Regular Session 2015-2016 House Bill 1712 P.N. 2772

PRIOR PRINTER'S NO. 2580

PRINTER'S NO. 2772

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1712

Session of

2015

INTRODUCED BY R. BROWN, BOBACK, D. COSTA, HEFFLEY, MAJOR,

MILLARD, D. PARKER, PICKETT, TALLMAN, WATSON, GILLEN,

CARROLL, DUSH, ZIMMERMAN, ORTITAY, TOPPER, MOUL, M. K. KELLER

AND JOZWIAK, NOVEMBER 30, 2015

AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES,

JANUARY 27, 2016

AN ACT

Establishing the Private Dam Financial Assurance Program and the

Private Dam Financial Assurance Fund.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Short title.

This act shall be known and may be cited as the Private Dam

Financial Assurance Program Act.

Section 2. Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"COMMON INTEREST COMMUNITY." INCLUDES A COOPERATIVE,

CONDOMINIUM AND PLANNED COMMUNITY WHERE AN INDIVIDUAL BY VIRTUE

OF OWNERSHIP INTEREST IN ANY PORTION OF REAL ESTATE IS OR MAY

BECOME OBLIGATED BY COVENANT, EASEMENT OR AGREEMENT IMPOSED UPON

THE OWNER'S INTEREST TO PAY ANY AMOUNT FOR REAL PROPERTY TAXES,

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INSURANCE, MAINTENANCE, REPAIR, IMPROVEMENT, MANAGEMENT,

ADMINISTRATION OR REGULATION OF ANY PART OF THE REAL ESTATE

OTHER THAN THE PORTION OR INTEREST OWNED SOLELY BY THE

INDIVIDUAL.

"Community association." Any person or incorporated

community under 68 Pa.C.S. Subparts SUBPTS. B (relating to

condominiums), C (relating to cooperatives) and D (relating to

planned communities) OR COMMON INTEREST COMMUNITY.

"Department." The Department of Community and Economic

Development of the Commonwealth.

"Eligible cost." Any cost to be incurred by an owner

enrolled in the program for maintenance of and repairs to THE

MAINTENANCE, REPAIR, REHABILITATION OR PERMANENT BREACH OF the

owner's dam. The term includes CONSTRUCTION ACTIVITIES,

engineering fees, demolition, excavation, reclamation and

related costs.

"Fund." The Private Dam Financial Assurance Fund established

under section 6.

"Owner." A person or community association that owns a

regulated dam in this Commonwealth. The term does not include an

owner of a commercial hydroelectric power generation facility.

WHO OWNS, CONTROLS, OPERATES, MAINTAINS OR MANAGES A REGULATED

PRIVATE DAM IN THIS COMMONWEALTH.

"Person." Includes a natural person, partnership,

association or corporation., COMMUNITY ASSOCIATION OR

CORPORATION. THE TERM DOES NOT INCLUDE AN AGENCY OF THE FEDERAL,

STATE, COUNTY OR MUNICIPAL GOVERNMENT OR AN INTERSTATE

GOVERNMENT.

"Program." The Private Dam Financial Assurance Program

established under section 3.

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"REGULATED PRIVATE DAM." A PRIVATELY OWNED DAM SUBJECT TO

THE REQUIREMENTS OF SECTION 11 OF THE ACT OF NOVEMBER 26, 1978

(P.L.1375, NO.325), KNOWN AS THE DAM SAFETY AND ENCROACHMENTS

ACT.

Section 3. Private Dam Financial Assurance Program.

(a) Establishment.--The department, in consultation with the

Department of Environmental Protection, is authorized to

establish the Private Dam Financial Assurance Program to provide

financial assurance for owners to assist in meeting any

financial obligations under ASSISTANCE TO OWNERS OF REGULATED

PRIVATE DAMS TO MEET ANY PROOF OF FINANCIAL RESPONSIBILITY

REQUIREMENTS PROMULGATED PURSUANT TO SECTION 11 OF the act of

November 26, 1978 (P.L.1375, No.325), known as the Dam Safety

and Encroachments Act, and any regulations promulgated under

that act.

(b) Financial responsibility.--An owner that is enrolled in

the program is deemed to have met all financial obligations for

the owner's dam under the Dam Safety and Encroachments Act and

any regulations promulgated under that act. PROOF OF FINANCIAL

RESPONSIBILITY REQUIREMENTS PROMULGATED PURSUANT TO SECTION 11

OF THE DAM SAFETY AND ENCROACHMENTS ACT FOR THE OWNER'S DAM.

program shall be made available to owners. To participate in the

program, an owner must:

(1) Be in compliance with the Operation and Maintenance

Manual of the Department of Environmental Protection.

(2) Pay a one-time registration fee of $1,000 per dam.

(3) Have a current approved emergency action plan

required by the Army Corps of Engineers and administered by

the Department of Environmental Protection, in conjunction

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with the Pennsylvania Emergency Management Agency.

(4) Pay an annual fee equal to 1% of the bond amount

required by the Department of Environmental Protection under

the Dam Safety and Encroachments Act and any regulations

promulgated under that act. AN OWNER PROVIDED THAT THE OWNER:

(1) DEMONSTRATES COMPLIANCE WITH THE DAM SAFETY AND

ENCROACHMENTS ACT AND THE REGULATIONS PROMULGATED UNDER THAT

ACT, AS DETERMINED BY THE DEPARTMENT OF ENVIRONMENTAL

PROTECTION, INCLUDING ANNUAL INSPECTION REPORTING, PAYMENT OF

REGISTRATION FEES AND COMPLIANCE WITH AN APPROVED EMERGENCY

ACTION PLAN.

