1. (a) If CalRecycle chooses to impose a penalty, the daily penalty shall equal an amount determined by the gravity-based matrix, in Table 1, using the degree of non-compliance and the potential for harm as the deciding factors, added to the economic benefit an operator receives from noncompliance with this Chapter.

   1. (1) The economic benefit portion of penalty for lack of liability coverage shall be based on a minimum annual premium for liability insurance, as identified by a CalRecycle survey of the insurance industry. The premium is multiplied by the number of years an operator is out of compliance (rounded up to the next whole year if a partial year of non-compliance exists).
   2. (2) The economic benefit portion of a penalty for lack of coverage for closure costs shall be based on the current cost of a letter of credit or bond, as identified by a CalRecycle survey of the banking industry or insurance industry, respectively. The cost for a letter of credit or bond is multiplied by the pro-rata factor for the length of time of non-compliance.

   Table 1.

   Degree of Non-Compliance

   Potential for Harm

   Major

   Minor

   $10,000

   $904

   Major

   to

   to

   $905

   $804

   $803

   $702

   Moderate

   to

   to

   $703

   $652

   $651

   $550

   Minor

   to

   to

   $551

   $500

2. (b) Determinations of penalty amounts may be modified by CalRecycle for one or more of the following reasons:

   1. (1) Evidence that coverage has been subsequently provided, such as bank statements, letter from county treasurer verifying balance of fund, certificate demonstrating adequate coverage, etc.
   2. (2) Evidence of a payment schedule, if applicable, detailing the operator's good faith efforts has been subsequently provided, such as past deposits to the financial assurance mechanism, etc.
   3. (3) An operator's good faith efforts to comply or lack of good faith.
   4. (4) An operator's degree of willingness to comply.
   5. (5) An operator's history of compliance.
   6. (6) Other unique factors such as size of operation, threat to public health and safety and the environment.
3. (c) Penalties may be pursued by CalRecycle administratively or through superior court as specified in Public Resources Code, sections 42850 and 42850.1.

Note: Authority cited: Sections 40502, 42850 and 42850.1, Public Resources Code. Reference: Sections 40502, 42850 and 42850.1, Public Resources Code.

History

1. New section filed 4-1-2003; operative 5-1-2003 (Register 2003, No. 14).

2. Change without regulatory effect amending subsections (a)-(b) and (c) filed 12-11-2017 pursuant to section 100, title 1, California Code of Regulations (Register 2017, No. 50).