The deputy first minister told the Senedd he is optimistic that revenue generated by UK-led reforms to water pollution regulations will stay in Wales.
Huw Irranca-Davies, who is also climate change secretary, appeared before a Senedd committee for scrutiny on Westminster's water (special measures) bill on 16 October.
Pressed by the Conservatives’ Janet Finch-Saunders about funds from pollution fines going to the UK Treasury, he said the Welsh Government wants revenue to stay in Wales.
Mr Irranca-Davies told the committee: “That’s the nature of the engagement we currently have with the UK Government. It’s probably fair to say those discussions are going well.”
The Senedd will vote on consent for the bill because elements fall within devolved powers.