Betsy Madru VP Government and Regulatory Affairs Waste
Betsy Madru, VP Government and Regulatory Affairs Waste Control Specialists 512 -350 -7192 bmadru@valhi. net WCS Business Confidential 1
WCS Current Facilities Byproduct Facility LSA Pad Hazardous Waste Landfill Federal Facility Treatment Federal Byproduct Facilities. Facility Compact Facility Hazardous Waste Landfill Compact Facility Administration Buildings and Treatment Facility WCS Business Confidential 2
Compact Waste Facility Kalmar Stacker WCS Business Confidential 3
Low Level Radioactive Waste (LLRW) Regulation • Texas Commission on Environmental Quality • NRC “Agreement State” Regulates Disposal of LLRW • Texas Department of State Health Services • Transportation of LLRW • Generators of LLRW that are not NRC licensees • Texas Low Level Radioactive Waste Disposal Compact Commission • Federal Interstate Compact – 6 TX Gubernatorial appointees, 2 VT • Preservation of capacity for generators in TX and VT State Energy Conservation Office, Texas Department of Transportation, Texas Division of Emergency Preparedness and Planning also have roles related to radioactive material in Texas WCS Business Confidential 4
Licensed LLW Disposal Capacity • TX Compact Waste Disposal Facility: – 9, 000 cubic feet and 3, 890, 000 curies – TCEQ has taken ownership of Texas Compact Landfill and WCS leases it back for operations • Federal Waste Disposal Facility: – 26, 000 cubic feet and 5, 600, 000 curies total – DOE signed Agreement to take ownership of the Federal Landfill after post-closure • License Term – through September 2024 with provision for 10 year renewals thereafter WCS Business Confidential 5
CWF Capacity • CWF currently in Phase 1 of 8 • Phase 1 expected to hold approx 475, 000 ft 3 of waste – Actual airspace is 4 x that size to accommodate MCC, sand, etc. • To date we have disposed of approximately 112, 635 ft 3 in CWF (Aug 31, 2017) • Phase 2 expected to hold approx 425, 000 ft 3 of waste WCS Business Confidential 6
CWF Volume by Phase Waste Volume (cf) Airspace Volume (cf) Phase 1 475, 000 1, 900, 000 Phase 2 a 425, 000 1, 700, 000 Phase 2 b 850, 000 3, 400, 000 Phase 3 900, 000 3, 600, 000 Phase 4 1, 300, 000 5, 200, 000 Phase 5 950, 000 3, 800, 000 Phase 6 1, 370, 000 5, 480, 000 Phase 7 1, 400, 000 5, 600, 000 Phase 8 1, 750, 000 7, 000 9, 420, 000 37, 680, 000 Total WCS is currently licensed to take 9 m cubic feet of waste. LC 24 requires project-phased schedules be submitted and approved by TCEQ. WCS is currently in phase 1. WCS Business Confidential 7
Operations History – The WCS facility is a unique state-of-the-art facility, and as such it has a high fixed-cost operating and regulatory structure. – WCS’ initial expectations in the CWF for disposal volumes from the industry have never materialized. • In-compact generators have exported to other facilities 40 times more waste than they send for disposal at WCS. • Imported waste volumes are significantly less than anticipated because generators continue to store onsite. WCS Business Confidential 8
CWF Disposal number by year Date Range April 27, 2012 - April 26, 2013 In Compact Volume (ft³) Activity (Ci)* 4, 030 631 Imported Volume (ft³) Activity (Ci)* 13, 158 165, 753 April 27, 2013 - August 31, 2013 1, 134 199 1, 864 5, 484 September 1, 2013 - August 31, 2014 6, 167 1, 211 27, 369 32, 750 September 1, 2014 - August 31, 2015 3, 447 1, 092 27, 034 35, 005 September 1, 2015 - August 31, 2016 3, 950 25, 034 11, 002 73, 379 September 1, 2016 - August 31, 2017 3, 060 658 10, 421 95, 117 21, 787 28, 825 90, 848 407, 488 Overall Total as of August 31, 2017 *Activity as received Numbers rounded to the nearest whole number WCS Business Confidential 9
Overall Total as of August 31, 2017 (ft³) Overall Total as of August 31, 2017 Total Volume 112, 635 Received Licensed 9, 000 volume 112, 635 Total Volume Received Available Volume 8, 887, 365 WCS Business Confidential 10
Overall Total as of August 31, 2017 (decayed Ci) Overall Total as of August 31, 2017 Total Decayed Activity Licensed Activity 317, 252 3, 890, 000 Total Decayed Activity Received Available Activity 3, 572, 748 WCS Business Confidential 11
HB 2662 by Landgraf (TX Legislature 85 R) • Reduced fees • Created an interim Legislative Committee to study: (1) the annual fixed costs incurred by the operator (2) the disposal fees established by the TCEQ (3) the contract review process as carried out by the TCEQ (4) the relationship between the state, party state generators, and operator as it relates to the operation of the compact facility; (5) the contingency plan required under the Compact law (6) the need for and effects of fees and surcharges (7) the cost of a state-run compact facility and the effect a staterun facility would have on rates and generators in compact states (8) any other matters the committee determines are relevant to the compact facility and oversight of the compact facility. WCS Business Confidential 12
Reduction in Texas Disposal Fees • Texas legislation became effective June 15, 2017 that reduces the state fees on waste disposed of at WCS. – Legislation in force until September 1, 2019 • CWF fees for imported LLW are reduced from 31. 25% to 16. 25%. • FWF fees and CWF fees for in-compact LLW are reduced from 10% to 5%. • Reduction has no impact on the price WCS receives, but our CWF customers will see this as a cost reduction. • We expect reduction to increase WCS revenue by 20%. WCS Business Confidential 13
Payments to State and County Waste Control Specialists LLC Summary of Fees Paid CWF (Compact Waste Facility) Disposal Fees (20%) CWF (Compact Waste Facility) Disposal Fees (10%) CWF (Compact Waste Facility) Disposal Fees (5%) FWF (Federal Waste Facility) Disposal Fees (5%) Texas Compact Commission Fees (1. 25%) Process and Storage Waste Fees > 1 Year (20%) TCEQ Total $ $ $ $ 31, 915, 336 39, 750 8, 380, 279 1, 233, 551 1, 940, 256 2, 449, 747 45, 958, 919 CWF (Compact Waste Facility) Disposal Fees (5%) FWF (Federal Waste Facility) Disposal Fees (5%) Andrews County Total $ $ $ 8, 403, 319 1, 247, 212 9, 650, 531 $ 55, 609, 451 WCS Business Confidential 14
Questions? 12 -8 -16 15
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