(2) PAYS A ONE-TIME PROGRAM ENROLLMENT FEE OF $1,000 PER

DAM TO THE FUND.

(3) PAYS AN ANNUAL FEE TO THE FUND IN AN AMOUNT EQUAL TO

1% OF THE BOND AMOUNT REQUIRED BY THE DEPARTMENT OF

ENVIRONMENTAL PROTECTION UNDER PROOF OF FINANCIAL

RESPONSIBILITY REQUIREMENTS PROMULGATED PURSUANT TO SECTION

11 OF THE DAM SAFETY AND ENCROACHMENTS ACT.

(d) Application PROGRAM APPLICATION.--Owners seeking

assurance under this act shall submit an MUST SUBMIT A COMPLETE

PROGRAM application on forms provided by the department. THE

DEPARTMENT SHALL DEVELOP THE APPLICATION FORM IN CONSULTATION

WITH THE DEPARTMENT OF ENVIRONMENTAL PROTECTION. THE DEPARTMENT

SHALL CONSULT WITH THE DEPARTMENT OF ENVIRONMENTAL PROTECTION TO

DETERMINE OWNER ELIGIBILITY UNDER THIS ACT.

Section 4. Revolving loan program.

(a) Establishment.--The department, in consultation with the

Department of Environmental Protection, is authorized to

establish a revolving loan program for PRIVATE DAM owners

enrolled in the program to provide assistance for eligible costs

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for repairs and maintenance to dams.

(b) Loan criteria.--The department, IN CONSULTATION WITH THE

DEPARTMENT OF ENVIRONMENTAL PROTECTION, shall establish criteria

to award loans under the revolving loan program. Participation

in the program shall be considered collateral for any loans

awarded under this section.

exceed 50% of the eligible costs, and no loan shall exceed

$500,000.

(d) Application LOAN APPLICATION.--Owners seeking program

loans must submit an A COMPLETE LOAN application to the

department. The LOAN application FORM shall be on a form

provided by the department. THE LOAN APPLICATION FORM SHALL BE

DEVELOPED, IN CONSULTATION WITH THE DEPARTMENT OF ENVIRONMENTAL

PROTECTION, and shall include all of the following:

(1) The name of the applicant.

(2) A brief description of the project to be funded.

(3) A demonstrated estimate of the eligible costs of the

project.

(4) Any other information as the department OR

DEPARTMENT OF ENVIRONMENTAL PROTECTION may require.

(e) Repayment.--Loans shall have a repayment period of up to

10 years.

(f) Interest.--Interest LOAN INTEREST rates shall be fixed

AT AN INTEREST RATE IN EFFECT at the time the loan is made and

shall be equal to the Five-Year United States Treasury Note on

the date the application is made LOAN IS AWARDED.

(g) Fee.--The department may charge a loan origination fee

not to exceed 2.5% of the approved loan amount.

(h) Penalties.--The department, IN CONSULTATION WITH THE

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DEPARTMENT OF ENVIRONMENTAL PROTECTION, shall establish

penalties for loan recipients who fail to meet their repayment

obligations under the loan terms.

Section 5. Annual report.

The department, IN CONSULTATION WITH THE DEPARTMENT OF

ENVIRONMENTAL PROTECTION, shall prepare an annual report for the

General Assembly concerning activities and expenditures made

under this act for the preceding year. The report shall include

information concerning all loans made to owners and loan

applications denied.

Section 6. Private Dam Financial Assurance Fund.

(a) Establishment of fund.--The Private Dam Financial

Assurance Fund is established in the State Treasury. All

payments and fees collected by the department under this act

shall be paid into the fund. Money deposited into the fund and

any interest it accrues are appropriated to the department for

use in accordance with this act. AND TO THE DEPARTMENT OF

ENVIRONMENTAL PROTECTION FOR COSTS ASSOCIATED WITH THE ENTRY,

CORRECTION, REPAIR, OPERATION, MAINTENANCE, INSPECTION,

MONITORING OR REMOVAL OF A DAM AS NECESSARY IN RESPONSE TO:

(1) THE FAILURE OF AN OWNER ENROLLED IN THE PROGRAM TO

COMPLY WITH THE ACT OF NOVEMBER 26, 1978 (P.L.1375, NO.325),

KNOWN AS THE DAM SAFETY AND ENCROACHMENTS ACT, OR ANY

REGULATION, PERMIT OR ORDER ISSUED UNDER THAT ACT, WHERE THE

FAILURE OF THE OWNER TO COMPLY CREATES AN UNSAFE CONDITION

UNDER THE DAM SAFETY AND ENCROACHMENTS ACT AND THE

REGULATIONS THEREUNDER; OR

(2) ABANDONMENT OF THE DAM BY AN OWNER ENROLLED IN THE

PROGRAM.

(B) FUND BALANCE AND LOAN PROGRAM.--AT ANY TIME THAT THE

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FUND HAS A BALANCE EQUAL TO OR GREATER THAN $1,500,000 AND THE

DEPARTMENT OF ENVIRONMENTAL PROTECTION HAS NOT IDENTIFIED THE

NEED FOR AN AMOUNT IN EXCESS OF $1,500,000 TO CORRECT THE

FAILURE OF OWNERS TO COMPLY WITH THE DAM SAFETY AND

ENCROACHMENTS ACT, THE DEPARTMENT MAY BEGIN ACCEPTING AND

APPROVING OWNER LOAN APPLICATIONS FOR ELIGIBLE COSTS SO LONG AS

A BALANCE OF AT LEAST $1,000,000 REMAINS IN THE FUND.

(b) (C) Supplements to fund.--The fund may be supplemented

by appropriations from Federal, State or local government or

from any private source.

Section 7. Effective date.

This act shall take effect immediately.

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