Landfills One of the Issues Term Paper

Open, View, and/or
Download this Document

Total Length: 1293 words ( 4 double-spaced pages)

Total Sources: 1+

Page 1 of 4

20. In determining these ratios, the government must use Generally Accepted Accounting Principles (GAAP) for governments, and have its financial statements audited by an independent certified public accountant." (EPA). However, governments who are in default on general obligation bonds or that has any oustanding bonds below a certain rating are ineligible. Operators can also receive corporate guarantees from a guarantor, but that guarantor has to be either a parent corporation or principal shareholder of the operator. Furthermore, the guarantor has to meet the conditions of the corporate financial test. MSW operators may also be guaranteed by local governments, as long as those local governments meet the local government test. Individual states can also approve assurance mechanisms, if those states are authorized to implement the MSWLF criteria. Finally, states can assume legal responsibility for a MSWLF's after-care, whether by absolute assumption of that responsibility, or by merely assurring that the funds will be available.

There are many different means by which a MSW can provide financial assurance. In addition, there are several factors that go into determining what a MSW's estimated closing and after-care costs entail. These factors include what type of wastes are handled by the MSW. Some MSWs restrict their wastes to include only non-hazardous materials, even going so far as to limit introduction of non-hazardous items like batteries. Other MSWs deal in hazardous and non-hazardous waste. Furthermore, how the waste is treated at the facility factors into closing costs. For example, many facilities provide for recycling of products, including items like yard waste. While the recycling programs may cost more present-day money, they are likely to reduce closing costs, because the dispose of waste at the time of processing. In addition, the location of a landfill can have a tremendous impact on closing costs. While landfills are not permitted along fault lines or in wetlands, each landfill's environment presents unique challenges for closing and after-care procedures.

Class Presentation

One of the major costs of operating a landfill is incurred after its closing and is composed of the closing, after-care, and corrective action costs.

Stuck Writing Your "Landfills One of the Issues" Term Paper?

View All Our Example Landfills One of the Issues Term Paper

Have A Custom Example Essay Written



Many of financial issues linked to solid waste disposal are related to improper landfill closing and after-care management, resulting in taxpayer liability for managing the disposal of hazardous and non-hazardous wastes.

Several factors contribute to the estimated costs of closing and after-care for a landfill, including: size of the landfill, the type of waste processed at the landfill, the type of processing (including recycling), and the physical location of the landfill.

In order to mitigate the potential negative financial effects of an improperly closed landfill, the EPA requires the operators of Municipal Solid Waste (MSW) landfills to demonstrate that they have the ability to pay for closure, post-closure, and any necessary corrective activities. Federal and state facilities are exempt from this requirement.

Under 40 C.F.R. 258.74, operators may demonstrate financial assurance by a variety of means:

Trust fund with money designated only for closure, post-closure, and corrective activities,

Surety bonds,

Irrevocable standby letters of credit,

Insurance policies (they do not cover corrective action),

Passing a corporate financial test, which demonstrates sufficient assets to cover currently estimated costs. To do so, the operator must have a net worth equal to the sum of current costs plus $10 million, have U.S. assets greater than or equal to the sum of current cost estimates, meet a specified bond rating, and satisfy other credit requirements,

Pass a local government financial test, which is similar to the corporate test,

Receive a corporate guarantee from a parent corporation or major stockholder corporation, which passes the corporate finance test, or Meet individual state requirements, if a state is empowered to set those requirements.

Works Referenced

U.S. Environmental Protective Agency. "Financial Assurance for Municipal Solid Waste

Landfills." 2007. Environmental Protective Agency. Sept. 16, 2007 http://www.epa.gov/epaoswer/non-hw/muncpl/landfill/financial/famsw.htm......

Show More ⇣

     Open the full completed essay and source list


OR

     Order a one-of-a-kind custom essay on this topic


sample essay writing service

Cite This Resource:

Latest APA Format (6th edition)

Copy Reference
"Landfills One Of The Issues" (2007, September 17) Retrieved June 5, 2026, from
https://www.aceyourpaper.com/essays/landfills-one-issues-35746

Latest MLA Format (8th edition)

Copy Reference
"Landfills One Of The Issues" 17 September 2007. Web.5 June. 2026. <
https://www.aceyourpaper.com/essays/landfills-one-issues-35746>

Latest Chicago Format (16th edition)

Copy Reference
"Landfills One Of The Issues", 17 September 2007, Accessed.5 June. 2026,
https://www.aceyourpaper.com/essays/landfills-one-issues-35746
   

Open, View, and/or
Download this Document
order custom essay example