House Bill Analysis

ESSB 6524

HOUSE AGRICULTURE AND ECOLOGY COMMITTEE          February 22, 2000

$Landfill disposal facilities maintained by a government may use alternative forms of financial assurance to ensure funding is available to cover costs of closing the facility.

BACKGROUND:

State law requires the holder or an applicant of a permit for a landfill disposal facility to establish a reserve account to cover the costs of closing the facility in accordance with state and federal law.   Post-closure care of a landfill is generally required for a period of thirty years, but this length of time may be increased or decreased by the jurisdictional health department under certain conditions.  The reserve account must be designed to ensure that there will be adequate revenue available by the projected date of closure. 

A landfill disposal facility maintained on private property for the sole use of the entity owning the site, however, is not required to establish a reserve account if the entity provides another form of financial assurance to the satisfaction of the Department of Ecology that is adequate to comply with the closure requirements.  An irrevocable letter of credit is an example of another form of financial assurance.

SUMMARY:

A landfill disposal facility is not required to establish a reserve account to cover the costs of closing a facility if, to the satisfaction of the Department of Ecology, the permit holder or applicant provides another form of financial assurance adequate to comply with the closure requirements.  The department is not required to adopt rules pertaining to other approved forms of financial assurance.

Appropriation:  None.

Fiscal Note:  Available

Effective Date:  Ninety days after adjournment of session in which bill is passed.