Financial Assurance Hands-On Training

1. Financial Assurance Hands-On Training 2010 RCRAInfo National Users Conference

2. Mira NeumillerColorado----------------------------------------------------------Carrie JacobsonSouth Dakota

3. Financial Assurance Module • Delayed Version 4 Implementation. User Guidance in September 2009 • Hazardous secondary materials are included in v5. See §261.143(f) and §264.147(a)(6) • Tracks cost estimate and mechanisms history. Not meant to be a compliance checklist for yearly submittals, but compliance for continuous and adequate coverage can be determined from the database. • FA module is a required module. All data except Hazardous Secondary Materials to be enter by the end of this fiscal year. No historical data needs to be entered. • Enter a USITS Issue question if you are not sure how to enter financial assurance information.

4. Cost Estimates • Each financial assurance type (FA_Type) identifies the total cost estimate amount for that type. • A - Corrective Action (§264.101 or in orders) • B - Sudden and Non-Sudden Third Party Liability • C - Closure (Permitted §264.143, Interim Status §265.143, Standardized Permit §267.143) • N - Non-Sudden Third-Party Liability (For Permitted §264.147, Interim Status §265.147) • P - Post-Closure Care (Permitted §264.145, Interim Status §265.145) • S - Sudden Third-Party Liability (Permitted §264.147, Interim Status §265.147, Standardized Permit §267.147, Hazardous Secondary Materials §261,147) Note: Document various units or areas in the AREA/UNIT NOTES field

5. Mechanisms • A single mechanism may address multiple facilities and multiple or partial financial assurance types • If a mechanism addresses multiple facilities, a separate mechanism record must be entered for each EPA ID covered. If a mechanism addresses multiple FA Types, just one mechanism record should be entered and linked to the applicable financial assurance types. • Implementer-defined mechanism types are allowed. HQ-defined mechanisms are as follows: • T - Trust Fund (fully funded) • P - Trust Fund (pay-in-trust) • S - Surety Bond Guaranteeing Performance • B - Surety Bond Guaranteeing Payments to a Trust Fund • L - Letter of Credit • F - Financial Test • C - Corporate Guarantee • I - Insurance • X - Standby Trust Fund (associated with the surety bonds or letter of credit)

6. Data Entry Guidance - General • Don’t enter CBI information • Notes are always confidential and not included on public reports. • In RCRAInfo, use the Cost Estimate path to add mechanisms • RCRAInfo was designed to maintain cost estimate history, therefore the cost estimate date will not be editable. If a correction to this date is needed, please submit a USITS request.

7. Data Entry - General • Since owners and operators are not required to submit cost estimates with annual inflation adjustments to the regulatory agency, entering these adjustments into RCRAInfo is optional (See FT/CG Slide) . • Adjusted cost estimates required within 30 days of changes to the closure or post-closure plan being approved that increase the cost of these activities. These adjustments should be entered into RCRAInfo using “REVISED COST ESTMATE” as the REASON. • You must take the issuer’s name directly from the mechanism and enter it exactly as written into the PROVIDER field (do not abbreviate, unless abbreviated on the mechanism).

8. Data Entry - Mechanism ID • MECHANISM IDENTIFICATION field identifies the number assigned to the mechanism, such as a bond number or insurance policy number. • If mechanism identifier or number is considered proprietary by the facility, (e.g., for a letter of credit) it should not be entered into this data field. • However, where this mechanism is considered proprietary and other states or regions also use the same mechanism, the last four digits of the mechanism number should be entered .

9. Test or Corporate Guarantee Data Entry • The EFFECTIVE DATE is the last date of the fiscal year covered by the last submission. • The EXPIRATION DATE would be one year from the effective date. • The FINANCIAL ASSURANCE PROVIDER is the company providing the financial test or guarantee. • FACE VALUE is the total dollar value of the Test or Guarantee and not the dollar value being assured in the state or region in which the Test or Guarantee is submitted.

