COMMONWEALTH OF HOUSE OF REPRESENTATIVES

PUBLIC HEARING

OF THE

AGRICULTURE & RURAL AFFAIRS COMMITTEE

STATE CAPITOL HARRISBURG, PENNSYLVANIA 205 RYAN OFFICE BUILDING

TUESDAY, JUNE 5, 2018 9:00 A.M.

BEFORE:

HONORABLE , MAJORITY CHAIRMAN HONORABLE , MINORITY CHAIRMAN HONORABLE STEPHEN BLOOM HONORABLE HONORABLE HONORABLE HONORABLE MARK GILLEN HONORABLE HONORABLE RICH IRVIN HONORABLE HONORABLE HONORABLE JOHN LAWRENCE HONORABLE DAVE MILLARD HONORABLE HONORABLE RYAN WARNER HONORABLE DAVID ZIMMERMAN HONORABLE PAMELA DeLISSIO HONORABLE SID KAVULICH HONORABLE HONORABLE

Pennsylvania House of Representatives Commonwealth of Pennsylvania 2

1 COMMITTEE STAFF PRESENT:

2 KERRY GOLDEN, REPUBLICAN EXECUTIVE DIRECTOR 3 MICHELE MUSGRAVE, REPUBLICAN LEGISLATIVE ASSISTANT II 4 DESTINY ZEIDERS, 5 DEMOCRATIC EXECUTIVE DIRECTOR

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25 Pennsylvania House of Representatives Commonwealth of Pennsylvania 3

1 I N D E X

2 TESTIFIERS

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4 NAME PAGE 5 RUSSELL C. REDDING 6 SECRETARY, DEPARTMENT OF AGRICULTURE...... 4 7 DR. RUTH WELLIVER 8 DIRECTOR, BUREAU OF PLANT INDUSTRY...... 15 9 MAREL KING 10 PENNSYLVANIA DIRECTOR, CHESAPEAKE BAY COMMISSION...... 33 11 ANN SWANSON 12 EXECUTIVE DIRECTOR CHESAPEAKE BAY COMMISSION...... 39 13 MATTHEW JOHNSTON 14 SENIOR POLICY ANALYST, CHESAPEAKE BAY PROGRAM OFFICE...... 51 15 GREGG ROBERTSON 16 PA LANDSCAPE AND NURSERY ASSOCIATION...... 62

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18 SUBMITTED WRITTEN TESTIMONY

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20 (See submitted written testimony and handouts online.)

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1 P R O C E E D I N G S

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3 MAJORITY CHAIRMAN CAUSER: Good morning,

4 everyone.

5 I would like to call this meeting of the

6 House Agriculture and Rural Affairs Committee to

7 order and ask all of you to join me in the Pledge of

8 Allegiance.

9 (Whereupon, the Pledge of Allegiance was

10 recited.)

11 MAJORITY CHAIRMAN CAUSER: Good morning,

12 everyone.

13 We have a number of meetings going on

14 this morning and our time is constrained, so I think

15 we need to get going. Today's meeting is a public

16 hearing on SB 792, sponsored by Senator Alloway.

17 It's the fertilizer law legislation.

18 I'm going to have Michelle keep track of

19 attendance, and we'll move forward with our agenda.

20 Welcome to Secretary Redding, the

21 Secretary of Agriculture. And with him is

22 Dr. Ruth Welliver.

23 You may proceed. Welcome.

24 SECRETARY REDDING: Mr. Chairman, thank

25 you. And good morning to each of the members. It's 5

1 good to see you.

2 Thanks for your support of agriculture

3 always and the opportunity today to talk about

4 SB 792 before you. You have my testimony. I will

5 not deliver that. I will just try to provide some

6 overarching comments and a few highlights, and then

7 we can proceed.

8 The process of arriving here is over

9 three years in the making. We really appreciate the

10 good work that has been done. We have engaged in a

11 very collaborative, transparent process with our

12 stakeholders. And they've include many, some who

13 are with us today as witnesses, but also many in the

14 agriculture community, as well.

15 We have moved from a previous bill that

16 did not look like Pennsylvania, or for that matter,

17 work for Pennsylvania, to what we have today in

18 SB 792. This bill respects the fact that we have a

19 strong Fertilizer Act and have had that since 1956.

20 It creates a professional certification for

21 commercial fertilizer applicators.

22 It builds on existing training programs

23 for the lawn care business, and that has been one of

24 those points of request from the Pennsylvania

25 Landscape Nursery Association. It addresses the 6

1 urban fertilizer use for the first time as part of

2 our commitment to water quality in a court mandated

3 TMDL for the Chesapeake Bay Watershed.

4 We've provided several graphs, one that

5 looks at Pennsylvania Nitrogen loads, and the other

6 being Pennsylvania Phosphorus loads. If you refer

7 to the pie charts for Nitrogen and Phosphorus, what

8 I'm referring to is the yellow portion, which is the

9 developed land. And included in that, is the urban

10 fertilizer.

11 The proposed nutrient restrictions and

12 application rates for lawn fertilizer will be an

13 integral part of the success of our Phase III

14 watershed implementation plan, presently under

15 development, to achieve the reductions. It will

16 require everyone to do their part.

17 We have had this conversation in other

18 contexts with agriculture and certainly the same is

19 true here for the urban fertilizer use. Each of us

20 have heard repeatedly from the agriculture community

21 -- and again, that's the blue portion of the pie

22 chart -- that there needs to be equity in the

23 treatment of nutrients on the farm and in the towns.

24 This legislation provides equity and

25 appropriately allocates responsibility for reducing 7

1 our State nutrient loads. Let me highlight just

2 several points. Number one, importantly, we have in

3 this legislation a certification program for

4 commercial and public fertilizer applicators. It is

5 purposely designed to mirror the Professional

6 Pesticide Applicator Program that we currently have,

7 in which 3500 of the same businesses that will be

8 covered in this legislation are already licensed and

9 registered as a business in the pesticide applicator

10 business. The same requirements of recordkeeping,

11 training, continuing education will apply to the

12 commercial fertilizer aspect, as well.

13 Further, any licensed pesticide

14 applicator providing professional fertilizer

15 application will be grandfathered initially. And

16 then, their renewals -- as the renewals are done, do

17 the training and certification for fertilizer.

18 And again, this was done at the request

19 of PLNA, to make sure that we're not duplicating the

20 efforts on the fertilizer and pesticides. We tried

21 to mirror it up and make good use of the

22 Department's time and certainly the time of the

23 individual businesses, as well.

24 You will note that there is a fee, a new

25 fee in here. And we can talk more about that, but 8

1 there's $100 per business, just to point out that

2 that's not for the individual applicator, that's on

3 the business, per se. So you can have any number of

4 applicators under the one business.

5 There's no new separate business unit

6 number required. And if you referred to, again, one

7 of the attachments in the PLNA letterhead, that came

8 to the Department as one of the conditions of

9 support, the BU number, business unit number, they

10 can use the one that's already assigned to them for

11 the pesticide application. Okay.

12 This will also assist the PDA staff with

13 some of the administration duties. The product

14 labeling language proposed changes are recognized by

15 industry on the national level. They are compatible

16 with other States' requirements, as well.

17 This will facilitate, we believe, sort of

18 the interstate commerce and shipment of fertilizer

19 products across State lines and in the region. We

20 have allowed 18 months for transition of new

21 labeling once the law is enacted to give the

22 business time to transition.

23 The education and the outreach, we think,

24 is one of the real critical points of this. It is

25 not just about the professional community who is 9

1 applying fertilizer and the application. We also

2 think the larger public has a responsibility to be

3 aware, number one, of their own sort of application

4 to their private lawns, homeowner lots, just as we

5 expect sort of the farm community to do the same,

6 but for the first time, we have a direct, very

7 intentional public education outreach program as

8 part of this.

9 So we're anxious to do that, and we think

10 that will pay real dividends for us, as well. We're

11 going to use the Four R Model. Again, we've talked

12 about that within the agricultural context. But for

13 those familiar with that, that's the right source at

14 the right time at the right place that has paid

15 dividends in the agricultural community and we think

16 it has great application to the public, as well.

17 Importantly, there is preemption in this

18 bill. Preemption, meaning that we believe it's

19 important to have one statewide standard for

20 application of fertilizers and not to have any

21 number of jurisdictions with their own sort of

22 restrictions in place, and that is occurring around

23 Pennsylvania. We've had that experience on other

24 matters of agriculture.

25 In this case, we believe it's important 10

1 to have one standard. This would prohibit the local

2 jurisdiction from having restrictions that are more

3 prohibitive than the State, as well.

4 The fees. The fees are there for several

5 reasons. One, certainly to address the

6 administrative costs that the Department will have

7 in administering this, just as they are there on the

8 pesticide side, as well. Right. That is not a

9 GGO-funded effort.

10 This will be -- the expectation would be

11 that these fees will cover the administrative costs

12 to run the program. And they're there, too,

13 particularly on the outreach and education, for the

14 homeowners. We think that will be an important

15 part.

16 The fee increase, it's the first time in

17 34 years. The last time was in 1984 that there was

18 any fee increase for the program. And then, again,

19 the exception being the $100 that's a new fee per

20 business.

21 The application rate, we provided a

22 letter from Dr. Landschoot at Penn State, who has

23 helped to guide us. I will simply point out that in

24 that letter, you will note that the recommendation

25 that they make, historically, the research has been 11

1 done at the one pound of total nitrogen per thousand

2 square feet. The legislation will require that to

3 be a .9, and of course, allowing for any changes in

4 research that would guide us.

