N.C. Division of Waste Management

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Financial Assurance Program
The Financial Assurance Program is based on the Financial Assurance Rule .1628 which requires owners/operators of municipal solid waste landfills (MSWLFs), operating after April 9, 1994, to demonstrate that the owner/operator will have the funds necessary to properly close, provide 30 years of post-closure maintenance, and fund any corrective action costs for the permitted landfill. The rules describe 6 different "mechanisms" that owners/operators of MSWLFs can use to demonstrate financial assurance. The six mechanisms are as follows:

Local Government Financial Test

The local government financial test consists of three components: a financial component, a public notice component, and a record-keeping and reporting component.

Trust Fund (also used for Standby Trust Agreement)

Surety Bond Guaranteeing Payment or Surety Bond Guaranteeing Performance

Letter of Credit

Insurance

Capital Reserve Fund

Five of these mechanisms are third-party instruments allowable for privately owned or publicly owned landfills, while the sixth is a financial test for local government use only. A Guidance document, explaining these mechanisms, is available.