HF 4523

as introduced - 90th Legislature (2017 - 2018) Posted on 05/17/2018 09:28am

A bill for an act
relating to environment; requiring financial assurance for waste tire facilities;
proposing coding for new law in Minnesota Statutes, chapter 115A.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [115A.9131] WASTE TIRE FACILITIES; FINANCIAL
QUALIFICATIONS FOR PERMIT HOLDERS.
new text end

new text begin (a) As used in this section:
new text end

new text begin (1) "commissioner" means the commissioner of the Minnesota Pollution Control Agency;
new text end

new text begin (2) "financial qualification" means the ability of an applicant or permit holder to pay the
costs of proper design, construction, operation, closure, and maintenance of a waste tire
facility; and
new text end

new text begin (3) "waste tire facility" means a facility required to be permitted by the commissioner
to process, store, or transfer waste tires.
new text end

new text begin (b) The commissioner may provide to the state treasurer a copy of any filing that an
applicant for a permit or a permit holder submits to the commissioner to meet the financial
qualification requirement under this section. The state treasurer must review the filing and
provide the commissioner with a written opinion as to the adequacy of the filing to meet
the purposes of this section, including any recommended changes.
new text end

new text begin (c) The commissioner must require an applicant for a permit for a waste tire facility to
demonstrate the applicant's financial qualification for the design, construction, operation,
closure, and maintenance of a waste tire facility. The commissioner must require an applicant
for a permit for a waste tire facility to provide to the commissioner cost estimates for site
investigation; land acquisition, including financing terms and land ownership; design;
construction; operation; maintenance; and closure of the facility.
new text end

new text begin (d) The applicant or permit holder must provide an audited, certified financial statement
to the commissioner as part of the financial qualification review. An applicant may
demonstrate the applicant's financial qualification through a combination of cash deposits,
insurance, and binding loan commitments from a financial institution licensed to do business
in the state and rated AAA by Standard & Poor's, Moody's Investors Service, or Fitch
Ratings. If assets of a parent, subsidiary, or other affiliate of the applicant or permit holder,
or a joint venturer with a direct or indirect interest in the applicant or permit holder, are
proposed to be used to demonstrate financial qualification, then the party whose assets are
to be used must be designated as a joint permittee with the applicant on the permit for the
facility.
new text end

new text begin (e) To continue to hold a permit for a waste tire facility, a permit holder must maintain
financial qualification and must provide any information requested by the commissioner to
establish that the permit holder continues to maintain financial qualification. A permit holder
must notify the commissioner within 30 days of any significant change in:
new text end

new text begin (1) the identity of any person or structure of the business entity that holds the permit for
the facility;
new text end

new text begin (2) the identity of any person or structure of the business entity that owns or operates
the facility; or
new text end

new text begin (3) assets of the permit holder, owner, or operator of the facility.
new text end

new text begin (f) A change is significant under paragraph (e) if the change has the potential to affect
the financial qualification of the permit holder, owner, or operator, or if the change would
result in a change in the identity of the permit holder, owner, or operator for purposes of
financial qualification. Depending on the commissioner's review of the changes, the
commissioner may require the permit holder to reestablish financial qualification and may
modify or revoke a permit or require issuance of a new permit.
new text end

new text begin (g) The financial qualification requirements of this section apply only in the first ten
years of operation of a waste tire facility permitted in the state.
new text end

new text begin (h) Units of local government are exempt from this section.
new text end

Sec. 2. new text begin FINANCIAL ASSURANCE REQUIREMENTS FOR WASTE TIRE
FACILITIES.
new text end

new text begin The commissioner of the Pollution Control Agency must update financial assurance
rules to allow no less than $250/ton of waste tires, determined by passenger tire equivalents,
in coverage for owners and operators of waste tire facilities permitted in the state. The
commissioner must also update financial assurance requirements for storage of processed
waste tire materials. In addition to financial mechanisms currently allowed, a corporate
financial test must be an allowed mechanism and must be substantially similar to that allowed
under Code of Federal Regulations, title 40, section 258.74 (2010).
new text end