S1341B2282A08387 DMS:SRA 06/30/08 #90 A08387
AMENDMENTS TO SENATE BILL NO. 1341
Sponsor: REPRESENTATIVE PERRY
Printer's No. 2282
1 Amend Title, page 1, line 5, by striking out "and" where it
2 appears the first time
3 Amend Title, page 1, line 6, by removing the period after
4 "Authority" and inserting
5 and for the Nutrient Reduction Credit Trading
6 Program; and establishing the Nutrient Reduction
7 Credit Trading Program Board.
8 Amend Sec. 3, page 2, by inserting after line 30
9 "Department." The Department of Environmental Protection of
10 the Commonwealth.
11 Amend Bill, page 9, by inserting between lines 5 and 6
12 Section 10. Nutrient Reduction Credit Trading Program.
13 (a) Establishment.--The department shall establish the
14 Nutrient Reduction Credit Trading Program for the Chesapeake Bay
15 watershed and shall administer it in accordance with this
16 section.
17 (b) Program board.--
18 (1) The Nutrient Reduction Credit Trading Program Board
19 is established. The purpose of the board shall be to manage
20 and provide oversight to the Nutrient Reduction Credit
21 Trading Program.
22 (2) The board shall consist of:
23 (i) The Secretary of Environmental Protection, or a
24 designee.
25 (ii) The Secretary of Agriculture, or a designee.
26 (iii) The Executive Director of the authority, or a
27 designee.
28 (iv) One representative from county conservation
29 districts appointed by the State Conservation Commission.
30 (v) One representative from municipal authorities
31 representing wastewater treatment facilities chosen by
32 the Pennsylvania Municipal Authorities Association.
33 (vi) One representative of the housing industry
34 chosen by the Pennsylvania Builders Association.
35 (vii) One water quality engineer appointed by the
36 chairman of the Joint Legislative Air and Water Pollution
1 Control and Conservation Committee.
2 (viii) One representative from the agricultural
3 sector appointed by the Secretary of Agriculture.
4 (ix) One representative from an environmental
5 organization representing an environmental organization
6 related to the Chesapeake Bay appointed by the Secretary
7 of Environmental Protection.
8 (x) Three representatives of local government, one
9 representing boroughs, one representing townships and one
10 representing cities. These representatives shall be
11 chosen by their respective Statewide organizations.
12 (xi) One representative from the Pennsylvania
13 delegation to the Chesapeake Bay Commission appointed by
14 members of the Pennsylvania delegation to the commission.
15 (xii) One representative from the United States
16 Department of Agriculture Natural Resources Conservation
17 Service appointed by the service's State conservationist
18 for Pennsylvania.
19 (c) Chairperson.--The board shall elect a chairperson from
20 among its members.
21 (d) Powers and duties.--The board will adopt policies and
22 implement programs necessary to manage the Nutrient Reduction
23 Credit Trading Program for the Chesapeake Bay watershed. The
24 board shall have the following specific duties and
25 responsibilities:
26 (1) To purchase nutrient reduction credits from
27 wastewater treatment facilities or agricultural or other
28 sources. The board shall utilize $50,000,000 in funds
29 provided by the Environmental Protection Agency and
30 previously approved by the authority board of directors for
31 use in the establishment of a nutrient credit trading
32 program. Credits shall be available for purchase only after
33 department certification that nutrient and sediment
34 reductions have occurred or will occur upon implementation of
35 the proposed nutrient reduction project. The board shall
36 cooperate with the department and the Department of
37 Agriculture or their agents to verify credits from wastewater
38 treatment facilities and agricultural and other sources.
39 (2) To offer for sale nutrient reduction credits to
40 wastewater treatment facilities, developers, municipalities,
41 nonpoint source entities and others required to meet nutrient
42 reductions.
43 (3) (i) To establish a nutrient reduction credit bank
44 to provide for the purchase and sale of credits within
45 the Nutrient Reduction Credit Trading Program. The board
46 will establish procedures and set monetary assessments to
47 generate a system of nutrient credits that can be used by
48 wastewater treatment facilities and others to reach
49 compliance with nutrient reduction requirements
50 identified by the department and to allow for new growth.