5 But it's also important for the homeowner

6 and commercial application that if there is a

7 separate soil test and site specific plan, that you

8 can vary from that rate, as well. And the intent of

9 that is to change that and demonstrate a decrease in

10 nitrogen application.

11 We are consistent on the available

12 Nitrogen rate. The .9 is total nitrogen. The

13 available Nitrogen rate is .7. We are consistent

14 with Penn State University on that. We're also

15 consistent with them on the Phosphorus rate, as

16 well.

17 There are some other changes or

18 amendments that we'll need to make. They were

19 simply oversights on the Senate side, one in

20 particular. And significant though, it's the issue

21 of the labeling provisions. The labeling provisions

22 as they're presented here would apply to all

23 labeling and not just the new provisions. That

24 would have to be addressed, as well.

25 So in summary, we've worked hard to 12

1 develop a Fertilizer Act and amendments that build

2 on Pennsylvania's 62 years of experience in

3 fertilizer oversight. We think that's important.

4 We have worked hard to find that equilibrium between

5 sort of the challenges of doing this and the

6 opportunities with it, as well.

7 This bill takes a holistic approach to

8 manage Nitrogen and Phosphorus that flows off the

9 land. We believe there's equity in the

10 responsibility for homeowners as well as

11 agriculture. And everyone, again, has a

12 responsibility here.

13 You'll note in one of the expert studies

14 that's attached, the pervious surface. And every

15 time I look at that, we're talking about a million

16 acres in Pennsylvania, the Chesapeake Bay Watershed,

17 that are pervious surface. That is actually more

18 acres than grain for corn that's grown in

19 Pennsylvania. It's actually a lawn.

20 So when we talk about equity, trying to

21 have equity, both in terms of what we do for

22 agriculture, as well as the homeowner -- so we can

23 talk more about it, but again, very much appreciate

24 the Committee's hearing and the consideration of

25 this important legislation. 13

1 Thank you.

2 MAJORITY CHAIRMAN CAUSER: Does

3 Dr. Welliver have comments or are you here to answer

4 questions?

5 Okay. Thank you.

6 Thank you for your testimony,

7 Mr. Secretary. We'll turn to questions from the

8 members.

9 I guess I'll start off by saying, you

10 know, any time we impose regulations, fees, things

11 of that nature, that's certainly concerning to

12 legislators. We've heard concerns voiced from some

13 in the industry concerning fees, regulations, things

14 of that nature.

15 The question always recurs, are we really

16 accomplishing through this legislation, you know,

17 what we're setting out to accomplish?

18 Because if the overall effect is to cut

19 back on fertilizer use, if that does occur from

20 this, are we actually hurting ourselves by not

21 having nice, green, luscious lawns out there that

22 can filter water?

23 I mean, is that a concern?

24 I know some members of the industry have

25 voiced that concern to me. 14

1 SECRETARY REDDING: Yeah. We've spent a

2 lot of time, you know, trying to construct this in a

3 way that we think, you know, finds sort of that

4 balance between the desire to have a nice, luscious

5 lawn, right, that's green and well cared for. In

6 this sort of approach, what we are doing, I think,

7 is saying that we've got a, you know, opportunity to

8 short of change the Nitrogen rates and reduce that

9 by one-tenth on the recommendation.

10 Available Nitrogen is the same and

11 Phosphorus is the same. But to get to this sort of

12 need for Pennsylvania to meet the water quality

13 goals that we've established for the State, we know

14 we've got 19,000 miles of streams that are impaired.

15 They don't know if the molecule comes from the farm

16 or from home or out of the sewer plant. Right.

17 So all of that is part of the

18 conversation caught in this and represented in the

19 pie chart. But we think, through having an

20 intentional labeling change, application rate

21 change, a professional certification for folks who

22 are applying it, to have pretty aggressive outreach

23 and education to homeowners who are making these

24 applications, that we can actually change the total

25 use of Nitrogen fertilizer, typically Nitrogen 15

1 fertilizer.

2 MAJORITY CHAIRMAN CAUSER: And I

3 understand that. I just -- I understand the

4 concerns, some of the concerns that are being

5 voiced. I don't think anyone wants to overfertilize

6 because fertilizer is expensive.

7 SECRETARY REDDING: Sure.

8 MAJORITY CHAIRMAN CAUSER: Whether you're

9 an agricultural operation or a commercial

10 applicator, you don't want to overfertilize because

11 of that cost.

12 So I think that the question does come up

13 from time to time, does this actually help us?

14 DR. WELLIVER: I just want to mention

15 that the fertilizer bill is a pretty complicated

16 thing. I don't think the intent of our fertilizer

17 bill is -- I know it's an intent of the

18 Chesapeake Bay model. The intent of our bill is not

19 to cut fertilizer usage; it's the responsible use of

20 fertilizer.

21 In some cases, that may mean that more

22 fertilizer needs to be used to prop up plant health

23 to prevent runoff. And in some cases, it may show

24 that there's an overuse of fertilizer. We have to

25 be ready to look across the gamut and, you know, use 16

1 science to really make sure that we're doing the

2 right thing in each case.

3 And hopefully the Chesapeake Bay will get

4 the reduction that they want to see, but that's not

5 our primary, first intent.

6 MAJORITY CHAIRMAN CAUSER: Well, an issue

7 that's on the mind of the legislators, is how do we

8 get -- if we were to pass this -- how do we get

9 credit?

10 Because we hear a lot about getting

11 credit for the Bay situation. And we have a letter

12 from the EPA that says there are two ways we get

13 credit. Number one is overall reduction in tracked

14 fertilizer sales. So that's one of the ways we get

15 credit, is by reducing fertilizer sales. That's why

16 I asked that question.

17 SECRETARY REDDING: I will just add,

18 Mr. Chairman -- and Matt Johnston, I know, is here

19 and he could talk to those two points. But

20 importantly, in our planning, I mean, we can't sort

21 of claim credit for something we didn't actually

22 plan for. Right.

23 So in this case, we're actually planning

24 for, you know, tracking, education, you may see some

25 reductions, maybe not. But the only way that we can 17

1 sort of say at the end of the process that we get

2 credit in Pennsylvania is if we actually plan for it

3 on the front side. Right. And we think that's --

4 again, the parallel being on the agriculture side.

5 Right.

6 We can't claim reductions if there's not

7 a nutrient management plan and the agriculture

8 aspect. So we think that parallel sets up for

9 Pennsylvania, particularly this conversation about

10 reductions and meeting water quality bills, that

11 shouldn't fall solely on the shoulders of

12 agriculture. Right.

13 So if you're applying those somewhere

14 else, you usually have the same responsibility to

15 manage them, so --

16 MAJORITY CHAIRMAN CAUSER: Everything is

17 a balance.

18 SECRETARY REDDING: It is.

19 MAJORITY CHAIRMAN CAUSER: Mr. Chairman,

20 comments, questions?

21 MINORITY CHAIRMAN PASHINSKI: Thank you

22 very much, Mr. Chairman.

23 Thank you to both of you for being here.

24 I apologize for being a bit late. I had another

25 event this morning. 18

1 The fact of the matter is, we're trying

2 to protect water. Water is valuable. We need that.

3 We've established already that our water sources can

4 be degraded if improper chemicals are placed into

5 that.

6 So as Chairman Causer says, we're looking

7 for this balance. So when you're talking about the

8 education, is it going to extend, let's say, for

9 example, to Granger, Home Depot, Lowe's?

10 Will there be more discussion with the

11 homeowner relative to, this is the kind of issue I

12 have, what kind of fertilizer do I need, that I'm

13 not buying the improper kind?

14 Which, you know, then could cause further

15 problems.

16 How far are we going to go with this

17 education?

18 SECRETARY REDDING: Yeah. Mr. Chairman,

19 it will be pretty comprehensive. We're not looking

20 at this as solely a Department responsibility. It

21 would be the manufacturer, it will be the retailer,

22 it will be the applicator, the commercial

23 applicator, the public applicator. We see this as

24 being on the same par as we've done with pesticide

25 education. And we've seen a significant change in 19

1 habit there and awareness of.

2 We can borrow from any number of

3 education and outreach campaigns. You know, take

4 even the currents by the -- right, as an example,

5 where there's an awareness and people are thinking

6 about what they're sort of doing and habits. So

7 with this, it's going to have to be really from, you

8 know, all the way through the channel, not just as a

9 public education.

10 Our expectation is to use Penn State

11 University and Cooperative Extension to help do

12 this, again, as we do on the farm side and as we do

13 on the pesticide application side; but it's going to

14 be a pretty grass roots campaign.

15 MINORITY CHAIRMAN PASHINSKI: It just

16 seems like a lot of common sense. I think the

17 fertilizer companies are worried about the loss of

18 business.

19 You know, how can they balance their

20 sales and so on and still provide, you know, quality

21 fertilizer for the proper condition and then still

22 protect the water?

23 So I thank you for your good work. And I

24 would be interested in that education myself, to be

25 honest with you. Thank you. I've got to work on my 20

1 own lawn.

2 MAJORITY CHAIRMAN CAUSER: Any other

3 questions from members?

4 Representative Bloom.

5 REPRESENTATIVE BLOOM: Thank you,

6 Mr. Chairman.

7 Thank you, Secretary Redding.

8 SECRETARY REDDING: Good to see you.

9 REPRESENTATIVE BLOOM: Good to see you.

10 Question for you on the fees and

11 penalties that can be increased in the bill. It

12 gives authority to you or your successor, as the

13 Secretary, through just simply publishing it in the

14 public record, the new fees. So you have this power

15 to raise fees.

