Financial Assurance for Municipal Solid Waste Facilities
Owners or operators of municipal solid waste facilities should refer to Subchapter R of Chapter 37 which establishes requirements and mechanisms for demonstrating financial assurance for closure, post closure, and corrective action coverage. The amount of financial assurance required is determined by the Municipal Solid Waste (MSW) Permits Section and is discussed in further detail under Cost Estimates below.
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.
In the case of closure and post-closure, financial assurance mechanisms must be submitted at least 60 days prior to acceptance of waste. For corrective action, financial assurance mechanisms must be submitted no later than 120 days after the corrective action remedy has been selected.
Questions? We Can Help
If you have questions about financial assurance for MSW Permits, please contact us.
Closure and post-closure cost estimates for permitted MSW facilities are reviewed by the MSW 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 MSW Permits Section. For more information, please contact our Waste Permits Division at 512/239-2334 and ask to speak to a permit coordinator in the MSW Permits Section.
Types of Financial Assurance Mechanisms
Closure and post-closure 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.
Corrective Action coverage: Mechanisms available for closure and post closure can also be used for corrective action except for payment bonds and insurance.
Annual Inflation Adjustments
Annual inflation adjustments are required during the active life of the facility and during the post closure care period.
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.