*   I

flEPA
Liability Coverage:
Requirements for Owners and Operators
of Hazardous Waste Treatment, Storage
and Disposal  Facilities
               A Guidance Manual
                          U.S. Environmental Protection Agency
                          Region 5, Library (PL-12J)
                          77 West Jackson Boulevard, 12th Floor
                          Chicago, IL  60604-3590

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               LIABILITY COVERAGE:
      Requirements for Owners or Operators of
        Hazardous Waste  Treatment,  Storage,
             and Disposal Facilities
                A  GUIDANCE MANUAL
    This  document (SW-961)  was  prepared for the
Office of Solid Waste under contract no. 68-01-6491
       U.S. Environmental Protection Agency
                      1982

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                                   PREFACE
    This manual was prepared by ICF Incorporated,  1850 K Street, N.W., Suite
950, Washington, D.C.  20006, under EPA Contract No.  68-01-6491.  The EPA
project officer was Carole J. Ansheles.

    This document was compiled in order to provide guidance  to owners and
operators in complying with the requirements for liability coverage; and to
EPA Regional Staff in implementing the requirements.

    This document has received Information Clearance  No.  2000-0445  from the
Office of Management and Budget, for use through December 31, 1983.

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                                    LIST OF  EXHIBITS
                                                                               Page

      I.     INTRODUCTION

            EXHIBIT  1-1:    LIABILITY COVERAGE REQUIREMENT REGULATIONS  	       1-2

            EXHIBIT  1-2:    FEDERAL REGISTER CITATIONS FOR LIABILITY
                           COVERAGE REGULATIONS  	       1-3

            EXHIBIT  1-3:    CURRENT BACKGROUND DOCUMENTS OR GUIDANCE  	       1-3

            EXHIBIT  1-4:    STATES WITH  INTERIM AUTHORIZATION AS OF
                           SEPTEMBER 1,  1982  	       1-8

      II.    SATISFYING RCRA LIABILITY COVERAGE REQUIREMENTS USING  INSURANCE

            EXHIBIT  II-l:   RCRA LIABILITY INSURANCE REGULATIONS	      II-l

      III.   SATISFYING RCRA LIABILITY COVERAGE REQUIREMENTS USING  A
            FINANCIAL TEST

            EXHIBIT  III-l:  RCRA FINANCIAL TEST REGULATIONS  	     III-2

            EXHIBIT  III-2:  ALTERNATIVE  SETS OF FINANCIAL TEST CRITERIA FOR
                           SATISFYING LIABILITY  COVERAGE REQUIREMENTS  	     III-4

            EXHIBIT  III-3:  ALTERNATIVE  SETS OF FINANCIAL TEST CRITERIA FOR
                           SATISFYING LIABILITY  COVERAGE AND CLOSURE OR
                           POST-CLOSURE CARE REQUIREMENTS 	     III-5 -

            EXHIBIT  III-4:  SAMPLE FILE  ON OWNER  OR OPERATOR 	     111-10

            EXHIBIT  III-5:  CONDITIONS LIKELY TO  RESULT IN A QUALIFIED
                           OPINION, ADVERSE OPINION, AND DISCLAIMER OF
                           OPINION  	     111-13
*   •
      IV.    SATISFYING RCRA LIABILITY COVERAGE REQUIREMENTS USING  STATE
            MECHANISMS

            EXHIBIT  IV-1:   RCRA STATE LIABILITY  COVERAGE MECHANISM
                           REGULATIONS  	      IV-1

            EXHIBIT  IV-2:   STATE LIABILITY COVERAGE REQUIREMENTS  AND
                           ASSUMPTIONS  OF RESPONSIBILITY AS OF JUNE 1,
                           1982 IN STATES WITHOUT INTERIM AUTHORIZATION
                           AS OF SEPTEMBER 1, 1982	      IV-3

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                              TABLE OF CONTENTS



                                                                          Page

I.    INTRODUCTION 	       1-1

      A.   PURPOSE OF MANUAL 	       1-1
      B.   SUMMARY OF REGULATIONS 	       1-4
      C.   ROLES OF EPA HEADQUARTERS AND REGIONAL OFFICES 	       1-6
      D.   RELATIONSHIP BETWEEN STATE AND FEDERAL REQUIREMENTS 	       1-7

II.   SATISFYING RCRA LIABILITY COVERAGE REQUIREMENTS USING INSURANCE      II-l

      A.   RESPONSIBILITIES OF THE OWNER OR OPERATOR 	      II-l

              1.   Types and Amounts of Coverage 	      II-2
              2.   Qualifications of Insurer 	      II-3
              3.   Obtaining Insurance Coverage 	      II-3
              4.   Submission of Documents to EPA 	      11-4
              5.   Maintaining Coverage 	      11-6
              6.   Cancellation or Termination of the  Insurance
                  Policy by the Insurer 	      11-6
              7.   Release from RCRA Liability Coverage
                  Requirements 	      II-6
              8.   Permitted Facility Requirements 	      II-6

      B.   REGIONAL OFFICE RESPONSIBILITIES 	      II-7

              1.   Qualifications of Insurer 	      II-7
              2.   Conformity to Other Requirements 	      II-7
              3.   Recordkeeping and Tracking Systems  	      11-8 -
              4.   Variance Requests 	      II-8
              5.   Maintaining Coverage 	      II-8
              6.   Cancellation or Termination of Insurance 	      II-9
              7.   Release from Requirements 	      II-9
              8.   Permitted Facility Requirements 	      II-9

      C.   SOURCES OF FURTHER INFORMATION 	      11-10

      D.   ATTACHMENTS 	      11-12

          •   Attachment II-l:  RCRA Liability Insurance Coverage
              Checklist for Owners or Operators 	      11-12

          •   Attachment II-2:  RCRA Liability Insurance Coverage
              Checklist for Regional Offices 	      11-14

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                                   -2-



                       TABLE OF CONTENTS  (continued)


                                                                         Page

          •   Attachment II-3:   Required Wording for Hazardous  Waste
              Facility Liability Endorsement  	      11-16

          •   Attachment II-4:   Required Wording for Hazardous  Waste
              Facility Certificate of Liability Insurance 	      11-18

III.   SATISFYING RCRA LIABILITY  COVERAGE REQUIREMENTS USING THE
      FINANCIAL TEST 	     III-l

      A.   RESPONSIBILITIES OF THE OWNER OR OPERATOR 	     III-2

              1.  Form and Amount of Coverage 	     Ill-2
              2.  Qualifications for the Financial  Test  	     III-3
              3.  Arrangements for the Financial Test 	     III-6
              4.  Submission of  Documents to  EPA 	     III-6
              5.  Updating and Maintaining Coverage 	     III-7
              6.  Release from RCRA Liability Coverage
                  Requirements  	     III-8
              7.  Permitted Facility Requirements 	     III-8

      B.   REGIONAL OFFICE RESPONSIBILITIES 	     III-8

              1.  Qualifications of Accountant 	     III-8
              2.  Conformity to  Other Requirements  	     III-8
              3.  Recordkeeping  and Tracking  Systems 	     III-15
              4.  Variance Requests 	     111-15
              5.  Updating and Maintaining Coverage 	     111-15
              6.  Release from Requirements 	     Ill-16
              7.  Permitted Facility Requirements 	     Ill-17

      C.   SOURCES OF FURTHER INFORMATION 	     111-17

      D.   ATTACHMENTS	     111-18

          •   Attachment III-l:   RCRA Liability Coverage
              Financial Test Checklist for Owners or Operators  	     111-18

          •   Attachment III-2:   RCRA Liability Coverage
              Financial Test Checklist for Regional Offices 	   111-19

          •   Attachment III-3:   Required Wording for Letter  from
              Chief Financial Officer 	   111-21

          •   Attachment III-4:   Example of Auditor's Special
              Report, Confirmation of Chief Financial Officer's
              Letter 	   111-27

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                                   -3-


     •j
                       TABLE OF CONTENTS   (continued)


                                                                        Page

IV.    COMPLYING WITH LIABILITY COVERAGE REQUIREMENTS USING STATE
      MECHANISMS		     IV-1

      A.   RESPONSIBILITIES OF THE OWNER OR OPERATOR  	     IV-2

          1.   Satisfying State Requirements 	     IV-2
          2.   Submission of Required Information to EPA	,	     IV-2
          3.   Satisfying Federal Requirements  	     IV-4
          -'».   haintaining Coverage 	     IV-4
          5.   ?armitted Facility Requirements  	     IV-4

      B.   REGIONAL OFFICE RESPONSIBILITIES 	     IV-5

          1.   Evaluating Equivalency 	     IV-5
          2.   Reviewing Submissions 	     IV-6
          3.   Verifying Conformity to Requirements  	     IV-7
          4.   Ensuring Maintenance of Coverage 	     IV-8
          5.   Permitted Facility Requirements  	     IV-8

      C.   SOURCES OF FURTHER INFORMATION  	     IV-8

      D.   ATTACHMENTS 	     IV-9

          •   Attachment IV-1:  RCRA State Liability Coverage
              Mechanisms Checklist for Owners  or Operators  	     IV-9

          •   Attachment IV-2:  RCRA State Liability Coverage
              Mechanisms Checklist for Regional Offices  	     IV-10

          •   Attachment IV-3:  Sample Owner or Operator Request
              Letter (I) 	     IV-12

          •   Attachment IV-4:  Sample Owner or Operator Request
              Letter (II) 	     IV-14

          •   Attachment IV-5:  Sample Owner or Operator Request
              Letter (III) 	     IV-IS

GLOSSARY OF TERMS 	      G-l

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                                  INTRODUCTION
A.   PURPOSE OF MANUAL

    This manual has three purposes:

         (1)  To assist owners and operators in understanding their
              responsibilities under the liability coverage
              requirements of 40 CFR 264 & 265 published in the
              Federal Register on April 16, 1982 and effective as
              of July 15, 1982;

         (2)  To assist Regional Administrators and state agencies
              in developing effective procedures to implement the
              requirements; and

         (3)  To promote uniform and coordinated implementation
              within and among Regions to ease the burden on owners
              or operators, the insurance industry, and EPA
              personnel.

    IThe manual describes the responsibilities of the regulated community and
the functions that Regional Offices  must perform.   Checklists, required
wordings, and sample submissions are provided as well as sources of further
information.

    The manual focuses on the INTERIM  STATUS liability coverage requirements
of 40 CFR 265 (Subpart H) and includes separate sections which discuss  any
special requirements for PERMITTED  FACILITIES  (40 CFR 264).  Subpart  H also
includes requirements for financial  assurance of closure and post-closure
care.  A guidance manual on those requirements is available from EPA Regional
Offices.  In some instances, where the same information is applicable to both
sets of requirements, the information is not repeated in this manual and the
reader is referred to the manual for Financial Assurance for Closure and
Post-Closure Care.   Lists  of state  regulatory agencies,  for  example, may  be
found in Appendix B of that manual.

    Exhibit 1-1 lists the liability  coverage regulations with which owners or
operators must comply and provides the appropriate Code of Federal  Regulations
(CFR) citations for each.  A chronology of relevant Federal Register notices
on these regulations is detailed in  Exhibit 1-2, and related Background
Documents and EPA Guidance Manuals are listed in Exhibit 1-3

    This manual contains a glossary  of key terms.   Terms included  in the
glossary will be identified by the use of bold face CAPITAL LETTERS i \ the
first use of the term in each chapter.

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                     1-2
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                                EXHIBIT 1-2

   FEDERAL REGISTER CITATIONS FOR LIABILITY COVERAGE  REGULATIONS

           Item                      Date                Federal Register

Proposed Rule                  December 18, 1978         43 FR 58995

Reproposed Rule                May 19, 1980              45 FR 33260

Interim Final Rule             January 12, 1981          46 FR 2802

Deferral of Effective Date      May 18, 1981              46 FR 27119

Deferral of Effective Date      October 1,  1981           46 FR 48197

Revised Interim Final Rule      April 16,  1982            47 FR 16544

Wording Correction (Minor)      April 27,  1982            47 FR 17989

Extension of Insurer            July 13, 1982             47 FR 30446
Qualification Requirements


                                EXHIBIT 1-3

             CURRENT BACKGROUND  DOCUMENTS OR GUIDANCE
                         40 CFR Part 265,  Subpart H

Background Document,  Parts 264 and  Guidance Manual, Financial Assurance
265, Subpart H,  Financial  Require-    for  Closure and Post-Closure Care:
ments. Final Regulations               Requirements for Owners  or Operators
(December 31,  1980).                   of Hazardous Waste Treatment, Storage,
                                      and Disposal  Facilities (May 1982).

Background Document for the Finan-    Final Draft Guidance for  Subpart H of
cial Test and Municipal Revenue        the Interim Status  Standards  for
Test (November 30, 1981).              Owners and Operators of Hazardous Waste
                                      Treatment, Storage, and  Disposal
                                      Facilities (November  1981,  General
                                      Research Corporation).

Background Document,  Financial       Guidance Manual, Liability Coverage:
Test for Liability  Coverage            Requirements  for Owners  and Operators
(April 9,  1982)                        of Hazardous Waste Treatment, Storage,
                                      and Disposal  Facilities (DRAFT, October
                                      1982,  ICF Incorporated.)

The background  documents are available for  review in the EPA Regional  Office
libraries  and at  the EPA Headquarters library, Room 2404, Weterside Mall,  401
M Street,  S.W., Washington, D.C. 20460.

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                                   1-4
    A copy of the regulations  themselves may be obtained by contacting the
RCRA Hotline (800) 424-9346  (toll  free) or  (202) 382-3000, or the
Superintendent of Documents, Washington, B.C.  20402.  For questions about
specific procedures or issues  not  covered in the regulations, contact the RCRA
financial responsibility specialist  in  each EPA Region.  (See Appendix A.)
All documents and correspondence to  be  submitted to  an EPA Regional
Administrator should be marked:  "Attention:  RCRA Financial Requirements" as
part of the address.   Owners or operators may wish to provide their
accountants and insurers with  the  name  and  telephone number of the EP4
Regional contact and the required  wording of instruments included in this
manual, as well as copies of the regulations.

B.  SUMMARY OF  REGULATIONS

    As part of the regulation,  of hazardous  waste management facilities under
the Resource Conservation and  Recovery  Act  of 1976 as amended (RCRA), EPA has
promulgated standards requiring owners  or operators  to demonstrate financial
responsibility for BODILY INJURY  and PROPERTY DAMAGE to THIRD  PARTIES
caused by:

             SUDDEN ACCIDENTAL  OCCURRENCES arising from operation
             of a hazardous waste  treatment, storage, or disposal
             facility; or

             NONSUDDEN ACCIDENTAL OCCURRENCES arising from
             operation of a surface  impoundment, landfill, or land
             treatment facility used to manage hazardous waste.

All owners or operators must have  coverage  for sudden accidental occurrences;
all owners or operators of landfills, surface impoundments, and land treatment
facilities must have coverage  for  both  sudden and nonsudden accidental
occurrences.  These standards  require liability coverage in the amount of at
least:

         •   $1 million for each sudden occurrence, with an
             ANNUAL AGGREGATE of at  least  $2  million;  and

         •   $3 million for each nonsudden  occurrence, with an
             annual aggregate  of at  least $6 million.

Both sets of coverage requirements are  defined not to include any LEGAL
DEFENSE COSTS that might be incurred.   The  dollar limits  do  not  apply per
facility but to the owner or operator.  That is, the same limits apply
regardless of the number of  facilities  for  which the owner or operator  is
responsible.  (The minimum annual  aggregate coverage requirement takes  into
account the risk of multiple occurrences in the same year among facilities
belonging to one owner or operator.)

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                                   1-5
    Owners or operators must demonstrate the required liability coverage by
submitting evidence of insurance (either a Hazardous Waste Facility Liability
ENDORSEMENT or  a  CERTIFICATE OF INSURANCE) or by submitting documents
showing that they meet the requirements of the FINANCIAL TEST for liability
coverage.  They may use insurance for part of the required coverage limit and
the financial test for the remainder, or State assurances meeting 40 CFR
265.149 may be submitted.

    The regulations apply to both the owner and the operator of the
facilities.  The actual demonstration of liability coverage, however,  may be
offered by either the owner or the operator.  EPA will consider both parties
responsible for carrying out the requirements, and leaves it to the parties
themselves to undertake, share, or divide the actual demonstration of coverage.

    All owners or operators must demonstrate that they have obtained liability
coverage for sudden accidental occurrences by the effective date of the
regulations (July 15, 1982).  The required liability coverage for nonsudden
accidental occurrences must be demonstrated for surface impoundments,
landfills, or land treatment facilities according to the following schedule:

         (1)  For an owner or operator with sales or revenues
              totalling $10 million or more, 6 months after the
              effective date of these regulations (i.e., January 15,
              1983).

         (2)  For an owner or operator with sales or revenues
              greater than $5 million but less than $10 million, 18
              months after the effective date of these regulations
              (i.e.,  January 15, 1984).

         (3)  All other owners or operators, 30 months after the
              effective date of these regulations (i.e., January 15,
              1985).

Where the owner and operator of a facility are two different parties,  the
total sales or revenues of the owner or operator with the largest sales  or
revenues in the fiscal year preceding the effective date will determine which
deadline applies (see 40 CFR 265.147(b)(4)).

    The liability coverage for a facility must be maintained in full force and
effect unless and until (1) an alternate form of coverage is demonstrated
(i.e., a different insurance policy or the use of the financial test),  or (2)
certifications of closure are received by the Regional Administrator.   In
other words, liability coverage  is an operating  life  responsibility  only; no
liability coverage is required after certification of closure of the facility
or facilities in question.  Also,  an owner or operator may be released if
ownership or operation of the facility is transferred, but only in accordance
with the specific conditions of such transfers.

    In the event that an insurer becomes insolvent or has its authority to
issue the policy revoked or suspended, the owner or operator must establish

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                                   1-6
alternative liability coverage within sixty days.   Although the  regulations
refer to the bankruptcy of an insurer, technically speaking,  insurance
companies do not enter bankruptcy, but are liquidated under state insolvency
laws.  This guidance manual uses the latter terminology.

    An owner or operator must notify the Regional  Administrator  by certified
mail of the commencement of a bankruptcy proceeding naming the owner or
operator as debtor within 10 days after commencement of the proceeding.

    Until permitted under RCRA, EXISTING  FACILITIES are subject to the
interim status rules.  When a facility receives  a  RCRA permit, the rules for
permitted facilities will apply (See Exhibit 1-1).   The liability coverage
requirements for interim status and permitted facilities  are quite similar.
Therefore, the following chapters are based on the interim status
requirements; however, each chapter includes subsections  which discuss any
provisions unique to permitted facilities.

C.   ROLES OF EPA HEADQUARTERS AND  REGIONAL OFFICES

    The EPA Regional Offices play the lead role  in determining compliance with
the liability coverage standards.  Headquarters  develops  overall agency policy
and serves as a clearinghouse of information and source of technical
assistance.

