Wisconsin 2019-2020 Regular Session Status: Enacted Bipartisan · 4 R · 2 D cosponsors

SB 91 — Relating to: buying and selling water pollution credits through a central clearinghouse. (FE)

Last action — Published 3-4-2020

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed Assembly
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced March 13, 2019. Enacted.

Prognosis

Likely to advance 98% · high confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 15 sponsors

    15 primary, 0 co-sponsors signed on.

  • Bipartisan support

    Sponsored across 2 parties (4 R · 2 D) — cross-party backing.

  • Cleared a recorded vote

    Passed 5 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Bill Text

What changed in the latest version

223 added · 108 removed

Plain-language change summary

The recent amendments to Senate Bill 91 clarify how "water pollution credits" are defined and traded, updating the terminology and requirements for the trading process. Now, the bill specifies that the credits must be approved by the Department of Natural Resources, rather than relying on broader terms like "prevention or environmental enhancement services." This change is important because it streamlines the process and ensures that the water pollution credit system is based on specific activities aimed at reducing pollution, potentially making it more efficient and effective in managing water quality.

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- 2020 LEGISLATURE LRBa0103/1 MCP&ZDW:ahe&kjf SENATE AMENDMENT 1, TO SENATE BILL 91 March 26, 2019 - Offered by SenatoOWLES.
- 2020 LEGISLATURE LRB-1244/1 MCP:ahe SENATE BILL 91 March 13, 2019 - Introduced by Senators C OWLES , ETROWSKI , BERNIER, DARLING, F EYEN, JACQUE , JOHNSON , LARSON , MARKLEIN , MILLER, O LSEN, RINGHAND , S CHACHTNER , S TROEBEL and T ESTIN, cosponsored by Representatives K ITCHENS, O LDENBURG , GRUSZYNSKI , TAUCHEN , KRUG , BROOKS , CONSIDINE, D UCHOW , EDMING, EMERSON , FELZKOWSKI, FIELDS, HEBL, KURTZ, LOUDENBECK , M ACCO , MURSAU , YGREN , OTT, RONSCHINSKE , QUINN, RAMTHUN , ROHRKASTE , S ANFELIPPO, INICKI, KOWRONSKI , NYDER , PREITZER, SPIRO, STEFFEN, TUCK , S UMMERFIELD , ITTL, USLER and V RUWINK .
At the locations indicated, amend the bill as follows:
Referred to Committee on Natural Resources and Energy.
A N A CT to amend 283.84 (1m) (d);
and to create 16.9685, 283.84 (1) (f), 283.84 (1) (g), 283.84 (1m) (e) and 283.84 (5) of the statutes;
relating to:
buying and selling water pollution credits through a central clearinghouse.
Analysis by the Legislative Reference Bureau This bill creates a system for buying and selling water pollution credits through a central clearinghouse.
Under current law, the Department of Natural Resources administers a program for trading water pollution credits between sources of water pollution.
Under the program, DNR may authorize a person (permit holder) who holds a water pollution discharge elimination system (WPDES) permit or a storm water discharge permit to discharge a pollutant above the levels authorized in the permit if the permit holder enters into an agreement with another party under which the other party will reduce water pollution.
The agreement must result in an improvement in water quality, and the increase and reduction in pollutants under the agreement must involve the same pollutant or the same water quality standard and occur within the same water basin.
Under this bill, DNR may authorize a permit holder to discharge a pollutant above the levels authorized in the permit if the permit holder purchases credits from a clearinghouse that has contracted with the Department of Administration.
The purchase of credits must result in an improvement in water quality, and the increase and reduction in pollutants under the agreement must involve the same pollutant or the same water quality standard and occur within the same area, as determined - 2020 Legislature - 2 - LRB-1244/1 MCP:ahe SENATE BILL 91 by DNR.
That area must be the largest area possible within this state to facilitate implementation of the water pollution trading program while achieving water quality standards and any federally approved total maximum daily load allocations.
The bill also allows DNR to authorize a permit holder to discharge a pollutant above the levels authorized in the permit if the permit holder enters into a contract with a third party that works with other sources of water pollution to reduce the amount of water pollution that those other sources cause.
