Chesapeake Bay Program Reauthorization and Improvement Act - Amends the Federal Water Pollution Control Act (commonly known as the Clean Water Act or CWA) to establish: (1) financial reporting requirements for restoration activities in the Chesapeake Bay watershed and (2) the Independent Evaluation and Technical Advisory Committee to review and report on restoration activities in the Bay ecosystem and to provide recommendations to the Administrator of the Environmental Protection Agency (EPA) and the Secretary of the Department of Agriculture (USDA) on such activities. Authorizes appropriations for FY2013-FY2018.
Requires the Administrator to: (1) complete an economic analysis of each EPA statement (i.e., guidance, policy, memorandum, regulation, or statement of general applicability and future effect that is designed to implement, interpret, or prescribe law or policy relating to water quality in the Bay); and (2) establish technical guidelines to be used by the Chesapeake Bay Nutrient and Sediment Trading Commission in establishing a voluntary interstate nitrogen, phosphorus, and sediment trading program for the Bay. Prohibits such guidelines from applying to agricultural nonpoint sources or nonindustrial private forest lands except to the extent that such guidelines consist of guidelines issued under the Food Security Act of 1985 concerning environmental service markets.
Requires a total maximum daily load (TMDL) for nitrogen, phosphorus, or sediment for a segment of the Bay and its tributaries to use timeframes other than daily (such as annual, monthly, or seasonal) for certain economic sectors, including agriculture, in which a nondaily timeframe is appropriate. Authorizes a point source to meet National Pollutant Discharge Elimination System (NPDES) permit limits on nitrogen, phosphorus, or sediment through trade administered by the Chesapeake Bay Nutrient and Sediment Trading Commission. Provides that powers are reserved solely to states to implement a total maximum daily nutrient or sediment load in the Bay. Authorizes, in Bay states that have developed TMDL plans that reduce loading through an iterative process that employs adaptive management principles, NPDES permits to be issued for new or existing point source discharges that include wasteload allocations consistent with such plan and that demonstrate progress towards achieving the wasteload allocation specified in such plan by treatment, trading or other means.
Authorizes individuals or entities undertaking land development activities to be permitted to meet requirements for managing stormwater by offsetting such activities through the establishment of equivalent stormwater management practices off-site within the Bay ecosystem.
Authorizes Bay states to use funds made available under the nonpoint source management program for activities related to reducing losses of nitrogen, phosphorus, or sediment from agricultural or nonindustrial private forest land through a watershed partnership developed under the Food and Security Act of 1985.
Establishes an independent Chesapeake Bay Nutrient and Sediment Trading Commission in the Office of the Chesapeake Bay Program to: (1) administer the nitrogen, phosphorus, and sediment trading program for Delaware, Maryland, New York, Pennsylvania, Virginia, West Virginia, and the District of Columbia to ensure that credits are generated to attract market participants and facilitate trading mechanisms among and within such jurisdictions to meet water quality goals; (2) operate a registry for interstate water quality trading; and (3) develop a system to allow for trading to occur between point source and non-point source dischargers and any combination thereof among and within Bay states. Terminates the Commission on September 30, 2018.
Amends the Food Security Act of 1985 to require the Secretary to enter into a memorandum of understanding with the chief executive of a Bay state upon such executive's request to establish a watershed partnership. Authorizes each partnership to establish a watershed strategy for demonstrating aggregate reductions in losses of nitrogen, phosphorus, and sediment, on a basin or subbasin scale in the Bay watershed, from agricultural or nonindustrial private forest land in the state. Requires such strategies to establish an assurance process in which qualified producers or owners of non-industrial forest land may participate.
Requires the Secretary to: (1) provide conservation technical assistance to educate agricultural and private forest landowners in the Bay regarding water quality requirements, (2) publish a list of eligible agricultural and forestry activities that result in environmental service benefits, and (3) establish a pilot program for the Bay watershed for the facilitation of creating environmental service markets.
[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4153 Introduced in House (IH)]
112th CONGRESS
2d Session
H. R. 4153
To support efforts to reduce pollution of the Chesapeake Bay watershed,
and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 7, 2012
Mr. Goodlatte (for himself and Mr. Holden) introduced the following
bill; which was referred to the Committee on Transportation and
Infrastructure, and in addition to the Committees on Agriculture and
Energy and Commerce, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To support efforts to reduce pollution of the Chesapeake Bay watershed,
and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Chesapeake Bay
Program Reauthorization and Improvement Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Modification of Chesapeake Bay Program under Federal Water
Pollution Control Act.
Sec. 3. Establishment of independent commission to oversee and
administer nitrogen, phosphorus, and
sediment trading program for Chesapeake Bay
States.
Sec. 4. Chesapeake Bay watershed partnerships.
Sec. 5. Technical guidelines for environmental services markets.
Sec. 6. Chesapeake Bay watershed pilot program for creating
environmental service markets.
Sec. 7. Offset.
SEC. 2. MODIFICATION OF CHESAPEAKE BAY PROGRAM UNDER FEDERAL WATER
POLLUTION CONTROL ACT.
(a) Definitions.--Section 117(a) of the Federal Water Pollution
Control Act (33 U.S.C. 1267(a)) is amended--
(1) by redesignating paragraphs (5) and (6) as paragraphs
(6) and (10), respectively;
(2) by inserting after paragraph (4) the following new
paragraph:
``(5) Chesapeake bay state.--The term `Chesapeake Bay
State' or `State' means Delaware, Maryland, New York,
Pennsylvania, Virginia, West Virginia, and the District of
Columbia.''; and
(3) by inserting after paragraph (6), as redesignated, the
following new paragraphs:
``(7) Chief executive.--The term `chief executive' means--
``(A) in the case of a State or Commonwealth, the
Governor of the State or Commonwealth; and
``(B) in the case of the District of Columbia, the
Mayor of the District of Columbia.
