PRINTER'S NO. 2456
No. 1911 Session of 1989
INTRODUCED BY BROUJOS, NOYE, BORTNER, MAINE, BATTISTO, SAURMAN,
MORRIS, KUKOVICH, DEMPSEY, HALUSKA, MERRY, BURD, CORRIGAN,
MELIO, BILLOW, TIGUE, J. H. CLARK, NAILOR, PESCI, KAISER,
COLE AND VAN HORNE, SEPTEMBER 27, 1989
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, SEPTEMBER 27, 1989
AN ACT
1 Amending the act of July 7, 1980 (P.L.380, No.97), entitled "An
2 act providing for the planning and regulation of solid waste
3 storage, collection, transportation, processing, treatment,
4 and disposal; requiring municipalities to submit plans for
5 municipal waste management systems in their jurisdictions;
6 authorizing grants to municipalities; providing regulation of
7 the management of municipal, residual and hazardous waste;
8 requiring permits for operating hazardous waste and solid
9 waste storage, processing, treatment, and disposal
10 facilities; and licenses for transportation of hazardous
11 waste; imposing duties on persons and municipalities;
12 granting powers to municipalities; authorizing the
13 Environmental Quality Board and the Department of
14 Environmental Resources to adopt rules, regulations,
15 standards and procedures; granting powers to and imposing
16 duties upon county health departments; providing remedies;
17 prescribing penalties; and establishing a fund," providing
18 that no bond shall be required as a condition for issuance of
19 a permit or license to a municipality or a municipal
20 authority.
21 The General Assembly of the Commonwealth of Pennsylvania
22 hereby enacts as follows:
23 Section 1. Section 505(a) and (e) of the act of July 7, 1980
24 (P.L.380, No.97), known as the Solid Waste Management Act, are
25 amended to read:
26 Section 505. Bonds.
1 (a) [With the exception of municipalities operating
2 landfills solely for municipal waste not classified hazardous]
3 Except when the operator is a municipality or a municipal
4 authority, prior to the commencement of operations, the operator
5 of a municipal or residual waste processing or disposal facility
6 or of a hazardous waste storage, treatment or disposal facility
7 for which a permit is required by this section shall file with
8 the department a bond for the land affected by such facility on
9 a form prescribed and furnished by the department. Such bond
10 shall be payable to the Commonwealth and conditioned so that the
11 operator shall comply with the requirements of this act, the act
12 of June 22, 1937 (P.L.1987, No.394), known as "The Clean Streams
13 Law," the act of May 31, 1945 (P.L.1198, No.418), known as the
14 "Surface Mining Conservation and Reclamation Act," the act of
15 January 8, 1960 (1959 P.L.2119, No.787), known as the "Air
16 Pollution Control Act," and the act of November 26, 1978
17 (P.L.1375, No.325), known as the "Dam Safety and Encroachments
18 Act." The department may require additional bond amounts for the
19 permitted areas should such an increase be determined by the
20 department to be necessary to meet the requirements of this act.
21 The amount of the bond required shall be in an amount determined
22 by the secretary based upon the total estimated cost to the
23 Commonwealth of completing final closure according to the permit
24 granted to such facility and such measures as are necessary to
25 prevent adverse effects upon the environment; such measures
26 include but are not limited to satisfactory monitoring, post-
27 closure care, and remedial measures. The bond amount shall
28 reflect the additional cost to the Commonwealth which may be
29 entailed by being required to bring personnel and equipment to
30 the site. All permits shall be bonded for at least $10,000.
