

time

req~uired to close the

site;

for closure

activities

nh

allow tracking of the

progress

sure;

~nd

-

8)

Adea;.

d)

The

closu.~.

—

e)

Until

clo-~

maintain

at a defir...

as

to

be a~

on

of

methods for

compliance

with

~Parfi

ishall

be included in

the permit

~antto

Section 807.205.

been com~1eted, the

operator shall

of the

closure~planat

the site or

L~..cat1on,

specified in the

permit, so

:~

le durin~

in~pection

of the

site,

(Souroe~ Added

at

Rt~g.

_______

effective

)

Sectic~ 807.504

ant

of

Closure Plan

Au qpe~atorof a

WOL

Tcatt4~l~id~

is

ement

r~ c1~eI~

upon:

permit

Modifica

~t~ec~

authorize-

~

Modificat~

affect

tfi

the

site,

the peru

operatin9~1ansor

site

osure other than modifications

a permit;

or

-lle

operations of

the site which

pothonof

an

modifications authorized

in

~~tedto:

1)

At

at

2)

Att

acc

uspension of waste

acceptance

ir

increase in the rate

of waste

Li

~

in_whic...

-

;scted~earof closure

or the year

-

;~~rernatureclosurew

ill’ be the

(Source~

Added

of

eg.

—

effective

62-179

---

—14—

Section

807.505

a)

~~p~ato:

to the

after

the 5;

at a

waste

~j

~era

file an a”-

less

thai

volume

of

not

const

~ati

~on’.

..r..

of

Closure

and

Final

Amendment

to

-

waste man

agement

si te

shall send

~

he

final volume of waste

is received

“ment

site for treatment,

storaqe

a waste

mana

ement site

shall not

-

aJ~_!~QJ-

Y_~

a ‘a

before

receipt

of the final

itt

Failure to timel file

shall

bar

to consi eration

of suc an

cut m~yjDe

alle9edin

an

enforcement

~-Lto

Title

VIII of

the Act.

(Sources

Added at

I

effective

Section

807.506

a onof

Closure

~j

the

treatme

all

wastes

indefinite

1)

Withir

volume

b)

~fl~p~ra

within

30

waste, ei~

1)

Rena

unit;

2)

do’

con

f.

C)

~~_~2rd

after a

~itEhe~

-

a~~ement

site shall

initi ate

removal

from

the

site or

dl

o~

3ste residues

other than

ocefrp~

~ aie units:

-

5ys after

receiRt of the

final

- Li’te; and

~‘

with the

closure

2lan.

~ indefinite

stor

a~e unit shall,

-

rreceiptof afinal

volume of

ate:

.zastes

and

waste residues fron the

unit

in

accordance

with the

o

~

a

tdown.

The o

er ator mu st c omp, y

aso

any

S

(Sources

Added at

______

1

effective

Sea~ion

807.507

I

—

entire

ci

-

~~partsE

~

j~permit

~y~j

the site into

62-180

---

-~

15—

definite areas which include

one or more unit~

:

which case the operator may provide

separate c~o

and

post- closurec

ans and cost estimates ~

each area. In such a case the Agency

shall tre~~

eachar

sa

t site

fo~seso~ii~a

cial assurance.

b)

If a site

includes a disposal unit,

then ~Le

operator mu st 2rov ide fin

ancial

assurance for

closure of associated

~

even if the site is divided into

areas asprovf-~c.

in paragraph (a).

c) Post-closure care of areas formed by

dividi a

shall coi~tinue until

post_closureca~~thaca::

site is completed.

(Source; Added at 111. Reg.

_____,

effective

Saction 807.508

Certification

of Closure

a)

_____________________________

(Source:

When closure is completed, the operator

of a

waste management site shall

submit to th~Agetc~

1)

Plan sheets for the closed site; and

2)

2n

affidavit by the operator and by a

profas.

closed

~

in a-ic

b~

If the A9ency

fin ds that the si te has been clc~a

in accordance with

the ~ec:Lfications

of the cIc~

plan,

and

the closure

4~ernents

of

th~sP~i~:,

the Agency shall:

1)

Issue a certificate

of closure for

the

sic

2) Notif the

o erator in

writing that

any

app ~

~i

~

~.

date

eo-c~orecarep~

Added at

Ill. Reg.

______

,,

effective

Section 807.509

Use

of Waste Following

Closure

After an operator initiates closure

of

a site the

____

may

accept waste for disposal or

for use in closure d~1-

closure card only as authorized in the

ciodure and P2~~h~hJ....

care plans.

(Source: Added at Ill. Reg.

____—,

effective

62-181

---

—16—-

Section

807.523

Post-Closure

Care Plan

a)

An

a erator of a

dis

osal site shall have a written

post-c o~ure care

~

of the site permit.

b)

The ost-closure care lan

shall include as a

—

minimum a

description of

met ods or comp iance

with all

~

c) An o~eratorof an indefinite

storage unit shall have

i

wri??en

~

‘~häl1

fncluda.

as

a minimum a

description of

methods

of

~

of this

Part

as mm

the unit will be closed

as

a

~i~posal

unit without

removal of

~IT~astes

and

waste residues, The contingen~~oi?~losure

care

~lan shall ~

exc~as otherwisespecif~~yr2~ided.

(Source;

Added at

Ill. Rag,

______

effective

Section

p07.524

~

Closure Care

Plan

a) The o~eratorofawas!l~!li~E1~

~

inent

the ost—closure

care plan commencin

with

r~ce~.pt

b)

The operator

of an indefinite storage unit shall

im lement the

contin ent

ost—closure

care plan

~1o

sure

ursuant

to

the

contin ent closure lan,

The

oyer

~

st—closure

care plan if the A enc determines

that the

operator has removed al wastes and waste

residues_from

the

mndef mite storage

unit

c)

~

~odh~

ended when it determinesu

1) That the

post—closure

care_plan has been

—

~orüpl~TE~ ~

2) That the site

will not cause future

violations

(Sources

Added at

Ill. Reg.

_______,

effective

62-182

---

—17--

SUBPART F:

FINANCIAL ASSURANCE

FOR CLOSURE

AND POST-CLOSURE

CARE

—

t-ection

807.600

Pur,

se, Scope and

Aahilit~’

a) This Part provides procedures by

which an operator of

a waste disposal site can give

“financial

assurance~

satlefyi~qthe requirement

of Section

2lJ.(a) of

~

~

~

of insuring closure of the

site

andpost--cLvure

care in accordance with the Act

and

Board rules.

b) Each operator im~stfile a closure

plan ~

~

s ~

indefmite stora9eunit mu

st al sofia a

~

and

807.523), The o~era~9rof~~s2osalsite or

ind,~finitestora~eunit

mu~~2~are a

cost estimate

of closure and post-closure

care, and

provide

financial assurance in

this amount

(Sections

S07., 601

and

7.

62O).Financia1_~rancema~ijee

given through a combination of a

trust agreement,

bond

guarapteeing

payment, bond

guaranteeing payment

or performance, letter of credit,

insurance or

self—

insurance (Section 807.640). The cost estimate

and

amount of financial assurance is to be u dated at

east on a iennia

asis Section

807,623.