``(8) Nonindustrial private forest land.--The term
`nonindustrial private forest land' means rural land, as
determined by the Secretary, that--
``(A) has existing tree cover or is suitable for
growing trees; and
``(B) is owned by any nonindustrial private
individual, group, association, corporation, Indian
tribe, or other private legal entity that has
definitive decisionmaking authority over the land.
``(9) Restoration activities.--The term `restoration
activities' means one or more practices or programs that
directly protect, conserve, or restore habitat, water
resources, or water quality in the Chesapeake Bay watershed,
including practices and programs that promote conservation and
land stewardship in the Chesapeake Bay watershed.
``(10) Total maximum daily nutrient or sediment load in the
chesapeake bay.--The term `total maximum daily nutrient or
sediment load in the Chesapeake Bay' means a total maximum
daily load for nitrogen, phosphorus, or sediment established
under section 303(d) for a segment or tributary of the
Chesapeake Bay, whether established under paragraph (1) of such
section by the State in which the segment or tributary is
located or under paragraph (2) of such section by the
Administrator.''.
(b) Chesapeake Bay Crosscut Financial Report.--Section 117 of the
Federal Water Pollution Control Act (33 U.S.C. 1267) is amended by
striking subsection (j) and inserting the following new subsection:
``(j) Financial Report.--
``(1) Financial report required.--With the budget
submission for each fiscal year, the Director of the Office of
Management and Budget, in consultation with other appropriate
Federal agencies and the chief executive of each Chesapeake Bay
State, shall submit to Congress a financial report containing--
``(A) a summary of an interagency crosscut budget
that displays--
``(i) the proposed funding for Federal
restoration activities to be carried out in the
succeeding fiscal year, including any planned
interagency or intra-agency transfer, for each
of the Federal agencies that carry out
restoration activities;
``(ii) to the extent that information is
available, the estimated funding for any State
restoration activities to be carried out in the
succeeding fiscal year;
``(iii) all expenditures for Federal
restoration activities from the preceding 3
fiscal years, the current fiscal year, and
estimated expenditures for the succeeding
fiscal year; and
``(iv) all expenditures, to the extent that
information is available, for State restoration
activities during the equivalent time period
described in clause (iii);
``(B) a detailed accounting of all funds received
and obligated by all Federal agencies for restoration
activities during the current and preceding fiscal
years, including the identification of funds which were
transferred to a Chesapeake Bay State for restoration
activities;
``(C) to the extent that information is available,
a detailed accounting from each State of all funds
received and obligated from a Federal agency for
restoration activities during the current and preceding
fiscal years; and
``(D) a description of each of the proposed Federal
and State restoration activities to be carried out in
the succeeding fiscal year (corresponding to those
activities listed in clauses (i) and (ii) of
subparagraph (A)).
``(2) Submission.--Not later than 30 days after the
submission by the President of the annual budget to Congress,
the Director shall submit the report required by paragraph (1)
to the following congressional committees:
``(A) The Committees on Agriculture,
Appropriations, Natural Resources, Energy and Commerce,
and Transportation and Infrastructure of the House of
Representatives.
``(B) The Committees on Agriculture, Nutrition, and
Forestry, Appropriations, Environment and Public Works,
and Commerce, Science, and Transportation of the
Senate.''.
(c) Transparency and Accountability.--Section 117 of the Federal
Water Pollution Control Act (33 U.S.C. 1267) is amended by adding at
the end the following new subsection:
``(k) Transparency and Accountability Requirements.--
``(1) State reports.--Not later than October 10 of each
year, each State that received funds from a Federal agency
under subsection (n)(1)(B) shall submit a report to the head of
the agency that--
``(A) identifies the total amount of funds received
from the agency under such provisions during the
preceding fiscal year;
``(B) identifies the amount of funds received from
the agency under such provisions that were obligated or
expended for projects or activities during the
preceding fiscal year; and
``(C) contains a list of all projects or activities
for which the funds were obligated or expended, except
that such list shall not include personal identifying
information of individual recipients.
``(2) Agency reports.--Not later than November 10 of each
year, the Secretary of Agriculture shall provide to the
Administrator the information received in any report submitted
to the Secretary under paragraph (1). The Administrator shall
publish on a publicly available website, in accordance with
paragraph (5), any information submitted to the Administrator
under this paragraph or paragraph (1).
``(3) Economic analysis.--
``(A) In general.--The Administrator shall complete
an economic analysis of each agency statement described
in subparagraph (B) that is issued by the
Administrator.
``(B) Agency statement described.--An agency
statement described in this subparagraph is any
guidance, policy, memorandum, regulation, or statement
of general applicability and future effect that is
designed to implement, interpret, or prescribe law or
policy relating to water quality in the Chesapeake Bay.
``(C) Contents of analysis.--An economic analysis
required under subparagraph (A) shall include--
``(i) the impact of the agency statement on
the economies and budgets of States and
municipalities;
``(ii) the impact of the agency statement
on the private sector, including such impact on
small entities and farm income;
``(iii) the availability of Federal funding
to offset the impacts identified under clause
(ii); and
``(iv) the benefits of the agency statement
to water quality in the Chesapeake Bay.
``(D) Consultation.--In conducting an economic
analysis required under subparagraph (A), the
Administrator shall consult with other Federal agencies
that may be affected by the agency statement.
