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Enhancing Waste Management: AB 274 Implementation Plan Review

This public workshop, held on April 12, 2010, focused on soliciting feedback for CalRecycle's plan to implement and administer AB 274. The workshop included updates on rulemaking, an overview of AB 274, discussions on fundamental issues, and a proposed action plan. Key topics covered financial risk analysis, minimum participation requirements, trust fund management, and regulatory schedules. Participants discussed the establishment of the State Solid Waste Postclosure and Corrective Action Trust Fund, operator participation fees, and the use of funds for postclosure activities and corrective actions. The workshop concluded with a proposed schedule for administrative and financial analysis tasks. Attendees engaged in discussions to ensure effective implementation and monitoring of the trust fund.

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Enhancing Waste Management: AB 274 Implementation Plan Review

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Presentation Transcript

  1. Public Workshop: Assembly Bill 274State Solid Waste Postclosure and Corrective Action Trust Fund April 12, 2010

  2. Introductions and Purpose • Purpose: Solicit feedback on CalRecycle plan of action to implement and administer AB 274

  3. 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

  4. 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

  5. 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

  6. 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

  7. 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

  8. 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

  9. Wrap Up

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