1Providing for the creation of a major watershed improvement
2program, for establishment of a verified TMDL parameter
3credit program, for the powers and duties of the Department
4of Environmental Protection and the Pennsylvania
5Infrastructure Investment Authority and for completion of a
6study by the Legislative Budget and Finance Committee.

7The General Assembly of the Commonwealth of Pennsylvania
8hereby enacts as follows:

9Section 1. Short title.

10This act shall be known and may be cited as the Major
11Watershed Improvement Act.

12Section 2. Definitions.

13The following words and phrases when used in this act shall
14have the meanings given to them in this section unless the
15context clearly indicates otherwise:

16"Board." The Environmental Quality Board.

17"Budget Office." The Governor's Office of the Budget.

18"Department." The Department of Environmental Protection of
19the Commonwealth.

1"Fund." The Major Watershed Improvement Fund.

2"Major watershed." As follows:

3(1) The following watersheds located in this
4Commonwealth and designated by the Department of
5Environmental Protection as major watersheds:

6(i) Delaware.

7(ii) Genesee.

8(iii) Lake Erie.

9(iv) Ohio.

10(v) Potomac.

11(vi) Susquehanna.

12(2) A watershed located in this Commonwealth that may be
13designated as a major watershed on or after the effective
14date of this section.

15"Nutrient." Nitrogen or phosphorus.

16"Participating authority." A water, sewer, water and sewer
17or storm water management authority that serves a participating
18municipality.

19"Participating municipality." A city, borough, incorporated
20town, township or home rule municipality identified by the
21Department of Environmental Protection as being wholly or
22partially located within a major watershed. The term does not
23include a county.

24"PENNVEST." The Pennsylvania Infrastructure Investment
25Authority.

26"Program." The Major Watershed Improvement Program.

27"TMDL." Total maximum daily load.

28"TMDL parameter." Nutrient or sediment for which a TMDL has
29been established or approved by the United States Environmental
30Protection Agency under section 303 of the Water Pollution

1Control Act (62 Stat. 1155, 33 U.S.C. § 1313) and made
2applicable to a major watershed.

3"TMDL parameter credit." The unit of compliance that
4corresponds with a verified pound of reduction of a TMDL
5parameter.

6"Verified TMDL parameter credit." The unit of compliance
7that corresponds with a verified pound of reduction of a TMDL
8parameter as determined by the department.

9"Water year." The 12-month period beginning October 1 of
10each calendar year.

11Section 3. Major Watershed Improvement Program.

12(a) Establishment.--There is established a Major Watershed
13Improvement Program which shall consist of the purchase of
14verified TMDL parameter credits by PENNVEST through a program
15administered by the department and PENNVEST.

16(b) Contracts with TMDL parameter credit sellers.--

17(1) The following shall apply:

18(i) No later than 30 days following the publication
19of temporary regulations by the board under section 5 and
20no later than June 1 of each year thereafter when
21required or necessary to meet an unmet TMDL parameter,
22the department shall publish in the Pennsylvania Bulletin
23a notice containing an updated forecast of the unmet TMDL
24parameter planning targets for future water years
25commencing the year after the date of publication.

26(ii) No later than 60 days following publication of
27the notice under subparagraph (i), PENNVEST shall issue,
28in consultation with the department, a request for
29proposals under 62 Pa.C.S. Pt. I (relating to
30Commonwealth Procurement Code) for long-term purchase of

1verified TMDL parameter credits from interested parties,
2including private entities, participating authorities and
3participating municipalities, in order to meet the unmet
4TMDL parameter planning targets for those water years
5included in the notice, as projected by the department
6and contained in impaired surface waters listings and
7Total Maximum Daily Load amounts in any watershed
8implementation plan required on or after the effective
9date of this section by the United States Environmental
10Protection Agency under the Water Pollution Control Act
11(62 Stat. 1155, 33 U.S.C. § 1251 et seq.).

12(iii) A request for proposal under subparagraph (ii)
13shall be for a minimum term of 10 years and shall allow
14sufficient time for the delivery of verified reductions
15of TMDL parameters consistent with the time frame
16necessary for the permitting and development of public or
17private projects.

