California Department of Resources Recycling and Recovery (CalRecycle) 

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Solid Waste Facilities: Financial Assurances 2007 Contracted Study
Status of Study

This study was designed to identify potential long-term threats and financial assurance mechanisms for long-term postclosure maintenance and corrective action at solid waste landfills. The study produced six deliverables, including their associated white papers, which were reviewed and commented on by the consulting group. The final deliverables were posted to this web page as they were approved by the contract managers. The white papers were developed by the contractor to explain issues, options, and rationales for each task.

Estimated Timeline for Posting Deliverables

Final Deliverables Estimated Completion Date Actual Completion Date
Task 1 and Task 5:
Work Plan Jul. 25, 2007 Jul. 25, 2007
Task 2:
Report: Financial Demonstrations Dec. 1, 2007 Oct. 10, 2007 (Draft)
White paper: "Review of Mechanisms" Sep. 7, 2007 Sep. 14, 2007
Task 3:
White paper: "Analysis of Selected Conceptual Fund Designs" Sep. 7, 2007 Sep. 14, 2007
White paper: "Review Pooled Funds Experience" and outline for discussion with the contract team Sep. 7, 2007 Sep. 14, 2007
White paper: "Modeling Corrective Action Frequency at Municipal Solid Waste Landfills to Include the Prospect of More than One Corrective Action per Landfill" Sep. 7, 2007 Oct. 10, 2007 (Draft)
White paper: "Timing of Corrective Actions" Sep. 7, 2007 Oct. 10, 2007 (Draft)
White paper: "Potential Costs of Corrective Actions and Post 30 Postclosure Maintenance for Municipal Solid Waste Landfills" Sep. 7, 2007 Oct. 10, 2007 (Draft)
White paper: "Modeling Defaults in Task 3 Fund Working Model" Sep. 7, 2007 Sep. 14, 2007
White paper: "Funding Options for Owners/Operators Providing the Funds Needed for Defaults of Post 30 Postclosure Maintenance and Corrective Action" Sep. 24, 2007 Oct. 10, 2007 (Draft)
Report: Statewide Pooled Fund Dec. 1, 2007 Oct. 10, 2007 (Draft)
Task 4:
White paper: "Task 4 Insurance Product" Sep. 7, 2007 Sep. 14, 2007

Report:

  1. Draft and final endorsements
  2. Anticipated pricing structure
  3. Results of consultations with industry representatives re: interest in insurance program
Nov. 30, 2007 Oct. 10, 2007 (Draft)
Task 6:
Factors that Potentially Affect Landfill's Impact on Public Health and Safety and the Environment Sep. 21, 2007 Oct. 1, 2007
Report and method allowing staff to determine whether a given landfill has indicators of exceptional risk. Nov. 5, 2007 Oct. 10, 2007 (Draft)
Draft Financial Assurances Report: Consists of Tasks 2, 3, 4, and 6 reports Oct. 10, 2007 Oct. 10, 2007
Final Contractors Report Nov. 26, 2007 Nov. 26, 2007

Component I:

Task 1 and Task 5: Task 1 is a development of a finalized detailed work plan for Tasks 2 through 4 indicating the steps that will be taken in completing each task. Task 5 is development of a finalized detailed work plan for Task 6 indicating the steps that will be taken in completing the task.

Deliverables: Detailed work plan for each task.

Task 2: Review existing financial demonstrations and provide a detailed report of appropriate applicable alternative financial mechanisms. (A minimum of 70 percent of the costs for this task must be directed to subtask 3, which is the development of appropriate alternative financial mechanisms with similar security attributes as current assurances.)

Deliverable: Detailed report of demonstrations consisting of a list of applicable financial demonstrations appropriate for long-term postclosure maintenance and corrective action financial exposures at active and closed solid waste landfills.

Task 3: Develop a detailed report of demonstrations consisting of a working model of a statewide pooled fund to receive equitable contributions from all operating solid waste landfills within California to cover all long-term postclosure maintenance and corrective action at active and closed solid waste landfills.

Deliverable: Detailed report of demonstrations consisting of a working model of a statewide pooled fund to receive equitable contributions from all operating solid waste landfills within California to cover all long-term postclosure maintenance and corrective action at active and closed solid waste landfills.

Task 4: Develop a model product that could be purchased by all landfill operators to provide an umbrella insurance policy capable of assuring all long-term postclosure maintenance and corrective action costs at active and closed landfills not already identified and assured to CalRecycle.

Deliverable: Insurance Certificate acceptable to insurance industry and CalRecycle contract manager that will be available from the insurance market and that would provide an umbrella of financial coverage to all solid waste landfills within California.

Component II:

Task 6: Develop a detailed report showing factor analysis, assumptions, and recommendations along with automated methodology for determining overall financial assurances coverage levels for any active or closed landfill in California.

Deliverable: Detailed report showing factor analysis, assumptions, and recommendations along with an automated methodology for determining overall financial assurances coverage levels for any active or closed landfill in California.

Last updated: March 19, 2008
Financial Assurances, http://www.calrecycle.ca.gov/SWFacilities/Financial/
Richard Castle: Richard.Castle@calrecycle.ca.gov (916) 341-6343