California Department of Resources Recycling and Recovery (CalRecycle) 

Regulations: Title 27, Environmental Protection--Division 2, Solid Waste

Chapter 8. Other Provisions

Subchapter 1. Financial Assistance Programs

Article 1. Landfill Closure Loan Program

Section 23001. Purpose of the Landfill Closure Loan Program

The purpose of the Landfill Closure Loan Program (Program) is to provide loans to operators of older-technology, unlined landfills who desire to close their landfills in order to avoid or to mitigate potential environmental problems being caused or threatened by continued operation of the landfill.

Note:

Authority cited: Sections 40502 and 48206, Public Resources Code.
Reference: Sections 48202(a) and (b), Public Resources Code.


Section 23002. Definitions

Unless the context requires another construction, the definitions set forth in this chapter, section 20164 and Division 30 of the Public Resources Code shall govern the construction of this Article. No definitions that are present in Division 30 of the Public Resources Code are repeated herein. Consequently, those definitions should be read in conjunction with the ones set forth herein:

(a) "Applicant" means the entity applying for a loan.

(b) "Application" means the information an applicant must provide the Board when applying for a loan.

(c) "Board" means California Integrated Waste Management Board.

(d) "Borrower" means an applicant who has received a Program loan.

(e) "Early Closure" means the process during which a landfill is no longer receiving waste and is undergoing all operations necessary to prepare the landfill for closure in accordance with an approved closure and postclosure plan prior to reaching final capacity.

(f) "Loan" means a loan from the Landfill Closure Loan Program.

(g) "Older Technology" means an unlined landfill as defined in (h) below.

(h) "Unlined Landfill" means a landfill that does not have a liner as defined in section 20164.

(i) "Rural Area" means any of the following:

(1) An incorporated city that has a population density of less than 1,500 people per square mile;

(2) Any county that has a population of 200,000 or less;

(3) Counties and cities located in agricultural, desert, or mountainous areas of the state and located outside the Department of Finance's Primary Metropolitan Statistical Areas.

(j) "Serious Potential Threat" means a serious threat to the public health and safety, or the environment as determined by the Board.

(k) "Small" means a landfill that has received an average of less than 100 tons of municipal solid waste per day during its operating life.

Note:

Authority cited: Sections 40502 and 48206, Public Resources Code.
Reference: Sections 40000, 40001, and 48202, Public Resources Code.


Section 23003. Use of Loan Proceeds

Loan proceeds may be used for any and all purposes related to the closure of an eligible landfill as approved by the Board, including, without limitation, construction costs consistent with the landfill's approved final closure plan, planning and design costs necessary to prepare the final closure and postclosure maintenance plans, costs of preparing environmental documents associated with the final closure and postclosure maintenance plans or closure, and governmental fees associated with the final closure and postclosure maintenance plans or closure.

Note:

Authority cited: Sections 40502, 43020, and 48206, Public Resources Code.
Reference: Sections 48202(a) and (b), Public Resources Code.


23004. Landfill Eligibility Criteria

To be eligible for a loan the landfill must:

(a) Be a solid waste landfill, as defined in PRC Section 40195.1(a);

(b) Have a current solid waste facilities permit issued by the applicable enforcement agency;

(c) Be unlined; and

(d) Be using a trust fund(s) or enterprise fund(s) as financial assurance mechanism(s) to fund landfill closure and such mechanisms shall be in compliance with the current required level of funding and meet all other requirements provided in section 22200 et seq.

Note:

Authority cited: Sections 40502 and 48206, Public Resources Code.
Reference: Sections 48202(a) and (b), and 48204(b) and (c), Public Resources Code.


23005. Operator Eligibility Criteria

To be eligible for a loan, the operator must demonstrate the ability to:

(a) Repay the loan in a timely manner and to satisfy all other requirements imposed on the operator in the loan agreement;

(b) Promptly and properly close the site with monetary assistance from the Program; and

(c) Adequately maintain the closed site (i.e., a currently acceptable postclosure maintenance financial assurance mechanism).

Note:

Authority cited: Sections 40502 and 48206, Public Resources Code.
Reference: Sections 48202(a) and 48204(b) and (c), Public Resources Code.


23006. Loan Priorities

The Board shall give priority to loans to close those landfills which:

(a) Demonstrate the highest degree of risk to public health and safety or the environment which can be prevented or mitigated by closure of the landfill;

(b) Are small landfills;

(c) Are located in rural areas;

(d) Have approved Closure and Postclosure Maintenance Plans; and

(e) Propose complete closure of the site.

Note:

Authority cited: Sections 40502 and 48206, Public Resources Code.
Reference: Sections 48202(b), Public Resources Code.


23007. Loan Amount, Length of Term, and Interest Rate

(a) The Board shall determine the loan amount for each loan not to exceed $500,000.

(b) The Board shall determine the term of each loan not to exceed 10 years.