    Because this is a new program, problems may  arise that either must be
resolved case-by-case or had not been anticipated  by the  regulations (or this
guidance).  To assure uniformity of implementation,  EPA Regional Offices
should communicate with EPA Headquarters to determine if  such problems have
arisen elsewhere and to discuss options for resolving the questions.  Further
guidance or memoranda will be distributed by Headquarters as  additional issues
are resolved.  Owners or operators and financial community representatives are
also free to contact Headquarters but should initially discuss all questions
with the Regional Office staff (see Appendix A)  or appropriate state agency
(see Appendix B-l in the manual for Financial Assurance for Closure and
Post-Closure Care)  who  have  primary  responsibility  for implementing the
requirements and overseeing compliance.

    As administrative experience with the financial requirements accumulates,
allocation of responsibility between Headquarters  and the Regional Offices for
review of compliance may shift in certain circumstances to exploit potential
efficiencies.  For example, the feasibility of centralizing and  automating
annual review of financial test data is under investigation.

    In order to foster uniform implementation of the requirements,
Headquarters will be available to provide guidance on various matters,
including review of liability coverage of owners or operators who have
facilities in more than one EPA Region; procedures for coordination with
Enforcement staff; and responses to bankruptcies of owners or operators and
liquidation of insurers.

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                                   1-7
D.   RELATIONSHIP BETWEEN  STATE AND FEDERAL REQUIREMENTS

    The relationship between State and Federal liability coverage requirements
is virtually the same as between State and Federal closure and post-closure
financial requirements.  To understand the relationship between Federal  and
State financial requirements, two important facts must be remembered:  First,
the Resource Conservation and Recovery Act (RCRA) does not prevent or  preempt
states from independently enacting liability coverage requirements,  and  a
number of states have done so.  Second, under RCRA, states may apply to  EPA
for the authority to administer a State hazardous waste management program  in
lieu of Federal implementation of the RCRA program.  Hazardous waste
facilities may be subject to State liability coverage requirements and must
satisfy applicable rules, whether promulgated as part of an EPA-authorized
State program or independently.  Compliance with State requirements may
satisfy Federal standards in whole or part.

    State program authorization typically proceeds from INTERIM AUTHORIZATION
to FINAL AUTHORIZATION.   As of September 1,  1982,  thirty-four states had
received interim authorization (see Exhibit 1-4).

    To obtain final authorization the State program must be equivalent to the
Federal program and consistent with the Federal program and programs in  other
states and must provide adequate enforcement of compliance.   The earliest a
state may obtain final authorization is January 26, 1983.

    A state may receive PHASE  I INTERIM  AUTHORIZATION if its program
satisfies the Federal standards promulgated on May 19,  1980.   The standards
cover many aspects of the hazardous waste management program,  but they do not
include financial responsibility standards, except the requirements  for
estimating the costs of closure and post-closure care at interim status
facilities.  Thus, a state need not have established liability coverage
requirements to receive Phase I authorization.  As of September 1, 1982,  29
states had Phase I interim authorization only (see Exhibit 1-4).

    A state with Phase I interim authorization has responsibilty for most
aspects of the hazardous waste management program, except  permits for
hazardous waste management facilities:  the state receives authorization to
regulate intern status facilities;  EPA retains the responsibility to issue
RCRA permits.   Thus, owners or operators of facilities  receiving RCRA  permits
in Phase I states are required to meet the Federal financial  responsibility
standards, including the liability coverage requirements promulgated in  April
1982.

    Owners or operators of interim status facilities in states with  Phase I
authorization must comply only with applicable State financial requirements.
The State requirements may apply to both interim status and permitted  status
facilities.  In some states,  no financial requirements  for liability coverage
are in effect at this time.  A number of Phase I states do have,  or  are

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                                   1-9
developing financial requirements, including liability coverage standards
comparable to the Federal requirements.

    States with PHASE  II INTERIM AUTHORIZATION may issue RCRA permits.
Phase II interim authorization is granted in components.  Component A covers
storage facilities, Component B covers incinerators, Component C covers land
disposal facilities.  To receive Phase II interim authorization states must
demonstrate substantial equivalence to the RCRA liability requirements for
both interim status and permitted facilities.  However, states which had
submitted draft applications for Phase II authorization prior to April 16,
1982 (i.e., Alabama, Arkansas, California, Georgia, Kansas, Kentucky,
Mississippi, Missouri, New Mexico, North Carolina, Oklahoma, Oregon, South
Carolina, Tennessee, and Texas) may receive Phase II interim authorization if
they commit to adopt substantially equivalent requirements as quickly as
practicable, but in no case later than the State's application for an
additional Component of Phase II.

    As of September 1, 1982 five states had received Phase II interim
authorization (see Exhibit 1-4).  Owners or operators in states with Phase II
authorization must comply only with applicable State liability requirements.
The State standards will generally be substantially equivalent to the Federal
standards.  However, owners or operators should note that Phase II
authorization may well establish some additional liability coverage
requirements for interim status facilities.  If the state lacks Phase II
authorization to permit certain types of facilities (e.g.,  land disposal),
then those facilities will receive RCRA permits issued by EPA and the Federal
liability coverage standards will apply.  In the latter instance, the
facilities may also be subject to State liability coverage requirements which
may be used to satisfy in whole or in part the liability coverage requirements
for permitted facilities (40 CFR 264.149).

    Owners or operators of facilities in states  without authorization must
satisfy the Federal liability coverage standards promulgated on April 16,
1982.  Nonauthorized states may have their own liability coverage standards as
well.  Satisfaction of these State requirements may satisfy, in whole or in
part, the Federal RCRA requirements,  as discussed in Chapter IV.

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              II.  SATISFYING RCRA LIABILITY COVERAGE
                   REQUIREMENTS USING INSJRANCE
    Owners or operators  may  satisfy the RCRA liability coverage requirements
by obtaining insurance in  which  an insurance company promises to satisfy
liability claims relating  to SUDDEN ACCIDENTAL OCCURRENCES or NONSUDDEN
ACCIDENTAL OCCURRENCES arising from operation of the facility or facilities.
To prove that an insurance contract has been arranged, either a copy of an
ENDORSEMENT  applicable to the insurance policy must be submitted to the
Regional Administrator;  or,  a CERTIFICATE OF  INSURANCE, not part of the
insurance policy,  must be  submitted.  The regulations specify the wording
required for the endorsement and certificate of insurance.

    The requirements  governing liability insurance are not to be confused with
the Subpart H requirements that  allow use of CLOSURE OR POST-CLOSURE CARE
INSURANCE  for financial assurance (See 40 CFR §§265.143(e) and 265 .145 (e)) .

    The regulations pertaining to RCRA liability insurance are as follows:

                                EXHIBIT  ll-l

                   RCRA LIABILITY INSURANCE REGULATIONS
           Topic
  Interim Status
 Sudden Accidental  Insurance     40 CFR §265.147(a)(1)

 Nonsudden Accidental  Insurance  40 CFR §265.147(b)(1)
 Insurance Endorsement
 Required Wording

 Certificate of Insurance
 Required Wording
40 CFR §264.151(1)


40 CFR §264.151(j)
Permitted Facilities


40 CFR §264.147(a)(lJ

40 CPK §264.147(b)(l)

40 CFR §264.151(1)


40 CFR §264.151(j)
Source:   Title 40,  Code of Federal Regulations  (CFR).
A.  RESPONSIBILITIES  OF THE OWNER OR OPERATOR

    This section describes  the  responsibilities of owners or operators using
insurance to demonstrate liability coverage.  A checklist of these
responsibilities appears in Attachment  II-1 at the end of this chapter.

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                                   II-2
    1.  Types and Amounts of Coverage.   Insurance may be used to cover the
requirements for sudden accidental occurrences,  nonsudden  accidental
occurrences, or both in combination.

         •   Sudden Accidental Occurrences.  The owner or
             operator must obtain and maintain coverage  for BODILY
             INJURY and  PROPERTY  DAMAGE in the amount of at  least
             $1 million per occurrence,  with an ANNUAL AGGREGATE
             AMOUNT of  at least $2 million, exclusive of LEGAL
             DEFENSE  COSTS.

         •   Nonsudden Accidental Occurrences.   The  owner or
             operator must obtain and maintain coverage  for bodily
             injury and property damage  in the amount  of at least $3
             million per occurrence,  with an annual  aggregate  amount
             of at least $6 million,  exclusive of legal  defense
             costs.

    All facilities must be covered for sudden accidents; only  owners  or
operators of surface impoundments, landfills, or land  treatment facilities  are
also required to maintain coverage for LIABILITIES  resulting  from  nonsudden
accidental occurrences.   Coverage must be maintained until certification of
closure.  The required amount  of coverage applies to the owner or operator,
not to each facility.   That is, regardless of whether  an one owner  or operator
is responsible for one facility or several facilities, the same minimum
coverage amount applies; there is no  need to secure  separate coverage for each
facility.  Any portion of the  required amount of coverage  that is not met by
the insurance must be met by use of the  FINANCIAL  TEST  (see Chapter  III  of
this manual).

    RCRA requirements for liability insurance leave  the negotiation of
DEDUCT!BLES up to the insured and  insurer.  However, under  the terms
specified in the certificate of insurance and the endorsement,  unless the
amount of the deductible is assured using the financial  test,  the insurer is
liable for payment of amounts  within  the deductible with a right of
reimbursement by the insured for such payment.   This means that the owner or
operator has liability coverage on a  FIRST-DOLLAR BASIS.

    Under the current regulations, however,  an owner or operator may  obtain a
VARIANCE  in the  amount  of liability coverage required by demonstrating  that
the required amount is  inconsistent with the degree  and duration of risk
associated with his facilities.  The  Regional Administrator may also  adjust
the required amount or impose  the nonsudden coverage requirements on
facilities other than landfills, surface impoundments, or  land treatment
facilities.   As discussed in the preamble to the RCRA  liability coverage
requirements,  EPA plans to propose the deletion of the variance provisions
because data are not presently available that would  enable EPA to set forth
specific national criteria relating liability coverage requirements to  risk
factors.  The differences in risk at  different facilities will ordinarily be
reflected in the premiums paid for insurance coverage with lower risk
facilities paying less  than higher risk  facilities.

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                                   II-3
    2.  Qualifications of Insurer.   Effective October 16,  1982,  the
insurance company must be licensed to transact business as an insurer in one
or more states, or eligible to provide EXCESS  OR  SURPLUS LINES INSURANCE
in one or more states.  Under the Federal RCRA requirements,  the insurance
company need not be licensed in the state in which the facility is located.
States may adopt more strict requirements; they may require that facilities  be
insured by companies licensed to transact business in the state.  If there is
any question about the qualifications of an insurer, the owner or operator
should first contact the insurer about its licenses and then confirm with the
insurance regulatory authorities of the appropriate state or states.  (See
Appendix B-3 in the Manual for Financial Assurance for Closure and  Post-
Closure Care  for  a list of  state Mnsurance  authorities.)

    3.  Obtaining  Insurance Coverage.  Many owners or operators will already
have some form of sudden accidental insurance coverage under their general
liability policies.  For example,  an owner or operator with standard
COMPREHENSIVE  GENERAL  LIABILITY (CGL) coverage may already have the
required coverage and can ask its insurer to provide a certificate of
insurance meeting RCRA requirements or arrange for the endorsement.   Some
types of existing coverage may not be suitable for meeting RCRA requirements,
and owners or operators are advised to consult their insurance BROKER or
AGENT in any case.

    On the other hand, few owners or operators may have a policy covering
nonsudden accidental occurrences.   If your insurance agent or broker for
general liability insurance is not able to help, the following organizations
can identify companies providing nonsudden insurance:

         •   Alliance of American Insurers;  Contact: Sally
             Kirkpatrick, (202) 822-8811.

         •   American Insurance Association; Contact:  James L.
             Kimble,  (202) 293-3010.

         •   Independent Insurance Agents of America;  Contact:
             Richard Kasyjanski, (212) 285-4250.

         •   Insurance Information Institute;  Contact: Daniel
             Poole, (212) 669-9200.

         •   National Association of Insurance Brokers;  Contact:
             David Lambert,  (202)  783-8880.

         •   National Association of Insurance Commissioners;
             Contact: Jean DeLauch, (414)  784-9540.

         •   Professional Insurance Agents;  Contact: Patricia A.
             Borowski, (703) 784-9540.

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                                   II-4
    In recent years,  insurers  have  made  available policies  explicitly designed
for pollution-related claims.   Called  ENVIRONMENTAL  IMPAIRMENT LIABILITY
or POLLUTION LIABILITY  insurance,  these policies cover  liabilities arising
from nonsudden gradual releases.  These  policies are offered on a CLAIMS
MADE basis.   (Use of the term "occurrence" in the regulations should not
be interpreted as limiting  acceptable  insurance to policies that provide
OCCURRENCE-BASED policies or as excluding claims-made  policies.)  Some
environmental impairment or pollution  liability policies may cover sudden
pollution incidents as well as nonsudden.   To  satisfy  the requirement for
coverage of sudden accidental  occurrences,  however, sudden  pollution  coverage
by itself is insufficient;  general  liability coverage  must  also be
demonstrated.

    Where existing CGL coverage has POLICY LIMITS beneath the minimum  amounts
required by RCRA, the owner or operator  may arrange to supplement that
coverage by purchasing EXCESS or  UMBRELLA  COVERAGE up to the  required
amounts.  Evidence for each of these coverage  layers  (i.e., a  certificate or
endorsement) would need to  be  submitted  along  with evidence of the primary
coverage.  Consult your insurance agent  or  broker for  more  details.

    Insurers will generally require detailed information on the facilities and
the owner or operator before writing a policy  covering nonsudden accidental
occurrences.  Insurers may  require  on-site  scientific  and engineering
assessments along with a review of  current  financial statements.  It could
take as long as several months to secure nonsudden coverage if an extensive
risk, assessment survey is required  or  if numerous sites are to be surveyed.
However, owners or operators will not  be required to demonstrate coverage for
nonsudden accidental occurrences until at  least 6 months after the effective
date of the regulations (see Section 4 below).

    4.  Submission of Documents to EPA.  The owner or operator must
demonstrate liability coverage by submitting to the Regional Administrator an
originally signed duplicate endorsement  or certificate of  insurance. The
wording of the endorsement  or  certificate must be identical to that  required
by the regulations in force at the  time  of  submission  (see  Attachment II-3 and
II-4 for the current wording).  The policy  itself need not  be  submitted.
However, the owner or operator must submit  a duplicate original of the policy,
including all endorsements,  whenever requested by the  Regional Administrator.
Also, under the terms of the endorsement and certificate, the  insurer agrees
to provide a duplicate original of  the policy,  if requested by the Regional
Administrator.

    Different deadlines for submissions  apply  as follows:

         •   Sudden Accidental Occurrences.  The owner or
             operator must  demonstrate coverage by the effective
             date of the regulations (July  15,  1982).

         •   Nonsudden Accidental  Occurrences.  The  owner or
             operator must  demonstrate coverage by the dates listed
             below, depending  on the sales  or  revenues in the  fiscal

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                                   II-5
             year previous to the effective date of the regulations.
             If there is more than one owner or operator, or if
             owner and operator are different parties, then the
             sales or revenues of the owner or operator with the
             largest sales or revenues will determine the date by
             which coverage must be demonstrated.
                Sales or Revenues of    |
            Applicable Owner or Operator]
            In Fiscal Year Previous to  j
            Effective Date of Regulation!
Period After Effective Date
of Regulations That Policy
  Must Be Demonstrated

At least $10 million
Greater than $5 million
Less than $10 million
_ __ 	 	 _____ _____
Less than $5 million
1
| 	
| 6 months
| 18 months
1
| 	
| 30 months
1

(January 15,
(January 15 ,
(January 15 ,

1983)
1984)
1985)
    If an owner or operator does not have to demonstrate coverage for
nonsudden occurrences within six months after the effective date of
regulations, it must submit a letter to the Regional Administrator by January
15, 1983 stating when coverage will be obtained.  This requirement applies to
owners or operators with total sales or revenues less than $10 million.

    Owners or operators who use different insurance policies for different
layers of coverage must submit a certificate or endorsement for each layer.
If excess insurance is used, the certificate of insurance or endorsement
should indicate the amounts of coverage providedi for each occurence and the
annual aggregate in excess of stated underlying limits of coverage (see
Attachments II-3 and 4).  When a policy has no annual aggregate limit, that
fact should be noted in the endorsement or certificate of insurance.  In
addition, if an owner or operator has a policy with separate limits for bodily
injury and property damage, each separate limit must amount to at least $1
million for each occurrence and $2 million annual aggregate for sudden
accidental occurrences and $3 million for each occurrence and $6 million
annual aggregate for nonsudden accidental occurences.

    Owners or operators who are SELF-INSURING for part  of the liability
coverage requirement by using the financial test in connection with insurance
coverage should consult Section A.4 of Chapter III for required submissions.

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                                   II-6
    5.  Maintaining Coverage.   The  owner  or  operator must maintain the
insurance policy in full force and effect until either  (a)  release has been
obtained from liability coverage requirements (see Section  7)  or (b)  alternate
coverage has been obtained.  If the insurer enters liquidation or has its
authority to issue the policy suspended or revoked, the owner  or operator must
establish substitute liability coverage within 60 days  after the event.

    In addition, the owner or operator must notify the  Regional Administrator
by certified mail within 10 days after the commencement of  bankruptcy
proceedings naming the owner or operator as debtor.

    6.  Notice of Cancellation or Termination of the Insurance Policy
by the  Insurer.   Cancellation  will  only be effective sixty  days  after written
notification from the insurer has been received by the  Regional
Administrator.  Termination of the policy for any other reason than
cancellation (e.g., expiration, non-renewal)  will only  be effective thirty
days after written notification from the insurer has been received by the
Regional Administrator.

    7.  Release from RCRA Liability Coverage Requirements.  To obtain a
release from the liability coverage requirements, the owner or operator must
submit to the Regional Administrator certification that all covered facilities
have been closed in accordance with the specifications  in the  approved closure
plan.   The certification must be supplied by  both the owner or operator and by
an independent  registered  professional engineer.

    8.  Permitted Facility Requirements.  For all new facilities,  an
endorsement or certificate of insurance for sudden and, if  applicable
nonsudden accidental occurrences, must be submitted to  EPA  60  days before the
initial receipt of waste for treatment, storage,  or disposal.   Liability
coverage must be effective by the time of initial receipt of wastes.   There is
no phase-in period for nonsudden coverage for new facilities.

    EXISTING FACILITIES must submit evidence of sudden accidental  occurrence
insurance with their Part B permit applications.   However,  existing facilities
which have not established such coverage because they are located in  INTERIM
AUTHORIZED states with no liability coverage requirements as yet,  should
instead specify in their Part B applications  the mechanism  they intend to use
to comply with the liability coverage requirements.  The instruments  must be
submitted to the Regional Administrator prior to final  permit  decisions.
Owners and operators may wish to obtain liability coverage  earlier than
required to improve relations with the public.   Until the applicable  deadline
in the three-year phase-in of nonsudden coverage requirements  has passed,
securing nonsudden coverage is not a condition of receiving a  RCRA permit for
existing facilities.

