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                                                       PRINTER'S NO. 409

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 399 Session of 1999


        INTRODUCED BY BOSCOLA, COSTA, KASUNIC, O'PAKE, STOUT AND SLOCUM,
           FEBRUARY 16, 1999

        REFERRED TO ENVIRONMENTAL RESOURCES AND ENERGY,
           FEBRUARY 16, 1999

                                     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," adding
    18     definitions; and further providing for submission of plans
    19     and permits, for permits and licenses required, for granting
    20     of permits and licenses and for bonds.

    21     The General Assembly of the Commonwealth of Pennsylvania
    22  hereby enacts as follows:
    23     Section 1.  Section 103 of the act of July 7, 1980 (P.L.380,
    24  No.97), known as the Solid Waste Management Act, is amended by
    25  adding definitions to read:
    26  Section 103.  Definitions.


     1     The following words and phrases when used in this act shall
     2  have, unless the context clearly indicates otherwise, the
     3  meanings given to them in this section:
     4     * * *
     5     "Affected municipality."  A municipality within one mile of a
     6  proposed municipal waste landfill, that is on an approach route
     7  to a municipal waste landfill regulated by this act, or that is
     8  otherwise adversely impacted by a facility.
     9     * * *
    10     "Host municipality."  The municipality other than the county
    11  within which a municipal waste landfill is located or is
    12  proposed to be located.
    13     * * *
    14     Section 2.  Sections 502 and 503 of the act are amended by
    15  adding subsections to read:
    16  Section 502.  Permit and license application requirements.
    17     * * *
    18     (d.1)  The application shall include all records, reports,
    19  information and dispositions relating to violations of 75
    20  Pa.C.S. Pt. IV (relating to vehicle characteristics). Such
    21  information shall be considered by the department when
    22  considering an application under this section.
    23     * * *
    24  Section 503.  Granting, denying, renewing, modifying, revoking
    25                 and suspending permits and licenses.
    26     * * *
    27     (b.1)  No permit shall be issued for the siting of a new
    28  municipal waste landfill or the expansion of an existing
    29  municipal waste landfill in a municipality where a referendum
    30  has been conducted pursuant to section 504.1 and the electorate
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     1  has voted against the siting of a new municipal waste landfill
     2  or the expansion of an existing municipal waste landfill.
     3     * * *
     4     (c.1)  In carrying out the provisions of this act, the
     5  department may deny, suspend, modify, or revoke any permit or
     6  license if it finds that the applicant, permittee or licensee
     7  has failed or continues to fail to comply with the provisions of
     8  75 Pa.C.S. Pt. IV (relating to vehicle characteristics).
     9     * * *
    10     (f)  Any permit issued under this act for the operation of a
    11  municipal waste landfill will be issued for a fixed term
    12  consistent with the approved operation and design plans of a
    13  municipal waste landfill and not to exceed ten years. No
    14  municipal waste may be disposed of or processed at such a
    15  landfill after the expiration of its permit term. Expiration of
    16  the permit term shall not limit the operator's responsibility
    17  for complying with requirements under this act, the
    18  environmental protection acts, regulations thereunder or the
    19  terms or conditions of its permits. The department shall, from
    20  time to time, but at intervals not to exceed two years, review a
    21  permit issued to a municipal waste landfill under this act. In
    22  its review, the department shall evaluate the permit to
    23  determine whether it reflects currently applicable operating
    24  requirements as well as current technology and management
    25  practices. The department may require modification, suspension
    26  or revocation of the permit when necessary to carry out the
    27  purposes of this act or the environmental protection acts.
    28     Section 3.  The act is amended by adding a section to read:
    29  Section 504.1.  Referendum on siting of municipal waste
    30                 landfills or expansion of existing municipal
    19990S0399B0409                  - 3 -

