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Environmental Management Commission September 12, 2019 John Huisman, DWR

Environmental Management Commission September 12, 2019 John Huisman, DWR. Hearing Officers’ Report of Proceedings Neuse & Tar-Pamlico Nutrient Strategy Rules Re-adoption 15A NCAC 02B .0229 -.0258 15A NCAC 02B .0701 -.0730. 2B Neuse & Tar-Pamlico Nutrient Strategy Rules Readoption Package.

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Environmental Management Commission September 12, 2019 John Huisman, DWR

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  1. Environmental Management Commission September 12, 2019 John Huisman, DWR Hearing Officers’ Report of Proceedings Neuse & Tar-Pamlico Nutrient Strategy Rules Re-adoption15A NCAC 02B .0229 -.0258 15A NCAC 02B .0701 -.0730

  2. 2B Neuse & Tar-Pamlico Nutrient Strategy Rules Readoption Package • Proposed for Amendment & Transfer to new .0700 Section

  3. Rules Re-adoption Process Overview

  4. Public Hearing and Comment Period Process Summary • Public Comment Period: February 15 – April 16, 2019 • 2 Public Hearings (Kinston & Clayton) • 44 attendees w/ 7 speakers providing comments • 40 Comment Letters w/ ~ 123 Comments • 6 Hearing Officer Meetings: May – August 2019

  5. Revisions Drafted for Public Comment Definitions / Purpose & Scope / Agriculture Rules Definitions Rule (.0701) • New rule, collects existing nutrient strategy definitions in one location Purpose & Scope Rules (.0232 & .0730) • Added biannual report by staff to WQC on strategy implementation progress • Added adaptive management component Agriculture Rules (.0238 & .0256) • Updated annual reporting to account for Ag land lost to development • Included references to practice standards for Ag BMPs • Required annual reports be submitted to Division vs. EMC

  6. Hearing Officers’ Recommendations Definitions / Purpose & Scope / Agriculture Rules Definitions Rule (.0701) • Add and revise several definitions Purpose & Scope Rules (.0730 & .0232) • Clarify deadline for submittal of staff report – within 3 years of effective date of rule Agriculture Rules (.0238 & .0256) • Remove proposed requirement to account for Ag land lost to development

  7. Revisions Drafted for Public Comment Neuse & Tar-Pamlico New Development Rules (.0235 & .0258) Tar-Pamlico Neuse • Communities Added to Each Rule • Neuse 11 municipalities / 5 counties • Tar-Pamlico: 3 counties • Criteria Used: • Population > 20,000 County> 5,000 Municipality • Annual population growth > 200 people / year

  8. Revisions Drafted for Public Comment (continued…) Neuse & Tar-Pamlico New Development Rules (.0235 & .0258) Project Requirements: • Replaced offsite thresholds w/ minimum onsite treatment matching 2H rules • Projects with 24% BUA or greater implement SCM before using offsite offsets • Used most recently approved accounting tool • Exempted individual SFR lot projects with < 5% BUA • Added flexibility by allowing use of regional SCMs • Allowed LG road expansions and sidewalk projects to meet all reductions via offsets

  9. Hearing Officers’ Recommendations Neuse & Tar-Pamlico New Development Rules (.0235 & .0258) Local Government Requirements • Remove (3) proposed stormwater communities • Granville & Vance County (Tar-Pamlico) • Greene County (Neuse) Project Requirements • Clarify density based onsite stormwater water treatment requirements • Clarify how existing impervious is addressed in redevelopment projects

  10. Revisions Drafted for Public Comment Tar-Pam Wastewater Rule (.0229) • Broadened coverage to Tar-Pamlico Association (TPBA) Members • Addresses all new and expanding facilities in basin • Provided clear regulatory path to utilize allocation trading & nutrient offsets • Updated offset process – ties into Nutrient Offset Rule • Cost set by providers vs. fixed BMP formula • Updated treatment standards for new and expanding facilities

  11. Revisions Drafted for Public Comment Neuse Wastewater Rule (.0234) • Same basic requirements, no changes to existing allocations / group compliance • Added flexibility for new and expanding facilities • Allows direct use of nutrient offsets vs. first pursuing nutrient allocation • Reduced up-front costs of offset credit purchases • Allows purchases in 10-year increments rather than 30-year increments • Revised point to nonpoint trading ratio • 1.1:1 (unmonitored) • 1:1 (monitored)