The bill requires DOA to solicit vendors to operate as the single clearinghouse in this state for the purpose of buying and selling water pollution credits.
The department may not contract with a clearinghouse unless the clearinghouse has established certain policies and procedures specified under the bill.
Under the bill, the term of a contract between DOA and a clearinghouse is five years.
Under the bill, the clearinghouse that contracts with DOA must generate credits by entering into agreements with parties to reduce pollution;
maintain a bank of credits;
sell credits to any person;
establish and maintain a centralized registry of credits generated and sold in this state;
and maintain an Internet-based platform to facilitate the location of potential buyers, available credits, and other information that will facilitate credit transactions.
Credits must be generated with the clearinghouse at a ratio of one credit for every 1.2 units, at a minimum, of pollution reduction.
When the clearinghouse contracts with a party for pollution reduction activities, the clearinghouse must also seek to minimize transaction costs, maximize the performance of the pollution reduction activities, and reduce the overall amount of pollutants introduced into the applicable area.
The bill also allows DOA to contract with the clearinghouse to further the implementation of any adaptive management, multidischarger variance, water quality trading, or future market-based water quality programs in this state.
For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
SECTION 1.
16.9685 of the statutes is created to read:
16.9685 Clean water clearinghouse.
(1) In this section, “water pollution prevention or environmental enhancement services” means any activity, practice, or project undertaken by any person who certifies that it will result in a quantifiable reduction of a specified pollutant in the overall mass balance of water pollution over a specified period of time.
LRB-1244/1 - 2020 Legislature - 3 - MCP:ahe S ECTION 1 SENATE BILL 91 (2) The department shall solicit services from a single clearinghouse to perform the functions under subs.
(3) to (5).
The department may not enter into a contract with a clearinghouse under this section unless the department determines that all of the following requirements have been met:
(a) The clearinghouse has established or is capable of establishing the contract terms, conditions, and information required to document and enforce transactions under sub.
(3) (a) and (c) in a commercially reasonable manner.
(b) The clearinghouse has established a policy that requires a commercially reasonable amount of financial reserves, insurance, reserve credit pool, or other risk management mechanism for use in the event that a party defaults on an agreement under sub.
(3) (a).
(c) The clearinghouse has established a commercially reasonable process for soliciting and entering into transactions under sub.
(3) (a) and (c).
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(d) The clearinghouse has established a clearly defined fee structure describing the manner in which and the amount that the clearinghouse will be paid for facilitating and executing transactions under sub.
(3) (a) and (c).
(e) The clearinghouse has the capability to facilitate and execute transactions under sub.
(3) (a) and (c).
(f) The clearinghouse has satisfied all other applicable requirements to transact business in this state.
(g) The clearinghouse and the department have consulted with the department of natural resources about the terms of the contract.
(3) The clearinghouse with which the department enters into a contract under sub.
(2) shall be the primary entity responsible for facilitating a financially stable - 2020 Legislature - 4 - LRB-1244/1 MCP:ahe SENATE BILL 91 S ECTION 1 market for the activities described in this subsection and sub.
(4) and shall do all of the following:
(a) Produce credits by entering into contracts with other parties to undertake water pollution prevention or environmental enhancement services.
Each credit generated by a contracting party under this paragraph shall require the party to undertake at least 1.2 times that amount in water pollution prevention or environmental enhancement services.
