Solid Waste Utilities: Closure and Postclosure Cost Accounting

3 Accounting

3.4 Liabilities

3.4.10 Solid Waste Utilities: Closure and Postclosure Cost Accounting

This guidance applies only to cities and counties. The Department of Ecology (DOE) mandates solid waste landfill closure standards in WAC 173‑304‑467, WAC 173-351-600 and WAC 173-350-400 subsection 8. The standards prescribe specific closure and post-closure care procedures and the funding of them. While these standards apply to a landfill’s closure, they are associated with its operation and represent a material cost to be recognized during its operation. WAC 173-304-467, WAC 173-351-600 and WAC 173-350-400 require 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. 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 70.95.215). Ecology rules require that reserve accounts be set aside as restricted assets. These requirements apply to all landfill disposal facilities.