Financial Assurance
Financial assurance (or financial responsibility) for corrective action is the demonstration (proof) that adequate funds will be available when needed to undertake the necessary cleanup at a RCRA treatment, storage, and disposal (TSD) facility.
If correction action, when necessary, cannot be completed prior to the issuance of a permit to a TSD owner or operator, the permit must contain a schedule of compliance for completing such corrective action and assurances of financial responsibility.
When EPA issues an order to a TSD facility owner or operator to perform corrective action, it will generally include financial assurance provisions for completing the corrective action.
Financial assurance for corrective action can be demonstrated through a number of financial mechanisms, including:
- trust funds,
- surety bonds,
- letters or credit,
- insurance, or
- qualification as a self-insurer by means of a financial test.
EPA's Interim Guidance on Financial Responsibility for Facilities Subject to RCRA Corrective Action (PDF) (9/30/03) (17 pp, 297 KB, about PDF) provides guidance on implementing corrective action financial responsibility requirements for TSD facility owners and operators.