PRINTER'S NO. 972
No. 854 Session of 1975
INTRODUCED BY MESSRS. LAUDADIO, RUGGIERO, DeMEDIO, BENNETT,
GREEN, WARGO, GREENFIELD, LETTERMAN, GEORGE, PETRARCA,
GALLEN, MORRIS, HASKELL, McCLATCHY, FISHER, COWELL,
M. E. MILLER, KNEPPER, MRKONIC, CAPUTO, ARTHURS, LEVI,
McCALL, W. W. WILT, YAHNER, MRS. GILLETTE, MESSRS. REED,
VALICENTI, R. W. WILT, GRING, SHELTON, CIMINI, TURNER,
MRS. FAWCETT, MESSRS. FINEMAN, DOMBROWSKI, KOWALYSHYN,
TRELLO, BELLOMINI, STOUT, WANSACZ, LAUGHLIN, MYERS, IRVIS,
BRUNNER, MANDERINO, ENGLEHART, GRIECO, MRS. CRAWFORD,
MR. GALLAGHER, MRS. KERNICK, MESSRS. SHELHAMER, ROMANELLI,
ABRAHAM, MENHORN, MISCEVICH, RENWICK, DeVERTER, S. E. HAYES,
LYNCH, WILSON, PRENDERGAST, BITTLE, RYAN, SCHWEDER, MUSTO,
CESSAR, PARKER, L. E. SMITH, HAMMOCK, RICHARDSON, MILLIRON,
PERRY, DREIBELBIS, O'DONNELL, SULLIVAN, FISCHER, HALVERSON,
MANMILLER, DORR, SHUPNIK, SALOOM, DININNI, HOPKINS, NOYE,
MILANOVICH, PRATT, COLE, LEDERER, ROSS, GIAMMARCO, TAYOUN,
JOHNSON, GEISLER, M. M. MULLEN, GOODMAN, GLEESON, VANN,
DiDONATO, LINCOLN, McINTYRE, BERSON, ZELLER, PIEVSKY,
RAPPAPORT, RHODES, SCIRICA, MISS SIRIANNI, MESSRS. WHELAN,
WAGNER, BARBER, MRS. TOLL, MESSRS. OLIVER, RIEGER, BONETTO,
MRS. KELLY, MESSRS. D. S. HAYES, DOYLE, GILLESPIE, O'KEEFE,
ZORD, TADDONIO, KUSSE, FEE, McCUE, COHEN, SCHEAFFER, SCHMITT,
SHANE, DIETZ, ANDERSON, SHUMAN, KELLY, KOLTER, GEESEY,
O'CONNELL, BERLIN, BUTERA, A. K. HUTCHINSON, ZWIKL, DAVIS,
ITKIN, NOVAK, DiCARLO AND O'BRIEN, MARCH 19, 1975
REFERRED TO COMMITTEE ON CONSERVATION, MARCH 20, 1975
AN ACT
1 Amending the act of July 20, 1974 (No.198), entitled "An act
2 establishing the Pennsylvania Solid Waste - Resource Recovery
3 Development Fund, authorizing the Department of Environmental
4 Resources to administer the fund and carry out the purposes
5 of the act, to adopt rules, regulations, and procedures;
6 imposing duties on loan applicants and recipients; imposing
7 powers and duties on the Environmental Hearing Board and the
8 Environmental Quality Board; providing remedies; prescribing
9 penalties; and making an appropriation," providing for
10 demonstration projects; providing for grants; imposing powers
11 and duties on the Department of Environmental Resources and
1 the Environmental Quality Board and making an appropriation.
