General
Overview
There are different financial assurance requirements depending
upon whether you are registered as a "transporter" of used
oil or whether you are registered as a "used oil handler". A
used oil handler includes owners or operators of a used oil
transfer, processing rerefining, or off-specification used oil
burning facility. Please refer below to Types of Financial
Assurance Mechanisms for more details.
Both used oil handlers and used oil transporters should refer to
Subchapter L of Chapter 37 
which establishes requirements and
mechanisms for demonstrating financial assurance for soil
remediation and insurance. The amount of financial assurance
required is determined by the Registration and Reporting (R&R)
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.
An owner or operator who is required to provide financial assurance
must submit an originally signed financial assurance mechanism
prior to the issuance of a registration by our R&R Section. The
signed financial assurance mechanism must be in effect at the time
it is submitted.
Our Rules allow the term "soil remediation" to mean the same as
"closure" in order to promote consistency among the various
financial assurance mechanisms that are utilized among different
programs.
Questions? We
Can Help
If you have questions about financial assurance for used oil
recycling registrations, please contact
us.
Cost
Estimates
Closure costs estimates are applicable to used oil handlers
only. Cost estimate requirements are set out in
30 TAC §324.22(c) and subject to review by our agency's
R&R Section during the registration review process. If you
become registered and plan to expand your facility or reduce
capacity, this will more than likely affect your cost estimates and
in turn, your financial assurance obligations. For more information
regarding your cost estimates, please contact one of our technical
support staff in the R&R Section at 512/239-6833.
Types of Financial
Assurance Mechanisms
Used Oil Handlers
Used Oil Handlers are allowed to choose from several types of
financial assurance mechanisms as set out in
Subchapter L of Chapter 37. The 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.
Transporters
A used oil transporter is not subject to the same financial
assurance requirements as a used oil handler and instead must show
proof of insurance to the commission in the forms and levels
prescribed by the Texas Department of Transportation. For more
information regarding this issue please refer to
30 TAC §37.2021 or contact one of our technical support
staff in the R&R Section at 512/239-6833.
Annual
Inflation Adjustments
Annual inflation adjustments are required during the active life
of the facility.
Wording of
Mechanisms
For Used Oil Handlers, 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.
