(a) Financial Assurance for Closure.

(1) The owner or operator must have a detailed written estimate, in current dollars, of the cost of hiring a third party to close the largest area of the facility requiring closure as required under the regulations issued pursuant to this subchapter and the permit during the active life of the facility in accordance with the closure plan.

(2) The cost estimate shall equal the cost of closing the largest area of any solid waste management facility requiring closure at any time during its active life when the extent and manner of its operation would make closure the most expensive, as indicated by its closure plan.

(3) During the active life of the solid waste management facility, the owner or operator shall annually adjust the closure cost estimate for inflation.

(4)

(A) The owner or operator shall establish financial assurance for closure of any permitted solid waste management facility in compliance with the regulations issued pursuant to this subchapter and the permit.

(B) The owner or operator of any solid waste management facility shall provide continuous financial assurance coverage for closure until released from financial assurance requirements by demonstrating compliance with regulations issued pursuant to this subchapter and the permit.

(C) The amount of financial assurance shall be in accordance with § 8-6-1002(e) and the regulations issued in that subsection.

(b) Financial Assurance for Post-closure Care.

(1) The owner or operator shall have a detailed written estimate, in current dollars, of the cost of hiring a third party to conduct post-closure care in compliance with the post-closure plan developed under the regulations issued pursuant to this subchapter and the permit.

(2) The cost estimate for post-closure care shall be based on the most expensive costs of post-closure care during the post-closure care period.

(3) During the active life of the solid waste management facility and during the post-closure care period, the owner or operator shall annually adjust the post-closure cost estimate for inflation.

(4)

(A) The owner or operator shall establish financial assurance for costs of post-closure care of any permitted solid waste management facility in compliance with regulations issued pursuant to this subchapter and the permit.

(B) The owner or operator of any solid waste management facility shall provide continuous financial assurance coverage for post-closure care until released from financial assurance requirements for post-closure care by demonstrating compliance with regulations issued pursuant to this subchapter and the permit.

(c) Financial Assurance for Corrective Action.

(1) The owner or operator, if required to undertake a corrective action program under regulations issued pursuant to this subchapter, shall have a detailed written estimate, in current dollars, of the cost of hiring a third party to perform the corrective action in accordance with regulations issued pursuant to this subchapter.

(2)

(A) The owner or operator of any solid waste management facility shall establish financial assurance for the most recent corrective action program.

(B) The owner or operator shall provide continuous coverage for corrective action until released from financial assurance requirements for corrective action by demonstrating compliance with regulations issued pursuant to this subchapter.

(d) Allowable Mechanisms.

(1) The mechanisms used to demonstrate financial assurance under this section shall ensure that the funds necessary to meet the costs of closure, post-closure care, and corrective action for known releases will be available whenever they are needed.

(2) The financial mechanisms shall be legally valid, binding, and enforceable under state and federal law.

(3) Owners and operators shall choose from the options specified in regulations issued pursuant to this subchapter.

(4)

(A) A municipality or county that owns or operates a solid waste management facility receiving any non-Resource Conservation and Recovery Act, Subtitle D waste may, in lieu of a performance bond, execute a contract of obligation with the Director of the Arkansas Department of Environmental Quality.

(B) The contract of obligation shall be a binding agreement on the municipality or county, allowing the director or his or her designee to collect any general revenues being disbursed or to be disbursed from the state to the municipality or county on the failure of the municipality or county to fulfill the financial assurance requirements of this subchapter and regulations issued pursuant to this subchapter.

(C) To assure that adequate funds necessary to meet the estimated costs for closure and post-closure care of any non-Resource Conservation and Recovery Act, Subtitle D solid waste management facility are available whenever they are needed, the estimated annual general revenue amount pledged under a contract of obligation shall be at least equal to but not less than the estimated annual cost for closure and post-closure care to satisfy the financial assurance requirements for closure and post-closure care of this subchapter.