2 The General Assembly of the Commonwealth of Pennsylvania
3 hereby enacts as follows:
4 Section 1. The definition of "Construction" in section 3,
5 act of July 20, 1974 (No.198), known as the "Pennsylvania Solid
6 Waste - Resource Recovery Development Act," is amended to read:
7 Section 3. Definitions.--As used in this act:
8 "Construction," with respect to any demonstration or
9 development project means (i) the erection or building of new
10 structures, or the acquisition, replacement, expansion,
11 remodeling, alteration, modernization, or extension of existing
12 structures, but shall not include land costs or interests
13 therein, and (ii) the acquisition and installation of initial
14 equipment of, or required in connection with, new or newly
15 acquired structures or the expanded, remodeled, altered,
16 modernized or extended part of existing structures (excluding
17 trucks and other motor vehicles used in collection of solid
18 waste from residences, commercial establishments, industries and
19 other sources of generation, but including tractors, cranes,
20 trucks, transfer and other machinery necessary for the proper
21 utilization and operation of the facility after completion of
22 the project); and includes engineering design studies, drawings,
23 and specifications and (iii) the inspection and supervision of
24 the process of carrying out the project to completion.
25 Section 2. Section 3 of the act is amended by adding a
26 definition to read:
27 Section 3. Definitions.--As used in this act:
28 * * *
29 "Demonstration project," means a pilot or full scale
30 activity, conducted as a Solid Waste Management System or a
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1 component thereof in a municipality or municipalities designed
2 to show the technical and economic feasibility of a new and
3 improved technique, process or system applicable to a resource
4 recovery project.
5 * * *
6 Section 3. The introductory paragraph and clauses (1), (6),
7 (7), (8) and (11) of section 4 of the act are amended to read:
8 Section 4. Powers and Duties of the Department.--The
9 department is hereby authorized to serve as the administrator of
10 the Pennsylvania Solid Waste - Demonstration Grants-in-Aid Fund
11 and Solid Waste - Resource Recovery Development Fund and shall
12 have and may exercise all powers necessary or appropriate to
13 carry out and effectuate the purposes of this act, including the
14 following powers, in addition to others herein granted:
15 (1) To make, upon proper application of solid waste -
16 resource recovery agencies, loans to such development agencies
17 of moneys held in the Solid Waste - Resource Recovery
18 Development Fund for development projects and to provide for the
19 repayment and redeposit of such allocations and loans in the
20 manner hereinafter provided, and upon proper application make
21 grants to such development agencies of moneys held in the Solid
22 Waste - Demonstration Fund for demonstration projects, and to
23 establish the priority of such loans and grants.
24 * * *
25 (6) To take title by foreclosure or by the exercise of
26 applicable conditions of the grant award contract to any
27 demonstration or development project where such acquisition is
28 necessary to protect any grant or loan previously made therefore
29 by the department and to pay all costs arising out of such
30 foreclosure and acquisition from moneys held in the [fund]
19750H0854B0972 - 3 -
1 Development Fund or Demonstration Fund, whichever is applicable
2 and to sell, transfer and convey any such demonstration project
3 or development project or components thereof to any responsible
4 buyer; in the event such sale, transfer and conveyance cannot be
5 effected with reasonable promptness, the department may, in
6 order to minimize financial losses and sustain employment, lease
7 such demonstration project or development project to a
8 responsible tenant or tenants; the department shall not lease
9 demonstration projects or development projects except under the
10 conditions and for the purpose cited in this section.
11 (7) To purchase first mortgages and to make payments on
12 first mortgages on any demonstration project or development
13 project where such purchase or payment is necessary to protect
14 any grant or loan previously made therefore by the department,
15 and to sell, transfer, convey and assign any such first
16 mortgage. Moneys so used by the department in the purchase of
17 any first mortgages, or any payments thereon, shall be withdrawn
18 from the [fund] Development Fund or the Demonstration Fund,
19 whichever is applicable, and any moneys derived from the sale of
20 any first mortgages shall be deposited by the department in the
21 appropriate fund.
22 (8) To audit, inspect, and review all books, records, and
23 reports maintained by recipients of grants or loans made
24 pursuant to this act.
25 * * *
26 (11) To issue enforcement orders to grant or loan recipients
27 whose books, records, or reports have not been maintained in the
28 manner required by the department.