(b) Maintain a bank of credits produced or to be produced under par.
(a).
(c) Sell credits produced under par.
(a) to any person.
(d) Seek to establish, with the approval of the department of natural resources, methods for determining the amount of credits that may be produced by various water pollution prevention or environmental enhancement services.
These methods may include tables and models based on the best available scientific protocols.
(e) When contracting with a party under par.
(a), determine the amount of credits that may be produced by the water pollution prevention or environmental enhancement services by using the methods established under par.
(d) or, if such methods are not available, by using environmental impact modeling approved by the department of natural resources.
(f) When contracting with a party under par.
(a), seek to do all of the following:
Page 2, line 2:
Minimize transaction costs.
delete the material beginning with ““water pollution" and ending with “period of time" on line 6 and substitute ““credits” means water pollution credits that may be traded under s.
283.84 (1) (f) and (g)”.
Page 3, line 2:
Maximize the performance of the water pollution prevention or environmental enhancement services.
delete “(3) to (5)" and substitute “(3), (5), and (6)".
Page 3, line 21:
Reduce the overall amount of pollutants introduced into the applicable hydrologic area, as defined under s.
delete the material beginning with “clearinghouse" and ending with “about the terms of" on line 22 and substitute “department of natural resources has approved”.
283.84 (1m) (e) 2., over time.
4.
LRB-1244/1 - 2020 Legislature - 5 - MCP:ahe SECTION 1 SENATE BILL 91 (g) Establish and maintain a centralized registry of all credits generated and sold in this state and of the verification of all such credits and maintain an Internet-based platform to facilitate the location of potential credit buyers, available credits, and any other information that will facilitate credit transactions.
Page 4, line 4:
The clearinghouse shall report this and other pertinent trading information annually to the department and to the department of natural resources.
delete “prevention or environmental enhancement services" and substitute “reduction activities".
The clearinghouse shall enter into a data-sharing agreement with the department of natural resources to facilitate the clearinghouse's ability to collect and make publicly available pertinent information relating to water quality improvement programs administered in this state.
LRBa0103/1 - 2020 Legislature - 2 - MCP&ZDW:ahe&kjf 5.
(4) The clearinghouse with which the department enters into a contract under sub.
Page 4, line 6:
(2) may do any of the following:
delete the material beginning with “prevention or" and ending with “environmental enhancement services" on line 7 and substitute “reduction activities”.
(a) Charge fees and use funds received for general program operations of the clearinghouse, including costs associated with facilitating transactions, purchasing water pollution prevention or environmental enhancement services, and repayment of funds granted or loaned to the clearinghouse.
6.
(b) Hold excess funds in trust for the purpose of making grants, in collaboration with county land conservation offices, the department of natural resources, or the department of agriculture, trade and consumer protection, for targeted water pollution prevention, water pollution remediation, and other environmental enhancement projects that improve the water quality of this state.
Page 4, line 10:
(c) Establish a reserve pool of credits produced under sub.
delete the material beginning with “Seek to establish" and ending with “methods for determining" on line 11 and substitute “Use methods approved by the department of natural resources to determine”.
(3) (a) and maintain the reserve credit pool for the purpose of maintaining a risk management mechanism under sub.
7.
(2) (b).
Page 4, line 12:
- 2020 Legislature - 6 - LRB-1244/1 MCP:ahe SENATE BILL 91 SECTION 1 (d) Conduct research on other innovative approaches to environmental improvement.
delete “prevention or environmental enhancement services" and substitute “reduction activities".
(5) The department, in consultation with the department of natural resources, may contract with the clearinghouse under sub.
8.