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                                   II-7
B.   REGIONAL  OFFICE RESPONSIBILITIES

    This section outlines the duties of the Regional Office in ensuring
satisfaction of requirements.  A summary checklist appears in Attachment II-2
at the end of this chapter.

    I.   Qualifications of Insurer.  Effective October 16, 1982, issuing
institutions must be licensed to transact the business of  insurance or
eligible to provide excess or surplus lines insurance in any of one or more
states.   EPA Regional Office personnel should contact the  insurer and
appropriate state insurance regulatory agencies to verify  qualifications.   See
Appendix B-3 of the manual for Financial Assurance for Closure and  Post-
Closure Care for  a list  of  appropriate  state  authorities.  The insurer need
not be qualified in the state in which the covered facility is located.

    2.  Conformity to Other Requirements.  When an owner or operator submits
an endorsement or a certificate of insurance to the EPA Regional  Office,  the
Regional Administrator must verify that:

         •   The wording of the endorsement is exactly as  required
             by the regulations (see Attachment II-3);

         •   The wording of the certificate is exactly as  required
             by the regulations (see Attachment II-4).

         •   Sudden accidental occurrences coverage is
             demonstrated by the effective date of the regulations
             (interim status facilities) or 60 days before the first
             receipt of hazardous wastes (new permitted facilities).

         •   Nonsudden accidental occurrences coverage is
             demonstrated 60 days before initial receipt of waste
             (new permitted facilities)  or by the dates listed below
             for existing facilities, depending on the revenues or
             sales of the owner or operator of the facility with  the
             largest sales or revenues:
                Sales or Revenues of    |
            Applicable Owner or Operator]
            In Fiscal Year Previous to  |
            Effective Date of Regulation]
Period After Effective Date
of Regulations That Policy
  Must Be Effective
              At least $10 million
 6 months (January 15,  1983)
              Greater than §5 million
              Less than $10 million
18 months (January 15,  1984)
              Less than $5 million
30 months (January 15,  1985)

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                                   II-8
         •   Nonsudden coverage (interim status only),  the owner
             and operator has sent a letter to the Regional
             Administrator no later than January 15,  1983, stating
             date of intended coverage.   Owners or operators with
             sales or revenue over §10 million need not submit such
             a letter, but must demonstrate coverage by that date,

    3.  Recordkeeping and Tracking Systems.   As  endorsements  or  certificates
of insurance are received, the following information should be recorded:   the
name, address, and EPA Identification Number of the facility; insurance policy
number and insurer name; amount of coverage for each facility and effective
date.  The code for insurance policies for liability coverage and the name of
the insurer should be entered into the Hazardous Waste  Data Management System
(HWDMS), Version V.

    Automatic data processing systems can be used to record the intended date
of nonsudden coverage stated in the letter from the owner or operator and
track whether or not coverage is established by the intended date,  or at the
very latest, the required deadline.  A list of current  insurance contracts
could be recorded, not only under the owner's or operator's name,  but also
under each insurer's name, so that in the case of liquidation, de-licensing,
or other reasons, it would be easy to determine which owners or operators need
to obtain financial assurance elsewhere.  This system could also be used to
keep track of mergers and changes in the names of insurers.

    4.  Variance Requests.   Although EPA plans to propose to delete the
variance provision from the liability requirements, Regional Administrators
may receive variance requests from owners or operators.  The burden of
documentation rests on the owner or operator requesting a variance.  The
Regional Administrator may request whatever additional  technical information
he deems necessary.  Following a tentative decision on  the variance request, a
public hearing may be held.   Since the Agency will need to continue to study
the issues related to these provisions,  especially issues raised in comments
received after publication of its proposal to delete variance provisions, the
Regional Offices should communicate closely with Headquarters regarding any
requests for variances and actions contemplated in response to such requests.

    5.  Maintaining Coverage.   The Regional  Administrator must  ensure  that
alternate liability coverage is provided by the owner or operator if the
insurance company becomes disqualified,  ceases operations, or files for
liquidation.  Note that the insurer is not required to  notify the Regional
Administrator or the owner or operator regarding such an eventuality.
Regional Offices are not expected to develop surveillance systems to monitor
such events, but should be prepared to instruct owners  or operators to obtain
alternate assurance in the event the Office becomes aware of disqualification,
liquidation, or termination of the insurer.  The Hazardous Waste Data
Management System may prove useful for this,  as discussed in Section I of
Chapter II of the Manual for Financial Assurance For Closure and Post-
Closure Care.

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                                   II-9
    Regional Office staff may want to review periodically the qualifications
of insurers and the adequacy of insurance policies.   To avoid duplication of
effort, Regional Offices should contact EPA Headquarters before undertaking
such activities.  A program for monitoring samples of insurance policies will
be developed by Headquarters.  The Agency will seek to rely on the existing
oversight activities of state insurance departments to the maximum extent.
Further guidance will be forthcoming.

    6.  Cancellation or Termination of  Insurance.   The insurer or  the  owner
or operator may cancel, terminate, or fail to renew the policy but must first
provide notice to the Regional Administrator.  Cancellation may not occur
during the 60 days beginning with the date of receipt by the Regional
Administrator of a notice of cancellation from the insurer.  Termination for
any other reason may not occur during the 30 days  beginning with the date of
receipt of a notice by the Regional Administrator.

    Upon receipt of a notice of cancellation or termination, the Regional
Administrator should monitor the situation to ensure that alternate coverage
is established before the date the existing policy expires.  The owner or
operator should be contacted to ensure he is aware of the notice and the need
to maintain coverage.

    7.  Release from Requirements.  The Regional  Administrator should
release the owner or operator from the liability coverage requirements if
proper certification of closure has been submitted from both owner or  operator
and an independent registered professional engineer.  The certification must
state that the facility has been closed in accordance with the specifications
in the closure plan.  Certification must be supplied for all facilities
covered by the insurance policy before the owner or operator may terminate
insurance.

    8.  Permitted Facility Requirements

    For new facilities, the endorsement or certificate of insurance for sudden
as well as nonsudden coverage, if applicable, must be submitted to EPA at
least 60 days before the initial receipt of waste.  The phase-in schedule for
nonsudden accidental occurrence coverage does not  apply to new facilities.
Owners or operators of new facilities must obtain  coverage for nonsudden
accidental occurrences effective by the date of initial receipt of waste.

    Existing facilities must submit evidence of sudden accidental occurrence
liability coverage with their Part B permit applications.  Until the
applicable deadline in the three-year phase-in of  nonsudden coverage
requirements has passed, securing nonsudden coverage is not a condition of
receiving a RCRA permit for existing facilities.  However, in states which
have received interim authorization and do not have liability coverage
requirements, existing facilities need not submit  financial instruments with
the Part B application.  Rather, owners or operators need only specify what
mechanism they intend to use;  however, the instruments for sudden accidental

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                                   11-10
occurrence coverage and, if applicable, for nonsudden accidental occurrence
coverage must be submitted to the Regional Administrator prior to final permit
decision.

    The Regional Administrator may wish to require the submission of the
insurance policy itself as part of the permit review process.   Guidance will
be forthcoming concerning review of policies, especially on types of
exclusions and provisions that should be considered to be in conformity with
standard industry practice.

C.  SOURCES  OF FURTHER  INFORMATION

    State agencies listed in Appendix B-3 of the Manual for Financial
Assurance for  Closure and Post-Closure Care can advise whether an insurer is
licensed or eligible to provide insurance.  In addition, national trade
associations can supply general information about the insurance industry.
Major national organizations include the following:

          1.   American Insurance Association
               85 John Street
               New York, New York  10038
               (212) 669-0400
               Trade and service organization of the property and
               casualty insurance industry.

          2.   Insurance Information Institute
               110 William Street
               New York, New York  10038
               (212) 669-9200
               Educational, fact-finding, arid communications
               organization for all lines of insurance except life
               and health insurance.

          3.   Independent Insurance Agents of America
               100 Church Street
               New York, New York  10007
               (212) 285-4250
               Trade association of independent insurance agents.

          4.   Professional. Insurance Agents
               400 North Washington Street
               Alexandria, Virginia  22314
               (703) 836-9340
               Trade association of insurance agents.

          5.   National Association of Insurance Commissioners
               350 Bishops Way
               Brookfield, Wisconsin  53005
               (414) 784-9540
               Organization of state insurance commissioners.

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                    11-11
Alliance of American Insurers
20 North Wacker Drive
Chicago, Illinois  60606
(312) 558-3700
Trade association of fire and casualty insurance
companies.

National Association of Insurance Brokers
311 First Street, N.W.
Suite 700
Washington, D.C.  20001
(202) 783-8880
Trade association of commercial insurance brokers.

National Association of Independent Insurers
2600 River Road
Des Plaines, Illinois  60018
(312) 297-7800
Trade association of fire, casualty, and surety
insurers.

National Insurance Consumer Organization
344 Commerce Street
Alexandria, Virginia  22314
(703) 549-8050
Non-profit public interest membership organization.

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                                   11-12
                               ATTACHMENT ll-l

                      RCRA LIABILITY  INSURANCE COVERAGE
                      CHECKLIST FOR OWNERS OR OPERATORS
Paragraph
 Number  *

   (1)   	   Check that the  policy  covers  the minimum required amount per
              occurrence and  per  year:

              	     For sudden  accidental occurrences, coverage must be at
                      least $1 million per  occurrence, with an annual
                      aggregate amount of at  least $2 million, exclusive of
                      legal defense  costs.
              	     For nonsudden  accidental occurrencest coverage must be
                      at  least  $3 million per occurrence, with an annual
                      aggregate amount of at least $6 million, exclusive of
                      legal  defense  costs.

              	     Coverage  must  be provided  for both bodily injury and
                      property  damage.

   (2)   	   Verify that the insurer is licensed to transact the business
              of insurance or eligible as an excess or surplus lines insurer
              in at least one state  (effective October 16,  1982).

   (4)   	   Submit a signed duplicate original certificate of insurance or
              endorsement to EPA worded exactly  as specified (See Attachments
              II-3 and II-4).

       	    For sudden  accidental  occurrences, demonstrate coverage by
              effective date of regulations  (existing facilities) or 60 days
              before initial receipt of wastes fnew permitted facilities)
              For nonsudden occurrences,  demonstrate  coverage 60 days before
              initial receipt of wastes  (new permitted  facilities) or by the
              dates listed below (existing  facilities)  depending on sales or
              revenues of the owner  or operator with  the  largest sales or
              revenues:
                      Sales or revenues  of  $10 million or more, six months
                      after effective  date  of regulations (January 15,  1983)

                      Sales or revenues  greater than  $5 million but less
                      than $10 million,  18  months  after effective date  of
                      regulations  (January  15, 1984)
   ^Numbers correspond to paragraphs  in Section A.

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                                  11-13
                         ATTACHMENT ll-l  (continued)

                      RCRA LIABILITY INSURANCE COVERAGE
                      CHECKLIST FOR OWNERS  OR OPERATORS
Paragraph
 Number  *
   (5)
   (6)
                      Sales  or  revenues $5 million and less, 30 months after
                      effective date of regulations (January 15, 1985)
Submit letter giving estimated date of coverage  for nonsudden
accidental occurrences by 6 months  after effective date of
regulations (interim status) if coverage is  not  required by that
time.

Maintain policy in full force until released from liability
coverage requirements or alternate  coverage  is obtained.

Arrange for alternate coverage within 60 days  in the  event of
liquidation or ineligibility of insurer.

Notify Regional Administrator within 10 days after
commencement of a bankruptcy proceeding naming owner  or operator
as debtor.

If insurer gives notice to owner or operator of  cancellation
or termination, arrange for alternate coverage that will be
effective prior to expiration of present coverage.

Request approval to terminate the insurance  policy (1) when
alternate coverage is substituted,  or (2) when released from
closure requirements by the Regional Administrator.   Give 60
days written notice to the Regional Administrator.
   ^Numbers  correspond  to  paragraphs  in Section A.

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                                   11-14
                               ATTACHMENT  11-2
RCRA  LIABILITY INSURANCE COVERAGE CHECKLIST FOR REGIONAL OFFICES
    The Regional Administrator  should ensure  that:

Paragraph
 Number  *

   (1)   	   The insurer is  licensed to  transact the business of insurance
            *  or eligible as  a  provider of  excess or surplus  lines insurance
              in any of one or  more  states  (effective October 16, 1982).

   (2)   	   The wording of  the  endorsement  (if supplied)  is exactly as
              required by the regulations (see Attachment II-3).

    "   	   The wording of  the  certificate  of insurance (if supplied) is
              exactly as required by the  regulations (see Attachment II-4).

    "   	   For sudden accidental  occurrences, coverage is demonstrated by
              effective date  of regulations  (interim status) or 60 days before
              new facilities  receive wastes  (permitted status).
              For nonsudden accidental  occurrences, coverage  is demonstrated
              60 days  before initial  receipt of wastes  (new permitted
              facilities)  or by dates listed below, depending on sales or
              revenues of  the owner or  operator with the  largest sales or
              revenues (interim status  facilities):
              	    Sales  or revenues  of  $10 million or more, 6 months
                     after  effective  date  of regulations (January  15, 1983).

              	    Sales  or revenues  over $5 million but  less than $10
                     million, 18  months after effective date of regulations
                     (January 15,  1984).

              	    Sales  or revenues  $5  million  or less,  30 months after
                     effective date of  regulations (January 15, 1985).

              For nonsudden occurrences, a letter  is submitted giving
              estimated date of coverage no later  than 6 months after
              effective date of regulations, if  coverage is not required at
              that time.
     * Numbers correspond to paragraphs  in  Section  B.

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                                  11-15



                        ATTACHMENT 11-2  (continued)


RCRA LIABILITY  INSURANCE COVERAGE  CHECKLIST FOR REGIONAL OFFICES
Paragraph
 Number

   (3)   	   Relevant  information is stored in a recording and tracking
              system.

   (4)   	   Headquarters  is notified upon receipt of variance requests.

   (5)   	   Alternate coverage is provided within 60 days if insurance
              company becomes disqualified, ceases operations, or files for
              liquidation.

   (6)   	   The  owner or  operator or the insurer is contacted for further
              information following receipt of a notice of cancellation or
              termination.

    "   	   Alternate coverage is provided within 60 days after
              notification  of cancellation, or 30 days after notification of
              any  other termination or non-renewal of policy.
   (7)   	   Approve release from liability coverage requirements,  when
              proper certification of closure has been received from owner  or
              operator and an independent registered professional engineer.
     *  Numbers  correspond to paragraphs in Section B.

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                                   11-16
                               ATTACHMENT  11-3

                REQUIRED WORDING FOR HAZARDOUS WASTE FACILITY
                            LIABILITY ENDORSEMENT
                              40 CFR 264.151(0
    A hazardous waste facility liability endorsement  as  required in 40  CFR §§
264.147 or 265.147 must be worded as follows,  except  that instructions  in
brackets are to be replaced with the relevant  information and the brackets
deleted:

Hazardous Waste Facility Liability
Endorsement

    1.  This endorsement certifies that the policy to which the endorsement is
attached provides liability insurance covering bodily injury and property
damage in connection with the insured's obligation to demonstrate financial
responsibility under 40 CFR 264.147 or 265.147.   The  coverage applies at [list
EPA Identification Number, name, and address for each facility] for [insert"
"sudden accidental occurrences," "nonsudden accidental occurrences," or
"sudden and nonsudden accidental occurrences"; if coverage is for multiple
facilities and the coverage is different for different facilities, indicate
which facilities are insured for sudden accidental occurrences, which are
insured for nonsudden accidental occurrences,  and which are insured for
both].  The limits of liability are [insert the dollar amount of the "each
occurrence" and "annual aggregate" limits of the Insurer's liability],
exclusive of legal defense costs.*

         2.  The insurance afforded with respect to such occurrences is
subject to all of the terms and conditions of the policy; provided, however,
that any provisions of the policy inconsistent with subsections (a) through
(e) of this Paragraph 2 are hereby amended to conform with subsections  (a)
through fe):
                                              4
         (a)  Bankruptcy or insolvency of the insured shall not relieve the
Insurer of its obligations under the policy to which  this endorsement is
attached.

         (b)  The Insurer is liable for the payment of amounts within any
deductible applicable to the policy, with a right of  reimbursement by the
insured for any such payment made by the Insurer.  This provision does  not
    *  If the endorsement is for an excess insurance policy,  insert the
following sentence:  "$	 each occurrence and $	 annual
aggregate in excess of the underlying limits of $	 each occurrence
and $	 annual aggregate."

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                                   11-17
                         ATTACHMENT  11-3 (continued)

                REQUIRED WORDING FOR HAZARDOUS WASTE FACILITY
                            LIABILITY ENDORSEMENT
                              40 CFR 264.151(0
apply with respect to that amount of any deductible for which coverage is
demonstrated as specified in 40 CFR 264.147(f)  or 265.147(f).

         (c)  Whenever requested by a Regional  Administrator of the U.S.
Environmental Protection Agency (EPA), the Insurer agrees to furnish to the
Regional Administrator a signed duplicate original of the policy and all
endorsements.

         (d)  Cancellation of this endorsement, whether by the Insurer or  the
insured, will be effective only upon written notice and only after the
expiration of sixty (60) days after a copy of such written notice is received
by the Regional Administrator(s) of the EPA Region(s) in which the
facility(ies)  is(are) located.

         (e)  Any other termination of this endorsement will be effective  only
upon written notice and only after the expiration of thirty (30) days after a
copy of such written notice is received by the  Regional Administrator(s) of
the EPA Region(s) in which the facility(ies) is(are) located.
    Attached to and forming part of policy No.
issued by [name of
Insurer], herein called the Insurer,  of [address  of Insurer]  to [name  of
insured] of [address]  this 	 day of 	,  19  -.   The effective
date of said policy is 	 day of 	,  19 -.

    I hereby certify that the wording of this endorsement is  identical to the
wording specified in 40 CFR 264.151(i) as such regulation was constituted on
the date first above written, and that the Insurer  is  licensed to transact the
business of insurance, or eligible to provide insurance as an excess or
surplus lines insurer, in one or more States.

[Signature of Authorized Representative of Insurer]

[Type name]

[Title], Authorized Representative of [name of Insurer]

[Address of Representative]

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                                   11-18
                               ATTACHMENT  11-4

                REQUIRED WORDING FOR HAZARDOUS WASTE FACILITY
                     CERTIFICATE OF LIABILITY INSURANCE
                              40 CFR 264.151 (j)
    A certificate of liability insurance as required in 40  CFR  §§  264.147 or
265.147 must be worded as follows,  except that the instructions  in brackets
are to be replaced with the relevant information and the brackets  deleted:

Hazardous Waste Facility Certificate of
Liability Insurance

    1.  [Name of Insurer],  (the "Insurer"), of [address of  Insurer] hereby
certifies that it has issued liability  insurance covering bodily injury  and
property damage to [name of insured],  (the "insured"),  of [address of  insured]
in connection with the insured's obligation to demonstrate  financial
responsibility under 40 CFR 264.147 or  265.147.   The coverage applies  at [list
EPA Identification Number,  name, and address for each facility]  for [insert
"sudden accidental occurrences," "nonsudden accidental  occurrences," or
"sudden and nonsudden accidental occurrences"; if coverage  is for  multiple
facilities and the coverage is different for different  facilities, indicate
which facilities are insured for sudden accidental occurrences,  which  are
insured for nonsudden accidental occurrences,  and which are insured for
both].  The limits of liability are [insert the dollar  amount of the "each
occurrence" and "annual aggregate"  limits of the Insurer's  liability],
exclusive of legal defense costs.*   The coverage is provided under policy
number 	, issued on [date].  The effective date of said policy  is
[date].