29 * * *
30 Section 4. Section 4 of the act is amended by adding a
19750H0854B0972 - 4 -
1 clause to read:
2 Section 4. Powers and Duties of the Department.--The
3 department is hereby authorized to serve as the administrator of
4 the Pennsylvania Solid Waste - Resource Recovery Development
5 Fund and shall have and may exercise all powers necessary or
6 appropriate to carry out and effectuate the purposes of this
7 act, including the following powers, in addition to others
8 herein granted:
9 * * *
10 (16) To establish priorities for grants based on the
11 following guidelines:
12 (i) Whether the project is consistent with State, regional
13 and local planning.
14 (ii) The degree to which the project can be expected to
15 demonstrate results that will have general application to solid
16 waste management problems within the Commonwealth.
17 (iii) Whether plans exist to continue the project as an
18 ongoing service after the demonstration period.
19 (iv) The degree to which project objectives are attainable
20 and measurable within the scope of the project.
21 (v) The projected quantity and quality of material and/or
22 energy recovered.
23 (vi) The projected economic viability of the project.
24 (vii) The possible duplication of other existing or proposed
25 projects.
26 (viii) The degree of improvement to the environment
27 attainable from the project.
28 Section 5. Subsection (a) of section 6 and sections 7 and 8
29 of the act are amended to read:
30 Section 6. Powers and Duties of the Environmental Quality
19750H0854B0972 - 5 -
1 Board.--(a) The Environmental Quality Board shall have the power
2 and its duties shall be to adopt rules and regulations to
3 accomplish the purposes of this act, including but not limited
4 to the setting of a uniform interest rate to be applied to loans
5 administered under this act. Such interest rate shall be
6 [reviewed] established at three percent (3%) annually. [on the
7 anniversary of the effective date of this act, and in no case
8 shall the rate of interest be set at less than the interest rate
9 paid by the Commonwealth on the last general obligation bonds
10 issued prior to the date of such review.]
11 * * *
12 Section 7. Grants and Loans to Development Agencies.--When
13 it has been determined by the department upon application of a
14 Solid Waste or Resource Recovery Development Agency or nonprofit
15 educational institution and hearing thereon in the manner
16 hereinafter provided, that the establishment of a particular
17 demonstration project or development project of such development
18 agency has accomplished or will accomplish the purposes of this
19 act, the department may contract to grant and/or loan such
20 development agency an amount not in excess of the percentage of
21 the cost of such demonstration project or development project,
22 as established or to be established as hereinafter set forth.
23 The department may contract to loan the development agency up
24 to fifty percent (50%) of the cost of a solid waste
25 disposal/processing system or a resource recovery system and
26 grant the development agency up to seventy-five percent (75%) of
27 the cost of a demonstration project, but not to exceed twenty-
28 five percent (25%) of the grant appropriation, if it has
29 determined that the agency holds funds or property in the amount
30 of value of five percent (5%) or more of the cost of the
19750H0854B0972 - 6 -
1 development project or demonstration project, which funds or
2 property shall be applied to the establishment of such project:
3 Provided, That development agencies applying for loans for solid
4 waste disposal/processing systems shall demonstrate to the
5 department through engineering, economic, and other appropriate
6 studies that solid waste generation and recovered materials
7 market commitments are insufficient or unavailable to support a
8 resource recovery system: And further provided, That (1) loans
9 for new solid waste disposal/processing systems shall be made
10 only to municipalities which are or are in counties of the
11 seventh and eighth class and where said systems shall serve a
12 minimum population of ten thousand persons, except in those
13 cases of seventh and eighth class counties where the total
14 population is less than ten thousand persons and in those cases
15 said systems shall serve the total populace of those counties;
16 (2) loans for existing solid waste disposal/processing systems
17 shall be made only to municipalities which are or are in
18 counties of the fifth through eighth classes: Provided, however,
19 That after July 1, 1975 no more than fifty percent (50%) of the
20 available fund can be used in any one year for solid waste
21 disposal/processing systems.
