PRIOR PRINTER'S NO. 3008                      PRINTER'S NO. 3925

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2206 Session of 1986


        INTRODUCED BY FREEMAN, GEORGE, MANDERINO, LEVDANSKY, MICHLOVIC,
           SCHULER, MORRIS, RYBAK, FEE, LUCYK, JOSEPHS, KOSINSKI,
           SERAFINI, ARGALL, TIGUE, McHALE, KUKOVICH, D. W. SNYDER,
           J. TAYLOR AND ITKIN, FEBRUARY 19, 1986

        AS REPORTED FROM COMMITTEE ON CONSERVATION, HOUSE OF
           REPRESENTATIVES, AS AMENDED, SEPTEMBER 22, 1986

                                     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     for the cleanup of hazardous waste sites and for compensation
    19     therefor; establishing the Hazardous Waste Abandoned Site
    20     Cleanup and Compensation Fund; providing for a surcharge on
    21     hazardous waste and for claims and awards; and providing
    22     penalties.

    23     The General Assembly of the Commonwealth of Pennsylvania
    24  hereby enacts as follows:
    25     Section 1.  The act of July 7, 1980 (P.L.380, No.97), known
    26  as the Solid Waste Management Act, is amended by adding an


     1  article to read:
     2                           ARTICLE VII-A
     3                    HAZARDOUS WASTE CLEANUP AND
     4                            COMPENSATION
     5  Section 701-A.  Hazardous Waste Abandoned Site Cleanup and
     6                     Compensation Fund.
     7     (a)  There is hereby established within the Treasury of the
     8  Commonwealth a separate account to be known as the Hazardous
     9  Waste Abandoned Site Cleanup and Compensation Fund, hereafter
    10  known as the fund. This fund is established as a nonlapsing
    11  revolving fund to be administered by the department to provide
    12  for the assessment, inspection and cleanup of abandoned
    13  hazardous waste sites and for the compensation for damages to
    14  persons or property from the improper handling, treating,
    15  storing and transportation of hazardous waste and the improper
    16  operation or closure of hazardous waste disposal facilities.
    17     (b)  Surcharge fees charged to generators of hazardous waste
    18  and owners or operators of hazardous waste disposal facilities
    19  in this Commonwealth shall be deposited in the fund for the
    20  purposes specified in this section and in a manner to be
    21  prescribed by the department. All interest received on moneys in
    22  the fund shall be credited to the fund.
    23  Section 702-A.  Hazardous waste surcharge.
    24     (a)  Effective January 1, 1986, there is hereby levied on all
    25  hazardous waste generated in this Commonwealth a surcharge fee
    26  in the amount of $10 per ton to be paid to the fund. In the
    27  event that any hazardous waste is measured by other than
    28  tonnage, the surcharge shall be levied on the equivalent thereof
    29  as shall be determined by the department. Each generator of
    30  hazardous waste shall, on or before the twentieth day of the
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     1  month following the close of each tax period, render an
     2  accounting and record of the total waste generated in that
     3  period on such forms as the department may require and make full
     4  payment of the surcharge in a manner to be prescribed by the
     5  department.
     6     (b)  Effective January 1, 1986, there is hereby levied on all
     7  owners or operators of hazardous waste disposal facilities in
     8  this Commonwealth a surcharge fee in the amount of $5 per ton of
     9  waste accepted, to be paid to the fund. In the event that any
    10  hazardous waste is measured upon acceptance at the disposal
    11  facility by other than tonnage, the surcharge shall be levied on
    12  the equivalent thereof as shall be determined by the department.
    13  Each owner or operator of a hazardous waste disposal facility
    14  shall, on or before the twentieth day of the month following the
    15  close of each tax period, render an accounting and record of the
    16  total waste accepted at its facility in that period on such
    17  forms as the department may require and make full payment of the
    18  surcharge in a manner to be prescribed by the department.
    19     (C)  TO CARRY OUT THE PURPOSES OF THIS ACT AND IN ORDER TO     <--
    20  CARRY OUT THE NATIONAL AND STATE POLICIES TO MINIMIZE LAND
    21  DISPOSAL OF HAZARDOUS WASTE BY ENCOURAGING PROPERLY CONDUCTED
    22  RECYCLING AND REUSE, THE SURCHARGE FEE LEVIED UNDER SUBSECTION