21 ~

~

~perators of disposal sites

or in defini te stor are

units

(Section

.807~.601). Whether a

site_isa

di spasal site or, al tern

ati~~,a~cr~-:rieatov

stora e site de ends on

whether the closure alan

provides for removal a a

wastes ~Tw

ear fees

from the site prior to

completion of closure,

Whether a

is an indef

sm

on the technical feasibi~~~ri~

economic reason.:

ableness

of removal of

all wabtes and waste rn,s-ideee

prior to ci

osure (Section 807,104),,

(Source.; Added at

Ill. Reg.

_____

,

effective

Section 807.601

Requirement to

Obtain Financial Assurance.

No~~2n ~haU

conduct

ia

stedisposalo~cnori~1,de.~init,e

storage

operation which reg~ires a

permit

under Section 21(d)

of the Act unless such

rson has rovided

financial assurance

a) The financial assurance re~

to the State of Illinois, its agencies

and instate-

62-183

---

—18—

tions, or to any unit

of local gov-~rnme~

-.

bowe~er,

that any

other persons

who c”rdust

~aste ‘disposal’ operation

on a

site whclr mc~y

ö~ned or operated

by

such a government

en4”’i’~-v

pro’~Tide financial’ assurance

for closure and

post-~1Osure‘c~Tre of

the

site.

b)

Financial assurance is

required

of all site

—

on or after March l,1985,

accept wa~”tef r I

or fo~“indefinite storage.

Sources Added at

Ill.

Reg.

,

effec4’rv’~-

Section

807.602

Time for

Submission

of Financial A~ r

a) For sites first receiving

waste for

diaposa~ eL

—

Ma~rch”l,

1985, the owner

or operator mu’-t r

fjnancial as~urance before

receipt

of was a 1’

dis~osa~.

b)

For sites which are

required to obtain

•

a

*

assurance as o’f

March

1, 1985, as prov4a4)

Section 807.601, financial

assurance rnu~.

ter~dered to’?he Agency

before March

1, l9’~

an amount equal to the cost

estimate,

v’trc ~

be baseTd on closure and

post—closure care pie.

-

on the formula of Section

807,624,

c.~ource;

Added

at

tli. Reg.

_____,

effective

_____________

:~ction

807.603 Upgrading

Financial Assurarc~

a)

The operator mast

maintain

finen~a1 asau~—

equal to or

greater thab t~o ‘a

at all time~except

as provici..,..

b)

The operator must

increase

r~ ~

financial assurance

so as to equra~. I

cost ~stimate’ within

90

leJc~~f

n’~’

‘ ‘

19

1)

An increase in,

the current

ciSi

2)

Adecre~se in the

value

of a

L

3)

A

deterini~ation

by

the Asency ~f

.~

no longer

meets the gross

re en

‘nest, or,

4)

Notification

by

the operator

‘n~

intends to

substitute

a1temn~Lc f’e~.

,~ 1

assurance instead

of self~-~aesi’~ren--

-

62-184

---

—19—

(Sourcr

Ado

at

Ills

Reg,

,

effective

______________

Section 807.604

Release of Financial

Institution

The Agency will

agree to release

a trustee, surety, insurer

or othe~ financial institution when:

a)

An operator

sUbstitutes

alternate financial assurance

*

~‘jj~h ‘that the total

financial assurance ~or the

i’i’f.e’ is equal to

or greater than the current cost

estimate

without

counting the amounts to be’ released

or,

b)

~

releases the

operator

from the require—

—

ments of ~

;

Subpart,

(Source:

Added

at

~l1,

Reg.

,

,

effective

_______________

Section 807.605

Application

of

Proceeds and

Appeal

a)

The

Agency

may sue in any

court of competent

*

Jurisdiction to enforce its

rights under einancial

instruments.

The

filing of an enforcement action

before

the Board is not a condition precedent

except when

the

regulations

or terms of the instru-

ment so

provide.

b) As provided

in Titles VIII and IX of the Act and

—

35 Ill. Mm. Code 103 and 104., the Board

may order

modifications in permits

to change the type or

amount of

financial

assurance pursuant to an

enforcement

action

or a variance petition. The

hoard

may

also

order a

closure or post—closure

care

plan modified,

and

order proceeds from

financial

assurance

applied

to execution of a

closure

or

post—closure

care plan.

c)

The

following Agency

actions may be appealed as a

—

permit

denial

to the

Board

pursuant to 35 Ill.

Mm Code

105

,ectioa

21 1(e)

of

the Act

1) Refusal to .rcept

financial assurance tendered

by the

operator.

2) Refusal to release

the operator from -the

requirement to maintain”

financial

asstirance.

3) Refusal

to

release

excess funds from a trust.

4) Refusal

to

approve

a

reduction in the penal sum

of a

bond,

62-185

---

—20—

5)

6) Refusal to approve a reduction in the face

amount of an

insurance

7) Determination that an operator no longer meets

—

?he gro~srevenue test or financial test.

(Source; Added at Ill. Reg.

,

effective

_____________)

Section 807.606

a)

Within 60 fr~safter receiving affidavits from

the operator and a

professional engineer that

closure has’ been accomplished in accordance with

the closure

plan,

the Agency will notify the operator

in writing that it is no longer required by this

Subpart to maintain financial assurance for

closure

of the particular site, unless the Agency has

reason to believe that closure has not been in

accordance

with the closure

b) Within 60 days after receiving affidavits from

the operator and a professional engineer that

‘post—

closure care

has been completed in accordance with

the post-closure care plan and the requirements

this

Part, the Agency

will notify the operator

in writing that it is no longer required to maintain

financial assurance ,for post-closure ‘care of the

site, unless the Aqency has reason to believe that

~ontinued

post-closure care is required p~rsuant to

the post—closure care plan and this Part.

(Source: Added at Ill. Reg.

,

effective

___________)

Section 807.620

Current Cost Estimate

The

b)

The current post-closure care cost estimate.

(Sources

Added at

—

Ill.

Reg.

______,

effective

___________

Section 807.621

a) The operator must have a written estimate in

current dollars of the cost of closing the site

in

ac~cordance with the closure plan. The cost

~stimate shall be a condition of the permit.

62-186

---

-2 1—

b)

The operator

must

revise the

closure

whenever a change in the closure plan increases the

closure cost estimate.

c)

The closure cost estimate must be based on the

steps necessary for

the premature final clo~re

of the site at the time during its intended

operating life when the cost of

áldsure

will he

greatest, or on

the

steps necessary for the final

closure àf the site at the end of its intended

operating life,

whichever

1) The closure cost estimate nust be based on

the assumption that the Açency will contract

2) The closure cost estimate r~aynot ~ red~ced

by allowance for salvage value

of

equi’~ment

or

waste.,

c~ The closure cost estimate nust,, at aminimuzn, include

the following elements,, if required in the site

permit

for closure of the site:

1)

The

area which is to

receive

4) The cost of final grading of

A~ Fertilizing

BI

Seedings

C) Mulchioq.

