NAC444.6853. Financial assurance: Trust fund.

     1. An owner or operator may satisfy the requirements of NAC 444.685 by establishing a trust fund which conforms to the requirements of this section. The trustee must be an entity which has the authority to act as a trustee and whose trust operations are regulated and examined by a federal or state agency. A copy of the trust agreement must be placed in the operating records of the disposal site.

     2. The owner or operator shall annually make payments into the trust fund over the term of the period for payment into the fund.

     3. If a trust fund is used to demonstrate financial assurance for closure and postclosure, the first payment into the fund must be at least equal to the current estimate of the cost for closure or postclosure, except as otherwise provided in NAC 444.6857, divided by the number of years of the period for payment into the fund. The amount of subsequent payments must be determined by the following formula:

	CE-CV
Next Payment	=    _______
		Y

where:

CE is the current estimate for closure or postclosure, as adjusted for inflation or other changes.

CV is the current value of the trust fund.

Y is the number of years remaining in the period for payment into the fund.

     4. If a trust fund is used to demonstrate financial assurance for corrective action, the first payment into the trust fund must be at least equal to one-half of the current estimate of the cost for corrective action, except as otherwise provided in NAC 444.6857, divided by the number of years in the period for payment into the fund. The amount of subsequent payments must be determined by the following formula:

	RB-CV
Next Payment	=    _______
		Y

where:

          RB is the most recent estimate of the required balance in the trust fund needed for corrective action.

          CV is the current value of the trust fund.

          Y is the number of years remaining in the period for payment into the trust fund.

     5. The owner or operator shall:

     (a) For a trust fund for closure and postclosure, obtain and make the initial payment into the trust fund before April 9, 1997, or the initial receipt of solid waste, whichever is later.

     (b) For a trust fund for corrective action, obtain the trust fund and make the initial payment into the trust fund no later than 120 days after the remedy for corrective action has been selected in accordance with the requirements of NAC 444.7497, 444.7498 and 444.7499.

     (c) Maintain the trust fund until he or she is no longer required to demonstrate financial responsibility pursuant to NAC 444.6851, 444.68515 and 444.6852.

     6. If the owner or operator establishes a trust fund after having used one or more alternate mechanisms specified in NAC 444.68525, the first payment into the trust fund must be at least equal to the amount which the fund would have contained if the trust fund were established initially and annual payments made pursuant to this section.

     7. The owner, operator or any other person authorized to conduct activities for closure, postclosure or corrective action may request reimbursement from the trustee for related expenditures. Requests for reimbursement may be granted by the trustee only if sufficient money is remaining in the trust fund to cover the remaining costs of closure, postclosure or corrective action, and if justification and documentation of the cost is placed in the operating records of the disposal site. The owner or operator shall notify the solid waste management authority that the documentation of the justification for reimbursement has been placed in the operating records and that reimbursement has been received.

     8. The owner or operator may terminate the trust fund only if he or she substitutes alternate financial assurance as specified in this section or is no longer required to demonstrate financial responsibility in accordance with the requirements of NAC 444.6851, 444.68515 or 444.6852.

     9. As used in this section, “period for payment into the fund” means:

     (a) In the case of a trust fund for closure or postclosure, the remaining life of the municipal solid waste landfill unit.

     (b) In the case of a trust fund for corrective action, over one-half of the estimated length of the program for corrective action.

     (Added to NAC by Environmental Comm’n, 11-8-93, eff. 4-9-95; A 11-9-95)