AB 480 Summary

• Permits solid waste facility operators to establish their own insurance carriers to meet financial assurance obligations for landfill closure and postclosure maintenance until January 1, 2018, without requiring California admitted insurer status or surplus line broker arrangements.

• Requires operator-established insurance carriers to meet specific criteria including A.M. Best rating of A- or better, compliance with federal regulations, annual independent audits, and providing no more than 50% of the required financial assurance obligation.

• Authorizes the Department of Resources Recycling and Recovery to charge operators up to $10,000 for reviewing insurance mechanism applications, with collected fees deposited in the Integrated Waste Management Account.

• Requires the Department of Resources Recycling and Recovery to submit a report to the Legislature by January 1, 2017, assessing financial mechanisms used for landfill closure assurance and any potential state financial liability if these mechanisms fail.

• Prohibits use of operator-established insurance carriers for financial assurance unless the department receives sufficient private funds to conduct the study necessary for the required report, with cost estimates to be made public by March 1, 2013.