     1                 waste landfills.
     2     (a)  Prior to the approval of an application for a permit to
     3  operate a municipal waste landfill or a permit to expand an
     4  existing municipal waste landfill's capacity by the governing
     5  body or the department, the county board of elections shall
     6  conduct a binding referendum in the host municipality and all
     7  affected municipalities. The department shall not issue such a
     8  permit if a majority of the municipalities participating in the
     9  referendum reject the proposed siting or expansion by a majority
    10  vote of the electors in each municipality.
    11     (b)  The binding referendum shall be conducted at the first
    12  primary, municipal or general election occurring at least 60
    13  days after the department has notified the host county that it
    14  has received an application for a permit to operate a municipal
    15  waste landfill or to expand the capacity of an existing
    16  facility.
    17     (c)  The results of the binding referendum shall be
    18  transmitted to the department, the governing body of the county,
    19  the host municipality and all affected municipalities.
    20     (d)  Procedures under this section shall be in accordance
    21  with the act of June 3, 1937 (P.L.1333, No.320), known as the
    22  "Pennsylvania Election Code."
    23     Section 4.  Section 505 of the act, amended July 11, 1990
    24  (P.L.450, No.109), is amended to read:
    25  Section 505.  Bonds.
    26     (a)  With the exception of municipalities operating landfills
    27  solely for municipal waste not classified hazardous, prior to
    28  the commencement of operations, the operator of a municipal or
    29  residual waste processing or disposal facility or of a hazardous
    30  waste storage, treatment or disposal facility for which a permit
    19990S0399B0409                  - 4 -

     1  is required by this section shall file with the department a
     2  bond for the land affected by such facility on a form prescribed
     3  and furnished by the department. Such bond shall be payable to
     4  the Commonwealth and conditioned so that the operator shall
     5  comply with the requirements of this act, the act of June 22,
     6  1937 (P.L.1987, No.394), known as "The Clean Streams Law," the
     7  act of May 31, 1945 (P.L.1198, No.418), known as the "Surface
     8  Mining Conservation and Reclamation Act," the act of January 8,
     9  1960 (1959 P.L.2119, No.787), known as the "Air Pollution
    10  Control Act," and the act of November 26, 1978 (P.L.1375,
    11  No.325), known as the "Dam Safety and Encroachments Act." The
    12  department may require additional bond amounts for the permitted
    13  areas should such an increase be determined by the department to
    14  be necessary to meet the requirements of this act. The amount of
    15  the bond required shall be in an amount determined by the
    16  secretary based upon the total estimated cost to the
    17  Commonwealth of completing final closure according to the permit
    18  granted to such facility and such measures as are necessary to
    19  prevent adverse effects upon the environment; such measures
    20  include but are not limited to satisfactory monitoring, post-
    21  closure care, and remedial measures. The bond amount shall
    22  reflect the additional cost to the Commonwealth which may be
    23  entailed by being required to bring personnel and equipment to
    24  the site. All permits shall be bonded for at least [$10,000]
    25  $50,000. Liability under such bond shall be for the duration of
    26  the operation, and for a period of up to [ten] 15 full years
    27  after final closure of the permit site. Such bond shall be
    28  executed by the operator and a corporate surety licensed to do
    29  business in the Commonwealth and approved by the secretary:
    30  Provided, however, That the operator may elect to deposit cash,
    19990S0399B0409                  - 5 -

