BEFORE

THE

ILLINOIS

POLLUTION

CONTROL

BOARD

IN THE

MATTER OF:

)

)

SOLID WASTE AND

SPECIAL WASTE

)

HAULING (AMENDMENTS

TO 35 ILL.

)

ADM CODE

PART

807 SUBPART

F,

)

PART

810

AND

PART 811 SUBPART

G)

)

John Therriault,

Assistant

Clerk,

Illinois Pollution

Control Board

James R. Thompson

Center

100W.

Randolph,

Suite 11-500

Chicago, Illinois

60601

Matthew

J.

Dunn

Environmental Bureau

Chief

Office of the

Attorney General

Environmental

Bureau North

69 West

Washington reet,

Suite

1800

)

NOTICE

C-,

Yt

-

ECEDVED

(Rulemaking

— Land)

CLERK’S

OFFICE

JUL’2

72009

STATE

OF

ILLINOIS

Pollution

Control

Board

General

Counsel

Office

of Legal

Counsel

j/)

,‘

Illinois

OneSpringfield,

Natural

Dept.

IllinoisResources

of Natural62702-127

Way

ResOureb

1

/

V

IA

rj

/

Assistant

Counsel

Division

of Legal Counsel

DATE:

7,2y_

9

1021 North Grand

Avenue East

P.O. Box

19276

Springfield, Illinois

62794-9276

(217) 782-5544

PLEASE TAKE

NOTICE that

I have today filed

with the Office

of the Clerk

of

the Illinois Pollution

Control Board the

Illinois

Environmental

Protection

Agency’s

(“Agency”) Motion

for Acceptance,

Appearance

of Attorney,

Motion Regarding

Incorporations by

Reference,

Certification

of Origination,

Statement

of Reasons,

and the

Proposed Amendments

a copy of each

of which

is herewith

served upon you.

ILLINOIS ENVIRONMENTAL

PROTECTION

AGENCY

By:

J4

Ste

anie

Flowers

THIS

FILING

PRINTED ON RECYCLED

PAPER

---

BEFORE

THE

ILLINOIS

POLLUTION

CONTROL

BOARD

INTHE

MATTER

OF:

)

j

0

—

I

)

i8

SOLID

WASTE

AND

SPECIAL

WASTE

)

R8-

HAULING (AMENDMENTS TO 35

ILL.

)

(Rulemaking

-

Land)

ADM.

CODE

PART

807

SUBPART

F,

)

OPIC

PART

810

ANT) PART

811

SUBPART

G)

)

JUL

‘2/

2ü

MOTION

FOR

ACCEPTANCE

NOW

COMES

the

Illinois

Environmental

Protection

Agency

(“Illinois

EPA”),

and

pursuant

to 35

Ill. Adm.

Code

102.106,

102.200,

and

102.202,

moves

the

Illinois

Pollution

Control

Board

(“Board”)

accept

for

hearing

the

Illinois

EPA’s

proposal

for

amendment to 35 Ill.

Adm.

Code

Part

807,

810,

and 811.

This

proposal

includes:

1)

Appearance

of

Attorney

for

the

Illinois

EPA;

2) Motion

Regarding

Incorporations

by

Reference;

3)

Certification

of

Origination;

4)

Statement

of

Reasons;

5) Proposed

Regulations;

6) Electronic

copy

of the

Proposed

Regulations;

and

7) Proof

of

Service.

Respectfully submitted,

ILLINO

S

ENVIRONMENTAL

PROTECTION

AGENCY

By:__________

Douglasq.

Scott

Directoi

DATE:

1021

North

Grand

Avenue

East

P.O.

Box

19276

Springfield,

Illinois

62794-9276

(217)

782-5544

THIS

FILING

PRINTED

ON

RECYCLED

PAPER

---

BEFORE THE ILLINOIS

POLLUTION CONTROL BOARD

IN THE MATTER OF:

)

SOLID WASTE AND SPECIAL WASTE

)

RQ9

HAULING (AMENDMENTS TO 35 ILL. )

(Rulemaking - Land)

ADM. CODE PART 807 SUBPART F,

)

PART 810 AND PART 811 SUBPART

G))

LERKS

C

E

OFFICE

V

E

0

JUL2

72009

APPEARANCE

STATE

OF

lLLINO1

POIIUtIO

Control

Board

The

undersigned hereby enters

her appearance as attorney

on behalf of the Illinois

Environmental Protection Agency.

Respectfully

submitted,

ILLINOIS ENVIRONMENTAL

PROTECTION

AGENCY

By:/11L

uô

Stephanie

Flowers

Assistant Counsel

Division

of Legal Counsel

DATED:

1021 North Grand Avenue East

P.O. Box 19276

Springfield,

Illinois 62794-9276

(217)

782-5544

---

BEFORE

THE

ILLINOIS

POLLUTION

CONTROL

BOARD

IN

THE MATTER

OF:

SOLID

WASTE

AND

SPECIAL

WASTE

HAULING

(AMENDMENTS

TO 35 ILL.

ADM.

CODE PART

807 SUBPART

F,

PART

810 AND

PART

811

SUBPART

G)

DATE:

1021

North

Grand

Avenue

East

P.O. Box

19276

Springfield,

IL

62794-9276

(217)

782-5544

Respectfully

submitted,

ILUNOIS

ENVIRONMENTAL

PROTTON

G

By:

Stepcianie

owers

Assistant

Counsel

Division

of

Legal

Counsel

)

)

)

)

)

)

)

ii

‘U

R9-

(Rulemaking

— Land)

ECEVED

CLERK’S

OFFICE

JUL

27

2009

STATE

OF

ILLINOIS

Pollution

Control

Board

MOTION

REGARDING

INCORPORATIONS

BY

REFERENCE

NOW

COMES

the

Illinois Environmental

Protection

Agency

(“Agency”)

and

moves

the

Illinois

Pollution

Control Board

(“Board”)

to

waive

the requirement

set

forth at 35

Iii. Adm.

Code

102.202(d)

and

101.306(a)

that

4

copies

of material

to

be incorporated

by reference

be

submitted

with

this

regulatory

proposal

with

regard

to the material

listed

below.

In support

of

this Motion,

the

Agency states:

1.

The

Agency proposal

would

incorporate

a

2-volume

AICPA

Professional

Standards

and

a

2-volume

FASB

Accounting

Standards.

2.

The Agency

has included

one copy

of each

item

with

this

submittal;

3.

Given

the

current

fiscal

situation

of the

State,

copy

costs

for

multiple copies

would

be

unwarranted.

THEREFORE,

the Agency

moves

the

Board

to waive

the submittal

requirement

for the

materials

incorporated

by

reference.

---

BEFORE

THE ILLINOIS POLLUTION

CONTROL

BOARD

CLERK’S

E

C

E

OFFICE

V

E

D

IN

THE

MATTER OF:

)

272009

)

o

STATE

OF

ILUNOIS

SOLID

WASTE AND SPECIAL WASTE

)

R09

POlIti

Control

Board

HAULING (AMENDMENTS TO 35 ILL.

)

(Rulemaking - Land)

ADM.

CODE PART 807 SUBPART F,

)

PART 81OANDPART 811 SUBPARTG)

)

I

I

IVt

I

CERTIFICATION

OF ORIGINATION

NOW

COMES the Illinois Environmental

Protection Agency

and pursuant to

35 Ill.

Adm.

Code 102.202(i) certifies that this proposal for

amendments

to 35 Ill. Adm. Code

Part 807

Subpart F, Part 810, and Part 811 Subpart

G

amends

the

most recent

version of those rules

as

published on the Illinois Pollution Control Board’s

website.

Respectfully

submitted,

ILLINOIS

ENVIRONMENTAL

Step anie

lowers

Assistant Counsel

Division

of Legal Counsel

DATED:

1021 North Grand Avenue East

P.O. Box 19276

Springfield,

Illinois

62794-9276

(217)

782-5544

---

BEFORE

THE

ILLINOIS

POLLUTION

CONTROL

BOARD

iN

THE

MATTER

OF:

SOLID

WASTE

AND

SPECIAL

WASTE

)

PJ

of

HAULiNG (AMENDMENTS

TO

35

ILL.

)

(Rulemaking

-

Land)

ADM.

CODE

PART

807

SUBPART

F,

)

PART

810

AND

PART

811

SUBPART

G)

)

CLfiIs

STATEMENT

OF

REASONS

272009

Pf’b01s

NOW

COMES the

Illinois Environmental

Protection

Agency

(“Illinois

EPA’S

antd

submits

its

Statement

of

Reasons

for

the

above-captioned

proceeding

to

the

Illinois

Pollution

Control Board

(“Board”)

pursuant to

35 Ill.

Adm.

Code

102.202(b).

I.

FACTS

IN

SUPPORT,

PURPOSE

AND

EFFECT

A.

Background

The

Board adopted

the

financial

assurance

rules

in

35

Iii. Adm.

Code

807,

Subpart

F

in

its

final

order

for

R84-22C

issued

on

November

21,

1985

and

for

35

Iii.

