HB 113

Under existing law, a centralized waste treatment facility is required to receive a permit from the Alabama Department of Environmental Management (ADEM) and to post a performance bond or other financial assurance in an amount sufficient to close the facility if the owner or operator ceases proper operation, abandons the facility, or fails to properly maintain the facility. In addition, each facility is required to charge a fee of five percent of the costs of the facility to treat industrial waste, industrial wastewater, or other material. The proceeds of the fees are required to be maintained in a fund by ADEM to pay the costs of closing a facility under the similar conditions as provided for the forfeiture of the bond or other financial assurance

This bill would further specify the forfeiture of the bond or financial assurance and repeal the provisions for fees. The bill would also provide for the refund of fees collected prior to the enactment of this bill

To amend Sections 22-25C-1 and 22-25C-2 of the Code of Alabama 1975, relating to centralized waste treatment facilities permitted by the Department of Environmental Management (ADEM); to further provide for the bond or financial assurance required by ADEM from the owners or operators and to delete the requirements for additional fees based on the costs of the facility to treat waste and other material in the facility; and to provide for refunds of fees collected prior to the effective date of this act.

Section 1

Sections 22-25C-1 and 22-25C-2 of the Code of Alabama 1975, are amended to read as follows:

§22-25C-1.

(a) Notwithstanding any provision of law, and except as provided in Section 22-25C-2, the Alabama Department of Environmental Management (ADEM), prior to the issuance of a permit or prior to a modification of an existing permit, shall require certain centralized waste treatment facilities, as defined by federal effluent guidelines set forth at 40 CFR Part 437, when applying for or modifying a permit for the operation of a facility that processes or treats industrial wastes, industrial wastewater, or used material to post a performance bond or other financial assurance in an amount sufficient to close the facility if the owner or operator ceases proper operation of the facility, abandons the facility, or fails to properly maintain the facility to ensure compliance with state environmental regulations. Notwithstanding the foregoing, this requirement shall not apply to waste treatment facilities which treat waste only from sources owned or operated by the owner of the waste treatment facilities or which treats waste pursuant to a contract at a waste treatment facility which also treats waste from sources owned or operated by the owner.

(b) The bond or other financial assurance may shall be declared forfeited if required by ADEM when the owner or operator abandons the facility, ceases operation of the facility, or fails to properly maintain the facility to ensure compliance with state environmental regulations and shall be used for the purpose of closing the facility in compliance with state environmental rules and to pay the costs of any remediation required.

(c)(1) The owner or operator shall have a minimum of two detailed written estimates, in current dollars, of the cost of hiring a third party to close a facility prior to issuance of a permit or modification of a permit. The owner or operator shall submit the closure cost estimates with the permit application and submit a copy of the estimates with the permit application.

(2) The owner or operator shall re-evaluate the closure cost estimate and the amount of financial assurance required if changes to the closure plan or facility conditions significantly increase the maximum cost of closure at any time during the active life of the facility. The owner or operator shall submit any updated cost estimates and documentation of the increase in financial assurances prior to initiating changes at the facility which would insignificantly increase the maximum cost of closure at any time during the active life of the facility.

(d) Failure of the obligor of the bond or financial assurance to provide service satisfactory to the department shall constitute a cause of action for recovery in a civil action at the instance of the department.

§22-25C-2.

(a) Each facility receiving a permit as provided in Section 22-25C-1 shall charge a fee that represents five percent of the costs of the facility to treat industrial waste, industrial wastewater, or other used material in the facility. The fee shall be remitted quarterly to the ADEM Centralized Waste Treatment Facility Rehabilitation Fund, which is hereby created. The fund shall be managed by ADEM for the purposes stated in Section 22-25C-1 requiring financial assurances upon the fund reaching a minimum threshold amount of ten million dollars ($10,000,000).

Notwithstanding anything to the contrary contained herein, the fund created herein shall be used exclusively and solely for purposes of closing a facility if the owner or operator ceases proper operation of the facility, abandons a facility, or fails to properly maintain the facility to ensure compliance with state environmental regulations.

(b) Upon the fund reaching the threshold amount, the requirements of permit applicants to provide financial assurances shall be suspended. If the fund falls below the threshold amount at the end of any fiscal year, financial assurances of the permit applicant described in Section 22-25C-1 shall be resumed until such time as ADEM determines that the threshold amount is restored to the fund.

(c) ADEM shall promulgate rules necessary to implement and administer the provisions of this chapter."

Section 2

Any fees collected pursuant to subsection (a) of Section 22-25C-2, Code of Alabama 1975, prior to amendment of the section by this act shall be refunded to the owner or operator of the centralized waste management facility that paid the fee.

Section 3

This act shall become effective immediately following its passage and approval by the Governor, or its otherwise becoming law.