PRINTER'S NO. 495

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

475

Session of

2021

INTRODUCED BY YAW, BARTOLOTTA, ARGALL, MARTIN, MENSCH, BAKER,

PITTMAN AND STEFANO, MARCH 25, 2021

REFERRED TO ENVIRONMENTAL RESOURCES AND ENERGY, MARCH 25, 2021

hereby enacts as follows:

Section 1. Title 27 of the Pennsylvania Consolidated

Statutes is amended by adding a chapter to read:

Sec.

6701. Short title of chapter.

6702. Definitions.

6703. Watershed Innovation and Improvement Fund.

6704. Pennsylvania Clean Water Procurement Pilot Program.

Pennsylvania Clean Water Procurement Pilot Program Act.

§ 6702. Definitions.

The following words and phrases when used in this chapter

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Aggregator." A person that facilitates or coordinates a

best management practice implemented by other persons for

nutrient or sediment reduction. The term includes an

agricultural business, educational institution or nonprofit

agricultural or conservation organization that:

(1) acts on behalf of farmers through a production

"Best management practice." A practice or combination of

practices determined by the commission or by the Natural

Resources and Conservation Service of the United States

Department of Agriculture to be effective and practical,

considering technological, economic and institutional factors,

to manage nutrient and sediment to protect surface water and

groundwater.

"Chesapeake Bay TMDL." The Chesapeake Bay TMDL for nitrogen,

phosphorus and sediment as established by the Environmental

Protection Agency.

"Fund." The Watershed Innovation and Improvement Fund

established under section 6703 (relating to Watershed Innovation

and Improvement Fund).

"Locally impaired watershed." The land area, corresponding

to a 12-digit Hydrologic Unit Code as designated by the United

States Geological Survey, that includes a body of water on the

Commonwealth's list of impaired waters under section 303(d) of

the Federal Water Pollution Control Act (62 Stat. 1155, 33

U.S.C. § 1251 et seq.).

"Nutrient." Nitrogen or phosphorous.

"Nutrient or sediment reduction." A nitrogen, phosphorus or

progress under the Chesapeake Bay TMDL.

"Program." The Pennsylvania Clean Water Procurement Pilot

Program established under section 6704 (relating to Pennsylvania

Clean Water Procurement Pilot Program).

"Qualified bidder." A person or aggregator with a

verification plan approved by the department.

"Sediment." Soils or other erodible materials transported by

water as a product of erosion.

"Small farm." An agricultural operation, except for a CAFO

as defined in 25 Pa. Code § 92a.2 (relating to definitions).

management practice for nutrient or sediment reduction in

accordance with a protocol approved or accepted by the

Environmental Protection Agency.

"Verified nutrient or sediment reduction." Nutrient or

sediment reduction measured in pounds created by a best

management practice pursuant to a verification plan and approved

by the department.

§ 6703. Watershed Innovation and Improvement Fund.

(a) Establishment.--The Watershed Innovation and Improvement

Fund is established as a fund in the State Treasury.

(b) Purpose.--Money in the fund shall be used for activities

(ii) is not transferred from the Environmental

Stewardship Fund.

(2) Federal money appropriated to the fund.

(3) Money received from another governmental agency

through an interagency agreement or memorandum of

understanding.

(4) A gift or other contribution from a public or

private source.

(5) Return on money in the fund.

(d) Limitation.--No more than 2.5% of the money in the fund

the end of a fiscal year.

§ 6704. Pennsylvania Clean Water Procurement Pilot Program.

(a) Establishment.--The Pennsylvania Clean Water Procurement

Pilot Program is established and shall provide for the purchase

of a verified nutrient or sediment reduction through a

competitive sealed proposal procurement procedure consistent

with 62 Pa.C.S. Pt. I (relating to Commonwealth Procurement

Code) or any other competitive bidding process determined by the

authority to be appropriate.

(b) Duties of authority.--The authority shall have all of

the following duties:

(i) A suggested payment schedule.

(ii) A statement of the qualified bidder's

qualification, experience and resources.

(iii) A statement of qualified bidder's proposed

surety and other financial assurances.

(2) Administer the fund for the purpose of implementing

this chapter.

(3) Evaluate, in consultation with the department and

the commission, the responses to the request for proposals or

competitive bidding process under paragraph (1).

(i) May not be for a term of more than 10 years.

(ii) Shall require periodic submissions from a

qualified bidder in accordance with a verification plan

approved by the department.

(iii) Shall require that payment be conditioned on

the achievement of specific outcomes based on defined

performance targets in accordance with a verification

plan approved by the department.

(iv) Shall include a schedule and calculation of

consequences based on performance, including payments

that would be earned if performance targets are met or

(c) Publicly funded reductions.--A verified nutrient or

sediment reduction funded entirely by public funding shall not

be eligible to be purchased under the program. If a percentage

of a verified nutrient or sediment reduction is funded partially

by public funding, the percentage of the remaining verified

nutrient or sediment reduction that is eligible to be purchased

shall be commensurate with the percentage of the verified

nutrient or sediment reduction that is not provided by public

funding.

(d) Criteria.--The criteria for the evaluation of responses

be determined by the authority in consultation with the

department and commission and be published as part of the

request for proposals or competitive bidding process under

subsection (b)(1). The criteria to be considered must include

all of the following:

(1) A verified nutrient or sediment reduction in a

locally impaired watershed.

(2) A verified nutrient or sediment reduction in a

county designated by the department as a Tier 1 Chesapeake

Bay county.

(3) The dollar cost per pound of nutrient or sediment

available to the public an annual report on the program

detailing all of following for the prior year:

(1) The total cost of the program.

(2) The best management practices implemented which

resulted in nutrient or sediment reductions.

(3) The verified nutrient or sediment reductions

achieved towards the satisfaction of the Chesapeake Bay TMDL.

(4) The total cost for each verified nutrient or

sediment reduction.

(5) The participation of small farms in the program.

criteria under section 6704(d) (relating to Pennsylvania

Clean Water Procurement Pilot Program).

(2) Review and approve a verification plan submitted

with a response to a request for proposals or competitive

bidding process under section 6704(b)(1) and advise the

authority regarding the acceptability of a verification plan.

(3) Evaluate the responses to the request for proposals

or competitive bidding process based on the criteria under

section 6704(d) and advise the authority regarding the

acceptability of the responses.

(4) In accordance with a contract under section 6704(b)

The commission shall have all of the following duties:

(1) Advise the authority as it establishes criteria

under section 6704(d) (relating to Pennsylvania Clean Water

Procurement Pilot Program).

(2) Review a response to a request for proposals or

competitive bidding process under section 6704(b)(1) and

advise the authority accordingly.

§ 6707. Regulations.

The department may promulgate regulations necessary to

administer the provisions of this chapter.