The Senate Environmental Resources and Energy Committee will hold a hearing on September 17 on the issue of nutrient credit trading that will help reduce the cost of complying with clean water mandates.

The Committee is asking for comments on Senate Bill 1493 (Vance-R-Cumberland) which would create a Nutrient Credit Trading Bank and provides enhancements to the state’s Nutrient Credit Trading program. (A companion bill was also introduced in House Bill 2654 (Hanna-D-Clinton).)

The Nutrient Credit Trading Bank is part of the Fair Share for Clean Water Plan promoted by a coalition of over 40 groups supporting creative implementation strategies for complying with Chesapeake Bay and other watershed-based clean water cleanup mandates.

A portion of the PA Fair Share Plan that provides funding to upgrade wastewater treatment plants was adopted as part of the budget in July, however, funding needed for farmers to meet the mandates and create tradable nutrient credits was not adopted. Those elements include:

· $50 million in direct cost share aid to farmers to install conservation practices ($35 for REAP farm tax credits and $15 million in cost share grants);

· $10 million to county conservation district to expand technical assistance to farmers;

· $10 million to restore cuts to the Department of Agriculture budget in farm programs; and

· Proposed reforms to the state’s nutrient credit trading program that will help to make it a viable alternative to provide for both environmental improvements to the Bay and sufficient future sewage capacity for new development.

The House Agriculture and Rural Affairs Committee has scheduled a hearing on agriculture conservation funding needs for August 20 at the Ag Progress Days farm show near State College.

Sen. Mary Jo White (R-Venango) serves as Majority Chair of the Committee and Sen. Ray Musto (D-Luzerne) serves as Minority Chair.

8/15/2008