16 I guess my first question is, the fees

17 and penalties that may be collected, what are they

18 used for under this?

19 Are they already designated to go

20 specifically to this program, if increased fees and

21 penalties are collected?

22 SECRETARY REDDING: Yeah. So any fee

23 increases or penalties, you know, from this are

24 actually for the purpose of and restricted to the

25 use of this program. 21

1 REPRESENTATIVE BLOOM: Okay. So I guess

2 I just wanted to voice a concern as a legislator,

3 that giving you or your successor -- and it's no

4 reflection on you, but just --

5 SECRETARY REDDING: No. I understand.

6 REPRESENTATIVE BLOOM: -- the idea of

7 giving the Secretary the power to unilaterally

8 choose to raise fees and penalties and the actual

9 use of those fees and penalties is already

10 designated -- essentially gives away or usurps what

11 I would believe would be a legislative function of

12 deciding when and where fees are raised and

13 certainly where taxpayer dollars are utilized.

14 Making those allocations as priority

15 decisions should be the legislature's job, I

16 believe, more so than simply any particular Ag

17 Secretary's job.

18 Any thoughts on that?

19 I'm concerned about that aspect of the

20 bill.

21 SECRETARY REDDING: Yeah. I mean, I

22 would share the concern. We've talked about this

23 before in other programs. You know, we feel like in

24 this case, the way we've used the Fertilizer

25 Advisory Board, it's been a public process. Right. 22

1 I mean, that has the representation. That's a board

2 that establishes, as part of the original act, you

3 know, to provide the guidance on the fertilizer

4 program in Pennsylvania.

5 And through the years, I mean, that Board

6 has been pretty judicious in guiding us, in

7 sensitivity to any of the fee increases or

8 penalties. Our goal here, as we state, would be a

9 public process. We would have to give public

10 notice. We could do it, but it's not a unilateral

11 move. Right.

12 I mean, certainly opportunity through the

13 budget hearing process to come back and share with

14 the House and Senate sort of what we're doing, why

15 are we doing it, an opportunity for public process.

16 So I think there are some checks and balances in

17 there. If it simply gave the Department, without

18 requirement of public process or an advisory board,

19 I would be more concerned about it, but I feel like

20 there's, given the history, a pretty good balance

21 there of public input in, you know, transparency

22 around the need to do it.

23 REPRESENTATIVE BLOOM: Okay. Thank you.

24 Still a concern for me.

25 Thank you. 23

1 DR. WELLIVER: Can I add a little?

2 REPRESENTATIVE BLOOM: Yes.

3 DR. WELLIVER: I just wanted to say that

4 it's not -- we didn't put in, simply, publication in

5 the Pennsylvania Bulletin. There's a fairly robust

6 procedure, even before the public, that we

7 demonstrate that we've lost money for two years

8 running the program before we even ask for an

9 increase. And that has to have a public meeting, as

10 well.

11 So there is a pretty substantial process

12 that people would see, that the legislature would

13 see, before we would even try to make any kind of

14 change.

15 REPRESENTATIVE BLOOM: Okay. Thank you.

16 Thank you, Mr. Chairman.

17 MAJORITY CHAIRMAN CAUSER: Thank you,

18 Representative Bloom.

19 Representative Keller.

20 REPRESENTATIVE M. KELLER: Thank you,

21 Mr. Chairman.

22 Thank you, Secretary, for being here.

23 Can PDA provide the data on lawn

24 fertilizer sales in the counties that are affected

25 with the Chesapeake Bay? 24

1 Do you have that information?

2 SECRETARY REDDING: I think the answer is

3 yes. I don't know if it goes to county level.

4 DR. WELLIVER: We have county level

5 tonnage reporting that is already available on the

6 website.

7 Can we separate out the non-farm, at

8 least?

9 (Speaker not at microphone.)

10 REPRESENTATIVE M. KELLER: All right.

11 DR. WELLIVER: And that is showing, from

12 the manufacturers, what counties they have sold

13 into. That doesn't necessarily mean it was used in

14 that county. They sent it to a Lowe's, you know, in

15 Harrisburg, how many counties might that have been

16 distributed --

17 REPRESENTATIVE M. KELLER: Well, I will

18 use an example -- to interrupt you -- as an example,

19 there's no Lowe's, Home Depot or any place like that

20 in the county that I represent, the main county that

21 I represent. So I would assume it's going to show

22 Cumberland County has a bigger sale, but Perry

23 County would have nothing. Okay.

24 DR. WELLIVER: That's true for now.

25 REPRESENTATIVE M. KELLER: Can we look 25

1 at, has there been an increase, has there been a

2 decrease, you know?

3 Do we have past records on that?

4 (Speaker not at microphone.)

5 REPRESENTATIVE M. KELLER: We do not?

6 Not on use.

7 (Speaker not at microphone.)

8 DR. WELLIVER: There's the general trend

9 of an increase in non-farm fertilizer sales.

10 REPRESENTATIVE M. KELLER: Okay. All

11 right. Thank you.

12 MAJORITY CHAIRMAN CAUSER:

13 Representative Moul.

14 REPRESENTATIVE MOUL: Thank you,

15 Mr. Chairman.

16 Good morning, Mr. Secretary.

17 SECRETARY REDDING: Good to see you.

18 REPRESENTATIVE MOUL: Good to see you

19 again.

20 SECRETARY REDDING: Great to see you.

21 Thank you.

22 REPRESENTATIVE MOUL: I'm trying to wrap

23 my head around the same thought process the last two

24 Representatives asked on.

25 How would you -- first of all, if we're 26

1 going to put fees on the manufacturer of fertilizer,

2 how would you not pass those fees on to the

3 agriculture community?

4 SECRETARY REDDING: Well, the fee

5 structure right now, in both ag and non-ag pay that.

6 Right. I mean, that's the way the Fertilizer Act is

7 set up. So the addition, in this case, of the per

8 ton fee would apply across the board. Right.

9 The individual business fee -- the farm

10 and the agriculture -- the farmer is not identified

11 as an applicator. It's a private applicator, not a

12 public applicator. So the $100 per business would

13 not apply to the farmer.

14 REPRESENTATIVE MOUL: Okay. So the fee

15 would not be put on at the factory?

16 Or the fee would be put on at the

17 distribution level or the fee would be put on only

18 at retail?

19 I'm real unclear on that.

20 DR. WELLIVER: So there's a --

21 manufacturers pay a product registration and they

22 pay a tonnage fee already. So those are not new

23 fees. We're asking for an increase.

24 So currently, 15 cents a ton, when you're

25 manufacturing and selling fertilizer into the State. 27

1 It would go up to 17 cents, which is not unusual.

2 It's not high compared to other States.

3 So --

4 REPRESENTATIVE MOUL: So --

5 DR. WELLIVER: So they're already doing

6 that.

7 REPRESENTATIVE MOUL: Okay. So what

8 you're telling me is the increased fee would not be

9 a financial burden to our farming community. That's

10 my number one concern, is what you're telling me.

11 But then I also hear that the Department of

12 Agriculture would be able to publish any increases

13 and then follow through with them, which doesn't

14 require a vote here.

15 Which that part in itself is a little

16 scary. You can't even raise hunting licenses or

17 fishing licenses without a vote here. So I'm a

18 little queasy on that, if you know what I mean, but

19 my concern was that any additional fees get passed

20 on to a farmer, which then get passed on to all of

21 us at the grocery store.

22 DR. WELLIVER: We -- I can understand

23 your concern from your side. From our side, it's

24 been pretty difficult to get enough -- our bills

25 aren't flashy. They aren't politically exciting. 28

1 It's very difficult sometimes to get people to say,

2 hey, those fees from 1984 probably need updated.

3 The law is basically solid, you know, but we don't

4 have time right now.

5 So we were looking for a mechanism that

6 would be public, that you would see, but that we

7 could do a little bit more quickly, but with

8 responsibility. And that's why we required the two

9 years of loss data before we would even put out a

10 public call for a change in fees.

11 REPRESENTATIVE MOUL: Okay. Thank you.

12 Thank you, Mr. Secretary.

13 MAJORITY CHAIRMAN CAUSER: Any additional

14 questions?

15 Representative Diamond.

16 REPRESENTATIVE DIAMOND: Thank you,

17 Mr. Chairman.

18 Thank you, Mr. Secretary.

19 Dr. Welliver, I just want to go back to

20 one of your comments. You said that sometimes this

21 might mean putting more fertilizer on, using more

22 fertilizer.

23 So how would -- and I understand how that

24 would be smart and that would be reasonable, but why

25 would that happen, if we're not going to get credit 29

1 for overall reduction in sales?

2 I mean, if we end up, on average, we're

3 using more here or using less here and we don't

4 reduce anything, we fall into that same trap of, you

5 know, trying to chase these credits from these

6 non-Pennsylvania authorities and we're seeing that

7 in other areas of watershed law, watershed policy.

8 So I just want to clarify, get a

9 clarification from you, why on earth would we want

10 to do the smart thing if it's going to impact our

11 ability to receive those credits?

12 SECRETARY REDDING: I mean,

13 Representative, I would say a couple of things.

14 One, with the -- the application rate is

15 going to be part of this conversation. So just the

16 move from the one pound of total Nitrogen per

17 thousand square feet to a .9 is a change. So if we

18 just take the tonnage reports today and simply apply

19 a .9 versus 1, there's an immediate sort of change

20 in what's going on in the ground.

