Waste Management Facility Bond - Statewide in Pennsylvania

Brief Summary

There is no standard amount for this bond. It equals the cost DEP would face to close your facility and prevent harm if you walked away, with a $10,000 floor. DEP will not issue, renew or modify the permit until it approves the bond, and a surety bond meets that requirement without locking up cash, certificates of deposit or a letter of credit.

Pennsylvania DEP will not approve a new, reissued, renewed or modified permit to process or dispose of municipal or residual waste until the applicant posts a bond payable to the Department. The amount is the operator's closure and postclosure cost estimate as approved by DEP, never less than $10,000, under 25 Pa. Code §§ 271.331 and 287.331. Surety bonds go on DEP's form, from a surety authorized in Pennsylvania.

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How to Apply for a Waste Management Facility Bond:

• Complete the DEP bonding worksheet that matches your facility type.
• Prepare a written closure and postclosure cost estimate that includes future cost increases and inflation.
• Get DEP approval of the bond amount, which cannot be less than $10,000.
• Have a Pennsylvania authorized surety execute DEP Surety Bond form 2540-FM-BWM0111 payable to the Department.
• Submit the bond before DEP will issue, reissue, renew or modify the permit.
• Post additional bond by endorsement whenever DEP increases the required amount.

Detailed Information About the Pennsylvania Waste Management Facility Bond:

The amount is your closure cost estimate

Under 25 Pa. Code § 271.331 for municipal waste and § 287.331 for residual waste, the operator calculates the bond from a written estimate of what it would cost to complete final closure of the facility and prevent adverse effects on public health, safety and the environment. The estimate has to account for likely future cost increases, including inflation. DEP weighs factors such as closure and postclosure care costs, facility size and type, the quantity and nature of the waste, and the operator's compliance history. The minimum is $10,000. DEP reviews the figure and will not issue a permit or authorize operation until it approves the amount. DEP publishes bonding worksheets for landfills and disposal impoundments, incinerators, transfer stations, agricultural utilization, composting and processing facilities.

Who has to post it

Any applicant for a new, reissued, renewed or modified permit to process or dispose of municipal waste must post the bond first (§ 271.311), and residual waste processing and disposal facilities carry the same rule (§ 287.311). The bond must be on a DEP form, payable to the Department, with continuous liability from the start of operations. Government applicants are not exempt. A federal or Commonwealth department or agency applying for a municipal waste permit must file a bond or another financial assurance DEP approves. A municipality running a landfill solely for municipal waste may establish a trust fund instead, unless it posts another bond.

Surety rules

DEP accepts only a surety licensed or authorized in Pennsylvania, and for facilities permitted after December 23, 2000, only a surety listed in U.S. Treasury Circular 570. The surety and principal are jointly and severally liable for the bond amount, and payment is due within 30 days after DEP declares forfeiture. A surety can cancel only with notice that takes effect 120 days after DEP, the operator and the principal receive it, and the operator must deliver a replacement bond within 60 days of the notice. DEP's Surety Bond form is 2540-FM-BWM0111, with separate endorsements for additional bonds, change of ownership and replacement bonds.

How long it stays in place

For landfills, DEP conducts a final inspection within the 12 months before the end of the 10 year period after final closure and then decides whether to release or forfeit the bond. Facilities other than landfills may get an immediate release at final closure if monitoring and maintenance are shown to be unnecessary. Separate public liability insurance is also required before operations begin.

Eligibility and Requirements for a Pennsylvania Waste Management Facility Bond:

• Bond payable to the Pennsylvania Department of Environmental Protection on a DEP form.
• Amount equal to the DEP approved closure cost estimate, minimum $10,000.
• Surety licensed or authorized in Pennsylvania, and listed in Treasury Circular 570 for facilities permitted after December 23, 2000.
• Continuous liability from the start of operations through closure and the release period.
• Separate public liability insurance in place before operations begin.

Pennsylvania Waste Management Facility Bond FAQs:

Official and Additional Resources for the Pennsylvania Waste Management Facility Bond: