I 
111TH CONGRESS 
2D SESSION 
H. R. 5509 
To support efforts to reduce pollution of the Chesapeake Bay watershed 
and to verify that reductions in pollution have been achieved, and for 
other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 10, 2010 
Mr. HOLDEN (for himself and Mr. GOODLATTE) introduced the following bill; 
which was referred to the Committee on Transportation and Infrastruc-
ture, and in addition to the Committee on Agriculture, for a period to 
be subsequently determined by the Speaker, in each case for consider-
ation of such provisions as fall within the jurisdiction of the committee 
concerned 
A BILL 
To support efforts to reduce pollution of the Chesapeake 
Bay watershed and to verify that reductions in pollution 
have been achieved, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Chesapeake Bay Program Reauthorization and Improve-
ment Act’’. 
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(b) TABLE OF CONTENTS.—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 Clean Water Act. 
Sec. 3. Establishment of independent commission to oversee and administer nu-
trient and sediment trading program for Chesapeake Bay 
States. 
Sec. 4. Chesapeake Bay watershed assurance standards. 
Sec. 5. Technical guidelines for environmental services markets. 
Sec. 6. Chesapeake Bay watershed pilot program for creating environmental 
service markets. 
SEC. 2. MODIFICATION OF CHESAPEAKE BAY PROGRAM 
UNDER CLEAN WATER ACT. 
(a) DEFINITIONS.—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 (9), respectively; 
(2) by inserting after paragraph (4) the fol-
lowing new paragraph: 
‘‘(5) CHESAPEAKE
BAY
STATE.—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 redesig-
nated, the following new paragraphs: 
‘‘(7) CHIEF EXECUTIVE.—The term ‘chief exec-
utive’ means— 
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‘‘(A) in the case of a State or Common-
wealth, the Governor of the State or Common-
wealth; and 
‘‘(B) in the case of the District of Colum-
bia, the Mayor of the District of Columbia. 
‘‘(8) RESTORATION
ACTIVITIES.—The term 
‘restoration activities’ means any Federal or State 
programs that directly protect, conserve, or restore 
habitat, water resources, or water quality in the 
Chesapeake Bay watershed, including programs that 
promote responsible land use and stewardship in the 
Chesapeake Bay ecosystem.’’. 
(b) CHESAPEAKE BAY CROSSCUT FINANCIAL RE-
PORT.—Section 117 of the Federal Water Pollution Con-
trol Act (33 U.S.C. 1267) is amended by striking sub-
section (j) and inserting the following new subsection: 
‘‘(j) FINANCIAL REPORT.— 
‘‘(1) FINANCIAL
REPORT
REQUIRED.—Begin-
ning with the budget submission for fiscal year 
2012, the Director of the Office of Management and 
Budget, in consultation with other appropriate Fed-
eral agencies and the chief executive of each Chesa-
peake Bay State, shall submit to Congress a finan-
cial report containing— 
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‘‘(A) a summary of an interagency crosscut 
budget that displays— 
‘‘(i) the proposed funding for any 
Federal restoration activity 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 activity to be carried out 
in the succeeding fiscal year; 
‘‘(iii) all expenditures for Federal res-
toration activities from the preceding 3 fis-
cal years, the current fiscal year, and the 
succeeding fiscal year; and 
‘‘(iv) all expenditures, to the extent 
that information is available, for State res-
toration activities during the equivalent 
time period described in clause (iii); 
‘‘(B) a detailed accounting of all funds re-
ceived and obligated by all Federal agencies for 
restoration activities during the current and 
preceding fiscal years, including the identifica-
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tion 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 Fed-
eral 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 (cor-
responding to those activities listed in clauses 
(i) and (ii) of subparagraph (A)). 
‘‘(2) SUBMISSION.—Not later than 30 days 
after the submission by the President of the annual 
budget to Congress, the Director shall submit the re-
port required by paragraph (1) to the following con-
gressional committees: 
‘‘(A) The Committees on Agriculture, Ap-
propriations, Natural Resources, Energy and 
Commerce, and Transportation and Infrastruc-
ture of the House of Representatives. 
‘‘(B) The Committees on Agriculture, Nu-
trition, and Forestry, Appropriations, Environ-
ment and Public Works, and Commerce, 
Science, and Transportation of the Senate.’’. 
