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“Study to Identify Potential Long-Term Threats and

Financial Assurance Mechanisms for Long-TermPostclosure Maintenance and Corrective Action

atSolid Waste Landfills”

Proposal Prepared by:

ICF Consulting Services, LLCfor the

California Integrated WasteManagement Board

May 7, 2007

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Topics

• ICF’s Understanding of Project

• Team Qualifications and Resources

• Proposed Work Plan

• Questions?

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Understanding of Project

• How do society’s stewards (e.g., owners/operators, LEAs, CIWMB) ensure proper care of wastes left in the ground for disposal for as long as the land disposal may pose a threat to public health, safety, and the environment?

• In particular, how can society ensure that responsible parties have arranged for sufficient funding of necessary care and have equitably allocated the cost burden?

• Which financial assurance options are applicable and available to address this need?

• Which factors (location, conditions) best indicate those landfills that pose the greatest and least threats to public health and safety and the environment?

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Qualifications and Resources

The Team:

Prime Contractor: ICF International

Subcontractors: Cal Recovery

American Risk Management Resources

SDV/ACCI

- close to 2,000 employees

- multidisciplinary

- most work is for public sector

- strong environmental and financial assurance expertise

- small minority business

- experience with landfill planning

- conveniently located

- small business

- experts in insurance

- well-run veteran-owned business

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ICF Financial Assurance Qualifications

• Over 25 years experience with financial assurance, including

- solid waste

- hazardous waste

- underground tanks

- PCBs

- mining wastes

- brownfields

- radioactive materials

- radioactive wastes

- nuclear power reactors

- transportation

- asbestos control

- underground injection

• Work products on

- alternative mechanisms

- cost estimation methods

- program effectiveness

- fund design options

- risk modelling

- amounts of coverage

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Proposed Work Plan

Task 2 – Evaluate FA Demonstrations (Mechanisms)

• use agreed evaluation criteria

• agree on list of demonstrations to be evaluated (stakeholder input)

• present results in tabular format

• focus on suitability for extended PCM and CA for active and closed landfills

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Proposed Work Plan (cont’d)

Task 3 – Working Model of Statewide Pooled Fund

• be precise about scope and coverage of modelled fund; consider some alternatives first

• review and organize experience with state funds, esp. in California

• operationalize “equity” concepts

• estimate fund costs and earnings potential

• develop scenarios and present results

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Proposed Work Plan (cont’d)

Task 4 – Commercial Insurance Product

• define coverage terms and conditions in written draft endorsement

• prepare example cash flow analysis for program

• consult with insurance industry representatives

• investigate pricing process and factors

• estimate anticipated premium cost

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Proposed Work Plan (cont’d)

Task 6 – Risk Screening Methodology

• review key background information and datasets

• assess key factors with material effects that would increase or decrease the likelihood and/or amount of funding needs (a “bright line” approach)

• reality check

• assess temporal issues and factor weighting

• finalize method

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Schedule Overview

Summary Schedule Overview

ICF views Tasks 3 and 6 as the most complex and scheduled the greatest time and resources accordingly. We see Tasks 2 and 4 as relatively straightforward; ideally, to develop information under Task 4, we want to use results from Task 3.

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Questions?