70th OREGON LEGISLATIVE ASSEMBLY--1999 Regular Session

NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .

LC 4008

                        Senate Bill 1112

Sponsored by Senator FERRIOLI


                             SUMMARY

The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.

  Requires Department of Environmental Quality to develop and
implement pilot program for water pollutant trading. Appropriates
moneys.
  Sunsets pilot program on July 1, 2002.
  Declares emergency, effective July 1, 1999.

                        A BILL FOR AN ACT
Relating to water pollutant trading; appropriating money; and
  declaring an emergency.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + Section 2 of this 1999 Act is added to and made
a part of ORS chapter 468B. + }
  SECTION 2.  { + (1) Not later than July 1, 2000, the Department
of Environmental Quality shall implement a pilot program that
allows the trading of quantities of pollutants that may be
discharged into the waters of the state. The pilot program shall
include:
  (a) Procedures and methods that allow two or more persons to
enter into a contract or other enforceable agreement to offset or
trade quantities of pollutants in a manner that:
  (A) Results in a net reduction of pollutants;
  (B) Assists in meeting water quality standards; and
  (C) Implements total maximum daily load allocations.
  (b) Oversight and administration by the department of the
contracts or agreements described in paragraph (a) of this
subsection.
  (2) The department shall develop the program under subsection
(1) of this section in the manner most appropriate to meet state
and federal water quality standards and promote economic
efficiency. In developing the program, the department shall:
  (a) First, address the following pollutants or conditions:
  (A) Nitrogenous and phosphorus compounds commonly referred to
as nutrients;
  (B) Suspended solids commonly referred to as sediment; and
  (C) Biological oxygen demand.
  (b) Second, address other pollutants and conditions, including
toxic substances or temperature.
  (c) Third, employ methods or mechanisms that avoid or minimize:
  (A) A net reduction of agricultural production capacity;
  (B) The purchase of property solely for the purpose of engaging
in pollutant trading;
  (C) Trades over distances exceeding 50 miles; and
  (D) Trades of dissimilar pollutants.
  (3) The emphasis of the department shall be on practical
procedures that can be implemented using reasonable estimations
and engineering judgment where warranted. + }
  SECTION 3.  { + To the extent necessary, the Department of
Environmental Quality shall seek any approvals, waivers or
authorizations from the United States Environmental Protection
Agency needed to implement the pilot program under section 2 of
this 1999 Act. Nothing in this section or section 2 of this 1999
Act shall be construed to allow any activity expressly prohibited
by federal law or regulation. + }
  SECTION 4.  { + Sections 2 and 3 of this 1999 Act are repealed
on July 1, 2002. + }
  SECTION 5.  { + In addition to and not in lieu of any other
appropriation, there is appropriated to the Department of
Environmental Quality, for the biennium beginning July 1, 1999,
out of the General Fund, the sum of $100,000, which may be
expended for implementation of the program established under
sections 2 and 3 of this 1999 Act upon receipt by the department
of federal funds for the program in an amount equal to or greater
than $100,000. + }
  SECTION 6.  { + This 1999 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 1999 Act takes effect July 1,
1999. + }
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