Staff from the Division of Remediation will work with responsible parties to determine whether financial assurance is required for their sites and in what amount. Because sites vary widely with regard to both the level of contamination and the complexity of the clean-up, the total required for financial assurance is difficult to predict without reference to a specific property.
After the amount of financial assurance is determined by division inspectors and cost recovery personnel, the staff of the Division of Financial Assurance & Business Process Improvement works with responsible parties to ensure that they select a financial assurance mechanism that meets state regulations. Financial assurance arrangements are usually stated in the site’s Record of Decision or Operation and Maintenance Plan.
The following financial assurance mechanisms are allowed by the Division of Remediation. Please click on the links below for the language required by the division. The financial institution/surety should use the language in the files to issue an original instrument on the institution's letterhead or in its standard instrument format.
- Letter of Credit
- Guidance Document for Use of Letter of Credit
- Performance Bond
- Guidance Document for Use of Performance Bond
- Financial Test - Remediation
- Financial Test - Combination Remediation and Solid Waste
- Guidance Document for Use of Financial Test
- Personal Bond Supported by Certificate of Deposit
- Certificate of Deposit
The division also allows the use of cash/certified check to satisfy the financial responsibility requirement. A municipality or county may also execute a contract of obligation with TDEC allowing the department to collect the required amount from any funds to be disbursed from the state to the municipality or county. For more information on contracts, please contact the Division of Financial Assurance & Business Process Improvement.
Note: The instrument language is provided here as a convenience. Please consult with your legal counsel and the TDEC Division of Financial Assurance & Business Process Improvement before submitting a financial instrument.