7)

The cost of installation of gas control

equ

ipment~

62-187

---

f)

This

Section does not grant

anthority to the Agency

to

require

the operator to perform any of’ the

Indicated activitie,s;

however, if the site permit

requires

a closure activity, the operator must include

the

cost in the cost estimate. Once the Qperator

has

completed an activity, the operator may file a permit

applicatio~ ind~icating that the activity

has

been corn—

pleted~

and

zeroing

t~tat

element’ of the cost estimate’,

c?urce; Added

at

Ill. Reg~

_____,

effective

______________

.‘~~oct”,oo~O7,~622

Cost Estimate for Post-closure Care

~

The o

roe”

ator of a disposal site

must

have a

written

estinore

in current dollars, of the annual cost

Of pos~”closure

monitoring and maintenance of the

site

accordance

with the applicable post-closure

care ~oc:latjons

of this

Part.

The post—closure

care :,,osL

estimate is calculated

b~

multiplying

‘t~ie’anoo~l

cost estimate by the number of years of

post~cIosure care required

b~this Part. The post—

closure

care cost estimate shall be a condition

Of

the

pprmit.

Until

the

Agency has issued a certificate of closure

for

the

site, the operator must revise the post~

closure

care cost estimate whenever a change ‘in the

post’~’closure

care plan increases the cost estimate.

i~

The

post—closure cost estimate must be based

on the assumption that the Agency will contract

‘~ith a

third party to implement the

~ost-

closure care plan

2) Tbe

oost’~closure

cos. estimate may not be

reduced

by

allowance

for salvage value of

ccci

pment or waste, ~or for resale value of land,

d~

The post”~~closurecare

cost estimate must, at a

ojnin~n’,’

include

the

following elements if

required

in the site

permit for po~t-cloaire~areof the site:

1)

Ftimber

of years

of post-closure care required.

2

Groundwater monitoring:

A)

Number of

monitoring points

13) Parameters to be monitored

62-188

---

C)

Frequenc~rof

D)

Cost per parameter per sainpli.ng.

~j

Cover stabilization’:

A’) E~timateof ‘the

area

which is

annually to require residual settlement

or erosion control work

B)

~nnual

cost of

C)

2nrxual cost of mowing.

a) This Section does not grant

authority

to the A9ency

to require

the

operator

to

perform

any of the indicated

activities; however,, if the

site pe~xni”t

re~itres a

closure activity,4

the o~~atar.must”ii~c’lude

‘the cost

in the cost estimat~.

‘~Once

“the ojerator

has öomp~’eted

an activity, the operator may file a ~permitappiic~tion

indicating that the activity

has been

comp’letea,, ancf

zeroi.ng that element of the ~co~testimate,

Added at

Ui. Reg~.

_____,

effective

____________

z:oct2ofl

807.623

Biennial

Revision

of cost Estimates

o)

The

operator must revise the current cost estimate

at least once every ~twoyears, The revised current

cost estimate must be filed on or befor~thesecozid

“anniversary of the

filing or last re’~ision of th&’

current cost estimate~

U;

The operator must

review the closure

and

post—

closure

care

plans prio~to filing a revised cost

estimate

in

order to determine whether they are

consistent

with

current operations

and

regulations.

The operator must either

certify that the plans

are consistent, or must fil~

an appli~cat’ion reflecting

new ~lan~.

a) The operator must prepare new

~‘l~osur-eand

‘~s~

ci osure cost estimates ‘reflectin~ ~rrreñt

prIces

for

the

items incl~dedin the estimate~,

The

oper ator mu st f lire

‘r”ev~ised

eeti mates áen if

the

operator determines

that there

are

no changes

in

62-189

---

—24—

‘SoU~’ce~

Added at Ill. Reg.

_____,

effective

_____

Soction 8O7.~624

Interim

~Formula

for Cost Estimate

a) An operator may

temporarily utilize the formula of

this Section for

preparing a cost estimate instead

ot. preparing a cost estimate

bases on closure and

post-closure care plans., No permit application

filed

after march

1, 1985 may utilize this formula.

Each operator must file an ap~ication to modify

the sit~ ~ermit

to include closure

and

post—

closurn

cars

plans and cost estimates by March 1,

h) F~eferences to

closure and

post—closure

care ~1ans

infinanci:d

assurance instruments shall be construed

to’ refer

to the closure

and

post—clo~ure care require~’

më~ts

of

tho s

Part and the permit for the site.

c; This

formula

may not

be utilized in lieu of tbe

plans

and

cost

estimates required under 35

ni.

Adm, Code 724 and 725.

~)) The ~oliowing

abbreviations and s~hols are

used

in the fo±mula:

I)

AWR:

Annual

waste received at the

site in

~cards,

2~

Ar~

Average depth of the landfill in

feet,

~ Years expected to 1a~sebetween cessation

of application of

cover

by

the operator and

:i~d

emecta’~ion of site~c1ean-upby t~~gen~

\rjsassur~edto be ~hreeye ar s

~ CPA~

C~ost

per acre

of placing final cover,

qradiriq,~ seedii~ç~

and venting. CPA is

assumed

tobe

55000/acre.

5)

A: Area re~iiring final

cover in acres.

P~

Fraction

of final cover expected to re~ire

subsidence

or erosion control each year. P is

assumed.’

to

he 0.05,

‘7~ t4:

i~Thumber

of

monitoring wells existing or

-—

recited in

the permit.

M cannot’be less

fO.~rrr threes

Cost estimate in dollars.

62-190

---

—25--

a)

Area

requiring final cover

I) A(1) is

the

total area which has

received

wast~bet which has not received final cover

in accordance with Section 807.305(c) asof

January 1, 1985.

2~ A(2) is the total area which would require

final

cover after

Y years of uncontrolled

operation according to the following formula:

A(2)

=

(Y)(AWR)

=

3

AWR

3200(AD) 3200 A~

3)

A(3)

=

A(i)

+

A(2)

4)

A( 4)

is the total permitted ~reawh ich has

not received final cover in

accordance

with

Section

807.305(c) as of January 1,

1985

5)

Area

requiring

final cover (A)

is the larger

of A3 or A(4)

f) Cost estimate (‘dollars)

CE

=

(CPA)~A)

+

3((CPA)(P)(A)

+

600(M))

=

5750A

+

1BOOM

~Sourcc:

Added at

til. Req.

,

effective

___________

S~-ction8C,7r

640

Mechanisms for

Financial

Assurance

T.ooera-~

of~~

to~i~r~s~1

site

may utilize any ot

the

fol

~

man~~L~j~

~n an c

1 al assurance for

closure

nn~

r)oCt(’ioC~Jre ~‘ar~’

-

a)

Trust Fund ~Section 307,661)

b)

~ret’Bon~Guarantee~9~, Payment Into Trust

Fund

c) ~ et~

Bond Cu

aranteein

Performance

(Section

~() 7.

663)

d)

Letter

of Credit (Section 807.664);,

e)

Closure Insurance (Section

807.665); or,

f)

Self-insurance (Section

807.666).

(Source:

Added at

Ill.

Rag.

effective

62-191

---

—26—

Section.

