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Financial assurance for hazardous waste management

Financial assurance for RCRA hazardous waste facilities under the Delaware Department of Natural Resources and Environmental Control (DNREC) ensures that operators have the necessary financial resources to cover closure, post-closure care, and corrective action costs. These requirements are enforced under both state and federal hazardous waste regulations to prevent environmental contamination and protect public health.

Federal Regulations (RCRA Subpart H – 40 CFR Part 264 & 265)

  • Subtitle C of RCRA governs hazardous waste treatment, storage,

and disposal facilities (TSDFs).

  • Owners/operators must demonstrate financial responsibility for closure,

post-closure, and liability coverage.

Delaware Hazardous Waste Regulations (Title 7, Section 1302 Part 264 & 265)

  • Governed under 7 DE Admin. Code 1302 – Delaware Regulations Governing Hazardous Waste.
  • Implements financial assurance requirements for facilities managing hazardous waste under RCRA permits or interim status.

Purpose of Financial Assurance for RCRA Hazardous Waste

  • Closure & Post-Closure Care
    • Ensures that a facility can properly close and maintain environmental safety afterward.
  • Corrective Action for Releases
    • Covers costs for addressing hazardous waste contamination if detected.
  • Third-Party Liability Coverage
    • Provides financial protection against damages resulting from facility operations.

Facilities Requiring Financial Assurance (40 CFR Parts 264 & 265, Subpart H)

  • Hazardous Waste Treatment, Storage, and Disposal Facilities (TSDFs)
  • Interim Status Hazardous Waste Facilities
  • Permitted Storage Units (Tanks, Surface Impoundments, Landfills, etc.)
  • Facilities Subject to Corrective Action Requirements

Types of Financial Assurance Mechanisms (40 CFR Parts 264 & 265, Subpart H)

  • Trust Fund – A dedicated fund set aside for closure/post-closure costs.
  • Surety Bond – A third-party guarantee to cover financial obligations.
  • Letter of Credit – A financial institution guarantees the necessary funds.
  • Insurance Policy – Provides environmental liability coverage.
  • Corporate Financial Test – Demonstrates financial stability to self-insure obligations.
  • Corporate Guarantee – A parent company guarantees financial assurance compliance.
  • Other DNREC-Approved Mechanisms – Additional options as permitted by the agency.

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