21 Two, at the end of the day, yes, it would

22 be like credit for it. Right. We want to have a

23 pretty strategic and holistic approach. But I think

24 for all of us, I mean, the concern about what are we

25 putting on the land, are we being judicious with it, 30

1 you know, is that sort of governed by good science

2 and is it making an impact in water quality?

3 I think that's the overarching need,

4 which we sense to what we're doing, and can we

5 improve that aspect. At the end of the day, like a

6 lot of the conversations with Chesapeake Bay, if it

7 works for the local creek and the local tributaries,

8 it will be -- the bay is a beneficiary, but that's

9 not why we're doing it. Right.

10 There's a benefit to the bay. There's a

11 benefit to Pennsylvania, as we look at the long term

12 plan for how you meet every pound of Nitrogen

13 reduction. We're trying to say, in this approach,

14 that the fertilizer piece and everybody who has been

15 in the agricultural community, the farm community,

16 has heard them say, well, what about that lawn, what

17 about that area?

18 All of the pressure, look at the pie

19 chart, is on the agricultural community. So every

20 pound that we could reduce on the urban side is a

21 pound less we've got to find in the agricultural

22 community. That's an important overarching goal.

23 We'll track this. We'll try to, you know, influence

24 sort of public behavior through the outreach and

25 education. We'll try to change the formulation 31

1 rates, the pound.

2 But at the end of the day, it's about

3 what's happening with water quality and are we

4 making a difference by way of this legislation?

5 I think we are.

6 REPRESENTATIVE DIAMOND: Thank you,

7 Mr. Chairman.

8 MAJORITY CHAIRMAN CAUSER:

9 Representative Gillen.

10 REPRESENTATIVE GILLEN: Thank you,

11 Secretary. Good to see you.

12 Good to see you, Doctor.

13 SECRETARY REDDING: Good to see you.

14 REPRESENTATIVE GILLEN: We don't have the

15 problems that most people have. Our sheep and

16 alpaca mow the grass and then fertilize it at the

17 same time.

18 A question on fees. A fee would be a

19 cost of governance consumed in goods and services,

20 you know, versus a standard tax.

21 So is there a document that we can refer

22 to, maybe to assuage some of the concerns about what

23 lies beyond the horizon with regard to fees?

24 Is there some seminal document we could

25 look at that tells us, here is the relationship 32

1 between moving from 15 to 17 cents per ton under

2 792, that tells this body that we've got an increase

3 in cost here that needs to be covered?

4 Are you using some formulary that you've

5 come up with that arrives at these particular

6 numbers?

7 How are these numbers gotten to?

8 SECRETARY REDDING: Yeah. We can

9 provide, certainly, some of the history of the fees

10 and the use of the fees, I think, would be helpful.

11 Right. How have we used what we've generated, I

12 think, that would be something we can provide.

13 We have a projection on how the fees, the

14 revenue would be used, you know, meaning what's the

15 administration, what's on public outreach and

16 education, we can provide that, as well.

17 REPRESENTATIVE GILLEN: I think if it's

18 provided up front, it would be fairly predictive of

19 what to expect in the future, which is one of the

20 reasons I'm asking the question.

21 SECRETARY REDDING: Okay.

22 REPRESENTATIVE GILLEN: Thank you,

23 Mr. Chairman.

24 SECRETARY REDDING: We could do that.

25 MAJORITY CHAIRMAN CAUSER: Thank you both 33

1 for your testimony. It's very helpful for the

2 Committee as we further consider this bill.

3 SECRETARY REDDING: Yes.

4 MAJORITY CHAIRMAN CAUSER: So thank you

5 for joining us today. And thank you for your

6 testimony.

7 SECRETARY REDDING: Sure. Thank you.

8 A pleasure. Thank you.

9 MAJORITY CHAIRMAN CAUSER: Our next

10 testifier will be Marel King, the Pennsylvania

11 Director of the Chesapeake Bay Commission.

12 Welcome.

13 MS. KING: Good morning.

14 MAJORITY CHAIRMAN CAUSER: Good morning.

15 MS. KING: Thank you for the opportunity

16 to testify. I am Marel King. I'm the Pennsylvania

17 Director of the Chesapeake Bay Commission. With me

18 is Ann Swanson, the Executive Director of the

19 Commission. The Commission is a tri-state

20 legislative commission. We are advisory to the

21 General Assemblies of Pennsylvania, Maryland and

22 Virginia.

23 I just want to say thank you to everyone

24 who showed up today. It's great to see all the

25 interest in, and the questions on, this topic. We 34

1 appreciate that we are here at the Agriculture and

2 Rural Affairs Committee.

3 The Fertilizer Act is codified under the

4 agricultural title. The fertilizer program is

5 housed at the Department of Agriculture. But

6 ultimately, why we are here today is to talk about

7 urban storm water and, specifically, the runoff from

8 turf and lawns in the urban and developed sector.

9 That is the only sector in the

10 Chesapeake Bay Watershed that is increasing its

11 loads to Chesapeake Bay. Agriculture, waste water,

12 air deposition, they're all decreasing their loads

13 to Chesapeake Bay, but the urban sector is, in fact,

14 increasing. And to further complicate the matter,

15 urban storm water best management practices to

16 control those loads are some of the most expensive

17 that we can apply, again, compared to the other

18 sectors.

19 So we, as a Commission, have been

20 investigating for several years opportunities to

21 cost effectively make reductions from the urban and

22 suburban sector. Source reduction happens to be one

23 of the most cost effective ways to reduce those

24 loads. In other words, don't provide that input

25 into the system to begin with. That is much 35

1 cheaper, much more cost effective than trying to

2 manage and control that load once it's already in

3 the environment.

4 It's not an appropriate approach across

5 the board, but in certain areas it is. We've seen

6 that in Phosphate detergent bans, as one example,

7 but this is another example where it appears to be

8 very appropriate. We are not anti-fertilizer. We

9 are not anti-lawns.

10 Actually, healthy lawns -- and this was

11 brought up earlier -- healthy lawns, actually, are

12 very pervious. Unhealthy lawns can be rather

13 impervious. Therefore, healthy lawns promote

14 infiltration, reduce runoff. And we are trying to

15 find that balance between increasing infiltration

16 from a healthy lawn and reducing any excess

17 nutrients that might be applied to that particular

18 lawn.

19 So achieve the healthy lawn, reduce any

20 excess. Therefore, there are two sections in the

21 bill. So that's why you're seeing it in two

22 different places, that .9 number.

23 The first place has to do with the retail

24 product. So that do-it-yourself product that you're

25 going to buy at the hardware store. That is where 36

1 that .9 number comes in to reduce by 10 percent from

2 the typical industry standard. Again, managing the

3 risk from an untrained do-it-yourself situation.

4 The second place is later in the bill that applies

5 everywhere. And that is where it is a default rate

6 of .9.

7 Now, if you have a trained professional

8 that is preparing a site specific plan that looks at

9 many different things, soil type, the species that

10 you're planting, a recent soil analysis, the slope,

11 you know, all of these different factors, climate,

12 if that site specific plan is being prepared by that

13 trained professional -- and that relates back to the

14 certification requirements, as well -- then you can

15 apply whatever that site specific plan is leading

16 you to apply.

17 And we feel that's very important because

18 rather than trying to take business away or harm

19 business of these, you know, trained landscape

20 professionals, we feel that this is actually

21 emphasizing the value of a trained professional and

22 the site specific plan. And you'll hear from the

23 Bay Program later about how those plans, those site

24 specific plans, are another way for the Commonwealth

25 to get credit. 37

1 So not just the reduction in sales, but

2 the actual number of professionally developed plans

3 that are out there. Again, these rates, while a

4 reduction from the typical industry standard are

5 still within the scientific range, many of the large

6 regional companies are already moving in that

7 direction, but it is not universal.

8 You can still go to your local store and

9 find a 10-10-10, quote, all purpose product that

10 still has lawns on the label. So this is not

11 universal.

12 This legislation would instead create a

13 universal standard providing some predictability for

14 the industry. It also provides preemption from

15 local ordinances, balancing the credit that we're

16 providing to the urban storm water sector through

17 this legislation with the preemption that provides,

18 again, some predictability and certainty for the

19 industry.

20 And as far as I know, several of you have

21 questions about the fees. And I don't really want

22 to get into that as part of our testimony today,

23 other than to say that the administration of the

24 program and the ability of the Commonwealth to carry

25 out the law and the reasonable assurance that 38

1 provides to EPA is as much a part of the crediting

2 and the ultimate reduction that we will receive as

3 the law itself.

4 So at that point, if Ann has anything

5 else to add, I'll -- I know we're running low on

6 time, so I'll welcome any questions you have.

7 MAJORITY CHAIRMAN CAUSER: Thank you for

8 your testimony. We appreciate you both being here

9 today to answer questions.

10 In reviewing the legislation, there's a

11 definition of fertilizer application business that I

12 was looking at. And the definition in the bill

13 includes government, schools, universities and golf

14 courses.

15 My question to you is, have those

16 stakeholder groups been engaged in negotiations or

17 discussion on the drafting of the bill?

18 Because I know you've been very involved

19 in the drafting of the bill for, I think you told me

20 eight years, unfortunately.

