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                                                      PRINTER'S NO. 1257

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1077 Session of 2003


        INTRODUCED BY SCRIMENTI, BEBKO-JONES, LEACH, FABRIZIO, THOMAS,
           YOUNGBLOOD, KOTIK, WASHINGTON, FRANKEL, WALKO, HERMAN,
           LAUGHLIN, SOLOBAY, SHANER, PISTELLA, BELFANTI, HARHAI, JAMES
           AND JOSEPHS, APRIL 7, 2003

        REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY,
           APRIL 7, 2003

                                     AN ACT

     1  Establishing a program within the Department of Environmental
     2     Protection to provide for low-interest loans to address
     3     coastal erosion.

     4     The General Assembly of the Commonwealth of Pennsylvania
     5  hereby enacts as follows:
     6  Section 1.  Short title.
     7     This act shall be known and may be cited as the Coastal
     8  Preservation Act.
     9  Section 2.  Legislative findings.
    10     The General Assembly finds and declares as follows:
    11         (1)  The Lake Erie coastline is an extraordinary
    12     ecological treasure and economic asset to northwestern
    13     Pennsylvania and this entire Commonwealth.
    14         (2)  High seasonal lake levels, currents and other
    15     erosive forces along Lake Erie have led to the recession of
    16     coastal bluffs along the lake by approximately one foot per
    17     year according to the Department of Environmental Protection.

     1         (3)  Coastal erosion along Lake Erie has been determined
     2     to be a threat to public safety, property and environmental
     3     quality.
     4         (4)  While the Department of Environmental Protection
     5     currently provides valuable advice to municipal governments,
     6     businesses and individuals regarding coastal erosion, the
     7     establishment of a low-interest loan program will provide for
     8     a stronger and more ecologically appropriate means for the
     9     Commonwealth to protect coastal resources against erosion.
    10  Section 3.  Definitions.
    11     The following words and phrases when used in this act shall
    12  have the meanings given to them in this section unless the
    13  context clearly indicates otherwise:
    14     "Authorized organization."  An entity involved in research,
    15  restoration, rehabilitation, planning, acquisition, development,
    16  education or other activities, which furthers the protection,
    17  enhancement, conservation, preservation or enjoyment of this
    18  Commonwealth's environmental, conservation, recreation or
    19  similar resources and that is a tax-exempt institution under
    20  section 501(c)(3) of the Internal Revenue Code of 1986 (Public
    21  Law 99-514, 26 U.S.C. § 501(c)(3)) and registered with the
    22  Bureau of Charitable Organizations or an educational institution
    23  involved in these authorized activities or a municipal
    24  authority.
    25     "Department."  The Department of Environmental Protection of
    26  the Commonwealth.
    27     "Fund."  The Environmental Stewardship Fund established under
    28  27 Pa.C.S. § 6104 (relating to fund).
    29     "Program."  The Low-interest Loan Program for Coastal Erosion
    30  established in section 4.
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     1  Section 4.  Low-interest Loan Program for Coastal Erosion.
     2     The department shall administer a low-interest loan program,
     3  to be administered through the Coastal Zone Management Program,
     4  to address the problem of bluff recession and coastal erosion.
     5  The program shall provide financial assistance to encourage the
     6  use of natural vegetation and structures deemed to be
     7  appropriate by the department in order to protect coastal
     8  resources. Financial assistance shall be in the form of low-
     9  interest loans to be lent at a rate not to exceed 2%, and the
    10  department shall determine the maximum amount of loan to be
    11  received by any applicant.
    12  Section 5.  Source of funding.
    13     The program shall be funded by the Environmental Stewardship
    14  Fund. Notwithstanding the approval of the Governor required
    15  under 27 Pa.C.S. § 6104 (c) (relating to fund) for other
    16  disbursements, the moneys of the fund are hereby appropriated on
    17  a continuing basis for the program.
    18  Section 6.  Loans.
    19     Loans meeting the purposes of section 4 may be made to any of
    20  the following:
    21         (1)  Political subdivisions or their agencies.
    22         (2)  Authorized organizations.
    23         (3)  Other persons determined to be eligible by the
    24     department.
    25  Section 7.  Priority of financial assistance.
    26     The department shall take all of the following factors into
    27  consideration when determining which applicants shall receive
    28  financial assistance under the program:
    29         (1)  The benefit of the remedy to the environment and
    30     public safety.
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     1         (2)  The permanence of the remedy.
     2         (3)  The threat of coastal erosion or bluff recession to
     3     any assets owned by the applicant and the likelihood that the
     4     loan will successfully remedy these threats.
     5         (4)  The cost effectiveness of the remedy.
     6  Section 8.  Terms and conditions.
     7     The department shall set terms and conditions applicable to
     8  the loans as it deems appropriate.
     9  Section 9.  Minimum use of funds.
    10     (a)  General rule.--Except as otherwise provided for under
    11  subsection (b), the department shall utilize not less than
    12  $250,000 of its share of the fund it receives for the 2003-2004
    13  fiscal year to administer the program and provide loans for
    14  applicants.
    15     (b)  Limitation.--The department may utilize less than
    16  $250,000 of its share of the fund for the 2003-2004 fiscal year
    17  if it does not receive sufficient applications meeting the terms
    18  and conditions set forth for the program.
    19  Section 10.  Effective date.
    20     This act shall take effect immediately.







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