    23  (A) OF THIS SECTION SHALL BE $5 PER TON FOR HAZARDOUS WASTE
    24  WHICH IS RECYCLABLE MATERIAL UNDER 40 CFR § 261.6 AND SUCCESSOR
    25  FEDERAL AND STATE REGULATIONS AND WHICH IS SENT BY THE GENERATOR
    26  TO A VERIFIED RECYCLING FACILITY FOR RECYCLING OR REUSE; AND THE
    27  SURCHARGE LEVIED UNDER SUBSECTION (A) SHALL NOT APPLY TO WASTE
    28  GENERATED IN THE PROCESS OF RECYCLING RECYCLABLE MATERIALS
    29  LISTED IN 40 CFR § 261.6(A)(2) AND (3) AND ITS SUCCESSOR FEDERAL
    30  AND STATE REGULATIONS, AND SO VERIFIED BY THE DEPARTMENT:
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     1  PROVIDED, THAT ANY HAZARDOUS WASTE GENERATED IN THE RECYCLING
     2  PROCESS IS DISPOSED OF AT A PERMITTED DISPOSAL FACILITY. ALL
     3  VERIFICATIONS REFERRED TO IN THIS SUBSECTION SHALL BE IN WRITING
     4  AND APPROVED BY THE DEPARTMENT.
     5  Section 703-A.  Escrow accounts.
     6     (a)  All surcharge fees collected and deposited in the fund
     7  shall be placed in two escrow accounts for the following
     8  purposes:
     9         (1)  Seventy-five percent of the moneys collected from
    10     the surcharge fee shall be placed in an Abandoned Site Escrow
    11     Account within the fund to be used solely for the following:
    12             (i)  To identify, assess and inspect all abandoned
    13         sites in this Commonwealth where it is suspected
    14         hazardous waste exists which may pose a potential threat
    15         to human health or the environment. This shall be
    16         performed by the department and be completed within two
    17         years of the effective date of this article. To perform
    18         this duty, the department shall establish an abandoned
    19         site investigative unit within the department, and the
    20         required inspection shall be conducted by this unit
    21         within two years of the effective date of this article.
    22             (ii)  As Commonwealth matching funds for Federal
    23         funds received under the Comprehensive Environmental
    24         Response, Compensation and Liability Act of 1980 (Public
    25         Law 96-510, 94 Stat. 2767, 42 U.S.C. § 9601 et seq.).
    26             (iii)  To cover the cost to the Commonwealth for
    27         operation and maintenance and post-closure care of sites
    28         where remedial action has been completed under the
    29         Comprehensive Environmental Response Compensation and
    30         Liability Act of 1980.
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     1             (iv)  To finance all necessary remedial action at
     2         abandoned hazardous waste sites in this Commonwealth
     3         which pose a threat to human health or the environment.
     4             (v)  For administrative costs incurred by the
     5         department directly related to the administration of the
     6         fund. NO MORE THAN 2% MAY BE EXPENDED FOR THE COLLECTION   <--
     7         AND ADMINISTRATION OF THE FUND.
     8         (2)  Twenty-five percent of the moneys collected from the
     9     surcharge fees and deposited in the fund shall be placed in a
    10     Compensation Escrow Account within the fund to be used solely
    11     for:
    12             (i)  Compensation to parties for certain damages, no
    13         matter by whom sustained, proximately resulting from the
    14         handling, transportation, treatment, storage and disposal
    15         of hazardous waste and the improper operation or closure
    16         of hazardous waste disposal facilities.
    17             (ii)  Administrative costs incurred by the department
    18         directly related to the administration of the fund,
    19         including legal costs associated with the Office of
    20         Protector General in exercising any subrogation rights
    21         under section 709-A.
    22     (b)  The determination by the department of priority sites
    23  for remedial action, using money from the Abandoned Site Escrow
    24  Account, shall be based on selection criteria to be developed in
    25  the form of regulations which shall consider, but not be limited
    26  to, the following:
    27         (1)  Possible risk to the population.
    28         (2)  Hazard potential of substances at the site.
    29         (3)  Potential for contaminating drinking water supplies
    30     and other pathways that affect human health.
    19860H2206B3925                  - 5 -