    2.  The Insurer further certifies the following with respect to the
insurance described in Paragraph 1:

         (a)  Bankruptcy or insolvency  of the insured shall not  relieve  the
Insurer of its obligations under the policy.

         (b)  The Insurer is liable for the payment of  amounts within  any
deductible applicable to the policy,  with a right of reimbursement by  the
insured for any such payment made by the Insurer.   This provision  does not
apply with respect to that amount of any deductible for which coverage is
demonstrated as specified in 40 CFR 264.147(f) or 265.147(f).
    *  If the certificate of liability insurance  is  for  an excess  insurance
policy, insert the following sentence:   "$ - each occurrence and
$ - annual aggregate in excess of the  underlying limits of
$ - each occurrence and $ - annual aggregate."
                                                                                    M

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                                   11-19
                         ATTACHMENT 11-4 (continued)

                REQUIRED WORDING FOR HAZARDOUS WASTE FACILITY
                     CERTIFICATE OF LIABILITY  INSURANCE
                              40 CFR 264.I5KJ)
         (c)  Whenever requested by a Regional Administrator  of  the  U.S.
Environmental Protection Agency (EPA),  the Insurer agrees  to  furnish to  the
Regional Administrator a signed duplicate original of the  policy .and all
endorsements.

         (d)  Cancellation of the insurance,  whether by the Insurer  or the
insured, will be effective only upon written  notice and only  after the
expiration of sixty (60) days after a copy of such written notice is received
by the Regional Administrator(s) of the EPA Region(s) in which the
facility(ies)  is(are) located.

         (e)  Any other termination of the insurance will  be  effective only
upon written notice and only after the expiration of thirty (30) days after a
copy of such written notice is  received by the Regional Administrator(s) of
the EPA Region(s) in which the  facility(ies)  is(are) located.

    I hereby certify that the wording of this instrument is identical to the
wording specified in 40 CFR 264.151(j)  as such regulation  was  constituted on
the date first above written, and that the Insurer is licensed to transact the
business of insurance, or eligible to provide insurance as an  excess or
surplus lines  insurer, in one or more States.


[Signature of authorized representative of Insurer]

[Type name]

[Title], Authorized Representative of [name of Insurer]

[Address of Representative]

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       III.  SATISFYING RCRA LIABILITY COVERAGE REQUIREMENTS
                     USING THE FINANCIAL TEST
    The RCRA liability coverage requirements  may be  satisfied by passing a
test of financial soundness.   The FINANCIAL TEST  demonstrates that  the owner
or operator has adequate resources to cover the  requirements for liability
coverage.  The tests are stringent enough so  that even  in  the event of a rapid
deterioration in the owner's  or operator's financial health, there is
reasonable assurance that funds will  be  available to meet  obligations.

    The financial test regulations for liability coverage  are nearly identical
to those for assurance of closure and post-closure care costs.1-1  Indeed,
owners or operators who wish  to satisfy  both  liability  coverage and  closure
or post-closure care financial assurance through the financial  test must use
the same documentation.  However, there  are differences between the
regulations which are outlined below:

        •   Unlike the closure or post-closure assurance
            requirements, the liability  coverage requirements
            cannot be satisfied by a  CORPORATE GUARANTEE  by
            the owner's or operator's PARENT CORPORATION.

        •   The Regional Administrator is granted specific
            powers under the  closure  and post-closure care
            regulations not granted under the liability
            coverage regulations, such as the power  to  request
            additional financial reports from owners or
            operators.

        •   The owner or operator must supply evidence  of
            liability coverage within 90 days after  the close
            of a fiscal year  if the year-end  financial
            statements reveal the firm no longer satisfies the
            test requirements.  In the case of closure  or  post-
            closure care assurance, the  owner or operator  must
            notify  the Regional  Administrator within  90 days,
            and has an extra  30 days  to  provide  alternative
            assurance.

        •   In the first set  of financial test criteria for
            liability coverage alone,  the owner  or operator
            does not have to  meet certain financial  ratios
            (i.e.,  of LIABILITY to NET WORTH, NET  INCOME to
    1J   To avoid needless  duplication  of  information  in  this manual, the
reader is referred to Chapter VII  of the  manual  for Financial  Assurance for
Closure and Post-Closure  Care.

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                                 III-2
            liabilities,  or CURRENT ASSETS to CURRENT
            LIABILITIES).  In  this respect, the test is less
            stringent  than the  test for closure or post-closure
            care financial assurance.

        •   The financial test  may be used in combination
            with an insurance policy to cover the requirements
            for liability coverage.  However, closure or
            post-closure  care financial assurance requirements
            for individual closure or post-closure cost
            estimates  must be completely met by the financial
            test if it is used  at all.

    The regulations pertaining  to the RCRA financial test for liability
coverage are as follows:
                               EXHIBIT  Ill-l
                       RCRA FINANCIAL  TEST REGULATIONS
           Topic                 Interim Status      Permitted Facilities
Coverage for sudden             40 CFR §265.147(a)(2)   40  CFR  §264.147(a)(2)
accidental occurrences
by financial test

Coverage for nonsudden          40 CFR §265.147(b)(2)   40  CFR  §264.147(b)(2)
accidental occurrences
by financial test

Required Wording of  Letter      40 CFR §264.151(g)      40  CFR  §264.151(g)
from Chief Financial Officer


Source:   Title 40, Code of Federal  Regulations (CFR).


A. RESPONSIBILITIES OF THE OWNER OR OPERATOR

    This section specifies  the requirements of the  financial test  for owners
or operators.  A summary  checklist is provided as Attachment III-l.

    1.  Form and Amount of Coverage.   The financial  test may be used to
cover the requirements for  SUDDEN ACCIDENTAL OCCURRENCES,  NONSUDDEN
ACCIDENTAL OCCURRENCES, or both in combination.  The financial test is always
applied to the ANNUAL AGGREGATE  AMOUNTS of  the liability coverage
requirements, which  are §2  million per year for sudden occurrences,  $6 million

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                                  III-3
per year for nonsudden occurrences, or $8 million per year in combination.
Any portion of the total annual aggregate liability coverage requirements may
be satisfied by the financial test, but liability insurance must be obtained
for the remainder.  The financial test calculations are based only on the
portion of liability coverage requirements not covered by insurance, and if
applicable, the amount of any closure or post-closure cost estimates covered
by the test.

    2.  Qualifications for  the Financial Test.  The year-end financial
statements of the owner or operator must be AUDITED by an independent
CERTIFIED PUBLIC ACCOUNTANT.  If the accountant gives an ADVERSE OPINION
or a DISCLAIMER OF OPINION of the FINANCIAL STATEMENTS, the firm cannot
qualify for the financial test.  Furthermore, if the accountant gives a
QUALIFIED OPINION of the  financial statements, the Regional Administrator may
disallow the use of the financial test.   If this occurs,  the owner or operator
must provide evidence of insurance within 30 days after notification of
disallowance.  See Section III-B, Regional Office Responsibilities, for more
information on accountants' opinions, and under what circumstances the
Regional Administrator would disallow use of the financial tests because of a
Qualified Opinion.

    The financial test requirements may be satisfied by meeting either of two
alternative sets of financial test criteria.  Exhibit III-2 shows the
alternative test requirements for liability coverage alone.  Exhibit III-3
shows the alternative test requirements  for liability coverage and closure  or
post-closure care financial assurance combinations.

    For liability coverage alone, the two alternatives have a number of points
in common, but one important difference:  Alternative 1 requires the firm to
have a certain amount of NET WORKING CAPITAL relative to the annual aggregate
liability coverage requirements.   Alternative 2 requires  that the firm have an  -
INVESTMENT GRADE  BOND  RATING.  Both tests require the owner or operator  to
have a certain amount of TANGIBLE NET WORTH and U.S.  ASSETS relative to
annual aggregate liability coverage and a minimum absolute level of tangible
net worth ($10 million).

    When the financial test is used to cover both liability coverage and
closure or post-closure care requirements, the sum of the annual aggregate
liability coverage and the closure or post-closure cost estimates must be
considered to satisfy test criteria.   Exhibit III-3  shows that the two
alternative sets of criteria have a number of points in common,  but now have a
second important difference.   Alternative 1 requires that firms  demonstrate
financial soundness by passing at least  two of three financial ratios,  as
well as  requiring  a  certain amount of working  capital  relative to the sum of
the total liability coverage plus closure and post-closure costs.   Alternative
2 still only requires an investment grade bond rating.  As before,  both tests
require the owner or operator to have a  certain amount of net worth and U.S.
assets relative to the sum of total coverage,  and a  minimum absolute level  of
net worth ($10 million).

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                                                                  III-4
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-------
                                  III-6
    3.  Arrangements for the Financial Test.  The only outside arrangements
that must be made for the financial test are with an independent  certified
public accountant.  Because the vast majority of owners  or operators who will
select the financial test will already have their financial statements
independently audited, no explanation of how to select an independent
accountant is necessary.

    4.  Submission of Documents to EPA.   To use the  financial test as  a
means of satisfying financial requirements, owners  or  operators must submit
the following:

         a) Chief Financial Officer's  Letter  Including Data from Audited
Financial Statements.  The  owner or operator must submit to the Regional
Administrator a letter signed by its CHIEF FINANCIAL  OFFICER.   The  letter
must be worded and include the data as specified in the  regulations  in force
on the date of submission.   A copy of the required  wording as  it  currently
appears in the regulations is included as Attachment III-3.

    The letter must specify the EPA Identification  Number,  name,  and address
of all facilities covered by the financial test.  If the owner or operator is
using the financial test to establish financial  assurance for  closure or
post-closure care as well as liability coverage, the same letter  must be used
for both purposes.

    Owners or operators  using the  financial test to demonstrate satisfaction
of both liability coverage and closure or post-closure care financial
requirements must fill in four paragraphs regarding facilities and closure
and/or post-closure cost estimates.  The owner or operator must list in the:

        •   First paragraph, all the owner's or operator's
            facilities which are assured for closure or
            post-closure care by the financial test  in an EPA-
            administered financial responsibility program.

        •   Second paragraph, all  facilities owned  or
            operated by subsidiaries which the owner or
            operator has guaranteed through the corporate
            guarantee for closure  or post-closure care in an
            EPA-administered financial responsibility  program.

        •   Third paragraph, facilities of the owner or
            operator or its subsidiaries for which  the owner or
            operator has demonstrated financial  assurance for
            closure or post-closure care by satisfaction of a
            financial test or corporate guarantee in a State
            program of financial responsibility that has
            received INTERIM OR  FINAL AUTHORIZATION.

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                                  III-7
        •   Fourth paragraph, all the owner's or operator's
            facilities for which financial assurance for
            closure or post-closure care has not been
            demonstrated to EPA or a State because they are
            located in a state with interim authorization, but
            without effective financial responsibility
            requirements.

For each facility listed in one of the preceding paragraphs,  the owner or
operator must include its  EPA Identification Number, name, address,  and
current closure and/or post-closure cost estimates.  Each cost estimate must
be identified as for either closure or post-closure care.

    The chief financial officer may not add closure or post-closure  cost
estimates included as liabilities to tangible net worth if liability coverage
alone is being satisfied by the financial test.   The cost estimates  may be
included as liabilities only if the financial test is being used for closure
and post-closure care assurance.

         b) Accountant's Report on Examination.  The owner or operator
must submit a copy of the independent certified public accountant's  REPORT ON
EXAMINATION of the year-end financial statements for the latest complete
fiscal year.  This is the standard report containing the auditor's opinion
which accompanies the annual report.  There is no EPA required form  for this
report, but examples are given in Chapter VII of the manual for Financial
Assurance for Closure and Post-Closure Care.

         c) Special  Report.  The owner or operator must submit a SPECIAL
REPORT from an independent certified public accountant to the Regional
Administrator which contains the accountant's confirmation that the  financial
data contained in the letter from the chief financial officer can be derived
from the independently audited year-end financial statements  and footnotes for
the latest complete fiscal year.  The special report must also state that no
matters came to the attention of the independent certified public account
which caused him to believe that the information in the chief financial
officer's letter should be adjusted.  There is no required form for  the
special report, but a sample special report is shown in Attachment III-4.

    5.  Updating  and Maintaining Coverage.  The  owner  or operator must
submit updated information annually within 90 days of the close of the owner's
or operator's fiscal year.  The owner or operator must satisfy all of the
financial test criteria at each annual update.   As with the initial
submission, the updated information consists of the letter from the  Chief
Financial Officer, the accountant's report on examination, and the special
report from the accountant.  The letter from the chief financial officer must
exactly follow the wording shown in Attachment III-3.

    If the year-end financial statements indicate that the owner or  operator
is still qualified to use the financial test, but can no longer completely
cover the amount of the annual aggregate liability coverage requirements,  the

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                                  III-8
firm may wish to combine liability insurance  with  the  financial test to
provide the necessary coverage.   This  situation would  occur  if the  firm could
not meet requirement B of Exhibits III-2  and  III-3, but  could meet  all other
financial test requirements.   However,  if the year-end financial statements
indicate that the financial status of  the owner or operator  has changed so
that it no longer can satisfy the other requirements of  the  financial test,
the owner or operator must obtain insurance for the entire amount of annual
aggregate liabilities.  This  situation would  occur if  the firm could not meet
requirements A or C or D of Exhibits III-2 or III-3, or  any  of the  other
financial test requirements.   In either case, evidence of insurance must be
submitted to the EPA Regional Administrator within 90  days after the close of
the firm's fiscal year.

    The owner or operator must inform  the Regional Administrator within 10
days after being named as a debtor in  a bankruptcy proceeding.

    6.  Release from RCRA Liability Coverage Requirements. To obtain
release from the liability coverage requirements,  the  owner  or operator must
submit to the Regional Administrator certification that  all  covered facilities
have been closed in accordance with the specifications in each approved
closure plan.  The certification must  be  supplied  by both the owner or
operator and by an independent  registered professional engineer.

    7.  Permitted Facility Requirements.   A new PERMITTED  FACILITY must
submit the letter from the chief financial officer and the reports  from an
independent certified public  accountant at least 60 days before the date on
which hazardous waste is first received for treatment, storage, or  disposal.
There is no provision for extending this  deadline  to accomodate firms whose
fiscal year ends ninety days  before.   Requirements for EXISTING FACILITIES
are described in Section A.8  of Chapter II.

B.   REGIONAL OFFICE RESPONSIBILITIES

    This section outlines the duties of the EPA Regional Office in  reviewing
the submission of financial data and handling subsequent contingencies.  A
summary checklist is provided by Attachment III-2  at the end of this chapter.

    I.   Qualifications of Accountant.   EPA personnel should first confirm
that the independent accountant responsible for preparing the report on
examination and special report is licensed by a state  as a. certified public
accountant.  Staff can check  the credentials  of the accountant by contacting
the State Board of Accountancy in the  state where  the  accountant resides.  The
State Boards are listed in Appendix B-4 of the manual  for Financial  Assurance
for Closure and  Post-Closure Care.

    2.  Conformity to Other  Requirements

         a) Chief Financial Officer's Letter.   EPA personnel  should review
the letter from the chief financial officer and verify that  it is complete and
accurate.  The firm should be contacted to verify  that the signatory of the

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                                  III-9
letter is the chief financial officer -- the person required to sign SEC
FORM 10-K or the equivalent.   The financial test  criteria should  be applied
to the annual aggregate liability coverage requirements,  which are  $2 million
per year for sudden accidental occurrences, $6 million per year for nonsudden
accidental occurences, or $8 million per year in combination, or the portion
thereof that is not covered by liability insurance.  If any of the  criteria
for the financial test are not met, or if anything is missing from  the letter,
the Regional Administrator should immediately notify the owner or operator and
ensure that liability insurance is obtained or proper submissions made.

    If the financial test is also being used to provide financial coverage of
closure or post-closure costs,  the same letter from the chief financial
officer must be submitted for both purposes.  In this case, the criteria of
the financial test are applied to the sum of the annual aggregate liability
coverage requirements and the closure or post-closure cost estimates covered
by the financial test.

    If there is any reason to question the validity of the financial data, the
Regional Administrator may want to request the audited financial statements
from'the firm, or obtain the Form 10-K from the U.S. Securities and Exchange
Commission (SEC) (see Section C, Sources of Further Information).  MOODY'S
or STANDARD AND POOR'S bond guides may be checked to verify that the bond
ratings are as claimed.  Major libraries (public and university) as well as
libraries in Regional Offices of the SEC should have current editions of the
bond rating guides.  The reference staff of any library will know where  the
nearest copies are held.

    To assist in future evaluations of the owner's  or operator's submissions,
it is strongly recommended that the Regional staff  establish a file of data
taken directly from the chief financial officer's letter for each owner  or
operator.  Exhibit III-4 is an example of such a file.  The use of  the file
will be described in Section 3 below.

         b) Review of the Accountant's  Opinion  of  the Financial Statements.
EPA personnel should next determine what kind of opinion was expressed in the
accountant's report on examination:  UNQUALIFIED OPINION, Qualified  Opinion,
or Adverse Opinion; or if there was a Disclaimer of Opinion.

    An Unqualified Opinion can be recognized because it consists of two  short
paragraphs expressing no doubts about the financial statements.  See
Attachment VII-4 of the manual for Financial Assurance for Closure  and
Post-Closure Care  for  two  examples  of Unqualified  Opinions.

-------
                                  111-10



                                  EXHIBIT 111-4

                      SAMPLE FILE ON OWNER OR OPERATOR
DATE OF
CLOSE OF FISCAL YEAR
Owner/Operator
                                              Initial      Second     Third
                                               Year       Year      Year
 1.   Annual Aggregate  Liability Coverage
     Requirements  and  total closure and
     post-closure  cost estimates if
     applicable

 2.   Bond Rating

 3.   Total Liabilities

 4.   Tangible  Net  Worth

 5.   Net Worth

 6.   Current Assets

 7.   Current Liabilities

 8.   Net Working Capital

 9.   Sum of Net  Income, Depreciation,
     Depletion,  and Amortization

10.   Total assets  in U.S.

11.   Total assets

12.   Line 4 divided by Line 1

13.   Line 8 divided by Line 1

14.   Line 10 divided by Line 11

15.   Line 10 divided by Line 1

-------
                                  III-9
letter is the chief financial officer -- the person required to sign SEC
FORM  10-K or the equivalent.   The financial test  criteria should be applied
to the annual aggregate liability coverage requirements,  which are $2 million
per year for sudden accidental occurrences, $6 million per year for nonsudden
accidental occurences, or $8 million per year in combination, or the portion
thereof that is not covered by liability insurance.  If any of the criteria
for the financial test are not met, or if anything is missing from the letter,
the Regional Administrator should immediately notify the owner or operator and
ensure that liability insurance is obtained or proper submissions made.

