California Integrated Waste Management Board

Board MeetingJune 16, 2009

California Integrated Waste Management Board

Board MeetingJune 16, 2009

Item #8

Consideration Of Adoption Of The Recommendations To The Legislature In Fulfillment Of AB 2296 (Montanez, Chapter

504, Statutes Of 2006)

Item #8

Consideration Of Adoption Of The Recommendations To The Legislature In Fulfillment Of AB 2296 (Montanez, Chapter

504, Statutes Of 2006)

1

AB 2296 Recommendations

AB 2296 Recommendations

Outline: Scope CIWMB Analysis and Response to AB

2296 AB 2296 Study Phase I Regulations Phase II Regulatory Proposal Recommendations for Any Needed

Statutory Changes Key Public Meetings and Documents

Outline: Scope CIWMB Analysis and Response to AB

2296 AB 2296 Study Phase I Regulations Phase II Regulatory Proposal Recommendations for Any Needed

Statutory Changes Key Public Meetings and Documents 2

By the Numbers – Postclosure Maintenance

over 100 years

By the Numbers – Postclosure Maintenance

over 100 yearsTotal cost $5.6 billion$2.0 billion is currently assuredPotential default exposure $100-

900 millionRemaining residual default based

on May 2009 Phase II rulemaking direction $100-200 million

Total cost $5.6 billion$2.0 billion is currently assuredPotential default exposure $100-

900 millionRemaining residual default based

on May 2009 Phase II rulemaking direction $100-200 million

3

By the Numbers – Corrective Action over 100

years

By the Numbers – Corrective Action over 100

yearsTotal cost $1.8-2.5 billion

$1.8 billion base corrective action$700 million final cover replacement

every 200 years$134 million is currently assuredPotential default exposure $100-

200 millionDoes not include Extraordinary

Corrective Action

Total cost $1.8-2.5 billion$1.8 billion base corrective action$700 million final cover replacement

every 200 years$134 million is currently assuredPotential default exposure $100-

200 millionDoes not include Extraordinary

Corrective Action 4

By the Numbers – Combined Postclosure Maintenance and

Corrective Action over 100 years

By the Numbers – Combined Postclosure Maintenance and

Corrective Action over 100 years

Residual default based on May 2009 Phase II rulemaking direction $300-400 million

Funding will be needed over the next 100 years

Cannot be resolved by regulatory means

Residual default based on May 2009 Phase II rulemaking direction $300-400 million

Funding will be needed over the next 100 years

Cannot be resolved by regulatory means

5

Suggested Recommendation(s) to the

Legislature

Suggested Recommendation(s) to the

Legislature1. The Legislature should consider the

possibility of establishing a state-wide pooled financial assurance mechanism (pooled fund) to address the projected $300-400 million residual financial exposure for postclosure maintenance and corrective actionThe Legislature may also want to size the

pooled fund to account for extraordinary corrective actions

1. The Legislature should consider the possibility of establishing a state-wide pooled financial assurance mechanism (pooled fund) to address the projected $300-400 million residual financial exposure for postclosure maintenance and corrective actionThe Legislature may also want to size the

pooled fund to account for extraordinary corrective actions 6

Suggested Recommendation(s) to the

Legislature

Suggested Recommendation(s) to the

Legislature The Pooled Fund should be raised

over the 100 year period of its use and utilized for the postclosure maintenance and corrective action needs of solid waste landfills for which owner/operators have defaulted

The Pooled Fund should be raised over the 100 year period of its use and utilized for the postclosure maintenance and corrective action needs of solid waste landfills for which owner/operators have defaulted

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