Financial Assurance for Solid Waste Management Facilities

The Financial Assurance Program is based on the Financial Assurance Rule .1628, which requires owners/operators of municipal solid waste landfills (MSWLFs), accepting waste after October 9, 1993, to demonstrate that the owner/operator will have the funds necessary to properly close, provide 30 years of post-closure maintenance, and fund any corrective action costs for the permitted landfill. Financial Assurance for solid waste management facilities is established in accordance with North Carolina General Statute 130A-295.2 and 15A NCAC 13B. Allowable mechanisms required to demonstrate financial assurance are set forth in 40 CFR 258.74.

Owners and operators of solid waste management facilities that are required to establish financial assurance can find law references linked below:

The Financial Assurance Rule .1628 describe seven different "mechanisms" that owners/operators of municipal solid waste landfills (MSWLFs) can use to demonstrate financial assurance. The seven mechanisms are as follows:

Municipal Solid Waste Landfill .1600 Rule Mechanisms:

Local Government Financial Test The local government financial test consists of three components: a financial component, public notice component and record-keeping and reporting component.
Corporate Test and Corporate Guarantee Guidance and 40 CFR Reference for Corporate Test and Corporate Guarantee
Trust Fund (also used for Standby Trust Agreement)
Surety Bond Guaranteeing Payment or Surety Bond Guaranteeing Performance
Letter of Credit
Insurance
Capital Reserve Fund

Mechanisms for all other solid waste management facilities:

Local Government Financial Test The local government financial test consists of three components: a financial component, public notice component and record-keeping and reporting component.
Corporate Test and Corporate Guarantee Guidance and 40 CFR Reference for Corporate Test and Corporate Guarantee
Trust Fund (also used for Standby Trust Agreement)
Surety Bond Guaranteeing Payment or Surety Bond Guaranteeing Performance
Letter of Credit
Insurance
Capital Reserve Fund

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Effective January 1, 2020, the INFLATION FACTOR PRICE DEFLATOR/MULTIPLIER = 1.017

Effective April 1, 2019, the INFLATION FACTOR PRICE DEFLATOR/MULTIPLIER = 1.022

Due to the recent federal shutdown, the annual factor has not been determined and may not be released until April 2019. Facilities that have adjustment deadlines between January 2019 and March 2019 are to use the inflation factor price deflator/multiplier of 1.018.

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

Each year's "Financial Assurance Mechanism" must contain, when applicable, inflation adjusted cost estimates for closure, post-closure care, and corrective action 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.

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