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transparency in the use of funds provided under 
subsection (n)(1)(B). 
‘‘(B) 
CONTENT
AND
FUNCTION.—The 
website shall provide the following: 
‘‘(i) Accountability information, in-
cluding findings from audits, inspectors 
general, and the Government Account-
ability Office. 
‘‘(ii) Data on relevant economic, fi-
nancial, grant, and contract information in 
user-friendly visual presentations to en-
hance public awareness of the use of cov-
ered 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 cov-
ered funds, including Federal agency and 
State websites. 
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‘‘(C) REVISIONS.—The Administrator shall 
enhance and update the website as necessary.’’. 
(d) INDEPENDENT EVALUATION
AND TECHNICAL 
ADVISORY COMMITTEE
FOR CHESAPEAKE BAY PRO-
GRAM.—Section 117 of the Federal Water Pollution Con-
trol 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) ESTABLISHMENT; PURPOSE.—There shall 
be an Independent Evaluation and Technical Advi-
sory Committee (in this subsection referred to as the 
‘advisory committee’) established to review and re-
port on restoration activities in the Chesapeake Bay 
ecosystem, including relevant topics suggested by the 
Chesapeake Executive Council and the Chesapeake 
Bay Commission 
‘‘(2) APPOINTMENT.—The Administrator and 
the Secretary of Agriculture shall appoint the mem-
bers of the advisory committee, which shall consist 
of the following members: 
‘‘(A) One individual affiliated with an in-
stitution of higher education who has expertise 
in water quality. 
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‘‘(B) Two individuals who are engineers or 
scientists from government and academia who 
have expertise in water quality modeling. 
‘‘(C) Two individuals with professional ex-
perience and expertise concerning urban and 
agricultural storm water issues. 
‘‘(D) One individual with professional ex-
perience and expertise concerning urban and 
suburban development. 
‘‘(E) One individual with professional expe-
rience and expertise regarding water quality 
modeling. 
‘‘(F) One individual affiliated with an envi-
ronmental or conservation organization. 
‘‘(G) One individual affiliated with agri-
culture farm commodity programs. 
‘‘(H) One individual affiliated with agri-
culture conservation programs. 
‘‘(I) One individual with professional expe-
rience and expertise in economics. 
‘‘(J) One individual with professional expe-
rience and expertise in agronomy, crop science, 
or soil science. 
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‘‘(K) One individual with professional ex-
perience and expertise in wastewater treatment 
systems. 
‘‘(L) One individual with professional expe-
rience and expertise in marine biology or fish 
and wildlife habitats. 
‘‘(M) One individual with professional ex-
perience and expertise in implementing building 
permits. 
‘‘(3) TERM.—A member of the advisory com-
mittee shall be appointed for a term of two years 
and is limited to three terms on the advisory com-
mittee. 
‘‘(4) BYLAWS.—The advisory committee shall 
establish such bylaws as may be appropriate to en-
able the advisory committee to carry out its duties 
under this subsection. Such bylaws shall include pro-
visions to prevent any conflict of interest, or the ap-
pearance of any conflict of interest, in the actions 
taken or recommendations made by the advisory 
committee or by any member. As an advisory com-
mittee, the committee has no power to promulgate 
regulations. 
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‘‘(5) ADMINISTRATIVE SUPPORT.—The Depart-
ment of Agriculture shall be the administering agen-
cy for the advisory committee. 
‘‘(6) DUTIES.— 
‘‘(A) ADMINISTRATION REVIEW.—The ad-
visory committee shall provide recommendations 
to the Administrator and Secretary of Agri-
culture concerning administration of this sec-
tion. 