22 In reviewing applications for loans, the department shall
23 consider the amounts of polluting substances treated and/or
24 eliminated, the overall environmental benefits to be accrued as
25 a result of the projects, the amount of population served, and
26 the extent of resource recovery to be included: And, provided
27 further, That no loan shall be granted for a project which does
28 not conform to the requirements of the act of July 31, 1968
29 (P.L.788, No.241), known as the "Pennsylvania Solid Waste
30 Management Act," or a project which would jeopardize the
19750H0854B0972 - 7 -
1 economic stability of existing solid waste disposal/processing
2 or resource recovery systems already approved by the department
3 as part of officially adopted solid waste management plans, and
4 provided no grant or loan shall be made to any municipality
5 which is not a part of a department approved solid waste
6 management plan.
7 Any such loan of the department shall be for [ten] up to
8 thirty years and shall bear interest at [such rate as shall be
9 determined by the Environmental Quality Board] the established
10 rate and shall be secured by bond or note of the development
11 agency and by mortgage on the development project for which such
12 loan was made, such mortgage to be second and subordinate only
13 to the mortgage securing the first lien obligation issued to
14 secure the commitment of funds from independent and responsible
15 sources and used in the financing of the development project.
16 Any such grants of the department made for a demonstration
17 project shall be encumbered for a period not to exceed three
18 years.
19 Moneys so granted or loaned by the department to development
20 agencies shall be withdrawn from the Solid Waste Demonstration
21 Fund or Solid Waste - Resource Recovery Development Fund and
22 paid over to the development agency in such manner as shall be
23 provided and prescribed by the rules and regulations of the
24 department.
25 All payments of interest on said loans and the principal
26 thereof shall be deposited by the department in the fund.
27 [Loan] Grants and loans by the department to a development
28 agency for a demonstration project or development project shall
29 be made only in the manner and to the extent as in this section
30 provided except, however, in those instances wherein an agency
19750H0854B0972 - 8 -
1 of the Federal Government participates in the financing of a
2 demonstration project or development project by loan, grant or
3 otherwise of Federal funds. When any Federal agency does so
4 participate the department may adjust the sequence ratios of
5 financial participation by the development agency, the source of
6 independent funds and the department in such manner as to insure
7 the maximum benefit available to the development agency, the
8 department, or both, by the participation of the Federal agency.
9 Where any Federal agency participating in the financing of a
10 development project is not permitted to take as security for
11 such participation a mortgage the lien of which is junior to the
12 mortgage of the department, the department shall in such
13 instances be authorized to take as security for its loan to the
14 development agency a mortgage junior in lien to that of the
15 Federal agency.
16 Section 8. Requirements of [Loan] Applicants and
17 Recipients.--(a) Prior to the granting or loaning of any funds
18 to a development agency for a [development] project, such agency
19 shall submit to the department [a loan] an application in a form
20 required by the department and containing such information as
21 the department may require.
22 (b) [Loan recipients] Recipients shall maintain accurate
23 fiscal and accounting records of all expenditures incurred and
24 funds received in carrying out a development project pursuant to
25 the provisions of this act.
26 (c) [Loan recipients] Recipients shall apply moneys received
27 from the department under this act only to those purposes and
28 activities authorized by [loan] contract or otherwise approved
29 by the department.
30 Section 6. The act is amended by adding a section to read:
19750H0854B0972 - 9 -
1 Section 9.1. Grant Appropriation; Solid Waste -
2 Demonstration Grants-in-Aid Fund.--The sum of five million
3 dollars ($5,000,000) is hereby appropriated from the Development
4 Fund for use by the department for grants-in-aid when the
5 department in any one year shall determine such moneys are
6 required to carry out the intent and purposes of this act.
7 There is hereby created a special account in the Treasury of
8 the Commonwealth to be known as the "Solid Waste - Demonstration
9 Fund" to which shall be accredited the above provided
10 appropriation to the department.
11 If the department shall determine that moneys held for the
12 credit of this fund are in excess of the amount needed by the
13 department in this or any other fiscal year, such moneys shall
14 be retained in the Development Fund and carried over into the
15 succeeding fiscal year to carry out the purposes of this act.
16 Section 7. This act shall take effect immediately.
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