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(415 ILCS 135/45)
(a) The insurance account shall offer financial assurance for a qualified
or operator of a drycleaning facility under the terms and conditions provided
for under this Section. Coverage may be provided to either the owner or the
operator of a drycleaning facility. Neither the Agency nor the
Council is required to resolve whether the owner or operator, or both,
are responsible for a release under the terms of an agreement between
the owner and operator.
(b) The source of funds for the insurance account shall be as follows:
(1) moneys allocated to the
(2) moneys collected as an insurance premium,
including service fees, if any; and
(3) investment income attributed to the insurance
(c) An owner or operator may purchase
coverage of up to $500,000 per drycleaning facility subject to the terms and
conditions under this Section and those adopted by the Council before July 1, 2020 or by the Board on or after that date. Coverage
shall be limited to remedial action costs associated with soil and
groundwater contamination resulting from a release of drycleaning solvent
at an insured drycleaning facility, including third-party liability for soil
and groundwater contamination. Coverage is not provided for a release
that occurred before the date of coverage.
owner or operator, subject to underwriting requirements and terms
and conditions deemed necessary and convenient by the Council for periods before July 1, 2020 and subject to terms and conditions deemed necessary and convenient by the Board for periods on or after that date, may
purchase insurance coverage from the insurance account provided that:
(1) a site investigation designed to identify soil
and groundwater contamination resulting from the release of a drycleaning solvent has been completed for the drycleaning facility to be insured and the site investigation has been found adequate by the Council before July 1, 2020 or by the Agency on or after that date;
(2) the drycleaning facility is participating in and
meets all drycleaning compliance program requirements adopted by the Board pursuant Section 12 of this Act;
(3) the drycleaning facility to be insured is
licensed under Section 60 of this Act and all fees due under that Section have been paid;
(4) the owner or operator of the drycleaning facility
to be insured provides proof to the Agency or Council that:
(A) all drycleaning solvent wastes generated at
the facility are managed in accordance with applicable State waste management laws and rules;
(B) there is no discharge of wastewater from
drycleaning machines, or of drycleaning solvent from drycleaning operations, to a sanitary sewer or septic tank, to the surface, or in groundwater;
(C) the facility has a containment dike or other
containment structure around each machine, item of equipment, drycleaning area, and portable waste container in which any drycleaning solvent is utilized, that is capable of containing leaks, spills, or releases of drycleaning solvent from that machine, item, area, or container, including: (i) 100% of the drycleaning solvent in the largest tank or vessel; (ii) 100% of the drycleaning solvent of each item of drycleaning equipment; and (iii) 100% of the drycleaning solvent of the largest portable waste container or at least 10% of the total volume of the portable waste containers stored within the containment dike or structure, whichever is greater;
(D) those portions of diked floor surfaces at the
facility on which a drycleaning solvent may leak, spill, or otherwise be released are sealed or otherwise rendered impervious;
(E) all drycleaning solvent is delivered to the
facility by means of closed, direct-coupled delivery systems; and
(F) the drycleaning facility is in compliance
with paragraph (2) of subsection (d) of this Section; and
(5) the owner or operator of the drycleaning facility
to be insured has paid all insurance premiums for insurance coverage provided under this Section.
Petroleum underground storage tank systems that are
in compliance with applicable USEPA and State Fire Marshal rules, including, but not limited to, leak detection system rules, are exempt from the secondary containment requirement in subparagraph (C) of paragraph (3) of this subsection (d).
(e) The annual premium for insurance coverage shall be:
(1) For the year July 1, 1999 through June 30, 2000,
$250 per drycleaning facility.
(2) For the year July 1, 2000 through June 30, 2001,
$375 per drycleaning facility.
(3) For the year July 1, 2001 through June 30, 2002,
$500 per drycleaning facility.
(4) For the year July 1, 2002 through June 30, 2003,
$625 per drycleaning facility.
(5) For each subsequent program year through the
program year ending June 30, 2019, an owner or operator applying for coverage shall pay an annual actuarially-sound insurance premium for coverage by the insurance account. The Council may approve Fund coverage through the payment of a premium established on an actuarially-sound basis, taking into consideration the risk to the insurance account presented by the insured. Risk factor adjustments utilized to determine actuarially-sound insurance premiums should reflect the range of risk presented by the variety of drycleaning systems, monitoring systems, drycleaning volume, risk management practices, and other factors as determined by the Council. As used in this item, "actuarially sound" is not limited to Fund premium revenue equaling or exceeding Fund expenditures for the general drycleaning facility population. Actuarially-determined premiums shall be published at least 180 days prior to the premiums becoming effective.
(6) For the year July 1, 2020 through June 30, 2021,
and for subsequent years through June 30, 2029, $1,500 per drycleaning facility per year.
(7) For July 1, 2029 through January 1, 2030, $750
per drycleaning facility.
(f) If coverage is purchased for any part of a year, the purchaser shall pay
the full annual premium. Until July 1, 2020, the insurance premium is fully earned upon issuance
of the insurance policy. Beginning July 1, 2020, coverage first commences for a purchaser only after payment of the full annual premium due for the applicable program year.
(g) Any insurance coverage provided under this Section shall be subject to a
(h) A future repeal of this Section shall not terminate
obligations under this Section or authority necessary to administer the
obligations until the obligations are satisfied, including but not limited to
the payment of claims filed prior
to the effective date of any future repeal against the insurance account until
moneys in the account are exhausted. Upon exhaustion of the
moneys in the account, any remaining claims shall be invalid. If moneys remain
in the account following
satisfaction of the obligations under this Section,
the remaining moneys and moneys due the account shall be deposited in the remedial action account.
(Source: P.A. 101-400, eff. 12-31-19 (See Section 5 of P.A. 101-605 for effective date of P.A. 101-400); 101-605, eff. 12-31-19.)