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F I S C A L I M P A C T R E P O R T

SPONSOR Sanchez, M.

DATE TYPED 2/24/05

HB

SHORT TITLE Valencia County Landfill Closure Study

SB 964

ANALYST Hanika-Ortiz

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$20.0

Recurring General Fund

SOURCES OF INFORMATION

LFC Files

Responses Received From

New Mexico Environment Department (NMED)

Department of Finance and Administration (DFA)

SUMMARY

Synopsis of Bill

SB 964 appropriates $20 thousand from the general fund to the NMED in FY06 to contract for

an engineering study for a landfill closure in Valencia County.

Significant Issues

DFA reports in FY03 Valencia County paid an engineering company for a closure plan that cov-

ered a county-operated landfill. The plan was filed with NMED and called for filling in the two

cell holes with clean dirt. In the interim, the county has experienced significant financial prob-

lems and has not been able to perform the prescribed work. NMED, in turn, fined the county a

sum of $980,000 for failure to close the site properly and timely. NMED has indicated that they

would be willing to rescind the fine if closure work is performed by September 2005.

The county has since identified a modified closure plan that meets state regulation and provides a

significant cost savings of $850 thousand. The original closure cost was estimated at $1.1 million

and the modified closure plan is estimated at $250 thousand. Rather than using clean dirt to fill

the cells, the modified plan would re-grade the surface to drain excess water to a lined-retention

pond for solar evaporation.

Senate Bill 964- Page 2

PERFORMANCE IMPLICATIONS

The NMED reports that Valencia County has a history of solid waste compliance issues. The

more serious violations at the County’s closed landfill include: multiple incidents of illegal dis-

posal of solid waste; failure to monitor methane gas; failure to fence the property; failure to con-

trol water run-on and run-off; failure to maintain the roadway; failure to submit an approvable

closure and post-closure care plan; failure to maintain intermediate cover; illegal disposal of spe-

cial waste (asbestos); and failure to monitor ground water. Violations at the county-owned and

operated Conejo Transfer Station include: multiple incidents of open burning of solid waste; il-

legal disposal of solid waste; failure to remove recyclable materials; failure to obtain a solid

waste facility permit; failure to provide fire extinguishing equipment; failure to control litter;

failure to remove yard waste in a timely manner; and failure to provide a separate storage area

for bulky waste (tires and yard waste). Ground water contamination has been detected at the

landfill site. Contaminants include nitrogen, toluene, methylene chloride, iron, manganese, sul-

fate, boron, and tetrachloroethene (PCE).

FISCAL IMPLICATIONS

The appropriation of $20 thousand contained in this bill is a recurring expense to the general

fund. Any unexpended or unencumbered balance remaining at the end of FY06 shall revert to the

general fund.

The County is in need of $20 thousand immediately to contract with an engineering company to

modify the original closure plan filed with NMED. The county could then proceed to properly

close the landfill at a lower cost than was originally anticipated. Valencia County officials indi-

cate they would have sufficient funds to perform the modified closure work later in the year.

TECHNICAL ISSUES

NMED currently has an administrative compliance order (ACO) pending with Valencia County.

The ACO requires that Valencia County submit a revised Closure / Post-Closure Care Plan. An

engineering study is not specific enough to meet the regulatory requirements by the County.

Therefore, a Closure / Post-Closure Care Plan in accordance with the New Mexico Solid Waste

Management Regulations (20.9.1 NMAC) should be substituted for an engineering study in the

proposed Act.

Time is of the essence, so an emergency clause is recommended.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL.

Valencia County could be fined $980 thousand for the untimely closure of a county-operated

landfill.

AMENDMENTS

The NMED recommends that “a Closure / Post-Closure Care Plan in accordance with the New

Mexico Solid Waste Management Regulations (20.9.1 NMAC)” be substituted for an “an engi-

neering study”, on page 1, line 18.

AHO/lg