Amount of Required Coverage/Funding Formulas
To All Operators of Solid Waste Landfills:
Title 27 California Code of Regulations (CCR) section 22225 requires operators to make deposits to their closure, postclosure maintenance, and/or corrective action funds (trust funds or enterprise funds) based on the anniversary date of establishing the fund.
On each anniversary date of establishing the fund, operators are required to increase the minimum fund balance by the amount resulting from the following formulas.
Formula #2 applies to all anniversary dates on or after December 31, 1993.
(Note: If an operator establishes a trust fund or enterprise fund after using one or more alternate acceptable mechanisms, the initial payment into the fund must be at least the amount required if the trust fund or enterprise fund were established initially).
Formula 1. (Cf/Ct X E) = minimum deposit 2. (Cf/Cr X Er) = minimum deposit
Cf is the annual capacity filled. This is the portion of a landfill’s total permitted capacity filled during the following period:
1) from August 18, 1989* until 60 days before the anniversary date of establishing a trust fund or an enterprise fund occurring before August 18, 1990 and
2) from 60 days before any other anniversary date establishing a trust fund or an enterprise fund occurring before the subsequent anniversary date. See the Sample Calculations section.
Ct is the total permitted capacity. This is the capacity approved by the landfill’s permit, including any changes in capacity approved by a new permit or a permit modification; but excluding any capacity filled before August 18, 1989.
E is the current closure, postclosure maintenance, and/or corrective action cost estimate(s). This is the most recent of the estimates prepared according to 27 CCR sections 21820, 21840 and/or section 22101, respectively.
Cr is the remaining permitted capacity. This is the landfill’s total permitted capacity less the cumulative capacity filled at the facility since August 18, 1989.
Er is the remaining closure, postclosure maintenance, and/or corrective action cost estimates to be funded. To calculate the remaining cost estimates to be funded, subtract the current value of the fund from the current closure, postclosure maintenance, and/or corrective action cost estimates.
27 CCR section 22225 requires the balance of the closure and/or postclosure maintenance fund be equal to or greater than the current facility(ies) closure and/or postclosure maintenance cost estimates, when the facility(ies) receives its last shipment of waste. In addition, operators may make only one written request to CalRecycle to change the anniversary date of the fund to coincide with the private company’s or municipality’s fiscal year.
Sample Calculations
(Assumptions: No inflation factor applied, operator does not accelerate deposits, interest not accrued on balance of fund, operator keeps fund current, and annual fill remains constant after 1990.)
Operator establishes trust fund November 1, 1989** (this is anniversary date). 60 days prior to this anniversary date is September 1. Therefore, to calculate the annual deposit the operator uses annual capacity filled from August 18, 1989, to September 1, 1990 (60 days prior to November 1). Subsequent dates for calculating annual capacity are from September 1 to September 1 of the following year.
1990
Cf is 4,000 c.y. filled from August 18, 1989, to September 1, 1990, divided by Ct which is 200,000 c.y., times E which is $1,000,000. Therefore, 4,00/200,000 = .02 and.02 X $1,000,000 = $20,000 is the 1990 deposit.
1991
Cf is 5,000 c.y filled from September 1, 1990, to September 1, 1991, divided by Ct which is 200,000 c.y., times E which is $1,000,000. Therefore, 5,000/200,000 = .025 and .025 X $1,000,000 = $25,000 is the 1991 deposit.
1992 and 1993
Calculated as previously shown.
Formula 2. December 31, 1993, new formula requirements effective.
1994
Cf is 5,000 c.y. filled from September 1, 1993, to September 1, 1994, divided by Cr which is 176,000 c.y. (Note: The capacity remaining (Cr) is determined at the end of the year.), times Er which is $905,000 ($1,000,000 cost estimate minus $95,000 fund balance). Therefore, 5,000/176,000 = .028 and .028 X $905,000 = $25,710 is the 1994 deposit. All subsequent deposits are calculated in this manner.
If this operator wishes to change the anniversary date of establishing the fund to coincide with the company’s fiscal year of July 1, they must make a written request to CalRecycle.
* The date Article 3.5, entitled Financial Responsibility for Closure and Postclosure Maintenance, became effective.
**The anniversary date is the month actual deposits are made.
This information is designed to guide and assist operators of solid waste landfills to comply with state and federal statutory and regulatory financial assurance requirements.
If you have questions regarding this information, contact the Financial Assurances Unit at FAU@CalRecycle.ca.gov