PRINTER'S NO. 3963
No. 2656 Session of 2008
INTRODUCED BY HANNA, HERSHEY, CALTAGIRONE, CARROLL, CONKLIN,
FAIRCHILD, GEORGE, GRUCELA, HALUSKA, KULA, McCALL, O'NEILL,
STERN, STURLA, THOMAS, YUDICHAK, HENNESSEY, YOUNGBLOOD,
SAYLOR, PERRY AND SOLOBAY, JUNE 17, 2008
REFERRED TO COMMITTEE ON AGRICULTURE AND RURAL AFFAIRS,
JUNE 17, 2008
AN ACT
1 Establishing the Fair Share Nutrient Reduction Program;
2 providing funding for wastewater treatment plants and farmers
3 to meet nutrient reduction mandates; providing for a resource
4 enhancement and protection tax credit and for supplemental
5 funding for the Department of Agriculture and the State
6 Conservation Commission.
7 The General Assembly of the Commonwealth of Pennsylvania
8 hereby enacts as follows:
9 Section 1. Short title.
10 This act shall be known and may be cited as the Fair Share
11 Nutrient Reduction Assistance Program for Farmers Act.
12 Section 2. Legislative findings.
13 The General Assembly finds and declares as follows:
14 (1) Federal law mandates that wastewater treatment
15 facilities and farmers reduce nitrogen and phosphorus
16 discharges going into Commonwealth streams and rivers.
17 (2) In the Chesapeake Bay Watershed alone, 184
18 wastewater treatment facilities will be required to upgrade
1 treatment systems at an estimated cost of more than
2 $1,000,000,000 and the Department of Environmental Protection
3 has estimated the cost to farmers of complying with reduction
4 mandates to be nearly $600,000,000.
5 (3) In order to meet the mandates, local wastewater
6 treatment facilities will have to double or triple their cost
7 of service to ratepayers. Farmers, who cannot pass along
8 costs through increased prices for farm commodities, will
9 face crippling increases in operating costs.
10 (4) Technical assistance and help choosing and
11 implementing proper conservation practices on farms from
12 county conservation districts, the State Conservation
13 Commission and the Department of Agriculture is vital to the
14 success of reducing nutrients from agricultural sources.
15 These government entities have seen cuts in funding in the
16 past year, at a time when their services are most needed by
17 farmers.
18 (5) One promising tool to reduce the cost of compliance
19 with these mandates for both wastewater treatment facility
20 operators and farmers is the Nutrient Credit Trading Program
21 established by the Department of Environmental Protection.
22 However, the program currently is not doing all it can to
23 reduce the risk of participation by wastewater treatment
24 facility operators and farmers and is not generating the
25 credits needed to allow for future growth and development.
26 (6) Federal and State Government, local wastewater
27 system ratepayers and farmers must all do their fair share to
28 finance the costs of new nutrient reduction mandates and
29 support their successful implementation, because the
30 environmental and economic benefits of clean water will
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1 accrue to all citizens of this Commonwealth.
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 nutrient and sediment reduction project." A
7 project undertaken in conjunction with an agricultural operation
8 to establish, implement or improve a best management practice
9 recognized by the Environmental Protection Agency or the
10 Department of Environmental Protection to reduce the levels of
11 nitrogen, phosphorus or sediment entering surface water or
12 groundwater from farms in this Commonwealth. The term includes
13 design, construction, reconstruction, erection, equipping,
14 expansion, improvement, installation, rehabilitation, renovation
15 or repair of infrastructure, buildings, structures, equipment
16 and fixtures to facilitate nutrient or sediment reduction.
17 "Authority." The Pennsylvania Infrastructure Investment
18 Authority.
19 "Best management practice." A practice or combination of
20 practices recognized as effective and practical in the
21 management or reduction of nutrients or sediment to protect
22 surface water or groundwater, considering technological,
23 economic and institutional factors.
24 "Commission." The State Conservation Commission.
