SECTION 37.41. Use of Multiple Financial Assurance Mechanisms

(a) An owner or operator may satisfy the requirements of this chapter by establishing more than one financial assurance mechanism per facility. These mechanisms are limited to those specified in this chapter. For closure, post closure, or corrective action, the financial test or corporate guarantee may not be combined with another mechanism. For liability coverage, the owner or operator may not combine a financial test covering part of the liability coverage requirement with a guarantee unless the financial statement of the owner or operator is not consolidated with the financial statement of the guarantor.

(b) It shall be the combination of mechanisms, rather than the single mechanism, which shall provide financial assurance for an amount that must be at least equal to the minimum financial assurance requirements of this chapter.

(c) If an owner or operator uses a trust fund in combination with a surety bond or irrevocable standby letter of credit, the owner or operator may use that trust fund as the standby trust fund for the other mechanisms.

(d) A single standby trust may be established for two or more mechanisms.

(e) The executive director may call on any or all of the mechanisms to satisfy the requirements for which financial assurance was provided.

(f) If an owner or operator demonstrates the required liability coverage through the use of a combination of financial assurance mechanisms, the owner or operator shall specify at least one such assurance as "primary" coverage and shall specify other assurance as "excess."

Source Note: The provisions of this §37.41 adopted to be effective December 30, 1996, 21 TexReg 12297; amended to be effective March 21, 2000, 25 TexReg 2347