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PRINTER'S NO. 822
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
575
Session of
2019
INTRODUCED BY YAW, KILLION, ARGALL, BARTOLOTTA, STEFANO, COSTA,
SCARNATI, MARTIN, CORMAN, YUDICHAK, REGAN, LAUGHLIN AND
MENSCH, MAY 31, 2019
REFERRED TO ENVIRONMENTAL RESOURCES AND ENERGY, MAY 31, 2019
AN ACT
Establishing the Pennsylvania Clean Water Procurement Program
and the Watershed Innovation and Improvement Fund; and making
an appropriation.
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:
"Aggregator." A person that arranges for the sale of
nutrient and sediment reductions generated by another person.
The term includes an agricultural business acting on behalf of
farmers via a production contract or cooperative membership.
"Authority." The Pennsylvania Infrastructure Investment
Authority.
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"Chesapeake Bay TMDL." The Chesapeake Bay TMDL for nitrogen,
phosphorus and sediment as established by the United States
Environmental Protection Agency on December 29, 2010.
"Department." The Department of Environmental Protection of
the Commonwealth.
"Fund." The Watershed Innovation and Improvement Fund
established under section 3.
"Nutrient." Nitrogen or phosphorous.
"Nutrient or sediment reductions." Nitrogen, phosphorus and
sediment pollution load reductions to surface water and
groundwater resources that can be directly measured and
quantified or modeled by any of the following:
(1) The Chesapeake Bay Program Watershed Model.
(2) Any other model approved by the United States
Environmental Protection Agency or the department, including,
but not limited to, nonpoint source phosphorous, nitrogen and
sediment loads to surface water and groundwater resources and
pathogens using quantification methodologies and modeling
tools.
"Program." The Pennsylvania Clean Water Procurement Program
established under section 4.
"Qualified bidder." A bidder with an approved verification
plan.
"Request for proposals." A request for competitive sealed
proposals that define contract terms, future delivery dates and
technical specifications that is issued by the authority, in
conjunction with the department, to procure verified nutrient
and sediment reductions that count toward achievement of the
Chesapeake Bay TMDL nutrient and sediment pollutant reduction
requirements.
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"Sediment." Soils or other erodible materials transported by
water as a product of erosion.
"Small farm." An agricultural operation that is not large
enough to meet the definition of CAFO as set forth in 25 Pa.
Code ยง 92a.2 (relating to definitions).
"TMDL." Total maximum daily load.
"Verification plan." As follows:
(1) A plan that details the method that a qualified
bidder will use to produce verified nutrient or sediment
reductions, including mass balance calculation.
(2) In the case of an aggregator, a plan as specified
under paragraph (1) that describes the process that the
aggregator will use to certify verified nutrient or sediment
reductions from approved contracting parties under section
4(b)(4), including the aggregator's contract farmers,
cooperative members or other similar entities.
"Verified nutrient and sediment reductions." Nutrient or
sediment reductions measured in pounds created by an action,
activity or technology pursuant to a verification plan and
approved by the department.
Section 3. Watershed Innovation and Improvement Fund.
(a) Establishment.--The Watershed Innovation and Improvement
Fund is established in the State Treasury.
(b) Source of funding.--The fund shall consist of
appropriations made to the fund and interest earned on money in
the fund.
(c) Appropriation.--The sum of $20,000,000 is hereby
appropriated from the General Fund to the fund for the purposes
specified under subsection (d).
(d) Use of fund.--The following apply:
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(1) Except as provided under paragraph (2), money in the
fund shall be used by the authority for the purchase of
verified nutrient and sediment reductions under section 4.
(2) No more than 5% of the money in the fund may be used
by the department and the authority to implement the program.
Section 4. Pennsylvania Clean Water Procurement Program.
(a) Establishment.--The Pennsylvania Clean Water Procurement
Program is established and shall provide for the purchase of
verified nutrient and sediment reductions from approved
contracting parties 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 to be appropriate by the authority.
