HB447 Alabama 2012 Session

Summary

Primary Sponsor

Merika ColemanSenator

Democrat

Co-Sponsor

Ron Johnson

Session

Regular Session 2012

Title

Environmental Management Department, entities requesting permit for processing or treatment of toxic substances or hazardous waste, performance bond required

Summary

HB447 requires certain centralized waste treatment facilities to post financial assurances for closure, collect a 5% treatment fee to fund rehabilitation, and manage a state fund to close facilities if needed.

What This Bill Does

Before issuing or modifying a permit, ADEM must require financial assurances for defined centralized waste treatment facilities to cover closure costs. Facilities must charge a 5% fee on treatment costs and remit it to a new ADEM-managed Centralized Waste Treatment Facility Rehabilitation Fund, which will be used solely to close facilities. The fund has a $10,000,000 threshold; once reached, permit applicants' financial assurances may be suspended until the fund drops below that amount. Facility owners must provide two detailed closure cost estimates before permit issuance and update these estimates if closure costs change; the bond can be forfeited if the owner abandons, ceases operation, or fails to properly maintain the facility.

Who It Affects

• Centralized waste treatment facilities defined by federal guidelines applying for or modifying permits, who must post bonds/financial assurances and pay the 5% fee.
• Facility owners or operators of such facilities, who must manage closure cost estimates, maintain compliance, and risk bond forfeiture for noncompliance.
• The Alabama Department of Environmental Management (ADEM), which administers the fund, collects fees, and creates implementing rules.

Key Provisions

• Section 1(a): Before permit issuance or modification, ADEM must require financial assurance for certain centralized waste treatment facilities (per 40 CFR Part 437).
• Section 1(a) exception: facilities that treat waste only from sources owned or operated by the facility owner, or under contract with such sources, are exempt.
• Section 1(b): The bond/financial assurance may be forfeited if the owner abandons the facility, ceases operation, or fails to maintain it to comply with regulations.
• Section 1(c)(1-2): The owner/operator must have at least two current written closure cost estimates; must submit these with the permit application and update them if closure costs rise.
• Section 2(a): Each permitted facility must charge a 5% fee of treatment costs and remit it quarterly to the Centralized Waste Treatment Facility Rehabilitation Fund.
• Section 2(b): The fund is created and managed by ADEM and used solely to close facilities; it reaches $10,000,000 before allowing suspension of financial assurances.
• Section 2(b): If the fund drops below the threshold, financial assurances must be resumed until the fund is restored.
• Section 3: ADEM will promulgate rules to implement these provisions.
• Section 4: The act becomes effective on the first day of the third month after passage.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Environmental Management Department