807,641

Use of Multiple Financial Mechanisms

An

operator may satisfy the requirements of this Subpart by

establishing

more than one financial mechanism

per

site.

Uhese iT~echanisms

are limited to trust funds, surety “bonds

guaranteeing

payment, letters of credit

and

insurance. The

~i’~echanisms must

be as specified in Sections

807.66l,’807.662,

837,664

and 807,665, respectively,

except that it iá the

combination

of mechanisms, rather

than

the single mechanism,

which

must

provide financial assurance ‘for

an amount at least

ecp,~a1

t,o

the

current cost estiniate.

The operator may use an~

or

al :i

of the

mechani

sms to

provide

for closure and post—’

closure

care

of the site.

(Source:

Added at

—

Ill. Reg.

_____,

effective

-

Section

807.642

Sites

An

operator

may use a financial as~rancemechanism specified

in

this Subpart to meet ‘the requirements

of this Subpart for

more than

one

site.

Evidence

of financial as~rance subr~itted

to

the

Agency must

include a list

showing, for each site,

the name

address and the amount of f~inds asáired b~the

mechanism. The

amount of fund avail able~throuq,hthe

mechanism must

be no less than the sum of ~inds

that ‘would

ho ar~

ailahie if

a separate mechanism

had been established and

maintained

for

each site,

The

am~int

of funds available to

the

Agency

oust

be sufficient to

close and pra~fidé

post-

closure care

for all

bf

the operator’s sites. In dire~ting

~nnds

available

through the mechani~m f6r

closure and ~st-

closure

care

fo~ any of the

sites covered by the mechanism,

thc

;t~ency

may direct only t~ am~nt of

funds designated

for

ah~L:c~ia~unless the operator

agrees to the use of

additional funds

available under the mechanism.

(Source: Added

at

Ill. Reg.

_____,

effective

______________

Section 807,643

Trust Fund

for Unrelated Sites

Any person

may establish a trust fund

for the benefit o~the

Agency which may

receive funds

from

more than one operator

for

closure, of

dififerent

sites.

Such a trust

fund

~ha1l

operate like the

trust

fund specified in Section ~Q7.661,

except

as

fallows~

a)

‘~he

trustee shall maintain a

separate acc~nt for

each site and shall evaluate such annually as of the

day

of

creation of the trust

B)

The

end~the Agency of the evaluation of each operator’s

account;

62-192

---

27—

c)

The

trustee shall release excess funds as required

—

d)

The trustee shall reimburse the operator or other

—

pé~sonauthorized to perform closure or post-closure

care only

from

the account for that site.

e)

The

Agency may direct the trustee to withhold

pa~mentsonly from the account for the site for

which it has reason to believe the cost of

closure and post-closure care will be significantly

greater than tha value

of the account for that site.

(Source: Added at

Ill. ~eg.

_____,

effective

______________

Section 807,644

RCRA financial Assurance

The operator is not required to give financial assurance

a) That closure and post-closure care plans filed

*

pur.sua~t to

3~5 Ill. Adm. Code 724

or 725 will

result

in closure and post-closure care of the

site in accordance with the requirements of this

Parts

and,

B) That

the

operator has provided financial assurance

adequate to

provid~for such closure and post—

closure care pursuant to

35 Iii. Adm. Code 724

or 725.

(Sourcet

Added

at

Ill. Reg.

,

effective

______________)

Section 807.661

Trust Fund

a)

An operator may satisfy the requirements of this

Subpart by establishing a trust fund which co~forms

to the requirements of

this

Section and submitting

an original, signed

duplicate of the trust agreement

to

the

B) The trustee must be an entity which has the

a~uthority

flhtnois commissioner of Banks and Trust

~mpanies; or,

2)

Who

complies,

with the Foreign Corporations

as

Fiduöiaries Act, (Ill. Rev. Stat. 1983,

c~’i. 17, par, 2301 et seq.).

62-193

---

—28—

c) Thein

Appendixtrust

agreementA

and themusttrustbe

onagreementforms specifiedmust

be

accompanied by a formal

certification of

acknow-

d) Payments into the trust:

1) The operator must make a payment

into the

—

2)

The pay-in period is the nu~~e~s

—

remaining u~Ti the

site reaches the sta~~

in its expected operatinq life at which the

cost of premature closure would be the

greatest,

as indicated by its closure plan. Provided,

however, that the pay-in period shall not be

less than three years nor greater than ten years.

3)

Annual payments are determined

formula:

Annual payment

=

where:

CE

=

Current cost estimate

CV

=

Current value of the trust fund

Y

=

Number of years remaining in the

pay in period.

4)

The or~,eratormust make the first_annual

payment prior to the initial receipt

of

waste

for disposal, or prior to r~arch 1, 1~85~fb~

recei~zin waste for disposal prior to

that date,

The operator tiust aiso, prior to

such initial receipt of waste, 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

6~ The 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.

e) The trustee must 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 must notify the operator and the Agency

of the value within 30 days after the

evaluation date.

62-194

---

—29—

f)

Release of excess funds:

1) If the value of the financial a~suranceis

greater than the total amount of the current

cost estimate, the operator may submit a

written request

to the Agency for release from

the trust Lund of

the amount in excess of the

current cost estimate,

2) Within 60

days after receiving a request from

the oerator fo release

of funds, the Agency

will instruct the trustee to release to the

operator such funds as the Agency specifies

in

writing.

ci)

Reimbursement for closure and

post-closure care

expenses:

I)

After initiating closure,

an operator or

any

other

person authorized to perform closure or

2ost—closure care

may request reimliirsement

for closure or post-closure care expenditures

by submitting itemized bills to the Agency.

2)

Within

60 days after receiving bills for

closure

or post-closure care activities, the

will

determine whether the expenditures

a~e in accordance with the closure or

post—

closure care

plan or are otherwise justified,

and if

so, it will instruct

the trustee to make

reimbursement in such amounts

as

the Agency

~cifies in writing.

3) ~~jieAencrha

s reason to

believe that

the

cost of ci osur

e and

post-closure

care will be

significantly,greater than the value of

the

trust

fund, it

may withhold reimbirsement of

such amounts

as

it deems prudent until it deter--

mines that

the

operator

is no longer required

to

maintain

financial assurance for closure

~~jo~-osure

care.

1daarct~,Added

at

Ill,

Reg.

_______,

effective

)

:~tion~07~662 Surety

Bond Guaranteeing Payment

a) An~perator may

satisfy the requirements of this

~bar,~b~obtainin9

asu ret~bond which conforms

to the

~quirements of

this Section and submitting

th~ondtotheAen2~.

B)

The

surety

Company_issuing the bond

must be

licensed

tv~the Iii inois

Depar

tmerit

62-195

---

—30—

c)

The surety

bond

must

be on forms specified in

d)

An~y payments made under the

bond will be placed

in the landfill closure and post-closure fund

within

the State

Treasury.