(2) to further the implementation of any adaptive management, multidischarger variance, water quality trading, or future market-based water quality programs in effect in this state.
Page 4, line 13:
(6) The term of a contract entered into under sub.
after “scientific protocols." insert “The clearinghouse may recommend additional methods to the department of natural resources".
(2) shall be 5 years.
9.
The department may terminate a contract entered into under sub.
Page 4, line 15:
(2) if the clearinghouse fails to meet any of the requirements under this section or rules promulgated under s.
delete the material beginning with “prevention or environmental" and ending with “enhancement services" on line 16 and substitute “reduction activities”.
283.84.
10.
The department shall give the clearinghouse at least 120 days' notice of the default and a right to cure before terminating a contract under this subsection.
Page 4, line 16:
SECTION 2.
delete “established" and substitute “approved".
283.84 (1) (f) of the statutes is created to read:
11.
283.84 (1) (f) Reaches a binding, written agreement with a clearinghouse that holds a valid contract under s.
Page 4, line 16:
16.9685 to purchase credits from the clearinghouse, if the clearinghouse has consulted with the department about the agreement to the extent required under the contract under s.
delete the material beginning with “or, if such" and ending with “natural resources" on line 18.
16.9685.
12.
SECTION 3.
Page 4, line 19:
283.84 (1) (g) of the statutes is created to read:
delete “seek to".
283.84 (1) (g) Reaches a binding, written agreement approved by the department with a 3rd party under which the 3rd party agrees to work with one or more persons, other than the permit holder, to reduce the amount of water pollution that those persons cause below the levels of water pollution that those persons cause when the agreement is reached.
13.
If an agreement is reached under this paragraph, the person who is required to obtain a permit or the 3rd party shall notify the clearinghouse that holds a valid contract under s.
Page 4, line 20:
16.9685, if any, and shall report to the clearinghouse, in the time and manner specified by the department, any LRB-1244/1 - 2020 Legislature - 7 - MCP:ahe SECTION 3 SENATE BILL 91 information that the department, in consultation with the department of administration, determines is reasonable and necessary for the operation of the centralized registry under s.
delete “Minimize" and substitute “Seek to minimize".
16.9685 (3) (g).
14.
SECTION 4.
Page 4, line 21:
283.84 (1m) (d) of the statutes is amended to read:
delete lines 21 and 22 and substitute:
283.84 (1m) (d) The Except as provided under par.
“2.
(e) 1., the increase in pollutants and the reduction in pollutants occur within the same basin or portion of a basin, as determined by the department.
Seek to maximize the performance of the water pollution reduction activities.".
SECTION 5.
15.
283.84 (1m) (e) of the statutes is created to read:
Page 4, line 23:
283.84 (1m) (e) 1.
delete “Reduce" and substitute “Seek to reduce".
If the person has entered into an agreement under sub.
16.
(1) (f), the increase in pollutants and the reduction in pollutants occur within the same applicable hydrologic area, as determined by the department.
Page 4, line 24:
2.
delete “, over time".
In this paragraph, “applicable hydrologic area” means the largest area possible within this state to facilitate implementation of this section while achieving water quality standards and any applicable federally approved total maximum daily load allocations.
LRBa0103/1 - 2020 Legislature - 3 - MCP&ZDW:ahe&kjf 17.
SECTION 6.
Page 4, line 24:
283.84 (5) of the statutes is created to read:
after that line insert:
283.84 (5) The department may enter into a memorandum of understanding with the federal environmental protection agency relating to the administration of this section and s.
“4.
16.9685 in relation to the operations of a central clearinghouse.
Require a maintenance schedule approved by the department of natural resources to ensure that the credits are maintained throughout the time for which they are certified under sub.
SECTION 7.0Nonstatutory provisions.
(4).
(1) As soon as possible after the effective date of this act, the department of natural resources shall review any methods established by the clearinghouse under s.
(g) Before making a credit available for sale for use under s.
