THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE RESOLUTION

INTRODUCED BY BRUBAKER, BOSCOLA, ARGALL, RAFFERTY, O'PAKE, WASHINGTON, MUSTO, COSTA, M. WHITE, TARTAGLIONE, YAW, LEACH, FERLO, ALLOWAY, D. WHITE, EARLL, WAUGH, VANCE AND PICCOLA, DECEMBER 14, 2009

REFERRED TO AGRICULTURE AND RURAL AFFAIRS, DECEMBER 14, 2009  

A RESOLUTION

Directing the Legislative Budget and Finance Committee to study

the costs to achieve the Chesapeake Bay Program nutrient load

reductions required from this Commonwealth's agricultural

sources and to evaluate programs and funding strategies that

enhance cost-effective nutrient reductions while protecting

the economic viability of this Commonwealth's agricultural

sector.

WHEREAS, The Chesapeake Bay is the nation's largest estuary,

with its watershed spanning 64,000 square miles, including parts

of six states and the District of Columbia; and

WHEREAS, The Environmental Protection Agency (EPA) has found,

through numerous studies of the Chesapeake Bay, that excess

nutrients from agricultural development, population growth and

discharges from wastewater treatment plants, along with

overharvesting, habitat loss and disease, have contributed to an

overall decline in the aquatic health and environmental quality

of the bay; and

WHEREAS, Portions of the Chesapeake Bay and its tidal rivers

are listed as impaired waters under the Federal Water Pollution

Control Act (62 Stat. 1155, 33 U.S.C. § 1251 et seq.), and the

EPA is developing a basin-wide total maximum daily load which

will take effect December 2010 and which will mandate that the

Commonwealth develop a State Implementation Plan to achieve its

allocation; and

WHEREAS, The Commonwealth's Chesapeake Bay Tributary Strategy

developed by the Department of Environmental Protection

describes current nutrient reduction goals, including 25,000,000

pounds per year of nutrient reductions from agricultural lands,

nearly five times the reductions required of sewage treatment

plants; and

WHEREAS, Last year, Senate Resolution No. 224, Printer's No.

1703 (2008), directed the Legislative Budget and Finance

Committee to conduct a Phase One study to estimate the cost of

compliance for wastewater treatment plants and assess the

methods by which wastewater treatment plants may achieve

compliance, including nutrient trading; and

WHEREAS, The study revealed that the capital cost of

compliance for wastewater treatment plants was $1,400,000,000,

well in excess of available funding; and

WHEREAS, The study revealed that the nutrient trading program

as currently constituted has had, and is likely to have, little

impact for a number of regulatory, structural and market

reasons; and

WHEREAS, The study found that the cost to the agricultural

community for meeting "baseline requirements," as variously

defined by erosion and sedimentation regulations, nutrient

management regulations and concentrated animal feeding operation

regulations, is largely unknown; and

WHEREAS, The relative cost effectiveness of nutrient

reductions from agricultural lands and other nonpoint sources is

not well quantified, and the Commonwealth would benefit from a

determination of these relative costs to guide the wise

allocation of limited funding; and

WHEREAS, The Pennsylvania Infrastructure Investment Authority

is currently studying the merits and forms that a Nutrient

Credit Exchange may take to encourage participation in nutrient

trading by wastewater treatment plants; therefore be it

RESOLVED, That the Senate direct the Legislative Budget and

Finance Committee to conduct a Phase Two continuation of its

study under Senate Resolution No. 224, Printer's No. 1703

(2008), to estimate the cost to meet the agricultural source

nutrient reduction goals of the Chesapeake Bay Tributary

Strategy and agricultural allocations to be defined in the State

Implementation Plan; and be it further

RESOLVED, That the committee identify methods employed in

other states to reduce loads from agricultural sources and make

findings as to their applicability and impact to the

agricultural community of this Commonwealth; and be it further

RESOLVED, That the committee evaluate the potential of new

technology generally to address nutrient loads from agricultural

sources at a reduced cost; and be it further

RESOLVED, That the committee make recommendations for

preferred programs for the agricultural community that overcome

structural obstacles, encourage participation, accelerate

bringing agricultural lands to baseline, facilitate the

application of cost-effective technology and stimulate the

generation of nutrient credits that are valued by point sources;

and be it further

RESOLVED, That the committee recommend a schedule for

implementation of the preferred programs to be included in a

series of two-year milestones for action under the State

Implementation Plan as agreed to by the Chesapeake Executive

Council and required under EPA administration of the basin-wide

total maximum daily load; and be it further

RESOLVED, That the committee-preferred programs be shaped to

the extent practicable to integrate with a Nutrient Credit

Exchange or other selected water quality trading program

structure, create income incentives for the agricultural

community to generate credits, utilize those credits to reduce

the high capital cost of compliance for wastewater treatment

plants and make more effective use of public funds; and be it

further

RESOLVED, That the committee survey the findings and programs

of academic institutions and other states with respect to the

cost of nutrient reductions from nonagricultural runoff, legacy

sediments and air deposition; and be it further

RESOLVED, That the committee compare these programs and costs

to point source and agricultural source reduction cost estimates

developed in Phases One and Two and to the State Implementation

Plan; and be it further

RESOLVED, That the committee determine whether additional

evaluation is appropriate to enhance the Commonwealth's programs

in these areas in order to promote overall nutrient-reduction

effectiveness and more efficient allocation of public funds; and

be it further

RESOLVED, That the committee report its findings, conclusions

and recommendations to the Senate by November 30, 2010.