21 MS. KING: This is our eighth year. Yes.

22 Appreciate that Secretary Redding

23 mentioned the Department has been actively engaged

24 for three years -- and they certainly have -- but we

25 actually first got engaged back in 2011. So this is 39

1 our eighth year.

2 We first met in 2011, actually, with the

3 Fertilizer Advisory Committee to the Department of

4 Agriculture, that involved a wide range of

5 stakeholders regarding fertilizer and remained

6 engaged with them throughout the process. Things

7 quieted down a few years ago, but appreciate that

8 the Department has got the dialogue going again and

9 has been regularly meeting with different

10 stakeholders as this latest version has developed.

11 But a lot of the early feedback that we

12 got from those stakeholders is in this particular

13 bill, specifically, for instance, golf courses and

14 the small dosing, you know, that they provide,

15 athletic fields and the fact that they are used

16 year-round and might need repair, for instance,

17 year-round. So we couldn't completely deny

18 applications, although we might be able to reduce

19 those applications over the winter months, things

20 like that.

21 MS. SWANSON: Just to add, because we've

22 been at this a very long time and across the

23 watershed, we have sat down with all of those

24 groups. And it was a real eye opener in the process

25 because you can't put a bill like this together 40

1 without that kind of understanding as what are the

2 variables, what are the unique needs?

3 So in schoolyards, as Marel was

4 mentioning, where you have big game days, you have

5 trampling, intentional trampling, essentially. And

6 in those kinds of situations, you really need

7 different kinds of products, and also the need to be

8 variable, depending upon certain conditions.

9 And that's how they maintain a healthy

10 lawn, because if that lawn is really sparse, then of

11 course, it's allowing for runoff. It's allowing for

12 storm water, so you want it thick. So this

13 language, in this piece of legislation, will allow

14 for that variability. But what it does is, for the

15 homeowner who is going to the store and buying a

16 product and just wants to do the right thing,

17 they're not a stream expert, they want to do the

18 right thing, what we've done is put the level in the

19 bags at the level where, if you went to the store

20 and you bought your product for your lawn because

21 you want it green, it will trigger green up. It has

22 sufficient Nitrogen. It does not have the

23 Phosphorus, which is no longer needed because of the

24 science. And it will do a perfect job in exactly

25 what you want. 41

1 In the end of the day, Russell mentioned

2 it's all about these four Rs. He talked about the

3 right source, the right place, the right time and

4 the right rate. And what this is doing is, it's

5 making sure that the rate is right. It's, you know,

6 discussing timing in terms of application. And it's

7 also making sure that it's the right source, the

8 right type of fertilizer being used for maintenance

9 fertilizer.

10 MAJORITY CHAIRMAN CAUSER: I guess my

11 direct question is, when we think about fertilizer

12 application in this context, we're thinking about

13 professional lawn care. That's what I think

14 probably a majority of members are thinking about as

15 we look at this. And when you look at the

16 definition of fertilizer application business, it's

17 much broader than that. It includes government

18 units, schools, universities, golf courses.

19 So my direct question is, have they been

20 involved?

21 Are they aware that --

22 MS. SWANSON: Yes.

23 MAJORITY CHAIRMAN CAUSER: -- they're

24 going to have to become certified, they're going to

25 have to comply -- 42

1 MS. SWANSON: Yes.

2 MAJORITY CHAIRMAN CAUSER: Or has there

3 been an analysis done of what it's going to cost

4 these entities?

5 Are our local governments very much aware

6 of what their responsibilities are going to be under

7 the legislation?

8 That's the heart of my question.

9 I, for one, have not heard from any of

10 those groups, so --

11 MS. KING: Well, like I said, this, at

12 least the earlier iterations of the bill, have been

13 around now for eight years and each session since

14 then, first introduced by Senator Brubaker back in

15 2011, where these certification requirements to that

16 breadth of stakeholders, as well as the content

17 limits have been out there now for eight years and,

18 yes, we have met with industry throughout that eight

19 year period, including -- I can recall very clearly

20 conversations with golf course folks and athletic

21 course folks and institutional folks.

22 The reason why those folks are in

23 there --

24 MAJORITY CHAIRMAN CAUSER: You realize

25 that's important for us to know -- 43

1 MS. KING: Absolutely.

2 MAJORITY CHAIRMAN CAUSER: -- the

3 opinions of all of the stakeholders?

4 MS. KING: Absolutely. And the reason

5 why they're in there is because, as an individual --

6 say a university campus -- manages a lot of turf, or

7 an institutional campus, a school district, manages

8 a lot of turf. So as a single individual entity,

9 they manage a lot more turf than even an individual

10 homeowner.

11 So it is important that they are covered

12 under this, as well.

13 MAJORITY CHAIRMAN CAUSER: Thank you.

14 Chairman Pashinski.

15 MINORITY CHAIRMAN PASHINSKI: Thank you,

16 Mr. Chairman.

17 Thank you very much for your eight years

18 of hard work. This is a fascinating place. Before

19 I came here today, it's how can we prevent type 2

20 diabetes. Now, what does that have to do with

21 fertilizer?

22 Absolutely nothing, other than the fact

23 that we're learning new things about how we can take

24 care of ourselves, have a healthier life, you know,

25 with fresh fruit, fresh vegetables, make it 44

1 accessible to the people. So it appears here that

2 the more professional applications that we have, you

3 said we might even get some credits. Right.

4 So by a show of hands, how many in here

5 have professional applicators that take care of your

6 lawn?

7 Okay. There are only a few. Those are

8 the rich people.

9 (Laughter in room.)

10 MINORITY CHAIRMAN PASHINSKI: No, I'm

11 only kidding. I'm only kidding.

12 So in other words, we have a chance, if

13 all of us use professional applicators to take care

14 of our lawns -- and I'm very seriously considering

15 that because I'm contributing to the negative side

16 because my lawn is not green, it's more dirt than

17 anything else. So I'm obviously doing things wrong.

18 But the concept of making sure that the

19 lawns, the greenery, the vegetation, the growth, if

20 done properly, does filter that water to provide the

21 more pure water. So I think it's a matter of

22 balancing whatever this cost is going to be, the

23 education process, but it sounds like there's a good

24 plan here. Hopefully we can put it all together.

25 So good job to all of you guys that are 45

1 working. And if any of you have any recommendations

2 for professional lawn applicators, I'd be happy to

3 take that.

4 Thank you.

5 MAJORITY CHAIRMAN CAUSER: Thank you,

6 Mr. Chairman.

7 Representative Millard.

8 REPRESENTATIVE MILLARD: Thank you,

9 Mr. Chairman.

10 You know, as I read over all of the

11 paperwork that's been submitted here by the

12 Chesapeake Bay Commission and PDA, Bureau of Plant

13 Industry, the question in my mind is, obviously,

14 there's a genesis to have arrived at, you know, how

15 much can be put down per thousand square feet and

16 all of that. I also read in here, the recordkeeping

17 that would be involved by the certified applicators

18 to be made available to the PDA on request.

19 So my question is, is there actual

20 testing, how often is the testing done or is all of

21 this analysis based on the application only and a

22 verification through an audit or paperwork?

23 MS. KING: I'm sorry. I'm not quite sure

24 I'm following your question.

25 REPRESENTATIVE MILLARD: When we're 46

1 looking at whether there's going to be an

2 improvement in a reduction that we're trying to

3 achieve, is there physical testing of the waterways,

4 is there physical testing that is ongoing in the

5 Chesapeake Bay to ascertain whether there is, you

6 know, more going into our waterways than we would

7 prefer?

8 As the chairman of Tourism and

9 Recreational Development, you know, we always like

10 our families to have clean waterways for fishing and

11 recreation and all of those types of things, but my

12 question becomes, is this just a paperwork look, a

13 paperwork audit to determine whether we're exceeding

14 our goal or not?

15 MS. KING: So there is actually extensive

16 water quality monitoring, I know for sure, in the

17 Susquehanna River Basin, I know for sure, conducted

18 by the Susquehanna River Basin Commission, USGS and

19 others, that helps inform our understanding of the

20 Chesapeake Bay and its watershed. So yes, we can

21 tell, not only from what the models tell us, but

22 from the actual water quality monitoring that is

23 going on throughout the watershed, that reductions

24 are occurring in some places, not occurring in other

25 places. 47

1 So yes, there is monitoring data to back

2 up our understanding of what's going on in the

3 watershed.

4 REPRESENTATIVE MILLARD: And I want to go

5 back to what Representative Keller was involved in

6 when he said that, you know, different counties have

7 different levels of industry that would have this

8 product available.

9 So again, my question is, what's the

10 frequency of testing?

11 Obviously, in the springtime is when a

12 lot of applications, I would think, would be put on,

13 you know, for the growth of crops to encourage that.

14 So is there testing only three months of

15 the year, water quality testing 12 months of the

16 year, what waterways?

17 I'm just curious how extensive it will be

18 to verify, you know, whether we're meeting goals or

19 not.

20 MS. KING: I'm going to defer to Matt,

21 who is going to come after us, to answer those

22 technical questions because I know he can answer

23 that question for you.

24 REPRESENTATIVE MILLARD: Okay. And you

25 may not necessarily have that available at your 48

1 fingertips today, but I would think that this

2 Committee would probably be interested in, you know,

3 an analysis of that type.

4 Thank you, Mr. Chairman.

5 MAJORITY CHAIRMAN CAUSER: Thank you,

6 Representative Millard.

7 Representative Moul, briefly.

8 REPRESENTATIVE MOUL: I'll do this -- I

9 know we're running short on time.