Adm.

Code

811,

Subpart

G

in

its

final

order

for

R88-7

issued

on

August

17,

1990.

The

financial

assurance

rules

have

remained substantially

unchanged

since

these

dates

with

three

identical

in

substance

rulemakings

adding

to

Subpart

G

of

Part

811.

These

identical

in

substance

rulemakings

were

the

R93-10

final

order

issued December

16,

1993,

the

R97-20

final

order

issued

November

20,

1997,

and

the

R99-1

final

order

issued

February 4,

1999.

The

rules

were

promulgated

pursuant

to

Section

21.1(b)

of

the

Environmental

Protection

Act

(“Act”).

(415

ILCS

5/21.1(b)

as

added

by

P.A.

83-

775)

The

purpose

of

the

financial

assutance

rules

is

to establish

requirements

for

performance

bonds

and

other

securities

insuring

closure

and

post-closure

care

and

corrective

action

at

non-

Page

1

---

hazardous

waste

disposal

sites

and

to prescribe

the

conditions

under

which

the State

of

Illinois

is

entitled

to collect

monies

from these

instruments.

The proposed

amendments

to Parts

807 and

811

were

developed

by an Illinois

EPA

workgroup

consisting

of legal staff

and

staff of the

compliance

unit

at

the Bureau

of Land.

On

December

14, 2004,

the preliminary

draft

was circulated

to

several

solid

waste

associations

and

banking and

financial

associations

to

receive comments

from

their

members

regarding

the

impact

of the changes

on

the

solid waste

industry.’

The Illinois

EPA

received

three comments,

one

of

which was

simply

supportive

of

the proposed

changes.

2

The

second comment

suggested

some

alternate

language

and identified

some

increased

costs

to letters

of

credit associated

with

the

proposed

changes.

The

Illinois EPA

did

not

changed

the

language

as suggested

in

the

second

comment

as the

changes

suggested

were not

substantive

and because

the Illinois

EPA

believes

the language

should

be consistent

with the

Board’s other

financial

assurance

programs.

The

third comment

stated

that an increase

in

the

availability

of surety

bonds

should result

from

the

proposed

changes.

Since

the

circulation

of the

draft

to the outreach

associations,

the

Illinois

EPA

has added

some

additional

language

taken

from

the financial

assurance

sections

of 35

Ill.

Adm.

Code 724.

Overall,

the

Illinois

EPA does

not

anticipate

any significant

controversy

regarding

the

proposed

amendments.

B.

Purpose

and

Facts in Support

The main

purpose

of

the amendments

proposed

to Parts

807

and

811

is to provide

consistency

throughout

the

Board’s

financial

assurance

programs by

adding evergreen

renewal

‘The following

associations

were

included

in the outreach

effort

by the Illinois

EPA:

Illinois

Bankers

Association,

Community

Bankers Association

of

Illinois, Illinois

League

of

Financial Institutions,

Illinois

Counties

Solid

Waste

Management

Association,

Solid

Waste Association

of North

America, Waste

Management,

Allied

Waste,

and

National

Solid Wastes

Management

Association.

2

See

attached

Exhibits

1-3 for the

three comment

letters

received

by

the Illinois

EPA.

Page

2

---

language

to the bonds

and

letters

of credit

obtained

by

waste

disposal

sites

and

reducing

the

required

term

of

these

instruments

to one

year

or

more from

the

current

minimum

of four

or

five

years.

The

Board’s

other

financial

assurance

programs

regulated

in

Parts

724, 725,

704

and

848

incorporate

the evergreen

renewal

language

and

one-year

term limits

into

bonds

and/or

letters

of

credit

and

are

the

model

for the

changes

to Parts

807

and 811.

Tn

addition,

Part

810

is

being

opened

for

the

sole

purpose

of

updating

an incorporation

by

reference

in

Section

810.104(a)(2)

that

is referred

to

in

Section

811.715.

The text

at Section

810.104(a)(2)

was

adopted

by

the

Board

in their

final

order

for R88-7

issued

on

August

17,

1990.

Although

Part

810 has

been

expanded

since

this

original

adoption,

the

reference

at

Section

810.1

04(a)(2)

has not

been

updated.

Numerous

other

stylistic

changes

and

updates

are

also

proposed

for

Parts

807

and

811.

Besides

providing

consistency

among

the

Board’s

financial

assurance

programs,

the

addition

of evergreen

renewal

language

would

also

shift responsibility

and costs

for

maintaining

continuous

financial

assurance

from

the Illinois

EPA to

owners,

operators,

and sureties,

and

thereby

protect

the public,

environment

and the

State

against

an expiration

of coverage

that

could

leave

a landfill

without

funds

for

closure

and

post-closure

care

or

corrective

action.

Currently,

under

Parts

807

and

811,

if a bond

or

letter

of

credit is

not renewed

at

the

expiration

of a four

or

five

year

term,

the

bond

or letter

of

credit

will

expire

unless

the

Illinois

EPA acts

to

preserve

it.

The

existing

regulations

provide

for an

automatic

extension

of the

financial

assurance

for

an

additional

twelve

months

but

only

if the

Illinois

EPA

provides

notice

to

the

issuing

institution

within

30 days

after expiration

of

the instrument.

This

imposes

additional

administrative

responsibility

and

costs

on

the

Illinois

EPA

for

tracking

and notification

and

is

inconsistent

with

the

Board’s

other

financial

assurance

programs.

Under

the

Board’s

other

financial

assurance

Page

3

---

programs

at

Parts

724, 725,

704

and 848

the

responsibility

and

costs

for ensuring

continuous

financial

assurance

coverage

fall on the

facility

owners,

operators

and

the sureties.

Also,

under

Parts

807

and

811

there

is currently

no authority

for

the Illinois

EPA

to

draw

on existing

bonds

or

letters

of credit

to prevent

a

lapse in

financial

assurance

coverage.

The

Illinois

EPA

is only

able to

draw on

the instrument

if the

owner/operator

has

abandoned

the

site,

is adjudicated

bankrupt,

fails

to initiate

closure

or

post-closure

care

or

corrective

action

when

ordered

to do

so by

the

Board

or the

courts,

or fails

to perform

closure,

post-closure

or

corrective

action

in

accordance

with

applicable

requirements.

See

subsection

(e)(2)

of 35

Ill. Adm.

Code

807.662-664

and

811.711-713.

If the

instrument

already

has

expired

before

these

circumstances

arise,

resources

may not

be available

to conduct

the

necessary

closure,

post-closure

or

corrective

action.

With

the

proposed

amendments,

the

Illinois

EPA would

be

required

to

draw

on the

bond

or letter

of credit

before

the expiration

date

if the

owner

or operator

does

not

provide

substitute

financial

assurance

prior to

the expiration

date. In

other

words,

the

approaching

lapse

of

the

instrument

itself

becomes

a

reason

for demanding

payment

of

the

penal

sum

unless

alternate

financial

assurance

is obtained

before

expiration

of

the

bond.

This

is

consistent

with

the

requirements

of

the

Board’s

other

financial

assurance

programs.

In

addition,

the

amendments

propose

a one-year

minimum

term

limit

that is

consistent

with

the

Board’s

other

financial

assurance

rules.

This change

in

term

requirements

from

four

or

five

years

to one

year

should

result

in an increase

in

the

availability

of

bonds

and letters

of credit

as

a financial

assurance

option.

Please

see the

attached

comments

from

Michael

Damewood

of

St. Paul

Travelers

regarding

the

benefits

of one

year

term

limits.

Page

4

---

C.

Affected

Sources

and

Facilities

Affected

sources

and facilities

would

include

those

sources

and

facilities

required

to

obtain

financial

assurance

for

the

closure

and

post

closure

care

of

waste

disposal

sites and

any

sources

and

facilities

that provide

financial

assurance

services

for

waste

disposal

sites.

D. Technical

Feasibility

and

Economic

Reasonableness

No new

technical

requirements

are

created

by the

proposed

amendments.

Economic

costs

to

the State

of Illinois

due to the

amendments

are minimal

and

may

include

updated

forms

and

employee

procedural

training.

For economic

costs to

the regulated

community

due

to

the

amendments

please

see

the attached

comments

regarding

increased

costs

for

letters

of

credit

with

proposed

evergreen

renewal

language

and

also

the greater

availability

of

bonds

with

one-year

term

limits.

E. Description

of Proposed

Amendments

Please

see

attached

table

providing

an

explanation

for each

amendment

proposed.

Page 5

---

II.

SYNOPSIS

OF

TESTIMONY

Currently,

the

Illinois

EPA

plans

to

call

Brian

White,

Manager

of the

Compliance

Unit

of

the

Bureau

of

Land.

Mr.

White

will testify

about the

amendments

to

the

rules and

will

assist

in

answering

questions.

Written

testimony

will

be

submitted

prior

to

hearing

in accordance

with

the

Board’s

procedural

rules.

III.

