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C&DD Financial Assurance Cost Estimating An introduction to using the FACE tool May 21, 2012, OEPA, SWDO May 31, 2012, OEPA, CO and SEDO June 4, 2012,

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Presentation on theme: "C&DD Financial Assurance Cost Estimating An introduction to using the FACE tool May 21, 2012, OEPA, SWDO May 31, 2012, OEPA, CO and SEDO June 4, 2012,"— Presentation transcript:

1 C&DD Financial Assurance Cost Estimating An introduction to using the FACE tool May 21, 2012, OEPA, SWDO May 31, 2012, OEPA, CO and SEDO June 4, 2012, OEPA NEDO and NWDO

2 Rule Overview Where to find the latest on the rules, training & implementation:

3 Rules Pertaining to Existing C&DD Facilities RuleTitle Definitions Facility exclusions Authorized, limited, and prohibited construction and demolition debris disposal methods Clean, hard fill Prohibited locations for construction and demolition debris facilities Facility design requirements and construction specifications Construction and final closure certification AMENDED – effective 8/1/ Site characterization Ground water monitoring Operation of facilities Final closure of facilities AMENDED – effective 8/1/12

4 Rules Pertaining to Existing C&DD Facilities RuleTitle Financial assurance for construction and demolition debris facility final closure AMENDED – effective 8/1/ Wording of the financial instruments AMENDED – effective 8/1/ Modifications and exemptions Post-closure care of a construction and demolition debris facility NEW – effective 8/1/ Procedures for issuance of an order extending post-closure care period NEW – effective 8/1/ Financial assurance for post-closure care of construction and demolition debris facilities NEW – effective 8/1/ Leachate sampling and analysis and additional requirements to monitor ground water for leachate parameters NEW – effective 1/1/ Construction and demolition debris facility – leachate parameter list NEW – effective 1/1/ Five year transition for final closure or post-closure care financial assurance for construction and demolition debris facilities NEW – effective 8/1/12

5 Five year transition for final closure and post-closure care financial assurance for construction and demolition debris facilities 12/31/13 12/31/14 12/31/15 12/31/16 12/31/17 Five Year Transition Schedule 20% 40% 60% 80% 100% Voluntary A C&DD facility licensed for the 2012 license year may utilize the five year transition period. Financial assurance amounts from the previous license year must be fully funded thirty days after the issuance of the license. The O/O then has until the December 31 st date to increase funding for that year’s twenty percent.

6 Rule Overview Future Training on the Rules Friday morning of June 22nd Watch for latest information at Today’s training focuses on Cost Estimation

7 Financial Assurance Cost Estimating (A)(1) for Closure (A)(1) for Post Closure Be an itemized written cost estimate. Be based upon a third party (what it would cost the licensing authority). For closure, not be less than thirteen thousand dollars per acre. Be on a form: (A)(1) – license (E)(11) – post- closure care

8 Soils in the cost estimate: Default is SOILS NOT MADE AVAILABLE. There is an option of SOILS MADE AVAILABLE (license applicant owned soil made legally available to licensing authority) SOILS MADE LEGALLY AVAILABLE option must be documented in the cost estimate License applicant must have ownership of soil and identify ownership of the property holding the soil Survey and record area of the soil Prequalify the soil Legally ensure availability of soil for licensing authority’s use for closure/post-closure

9 License applicant owns the soil and soil is prequalified The license applicant as owner of the soil and the owner of the land holding the soil will need to legally ensure that licensing authority may access, remove, and use soil for closure/post-closure activities should the license applicant fail to conduct those activities. Legal restrictions ensuring the soil is kept and maintained for the intended purpose and legally protected against other claims (mortgages, liens, bankruptcy). ENVIRONMENTAL COVENANT is one type of consensual legal mechanism that can ensure availability of soil for the licensing authority’s use.

