SB 289

Current law requires the operator of a solid waste facility to provide proof of

financial responsibility for the costs of the care, maintenance, and monitoring of the

facility after it is closed. Instead of providing proof of financial responsibility by

providing a bond, escrow account, or letter of credit, a company may establish the

proof through what is called the net worth method, that is, by showing that the

company complies with specified financial criteria, including having a net worth of

at least $10,000,000. One of the other criteria requires a specified ratio of net fixed

assets to total tangible assets. Current law provides exceptions or alternatives to

some of the financial criteria in specified circumstances.

This bill provides alternate financial criteria for using the net worth method of

providing proof of financial responsibility for a company that does not satisfy the

current criterion for the ratio of net fixed assets to total tangible assets but that

satisfies the other current financial criteria. The alternate criteria may be used by

a company that operates a solid waste facility that processes waste wood if more than

50 percent of the waste wood is processed to be used for energy recovery (fuel). The

alternate criteria include a required ratio of short-term assets to short-term

liabilities.