HB76 Alabama 2017 Session

Summary

Primary Sponsor

Ron Johnson

Republican

Session

Regular Session 2017

Title

Environmental Management Dept., centralized waste treatment facilities, permits, bond or financial assurance further provided for, provisions for fees based on cost to treat repealed, Secs. 22-25C-1, 22-25C-2 am'd.

Summary

HB76 would require bond-based financial assurances for centralized waste treatment facilities, repeal ongoing treatment fees, and establish a fund to help close facilities with refunds for pre-enactment fees.

What This Bill Does

It changes how facility closure is funded by requiring a performance bond or other financial assurance for permits (with certain exemptions) and makes that bond forfeitable if the owner abandons, ceases operation, or fails to maintain the facility. It repeals the 5% fee for treating waste and redirects focus to bond-based closure funding, while providing refunds of any fees collected before the act. It creates a Centralized Waste Treatment Facility Rehabilitation Fund to pay for closing facilities and remediation, with a $10 million threshold that can suspend new financial assurance requirements if reached and resume them if the fund falls below the threshold; ADEM would set rules to implement these changes. The act would take effect immediately.

Who It Affects

• Facility owners/operators of centralized waste treatment facilities: must post a performance bond or other financial assurance to cover closure and remediation, may face forfeiture of that bond if they abandon or improperly operate the facility, and would no longer pay the 5% treatment fee (with refunds due for pre-enactment fees). They must provide and periodically update closure cost estimates.
• ADEM and state environmental program: charged with enforcing the new bond requirements, managing the Centralized Waste Treatment Facility Rehabilitation Fund, suspending/resuming financial assurance requirements based on the fund’s balance, and issuing rules to implement the act.

Key Provisions

• Amendments to Sections 22-25C-1 and 22-25C-2 to require centralized waste treatment facilities to post a performance bond or financial assurance, with specific exemptions.
• Bond or other financial assurance may be forfeited when the owner/operator abandons, ceases operation, or fails to properly maintain the facility, to be used for closing the facility and paying remediation costs.
• Owners/operators must provide and periodically update two detailed closure cost estimates and re-evaluate if changes significantly increase closure costs.
• Repeal of the 5% fees for treating waste and other materials; refunds must be issued for fees collected before the act’s effective date.
• Creation of the Centralized Waste Treatment Facility Rehabilitation Fund, funded by the fee (as described) and managed by ADEM, used exclusively for closing facilities and remediation.
• A fund balance threshold of $10,000,000 triggers suspension of new financial assurance requirements; if the fund drops below the threshold, financial assurances must be resumed.
• ADEM is required to promulgate rules to implement and administer these provisions.
• The act becomes effective immediately upon passage and approval.

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