Financial Assurance for Solid Waste Management Facilities

North Carolina General Statute 130A-295.2 requires owners and operators of solid waste management facilities to demonstrate that the owner/operator will have the funds necessary to properly close the facility, provide post-closure care and maintenance, implement any corrective action plans, and fund potential assessment and corrective action costs for the permitted solid waste management facility. The requirements for financial assurance for solid waste management facilities can be found in N.C.G.S. 130A-295.2 and 15A NCAC 13B Section .1800. 15A NCAC 13B .1805 references the allowable mechanisms required to demonstrate financial assurance that are set forth in 40 CFR 258.74 (July 1, 2010 edition). The Division of Waste Management - Solid Waste Section is responsible for administering and enforcing these requirements.

Owners and operators of solid waste management facilities that are required to establish financial assurance can find references to applicable general statutes, rules, and federal regulations linked below:

Solid Waste Management Facilities Requiring Financial Assurance

As of July 1, 2020, the requirements in 15A NCAC 13B regarding financial assurance have been amended and moved to a new Section .1800. Under Section .1800, the solid waste management facilities that are required to establish financial assurance include, but are not limited to, the following:

Compost Facilities (large Type III; small and large Type IV)
Construction and Demolition Landfills that accepted waste after June 30, 2008
Incinerators
Industrial Solid Waste Landfills
Medical Facilities
Mixed Waste Processors
Municipal Solid Waste Landfills that accepted waste after October 9, 1993
Private Scrap Tire Collection Sites
Private Transfer Stations
Tire Monofills - landfills for the exclusive disposal of scrap tires
Treatment and Processing Facilities

.1800 Rule Mechanisms for Private Companies

.1800 Rule Mechanisms for Local Governments and Municipalities

Annual Inflation Multiplier

Effective January 1, 2020, the inflation factor price deflator/multiplier = 1.017
Effective April 1, 2019, the inflation factor price deflator/multiplier = 1.022 *
Effective January 1, 2018, the inflation factor price deflator/multiplier = 1.018
Effective January 1, 2017, the inflation factor price deflator/multiplier = 1.013
Effective January 1, 2016, the inflation factor price deflator/multiplier = 1.010
Effective January 1, 2015, the inflation factor price deflator/multiplier = 1.014
Effective January 1, 2014, the inflation factor price deflator/multiplier = 1.015

Financial Assurance Mechanisms must contain, when applicable, inflation-adjusted cost estimates for closure, post-closure care, corrective action, and potential assessment and corrective action (PACA), or a new cost estimate. If an inflation-adjusted cost estimate is to be used, it must be based on U.S. Department of Commerce, Bureau of Economic Analysis Gross Domestic Product implicit price deflator.

(*) Due to the federal shutdown, the annual factor for January 1, 2019 was not released until April 1, 2019. Facilities that had adjustment deadlines between January 2019 and March 2019 are required to use the inflation factor price deflator/multiplier of 1.018.