General
Overview
Owners or operators of hazardous and commercial nonhazardous
industrial solid waste facilities should refer to
Subchapter 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.
Cost
Estimates
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.
