(a) An owner or operator of a facility for which corrective action under department oversight is required shall include a corrective action cost estimate in any corrective measures study submitted to the department pursuant to an order issued or agreement entered into pursuant to Section 25187 for a release, as defined in Part 2 (commencing with Section 78000) of Division 45, of hazardous waste, hazardous waste constituents, or hazardous substances, as defined in Part 2 (commencing with Section 78000) of Division 45, into the environment from the facility.

(b) An owner or operator of a facility for which corrective action under department oversight is required shall demonstrate financial assurances within 90 days of the department’s approval of a corrective action cost estimate as required by subdivision (a), or by Section 25246.1, and shall maintain financial assurances until the department determines that all required corrective actions are complete.

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(c) (1) For purposes of subdivision (b), an owner or operator of a facility for which corrective action under department oversight is required shall demonstrate and maintain one or more of the financial assurance mechanisms set forth in subdivisions (a) to (e), inclusive, of Section 66265.143 of Title 22 of the California Code of Regulations.

(2) (A) As an alternative to the financial assurance requirement of paragraph (1), an owner or operator of a facility for which corrective action under department oversight is required may demonstrate and maintain financial assurances by means of a financial assurance mechanism other than those described in paragraph (1), if the alternative financial assurance mechanism has been submitted to, and approved by, the department as being at least equivalent to the financial assurance mechanisms described in paragraph (1).

(B) The department shall evaluate the equivalency of the proposed alternative financial assurance mechanism principally in terms of the certainty of the availability of funds for required corrective action activities and the amount of funds that will be made available. The department shall require the owner or operator of the facility to submit any information deemed necessary by the department to make a determination regarding the equivalency of the proposed alternative financial assurance mechanism.

(d) The department shall waive the financial assurances required by subdivision (b) if the owner or operator of the facility is a federal or state governmental entity.

(e) An owner or operator may satisfy the requirements of this section by demonstrating to the department that it has provided financial assurance for corrective action to the State Water Resources Control Board or a California regional water quality control board for the same release identified by the department.

(f) For facilities for which sole jurisdiction has been granted pursuant to subdivision (b) of Section 25204.6, the department shall not require additional financial assurances unless it is the lead agency or is directed by the lead agency that has sole jurisdiction pursuant to subdivision (b) of Section 25204.6. This section does not alter the State Water Resources Control Board’s rules and regulations regarding financial assurances.

(Amended by Stats. 2022, Ch. 258, Sec. 49. (AB 2327) Effective January 1, 2023. Operative January 1, 2024, pursuant to Sec. 130 of Stats. 2022, Ch. 258.)