Bill Text: PA HB1328 | 2009-2010 | Regular Session | Introduced

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Bill Title: Establishing the Fair Share Nutrient Reduction Program; providing funding for wastewater treatment plants and farmers to meet nutrient reduction mandates; and providing for a resource enhancement and protection tax credit and for supplemental funding for the Department of Agriculture and the State Conservation Commission.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2009-04-22 - Referred to AGRICULTURE AND RURAL AFFAIRS [HB1328 Detail]

Download: Pennsylvania-2009-HB1328-Introduced.html

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PRINTER'S NO. 1588
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1328 Session of2009
INTRODUCED BY HANNA, BARRAR, BRENNAN, CARROLL, DePASQUALE, EVERETT, FLECK, KAUFFMAN, KULA, MAHONEY, MELIO, MILLARD, MURT, ROCK AND YOUNGBLOOD, APRIL 22, 2009
REFERRED TO COMMITTEE ON AGRICULTURE AND RURAL AFFAIRS, APRIL 22, 2009
AN ACT
Establishing the Fair Share Nutrient Reduction Program;
providing funding for wastewater treatment plants and farmers
to meet nutrient reduction mandates; providing for a resource
enhancement and protection tax credit and for supplemental
funding for the Department of Agriculture and the State
Conservation Commission.
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 Fair Share
Nutrient Reduction Assistance Program for Farmers Act.
Section 2. Legislative findings.
The General Assembly finds and declares as follows:
(1) Federal law mandates that wastewater treatment
facilities and farmers reduce nitrogen and phosphorus
discharges going into Commonwealth streams and rivers.
(2) In the Chesapeake Bay Watershed alone, 184
wastewater treatment facilities will be required to upgrade
treatment systems at an estimated cost of more than
$1,000,000,000, and the Department of Environmental
Protection has estimated the cost to farmers of complying
with reduction mandates to be nearly $600,000,000.
(3) In order to meet the mandates, local wastewater
treatment facilities will have to double or triple their cost
of service to ratepayers. Farmers, who cannot pass along
costs through increased prices for farm commodities, will
face crippling increases in operating costs.
(4) Technical assistance and help choosing and
implementing proper conservation practices on farms from
county conservation districts, the State Conservation
Commission and the Department of Agriculture is vital to the
success of reducing nutrients from agricultural sources.
These government entities have seen cuts in funding in the
past year, at a time when their services are most needed by
farmers.
(5) One promising tool to reduce the cost of compliance
with these mandates for both wastewater treatment facility
operators and farmers is the Nutrient Credit Trading Program
established by the Department of Environmental Protection.
However, the program currently is not doing all it can to
reduce the risk of participation by wastewater treatment
facility operators and farmers and is not generating the
credits needed to allow for future growth and development.
(6) Federal and State Government, local wastewater
system ratepayers and farmers must all do their fair share to
finance the costs of new nutrient reduction mandates and
support their successful implementation, because the
environmental and economic benefits of clean water will
accrue to all citizens of this Commonwealth.
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Section 3. 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:
"Agricultural nutrient and sediment reduction project." A
project undertaken in conjunction with an agricultural operation
to establish, implement or improve a best management practice
recognized by the Environmental Protection Agency or the
Department of Environmental Protection to reduce the levels of
nitrogen, phosphorus or sediment entering surface water or
groundwater from farms in this Commonwealth. The term includes
design, construction, reconstruction, erection, equipping,
expansion, improvement, installation, rehabilitation, renovation
or repair of infrastructure, buildings, structures, equipment
and fixtures to facilitate nutrient or sediment reduction.
"Authority." The Pennsylvania Infrastructure Investment
Authority.
"Best management practice." A practice or combination of
practices recognized as effective and practical in the
management or reduction of nutrients or sediment to protect
surface water or groundwater, considering technological,
economic and institutional factors.
"Commission." The State Conservation Commission.
"Conservation district." A public body as defined in and
created under the act of May 15, 1945 (P.L.547, No.217), known
as the Conservation District Law.
"Department." The Department of Environmental Protection of
the Commonwealth.
"NPDES." The National Pollutant Discharge Elimination System
established under the Federal Water Pollution Control Act (62
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Stat. 1155, 33 U.S.C. § 1251 et seq.).
Section 4. Agricultural Nutrient Reduction Program.
(a) Establishment.--The Agricultural Nutrient Reduction
Program is established to provide financial assistance in the
form of single-year or multiyear grants or tax credits for
agricultural nutrient and sediment reduction projects and to
provide tax credits for legacy sediment remediation projects in
this Commonwealth.
(b) Annual transfer to Conservation District Fund.--
(1) In addition to any appropriations annually made, the
sum of $10,000,000 annually shall be transferred from The
State Stores Fund to the Conservation District Fund under
section 5.
(2) Money transferred under this subsection shall be
distributed by the commission to conservation districts for
their use in undertaking activities as defined in the act of
May 15, 1945 (P.L.547, No.217), known as the Conservation
District Law. The commission shall adopt criteria and
procedures for the distribution to conservation districts.
(c) Financial assistance for agricultural nutrient and
sediment reduction projects.--
(1) For fiscal years 2008-2009 through and including
fiscal year 2012-2013, the sum of $15,000,000 annually shall
be transferred from The State Stores Fund to the Nutrient
Management Fund.
(2) Money transferred under this subsection shall be
used by the commission for the purpose of awarding grants to
farmers for agricultural nutrient and sediment reduction
projects. Grants to be provided by the commission for any
agricultural nutrient and sediment reduction project shall
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not exceed 50% of the cost of the project, except that no
more than $150,000 in total grants may be awarded to a single
agricultural operation.
(d) Resource enhancement and protection tax credit.--For
fiscal years 2008-2009 through and including fiscal year
2012-2013, not more than $35,000,000 in tax credits annually
shall be made available to eligible applicants in accordance
with the provisions of Article XVII-E of the act of March 4,
1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, for
agricultural nutrient and sediment reduction projects and for
legacy sediment remediation projects. Authorization for tax
credits and the extent and limitation of eligibility, receipt
and transfer of tax credits shall be as provided in Article
XVII-E of the Tax Reform Code of 1971.
(e) Nutrient reduction aid to farmers.--
(1) For fiscal years 2008-2009 through and including
fiscal year 2014-2015, the sum of $10,000,000 annually shall
be transferred from The State Stores Fund to the Nutrient
Management Fund.
(2) The money transferred under this subsection shall be
used by the Department of Agriculture for agricultural
research, agricultural extension and other programs to aid
farmers in complying with nutrient reduction requirements.
(f) Administrative expenses.--The commission may annually
dedicate not more than $350,000 of funds provided under
subsection (c) for administrative expenses incurred by the
commission in awarding grants and authorizing tax credits under
subsections (c) and (d).
Section 5. Funding sources.
Programs established under this act shall be funded through
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interfund transfers from The State Stores Fund. The Secretary of
the Budget shall transfer from The State Stores Fund to the
funds specified in this act an aggregate amount of $70,000,000
annually for fiscal year 2008-2009 through fiscal year 2012-2013
and $20,000,000 annually for fiscal year 2013-2014 through
fiscal year 2014-2015.
Section 6. Effective date.
This act shall take effect immediately.
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