     1  certificates of deposit, automatically renewable irrevocable
     2  letters of credit which are terminable only upon 90 days written
     3  notice to the operator and the department, or negotiable bonds
     4  of the United States Government or the Commonwealth of
     5  Pennsylvania, the Pennsylvania Turnpike Commission, the General
     6  State Authority, the State Public School Building Authority, or
     7  any municipality within the Commonwealth, with the department in
     8  lieu of a corporate surety. The cash amount of such deposit,
     9  irrevocable letters of credit or market value of such securities
    10  shall be equal at least to the sum of the bond. The secretary
    11  shall, upon receipt of any such deposit of cash or negotiable
    12  bonds, immediately place the same with the State Treasurer,
    13  whose duty it shall be to receive and hold the same in the name
    14  of the Commonwealth, in trust, for the purposes for which such
    15  deposit is made. The State Treasurer shall at all times be
    16  responsible for the custody and safekeeping of such deposits.
    17  The operator making the deposit shall be entitled from time to
    18  time to demand and receive from the State Treasurer, on the
    19  written order of the secretary, the whole or any portion of any
    20  collateral so deposited, upon depositing with him, in lieu
    21  thereof, other collateral of the classes herein specified having
    22  a market value at least equal to the sum of the bond, also to
    23  demand, receive and recover the interest and income from said
    24  negotiable bonds as the same becomes due and payable: Provided,
    25  however, That where negotiable bonds, deposited as aforesaid,
    26  mature or are called, the State Treasurer, at the request of the
    27  permittee, shall convert such negotiable bonds into such other
    28  negotiable bonds of the classes herein specified as may be
    29  designated by the permittee: And provided further, That where
    30  notice of intent to terminate a letter of credit is given, the
    19990S0399B0409                  - 6 -

     1  department shall, after 30 days written notice to the operator
     2  and in the absence of a replacement of such letter of credit
     3  within such 30-day period by the operator with other acceptable
     4  bond guarantees provided herein, draw upon and convert such
     5  letter of credit into cash and hold it as a collateral bond
     6  guarantee. In addition to criteria contained in department
     7  regulations governing the adjustment of bond or trust amounts
     8  and bond forfeiture, the department may require an operator to
     9  deposit additional bond or trust amounts based on the compliance
    10  history of the facility.
    11     (a.1)  The department may provide by regulation that the
    12  amount of the bond required also reflect the potential
    13  liabilities and costs associated with the transportation of
    14  solid waste to a facility.
    15     (b)  In the case of applications for permits where the
    16  department determines that the operations are reasonably
    17  anticipated to continue for a period of at least ten years from
    18  the date of application, the operator may elect to deposit
    19  collateral and file a collateral bond as provided in subsection
    20  (a) according to the following phase deposit schedule. The
    21  operator shall, prior to commencing operations, deposit
    22  [$10,000] $50,000 or [25%] 50% of the amount of the bond
    23  determined under subsection (a), whichever is greater. The
    24  operator shall, thereafter, annually deposit 10% of the
    25  remaining bond amount for a period of ten years. Interest
    26  accumulated by such collateral shall become a part of the bond.
    27  The department may require additional bonding at any time to
    28  meet the intent of subsection (a). The collateral shall be
    29  deposited in trust, with the State Treasurer as provided in
    30  subsection (a) or with a bank, selected by the department, which
    19990S0399B0409                  - 7 -

     1  shall act as trustee for the benefit of the Commonwealth,
     2  according to rules and regulations promulgated hereunder, to
     3  guarantee the operator's compliance with this act and the
     4  statutes enumerated in subsection (a). The operator shall be
     5  required to pay all costs of the trust. The collateral deposit,
     6  or part thereof, shall be released of liability and returned to
     7  the operator, together with a proportional share of accumulated
     8  interest, upon the conditions of and pursuant to the schedule
     9  and criteria for release provided in this act.
    10     (c)  The operator shall, prior to commencing operations on
    11  any additional land exceeding the estimate made in the
    12  application for a permit, file an additional application and
    13  bond. Upon receipt of such additional application and related
    14  documents and information as would have been required for the
    15  additional land had it been included in the original application
    16  for a permit and should all the requirements of this act be met
    17  as were necessary to secure the permit, the secretary shall
    18  promptly issue an amended permit covering the additional acreage
    19  covered by such application, and shall determine the additional
    20  bond requirement therefor.
    21     (d)  If the operator abandons the operation of a municipal or
    22  residual waste processing or disposal facility or a hazardous
    23  waste storage, treatment or disposal facility for which a permit
    24  is required by this section or if the permittee fails or refuses
    25  to comply with the requirements of this act in any respect for
    26  which liability has been charged on the bond, the secretary
    27  shall declare the bond forfeited and shall certify the same to
    28  the Department of Justice which shall proceed to enforce and
    29  collect the amount of liability forfeited thereon, and where the
    30  operation has deposited cash or securities as collateral in lieu
    19990S0399B0409                  - 8 -