‘‘(B) 
PROGRAM
AND
ACTIVITIES
RE-
VIEW.—The advisory committee shall review, 
and provide recommendations to the Adminis-
trator and Secretary of Agriculture concerning, 
whether— 
‘‘(i) funds authorized for the restora-
tion activities are distributed and used in 
a manner that are consistent with the ob-
jectives of improving the water quality in 
the Chesapeake Bay ecosystem; 
‘‘(ii) mechanisms are in place to en-
sure that restoration activities are properly 
implemented; 
‘‘(iii) mechanisms are in place to en-
sure that progress toward water quality 
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goals for the Chesapeake Bay ecosystem 
are achieved; 
‘‘(iv) the allocation of funds reflects 
each Chesapeake Bay State’s responsibility 
and contribution towards achieving water 
quality goals; 
‘‘(v) restoration activities are carried 
out in accordance with this section; and 
‘‘(vi) the factual information and as-
sumptions incorporated in the Chesapeake 
Bay model are accurate. 
‘‘(C) REPORT.—Not later than December 
31, 2011, and every two years thereafter, the 
advisory committee shall submit to the Admin-
istrator, the Secretary of Agriculture, and Con-
gress regarding progress made toward reaching 
water quality goals in the Chesapeake Bay eco-
system. 
‘‘(7) COORDINATION.—To avoid duplication of 
effort, the advisory committee shall coordinate ac-
tivities with other Federal advisory committees 
working in related areas. 
‘‘(8) MEETINGS.—The advisory committee shall 
meet at least quarterly. 
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‘‘(9) NO REGULATORY AUTHORITY.—The advi-
sory committee does not have the authority to rec-
ommend or promulgate regulations.’’. 
(e) NUTRIENT AND SEDIMENT TRADING TECHNICAL 
GUIDELINES.—Section 117 of the Federal Water Pollu-
tion Control Act (33 U.S.C. 1267) is amended by inserting 
after subsection (l), as added by subsection (d), the fol-
lowing new subsection: 
‘‘(m) NUTRIENT AND SEDIMENT TRADING TECH-
NICAL GUIDELINES.— 
‘‘(1) ESTABLISHMENT.—Not later than May 
12, 2012, the Administrator, in consultation with 
the Secretary of Agriculture and Chesapeake Bay 
States shall establish technical guidelines to be used 
by the Chesapeake Bay Nutrient and Sediment 
Trading Commission in establishing an interstate 
nutrient and sediment trading program for the 
Chesapeake Bay. Such guidelines shall not apply to 
agricultural and non-industrial private forest lands. 
‘‘(2) ELEMENTS.—The technical guidelines es-
tablished under this subsection shall, at a min-
imum— 
‘‘(A) define and standardize nutrient and 
sediment credits and establish procedures or 
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standards for ensuring equivalent water quality 
benefits for all credits; 
‘‘(B) establish procedures or standards for 
nutrient and sediments credits to ensure that 
credit-generating practices from both point 
sources and nonpoint sources (excluding agri-
cultural and forest lands) are achieving reduc-
tions in nutrient and sediments; 
‘‘(C) establish procedures or standards for 
generating, quantifying, trading, banking, and 
applying credits to meet regulatory require-
ments; 
‘‘(D) establish baseline requirements, rel-
evant to the credit being traded, that a credit 
seller must meet before becoming eligible to 
generate saleable credits; and 
‘‘(E) incorporate an approach under the 
national pollutant discharge elimination system 
established under section 402 that creates a 
general approval for trading, thereby avoiding 
the need to reopen or reissue permits to incor-
porate individual trades.’’. 
(f) AUTHORIZATION
OF
APPROPRIATIONS
AND 
GRANT AUTHORITY.—Section 117 of the Federal Water 
Pollution Control Act (33 U.S.C. 1267) is amended by in-
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serting after subsection (m), as added by subsection (e), 
the following new subsection: 
‘‘(n) 
AUTHORIZATION
OF
APPROPRIATIONS; 
GRANTS.— 
‘‘(1) IN GENERAL.—There are authorized to be 
appropriated to the Administrator for each of fiscal 
years 2010 through 2015— 
‘‘(A) such sums as are necessary to carry 
out this section; and 
‘‘(B) such sums as may be necessary to 
support the Chesapeake Bay States in carrying 
out section 303(d), with priority given to Mary-
land, Virginia, Pennsylvania, and District of 
Columbia, which shall be distributed in the fol-
lowing percentages and for the following pur-
poses: 
‘‘(i) 30 percent for grants to any mu-
nicipal, intermunicipal, interstate, or State 
agency for construction of publicly owned 
treatment works, as defined in section 212. 
