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                                                      PRINTER'S NO. 1011

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 896 Session of 1999


        INTRODUCED BY WENGER, HOLL, HELFRICK, MADIGAN, WAUGH, STAPLETON,
           O'PAKE, BRIGHTBILL, ROBBINS, STOUT, PICCOLA, PUNT, SALVATORE,
           KASUNIC, WOZNIAK, COSTA AND RHOADES, MAY 3, 1999

        REFERRED TO AGRICULTURE AND RURAL AFFAIRS, MAY 3, 1999

                                     AN ACT

     1  Amending the act of December 12, 1994 (P.L.888, No.128),
     2     entitled "An act providing for the construction of six
     3     anaerobic manure digesters as demonstration projects at
     4     select locations in this Commonwealth; and providing for
     5     funding," further providing for the title, for legislative
     6     intent, for definitions, for development costs, for
     7     administration, for building and for funding.

     8     The General Assembly of the Commonwealth of Pennsylvania
     9  hereby enacts as follows:
    10     Section 1.  The title and sections 1, 2, 3 and 4 of the act
    11  of December 12, 1994 (P.L.888, No.128), known as the Anaerobic
    12  Manure Digesters Act, are amended to read:
    13                               AN ACT
     1  Providing for the construction of six anaerobic manure digesters
     2     as demonstration projects at select locations in this
     3     Commonwealth; [and] providing for funding and for the
     4     investigation, study, development and use of waste management
     5     technology.
     6  Section 1.  Short title.
     7     This act shall be known and may be cited as the [Anaerobic