PUBLISHED

STUDY

OR

RESEARCH

REPORT

No

published

study

or

research

report

was

used

in developing the

proposed

amendments

to

35 Ill. Admin.

Code

807,

810, and

811.

IV.

SUPPORTING

DOCUMENTS

Exhibit

1: Comments

of

Jay

Stevenson

of

the Illinois

League

of

Financial

Institutions.

Exhibit

2:

Comments

of

Bruce

Baker

of

the

Illinois

Bankers

Association.

Exhibit

3:

Comments

of

Michael

Damewood

of

St Paul

Travelers.

Respectfully

submitted,

ILLINOIS

ENVIRONMENTAL

PROTECTION

AGENCY

éphanie

Flowers

Assistant

Counsel

Division

of

Legal

Counsel

DATED:

7?J

-

1021

North Grand

Avenue

East

P.O.

Box

19276

Springfield,

Illinois

62794-9276

(217)

782-5544

Page

6

---

E.

Description

of

Proposed

Amendments

Page

1

1)

Table

of

Contents

Table

of

Contents

Revision:

Capitalized

the

second

element

in

the

Applies

also

to

Sections

811.715

and

Section

811.715

Section

807.666

hyphenated

compound

of

the

title.

807.666

in

body

of

rule.

2)

Table

of

Contents

Revision:

Added

language

so

illustrations

are

Illustration

G

&

H

consistent

with

body

of

rules.

3)

Table

of

Contents

Note

Correction:

Replace

statutory

language

format.

4)

811.700(b)

807.600(b)

Update:

“May”

is

stricken

and

replaced

by

Applies

also

to

Sections

811.706(a),

“shall”

to

indicate

obligation

rather

than

807.640,

811.713(e),

and

807.664(e).

discretion

as

per

the

Illinois

Administrative

Code

Style

Manual

Section

1-21(f).

5)

811.700(e)

Revision:

Definition

of

“assumed

closure

date”

is

revised

to

more

accurately

describe

this

term.

6)

811.700(f)

Correction:

Language

replaced

to

correct

the

Illinois

Environmental

Protection

Act

reference

under

which

an

MSWLF

unit

is

required

to

obtain

a

permit.

7)

811.703(c)

Correction:

Replaced

language

to

provide

reference

to

correct

section

of

the

Act.

8)

811.704(g)

Revision:

This

section

is

removed

because

the

cost

estimate

is

not

reduced

by

any

present

value

calculation

since

no

interest

accrues

in

any

financial

assurance

mechanism

except

a

trust.

For

trusts

see

Section

8

11.718.

9)

811

.704(k)(3)

Correction:

Language

replaced

to

correct

the

reference

copied

from

40

CFR

258.73(a)(2).

10)

811.706(a)

807.640

See

(4)

11)

811.71

0(b)(l)

807.661

(b)(l)

Update:

“Illinois

Commissioner

of

Banks

and

Applies

also

to

Sections

811.7

13(b)(l),

Trust

Companies”

is

replaced

with

“Department

807.664(b)(I),

811

Illustration

A

¶6,

of

Financial

and

Professional

Regulation”

per

807

Illustration

A

¶6,

the

change

of

name

in

Executive

Order

2004-6

811

Illustration

E

¶1,

and

15

ILCS

520/0.01

et

seq.

as

amended

by

and

807

Illustration

E

¶1.

Public

Act

89-5

08.

12)

807.661(b)(2)

Update:

“Foreign

Corporations

as

Fiduciaries

Applies

also

to

807

Illlustration

A

¶6.

Act”

is

replaced

with

“Corporate

Fiduciary

Act”

as

in

Part

811

due

to

repeal

of

former.

13)

811.71

0(b)(1)

&

(2)

Update:

Past

citation

reference

is

stricken.

Applies

also

to

811

Illustration

A

¶6,

811

Illustration

E

¶2.2,

and

807

Illustration

E

¶2.2.

---

E.

Description

of

Proposed

Amendments

Page

2

14)

811.710(c)

807.661(c)

Substantive

change:

Add

language

to

require

Schedule

A

of

trust

agreement

to

be

updated

to

current

closure

estimate.

Language

from

35

Ill.

Adm.

Code

724.243(a)(2)

15)

811.71

0(d)(1

)(B)

Revision:

The

definition

of

pay-in

period

is

revised

to

more

accurately

describe

this

term.

16)

811.71

0(g)(2)

Correction:

Added

mistakenly

omitted

language

“to

release”

so

that

paragraph

parallels

807.66

1(f)(2).

17)

811.711(b)

807.662(b)

Update:

“Department

of

Insurance”

is

replaced

Applies

also

to

Sections

811.712(b),

with

“Department

of

Financial

and

Professional

807.663(b),

811.714(b),

807.665(b),

Regulation”

perthe

change

of

name

in

Executive

811.714(c),

8

07.665(c),

Order

2004-6.

811

Illustration

C

¶4,

807

Illustration

C

¶4,

811

Illustration

D

¶4,

807

Illustration

D

¶4,

811

Illustration

F

¶1,

and

807

Illustration

F

¶1.

18)

807.662(b)

Substantive

change:

Add

language

allowing

for

an

excess

or

surplus

lines

insurer

approved

by

the

insurance

department

of

one

or

more

states

as

in

811.711(b).

19)

811.711(b)

Update:

All

caps

statutory

language

replaced

Applies

also

to

Sections

811.712(b)

with

italicized

statutory

language

per

the

Illinois

and

811.714(b).

Administrative

Code

Style

Manual

Section

1-

14(a)(2).

20)

811.711(b)

Correction:

Duplicate

reference

Applies

also

to

Sections

811.712(b)

stricken,

and

811.714(b).

21)

811.711(c)

Correction:

Language

is

stricken

to

only

Applies

also

to

Section

811.712(c).

reference

the

proper

illustration.

22)

811.711(d)

807.662(d)

Correction:

Landfill

Closure

and

Post-Closure

Also

applies

to

Sections

811.711

(h)(2),

Fund

is

capitalized

and

hyphenated

properly

811.712(d),

8

07.663(d),

811.7

12(h)(2),

according

to

the

fund

name

at

21.1(c)

of

the

811.713(d),

807.664(d),

811.71

3(h)(2),

Illinois

Environmental

Protection

Act

and

30

811

Illustration

C

¶7,

ILCS

105/5.382.

807

Illustration

C7,

811

Illustration

D

¶7,

807

Illustration

D

¶7,

811

Illustration

E

¶4,

807

Illustration

E

¶4.

811

Illustration

H

¶7,

and

807

Illustration

H

¶7.

---

E.

Description

of

Proposed

Amendments

Page

3

23)

811.71

l(e)(l)

807.662(e)(l)

Revision:

Forbetterreading

flow

the

sentence

Also

applies

toSections

81

l.712(e)(l)

was

divided

into

two

requirements

and

in

and

807.663(e)(l).

811.711

(e)(l

)(A)

the

corrective

action

language

was

revised.

24)

811.711

(e)(

I

)(B)

807.662(e)(l

)(B)

Substantive

Change:

The

bond

will

now

need

to

Also

applies

to

Sections

guarantee

that

in

addition

to

providing

closure

811.7

12(e)(1)(B)

and

post-closure

care

and

corrective

action,

the

and

807.663(e)(1)(B).

owner

or

operator

will

provide

alternative

financial

assurance

if

the

current

financial

assurance

is

not

renewed.

The

language

is

from

35

III.

Adm.

Code

724.243(b)(4)(C)

with

minor

adjustments:

“notice

of

cancellation”

replaced

by

“notice

that

the

bond

will

not

be

renewed

for

another

term”.

Also,

Part

807

uses

“alternate

financial

assurance”

and

Part

811

uses

“alternative

fmancial

assurance”

for

consistency

of

terms

throughout

the

entire

Part.

Other

sources:

35

Ill.

Adm.

Code

725.243(b),

704.215,

and

704.2

16.

25)

811.711

(e)(2)(C)

Correction:

“Title

VII”

is

stricken

and

replaced

Also

applies

to

Sections

with

“Title

VIII”

to

accurately

reference

the

811.71

2(e)(2)(C)

enforcement

section

of

the

Illinois

and

81

I.713(e)(2)©.

Environmental

Protection

Act.

26)

811.711

(e)(2)(F)

807.662(e)(2)(E)

Substantive

Change:

The

Illinois

EPA

will

now

Applies

also

to

Sections

be

required

to

collect

on

the

bond

or

letter

of

811.71

2(e)(2)(F),

credit

if

alternate

financial

assurance

is

not

81

l.713(e)(2)(F),

807.663(e)(2)(E),

provided

before

the

expiration

of

the

current

and

807.664(e)(2)(E).

financial

assurance.

27)

811.711(0(2)

807.662(0(2)

Correction:

Replaced

language

to

specif5

that

a

Applies

also

to

Sections

811.712(0(2),

reduction

of

the

cost

estimate

must

be

approved

811.713(0(2),

811.7

14(d)(2),

in

writing.

