oEPA
United States
Environmental Protection
Agency
Off ice of
Solid Waste and
Emergency Response
DIRECTIVE NUMBER: 9477.00-5
TITLE: Risk Retention Groups and Financial Assurance
Requirements
APPROVAL DATE: November 23, 1987
EFFECTIVE DATE: November 23, 1987
ORIGINATING OFFICE: Office of Solid Waste
m FINAL
Q DRAFT
STATUS:
REFERENCE (other documents)
[ ] A- Pending OMB approval
[ ] B- Pending AA-OSWZR approval
t ] C- for review &/or comment
[ ] D- Ir. -evelopment or circulating
headquarters
OSWER OSWER OSWER
VE DIRECTIVE DIRECTIVE Dl
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4>EPA
United States Environmental Protection Agency
Washington. DC 20460
OSWER Directive Initiation Request
1. Directive Number
9477.00-5
2. Originator Information
Name of Contact Person
Matt Hale
Mail Code
WH-563
Office
OSW
Telephone Code
(202) 382-4740
3. Title
Risk Retention Groups and Financial Assurance Requirements
4. Summary of Directive (include brief statement of purpose)
This letter confirms that risk retention groups, if they are licensed in at least
state to issue insurance policies, qualify under the RCRA financial assurance
requirements. Policies issued by such groups can be used to satisfy the require-
ments for-financial assurance for third-party liability.
5. Keywords
Financial Res
5a. Does This Directive Supersede Previous Directive(s)? f
ponsibility / Liability Coverage / Insurance
Previous Oirective(s)? I ' I i
!XX
b. Does It Supplement Previous Directive(s)?
No
No
Yes What directive (number, title)
Ves What directive (number, tftle)
7. Draft Level
A - Signed by AA/DAA
B - Signed by Office Director
C - For Review & Comment
D - In Development
8. Document to be distributed to States by Headquarters?
XX
Yes
No
This Request Meets OSWER Directives System Format Standards.
9. Signature of Lead Office Directives Coordinator
VztO
Date
11/17/87
10. Name and Title of Approving Official-" i
Marcia Williams,
- 7~/7L
Date
EPA Form 1315-17 (Rev. 5-87) Previous editions are obsolete.
'/
OSWER , OSWER OSWER O
VE DIRECTIVE DIRECTIVE DIRECTIVE
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OSWER POLICY DIRECTIVE #9477. 00-5
UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON, D.C. 20460
MOV ? 3 OFFICE OF
> 'J SOLID WASTE AND EMERGENCY RESPONSE
MEMORANDUM
SUBJECT: Risk Retention Groups and ;
Office of Solid Waste fWH-S-fc-ZJM K
TO: Waste Management Division Directors, Regions I-X
Attached for your information is a letter from Bruce Weddle>
Director of the Permits and state Programs Division, to Harry Shuford
of the Environmental Protection Insurance Company confirming that
risk retention groups may qualify to issue liability insurance
policies under RCRA regulations. As the letter states, policies
issued by risk retention groups would satisfy the RCRA requirements
if the group was licensed to transact business in one or more states,
and if the policy otherwise met the RCRA financial assurance
requirements.
Because the question of whether policies issued by risk
retention groups can be used to satisfy RCRA financial assurance
requirements has been raised in a number of states, I ask that you
forward this letter to the RCRA financial assurance contacts in each
of your states.
If you have any questions on the letter please contact Matt Hale
(382-4740) or Margaret Schneider (382-4696) or my staff.
Attachment
cc: Gene Lueero
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it "}•
OSWER POLICY DIRECTIVE #9477.00-5
UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON, D.C. 20460
WOV I 0 |&7
OFFICE OF
SOLID WASTE AND EMERGENCY RESPONSE
Harry Shuford
Environmental Protection Insurance Company
220 E. 42nd Street, Suite 500
New York, NY 10017
Dear Mr. Shuford:
I am writing you, at Robert F. Schiff's request, in
response to Mr. Schiffs letter of November 2, 1987 to the EPA
Office of Solid Waste. In his inquiry, Mr. Schiff sought our
view of whether the Resource conservation and Recovery Act
(RCRA) requirements that hazardous waste management facilities
demonstrate financial assurance for liability can be satisfied
by a policy issued by a risk retention group.
The RCRA regulations at 40 CFR Subpart H require, in part,
that to satisfy the financial assurance requirements, an
insurance policy must be issued by an insurer licensed to
transact business in one or more states. MO CFR 264.147(a)
(l)(ii), (b)(l)(ii) and 265.147(a)(1)(ii), (b)(l)(ii)). A risk
retention group which meets the requirements of the Risk
Retention Act of 1986 and which is licensed to transact the
business of insurance in at least one state would satisfy this
regulatory requirement. Your letter indicar.es that the
Environmental Protection Insurance Company EPIC) has met these
conditions. Accordingly, policies issued by EPIC in conformance
with all other requirements of Subpart H co ild be used to
satisfy the Federal RCRA requirements for 1 ability coverage, or
the requirements of an authorized state tha adopted the Federal
regulatory language.
I should add, however, that compliance vith Federal
requirements may not be sufficient to fulf:11 state
requirements. State RCRA requirements may :>e more stringent
than the Federal requirements. In states authorized to
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OSWER POLICY DIRECTIVE #9477.00-5
administer the RCRA program, therefore, state regulations must
be examined to determine whether your specific mechanism
satisfies the RCRA financial assurance requirements and is
otherwise consistent with state law.
Sincerely,
Bruce R. Weddle
Director
Permits and State Division
cc: Robert F. Schiff
RCRA Waste Management Division Directors, Region I-X
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