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PRINTER'S NO. 2580
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 AND ZIMMERMAN, NOVEMBER 30, 2015
REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY,
NOVEMBER 30, 2015
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:
"Community association." Any person or incorporated
community under 68 Pa.C.S. Subparts B (relating to
condominiums), C (relating to cooperatives) and D (relating to
planned communities).
"Department." The Department of Community and Economic
Development of the Commonwealth.
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"Eligible cost." Any cost to be incurred by an owner
enrolled in the program for maintenance of and repairs to the
owner's dam. The term includes 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.
"Person." Includes a natural person, partnership,
association or corporation.
"Program." The Private Dam Financial Assurance Program
established under section 3.
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 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.
(c) Eligibility.--Financial assurance through the 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.
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(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
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.
(d) Application.--Owners seeking assurance under this act
shall submit an application on forms provided by the department.
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 owners enrolled in the
program to provide assistance for eligible costs for repairs and
maintenance to dams.
(b) Loan criteria.--The department 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.
(c) Loan amounts.--No loan amount shall exceed 50% of the
eligible costs, and no loan shall exceed $500,000.
(d) Application.--Owners seeking program loans must submit
an application to the department. The application shall be on a
form provided by the department 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
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project.
(4) Any other information as the department may require.
(e) Repayment.--Loans shall have a repayment period of up to
10 years.
(f) Interest.--Interest rates shall be fixed 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.
(g) Fee.--The department may charge a loan origination fee
not to exceed 2.5% of the approved loan amount.
(h) Penalties.--The department shall establish penalties for
loan recipients who fail to meet their repayment obligations
under the loan terms.
Section 5. Annual report.
The department 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.
(b) 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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