EPA RCRA Hazardous Waste Management 264.143: § 264.143 Financial assurance for closure

The owner or operator must establish financial assurance for closure using one or more of: a closure trust fund (trust agreement in the 264.151 wording, pay-in over the shorter of the initial permit term or remaining operating life, first payment before a new facility first receives waste, value kept at the scheduled level, top-up within 60 days where an updated estimate exceeds the fund after pay-in, releases and reimbursements on Regional Administrator instruction); a surety bond guaranteeing payment into a standby trust fund or guaranteeing performance of closure (penal sum at least the current estimate, increased within 60 days of an increase, no cancellation within 120 days of notice); an irrevocable standby letter of credit for at least one year with automatic extension and 120 days' non-renewal notice, with a standby trust and covering letter; closure insurance with a face amount at least the estimate, not cancellable except for non-payment and assignable to a successor; or the financial test (two of three ratios, net working capital and tangible net worth at least six times the closure, post-closure and plugging and abandonment estimates, tangible net worth of at least $10 million and US assets of 90 percent of total or six times the estimates; or a bond rating of BBB or Baa or better with the same net worth and asset criteria), shown by a CFO letter, an independent CPA's report and a special report, updated within 90 days after each fiscal year end; on failing the test, notice of intent by certified mail within 90 days and alternate assurance within 120 days after that fiscal year end; or a corporate guarantee by a parent, sibling or firm with a substantial business relationship meeting the test. Multiple mechanisms (trust, bond, letter of credit, insurance) may be combined and one mechanism may cover several facilities; 264.146 allows a single mechanism for closure and post-closure together. New facilities must have assurance in place before first receiving hazardous waste (the financial test items at least 60 days before). Release comes within 60 days after owner and PE certifications of completed closure.