     1  of a corporate surety, the secretary shall declare said
     2  collateral forfeited and shall direct the State Treasurer to pay
     3  said funds into the Waste Abatement Fund. Should any corporate
     4  surety fail to promptly pay, in full, forfeited bond, it shall
     5  be disqualified from writing any further surety bonds under this
     6  act.
     7     (e)  Prior to the issuance of any license for the
     8  transportation of hazardous waste, the applicant for a license
     9  shall file with the department a collateral bond on a form
    10  prescribed and furnished by the department. Such bond shall be
    11  payable to the Commonwealth and conditioned upon compliance by
    12  the licensee with every requirement of this act, rule and
    13  regulation of the department, order of the department and term
    14  and condition of the license. The amount of the bond required
    15  shall be in an amount determined by the secretary, but in an
    16  amount no less than [$10,000] $50,000. The department may
    17  require additional bond amounts if the department determines
    18  such additional amounts are necessary to guarantee compliance
    19  with this act. The licensee may elect to deposit cash or
    20  automatically renewable irrevocable letters of credit which are
    21  terminable only upon 90 days written notice to the operator and
    22  the department, or negotiable bonds of the United States
    23  Government or the Commonwealth of Pennsylvania, the Pennsylvania
    24  Turnpike Commission, the General State Authority, the State
    25  Public School Building Authority, or any municipality within the
    26  Commonwealth. No corporate surety bond is authorized by this
    27  subsection. The cash amount of such deposit, irrevocable letters
    28  of credit, or market value of such securities shall be equal at
    29  least to the sum of the bond. The secretary shall, upon receipt
    30  of any such deposit of cash or negotiable bonds, immediately
    19990S0399B0409                  - 9 -

     1  place the same with the State Treasurer, whose duty it shall be
     2  to receive and hold the same in the name of the Commonwealth, in
     3  trust, for the purposes for which such deposit is made. The
     4  State Treasurer shall at all times be responsible for the
     5  custody and safekeeping of such deposits. The licensee making
     6  the deposit shall be entitled from time to time to demand and
     7  receive from the State Treasurer, on the written order of the
     8  secretary, the whole or any portion of any collateral so
     9  deposited, upon depositing with him, in lieu thereof, other
    10  collateral of the classes herein specified having a market value
    11  at least equal to the sum of the bond, also to demand, receive
    12  and recover the interest and income from said negotiable bonds
    13  as the same becomes due and payable: Provided, however, That
    14  where negotiable bonds, deposited as aforesaid, mature or are
    15  called, the State Treasurer, at the request of the licensee,
    16  shall convert such negotiable bonds into such other negotiable
    17  bonds of the classes herein specified as may be designated by
    18  the licensee: And provided further, That where notice of intent
    19  to terminate a letter of credit is given, the department shall,
    20  after 30 days written notice to the licensee and in the absence
    21  of a replacement of such letter of credit within such 30-day
    22  period by the licensee with other acceptable bond guarantees
    23  provided herein, draw upon and convert such letter of credit
    24  into cash and hold it as a collateral bond guarantee. Liability
    25  under such bond shall be for the duration of the license and for
    26  a period of one year after the expiration of the license.
    27     (f)  Notwithstanding any other provisions of this act, when
    28  an application for the land application of sewage sludge is made
    29  by a municipality or a municipal authority, the filing of a bond
    30  with the department shall not be required as a condition for
    19990S0399B0409                 - 10 -

     1  issuance of a permit to the municipality or municipal authority
     2  for the application of the sewage sludge for land reclamation or
     3  agricultural utilization purposes.
     4     Section 5.  This act shall take effect in 60 days.


















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