``(4) Initial compliance.--Not later than 180 days after
the date of enactment of the Chesapeake Bay Program
Reauthorization and Improvement Act, the head of each Federal
agency providing funds under subsection (n)(1)(B) shall
require, as a condition of receipt of the funds, a State
recipient of the funds to provide the information required
under paragraph (1).
``(5) Website.--
``(A) Website required.--The Administrator shall
establish and maintain, not later than 30 days after
the enactment of the Chesapeake Bay Program
Reauthorization and Improvement Act, a user-friendly,
publicly available website to promote greater
accountability and transparency regarding the use of
funds provided under subsection (n)(1)(B).
``(B) Content and function.--The website shall
provide the following:
``(i) Accountability information, including
findings from audits, inspectors general, and
the Government Accountability Office.
``(ii) Data on relevant economic,
financial, grant, and contract information in
user-friendly visual presentations to enhance
public awareness of the use of covered funds.
``(iii) Links to other government websites
where key information relating to efforts to
improve the water quality of the Chesapeake Bay
watershed may be found.
``(iv) Printable reports on covered funds
obligated by month to each State and
congressional district.
``(v) Links to other government websites
with information concerning covered funds,
including Federal agency and State websites.
``(C) Revisions.--The Administrator shall enhance
and update the website as necessary.''.
(d) Independent Evaluation and Technical Advisory Committee for
Chesapeake Bay Program.--Section 117 of the Federal Water Pollution
Control Act (33 U.S.C. 1267) is amended by inserting after subsection
(k), as added by subsection (c), the following new subsection:
``(l) Independent Evaluation and Technical Advisory Committee.--
``(1) Establishment.--There is established an Independent
Evaluation and Technical Advisory Committee (in this subsection
referred to as the `Advisory Committee').
``(2) Review and report.--Beginning on a date that is not
more than 180 days after the date of enactment of the
Chesapeake Bay Program Reauthorization and Improvement Act, and
every two years thereafter, the Advisory Committee shall review
and report to Congress on--
``(A) Federal and State, and, to the extent
practicable, other, restoration activities in the
Chesapeake Bay watershed, including relevant topics
suggested by the Chesapeake Executive Council and the
Chesapeake Bay Commission; and
``(B) any progress made by such activities toward
reaching applicable water quality goals of the
Chesapeake Bay States.
``(3) Duties.--
``(A) Administration review.--The duties of the
Advisory Committee shall be to provide recommendations
to the Administrator and Secretary of Agriculture
concerning the administration of this section.
``(B) Program and activities review.--The Advisory
Committee shall, after reviewing the Chesapeake Bay
Program, provide to the Administrator and the Secretary
of Agriculture a report evaluating whether--
``(i) funds authorized for restoration
activities are being distributed and used to
improve water quality in the Chesapeake Bay
watershed;
``(ii) mechanisms to track restoration
activities are in place and restoration
activities are being properly implemented;
``(iii) mechanisms are in place to evaluate
progress toward achieving water quality goals
for the Chesapeake Bay watershed;
``(iv) the allocation of funds among
Chesapeake Bay States reflects the
responsibility and contribution towards
achieving water quality goals of each
Chesapeake Bay State;
``(v) restoration activities are being
carried out in accordance with this section;
``(vi) the factual information and
assumptions incorporated in Chesapeake Bay
modeling efforts are accurate;
``(vii) implementation of restoration
activities is being adequately tracked and
accounted for in Chesapeake Bay modeling
efforts, including tracking of privately funded
and government-funded practices; and
``(viii) the achievability and
practicability of water quality goals are being
considered in the implementation of the
Program.
``(4) Membership.--
``(A) Number and appointment.--The Advisory
Committee shall be composed of 16 members appointed by
the Administrator and the Secretary of Agriculture,
composed of the following:
``(i) Two individuals who are engineers or
scientists who worked for the Government or in
academia and have technical expertise in water
quality modeling.
``(ii) One individual who has an
affiliation with an institution of higher
education and technical expertise in water
quality.
``(iii) Nine individuals, of whom at least
one shall have professional experience and
expertise in each of the following areas:
``(I) Urban storm water issues.
``(II) Agricultural storm water
issues.
``(III) Urban and suburban
development.
``(IV) Water quality modeling.
``(V) Economics.
``(VI) Agronomy, crop science, or
soil science.
``(VII) Wastewater treatment
systems.
``(VIII) Marine biology or fish and
wildlife habitats.
``(IX) Applying for and complying
with building permits.
``(iv) Four individuals, at least one of
whom shall be affiliated with each of the
following:
``(I) An environmental or
conservation organization.
``(II) A fishing, hunting, or
outdoor sporting organization operating
in the Chesapeake Bay watershed.
``(III) Nongovernmental agriculture
producer associations or other groups
of producers related to livestock.
``(IV) Agricultural conservation
organizations with an established
history of working cooperatively with
producers on agricultural lands.
``(B) Term.--Each member of the Advisory Committee
shall be appointed for a term of two years. No member
may be appointed for more than three terms.
``(C) Meetings.--The Advisory Committee shall meet
on a quarterly basis.
``(5) Bylaws.--The Advisory Committee shall establish any
bylaws necessary for the advisory committee to carry out its
duties under this subsection. Such bylaws shall include
provisions to prevent any conflict of interest or the
appearance of any conflict of interest in the actions taken or
recommendations made by the Advisory Committee or by any member
of the Advisory Committee.
``(6) Administrative support.--The Secretary of Agriculture
shall provide to the Advisory Committee any administrative
support services necessary for the Advisory Committee to carry
out its responsibilities under this section.
``(7) Coordination.--To avoid duplication of effort, the
Advisory Committee shall coordinate activities with other
Federal advisory committees working in related areas.
``(8) No regulatory authority.--The Advisory Committee does
not have the authority to recommend or promulgate
regulations.''.
(e) Nitrogen, Phosphorus, and Sediment Trading Technical
Guidelines.--Section 117 of the Federal Water Pollution Control Act (33
U.S.C. 1267) is amended by inserting after subsection (l) (as added by
subsection (d)), the following new subsection:
``(m) Nitrogen, Phosphorus, and Sediment Trading Technical
Guidelines.--
``(1) Establishment.--Not later than 14 months after the
date of enactment of the Chesapeake Bay Program Reauthorization
and Improvement Act, the Administrator, in consultation with
the Secretary of Agriculture and the Chesapeake Bay States,
shall establish technical guidelines to be used by the
Chesapeake Bay Nutrient and Sediment Trading Commission in
establishing a voluntary interstate nitrogen, phosphorus, and
sediment trading program for the Chesapeake Bay.
``(2) Limitation on application.--Technical guidelines
established under this subsection shall not apply to
agricultural nonpoint sources or nonindustrial private forest
lands except to the extent that such guidelines consist of
guidelines issued under section 1245 of the Food Security Act
of 1985 (16 U.S.C. 3845).
``(3) Elements.--The technical guidelines established under
this subsection shall, at a minimum--
``(A) define and standardize nitrogen, phosphorus,
and sediment credits and establish procedures or
standards for ensuring equivalent water quality
benefits for all credits;
``(B) establish procedures or standards for credit
practices, for both point sources and nonpoint sources
(except as provided in paragraph (2)), that measure
reductions in nitrogen, phosphorus, and sediment from
credit-generating practices;
``(C) establish procedures or standards for
generating, quantifying, trading, banking, and applying
credits to meet regulatory requirements;
``(D) establish baseline requirements, relevant to
the credit being traded, that a credit seller must meet
before becoming eligible to generate saleable credits;
and
``(E) develop and incorporate an approach,
consistent with subsection (o), that creates a general
approval for trading, thereby avoiding the need to
reopen or reissue permits issued under section 402 to
incorporate individual trades.''.
(f) Authorization of Appropriations and Grant Authority.--Section
117 of the Federal Water Pollution Control Act (33 U.S.C. 1267) is
amended by inserting after subsection (m) (as added by subsection (e))
the following new subsection:
``(n) Funding.--
``(1) Authorization of appropriations.--There are
authorized to be appropriated to the Administrator for each of
fiscal years 2013 through 2018, to remain available until
expended--
``(A) $50,000,000 to carry out this section; and
``(B) $40,000,000 to support the Chesapeake Bay
States in carrying out activities related to a total
maximum daily nutrient or sediment load in the
Chesapeake Bay.
``(2) Incentive payments.--
``(A) Reservation of funds.--Of the amounts
appropriated under paragraph (1)(B), the Administrator
shall reserve the following percentages for allocation
in accordance with subparagraph (B):
``(i) Ten percent in each of fiscal years
2013 and 2014.
``(ii) Twenty percent in each of fiscal
years 2015 and 2016.
``(iii) Fifty percent in each of fiscal
years 2017 and 2018.
``(B) Allocation to chesapeake bay states.--
``(i) Determination.--For each fiscal year,
the Administrator, in consultation with the
Secretary of Agriculture and using information
provided in the report of the Advisory
Committee required under subsection (l), shall
determine whether each Chesapeake Bay State has
made sufficient progress toward meeting water
quality goals and is properly managing
financial resources intended to enable the
State to meet such goals.
``(ii) Allocation.--The Administrator, in
consultation with the Secretary of Agriculture,
shall allocate the amounts reserved under
subparagraph (A) in each fiscal year among the
Chesapeake Bay States the Administrator has
determined under clause (i) have made
sufficient progress toward meeting water
quality goals and are properly managing
financial resources intended to enable the
State to meet such goals.
``(C) Use of funds.--A State may use amounts
allocated under this paragraph for carrying out
activities related to a total maximum daily nutrient or
sediment load in the Chesapeake Bay.
``(3) Grants.--Of the amounts authorized to be appropriated
under paragraph (1)(B), after the reservation of funds under
paragraph (2)--
``(A) 30 percent shall be used for grants to any
municipal, intermunicipal, or State agency in a
Chesapeake Bay State, or to any interstate agency in
two or more Chesapeake Bay States, for the
construction, operation, and maintenance of publicly
owned treatment works, as defined in section 212;
``(B) 35 percent shall be used for grants to any
municipality in a Chesapeake Bay State for the
construction, operation, and maintenance of a municipal
separate storm sewer system subject to regulation under
section 402(p); and
``(C) 35 percent shall be distributed to the
Secretary of Agriculture to carry out section 1240Q(i)
of the Food Security Act of 1985 (which amounts shall
be in addition to funding provided under such Act).
``(4) Distribution.--
``(A) Priority.--The Administrator shall distribute
amounts under paragraphs (2), (3)(A), and (3)(B) with
priority given to Maryland, Virginia, Pennsylvania, and
the District of Columbia.
``(B) Minimum amount.--The Administrator shall
distribute to each Chesapeake Bay State not less than 7
percent of the amounts under paragraphs (3)(A) and
(3)(B).''.
(g) Total Maximum Daily Loads for Nitrogen, Phosphorus, or Sediment
in the Chesapeake Bay.--Section 117 of the Federal Water Pollution
Control Act (33 U.S.C. 1267) is amended by inserting after subsection
(n) (as added by subsection (f)), the following new subsection:
``(o) Total Maximum Daily Loads for Nitrogen, Phosphorus, or
Sediment in the Chesapeake Bay.--
``(1) Total maximum daily nutrient or sediment load in the
chesapeake bay duration.--Any total maximum daily nutrient or
sediment load in the Chesapeake Bay shall use timeframes other
than daily (such as annual, monthly, or seasonal) for certain
economic sectors, including agriculture, in which a nondaily
timeframe is appropriate.
