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Financial assurance for solid waste management

Financial assurance for solid waste management under the Delaware Department of Natural Resources and Environmental Control (DNREC) ensures that facility owners/operators have the necessary financial resources to cover closure, post-closure care and potential corrective actions. These requirements are designed to protect public health and the environment by ensuring that solid waste facilities remain in compliance with state and federal environmental regulations.

Delaware Solid Waste Regulations:

  • Governed under 7 DE Admin. Code 1301 – Delaware Regulations Governing

Solid Waste (DRGSW). (7 Del.C. Ch. 60)

  • Requires financial assurance for landfills, transfer stations, recycling facilities,

and certain other solid waste management units.

Federal Oversight:

  • Resource Conservation and Recovery Act (RCRA) Subtitles D & C apply to municipal

and hazardous waste landfills. (40 CFR Parts 239-282)

  • Ensures compliance with EPA financial assurance standards.

Purpose of Financial Assurance for Solid Waste Facilities

  • Closure & Post-Closure Care: Ensures funding for proper facility shutdown and environmental monitoring.
  • Corrective Actions: Covers potential contamination remediation and site restoration.
  • Prevents Abandonment Costs: Protects taxpayers from funding cleanup if an owner/operator defaults.

Facilities Requiring Financial Assurance (7DE Admin Code 1301)

  • Municipal Solid Waste (MSW) Landfills
  • Construction & Demolition (C&D) Debris Landfills
  • Industrial Waste Landfills
  • Composting and Transfer Stations (if required by DNREC)
  • Recycling & Beneficial Use Facilities (if applicable)

Types of Financial Assurance Mechanisms (7DE Admin Code 1301, Section 4)

  • Trust Fund – Money set aside and managed for future environmental obligations.
  • Surety Bond – A third-party guarantee that costs will be covered.
  • Letter of Credit – A bank-backed financial commitment.
  • Insurance Policy – Covers environmental liabilities.
  • Local Government Financial Test and Guarantee – Demonstrates financial strength to self-insure obligations.
  • Corporate Financial Test and Guarentee
  • Other Approved Financial Mechanisms – Alternative financial instruments as permitted by DNREC.

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