~J

Condition~j

1) The

bond must ~uar antee

that the operator

will

~,~vide closure

and post-closure care in

~c’crdance

with the closure

and

p~st-c

losure

care~j~~sin the

permit ~

2)

Th~~1~~ill

become liable on the bond

ebL~4

onwen,

during

the

term

of the bond,

t;~n

~or fails

to~rformas~~4

~

~

The operator fails to perform

~heoerator:

A)

Abandons

the siteL

B) ~~4,j~icated

ban

C) Fails to initiate closure of the site

or,,post-closure care when ordered to

do so by the Board or a court of corn-

~j~juri sd ic’tion1or~

D) Notifies

the Agency that it has initiated

closure,

or initiates closure,

but fails

to

close

the site or provide post-closure

care

in accordance with the closure

and

care plans.

f) Penal sum:

1) The~j nal~m

of the bond

rrust be Jn~an,~an~,~

~aste~ito

the current cost estimate.

2)

Whenever the

current cost estimate decreases,

~

enal sum may~

be reduced to the amount o~

the current cost

estimate followiri written

~bAenc.

~j

Term:

1)

The bond

shall

be issued for a term of at

~

fo

ars

and shall not

able

~that

term.

2)

lithe o erator

fails

to

ovide substitute

fin moo ial assurance

62-196

---

—31—

bond, the term

of

the bond shall be

auto-

~~llextèndedforone

twelve:month period

star

tin the

date

of expiration of the

boncL Dunn5 such

extension

the

bond will

not serve as financi

aassurancesatisf~n~

~r~ents

of this Part,and wil1 not

excuse

the

o~rator from the

duty

to provide

subi’ETEite financial

assurance.

h~ ~re of

default and

refunds:

1)

~

no shall release

the surety

if, after

the surety

becomes

liable on the bond, the

~tor

or

another person provides financial

assurance for

cl osure

and

post—cl

osur

ecare

~~site

unless the ~ency

determines

~olano~fleamountof

substituted

financial assurance is~in de~iate

toe

~9~ure~d o -closure care as req~ired by

this

Parts

2)~

Alter closure and

post—closure care have been

~p~~tedina92,ardanee

with the plans and

£~en~of

this ?art’~

the

Agency

shall

~danun~ent

money

whic h was paid to

~g~ncbthesur’ety~.

(Source, Aided at IlL Reg.

_____

effective

____________

Section

807.,663

~y~ondGuaranteein~Performance

a) An operat~~s~isf

the requirements of this

artbob~i~na airet~‘bond

which

conforms

to the.

requirements

of

this~Section and submitting

~enc.’

B) The

surety~~an issuing

the bond

must be

licensed

by the noi,!~~artment

of

Insurance,

c) The suret~ S must

be

on forms specified

in

~dixA~

5) ~ aments made

under

the bcnd will be~placed

in the landfill closure and

po

st-closure fund

within the State Treasury~

e) Conditions:

1),

~

e

rantee that the operator will

~ Se osurnd post-closure care in

accordance with the closure and post-closure

~lahsint~ermit.

The surety shall

62-197

---

—32—

~y~!~~ionofprovidin9closu

re

and post-

closure care

in accordance with the closure

and

pç~~closure care

plans, or of paying the

~m.

2) ~

t

11 become liable on t~ ~

obli ation

when dunn the term of the bond

p~atorai

a o~rormas~iarantee

~j~nd,The

operator fails to ~er form

~theoerator:

A)

Abandons the

sitet

B)

~~jud~cated

bankrupt;

C)

Fails to

initiate

~t—~o~irecarewenorereto

~y~e

Board oracourt of corn-

~jurisdiction;

or~

D) Notifies

the Agency

that

it has initiated

closure,

or initiates closure, but fails

to close

the site or provide post—closure

care in

accordance with the

closure and

post-closure cari plans.

f) Penal

sum:

1) ~_p~,nal sum of the

bond

irni

St be in an

~_j~s~,~alto

the current cost estimate.

2)

Whenever

the

current

cost estimate

decreasesL

~

be reduced to

the amount

of

the

current

cost estimate foUowin~written

~lbtheAenc.

Term:

1)

The bond shall be

issued for a term of at

~e

~thet

term,

2) If the o~~tor

fails to ~provide substitute

Tinancialassuranc& pnibr

to

expirati on of

a bond, the term

of the bond shall be

auto-

~

~

date oe expiration of the

j~rin

such extension

the bond w

not serve

as

financial assurance satisfyin,9~

~~irem~ts

oU~1us Part, and will not

~~h~eratorfromthe

duty to prov I

substitute

financial assurance.

62-198

---

33—

h) Cure

of din

aid

refunds:

1)

The A~ery cball

release the surety if, after

—

the ~ ~ ~y ‘~ecomes

liable on the bond, the

oper~~o

i

another

person provides financial

assurar e’for closure

and post—closure care

of th

c

unless

the Agency determines

that p

c i

on the

amount of substituted

financiu assurance

is inadequate to provide

closure aid post—closure

care

as required by

this Pu

2)

After closur~

and

post-closure care have been

completed

in accordance with the plans and

requirements of

this Part, the Agency shall

refund any unspent

money which was paid to

the Agen~yby the

surety.

i) The

surety w4i r t be

liable far

fi~nc~i~ in

—

the

per5onr~’ ~c in closure by the operator after

the

Agency ei~ccthe

operator from the require-

ments

of th ubp~rt~

(Source~

Mded

at

I

Rej~.

_____,

ef±e~ctive

______________

Section

807,664

L

er f Credit

~) An

operato r ay satisfy

the

~

of this

~übpart b~ob air

hg an

irrevocable standby letter

of

credit wFi

~‘~

~forms to the

requirements of this

Section ar

t

~g

the letter

to the Agency.

B) The issuirg

‘

~,~fititinn

must

be

an entity which has

the

authoni’~’ t ~ ue letters

of credit and:

1)

WI-oc,~. ct

—

bytn ~ I

Comp~

~ii

2) Whos c

Depo~

Say’ rq

c) Forms:

~~credit

operations are regulated

ore Commissioner of Banks and Trust

are

insured by the Federal

ance

Corporation

or the Federal

i

an

Insurance Corporation.

1)

The lett,~rof credit must

be on forms

spec’~in in Appendix A.

