&EPA
               United States
               Environmental Protection
               Agency
Off tee of
Solid Waste and
Emergency Response
                DIRECTIVE NUMBER: 9477.05(84)

                TITLE: EPA Policy Regarding Review of Financial Assurance
                    Instruments
                APPROVAL DATE: 6-6-84

                EFFECTIVE DATE: 6-6-84

                ORIGINATING OFFICE: office of solid waste

                G FINAL

                D DRAFT

                 STATUS:
[  ]
                           [  ]
                REFERENCE (other documents):
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B- Pending AA-OSWER approval
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D- In development or circulating

          headquarters
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PARTS 264 AND 265  SUBPART H - FINANCIAL RESPONSIBILITY
                                                DOC:  9477.05(84)
Key Words:    Financial Responsibility Requirements

Regulations:

Subject:      EPA Policy Regarding Review of Financial Assurance Instruments

Addressee:    Hazardous Waste Branch Chiefs, Regions I-X

Originator:   George Garland, Chief Financial Responsibility and Assessment
              Branch
Source Doc:

Date:

Summary:
#9477.05(84)

6-6-84
     It is EPA's policy to review all financial insurance instruments regardless
of decisions concerning the adequacy or inadequacy of closure/post-closure
plans and/or cost estimates.  Financial instruments must be inspected for
compliance with Federal or State regulations.

     Items 11 and 14 on the Facility Status Sheet should always be completed
even when plans and/or cost estimates are inadequate".

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                                                             9477.05  (84


                          JUH   6BB4

Review of Financial Assurance Instruments                         "s
                                                                  T
George Garland, Chief                                             £
Financial Responsibility and Assessment Branch (NH-562)           w
                                                                  CD
Hazardous Waste Branch Chiefs
  Regions I-X                                                     »
                                                                  •
                                                                  0
     The purpose of this memorandum ia to clarify our policy      "^
regarding the review of financial assurance instruments.          a
Lee Daneker and Tony Hontrone sent a Memorandum to the BWDMS      \ "
Project Officers on December 20, 1983 to clarify the ins true-     "
tions for the Coapliance and Enforcement Log and the Facility     K>
Status Sheet.  As a result of that memorandum, I am concerned     £
that reviews of financial instruments are being deferred          ^
until closure/post-closure plans and coet estimates are           \
determined to b« adequate and in compliance with federal or       \
state regulations.                                                ®

     It is our policy to review all financial assurance in-
struments regardless of decisions concerning the adequacy or
inadequacy of closure/post-closure plans and/or cost estimates.
We expect you to examine the financial instruments (wording,
issuer qualifications, etc.) for compliance with Federal
or. State regulations.  We consider this distinct review
essential and, therefore, stress that it be conducted even
in the absence of a reviewed plan and cost estimate.

     The facility status sheets should reflect this policy.
Therefore, item number eleven—Closure Assurance Instruments—
and item number fourteen—Post-Closure Assurance Instruments-
should always be completed even when the plans and/or cost
estimates have been determined inadequate.  When the plans
and/or cost estimates are revised and reviewed, the adequacy
of the amount of the financial instrument should be reviewed
concurrently.

     I have made minor revisions to the facility status sheet
instructions to reflect this distinction.  The revised
Instructions are attached to this memorandum.  Please  inform
your States of our policy and explain the change in the
status sheet.  If you have any questions about adequacy
determinations on financial assurance instruments, please
contact Carole Ansheles on 382-4671.

Attachment

cct Carole Ansheles
    Susan Hughes
    Lee Oaneker
    Tony Montrone

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