``(2) Use of trading.--In any case in which a point source
is subject to an effluent limit in a permit issued under
section 402 for nitrogen, phosphorus, or sediment, such point
source may meet that permit limit in whole or in part through a
trade administered by the Chesapeake Bay Nutrient and Sediment
Trading Commission established by section 117A.
``(3) Corresponding load reductions.--For any total maximum
daily nutrient or sediment load in the Chesapeake Bay, a
process shall be developed--
``(A) to account for reductions in loadings to the
Chesapeake Bay watershed of nitrogen, phosphorus, and
sediment, including those achieved by entities that do
not have a total maximum daily load allocation for such
pollutants, and including reductions achieved by
restoration activities implemented by private entities,
local governments, States, and Federal agencies,
including the Department of Agriculture; and
``(B) to increase wasteload and load allocations on
a proportional basis by the amount of such reductions.
``(4) State implementation.--Powers are reserved solely to
the States to implement a total maximum daily nutrient or
sediment load in the Chesapeake Bay, including authority to
assign load and waste load allocations to individual sources
and source sectors to achieve a total maximum daily nutrient or
sediment load in the Chesapeake Bay. At the request of a
Chesapeake Bay State, the Administrator may review a State
implementation plan and offer non-binding recommendations for
consideration by the State, but may not take any action to
supersede any such State implementation.
``(5) Adaptive management.--
``(A) In general.--If a Chesapeake Bay State
develops a plan to implement a total maximum daily
nutrient or sediment load in the Chesapeake Bay that
provides for reductions in loading through an iterative
process that employs adaptive management principles,
permits may be issued under section 402 for new or
existing point source discharges that--
``(i) include wasteload allocations
consistent with such plan; and
``(ii) demonstrate progress towards
achieving the wasteload allocation specified in
such plan by treatment, trading, or other
means, in accordance with the schedule provided
in such plan, as determined by the permit
issuing authority.
``(B) Assessment of progress.--In assessing
sufficient progress by municipal dischargers and other
point sources toward meeting water quality goals and
plans, the availability, cost, effectiveness, and
appropriateness of practices, techniques, methods, or
other provisions for the control of such pollutants
shall be considered.
``(6) Options for offsetting of stormwater management
requirements.--An individual or entity undertaking land
development activities may meet the applicable stormwater
management requirements by offsetting such activities through
the establishment of stormwater management practices off-site
within the Chesapeake Bay watershed. Offsetting stormwater
management practices shall include, at a minimum, the
establishment of riparian forest buffers, streambank fencing,
or other best management practices on agricultural lands.
``(7) Relation to watershed partnerships.--A Chesapeake Bay
State may use funds made available to the State under section
319 for activities related to reducing losses of nitrogen,
phosphorus, or sediment from agricultural or nonindustrial
private forest land through a watershed partnership developed
under section 1240Q(i) of the Food Security Act of 1985. Use of
funds in such manner shall have no effect on the availability
to the State of other funds under this Act.''.
SEC. 3. ESTABLISHMENT OF INDEPENDENT COMMISSION TO OVERSEE AND
ADMINISTER NITROGEN, PHOSPHORUS, AND SEDIMENT TRADING
PROGRAM FOR CHESAPEAKE BAY STATES.
The Federal Water Pollution Control Act is amended by inserting
after section 117 (33 U.S.C. 1267) the following new section:
``SEC. 117A. CHESAPEAKE BAY NUTRIENT AND SEDIMENT TRADING COMMISSION.
``(a) Definitions.--In this section:
``(1) Commission.--The term `Commission' means the
Chesapeake Bay Nutrient and Sediment Trading Commission
established in subsection (b).
``(2) Chesapeake bay state.--The term `Chesapeake Bay
State' means Delaware, Maryland, New York, Pennsylvania,
Virginia, West Virginia, and the District of Columbia.
``(3) Chesapeake executive council.--The term `Chesapeake
Executive Council' means the signatories to the Chesapeake Bay
Agreement.
``(4) Chesapeake bay agreement.--The term `Chesapeake Bay
Agreement' means the formal, voluntary agreements executed to
achieve the goal of restoring and protecting the Chesapeake Bay
ecosystem and the living resources of the Chesapeake Bay
ecosystem and signed by the Chesapeake Executive Council.
``(b) Establishment of Commission; Purpose.--
``(1) In general.--There is established a Chesapeake Bay
Nutrient and Sediment Trading Commission to oversee and
administer a nitrogen, phosphorus, and sediment trading program
for the Chesapeake Bay States to ensure credits are generated
to attract market participants and facilitate trading
mechanisms among and within such States to meet water quality
goals.
``(2) Independent establishment.--The Commission shall be
an independent establishment, as defined in section 104 of
title 5, United States Code.
``(3) Location.--The Commission shall be housed at the
Office of the Chesapeake Bay Program directed by the Chesapeake
Executive Council in accordance with the Chesapeake Bay
Agreement.
``(c) Duties.--
``(1) Credits for water quality trading.--In consultation
with market developers, Chesapeake Bay States, and appropriate
Federal agencies, the Commission shall develop a system to
facilitate and generate credits for interstate water quality
trading among and within the Chesapeake Bay States.
``(2) Water quality trading registry.--The Commission shall
obtain information from the Administrator, the Secretary of
Agriculture, and other Federal agencies to operate and oversee
a registry for interstate water quality trading in the
Chesapeake Bay States.