10. Test or Corporate Guarantee Data Entry (cont.) • Current cost estimates will be shown in the Chief Financial Officer’s letter that must be submitted with the financial test documentation and should be entered into the COST ESTIMATE AMOUNT. • Enter the year the mechanism was submitted as the first part of the IDENTIFICATION . • For example: “2009”, or “2009 Test”, or “2009 March 31 Test”

11. Group ExerciseSK-Sioux Falls (SDD000716696)

12. FA Required Universe Calculation • FA_REQUIRED (HREPORT_UNIV5) ’ACPSN’ is a system calculated field. • A – Corrective Action • If the facility is permitted (has a legal status of “PI”) and has a facility wide or at least one unit with a CA400: Remedy Decision event and there is no facility wide CA999%: Corrective Action Process Terminated. • C – Closure • If the active site flag contains a “P” (Permit Activity) and • in the Closure Workload Universe or Permit Workload Universe. • P – Post-Closure Care • If the active site flag contains a “P” (Permit Activity) and • in the Post-Closure Workload Universe. • S – Sudden Third-Party Liability • If the active site flag contains a “P” (Permit Activity) and • in the Closure Workload or Permit Workload Universe. • N – Non-Sudden Third-Party Liability • If the active site flag contains a “P” (Permit Activity) and in the Closure Workload or Permit Workload Universe with a Land Disposal Process. Note: Federal and State government facilities are not required to maintain financial assurance, therefore, for all facilities with the Land Type of “F” (Federal) or “S” (State) the FA Required field will be set to “-----”.

13. Reports • Comprehensive Financial Assurance Report • This report will provide a comprehensive view of financial assurance information. • Current Financial Assurance Coverage Report • This report lists the current mechanism and cost estimate information for facilities where financial assurance is required. • Financial Assurance Mechanism Expiration Date tickler Report • This report lists current financial assurance mechanisms with a future expiration date in the user provided date range for all facilities that meet the additional selection criteria.

14. Reports (cont.) • Financial Assurance Providers Report • This report lists facilities, mechanisms, and cost estimate information where financial assurance mechanisms were issued by the same provider. • Financial Assurance Required Report • This report lists facilities who are lacking required financial assurance. • Financial Test and Corporate Guarantee Report • This report provides a summary of financial assurance cost estimates, environmental obligation amounts and face value amounts

15. FA Required? - NOT • Are facilities or financial assurance types showing up on your Financial Assurance Required Report that are not correct? Here are some ways to track down data cleanup issues from the FA_REQUIRED (HREPORT_UNIV5) field. • Run Financial Assurance Required Report to identify errors. • For Closure, Post-Closure, and Liability errors • Run Region 6’s RCRA Universe Report • Select Active Site Universe: Active Site Universe: Permitting Activities • Select Permit Progress Universe: In Permit Progress Universe • Verify Legal and Operating status code combinations for appropriate universe (RCRAInfo Technical Help. • Example - Closure universe included PCCA as a valid combination. Entered appropriate Leg/OP codes for these units PCCP. • Example – PCCC entered USITS request as strange but true. • For Corrective Action errors • Determine if legal status is PI and • Check corrective action events for facility wide area or all areas with a CA400% to verify all Corrective Action Process Terminated events are appropriately linked.

16. Financial Assurance Required Report

17. R6 Universe Report

18. RCRAInfo - Units List

19. Closure Workload Universe

20. Hands-on Exercises FINANCIAL TEST FOR US STEEL TO STATE OF INDIANA Cost Estimate Amount Gary Works - IND005444062 Closure Cost 10,867,610 6,500,489 4,539,858 $21,907,957. Post-Closure Cost 2,152,302 1,399,544 $3,555,846. Corrective Action 6,229,320 3,564,437 $9,793,757 Cost Estimate Amount Midwest Plant – INR000109017 Closure Cost $ 2,079,547 Post-Closure Cost: $1,398,750 Sudden and Non-Sudden Liability for both facilities • Provider: United States Steel Corporation • Face Value= $73,661,862. • Effective Date: 04/01/2008 • Expiration Date: 04/01/2009 • Identification: 2009 Test

21. Questions?