December 6, 2004 CIWMB P&E Committee Workshop
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Postclosure Maintenance
Postclosure Maintenance Beyond the Initial 30 Years and Financial Assurance Demonstrations
Integrated Waste Management BoardP&E Committee Workshop
December 6, 2004
December 6, 2004 CIWMB P&E Committee Workshop
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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
December 6, 2004 CIWMB P&E Committee Workshop
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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
December 6, 2004 CIWMB P&E Committee Workshop
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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
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Distribution of California Landfills Entering Post-Closure Period
0 5 10 15 20 25 30
Post Closure
1-5 Years
6-10 Years
11 - 15 Years
16 - 20 Years
21+ Years
Percent of Landfills Going Into Post-Closure
December 6, 2004 CIWMB P&E Committee Workshop
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Assured (red) and Unassured (blue) Annual Post-Closure Liabilities (currently closed sites)
$0$5
$10$15$20$25$30$35$40$45
Mill
ions
December 6, 2004 CIWMB P&E Committee Workshop
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Public (red) and Private (blue) Unassured Annual Post-Closure Liabilities (currently closed sites)
$0$5
$10$15$20$25$30$35$40$45
Mill
ions
December 6, 2004 CIWMB P&E Committee Workshop
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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
December 6, 2004 CIWMB P&E Committee Workshop
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Period Performance based Indefinite - as long as waste poses
a threat Water quality (SWRCB) Public health & safety & the
environment (CIWMB) 30 year minimum
Landfill Decomposition
0
1
2
3
4
5
6
7
8
9
10
Time (yrs)
Anaerobic Bioreactor Landfill
Dry Tomb Landfill (dry site)
Containment Failure
Gas
/Lea
chat
e G
ener
atio
n
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December 6, 2004 CIWMB P&E Committee Workshop
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Investigations EPA Strategic Priority ASTSWMO meeting topic WasteTech Landfill Conference topic Research
EREF ITRC SWANA Universities
North Carolina State, Florida State, Central Florida
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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
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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.
December 6, 2004 CIWMB P&E Committee Workshop
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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 -
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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)
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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
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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
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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?
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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.
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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.
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Public (red) and Private (blue) Unassured Annual Post-Closure Liabilities (all sites) - next 50 years
$0
$20
$40
$60
$80
$100
$120
$140
$160
Mill
ions
December 6, 2004 CIWMB P&E Committee Workshop
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$18 M Annual Investment (red) Satisfies Unassured Liability (blue) for Next 50 Years (2.5% return on investsment)
$0$200$400$600$800
$1,000$1,200$1,400$1,600$1,800$2,000
Mill
ions
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Questions?
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Assured (red) and Unassued (blue) Annual Post-Closure Liabilities (all sites)
$0$20$40$60$80
$100$120$140$160$180$200
Mill
ion
s
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$46 M Annual Investment (red) Satisfies Unassured Liability (blue) for Next 100 Years (2.5% return on investment)
$0
$5,000
$10,000
$15,000
$20,000
$25,000
2005
2012
2019
2026
2033
2040
2047
2054
2061
2068
2075
2082
2089
2096
2103
Mill
ions
December 6, 2004 CIWMB P&E Committee Workshop
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Consequence of Postponing Investment in Post Post-closure Maintenance
To 2054 To 2054To 2054
To 2054
To 2104To 2104
To 2104To 2104
$0$10$20
$30$40$50$60
$70$80
2005 2010 2015 2020
Annual Investment Required (2.5%)
Mill
ions
December 6, 2004 CIWMB P&E Committee Workshop
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Comparison with RCRA Subtitle D
Item CIWMB SWRCB U.S. EPA
Period Performance based 30 year minimum As long as waste poses threat
Performance based As long as waste poses threat
Prescriptive 30 year <> Approved State
Plan contents Annual maintenance
Annual maintenance
Entire PCM period
Cost estimate Annual cost x 30 First 30 years then renewed
Cost for entire PCM period
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Other StatesArizona, 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.
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