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MONTHLY NEWS & UPDATES - JANUARY 2025


GREENEYE

ANNOUNCEMENTS



We are scheduling Internal Audits through June 2025, so don't miss out! Contact us today.



Downstream Due Diligence support is available. Make sure to reach out 8 weeks in advance of your audit to schedule with us!



Greeneye Partners has updated some of our documents. If you have contracted with us in the past for templates we provide these updates at no cost.

  • Closure Plan
  • Closure Cost Estimate
  • EHS Aspects and Hazards List
  • Health and Safety Manual



Are you updating your external provider documentation? Reach out to Katherine for the updated Greeneye Partners information!

FEATURE STORY

How to Secure Financial Mechanism for Site Closures

By Mary Castiglia, Hub International 


TO COMPLY WITH POST CLOSURE ACTIVITIES, FUNDS NEEDED TO BE AVAILABLE – LETTER OF CREDIT OPTION:

Landlords and regulatory agencies, representing the public, need to make sure there is funding to pay for post closure activities for used electronics processing companies that have ceased operations. To this end, financial guarantees are needed and often the instrument used for this guarantee is a cash deposit or Letter of Credit from a bank or financial institution. These funds can then pay for post closure activities if a company does not fulfill its post closure obligations. 


A letter of credit is a document from a bank or financial institution guaranteeing funds to another party – in this case it would be the landlord or governmental agency. For a bank to issue the letter of credit, a cash deposit is often required and there is a fee for issuance.


LETTER OF CREDITS – REQUIRE COLLATERAL – CAN TIE UP CASH FLOW:

Banks typically require a pledge of securities or cash as collateral for issuing a letter of credit. The requirement to post collateral can tie up a used electronics processing company’s working capital – and hamper operations and growth of the company. Additionally, there is typically a fee to issue the letter of credit, and the cost associated, depending on the amount, can be high. The bank charges the buyer a fee for issuing a letter of credit (often around 0.75% to 1.5% of the amount of the deal).  Issue -ties up credit.


TO FREE UP CASH / BANKING LINE OF CREDIT – AN OPTION FOR POST CLOSURE BOND SHOULD BE CONSIDERED:

Used electronics processing companies can often shift the Letter of Credit instrument to a Post Closure Bond which would replace the need for Letter of Credit. This can be an alternative for some companies to consider.  


WHAT IS A CLOSURE BOND:

A closure bond for pollution exposure is a specific type of surety bond used to ensure that the costs associated with closing and post-closing care of facilities that handle hazardous waste are covered. These bonds are required by regulations such as the Resource Conservation and Recovery Act (RCRA) to provide financial assurance that the facility will be properly closed and any pollution will be managed, even if the facility operator does not meet their obligations.  


A Post Closure Bond guarantees that if the operator does not meet its obligations, the surety (the party backing the bond) will either perform the required closure and post-closure activities or pay the necessary costs into a standby trust fund.


HOW A SURETY BOND WORKS:

Basically, surety bonds legally promise someone that the principal will perform a task or complete a job lawfully. 

  • Principal: The party who needs the bond, usually needs to obtain the bond to guarantee their obligations. (The company)
  • Obligee: The party who needs the bond, (landlord, government entity)
  • Surety: The party that backs the bond, guaranteeing to the obligee that the principal will fulfill their obligations. (Surety/bonding insurance company)


Important to note, that as part of the underwriting and bonding process, the surety company requires indemnification agreements to be executed. Depending on the financial situation and experience of a particular company, there may be both corporate indemnification and Personal indemnification required.  


If the surety company pays out a claim on the bond to the principal or fulfills the obligation, the surety company will seek reimbursement from the company and/or its Principals under the indemnification agreement.  


HOW MUCH DOES A CLOSURE BOND COST:

One of the key benefits of securing a Post Closure Bond as compared to a Letter of Credit – is that it can free up cash flow for anused electronics processing company – rather than using funds that are set aside as collateral for the Letter of Credit.  


There is cost to the bond with a premium rate of typically 1-3% of the bond amount. For a $100,000 bond, the annual premium cost would range from $1000-$3000. This cost may be slightly more than the cost of a Letter of Credit – however, the bond instrument could allow for better working capital.


HOW TO SECURE A BOND:

The underwriting process for a post closure bond in some ways resembles securing a mortgage. The surety underwriter assessment of the location and the operations and financial condition of the company.


In order to apply for a surety bond, the underwriting process will evaluate the used electronics processing operator's location, its proximity of runoff to nearby watersheds, ownership and operators business and personal financial stability, resumes of employees of the company, and operational plans including potential expansion and post closure considerations. The timeframe to review and secure bond options is 1-2 weeks. 

Have Questions? Contact HUB

RESOURCES

Greeneye Partners keeps an ongoing Recall List and now we are making it available to you! Use the resource below to keep your Recall List up to date.


Greeneye Partners provides a summary of some of the electronic recalls reported to the CPSC. If you would like to sign up to receive all the recalls for all the U.S. Consumer Product Safety Commission CLICK HERE.

Greeneye Partner's Recall List

TRAINING CENTER

THE GREENEYE TRAINING CENTER:


FREE

Introduction to Certification Course

Check it out!

The Greeneye Training Center provides the industry’s best online training classes for facilities looking for educational and in-depth classes on R2, e-Stewards, RIOS, ISO 14001, ISO 45001, and more. Each class provides a certificate of completion and resources to help you and your staff to sharpen their skills and knowledge.

INDUSTRY UPDATES

NEW REGISTRATION REQUIREMENTS FOR LARGE AND SMALL QUANTITY GENERATORS


Beginning January 22, 2025, Large and Small Quantity Generators (LQGs and SQGs) are required to register and maintain an account in RCRAInfo to meet the new regulatory changes made by the e-Manifest Third Final Rule.


For additional information, you can also subscribe to the EPA Office of Resource Conservation and Recovery newsletters here: Subscriber Preferences Page. This service is provided to you at no charge by EPA's Office of Resource Conservation and Recovery.


Thank you to Kathy Doyle, CHMM, Relief EHS, LLC for the summary information.


RIOS AUDITOR TRAINING AVAILABILITY

Who should take the RIOS Lead Auditor course? This initial 2-day, live virtual course is for those who wish to meet the formal education requirements to attain RIOS Auditor/Lead Auditor status; For those who are responsible for the implementation of a RIOS management system, particularly those who will be managing an internal audit program that meets the requirements of RIOS - including consultants who conduct internal audits, and CB auditors.


This class is offered 3 times a year virtually. Contact Shannon Fertitta to sign up.

INSURANCE, CLOSURE PLAN, AND FINANCIAL RESPONSIBILITY R2 GUIDANCE

The guidance document from the R2:2013 guidance provides guidance on insurance, closure plans, and financial responsibility for R2v3 since the requirements did not significantly change. This document includes more information on adequate insurance coverage, pollution liability insurance, additional insured, elements of a closure plan, the definition of independent administrator, description of foreseeable costs, explanation for a sufficient financial instrument, what assets can be used as a financial instrument, using pollution liability insurance, corporate guarantee, or inventory as a financial instrument. Ensure your insurance and closure plan meet the requirements of the R2 standard.

Guidance for Insurance, closure plan, and financial responsibility

ABOUT GREENEYE & SUPPORT

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