10 Curiosity, you said about site specific

11 plans to be approved.

12 Who approves a site -- now, are you

13 talking about a professional that comes to do my

14 lawn?

15 MS. KING: Yeah, a trained professional.

16 So they --

17 REPRESENTATIVE MOUL: He's got to submit

18 that plan --

19 MS. KING: No. He prepares the plan

20 because he is a trained possessional. He or she is

21 a trained professional who is going through the

22 certification program or has expertise to be able to

23 develop that site specific plan, based on several

24 factors.

25 REPRESENTATIVE MOUL: And who will he 49

1 submit that plan to?

2 MS. KING: That would be part of the

3 record -- that would be part of the recordkeeping

4 that potentially could be submitted to the

5 Department, but the Department would not necessarily

6 review that plan because the plan was prepared by a

7 trained professional.

8 REPRESENTATIVE MOUL: Well, if they're

9 not going to review it, what's the point in

10 submitting it?

11 MS. KING: The submission, as I

12 understand it, is for the recordkeeping purposes, so

13 that we know how many plans were developed over how

14 many acres, those sorts of things that relate back

15 to the crediting.

16 REPRESENTATIVE MOUL: Okay. And just

17 very quickly, are people that work on golf courses

18 considered professionals --

19 MS. KING: Yes.

20 REPRESENTATIVE MOUL: -- or are they just

21 considered employees?

22 MS. KING: They are professionals.

23 REPRESENTATIVE MOUL: Okay. So they

24 would be --

25 MS. KING: They're not a 50

1 do-it-yourselfer. If you're not a do-it-yourselfer,

2 essentially, you're --

3 REPRESENTATIVE MOUL: Even though they

4 work for the golf course, they're not an independent

5 company -- so if I do my own lawn, I can put twice

6 as much on, thinking it's going to do me a better

7 job and there's no plan, no regulation, no

8 oversight, no anything. And I can go buy twice as

9 much as I need at Lowe's and throw it on.

10 MS. KING: If you want to buy twice as

11 much, but because of that theoretical possibility,

12 that's why there's 10 percent less in the bag.

13 REPRESENTATIVE MOUL: Okay. Then I'd

14 just buy more, but okay.

15 Thank you.

16 MAJORITY CHAIRMAN CAUSER: Thank you,

17 Representative Moul.

18 Representative Keller.

19 REPRESENTATIVE M. KELLER: Marel,

20 welcome.

21 MS. KING: Hi.

22 REPRESENTATIVE M. KELLER: Good to see

23 you.

24 Hey, a quick question on the line of

25 Representative Moul there. 51

1 If it's submitted to the Department, are

2 we going to be getting credit then?

3 Are credits going to be accounted for,

4 you know, as the plans are submitted?

5 MS. KING: So again, I will defer to

6 Matt, but yes. He can explain exactly how and why,

7 but the answer is yes.

8 MAJORITY CHAIRMAN CAUSER: Thank you,

9 ladies, for your testimony. We're short on time,

10 but the information that you provided is very

11 beneficial for the Committee members, so thank you.

12 MS. KING: Thank you.

13 MS. SWANSON: Thank you.

14 MAJORITY CHAIRMAN CAUSER: Our next

15 testifier is Matthew Johnston, Senior Policy Analyst

16 with the Chesapeake Bay Program Office.

17 We are short on time, in that the House

18 is going into session at 10:00 a.m. We have

19 permission from the Speaker's Office to continue,

20 but I would ask the members to be brief.

21 Thank you.

22 MR. JOHNSTON: Understood. Thank you.

23 Thank you, Chairman. Thank you,

24 Chairman Pashinski for having me here today.

25 I'll be brief. You have my written 52

1 testimony, but I will summarize it for you and also

2 answer a couple of questions that I've heard today

3 so far. I'm here because, as policy analyst for the

4 Chesapeake Bay Program Partnership, the whole

5 purpose of my job and my team is to do exactly what

6 we're doing today, look across various policies and

7 use the model, hate it or like it or love it, to

8 answer what could you possibly gain water quality

9 wise from this legislation, from this policy.

10 We're trying to give you an estimated

11 answer, what can you plan for. So I will also

12 answer a question that I heard, you know, how do we

13 verify this? How do we test for this?

14 The modeling tools and the water quality

15 monitoring that the Partnership does, I would

16 categorize it in three big categories. First, we

17 plan. Today you're considering legislation. And if

18 passed, then that could be put into a plan. It

19 could receive a model credit. You are planning for

20 a future credit.

21 Then we verify. We ask to look at the

22 fertilizer sales data and we ask to look at the

23 acres of urban nutrient management plans that

24 certified applicators submit to the Department.

25 That's verification every year going forward. You 53

1 continue to receive the credit in the Bay Program

2 model.

3 Then, at the last step, we test. And

4 that testing, at some locations in the Susquehanna,

5 the Pequea or the Conestoga, the Juniata, in some

6 cases, that's 365 days a year for the last 35 years.

7 We've taken the fertilizer sales data over the last

8 35 years, plugged it into the model with a lot of

9 other assumptions that are out there from the

10 scientific literature about not only agriculture,

11 but urban lands and what's called calibrated it to

12 that water quality. So we have all of these records

13 of how the Susquehanna, Juniata, Pequea is doing in

14 terms of Nitrogen and Phosphorus.

15 We do our best guess at what's happening

16 on the landscape. And then, we try to see if our

17 model matches the water quality data. And when it

18 doesn't, the model gets adjusted a little bit. So

19 we plan, we verify, and then we test. And that will

20 continue going on for many, many years past now.

21 Just to complete my brief testimony here.

22 The two things you can take credit for in the model

23 right now are that reduction in fertilizer tonnage

24 sold, but I think that we're talking a lot more

25 about that and a lot less about the plans. The 54

1 plans are extremely important. That's a big portion

2 of the credit that I'll describe in a moment. So

3 you can also take credit for the plans the

4 commercial applicators would submit to the

5 Department of Ag.

6 We were asked -- I was asked by the

7 Phase III WIP group to estimate, what could this

8 possibly get us?

9 If we assume there's a 10 percent

10 reduction in Nitrogen applied and a 70 percent

11 reduction in Phosphorus applied because of this law,

12 and then we assume a very -- what I think is

13 conservative -- that 10 percent of all of our turf

14 grass will be under commercial application. So

15 think all of the institutions, all of the homeowners

16 who are going out there and having commercial

17 applicators apply it. Ten percent may be low.

18 If we do that, then we see 180,000

19 pounds, about, of Nitrogen; 220,000 pounds of

20 Phosphorus reduction. And to put that into

21 perspective, that's equivalent to planting 16,000

22 acres of forest buffers on urban land to receive

23 that Nitrogen credit or 240,000, which I would say

24 is not even possible, acres of forest buffers to

25 receive the same Phosphorus credit. 55

1 So that's what we're here to talk about

2 today. We're planning for those two reductions.

3 And then, we'll verify, using the reporting

4 requirements in the law. And then, we'll test the

5 water quality afterwards.

6 Thank you very much for the time today.

7 MAJORITY CHAIRMAN CAUSER: Thank you very

8 much for your testimony.

9 One question that always comes up and has

10 come up repeatedly is getting credit. We're all

11 concerned about getting credit, it seems.

12 A question that comes to mind is, is it

13 the EPA that's directly giving us credit, supposedly

14 credit, or is it this Chesapeake Bay Partnership?

15 Where's the credit coming from?

16 MR. JOHNSTON: Yeah, good question.

17 I will not speak for EPA, but I can tell

18 you what one of their document says. The TMDL

19 requires reasonable assurance. Reasonable

20 assurance, one of those pieces is using the

21 Chesapeake Bay Program Partnership model, of which

22 the partnership built, not EPA, to plan and verify

23 that practices are going down in the watershed,

24 applications are changing in the watershed, and

25 we're seeing reductions in the water. 56

1 So EPA says we want reasonable assurance.

2 And the partnership said, okay, well, we can build

3 you a model. Is that reasonable assurance?

4 And the answer is yes, that is reasonable

5 assurance. It's my understanding -- again, I will

6 not speak for EPA -- but it is my understanding that

7 the end goal, the Chesapeake Bay TMDL is lifted once

8 the water quality shows the reductions are all

9 there. But you build the model to give everyone

10 reasonable assurance and the EPA reasonable

11 assurance that we're going to get there with the

12 policies we put in place.

13 MAJORITY CHAIRMAN CAUSER: So it's

14 reasonable to say that you're providing information

15 to EPA, and EPA is relying on what you provide to

16 base their opinions on whether we're getting credit;

17 is that --

18 MR. JOHNSTON: Absolutely. The EPA

19 actually -- it's a great example of -- EPA is the

20 leader of the Chesapeake Bay Program, but it's a

21 partnership and the States actually do most of the

22 work. We have 12 people that work on these modeling

23 tools and do these technical analyses. Two are EPA.

24 One is USGS. And the rest are Pennsylvania State

25 University, University of Maryland, and Virginia 57

1 Tech University.

2 So your technical experts at the

3 Chesapeake Bay Program are not your Federal experts.

4 They're your land grant universities, and they do

5 defer to us.

6 MAJORITY CHAIRMAN CAUSER: Thank you.

7 Questions from the members?

8 Representative Keller.

9 REPRESENTATIVE M. KELLER: Mine is a

10 two-part question here.

11 First of all, over the years, can you

12 tell me if the numbers in the Bay have gone up or

13 gone down?