‘‘(ii) 35 percent for grants to any mu-
nicipality that operates a municipal sepa-
rate stormwater sewage system under sec-
tion 402(p). 
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‘‘(iii) 35 percent to the Secretary of 
Agriculture to carry out section 1240Q(i) 
of the Food Security Act of 1985 (16 
U.S.C. 3839bb–4(i)). 
‘‘(2) AVAILABILITY OF FUNDS.—Amounts ap-
propriated pursuant to the authorization of appro-
priations in paragraph (1) shall remain available 
until expended. 
‘‘(3) RESERVATION OF FUNDS FOR STATES.— 
‘‘(A) RESERVATION
PERCENTAGES.—Of 
the amounts appropriated pursuant to the au-
thorization of appropriations in paragraph 
(1)(B), the Administrator shall reserve the fol-
lowing percentages for allocation pursuant to 
subparagraph (B): 
‘‘(i) 10 percent in fiscal year 2011. 
‘‘(ii) 20 percent in fiscal year 2013. 
‘‘(iii) 50 percent in fiscal year 2015. 
‘‘(B) ALLOCATION TO STATES.—The Ad-
ministrator shall allot the amounts reserved 
pursuant to subparagraph (A) among States in 
each fiscal year based on the Administrator’s 
finding, in consultation with the Secretary of 
Agriculture, that the States have made suffi-
cient progress toward meeting water quality 
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goals and are properly managing financial re-
sources intended to enable each State in meet-
ing its water quality goals. The Administrator, 
in consultation with the Secretary, shall base 
the finding upon the report of the advisory 
committee required under subsection (l).’’. 
(g) TOTAL MAXIMUM DAILY LOAD FOR NITROGEN, 
PHOSPHORUS, OR SEDIMENT FOR CHESAPEAKE BAY.— 
Section 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 sub-
section: 
‘‘(o) TOTAL MAXIMUM DAILY LOAD FOR NITROGEN, 
PHOSPHORUS, OR SEDIMENT FOR CHESAPEAKE BAY.— 
‘‘(1) TMDL DURATION.—A total maximum 
daily load established under section 303(d) for nitro-
gen, phosphorus, or sediment for the Chesapeake 
Bay and its tributaries may include load expressions 
for wasteload allocations or load allocations using 
time frames other than daily (such as annual, 
monthly, or seasonal) for sectors, including agri-
culture, where non-daily wasteload or load alloca-
tions are most appropriate to implement applicable 
water quality standards. 
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‘‘(2) ADAPTIVE
MANAGEMENT.—If a Chesa-
peake Bay State develops a plan to implement a 
total maximum daily load under section 303(d) for 
phosphorus, nitrogen, or sediment for the Chesa-
peake Bay or its tributaries that provides for reduc-
tions in loading through an iterative process that 
employs adaptive management principles, permits 
may be issued under section 402 for new or existing 
discharges that include waste load allocations con-
sistent with the plan and that demonstrate progress 
towards achieving the waste load allocation, whether 
by treatment, trading, or other means, in accordance 
with the schedule provided in the plan, as deter-
mined by the permit issuing authority. In assessing 
sufficient progress by municipal dischargers and 
other point sources toward meeting water quality 
goals and plans, the Administrator and the States 
should take into account the availability, cost, effec-
tiveness, and appropriateness of practices, tech-
niques, methods, or other provisions for the control 
of such pollutants to meet the requirements of sec-
tion 402(p). 
‘‘(3) 
OPTIONS
FOR
OFFSETTING
OF 
STORMWATER
MANAGEMENT
REQUIREMENTS.—In 
order to meet Federal or State water quality re-
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quirements in the Chesapeake Bay ecosystem, an in-
dividual or entity undertaking land development ac-
tivities requiring the management of stormwater by 
on-site infiltration shall be permitted to meet the ap-
plicable infiltration requirements by paying to offset 
them through the establishment of equivalent 
stormwater management practices off-site within the 
Chesapeake Bay ecosystem. Offsetting stormwater 
management practices shall include, at a minimum, 
the establishment on agricultural lands of riparian 
forest buffers, streambank fencing, or other best 
management practices.’’. 