Language

from

last

sentence

of

35

807.663(0(2),

807.664(0(2),

Ill.

Adm.

Code

724.243(b)(7).

Other

sources:

35

and

807.665(d)(2).

Ill.

Adm.

Code

725.243(b),

725.243(c),

704.2

15,

704.216,

and

704.217.

28)

811.711(0(3)

807.662(0(3)

Reiteration:

Repeated

requirement

of

Applies

also

to

Sections

811.712(0(3),

807.621

(b)and

811.704(b)

for

when

cost

811.713(0(3),

811.7

l4(d)(3),

estimate

increases

and

added

timeframe

of

90

807.663(0(3),

807.664(0(3),

days.

Language

from

35

Ill.

Adm.

Code

and

807.665(d)(3).

724.243(b)(7)

with

minor

adjustment.

Other

sources:

35

Ill.

Adm.

Code

725.243(b),

725.243(c),

704.2

15,

704.2

16,

and

704.217.

---

E.

Description

of

Proposed

Amendments

Page

4

29)

811.71

1(g)(l)

807.662(g)(l)

Substantive

Change:

The

term

of

the

bond

or

Applies

also

to

Sections

81

1.7l2(g)(1),

letter

of

credit

can

be

one

year

or

more.

811

.713(g)(1),

807.663(g)(1),

Language

from

35

Ill.

Adm.

Code

724.243(d)(5).

and

807.664(g)(1).

Other

sources:

35111.

Adm.

725.243(c),

704.2

17

and

848.413.

30)

811.71

1(g)(2)

807.662(g)(2)

Applies

also

to

Sections

81

1.7l2(g)(2),

Substantive

Change:

The

bond

or

letter

of

credit

811

.713(g)(2),

807.663(g)(2),

will

now

be

renewed

every

term

unless

the

and

807.664(g)(2).

or

surety

notifies

the

owner

and

operator

and

the

Illinois

EPA

that

it

intends

not

to

renew.

Evergreen

renewal

language

from

35

Ill.

Adm.

Code

724.243(d)(5).

Other

sources:

35

Ill.

Adm.

Code

725.243(b),

725.243(c),

704.215,

704.216,704.217,

and

848.413.

31)

811.711

(g)(3)

807.662(g)(3)

Reiteration:

Repeated

requirement

of

807.604

Applies

also

to

Sections

811.71

2(g)(3),

and

811.702.

Language

from

35

Iii.

Adm.

Code

81

1.713(g)(3),

807.663(g)(3),

724.243(c)(9)

with

minor

adjustments:

“written

and

807.664(g)(3).

authorization

for

termination

of

the

bond”

is

language

from

illustrations.

Other

sources:

35

Ill.

Adm.

Code

725.243(b),

725.243(c),

704.2

15,

704.216,

and

704.217.

32)

811.711

(g)(3)

Correction:

Duplicate

passage

stricken.

33)

8l1.711(h)(2)

See

(22)

34)

811.711

(h)(2)

807.662(h)(2)

Revision:

Added

language

to

clari’

refunds

are

Applies

also

to

Sections

811.71

2(h)(2),

conditional.

81

1.7l3(h)(2),

807.663(h)(2),

and

807.664(h)(2).

35)

811.712(b)

807.663(b)

See

(17)

36)

807.663(b)

Substantive

change:

Add

language

allowing

for

an

excess

or

surplus

lines

insurer

approved

by

the

insurance

department

of

one

or

more

states

as

in

811.712(b).

37)

811.712(b)

See(19)

38)

811.712(b)

See(20)

39)

811.712(c)

See(2l)

40)

811.712(d)

807.663(d)

See

(22)

41)

811.71

2(e)(l)

807.663(e)(l)

See

(23)

and

Revision:

The

last

sentence

of

the

Applies

also

to

Sections

811.7

12(e)(3)

new

(e)(1)(A)

was

moved

to

(e)(3)

of

811.712

and

807.663(e)(3).

and

807.663

for

better

reading

flow.

42)

81

1.712(e)(1)(B)

807.663(e)(l)(B)

See

(24)

43)

81

1.712(e)(2)(C)

See

(25)

---

E.

Description

of

Proposed

Amendments

Page

5

44)

81

1.712(e)(2)(F)

807.663(e)(2)1E)

See

(26)

45)

811.712(e)(3)

807.663(e)(3)

See

(41)

46)

811.712(f)(2)

807.663(f1(2)

See

(27)

47)

811.7

12(f)(3)

807.663(f)(3)

See

(28)

48)

811

.712(g)(1)

807.663(g)(1)

See

(29)

49)

81

1.712(g)(2)

807.663(g)(2)

See

(30)

50)

811.712(g)(3)

807.663(g)(3)

See(31)

51)

811.712(h)(2)

See(22)

52)

811.712(h)(2)

807.663(h)(2)

See

(34)

53)

811

.713(b)(1)

807.6641b)(1)

See

(11)

54)

81

1.71

3(b)(2)

807.664(b)(2)

Update:

‘or

the

Federal

Savings

and

Loan

Applies

also

to

Insurance

Corporation’

is

stricken

per

merger

of

807

Illustration

A

Section

6(b),

FSLIC

and

FDIC

in

12

U.S.C.A.

1811

et

seq.

as

807

Illustration

A

Section

8(d),

amended

by

Public

Law

101-73.

and

807

Illustration

E

¶1.

55)

811.713(d)

807.664(d)

See

(22)

56)

811.713(e)

807.664(e)

See(4)

57)

811.713(e)(2)(C)

See

(25)

58)

811.7

13(e)(2)(F)

807.664(e)(2)(E)

See

(26)

59)

811.7

13(f)(2)

807.664(f)(2)

See

(27)

60)

811.7l3(f)(3)

807.664(0(3)

See(28)

61)

811.7

13(g)(I)

807.664(g)(l)

See

(29)

62)

81l.7l3(g)(2)

807.664(g)(2)

See

(30)

63)

81l.713(g)(3)

807.664(g)(3)

See

(31)

64)

811.713(h)(2)

See

(22)

65)

811.71

3(h)(2)

807.664(h)(2)

See

(34)

66)

811.714(a)

807.665(a)

Correction:

Added

language

speciflying

that

a

certificate

of

insurance

(Illustration

F)

must

be

submitted

to

the

Agency

in

addition

to

an

insurance

policy.

67)

811.714(b)

807.665(b)

See(17)

68)

811.714(b)

See(19)

69)

811.714(b)

See(20)

70)

807.665(b)

Substantive

change:

Add

language

allowing

for

an

excess

or

surplus

lines

insurer

approved

by

the

insurance

department

of

one

or

more

states

as

in

811.714(b).

71)

811.714(c)

807.665(c)

See

(17)

and

Correction:

Substitute

language

‘filed

with”

because

no

approval

is

given

by

the

Insurance

Division.

Revision:

Added

citation

reference.

---

E.

Description

of

Proposed

Amendments

Page

6

72)

811.714(d)(2)

807.665(d)(2)

See

(27)

73)

81

1.714(d)(3)

807.665(d)(3)

See

(28)

74)

811.715

807.666

See(1)

75)

807.666(a)

Update:

Definition

of

Generally

Accepted

Accounting

Principles”

is

updated

by

adding

edition,

publisher

name

and

address

to

meet

requirement

of

5

ILCS

100/5-75.

76)

811.71

5(e)(1)(AXiv)

Correction:

Duplicate

word

is

stricken

and

is

added

for

correct

grammar.

77)

81

l.715(h)(l)

807.666(h)(l)

Correction:

“Which’

is

replaced

with

“that”

as

a

Applies

also

to

811

Illustration

A

¶6,

grammar

correction.

807

Illustration

A

¶6,

811

Illustration

E

¶1,

and

807

Illustration

E

¶1.

78)

811.715(h)

807.666(h)

Revision:

The

sentence

was

divided

into

two

requirements.

In

the

new

(h)(l)

the

language

“gross

revenue

and

financial

tests”

was

replaced

with

“the

requirements

of

this

Section”

to

also

reference

the

requirements

of

subsections

(f)

and

(g).

At

the

new

(h)(2)

the

language

“on

a

form

specified

in

Appendix

A,

Illustration

H”

was

added

to

direct

the

reader

to

the

correct

form

in

Appendix

A.

The

language

“in

accordance

with

subsections

(d),

(e),

(f),

and

(g)”

was

added

to

give

authority

for

language

used

in

Illustration

H.

79)

81

1.716(c)(1)(A)(iii)

Correction:

“(f)(4)”

is

replaced

with

“(d)’

to

correct

the

reference

copied

from

40

CFR

258.74(f)(3)(A)(3).

80)

811.71

6(c)(5)

Substantive

Change:

Add

requirement

to

submit

evidence

of

alternative

financial

assurance

to

the

Agency.

81)

811.718

Revision:

Clarification

that

availability

of

discounting

is

limited

to

trust

mechanism

because

no

interest

accures

in

mechanisms

other

than

a

trust.

