Section 904.  Performance grants for municipal recycling
                    programs.
        (a)  Authorization.--The department shall award annual
     performance grants for municipal recycling programs, upon
     application from a municipality. The application shall be made
     on a form prepared and furnished by the department. The
     application shall contain such information as the department
     deems necessary to carry out the provisions and purposes of this
     act, including, but not limited to, information pertaining to
     details of the applicant's recycling and composting programs.
     ((a) amended Nov. 9, 2006, P.L.1347, No.140)
        (b)  Availability.--The department shall award a grant under
     this section to a municipality based on the type and weight of
     source-separated recyclable materials identified in section 1501
     that were recycled in the previous calendar year, and the
     population of the municipality.
        (c)  Amount.--The amount of the grant shall be based on
     available funds under section 706 and shall be available to all
     municipalities which have a recycling program in existence on or
     will initiate a program after the effective date of this act.
        (d)  Prerequisites.--The department shall not award any grant
     under this section unless it is demonstrated to the department's
     satisfaction that:
            (1)  The application is complete and accurate.
            (2)  The materials were actually marketed.
            (3)  The materials have not been produced by a leaf or
        other organics composting facility.
            (4)  Mandated curbside municipalities and other
        municipalities, except for counties, receiving more than
        $10,000 in funding under this section have met the following
        performance requirements:
                (i)  Requires, through ordinance, that all residents
            have waste and recycling service.
                (ii)  Has an implemented residential recycling
            program and facilitates a commercial recycling program or
            participates in a similar county or multimunicipal
            program.
                (iii)  Has a residential and business recycling
            education program.
                (iv)  Has a program of enforcement that periodically
            monitors participation, receives complaints and issues
            warnings for required participants and provides fines,
            penalties, or both, in its recycling ordinance.
                (v)  Has provisions, participates in a county or
            multimunicipal program or facilitates a private sector
            program for the recycling of special materials.
                (vi)  Sponsors a program, facilitates a program or
            supports an organization to address illegal dumping
            and/or littering problems.
                (vii)  Has a person or entity designated as recycling
            coordinator who is responsible for recycling data
            collection and reporting recycling program performance in
            the municipality or municipalities.
            (5)  If the requirements of paragraph (4) are not
        satisfied by the municipality, then the grant funds awarded
        under this section shall be expended by the municipality only
        to satisfy the requirements of paragraph (4).
            (6)  If the requirements of paragraph (4) are satisfied
        by the municipality, then the grant funds awarded under this
        section may be expended by the municipality on any expense as
        determined in the discretion of the municipality.
        ((d) amended Nov. 9, 2006, P.L.1347, No.140)
        (e)  Compliance.--The department may require budget documents
     or other expenditure records and may deny funding through this
     section if an applicant cannot demonstrate that funds have been
     expended on eligible activities. ((e) added Nov. 9, 2006,
     P.L.1347, No.140)