SEC. 3. ESTABLISHMENT OF INDEPENDENT COMMISSION 
TO OVERSEE AND ADMINISTER NUTRIENT 
AND SEDIMENT TRADING PROGRAM FOR 
CHESAPEAKE BAY STATES. 
The Federal Water Pollution Control Act is amended 
by inserting after section 117 (33 U.S.C. 1267) the fol-
lowing new section: 
‘‘SEC. 117A. CHESAPEAKE BAY NUTRIENT AND SEDIMENT 
TRADING COMMISSION. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) COMMISSION.—The term ‘Commission’ 
means the Chesapeake Bay Nutrient and Sediment 
Trading Commission. 
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‘‘(2) CHESAPEAKE
BAY
STATE.—The term 
‘Chesapeake Bay State’ means Delaware, Maryland, 
New York, Pennsylvania, Virginia, West Virginia, 
and the District of Columbia. 
‘‘(3) CHESAPEAKE EXECUTIVE COUNCIL.—The 
term ‘Chesapeake Executive Council’ means the sig-
natories to the Chesapeake Bay Agreement. 
‘‘(4) CHESAPEAKE
BAY
AGREEMENT.—The 
term ‘Chesapeake Bay Agreement’ means the for-
mal, voluntary agreements executed to achieve the 
goal of restoring and protecting the Chesapeake Bay 
ecosystem and the living resources of the Chesa-
peake Bay ecosystem and signed by the Chesapeake 
Executive Council. 
‘‘(5) NUTRIENT.—The term ‘nutrient’ means 
nitrogen and phosphorous. 
‘‘(b) ESTABLISHMENT OF COMMISSION; PURPOSE.— 
‘‘(1) IN
GENERAL.—There is established a 
Chesapeake Bay Nutrient and Sediment Trading 
Commission to oversee and administer the nitrogen 
and phosphorus trading program for the Chesapeake 
Bay States to insure credits are generated to attract 
market participants and facilitate trading mecha-
nisms among and within States to meet water qual-
ity goals. 
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‘‘(2) 
INDEPENDENT
ESTABLISHMENT.—The 
Commission shall be an independent establishment, 
as defined in section 104 of title 5, United States 
Code. 
‘‘(3) LOCATION.—The Commission shall be 
housed at the Office of the Chesapeake Bay Pro-
gram directed by the Chesapeake Executive Council 
in accordance with the Chesapeake Bay Agreement. 
‘‘(c) DUTIES.— 
‘‘(1) CREDITS
FOR
WATER
QUALITY
TRAD-
ING.—In consultation with market developers and 
appropriate Federal agencies, the Commission shall 
develop a system to facilitate and generate credits 
for interstate water quality trading in the Chesa-
peake Bay States. 
‘‘(2) WATER
QUALITY
TRADING
REGISTRY.— 
The Commission shall obtain information from the 
Administrator, the Secretary of Agriculture, and 
other Federal agencies to operate and oversee a reg-
istry for interstate water quality trading in the 
Chesapeake Bay States. 
‘‘(3) TRADE
RECORDKEEPING.—The Commis-
sion shall develop and maintain a system to record 
specific interstate water quality trades in the Chesa-
peake Bay States. 
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‘‘(4) POINT SOURCE AND NON-POINT SOURCE 
TRADES.—In consultation with market developers 
and appropriate Federal agencies, the Commission 
shall develop a system to allow for trading to occur 
between point source and non-point source dis-
chargers in the Chesapeake Bay States. 
‘‘(5) CONSISTENCY
WITH
STATE
PROGRAM.— 
The Commission shall not establish or operate a pro-
gram that conflicts with or modifies a State pro-
gram. 
‘‘(d) USE OF TECHNICAL GUIDELINES.—The Com-
mission shall rely on the Administrator to provide tech-
nical guidelines under section 117(m) and the Secretary 
of Agriculture to provide technical guidelines under sec-
tion 1245(b) of the Food Security Act of 1985 (16 U.S.C. 
3845(b)). 
‘‘(e) MEMBERS OF COMMISSION.— 
‘‘(1) COMPOSITION.—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 of the Environmental Protection 
Agency; and 
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‘‘(C) three members shall be appointed by 
the governors from each of the signatory States 
of the Bay Agreement. 
