Solid Waste Facilities Financial Assurance Instruments

Missouri Revised Statues, section 260.226, RSMo requires the solid waste disposal area permittee to provide an FAI "...in such amount and form as prescribed by the department..." to ensure there are enough funds set aside to complete the approved closure plan when operations stop. Section 260.227, RSMo requires the permittee to provide an FAI "...in such amount and form as prescribed by the department..." to ensure there are enough funds set aside to implement the post-closure plan. 

FAIs are submitted by the landfill permit applicant. A municipality or county may satisfy the requirement by signing a contract of obligation. The landfill permit applicant specifies the FAI amount in the cost estimates submitted with the closure and post-closure plans. The amount of an FAI to be provided depends on the location, size, design and type of landfill. Listed below are worksheets the permit applicant may use to determine the FAI amounts.

• Closure and Post-Closure Cost Worksheet MO 780-1882
• Form A - Active Gas System Worksheet MO 780-1881
• Form B - Passive Gas System Worksheet MO 780-1880

The proposed FAI(s) is submitted to the department with the application for a construction permit. Proposed FAIs must be approved by the department and the Missouri Attorney General. Each year the landfill owner/ operator is required to make adjustments to the FAI, based on the inflation rate for the preceding year. Adjustments may also be required for some permit modifications and for other changes in the plans.  For more information, please refer to the Annual Updates tab.

Missouri Revised Statues, section 260.275, RSMo, requires most operators of scrap tire sites or processing facilities to provide an FAI "...in such an amount and form as prescribed by the department.." to ensure there are enough funds set aside to complete the approved closure plan when facility operations stop or if the facility is abandoned. If scrap tires are collected at a solid waste disposal area, the closure FAI filed for the solid waste disposal area may be applied.

The scrap tire processing facility permit applicant submits the proposed FAI(s) to the department with the permit application. The amount of the FAI is based on the current costs of similar cleanups, using data from actual scrap tire cleanup project bids received by the department to cleanup scrap tire sites of similar size. Proposed FAIs must be approved by the department. 

Any interest that accrues to any FAI remains with that instrument and is applied against the operator's obligation. Each year the facility owner/ operator is required to make adjustments to the FAI, based on the inflation rate for the preceding year. Adjustments may also be required for some permit modifications and for other changes in the closure plan.  For more information, please refer to the Annual Updates tab above.

Each year, all Missouri sanitary landfills are required to submit adjusted closure and post-closure care cost estimates to the department. Demolition landfills and waste tire sites are also required to submit adjusted closure care cost estimates to the department each year. The cost estimate calculations provide detailed information on how to project the current dollar amount for a facility's FAI. Adjusting the cost estimates and updating FAIs demonstrates the facility’s financial responsibility for closure and, in the case of sanitary landfills, post-closure care.

Submittal Date

In Missouri, the permit anniversary date is the scheduled date for submitting the annual FAI update, except for facilities with trust funds or escrow accounts. The submittal date for those FAIs is related to the specific date for making annual contributions to the fund, as outlined within the approved closure and post-closure plan. The department recommends each owner/ operator set a specific date on their calendars to submit the adjusted cost estimates and FAI updates. Failure to submit an adjusted cost estimate or make the required annual contributions to the trust fund or escrow account violates Code of State Regulations, 10 CSR 80-2.030(4)(B)3 for sanitary and demolition landfills. Financial assurance provisions for scrap tires are located at 10 CSR 80-8.050(7).

In addition to the department, the owner/ operator should also submit the cost estimate updates to the trustee for trust funds and escrow accounts, the corporate accountant for financial test and corporate guarantees, the bank officer for letters of credit, or the agent for all bonds and insurance policies and the signatory agent for contract of obligations.

Adjustment Calculations

Annual adjustments to the FAI are based on the inflation rate for the preceding year.  Any changes to your cost estimates due to modifying your permit or changing the closure or post-closure plans should be identified in the annual update. When calculating the annual inflationary update for FAIs, the owner/ operator will need to use the current Implicit Price Deflator (IPD). Please refer to the IPD tab above.

When calculating the annual inflationary update for FAIs, the owner/ operator will need to use the current Implicit Price Deflator (IPD). The U.S. Department of Commerce, Bureau of Economic Analysis publishes the IPD for the gross domestic product in the National Income and Product Accounts Table 1.1.9. The U.S. Department of Commerce revises the IPD for the gross domestic product monthly. This webpage will be updated following the new release.

*These numbers may be used through March 30, 2023.

For yearly updates, divide the current year by the previous year. For cost estimate updates, divide the current year by the 2004 number.

Scrap Tire Processor Forms:

• Certification of Acknowledgement MO 780-1271
• Certificate of Insurance for Closure MO 780-1268
• Contract of Obligation MO 780-1263 and Resolution – Attachment A MO 780-2039
• Corporate Guarantee MO 780-1270
• Financial Guarantee Bond MO 780-1265
• Irrevocable Escrow Agreement MO 780-1264
• Irrevocable Standby Letter of Credit MO 780-1267
• Irrevocable Trust Agreement MO 780-1272
• Letter from Chief Financial Officer MO 780-1269
• Performance Bond MO 780-1266
• Schedule A Form MO 780-2043

Solid Waste Processing Facilities and Disposal Areas (Landfills) Forms:

• FAI Descriptions (10 CSR 80-2.030)
• FAI Forms (10 CSR 80-2, Appendix)