(b) Duties of authority.--The authority shall have all of
the following duties:
(1) Within 60 days of an appropriation to the fund, in
consultation with the department, issue a request for
proposals or initiate a competitive bidding process under 62
Pa.C.S. Pt. I for the supply of long-term nutrient and
sediment reductions for future delivery to accelerate
progress towards the achievement of the Chesapeake Bay TMDL
nutrient and sediment pollutant reduction requirements.
(2) Administer the fund for the purpose of implementing
this act.
(3) Evaluate the responses to the request for proposals
or competitive bidding process under paragraph (1) and
execute contracts with verified nutrient and sediment
reduction producers or aggregators. Contracts under this
paragraph shall be for at least 10 years and shall provide
sufficient time for the construction and permitting of
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facilities and the delivery of verified nutrient and
sediment reductions.
(4) Require a contracting party for the supply of long-
term nutrient and sediment reductions to make available 20%
of its total nutrient or sediment reduction allotment for
participation for 30 days by small farms or aggregators of
small farms. The purpose of this requirement is to enable
small farms or aggregators of small farms to sell their
credits from modeled reductions into the nutrient or
sediment reduction allotment and receive the winning bid
price without participating in the request for proposals or
competitive bidding process under paragraph (1).
(5) Purchase verified nutrient and sediment reductions
in accordance with the terms of the contracts under
paragraph (3) after the department has verified the nutrient
and sediment reductions. The verification of nutrient and
sediment reductions shall be performed monthly, based upon
required data submissions from nutrient credit generators
certified by the department.
(c) Publicly funded reductions.--Nutrient and sediment
reductions funded entirely by public grants are not eligible to
bid or respond to the request for proposals or competitive
bidding process under subsection (b)(1). If a percentage of
nutrient and sediment reductions are funded partially by public
grants, the percentage of the remaining nutrient and sediment
reductions that are eligible to bid or respond to a request for
proposals or competitive bidding process under subsection (b)(1)
shall be commensurate with the percentage of the reduction
activity that is not provided by public grants.
(d) Criteria.--The criteria for the evaluation of responses
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to the request for proposals or competitive bidding process
under subsection (b)(1) and the weighted percentage to be
applied to each factor in the evaluation of the responses shall
be published by the department as part of the request for
proposals or competitive bidding process under subsection (b)(1)
and include, but not be limited to, all of the following:
(1) The environmental and recreational benefits to this
Commonwealth and local communities resulting from the
nutrient and sediment reduction activities.
(2) The cost effectiveness of the proposed nutrient and
sediment reduction activity.
(3) Any additional criteria determined relevant and
necessary by the department.
(e) Annual report.--The authority shall publish and make
available to the public an annual report on the program
detailing all of following information for the prior year:
(1) The total cost for the program.
(2) The nutrient and sediment reduction activities
implemented.
(3) The verified nutrient and sediment reductions
achieved towards the satisfaction of the Chesapeake Bay TMDL
nutrient and sediment pollutant reduction requirements.
(4) The total cost for each verified nutrient and
sediment reduction.
Section 5. Duties of department.
The department shall have all of the following duties:
(1) Administer the program and take any action necessary
to effectuate the purposes of this act.
(2) Verify the generated nutrient and sediment load
reductions achieved by a contracting party under section 4(b)
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(4).
(3) Review and approve the verification plans and mass
balance calculations submitted with the responses to the
request for proposals or competitive bidding process under
section 4(b)(1) and advise the authority regarding the
acceptability of the verification plans and mass balance
calculations.
(4) Evaluate the responses to the request for proposals
or competitive bidding process based on the criteria under
section 4(d), other than the price considerations, and advise
the authority regarding the acceptability of the responses.
Section 6. Regulations.
The department may promulgate regulations necessary to
administer the provisions of this act.
Section 7. Effective date.
This act shall take effect in 60 days.
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