3 Accounting
3.4 Liabilities
3.4.10 Solid Waste Utilities: Closure and Postclosure Cost
This guidance applies only to cities and counties.
3.4.10.10 The Department of Ecology (Ecology) mandates solid waste landfill closure standards in Washington Administrative Code (WAC) 173-304-467, WAC 173-351-600 and WAC 173-350-400 subsection 8. The standards prescribe specific closure and post-closure procedures and their funding. While these standards apply to a landfill’s closure, they are associated with its operation and represent a liability to be recognized during its operation.
3.4.10.20 Ecology requires each owner or operator to prepare written closure and post-closure cost estimates as part of the facility closure and post-closure plan. This plan is to be reviewed annually and adjusted for cost changes, including inflation. This liability should be reported on the Schedule of Liabilities (Schedule 09) using I.D. number 263.22. The liability balance should be updated annually. Governments should also disclose this liability in the Notes to the Financial Statements, Note X – Environmental and Certain Asset Retirement Liabilities.
3.4.10.30 Each owner or operator is also required to either establish a reserve account or provide another form of financial assurance that, over the life of the facility, funds will be adequate to cover the costs of closing the facility and performing post-closure activities in accordance with state and federal regulations (RCW 70A.205.165). Ecology rules require that reserve accounts be set aside as restricted assets. These requirements apply to all landfill disposal facilities.