51 (ii) Nothing in this subsection shall be construed
52 to prohibit the private purchase and sale of credits
53 within the trading market.
54 (4) For wastewater treatment facilities, to establish
55 phased payment schedules, provided the payment amounts will
56 fund all annual reductions that are necessary to meet
57 nutrient reduction requirements identified by the department
58 as follows:
59 (i) The payment amounts for new facilities shall be
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1 sufficient to fund all necessary annual reductions given
2 the facilities' anticipated design flow and connections
3 schedule so that zero net discharge requirements are met.
4 (ii) The bank shall use these funds to provide
5 grants to the agricultural sector to support projects
6 that will implement the highest value nutrient reduction
7 best management practices.
8 (iii) Preference shall be given to those nutrient
9 reduction best management practices that provide the
10 greatest nutrient reductions for the least amount of cost
11 and that, once implemented, generate credits on a
12 continuing annual basis.
13 (iv) Excess credits generated from the transactions
14 shall be made available for purchase by wastewater
15 treatment facilities, upon request, if needed to meet
16 nutrient effluent limits.
17 (5) To offer for sale excess credits held by the bank
18 identified under paragraph (3), but shall hold a minimum
19 percentage of credits as a reserve balance to offset any
20 failures or loss of nutrient reduction credits within the
21 bank. In addition to this reserve, the board shall hold a
22 minimum percentage of credits in reserve for new growth. The
23 board shall set these reserves at percentages it deems
24 necessary, but in no instance shall the reserve for new
25 growth be lower than 5% of all credits held by the bank.
26 (6) To process credits on a continual basis. The board
27 shall establish and update as necessary the selling price of
28 nutrient reduction credits and post the information regarding
29 cost and methods of purchasing and selling credits on the
30 Internet website of the authority. The board shall post on
31 the Internet website of the authority a list of those
32 projects that have been certified to generate credits by the
33 department.
34 (7) To establish overall time frames for the use of
35 nutrient reduction credits purchased through the bank
36 necessary to meet the compliance requirements established by
37 the department. The board shall develop and implement a
38 process that allows credits to be purchased in advance of
39 when they may be needed to ensure compliance with the
40 requirements established by the department.
41 (8) To establish a subcommittee to provide technical
42 assistance to entities proposing credit-generating projects.
43 Members of the subcommittee shall be appointed by the board
44 and shall have appropriate technical training and experience.
45 The subcommittee shall conduct a technical review of credit
46 proposals consistent with the department's existing guidance
47 on credit proposal reviews and make a recommendation
48 regarding credit certification. Proposals that have undergone
49 technical review by the subcommittee and are recommended by
50 the subcommittee for certification shall be submitted by the
51 board to the department for review. The department shall
52 render a decision on the proposal within 60 days of receipt
53 of the submission from the board. A proposal on which the
54 department fails to act within this time period shall be
55 deemed approved.
56 (9) To establish procedures to allow the nutrient
57 reduction credit bank to act as a clearinghouse and make
58 available information on the availability of nutrient
59 reduction credits from public and private sector
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1 organizations other than the nutrient reduction credit bank.
2 (e) Regulations.--The authority, the department and the
3 Department of Agriculture may jointly develop regulations as
4 necessary to implement the provisions of this act. The
5 regulations shall be promulgated in accordance with the act of
6 June 25, 1982 (P.L.633, No.181), known as the Regulatory Review
7 Act.
8 (f) Administration.--The authority shall provide all
9 necessary administrative and technical support for the operation
10 of the Nutrient Reduction Credit Trading Program and the
11 Nutrient Reduction Credit Trading Board. The authority may enter
12 into contracts to assist in administration of the bank, provide
13 technical assistance to entities proposing credit-generating
14 projects and provide all other necessary technical and
15 administrative support to the board.
16 (g) Definition.--As used in this section, the term "board"
17 means the Nutrient Reduction Credit Trading Program Board.
18 Amend Sec. 10, page 9, line 6, by striking out "10" and
19 inserting
20 11
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