10 Constructed ALDA vs Unconstructed ALDA vs Base ALDA (5 year transition period term) Determine a base ALDA in 2013 license (what you think may be needed during the 5 year transition period) If constructed ALDA is LESS THAN the ALDA identified in the license, fund only constructed ALDA. Constructed ALDA is ALDA with debris and ALDA with construction certification. If add ALDA to base ALDA, fund 100% of additional ALDA. When construct more ALDA, increase cost estimate and financial assurance accordingly.

11 Example ALDA-ILDA Facility boundary Limit of Debris Placement ILDA : filled & capped ILDA : no debris & Not constructed ALDA Constructed ALDA: Contains debris & is uncapped In use Not yet in use but construction certified Unconstructed ALDA: Use planned but construction not certified yet Include in post- closure care cost estimate Include in closure and post-closure care cost estimate May delay funding of unconstructed ALDA until submittal of construction certification Not included in closure and post-closure care cost estimate

12 FACE Action Items

13 Goals of FACE form development Complete Simple and easy to use (and review) Will be basis for developing the form for next year’s use

14 Since FACE is a new requirement… OEPA is available to review estimates for 2013 license, thereafter, the licensing authorities will do the reviews A FACE Team of 7 members will be reviewing the submittals John Hujar, NEDOAllan Hurtt, CDO Mark Mansfield, SEDOMichael Harris, SWDO Shawn Sellers, COBarry Chapman, CO Annette De Havilland, CO

15 August 2012 Access form from web, or , or CD, or hard copy FACE Timeline voluntary Submit draft itemized final closure and post-closure care cost estimate for review by Ohio EPA (FACE Team)

16 August 2012 option If own soil and seeking to use those soils for closure cost estimate, must ensure that soils are pre-qualified and available to licensing authority for closure. Submit documentation such as draft environmental covenant for review by Ohio EPA. FACE Timeline OEPA will review and confer with Licensing Authority OEPA will make recommendation to Licensing Authority

17 September 30, 2012 Submit license application with itemized final closure cost estimate, post-closure care cost estimate (and supportive documentation such as Director issued environmental covenant, if necessary) FACE Timeline If take five year transition option Must submit notice taking option of five year transition for final closure and post closure financial assurance

18 After License Issuance Opt Out of 5-year Transition If construct ALDA, increase and fund financial assurance to cover the cost estimate for all ALDA identified in the license upon submittal of construction certification report. FACE Timeline Optional Include with construction certification report, recalculated FACE form showing increased cost estimate. The additional amount of financial assurance to cover the recalculated cost estimate shall also be funded upon submittal of construction certification report.

19 After License Issuance Opt In 5-year Transition Same as Opt Out of 5-year Transition except: WITHIN BASE ALDA if newly constructed ALDA is WITHIN the base ALDA, adjust payment in accordance with rule OAC FACE Timeline Same as Opt Out of 5-year Transition: OUTSIDE BASE ALDA If newly constructed ALDA is OUTSIDE the base ALDA, fund cost of all ALDA at time of construction certification report submittal. Option to recalculate cost estimate and fund additional financial assurance only for newly constructed ALDA still applies.

20 Future plans When 2013 review is over, anticipate hosting a webex-based event: How the form/process worked work on revising the form for next year FACE Timeline Goal is to continue to simplify – perhaps to develop a new formula (may not be as simple as old formula)

21 Summary of Urgent Items Itemization of cost estimate: Prepare justifications for less than reference costs 2013 ALDA If opt in 5-year transition, consider ALDA that will last for 5- year transition period. Any ALDA outside that area pays 100% of its cost estimate Pre-purchase soils: Test soil Delineate borrow area Calculate soil needed, available Contract with seller Environmental Covenant ODNR mining permit

22 Rule Information Contact Dan Harris Ohio EPA, Division of Materials & Waste Management 50 West Town Street, Suite 700 Columbus, Ohio /

23 FACE Information Contact Annette De Havilland Ohio EPA, Division of Materials & Waste Management 50 West Town Street, Suite 700 Columbus, Ohio /


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