82)

811

Illustration

A

¶

6

807

Illustration

A

¶

6

See

(11)

83)

807

Illustration

A

¶

6

See

(12)

84)

811

Illustration

A

¶

6

See

(13)

85)

811

Illustration

A

¶

6

807

Illustration

A

¶

6

See

(77)

---

E.

Description

of

Proposed

Amendments

Page

7

86)

811

IllustrationA

Sec.

2

807

Illustration

A

Section

2

Substantive

change:

Change

‘initial’

to

“current’.

Schedule

A

of

trust

agreement

must

be

updated

to

current

cost

estimate.

See

(14)

87)

807

Illustration

A

Section

6(b)

See

(54)

88)

807

Illustration

A

Section

8(d)

See

(54)

89)

807

Illustration

A

Section

14

Correction:

Correct

phrase

‘Director

or

his/her

designee(s)’.

90)

807

Illustration

A

Section

16-18

Substantive

change:

Add

language

to

allow

Director

to

appoint

designee

to

carry

out

duties

of

the

Trust

Agreement.

91)

807

Illustration

A

Section

17

Correction:

Insert

‘Director’.

92)

811

Illustration

A

Section

10

Correction:

Insert

“be”

for

correct

grammar.

93)

811

Illustration

A

Section

14

Correction:

Correct

phrase

“Director

or

his/her

designee(s)’.

94)

811

Illustration

A

Section

16

Correction:

Correct

“is”

to

“if’.

95)

811

Illustration

A

Section

16-18

Substantive

change:

Add

language

to

allow

Director

to

appoint

designee

to

carry

Out

duties

of

the

Trust

Agreement.

96)

811

Illustration

A

Section

17

Correction:

Insert

“Director”

after

“IEPA’.

97)

811

Illustration

A

807

Illustration

A

Reiteration:

Insert

certification

for

requirement

of

807.661(c)

and

811.710(c)

that

trust

agreement

must

be

on

the

form

specified.

Language

from

35

Ill.

Adm.

Code

724.25

1

incorporating

40

CFR

264.151

Trust

certification

language

on

page

4.

98)

811

Illustration

C

¶

2

Correction:

Insert

comma

for

proper

Applies

also

to

811

Illustration

D

¶2.

punctuation.

99)

807

Illustration

C

¶

2

Update:

Insert

current

reference

to

the

Illinois

Applies

also

to

807

Illustration

D

¶2.

Environmental

Protection

Act.

100)

811

Illustration

C

¶

3

807

Illustration

C

¶

3

Update:

Insert

current

reference

to

the

Illinois

Applies

also

to

811

Illustration

D

¶3,

Environmental

Protection

Act.

and

807

Illustration

D

¶3.

101)

811

Illustration

C

¶

4

807

Illustration

C

¶

4

See

(17)

102)

807

Illustration

C

¶

4

See

(18)

103)

811

Illustration

C

¶

6

807

Illustration

C

¶

6

Correction:

The

word

“and”

was

replaced

with

Applies

also

to

811

Illustration

D

¶6,

“or”

because

the

Agency

can

call

in

the

bond

807

Illustration

D

¶6,

even

if

only

closure

is

not

provided

as

811

Illustration

H

¶6,

acknowledged

in

811.71

l(e)(2)(C)

and

and

807

Illustration

H

¶6.

807.662(e)(2)(C).

---

E.

Description

of

Proposed

Amendments

Page

8

104)

811

Illustration

C

¶

6(d)

807

Illustration

C

¶

6(d)

Correction:

Changed

“Agency”

to

“IEPA”

for

Applies

also

to

811

Illustration

D

¶6(d),

consistency

of

terms

(see

¶

1).

811

Illustration

D

¶8,

807

Illustration

D

¶6(d),

807

Illustration

D

¶8,

811

Illustration

H

¶6(d),

and

807

Illustration

I-I

¶6(d).

105)

811

Illustration

C

¶

6(t)

807

Illustration

C

¶

6(e)

Applies

also

to

811

Illustration

0

¶6(1),

Substantive

Change:

Add

language

from

807

Illustration

D

¶6(e),

807.662(e)(2)(E)

and

811.711

(e)(2)(F)

requiring

811

Illustration

H

¶6(1),

Agency

to

collect

on

bond

if

alternative

financial

and

807

Illustration

H

¶6(e).

assurance

is

not

provided.

106)

811

Illustration

C

¶

7

807

Illustration

C

¶

7

Applies

also

to

811

Illustration

D

¶7,

Revision:

Strike

“failed

to

so

provide

closure

and

807

Illustration

0

¶7,

post-closure

care

or

corrective

action”

and

insert

811

Illustration

D

¶8,

“failed

to

fulfill

one

or

more

of

the

conditions

807

Illustration

D

¶8,

described

above”

to

more

accurately

state

when

811

Illustration

H

¶7,

surety

shall

pay

the

penal

sum.

Language

from

and

807

Illustration

H

¶7.

40

CFR

264.151,

Financial

Guarantee

Bond

language

page

5

incorporated

by

35

Ill.

Adni

Code

724.25

1.

Other

source:

40

CFR

144.70

incorporated

by

35

Ill.

Adm.

Code

704.240.

107)

811

Illustration

C

¶

7

807

Illustration

C

¶

7

See

(22)

108)

811

Illustration

C

¶

9

807

Illustration

C

¶

8

Substantive

Change:

Insert

evergreen

renewal

Applies

also

to

811

Illustration

0

¶10,

language.

Language

from

35

Ill.

Adm.

Code

and

807

Illustration

D

¶10.

724.251

incorporating

40

CFR

264.151

Letter

of

Credit

Auto-renewal

language

on

page

9.

Other

source:

40

CFR

144.70

incorporated

by

35

III.

Adm.

Code

704.240.

109)

811

Illustration

C

¶

10

807

Illustration

C

¶

9

Revision:

Add

“in

accordance

with

to

Applies

also

to

811

Illustration

0

¶11,

reference

when

IEPA

will

send

written

and

807

Illustration

D

¶11.

authorization

for

termination

of

the

bond.

110)

811

Illustration

C

¶

12

807

Illustration

C

¶

11

Applies

also

to

811

Illustration

0

¶13,

Reiteration:

Insert

certification

for

requirement

807

Illustration

D

¶13,

of

807.662(c)

and

811.711(c)

that

bond

must

be

811

Illustration

Hjl2,

on

the

form

specified.

Language

from

35

Ill.

Adm.

Code

724.25

I

incorporating

40

CFR

and

807

Illustration

HJl2.

264.151

Financial

Guarantee

Bond

language

on

page

6.

Other

source:

40

CFR

144.70

incorporated

by

35

Ill.

Adm.

Code

704.240.

111)

811

Illustration

C

Correction:

Reformat

signature

lines

to

correct

Applies

also

to

811

Illustration

D

order

as

in

Part

807.

and

811

Illustration

H.

---

E.

Description

of

Proposed

Amendments

Page

9

112)

807

Illustration

D

¶

1

Correction:

Capitalize

the

word

‘Agency”.

113)

811

IllustrationD

¶2

See

(98)

114)

807

Illustration

D

¶

2

See

(99)

115)

811

Illustration

D

¶

3

807

Illustration

D

¶

3

See

(100)

116)

811

Illustration

D

¶

4

807

Illustration

D

¶

4

See

(17)

117)

807

Illustration

D

¶

4

See

(36)

118)

811

Illustration

D

¶

6

807

Illustration

D

¶

6

See

(103)

119)

811

Illustration

D

¶

6(d)

807

Illustration

D

¶

6(d)

See

(104)

120)

811

Illustration

D

¶

6(f)

807

Illustration

D

¶

6(e)

See

(105)

121)

81

Illustration

D

¶

7

807

Illustration

D

¶

7

See

(106)

122)

811

Illustration

D

¶

7

807

Illustration

D

¶

7

See

(22)

123)

811

Illustration

D

¶

8

807

Illustration

D

¶

8

See

(104)

124)

81

Illustration

D

¶

8

807

Illustration

D

¶

8

See

(106)

125)

811

Illustration

D

¶

10

807

Illustration

D

¶

10

See

(108)

126)

811

Illustration

D

¶

11

807

Illustration

D

¶

11

See

(109)

127)

811

Illustration

D

¶

12

807

Illustration

D

¶

12

Correction:

‘Forfeiture”

replaced

with

“Performance”

to

reference

accurate

title.

128)

811

Illustration

D

¶

13

807

Illustration

D

¶

13

See

(110)

129)

811

Illustration

D

See

(111)

130)

811

Illustration

E

807

Illustration

E

Correction:

Insert

correct

IEPA

address.

131)

811

Illustration

E

¶

I

807

Illustration

E

¶

1

See

(11)

132)

807

Illustration

E

¶

I

See

(54)

133)

811

Illustration

E

¶

1

807

Illustration

E

¶

1

See

(77)

134)

811

Illustration

E

¶

2.1

807

Illustration

E

¶

2.1

Correction:

Capitalize

“Your”.

