What Is a Standby Trust Agreement for Closure / Post‑Closure?
A Standby Trust Agreement (STA) is a legally required trust document used by the Department of Environmental Protection (DEP) when a company provides a closure or post‑closure surety bond. The STA acts as a pre‑approved, empty trust account that becomes active only if the operator fails to meet closure or post‑closure obligations.
The Standby Trust Agreement ensures:
- Immediate access to funds if the surety bond is triggered
- No delays in environmental cleanup or site closure
- A compliant mechanism for the DEP to receive and manage bond proceeds
- Protection of public health and the environment
If you use a surety bond to meet closure or post‑closure financial assurance requirements, the DEP will require a Standby Trust Agreement before accepting your bond.
Why a Standby Trust Agreement Is Required
A surety bond is a promise to pay, not a financial account. The DEP needs a legally approved trust structure to receive funds immediately if the operator defaults.
The STA provides:
- A ready‑to‑use trust account
- A trustee (bank or trust company) already in place
- DEP‑approved terms for fund management
- A seamless process for closure or post‑closure cleanup
Without an STA, the DEP cannot accept a closure or post‑closure bond.
Who Needs a Standby Trust Agreement?
You may need a Standby Trust Agreement for Closure/Post‑Closure if you operate:
- Solid waste facilities
- Hazardous waste treatment, storage, or disposal facilities (TSDFs)
- Landfills
- Mining operations
- Industrial sites requiring closure plans
- Facilities with long‑term post‑closure monitoring
- Any operation using a surety bond for environmental financial assurance
If your facility requires a closure or post‑closure bond, the DEP will require an STA.
Standby Trust Agreement Requirements & Eligibility
Most DEP agencies require:
- DEP‑approved Standby Trust Agreement form
- Execution by a qualified bank or trust company
- Signature by the operator
- Surety bond referencing the STA
- Compliance with EPA and state financial assurance rules
Some facilities may also need:
- Closure cost estimates
- Post‑closure monitoring plans
- Environmental liability insurance
How the Standby Trust Agreement Process Works
1
Complete the DEP‑Approved STA Form
The operator and trustee sign the Standby Trust Agreement.
2
Secure
the Closure or Post‑Closure Bond
The surety issues the bond referencing the STA.
3
Submit Both to the DEP
The DEP reviews and approves the bond + STA package.
Trust Activates Only if Needed If the operator defaults, the surety deposits funds into the trust for DEP‑managed cleanup.
Why Companies Choose Us for Closure/Post‑Closure
Compliance
- Expertise in DEP and EPA financial assurance requirements
- Guidance on selecting qualified trustees
- Fast coordination between STA and surety bond issuance
- Clear instructions for DEP submission
- Trusted by environmental contractors and waste facilities nationwide
Top Standby Trust Agreement Questions Answered
Our most common questions answered efficiently.
Yes. Banks or trust companies typically charge setup and annual maintenance fees. Costs vary but often range from $100–$500 per year.
No. The STA must be established with a bank or trust company. The surety only issues the closure or post‑closure bond.
The DEP needs a legally approved trust account to receive bond proceeds immediately if the operator defaults. The STA provides that mechanism.
Only if the operator fails to meet closure or post‑closure obligations and the surety bond is called. Until then, the trust remains unfunded.