2) The Ic ~

letter

of cre~’r

date ~rc

Ii

~redit

must

be accompanied by a

operator

referring to the letter

y rumber,

issuing institution and

~~~iding

the following information:

62-199

---

nace

~ ;~-;c~~

of the

site and the amount of

funds

~‘

~

closure of the site by the

5)

Any amnuriin ~

~‘~:tneAgency pursuant

to the

letter of c~. ‘r

~‘i~

he deposited in the

landfill

closure end

1’~ e~re fund

within the State

Trea

e)

Condition~

-‘~

Agency may draw on the letto

of

crecl’nt:

1)

The ‘~qenc~cv draw

on the letter of credit

if fAa ci~,~c:ortails

to perform closure or

post~

io~x

:one in

accordance with the

ciosu~c ar~

u:~r~closure

care plans.

2)

The ~

draw on

the letter of credit

when

L~ ,,

or:, ~

A) ,inandcc inc site;

~,in~ceted bankrupt

C)

d;,r~

‘~ ,

initiate

closure or post—

~lc:suje

~~nre of

the site when ordered

~

the

Board or a court of

c’on~irainr ~pnisdiction; or

ID)

!‘n~

‘

e Agency that

it has initiated

~‘:r~ :‘:initiates closure, hut fails

in’

:“

i.

- -‘

c’~osure

and post-closure care

with the closure and

post—

rdans~

f )

Anion

ii

1)

~

--“-n

,inc must

be issued in an

n~dto

the current cost

2) ‘WAen~

‘~‘,

.nsnt

cost estimate decreasesF

tin

~ia’

letter of credit may be

-

-‘-‘n

‘o~nt of the

current coi~t

written approval

by the

1)

The

:-~.

,-

‘-

shall be

irrevocable

and s’~

,‘~ ‘ ,,

,,eced

for

a term of at least

four

‘,

200

---

—35—

2:)~ If the

operator

fails to substitute alternate

financial

assurance

prior to expiration of a

letter

of credit,

the term of the letter of

credit

shall

be

automatically extended for

one

twelve-month

period starting with the date

of expiration.

During such extension the

letter

of

credit

will not serve as financial

assurance satisfying the requirements of this

Part,

and

will

not excuse the operator from

the

duty to provide

substitute financial

as en r an

cc.

h) cure of default

and refunds:

i)~ The Agency

shall

release the financial institu-

tion if,

after the

Agency is allowed

to draw

on

the letter of

credit, the

operator or

another person

provides financial assurance

for closure and post-closure care of the site,

unle~ss the

Agency determines

that a plan or

the

amount of substituted financial assurance

is

inadequate

to provide closure and post—

closure care

as

required by this Part.

If

After

closure and

post-closure care have been

completed

in

accordance with the plans and

requirements

of

this

Part, the Agency shall

refund any unspent

money which was paid to

the

Agency by the financial institution.

(dourceg, Added at

—

Ill.

Reg.

-

,

effective

______________)

Section 807.665

Closure Insurance

a) An.

operator

may satisfy the requirements of this

—

Subpart

by obtaining

closure

and post-~closure care

in,sürance which conforms to’the requirements of

this Section

and submitting

an executed duplicate

original of

such insurance

policy to

the Agency,

b~

The

insurer

must

be

licensed to transact the business

of

insurance by the Illinois

Department of Insurance.

C”)

The policy must

be

on forms

approved by the Illinois

Departmen~tof

Insurance.

5) Face amount:

l)r

The closure and post—closure care insurance

policy must

be issued

for a

face amount at

least

equal to the

current cost estimate.

62-201

---

‘-36—

The term “face

amount” means the total amount

the insurer is obligated to pay under the

poliq,y. Actual payments by the insurer will

not change the face amount, although the

insurer’s future liability will be lowered

by the amount of the payments.

2) Whenever the current cost estimate decreases,

—

the face amount of the policy may be reduced

to the current cost

estimate following written

~pnova1

b~ the Agency.

e)

The

clos:’ce

and post—closure care insurance policy

—

must guenontee that funds will beThvailable to

close thu~site

and to provide post-closure care

thereafter. The policy must also ~uarantee that,

once c1o~irebegins, the insurer will be respon’iible

fo±paying out funds,

up to an amount equal to the

face

amount of the

policy, upon the direction of

the Agenc~j to such party or parties as the Agency

specifies. The insurer will

2) The operator is adjudicated bankrupt

3)

The

4) The operator notifies the Agency that it is

—

~nitiating closure; or

5)

Ap,y

person initiates closure with approval of

—

the Agency.

f)

After

initiating closure, an

operator or any other

~ersôn authorized to perform closü dor

post—

cibsure care may ~eguest

reimbursement for closure

and post-closure care expenditures by

submitting

Itemized bills to the Agency. Wfthi~60 days after

receiving bills for closure or post—closure care

activities,

the Agency will -determine whether the

expenditures are ~n accordance with the closure

plan

or

post-closure care plan or otherwise justi-

fied, and if so, will instruct the insurer to make

~-eimbürsement in such amounts as the

Agency

specifies

in writing.

-

If the Agency has reason to believe

that

the cost

of closure and post-closure care will

be significantly greater than the

face amount of

the policy, it may withhold reimbursement of such

amounts as it

deems prudent until it

determines

that~toperátor

is no longer required to maintain

financial

62-202

---

1) The operator shall maintain the policy in full

—

2)

The policy

must provide that the insurer may

not cancel, terminate àr fail to renew the

polic”y

except for failure to pay the premium.

The automatic renewal of the policy must, at

a minimum, provide the insured with the

option

of renewal at the face

amount

o’f~the expiring

pollcy. If there is a

failure to pay the

premium, the insurer may elect to cancel,

?erminate or fail to renew the policy by

sending. notice by certified mail to the operator

and

the Agency. Cancellation, termination or

fàflure to renew ma~not occur, however, during

the 120 days beginhing with the date of

receipt

óf the” notice by both the Agency and the

~erator,~

as evidenced by the return receipts.

Canceilat’±oa,

termination or failure to renew

may

not

occur and the policy will remain in

full force and effict in the event that on or

before’ the date of expiration the premium due

is:

paid..

h) F~a~ch.

policy

must

contain a. provision allowing

a~isigninent

of’the policy to a successor operator.

Sucti asTsignment may be conditional upon consent of

the

insurer,

provided such consent is not unreason—

ably refus”’ed~

(Source: Added at Ill. Reg.

,

effective

_____________

Section

807,666

Self—insurance for Non—commercial Sites

a)

Definitions:

The following terms are used in this

Section. The definitions are intended to assist

in’the understanding of these regulations and are

hot

intended to limit the meanings of terms in a

way that

conflicts with generally accepted account-

ing practices..

‘Assets” means all existing and all probable

future economic” benefits obtained or coñtrolled

a particular entity.

“Current

assets” means cash or other assets or

esourc’es commonly identified as those_which

ii~ereasonably expected to be realized i~ncash

or sold or consumed during the normal operating

62-203

---

—38--

“Current liabilities” means obligations whose

liquidation is reasonably expected to require

the use of existing

resources properly classi-

fiable as current assets or the creation of

“Gross Revenue” means total receipts less

returns and allowances.

“Independently audited” refers

to an audit

perfo±medby an independTent certified public

accountanttn accordance with generally accepted

auditing standards.

“Liabilities” means probable future sacrifices

of econorn±c~benefits arising from present obli-