135)

811

Illustration

E

¶

2.2

807

Illustration

E

¶

2.2

See

(13)

and

(134)

136)

81

1

Illustration

E

¶

3

807

Illustration

E

¶

3

Substantive

Change:

Insert

evergreen

renewal

language.

Language

from

35

Ill.

Adni.

Code

724.251

incorporating

40

CFR

264.151

Letter

of

Credit

Auto-renewal

language

on

page

9.

See

also

40

CFR

144.70

incorporated

by

35

111.

Adin.

Code

704

.240.

137)

811

Illustration

E

¶

4

807

Illustration

E

¶

4

See

(22)

1

38)

811

Illustration

E

¶

5

807

Illustration

E

¶

5

Update:

Strike

duplicate

reference

to

governing

authority.

See

also

(139).

Reiteration:

Insert

certification

for

requirement

of

807.664(c)

and

811.713(c)

that

letter

of

credit

must

be

on

the

form

specified.

Language

from

35

Ill.

Adm.

Code

724.251

incorporating

40

CFR

264.151

Letter

of

Credit

certification

language

on

page

9.

---

E.

Description

of

Proposed

Amendments

Page

10

139)

811

Illustration

E

807

Illustration

B

Correction:Correct

governing

authority

paragraph.

Language

from

35

III.

Adm.

Code

724.251

incorporating

40

CFR

264.151

Letter

of

Credit

language

on

page

9.

140)

811

Illustration

F

Correction:

Add

‘corrective

action’

language

because

mechanism

can

be

used

as

a

corrective

action

financial

assurance

mechanism.

141)

807

Illustration

F

¶

1

See

(17)

and

Substantive

change:

Add

language

from

807.665(b)

allowing

for

an

excess

or

surplus

lines

insurer

approved

by

the

insurance

department

of

one

or

more

states

as

in

811.

142)

811

Illustration

F

¶

I

See

(17)

and

Correction:

Add

language

from

811.714(b)

allowing

for

an

excess

or

surplus

lines

insurer

approved

by

the

insurance

department

of

one

or

more

states.

143)

807

Illustration

F

¶

2

Correction:

Capitalize

Code’.

144)

811

Illustration

F

¶

3

807

Illustration

F

¶

3

Substantive

Change:

Insert

authority

to

request

copy

of

policy.

Language

from

35

Ill.

Adm.

Code

724.251

incorporating

40

CFR

264.151

Certificate

of

Insurance

language

on

page

10.

145)

811

Illustration

F

¶

4

807

Illustration

F

¶

4

Substantive

Change:

Insert

certification

paragraph.

Language

from

35

Ill.

Adm.

Code

724.251

incorporating

40

CFR

264.151

Certificate

of

Insurance

language

on

page

10.

146)

811

Illustration

G

Revision:

Insert

‘Owner

or”

in

front

of

each

instance

of

“Operator”

to

allow

form

to

be

consistent

with

body

of

rules.

147)

811

Illustration

G

Correction:

Add

“corrective

action”

language

because

mechanism

can

be

used

as

a

corrective

action

financial

assurance

mechanism.

148)

811

Illustration

H

Revision:

Insert

“Owner

or”

in

front

of

each

instance

of

“Operator’

to

allow

form

to

be

consistent

with

body

of

rules.

149)

811

Illustration

H

¶

2

807

Illustration

H

¶

2

Update:

Insert

currenl

reference

to

the

Illinois

Environmental

Protection

Act.

150)

811

Illustration

H

¶

3

807

Illustration

H

¶

3

Update:

Insert

current

reference

to

the

Illinois

Environmental

Protection

Act.

151)

811

Illustration

H

¶

4

Revision:

Insert

paragraph

to

parallel

language

in

Illustrations

C

and

D.

152)

811

Illustration

H

¶

6

807

Illustration

H

¶

6

See

(103)

---

E.

Description

of

Proposed

Amendments

Page

11

153)

811

Illustration

H

¶

6(d)

807

Illustration

H

¶

6(d)

See

(104)

154)

811

Illustration

H

¶

6(e)

Revision:

Insert

paragraph

to

parallel

language

in

Illustrations

C

and

D.

155)

811

Illustration

H

¶

6(f)

807

Illustration

H

¶

6(e)

See

(105)

156)

811

Illustration

H

¶

7

807

Illustration

H

¶

7

See

(106)

157)

811

Illustration

H

¶7

807

Illustration

H117

See

(22)

158)

811

Illustration

H

¶

8

807

Illustration

H

¶

8

Revision:

Insert

paragraph

to

parallel

language

in

Illustrations

C

and

D.

159)

811

Illustration

H

¶

9

807

Illustration

H

¶

9

Revision:

Insert

paragraph

to

parallellanguage

in

Illustrations

C

and

D.

160)

811

Illustration

H

¶

10

807

Illustration

H

¶

10

Revision:

Insert

paragraph

to

parallel

language

in

Illustrations

C

and

D.

161)

811

Illustration

HJl2

807

Illustration

HJl2

See(110)

162)

8lllllustrationH

See(l1l)

163)

810.1

04(a)(2)

Update:

Accounting

and

Auditng

standards

incorporated

by

reference

are

updated

to

current

editions.

---

Illinois

Leag—

EXHIBIT

1

of

Financial

Institutions

January

3,

2005

133

Soutfl

4W

Street

Suite

#206

Springfield,

IL

62701

Telephone

21

7.522.5575

Fax

217.789.9115

www.ilfi.org

Mr.

Greg

Bouillon

Account

Supervisor

Illinois

Environmental

Protection Agency

1021

North

Grand

Avenue

East

P.

0.

Box

19276

Springfield,

IL

62794-9276

Dear

Mr.

Bouillon:

We

have

received

and

reviewed

the

proposed

changes

to

the

language

of

35

lII.Adm.Code

807,

Subpart

F,

810,

and

811,

Subpart

G.

The

changes

as

they

relate

to financial institutions

are

primarily

technical in

that

archaic

language

is

deleted

and

more

appropriate

terminology

and

provisions

consistent

with

current

law

are

substituted.

The

changes,

as

they

may

relate

to

our

industry,

will

have

a

positive

impact

and

are

supported

by

the

Illinois

League

of

Financial

Institutions.

Thank

you

for

giving

us

an

opportunity to receive

the

proposed

changes

in

advance

and

affording

us

the

opportunity to

comment

on the

same.

)oursvery

truly

ay

—te1nson

c

-

President

RECET

VET

i’.i

.j

.

2

IEPA/BO[.

I

0

---

Illinois

EXHIBIT

2

Bailkers

January

26,

2005

-

1SSOCI(ttjOll

Mr.

Greg Bouillon

133

S.

Fourth

Street.

Suite

300

Illinois

Environmental

Protection

Agency

Sprineld,

IlIino

62701

1021

North Grand

Avenue

East

FAX

2i778954I

Springfield, Illinois

62702

0

5.

LaSalle

Street.

Suite

950

Re:

Proposed

Amendments

to

35

Illinois

Administrative

Code

Chicago.

Illinois

60603

3l23473Q

Part

807, Subpart

F,

Part

810,

and

Part

811,

Subpart

G

FAX.

312.9220518

(December

9,

2004)

Dear

Mr.

Bouillon,

We are

writing

on

behalf of

the

Illinois

Bankers

Association

cIBA”)

in

response

to

the

Environmental

Protection

Agency’s

(“EPA”)

proposed

amendments

to

its

rules

at

Title

35

of

the

Illinois

Administrative

Code,

Part

807,

Subpart

F,

Part

810,

and

Part

811,

Subpart

G,

implementing

the

Environmental

Protection

Act.

The

IBA

is

a

fUll-

service

trade association

representing

financial

institutions

of

all

sizes

in

Illinois,

including

state and

national

community

banks,

regional

banks,

money

center

banks,

savings

banks, and

savings

and

loan

associations,

which

together

account

for

over

85

percent

of

all

banking

assets

in

our

state.

We

appreciate

this

opportunity

to

comment

on

the

EPA’s

proposed

amendments.

The

proposed

amendments

would

require

that

irrevocable

standby

letters

of

credit

include

provisions

which

are

less

favorable

to

the

issuers

of

the

letters

of

credit

than are

currently

required

in

the

EPA’s

rules

(see,

35

Ill.

Adm.

Code

Part

811.Appendix

A,

Illustration

E).

Specifically,

the

proposed

amendments

would

require

the

issuer

of

an

irrevocable

standby

letter

of

credit

to

provide

the

EPA

with

120

days

prior

notice of

a

non-renewal

of

the

letter

of

credit;

which would

prompt

the

EPA

to

draw

on

the

letter

if

a

landfill

operator

failed

to

provide

alternate

financial

assurance

within 90

days

following

the

bank’s

non-renewal

notification.

It

is

important

to

note

that

irrevocable

standby

letters

of

credit

are

issued

on

the

basis of

credit underwriting

decisions.

