401 KAR 34:080. General financial requirements.

 

      RELATES TO: KRS 224.10, 224.40, 224.46, 40 C.F.R. 264 Subpart H, EO 2008-507, 2008-531

      STATUTORY AUTHORITY: KRS 224.46-505, 224.46-520

      NECESSITY, FUNCTION, AND CONFORMITY: KRS 224.46-520 requires that persons engaging in the storage, treatment, and disposal of hazardous waste obtain a permit. KRS 224.46-520 requires the Environmental and Public Protection Cabinet to establish standards for these permits, to require adequate financial responsibility, and to establish minimum standards for closure for all facilities and the postclosure monitoring and maintenance of hazardous waste disposal facilities. EO 2008-507 and 2008-531, effective June 16, 2008, abolish the Environmental and Public Protection Cabinet and establish the new Energy and Environment Cabinet. This administrative regulation establishes the general financial requirements for owners and operators of hazardous waste site and facilities.

 

      Section 1. Financial Requirement Definitions. The definitions previously found in this section have been relocated to the definition administrative regulation for this chapter, which is 401 KAR 34:005.

 

      Section 2. Applicability. (1) The requirements of 401 KAR 34:090 to 401 KAR 34:130 apply to owners and operators of all hazardous waste sites or facilities, except as provided otherwise in this section or in 401 KAR 34:010, Section 1.

      (2) The requirements of 401 KAR 34:100 and 34:110 shall apply only to owners and operators of:

      (a) Disposal facilities;

      (b) Waste piles, and surface impoundments from which the owner or operator intends to remove the wastes at closure, to the extent that these sections are made applicable to such facilities in 401 KAR 34:200, Section 7 and 34:210, Section 8;

      (c) Tank systems that are required under 401 KAR 34:190, Section 8 to meet the requirements of landfills;

      (d) Containment buildings that are required under 401 KAR 34:245, Section 2 to meet the requirements for landfills; and

      (e) Drip pads that are required under 401 KAR 34:285, Section 6 to meet the requirements for landfills.

      (3) States and the federal government are exempt from the requirements of Section 1 of this administrative regulation.

      (4) The cabinet may replace all or part of the requirements of this administrative regulation applying to a regulated unit with alternative requirements for financial assurance established in the permit or in an enforceable document if the cabinet:

      (a) Prescribes alternative requirements for the regulated unit under 401 KAR 34:060, Section1, or 401 KAR 34:070, Section 1;

      (b) Determines that it is not necessary to apply the requirements of this administrative regulation because the alternative financial assurance requirements shall protect human health and the environment; and

      (c) Provides for public notice and public comment in accordance with 401 KAR 38:050.

 

      Section 3. General Financial Requirements. (1) This administrative regulation and 401 KAR 34:090 to 34:130 inclusively contain the financial requirements to establish adequate financial responsibility as required by KRS 224.46-520(3) for hazardous waste sites or facilities. A reference to this section is a citation of this administrative regulation and 401 KAR 34:090 to 34:130.

      (2) Except as specifically provided in this administrative regulation and 401 KAR 34:090 to 34:130, no variance (401 KAR 30:020, Section 2) or other waivers of these financial requirements shall be granted by the cabinet.

 

      Section 4. Incorporation by Reference. (1) The following financial instruments are incorporated by reference:

      (a) Trust Agreement for Closure and Postclosure Assurance, DEP Form 6035A, July 2008;

      (b) Financial Guarantee Bond to Demonstrate Closure and/or Postclosure Care, DEP Form 6035B, July 2008;

      (c) Corporate Guarantee for Closure or Postclosure Care, DEP Form 6035H1, July 2008;

      (d) Letter from Chief Financial Officer (to Demonstrate Assurance of Closure or Postclosure Care), DEP Form 6035F, (February 10, 1994);

      (e) Irrevocable Standby Letter of Credit for Closure and/or Postclosure Care, DEP Form 6035D, July 2008;

      (f) Escrow Agreement to Demonstrate Closure and/or Postclosure Care, DEP Form 6035J, July 2008;

      (g) Hazardous Waste Site or Facility Bond to Demonstrate Closure and/or Postclosure Care, DEP Form 6035I, July 2008;

      (h) Performance Bond to Demonstrate Closure and/or Postclosure Care, DEP Form 6035C, July 2008;

      (i) Letter from Chief Financial Officer (to Demonstrate Liability Coverage or to Demonstrate Both Liability Coverage and Assurance of Closure or Postclosure Care), DEP Form 6035G, July 2008;

      (j) Corporate Guarantee for Liability Coverage, DEP Form 6035H2 (February 10, 1994);

      (k) Hazardous Waste Facility Liability Endorsement, DEP Form 6035K (February 10, 1994);

      (l) Hazardous Waste Facility Certificate of Liability Insurance, DEP 6035L (February 10, 1994);

      (m) Certificate of Insurance for Closure or Postclosure Care, DEP Form 6035E, July 2008;

      (n) Irrevocable Standby Letter of Credit To Demonstrate Liability Coverage with Standby Trust Agreement, DEP Form 6035N, July 2008;

      (o) Standby Trust Agreement for Letter of Credit Demonstrating Liability Coverage, DEP Form 6035R, July 2008;

      (p) Payment Bond to Demonstrate Liability Coverage, DEP Form 6035O, July 2008;

      (q) Trust Agreement to Demonstrate Liability Coverage, DEP Form 6035P, July 2008;

      (r) Irrevocable Standby Letter of Credit to Demonstrate Liability Coverage, DEP Form 6035Q, July 2008; and

      (s) Cover Letter for a Letter of Credit for Closure and/or Postclosure Care, DEP Form 6035S, July 2008.

      (2) These forms may be obtained from the Hazardous Waste Branch, Division of Waste Management, 14 Reilly Road, Frankfort, Kentucky 40601, between the hours of 8 a.m. and 4:30 p.m., Monday through Friday. Call (502) 564-6716 for assistance. (Recodified from 401 KAR 2:063, Sections 7, 8 and 9, 3-1-83; Am. 10 Ky.R. 91; eff. 12-2-83; 14 Ky.R. 1395; eff. 3-10-88; 20 Ky.R. 1154; eff. 2-10-94; 23 Ky.R. 603; eff. 3-12-97; 34 Ky.R. 2455; 35 Ky.R. 39; 265; eff. 8-21-08.)