Financial assurance is intended to ensure that resources are available to pay for the cost of closure, post-closure care, and corrective measures if the owner or operator of a regulated facility is unable or unwilling to pay. The requirement for using standardized wording for the financial assurance instruments ensures that the State will be able to draw on the funds the instruments provide to pay for the cost of closing a facility properly and in a timely manner.  In addition, the cost to the owner/operator of maintaining financial assurance should provide an incentive for good operating practices, because of the potential loss of collateral to the owner/operator if the instrument is drawn on.

The owners/operators of the following facilities types of facilities would need financial assurance:

• Permitted or registered solid waste facilities (including municipal solid waste landfills, construction and demolition debris landfills, Incinerators, and Class I and Class II composting facilities)
• Industrial or Manufacturing Waste (IMW) Program
  
• Scrap tire facilities (except scrap tire collection facilities)
• Scrap tire
• Construction and demolition processing facilities