‘‘(2) SPECIAL CONSIDERATIONS.—With regard 
to the members appointed under paragraph (1)(C)— 
‘‘(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 ex-
pertise in the same field; and 
‘‘(C) at least one of the members shall be 
experienced in a market based pollutant trading 
mechanism. 
‘‘(3) TERMS.—The members of the Commission 
shall serve a term of five years and may be re-
appointed. 
‘‘(4) CHAIRPERSON.—The members of the 
Commission shall designate one of the members to 
serve as chairperson. 
‘‘(5) MEETINGS.—The Commission shall meet 
at the call of the chairperson or a majority of its 
members. 
‘‘(f) OFFICERS AND STAFF.—The Commission may 
appoint, employ, fix the pay of, and provide other allow-
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ances and benefits for such officers and employees of the 
Commission as the members determine to be appropriate. 
‘‘(g) DURATION.—The Commission shall terminate 
on September 30, 2015.’’. 
SEC. 4. CHESAPEAKE BAY WATERSHED ASSURANCE STAND-
ARDS. 
Section 1240Q of the Food Security Act of 1985 (16 
U.S.C. 3839bb–4) is amended by adding at the end the 
following new subsection: 
‘‘(i) CHESAPEAKE BAY WATERSHED ASSURANCE 
STANDARDS.— 
‘‘(1) PURPOSE.—The purpose of this subsection 
is to develop environmental assurance standards for 
the Chesapeake Bay States to use to ensure that 
farmers and non-industrial private forest landowners 
in the Chesapeake Bay watershed are implementing 
conservation activities to fulfill water quality regula-
tions under applicable Federal and State law. 
‘‘(2) DUTIES OF SECRETARY.— 
‘‘(A) ESTABLISHMENT OF STANDARDS.— 
For the purposes of this section, the Secretary 
shall use existing State partnerships and pro-
grams to establish standards for risk assess-
ment, conservation planning, verification, water 
quality, and auditing practices that Chesapeake 
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Bay States can incorporate in their State man-
agement plan under section 117(g)(1) of the 
Federal Water Pollution Control Act (33 U.S.C. 
1267(g)(1)). 
‘‘(B) TECHNICAL ASSISTANCE.—The Sec-
retary shall provide conservation technical as-
sistance— 
‘‘(i) to educate agricultural and pri-
vate forest landowners in the Chesapeake 
Bay watershed regarding State and Fed-
eral regulatory water quality requirements 
and possible activities they could undertake 
to come into compliance with the regula-
tions; and 
‘‘(ii) to assist such landowners in con-
servation planning that will achieve and 
maintain regulatory compliance. 
‘‘(C) 
MEMORANDUM
OF
UNDER-
STANDING.—The Secretary may enter into a 
memorandum of understanding with the Ad-
ministrator of the Environmental Protection 
Agency and with the Chesapeake Bay States to 
coordinate conservation planning for agricul-
tural and non-industrial private forest lands to 
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meet applicable State water quality require-
ments. 
‘‘(3) EFFECT OF ASSURANCE STANDARDS.—Ag-
ricultural and private forest landowners who develop 
and implement a conservation plan in accordance 
with this subsection shall be deemed to be in full 
compliance with applicable Federal and State water 
quality requirements under section 303(d) of the 
Federal Water Pollution Control Act (33 U.S.C. 
1313(d)). 
‘‘(4) DEFINITIONS.—In this subsection: 
‘‘(A) CHESAPEAKE BAY STATE.—The term 
‘Chesapeake Bay State’ means Delaware, Mary-
land, New York, Pennsylvania, Virginia, West 
Virginia, and the District of Columbia. 
‘‘(B) 
CONSERVATION
PLANNING.—The 
term ‘conservation planning’ has the same 
meaning as established for such term in the 
Natural Resources Conservation Service field 
office technical guide, comprehensive nutrient 
management plans, and nutrient management 
plans.’’. 
SEC. 5. TECHNICAL GUIDELINES FOR ENVIRONMENTAL 
SERVICES MARKETS. 
(a) TYPES OF GUIDELINES REQUIRED.— 
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(1) 
ADDITIONAL
GUIDELINES.—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 environ-
mental 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 envi-
ronmental 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 compli-
ance of the environmental service benefits.’’. 
