Regulations: Title 14, Natural Resources--Division 7, CIWMB

Chapter 6. Permitting of Waste Tire Facilities and Waste Tire Hauler Registration

Article 11. Financial Assurances Enforcement Procedures for Major Waste Tire Facilities

Note:

Authority cited:
Section 40502, 42850 and 42850.1, Public Resources Code.

Reference:
Section 40502, 42850 and 42850.1, Public Resources Code.

Section 18499.2. Definitions.
(a) "Degree of non-compliance" means the status of compliance of an operator with the financial assurance requirements. An operator is either: 1) partially out of compliance with the requirements ("Minor"); or 2) completely out of compliance with the requirements ("Major").

(b) "Potential for harm" means the degree to which operator's actions adversely affect the public health, safety and the environment. This potential is based on the number of tires for which that facility is permitted.

(1) Major: 1,000,001 tires or more, or tire equivalents.

(2) Moderate: 200,001 to 1,000,000 tires or tire equivalents.

(3) Minor: 5000 to 200,000 tires or tire equivalents.

Note:

Authority cited:
Sections 40502, 42850 and 42850.1, Public Resources Code.

Reference:
Sections 40502, 42850 and 42850.1, Public Resources Code.

Section 18499.3. Notice of Violation.
(a) The CIWMB shall send a written Notice of Violation to an operator violating the requirements of Articles 9 or 10 of this Chapter (commencing with section 18470).

(b) The Notice of Violation shall:

(1) describe the violation which CIWMB staff believe is ocurring; and

(2) describe the consequences of continued failure to comply or respond.

(c) All operators shall submit a response to a Notice of Violation within 10 working days from receipt of the Notice of Violation.

(d) The CIWMB may consider all contacts with an operator as "good faith" efforts to comply with this Chapter, and the CIWMB may extend the timeframe for an operator to respond and/or comply, as the CIWMB deems necessary, to assure adequate financing for closure activities and operating liability.

Note:

Authority cited:
Sections 40502, 42850 and 42850.1, Public Resources Code.

Reference:
Sections 40502, 42850 and 42850.1, Public Resources Code.

Section 18499.4. Issuance of Notice and Order, Cleanup and Abatement Order, and/or Stipulated Notice and Order.
(a) If an operator fails to respond to the Notice of Violation within the specified timeframe, the CIWMB shall draft and send a Notice and Order or Cleanup and Abatement Order to the operator.

(b) An operator shall respond to the CIWMB with evidence of compliance, or request an alternate schedule for compliance, within 10 working days from receipt of the Order.

(c) If an operator responds to the Order by offering partial compliance immediately, and full compliance over a period of time, which is acceptable to the CIWMB, the CIWMB may enter into a Stipulated Notice and Order with the operator.

(d) If an operator fails to conform with the compliance schedule within the specified timeframe as provided in the Notice and Order, Cleanup and Abatement Order or Stipulated Notice and Order, further enforcement action may be taken by the CIWMB, as specified in the Notice and Order, Cleanup and Abatement Order, or Stipulated Notice and Order.

Note:

Authority cited:
Sections 40502, 42850 and 42850.1, Public Resources Code.

Reference:
Sections 40502, 42850 and 42850.1, Public Resources Code.

Section 18499.5. Compliance Options.
(a) The CIMWB may consider compliance options other than imposing penalties, to assure adequate financing for closure activities and operating liability. The CIWMB may consider options that include, but are not limited to:

(1) Placing restrictions on current financial assurance mechanism(s) being used by the operator such as more frequent reporting requirements.

(2) Prohibiting use of current financial assurance mechanism(s) being used by the operator, and requiring the operator to establish an alternate mechanism as prescribed in section 18473 and 18488 of this Title.

Note:

Authority cited:
Sections 40502, 42850 and 42850.1, Public Resources Code.

Reference:
Sections 40502, 42850 and 42850.1, Public Resources Code.

Section 18499.6. Penalty Calculations.
(a) If the CIWMB chooses to impose a penalty, the daily penalty shall equal an amount determined by the gravity-based matrix, in Table 1, using the degree of non-compliance and the potential for harm as the deciding factors, added to the economic benefit an operator receives from noncompliance with this Chapter.

Table 1.

(1) The economic benefit portion of penalty for lack of liability coverage shall be based on a minimum annual premium for liability insurance, as identified by a CIWMB survey of the insurance industry. The premium is multiplied by the number of years an operator is out of compliance (rounded up to the next whole year if a partial year of non-compliance exists).

(2) The economic benefit portion of a penalty for lack of coverage for closure costs shall be based on the current cost of a letter of credit or bond, as identified by a CIWMB survey of the banking industry or insurance industry, respectively. The cost for a letter of credit or bond is multiplied by the pro-rata factor for the length of time of non-compliance.

(b) Determinations of penalty amounts may be modified by the CIWMB for one or more of the following reasons:

(1) Evidence that coverage has been subsequently provided, such as bank statements, letter from county treasurer verifying balance of fund, certificate demonstrating adequate coverage, etc.

(2) Evidence of a payment schedule, if applicable, detailing the operator's good faith efforts has been subsequently provided, such as past deposits to the financial assurance mechanism, etc.

(3) An operator's good faith efforts to comply or lack of good faith.

(4) An operator's degree of willingness to comply.

(5) An operator's history of compliance.

(6) Other unique factors such as size of operation, threat to public health and safety and the environment.

(c) Penalties may be pursued by the CIWMB administratively or through superior court as specified in Public Resources Code, sections 42850 and 42850.1.

Note:

Authority cited:
Sections 40502, 42850 and 42850.1, Public Resources Code.

Reference:
Sections 40502, 42850 and 42850.1, Public Resources Code.

Section 18499.7. Processing and Collection of Civil Penalty.
Processing and collection of civil penalties shall be made by the CIWMB as provided in Public Resources Code Section 42855.

Note:

Authority cited:
Sections 40502, 42850 and 42850.1, Public Resources Code.

Reference:
Sections 40502, 42850 and 42850.1, Public Resources Code.

Section18499.8. Appeals Process.
Any aggrieved person may appeal a Notice and Order or Cleanup and Abatement Order by the CIWMB, according to Public Resources Code, section 42854.

Note:

Authority cited:
Sections 40502, 42850 and 42850.1, Public Resources Code.

Reference:
Sections 40502, 42850 and 42850.1, and 42854, Public Resources Code.

Section 18499.9. Continued or Recurring Violations.
(a) If an operator pays an initial penalty by fails to correct the violation pursuant to Notice and Order or Cleanup and Abatement Order, or has recurring violations within a one year period from the date of the preceding Notice of Violation:

(1) the CIWMB may re-initiate the enforcement process;

(2) the CIWMB may pursue action to revoke a permit, according to Public Resources Code section 42843, and/or pursue closure of the facility;

(3) the CIWMB may pursue both (1) and (2) above.

Note:

Authority cited:
Sections 40502, 42850 and 42850.1, Public Resources Code.

Reference:
Sections 40502, 42843, 42850, and 42850.1, Public Resources Code.

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