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                                                       PRINTER'S NO. 390

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 344 Session of 2003


        INTRODUCED BY YUDICHAK, DeWEESE, GEORGE, McCALL, BELARDI,
           CAPPELLI, CORRIGAN, HORSEY, LAUGHLIN, LEVDANSKY, McILHATTAN,
           SOLOBAY, TANGRETTI, TIGUE, WANSACZ, JAMES, BROWNE, CAWLEY,
           GRUCELA, KELLER, LEACH, MANN, READSHAW, STABACK, THOMAS,
           WALKO, YOUNGBLOOD AND PALLONE, FEBRUARY 18, 2003

        REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY,
           FEBRUARY 18, 2003

                                     AN ACT

     1  Amending the act of May 19, 1995 (P.L.4, No.2), entitled "An act
     2     providing for the recycling of existing industrial and
     3     commercial sites; further defining the cleanup liability of
     4     new industries and tenants; establishing a framework for
     5     setting environmental remediation standards; establishing the
     6     Voluntary Cleanup Loan Fund, the Industrial Land Recycling
     7     Fund and the Industrial Sites Cleanup Fund to aid industrial
     8     site cleanups; assigning powers and duties to the
     9     Environmental Quality Board and the Department of
    10     Environmental Resources; and making repeals," providing for
    11     previously mined sites with preexisting discharges that are
    12     proposed for remining, reclamation or redevelopment; and
    13     making editorial changes.

    14     The General Assembly of the Commonwealth of Pennsylvania
    15  hereby enacts as follows:
    16     Section 1.  The title and section 102 of the act of May 19,
    17  1995 (P.L.4, No.2), known as the Land Recycling and
    18  Environmental Remediation Standards Act, are amended to read:
    19                               AN ACT
    20  Providing for the recycling of existing industrial and
    21     commercial sites; further defining the cleanup liability of