The

proposed

change

would,

in

many

cases, result

in

the

EPA

drawing

on

letters

of

credit

issued

to

landfill

operators

based

on

an

event (the

failure

to

arrange

alternative

financial

assurance)

that

cannot

be

determined

at

the

time

the

underwriting

decision

is

made.

Consequently,

the

proposed

change,

if adopted,

will

make

it

more

difficult

for

landfill

operators

to

obtain

such

letters of

credit.

Alternatively,

to

the

extent

these letters

of

credit

remain

available,

the

proposed

change

would

result

in

increased

costs

for the

letters

of

credit. While

the

IBA

understands

the

EPA’s

desire,

as

a

matter

of

public

policy,

to

strengthen

the

existing

financial

assurance

mechanisms

for

landfill

operators

in

favor

of

the

State of

Illinois,

and

the

IBA

does

not

oppose

the

proposed

change,

the

EPA

may

wish

to

consider

the

important

role

that

financial

institutions

serve

in

providing

financial

assurance

through

the

issuance

of

letters

of

credit, and

the

impact

that

these

proposed

changes

may

have

on

the

availability

and

costs of such letters.

Your

Partner

for

Success

Since

1891!

---

Mr.

Greg

Bouillon

January

26,

2005

Page

Two

The

IBA

strongly

suggests,

however,

that

the

EPA

add

language

to

the

proposed

amendments

clarifying

that

the

changes

to

Parts

807

and

811

apply

only

to

irrevocable

standby

letters

of

credit

that

are

issued

after

the

effective

date

of

the

amendments.

The

proposed

amendments

are

silent

on

this

important

issue.

It

would

be

highly

problematic

for

the

EPA

to

draw

on

letters

of

credit

on

the

basis

of

terms

that

did

not

exist

at

the

time

that

the

underwriting

decisions

were

made

to

issue

the

letters

of

credit.

While

it

does

not

seem

likely

that

the

EPA

intended

for

the

proposed

changes

to

have

a

retroactive

application

to

outstanding

letters

of

credit,

we

believe

that

this

is

an

important

clarification

that

should

be

stated

in

the

amended

rules.

Finally,

the

IBA

recommends

that

the

EPA

amend

the

third

paragraphs

of

the

Irrevocable

Standby

Letter

of

Credit

forms

that

are

set

forth

in

Part

807.Appendix

A,

Illustration

E,

and

Part

811

.Appendix

A,

illustration

E,

to

read

as

follows

(our

added

language

is

in

bold

italics):

V

“This

letter

of

credit

is

effective

as

of

and

shall

expire

on

but

such

expiration

date

shall

be

automatically

extended

for

a

period

of

[at

least

1

year]

on

[date]

and

on

each

successive

expiration

date,

unless,

at

least

120

days

before

the

then

current

expiration

date,

we

notify

both

you

and

[owner’s

or

operator’s

name]

by

certified

mail,

return

receipt

requested,

that

we

have

decided

not

to

extend

this

letter

of

credit

beyond

the

then

current

expiration

date.

Notice

shall

be

deemed

given

as

of

the

date

of

signature

appearing

on

the

return

receipt

issued

in

conjunction

with

the

certified

mailing

of

the

notIfication.”

Thank

you

for

your

consideration

of

our

comments.

•

S7l4

Bruce

Ja

Baker

Executive

Vice

President

and

General

Counsel

---

EXHIBIT

3

STPAUL

Michael

Damewood

TRAVELERS

Account

Manager

St.

Paul

Travelers

Bond

215

Shüman

B1’d.

Naperville

IL.

60563

Phone:

630-961-7037

Fax:

866-216-5979

E-mail:

Mdamewoo@spt.com

February

10,

2005

Mr.

Greg

Bouillon

Illinois

EnvirOnmental

Protection

Agency

DIVISjO

of

L.

0

1021

North

Grand

Avenue

East

.

egal

Col,.,sE?I

P.O

Box

19276

FEE,

Springfield

IL.

62794-9276

RF:

Landfill

financial

assurance

duration

mta1

Protection

Agency

Dear

Greg:

Through

our

waste

handling

customers,

we

received your

notice

requesting

commentary

on

the

proposed

changes

to

the

Ill.

Adm.

Code(s)

807,

subpart F,

810

and

8

11.

Please

be

advised

that

sureties

are

generally

unwilling

to

provide bonds

which

extend

more

than

one

or

two

years.

St.

Paul

Travelers

is

opposed to

providing

bond

coverage

over

I

to

2

years. I

know

many

of

our

waste

clients

are

equally uncomfortable

extending

terms

with

these

types of

lengths.

From a

surety’s

perspective,

it

is

very

difficult,

if

not

impossible;

for

us

to

underwrite

any

company’s

ability

to

respond

to

a problem

that

may

not

arise

for

years.

Surety

bonds are

underwritten

and

priced

based

upon

the

customers

ability and

financial

resources

at

the

time

of

the

contract

award.

We

are

able

to

project those

qualifications

for

the

length

of a

typical contract,

but

simply

cannot do

so

for

a

period

in

excess

of

1

or

2

years.

Reducing

the

length

of

closure

assurance

from

five

years

would

have

several

beneficial

impacts,

First,

more

waste

companies

would be

able

to

obtain

surety

bonding

as

an

alternative

form

of

financial

assurance.

As

the

current

law

stands,

only

the

largest

companies

can

obtain

surety

credit

for

the

five.year

term

required.

Secondly,

the

cost

of

the

financial

assurance

would

become

much

more

in

line

with

the

risk

being

undertaken.

The

risk

on

a

one

to

two

year

bond

is

simply

much

easier to

quantify

than

that

of

a

five

year

obligation.

Finally,

we

would

assert

that

the

risk

to

the

State

of

Illinois

is

actually

reduced.

The

financial

companies

backing

the

bonds

or

letters of

credit

can

just

as

easily

encounter

financial

difficulties

.during the

five

year

term as

the

waste

companies

themselves.

Reducing

the

term

length

would

provide

the

waste

company

an

opportunity

to

replace

the

financial

assurance

more

frequently

should the

need

arise-thus

improving

the

quality

of

the

State’s

financial

backing.

---

Page

—

In

2004

St

Paul

Insurance

and

Travelers Insurance merged to

create

St

Paul

Travelers

(NYSE-STA).

Prior

to

the

merger

Travelers

and

St.

Paul

were

respectively

the

1

st

and

2

largest

writers

of

surety

bonds

in

the

United

States.

Combined,

STA

currently is far

and

away

the

largest

writer

of

surety

bonds

in

the

U.S.

and

is

rated

A+

by

AM.

Best.

We

appreciate

your

consideration

of

our

position

and

would

be

happy

to

discuss

these

topics

further

should

the

opportunity

arise.

Please

realize

St.

Paul

Travelers

has been

providing

surety

bonds

for

clients

since

1910,

and

we

have

a

vested interest

in our

clients

being

able

to pursue

work

in the

State

of

Illinois

under

fair

and

reasonable

contract

terms.

Regards,

Michael

Damewood

---

TITLE

35:

ENVIRONMENTAL

PROTECTION

SUBTITLE

G:

WASTE

DISPOSAL

CHAPTER

I: POLLUTION

CONTROL

BOARD

SUBCHAPTER

I: SOLID

WASTE

AND

SPECIAL

WASTE

HAULING

PART

810

SOLID

WASTE DISPOSAL:

GENERAL

PROVISIONS

Section

810.101

Scope and

Applicability

810.102

Severability

810.103

Definitions

810.104

Incorporations

by

Reference

AUTHORITY: Implementing

Sections

5,

21, 21.1,

22, 22.17,

and

28.1 and

authorized

by Section

27

of

the

Environmental

Protection

Act

[415 ILCS

5/5,

21,

21.1, 22,

22.17,

28.1

and 27].

SOURCE:

Adopted

in R88-7

at 14 Ill.

Reg. 15838,

effective

September

18,

1990;

amended

in R93-l0

at 18 Ill.

Reg. 1268,

effective

January

13, 1994;

amended in

R90-26

at

18 Ill. Reg.

12457,

effective

August

1,

1994;

amended

in

R95-9

at

19

Ill. Reg.

14427,

effective September

29, 1995;

amended

in R96-1

at 20 Iii.

Reg. 11985,

effective

August

15, 1996;

amended

in

R97-20

at

21111.

Reg.

15825,

effective

November

25,

1997;

amended

in

R04-5/R04-15

at 28 Ill.

Reg.

9090,

effective

June

18,

2004, amended

in

at

Ill. Reg.

, effective

Section 81

0.104

Incorporations

by

Reference

a)

The Board

incorporates

the following

material

by

reference:

1)

Code of

Federal

Regulations:

40 CFR

141.40

(1997).

40

CFR

258.Appendix

11(1997).

2)

American

Institute

of

Certified Public

Accountants,

1211 Avenue

of the

Americas,

New

York

NY

10036:

FASB

Accounting

Standards

— Current

Text, 2008

Edition.

AICPA

Professional

Standards

—

Statements

on Auditing

Standards,

June

1, 2008 edition.

