c&dd facility closure/post-closure cost estimation & the role of environmental covenants

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C&DD Facility Closure/Post- Closure Cost Estimation & the role of Environmental Covenants Ohio’s Solid Waste and C&DD Program Annual Meeting May 9 th , 2013 Ohio’s Solid Waste and C&DD Program Annual Meeting May 9, 2013 C&DD Facility Closure Cost Estimates Jeremy Carroll and Annette DeHavilland

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Ohio’s Solid Waste and C&DD Program Annual Meeting May 9, 2013. C&DD Facility Closure/Post-Closure Cost Estimation & the role of Environmental Covenants. C&DD Facility Closure Cost Estimates Jeremy Carroll and Annette DeHavilland. - PowerPoint PPT Presentation

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Page 1: C&DD Facility Closure/Post-Closure Cost Estimation & the role of Environmental Covenants

C&DD Facility Closure/Post-Closure Cost Estimation & the

role of Environmental CovenantsOhio’s Solid Waste and C&DD

Program Annual MeetingMay 9th, 2013

Ohio’s Solid Waste and C&DD Program

Annual MeetingMay 9, 2013

C&DD Facility Closure Cost EstimatesJeremy Carroll and Annette DeHavilland

Page 2: C&DD Facility Closure/Post-Closure Cost Estimation & the role of Environmental Covenants

Background• New C&DD FA Rules (August 2012)– OAC 3745-400-13 (closure) & 400-18 (post-closure)– Itemized written estimate– Third party costs– For closure, not less than $13,000/acre

• Resources (http://epa.ohio.gov/dmwm/Home/CDD.aspx)– C&DD FACE Tool (Spreadsheet)– Recorded Training Sessions– AnswerPlace

Page 3: C&DD Facility Closure/Post-Closure Cost Estimation & the role of Environmental Covenants

Env. Covenants & C&DD• How to account for “pre-purchased” soil?– Capping soil is typically biggest expense of closure– “A bird in the hand…”

• Uniform Environmental Covenants Act (UECA)– ORC §§ 5301.80 to 5301.92– Legally binding document, recorded with the deed

“Runs-with-the-land”– OAC 3745-400-13: allows for “an alternate option”

Page 4: C&DD Facility Closure/Post-Closure Cost Estimation & the role of Environmental Covenants

Why use an EC?• Attached to deed• Subordinates other interests• Right of access• Right to use soil• Statutorily-created, legal mechanism

Can reduce the cost estimate by the amount of qualified soil covered under the EC.

Page 5: C&DD Facility Closure/Post-Closure Cost Estimation & the role of Environmental Covenants

Why use an EC, part 2…• Can soil be secured through license T&Cs?– Not really, can’t provide assurances than an EC provides

• Can the license be approved without EC being issued?– Not if an EC is being used to justify lower cost estimate– Could issue license based on “spot-market” soil costs

• What about other landfills (MSW)?– Ohio EPA will be implementing similar approach for these sites in the

future

Page 6: C&DD Facility Closure/Post-Closure Cost Estimation & the role of Environmental Covenants

Key Components of an EC• Legal Property Description (survey)

– Also need deed & title search (40 years)• Owners & Holders• Activity & Use Restrictions• Property Access, Right to Use Soil• Subordination of Interests• Breach of EC• Recordation

– 30 days after final signature

Page 7: C&DD Facility Closure/Post-Closure Cost Estimation & the role of Environmental Covenants

LA Role in EC Review/Process• When reviewing FACE information…– Direct facilities to use template EC– Review soil qualification data (including volume)– Need legal property description & title search– Visit site Send draft EC & summary letter to Ohio EPA (J. Carroll)

• Existing EC’s…– Confirm property is still in compliance w/ EC– Adjust FA as appropriate

Page 8: C&DD Facility Closure/Post-Closure Cost Estimation & the role of Environmental Covenants

Available Resources• AnswerPlace FAQs

http://ohioepa.custhelp.com/app/answers/list/c/8

• C&DD Documents & Recorded Trainingshttp://epa.ohio.gov/dmwm/Home/CDD.aspx

• Additional web-based training in July/August

Page 9: C&DD Facility Closure/Post-Closure Cost Estimation & the role of Environmental Covenants

Contact InfoJeremy Carroll, Manager - Engineering,

Remediation and Authorizations Section, DMWM [email protected] DeHavilland, Lead [email protected]