See other bills
under the
same topic
PRIOR PRINTER'S NO. 1010
PRINTER'S NO. 1258
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
799
Session of
2017
INTRODUCED BY ALLOWAY, BARTOLOTTA, RESCHENTHALER, WHITE AND
STEFANO, JUNE 23, 2017
SENATOR YAW, ENVIRONMENTAL RESOURCES AND ENERGY, AS AMENDED,
OCTOBER 17, 2017
AN ACT
Establishing the Pennsylvania Clean Water Procurement Program;
providing for powers and duties of the State Conservation
Commission; and establishing the Watershed Improvement Fund.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Pennsylvania
Clean Water Procurement Program Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Authority." The Pennsylvania Infrastructure Investment
Authority.
"BMP." Pennsylvania Stormwater Best Management Practices
Manual.
"Commission." The State Conservation Commission.
"Department." The Department of Environmental Protection of
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
the Commonwealth.
"Entity." An entity that generates and sells certified
nutrient credits.
"Fund." The Watershed Improvement Fund established under
section 5.
"Local environmental benefits." Environmental benefits that
can be directly measured and quantified or modeled, including,
but not limited to, carbon reductions, pathogens, nutrients and
sediment to local freshwater and drinking water resources.
"Nutrient pollutant." Nitrogen or phosphorous.
"Permittee." A municipality or public storm water authority
that discharges or releases a TMDL nutrient to surface or ground
waters of this Commonwealth. The term does not include a person
engaged in agricultural production as defined in section 3 of
the act of June 30, 1981 (P.L.128, No.43), known as the
Agricultural Area Security Law.
"Program." The Pennsylvania Clean Water Procurement Program
established under section 3.
"Request for proposal" or "RFP." A request for proposal
which defines contract terms, future delivery dates and
technical specifications issued by the authority in conjunction
with the department to procure verified TMDL nutrient credits
from a certified load reduction activity that meets the
requirements of any applicable offset program in force regarding
the Chesapeake Bay.
"Sediment." Soils or other erodible materials transported by
storm water as a product of erosion.
"TMDL." Total maximum daily load.
"TMDL nutrient pollutant." A nutrient pollutant that has
been identified as a cause of nonattainment of water quality
20170SB0799PN1258 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
standards and for which a TMDL has been developed to set
allowable annual loading targets.
"Transfer payment." Payment required of each permittee under
section 4.
"Unmet nutrient pollutant TMDL." Total outstanding Federal
requirements going forward three years.
"Verified TMDL nutrient credit." A unit of TMDL nutrient
pollutant load reduction achieved through department
verification of a certified reduction activity based upon an
approved verification plan, including modeled BMP reductions
with approved uncertainty factors as defined by the United
States Environmental Protection Agency.
"Water year." The 12-month period beginning October 1 of
each calendar year.
Section 3. Pennsylvania Clean Water Procurement Program.
(a) Establishment.--The Pennsylvania Clean Water Procurement
Program is established and shall provide for the purchase of
verified TMDL nutrient credits from certified nutrient credit
generators through a competitive bidding process consistent with
62 Pa.C.S. Pt. I (relating to Commonwealth Procurement Code) and
any other competitive process determined to be appropriate by
the department and the commission.
(b) Powers and duties.--The commission shall administer the
program and take any action necessary to effectuate the purposes
of this act.
(c) Contracts with verified TMDL nutrient credit sellers.--
(1) The following shall apply:
(i) The commission shall, beginning with the water
year in which this subsection takes effect and the
following two water years, publish a notice of the unmet
20170SB0799PN1258 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
nutrient pollutant TMDL requirements in the Pennsylvania
Bulletin.
(ii) No later than 60 days following publication of
the notice under subparagraph (i), the authority shall
issue, in consultation with the department, a request for
proposals from certified nutrient credit entities under
62 Pa.C.S. Pt. I for the supply of long-term verified
TMDL nutrient credits for future delivery in order to
fulfill the unmet Federal Chesapeake Bay TMDL parameter
requirement for those water years included in the notice.
