1 / 20

California Integrated Waste Management Board February 11, 2009

Long-Term Postclosure Maintenance And Corrective Action AB 2296 Consulting Group Workshop. California Integrated Waste Management Board February 11, 2009. AGENDA. 10:00 - 10:15 Introductions and General Overview 10:15 – 12:00 Dealing with Divestiture Regulatory

eagan
Télécharger la présentation

California Integrated Waste Management Board February 11, 2009

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Long-Term Postclosure Maintenance And Corrective Action AB 2296 Consulting Group Workshop California Integrated Waste Management BoardFebruary 11, 2009

  2. AGENDA 10:00 - 10:15 Introductions and General Overview 10:15 – 12:00 Dealing with Divestiture • Regulatory • Add 5X Step-up for lack of continued performance • Add Step-up to 15X for new owner/operator with Board waiver • Change to 15X minimum for PCM • Statutory • Keep former owners/operators liable • Make generators liable 12:00– 1:00 Lunch 1:00 – 2:30 Continue Morning Discussions (if necessary) 2:30 – 3:15 Status of Pooled Fund Discussions 3:15 – 3:30 Wrap Up and Next Steps

  3. Managing Long-Term PCM Risk of Landfill System $ in Millions over 100 years

  4. How Long Does PCM FA $$ Last? 49X = perpetual 43X = 100 years 30X = 46 years 15X = 18 years 5X = 5 years

  5. What is Current Phase II Reg Proposal? • PCM and CA FA required as long as waste poses a threat • 30X Annual PCM at start of period • Annual Drawdown For First 15 Years • 5X Step-downs For Good Performance Every 5 Years • Minimum 5X PCM Throughout Period • Non-water CA Uses Existing Reasonably Foreseeable CA FA

  6. Managing Long-Term PCM Risk of Landfill System $ in Millions over 100 years

  7. What is Effective Multiplier (Likelihood to Step-down)? • Refine Exposure between 5X-15X PCM under proposed Phase II regulations • Modeled No Corrective Actions during 5-year period • Estimated participation in Enhanced Monitoring program during 5-year period • Effective Multiplier equals 8X

  8. Proposed Regulation ImpactDefaults/Divestitures (at 8X) $ in Millions over 100 years

  9. Divestiture Problem • Primarily an Issue for Private Landfills • Becomes a Problem when PCM FA <15X • Affects Both PCM and CA Exposure • Stakeholders Seem to Agree Not to Address Through Pooled Fund

  10. Types of Divestiture • Sell to Another Company for Development or Other Postclosure Land Use • Sell/Donate to Public Entity • Sell to Another Waste Management Company • Change in Control • Sell to Company in the Business of Divestiture

  11. Divestiture – Regulatory What? • Change to Minimum 15X • Add 5X Step-up Provision for lack of continued performance • Add Step-up to 15X for New Owners/Operators • Waiver provision for proven track record When? • During Phase II Rulemaking

  12. Change to Minimum 15X Pros: Cons Ties up more Operator Resources from Other Uses 15X Not Stringent Enough Some Exposure Remains May Result in Earlier Defaults ? • Straightforward • Addresses Divestiture • Lessens Default Exposure • Not Dependent on a Pooled Fund • Not Dependent on a Change to Liability Scheme • ?

  13. Add 5X Step-up For Lack of Continued Performance Pros: Cons: Limited Effect on Divestiture Some Exposure Remains Enforcement/Litigation Difficulties Penalize for CA Beyond Operator’s Control Timing, Step-up When Funds Are Needed Most ? • Indirectly Partially Addresses Divestiture • Incentivizes Continued Maintenance • Minimizes Moral Hazard • ?

  14. Add Step-up to 15X for New Owner/Operators with Waiver Pros: Cons: Not Stringent Enough Some Exposure Remains Increase Price/Affect Sales Doesn’t Address Change in Control ? • Reduces Divestiture • Discourages Marginal/Unproven Operators • Ensures New Owner/Operator has Adequate Financial Resources?

  15. Add 5X Step-up and Step-up to 15X for New Owner/Operators Pros: Cons: Previous Cons Convoluted ? • Previous Pros • Approaches 15X in Addressing Divestiture • ?

  16. Nominal Group Options to Address Divestiture Statutory • Keep Former Site Owners and Operators liable (Water Board-like) • Make Generators, Arrangers, Transporters also liable (DTSC-like)

  17. Keep Former Site Owners/ Operators Liable Pros: Cons: Doesn’t Address Bankruptcy Increases Litigation Perpetual Liability Local Gov’t is Ultimately Responsible for Protecting PHSE ? • Reduces Divestiture by Solvent Companies • Incentive for Increased Due Diligence by Seller • Increases Sources of Revenue • ?

  18. Make Generators, Arrangers, Transporters Also Liable Pros: Cons: Lengthy Litigation for Limited Effectiveness Generators Have No Control Over Operation No Manifests Available Timely Resources Doubtful ? • Greatly Expanded Potential Sources of Revenue • ?

  19. Nominal Group Options to Address Divestiture Ballot • Name (optional) • Representing • Regulatory • Rank Top Two Choices (mark 1 and 2) • Statutory • Rank Top Two Choices (mark 1 and 2)

More Related