The Senate Republican Policy Committee Wednesday held a hearing for the purpose of touting Senate Bill 724 (Vogel-R-Beaver) and Bion Environmental Technologies as the solution to reducing nutrient pollution and meeting Pennsylvania’s Chesapeake Bay commitments.

The list of witnesses included: Ed Schafer, Chairman, Coalition for an Affordable Bay Solution and Executive Vice Chairman of Bion Environmental Technologies, Inc., the company behind Senate Bill 724; Ron Kreider, President, Kreider Farms where the Bion manure treatment facility is located; Phil Durgin, Executive Director Joint Legislative Budget and Finance Committee; Mike McCloskey, Member, National Milk Distributors Association; and Elliott Keller, General Manager for JBS Souderton, Inc.

The Chesapeake Bay Foundation-PA asked to be part of the hearing more than a week before the meeting, but was told by the Committee there was no room on the agenda.

Both the Chesapeake Bay Foundation and the PA Environmental Council submitted written comments for the record.

None of the traditional farm advocacy groups-- like the PA Farm Bureau or PennAG Industries-- provided testimony to the Committee.

Among the points made at the hearing were--

-- Credits Created Under The Bill Would Be Worthless: Sen. Gene Yaw (R-Lycoming), Majority Chair of the Senate Environmental Resources and Energy Committee, asked Phil Durgin from the Joint Legislative Budget and Finance Committee which issued a 2013 report on an RFP-type process like the one outlined in Senate Bill 724, how the credit process would work. 

Durgin said taxpayers would pay for the credits for reductions, but those credits could not be sold to others, like wastewater plants, which might have used them.  In a follow-up, Durgin added that farmers could continue to operate the way they had in the past without adopting conservation practices.

-- Continuing Existing Programs To Benefit Farmers: Durgin also clarified the Joint Committee report recommended existing conservation programs for farmers be continued.  Bion, however, has recommended that all existing funding used for Chesapeake Bay compliance be diverted to the Senate Bill 724 program.  Senate Bill 724 does not prohibit diverting other existing sources of funding to the RFP process in the bill like last last session’s bill did-- Senate Bill 994.

-- Funding Needed For Senate Bill 724 Program: In response to another question, Durgin said the Joint Committee report said a source of funding was needed for the RFP process, noting Maryland has adopted a flush tax to help support its water quality program.  Senate Bill 724 has no source of new funding.

-- Bion Manure Technology Does Not Count Toward Milestones: Ed Schafer, Executive Vice Chairman of Bion Environmental Technologies, Inc. told the Committee Bion’s manure technology is “EPA approved.” In fact, EPA has not approved Bion’s technology or any manure technology as a best management practice which counts toward meeting Pennsylvania’s cleanup commitments.

-- EPA Backstop Measures Are Well Known If PA Does Not Act: Several questions were asked at the hearing about what EPA would do if Pennsylvania does not act to meet its Chesapeake Bay commitments.  The available witnesses left the impression the measures EPA would take are unclear.  In fact, EPA has made it very clear and in writing-- in 2009.

Ron Kreider of Kreider Farms provided the Committee with an overview of his family’s many progressive efforts to move toward a more environmentally sustainable farm operation, including adopting nutrient management plans and installing solar panels on its chicken houses.

Kreider said the state has to act now to solve this problem.

He did not say he supported Senate Bill 724 in his comments before the Committee.

Bion built its manure treatment facility on the Kreider Farm with a $7.8 million loan from PennVEST, but during his testimony Kreider was not asked and did not provide a description of how that technology was being used or how it fit into his operation.

Click Here to watch a video of the hearing.

Sen. David Argall (R-Schuylkill) serves as Chair of the Committee.

Related Stories:

Analysis: Why Bion Is The Force Behind SB 724

Bion Says It Doesn’t Have To Pay Back $7.8 Million PennVEST Loan

Chesapeake Bay Foundation-PA: SB 724 Could Derail Clean Water Efforts In PA

PA Environmental Council Cites Concerns, Opposes Senate Bill 724

5/11/2015