Section 287.331. Bond amount determination

(a) A person or municipality shall calculate the proposed amount of total bond liability based upon the total estimated cost to the Commonwealth for the following:

(1) To complete final closure of the facility under the act, the environmental protection acts, this title, the terms and conditions of the permit and orders issued by the Department.

(2) To take measures necessary to prevent adverse effects upon public health and safety, public welfare and the environment, during operation and after closure, until the bond is released as provided by this subchapter.

(b) A person or municipality that is required to file a bond under this subchapter, shall prepare a written estimate of the cost of closing the facility under this subchapter, and all other related costs necessary to comply with the requirements of this subchapter, for the purpose of determining the bond amount required by this subchapter. The related costs shall include direct and indirect expenses for taking measures during the period preceding final closure to prevent and correct adverse environmental effects from the operation of the facility.

(1) The cost estimate shall incorporate the likely increase in cost in the future, including inflation, as required by the Department.

(2) The Department may require adjustments to the cost estimate at any time to meet the requirements of this chapter.

(3) The operator shall revise the cost estimate when a change in the closure plan or in the measures necessary to prevent adverse environmental effects increase the prior cost estimate.

(4) The written cost estimate shall be submitted to the Department on a form prepared by the Department.

(5) Within 90 days of closure of the facility, the operator shall prepare an updated written cost estimate. A new bond shall be submitted to the Department within 90 days of closure if the updated cost estimate indicates an increase from the prior estimate required by the Department. The bond shall reflect the updated cost estimate.

(c) The bond amount shall be calculated using guidelines prepared by the Department and shall be based on factors which include the following:

(1) The costs to the Commonwealth to conduct closure and postclosure care activities as determined by the cost estimate for closure and postclosure care under this section, as well as costs of monitoring, sampling and analysis, and soil and leachate analysis, facility security measures, remedial abatement measures, and postclosure restoration and maintenance measures.

(2) The nature and size of the facility and type of operation.

(3) The quantity, type and nature of the waste to be managed at the facility.

(4) The costs related to size of the surface area, the topography and geology of the area and the land uses around the facility.

(5) The additional estimated costs to the Department which may arise from applicable public contracting requirements or the need to bring personnel and equipment to the permit area after its abandonment by the operator to perform restoration and abatement work.

(6) The additional estimated costs incident to or necessary and proper for the satisfactory completion of the requirements of the act, the environmental protection acts, this title, the terms and conditions of the permit and orders of the Department.

(7) The additional estimated cost for at least the next 3 years which is anticipated to be caused by inflation, determined by averaging the annual Implicit Price Deflator for Gross National Product published by the United States Commerce Department, or a superseding standard, for at least the prior 3 years.

(8) The compliance history of the operator, applicant, permittee and related parties in § § 287.124 and 287.125 (relating to identification of interests; and compliance information).

(d) The bond amount shall cover areas where residual waste disposal or processing activities are to be conducted.

(e) The minimum bond amount is $10,000.

(f) The Department will review the bond amount calculated by the operator and will not issue a permit, approve a closure plan, or otherwise authorize operation of residual waste processing and disposal facilities under this article prior to approval of the bond amount.

Notation

Cross References

This section cited in 25 Pa. Code § 287.311 (relating to new facilities); 25 Pa. Code § 287.312 (relating to existing facilities); 25 Pa. Code § 287.326 (relating to phased deposit of collateral); 25 Pa. Code § 287.332 (relating to bond amount adjustments); 25 Pa. Code § 287.341 (relating to release of bonds); 25 Pa. Code § 288.283 (relating to annual operation report); 25 Pa. Code § 289.303 (relating to annual operation report); 25 Pa. Code § 293.252 (relating to annual operation report); 25 Pa. Code § 295.272 (relating to annual operation report); and 25 Pa. Code § 297.262 (relating to annual operation report).