C&DD Financial Assurance Cost Estimating An introduction to using the FACE tool

1. C&DD Financial Assurance Cost EstimatingAn introduction to using the FACE tool May 21, 2012, OEPA, SWDO May 31, 2012, OEPA, CO and SEDO June 4, 2012, OEPA NEDO and NWDO

2. Where to find the latest on the rules, training & implementation: • http://www.epa.ohio.gov/Default.aspx?tabid=5035 Rule Overview

3. Rules Pertaining to Existing C&DD Facilities

4. Rules Pertaining to Existing C&DD Facilities

5. 3745-400-25 Five year transition for final closure and post-closure care financial assurance for construction and demolition debris facilities Five Year Transition Schedule 12/31/13 20% Voluntary A C&DD facility licensed for the 2012 license year may utilize the five year transition period. Financial assurance amounts from the previous license year must be fully funded thirty days after the issuance of the license. The O/O then has until the December 31st date to increase funding for that year’s twenty percent. • 12/31/14 40% • 12/31/15 60% • 12/31/16 80% • 12/31/17 100%

6. Future Training on the Rules • Friday morning of June 22nd • Watch for latest information at • http://www.epa.ohio.gov/Default.aspx?tabid=5035 • Today’s training focuses on Cost Estimation Rule Overview

7. Financial Assurance Cost Estimating 3745-400-13(A)(1) for Closure 3745-400-18(A)(1) for Post Closure Be an itemized written cost estimate. Be based upon a third party (what it would cost the licensing authority). For closure, not be less than thirteen thousand dollars per acre. • Be on a form: • 3745-37-02(A)(1) – license • 3745-400-12(E)(11) – post-closure care

8. Soils in the cost estimate: Default is SOILS NOT MADE AVAILABLE. There is an option of SOILS MADE AVAILABLE (license applicant owned soil made legally available to licensing authority) SOILS MADE LEGALLY AVAILABLE option must be documented in the cost estimate Survey and record area of the soil License applicant must have ownership of soil and identify ownership of the property holding the soil Legally ensure availability of soil for licensing authority’s use for closure/post-closure Prequalify the soil

9. Legally ensure availability of soil for licensing authority’s use for closure/post-closure License applicant owns the soil and soil is prequalified The license applicant as owner of the soil and the owner of the land holding the soil will need to legally ensure that licensing authority may access, remove, and use soil for closure/post-closure activities should the license applicant fail to conduct those activities. Legal restrictions ensuring the soil is kept and maintained for the intended purpose and legally protected against other claims (mortgages, liens, bankruptcy). ENVIRONMENTAL COVENANT is one type of consensual legal mechanism that can ensure availability of soil for the licensing authority’s use.

10. Constructed ALDA vs Unconstructed ALDA vs Base ALDA (5 year transition period term) Constructed ALDA is ALDA with debris and ALDA with construction certification. If constructed ALDA is LESS THAN the ALDA identified in the license, fund only constructed ALDA. When construct more ALDA, increase cost estimate and financial assurance accordingly. Determine a base ALDA in 2013 license (what you think may be needed during the 5 year transition period) If add ALDA to base ALDA, fund 100% of additional ALDA.

11. Facility boundary Limit of Debris Placement • Constructed ALDA: • Contains debris & is uncapped • In use • Not yet in use but construction certified Unconstructed ALDA: Use planned but construction not certified yet ILDA: filled & capped ILDA: no debris & Not constructed ALDA Not included in closure and post-closure care cost estimate Include in post-closure care cost estimate May delay funding of unconstructed ALDA until submittal of construction certification Include in closure and post-closure care cost estimate Example ALDA-ILDA

12. FACE Action Items

13. Goals of FACE form development • Complete Simple and easy to use (and review) Will be basis for developing the form for next year’s use

14. Since FACE is a new requirement… OEPA is available to review estimates for 2013 license, thereafter, the licensing authorities will do the reviews A FACE Team of 7 members will be reviewing the submittals John Hujar, NEDO Allan Hurtt, CDO Mark Mansfield, SEDO Michael Harris, SWDO Shawn Sellers, CO Barry Chapman, CO Annette De Havilland, CO

15. FACE Timeline Access form from web, or email, or CD, or hard copy August 2012 voluntary Submit draft itemized final closure and post-closure care cost estimate for review by Ohio EPA (FACE Team)

16. FACE Timeline August 2012 option If own soil and seeking to use those soils for closure cost estimate, must ensure that soils are pre-qualified and available to licensing authority for closure. Submit documentation such as draft environmental covenant for review by Ohio EPA. OEPA will review and confer with Licensing Authority OEPA will make recommendation to Licensing Authority

17. FACE Timeline September 30, 2012 Submit license application with itemized final closure cost estimate, post-closure care cost estimate (and supportive documentation such as Director issued environmental covenant, if necessary) If take five year transition option Must submit notice taking option of five year transition for final closure and post closure financial assurance

18. FACE Timeline If construct ALDA, increase and fund financial assurance to cover the cost estimate for all ALDA identified in the license upon submittal of construction certification report. After License Issuance Opt Out of 5-year Transition Optional Include with construction certification report, recalculated FACE form showing increased cost estimate. The additional amount of financial assurance to cover the recalculated cost estimate shall also be funded upon submittal of construction certification report.

19. FACE Timeline After License Issuance Opt In 5-year Transition Same as Opt Out of 5-year Transition except: WITHIN BASE ALDA if newly constructed ALDA is WITHIN the base ALDA, adjust payment in accordance with rule OAC 3745-400-25 • Same as Opt Out of 5-year Transition: • OUTSIDE BASE ALDA • If newly constructed ALDA is OUTSIDE the base ALDA, fund cost of all ALDA at time of construction certification report submittal. • Option to recalculate cost estimate and fund additional financial assurance only for newly constructed ALDA still applies.

20. FACE Timeline Future plans • When 2013 review is over, anticipate hosting a webex-based event: • How the form/process worked • work on revising the form for next year Goal is to continue to simplify – perhaps to develop a new formula (may not be as simple as old formula)

21. Summary of Urgent Items • Pre-purchase soils: • Test soil • Delineate borrow area • Calculate soil needed, available • Contract with seller • Environmental Covenant • ODNR mining permit • 2013 ALDA • If opt in 5-year transition, consider ALDA that will last for 5-year transition period. Any ALDA outside that area pays 100% of its cost estimate • Itemization of cost estimate: • Prepare justifications for less than reference costs

22. Dan Harris Ohio EPA, Division of Materials & Waste Management 50 West Town Street, Suite 700 Columbus, Ohio 43215-1049 614/728-5377 dan.harris@epa.state.oh.us Rule Information Contact

23. Annette De Havilland Ohio EPA, Division of Materials & Waste Management 50 West Town Street, Suite 700 Columbus, Ohio 43215-1049 614/728-5373 Annette.dehavilland@epa.state.oh.us FACE Information Contact