1.Short title; table of
contents
(a)This Act may be cited
as the Chesapeake Bay Program
Reauthorization and Improvement Act
.
(b)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.
2.Modification of
Chesapeake Bay Program under Federal Water Pollution Control Act
(a)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)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)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 landThe 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)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 BayThe 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 reportSection 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)
(1)Financial report
requiredWith 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)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
accountabilitySection 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)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)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)
(A)The Administrator
shall complete an economic analysis of each agency statement described in
subparagraph (B) that is issued by the Administrator.
(B)Agency statement
describedAn 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)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)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)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)
(A)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)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)The
Administrator shall enhance and update the website as
necessary.
.
(d)Independent
evaluation and technical advisory committee for Chesapeake bay
programSection 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)There is established an Independent
Evaluation and Technical Advisory Committee (in this subsection referred to as
the Advisory Committee
).
(2)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)
(A)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 reviewThe
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)
(A)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)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)The
Advisory Committee shall meet on a quarterly basis.
(5)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)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)To avoid duplication of effort, the
Advisory Committee shall coordinate activities with other Federal advisory
committees working in related areas.
(8)The Advisory
Committee does not have the authority to recommend or promulgate
regulations.
.
(e)Nitrogen,
Phosphorus, and Sediment Trading Technical GuidelinesSection 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)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
applicationTechnical 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)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 authoritySection 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)
(1)Authorization of
appropriationsThere 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)
(A)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)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)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)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)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)
(A)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)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
BaySection 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 durationAny 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)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 reductionsFor 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)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)
(A)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)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 requirementsAn 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 partnershipsA
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.
.
3.Establishment of
independent commission to oversee and administer nitrogen, phosphorus, and
sediment trading program for Chesapeake Bay StatesThe
Federal Water Pollution Control Act is amended by inserting after section 117
(33 U.S.C. 1267) the following new section:
117A.Chesapeake Bay
Nutrient and Sediment Trading Commission
(a)In
this section:
(1)The term Commission means the
Chesapeake Bay Nutrient and Sediment Trading Commission established in
subsection (b).
(2)The term
Chesapeake Bay State means Delaware, Maryland, New York,
Pennsylvania, Virginia, West Virginia, and the District of Columbia.
(3)Chesapeake
Executive CouncilThe term Chesapeake Executive
Council means the signatories to the Chesapeake Bay Agreement.
(4)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)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
establishmentThe Commission shall be an independent
establishment, as defined in section 104 of title 5, United States Code.
(3)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)
(1)Credits for
water quality tradingIn
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 registryThe
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)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 tradesIn
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 programThe Commission shall not establish or operate a
program that conflicts with or modifies a State program for intrastate
trading.
(6)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
guidelinesThe 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)
(1)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)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)The
members of the Commission shall serve a term of five years and may be
reappointed.
(4)The members of the Commission shall
designate one of the members to serve as chairperson.
(5)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)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)
(A)
(i)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)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)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)The Commission shall allow the liaisons and
liaison officers to attend and observe all deliberations and proceedings of the
Commission.
(2)Maintenance of
communicationsThe 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)The
Commission shall terminate on September 30,
2018.
.
4.Chesapeake Bay
watershed partnershipsSection
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)In this section:
(1)The term Chesapeake Bay State or
State means Delaware, Maryland, New York, Pennsylvania, Virginia,
West Virginia, and the District of Columbia.
(2)The term
Chesapeake Bay watershed means all tributaries, backwaters, and
side channels, including their watersheds, draining into the Chesapeake
Bay.
(3)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)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)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)
(A)Establishment of
assurance processEach
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 ownersFor 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)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 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)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 requiredIn
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 goalsThe 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)
(A)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 dataThe 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)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)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)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)Nothing in this subsection may be construed as a
grant of regulatory authority to the
Secretary.
.
5.Technical
guidelines for environmental services markets
(a)Types of
guidelines required
(1)Impaired
watershed guidelinesSection
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)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)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)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)The Secretary shall
publish a list of eligible domestic agricultural and forestry activities that
result in environmental service benefits.
(2)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)In
preparing the list under this subsection, the Secretary shall take into
consideration the recommendations of the entities referred to in subsection
(e).
(4)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)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 AccreditationAs 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.
.
6.Chesapeake Bay
watershed pilot program for creating environmental service
marketsSection 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)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 CommissionThe 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.
.
7.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.