Financial Assurance for Landfills
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.
THE CURRENT INFLATION FACTOR IS 3.097%
DEFLATOR/MULTIPLIER = 1.031
DEFLATOR/MULTIPLIER = 1.031
(Effective July 2008)
