1. California Integrated Waste Management Board Board Meeting June 16, 2009 Item #8 Consideration Of Adoption Of The Recommendations To The Legislature In Fulfillment Of AB 2296 (Montanez, Chapter 504, Statutes Of 2006) Item #8 Consideration Of Adoption Of The Recommendations To The Legislature In Fulfillment Of AB 2296 (Montanez, Chapter 504, Statutes Of 2006) 1

2. AB 2296 Recommendations Outline: Scope CIWMB Analysis and Response to AB 2296 AB 2296 Study Phase I Regulations Phase II Regulatory Proposal Recommendations for Any Needed Statutory Changes Key Public Meetings and Documents Outline: Scope CIWMB Analysis and Response to AB 2296 AB 2296 Study Phase I Regulations Phase II Regulatory Proposal Recommendations for Any Needed Statutory Changes Key Public Meetings and Documents 2

3. By the Numbers – Postclosure Maintenance over 100 years Total cost $5.6 billion $2.0 billion is currently assured Potential default exposure $100-900 million Remaining residual default based on May 2009 Phase II rulemaking direction $100-200 million Total cost $5.6 billion $2.0 billion is currently assured Potential default exposure $100-900 million Remaining residual default based on May 2009 Phase II rulemaking direction $100-200 million 3

4. By the Numbers – Corrective Action over 100 years Total cost $1.8-2.5 billion $1.8 billion base corrective action $700 million final cover replacement every 200 years $134 million is currently assured Potential default exposure $100-200 million Does not include Extraordinary Corrective Action Total cost $1.8-2.5 billion $1.8 billion base corrective action $700 million final cover replacement every 200 years $134 million is currently assured Potential default exposure $100-200 million Does not include Extraordinary Corrective Action 4

5. By the Numbers – Combined Postclosure Maintenance and Corrective Action over 100 years Residual default based on May 2009 Phase II rulemaking direction $300-400 million Funding will be needed over the next 100 years Cannot be resolved by regulatory means Residual default based on May 2009 Phase II rulemaking direction $300-400 million Funding will be needed over the next 100 years Cannot be resolved by regulatory means 5

6. Suggested Recommendation(s) to the Legislature 1. The Legislature should consider the possibility of establishing a state-wide pooled financial assurance mechanism (pooled fund) to address the projected $300-400 million residual financial exposure for postclosure maintenance and corrective action The Legislature may also want to size the pooled fund to account for extraordinary corrective actions 1. The Legislature should consider the possibility of establishing a state-wide pooled financial assurance mechanism (pooled fund) to address the projected $300-400 million residual financial exposure for postclosure maintenance and corrective action The Legislature may also want to size the pooled fund to account for extraordinary corrective actions 6

7. Suggested Recommendation(s) to the Legislature The Pooled Fund should be raised over the 100 year period of its use and utilized for the postclosure maintenance and corrective action needs of solid waste landfills for which owner/operators have defaulted 7

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