     1  Manure Digesters] Agricultural Waste Technology Act.
     2  Section 2.  Legislative findings.
     3     The General Assembly finds and declares as follows:
     4         (1)  The development of [anaerobic manure] economically
     5     feasible waste digesters and waste technology across this
     6     Commonwealth [to reduce the nitrogen pollution caused by
     7     livestock manure] will enhance and encourage environmentally
     8     sound and economically feasible agricultural production
     9     practices and will result in [a public benefit.] numerous
    10     benefits to the agricultural community and society.
    11         (1.1)  The development of waste technology across this
    12     Commonwealth to produce energy, pathogen-free fertilizers,
    13     animal feed supplements and clean water will increase
    14     revenues for agricultural producers and provide economically
    15     feasible and environmentally sound methods of managing manure
    16     and other agricultural wastes and nutrients thereby
    17     benefiting the environment, the agricultural community and
    18     society.
    19         (2)  The purpose of this act is to [demonstrate the
    20     practical nature and the usefulness of anaerobic manure
    21     digesters so that Pennsylvania farmers will build digesters
    22     for their own use.] investigate, study and advance waste
    23     management systems and technologies which are environmentally
    24     sound and economically feasible and to develop programs which
    25     encourage and promote the use and development of these waste
    26     management techniques and technologies. Such programs will
    27     benefit the agricultural community and society. In addition,
    28     this act will assist those engaged in production agriculture
    29     to comply with the act of May 20, 1993 (P.L.12, No.6), known
    30     as the Nutrient Management Act, through the use of
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     1     environmentally sound waste technologies.
     2  Section 3.  Definitions.
     3     The following words and phrases when used in this act shall
     4  have the meanings given to them in this section unless the
     5  context clearly indicates otherwise:
     6     "Agricultural community."  Persons involved in production
     7  agriculture and agricultural processing facilities.
     8     "Agricultural processing facilities."  Facilities involved in
     9  the slaughter and/or processing of livestock or livestock
    10  products, milk or dairy products, poultry or poultry products
    11  and other facilities designated by the department.
    12     ["Anaerobic manure digester" or "digester."  A machine that
    13  allows manure to decompose anaerobically, releasing methane
    14  which is used to drive an electrical generator supplying power
    15  to the farm and surplus power which can be sold to an electric
    16  utility.]
    17     "Board."  The [Anaerobic Manure Digester] Agricultural Waste
    18  Technology Board.
    19     ["PEO."  The Pennsylvania Energy Office.]
    20     "Department."  The Department of Agriculture of the
    21  Commonwealth.
    22     "Digester."  A waste digester.
    23     "Production agriculture."  The management and use of farming
    24  resources for the production of agricultural crops, livestock or
    25  livestock products, milk or dairy products, poultry or poultry
    26  products or for practices designated by the department.
    27     "Secretary."  The Secretary of Agriculture of the
    28  Commonwealth.
    29     "Waste digester."  A process which through anaerobic or
    30  aerobic digestion, photosynthetic purification or a combination
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     1  of these processes, causes the decomposition of manure, animal
     2  carcasses, offal and other agricultural wastes and nutrients,
     3  resulting in the release of methane, which may be used to supply
     4  power for onsite use and surplus power capable of being sold to
     5  electric utilities or private electric companies.
     6     "Waste management technology."  Technology which the board
     7  determines will:
     8         (1)  facilitate the reduction or elimination of nitrogen,
     9     ammonia and phosphate pollution;
    10         (2)  decrease levels of carbon dioxide released into the
    11     atmosphere;
    12         (3) diminish or eliminate odors and pathogens associated
    13     with and being the natural result of agricultural production;
    14     or
    15         (4)  further the purpose of this act.
    16  [Section 4.  Development of anaerobic manure digesters.
    17     (a)  General rule.--
    18         (1)  The Commonwealth shall finance 80% of the cost of
    19     construction of up to six anaerobic manure digesters as
    20     demonstration projects at selected working farms in this
    21     Commonwealth where livestock is raised. Farmers utilizing
    22     digesters shall pay the remaining 20% of the cost of digester
    23     construction.
    24         (2)  After two years of successful digester operation,
    25     farmers shall repay funds advanced by the Commonwealth for
    26     digester construction in equal installments over 15 years
    27     with no interest charge.
    28         (3)  Should a digester fail to operate, farmers
    29     attempting to utilize that digester shall not be required to
    30     repay funds advanced by the Commonwealth for construction.
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     1     (b)  Application for demonstration projects.--An application
     2  form shall be prepared by the PEO for farmers or groups of
     3  farmers to request that a digester be built on their farms or
     4  built at a central location. On the application form, farmers or
     5  groups of farmers shall describe how they will use the digester
     6  to its maximum advantage.
     7     (c)  Inspections and demonstrations.--The following
     8  requirements shall apply to selected demonstration projects:
     9         (1)  The digesters shall be used continuously and shall
    10     be available for inspection by farmers and other members of
    11     the public.
    12         (2)  If a digester is built on a farm, the owner shall
    13     allow persons to visit at convenient times.
    14         (3)  The owner shall provide space for visitors and for
    15     appropriate research to be conducted on the digester's
    16     operation.
    17         (4)  Where a digester is built for use by several farms,
    18     it shall be constructed to allow for maximum public viewing.
    19     (d)  Design.--Each digester shall be designed so as to
    20  eliminate the use of complex equipment or machinery to allow
    21  most of the necessary maintenance to be performed solely by the
    22  farmer.]
    23     Section 2.  The act is amended by adding a section to read:
    24  Section 4.1.  Powers and duties of department.
    25     The department has the following powers and duties:
    26         (1)  To develop programs which promote education, use and
    27     development of economically and environmentally feasible
    28     waste digesters and waste management technology. This
    29     paragraph includes loan and grant programs.
    30         (2)  To work in concert with the board to continually
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     1     evaluate emerging practices, methods and technology regarding
     2     waste digesters and waste management technology.
     3         (3)  To promulgate regulations concerning this act and
     4     programs developed under this act.
     5         (4)  To review, with the advice of the board, program
     6     criteria and to periodically evaluate and make appropriate
     7     changes in those criteria by regulation.
     8     Section 3.  Sections 5, 6 and 7 of the act are amended to
     9  read:
    10  Section 5.  The [Anaerobic Manure Digester] Agriculture Waste
    11                 Technology Board.
    12     (a)  Establishment.--There is established within the [PEO]
    13  department an [Anaerobic Manure Digester] Agriculture Waste
    14  Technology Board.
    15     (b)  Composition.--The board shall be appointed by the
    16  Governor and shall be composed of the following:
    17         (1)  Two persons who own and operate on a continuous
    18     basis [an anaerobic manure] a waste digester.
    19         [(2)  One person from an electric utility.]
    20         (2.1)  Two persons who represent waste management
    21     technology business enterprises.
    22         (3)  One soil nutrient management specialist.
    23         [(4)  One livestock farmer who does not own a digester.
    24         (5)  One person from an environmental protection
    25     organization.]
    26         (4.1)  The Secretary of the Department of Environmental
    27     Protection or a designee.
    28         (6)  One person, not a member of the agricultural
    29     community, who shall represent the public.
    30         (7)  Two active commercial farm owners or operators
    19990S0896B1011                  - 6 -

