Public Workshop: Assembly Bill 274State Solid Waste Postclosure and Corrective Action Trust Fund

April 12, 2010

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INTRODUCTIONS AND PURPOSE Purpose: Solicit feedback on CalRecycle plan

of action to implement and administer AB 274

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AGENDA 1:00 - 1:10 Introductions and Purpose 1:10 - 1:20 Update on Phase II Rulemaking 1:20 - 1:30 Brief Overview of AB 274 1:30 - 1:45 Fundamental Issues 1:45 - 2:55 Proposed Action Plan 2:55 - 3:00 Wrap Up

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PHASE II RULEMAKING UPDATE Office of Administrative Law approval = Effective Date = Implementation

Guidance Documents Under Development Non-water, Site-specific Corrective Acton Proactive Monitoring

Planned Training May 10th – “Overview” (2hr. Webinar)

May – LEA Roundtables Jun – “Cost Estimating” and “Proactive Monitoring” (2 hr. Webinar)

Spring/Summer – Permit Training Dec/Jan – “Non-water, Site-specific Corrective Action” (2 hr.

Webinar)

Feb – LEA Conference

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OVERVIEW OF AB 274 Became law 1/1/10 (Portantino, Chapter 318, Statutes of 2010) Establishes the State Solid Waste Postclosure and

Corrective Action Trust Fund (Trust Fund) Authorizes landfill operators to elect to participate by

paying a quarterly fee of $0.12 per ton of waste disposed Funds to be used for postclosure activities and corrective

actions where owners or operators fail to perform necessary actions and are unable or unwilling to pay for the required activities, and all financial assurances exhausted

Fee does not become operative unless CalRecycle receives (by 7/1/11*) letters of participation from operators representing at least 50% of the total waste disposal tonnage in 2010

If minimum participation is met fee becomes operative 1/1/12*

* AB 1004 (Portantino), in its current form, would extend by six months

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FUNDAMENTAL ISSUES Minimum Participation

Operator commitment to participate vs. CalRecycle commitment of resources to rulemaking

Financial Risk Analysis Trust Fund balance needs to cover additional

exposure Residual exposure (after Phase 2 regulations):

$370 M Fair Share

Value of Trust Fund contribution vs. Value gained from incentives

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PROPOSED ACTION PLAN

TASK PROPOSED SCHEDULE

Administrative Issues March 2010 White Paper (pg. 2,

Section B) Financial Risk Analysis Letters of Interest to Participate After Minimum Participation

Reached Financially Viable Incentive

Regulations Any Needed Administrative

Regulations

4/10 – 12/10

4/10 – 12/10

1/11 – 7/11

7/11 – 6/12

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FINANCIAL RISK ANALYSIS Revenue Projection

Assumptions/Uncertainties Participation rate Closure of participating landfills Disposal rate Demand

Incentives Incentives Suggested by the Industry

Amount of required coverage: “Draw-down” to 5X annual postclosure cost (rather than “step-down” to 15X)

Transfer of ownership: Consider modifying buyer operational experience requirement

Custodial care: Re-examine concept that could define end of postclosure care

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WRAP UP

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