Financial Assurance

Some permittees of solid waste facilities are required to provide, implement and maintain a financial assurance plan to guarantee that there will be sufficient funds to properly close the facility when business operations are terminated. For some, financial assurance is required to cover the costs of post-closure care and corrective action. Financial assurance must be provided prior to commencing facility operations and updated regularly to reflect current permit and facility conditions.

Cost Estimates

NHDES requires permittees of solid waste facilities to prepare one closure cost estimate per facility in accordance with Env-Sw 1403.02. NHDES provides the following cost estimate forms for permittees to use:

• Cost Estimate Form for Closure of Solid Waste Collection, Storage, and Transfer Facility or Processing and Treatment Facility
• Cost Estimate Form for Closure of a Solid Waste Landfill
• Cost Estimate Form for Post-Closure Care of a Solid Waste Landfill

Completed cost estimates are to be submitted to NHDES no later than March 31 of the third calendar year after submitting an initial closure cost estimate or the most recent updated cost estimate. During the non-submittal years, certain lined landfills, collection, storage, and transfer facilities with an unlimited service area, and processing/treatment facilities must obtain an updated cost estimate and place it in the facility's operating record. If an updated cost estimate exceeds the most recent estimate and is greater than $15,000, the permittee must modify its financial assurance mechanism in an amount consistent with the most recent estimate. If an updated cost estimate exceeds the most recent estimate, but the total cost is less than $15,000, the permittee must continue to complete and submit an updated closure cost estimate, but is not subject to the financial assurance provisions in Env-Sw 1403.03.

Financial Assurance Mechanisms

Financial assurance for the closure and post-closure care of a permitted solid waste facility can be met by using one or a combination of the mechanisms listed in Env-Sw 1403.03. The dollar amount guaranteed by a financial assurance mechanism shall be no less than the estimated total closure costs determined by a facility’s closure cost estimate. All original financial assurance documents must be filed with and approved by NHDES before operational approval is issued. Per Title 40 of the Code of Federal Regulations (40 CFR 264.151) and the New Hampshire Solid Waste Rules, NHDES is required to use specific wording for some of the mechanisms and the following templates are available:

• Letter of Credit – issued for a period of at least one year from an institution whose operations are regulated and examined by a federal or New Hampshire state agency and found to be in good standing.
• Surety Bond – issued by a surety company listed as an acceptable surety on federal bonds in the version of the U.S. Department of the Treasury Circular 570 that is current as of the date the bond is acquired.
• Trust Fund – established in accordance with the laws of the state of New Hampshire.

If using a surety bond, letter of credit or insurance policy, a standby trust agreement must be established to receive the funds, if necessary. The standby trust shall be established with a financial institution that has the authority to act as a trustee and whose operations are regulated and examined by a federal or New Hampshire state agency.

• Standby Trust Agreement

Local Government (LOGO) Financial Test

Publicly-owned landfills that choose to use the Local Government (LOGO) Financial Test to fulfill their financial assurance obligations are required to annually update and place in the facility’s operating record all required documentation to support a LOGO financial test within 180 days of the close of the city’s or town’s fiscal year. NHDES was not given the authority through federal regulations to waive any of the requirements or extend the date of filing. Therefore, financial information should be filed in a timely manner to ensure that the LOGO form is completed before the end of the city's or town's fiscal year.

NHDES created a form for municipalities to report LOGO information for publicly-owned landfills that are inactive or capped. Permittees are no longer required to submit the form or supporting documentation to NHDES, however the permittee is required to maintain all documentation on file as part of the facility's record. NHDES reserves the right to randomly inspect facility records to ensure that LOGO information is being reported and that accurate documentation is being kept on file as required.