``(3) Trade recordkeeping.--The Commission shall develop
and maintain a system to record specific interstate water
quality trades among and within the Chesapeake Bay States.
``(4) Point source and nonpoint source trades.--In
consultation with market developers and appropriate Federal
agencies, the Commission shall develop a system to allow for
trading to occur between point sources and nonpoint sources,
and any combination thereof, among and within the Chesapeake
Bay States.
``(5) Consistency with state program.--The Commission shall
not establish or operate a program that conflicts with or
modifies a State program for intrastate trading.
``(6) Deadline; publication.--Not later than 2 years after
the date of enactment of the Chesapeake Bay Program
Reauthorization and Improvement Act, the Commission shall
promulgate rules for interstate water quality trading among and
within the Chesapeake Bay States, and shall publish such rules
in the Federal Register.
``(d) Use of Technical Guidelines.--The Commission shall rely on
the Administrator to provide technical guidelines under section 117(m)
and the Secretary of Agriculture to provide technical guidelines under
section 1245(b) of the Food Security Act of 1985.
``(e) Members of Commission.--
``(1) Composition.--The Commission shall consist of five
members, of which--
``(A) one member shall be appointed by the
Secretary of Agriculture;
``(B) one member shall be appointed by the
Administrator; and
``(C) three members shall be appointed jointly by
the Administrator and the Secretary of Agriculture from
among persons nominated by the Governors of each of the
signatory States of the Chesapeake Bay Agreement.
``(2) Special considerations.--Of the members of the
Commission--
``(A) one member shall be a representative of the
general public;
``(B) not more than two of the members may have
similar professional experience or expertise in the
same field;
``(C) at least one of the members shall be
experienced in a market-based pollutant trading
mechanism; and
``(D) not more than three of the members may be of
the same political party.
``(3) Terms.--The members of the Commission shall serve a
term of five years and may be reappointed.
``(4) Chairperson.--The members of the Commission shall
designate one of the members to serve as chairperson.
``(5) Meetings.--The Commission shall meet at the call of
the chairperson or a majority of its members, and shall hold
public meetings at intervals as are necessary to carry out the
functions of the Commission, but not less frequently than 2
times per year.
``(f) Officers and Staff.--The Commission may appoint, employ, fix
the pay of, and provide other allowances and benefits for such officers
and employees of the Commission as the members determine to be
appropriate.
``(g) Relationship With Other Entities.--
``(1) Liaisons.--
``(A) Commission liaisons.--
``(i) In general.--The Commission shall, in
cooperation with the Administrator and the
Secretary of Agriculture, maintain--
``(I) a liaison between the
Commission and the Environmental
Protection Agency; and
``(II) a liaison between the
Commission and the Department of
Agriculture.
``(ii) Effective maintenance.--The
Administrator and Secretary of Agriculture
shall take such steps as may be necessary to
enable the Commission to obtain information and
utilize such services and facilities of the
Environmental Protection Agency and Department
of Agriculture as may be necessary in order to
maintain effectively such liaisons.
``(B) Agency liaison officers.--The Administrator
and Secretary of Agriculture shall each appoint a
liaison officer, who shall be an employee of the
Environmental Protection Agency and the Department of
Agriculture, respectively, for the purpose of
communicating with the liaison maintained under
subparagraph (A) and the Commission.
``(C) Attendance.--The Commission shall allow the
liaisons and liaison officers to attend and observe all
deliberations and proceedings of the Commission.
``(2) Maintenance of communications.--The Commission shall
maintain communications with the Chesapeake Executive Council
and the Chesapeake Bay States for the purposes of--
``(A) keeping such entities fully informed of
Commission activities that relate to the
responsibilities of those entities;
``(B) seeking views of those entities on such
activities; and
``(C) consultation with such entities regarding the
relationships between Commission activities and the
jurisdiction of such entities.
``(h) Duration.--The Commission shall terminate on September 30,
2018.''.
SEC. 4. CHESAPEAKE BAY WATERSHED PARTNERSHIPS.
Section 1240Q of the Food Security Act of 1985 (16 U.S.C. 3839bb-4)
is amended--
(1) by striking subsection (a) and inserting the following:
``(a) Definitions.--In this section:
``(1) Chesapeake bay state.--The term `Chesapeake Bay
State' or `State' means Delaware, Maryland, New York,
Pennsylvania, Virginia, West Virginia, and the District of
Columbia.
``(2) Chesapeake bay watershed.--The term `Chesapeake Bay
watershed' means all tributaries, backwaters, and side
channels, including their watersheds, draining into the
Chesapeake Bay.
``(3) Chief executive.--The term `chief executive' means--
``(A) in the case of a State or Commonwealth, the
Governor of the State or Commonwealth; and
``(B) in the case of the District of Columbia, the
Mayor of the District of Columbia.''; and
(2) by adding at the end the following new subsection:
``(i) Chesapeake Bay Watershed Partnerships.--
``(1) In general.--At the request of the chief executive of
a Chesapeake Bay State, the Secretary shall enter into a
memorandum of understanding with such chief executive
establishing a partnership between the Secretary and the State
(in this subsection referred to as a `watershed partnership')
in accordance with this subsection.
``(2) Watershed strategy.--Each watershed partnership may
establish a watershed strategy for demonstrating aggregate
reductions in losses of nitrogen, phosphorus, and sediment, on
a basin or subbasin scale in the Chesapeake Bay watershed, from
agricultural or nonindustrial private forest land in the State,
including developing processes for--
``(A) identifying basins or subbasins in which
implementation of enhanced conservation practices could
significantly impact water quality;
``(B) identifying achievable and cost-effective
conservation practices that result in such reductions
to improve water quality;
``(C) statistically validating and verifying
conservation practices;
``(D) establishing methods of estimating such
reductions that are statistically valid and accurate,
based on field- and farm-level surveys conducted by the
Secretary, to the extent practicable using existing
data collection methods; and
``(E) collecting other relevant information on
practices that demonstrate such reductions, as
determined by the Secretary and the chief executive of
the State.
