March 22, 2019 - Introduced 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, Summerfield, Tittl,
Tusler and Vruwink, cosponsored by Senators Cowles, Petrowski, Bernier,
Darling, Feyen, Jacque, Johnson, Larson, Marklein, Miller, Olsen,
Ringhand, Schachtner, Stroebel and Testin. Referred to Committee on
Local Government.

AB113,1,3 1An Act to amend 283.84 (1m) (d); and to create 16.9685, 283.84 (1) (f), 283.84
2(1) (g), 283.84 (1m) (e) and 283.84 (5) of the statutes; relating to: buying and
3selling water pollution credits through a central clearinghouse.

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

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.