Tag Archives: financial assurance

2009 Closes with the Opening of Public Comment Period for EPA’s Expanded Financial Assurance Proposal

EPA published an Advanced Notice of Proposed Rulemaking (ANPRM) to expand the universe of industries, operations and sites subject to federal financial responsibility requirements.  EPA has identified the following industry sectors, and one group of facilities because they comprise 1,073 sites, or approximately 70 percent of all non- Federal, proposed, finalized, and deleted sites on the NPL.

–       the Chemical Manufacturing industry (NAICS 325),

–       the Petroleum and Coal Products Manufacturing industry (NAICS 324),

–       the Electric Power Generation, Transmission, and Distribution industry (NAICS 2211),

–       the Waste Management and Remediation Services industry (NAICS 562) (including municipal and industrial landfills),

–       the Chemical Manufacturing industry (NAICS 325),

–       the Wood Product Manufacturing industry (NAICS 321),

–       the Fabricated Metal Product Manufacturing industry (NAICS 332),

–       the Electronics and Electrical Equipment Manufacturing industry (NAICS 334 and 335),

–       the Petroleum and Coal Products Manufacturing industry (NAICS 324), and

–       facilities engaged in the recycling of materials containing CERCLA hazardous substances.

EPA is requesting comments on a wide range of information, including critical environmental risk-oriented information.  Some of this requested data may not be formalized – or even exist – within all companies potentially subject to the future rule.  For instance, the Agency requests the following information (for any or all of the industry categories discussed in this notice):

–       Data on facility operations within these industries, and on the classes within these industries.

–       Data on the risk profile for facilities in the various industries, including data addressing the scope of past and expected future environmental responses.

–       Data on the risk evaluation approaches used by various industries (or by industry insurers) when seeking (or providing) insurance or bonding coverage.

–       Data explaining how frequently various financial assurance mechanisms are used by the various sectors, and the factors causing some to be chosen over others.

–       Information on the reliability, availability, and affordability of existing financial responsibility mechanisms. For example:

  • What factors or information are used by issuers to determine the amounts of coverage provided?
  • How are fees or coverage amounts adjusted to account for risk information, such as from risk assessments, site-specific exemptions, or positive risk management incentives?

A 30-day public comment period begins the day of publication of the ANPRM in the Federal Register.