Document ID: EPA-HQ-OECA-2003-0154-0008
Agency: epa
Document Type: Supporting & Related Material
Title: 
Posted Date: 2003-12-10T05:00Z

The
background
papers
on
the
candidate
national
program
priorities
are
intended
to
initiate
further
discussion.
When
priorities
are
selected
more
detailed
strategies
with
in­
depth
background
information,
numerical
targets,
schedules,
milestones
and
performance
measures
will
be
developed.
______________________________________________________________________________

December,
2003
Page
1
of
1
Proposed
Priority:
Financial
Responsibility
Universe
and
Types
of
Facilities
Financial
assurance
requirements
under
the
environmental
laws
ensure
that
persons
handling
hazardous
wastes,
hazardous
substances,
toxic
materials
or
pollutants
have
adequate
funds
to
close
facilities,
clean
up
any
releases
of
those
materials,
and,
in
some
cases,
compensate
others
that
are
harmed
by
the
release
of
the
materials.
For
example,
a
hazardous
waste
facility
in
accordance
with
Resource
Conservation
and
Recovery
Act
(
RCRA)
Subtitle
C
requirements,
must
address
the
cost
of
closing;
the
annual
cost
required
for
post­
closure
monitoring
and
maintenance;
liability
coverage
for
sudden
and
non­
sudden
accidental
occurrences;
and
corrective
action
required
at
solid
and
hazardous
waste
management
units.
Financial
assurance
requirements
under
Subtitle
C
cover
permitted
and
interim
status
facilities.
Under
the
Underground
Injection
Control
(
UIC)
program,
financial
assurance
requirements
ensures
that
Class
I
wells
(
hazardous
waste)
are
properly
closed
so
that
there
are
no
release
to
the
environment.
The
Toxic
Substances
Control
Act
(
TSCA)
program
financial
assurance
requirements
ensure
the
proper
closure
and
cleaning
up
of
Polychlorinated
Biphenyls
(
PCBs)
at
commercial
storage
facilities.

The
Casmalia
Resources
Hazardous
Waste
Management
Facility
serves
as
an
example
of
how
hazardous
waste
facilities'
failure
to
adequately
fulfill
their
financial
assurance
obligations
can
result
in
Superfund
sites.
The
252­
acre
commercial
hazardous
waste
treatment,
storage
and
disposal
facility
in
Santa
Barbara
County,
California
accepted
approximately
5.6
billion
pounds
of
waste
in
its
landfills,
ponds,
shallow
wells,
disposal
trenches,
and
treatment
units.
In
1991,
the
owners
and
operators
of
the
facility
abandoned
the
site
and
had
not
provided
sufficient
funds
to
close
the
facility
and
care
for
the
site.
The
site
became
known
as
the
Casmalia
Resources
Superfund
Site
and
will
cost
approximately
$
272
million
to
remediate
this
site.

Owners
or
operators
may
provide
financial
assurance
for
liability
coverage
through
a
trust
fund,
surety
bond,
letter
of
credit,
insurance
policy,
or
financial
test
and
corporate
guarantee.
This
financial
assurance
must
remain
in
place
until
closure
in
completed,
a
certification
of
completion
has
been
submitted
to
the
appropriate
agency,
and
the
owner
or
operator
has
received
a
notification
from
the
appropriate
agency
indicating
that
financial
assurance
is
no
longer
required.

Geographic
Range
Facilities
or
sites
nationwide
are
affected
by
the
financial
assurance
requirements.

Key
Pollutants
and
Risk
Factors
Risks
for
failure
of
facilities
to
comply
with
the
financial
assurance
requirements
include
releases
from
those
facilities
that
adversely
affect
human
health
and
the
environment
and
the
possible
creation
of
Superfund
sites.
Pollutants
which
could
be
expected
to
result
in
contaminated
groundwater,
soils,
and
surface
waters
include
solvents,
dioxins,
oils,
and
heavy
metals.