25 "Conservation district." A public body as defined in and
26 created under the act of May 15, 1945 (P.L.547, No.217), known
27 as the Conservation District Law.
28 "Department." The Department of Environmental Protection of
29 the Commonwealth.
30 "NPDES." The National Pollutant Discharge Elimination System
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1 established under the Federal Water Pollution Control Act (62
2 Stat. 1155, 33 U.S.C. § 1251 et seq.)
3 Section 4. Agricultural Nutrient Reduction Program.
4 (a) Establishment.--The Agricultural Nutrient Reduction
5 Program is established to provide financial assistance in the
6 form of single-year or multiyear grants or tax credits for
7 agricultural nutrient and sediment reduction projects and to
8 provide tax credits for legacy sediment remediation projects in
9 this Commonwealth.
10 (b) Annual transfer to Conservation District Fund.--
11 (1) In addition to any appropriations annually made, the
12 sum of $10,000,000 annually shall be transferred from The
13 State Stores Fund to the Conservation District Fund pursuant
14 to section 5.
15 (2) Money transferred under this subsection shall be
16 distributed by the commission to conservation districts for
17 their use in undertaking activities as defined in the act of
18 May 15, 1945 (P.L.547, No.217), known as the Conservation
19 District Law. The commission shall adopt criteria and
20 procedures for the distribution to conservation districts.
21 (c) Financial assistance for agricultural nutrient and
22 sediment reduction projects.--
23 (1) For fiscal years 2008-2009 through and including
24 fiscal year 2012-2013, the sum of $15,000,000 annually shall
25 be transferred from The State Stores Fund to the Nutrient
26 Management Fund.
27 (2) Money transferred under this subsection shall be
28 used by the commission for the purpose of awarding grants to
29 farmers for agricultural nutrient and sediment reduction
30 projects. Grants to be provided by the commission for any
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1 agricultural nutrient and sediment reduction project shall
2 not exceed 50% of the cost of the project, except that no
3 more than $150,000 in total grants may be awarded to a single
4 agricultural operation.
5 (d) Resource enhancement and protection tax credit.--For
6 fiscal years 2008-2009 through and including fiscal year 2012-
7 2013, not more than $35,000,000 in tax credits annually shall be
8 made available to eligible applicants in accordance with the
9 provisions of Article XVII-E of the act of March 4, 1971 (P.L.6,
10 No.2), known as the Tax Reform Code of 1971, for agricultural
11 nutrient and sediment reduction projects and for legacy sediment
12 remediation projects. Authorization for tax credits and the
13 extent and limitation of eligibility, receipt and transfer of
14 tax credits shall be as provided in Article XVII-E of the Tax
15 Reform Code of 1971.
16 (e) Nutrient reduction aid to farmers.--
17 (1) For fiscal years 2008-2009 through and including
18 fiscal year 2014-2015, the sum of $10,000,000 annually shall
19 be transferred from The State Stores Fund to the Nutrient
20 Management Fund.
21 (2) The money transferred under this subsection shall be
22 used by the Department of Agriculture for agricultural
23 research, agricultural extension and other programs to aid
24 farmers in complying with nutrient reduction requirements.
25 (f) Administrative expenses.--The commission may annually
26 dedicate not more than $350,000 of funds provided under
27 subsection (c) for administrative expenses incurred by the
28 commission in awarding grants and authorizing tax credits under
29 subsections (c) and (d).
30 Section 5. Funding sources.
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1 Programs established under this act shall be funded through
2 interfund transfers from The State Stores Fund. The Secretary of
3 the Budget shall transfer from The State Stores Fund to the
4 funds specified in this act an aggregate amount of $70,000,000
5 annually for fiscal year 2008-2009 through fiscal year 2012-2013
6 and $20,000,000 annually for fiscal year 2013-2014 through
7 fiscal year 2014-2015.
8 Section 6. Effective date.
9 This act shall take effect immediately.
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