     1     new industries and tenants; establishing a framework for
     2     setting environmental remediation standards; establishing the
     3     Voluntary Cleanup Loan Fund, the Industrial Land Recycling
     4     Fund and the Industrial Sites Cleanup Fund to aid industrial
     5     site cleanups; assigning powers and duties to the
     6     Environmental Quality Board and the Department of
     7     Environmental [Resources] Protection; and making repeals.
     8  Section 102.  Declaration of policy.
     9     The General Assembly finds and declares as follows:
    10         (1)  The elimination of public health and environmental
    11     hazards on existing commercial and industrial land across
    12     this Commonwealth is vital to their use and reuse as sources
    13     of employment, housing, recreation and open-space areas. The
    14     reuse of industrial land is an important component of a sound
    15     land-use policy that will help prevent the needless
    16     development of prime farmland, open-space areas and natural
    17     areas and reduce public costs for installing new water, sewer
    18     and highway infrastructure.
    19         (2)  Incentives should be put in place to encourage
    20     responsible persons to voluntarily develop and implement
    21     cleanup plans without the use of taxpayer funds or the need
    22     for adversarial enforcement actions by the Department of
    23     Environmental [Resources] Protection which frequently only
    24     serve to delay cleanups and increase their cost.
    25         (3)  Public health and environmental hazards cannot be
    26     eliminated without clear, predictable environmental
    27     remediation standards and a process for developing those
    28     standards. Any remediation standards adopted by this
    29     Commonwealth must provide for the protection of public health
    30     and the environment.
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     1         (4)  It is necessary for the General Assembly to adopt a
     2     statute which sets environmental remediation standards to
     3     provide a uniform framework for cleanup decisions because few
     4     environmental statutes set cleanup standards and to avoid
     5     potentially conflicting and confusing environmental
     6     standards. The General Assembly also has a duty to implement
     7     the provisions of section 27 of Article I of the Constitution
     8     of Pennsylvania with respect to environmental remediation
     9     activities.
    10         (5)  It is necessary for the General Assembly to adopt a
    11     statute which provides a mechanism to establish cleanup
    12     standards without relieving a person from any liability for
    13     administrative, civil or criminal fines or penalties
    14     otherwise authorized by law and imposed as a result of
    15     illegal disposal of waste or for pollution of the land, air
    16     or waters of this Commonwealth on an identified site.
    17         (6)  Cleanup plans should be based on the actual risk
    18     that contamination on the site may pose to public health and
    19     the environment, taking into account its current and future
    20     use and the degree to which contamination can spread offsite
    21     and expose the public or the environment to risk, not on
    22     cleanup policies requiring every site in this Commonwealth to
    23     be returned to a pristine condition.
    24         (7)  Cleanup plans should have as a goal remedies which
    25     treat, destroy or remove regulated substances whenever
    26     technically and economically feasible as determined under the
    27     provisions of this act.
    28         (8)  The Department of Environmental [Resources]
    29     Protection now routinely through its permitting policies
    30     determines when contamination will and will not pose a
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     1     significant risk to public health or the environment. Similar
     2     concepts should be used in establishing cleanup policies.
     3         (9)  The public is entitled to understand how remediation
     4     standards are applied to a site through a plain language
     5     description of contamination present on a site, the risk it
     6     poses to public health and the environment and any proposed
     7     cleanup measure.
     8     Section 2.  The definitions of "department," "point of
     9  compliance," "release" and "secretary" in section 103 of the act
    10  are amended to read:
    11  Section 103.  Definitions.
    12     The following words and phrases when used in this act shall
    13  have the meanings given to them in this section unless the
    14  context clearly indicates otherwise:
    15     * * *
    16     "Department."  The Department of Environmental [Resources]
    17  Protection of the Commonwealth or its successor agency.
    18     * * *
    19     "Point of compliance."  For the purposes of determining
    20  compliance with groundwater standards, the property boundary at
    21  the time the contamination is discovered or such point beyond
    22  the property boundary as the Department of Environmental
    23  [Resources] Protection may determine to be appropriate.
    24     * * *
    25     "Release."  Spilling, leaking, pumping, pouring, emitting,
    26  emptying, discharging, injecting, escaping, leaching, dumping or
    27  disposing of a regulated substance into the environment in a
    28  manner not authorized by the Department of Environmental
    29  [Resources] Protection. The term includes the abandonment or
    30  discarding of barrels, containers, vessels and other receptacles
    20030H0344B0390                  - 4 -     

     1  containing a regulated substance.
     2     * * *
     3     "Secretary."  The Secretary of Environmental [Resources]
     4  Protection of the Commonwealth.
     5     * * *
     6     Section 3.  Sections 106(a), 302(b), 303(e), 304(k), 305(a),
     7  702 and 905(a) of the act are amended to read:
     8  Section 106.  Scope.
     9     (a)  Remediation standards.--The environmental remediation
    10  standards established under this act shall be used whenever site
    11  remediation is voluntarily conducted or is required under the
    12  act of June 22, 1937 (P.L.1987, No.394), known as The Clean
    13  Streams Law, the act of May 31, 1945 (P.L.1198, No.418), known
    14  as the Surface Mining Conservation and Reclamation Act, the act
    15  of January 8, 1960 (1959 P.L.2119, No.787), known as the Air
    16  Pollution Control Act, the act of July 7, 1980 (P.L.380, No.97),
    17  known as the Solid Waste Management Act, the act of July 13,
    18  1988 (P.L.525, No.93), referred to as the Infectious and
    19  Chemotherapeutic Waste Law, the act of October 18, 1988
    20  (P.L.756, No.108), known as the Hazardous Sites Cleanup Act, and
    21  the act of July 6, 1989 (P.L.169, No.32), known as the Storage
    22  Tank and Spill Prevention Act, to be eligible for cleanup
    23  liability protection under Chapter 5. In addition, the
    24  remediation standards established under this act shall be
    25  considered as applicable, relevant and appropriate requirements
    26  for this Commonwealth under the Comprehensive Environmental
    27  Response, Compensation, and Liability Act of 1980 (Public Law
    28  96-510, 42 U.S.C. § 9601 et seq.) and the Hazardous Sites
    29  Cleanup Act.
    30     * * *
    20030H0344B0390                  - 5 -     