(c) The Board shall determine the interest rate set for each loan. The interest rate may be set at zero (0) percent per year.

Note:

Authority cited: Sections 40502 and 48206, Public Resources Code.
Reference: Section 48204 (d)-(f), Public Resources Code.


23008. Application Submittal

(a) Provided that loan funds are available for disbursement, the Board shall solicit loan applications from eligible operators at least once per year.

(b) Applicants may submit applications to the Board during open application cycles only.

(c) The applicant must submit an original application and five copies including all required attachment.

Note:

Authority cited: Sections 40502 and 48206, Public Resources Code.
Reference: Sections 48202(b), Public Resources Code.


23009. Application Content

(a) Each applicant must submit an application that includes, but is not limited to facility, project and financial information. Applicants must provide documentation deemed necessary by the Board, on a case-by-case basis, to determine the need for the loan, the ability to complete the project in a timely manner, and the Applicant's ability to secure and repay the loan.

(b) Required attachments to accompany each application shall include, but are not limited to:

(1) A detailed work plan, and

(2) For local governments, an approved resolution of the local governing authority to make an application to the Board for a loan commitment.

Note:

Authority cited: Sections 40502 and 48206, Public Resources Code.
Reference: Sections 48202(a) and (b), and 48204(b), Public Resources Code.


23010. Application Review

(a) Board staff shall review all applications for eligibility based on the criteria specified in sections 23004 and 23005 of this article.

(b) Board staff shall rank all eligible projects based on the criteria for priority consideration specified in section 23006 of this article. If no eligible projects meet the requirements for priority consideration, Board staff will rank eligible projects on the basis of the criteria contained in section 23005.

Note:

Authority cited: Sections 40502 and 48206, Public Resources Code.
Reference: Sections 48202(a) and (b),  and 48204(b) and (c), Public Resources Code.


23011. Board Approval

(a) After determining eligibility and project ranking, Board staff shall submit recommendations for funding to the Board.

(b) If the Board approves a loan, the Applicant and the Board shall enter into a Loan Agreement as specified in section 23012. Funds shall be disbursed according to the terms of the Loan Agreement.

(c) The Board may delegate to the Executive Director the approval of loans.

Note:

Authority cited: Sections 40502 and 48206, Public Resources Code.
Reference: Sections 48204(a), Public Resources Code.


23012. Loan Agreement

Each loan agreement shall include, but not be limited to, the following terms and conditions:

(a) The interest rate of the loan.

(b) The term of the loan.

(c) A description of the security, if any, given to assure repayment of the loan.

(d) Timeframes for complying with the conditions of loan closing and any special conditions that must be satisfied prior to, or covenants which must be complied with after, the disbursement of funds.

(e) Identification of what is considered an event of default, including a provision that, upon failure to comply with the loan agreement, or if any information provided by the applicant is found to be untrue, any remaining unpaid amount of the loan will be immediately due and payable upon determination of default by the Board.

(f) A provision that the Borrower agrees to waive any claims against and to indemnify and hold harmless the State of California, including the California Integrated Waste Management Board, from and against any and all claims, liabilities, costs, and expenses stemming from operation, maintenance, or environmental degradation at the landfill or arising from or in conjunction with any activity funded by the loan.

(g) Proof of adequate insurance for the Borrower, naming the Board as loss payee, and when appropriate, naming the Board as additional insured, up to the amount of the loan.

(h) The Borrower shall establish a Landfill Closure Loan Account into which all loan amounts received shall be deposited and from which funds are disbursed. Expenditures from this account shall be made only for eligible project costs as defined in the Loan Agreement.

(i) For Borrowers without approved final closure and postclosure maintenance plans for their landfill(s):

(1) Timeframes for submittal and approval of closure and postclosure maintenance plans, and

(2) Provision requiring approval of final closure and post closure maintenance plans prior to commencing closure activities.

(j) Any other provisions that the Board determines are necessary or appropriate.

Note:

Authority cited: Sections 40502 and 48206, Public Resources Code.
Reference: Sections 48204(a), Public Resources Code.


23013. Auditing of Expenditure of Loan Proceeds

(a) The Board, or the Department of Finance, may audit the expenditure of the proceeds of any loan made pursuant to this Article.

(b) The Borrower shall maintain records in accordance with accepted government accounting standards. Records shall be retained at least three (3) years after expiration of the Agreement, or until completion of actions and resolution of all issues which may arise as a result of any litigation, claim, negotiation or audit, whichever is later.

Note:

Authority cited: Sections 40502 and 48206, Public Resources Code.
Reference: Sections 48204(g), Public Resources Code.


23014. Review of Records and Site Reviews

Board staff and the Local Enforcement Agency (LEA) may inspect the Borrower's records and may conduct on-site reviews during the project to verify compliance with the specifications and terms of the Loan Agreement.

Note:

Authority cited: Sections 40502 and 48206, Public Resources Code.
Reference: Sections 48202(c), Public Resources Code.

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