The Safety and Security in Public Places Act (SSPPA) require all states to establish procedures for closing public facilities and reporting unannounced site inspections. The South Carolina Department of Health and Environmental Control (SC DHEC) requires a Performance and Financial Surety Bond as part of its licensing process for solid waste-permitted facilities. To operate a solid waste facility, you must meet financial, facility, and security requirements. In addition to the standard surety bond required by most States, SC DHEC requires a closure performance and financial surety bond. Performance and the financial surety bond are also called operations performance bonds or asset performance bonds. These types of bonds are designed to protect cities and towns from financial loss if a business fails to meet standards in the licensing agreement or permit conditions during its operation period.
How to Calculate a Solid Waste-Performance Bond
A solid waste-performance bond amount can be calculated as follows: liquid waste volume × number of days liquid waste is on-site × cleanup cost per gallon × facility fee per day of closure. The fluid waste volume is based on the actual amount of waste on the facility’s premises. The number of days liquid waste is on-site is determined by the time it takes to clean up the waste after a spill. The cleanup cost per gallon is based on the type of waste on-site, the required cleanup methods, and the number of workers needed to clean it up. The facility fee is the maximum amount that must be paid to the city or town for each day the facility is closed due to a spill.
The Importance of a Solid Waste-Performance Bond
A Performance and Financial surety bond, also known as a Solid Waste-Performance Bond, is a requirement for all SC DHEC licensed Solid Waste facilities. This type of bond is required to maintain the safety and security of the public and the environment while the environment is being cleaned up. The Solid Waste-Performance Bond ensures that the facility will be there to respond if there is a cleanup of the environment, remediation of the site, or to reimburse a city for the costs of closing the facility. The Solid Waste-Performance Bond also protects the public by ensuring that all facilities are adequately covered by insurance.
Why is a Solid Waste-Performance Bond Required?
A Solid Waste-Performance Bond is a sign of financial responsibility and helps place a financial guarantee on the performance of the business. Financial security protects the city or town from financial loss in the case of a business closure due to bankruptcy or other reasons. A financial guarantee also protects the public by ensuring adequate insurance coverage to clean a site or to reimburse a city for the costs associated with closing a facility due to a spill. The Solid Waste-Performance Bond ensures that the business has enough financial capability to clean up any potential spills at the facility, to clean up any potential spills that may occur while transporting the waste, and if the worst happens, to remediate the site if there is a significant spill. The Solid Waste-Performance Bond also protects the public by ensuring a financial guarantee to pay for any damages if a spill should occur.
