Frequent Questions

Can an owner or operator of a treatment, storage, or disposal facility (TSDF) use multiple mechanisms per facility to comply with the financial assurance requirements in 40 CFR Part 264, Subpart H?

An owner or operator may combine certain financial assurance mechanisms to cover the cost of closure and post-closure care for a facility.  For example, an owner or operator can combine trust funds, payment surety bonds, insurance policies, and letters of credit to meet financial assurance requirements.  performance surety bonds, financial tests, and corporate guarantees can not be used in combination to demonstrate assurance.  (See Part 264.143(g) and 264.145(g).)

The mechanisms used must be as specified in paragraphs (a), (b), (d), and (e), respectively, of 264.143(g) and 264.145, except it is the combination of mechanisms, rather than the single mechanism, which must provide financial assurance for an amount at least equal to the current closure or post-closure cost estimate, respectively.  In addition, the wording of each mechanism or instrument, must be identical to the examples in 40 CFR 264.151.

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