Section 900.701  Scope, Applicability, and Definitions

a)         This Subpart provides procedures by which the owner of a new or modified livestock waste lagoon registered under the Livestock Management Facilities Act provides evidence of financial responsibility satisfying the requirements of Section 17 of the Livestock Management Facilities Act.

b)         Owners of lagoons must comply with the financial responsibility requirements of this Part either:

1)         on or before June 1, 1999; or

2)         before the lagoon is placed in service.

c)         For the purposes of this Subpart, the following terms have the following meanings:

1)         "Audited financial statement" means financial statements, including a balance sheet and notes to financial statements, prepared in conformity with generally accepted accounting principles following an examination conducted in accordance with generally accepted auditing standards that has attached the unqualified opinion of an independent certified public accountant licensed under Illinois law or an entity permitted to engage in the practice of public accounting under subsection (b)(3) of Section 14 of the Illinois Public Accounting Act [225 ILCS 450/14].

2)         "Financial institution" means:

A)        An insurer providing commercial or private insurance to evidence financial responsibility for lagoon closure in accordance with Section 900.709 of this Part;

B)        A guarantor providing a guarantee as evidence of financial responsibility for lagoon closure in accordance with Section 900.710 of this Part;

C)        The issuer of a surety bond as evidence of financial responsibility for lagoon closure in accordance with Section 900.711 of this Part;

D)        The issuer of a letter of credit as evidence of financial responsibility for lagoon closure in accordance with Section 900.712 of this Part; or

E)        The livestock waste lagoon closure fund managed by the Illinois Farm Development Authority that evidences financial responsibility for lagoon closure in accordance with Section 900.714 of this Part.

3)         "Guarantor" means a person who assumes all or part of the obligations of a lagoon owner for closure of a lagoon in accordance with Section 900.710 of this Part.  For purposes of this definition, the owner of the lagoon may be the guarantor provided adequate resources exist to guarantee the closure costs in accordance with Section 900.710 of this Part.

4)         "Level of surety" means the level, calculated in accordance with Section 900.703 of this Part, at which evidence of financial responsibility must be provided.

5)         "Surety instrument" means any of the devices listed in Section 900.702 of this Part by which a lagoon owner evidences financial responsibility for lagoon closure.  Unless the context requires otherwise, "surety instrument" includes a combination of surety instruments.