     1  Section 302.  Background standard.
     2     * * *
     3     (b)  Attainment.--Final certification that a site or portion
     4  of a site meets the background standard shall be documented in
     5  the following manner:
     6         (1)  Attainment of the background standard shall be
     7     demonstrated by collection and analysis of representative
     8     samples from environmental media of concern, including soils
     9     and groundwater in aquifers in the area where the
    10     contamination occurs through the application of statistical
    11     tests set forth in regulation or, if no regulations have been
    12     adopted, in a demonstration of a mathematically valid
    13     application of statistical tests. The [Department of
    14     Environmental Resources] department shall also recognize
    15     those methods of attainment demonstration generally
    16     recognized as appropriate for that particular remediation.
    17         (2)  A final report that documents attainment of the
    18     background standard shall be submitted to the department
    19     which includes, as appropriate:
    20             (i)  The descriptions of procedures and conclusions
    21         of the site investigation to characterize the nature,
    22         extent, direction, volume and composition of regulated
    23         substances.
    24             (ii)  The basis for selecting environmental media of
    25         concern, descriptions of removal or decontamination
    26         procedures performed in remediation, summaries of
    27         sampling methodology and analytical results which
    28         demonstrate that remediation has attained the background
    29         standard.
    30         (3)  Where remediation measures do not involve removal or
    20030H0344B0390                  - 6 -     

     1     treatment of a contaminant to the background standard, the
     2     final report shall demonstrate that any remaining
     3     contaminants on the site will meet Statewide health standards
     4     and show compliance with any postremediation care
     5     requirements that may be needed to maintain compliance with
     6     the Statewide health standards.
     7         (4)  Institutional controls such as fencing and future
     8     land use restrictions on a site may not be used to attain the
     9     background standard. Institutional controls may be used to
    10     maintain the background standard after remediation occurs.
    11     * * *
    12  Section 303.  Statewide health standard.
    13     * * *
    14     (e)  Attainment.--Final certification that a site or portion
    15  of a site meets the Statewide health standard shall be
    16  documented in the following manner:
    17         (1)  Attainment of cleanup levels shall be demonstrated
    18     by collection and analysis of representative samples from the
    19     environmental medium of concern, including soils, and
    20     groundwater in aquifers at the point of compliance through
    21     the application of statistical tests set forth in regulation
    22     or, if no regulations have been adopted, in a demonstration
    23     of a mathematically valid application of statistical tests.
    24     The [Department of Environmental Resources] department shall
    25     also recognize those methods of attainment demonstration
    26     generally recognized as appropriate for that particular
    27     remediation.
    28         (2)  A final report that documents attainment of the
    29     Statewide health standard shall be submitted to the
    30     department which includes the descriptions of procedures and
    20030H0344B0390                  - 7 -     

     1     conclusions of the site investigation to characterize the
     2     nature, extent, direction, rate of movement of the site and
     3     cumulative effects, if any, volume, composition and
     4     concentration of contaminants in environmental media, the
     5     basis for selecting environmental media of concern,
     6     documentation supporting the selection of residential or
     7     nonresidential exposure factors, descriptions of removal or
     8     treatment procedures performed in remediation, summaries of
     9     sampling methodology and analytical results which demonstrate
    10     that contaminants have been removed or treated to applicable
    11     levels and documentation of compliance with postremediation
    12     care requirements if they are needed to maintain the
    13     Statewide health standard.
    14         (3)  Institutional controls such as fencing and future
    15     land use restrictions on a site may not be used to attain the
    16     Statewide health standard. Institutional controls may be used
    17     to maintain the Statewide health standard after remediation
    18     occurs.
    19     * * *
    20  Section 304.  Site-specific standard.
    21     * * *
    22     (k)  Attainment.--Compliance with the site-specific standard
    23  is attained for a site or portion of a site when a remedy
    24  approved by the department has been implemented in compliance
    25  with the following criteria:
    26         (1)  Soil, groundwater, surface water and air emission
    27     standards as determined under subsections (a) through (h)
    28     have been attained.
    29         (2)  Attainment of the site-specific standard shall be
    30     demonstrated by collection and analysis of samples from
    20030H0344B0390                  - 8 -     

