An Act to Update Financial Assurance Requirements for Certain Solid Waste Facilities

Stronger financial backup rules for waste facilities

Maine requires covered waste facilities to show they can pay for cleanup of known releases, closure, and care after closure. This covers all state-licensed private waste disposal facilities, including those licensed before June 16, 1993, and facilities that chemically process plastic waste. Financial backup must cover at least 30 years of care after closure. The environmental board can shorten or lengthen that period through rules consistent with federal rules. Approved options include letters of credit, surety bonds, escrow accounts, reserve accounts calculated under federal tax rules, and irrevocable trusts. Corporate and local government financial tests and guarantees are also allowed, but must meet federal standards. The department can consider more than one approved option per facility. The law removes the broader allowance for municipal disposal facilities to use any federally permitted mechanism. Municipal disposal facilities are exempt if they accept only special waste, construction and demolition debris, land-clearing debris, or a combination. Municipal disposal facilities licensed before June 16, 1993, are also exempt. Covered licensees must review their financial backup yearly and update it when needed under department rules. The department can require covered applicants or licensees to submit an independent financial review of a proposed backup option. Facility owners or operators must submit a sworn report showing each backup option's year-end balance or value. Reports are due March 31 each year unless the commissioner sets another date.