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STATE OF CALIFORNIA Governor CALIFORNIA INTEGRATED WASTE MANAGEMENT BOARD 8800 Cal Center Drive JUN 2 6 1992 Sacramento, California 95826 ENVIRONMENTAL H EA LT m� PERMIT/SERVICES Pursuant to Public Resources Code section 43040, the California Integrated Waste Management Board (Board) has adopted "Financial Responsibility for Operating Liability Claims" regulations. These regulations were approved by the Office of Administrative Law and filed with the Secretary of State on April 2, 1992, and are identified as Title 14, California Code of Regulations (CCR), Division 7, Chapter 5, Article 3.3. This Article requires operators of solid waste disposal facilities to demonstrate adequate financial ability to compensate third parties for bodily injury and property damage caused by facility operations prior to closure. It must be noted that the Board has determined that adequate coverage must include coverage for pollution exposures. Operators of all solid waste disposal facilities are required to comply with the requirements of this Article upon application for issuance, modification, revision or review of a solid waste facilities permit commencing July 1, 1992. Amendments to this Article were filed with the Secretary of State as Emergency Regulation package on May 19, 1992. In brief, the amendments to Title 14, CCR, Division 7, Chapter 5, Article 3.3, sections 18232 and 18240 are as follows: Section 18232. Amount of Required Coverage The emergency regulation amendment adds a new section (a)(6), which identifies that the minimum aggregate level of coverage for one facility is one million dollars ($1,000,000). Section 18240. Insurance and Environmental Fund The emergency regulation amendment reduces the minimum initial payment into the environmental liability fund in section (d)(3) from $400,000 to $200,000. This is directly related to the amendment identified for section 18232. Section 18240 arrives at the $200,000 initial payment by dividing the minimum aggregate liability coverage of one million dollars (1,000,000) by the maximum pay -in period of five years. We hope that this information will be helpful in your process of complying with the regulations. If you have any questions regarding this new Article, please call me at (916) 255-2440 or Richard Castle of my staff at (916) 255-2446. Sinc rely, arth C. Ad*as4 Manager, Financial Assurances Section Permitting and Compliance Division -- Printed on Recycled Paper --