16.9685 (3) (d) and any environmental impact modeling proposed by the clearinghouse under s.
283.84 (1) (f), verify the credit by reporting to the department of natural resources any pertinent information regarding the credit and the related water pollution reduction activities, including the location of the activities;
16.9685 (3) (e) and shall approve such methods and models if they have been developed according to any applicable requirements under the - 2020 Legislature - 8 - LRB-1244/1 MCP:ahe SENATE BILL 91 SECTION 7 federal Water Pollution Control Act, as amended, 33 USC 1251 et seq., and any regulations or guidance documents adopted consistent with that act.
the type of practice or technology used;
any maintenance schedule;
the frequency of inspections;
the duration for which the credit is valid;
and the amount of credits generated by the water pollution reduction activities.”.
18.
Page 5, line 1:
delete “(g)" and substitute “(h)".
19.
Page 5, line 2:
delete “credits and" and substitute “credits that have been incorporated into permits under ch.
283.
The clearinghouse shall".
20.
Page 5, line 10:
after that line insert:
“(4) No later than 30 days after reviewing the information provided under sub.
(3) (g) and (h), the department of natural resources shall certify the amount of credits and the duration of the credits available for sale.”.
21.
Page 5, line 11:
delete “(4)" and substitute “(5)".
22.
Page 5, line 15:
delete “water pollution prevention or environmental enhancement services" and substitute “credits".
23.
Page 6, line 3:
delete that line and substitute:
LRBa0103/1 - 2020 Legislature - 4 - MCP&ZDW:ahe&kjf “(6) Upon the recommendation of the department of natural resources, the department".
24.
Page 6, line 5:
delete “multidischarger variance,".
25.
Page 6, line 7:
delete “(6)" and substitute “(7)".
26.
Page 6, line 11:
after that line insert:
“(8) If the contract with the clearinghouse is terminated or the clearinghouse ceases to function, the department of natural resources shall continue to administer all credit transactions then in effect until a new clearinghouse contract is established or until the terms of the individual parties' contracts expire.
(9) Before the end of the 4th year of any contract entered into under sub.
(2), the department of natural resources shall evaluate the clearinghouse and shall report its evaluation to the department.”.
27.
Page 7, line 3:
delete “s.
16.9685 (3) (g)." and substitute “s.
16.9685 (3) (h).
The 3rd party shall also verify the credit by reporting to the department of natural resources any pertinent information regarding the agreement and the related water pollution reduction activities, including the location of the activities;
the type of practice or technology used;
any maintenance schedule;
the frequency of inspections;
the duration for which the credit is valid;
and the amount of credits generated by the water pollution reduction activities.".
28.
Page 7, line 3:
after that line insert:
“S ECTION 3m.
283.84 (1e) of the statutes is created to read:
283.84 (1e) No later than 30 days after reviewing the information provided under s.
16.9685 (3) (g) and (h), the department shall certify the amount of credits and the duration of the credits available for sale.”.
LRBa0103/1 - 2020 Legislature - 5 - MCP&ZDW:ahe&kjf 29.
Page 7, line 10:
after “(f)" insert “or (g)".
30.
Page 7, line 15:
after that line insert:
“S ECTION 5m.
283.84 (3r) of the statutes is amended to read:
283.84 (3r) The department shall include terms and conditions related to agreements under sub.
(1) in new and reissued permits.
The department shall determine how to incorporate credits purchased under sub.
(1) (f) and the terms and conditions related to agreements entered into under sub.
(1) (g) into new and reissued permits.”.
31.
Page 7, line 21:
delete the material beginning with “As soon" and ending with “that act." on page 8, line 2, and substitute “The department of natural resources shall consult with the federal environmental protection agency regarding the generation and use of water pollution credits under s.
283.84 (1) (f) and (g) in watersheds subject to total maximum daily loads that have been federally approved or for which federal approval is pending, with the goal of maximizing the opportunities for the generation and use of long-term and permanent credits.”.
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Action History

