In Ohio, solid waste facility licensees and scrap tire transporters need a license or permit from the Environmental Protection Agency (EPA) to perform their trade and that includes obtaining financial assurance. The Solid Waste Facility and the Scrap Tire Transporter Bond act as a financial assurance to the EPA to guarantee proper closure procedures are taken when ending your time as a license or permit holder with the EPA.
Jet Insurance Company does not offer this bond but does have other markets we can refer you to. Call us at 855-296-2663 for more information.
The Solid Waste Facility and Scrap Tire Transporter Bond has a custom limit with different limits for the different holders of an EPA license/permit, found in Chapter 3745-27-15 (4) of the Ohio Administrative Code (OAC).
Scrap tire transporters must carry a $20,000 bond. A mobile scrap tire recovery facility or a Class I/Class II scrap tire recovery facility must have a $50,000 bond.
Solid waste facilities must have a bond that will be enough to cover the cost of shutting down the facility and bringing it up to the guidelines required: this can range from tens of thousands to even millions of dollars, depending on the size of the facility. The amount of the bond prescribed by the EPA can change due to permit amendments or even the cost of inflation.
The EPA is charged with protecting the environment, particularly by managing materials and waste, as a way to minimize the cost of disposal and prevent reusable and valuable materials from being dumped. The bond backs this up by making sure that payment is available should the solid waste facility owner or scrap tire transporter fail to close down the waste facility or dispose of scrap tires in a way that will not harm the environment or the health and safety of the public. It is their responsibility to comply with permit regulations and closure procedures, but if they don’t, the EPA will seek out a claim on the bond to bring the facility into compliance.
The main goal of this bond is to make sure that when it is time to close the solid waste facility or end the scrap tire transporter permit, the materials admitted under that license/permit will be properly disposed of. This includes following the plan for closure that was submitted prior to receiving licensure and any applicable rules pertaining to closure in Chapter 3745-27 of the OAC.
Scrap tire transporters must comply with Chapter 3745-27-56 and Chapter 3745-27-79 of the OAC during the course of their permit to dispose of tires in the correct places, prevent tire fires or other hazards to the environment or public health and safety, such as soil contamination. Any corrective measures that are included within the code must also be followed.
Claims will be filed by the EPA if an issue is not contained by corrective measures or the facility is not properly shut down, during closure and post-closure. The EPA will seek the finances required to complete the closure according to the plan and regulations. One way or another, the closure must follow the plan, whether it’s by you or the EPA after a claim payout; it is in everybody’s best interest to comply right away to avoid the claim process, which you will still be obligated to pay, along with legal fees.