     1     representing animal agriculture.
     2         (8)  Two active farm owners or operators representing
     3     crop agriculture.
     4         (9)  One representative from the agribusiness industry
     5     representing agricultural processing.
     6         (10)  One representative from the Penn State Cooperative
     7     Extension Service.
     8         (11)  One representative of the State Conservation
     9     Commission.
    10         (12)  One representative of commercial agricultural
    11     lenders.
    12         (13)  One person representing local government.
    13         (14)  The secretary or a designee, who shall serve as
    14     chair.
    15     (c)  Expenses of board members.--The members of the board
    16  shall not be entitled to compensation for their services as
    17  members but shall be entitled to reimbursement for all necessary
    18  expenses incurred in connection with the performance of their
    19  duties as members of the board.
    20     (d)  Quorum.--A majority of the members appointed to the
    21  board shall constitute a quorum.
    22     (e)  Application of member.--A member of the board may apply
    23  to take part in any program administered under this act, if the
    24  regulations pertaining to the program do not prohibit board
    25  member activity in that particular program. Decisions regarding
    26  the program application are subject to 65 Pa.C.S. § 1103(j)
    27  (relating to restricted activities) and the act of July 19, 1957
    28  (P.L.1017, No.451), known as the State Adverse Interest Act. If
    29  a board member has an economic interest or any other adverse or
    30  pecuniary interest in a project, the board member must declare
    19990S0896B1011                  - 7 -

     1  the conflict of interest and refrain from participating in a
     2  deliberation or vote on, or other action regarding, the program.
     3  If any contract or agreement is made in violation of this
     4  section, the contract or agreement shall be null and void and no
     5  action may be maintained against the Commonwealth.
     6     (f)  Powers and duties of board.--The board has the following
     7  powers and duties:
     8         (1)  To work in consultation with the department to
     9     continually evaluate advanced technology regarding
    10     economically and environmentally feasible waste digesters and
    11     waste technologies.
    12         (2)  To research, review and evaluate waste management
    13     systems and technologies which are environmentally sound and
    14     economically feasible and make recommendations to the
    15     secretary.
    16         (3)  To research, review and evaluate specific regional
    17     waste reduction needs and opportunities and to recommend to
    18     the secretary appropriate waste management technology which
    19     exists to satisfy those needs.
    20         (4)  To encourage cooperation among the agricultural
    21     community, industry and local government regarding the use
    22     and development of agricultural waste management
    23     technologies.
    24  [Section 6.  Digester construction.
    25     (a)  PEO duties.-- The PEO shall supervise the construction
    26  of up to six anaerobic manure digesters provided for in this
    27  act.
    28     (b)  Board duties.-- The board shall:
    29         (1)  Advise the PEO as to a site and a design for
    30     digesters.
    19990S0896B1011                  - 8 -

     1         (2)  Consider the feasibility of adopting a single basic
     2     design that may be copied easily by others.
     3         (3)  Approve a digester before releasing funds for its
     4     construction.]
     5  Section 7.  Funding.
     6     (a)  Availability of funds.--Financing of [the construction
     7  of anaerobic manure digesters] waste digesters and agricultural
     8  waste technology programs and projects shall be provided to the
     9  extent that funds are available.
    10     (b)  Use of specific appropriation, contributions and other
    11  payments.--The [Pennsylvania Energy Office] department is
    12  authorized to use funds specifically appropriated by the General
    13  Assembly for the purposes of this act and any funds,
    14  contributions or payments which may be made available to it by
    15  the Federal Government, another State agency or [by] any public
    16  or private source for the purpose of implementing the provisions
    17  of this act.
    18     [(c)  Center for Rural Pennsylvania.--The Pennsylvania Energy
    19  Office is authorized to submit eligible projects to the Center
    20  for Rural Pennsylvania for financing from funds appropriated to
    21  the center.
    22     (d)  Department of Agriculture.--With the concurrence of the
    23  Pennsylvania Energy Office, projects eligible for financing
    24  under this act shall be eligible for financing under the
    25  Agricultural Technology Loan Program in the Department of
    26  Agriculture.
    27     (e)  Department of Commerce.--The Pennsylvania Energy Office
    28  is authorized to submit eligible projects under this act to the
    29  Department of Commerce for financing under the Ben Franklin/IRC
    30  Partnership Fund.]
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     1     Section 4.  This act shall take effect in 60 days.




















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