     1         (4)  Potential for destruction of sensitive or important
     2     ecosystems.
     3  Section 704-A.  Payments from the fund.
     4     (a)  Upon submittal of claims as provided for in section 705-
     5  A, the fund shall make payments for certain costs and expenses,
     6  no matter by whom sustained, proximately resulting from the
     7  handling, treatment, transportation, storage and disposal of
     8  hazardous waste and the improper operation and closure of
     9  hazardous waste disposal facilities. These costs and expenses
    10  shall be limited to the following:
    11         (1)  The actual total cost of restoring, repairing or
    12     replacing any real or personal property damaged or destroyed
    13     to a condition equivalent to what existed prior to the damage
    14     or destruction, but only to its predamaged state, provided
    15     that payment for any single claim shall not exceed $30,000.
    16         (2)  The actual total cost of restoration and
    17     replacement, where possible, of any natural resources damaged
    18     or destroyed, including any public or private potable water
    19     supply, but only to its predamaged state, provided that
    20     payment for any single claim shall not exceed $30,000.
    21         (3)  The actual total cost of immediate medical expenses
    22     reasonably necessary for treatment of personal injuries
    23     proximately related to hazardous waste handling, treatment,
    24     transportation, storage and disposal, provided that payment
    25     for any single claim shall not exceed $15,000. The fund shall
    26     be considered as secondary coverage to any other medical or
    27     health insurance which covers the claimant, and the fund
    28     shall not pay for immediate medical expenses paid by any
    29     other form of insurance. The fund shall not cover, for the
    30     purposes of this section, any person whose exposure is
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     1     related to his employment and who is eligible for
     2     compensation under the act of June 2, 1915 (P.L.736, No.338),
     3     known as "The Pennsylvania Workmen's Compensation Act." For
     4     the purposes of this paragraph, "immediate medical expenses"
     5     shall mean medical, dental or other health care expenses
     6     directly related to an acute episode of illness.
     7         (4)  An allowance for wages and salary lost as a result
     8     of personal injuries proximately related to hazardous waste
     9     handling, treatment, transportation, storage and disposal.
    10     The fund shall not cover, for the purposes of this section,
    11     any person whose exposure is related to his employment and
    12     who is eligible for compensation under "The Pennsylvania
    13     Workmen's Compensation Act." The amount of said allowance
    14     shall be calculated in the same way and to provide the same
    15     amount per week as compensation for lost wages under "The
    16     Pennsylvania Workmen's Compensation Act," except that said
    17     allowance under this section shall not be paid for a period
    18     of time in excess of 26 weeks for any single claim.
    19         (5)  The actual total costs of the design, construction,
    20     installation, operation and maintenance of any device or
    21     action deemed necessary by the department to clean up,
    22     remedy, mitigate, monitor or analyze any threat to the public
    23     health, safety or welfare of the citizens of this State,
    24     including the installation and maintenance of monitoring
    25     wells and the sampling and analysis of any public or private
    26     potable water supply.
    27     (b)  The fund shall not pay and shall not be liable for
    28  damages for pain and suffering, mental anguish, emotional
    29  distress, or any other type of damages not involving the direct
    30  costs and expenses enumerated in subsection (a).
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     1  Section 705-A.  Claims.
     2     (a)  Claims for damages made under section 704-A(1), (2) or
     3  (5) shall be filed with the department not later than one year
     4  after the date of discovery of damage, or not later than six
     5  years after the date of the incident which caused the damage.
     6  Claims for damages made under section 704-A(3) or (4) shall be
     7  filed with the department within one year of the date that
     8  claimant possessed, or reasonably should have possessed:
     9  knowledge of the injury, knowledge of the operative cause of the
    10  injury, and knowledge of the causative relationship between the
    11  injury and the operative conduct. All claims for damages shall
    12  be filed in a manner to be prescribed by regulation. The
    13  department shall prescribe appropriate forms and procedures for
    14  such claims, which shall include a provision requiring the
    15  claimant to make a sworn verification of the claim to the best
    16  of his knowledge. The department shall not fail to process a
    17  claim because the claimant is unable, to the best of his
    18  knowledge, to demonstrate fault or identify a responsible party.
    19  For the purposes of this section, the date of the incident shall
    20  be deemed to be the date of the first official notice given by
    21  the department to the operator of the waste site.
    22     (b)  Any person who knowingly gives or causes to be given any
    23  false information as a part of any such claim, in addition to
    24  any other penalties herein or elsewhere prescribed, commits a
    25  misdemeanor of the third degree.
    26     (c)  Upon receipt of any claim, the department shall as soon
    27  as practicable inform all affected parties of the claim.
    28     (d)  (1)  The department shall attempt to promote and arrange
    29     a settlement between the claimant and the person responsible
    30     for the damage. If the source of the damage can be determined
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     1     and liability is conceded, the claimant and the alleged
     2     responsible party may agree to a settlement, which shall be
     3     final and binding upon the parties and which will waive all
     4     recourse against the fund.
     5         (2)  If the responsible party is unknown or cannot be
     6     determined, the claimant and the department shall attempt to
     7     arrange a settlement of any claim against the fund, following
     8     procedures to be prescribed by regulation. The department is
     9     authorized to enter and certify payment of such settlement,
    10     subject to such proof and procedures contained in regulations
    11     to be promulgated by the Environmental Quality Board.
    12  Section 706-A.  Fund balance and awards.
    13     (a)  In the event that the total of claims awarded exceeds
    14  the current balance of the fund, the immediate award shall be
    15  paid on a prorated basis, and all claimants paid on a prorated
    16  basis shall be paid, as determined by the department, on a pro
    17  rata share of all moneys received by the fund until the total
    18  amount of the proven damages is paid to the claimants. The
    19  Environmental Quality Board shall also establish, by regulation,
    20  priorities for the payment of claims based on extreme hardship
    21  or extreme existing or imminent hazard.
    22     (b)  In each fiscal year following any year in which the
    23  balance in the fund equals or exceeds $50,000,000, no surcharge
    24  shall be levied unless either of the following occurs:
    25         (1)  The current balance in the fund is less than
    26     $25,000,000.
    27         (2)  Pending claims against the fund and the cost of
    28     planned remedial actions exceed 50% of the existing balance.
    29  Section 707-A.  Limit on awards.
    30     The damages which may be recovered by the fund without regard
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     1  to fault, subject to the defenses enumerated in section 708-A
     2  against a generator or owner or operator of a facility, shall
     3  not exceed $10,000,000 for each facility, except that such
     4  maximum limitation shall not apply, and the generator or owner
     5  or operator shall be liable, jointly and severally, for the full
     6  amount of such damages, if it can be shown that such discharge
     7  was the result of either of the following:
     8         (1)  Gross negligence or willful misconduct within the
     9     knowledge and privity of the owner, operator or person in
    10     charge.
    11         (2)  A grossly negligent or willful violation of
    12     applicable safety, construction or operating standards or
    13     regulations.
    14  Damages which may be recovered from, or by, any other person
    15  shall be limited to those authorized by common or statutory law.
    16  Section 708-A.  Defenses.
    17     An act of God or occurrence caused solely by war or sabotage,
    18  or a combination thereof, shall be the only defenses which may
    19  be raised by any owner or operator of a facility or generator
    20  responsible for any damage arising under the provisions of this
    21  article, but said defense shall not be available if it can be
    22  shown that the damage would not have occurred but for the
    23  negligence of the owner or operator.
    24  Section 709-A.  Subrogation.
    25     Payment of any damages by the fund shall give the department
    26  all rights of the claimant to recovery against the responsible
    27  party of those particular costs or damages actually paid by the
    28  fund. The department, through the Office of the Protector
    29  General, shall then seek satisfaction from the responsible party
    30  in a court of law if the responsible party does not voluntarily
    19860H2206B3925                 - 10 -

