Bill Text: PA HB1381 | 2009-2010 | Regular Session | Introduced

---

Bill Title: Providing for authorizing programs relating to nutrient credit; providing for powers and duties of the Department of Environmental Protection, the Environmental Quality Board and the Nutrient Credit Trading Program Board; further providing for the Pennsylvania Infrastructure Investment Authority; and providing for the promulgation of regulations.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2009-04-28 - Referred to ENVIRONMENTAL RESOURCES AND ENERGY [HB1381 Detail]

Download: Pennsylvania-2009-HB1381-Introduced.html

---

PRINTER'S NO. 1682
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1381 Session of2009
INTRODUCED BY DePASQUALE, McGEEHAN, BOYD, STURLA, BARRAR, SWANGER, FLECK, BELFANTI, MILLER, CARROLL, FRANKEL, VULAKOVICH, ROSS, STERN, J. TAYLOR, BEAR, BRADFORD AND GINGRICH, APRIL 28, 2009
REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY, APRIL 28, 2009
AN ACT
Amending Title 27 (Environmental Resources) of the Pennsylvania
Consolidated Statutes, authorizing programs relating to
nutrient credit; providing for powers and duties of the
Department of Environmental Protection, the Environmental
Quality Board and the Nutrient Credit Trading Program Board;
further providing for the Pennsylvania Infrastructure
Investment Authority; and providing for the promulgation of
regulations.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 27 of the Pennsylvania Consolidated
Statutes is amended by adding a chapter to read:
CHAPTER 67
NUTRIENT CREDITS
Subchapter
A. Preliminary Provisions.
B. Nutrient and Sediment Reduction Credits
C. Nutrient Credit Trading Program Board
D. Miscellaneous Provisions
SUBCHAPTER A
PRELIMINARY PROVISIONS
Sec.
6701. Short title of chapter.
6702. Definitions.
§ 6701. Short title of chapter.
This chapter shall be known and may be cited as the Nutrient
Credit Trading 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" or "broker." An individual or entity that
obtains and compiles credits from individual sources for sale
to:
(1) the Nutrient Credit Trading Program Board;
(2) entities required to comply with nutrient limits; or
(3) other entities created for the purpose of obtaining,
compiling and selling credits.
"Board." The Nutrient Credit Trading Program Board
established in this chapter.
"Credit." The unit of compliance that corresponds with a
pound of reduction of nutrient or sediment and that has been
approved by the Department of Environmental Protection under
Subchapter B (relating to nutrient and sediment reduction
costs).
"Department." The Department of Environmental Protection of
the Commonwealth.
"Entities required to comply with nutrient limits." An
entity that is required to reduce, prevent or eliminate nutrient
20090HB1381PN1682 - 2 -
or sediment discharges into surface waters, including:
(1) Municipalities.
(2) Municipal authorities.
(3) Point source entities.
(4) Developers.
(5) Nonpoint source entities.
"Nonpoint source." A source of potential water pollution
that is not a point source.
"Nutrient." Nitrogen or phosphorus.
"Point source." A discernable, confined and discrete
conveyance, including, but not limited to, any pipe, ditch,
channel, tunnel, conduit, well, discrete fissure, container,
rolling stock, landfill leachate collection system or vessel or
other floating craft from which pollutants are or may be
discharged.
SUBCHAPTER B
NUTRIENT AND SEDIMENT REDUCTION CREDITS
Sec.
6711. Scope of subchapter.
6712. Oversight of credit approval process.
6713. Applications.
6714. Verification.
6715. Calculation of credits.
6716. Registration and tracking of credits.
6717. Use of credits.
6718. Priority review.
6719. Regulations.
§ 6711. Scope of subchapter.
This subchapter relates to the process by which nutrient and
sediment reduction credits are calculated, approved, verified,
20090HB1381PN1682 - 3 -
tracked and used. Credits approved by the department may be
sold, purchased or traded as provided by this subchapter or by
Subchapter C (relating to nutrient credit trading program
board).
§ 6712. Oversight of credit approval process.
The department shall have the power and the responsibility
to:
(1) Accept and review applications to create credits.
(2) Make determinations on applications for credits.
(3) Provide for the verification of nutrient and
sediment reductions.
(4) Approve and calculate credits.
(5) Register and track credits.
(6) Provide for the use of credits by entities required
to comply with nutrient limits.
(7) Cooperate with the board.
§ 6713. Applications.
(a) Process.--The Environmental Quality Board shall
establish, by regulation, procedures and requirements relating
to applications for credits and the process by which such
applications shall be reviewed. Applications shall be reviewed
for completeness, technical acceptability and consistency with
regulatory and legal requirements.
(b) Determinations.--The department shall make a
determination on an application to generate credits within 60
days after receipt of a complete application.
(c) Notice.--The department shall post credit application
requirements and review procedures on its publicly accessible
Internet website.
§ 6714. Verification.
20090HB1381PN1682 - 4 -
(a) General rule.--
(1) Prior to a determination on an application to
generate credits, the department shall verify that the
relevant regulatory and legal requirements have been met by
the applicant.
(2) The department shall establish a process to verify
nutrient and sediment reductions after approval of an
application.
(b) Third parties.--The department may allow approved third
