The mission of the Division of Financial Assurance & Business Process Improvement is to protect the interests of Tennessee citizens by ensuring that permitted entities prepare for unforeseen circumstances by posting collateral bonds and pollution liability coverage in an amount sufficient to pay for any future remediation efforts at sites which handle potentially hazardous materials.
What is "Financial Assurance"?
Owners and operators of certain businesses, including solid and hazardous waste storage facilities, oil and gas wells, and processors of radioactive materials, are required by Tennessee law to provide proof that they have sufficient funds to pay for the clean up of any accidental releases of hazardous materials at their facilities, as well as the ability to compensate third parties for any damage to human health or property. In many cases, they must also demonstrate that they are able to pay for the long-term maintenance and monitoring of closed sites.
These operators, subject to the regulations of their permitting division, have several options for providing this assurance to the citizens of Tennessee, including the following:
- Performance Bond
- Cash Bond
- Irrevocable Standby Letter of Credit
- Trust Fund
- Insurance Policy
- Certificate of Deposit
- Financial Test
The staff of the division work closely with the department's environmental programs, the Office of General Counsel, and the regulated community to make sure that all financial instruments meet the regulatory requirements of TDEC and are of an amount sufficient to protect the interests of the people of the state of Tennessee.