california integrated waste management board july 22 2008
Download
Skip this Video
Download Presentation
California Integrated Waste Management Board July 22, 2008

Loading in 2 Seconds...

play fullscreen
1 / 19

California Integrated Waste Management Board July 22, 2008 - PowerPoint PPT Presentation


  • 97 Views
  • Uploaded on

Item #14 Discussion And Request For Additional Direction On Long-Term Postclosure Maintenance And Corrective Action Financial Assurances For Landfills. California Integrated Waste Management Board July 22, 2008. Phase II Group A.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'California Integrated Waste Management Board July 22, 2008' - dawson


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
california integrated waste management board july 22 2008
Item #14

Discussion And Request For Additional Direction On Long-Term Postclosure Maintenance And Corrective Action Financial Assurances For Landfills

California Integrated Waste Management BoardJuly 22, 2008

phase ii group a
Phase II Group A

Staff shared initial draft language with stakeholders, and will bring revised language to Board in Aug 2008

  • Five-Year PCM Review (1988-2003 sites)
  • As-built costs
  • Closure certification report submittal
  • Insurance amendments
  • Pledge of Revenue form
phase ii group b
Phase II Group B

Staff shared initial draft language with stakeholders, and will bring revised language to Board in Aug 2008

  • Reasonable PCM Contingency
  • Grandfather Closed Sites
  • Non-water Corrective Action FA Piggybacking on Water Board
  • Cost Estimating Dialogue
  • No anticipated reductions in PCM costs
group b pcm reasonable contingency
Group B:PCM Reasonable Contingency
  • Staff Proposing Language Requiring a 10% Contingency on All PCM Costs
  • Need Depends on LTFA Option Chosen
  • Grandfather Closed Sites
group b non water quality corrective action fa
Group B: Non-Water Quality Corrective Action FA

Staff Proposal Addresses Stakeholders’ Concerns:

  • Simplify – No CA Plan - Use Water Quality Cost Estimate
  • Establish Schedule for Repayment When Used
  • Consider Ability to Repay Before Release of Funds
  • More Guidance Helpful on Current Regulations
group b cost estimating dialogue
Group B:Cost Estimating Dialogue

Staff Proposal Addresses Stakeholders’ Concerns:

  • Costing for Landfill Gas Control Systems
  • Operating vs. Closing Costs
phase ii group c
Phase II Group C

Explore Further with AB 2296 Consulting Group and bring back to Board in July 2008 for further direction

  • Consider additional proposals
  • How to extend PCM beyond 30 years
  • Individual FA and/or Pooled Fund
  • How much $$$
extending financial assurance
ExtendingFinancialAssurance
  • How much FA is enough?
  • How much risk should be avoided?
  • What risks can and should be managed?
  • What are the system costs associated with avoidable and non-avoidable risk?
how much risk can be avoided
How Much Risk Can be Avoided?
  • Long Term Landfill Postclosure Maintenance Costs
  • Landfill Owner Defaults
  • Landfill Owner Divestitures
  • Future Changes to Landfill Design
  • Future Changes to Operation of Existing/Closed Landfills
long term landfill pcm costs
Long Term Landfill PCM Costs
  • 15 Years of California Experience Shows No PCM Cost Reductions
  • Industry Study Does Not Have Empirical Data Showing Costs Declining
  • Other State Data Inconclusive
  • Modeling Shows That Annual 0.5% Cost Reduction Achieves Equilibrium and Reduces System Costs by 20%
potential landfill operator default types
Potential Landfill Operator Default Types
  • Standard Default – Operator and Financial Institution, Except Means Test
  • Single Privates (29) – Most (22) Permanently Default
    • 14 closed
    • 6 operating
    • 2 permitted
    • 7 corporate or publicly assured
  • Rural Publics – Temporary Defaults (64)
  • Divestiture – Sell After 30 years PCM, All Privates (a Few Publics), Start-up Business Permanent Default Rate
system costs associated with risk
System Costs Associated With Risk
  • A Certain Level of Defaults Will Occur Regardless of the Amount of Individual Financial Assurance
  • Imposition of a 100-year scenario will likely precipitate an increase in early defaults of Single Private operators
  • Divestiture Leading to Default Can Be Controlled:
    • Buyer Financial Means
    • Buyer Financial Assurance
    • All Owners Retain Responsibility
option 1 individual fa no pooled fund
Option 1 – Individual FA; No Pooled Fund
  • Step-down/Draw-down Rolling 15
  • Exposure to State=$96-170M over 100 Years
  • Minimizes Divestiture Defaults
  • 10% PCM Contingency if Draw-down
option 2 individual fa combined with pooled fund
Option 2 – Individual FA Combined With Pooled Fund
  • Step-down/Draw-down Rolling 15
  • Pooled Fund as Backstop for Defaults
  • Exposure to State Covered by Fund=$96-170M over 100 years
    • Standard Defaults
    • Single Privates
    • Rural Publics
  • Minimizes Divestiture Defaults
  • No PCM Contingency
option 3 status quo with pooled fund
Option 3 – Status Quo With Pooled Fund
  • Exposure to State Covered by Fund=$896M over 100 years
    • Private = 90%
    • Public = 10%
  • Addresses Defaults
    • Standard Defaults
    • Single Privates
    • Rural Publics
    • Divestiture Defaults
  • No PCM Contingency
option 4 pooled fund with controlled divestiture
Option 4 – Pooled Fund with Controlled Divestiture
  • Site History Assessed
  • Financial Test or Appropriate FA
  • Exposure to State Covered by Fund=From $170M to $896M over 100 years
  • Addresses Defaults
    • Standard Defaults
    • Single Privates
    • Rural Publics
  • No PCM Contingency
next steps
Next Steps
  • Jul 17 – Informal Rulemaking Workshop
  • Jul 22 – Board Update and Additional Direction
  • Aug 11 – P&C Request for Rulemaking Direction
ad