14 And the second part of the question is,

15 if this piece of legislation is enacted, can you

16 tell me how much decrease the numbers are going to

17 be created because of this piece of legislation?

18 I think that's important that we know

19 those things.

20 MR. JOHNSTON: Representative Keller,

21 thanks for the two questions.

22 The first one, yeah, we have a great new

23 story to tell. We have monitoring at Marietta,

24 which is above the Conowingo Dam. It contains most

25 of the drainage area of the Chesapeake Bay Watershed 58

1 within Pennsylvania.

2 Things look really good for Nitrogen and

3 Phosphorus over the last 30 years. We've seen large

4 reductions. We attribute the reductions in Nitrogen

5 to everything that you've done in the past,

6 including reductions in Nitrogen falling from the

7 atmosphere because of the Clean Air Act, just a lot

8 less Nitrous Oxide emissions from power plants and

9 things like that.

10 Phosphorous, we see -- for the first

11 time, the Partnership said, go use this fertilizer

12 sales data. And thank goodness we did because we

13 never knew why we were seeing Phosphorus trends

14 improving in the water quality. Now, we see

15 Phosphorus fertilizer sales data has plummeted about

16 50 percent since the '80s. And we don't know

17 exactly why, but we can only attribute that to the

18 great efforts undergone on the agricultural side for

19 nutrient management, the P-Index tool and things

20 like that.

21 The second part of your question is, yes,

22 in my written testimony, we used the model to

23 estimate that number. And for the State of

24 Pennsylvania, again, that number would be 180,000

25 pounds of Nitrogen is what we think you could reduce 59

1 in your local waters; and 220,000 pounds of

2 Phosphorus is what we think you could reduce in your

3 local waters. And if you want more information, I

4 could put that into perspective in terms of what

5 total you need, after the hearing.

6 Representative Keller, you had one more

7 question that I will hit on. We do not use

8 fertilizer sales directly. Because we looked at the

9 Baltimore City sales, and it would be the highest in

10 the entire watershed. We said, well, we can't use

11 fertilizer sales directly because there's nothing in

12 your county and Baltimore City, which has all of it.

13 That's because of the port. The port is there and

14 everything goes out from the port, but we tax it at

15 the port.

16 So instead, the Partnership got together,

17 realized that and said, we've got to do better. So

18 we have a method to estimate use instead of just the

19 sales. We take all of the sales over the entire

20 watershed in the State of Pennsylvania and look at

21 how urban turf is changing across the State of

22 Pennsylvania, work with the USGS partners who do

23 this for a living and come up with an average rate

24 of application across the whole State of

25 Pennsylvania and hopefully, as we get more data, we 60

1 change that up or down throughout time.

2 REPRESENTATIVE M. KELLER: Thank you very

3 much. Appreciate that.

4 MAJORITY CHAIRMAN CAUSER:

5 Representative Moul.

6 REPRESENTATIVE MOUL: Thank you,

7 Mr. Chairman.

8 Thank you, Matt.

9 Across Pennsylvania, at least in the

10 Basin, we spent literally billions and billions of

11 dollars retooling our water treatment facilities to

12 go to denitrification. I think we're probably well

13 over halfway because it's been many years. And it's

14 cost our communities tons of money. We've got debt

15 to our eyeballs on that one.

16 Now, we're looking at fertilizer, okay,

17 which is going to affect our professional

18 fertilizing companies out there and lawn care

19 companies. It's going to affect our golf courses,

20 which a lot of them are already hanging on a thread.

21 You know, what's next after this?

22 MR. JOHNSTON: Luckily, I don't think

23 that question is directed towards me. I think

24 that's directed towards the rest of the legislators

25 in the room. You are the ones who do the value 61

1 judgments. I come here, asked to present to you

2 what we think could happen in the water quality

3 reductions -- or improvements in water quality based

4 on this specific legislation.

5 So that's what I can provide. I can also

6 provide, as I have for the Phase III WIP planning

7 effort, here's the opportunity -- well, this is one

8 opportunity. Other opportunities are forest

9 buffers. Other -- there are other opportunities out

10 there.

11 But we never say at the Annapolis -- at

12 the Bay Program Partnership Office, this is what you

13 have to do. That's why it's a State plan. It's up

14 to you.

15 REPRESENTATIVE MOUL: Okay. You work out

16 of that office. I'm just going to ask you a very,

17 very rogue question. Okay. And a lot of people are

18 going to say, well, is this guy nuts? The answer is

19 probably yes.

20 Tell me about caffeine showing up in the

21 Bay.

22 Any truth to it?

23 MR. JOHNSTON: I have absolutely no idea.

24 REPRESENTATIVE MOUL: Okay. Thank you.

25 MAJORITY CHAIRMAN CAUSER: A rogue 62

1 question. Thank you.

2 Any other questions from the members?

3 Thank you so much for your testimony. We

4 appreciate it, and we'll thoroughly review your

5 written comments also. Thank you.

6 Our next testifier is Gregg Robertson

7 with the Pennsylvania Landscape and Nursery

8 Association.

9 Mr. Robertson, welcome.

10 MR. ROBERTSON: Thank you.

11 MAJORITY CHAIRMAN CAUSER: You may

12 proceed.

13 MR. ROBERTSON: Chairman Causer,

14 Democratic Chair Pashinski and members of the

15 Agriculture and Rural Affairs Committee, thank you

16 for the opportunity to offer testimony today on

17 SB 792, legislation to regulate the application of

18 fertilizer.

19 I represent the Pennsylvania Landscape

20 and Nursery Association, the leading trade

21 association representing Pennsylvania's $6.8 billion

22 green industry. Its member landscape contractors,

23 retail garden centers, wholesale nurseries and

24 greenhouses produce outdoor living environments that

25 improve economic value, air quality, water quality 63

1 and human health.

2 At the outset, I want to recognize the

3 efforts of Secretary Redding, Deputy Secretary

4 Strathmeyer and the other professionals at the

5 Department of Agriculture for working with the

6 industry to craft legislation that minimizes the

7 potential impact on the professional lawn care

8 industry. The amendments that were incorporated

9 into the current bill by the Senate were the result

10 of a cooperative effort by the Department and the

11 industry. We commend PDA for their openness and

12 willingness to work with us in smoothing out some of

13 the more objectionable parts of the legislation.

14 While we now have a bill that is less

15 objectionable than the prior bill language, our

16 Association continues to question the need for this

17 bill, particularly those parts that regulate turf

18 grass fertilizer and the professionals who apply it

19 for a living.

20 There are three major reasons for our

21 concerns:

22 First, based upon the scientific research

23 regarding turf grass fertilization and EPA’s own

24 Expert Panel Report, the bill will have no impact on

25 water quality in the Bay watershed and may even make 64

1 conditions worse.

2 Second, the bill will impose real costs

3 in the millions of dollars on Pennsylvania’s lawn

4 care industry, which is comprised mostly of small

5 businesses.

6 Third, given the recent statement of EPA,

7 Pennsylvania is unlikely to receive any credit for

8 this legislation in meeting Pennsylvania’s 2025

9 Chesapeake Bay goals.

10 I go into a lot more detail in my written

11 testimony to back those up, but I won't go into that

12 now since you have my written testimony.

13 I'll summarize by saying that we have

14 several recommendations for the Committee if this

15 bill moves forward:

16 One, keep Subchapter B, Fertilizer

17 Manufacturers and Guarantors. Contained in this

18 section are increased fees that PDA requires to

19 maintain this program. These increased fees will,

20 no doubt, be passed along to those using fertilizer

21 commercially and privately. We think it's a small

22 price to pay to maintain PDA's capacity to manage

23 and enforce this program.

24 We suggest that you drop Subchapters C

25 and D relating to Applicator Licensing, 65

1 Certification and Recordkeeping. Most of what is

2 covered in this section is already a part of the

3 current Pesticide Control Act. Operators who apply

4 fertilizer are already covered since turf grass

5 fertilizers typically contain pesticides that

6 require applicator certification, training and

7 registration.

8 Few professionals, if any, apply only

9 turf grass fertilizer. These chapters are redundant

10 of what and who PDA currently regulates.

11 Third, we are ambivalent about

12 Subchapter E on Application Rates, Requirements and

13 Prohibitions. The industry broadly is already in

14 substantial compliance with this section. A recent

15 survey that PLNA conducted of bagged fertilizers

16 available in central Pennsylvania, all bagged

17 fertilizers we surveyed are now labeled for

18 application rates below the 0.9 pounds per thousand

19 square feet in the bill, the average .8 pounds per

20 square feet.

21 All except those for new lawn development

22 have no Phosphorus. All meet the minimum slow

23 release Nitrogen set at 22 percent in the bill. If

24 this section is implemented, there will be little or

25 no impact on the current marketplace. The section 66

1 does contain lawn fertilization best practices that

2 we support.

3 Four, we agree with Subchapter F, that a

4 program on agriculture and homeowner education could

5 be a good thing. However, the Committee should

6 recognize that the EPA, in its Expert Panel Report,

7 could find no research that supported the efficacy

8 of a public or industry education program.

9 Five, we support Subchapter G,

10 Administration and Penalties, Section 6887,

11 Exclusion of Local Laws and Regulations. This

12 section will prevent a patchwork of local ordinances

13 from springing up regulating fertilizer use.

14 The Pennsylvania Landscape and Nursery

15 Association thanks the Committee for your

16 consideration of our concerns.