``(3) Assurance.--
``(A) Establishment of assurance process.--Each
watershed strategy established by a watershed
partnership shall require the chief executive of the
State, in collaboration with the Secretary, to
establish an assurance process in which producers or
owners of nonindustrial private forest land in the
State may participate if such producers or owners of
nonindustrial forest land are qualified under
subparagraph (B) by implementing and maintaining
conservation practices, on agricultural or
nonindustrial forest land in the Chesapeake Bay
watershed, that are designed to reduce losses of
nitrogen, phosphorus, and sediment from such land, as
determined by the State.
``(B) Qualified producers and owners.--For the
purposes of this paragraph, a qualified producer or
owner of nonindustrial private forest land is a
producer or owner of nonindustrial private forest land
that implements and maintains conservation practices,
on agricultural or nonindustrial forest land in the
Chesapeake Bay watershed, that are designed to reduce
losses of nitrogen, phosphorus, and sediment from such
land, as determined by the State.
``(C) Effect of participation in assurance
process.--
``(i) In general.--A qualified producer or
owner of nonindustrial private forest land that
participates in an assurance process under this
paragraph shall be considered to be in full
compliance with applicable water quality
requirements, if any, regarding nitrogen,
phosphorus, and sediment in the Chesapeake Bay
watershed, with respect to such land, such that
no additional water quality-related
conservation practices may be required on such
land during the period of time in which the
producer or owner of nonindustrial private
forest land participates in the assurance
process.
``(ii) Operations on land.--Operations on
such land conducted by such a qualified
producer or owner shall not be considered to be
a significant contributor of nitrogen,
phosphorus, or sediment to waters in the
Chesapeake Bay watershed.
``(D) Verification.--The chief executive of the
State shall verify conservation practices maintained by
qualified producers and owners participating in an
assurance process under this paragraph.
``(4) Use of existing programs required.--In accordance
with subsection (e)(1), a watershed partnership shall use
existing programs, including for risk assessment, conservation
planning, measurement and assessment of progress in improving
water quality, and validation and verification of practices in
the State to reduce losses of nitrogen, phosphorus, and
sediment from agricultural or nonindustrial private forest land
in the Chesapeake Bay watershed.
``(5) State water quality goals.--The chief executive of a
State that has entered into a watershed partnership under this
subsection shall ensure that any watershed strategy established
under paragraph (2) is incorporated into the overall water
quality goals established by the State, on a basin or subbasin
level, for agricultural and nonindustrial private forest land
in the State.
``(6) Assessments of progress.--
``(A) Assessment.--Not later than 5 years after the
date on which a watershed partnership is established
under paragraph (1), and every 5 years thereafter, the
chief executive of the Chesapeake Bay State shall make
public an assessment of the progress in the State in
reducing losses of nitrogen, phosphorus, and sediment
from agricultural and nonindustrial private forest land
in the Chesapeake Bay watershed, on a basin or subbasin
level, in accordance with the water quality goals of
the State described in paragraph (5). Such assessment
shall incorporate an analysis of data developed and
published under subparagraph (B).
``(B) Development and publication of data.--The
Secretary shall publish in a conservation assessment
report issued by the Natural Resources Conservation
Service data developed by the Secretary for
incorporation into assessments required under
subparagraph (A).
``(C) Effect of assessment.--If the chief executive
of a Chesapeake Bay State determines, in an assessment
required under subparagraph (A), that aggregate
reductions in losses of nitrogen, phosphorus, and
sediment from agricultural and nonindustrial private
forest land in a basin or subbasin of the Chesapeake
Bay watershed in the State have been achieved in
accordance with the water quality goals of the State
described in paragraph (5)--
``(i) during a period determined by the
chief executive of the State, no further
reductions in losses of nitrogen, phosphorus,
or sediment may be required by the State or
Federal Government from agricultural or
nonindustrial private forest land in the basin
or subbasin; and
``(ii) during such period, no operations
conducted on agricultural or nonindustrial
private forest land in the basin or subbasin
shall be considered to be a significant
contributor of nitrogen, phosphorus, or
sediment to waters in the Chesapeake Bay
watershed.
``(7) Assistance from secretary.--
``(A) Technical assistance.--In carrying out a
watershed partnership, the Secretary shall provide
technical assistance--
``(i) to the State to assist in developing
the water quality goals of the State to result
in reductions in losses of nitrogen,
phosphorus, and sediment from agricultural or
nonindustrial private forest land in the
Chesapeake Bay watershed to improve water
quality in the Chesapeake Bay watershed; and
``(ii) to producers and owners of
nonindustrial private forest land in the
State--
``(I) for education regarding
activities they can undertake to reduce
losses of nitrogen, phosphorus, and
sediment from such land in the
Chesapeake Bay watershed; and
``(II) for assistance with
conservation planning, implementation,
and maintenance to reduce losses of
nitrogen, phosphorus, and sediment from
such land in the Chesapeake Bay
watershed.
``(B) Economic analysis.--In providing assistance
under this paragraph, the Secretary shall consider the
practicability and economic achievability of the
conservation practices that may be needed to reduce
losses of nitrogen, phosphorus, and sediment from
agricultural or nonindustrial private forest land in
the Chesapeake Bay watershed to improve water quality
in the Chesapeake Bay watershed.
