2014 South Bend Financial Assurance Test Report

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SOLID WASTE LAND DISPOSAL FACILITIES (AA) be canceled; (BB) be terminated; or (CC) fail to be renewed; unless at least one hundred twenty (120) days before the event the commissioner and the permittee are notified by the insurer in writing. (C) The insurer shall either be: (i) licensed to transact the business of insurance; or (ii) eligible to provide insurance as an excess or surplus lines insurer; in one (1) or more states. (5) The financial test for restricted waste sites option, including the following: (A) This financial test is only available for restricted waste sites. To be deemed to have established financial responsibility, the permittee must meet one (1) of the following requirements: (i) All items in clause (B) ifthe permittee currently has a bond rating issued by Standard and Poor's or Moody's. (ii) Clause (B)(i) and either clause (B)(ii) or (B)(iii) if the permittee: (AA) is a public utility operating in Indiana subject to the jurisdiction of the Indiana utility regulatory commission under IC 8 -1 -2; and (BB) remits annual financial information to the commission under IC 8- 1 -2 -16. The remitted financial information is subject to examination and audit by the Indiana utility regulatory commission under IC 8- 1 -2 -17 and IC 8- 1 -2 -18. (iii) Clause (B)(i) and (B)(ii) if the permittee currently does not have a bond rating issued by Standard and Poor's or Moody's. (B) The following criteria will be used to establish financial responsibility: (i) Less than fifty percent (50 %) of the company's gross revenues are derived from waste management. (ii) The permittee meets the following four (4) tests: (AA) Two (2) of the following three (3) ratios are met: (aa) A ratio of total liabilities to net worth less than two (2.0). (bb) A ratio of the sum of net income plus depreciation, depletion, and amortization to total liabilities greater than one -tenth (0.1). (cc) A ratio of current assets to current liabilities greater than one and one -half (1.5). (BB) Net working capital and tangible net worth each at least six (6) times the sum of the current closure and current post - closure cost estimates. (CC) Tangible net worth of at least ten million dollars ($10,000,000). (DD) Assets located in the United States amounting to at least ninety percent (90 %) of the permittee's total assets or at least six (6) times the sum of the current closure and current post - closure costs estimates. (iii) The permittee meets the following four (4) tests: (AA) A current rating for the permittee's most recent bond issuance of AAA, AA, A, or BBB as issued by Standard and Poor's or Aaa, Aa, A, or Baa as issued by Moody's. (BB) Tangible net worth of at least six (6) times the sum of the current closure and current post - closure cost estimates. (CC) Tangible net worth of at least ten million dollars ($10,000,000). (DD) Assets located in the United States amounting to at least ninety percent (90 %) of the permittee's total assets or at least six (6) times the sum of the current closure and current post - closure estimates. (C) To demonstrate the financial test has been met, the permittee shall submit the following documents to the commissioner to establish financial assurance and annually within ninety (90) days after the close of each fiscal year: (i) A letter signed by the permittee's chief financial officer, demonstrating the applicable criteria have been met. (ii) A copy of an independent certified public accountant's report examining the permittee's financial statements for the latest completed fiscal year. (iii) A special report from the permittee's independent certified public accountant to the permittee stating the following: Indiana Administrative Code Page 250