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State of New Jersey Department of Environmental Protection
State of New Jersey Department of Environmental Protection
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FINANCIAL MANAGEMENT UNIT

CONTACTS:
Email:
Vince Caliguire

Email:
Vince Caliguire

Recycling Center Financial Assurance
Email:
Vince Caliguire

Email:
Vince Caliguire

Email:
Vince Caliguire

Escrow and Financial Plan Review

All sanitary landfills operating after January 1982 must establish an Escrow Fund for facility closure/post closure care.  Pursuant to N.J.A.C. 7:26-2A.9(g) it is required that for every ton of waste collected, $1.00 is deposited into an Escrow Account that has been established with a financial institution of choice as escrow agent.  Escrow accounts are maintained through a written agreement signed by the landfill owner/operator, the escrow agent, and a representative of the Department.  There are three types of sanitary landfill escrow accounts:

  • DEP Escrow Accounts established pursuant to N.J.S.A. 13:1E-109 as part of the Sanitary Landfill Facility Closure and Contingency Fund Act N.J.S.A 13:1E-100 et. seq.  P.L.181, Ch. 306, are to insure the proper closure/post-closure care of landfills.
  • BPU Escrow Accounts established by orders of the Board of Public Utilities in its ratemaking capacity pursuant to N.J.S.A. 48:2-21 are intended to fund both environmental improvements and closure/post-closure care of landfills.
  • Alternative Funds Accounts encompass any alternative funds used to supplement funding shortfalls in situations where the DEP and BPU accounts are not adequate to fund anticipated costs.  The landfill owners may establish an Alternative Funds Escrow Account with their own funds or obtain a secure Letter of Credit.   Municipalities and Counties may adopt a resolution that each year there will be a line item in the budget to help offset the closure and post closure costs for that year.

A financial plan for closure/post closure care of a sanitary landfill facility must be prepared in accordance with the requirements of N.J.A.C. 7:26-2A.9(f).  Financial plans must receive Department approval to ensure that all costs for closure/post closure care have been identified and that sufficient funding will be available over the life of the facility.  DEP, BPU, and Alternative Funds Accounts are then managed in accordance with the associated rules, regulations, escrow agreements, and the approved closure/post closure financial plan for the life of the facility. Monthly statements and annual audit data must be submitted for review in accordance with the rules to check that adequate funding is maintained as required and to ensure ongoing compliance by facilities and financial institutions.

Escrow withdrawal requests are submitted by facilities as needed to cover approved expenses associated with closure/post closure care.  All requests for escrow funds are processed, and written authorizations for release of funds issued, consistent with the approved financial plan.

>Standard Escrow Agreement

>Standard Escrow Agreement Addendum

>Standard Operator's Report Form

>Alternative Funds Standard Escrow Agreement

>Alternative Funds Standard Escrow Agreement Addendum

>Alternative Funds Operator's Report Form

>Financial Plan Instructions

>Account Investment Guidelines

>Escrow Withdrawal Procedures

 

 

 

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Last Updated: August 18, 2021