18(2) Factors to be considered as part of the criteria for
19evaluation of responses received to a request for proposals
20and the weighted percentage to be applied to each factor
21shall be included by the department in temporary regulations
22published under section 5 and in final regulations and shall
23include:

24(i) Cost.

25(ii) Environmental and recreational benefits
26resulting from the TMDL parameter to this Commonwealth
27and local communities, including verified TMDL parameter
28reductions to freshwater resources of this Commonwealth
29and the applicable major watershed.

30(iii) Additional criteria determined relevant by the

1department.

2(c) Participation in program.--

3(1) Nutrients, which have been identified as a TMDL
4parameter where significant cost savings can be achieved
5pursuant to a Legislative Budget and Finance Committee study
6released in January 2013 and titled "A Cost Effective
7Alternative Approach to Meeting Pennsylvania's Chesapeake Bay
8Nutrient Reduction Targets," shall be included in the
9program.

10(2) Additional major watersheds and TMDL parameters may
11be added to the program by the department upon publication in
12the Pennsylvania Bulletin of a notice which includes a
13statement by the department of the rationale for each
14addition and, for TMDL parameters, an analysis indicating
15that the inclusion of TMDL parameters in the program will
16result in cost savings as a result of competitive bidding.

17Section 4. Major Watershed Improvement Fund.

18(a) Establishment.--There is created within the State
19Treasury a special fund to be known as the Major Watershed
20Improvement Fund.

21(b) Deposits.--The following shall be deposited into the
22fund:

23(1) any appropriation made to the program; and

24(2) Any other existing or future Federal or State
25appropriation or other money determined by the department, in
26consultation with the Budget Office, to be available for the
27program.

28(c) Use.--Money in the fund shall be used by PENNVEST for
29the purchase of verified TMDL parameter credits under section
303(b).

1(d) Issuance of request for proposals.--Any request for a
2proposal under section 3 may only be issued upon certification
3by the department and the Budget Office that money has been
4identified and is available to be deposited in the fund to pay
5for costs associated with issuance of a request for proposals,
6including payments for long-term purchase of verified TMDL
7parameter credits. A notice containing the certification shall
8be published by the department in the Pennsylvania Bulletin no
9later than 30 days following issuance of the certification.

10Section 5. Temporary regulations.

11(a) Promulgation.--In order to facilitate the prompt
12implementation of this act, temporary regulations may be
13promulgated by the board under this section. Prior to adoption,
14a draft of the temporary regulations shall be published in the
15Pennsylvania Bulletin and subject to public comment for a period
16of 30 days. Following completion of the public comment period
17and approval by the board, temporary regulations shall be
18published in the Pennsylvania Bulletin. The temporary
19regulations shall expire no later than two years following their
20publication. The temporary regulations shall not be subject to:

21(1) Sections 201, 202, 203, 204 and 205 of the act of
22July 31, 1968 (P.L.769, No.240), referred to as the
23Commonwealth Documents Law.

24(2) The act of June 25, 1982 (P.L.633, No.181), known as
25the Regulatory Review Act.

26(3) Sections 204(b) and 301(10) of the act of October
2715, 1980 (P.L.950, No.164), known as the Commonwealth
28Attorneys Act.

29(b) Expiration.--The authority of the board to adopt
30temporary regulations under subsection (a) shall expire two

1years after the effective date of this section. Regulations
2adopted after this period shall be promulgated as provided by
3law.

4(c) Draft.--The board shall publish draft temporary
5regulations pursuant to subsection (a) in the Pennsylvania
6Bulletin no later than 60 days following publication of the
7notice required under section 4(d).

8Section 6. Legislative Budget and Finance Committee funding
9study.

10(a) Scope.--The Legislative Budget and Finance Committee
11shall conduct a study of possible sources of funding for the
12program in addition to sources authorized to be deposited into
13the fund under section 4(b).

14(b) Report and recommendations.--A report and
15recommendations shall be presented by the Legislative Budget and
16Finance Committee to the department, PENNVEST, the Environmental
17Resources and Energy Committee, Agriculture and Rural Affairs
18Committee and Local Government Committee of the Senate and the
19Environmental Resources and Energy Committee, Agriculture and
20Rural Affairs Committee and Local Government Committee of the
21House of Representatives within six months following the
22effective date of this section.

23Section 20. Effective date.

24This act shall take effect in 30 days.