g~tions to Eransfer assets or provide services

to other erh~ities

in the future as a result of

“Net working capital”ineans current assets

minus current liabilities.

“Net worth”

means total

assets minus total

liabilities and is equivalent to o~ner’s

~quity.

“Tangible net worth” means the tangible assets

that rèmain after deducting liabilities; such

assets

would not include intangibles such as

b) An operator ma~satisfy the financial assurance

—

i-equirements of

this

Part by providing the following:

1)

Bond

without surety

promising to pay the

~ost

estimate

(pa~agraph (c))

2)

Proof that

the

operator meets the’ gross

ievenue test (paragraph (5)).

3)

Proof

that the operator meets the” financial

c) Bond without surety. An operator utilizing self-

—

insurance must provide a bond without surety on

forms provided in Appendix A. The opeiator must

~iomise to pay the current cost estimate

to

the

Agenc~’ unless t’he operator provides closure and

post—closure care in accordance with the closure

62-204

---

—39—

5) Gross revenue test. The operator

must

demonstrate

that less than one-half of its gross revenues are

derived

e) Financial test:

1)

To pass the financial

test the operator must

meet ‘the criteria of either paragraph (e)(l)(A)

A)

i) Two of the following three ratios:

a ratio of total liabilities to net

worth less than 3.0; a ratio of the

sum of net

income

plus depreciation,

,~p1etion

and

amortization to total

liabilities greater than 0.1; or

a ratio of current assets to current

liabilities greater than

1.5;

and

ii) Net working capital

and

tangible net

iii)

iv) Assets in the United States amounting

to at least 90 percent of the operator’s

total assets

and

at least six times

i) A current rating for its most recent

bond issuance of AAA, AA, A or BBB

as issued by Standard and Poor’s or

Aaa, Aa, A or Baa as issued by

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

62-205

---

—40--

2)

To demonstrate that it meets this test,

the

operator must submit the following items to

A) A letter signed by the operator’s chief

financial officer and worded as specified

in Appendix A;

and

B)

A copy of the independent certified p.iblic

accountant’s report on examination of the

~perator’s financial statements for the

latest

completed fiscal year; and

A special report from the operator’s

independent certified p.iblic accountant

i) The accountant has compared the

data which the letter from the

chief financial officer specifies

as having been derived from the

independently audited, year-end,

financial statements for the

latest

fiscal year with the amounts in such

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.

f) Updated

information:

1)

After the initial submission of items specified

in paragraphs (d)

and (e), the operator must

send up~ated information to the Agency within

90 days after the close of each succeeding

fiscal year.

2) If the operator no longer meets the

requirements

of paragraphs (ci)

and (e), the operator

must

send notice to

the Agency of intent to establish

alternate 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 operator no longer

62-206

---

‘—41—

91

~alified

opinion’s.

The Agency may disallow use

o self-insurance “on the

basis of qualifications

in

the opinion expressed by

the independent certified

~b1ic

accountant in his report on examination of the

operator”s financial statemer~’ts. An adverse opinion

or a disclaimer of

opinion will

be cause for dis-

allowance,~ The

Agency

will evaluate other qualifi-

cations on’an individual basis.

Parent corporation~. An operator may satisfy the

financial assu~ánce requirements of t’his Part by

demonstrating that a corporation which owns an

interest in

the

qperator meets the gross revenue

and financial tests’.

The

operator must also’ provide

a

bond

with

the

parent

as surety (Appendix A).

(Sources Added at

—

Ill. Req.

____,

Effective

___________.)

62-207

---

TRUST AGREEMENT

Trust

Fund

Number

Trust

Agreement, the

“Agreement,” entered into as of the

____

day

of

_________________—,

by and between

__________________

the

‘~Grantor,” and __________________________________,

___________________,

‘the “Trustee.”

Whereas, Section 21.1

of the Environmental Protection Act,

~Act”,

prohibits any person from conducting any waste disposal

operation

unless such person has posted with the Illinois

Environmental Protection Agency, “IEPA”, a performanpe bond

or other security for the purpose of insuring closure of

the

site and post-closure care in accordance with the Act and

Illinois Pollution Control Board, “IPCB”, rules.

Whereas,

the

IPCB has established certain regulations appli—

cable to the Grantor, requiring that

an operator of a

waste

disposal site

provide assurance that funds will be available

when needed for

closure and/or post—closure care of the

Whereas,

the Grantor has elected to establish

a trust to

rovide

all

or part of such financial assurance for the

ites

identified

in this agreement.

hhr~reas,

the Grantor,

acting through its duly authorized

cijicers, has selected the Trustee to

be the trustee under

ti’iis

agreement,

arid

the Trustee is willing to act as trustee.

Whereas,

Trustee is an

entity which has authority to act

as

a trustee

and

whose trust operations are regulated by the

Illinois Commissioner of

Banks

& Trust Companies or who complies

with the Foreign Corporations as Fiduciaries Act (Ill.

Rev.

Stat. 1983, ch~ 17, par.

2801, et seq.) (Line through any

condition which

does not apply.)

Now, Therefore, the Grantor and the Trustee agree as follows:

Section 1.

Definitions.

As used in this Agreement:

(a) The term “Grantor” means the operator who enters into

this Agreement

and

any successors or assigns of the

this Agreement and any successor Trustee.

62-208

---

—43—

Section 2,

Identificatjon of Sites and Cost

Estimates.

This Agreement pertains ‘to the sites and cost

estimates

identified on attached Schedule A

(on Schedule

A,

list the

name

and address

and initial cost estimate

of

each site for

which financial assurance is demonstrated by this

agreement).

Section

3~

Establishment ‘of

Fund,

The Grantor and the

Trustee

hereby establis~i 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

agreements

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 Closure and Post-Closure Care.

The Trustee shall

make

payments from the Fund as the IEPA

shall direct,

in

writing,

to provide for the

payment of

the

costs

of closure and/or post—closure care of the sites

covered by ‘this

agreement. The Trustee

shall reimberse the

Grantor

or other persons as specified by the IEPA

from the

Fund for

closure

and

post-closure expenditures in such

amounts

as the

IEPA

shafl

direct in writing.

In

addition,

the

Trustee shall refund to the Grantor such

amounts as the

IEPA specifies in writing,

Upon

refund,

such ftnds 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 securFu

ties acceptable

to the

Trustee.

Section 6~ Trust

Managemer~t.

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,

62-209

---

acting in a like capacity and :~as:~,I.i.arwith suen u~atters,

would

use in the conduct of an sot

:rprise of a liFu character

and

with like aims; except

than..

an Securities an

other obl iqat..rns

of the

Grantor or

any

other owner or

operator c. ~‘na3ite, or

any of

their

affiliates as

defined in ~Ia 1nvestment Company Act of

1940, as mieuded~ 5 U

i~2

(a)1

sralj

hot

ne

acquired or held, unless t~e~ are securities or other

obligations

of

the Federh’Ll p’c\7rarnment or

the State

of

tllinoi

~

a

The Trus’:eu in

anthorizeh ‘.,n navest the Fund ‘a rime or

