California Grants Petition to Allow Landfills to Self-Insure; Revising Rule

Date: December 27, 2010

Source: News Room

California's Department of Resources Recycling and Recovery (CalRecycle) has granted a petition from Waste Management, Inc. (Houston, TX) to allow the use of "captive insurance" as a way to comply with the agency's controversial landfill "financial assurance" rules. Those rules aim to ensure that landfill operators have the necessary capital to fund long-term maintenance activities to prevent environmental threats posed by closed landfills. Currently, about half of the state's landfills require post-closure maintenance. The industry and Waste Management, in particular, have argued that "Captive insurance," which refers to the use of an in-house, company owned and operated insurance entity rather than contracting with outside insurance carriers, allows them to more efficiently control its protection options and save money. CalRecycle said it is granting the WMI petition "to the extent that we will commence a review of the specified section [of rules] based upon information provided in the petition." The petition, filed in October, argues that captive insurance is a key financial assurance mechanism that is allowed under federal law. EPA has recognized the widespread use of captive insurance as an allowable mechanism for closure, post-closure, and corrective assurance at landfills.

See also: "Industry Opposes California Plan to Raise Landfill Fees," (www.wasteinfo.com/news/wbj20100921I.htm).

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