(2) 
CONFORMING
AMENDMENTS.—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 in-
serting ‘‘paragraph (5)’’; and 
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(B) by striking ‘‘paragraph (3)’’ and in-
serting ‘‘paragraph (6)’’. 
(b) ADDITIONAL REQUIREMENTS.—Section 1245 of 
the Food Security Act of 1985 (16 U.S.C. 3845) is 
amended by adding at the end the following new sub-
sections: 
‘‘(f) LIST OF ELIGIBLE ACTIVITIES.— 
‘‘(1) LIST
REQUIRED.—The Secretary shall 
publish a list of eligible domestic agricultural and 
forestry activities that result in environmental serv-
ice benefits. 
‘‘(2) DEADLINE; PUBLICATION.—Not later than 
14 months after the date of the enactment of the 
Chesapeake Bay Program Reauthorization and Im-
provement Act, the Secretary shall publish in the 
Federal Register the list of domestic agricultural 
and forestry activities that are eligible for the guide-
lines established under subsection (a). 
‘‘(3) RECOMMENDATIONS.—In preparing the 
list under this subsection, the Secretary shall take 
into consideration the recommendations of the enti-
ties referred to in subsection (e). 
‘‘(4) ADDITIONS
AND
REVISIONS.—Not later 
than four years after the date of the enactment of 
the Chesapeake Bay Program Reauthorization and 
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Improvement Act, and every two years thereafter, 
the Secretary shall add to and revise the list pre-
pared under this subsection. The additions and revi-
sions shall be made only after the Secretary provides 
an opportunity for public notice of and an oppor-
tunity for comment on the proposed additions and 
revisions. 
‘‘(g) GUIDELINES FOR PROVISION OF TECHNICAL 
ASSISTANCE.— 
‘‘(1) VERIFICATION GUIDELINES.—As part of 
the regulations promulgated under this title, the 
Secretary shall establish guidelines for the provision 
of technical assistance to ensure— 
‘‘(A) that environmental service benefits 
have been implemented properly; and 
‘‘(B) the quantification of the benefits have 
resulted in an environmental benefit. 
‘‘(2) TECHNICAL
ASSISTANCE
PROVIDER
AC-
CREDITATION.—As part of the regulations promul-
gated under this title, the Secretary shall establish 
a process and requirements for periodic accreditation 
of certified technical assistance providers for envi-
ronmental service benefits to ensure that those tech-
nical service providers are professionally qualified 
and have no conflicts of interest. Each technical 
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service provider meeting the requirements for ac-
creditation in accordance with this paragraph shall 
be listed in a publicly accessible database, which 
shall be maintained and updated by the Secretary.’’. 
SEC. 6. CHESAPEAKE BAY WATERSHED PILOT PROGRAM 
FOR CREATING ENVIRONMENTAL SERVICE 
MARKETS. 
Section 1240Q of the Food Security Act of 1985 (16 
U.S.C. 3839bb–4) is amended by inserting after sub-
section (i), as added by section 102, the following new sub-
section: 
‘‘(j) PILOT PROGRAM
FOR CREATING ENVIRON-
MENTAL SERVICE MARKETS.— 
‘‘(1) ESTABLISHMENT.—The Secretary shall es-
tablish a pilot program for the Chesapeake Bay wa-
tershed for the facilitation of creating environmental 
service markets based on the guidelines outlined in 
section 1245 as long as those environmental service 
benefits do not result in taking eligible land wholly 
out of agricultural production. The Secretary shall 
ensure that the pilot program is consistent with the 
policies, protocols, and regulations established under 
existing environmental service markets in the Chesa-
peake Bay watershed. 
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‘‘(2) TRANSMISSION OF DATA TO CHESAPEAKE 
BAY NUTRIENT AND SEDIMENT TRADING COMMIS-
SION.—The Secretary shall transmit to the Chesa-
peake Bay Nutrient and Sediment Trading Commis-
sion such data acquired by the Secretary as may be 
necessary to the effective administration of nutrient 
and sediment trading programs administered by the 
Commission under section 117A of the Federal 
Water Pollution Control Act.’’. 
Æ 
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