HB113 Alabama 2018 Session

Summary

Primary Sponsor

Ron Johnson

Republican

Session

Regular Session 2018

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facilities, permits, bond or financial assurance further provided for, provisions for fees based on cost to treat repealed, Secs. 22-25C-1, 22-25C-2 am'd.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

HB 113 changes how Alabama requires bonds and funding for closing centralized waste treatment facilities, creating a state fund, redefining fees, and providing refunds for pre-enactment payments.

What This Bill Does

The bill requires ADEM to require a performance bond or other financial assurance before permit issuance or modification for centralized waste treatment facilities, with certain exceptions. Bonds can be forfeited to cover closing and remediation if the owner abandons, ceases operation, or fails to maintain the facility. It also requires owners to submit at least two detailed closure cost estimates with permit applications and to update them if closure costs rise. The bill creates the Centralized Waste Treatment Facility Rehabilitation Fund, funded by a 5% fee on treatment costs, to cover closing costs; once the fund reaches $10 million, some financial assurance requirements can be suspended, and if the fund drops below that level, assurances resume. It also requires refunds of any fees collected before the act’s effective date and directs ADEM to adopt implementing rules.

Who It Affects

• Owners/operators of centralized waste treatment facilities: must post bonds, provide closure cost estimates, may have bond forfeiture used for closing/remediation, and may see fee requirements suspended once the fund threshold is reached; eligible for refunds of pre-enactment fees.
• Alabama Department of Environmental Management (ADEM): administers bonds/assurances, manages the new fund, enforces forfeiture and closure provisions, and issues implementing rules.
• Communities and the environment near centralized waste treatment facilities: potential closing and remediation funding is dedicated to facility closures, via the new fund.
• Payors of pre-enactment fees: eligible for refunds of fees collected before the act.

Key Provisions

• 22-25C-1(a): Requires ADEM to require a performance bond or other financial assurance prior to permit issuance or modification for facilities processing industrial waste, with exceptions for certain owner/source relationships.
• 22-25C-1(b): Bond/financial assurance may be forfeited and used to close the facility and pay remediation when the operator abandons, ceases operation, or fails to maintain the facility.
• 22-25C-1(c): Owners must provide at least two detailed closure cost estimates with permit applications and must re-evaluate and update estimates if closure costs increase during the facility’s life.
• 22-25C-2(a): Each permitted facility must charge a 5% fee of the facility’s treatment costs, remitted quarterly to the Centralized Waste Treatment Facility Rehabilitation Fund to cover closing costs.
• 22-25C-2(a): The fund is managed by ADEM and used exclusively to close facilities; once the fund reaches $10,000,000, certain financial assurance requirements may be suspended.
• 22-25C-2(b): If the fund falls below $10,000,000, the suspended financial assurance requirements are resumed until the threshold is restored.
• 22-25C-2(c): ADEM must promulgate rules to implement and administer these provisions.
• Section 2: Any fees collected before the act’s effective date are to be refunded to the facility owner/operator.
• Section 3: The act becomes effective immediately upon enactment.

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