The Environmental Protection Agency allows for the following Financial Provision instruments to satisfy their requirement that licensed operators must put an adequate financial provision for potential environmental liabilities that come about with;
- The closure and restoration/aftercare and
- Response to, and completion of remedial measures in the event of, an incident
Per the EPA’s financial provision report;
“Under Irish environmental law, the EPA may require licensees under the various EPA authorisation regimes to make adequate financial provision to manage the potential environmental liabilities which may occur as a result of their licensed activities (collectively referred to “licensed activity”).
Financial provision is putting in place a financial instrument or other approved financial provision (collectively referred to as “financial provisions”) to cover:
- the full cost of responding and remedial measures if an incident occurs on a licensed facility (collectively referred to as “incidents”);
- and/or (b) the costs of closure/ decommissioning/ restoration/ aftercare/management at a licensed facility (collectively referred to as “closure”).”
The following financial instruments that are permitted by the EPA to satisfy their requirements which are listed below;
- On Demand Performance Bonds: A guarantor/surety for a fee provides a bond. Best option for working cash flow as it doesn’t tie it up.
- EPA allows Secured Funds: Bank account funds directly accessible by the EPA. Not cash flow friendly as they cannot be used by your company and essentially freezes capital for the bond duration.
- Charge on Property: A property valuation must be obtained on the property. This can be in the form of a mortgage or charge. This is on a case by case basis and the valuation will be considered along with economic factors.
- Insurance: Please review paragraph below
- Parent Company Guarantees: Please review paragraph below
Certain Financial Provision instruments are not considered suitable for closure including Insurance products and Parent Company Guarantee. They are suitable for ELRA Financial Provision requirements. Parent Company Guarantee has been accepted by the EPA for closure in very limited circumstances to date provided the Parent Company Guarantee meets the EPA’s requirements to be Secure, Sufficient and Available when required. Licensees must be able to demonstrate this to the EPA. The EPA in most cases holds financial provision by way of on-demand bonds.
What we need to get started
- Completed Proposal Form.
- Detail of EPA Licence and dates
- Last two years consolidated audited accounts
- Up-to-date management accounts
- Copy of Bond Wording
 EPA Online PDF (Guidance on Financial Provision for Environmental Liabilities, 2015)