The powerful explosives had apparently been stashed in the locker since August. Police said the material no longer posed any threat.
Police Lt. Tom Fitzpatrick told reporters on the scene that the amount of explosive found would have caused "a lot of damage."
Authorities found the material around 10:30 a.m. Friday inside the bus terminal just a few blocks from city hall.
The explosives were discovered when payment for the locker where the explosives were found expired, Action 6 news reported.
The bus terminal was evacuated while investigators dusted for fingerprints.
Passengers were diverted to a nearby station, though some elected to wait outside the station until it was reopened hours later.
The explosive was placed in a locker on Oct. 3 along with 1,000 feet of military detonation cord. However, no detonators were found in the locker.
In a separate incident, two men that police described as Middle Eastern were detained in nearby Plymouth, Pa., by federal immigration authorities after being "found with detailed video footage of the Sears Tower in Chicago," the Pottstown Mercury reported Wednesday.
Plymouth Police arrested the men after they responded to a call from a restaurant manager reporting a tractor trailer illegally dumping a pile of furniture behind the restaurant.
Police then confronted the vehicle's operator, later identified as Moshe Elmakias, 30, who was approaching the truck from across the street when authorities arrived. Another man, Ron Katar, 23, exited the truck's sleeper cab after police arrived on the scene.
A white female, Ayelet Reisler, 23, was accompanying Elmakias when police arrived, though reports said she "began walking in a different direction, acting as if she were not with him," according to the Mercury.
Reisler, detained and checked for identification, was found carrying a German passport in her name and medication in a different name, police told the Mercury.
Police then inspected the vehicle. Among the items found in the truck was a video camera. The tape inside the camera contained video footage of the Chicago skyline with zoomed-in shots of the Sears Tower.
The FBI was notified, and all three subjects were taken to the Plymouth police station. They were then processed through National Crime Information Center and detained.
The two men were detained by INS and transported to a federal facility. Reisler was reportedly released.
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