(iii) An RFP under subparagraph (ii) shall be for a
minimum term of 10 years and shall allow sufficient time
for the delivery of verified reductions of TMDL
parameters consistent with the time frame necessary for
the permitting and development of public or private
credit generator facilities.
(2) Factors to be considered as part of the criteria for
evaluation of responses received to an RFP and the weighted
percentage to be applied to each factor shall be included by
the commission in temporary regulations published under
section 6 and in final regulations and shall include:
(i) Environmental and recreational benefits to this
Commonwealth and local communities resulting from the
TMDL nutrient pollutant reduction activities, including
verified and modeled green infrastructure benefits and
other TMDL parameter reductions to freshwater resources
of this Commonwealth and the applicable major watershed.
(ii) Additional criteria determined relevant by the
commission.
(3) The award granted for an RFP shall determine the
20170SB0799PN1258 - 4 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
adjusted cost of verified TMDL nutrient credits less the
value of the local environmental benefit or green
infrastructure reductions.
(4) The authority will allocate the cost consistent with
the revenue source adopted under this act based on each
permittee's percentage of the total nutrient reduction
mandate sufficient to cover the cost of the program.
Section 4. Replacement of sector allocation with competitive
bidding program.
(a) General rule.--The department shall transfer the
nutrient reduction mandates of a permittee to a competitive
bidding program to enable all certified nutrient credit entities
that can generate verified TMDL nutrient credits to participate
in an RFP on a voluntary basis.
(b) Transfer payment.--In return for being absolved from the
TMDL nutrient reduction mandate, the aggregate number of
permittees shall MAY pay into the program $50,000,000 annually
for 10 years subject to subsection (c).
(c) Payment amounts.--Payment amounts under subsection (b)
shall be adjusted annually based on the cost determination made
under section 3(c)(2) and (4) as published in the Pennsylvania
Bulletin.
(d) Payment in arrears.--Consistent with 62 Pa.C.S. Pt. I
(relating to Commonwealth Procurement Code), Federal policy
recommendations regarding the procurement of results in lieu of
funding solutions and any applicable State statute, payments to
entities will be made after the department has verified the
nutrient pollutant reductions. These verifications will be
performed monthly based upon required data submissions from
nutrient credit generators certified by the department.
20170SB0799PN1258 - 5 -
<--
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(e) Certainty.--Upon transfer of the nutrient reduction
mandates under subsection (a), a permittee shall have no ongoing
liability for the mandated nutrient pollutant reductions.
(f) Risk factor reduction.--The department shall attempt to
reduce risk factors imbedded in legacy policy issues that cannot
be otherwise mitigated and do not represent environmental
backsliding by modifying policies consistent with the
requirements of private sector financing requirements.
(g) Offset.--Verified TMDL nutrient credits obtained under
subsection (a) shall be deemed by the department to satisfy
applicable wastewater and storm water TMDL nutrient pollutant
permitting requirements.
Section 5. Watershed Improvement Fund.
(a) Establishment.--The Watershed Improvement Fund is
established within the authority as a special fund.
(b) Deposits.--The following shall be deposited into the
fund:
(1) Any appropriation made to the fund.
(2) Transfer payments from permittees in accordance with
section 4.
(c) Use.--The following shall apply:
(1) Money in the fund shall be used by the commission
for the purchase of verified TMDL nutrient credits under
section 3.
(2) Winning bids will offer 20% of total nutrient
reduction allotment to be available for participation for 30
days by small sources that did not participate in the bidding
process so that a small producer who installs a BMP can
subscribe to sell their credits into this pool and receive
the winning bid price absent the need to participate in the
20170SB0799PN1258 - 6 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
bidding process.
Section 6. Regulations.
The commission may promulgate regulations to carry out the
provisions of this act.
Section 7. Effective date.
This act shall take effect in 30 days.
20170SB0799PN1258 - 7 -
1
2
3
4
5
6