Financial Assurance Mechanisms for Local Government Owners and Operators of Municipal Solid Waste Landfill Facilities

OGC-97-7: Published: Dec 11, 1996. Publicly Released: Dec 11, 1996.


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Pursuant to a legislative requirement, GAO reviewed the Environmental Protection Agency's (EPA) new rule on financial assurance mechanisms for local government owners and operators of municipal solid waste landfill facilities. GAO found that: (1) the rule would allow local government owners and operators to use a financial test to demonstrate financial assurance and avoid incurring the expenses associated with demonstrating financial assurance through the use of third party financial instruments such as a trust fund, letter of credit, or insurance policy; and (2) EPA complied with applicable requirements in promulgating the rule.

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