  1. Published 3-4-2020

  2. Report approved by the Governor on 3-3-2020. 2019 Wisconsin Act 151

  3. Presented to the Governor on 2-28-2020

  4. LRB correction (Senate Amendment 1)

  5. LRB correction

  6. Report correctly enrolled

  7. Received from Assembly concurred in

  8. Ordered immediately messaged

  9. Read a third time and concurred in

  10. Rules suspended

  11. Ordered to a third reading

  12. Read a second time

  13. Placed on calendar 2-18-2020 by Committee on Rules

  14. Read first time and referred to committee on Rules

  15. Received from Senate

  16. Ordered immediately messaged

  17. Read a third time and passed, Ayes 32, Noes 0

  18. Rules suspended

  19. Ordered to a third reading

  20. Senate Amendment 2 laid on table, Ayes 30, Noes 2

  21. Senate Amendment 1 adopted

  22. Senate Amendment 1 to Senate Amendment 1 adopted

  23. Senator Carpenter added as a coauthor

  24. Read a second time

  25. Senate Amendment 2 offered by Senator Tiffany

  26. Placed on calendar 5-15-2019 pursuant to Senate Rule 18(1)

  27. Fiscal estimate received

  28. Representative Felzkowski withdrawn as a cosponsor

  29. Available for scheduling

  30. Report passage as amended recommended by Committee on Natural Resources and Energy, Ayes 5, Noes 0

  31. Report adoption of Senate Amendment 1 recommended by Committee on Natural Resources and Energy, Ayes 5, Noes 0

  32. Report introduction and adoption of Senate Amendment 1 to Senate Amendment 1 recommended by Committee on Natural Resources and Energy, Ayes 5, Noes 0

  33. Executive action taken

  34. Senate Amendment 1 offered by Senator Cowles

  35. Senator Hansen added as a coauthor

  36. Public hearing held

  37. Representative Subeck added as a cosponsor

  38. Read first time and referred to Committee on Natural Resources and Energy

  39. Introduced by Senators Cowles, Petrowski, Bernier, Darling, Feyen, Jacque, Johnson, Larson, Marklein, Miller, Olsen, Ringhand, Schachtner, Stroebel and Testin; cosponsored by Representatives Kitchens, Oldenburg, Gruszynski, Tauchen, Krug, Brooks, Considine, Duchow, Edming, Emerson, Felzkowski, Fields, Hebl, Kurtz, Loudenbeck, Macco, Mursau, Nygren, Ott, Pronschinske, Quinn, Ramthun, Rohrkaste, Sanfelippo, Sinicki, Skowronski, Snyder, Spreitzer, Spiros, Steffen, Stuck, Summerfield, Tittl, Tusler and Vruwink

Sponsors

Sponsorship breakdown

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15 sponsors · 0 co-sponsors · 117 not signed on

Sponsors (15)

Co-sponsors (0)

None.

Not signed on (117)

117 members have not signed on to this bill.

Show all 117 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

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Votes

PASSAGE

Passed 32 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 18001
Republican 8000
Democrat 6000
Total 32001
% of votes cast 97%0%0%3%
How each member voted (33)
Member Party Vote
BERNIER — Yea
ROTH — Yea
BEWLEY — Yea
KOOYENGA — Yea
SCHACHTNER — Yea
SHILLING — Yea
COWLES — Yea
CRAIG — Yea
STROEBEL — Yea
ERPENBACH — Yea
MILLER — Yea
OLSEN — Yea
TIFFANY — Yea
HANSEN — Yea
PETROWSKI — Yea
RINGHAND — Yea
JOHNSON — Yea
RISSER — Yea
DARLING — Not Voting
Carpenter, Tim Democrat Yea
Fitzgerald, Joan Democrat Yea
Larson, Chris Democrat Yea
Smith, Jeff Democrat Yea
Taylor, Sequanna Democrat Yea
Wirch, Robert Democrat Yea
Feyen, Dan Republican Yea
Jacque, André Republican Yea
Kapenga, Chris Republican Yea
LeMahieu, Devin Republican Yea
Marklein, Howard Republican Yea
Nass, Steve Republican Yea
Testin, Patrick Republican Yea
Wanggaard, Van Republican Yea

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Subjects

environment
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Frequently asked questions

Who sponsors SB 91?
SB 91 is sponsored by Cowles, Petrowski, Bernier, Darling, Feyen, Dan (Republican), Johnson, LaTonya (Democrat), Miller, Olsen, Ringhand, Schachtner, Stroebel, Testin, Patrick (Republican), Marklein, Howard (Republican), Larson, Chris (Democrat), and Jacque, André (Republican).
What is the current status of SB 91?
This bill has been enacted into law. Introduced March 13, 2019. Enacted.
Where can I track SB 91?
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