  12. Key Hearing Officer Recommendations Neuse & Tar-Pamlico Wastewater Rules Tar-Pamlico Wastewater Rule (.0229) • Delay implementation for TPBA until 2025 to coincide with end of MOA • Revise mass load equivalent concentrations to match Neuse • Change 3.0 mg/L N to 3.5 mg/L Neuse Wastewater Rule (.0234) • Use single point to nonpoint trading ratio of 1.1 to 1 and move to Nutrient Offset Rule • Replace mass load equivalent concentrations with BAT for new industrial dischargers

  13. Revisions Drafted for Public Comment Nutrient Offset Rule (.0240) • Improved utility • Provided for permanent credits & temporary credits • Clarified scope of rule applicability-Trading only, not direct compliance • Universally applicable to all 4 nutrient strategies • Credit Stacking – Options for comment • Nutrient offset credits & stream credit in same spatial area • Established Point to Nonpoint Trading Ratios • 1.1 to 1 (unmonitored) • 1 to 1 (monitored)

  14. Hearing Officers’ Recommendations Nutrient Offset Rule (.0240) • Use 1.1 to 1 PS to NPS trading ratio • Locate trading ratio in Offset Rule so it applies universally to all nutrient strategies • Add clarification how baseline condition determined for establishing credit • Clarify provider, stewardship, and easement holder responsibilities

  15. Hearing Officers’ Recommendations Fiscal Note Fiscal Note • Add update recognizing challenges of finding allocation to buy or lease • Update discussion to include February 2019 EPA Trading Memo • Clarify impact of requiring permanent offset credit from developers Updates to the Fiscal Note provide additional context but do not amend the original cost calculations previously reviewed and approved by OSBM

  16. Department Trading Ratio Recommendation • Department-Recommended Point to Nonpoint Trading Ratio • 2:1 for unmonitored projects • 1:1 for monitored projects • Considerations: • National norm for point to nonpoint trading ratios remains 2:1 • Several cost cutting rule changes supported by Department • Ongoing water quality issues in the Neuse & Tar-Pamlico estuaries • Uncertainties; data needed

  17. 2:1 Trading Ratio is National Norm

  18. DEQ Support for More Cost-Effective Trading Programs • DEQ Supported Changes w/ Cost Savings • Supported passing S.L. 2019-86 • Expands allowable trading area for wastewater facilities • Cost savings estimated up to 40% • Added permanent credits for permanently protected offset projects • Adds flexibility w/ permanent & temporary credit options • Reduced number of years of offsets needed for renewal • Change from 30 years to 10 years reduces upfront costs • All cost saving changes maintain environmental protections

  19. Water Quality and Uncertainty • Neuse and Tar-Pamlico Strategies • TN levels back to baseline • Estuaries remain impaired. • Insufficient offset requirements could allow increased nutrient loading to the estuaries • No water quality justification offered for 1.1:1 (10%) uncertainty estimate • Example of water quality evidence supporting larger value: • Current NC ag buffer restoration credit: 76 lbs. TN/ac/yr reduced (1999) • Vs. Line and Hunt (2007) in-state ag buffer restoration reduction estimate • 22 lbs. TN/ac/yr reduced vs. 76 lbs. TN/ac/yr credited • Uncertainty could be reduced by additional in-state monitoring

  20. Recommended Language Change – Trading Ratio Nutrient Offset Rule .0703

  21. Motion Request that the EMC approve the proposed amendments to the Neuse and Tar-Pamlico Nutrient Strategy Rules (15A NCAC 02B .0229 through .0258 and Proposed 15A NCAC 02B .0701 and .0730) as recommended by the Hearing Officers, with the exception of Nutrient Offset Rule .0703 Subparagraph (j)(4), for which it is requested the EMC approve the substitute language proposed by the Department.

  22. QUESTIONS? John Huisman Environmental Program Consultant N.C. Dept. Of Environmental Quality Division of Water Resources 919-707-3677 john.huisman@ncdenr.gov

  23. Slides in Reserve

  24. Neuse & Tar-Pamlico Estuaries - Current Impairment(Water Quality Data through 2016)

  25. Passage from 2019 EPA Trading Memorandum “The Agency’s expectation is that states and tribes will develop robust and defensible water quality trading programs that comply with the Clean Water Act and result in water quality improvements.”

  26. Proposed Stormwater Community – Population Data

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