    If the financial test is also being used to provide financial coverage of
closure or post-closure costs, the same letter from the chief financial
officer must be submitted for both purposes.  In this case, the criteria of
the financial test are applied to the sum of the annual aggregate liability
coverage requirements and the closure or post-closure cost estimates covered
by the financial test.

    If there is any reason to question the validity of the financial data, the
Regional Administrator may want to request the audited financial statements
from the firm, or obtain the Form 10-K from the U.S. Securities and Exchange
Commission (SEC) (see Section C, Sources of Further Information).  MOODY'S
or STANDARD AND POOR'S bond  guides may be checked to verify that the bond
ratings are as claimed.  Major libraries (public and university) as well as
libraries in Regional Offices of the SEC should have current editions of the
bond rating guides.  The reference staff of any library will know where  the
nearest copies are held.

    To assist in future evaluations of the owner's  or operator's submissions,
it is strongly recommended that the Regional staff establish a file of data
taken directly from the chief financial officer's letter for each owner  or
operator.  Exhibit III-4 is an example of such a file.  The use of the file
will be described in Section 3 below.

         b) Review of the Accountant's  Opinion  of  the Financial Statements.
EPA personnel should next determine what kind of opinion was expressed in the
accountant's report on examination:  UNQUALIFIED OPINION, Qualified  Opinion,
or Adverse Opinion; or if there was a Disclaimer of Opinion.

    An Unqualified Opinion can be recognized because it consists of two  short
paragraphs expressing no doubts about the financial statements.  See
Attachment VII-4 of the manual for Financial Assurance for Closure and
Post-Closure Care  for  two  examples  of Unqualified  Opinions.

-------
                                  III-10



                                  EXHIBIT 111-4

                      SAMPLE FILE  ON OWNER OR OPERATOR
DATE OF
CLOSE OF FISCAL YEAR
Owner/Operator
                                               Initial     Second      Third
                                                Year       Year      Year
 1.  Annual Aggregate Liability Coverage
     Requirements and total  closure and
     post-closure cost estimates if
     applicable

 2.  Bond Rating

 3.  Total Liabilities

 4.  Tangible Net Worth

 5.  Net Worth

 6.  Current Assets

 7.  Current Liabilities

 8.  Net Working Capital

 9.  Sum of Net Income, Depreciation,
     Depletion, and Amortization

10.  Total assets in U.S.

11.  Total assets

12.  Line 4 divided by Line  1

13.  Line 8 divided by Line  1

14.  Line 10 divided by Line 11

15.  Line 10 divided by Line 1

-------
                                 III-ll



                           EXHIBIT  111-4 (continued)

                     SAMPLE FILE ON  OWNER OR OPERATOR
16.  Line 9  divided by Line 3

17.  Line 6  divided by Line 7

18.  Line 3  divided by Line 5

19.  Qualified  Auditor's Opinion?
                                              Initial
                                               Year
Second
  Year
Third
 Year
NOTES:

    [Adverse Business Press Releases,  Competitive Problems, Bond Ratings  Drop]

-------
                                  111-12
    Qualified Opinions express some reservations by the accountant that the
financial statements fairly or completely represent the financial condition
and operating results of the owner or operator.   Qualified Opinions are easily
recognized because the final paragraph of the opinion will usually begin with
"In our opinion, subject to  ...",  or  "in  our  opinion, except  for...."

    "Subject to" Qualified Opinions are given when the accountant believes the
financial statements only represent fairly the economic condition of the owner
or operator subject to the outcome of certain unforeseeable events.  Examples
of "Subject to" Qualified Opinions are given in Attachments VII-7, VII-11, and
VII-12 of the manual for Financial Assurance for Closure and Post-Closure
Care.

    "Except for" Qualified Opinions are given when the accountant believes the
financial statements, except for certain qualifications,  represent fairly the
economic condition of the owner or operator.   The phrase  "except for" appears
somewhere in the opinion.  Examples of "Except for" Qualified Opinions  are
given in Attachments VII-8,  VII-9, and VII-10 of -he manual for Financial
Assurance for  Closure and Post-Closure  Care.

    An Adverse Opinion is given when the accountant believes  that the
financial statements do not present fairly the financial  condition of the
owner or operator.  The auditor will clearly state this in the  final paragraph
of the opinion.  An example of an adverse opinion is given in Attachment
VIII-6 of the manual for Financial Assurance for Closure and Post-Closure
Care.

    A Disclaimer of Opinion means that the accountant cannot  express an
opinion on the financial statements of the owner or operator.   A report on
examination will still be given, but the final paragraph  will state that an
opinion could not be expressed on the financial statements.  An example of a
disclaimer of opinion is given in Attachment VII-7 of the manual for Financial
Assurance for  Closure and Post-Closure  Care.

    Some examples of conditions likely to result in a Qualified Opinion,
Adverse Opinion, and Disclaimer of Opinion are given in Exhibit III-5.

    When evaluating accountants' opinions, EPA personnel  should:

         1.  Immediately "pass" an owner or operator if it has  received an
Unqualified Opinion and meets all the other requirements.  Probably at  least
907a of the owners and operators who use the financial test will have
Unqualified Opinions.  Accountants generally render Unqualified Opinions to
most large companies.  Since owners or operators must have a  tangible net
worth of at least $10 million to qualify for the financial test, most
applicants will fall into this category.

         2.  Immediately disqualify an owner or operator  from the financial
test if it has received either (1) an Adverse Opinion,  or (2)  a Disclaimer of
Opinion.  None of the owners or operators should have these types of

-------
111-13














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-------
                                  111-14
opinions.  The regulations explicitly disqualify owners or operators from the
financial test if they have either of these two types of opinions.   In
addition, although not specifically addressed in the regulations,  a "subject
to" type of Qualified Opinion based on a "going concern" issue is  generally
considered so serious that any firm receiving one should be disqualified from
the financial test.  See Attachment VII-8 of the manual for Financial
Assurance for Closure and Post-Closure Care for an example  of  a  "subject  to"
Qualified Opinion based on a "going concern" issue.   If disqualified,  the
owner or operator should be notified immediately.  The Regional  Administrator
must ensure that evidence of insurance for liability coverage requirements  is
submitted within 30 days after notification of disqualification.

         3.  Conduct further investigations if an owner or operator received
any other type of Qualified Opinion (either an "except for" or a "subject
to").  A small number of owners or operators, perhaps 10%, will  have Qualified
Opinions.  Most of the review effort should be directed toward owners  or
operators falling into this category.   The rest of this section  provides
guidance on how to evaluate these opinions.

    EPA Staff should undertake the following four steps whenever an owner or
operator has a Qualified Opinion (either an "except  for" or "subject to,"
excluding those rendered on the basis of a "going concern" issue):

         1.  The owner or operator should be asked to submit  a copy of the
latest financial statements.   Alternatively, a copy  of the latest  Form 10-K
could be obtained from the SEC.

         2.  The opinion rendered by the accountant  should be thoroughly
understood in the context of the financial statements:

         •   If it is an "except for" opinion, the EPA staff
             should determine if the part of the statements which
             gives rise to the "except for" qualification has any
             bearing on the owner's or operator's ability to  pass
             the financial test; or

         •   If it is a. "subject to" opinion, EPA staff should
             determine the likelihood of the occurrence of the event
             the accuracy of the financial statements are "subject
             to", and the importance of the event's  occurrence or
             nonoccurrence on the owner's or operator's ability  to
             pass the financial test.

         3.  If not enough information is available  in the opinion or
financial statements to make a satisfactory decision, the firm should  be
required to submit a written explanation of why the  qualification  should not
be grounds for disallowal of the use of the financial test.

         4.  If the matter is still unresolved, contact EPA headquarters for
additional assistance.

-------
                                  111-15
         When the Regional Administrator disallows use of the financial test
because of a qualified opinion, the owner or operator must provide evidence of
insurance within 30 days after notification of disallowance.

         c) Special  Report from Auditor.  EPA personnel should review the
auditor's confirmation of the letter from the chief financial officer,  and
verify that the auditor has reviewed the data specified in the chief financial
officer's letter and was able to trace the data back to figures found in the
owner's or operator's independently audited, year-end financial statements for
the latest fiscal year.  It should be noted that the auditor's confirmation
does not pass judgment on whether the owner or operator,  is economically
viable, nor does it assess the value of the financial data contained in the
letter.  No specific form is required for the auditors special report.
However, Attachment III-4 provides an example of an auditor's confirmation.

    3.  Record keep ing and Tracking Systems.   As  financial  information  is
received, relevant data should be recorded and verified.   The code for  the
financial test and the amount of the cost estimates for which financial
assurance for closure or post-closure care and liability coverage are provided
by the financial test should be entered into the HWDMS.  Regional Office staff
could keep a file on each submitting firm, such as the one shown in Exhibit
III-4 (pp. 111-10 and 11) which summarizes key financial data.  The
recordkeeping and tracking system should be used to keep track of all owners
or operators, with most of the effort focused on firms that:

         •   Fail to submit chief financial officer's letter
             within 90 days after the close of their fiscal year;

         •   Barely pass the criteria of the financial test;  and

         •   Receive adverse business publicity.

Section 5 below provides more detail on type of firms that should be monitored
closely.

    4.  Variance Requests.   Chapter II,  Section B.4 provides guidance  on how
the Regional Administrator should handle VARIANCE  requests.

    5.  Updating  and Maintaining Coverage.  The Regional  Administrator must
re-evaluate each owner or operator every year following the same procedures
each time.

         a) Reviewing  Annual Submissions.  Within 90  days after the close of
every fiscal year, the owner or operator must resubmit updated information
including the letter from the chief financial officer, a copy of the
accountant's report on examination of the year-end financial statements,  and
the special audit report.  Failure to do so is an indication of financial
deterioration of the submitting firm, thus late submissions should be
monitored closely.  All the financial test criteria must be met;  if not the
owner or operator must submit evidence of insurance to the Regional

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                                  111-16
Administrator within 90 days after the close of the fiscal year for which
year-end financial data show the owner or operator no longer meets the test
requirements.

         b) On-going Monitoring.   The Regional Office  staff can monitor  the
business press for adverse news about owners or operators.  Ideally, an
on-line computerized business data base service such as DIALOG could be used
for this purpose.  Through the computerized data base,  or manually, the
Business Periodical  Index and the F&S  Corporate Index can be searched using
the firm's name as a "keyword," for:

         •   Omission of a dividend;
         •   Delisting from an exchange;
         •   Suspended trading;
         •   Mergers, Acquisitions, Divestitures;
         •   Financial losses;
         •   Competitive problems;
         •   Bankruptcy proceedings;
         •   Decreases in bond ratings; and
         •   Sharp stock price decreases.

    Regional Offices should coordinate their review procedures with EPA
Headquarters.   Approaches to centralizing some review procedures for the
financial test are currently being studied.

         c) Further  Investigation.  Under  the regulations for financial
assurance for closure or post-closure care costs,  the Regional Administrator
can obtain reports of financial condition from the owner or operator if he
believes that the firm may no longer  meet the financial test criteria.  Based
on the requested reports or any other material, the Regional Administrator may
then disallow use of the financial test and require that alternate coverage be
provided.

    The liability coverage regulations do not specifically grant the Regional
Administrators the same power to obtain information from owners or operators
or disallow use of the financial test.   However, if the tests are used to
cover both liability and closure/post-closure care financial requirements,
the Regional Administrator would still retain these powers, but only in
reference to closure or post-closure  care assurance.   In the final analysis,
this means that the Regional Administrator can disallow use of the financial
test for closure or post-closure costs at any time during the year, but for
the liability coverage requirements only at the end of the owner's or
operator's fiscal year.

    6.  Release from Requirements.  The Regional Administrator should
release the owner or operator from the liability coverage requirements if
proper certification of closure for all facilities has been submitted from
both owner or operator and an independent registered professional engineer.
The certifications must state that the facility has been closed in accordance
with the specifications in its closure plan.  Owners or operators do not need

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                                  111-17
to demonstrate liability coverage for  facilities correctly certified as
properly closed, however, owners  or operators  are not released from the
liability coverage requirements until  all  their facilities have been so
certified.

    7.  Permitted Facility Requirements.   For new facilities the financial
test submissions for sudden coverage,  and  nonsudden coverage if applicable,
must be submitted to EPA at least 60 days  before the initial receipt of
waste.  For further information on permitted facility requirements see Section
B.8 of Chapter II.


C.  SOURCES OF FURTHER INFORMATION

    For further  information on the financial test, Background  Document  for
the Financial Test and Municipal  Revenue  Test, September 16, 1981, including
Appendix A - Evaluating the Effectiveness of Alternative Financial Tests,
September 4,  1981 and Appendix B - Cost Analysis for a Financial Test,
September 4,  1981.  See also Background Document,  Financial Test for
Liability Coverage including Appendix:  Cost Analysis for a Financial Test
for Liability Coverage, April 9,  1982.

    Standard reference books are  listed  in Section D of Chapter VII of the
manual for Financial Assurance for Closure and Post-Closure Care.

    To obtain Form 10-K or 10-Q reports  from the SEC, contact:  The U.S.
Securities and Exchange Commission's Public Reference Room, located at 1100 L
Street, N.W.,  Washington, D.C. (telephone:  (202) 523-5506).  Copies of
reports can be obtained by mail.

    Finally,  the American Institute of Certified Public Accountants, 1620  Eye
Street, N.W.,  Washington, D.C.  20006,  (202) 872-8190 may be of assistance.

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                                  :n-i&
                                ATTACHMENT III-I

              RCRA LIABILITY  COVERAGE FINANCIAL TEST CHECKLIST
                           FOR  OWNERS OR OPERATORS

Paragraph
 Number  *

   (2)  	   Owner or  operator's financial statements are audited by an
             independent  certified public accountant.

   (2)  	   If a notice  of disallowance is issued because of a qualified
             opinion  in the report on examination, submit evidence of
             insurance by 30 days after notification.

    "  	   Owner or  operator meets requirements of the appropriate
             Alternative  I  or Alternative II tests, depending on whether or
             not the  tests  are used to satisfy closure or post-closure care
             costs and liability coverage requirements in combination.

   (4)  	   Submit letter  from  chief financial officer.  Use same letter to
             cover both liability coverage and closure or post-closure care
             requirements,  if applicable.

    "  	   Submit independent  CPA's report on examination of year-end
             financial statements.

    "  	   Submit independent  CPA''s special report confirming data in
             chief financial officer's letter.

    "  	   Request  extension of initial reporting deadline if fiscal year
             ends less than 90 days before effective date of regulations.

   (5)  	   Submit no later than 90 days after the end of every fiscal year
             an updated:

                 	   Chief financial officer's letter
                 	   Independent CPA's report on examination of year-end
                      financial  statements

                 	   Independent CPA's confirmation of data in chief
                      financial  officer's  letter

             Submit evidence  of  liability  insurance coverage to EPA within
             90 days  after  end of fiscal year if owner or operator no longer
             meets requirements  of  financial test.

             Notify Regional  Administrator within 10 days after the
             commencement of  a bankruptcy proceeding.
       Numbers  correspond to  the  paragraphs  in Section A.

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                                 111-19
                             ATTACHMENT 111-2

              RCRA LIABILITY COVERAGE FINANCIAL TEST CHECKLIST
                            FOR REGIONAL OFFICES
   The Regional  Administrator should ensure that:

Paragraph
 Number  *
   (1)  	   The  independent accountant is certified by the State Board of
             Accountancy  in the state where the accountant resides.

   (2)  	   The  required criteria are satisfied in the chief financial
             officer's  letter.  The same letter is used to cover both
             liability  coverage and closure or post-closure care financial
             requirements, if applicable.

    "  	   The  chief  financial officer's letter is signed.
             Independent  auditor's report on examination of year-end
             financial statements is reviewed:

                	  "Pass" owners or operators with unqualified opinions
                     who otherwise qualify.

                	  Immediately disqualify owners or operators  with
                     disclaimers of opinion, adverse opinions, or "subject to"
                     qualified opinions based on a "going concern" issue.

                	  Submit to further investigation owners or operators
                     with any other type of qualified opinion.

             Owners or operators that are disqualified because of a
             qualified opinion are notified, and evidence of insurance
             submitted within 30 days after notification.

             The independent auditor's special report, confirming the chief
             financial officer's letter is acceptable.
     *  Numbers  correspond to paragraphs in Section B.

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                                 111-20
                       ATTACHMENT  111-2 (continued)

              RCRA LIABILITY COVERAGE  FINANCIAL TEST CHECKLIST
                           FOR REGIONAL OFFICES
Paragraph
 Number
   (3)  	   Relevant data is recorded,  and  if  appropriate, entered into
            HWDMS.

    "  	   Financial information is verified.

   (5)  	   The following are submitted no  later than 90 days after the
            close of each fiscal year:

            	  Updated chief financial officer's  letter
            	  Independent auditor's  report  on examination of
                 year-end financial statements.

            	  Updated special report
     * Numbers  correspond to paragraphs in Section  B.

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                                  111-21
                              ATTACHMENT 111-3

          REQUIRED WORDING FOR LETTER FROM CHIEF FINANCIAL OFFICER
                              40 CFR 264.51 (g)
    Letter from Chief Financial Officer (to demonstrate liability coverage  or
    to demonstrate both liability coverage and assurance of closure or
    post-closure care).

    [Address to Regional Administrator of every region in which facilities  for
    which financial responsibility is to be demonstrated through the financial
    test are located.]

    I am the chief financial officer of [owner's or operator's name and
address].   This letter is in support of the use of the financial test to
demonstrate financial responsibility for liability coverage [insert "and
closure and/or post-closure care" if applicable] as specified in Subpart H  of
40 CFR Parts 264 and 265.

    [Fill out the following paragraphs regarding facilities and liability
coverage.   For each facility, include its EPA Identification Number, name,  and
address].

    The owner or operator identified above is the owner or operator of the
following facilities for which liability coverage is being demonstrated
through the financial test specified in Subpart H of 40 CFR Parts 264 and 265:
    [If you are using the financial test to demonstrate coverage of both
liability and closure and post-closure care, fill in the following four
paragraphs regarding facilities and associated closure and post-closure cost
estimates.  If there are no facilities that belong in a particular paragraph,
write "None" in the space indicated.  For each facility, include its EPA
Identification Number, name, address, and current closure and/or post-closure
cost estimates.  Identify each cost estimate as to whether it is for closure
or post-closure care.]

