Postclosure Maintenance

December 6, 2004 CIWMB P&E Committee Workshop

1

Postclosure Maintenance

Postclosure Maintenance Beyond the Initial 30 Years and Financial Assurance Demonstrations

Integrated Waste Management BoardP&E Committee Workshop

December 6, 2004


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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


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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


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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


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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


7

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


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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


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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


11


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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.


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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


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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


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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


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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.

Documents

Postclosure Maintenance