Regular Session 2019-2020 Senate Bill 0575 P.N. 0930

PRIOR PRINTER'S NOS. 822, 856

PRINTER'S NO. 930

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

SENATOR BROWNE, APPROPRIATIONS, RE-REPORTED AS AMENDED,

JUNE 10, 2019

AN ACT

Amending Title 27 (Environmental Resources) of the Pennsylvania

Consolidated Statutes, in environmental stewardship and

watershed protection, further providing for agencies;

providing for Pennsylvania Clean Water Procurement Program;

establishing the Watershed Innovation and Improvement Fund;

and making an appropriation.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 6105(a)(1) of Title 27 of the

Pennsylvania Consolidated Statutes is amended to read:

§ 6105. Agencies.

(a) The Department of Conservation and Natural Resources.--

(1) The Department of Conservation and Natural Resources

shall utilize money it receives from the fund for the

following purposes:

(i) To rehabilitate, repair and develop State park

and State forest lands and facilities and the acquisition

of interior lands within State parks and State forests.

(ii) To provide grants to a county or other

municipality, council of governments, conservation

districts and authorized organizations for the purpose of

planning, education, acquisition, development,

rehabilitation and repair of greenways, recreational

trails, including connection between trails, open space,

natural areas, river corridors and access to lakefronts

or riverfronts, watersheds, community [and heritage]

parks and recreation facilities; community conservation

and beautification projects; forest conservation[;],

including conservation of forested riparian buffers;

heritage areas; and other conservation and recreation

purposes. Grants under this paragraph may not be used by

an authorized organization for land acquisition unless

the authorized organization obtains the approval of all

counties in which the land is situated. Grant moneys may

also be used for the acquisition of farmland for the

purposes set forth in this paragraph.

(iii) To provide grants to a county or other

municipality and authorized organizations for the purpose

of research, planning, inventories and technical

assistance intended to protect and conserve the

biological diversity of this Commonwealth.

* * *

Section 2. Title 27 is amended by adding a chapter to read:

CHAPTER 67

CLEAN WATER PROCUREMENT PROGRAM

Sec.

6701. Short title of chapter.

6702. Definitions.

6703. Watershed Innovation and Improvement Fund.

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6704. Pennsylvania Clean Water Procurement Program.

6705. Duties of department.

6706. Regulations.

§ 6701. Short title of chapter.

This chapter shall be known and may be cited as the

Pennsylvania Clean Water Procurement 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 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.

"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 6703 (relating to Watershed Innovation

and Improvement Fund).

"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.

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(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 6704 (relating to Pennsylvania Clean

Water Procurement Program).

"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.

"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 § 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

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aggregator will use to certify verified nutrient or sediment

reductions from approved contracting parties under section

6704(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.

§ 6703. 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.

appropriated from the General Fund to the fund for the purposes

specified under subsection (d).

(d) Use of fund.--The following apply:

(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 6704

(relating to Pennsylvania Clean Water Procurement Program).

(2) No more than 5% 2.5% of the money in the fund may be

used by the department and the authority to implement the

program.

§ 6704. 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

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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 chapter.

(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

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

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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.

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

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

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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.

§ 6705. 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 chapter.

(2) Verify the generated nutrient and sediment load

reductions achieved by a contracting party under section

6704(b)(4) (relating to Pennsylvania Clean Water Procurement

Program).

(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 6704(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

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section 6704(d), other than the price considerations, and

advise the authority regarding the acceptability of the

responses.

§ 6706. Regulations.

The department may promulgate regulations necessary to

administer the provisions of this chapter.

Section 3. This act shall take effect in 60 days.

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