    1.   The owner or operator identified above owns or operates the following
         facilities for which financial assurance for closure or post-closure
         care is demonstrated through the financial test specified in Subpart
         H of 40 CFR Parts 264 and 265.  The current closure and/or
         post-closure estimates covered by the test are shown for each
         facility:

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                                  111-22
                        ATTACHMENT  111-3 (continued)

          REQUIRED WORDING FOR LETTER FROM CHIEF FINANCIAL OFFICER
                              40 CFR 264.51(g)
    2.    The owner or operator identified  above  guarantees, through the
         corporate guarantee specified  in  Subpart H of 40 CFR Parts 264 and
         265, the closure and post-closure care  of the following  facilities
         owned or operated by its  subsidiaries.  The current cost estimates
         for the closure or post-closure care  so guaranteed are shown for each
         facility:
         In States where EPA is  not  administering the  financial requirements
         of Subpart H of 40  CFR  Parts  264  and  265, this owner or operator is
         demonstrating financial assurance for the closure or post-closure
         care of the following facilities  through the  use of a test equivalent
         or substantially equivalent to  the financial  test specified in
         Subpart H of 40 CFR Parts 264 and 265.  The current closure and/or
         post-closure cost estimates covered by such a test are shown for each
         facility:
    4.    The owner or operator identified  above owns or operates the following
         hazardous waste management  facilities for which financial assurance
         for closure or, if a disposal  facility, post-closure care, is not
         demonstrated either to EPA  or  a State through the financial test or
         any other financial assurance  mechanism specified in Subpart H of 40
         CFR Parts 264 and 265 or  equivalent  or substantially equivalent State
         mechanisms.  The current  closure  and/or post-closure cost estimates
         not covered by such financial  assurance are shown for each facility:
    This owner or operator [insert  "is  required"  or  "is not required"] to file
a Form 10K with the Securities  and  Exchange  Commission  (SEC)  for the  latest
fiscal year.

    The fiscal year of this  owner or operator  ends on  [month, day].   The
figures for the following items marked  with  an asterisk are derived from this
owner's or operator's independently audited, year-end  financial statements and
footnotes for the latest completed  fiscal  year, ended  [date].

    [Fill in part A if you are  using the financial test to demonstrate
coverage only for the liability requirements.]

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                                  111-23
                        ATTACHMENT 111-3  (continued)

          REQUIRED WORDING FOR LETTER  FROM CHIEF  FINANCIAL OFFICER
                               ALTERNATIVE  I

Part A.  Liability Coverage  for Accidental Occurrences

    [Fill in Alternative I if  the criteria of paragraph (f)(l)(i) of §§264.147
or 265.147 are used.   Fill in  Alternative II  if the criteria of paragraph
(f)(l)(ii) of §§264.147  or 265.147  are used.]

                               ALTERNATIVE I
 1.   Amount of annual  aggregate  liability coverage to be       9-
      demonstrated

                                                               «
*2.   Current assets


*3.   Current liabilities                                       *-


 4.   Net working capital  (line 2 minus line 3)                 *-

                                                               §
*5.   Tangible net worth                                        v-

*6.   If less than 90%  of  assets  are located in the
      U.S.,  give total  U.S.  assets                              *-
                                                                YES     NO
 7.   Is line 5  at  least  $10 million?
 8.   Is line 4  at  least  6  times  line 1?
 9.   Is line 5  at  least  6  times  line 1?
*10.  Are at least  90% of assets  located in the
      U.S.?  If  not,  complete  line  11.
 11.  Is line 6  at  least  6  times  line 1?
                                ALTERNATIVE II


 1.   Amount of annual  aggregate liability coverage to be
      demonstrated

*2.   Current bond rating  of most recent issuance and
      name of rating service

 3.   Date of issuance  of  bond

 4.   Date of maturity  of  bond

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                                                                 YES     NO
                                  111-24



                        ATTACHMENT 111-3 (continued)

Part A (continued)

                          ALTERNATIVE II (continued)


-5.   Tangible net worth

*6.   Total assets in U.S. (required only if less than

      90% of assets are located in the U.S.)
 7.   Is line 5 at least $10 million?
 8.   Is line 5 at least 6 times line 1?
"9.   Are at least 90% of assets located in the
      U.S.?  If not, complete line 10.
10.   Is line 6 at least 6 times line 1?
      [Fill in part B if you are using the financial test to demonstrate
assurance of both liability coverage and closure or post-closure care.]

Part B.   Closure or Post-Closure Care and Liability Coverage

      [Fill in Alternative I if the criteria of paragraphs (f)(l)(i) of
§§264.143 or 264.145 and (f)(l)(i) of §264.147 are used or if the criteria of
paragraphs (e)(l)(i) of §§265.143 or 265.145 and (f)(l)(i) of §265.147 are
used.  Fill in Alternative II if the criteria of paragraphs (f)(l)(ii) of
§§264.143 or 264.145 and (f)(l)(i:L) of §264.147 are used or if the criteria of
paragraphs (e)(l)(ii) of §§265.143 or 265.145 and (f)(l)(ii) of §265.147 are
used.]

                                 ALTERNATIVE I

                                                                *
 1.   Sum of current closure and post-closure cost estimates     	
      [total of all cost estimates  listed above]
 2.   Amount of annual aggregate liability coverage to
      be demonstrated
 3.   Sum of lines 1 and 2

 r4.   Total liabilities (if any portion of the closure or
      post-closure cost estimates is included in your total
      liabilities, you may deduct the amount of that
      portion from this line and add that amount to lines
      5 and 6)

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                                   111-25


,     t*


                         ATTACHMENT  111-3 (continued)


 Pait 3  (continued)


                           ALTERNATIVE I (continued)

                                                                 §
 *5.   Tangible net  worth                                        y	

                                                                 $
 »6.   Net  worth                                                 y	

                                                                 «
 *7.   Current  assets                                              	

                                                                 §
 ""8.   'Jjrrerit  liabilities                                         	


 *9.   Net  working capital  [line 7 minus line 8]                 *	

                                                                 5
 *10.  The  sum  of net  income plus depreciation, depletion,       y	
      and  amortization


 -11.  Total  assets  in U.S.  (required only if less than 90       *	
      percent  of assets  are located in the U.S.)


                                                                 YES     NO


  12.  Is  line  5 at  least $10 million?                           	   	


  13.  Is  line  5 at  least 6 times line ??                        	   	


  14.  Is  line  9 at  least 6 times line 3?                        	   	


 *15.  Are  at least  90 percent of assets located                 	   	
      in the U.S.?   If not, complete line 16.


  16.  Is  line  11 at xeast  6 times line 3?                       	   	


  17.  Is  line  4 divided  by line 6 less  than 2.0?                	   	


  18.  Is  line  10 divided by line 4 greater than 0.1?            	   	


  19.  Is  Line  7 diviueu  ;.y . - - •? •; • - -  •-• - :^an 1.5?             	   	

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                                  111-26



                        ATTACHMENT  111-3 (continued)

Part B (continued)

                               ALTERNATIVE II

                                                                6
 1.   Sum of current closure and post-closure cost  estimates     y	
      [total of all cost estimates listed above]

 2.   Amount of annual aggregate liability coverage to

      be demonstrated                                           *	


 3.   Sum of lines 1 and 2                                      "	

 4.  .Current bond rating of most recent issuance and
      name of rating service                                    	

 5.   Date of issuance bond                                     	

 6    Date of maturity of bond                                  	


*7.   Tangible net worth (if any portion of the closure  and      *	
      post-closure cost estimates is  included in "total
      liabilities" on your financial  statements, you may
      add the amount of that portion  to this line)


*8.   Total assets in the U.S. (required only if less than       *	
      90 percent of assets are located  in the U.S.)
                                                                YES     NO

 9.   Is line 7 at least $10 million?                           	    	

 10.  Is line 7 at least 6 times line 3?                        	    	
*11.  Are at least 90% of assets located
      in the U.S.?  If not,  complete line 12.

 12.  Is line 8 at least 6 times line 3?
    I hereby certify that the wording of this  letter  is  identical to the
wording specified in 40 CFR 264.151(g) as such regulations were constituted on
the date shown immediately below.

[Signature]

[Name]

[Title]

[Date]

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                                  111-27
                                ATTACHMENT 111-4

                    EXAMPLE OF  AUDITOR'S  SPECIAL REPORT,
              CONFIRMATION OF CHIEF FINANCIAL OFFICER'S LETTER
    We have examined the financial statements of XYZ Company for the year
ended December 31, 19X1, and have issued our report thereon dated March 15,
19X2.  Our examination was made in accordance with generally accepted auditing
standards and, accordingly, included such tests of the accounting records and
such other auditing procedures as we considered necessary in the circumstances.

    The Company has prepared documents to demonstrate its financial
responsibility under the Environmental Protection Agency's financial assurance
regulations, in compliance with 40 CFR 264 and 265, Subpart H.   This letter  is
furnished to assist the Company in complying with these regulations  and should
not be used for other purposes.

    The attached schedule reconciles the specified information  furnished in
the chief financial officer's letter in response to the regulations  with the
Company's financial statements.  In connection therewith, we have:

         1.  Agreed the amounts in the column "per financial
             statements" with amounts contained in the Company's
             financial statements for the year ended December 31,
             19X1.

         2.  Agreed the amounts in the column "per chief financial
             officer's letter" to the Letter prepared in response to
             the regulations.

         3.  Recomputed the totals and percentages.

    Because the above procedures do not constitute an examination made in
accordance with generally accepted auditing standards,  we do not express an
opinion on any amounts or items referred to above.   In connection with the
procedures referred to above, no matters came to our attention  that  caused us
to believe the Schedule should be adjusted.

-------
                                 111-28
Line number
     in
CFO's Letter
        ATTACHMENT 111-4  (continued)

                 XYZ COMPANY

       LIABILITY COVERAGE REQUIREMENTS

        YEAR ENDED DECEMBER 31, 19X1

SCHEDULE RECONCILING AMOUNTS CONTAINED IN THE
CHIEF FINANCIAL  OFFICER'S LETTER FURNISHED IN
RESPONSE TO 40 CFR  264 AND 265, SUBPART H TO
AMOUNTS CONTAINED IN THE FINANCIAL STATEMENTS

                                  Per
                               Financial
                               Statements
 Per
CFO's
Letter
     2

     3

     4

     5
 Total current  assets

 Total current  liabilities

 Net working capital  (2 - 3)

 Net Worth
 Less:  Cost in excess of
        value of tangible
        assets  acquired



 Tangible net worth
X
X
XX
XX
X
XX
X
X
XX



                                                              XX
                 [balance of schedule not
                 illustrated]

                 [This illustrates the
                 form of schedule which is
                 contemplated.  Details
                 and reconciling items
                 will differ in specific
                 situations.]

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              IV.  COMPLYING WITH LIABILITY  COVERAGE
                REQUIREMENTS USING STATE  MECHANISMS
     As discussed in Section D  of  Chapter  1, owners or operators are subject
to applicable state laws  or regulations pertaining to liability coverage in
addition to the Federal RCRA requirements.  This  chapter only  applies to
facilities located  in states where EPA is administering liability coverage
requirements.1-1  The chapter explains how owners  or  operators  of  facilities
in these states may satisfy Federal  liability coverage requirements using
state laws.

     Owners or operators  may satisfy the Federal  RCRA liability coverage
requirements by arranging for coverage under the  authority of a state
government in two ways.  First,  an owner or operator may provide assurance
through a State-required  liability coverage mechanism equivalent to those
specified in the Federal  RCRA requirements.  Many states are expected to adopt
the Federal requirements  discussed in this manual or equivalent rules; in
those cases, satisfaction of State requirements may be used to demonstrate
compliance with RCRA requirements.   Second, a state government or state fund
may assume legal or financial responsibility for  all or part of the potential
liabilities of a facility.   Such an  assumption of liability, similarly, may
satisfy all or a part of  the RCRA  liability coverage requirements.

     Pertinent EPA regulations  are listed  below:

                                EXHIBIT  IV-I

             RCRA STATE LIABILITY COVERAGE MECHANISM REGULATIONS
 Topic                           Interim  Status       Permitted Facilities
 State-Required Mechanisms        40 CFR  265.149          40 CFR 264.149

 State Assumption of             40 CFR  265.150          40 CFR 264.150
 Responsibility
Source:   Title 40,  Code of Federal Regulations (CFR).


    1JEPA interim status  liability coverage  regulations  (40 CFR 265) do not
apply in states that have  received PHASE I  INTERIM AUTHORIZATION,  although
RCRA standards (40  CFR 264) must  be satisfied  to receive a RCRA permit.
States with PHASE  II INTERIM AUTHORIZATION will  administer their own
liability coverage  requirements for both  INTERIM  STATUS  and  PERMITTED
FACILITIES.  See Chapter 1,  Section D for a discussion of  the  applicability
of Federal and State requirements.

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                                   IV-2
A.   RESPONSIBILITIES OF  THE  OWNER OR OPERATOR

    This section outlines the requirements for using State mechanisms  to
satisfy Federal rules and the responsibilities of owners  or operators.
Included as Attachment IV-1 is a checklist summarizing the requirements  for
owners or operators.

    I.   Satisfying State Requirements.   Owners or operators must  initially
identify what State liability coverage requirements apply and whether  or not
the state itself assumes responsibility for liability claims.  (See Exhibit
IV-2.)  State liability coverage requirements may not be  identical to  RCRA
requirements, although the allowable mechanisms typically include liability
insurance.   The EPA is not currently aware of any instance where  a state
assumes legal responsibility for an owner's or operator's compliance with RCRA
liability coverage requirements or assures that funds will be available  from
state sources to cover these requirements.  EPA may propose to delete  this
option.  EPA is currently developing a guidance on the issue of determination
of equivalence of State financial responsibility mechanisms and State  programs.

    Because state laws and regulations are still being developed  or
promulgated, it is strongly suggested that owners and operators check  with  the
appropriate state agency for the requirements in any particular state.   See
Appendix B-l of the manual for Financial Assurance for Closure and  Post-
Closure Care for  a  list  of  state agencies.   An  owner  or  operator whose
facility is located in any state with liability coverage  requirements  must
satisfy both the State and Federal requirements.  State and Federal officials
encourage, early and frequent contacts with agency staffs  to discuss
requirements.  Similarly, an owner or operator will need  to determine  whether
his facility is eligible for a State assumption of responsibility for
liability coverage.

    2.  Submission of Required Information to EPA.  To use a State-required
mechanism to satisfy RCRA requirements, the owner or operator must submit to
the Regional Office evidence of the establishment of the  mechanism, such as a
letter from the appropriate state agency,  a copy of the CERTIFICATE OF
INSURANCE or  ENDORSEMENT, etc.  The submission of evidence  must  be
accompanied by a request that the State-required mechanism be considered
acceptable for meeting the Federal RCRA liability coverage requirements.   (See
Attachments IV-3 through IV-5.)  The submission must include the  amount  and
types of coverage assured through the State mechanism as  well as  identifying
information on each facility to be covered, including the facility's EPA
Identification Number, name, and address.   Additional information may  be
requested by the Regional Administrator in order to determine the mechanism's
acceptability.

    Some states may provide assurance of payment of all or part of liability
coverage responsibilities.  In order to take advantage of such laws to
demonstrate compliance with RCRA liability coverage requirements,  the  owner or
operator must submit two letters:  (1) a letter from the  appropriate state

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                                  IV-3
                           EXHIBIT IV-2

       STATE  LIABILITY  COVERAGE REQUIREMENTS AND ASSUMPTIONS
  OF  RESPONSIBILITY AS OF JUNE 1,  1982 IN STATES WITHOUT  INTERIM
               AUTHORIZATION AS OF SEPTEMBER  I, 1982
                         Has Liability  Coverage     Provides Assumption
                             Requirements            of  Responsibility

Alaska                            No
Colorado                          3J
District of Columbia              1J
Hawaii                            3J
Idaho                             No
Michigan                          *
Minnesota                         1J
Missouri                          *
Nevada                            3J
New Jersey                        *                          *J
New Mexico                        3J
New York                          *
Ohio                              No
Puerto Rico                       * 2J
South Dakota                      No
Virgin Islands                    *
Washington                        *
West Virginia                     1J
Wyoming                           No
   *   State has  some  provision for the item in question.

   1J   Requirements  have  been drafted or proposed but not  yet  adopted.

   2J   Some liability  mechanism is required but the nature of  the mechanism
has not been specified.

   3J   No regulations  have yet been issued but some mechanism  is required by
state statute.

   bj   A state  compensation  fund is available for property damage, not
personal injury;  however, the fund does not explicitly assume  the liability of
the owner or operator.


Source:  IGF Incorporated.

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                                   IV-4
agency describing the nature of the State's assumption of liability coverage
responsibility, together with (2) a letter requesting that the State's
assumption of responsibility be considered acceptable for fulfilling the RCRA
liability coverage requirements.   (See Attachment IV-3.)  The letter from the
state must include, or have attached,  the following information:   the
facility's EPA Identification Number,  name, address,  and the amount of funds
guaranteed by the state.  The owner or operator may be required to submit
additional information requested by the Regional Administrator.

    3.  Satisfying Federal  Requiraments.  The owner or operator may need to
supplement the State mechanism or guarantee in order to provide complete RCRA
coverage.  For example, a State liability coverage requirement may only
provide for $500,000 coverage for SUDDEN and $1,000,000 for NONSUDDEN
ACCIDENTAL OCCURRENCES.   On the other hand,  a.  state may require $l/$2 million
in sudden coverage but have no requirement for nonsudden liability assurance.
Or a state compensation fund may provide coverage only for PROPERTY DAMAGE
claims, not BODILY INJURY.  The owner or operator has the option of either
increasing or supplementing the amount of funds available through the
State-required mechanism or using additional RCRA mechanisms.  The total
amount of funds available through the  State and Federal mechanisms must at
least equal the amount required under  RCRA.

    4.  Maintaining Coverage.  Owners  or  operators have  a continuing
responsibility to maintain adequate liability coverage.  Thus, owners or
operators must maintain coverage by paying premiums and providing alternate
coverage in the event of the incapacity of the insurer, etc.   Procedures for
doing this will vary with the type of  mechanism being used; owners or
operators should consult the other chapters in this manual for details.  The
owner or operator should also arrange  for the Regional Administrator to
receive any notice of termination, cancellation, or nonrenewal required of the
insurer, etc.

    5.  Permitted Facility Requirements.   To receive  a RCRA permit,  new and
EXISTING  FACILITIES must satisfy RCRA liability coverage requirements for
PERMITTED  FACILITIES.   If the facility is located in a state  without INTERIM
AUTHORIZATION, or with interim authorization but  without  effective liability
coverage requirements, liability coverage must be demonstrated to the
appropriate Regional Administrator as  described in the other chapters of this
manual.  State-required mechanisms or  assumptions of responsibility may be
used to fulfill RCRA requirements in whole or part as discussed previously.
The main point to remember is that unless the facility is located in a state
with Phase II interim authorization to issue permits  in lieu of RCRA peririts
(see Exhibit 1-1), it must satisfy Federal RCRA standards to receive a RCRA
permit and may comply by using State-required mechanisms or State assumptions
of responsibility, if any.  In some cases, states with Phase II interim
authorization for storage facilities and incinerators may not have liability
coverage requirements in effect by the effective date of the Federal RCRA
liability coverage requirements.   However, these states must commit to adopt
liability coverage requirements substantially equivalent to Fedsral RCRA
standards as quickly as practicable and in no event later thaa the state's

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                                   IV-5
 ^•lication  for an additional Component of Phase II interim authorization.
 r^Bsmuch  as  no state is expected to receive Phase II interim authorization for
 permitting land disposal facilities by the effective date of the liability
"coverage  requirements, land disposal facilities must comply with the Federal
 RCRA standards (including nonsudden coverage) to receive a RCRA permit.  See
tSection A.8  of Chapter II for a more detailed discussion.

