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


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

  

 

    

PRINTER'S NO.  1588

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

HOUSE BILL

 

No.

1328

Session of

2009

  

  

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

  

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Establishing the Fair Share Nutrient Reduction Program;

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providing funding for wastewater treatment plants and farmers

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to meet nutrient reduction mandates; providing for a resource

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enhancement and protection tax credit and for supplemental

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funding for the Department of Agriculture and the State

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Conservation Commission.

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The General Assembly of the Commonwealth of Pennsylvania

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hereby enacts as follows:

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Section 1.  Short title.

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This act shall be known and may be cited as the Fair Share

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Nutrient Reduction Assistance Program for Farmers Act.

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Section 2.  Legislative findings.

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The General Assembly finds and declares as follows:

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(1)  Federal law mandates that wastewater treatment

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facilities and farmers reduce nitrogen and phosphorus

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discharges going into Commonwealth streams and rivers.

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(2)  In the Chesapeake Bay Watershed alone, 184

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wastewater treatment facilities will be required to upgrade

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treatment systems at an estimated cost of more than

 


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$1,000,000,000, and the Department of Environmental

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Protection has estimated the cost to farmers of complying

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with reduction mandates to be nearly $600,000,000.

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(3)  In order to meet the mandates, local wastewater

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treatment facilities will have to double or triple their cost

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of service to ratepayers. Farmers, who cannot pass along

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costs through increased prices for farm commodities, will

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face crippling increases in operating costs.

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(4)  Technical assistance and help choosing and

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implementing proper conservation practices on farms from

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county conservation districts, the State Conservation

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Commission and the Department of Agriculture is vital to the

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success of reducing nutrients from agricultural sources.

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These government entities have seen cuts in funding in the

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past year, at a time when their services are most needed by

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farmers.

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(5)  One promising tool to reduce the cost of compliance

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with these mandates for both wastewater treatment facility

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operators and farmers is the Nutrient Credit Trading Program

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established by the Department of Environmental Protection.

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However, the program currently is not doing all it can to

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reduce the risk of participation by wastewater treatment

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facility operators and farmers and is not generating the

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credits needed to allow for future growth and development.

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(6)  Federal and State Government, local wastewater

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system ratepayers and farmers must all do their fair share to

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finance the costs of new nutrient reduction mandates and

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support their successful implementation, because the

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environmental and economic benefits of clean water will

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accrue to all citizens of this Commonwealth.

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Section 3.  Definitions.

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The following words and phrases when used in this act shall

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have the meanings given to them in this section unless the

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context clearly indicates otherwise:

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"Agricultural nutrient and sediment reduction project."  A

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project undertaken in conjunction with an agricultural operation

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to establish, implement or improve a best management practice

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recognized by the Environmental Protection Agency or the

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Department of Environmental Protection to reduce the levels of

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nitrogen, phosphorus or sediment entering surface water or

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groundwater from farms in this Commonwealth. The term includes

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design, construction, reconstruction, erection, equipping,

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expansion, improvement, installation, rehabilitation, renovation

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or repair of infrastructure, buildings, structures, equipment

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and fixtures to facilitate nutrient or sediment reduction.

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"Authority."  The Pennsylvania Infrastructure Investment

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Authority.

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"Best management practice."  A practice or combination of

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practices recognized as effective and practical in the

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management or reduction of nutrients or sediment to protect

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surface water or groundwater, considering technological,

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economic and institutional factors.

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"Commission."  The State Conservation Commission.

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"Conservation district."  A public body as defined in and

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created under the act of May 15, 1945 (P.L.547, No.217), known

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as the Conservation District Law.

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"Department."  The Department of Environmental Protection of

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the Commonwealth.

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"NPDES."  The National Pollutant Discharge Elimination System

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established under the Federal Water Pollution Control Act (62

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Stat. 1155, 33 U.S.C. § 1251 et seq.).

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Section 4.  Agricultural Nutrient Reduction Program.

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(a)  Establishment.--The Agricultural Nutrient Reduction

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Program is established to provide financial assistance in the

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form of single-year or multiyear grants or tax credits for

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agricultural nutrient and sediment reduction projects and to

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provide tax credits for legacy sediment remediation projects in

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this Commonwealth.

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(b)  Annual transfer to Conservation District Fund.--

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(1)  In addition to any appropriations annually made, the

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sum of $10,000,000 annually shall be transferred from The

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State Stores Fund to the Conservation District Fund under

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section 5.

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(2)  Money transferred under this subsection shall be

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distributed by the commission to conservation districts for

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their use in undertaking activities as defined in the act of

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May 15, 1945 (P.L.547, No.217), known as the Conservation

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District Law. The commission shall adopt criteria and

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procedures for the distribution to conservation districts.

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(c)  Financial assistance for agricultural nutrient and

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sediment reduction projects.--

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(1)  For fiscal years 2008-2009 through and including

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fiscal year 2012-2013, the sum of $15,000,000 annually shall

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be transferred from The State Stores Fund to the Nutrient

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Management Fund.

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(2)  Money transferred under this subsection shall be

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used by the commission for the purpose of awarding grants to

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farmers for agricultural nutrient and sediment reduction

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projects. Grants to be provided by the commission for any

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agricultural nutrient and sediment reduction project shall

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not exceed 50% of the cost of the project, except that no

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more than $150,000 in total grants may be awarded to a single

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agricultural operation.

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(d)  Resource enhancement and protection tax credit.--For

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fiscal years 2008-2009 through and including fiscal year

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2012-2013, not more than $35,000,000 in tax credits annually

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shall be made available to eligible applicants in accordance

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with the provisions of Article XVII-E of the act of March 4,

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1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, for

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agricultural nutrient and sediment reduction projects and for

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legacy sediment remediation projects. Authorization for tax

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credits and the extent and limitation of eligibility, receipt

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and transfer of tax credits shall be as provided in Article

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XVII-E of the Tax Reform Code of 1971.

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(e)  Nutrient reduction aid to farmers.--

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(1)  For fiscal years 2008-2009 through and including

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fiscal year 2014-2015, the sum of $10,000,000 annually shall

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be transferred from The State Stores Fund to the Nutrient

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Management Fund.

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(2)  The money transferred under this subsection shall be

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used by the Department of Agriculture for agricultural

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research, agricultural extension and other programs to aid

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farmers in complying with nutrient reduction requirements.

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(f)  Administrative expenses.--The commission may annually

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dedicate not more than $350,000 of funds provided under

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subsection (c) for administrative expenses incurred by the

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commission in awarding grants and authorizing tax credits under

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subsections (c) and (d).

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Section 5.  Funding sources.

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Programs established under this act shall be funded through

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interfund transfers from The State Stores Fund. The Secretary of

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the Budget shall transfer from The State Stores Fund to the

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funds specified in this act an aggregate amount of $70,000,000

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annually for fiscal year 2008-2009 through fiscal year 2012-2013

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and $20,000,000 annually for fiscal year 2013-2014 through

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fiscal year 2014-2015.

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Section 6.  Effective date.

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This act shall take effect immediately.

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