17 MAJORITY CHAIRMAN CAUSER: Thank you.

18 Thank you for your testimony.

19 In looking through your written

20 testimony, one thing that stuck out to me was the

21 cost of compliance. It says the bill will cost the

22 lawn care industry as a whole $5 million per year in

23 compliance costs. These costs are balanced against

24 a bill that provides no environmental benefit and

25 perhaps even a negative benefit. 67

1 Can you explain a little bit more on how

2 you calculated that compliance cost?

3 MR. ROBERTSON: Sure. I'd be happy to.

4 I took a look at the time that would be

5 required in a company, from management all the way

6 down to the people that actually are buying the

7 fertilizer to comply with the components of the

8 bill. We broke those out based on what their hourly

9 rates were. We figured that somewhat, a company

10 would have to pay those employees, so you've got a

11 cost right there.

12 Second of all, they're not doing

13 productive work, which is revenue that would be

14 coming into the company, if, in fact, they were out

15 there and the company was billing for their time.

16 So you've lost twice there. You've got a cost and

17 no revenue to offset it.

18 And we looked at, you know, basically the

19 registration fees, which overall were a minimum part

20 of the overall $5 million, actually. It was the

21 time that's required to spend with the

22 recordkeeping, the training and that sort of thing

23 that's required.

24 MAJORITY CHAIRMAN CAUSER: And that's

25 just for professional lawn care companies. That's 68

1 not universities and local government agencies.

2 MR. ROBERTSON: That is correct. We use

3 data from the Pennsylvania Department of Agriculture

4 to figure out how many there were in Pennsylvania

5 and took the numbers from there.

6 MAJORITY CHAIRMAN CAUSER: Thank you very

7 much.

8 Chairman Pashinski.

9 MINORITY CHAIRMAN PASHINSKI: Thank you

10 very much, Mr. Chairman.

11 Thank you very much, Mr. Robertson.

12 Could you take us through what you do at

13 the present time in establishing a plan and how that

14 plan is administers and facilitates within your

15 organization. And as a result, you determine a cost

16 factor.

17 And then, I'd like to know, if this was

18 implemented, how that would affect that operation.

19 MR. ROBERTSON: Are you speaking about

20 the Pennsylvania Landscape and Nursery Association

21 itself?

22 MINORITY CHAIRMAN PASHINSKI: Well, you

23 made a statement based on the fact it was going to

24 cost you $5 million more, and you're attributing

25 that to time in educating your participants, your 69

1 employees, the company has to educate --

2 MR. ROBERTSON: Right. Our members.

3 MINORITY CHAIRMAN PASHINSKI: Okay. So

4 I'm just trying to get an idea of there is a process

5 now by which you document what you do to a

6 particular area of land. So that's already in the

7 plan. You identify the materials you use. You

8 identify the time. You identify the equipment, et

9 cetera. And therefore, you're able to determine a

10 cost, which you pass on to whoever is purchasing

11 that.

12 So if this was passed, how does that

13 change that application form?

14 How does that change that billing cost?

15 How does that change that plan?

16 I'm having difficulty in seeing that, you

17 know, 15 cents as opposed to 17 cents, a $25 fee as

18 opposed to a $50 fee. I'm not sure how you get the

19 $5 million bucks.

20 MR. ROBERTSON: The fees for the

21 wholesale distribution aren't included in my

22 estimate. The estimates that are included in my

23 estimates are simply the time that it would take a

24 company and an individual to comply with the law.

25 In other words, what training would be required, 70

1 what management oversight would be required to make

2 sure that the company was complying with the law.

3 Those are the sorts of things that went

4 into that $5 million figure.

5 MINORITY CHAIRMAN PASHINSKI: But how are

6 we complying now?

7 How are you complying now?

8 How does this change it?

9 MR. ROBERTSON: You're adding additional

10 compliance requirements, adding additional testing,

11 adding additional testing requirements, training

12 requirements to the employees.

13 It's a brand-new bill. People are going

14 to have to take time to read it, understand it,

15 understand what they need to do in their companies

16 to comply.

17 MINORITY CHAIRMAN PASHINSKI: So it's the

18 first time -- after that first time, that's it. And

19 then after --

20 MR. ROBERTSON: No. There's ongoing

21 monitoring --

22 MINORITY CHAIRMAN PASHINSKI: You don't

23 do monitoring now?

24 MR. ROBERTSON: -- and recordkeeping. I

25 do, but not of this particular law. 71

1 MINORITY CHAIRMAN PASHINSKI: How much

2 more time would be involved by just -- if you're

3 monitoring?

4 How much more time would be involved if

5 this were to pass?

6 MR. ROBERTSON: Well, I figured it would

7 take the owner of a company about an hour a month.

8 MINORITY CHAIRMAN PASHINSKI: That's it?

9 MR. ROBERTSON: That's it.

10 MINORITY CHAIRMAN PASHINSKI: Okay. All

11 right. Thank you.

12 MR. ROBERTSON: Those numbers add up.

13 MAJORITY CHAIRMAN CAUSER:

14 Representative Boback.

15 REPRESENTATIVE BOBACK: Thank you,

16 Mr. Chairman.

17 Do you by any chance have any idea how

18 many municipalities have ordinances regarding

19 professional lawn care services in their

20 municipality?

21 MR. ROBERTSON: I'm aware of none right

22 now in Pennsylvania.

23 REPRESENTATIVE BOBACK: I thought I was

24 aware of one, but okay, thank you.

25 MR. ROBERTSON: I'd like to know that 72

1 if --

2 MAJORITY CHAIRMAN CAUSER:

3 Representative Zimmerman.

4 REPRESENTATIVE ZIMMERMAN: Thank you,

5 Mr. Chairman. And thank you for your testimony.

6 Question relating to your formulas.

7 Are they regulated somehow by someone or

8 is that industry?

9 MR. ROBERTSON: When you say formulas --

10 REPRESENTATIVE ZIMMERMAN: Like your

11 fertilizer mixes and, you know, you were talking

12 about what's in this bill is pretty much what you're

13 doing already.

14 MR. ROBERTSON: Well, in speaking about

15 the bag fertilizers that are available in garden

16 centers and Home Depot and places like that, the bag

17 fertilizers that are out there now are generally in

18 compliance at or below the application rates that

19 are specified in the bill.

20 REPRESENTATIVE ZIMMERMAN: Okay. But

21 you're saying that you're pretty much meeting those

22 asks in this bill already.

23 MR. ROBERTSON: Yes. Absolutely. Yep.

24 REPRESENTATIVE ZIMMERMAN: So just as a

25 follow-up question then, this would add considerable 73

1 paperwork, as well, to the industry.

2 MR. ROBERTSON: Yeah. It's one more

3 thing. If you look at it just by itself, maybe it

4 doesn't seem like a lot, an hour a month for a

5 manager, but that's added onto all of the other

6 things that they have to keep track of and comply

7 with, the Pesticide Control Act, for example, the

8 Nursery Dealers Act. All of those things are things

9 that add up.

10 REPRESENTATIVE ZIMMERMAN: Okay. Thank

11 you.

12 Thank you, Mr. Chairman.

13 MAJORITY CHAIRMAN CAUSER: Representative

14 Keller.

15 REPRESENTATIVE M. KELLER: Thank you,

16 Mr. Chairman.

17 I'm a bit confused.

18 MR. ROBERTSON: Okay.

19 REPRESENTATIVE M. KELLER: In the

20 Secretary's testimony, there's a letter from your

21 organization stating that, you know, you weren't

22 objecting to the bill. I'm assuming as long as two

23 amendments go in that you're talking about in that

24 letter; is that correct?

25 Because your testimony today doesn't 74

1 sound quite as glowing as the letter sounds.

2 Can you clear that up for me?

3 MR. ROBERTSON: I will try. This has

4 been a very difficult thing for our association.

5 One is we have a very good relationship with the

6 Department of Agriculture, as I mentioned. They are

7 the main organization, State organization that

8 regulates us. And we enjoy a good working

9 relationship with them.

10 On the other side of that are our

11 members. Recognizing that this bill is going to

12 impose real costs on them, there was an internal

13 debate within the association. And at first, we

14 thought, you know what, we'll just keep our heads

15 down. We don't even want to testify.

16 But as that got kicked around within the

17 organization, we said, no, we really can't do that.

18 We've got to stand up for our members and speak. So

19 that's why we came here today. I do admit that we

20 probably have some relationships to patch up with

21 the Department, but the PLNA Board ultimately felt

22 that, you know, we're here to represent our members.

23 MAJORITY CHAIRMAN CAUSER: Any other

24 questions from members?

25 Thank you, sir, for your testimony. 75

1 MR. ROBERTSON: Thank you.

2 MAJORITY CHAIRMAN CAUSER: It's helpful

3 as we further consider this bill.

4 Thank you.

5 MR. ROBERTSON: Thank you, Mr. Chairman.

6 MAJORITY CHAIRMAN CAUSER: I want to

7 thank all of the members for all of the great

8 questions today. I do think that the information

9 that we have gathered here today is helpful, and

10 we'll continue to review the written testimony. So

11 at this point, this meeting is adjourned.

12 Thank you.

13 (Whereupon, the hearing concluded at

14 10:20 a.m.)

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1 CERTIFICATE

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3 I hereby certify that the proceedings are

4 contained fully and accurately in the notes taken by

5 me on the within proceedings and that this is a

6 correct transcript of the same.

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9 ______

10 Tiffany L. Mast, Court Reporter/Notary 11

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