     1  reimburse the fund, provided that the department shall first
     2  give reasonable written advance notice to the claimant of its
     3  intention to file suit against the responsible party and provide
     4  the claimant a reasonable period of time to join in the
     5  commencement of said suit or to institute a separate suit
     6  against the responsible party. In any such suit, the department
     7  need prove only that an unlawful act occurred which was the
     8  responsibility of the generator, owner, operator or responsible
     9  party. The department may compromise and settle the amount
    10  sought for cost and damages from the responsible party and any
    11  person accused under this article, but only to the extent of its
    12  actual subrogation interest. Nothing in this section shall limit
    13  or preclude a claimant, after receipt of payment of costs or
    14  damages from the fund, from seeking any other civil or
    15  injunctive remedies provided by existing law against the
    16  responsible party, except that the subrogation rights of the
    17  fund shall be protected by the claimant from any money damages
    18  received.
    19  Section 710-A.  Penalty.
    20     Any owner or operator of a hazardous waste disposal facility
    21  or generator who fails to file required forms or fails to pay
    22  the surcharge, as required by this article, or who makes or
    23  causes to be made, or who gives or causes to be given, any
    24  return, certificate, affidavit, representation, information,
    25  testimony or statement required or authorized by this act, or
    26  rules or regulations adopted hereunder, which is willfully
    27  false, or who fails to keep any records required by this
    28  article, or rules and regulations adopted hereunder, in addition
    29  to any other penalties herein or elsewhere prescribed, commits a
    30  misdemeanor of the second degree.
    19860H2206B3925                 - 11 -

     1  Section 711-A.  Remedies cumulative.
     2     (a)  Nothing in this article shall in any way relieve any
     3  person, corporation, partnership, business or other entity from
     4  liability with regard to the health and safety of any other
     5  person exposed to or affected by hazardous waste, nor shall it
     6  relieve any person, corporation, partnership, business or other
     7  entity from any other duty or responsibility under any other
     8  provision of law.
     9     (b)  Nothing in this article shall be deemed to preclude the
    10  pursuit of any other civil or injunctive remedy by any person,
    11  including, but not limited to, civil claims and suits for money
    12  damages. The remedies provided and damages recoverable in this
    13  article are in addition to those provided by existing law, but
    14  no person who receives compensation for damages or cleanup costs
    15  pursuant to any other Commonwealth or Federal law shall be
    16  permitted to receive compensation for the same damages or
    17  cleanup costs under this article.
    18  Section 712-A.  Annual report.
    19     The secretary shall make an annual report to the Governor and
    20  the General Assembly which shall describe the costs and damages
    21  paid by and recovered for the fund, and the economic and
    22  environmental impact on this Commonwealth as a result of the
    23  administration of this article.
    24     Section 2.  This act shall take effect in 60 days.




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