Insurance: solid waste facilities.

Existing law regulates solid waste facilities and requires that any person owning or operating a solid waste landfill submit evidence of financial ability to provide for the cost of closure and postclosure maintenance, except as specified. Existing law provides that if the evidence of financial ability for closure, postclosure, or corrective action is demonstrated by use of insurance, either through an independent insurer or where the insurance carrier is established by a solid waste facility operator to meet the financial assurance obligations of that operator, the insurance mechanism may be approved by the Department of Resources Recycling and Recovery if the insurance carrier meets specified requirements. This bill would specify that, until January 1, 2018, an insurance carrier established by a solid waste facility operator to meet the financial assurance obligations of that operator that meets all of those specified requirements shall be eligible to provide that insurance and shall not be required to be a California admitted insurer nor be required to provide the insurance through a surplus line broker. The bill would add as a requirement for approval of a solid waste facility operator meeting its financial assurance obligations by establishing an insurance carrier that the insurance mechanism not provide in excess of 50% of the financial assurance obligation that the solid waste facility operator is required to meet in the state. This bill would also require the Department of Resources Recycling and Recovery to submit to the Legislature, on or before January 1, 2017, a report on the use of the mechanisms demonstrating financial ability to provide for the cost of closure and postclosure maintenance, including, among other things, any financial liability the state may assume if the mechanisms permitted under this bill and existing law fail. The bill would authorize the department to receive private funds for the purposes of conducting the study necessary for completion of the report, and would prohibit use of evidence of insurance with a carrier established by the owner or operator for the purpose of meeting the financial assurance obligations, unless sufficient private funds are received to conduct the study. The bill would require the department to make public by March 1, 2013, the costs estimate for conducting the study, and would authorize the department to consult with the Department of Insurance in completing the report. The bill would establish criteria applicable to contracts, if any, entered into by the department to conduct the study.