parties to perform verifications on its behalf or on behalf of
entities that have submitted applications.
§ 6715. Calculation of credits.
(a) Measurement.--Credits shall be measured in terms that
correspond to a unit of compliance and a time period.
(b) Procedures.--The Environmental Quality Board shall, by
regulation, establish procedures and methodologies by which
credits will be calculated. Such procedures and methodologies
may have general applicability or they may be specific to a
particular watershed, as determined by regulation.
(c) Farmland preservation.--Credits shall not be generated
from the purchase and idling of whole or substantial portions of
farms to provide credits for use offsite. Credits may be
generated when converting one land use to another, as provided
by regulation.
§ 6716. Registration and tracking of credits.
(a) Registration.--The department shall create a registry of
credits that have been approved and that are available for sale
to:
(1) the board;
(2) entities required to comply with nutrient limits; or
20090HB1381PN1682 - 5 -
(3) aggregators or brokers.
(b) Tracking.--The department shall track and verify the
disposition of credits registered under this section.
§ 6717. Use of credits.
Credits approved and registered under this chapter may be
used to meet the requirements of permits administered by the
department, including National Pollutant Discharge Elimination
System permits required under the Federal Water Pollution
Control Act (62 Stat. 1155, 33 U.S.C. § 1251 et. seq.).
§ 6718. Priority review.
Nutrient reduction projects funded by the board under section
6724(a) (relating to powers and duties) shall have priority for
review.
§ 6719. Regulations.
(a) Environmental Quality Board.--The Environmental Quality
Board shall promulgate regulations as necessary for the
implementation of this chapter. The Department of Agriculture
and the board shall be consulted in the drafting of regulations.
(b) Temporary regulation.--Notwithstanding any other
provision of law and in order to facilitate the prompt
implementation of this chapter, regulations promulgated during
the two years following the effective date of this chapter shall
be deemed temporary regulations which shall expire no later than
three years following the effective date of this chapter or upon
promulgation of regulations as generally provided by law. The
temporary regulations shall not be subject to:
(1) Sections 201, 202, 203, 204 and 205 of the act of
July 31, 1968 (P.L.769, No.240), referred to as the
Commonwealth Documents Law.
(2) The act of June 25, 1982 (P.L.633, No.181), known as
20090HB1381PN1682 - 6 -
the Regulatory Review Act.
(c) Expiration of authority.--The authority provided to
adopt temporary regulations in this subsection shall expire two
years from the effective date of this chapter. Regulations
adopted after the two-year period shall be promulgated as
provided by law.
SUBCHAPTER C
NUTRIENT CREDIT TRADING PROGRAM BOARD
Sec.
6721. Scope of subchapter.
6722. Board established.
6723. Board composition.
6724. Powers and duties.
6725. Administration.
6726. Private market preserved.
6727. Regulations.
§ 6721. Scope of subchapter.
This subchapter relates to the powers and duties of the
Nutrient Credit Trading Program Board.
§ 6722. Board established.
There is hereby established a Nutrient Credit Trading Program
Board. The board shall adopt policies and implement programs to
purchase and sell credits in the Chesapeake Bay watershed and
fund projects that generate credits in the Chesapeake Bay
watershed.
§ 6723. Board composition.
(a) Membership.--The board shall consist of:
(1) Three members as follows:
(i) The Secretary of Environmental Protection or a
designee.
20090HB1381PN1682 - 7 -
(ii) The Secretary of Agriculture or a designee.
(iii) The executive director of the Pennsylvania
Infrastructure Investment Authority or a designee.
(2) Four members as follows:
(i) One member appointed by the President pro
tempore of the Senate.
(ii) One member appointed by the Minority Leader of
the Senate.
(iii) One member appointed by the Speaker of the
House of Representatives.
(iv) One member appointed by the Minority Leader of
the House of Representatives.
(3) Nine members appointed by the Governor as follows:
(i) One member from county conservation districts
from a list of no more than three individuals nominated
by the State Conservation Commission.
(ii) Three members from local government as follows:
(A) one member representing boroughs from a list
of no more than three individuals nominated by the
Pennsylvania State Association of Boroughs;
(B) one member representing townships from a
list of no more than three individuals nominated by
the Pennsylvania State Association of Township
Supervisors; and
(C) one member representing cities from a list
of no more than three individuals nominated by the
Pennsylvania League of Cities and Municipalities.
(iii) One member from the agricultural sector from a
list of no more than three individuals nominated by the
Pennsylvania Farm Bureau.
20090HB1381PN1682 - 8 -
(iv) One member from municipal authorities
representing wastewater treatment facilities from a list
of no more than three individuals nominated by the
Pennsylvania Municipal Authorities Association.
(v) One member of the housing industry from a list
of no more than three individuals nominated by the
Pennsylvania Builders Association.
(vi) One water quality engineer from a list of no
more than three individuals nominated by the chair of the
Joint Legislative Air and Water Pollution Control and
Conservation Committee.
