Evaluating the use of captive insurance as a financial assurance mechanism under RCRA
- Environmental Protection Agency, Atlanta, GA (United States). Region 4
- PRC Environmental Management, Inc., McLean, VA (United States)
This paper evaluates the use of insurance coverage underwritten by captive insurance companies to provide financial assurance for closure and post-closure care for facilities regulated under the Resource Conservation and Recovery Act of 1976 (RCRA). Regulations under RCRA subtitle C and subtitle D require that owners and operators of both hazardous waste treatment, storage, and disposal facilities (TSDF) and municipal solid waste landfills (MSWLF) demonstrate financial assurance for closure and post-closure care of such facilities. Those requirements help ensure that funds are available to cover the costs of closure and post-closure care, should the owner or operator be unable or unwilling to pay those costs. This paper provides a detailed analysis of how owners and operators use captive insurance companies to demonstrate financial assurance for closure and post-closure care under RCRA. The analysis explores, from a regulator`s point of view, the potential limitations of accepting captive insurance coverage as financial assurance for obligations for closure and post-closure care. The paper also provides: (1) an overview of captive insurance arrangements; (2) specific requirements for insurance for closure and post-closure care under RCRA; (3) state insurance regulations pertaining to the operations of captive insurance companies; and (4) recommendations that EPA and state agencies might consider to improve the current regulations and to ensure that funds will be available to pay for future environmental obligations.
- OSTI ID:
- 49392
- Report Number(s):
- CONF-941189--; ISBN 1-56590-016-2
- Country of Publication:
- United States
- Language:
- English
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