Have a question? 
+1 815-826-6324 (815-8-BondAI) 
phil@AmericasSuretyBonds.com
Army Veteran Owned | Expert Surety Bonds Since 2004
Have a question? +1 815-826-6324 (815-8-BondAI) phil@AmericasSuretyBonds.com
Army Veteran Owned | Expert Surety Bonds Since 2004
This bond is closure money a facility never has to set aside in cash. It lets the owner of a licensed construction and demolition debris facility meet Ohio's final closure financial assurance rule with a surety's promise to close the site, instead of funding a trust or posting a letter of credit for the full closure cost estimate.
Owners and operators of licensed construction and demolition debris (C&DD) facilities in Ohio must maintain financial assurance for final closure under OAC 3745-400-13. A surety bond guaranteeing performance of final closure is one of the allowed mechanisms. The penal sum must be at least equal to the final closure cost estimate, which for disposal areas cannot be less than $13,000 per acre, and the bond runs to the licensing authority.
We can help with all Ohio bonds!
The CDD Performance bond is not posted by demolition contractors to get a license. It is posted by the owner or operator of a licensed C&DD facility to guarantee that the facility will be closed properly. Under ORC 3714.06, a C&DD facility or processing facility needs an annual operation license from either the board of health of the district where it sits or the Director of Environmental Protection. Ohio EPA publishes a Director's Approved List naming the health departments authorized to run the C&DD program in their jurisdictions. The licensing authority is the obligee on the bond.
There is no flat amount. The penal sum must be at least equal to the facility's final closure cost estimate, which is an itemized written estimate in current dollars based on a third party doing all of the closure work. For disposal areas, OAC 3745-400-13 sets a floor of $13,000 per acre, calculated to the nearest tenth of an acre. A processing facility co-located at a disposal facility adds a per cubic yard figure: $4.25 for mixed C&DD within the active licensed disposal area, $8.25 for mixed C&DD outside the active area but inside the facility boundary, both where sufficient airspace is shown, and $35 where it is not. The estimate is adjusted each year using the inflation factor derived from the annual implicit price deflator for gross domestic product, so the bond may need to rise with it.
Standalone C&DD processing facilities follow OAC 3745-400-56, which allows the same mechanisms from rule 3745-400-13 and uses $35 per cubic yard, or $8.25 when the adjacency and airspace criteria in that rule are met.
The surety must appear on the U.S. Department of the Treasury's list of acceptable sureties on federal bonds. The owner must establish a standby trust fund no later than the date the bond is obtained. The bond wording must be identical to paragraph (C) of OAC 3745-400-14, and the originally signed bond goes to the director or the health commissioner of the licensing authority. If the principal fails to perform final closure, the surety must either do the closure work or pay the penal sum into the standby trust fund.
The surety can cancel only by certified mail notice to both the principal and the licensing authority, and cancellation cannot take effect during the 120 days after both receive it. Within 90 days of receiving the notice, the owner must obtain written approval of alternate financial assurance.
It equals your facility's final closure cost estimate. For disposal areas the estimate cannot be less than $13,000 per acre to the nearest tenth of an acre, plus any per cubic yard amount for processing under OAC 3745-400-13 or 3745-400-56.
Whichever licenses the facility. ORC 3714.06 allows either the board of health of the district or the Director of Environmental Protection to issue the license, and Ohio EPA's Director's Approved List shows which health departments run the C&DD program.
Only with certified mail notice to you and the licensing authority, and not during the 120 days after both receive it. You then have 90 days from receipt to get written approval of replacement financial assurance.
After final closure of the facility is deemed complete, the owner or operator may request authorization to terminate the financial assurance.
The surety prices a closure bond on the company's financial statements, the size and credibility of the closure cost estimate, and the facility's operating record. Larger estimates and weaker financials can bring collateral requests.
This website is a referral and marketing platform that connects users with licensed insurance agents. We do not issue surety bonds directly except in states where we are licensed. All bond applications are processed and fulfilled by licensed agents. By using this site, you agree to our Terms & Conditions, Privacy Policy, and the use of cookies. If you do not agree, please exit the site.