(vii) One representative from an environmental
organization from a list of no more than three
individuals nominated by the Chesapeake Bay Foundation.
(b) Officers.--The members shall annually elect, by a
majority vote of the members, such officers as the members shall
determine as necessary.
(c) Terms.--Members shall serve terms as follows:
(1) Members under subsection (a)(1) shall serve
concurrently with their position.
(2) Members under subsection (a)(2) shall serve a term
concurrent with the term of the appointing authority.
(3) Members under subsection (a)(3) shall serve a term
of four years. The initial terms of members appointed under
subsection (a)(3) shall be staggered by the Governor so that
two members are appointed to a term of one year, two members
are appointed to a term of two years, two members are
appointed to a term of three years and three members are
appointed to a term of four years.
(d) Quorum.--Nine members shall constitute a quorum.
20090HB1381PN1682 - 9 -
§ 6724. Powers and duties.
(a) Fees.--
(1) The board shall set fees and payment schedules for
the sale of credits to entities required to comply with
nutrient discharge limits. The schedule shall provide for the
sale of credits in advance of the time period for which the
credits are needed. Credits sold under this paragraph may be
used as provided in section 6717 (relating to use of
credits).
(2) The fees collected from an advance sale of credits
shall be used by the board to fund nutrient reduction
projects that will generate at least the number of credits
sold by the board in the time period for which they were
sold. Such credits shall be determined by the department
under this subsection.
(b) Credits.--The board may purchase credits that have been
approved by the department under this subsection.
(c) Sale of credits.--The board may sell credits to entities
required to comply with nutrient discharge limits.
(d) Trading program.--The board shall operate the nutrient
credit trading program to generate revenues sufficient to offset
its cost operations. Administrative or overhead expenses
incurred by the Pennsylvania Infrastructure Investment Authority
under section 6725 (relating to administration) shall not be
considered in this determination.
(e) Reserve.--The board shall hold credits in reserve to
offset any failures or loss of credits. In addition to this
reserve, the board shall hold a minimum percentage of credits in
reserve for new growth. The board shall set these reserves at
percentages it deems necessary, but in no instance shall the
20090HB1381PN1682 - 10 -
reserve for new growth be lower than 5%.
(f) Internet website.--The board shall post information
regarding the cost and methods of purchasing and selling credits
on its Internet website. The board shall post on its Internet
website a list of those projects that have been determined by
the department to generate credits.
(g) Technical assistance.--The board shall establish a
technical subcommittee to provide technical assistance to
entities proposing projects to generate credits. Members of the
subcommittee shall be appointed by the board and shall have
appropriate technical training and experience.
§ 6725. Administration.
The Pennsylvania Infrastructure Investment Authority shall
provide staff and administrative and technical support to the
board in the performance of its powers and duties under this
chapter.
§ 6726. Private market preserved.
Nothing in this chapter prohibits the private purchase and
sale of credits.
§ 6727. Regulations.
(a) Other regulations.--The board shall promulgate
regulations as necessary for the implementation of this chapter.
The board shall consult with the department and the Department
of Agriculture in the drafting of regulations.
(b) Temporary regulations.--Notwithstanding any other
provision of law to the contrary and in order to facilitate the
prompt implementation of this chapter, regulations promulgated
by the board during the two years following the effective date
of this chapter shall be deemed temporary regulations which
shall expire no later than three years following the effective
20090HB1381PN1682 - 11 -
date of this chapter or upon promulgation of regulations as
generally provided by law. The temporary regulations shall not
be subject to:
(1) Sections 201, 202, 203, 204 and 205 of the act of
July 31, 1968 (P.L.769, No.240), referred to as the
Commonwealth Documents Law.
(2) The act of June 25, 1982 (P.L.633, No.181), known as
the Regulatory Review Act.
(c) Expiration of authority.--The authority provided to the
board to adopt temporary regulations in this section shall
expire two years from the effective date of this chapter.
Regulations adopted after the two-year period shall be
promulgated as provided by law.
SUBCHAPTER D
MISCELLANEOUS PROVISIONS
Sec.
6731. Continuation of policy.
6732. Existing credits.
§ 6731. Continuation of policy.
Policies and procedures created by the department for the
approval, calculation and trading of credits that are in effect
on the effective date of this chapter shall be superseded by
this chapter 120 days after the effective date of this chapter
or upon the publication of temporary regulations under section
6719 (relating to regulations), whichever comes first.
§ 6732. Existing credits.
Subject to section 6731 (relating to continuation of policy),
credits approved by the department shall remain in effect and
shall be subject to the terms and conditions imposed by the
department at the time of approval.
20090HB1381PN1682 - 12 -
Section 2. This act shall take effect in 60 days.
20090HB1381PN1682 - 13 -