``(8) Rule of construction.--Nothing in this subsection may
be construed as a grant of regulatory authority to the
Secretary.''.
SEC. 5. TECHNICAL GUIDELINES FOR ENVIRONMENTAL SERVICES MARKETS.
(a) Types of Guidelines Required.--
(1) Impaired watershed guidelines.--Section 1245(a) of the
Food Security Act of 1985 (16 U.S.C. 3845(a)) is amended by
adding at the end ``In addition, not later than 14 months after
the date of the enactment of the Chesapeake Bay Program
Reauthorization and Improvement Act, the Secretary shall
establish guidelines for farmer, rancher, and forest landowner
participation in voluntary nutrient and sediment trading
systems established for the purpose of addressing impaired
watersheds.''.
(2) Additional guidelines.--Section 1245(b) of the Food
Security Act of 1985 (16 U.S.C. 3845(b)) is amended by striking
paragraphs (1), (2), and (3) and inserting the following new
paragraphs:
``(1) Methodologies for quantifying environmental service
benefits.
``(2) Baseline methodologies for environmental service
benefits.
``(3) Methodologies to account for reversals and leakage
for environmental services markets.
``(4) Methodologies for verification of the environmental
service benefits.
``(5) A protocol to report environmental service benefits.
``(6) A registry to collect, record, and maintain the
benefits measured.
``(7) A procedure to verify and ensure that environmental
service benefits comply with Federal and State regulations.''.
(3) Conforming amendments.--Section 1245(c)(1) of the Food
Security Act of 1985 (16 U.S.C. 3845(c)(1)) is amended--
(A) by striking ``paragraph (2)'' and inserting
``paragraph (5)''; and
(B) by striking ``paragraph (3)'' and inserting
``paragraph (6)''.
(b) Additional Requirements.--Section 1245 of the Food Security Act
of 1985 (16 U.S.C. 3845) is amended by adding at the end the following
new subsections:
``(f) List of Eligible Activities.--
``(1) List required.--The Secretary shall publish a list of
eligible domestic agricultural and forestry activities that
result in environmental service benefits.
``(2) Deadline; publication.--Not later than 14 months
after the date of the enactment of the Chesapeake Bay Program
Reauthorization and Improvement Act, the Secretary shall
publish in the Federal Register the list of domestic
agricultural and forestry activities that are eligible for
trading under the guidelines established under subsection (a).
``(3) Recommendations.--In preparing the list under this
subsection, the Secretary shall take into consideration the
recommendations of the entities referred to in subsection (e).
``(4) Additions and revisions.--Not later than 4 years
after the date of the enactment of the Chesapeake Bay Program
Reauthorization and Improvement Act, and every two years
thereafter, the Secretary shall update and revise the list
prepared under this subsection. The updates and revisions shall
be made only after the Secretary provides an opportunity for
public notice of and an opportunity for comment on the proposed
updates and revisions.
``(g) Guidelines for Provision of Technical Assistance.--
``(1) Verification guidelines.--The Secretary shall
establish guidelines for, and provide, technical assistance
under this section to ensure that--
``(A) environmental service benefits have been
implemented properly; and
``(B) the quantification of such benefits has
resulted in an environmental benefit.
``(2) Technical assistance provider accreditation.--As part
of the guidelines established under this section, the Secretary
shall develop a process and requirements for periodic
accreditation of certified technical assistance providers for
environmental service benefits to ensure that such providers
are professionally qualified and have no conflicts of interest.
Each technical service provider meeting the requirements for
accreditation in accordance with this paragraph shall be listed
in a publicly accessible database, which shall be maintained
and updated by the Secretary.''.
SEC. 6. CHESAPEAKE BAY WATERSHED PILOT PROGRAM FOR CREATING
ENVIRONMENTAL SERVICE MARKETS.
Section 1240Q of the Food Security Act of 1985 (16 U.S.C. 3839bb-4)
is amended by inserting after subsection (i) (as added by section 4),
the following new subsection:
``(j) Pilot Program for Creating Environmental Service Markets.--
``(1) Establishment.--The Secretary shall establish a pilot
program for the Chesapeake Bay watershed, for the facilitation
of creating environmental service markets based on the
guidelines outlined in section 1245(g), that does not result in
removing eligible land wholly from agricultural production or
eliminating the economic viability of such agricultural
production. The Secretary shall ensure that the pilot program
is consistent with local government rules and the policies,
protocols, and regulations established under existing
environmental service markets and State trading programs in the
Chesapeake Bay watershed.
``(2) Transmission of data to chesapeake bay nutrient and
sediment trading commission.--The Secretary shall transmit to
the Chesapeake Bay Nutrient and Sediment Trading Commission
established under section 117A of the Federal Water Pollution
Control Act, any data the Secretary determines is necessary to
the effective administration of nutrient and sediment trading
programs administered by such Commission.''.
SEC. 7. OFFSET.
There is authorized to be appropriated to the Environmental
Protection Agency for the Environmental Programs and Management account
for each of fiscal years 2013 through 2018 the amount that is
$40,000,000 less than the amount appropriated for such account for
fiscal year 2012, to be derived from amounts available for
administrative expenses.
<all>
Introduced in House
Introduced in House
Sponsor introductory remarks on measure. (CR E329)
Referred to the Committee on Transportation and Infrastructure, and in addition to the Committees on Agriculture, and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Transportation and Infrastructure, and in addition to the Committees on Agriculture, and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Transportation and Infrastructure, and in addition to the Committees on Agriculture, and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Water Resources and Environment.
Referred to the Subcommittee on Environment and the Economy.
Referred to the Subcommittee on Conservation, Energy, and Forestry.
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