An owner or operator of a scrap tire site subject to this subchapter shall establish financial assurance for the closure of the facility that meets the requirements of this section, in addition to the requirements specified under Subchapters A, B, C and D of this chapter (relating to General Financial Assurance Requirements; Financial Assurance Requirements for Closure; Financial Assurance Mechanisms for Closure; Wording of the Mechanisms for Closure).

1. (1) The financial assurance for a scrap tire site shall be in the amount required under §330.821 of this title (relating to Closure Cost Estimate for Financial Assurance).

2. (2) An owner or operator subject to this subchapter may utilize any of the mechanisms specified in subparagraphs (A)-(I) of this paragraph. The original mechanism is required to be submitted to the executive director:

   1. (A) Fully-funded trust;
   2. (B) Surety bond guaranteeing payment;
   3. (C) Surety bond guaranteeing performance;
   4. (D) Irrevocable letter of credit;
   5. (E) Insurance;
   6. (F) Financial test;
   7. (G) Corporate guarantee;
   8. (H) Local government financial test; or
   9. (I) Local government guarantee.
3. (3) Quarterly valuation statements are required for a fully-funded trust. The wording to Section 10 of the Trust Agreement specified in §37.301(a) of this title (relating to Trust Agreement for Closure) will need to be revised as follows: Section 10. Quarterly Valuation. The trustee shall quarterly, within 15 days of quarter-end, furnish to the Grantor and the commission executive director a statement confirming the value of the Trust. Quarter-ends are designated as March 31, June 30, September 30, and December 31. Any securities in the Fund shall be valued at market value as of quarter-end. 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 commission executive director shall constitute a conclusively binding assent by the Grantor barring the Grantor from asserting any claim or liability against the Trustee with respect to matters disclosed in the statement.
4. (4) Section 37.161 of this title (relating to Establishment of a Standby Trust) does not apply to an owner or operator who utilizes either a surety bond or irrevocable standby letter of credit under this subchapter.
5. (5) An owner or operator who utilizes the insurance mechanism as specified in §37.241 of this title (relating to Insurance for Closure) shall replace the wording specified in §37.241(b) of this title to read as follows: At a minimum, the insurer must be licensed to transact the business of insurance, or eligible to provide insurance as an excess or surplus lines insurer, in Texas.

Source Note:The provisions of this §37.3011 adopted to be effective July 7, 1998, 23 TexReg 6966.