2007 California Public Resources Code Chapter 2.6. Landfill Closure Loan Program

CA Codes (prc:48200-48207)

48200.  The Legislature hereby finds that some solid waste landfill
operators, particularly those of older-technology, unlined landfills
located in rural areas, want to pursue early landfill closure as it
is not economically feasible to upgrade their landfills to current
environmental design standards, even though there may be significant
landfill capacity remaining.  The Legislature declares that it is
necessary to establish a financial assistance program to assist these
operators in early closure of their landfills.



48201.  For the purposes of this chapter,   "program" means the
Landfill Closure Loan Program.



48202.  (a) The Legislature hereby establishes the Landfill Closure
Loan Program to provide financial assistance to operators of
older-technology, unlined landfills, who want to pursue early
landfill closure in order to mitigate potential environmental
problems.
   (b) The board may expend funds from the Integrated Waste
Management Fund, upon appropriation by the Legislature, to make loans
to operators of solid waste landfills to assist them in the early
closure of their landfills.  In granting loans, the board shall give
highest priority to operators of small, rural, unlined landfills
that, if not closed, would represent the most serious potential
threat to the public health and safety, or the environment, in the
opinion of the board.
   (c) The board may expend money in the fund, upon appropriation by
the Legislature, for program administration.
   (d) All funds received from the operation of the program,
including, but not limited to, principal repayments, recovery of
collection costs, income earned on any asset recovered pursuant to
loan default, and funds collected through foreclosure actions, shall
be deposited in the fund and may be used for purposes authorized by
this chapter.
   (e) The board may set aside moneys in the fund for the purposes of
paying costs necessary to protect the state's position as a
lender-creditor.  These costs shall include, but not be limited to,
foreclosure expenses, environmental reports, auction fees, title
searches, appraisals, real estate brokerage fees, attorney fees,
mortgage payments, insurance payments, utility costs, repair costs,
removal and storage costs for repossessed equipment and inventory,
and expenditures to purchase a senior lien in foreclosure or
bankruptcy proceedings.



48204.  Loans made pursuant to this chapter shall be subject to all
of the following requirements:
   (a) The terms of any approved loan shall be specified in a loan
agreement between the borrower and the board.  All money received as
repayment on a loan shall be deposited in the fund.
   (b) The board shall approve only those loan applications that
demonstrate the applicant's financial ability to repay the loan.
   (c) Loans may be made only to applicants who are using trust funds
or enterprise funds as financial assurance mechanisms to finance
landfill closure and postclosure maintenance and who are in
compliance with financial assurance requirements for landfill closure
and post-closure maintenance.
   (d) The term of any loan made pursuant to this section shall be
not more than 10 years.
   (e) The interest rate of any loan made pursuant to this section
may be zero percent.
   (f) The board may not finance more than five hundred thousand
dollars (0,000) for each landfill closure project.
   (g) The Department of Finance may audit the expenditure of the
proceeds of any loan made pursuant to this chapter.



48205.  The board, the California Pollution Control Financing
Authority, the Treasurer, and other appropriate state officers and
agencies shall, to the extent feasible and as appropriate, coordinate
activities that will leverage financing for the program and
encourage joint activities to protect the public health and the
environment.



48206.  The board shall adopt regulations to implement this chapter.



48207.  (a) (1) Except as provided in paragraph (2), this chapter
shall become inoperative on July 1, 2012, and as of January 1, 2013,
is repealed, unless a later enacted statute, that becomes effective
on or before January 1, 2013, deletes or extends the dates when it
becomes inoperative and is repealed.
   (2) The repeal of this chapter pursuant to paragraph (1) does not
extinguish any loan obligation or the authority of the state to
pursue appropriate action for the collection of a loan.