Financial Assurance for Industrial Solid Waste Facilities (Hazardous and Nonhazardous)
Owners or operators of hazardous and commercial nonhazardous industrial solid waste facilities should refer to Chapter P of Chapter 37 which establishes requirements and mechanisms for demonstrating financial assurance for closure, post closure, corrective action and third party liability coverage. The amount of financial assurance required for closure, post closure or corrective action is determined by the Industrial and Hazardous Waste (IHW) Permits Section or Remediation Division and is discussed in further detail under Cost Estimates below. Additional financial assurance for bodily injury and property damage to third parties caused by sudden and/or nonsudden accidental occurrences arising from the operations of the facility may also be required.
Owners or operators which are state or federal government entities whose debts and liabilities are the debts and liabilities of a state or the United States are exempt. Local political subdivisions are not exempt.
Financial assurance mechanisms must be submitted at least 60 days prior to acceptance of waste.
Questions? We Can Help
If you have questions about financial assurance for IHW permits, please contact us.
Closure and post-closure costs estimates for permitted industrial and hazardous waste facilities are reviewed by the IHW Permits Section during the application review process. The required financial assurance amount is included as a provision in the permit. Any cost estimate revisions to the permit must be coordinated through the IHW Permits Section. For more information please contact our Waste Permits Division at 512/239-2334 and ask to speak to a permit project manager in the IHW Permits Section.
Corrective action cost estimates are reviewed by the Remediation Division and the required amount of financial assurance is included as a provision of the compliance plan. Any cost estimate revisions to your compliance plan must be coordinated through the Remediation Division. For more information regarding your cost estimates please contact a technical support representative in our Remediation Division at 512/239-4150.
Types of Financial Assurance Mechanisms
Closure, post-closure and corrective action coverages: A description of how various financial assurance mechanisms work and their specific criteria are set out in Subchapter C of Chapter 37. The required wording of the mechanisms can be reviewed and downloaded from Subchapter D of Chapter 37.
Third party liability coverage: A description of how various financial assurance mechanisms work and their specific criteria are set out in Subchapter F of Chapter 37. The required wording of the mechanisms can be reviewed and downloaded from Subchapter G of Chapter 37.
Annual Inflation Adjustments
Annual inflation adjustments are required during the active life of the facility.
Wording of Mechanisms
The financial assurance mechanism you submit to us must be worded exactly as set out in our Rules except that the instructions in parenthesis are to be replaced with the relevant information and the parenthesis deleted. One way to ensure that your mechanism is worded correctly is to download the document from our web site and inform your financial institution not to add or delete language. Please be advised that our agency cannot accept the financial assurance mechanism if it does not incorporate the exact language as set out in our Rules.
Universal Financial Assurance Mechanism
If you are also required to post a financial assurance demonstration for an Underground Injection Control Facility (UIC), you may combine both programs (IHW and UIC) closure demonstration on one mechanism. Please ensure that each program area is identified separately. This same methodology can also be applied to the third party liability demonstration.