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9VAC25-32-780. Liability requirements.

A. A permit holder or applicant must demonstrate financial responsibility for clean-up costs, personal injury, bodily injury, and property damage resulting from the transport, storage, and land application of biosolids in Virginia. The permit holder or applicant must have and maintain pollution liability and general liability coverage in the amount of $2 million per occurrence with an annual aggregate of at least $2 million, exclusive of legal defense costs.

B. The permit holder or applicant may demonstrate the required liability coverage by using one of the mechanisms specified below:

1. A pollution liability policy as well as a general liability policy that covers all activities associated with the "Transport, Storage, and Land Application" of biosolids as specified in 9VAC25-32-790;

2. Passing a corporate financial test as specified in 9VAC25-32-800 or using the corporate guarantee for liability coverage as specified in 9VAC25-32-810;

3. Passing a local government financial test as specified in 9VAC25-32-820 or using the local government guarantee for liability coverage as specified in 9VAC25-32-830;

4. Obtaining a letter of credit for liability coverage as specified in 9VAC25-32-840; or

5. Obtaining a trust fund for liability coverage as specified in 9VAC25-32-850.

C. The permit holder or applicant shall notify the department in writing within 30 days whenever:

1. A claim results in a reduction in the amount of financial assurance for liability coverage provided by a financial instrument authorized in this section;

2. A certification of valid claim for bodily injury or property damages caused by the transport, storage, or land application of biosolids in Virginia is entered between the owner or operator and a third-party claimant for liability coverage in this section; or

3. A final court order establishing a judgment for bodily injury or property damage caused by the transport, storage, or land application of biosolids in Virginia is issued against the permit holder or applicant or an instrument that is providing financial assurance for liability coverage authorized in this section.

Statutory Authority

62.1-44.15 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 29, Issue 24, eff. September 1, 2013.


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