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1 Liability under such bond shall be for the duration of the
2 operation, and for a period of up to ten full years after final
3 closure of the permit site. Such bond shall be executed by the
4 operator and a corporate surety licensed to do business in the
5 Commonwealth and approved by the secretary: Provided, however,
6 That the operator may elect to deposit cash, certificates of
7 deposit, automatically renewable irrevocable letters of credit
8 which are terminable only upon 90 days written notice to the
9 operator and the department, or negotiable bonds of the United
10 States Government or the Commonwealth of Pennsylvania, the
11 Pennsylvania Turnpike Commission, the General State Authority,
12 the State Public School Building Authority, or any municipality
13 within the Commonwealth, with the department in lieu of a
14 corporate surety. The cash amount of such deposit, irrevocable
15 letters of credit or market value of such securities shall be
16 equal at least to the sum of the bond. The secretary shall, upon
17 receipt of any such deposit of cash or negotiable bonds,
18 immediately place the same with the State Treasurer, whose duty
19 it shall be to receive and hold the same in the name of the
20 Commonwealth, in trust, for the purposes for which such deposit
21 is made. The State Treasurer shall at all times be responsible
22 for the custody and safekeeping of such deposits. The operator
23 making the deposit shall be entitled from time to time to demand
24 and receive from the State Treasurer, on the written order of
25 the secretary, the whole or any portion of any collateral so
26 deposited, upon depositing with him, in lieu thereof, other
27 collateral of the classes herein specified having a market value
28 at least equal to the sum of the bond, also to demand, receive
29 and recover the interest and income from said negotiable bonds
30 as the same becomes due and payable: Provided, however, That
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1 where negotiable bonds, deposited as aforesaid, mature or are
2 called, the State Treasurer, at the request of the permittee,
3 shall convert such negotiable bonds into such other negotiable
4 bonds of the classes herein specified as may be designated by
5 the permittee: And provided further, That where notice of intent
6 to terminate a letter of credit is given, the department shall,
7 after 30 days written notice to the operator and in the absence
8 of a replacement of such letter of credit within such 30-day
9 period by the operator with other acceptable bond guarantees
10 provided herein, draw upon and convert such letter of credit
11 into cash and hold it as a collateral bond guarantee.
12 * * *
13 (e) Prior to the issuance of any license for the
14 transportation of hazardous waste to any applicant other than a
15 municipality or municipal authority, the applicant for a license
16 shall file with the department a collateral bond on a form
17 prescribed and furnished by the department. Such bond shall be
18 payable to the Commonwealth and conditioned upon compliance by
19 the licensee with every requirement of this act, rule and
20 regulation of the department, order of the department and term
21 and condition of the license. The amount of the bond required
22 shall be in an amount determined by the secretary, but in an
23 amount no less than $10,000. The department may require
24 additional bond amounts if the department determines such
25 additional amounts are necessary to guarantee compliance with
26 this act. The licensee may elect to deposit cash or
27 automatically renewable irrevocable letters of credit which are
28 terminable only upon 90 days written notice to the operator and
29 the department, or negotiable bonds of the United States
30 Government or the Commonwealth of Pennsylvania, the Pennsylvania
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1 Turnpike Commission, the General State Authority, the State
2 Public School Building Authority, or any municipality within the
3 Commonwealth. No corporate surety bond is authorized by this
4 subsection. The cash amount of such deposit, irrevocable letters
5 of credit, or market value of such securities shall be equal at
6 least to the sum of the bond. The secretary shall, upon receipt
7 of any such deposit of cash or negotiable bonds, immediately
8 place the same with the State Treasurer, whose duty it shall be
9 to receive and hold the same in the name of the Commonwealth, in
10 trust, for the purposes for which such deposit is made. The
11 State Treasurer shall at all times be responsible for the
12 custody and safekeeping of such deposits. The licensee making
13 the deposit shall be entitled from time to time to demand and
14 receive from the State Treasurer, on the written order of the
15 secretary, the whole or any portion of any collateral so
16 deposited, upon depositing with him, in lieu thereof, other
17 collateral of the classes herein specified having a market value
18 at least equal to the sum of the bond, also to demand, receive
19 and recover the interest and income from said negotiable bonds
20 as the same becomes due and payable: Provided, however, That
21 where negotiable bonds, deposited as aforesaid, mature or are
22 called, the State Treasurer, at the request of the licensee,
23 shall convert such negotiable bonds into such other negotiable
24 bonds of the classes herein specified as may be designated by
25 the licensee: And provided further, That where notice of intent
26 to terminate a letter of credit is given, the department shall,
27 after 30 days written notice to the licensee and in the absence
28 of a replacement of such letter of credit within such 30-day
29 period by the licensee with other acceptable bond guarantees
30 provided herein, draw upon and convert such letter of credit
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1 into cash and hold it as a collateral bond guarantee. Liability
2 under such bond shall be for the duration of the license and for
3 a period of one year after the expiration of the license.
4 Section 2. This act shall take effect immediately.
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