 B.  REGIONAL OFFICE RESPONSIBILITIES

     This  section outlines the responsibilities of the Regional Offices in
 reviewing State liability coverage mechanisms for equivalency.  A summary
 checklist is provided as Attachment IV-2.

     I.  Evaluating Equivalency.  The Regional Administrator must determine
 whether the  State mechanism or assumption of responsibility provides liability
 coverage  at  least equivalent to the Federal RCRA liability coverage
 mechanisms.  Equivalency should be evaluated principally in terms of two
 criteria:

          (1) Certainty of the availability of funds  for claims.
              For example, the State mechanism must demonstrate a
              minimal risk of defaulting or lapsing due to insurer
              liquidation, change in ownership, or cancellation of
              insurance, without the provision of alternate coverage.

          (2) The amount of funds that will be made available.  The
              owner or operator must demonstrate that the State
              mechanism will assure payment of claims arising from
              sudden and nonsudden accidental occurrences exclusive
              of LEGAL  DEFENSE COSTS in amounts at least equal to
              the Federal RCRA requirements.  Any requests for
              VARIANCES should be  handled as described in  Chapter
              II, Section B.4.

     Regional Administrators must evaluate State mechanisms and compare them to
 the  allowable Federal mechanisms principally on the basis of the two criteria
 of certainty of coverage and amount of funds.   This could be a very complex
 task,  and the Regional Administrator must be careful to consider many
 factors.  These factors include:

          •    Qualifications required of participating financial
              institutions and insurers;

          •    Requirements of the FINANCIAL TESTS,  if  applicable;

          •    Time periods covered by the State mechanism;

          •    The amount of funds assured as compared to the RCRA
              requirements;

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                                   IV-6
         •    Exclusion of legal defense costs;  and

         •    Provision for future contingencies, including
              bankruptcy, cancellation, or changing mechanisms.

     In general, Regional Offices should first analyze the State mechanism
itself for adequacy before reviewing the amount  of coverage offered.   State
liability coverage mechanisms typically include  insurance, SELF-INSURANCE,
and, in some cases, financial tests.  This means that Regional Offices can use
Federal requirements as a benchmark for evaluating these instruments.   In
reviewing the components of a mechanism, Regional Offices should distinguish
requirements that are more stringent than the Federal RCRA rules from
requirements that are less stringent.

     Regional Offices should review State financial tests against Federal
financial test criteria with special care because this mechanism does not
involve the advance financing of a fund for later use or the UNDERWRITING of
the risk of claims (e.g., insurance).

     The checklists provided throughout this manual may be used for evaluating
equivalency.  Regional Offices may wish to consult with EPA Headquarters to
discuss questions and options for evaluating equivalency.  A more detailed
guidance on equivalency determinations is being  reviewed and will be made
available to Regional Office personnel.

     State assumptions of responsibility may be  more difficult to review in
the absence of Federal standards for comparison.  Regional Offices should
review exactly which claims are covered by such  an assumption (e.g.,  personal
injury and property damage).   Regional Offices should not attempt to evaluate
the future adequacy of State liability claims funds but may ask to review any
such studies prepared by the responsible state agency.

     The Regional Administrator must also determine which types of liability
claims are covered neither by the State mechanism nor by the State assumption
(if any) in order to identify additional coverage needed to satisfy Federal
requirements.  A state, for example, may only require coverage for sudden
accidental occurrences.

     Finally, the dollar amount of coverage must also be reviewed to determine
equivalency.  If the amount provided is inadequate, the owner or operator
should be required either to increase coverage afforded by the State
mechanisms or establish an additional Federal mechanism.

     2.  Reviewing Submissions.  The Regional Administrator should review
the information submitted by the owner or operator to verify that all the
required information is included.  In addition to the facility's EPA
Identification Number, name,  address,  and the amount of liability coverage
assured, the following should be reviewed:

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                                   IV-7
         •   evidence of the establishment of a State-required
             mechanism, such as a copy of the insurance policy,
             endorsement or certificate of insurance, or corporate
             guarantee with the state listed as a beneficiary,
             including all required attachments, such as
             ACKNOWLEDGEMENTS,  POWER OF  ATTORNEY,  etc.;

         •   a letter from the state describing the nature of the
             State's assumption of responsibility, if any, signed by
             an appropriate state-agency official; and

         •   a cover letter requesting that the State mechanism
             and/or assumption of responsibility be considered
             acceptable for meeting, in whole or part, the Federal
             RCRA liability coverage requirements.

     Three pieces of information should be entered into the HVDMS:  (1)  the
code for the type of instrument being used; (2) the amount of the cost
estimates for which financial assurance for closure or post-closure care and
liability coverage are provided by the financial test; and (3) the name  of the
financial third party (e.g., insurer) or parent guarantor.

     Three sample owner or operator request letters are included as
attachments.  They represent situations where:

         (1)  a combination of a State-required mechanism and
              assumption of responsibility are requested to satisfy
              fully or partially the Federal RCRA requirements
              (Attachment IV-3);

         (2)  State-required mechanisms equivalent to RCRA
              assurances are requested to fully satisfy the Federal
              RCRA requirements (Attachment IV-4); and

         (3)  a State-required mechanism not equivalent to RCRA
              assurances is requested to fully or partially satisfy
              the Federal RCRA requirements (Attachment IV-5).

    Resort to state law as a means of fulfilling applicable RCRA requirements
will fall into one of these three typical situations.

    3.  Verifying Conformity to Requirements.   Regional Administrators  must
advise owners or operators concerning the acceptability of State mechanisms
and assumptions of responsibility.  Pending this determination, the owner or
operator will be deemed to be in compliance with the applicable RCRA liability
coverage requirements.   Any additional coverage needed for the assurance to be
at least equivalent to RCRA requirements should be specified.  Additional
assurances may be provided by increasing the amounts available under State
mechanisms or using additional mechanisms meeting RCRA requirements.

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                                   IV-8
    4.  Ensuring  Maintenance of Coverage.  Should the state receive interim
authorization to administer its own hazardous  waste  management  program,  the
Regional Administrator should consent to the termination  of liability  coverage
mechanisms only when no lapse in coverage will result.  The Regional
Administrator should arrange to receive any notice of  termination,
cancellation, or nonrenewal required of the insurer, etc.

    5.  Permitted Facility Requirements.   Owners  or operators may use
State-required mechanisms or State assumptions of responsibility to satisfy
Federal liability coverage requirements for permitted  facilities in states
which have not received applicable Phase II interim  authorization.  The
guidance in this chapter applies to such situations.

C.  SOURCES OF FURTHER  INFORMATION

    Because many state laws and regulations are currently in a  state of  flux,
owners or operators are advised to contact the appropriate state agency  to
determine applicable requirements.  State agency contacts  are listed in
Appendix B-l of the manual for Financial Assurance for  Closure and
Post-Closure Care.  EPA Regional  Office  contacts  can also  advise regarding
the authorization status of State programs (see Appendix  A).

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                                   IV-9
                              ATTACHMENT IV-I

             RCRA STATE  LIABILITY COVERAGE MECHANISMS CHECKLIST
                           FOR OWNERS OR OPERATORS
Paragraph
 Number  *

   (1)  	   Identify  pertinent  state  laws and requirements which can be
             used to satisfy RCRA  regulations.

   (2)  	   Submit by the  effective date:

             	  Letter requesting consideration of State mechanism and/or
                  assumption  of responsibility to apply for RCRA requirements

             	  Signed copies of documents (with associated attachments,
                  acknowledgments, or certificates)
             	   Letter  from  state agency acknowledging completion of
                   State requirements, if available

             	   Letter  from  state agency describing the nature of the
                   State's  assumption of responsibility

             	   EPA  Identification Number and information on each
                   facility,  including amount of liability coverage assured.

   (3)  	   Satisfy  Federal  requirements by providing additional coverage
             as  necessary.
       	   Arrange  for  the Regional Administrator to receive copies of all
             notices  of non-renewal, cancellation, or termination of assurance.

   (4) 	   Maintain coverage  throughout operating life of facility,
             including
                   Change of mechanisms as required to maintain coverage in
                   the  event of  incapacity, disallowance, liquidation or
                   ineligibility of  insurer
       Numbers  correspond to paragraphs in Section A.

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                                  IV-10
                              ATTACHMENT IV-2

             RCRA STATE  LIABILITY COVERAGE MECHANISMS CHECKLIST
                           FOR REGIONAL OFFICES
    The Regional Administrator should ensure that:

Paragraph
 Number  *

   (1)  	  Equivalency of State mechanisms or assumptions  of
            responsibility is determined principally on the basis  of:
            Certainty of availability of funds,  including:

            	   Qualifications for insurers,  parent  guarantors, or
                  financial test

            	   Enforceability of corporate guarantees

            	   Adequate notice prior to termination, cancellation, or
                  non-renewal of insurance and provisions  for  obtaining
                  alternate coverage prior to termination,  cancellation, or
                  non-renewal

            	   Requirements of financial test (e.g., assets,  ratios)

            	   Provisions for maintenance of coverage  in the  event of
                  liquidation or incapacity of insurer, or  bankruptcy or
                  incapacity of parent guarantor;  transfer  of  ownership or
                  operation; change in mechanism

            	   Source of funds to be used by states assuring  payment of
                  liability claims.

            Amount of funds available, including:

            	   Sudden and nonsudden coverage per accidental occurrence
                  and in the aggregate, compared to RCRA  requirements

            	   Exclusion of legal defense costs

            	   Types of claims covered

            	   Amount of funds available through State  accounts or
                  revolving funds
       Numbers  correspond to paragraphs in Section B.

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                                  IV-11
                        ATTACHMENT IV-2 (continued)

            RCRA STATE  MECHANISMS CHECKLIST FOR REGIONAL OFFICES


Paragraph
 Number  *

   (2)  	   The  initial submission is complete, including:

             	   Owner or operator request letter

             	   Evidence of establishment of State  mechanism,  such  as
                  copies  of executed (i.e., signed)  insurance certificates,
                  financial instruments, letters of  acknowledgment  from state
                  agency, etc.
            	    Identifying information for covered facilities  and  amount
                   of coverage

            	    Copy of letter from state agency describing assumption of
                   responsibility

    "  	   The owner or operator is notified of the equivalency
            determination

   (3)  	   The amount of coverage at least equals the amount required by
            RCRA standards
                  State mechanisms and/or assurance completely fulfill RCRA
                  requirements

                  Coverage provided by additional mechanisms  is  consistent
                  with RCRA requirements
   (4)  	   Coverage is maintained
                  State mechanisms provide for maintenance of  coverage and
                  owner or operator is in compliance

                  There is no lapse in coverage if the state receives
                  interim authorization
     *  Numbers correspond to paragraphs in Section B.

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                                   IV-12



                               ATTACHMENT  IV-3

                 SAMPLE OWNER OR OPERATOR  REQUEST  LETTER  (I)
                                            HazWaste Corp.
                                            Address
                                            Date
EPA Regional Administrator
U.S. EPA Region
Street Address
City, State, Zip Code

Subject:  RCRA Liability Coverage Requirements

Dear Sir/Madam:

    This letter is submitted to request  that  RCRA  liability  coverage
requirements (40 CFR 265) be deemed satisfied,  in  whole or part, by State
mechanisms and/or assumptions of responsibility with which HazWaste Corp.  is
in compliance.

    HazWaste Corp. owns and operates three  (3)  facilities in State X whose EPA
Identification Numbers and addresses are as  follows:

                       [Insert identifying  information]

    State X requires financial responsibility demonstrations to cover  the
costs of personal injury claims consistent with the degree and duration of the
risk imposed.  Both sudden and nonsudden accidental occurrences are covered  in
aggregate amounts of $4 million per occurrence  and $8 million aggregate per
year.  See Rules 26.04 and 26.08 of the  State X Department of Environmental
Protection.  HazWaste Corp. has established  the required  insurance, as
evidenced by the following documents which  are  attached:

         (A)  Copy of certificate of insurance  (Attachment A) and

         (B)  Letter from State X Department  of Environmental
              Protection acknowledging satisfaction of state
              requirements (Attachment B).

    In addition, State X has established a  Spill Compensation Fund to  provide
for property damage claims.  See Rules 30.50  through 30.70.  We have attached
a letter from the state agency acknowledging the applicability of the  State
fund to our facilities.  (See Attachment C.)

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                                  IV-13
                        ATTACHMENT IV-3 (continued)

                 SAMPLE OWNER OR OPERATOR REQUEST LETTER  (I)
    In conclusion,  we  request that the combination of our State-required
financial responsibility demonstrations and the State compensation  fund be
deemed to satisfy completely Federal RCRA liability coverage requirements.  We
will be pleased to provide any  further information you may need.

                                           Sincerely,
                                           President, HazWaste Corp.
Attachments
  A.  Certificate of  Insurance
  3.  State agency acknowledgment
  C.  State assumption  of responsibility

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                                   IV-14



                               ATTACHMENT IV-4

                SAMPLE OWNER OR OPERATOR  REQUEST  LETTER (II)
                                           Waste Control Inc.
                                           Address
                                           Date
EPA Regional Administrator
U.S. EPA Region
Street Address
City., State, Zip Code

Subject:  RCRA Liability Coverage  Requirements

Dear Sir/Madam:

    This letter is submitted to request that RCRA  liability coverage
requirements be deemed satisfied by  State  rules with which Waste Control Inc.
has complied.

    Waste Control Inc.  owns  and operates one (1) facility in State Y located
at [insert address]  assigned EPA Identification Number  [insert number].

    State Y has adopted by reference the RCRA liability coverage requirements
of 40 CFR 264 and 265,  as amended.   See Rule 70Y(2) of the State Department of
Natural Resources.  Waste Control  Inc. has secured an insurance policy
endorsement issued by      , a copy  of which is attached.  The State Y
[insert appropriate agency]  has accepted this insurance policy as fulfilling
the requirements of Rule 70Y(2).

    Accordingly, we request  that the establishment of this liability assurance
mechanism be determined acceptable for meeting the requirements of 40 CFR
265.  Further information, if needed, will be supplied at your request.

                                           Thank you,
                                           Comptroller, Waste Control Inc.
Attachments
  A.  Insurance Policy Endorsement  (copy)
  B.  State agency acknowledgment  (copy)

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                                    IV-15



                                ATTACHMENT  IV-5

                 SAMPLE OWNER OR OPERATOR  REQUEST LETTER  (III)
                                             Synthetic Chemical  Industries
                                             Address
                                             Date
 EPA Regional Administrator
 U.S.  EPA Region
 Street Address
 City, State, Zip Code

 Subject:   RCRA  Liability Coverage Requirements

     Synthetic Chemical Industries ("SCI")  owns  two  hazardous waste  facilities
 in the State of Z,  both of which are  in interim status  and  subject  to the
 liability coverage  requirements  of 40 CFR  265.   The EPA Identification Numbers
 and addresses are:

                        [Insert  identifying information]

     SCI has complied with Section 394B of  the Public Health Code of State Z by
 providing insurance to assure the payment  of damage claims  for property damage
 and personal injury resulting from sudden  accidental occurrences.   As required
 by state law, this  insurance must be  in the amount  of $10,000 per acre of land
 for which a State Z permit is required,  but in  no event for less than
 $100,000.  SCI  has  obtained insurance of $250,000 and $420,000, respectively,
 for the two sites identified above.   Pursuant to state  law, liability coverage
 is to extend until  five (5) years after the closure of  the  landfill.  This
 obligation is binding on the heirs, representatives, successors, and assignees
 of SCI.

     SCI requests that this State-required  mechanism be  determined acceptable
 for meeting the liability coverage requirements of  40 CFR 265, in whole or in
 part.  Pending  this determination, SCI understands  that it  will be  deemed to
 be in compliance with such requirements (40 CFR 265.149(b)).  SCI intends to
 provide whatever additional liability coverage  assurances are determined
 necessary.

                                            Sincerely,
                                             General Counsel, SCI

^Attachments

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                            GLOSSARY OF TERMS*
ACCIDENTAL OCCURRENCE
    An accident,  including  continuous or repeated exposure to conditions,
    which results in  bodily injury or property damage neither expected nor
    intended from the standpoint of the insured.

ACCOUNTANTS OPINION
    See REPORT  ON  EXAMINATION.

ACKNOWLEDGE,  ACKNOWLEDGMENT (OF  AN  INSTRUMENT)
    Formal declaration before  an authorized official such as a notary, by the
    person who executed the instrument, that  it is his free act and deed.

ADMITTED CARRIER
    An insurance  company licensed to do business in a state.

ADVERSE OPINION
    Statement by  an accountant that the financial statements of the firm do
    not present fairly the  financial condition of the firm in conformity with
    generally accepted accounting principles.  This type of opinion will cause
    the EPA to disallow the financial test for the firm.

AGENT
    Person authorized to sell  insurance coverage as a representative of an
    insurer or underwriter.  May need to be licensed.  See also BROKER.

ALIEN INSURER
    An insurance  company domiciled outside the United States.

AMORTIZATION
    Gradual reduction of the accounting or "book" value of a fixed asset by
    allocation of part of the  cost of the asset over time to individual
    accounting periods.  The term is used to  refer to assets whose life is
    limited but which do not physically wear  out.  Examples include
    copyrights, patents, and leases.  See also DEPRECIATION.

ANNUAL AGGREGATE AMOUNT
    The maximum liability protection afforded by an insurance policy in any
    given year.  RCRA regulations currently require minimum annual aggregate
    levels at $2.0 million  for sudden accidental occurrences and $6.0 million
    for nonsudden accidental occurrences.
* These designations are intended  to  assist the reader in understanding the
regulations.  This glossary does not  purport to set out the full definition of
each term used in all contexts.

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                                   G-2
ASSETS
    All existing and all probable  future  economic benefits obtained or
    controlled by a particular entity.  Any  right or physical property that is
    owned and has a monetary value.

AUDIT
    Systematic inspection of accounting records  involving analyses, tests and
    confirmations.

AUTOMATIC EXTENSION, AUTOMATIC RENEWAL
    Continuation of an insurance policy or letter of credit without the need
    for renegotiation.

BINDER
    A record of an insurance transaction  or  arrangement  issued by a carrier
    pending delivery of the formal insurance contract  (policy).

BODILY  INJURY
    Such physical injuries as are  recoverable as a  liability under applicable
    state law.  However, the term  does not include  those liabilities which,
    consistent with standard industry practice,  are excluded from coverage in
    liability policies for bodily  injury.  For example,  the insurance policy
    need not cover injuries caused by war, injuries covered by worker's
    compensation or disability benefits,  or  intentional  injuries.

BOND  RATING
    An assessment of the credit-worthiness of an obligor with respect to a
    specific debt obligation (bond).  Ratings are designated by  letter--e.g.
    AA, A, B, etc.   For the purpose of these regulations, Moody's and Standard
    & Poor's are the only two acceptable  bond-rating corporations.  See also
    INVESTMENT GRADE.

