Shoosmith's $58M bill looms in 2027 with no funding plan
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Aerial view of Shoosmith Landfill off Iron Bridge Road. Photo: Courtesy of the James River Association
Virginia faces an estimated $58 million in costs next fiscal year to stabilize Chesterfield's troubled Shoosmith Landfill, as state officials warn funding could run out by June.
Why it matters: The bankrupt landfill has become a costly environmental cleanup challenge, with taxpayers potentially on the hook for decades of expenses and no finalized plan to cover future costs.
Driving the news: A new state report obtained by Axios and sent to lawmakers this week evaluates how much Virginia and Chesterfield should each contribute to the cleanup.
- But it stops short of recommending how the two should split the costs, as lawmakers requested.
By the numbers: The report projects $58.2 million in costs for fiscal year 2028, including:
- $19.1 million for operations, maintenance and environmental monitoring.
- $39.1 million for infrastructure improvements, including a system to treat contaminated landfill liquids called leachate.
The catch: The Virginia Department of Environmental Quality expects to exhaust available funding by June after unforeseen expenses exceeded budget estimates.
- The landfill's total 30-year costs are projected to be roughly $173 million.
Meanwhile: The state says in the report that Chesterfield hasn't indicated a willingness to directly fund the cleanup, arguing the county views Shoosmith as a regional facility.
- Chesterfield told Axios it had just learned of the report and needed to review it before commenting.
- State agencies didn't identify any other available funding sources beyond bond money and state appropriations. Neither did the EPA.
Yes, but: The report outlines other possible ways to cover future costs, such as:
- Raising Virginia's landfill tipping fee, which is 17 cents per ton. No new rate was proposed.
- Redirecting some of the state's $100 million environmental monitoring allocation toward Shoosmith's cleanup and a leachate treatment system.
Between the lines: The report was due Oct. 5, over a month before its submission.
- David Bulova, Virginia's secretary of natural and historic resources, suggested to Axios that the criminal investigation into Shoosmith's former owners, which overlapped with the report's deadline, could have contributed to the delay.
- Bulova said any upcoming budget actions would be released along with Gov. Spanberger's budget proposal Dec. 17.
What we're watching: Former owners Fred Nichols and Lawrence McGee were indicted Sept. 21 over their operation of Shoosmith and released on bond Oct. 7.
- Separately, a bankruptcy trustee is investigating nearly $30 million in alleged transfers from Shoosmith-related companies before bankruptcy, with any recovered money possibly helping fund the cleanup, per WTVR.
- The former owners deny allegations of wrongdoing and are due back in court Monday.