demand deposits of the Too s’aan

,

to

the

extent insured

by the Federal

Deposit Insu~a’ace Corporation or

federal

Savings & loan Insurance Corporation.

The Trustes.

is

authorized Pa

hold

cash awaiting

invest-

merit or

distribution uninvestod for a

reasonable time

and without liability for ~ ~?aymentof interest.

thereon.

~action

7.

Coerringling

and :1: an. ntnent,

The Trustee is

~c-~aass’1y

author’ sod in its

di su’aet~an

10

transfer .b:om time to ti.~ any

or all of the assets

of the Fund Pc any common1 nemm2ngied

or

collective

trust flind ;:.r-hated ny

tne u~tee

in which the

Fund is

eligible

to earticipate.

~

to all of the provisions

thereof~ an

an

eommino’~an

‘:‘ ~

~ha assets of othe.r

trusts part,.~sparing

than

~a a

to purcnaan

~

an

cia

c

out comparia

neq,~stei, ed

unoer the I:’: asr.ment Con

.

a or

19 40

,i~

a

0

BOa--l

et. san~:, :Lnch.udinp ana. .roh may be create

managed

underwr~ t’;en or ‘a:’ no :h investmenr ~4a

‘ ‘n

a

renderea

or ‘-as s.~ares ci,

‘

: ‘P ~,se

soli

~ ~‘ais a’ :eo.

The Trustee ca vote snot

.-~ ‘~ .‘~

in ,~,ts dsuc’rt a

aection 8.

FPan’ sen Power

‘

‘

‘ can,

Witha’n

,,~

way I imitirig

the-, ~-n~ero and ‘a. a

““‘

cc)ntEar’L al p:

the

:ru

stee

by Pbs ~‘c~an ~ uvi sa a a

‘ ,

~

eon anna:’

“:

~

~

:

an,

che Tru stee

at

e~pressi

eat t~as:,::, a an P empoweru i

a~ To

Sc).

:~ ~

~ a. c mv a’

, -

-i-ar

or otherv~

i.

so

dispose o: an~ ps opent,J

L_Oi

~ :at by :puhi Pu ca -or feats

sale

.

No pe: son deal ian;

~

‘,..,,

,.ne Tru stee

ahal i oe

bound to ~-aan.to rue apaP car

can of the purchase money

or to snap: ira into the

P

,---;

or expedience of any

such salo an other di~:p’ a:’,-

52 2°~

---

—45—

h)

To make, execute, acknowledge and deliver any and all

documents of transfer and conveyance

and

any and all,

other instruments that may be necessary or a’poropri ate

to carry out the powers granted in this aqraar’nan’t~

c)

To

register any securities held in the Fund in

its. can

name or in the name of a nominee and to

hold any

secu--

nity in bearer form or in book entry, or to

combine

certificates

representing such securities with cer-Liii~~~

cates of the same issue held by the Trustee in

other

fiduciary capacities, or to deposit or

arrange for the

deposit of such securities in a

qualified

central

depositary even though, when so deposited1

such secu-~

rities may be merged and held in b~ilk 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 ~

the

United States Government, or ~ny agency or

instrumen—

tality thereof, with a Federal Reserve Bank, hut the

books

and

records of the Trustee shall at all

times

show that all such securities are part of the Fund,

U) To deposit any cash

in the Fund in

interest-hearing

accounts

maintained or savings certificates

issued by

the Trustees in its separate corporate capacity, or

ftc

any other banking institution affiliated with

the

Trustee, to the

extent

insured by the Federal Deposit

Insurance Corporation or Federal Savings & Loan

Insurance Corporation;

and

e)

To comprpmise or otherwise adjust all claims in favor

of

or against the

Fund.

Section 9.

Taxes and

Expenses. All taxes ci

any :kix~P

that may be assessed or levied against or in

respect

of tan

Fund

and all brokerage commissions incurred

by -the Fund

shall be paid from the

Fund.

All other expenses

incurred :,a~’

the

Trustee, to the extent not paid directly by

the Granta:::,

and all other proper charges

and

dis~rsements of the Trustcc,c

shall be paid from the Fund.

Section 10.

Annual Valuation.

The Trustee -shall annually

furnish to the Grantor and to the IEPA a statement

confir~-ninq

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 hoc

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 ILPA shall constitute a conclusively binding

62-211

---

—46—

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

~estion 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

here—

under. Upon

the

successor trustee’s

acceptance of the

appointment, the Trustee shall assign,

transfer and pay over

to

the

successor trustee the funds and properties

then

constituting

the Fund,

If for any reason the Grantor

cannot

or does not act in the event of the resignation of

the

Trustee, the Trustee may apply to a court of competent

jurisdiction for the appointment of a successor

trustee or

tar

instructions.

The successor trustee shall

specify the

date on

which it assumes

administration

of the trust in a

writing sent

to the Grantor, the

IEPA and the

present

Trustee

‘by

certified mail 10 days before such change becomes

efieet:Ive.

Any expenses incurred by the Trustee as a result

of one ci-

the acts contemplated by

this Section shall be

pal-h

as

provided in Section 9.

Section

14.

Instructions to the Trustee.

All orders,

requests and instructions by

the Grantor to

the

‘Trustee

shall be in

writing,

signed by such persons as

are desiq--

nated in the attached Exhibit A

or such other designees as

the

Grantor may designate by amendment to

Exhibit

A,

The

Trustee

shall

be fully protected in acting

without inquiry

in

accordance with the

Grantor’s

orders, requests and instruc~-

tions.

All orders, requests

and

instructions by the

IEPA

to the Trustee shall be in writing, signed by the IEPA

Director or his designees, and the

Trustee shall act and

shall be fully

~otected in acting in accordance with

such

orders, rec~ests

and

instructions. The Trustee

shall 1aa~re

the right to assume, in the absence of

written notice to the

contrary, that no event constituting a change

or a tenirina—

tion of the authority of

any person to act on behalf of the

Grantor or IEPA hereunder

has occurred.

The Trustee shall

62-212

---

—47--

have

no

duty to act in

the absence of such orders, requests

and

instructions from the Grantor and/or IEPA, except as

provided in this agreement.

Section

15. Notice of Nonpayment. The

Trustee shall

notify

the Grantor and the IEPA, by certified mail

within 10

days

following the expiration of the 30—day period after the

anniversary of the establishment

of the Trust,

if no payment

is

received from the Grantor during that period. After the

pay—in period is completed, the Trustee shall not be

required

to

send a notice of nonpayment.

Section 16.

Amendment of Agreement.

This Agreement may

be amended by an instrument in writing executed by the

Grantor, the Trustee and the IEPA Director, or by

the Trustee

and the IEPA Director

if the Grantor ceases to

exist,

Section 17.

Irrevocability

and

Termination, Subject to

the right

of the parties

to

amend this

Agreement

as provided

in Section

16,

this Trust shall be irrevocable and shall

continue until terminated at the written agreement of the

Grantor, the Trustee and the IEPA Director, or by the

Trustee

and

the IEPA,

if the Grantor ceases to exist, Upon

termination of the Trust, all remaining trust property, less

final

trust administration expenses,

shall be delivered to

the Grantor.

Section

18,

Immunity

and

Indemnification.

The Trustee

shall not incur personal liability of any nature in connec—

tion

with

any act or omission, made in good faith, in the

administration of this Trust, or in carrying out any direc~-

Lions

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

1~,

Choice of Law. This Agreement shall he

administered, ccnstrue~ and enforced according to the

laws

of the

State of Illinois.

Section 20.

Interpretation.

As used in this

Aqreement,

words

in the singular include the plural

and words in the

plural include the scingular. The descriptive headings

for

each Section Of this Agreement shall not affect

the inter-~