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  1. Postclosure Maintenance Postclosure Maintenance Beyond the Initial 30 Years and Financial Assurance Demonstrations Integrated Waste Management Board P&E Committee Workshop December 6, 2004 CIWMB P&E Committee Workshop

  2. Introduction • Why Have A Workshop? • General education • Questions: • How long will post-closure maintenance activities at landfills be needed? • How long should operators be required to provide financial assurances for such activities? • Answers have long-term implications CIWMB P&E Committee Workshop

  3. Workshop Format • Staff Presentation • Panel Presentation • Michael D. Caldwell, PG, Senior Director, Waste Management Environmental Protection, Groundwater Programs • Peter Anderson, President, RecycleWorlds Counsulting • Gary J. Lutz, Vice President, AIG Environmental • Open Discussion CIWMB P&E Committee Workshop

  4. Introduction • Staff presentation • What is the potential liability to continue to maintain closed landfills until there is no longer a threat to the people or the environment? • What is postclosure maintenance (PCM)? • How long is the PCM period? • How are PCM cost estimates determined? • What financial assurance (FA) demonstrations are currently available? • What do the FA demonstrations provide the State? • Next steps CIWMB P&E Committee Workshop

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  8. Definition of Postclosure Maintenance • Activities at closed landfill to maintain integrity and monitor compliance • Leachate - collection and treatment • Groundwater – monitoring • Final cover – inspection & maintenance • Includes drainage system • Landfill gas - monitoring and control CIWMB P&E Committee Workshop

  9. Period • Performance based • Indefinite - as long as waste poses a threat • Water quality (SWRCB) • Public health & safety & the environment (CIWMB) • 30 year minimum CIWMB P&E Committee Workshop

  10. Landfill Decomposition Anaerobic Bioreactor Landfill Dry Tomb Landfill (dry site) Gas/Leachate Generation Containment Failure Time (yrs)

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  12. Investigations • EPA Strategic Priority • ASTSWMO meeting topic • WasteTech Landfill Conference topic • Research • EREF • ITRC • SWANA • Universities • North Carolina State, Florida State, Central Florida CIWMB P&E Committee Workshop

  13. Cost Estimate • Annual cost X 30 (CIWMB) • Includes prorated costs for items >annual (e.g., well replacement) • First 30 years (SWRCB) • After first 30 years, additional funding required until waste no longer poses a threat to water quality CIWMB P&E Committee Workshop

  14. Financial Assurances • California Statute • PRC 43500 The Legislature declares that the long-term protection of air, water, and land from pollution is best achieved by requiring financial assurances of closure and postclosure maintenance of solid waste landfills. • PRC 43501(a) requires the owner or operator to certify that it has prepared an estimate and established a financial demonstration to ensure resources for closure and PCM. • PRC 43600(b) requires the owner or operator to submit evidence of financial ability to provide for closure and 30 years of PCM. • PRC 43601(a) requires that evidence of financial ability must be sufficient to meet the closure and PCM costs when needed. CIWMB P&E Committee Workshop

  15. Financial Assurances • California Regulation • 27 CCR 22211(a) requires the operator to demonstrate financial responsibility for PCM in at least the amount of the current PCM cost estimate. • 27 CCR 22221(a) requires the operator to demonstrate financial responsibility for known or reasonably foreseeable corrective action in at least the amount of the current approved cost estimate (as approved by the RWQCB). • 27 CCR 22236 sets forth requirements for increasing the fund balance at least annually for inflation. • 27 CCR 21840(a)(2) cost estimate must be the annual costs multiplied by 30 years. • 27 CCR 21840(a)(3) cost estimate must be adjusted to match changes in plan or conditions at site. • 27 CCR 20950 requires financial assurance for PCM • 27 CCR 21769 itemized cost analysis to carry out the first thirty years of postclosure maintenance CIWMB - SWRCB - CIWMB P&E Committee Workshop

  16. Financial Assurances • Financial Assurance Demonstrations for PCM • Trust Fund (28) • Enterprise Fund (36) • Letter of Credit (10) • Surety Bond (16) • Federal Certification (16) • Pledge of Revenue (154) • Financial Test / Corporate Guarantee (13) • Insurance (10) • Local Government Test / Guarantee (0) CIWMB P&E Committee Workshop

  17. Financial Assurances • What do the FA Demonstrations Provide the State? • Differences Between Mechanisms • Third-Party Guarantee • Cash Value • Impacts of Draw-Downs • Trust Fund • Enterprise Fund • Insurance CIWMB P&E Committee Workshop

  18. Continuing Issues – Postclosure Maintenance Plans • Issue 1: There are no specific criteria for determining when the waste no longer poses a threat to public health and safety or the environment (i.e., ending the postclosure maintenance period). • Issue 2: The PCM cost estimate does not always include costs for known or qualitatively predictable very long-term maintenance/replacement. • Issue 3: There is no Corrective Action requirement or associated FA demonstration for Corrective Action for non-water quality issues CIWMB P&E Committee Workshop

  19. Continuing Issues –Financial Assurances • Issue 4: Should the CIWMB require FA demonstrations for postclosure maintenance beyond 30 years? • Issue 5: Is it appropriate to release money from current PCM FA demonstrations that have a cash value (i.e., Trust Fund, Enterprise Fund, and Insurance), without knowledge that the postclosure maintenance period will end at the 30-year mark? CIWMB P&E Committee Workshop

  20. Next Steps • Issue 1 - monitor ongoing research and report to Board when appropriate for further direction. • Issue 2 - investigate feasibility of requiring PCM cost estimate to include costs for known and/or qualitatively predictable very long-term maintenance/replacement, and report to Board when appropriate for further direction. CIWMB P&E Committee Workshop

  21. Next Steps • Issue 3 - investigate feasibility of developing reasonably foreseeable corrective action plan criteria for non-water quality concerns and for requiring associated FA demonstrations, and report to Board when appropriate for further direction. • Issues 4 and 5 - investigate feasibility of developing additional FA demonstrations that will provide assurances beyond current 30 years, and report to Board when appropriate for further direction. CIWMB P&E Committee Workshop

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  24. Questions? CIWMB P&E Committee Workshop

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  28. Comparison with RCRA Subtitle D CIWMB P&E Committee Workshop

  29. Other States Arizona, Georgia, Idaho, Oregon, and Texas – Reduce financial demonstration during PCM period, as PCM period diminishes. Indiana – Request reductions in financial demonstration each year of $2,500 – 10% of the balance, if remaining costs are covered. Only once per year. Washington – Request reductions in PCM fund. Must provide justification for reduction, as PCM period diminishes. CIWMB P&E Committee Workshop