Auditing

Standards

Current

Text,

August

1,

1990 Edition.

Page

1 of2

---

3)

ASTM.

American

Society

for Testing and Materials,

1976

Race Street,

Philadelphia

PA 19103 215-299-5585:

Method

D2234-76, Test Method

for Collection

of

Gross Samples

of Coal.

Method

D3987-85, Standard

Test

Method

for

Shake Extraction

of Solid Waste

with

Water.

4)

GASB.

Government

Accounting

Standards Board,

401 Merritt

7,

P.O. Box

5116,

Norwalk CT 06856-5

116:

Statement 18.

5)

U.S.

Army

Corps of Engineers,

Publication Department,

2803 52nd

Ave.,

Hyattville,

Maryland

20781, 301-394-0081:

Engineering

Manual

1110-2-1906

Appendix

VII,

Falling-Head

Permeability

Cylinder

(1986).

6)

U.S.

Government

Printing

Office,

Washington,

D.C. 20402, Ph: 202-783-3238:

Test

Methods for

Evaluating Solid Waste,

PhysicallChemical

methods,

EPA Publication

SW-846 (Third

Edition,

1986 as amended

by Update

I (November, 1990):

b)

This

incorporation

includes

no

later

amendments

or

editions.

(Source:

Amended at

Ill.

Reg.

, effective

Amended

at 21 ill. Reg.

15825,

effective November 25,

1997)

Page 2

of 2

---

TITLE

35:

ENVIRONMENTAL

PROTECTION

SUBTITLE

G:

WASTE

DISPOSAL

CHAPTER

I: POLLUTION

CONTROL

BOARD

SUBCHAPTER

i:

SOLID

WASTE

AND

SPECIAL

WASTE

HAULING

PART

807

SOLID

WASTE

SUBPART A:

GENERAL

PROVISIONS

Section

807.101

Authority,

Policy

and

Purposes

807.102

Repeals

807.103

Severability

807.104

Definitions

807.105

Relation

to Other

Rules

SUBPART

B:

SOLID

WASTE

PERMITS

Section

807.201

Development

Permits

807.202

Operating

Permits

807.203

Experimental

Permits

807.204

Former

Authorization

807.205

Applications

for

Permit

807.206

Permit

Conditions

807.207

Standards

for

Issuance

807.208

Permit

No

Defense

807.209

Permit

Revision

807.210

Supplemental

Permits

807.211

Transfer

of

Permits

807.212

Permit

Revocation

807.213

Design,

Operation and

Maintenance

Criteria

807.2

14

Revised

Cost

Estimates

SUBPART C:

SANITARY

LANDFILLS

Section

807.301

Prohibition

807.302

Compliance

with

Permit

807.303

Methods

of

Operation

807.304

Equipment,

Personnel

and

Supervision

807.305

Cover

Page

1 of

43

---

807.306

Litter

807.307

Salvaging

807.308

Scavenging

807.309

Animal

Feeding

807.3 10

Special

Wastes

807.311

OpenBurning

807.3

12

Air Pollution

807.3

13

Water

Pollution

807.3

14

Standard

Requirements

807.3

15

Protection

of

Waters

of the

State

807.3 16

Application

807.317

Operating

Records

807.318

Completion

or

Closure

Requirements

SUBPART

E:

CLOSURE

AND

POST-CLOSURE

CARE

Section

807.501

Purpose,

Scope

and

Applicability

807.502

Closure

Performance

Standard

807.503

Closure

Plan

807.504

Amendment

of Closure

Plan

807.505

Notice

of

Closure

and

Final Amendment

to Plan

807.506

Initiation

of

Closure

807.507

Partial

Closure

807.508

Certification

of

Closure

807.509

Use of

Waste

Following

Closure

807.523

Post-closure

Care

Plan

807.524

Implementation

and

Completion

of

Post-closure

Care Plan

SUBPART

F:

FINANCIAL

ASSURANCE

FOR

CLOSURE

AND

POST-

CLOSURE

CARE

Section

807.600

Purpose,

Scope

and

Applicability

807.601

Requirement

to Obtain

Financial

Assurance

807.602

Time

for

Submission

of

Financial

Assurance

807.603

Upgrading

Financial

Assurance

807.604

Release

of Financial

Institution

807.605

Application

of

Proceeds

and

Appeal

807.606

Release

of

the Operator

807.620

Current

Cost

Estimate

807.62

1

Cost

Estimate

for

Closure

807.622

Cost

Estimate

for Post-closure

Care

Page 2

of 43

---

807.623

Biennial

Revision

of

Cost

Estimate

807.624

Interim

Formula

for

Cost

Estimate

807.640

Mechanisms

for

Financial

Assurance

807.641

Use

of

Multiple

Financial

Mechanisms

807.642

Use

of Financial

Mechanism

for Multiple

Sites

807.643

Trust

Fund

for

Unrelated

Sites

807.644

RCRA

Financial

Assurance

807.66

1

Trust

Fund

807.662

Surety

Bond

Guaranteeing

Payment

807.663

Surety

Bond

Guaranteeing

Performance

807.664

Letter

of Credit

807.665

Closure

Insurance

807.666

Self-insurance

for

Non-Ceonimercial

Sites

Financial

Assurance

Forms

Illustration

A

Trust

Agreement

Illustration

B

Certificate

of

Acknowledgment

Illustration

C

Forfeiture

Bond

Illustration

D

Performance

Bond

Illustration

B

Irrevocable

Standby

Letter

of Credit

Illustration

F Certificate

of

Insurance

for

Closure

and/or

Post-closure

Care

Illustration

G Operator’s Bond

Without

Surety

Illustration

H

Operator’s

Bond

With

Parent

Surety

Illustration

I

Letter

from

Chief

Financial

Officer

AUTHORITY:

Implementing

Sections

5,

21.1

and

22

and authorized

by Section

27

of

the

Environmental

Protection

Act

[415

ILCS

5/5,

21.1,

22,

and

27].

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.

Reg.

13636;

recodified

from

Subchapter

h to

Subchapter

i at

8 Iii.

Reg.

13198;

emergency

amendment

in R84-22A

at

9

Ill.

Reg.

741,

effective

January

3,

1985,

for

a

maximum

of

150

days;

amended

in R84-22B

at 9

Ill.

Reg.

6722,

effective

April

29,

1985;

amended

in

R84-22C

at

9 Ill.

Reg.

18942,

effective

November

25, 1985;

amended

in R84-45

at

12

Iii.

Reg.

15566,

effective

September

14,

1988;

amended

in

R88-7

at 14

Ill.

Reg.

15832,

effective September

18,

1990;

emergency

amendment

in R93-25

at 17

Ill.

Reg.

17268,

effective

September

24,

1993k

for

a

maximum

of

150 days;

amended

in R90-26

at

18

Iii.

Reg.

12451,

effective

August

1, 1994;

amended

in

R96-1

at

20

Iii.

Reg.

12549,

effective

August

15,

1996,

amended

in

at

Ill.

Reg.

effective

NOTE:

Italics

denotes

statutory

language.

Page

3 of

43

---

SUBPART

F: FINANCIAL

ASSURANCE

FOR

CLOSURE

AN])

POST-

CLOSURE

CARE

Section 807.600

Purpose,

Scope

and

Applicability

a)

This Subpart

provides

procedures

by

which

an operator

of a waste

disposal

site

can give

“financial

assurance”

satisfiing

the

requirement

of

Section

21.1(a)

of the

Act

that

such operator

post

with the

Agency

a performance

bond

or

other security

for the

purpose

of insuring

closure

of the

site

and

post-closure

care in

accordance

with

the

Act

and

Board

rules.

b)

Each

operator

must

file a closure

plan

as part of

a permit

application.

The

operator

of a disposal

site

or

indefinite

storage

unit

must

also

file a

post-

closure care

plan

(Sections

807.205,

807.503

and

807.523).

The

operator

of a

disposal site

or indefinite

storage

unit

must prepare

a cost

estimate

of

closure

and post-closure

care,

and

provide

financial

assurance

in

this

amount

(Sections

807.60

1

and

807.620).

Financial

assurance

shallmay

be

given

through a

combination

of

a

trust agreement,

bond

guaranteeing

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

updated

at least

on a biennial

basis

(Section

807.623).

c)

This Subpart

applies

only

to the non-governmental

operators

of

disposal

sites or indefinite

storage units

(Section

807.601).

Whether

a site

is a

disposal site

or, alternatively,

a

treatment

or storage

site, depends

on

whether

the closure

plan

provides

for removal

of all wastes

and

waste

residues

from

the site

prior

to

completion

of closure.

Whether

a

unit

is

an

indefinite

storage

unit depends

on the technical

feasibility

and

economic

reasonableness

of

removal

of all

wastes

and waste

residues

prior

to

closure

(Section 807.104).

(Source:

Amended

at

Ill. Reg.

. effective

Amended

at

9

111.

Reg. 18942,

effective

November

25, 1985)

Section

807.640

Mechanisms

for Financial

Assurance

The operator

of a