BROKER
    An independent businessperson  whose principal function is to represent an
    insured (client) in obtaining  optimum insurance protection at the most
    advantageous price.  A broker  is  not  a licensed representative of any
    particular insurer and is thus free to arrange  insurance (i.e., "shop" a
    risk) from virtually any commercial insurer.  See  also AGENT.

BUY BACK
    A type of coverage excluded under the basic  terms  of the policy which can
    be included for the payment of an additional premium.  Normally refers to
    reinstatement of limits used up by claims payments.

CGL
    Stands for "Comprehensive General Liability" which is a policy form
    designed to provide an "all hazards"  scope of protection, subject to
    certain exclusions and conditions specified  in  the policy form.

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.  *   .  •
                                          G-3
        CAPTIVE INSURER
            An insurance company set  up  by  a  company or group of companies to insure
            their own risks,  or risks common  to the group.  Captive insurers may
            qualify under the Federal regulations by obtaining a license in one of the
            several states which currently  license captive insurers or by becoming
            eligible or authorized to transact the business of insuring as a surplus
            lines or excess insurer in a state.

        CARRIER
            An insurance company.

        CASH  FLOW
            In accounting, a company's net  income  (sales minus operating expenses)
            plus allowances for depreciation, depletion, and amortization.  Represents
            the funds available for working capital and expansion.

        CERTIFICATE  OF INSURANCE
            A statement obtained from the insurer  certifying that it has issued
            insurance as represented  in  the certificate.  Not part of the insurance
            policy itself.

        CERTIFIED PUBLIC ACCOUNTANT  (CPA)
            An accountant with a special state license indicating that he or she meets
            certain requirements for  the public practice of accounting.  Although
            requirements vary from state to state, all must pass an examination
            administered by the American Institute of Certified Public Accountants.

        CHIEF FINANCIAL OFFICER
            The principal financial officer required to sign SEC FORM 10-K's or the
            equivalent.

        CLAIMS  MADE
            An insurance policy form  under  which coverage is triggered only when
            claims are made during the policy period.  The period of coverage under
            claims made policy forms  may be further expanded or restricted by
            incorporation of "Discovery  Period" or "Retroactive Period" provisions.
            See also, OCCURRENCE-BASED COVERAGE.

        CLOSURE OR POST-CLOSURE CARE  INSURANCE
            A type of insurance coverage that provides funds for final closure or
            post-closure care and thereby satisfies the financial assurance
            requirements for closure  and post-closure care.  Not to be confused with
            liability insurance.

        CORPORATE GUARANTEE
            A guarantee by the owner's or operator's parent corporation that it will
            meet all financial assurance obligations specified in the regulations.
            Not permitted as a means  of  liability  coverage.

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                                  G-4
CURRENT ASSETS
    Cash or  other assets or resources commonly identified as  those  which  are
    reasonably expected to be realized in cash or sold or consumed  during the
    normal operating  cycle of the business or within one year if  the  operating
    cycle is less than one year.

CURRENT LIABILITIES
    Obligations whose liquidation is reasonably expected to require the use of
    existing resources properly classifiable as current assets or the creation
    of other current  liabilities or those expected to be satisfied  within a
    relatively short  period of time, usually one year.

DEDUCTIBLE
    That part  or amount of a loss which is not covered by the insurer, but is
    retained by the insured.  Under RCRA, deductibles are permitted,  however,
    the regulations require the insurer to pay any deductible and then seek
    reimbursement from the insured policyholder.  See also POLICY LIMITS,
    SELF-INSURANCE,  and SELF-RETENTION.

DEPLETION
    In accounting, an allowance made for the shrinkage or exhaustion  of a
    natural  resource.

DEPRECIATION
    In accounting, the method of allocating part of the cost of an  asset  that
    will be  used up over time to individual accounting periods.  The  number of
    accounting periods does not necessarily correspond to the actual  life of
    the asset, i.e.,  a building that lasts 40 yeas may be depreciated over 10
    years.   See AMORTIZATION.

DISCLAIMER OF OPINION
    Statement  that the auditor does not express an opinion on the financial
    statements of the firm.  This statement will cause EPA to disallow the use
    of the  financial  test  for the firm.

ENDORSEMENT
    In insurance, a form attached to an insurance policy that describes the
    original terms of the policy and any alterations in those terms.
    Specifically, the attachment to the owner's or operator's policy  that
    provides liability coverage for bodily injury and property damage.

ENVIRONMENTAL IMPAIRMENT  LIABILITY INSURANCE
    A type of  insurance coverage designed to provide financial protection to
    an owner or operator from pollution or environmental damage claims.

EXCESS COVERAGE
    This type of insurance provides coverage above a specified figure and up
    to a specified limit.  This insurance can be combined with a CGL  policy to
    raise the liability limits of specified coverages.  Also see UMBRELLA
    COVERAGE.

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                                   G-5
EXCESS OR SURPLUS LINES
    The designation that  a  state  may  give  to  insurance companies which provide
    the insurance coverages which are not  readily available from companies
    licensed or "admitted"  to  transact business  in that state.  Because such
    companies cannot be regulated,  states  often  control their ability to
    transact business through  the regulation  of  brokers and agents.  In
    addition, some states maintain lists of eligible excess or surplus lines
    insurers which brokers  may place  business with.  For an Excess or Surplus
    Line carrier's policy to comply with the  regulations, the carrier must be
    eligible to provide coverage  in one or more  states.  Captive or alien
    insurers not meeting  either the licensing or eligibility requirements
    cannot issue liability  policies which  will comply with the regulations.

EXCLUSION
    A provision in an insurance policy that certain causes of loss or certain
    results are not covered by the policy  under  any circumstances.

EXISTING  FACILITY
    A facility that was in  operation,  or for  which construction commenced, on
    or before November 19,  1980.   A facility  has commenced construction if the
    owner or operator has obtained Federal, state, and local approval to begin
    construction, and physical construction has  begun, or contracts for
    physical construction have been signed.

 XTENDED  REPORTING  PERIOD
    Often referred to as  a  "Discovery Period."   A provision in claims made
    policy forms which provides that  an insured, for the payment of an
    additional premium, may obtain an extension  of coverage following
    termination of the policy, for losses  occurring during the policy period
    but which are not brought  until after  the policy's termination.

FACE AMOUNT  OF POLICY
    The total amount the  insurer  is obligated to pay under the policy.  The
    insurer's limit of liability  or POLICY LIMIT.

FACE VALUE
    The value of a security, insurance policy, or letter of credit, expressed
    as a specific sum of  money, which is printed, stamped, or otherwise narked
    on its face.

FIDUCIARY
    A person with the duty  to  act on  behalf of another or to protect the
    interests of another.

FINAL AUTHORIZATION
    Approval by EPA of a  State program which  has met the requJrements of
    §3006(b) of RCRA and  the applicable requirements of Part 123, Subparts A
    and B.   The earliest  a  State  program can  receive fin^l authorization is
    January 26,  1983.

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                                  G-6
FINANCIAL STATEMENTS
    Formal reports  of the status  of  accounts at a particular time, prepared to
    show the operating results  and financial condition of the firm.  The
    statements include the balance sheet,  income statement, and statement of
    changes in financial  position.

FINANCIAL TEST
    Two sets of criteria  related  to  a company's financial soundness, specified
    in RCRA regulations,  either of which if satisfied by an owner or operator
    will establish  liability coverage.  A  similar financial test can be used
    by an owner, operator, or corporate parent to establish financial
    assurance for closure and post-closure care.

FIRST DOLLAR BASIS
    An insurance policy which,  in the event of a loss within the policy limit,
    will pay the entire loss.   RCRA  regulations require that if a policy
    incorporates a  deductible the insurer  will settle the claim and seek
    reimbursement from the insured,  unless the financial test is being used by
    the owner or operator to assure  that portion of the coverage requirements.

FORM  10-K, FORM  10-Q
    A type of report  that U.S.  corporations file with the Securities and
    Exchange Cdmmission.   It frequently contains more information than the
    annual report distributed to  stockholders.  The 10-K is submitted
    annually;  the 10-Q quarterly.

GRADUAL  POLLUTION COVERAGE
    Also referred to  as nonsudden pollution coverage; a policy designed to
    provide insurance protection  for pollution incidents which take place over
    time and result in bodily injury or property damage neither expected nor
    intended by the insured.

GUARANTOR
   ^One who guarantees payment  of a  present or future obligation.

INTERIM AUTHORIZATION
    Approval by EPA of a  state  hazardous waste program that has met the
    requirements of §3006(c) of RCRA and applicable requirements of Part 123,
    Subpart F.  Interim authorization will expire no later than January 26,
    1985.   See also PHASE I and  PHASE II.

INTERIM STATUS FACILITIES
    Existing hazardous waste management facilities which submitted
    notification under RCRA Section  2010 and Part A of the RCRA permit
    application by  November 19, 1980.  Facility owners and operators with
    interim status  are treated  as having been issued a permit until EPA or a
    state with interim authorization for Phase II or final authorization under
    Part 123 makes  a  final determination on the permit application.  Facility
    owners and operators  with interim status are not relieved from complying
    with State requirements.

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                                   G-7
  VESTMENT GRADE
    A bond or other debt instrument  with  a  rating  from Moody's of Aaa, Aa, A,
    or Baa; or a rating from Standard  & Poor's of  AAA, AA, A, or BBB.

ISSUER
    The party who issues an insurance  policy  or  guarantee.

LEGAL  DEFENSE COSTS
    Any expenses that an insurer incurs in  defending against claims of third
    parties brought under the terms  and conditions of an insurance policy.

LIABILITIES
    In accounting,  probable future sacrifices of economic benefits arising
    from present obligations to transfer  assets  or provide services to other
    entities in the future as a result of past transactions or events.  In
    law, legally binding obligations,  often to THIRD  PARTIES.

LIABILITY  LIMITS
    See POLICY LIMITS.

MOODY'S
    One of the two bond-rating agencies acceptable for purposes of these
    regulations.   Address:   Moody's  Investors Service, Inc., 99 Church Street,
    New York, New York  10007.

  T INCOME
    The difference between total sales and  total costs of goods sold plus
    expenses over the fiscal year.

NET WORKING CAPITAL
    Current assets  minus current liabilities.

NET WORTH
    Total assets minus total liabilities; it  is  equivalent to owner's equity.

NONSUDDEN ACCIDENTAL OCCURRENCE
    An accident,  including continuous  or  repeated  exposure to conditions
    resulting in bodily injury or property  damage  neither expected nor
    intended from the standpoint of  an insured.

OCCURRENCE-BASED COVERAGE
    A form of insurance contract which covers claims based on whether the
    causal event occurred during the policy period, not whether the claim was
    filed during the policy period.  It is  not currently available for
    nonsudden pollution occurrences.

PARENT CORPORATION
    A corporation which directly owns  at  least 50  percent of the voting stock
    of the corporation which is the  facility  owner or operator; the latter
    corporation is  deemed a "subsidiary"  of the  parent corporation.

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                                  G-8
PARENT GUARANTOR
    A parent corporation which provides a corporate guarantee.

PERMITTED FACILITIES
    Facilities  which  have demonstrated compliance with RCRA standards and have
    received final  RCRA permits.

PHASE  I INTERIM AUTHORIZATION
    The first phase of interim authorization of State programs by EPA.  It
    allows  states to  administer a hazardous waste program in lieu of and
    corresponding to  that portion of the Federal program which covers
    identification  and listing of hazardous waste, generators and transporters
    of hazardous waste, and establishes preliminary standards for hazardous
    waste treatment,  storage, and disposal facilities.  States need not have
    established financial responsibility requirements to receive Phase I
    interim authorization.

PHASE  II INTERIM AUTHORIZATION
    The second  phase  of interim authorization of State programs by 2?A.  It
    allows  states to  establish a permit program for hazardous waste  -reatment,
    storage, and disposal facilities in lieu of and corresponding -:> the
    Federal hazardous waste permit program, including financial assurince
    requirements  for  both interim status and permitted facilities.   Phase II
    interim authorization is granted in separate components for treatment,
    storage, and  land disposal facilities.

POLICY  LIMITS
    The maximum amount the insurer is obligated to pay in the settlement of
    claims, often expressed on an annual aggregate and per occurrence basis.

POLLUTION LIABILITY INSURANCE
    Insurance designed to provide protection for bodily injury, property
    damage and  environmental impairment resulting from the sudden or gradual
    discharge,  dispersal, release, escape or seepage of toxic substances into
    the environment.

POWER  OF ATTORNEY
    A written authorization, of another party to act as one's agent or attorney.

PREMIUM PAYMENTS
    The periodic payments of money which the policy-holder agrees to pay the
    insurer for an  insurance policy.

PROPERTY DAMAGE
    Such damage to  property which is recoverable as a liability under
    applicable  state  law.  However, the term does not include those
    liabilities which, consistent with standard industry practice, are
    excluded from  coverage in  liability policies for property damage.  For
    example, the RCRA insurance policy need not cover property damage caused
    by war, covered by automobile insurance policies, or intentionally caused.

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                                  G-9
QUALIFIED OPINION
    Statement by an accountant that the financial statements of a firm present
    fairly the financial  condition of the firm, subject to certain conditions,
    or except for certain limitations.

REPORT ON EXAMINATION
    The independent certified public accountant's report on the financial
    statements,  support schedules, and footnotes.  Often referred to as the
    accountant's report or the auditor's opinion.  The report on examination
    usually contains two  paragraphs --a scope paragraph and an opinion
    paragraph.  The scope paragraph indicates the financial presentations
    covered by the opinion and affirms that generally accepted auditing
    standards and practices have been followed by the auditors.  The opinion
    paragraph contains the accountant's opinion of the financial statements,
    schedules and footnotes.  The opinion can be unqualified, qualified, or
    adverse; or  there can be a disclaimer of opinion.  See QUALIFIED OPINION,
    UNQUALIFIED OPINION, ADVERSE OPINION,  and DISCLAIMER OF OPINION.

RETROACTIVE DATE
    A provision  in claims made policy forms to limit coverage for occurrences
    which occurred prior  to that date.

RIDER
    In insurance, a form  adding special provisions to a policy.  See also
    ENDORSEMENT.

SECURITIES OR  OTHER OBLIGATIONS
    Written instruments showing evidence of indebtedness of a business or
    equity ownership of a business.  Bonds are securities which bear interest.

SELF-INSURANCE, SELF-RETENTION
    The financing of losses from within the financial structure of an entity,
    rather than  transferring losses to an insurance company by purchase of
    liability insurance.   Owners and operators may comply with the RCRA
    financial responsibility requirements using self insurance by passing the
    financial test specified in the regulations.

SPECIAL REPORT
    The independent certified public accountant's confirmation that the
    financial data in the letter from the chief financial officer were derived
    from the annual report and need no adjustment.

STANDARD & POOR'S
    One of the two bond-rating agencies acceptable for purposes of these
    regulations.   Address:  Standard & Poor's Corp., 25 Broadway, New York,
    New York  10004 or P.O. Box 992, New York, New York  10275.

SUDDEN ACCIDENTAL OCCURRENCE
    An accidental occurrence which is not continuous or repeated in rature.

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                                  G-10
TANGIBLE NET WORTH
    Net worth minus intangible  assets, such as goodwill and rights to patents
    or royalties.

THIRD PARTIES
    Persons not parties to  the  insurance contract between insurer and insured
    but who may make claims under  the policy.

TOTAL LIABILITIES
    Total debts owed by a business or individual including all liabilities.

UMBRELLA COVERAGE
    A form of liability insurance  designed to increase the limits of liability
    as excess insurance over primary policies.  In addition, the umbrella form
    may provide a  broader scope of coverage than the underlying primary
    policies.  When this occurs the umbrella "drops down" and acts as a
    primary insurance policy.   See also EXCESS  LIABILITY.

UNDERWRITE (A RISK)
    To insure or assume a risk.  In insurance, a person or company underwrites
    all or part of the risk against theft, fire,  death, or whatever the policy
    stipulates, in exchange for a payment called a premium.

UNQUALIFIED  OPINION
    Statement by an accountant  that the financial statements of a firm present
    fairly the financial position, results of operations, and changes in
    financial position in conformity with generally accepted accounting
    principles consistently applied.

VARIANCE
    An alteration  in the general terms of a requirement based on
    considerations specific to  a facility.

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                                APPENDIX A

              EPA  FINANCIAL ASSURANCE REGIONAL OFFICE CONTACTS
    For information on  implementation of the financial assurance regulations,
contact the EPA regional  offices below:

    Region  I     (Connecticut,  Maine, Massachusetts, New Hampshire,
                 Rhode  Island,  Vermont)

         Gary Gosbee
             Waste  Management Branch
             John F. Kennedy Building
             Boston, Massachusetts  02203
             (617)  223-3468

    Region  II    (New Jersey, New York, Puerto Rico, U.S. Virgin Islands)

         Helen S. Beggun,  Chief
             Grants Administration Branch
             26 Federal Plaza
             New York, New York 10278
             (212)  264-9860

    Region  III    (Delaware, District of Columbia, Maryland,
                 Pennsylvania,  Virginia, West Virginia)

         Anthony Donatoni
             Hazardous Materials Branch
             6th and Walnut Streets
             Philadelphia, Pennsylvania  19106
             (215)  597-7937

    Region  IV    (Alabama, Florida,  Georgia,  Kentucky,  Mississippi,
                 North Carolina, South Carolina, Tennessee)

         Micky Hartnett
             Residuals Management Branch
             345 Courtland Street, N.E.
             Atlanta, Georgia   30365
             (404)  881-3067

    Region V    (Illinois, Indiana, Michigan,  Minnesota,  Ohio,
                 Wisconsin)

         Thomas Golz
             Waste  Management Branch
             230 South Dearborn Street
             Chicago, Illinois  60604
             (312)  886-4023


   Please mark all submissions:  "Attention:   RCRA Financial  Requirements"

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                               A-2
 Region VI    (Arkansas, Louisiana,  New Mexico,  Oklahoma,  Texas)

     Henry Onsgard
          U.S. EPA Regional Office
          1201 Elm Street
          First  International Building
          Dallas, Texas  75270
          (214)  767-8941

 Ragion V!l    (Iowa,  Kansas,  Missouri,  Nebraska)

     Robert L.  Morby, Chief
          Hazardous Materials Branch
          324 East llth  Street
          Kansas City, Missouri  64106
          (816)  374-3307

 Region VIII   (Colorado, Montana,  North Dakota, South Dakota, Utah,
             Wyoming)

     Carol Lee
          Waste  Management Branch
          1860 Lincoln Street
          Denver, Colorado  80295
          (303)  837-6258

 Region IX    (American Samoa, Arizona, California,  Commonwealth of
             the Northern Marianas  Islands, Guam, Hawaii, Nevada)

     Richard Procunier
          Hazardous Materials Branch
          215 Fremont Street
          San Francisco, California  94105
          (415)  974-8157

 Region X    (Alaska,  Idaho, Oregon, Washington)

     Kenneth D. Feigner, Chief
          Waste  Management Branch
          1200 Sixth Avenue
          Seattle, Washington  98101
          (206)  442-1236
Please  mark all submissions:  "Attention:  RCRA  Financial Requirements"

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