     1     affected media, as applicable, such as surface water, soil,
     2     groundwater in aquifers at the point of compliance through
     3     the application of statistical tests set forth in regulation
     4     or, if no regulations have been adopted, in a demonstration
     5     of a mathematically valid application of statistical tests.
     6     The [Department of Environmental Resources] department shall
     7     also recognize those methods of attainment demonstration
     8     generally recognized as appropriate for that particular
     9     remediation.
    10     * * *
    11  Section 305.  Special industrial areas.
    12     (a)  Special sites.--For property used for industrial
    13  activities where there is no financially viable responsible
    14  person to clean up contamination or for land located within
    15  enterprise zones designated pursuant to the requirements of the
    16  Department of Community [Affairs] and Economic Development, the
    17  review procedures of this section shall apply for persons
    18  conducting remediation activities who did not cause or
    19  contribute to contamination on the property. Any environmental
    20  remediation undertaken pursuant to this section shall comply
    21  with one or more of the standards established in this chapter.
    22  This section shall also apply to any person who proposes to
    23  remine, reclaim or redevelop an area on which there is a
    24  preexisting discharge from previous mining and has secured
    25  special authorization under section 4.6(a) of the act of May 31,
    26  1945 (P.L.1198, No.418), known as the Surface Mining
    27  Conservation and Reclamation Act.
    28     * * *
    29  Section 702.  Industrial Sites Cleanup Fund.
    30     (a)  Establishment.--There is hereby established a separate
    20030H0344B0390                  - 9 -     

     1  account in the State Treasury, to be known as the Industrial
     2  Sites Cleanup Fund, which shall be a special fund administered
     3  by the Department of [Commerce. Within 60 days of the effective
     4  date of this act, the Department of Commerce shall finalize
     5  guidelines and issue application forms to administer this fund.]
     6  Community and Economic Development.
     7     (b)  Purpose.--The Industrial Sites Cleanup Fund is to
     8  provide financial assistance to persons who did not cause or
     9  contribute to the contamination on property used for industrial
    10  activity on or before the effective date of this act and who
    11  propose to undertake a voluntary cleanup of the property. The
    12  financial assistance shall be in an amount of up to 75% of the
    13  costs incurred for completing an environmental study and
    14  implementing a cleanup plan by an eligible applicant. Financial
    15  assistance may be in the form of grants as provided in this
    16  section or low-interest loans, to be lent at a rate not to
    17  exceed 2%.
    18     (c)  Grants.--Grants may be made to political subdivisions or
    19  their instrumentalities or local economic development agencies
    20  for the purposes of this section if the grantee owns the site on
    21  which the cleanup is being conducted and the grantee is
    22  overseeing the cleanup. The total amount of grants awarded under
    23  this section in any one fiscal year shall not exceed 20% of the
    24  total amount of the Industrial Sites Cleanup Fund.
    25     (d)  Loans.--Loans meeting the requirements of subsection (b)
    26  may be made to the following categories of applicants:
    27         (1)  Local economic development agencies.
    28         (2)  Political subdivisions or their instrumentalities.
    29         (3)  Other persons determined to be eligible by the
    30     Department of [Commerce] Community and Economic Development.
    20030H0344B0390                 - 10 -     

