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Minnesota Legislature

Office of the Revisor of Statutes

SF 1590

2nd Engrossment - 91st Legislature (2019 - 2020) Posted on 03/15/2019 09:21am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 2nd Engrossment

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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.903] WASTE TIRE FACILITIES; FINANCIAL QUALIFICATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Commissioner" means the commissioner of the Minnesota Pollution Control Agency.
new text end

new text begin (c) "Financial qualification" means the ability of an applicant or permit holder to pay
the costs to properly design, construct, operate, maintain, and close a waste tire facility.
new text end

new text begin (d) "Waste tire facility" means a permitted facility operated by a tire collector or tire
processor at which waste tires are stored or processed.
new text end

new text begin Subd. 2. new text end

new text begin Application; financial qualification. new text end

new text begin (a) An applicant for a permit for a waste
tire facility must submit in an application to the commissioner:
new text end

new text begin (1) information demonstrating the applicant's financial qualification to design, construct,
operate, maintain, and close a waste tire facility; and
new text end

new text begin (2) cost estimates for:
new text end

new text begin (i) site investigation;
new text end

new text begin (ii) land acquisition costs, including financing terms and costs;
new text end

new text begin (iii) project design;
new text end

new text begin (iv) construction;
new text end

new text begin (v) operations;
new text end

new text begin (vi) maintenance; and
new text end

new text begin (vii) facility closing.
new text end

new text begin (b) An 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 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 Subd. 3. new text end

new text begin Financial qualification review. new text end

new text begin The commissioner may provide to the state
auditor 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
auditor 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 Subd. 4. new text end

new text begin Changes affecting financial qualification. new text end

new text begin (a) 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 (b) A change is significant under paragraph (a) if the change:
new text end

new text begin (1) has the potential to affect the financial qualification of the permit holder, owner, or
operator; or
new text end

new text begin (2) would result in a change in the identity of the permit holder, owner, or operator for
purposes of financial qualification.
new text end

new text begin The commissioner may, after reviewing the changes, 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 Subd. 5. new text end

new text begin Application. new text end

new text begin (a) 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 (b) This section does not apply to political subdivisions operating a waste tire facility.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to waste tire facilities issued a permit on or after that date.
new text end

Sec. 2. new text beginFINANCIAL ASSURANCE STUDY FOR WASTE TIRE FACILITIES.
new text end

new text begin The commissioner of the Pollution Control Agency shall update the financial assurance
required of owners and operators of permitted waste tire facilities and submit a report to
the chairs and ranking minority members of the legislative committees with jurisdiction
over environmental policy and finance that includes the following:
new text end

new text begin (1) the calculation that went into the updated financial assurance requirements of waste
tires and tire-derived products stored at the waste tire facility;
new text end

new text begin (2) waste tire processing capacity statewide; and
new text end

new text begin (3) a review of additional options for financial assurance mechanisms.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end