     1     (e)  Priority for financial assistance.--The Department of
     2  [Commerce] Community and Economic Development shall take all of
     3  the following factors into consideration when determining which
     4  applicants shall receive financial assistance under this
     5  section:
     6         (1)  The benefit of the remedy to public health, safety
     7     and the environment.
     8         (2)  The permanence of the remedy.
     9         (3)  The cost effectiveness of the remedy in comparison
    10     with other alternatives.
    11         (4)  The financial condition of the applicant.
    12         (5)  The financial or economic distress of the area in
    13     which the cleanup is being conducted.
    14         (6)  The potential for economic development.
    15  The Department of [Commerce] Community and Economic Development
    16  shall consult with the department when determining priorities
    17  for funding under this section.
    18     (f)  Terms and conditions.--The Department of [Commerce]
    19  Community and Economic Development shall have the power to set
    20  terms and conditions applicable to loans and grants it deems
    21  appropriate. The Department of [Commerce] Community and Economic
    22  Development may consider such factors as it deems relevant,
    23  including current market interest rates and the necessity to
    24  maintain the moneys in this fund in a financially sound manner.
    25  Loans may be made based upon the ability to repay from future
    26  revenue to be derived from the cleanup, by a mortgage or other
    27  collateral, or on any other fiscal matters which the Department
    28  of [Commerce] Community and Economic Development deems
    29  appropriate.
    30     (g)  Funds.--In addition to any funds appropriated by the
    20030H0344B0390                 - 11 -     

     1  General Assembly, $15,000,000 shall be transferred upon approval
     2  of the Governor from the Hazardous Sites Cleanup Fund
     3  established by the act of October 18, 1988 (P.L.756, No.108),
     4  known as the Hazardous Sites Cleanup Act, to the Industrial
     5  Sites Cleanup Fund for the purpose of implementing the program
     6  established in this section. Moneys received by the Department
     7  of [Commerce] Community and Economic Development as repayment of
     8  outstanding loans shall be deposited in the fund. Any interest
     9  earned by moneys in this fund shall remain in this fund. Moneys
    10  in the fund are hereby appropriated to the Department of
    11  [Commerce] Community and Economic Development for the purpose of
    12  implementing this section.
    13     (h)  Annual report.--The Department of [Commerce] Community
    14  and Economic Development shall on October 1 of each year report
    15  to the General Assembly on the grants, loans, expenditures and
    16  commitments made from this fund. The annual report shall include
    17  an evaluation of the effectiveness of this fund in recycling
    18  industrial and commercial sites. The evaluation shall include
    19  any recommendations for additional changes if necessary to
    20  improve the effectiveness of this fund in recycling such sites.
    21  Section 905.  Enforcement.
    22     (a)  General.--The department is authorized to use the
    23  enforcement and penalty provisions applicable to the
    24  environmental medium or activity of concern, as appropriate,
    25  established under the act of June 22, 1937 (P.L.1987, No.394),
    26  known as The Clean Streams Law, the act of May 31, 1945
    27  (P.L.1198, No.418), known as the Surface Mining Conservation and
    28  Reclamation Act, the act of January 8, 1960 (1959 P.L.2119,
    29  No.787), known as the Air Pollution Control Act, the act of July
    30  7, 1980 (P.L.380, No.97), known as the Solid Waste Management
    20030H0344B0390                 - 12 -     

     1  Act, the act of July 13, 1988 (P.L.525, No.93), referred to as
     2  the Infectious and Chemotherapeutic Waste Law, the act of
     3  October 18, 1988 (P.L.756, No.108), known as the Hazardous Sites
     4  Cleanup Act, or the act of July 6, 1989 (P.L.169, No.32), known
     5  as the Storage Tank and Spill Prevention Act, to enforce the
     6  provisions of this act.
     7     * * *
     8     Section 4.  This act shall take effect in 60 days.















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