Department of Environmental Quality

1. Request to Proceed with Rulemaking Process for Proposed Amendments to Nutrient Strategy RulesMay 9, 2018Water Quality Committee Department of Environmental Quality

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

3. Overview of Process & Stakeholder Input 02B Nutrient Strategy Rules – Neuse & Tar-Pamlico Department of Environmental Quality

4. Next Steps 02B Nutrient Strategy Rules – Neuse & Tar-Pamlico Department of Environmental Quality

5. Summary of Revisions Purpose & Scope / Definitions Department of Environmental Quality • Purpose & Scope Rules • Clarifies geographic area to which rules apply • Adds biannual report by staff to WQC on strategy implementation progress • Adds adaptive management component • Includes comprehensive authority statement • Definitions Rule • New rule, collects mostly existing nutrient strategy definitions

6. Summary of Revisions Nutrient Offset Rule Department of Environmental Quality • Same basic rule - improved utility • Provides for permanent credits & temporary credits • Clarifies 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 • Complicated subject - stream, wetland & buffer mitigation realm, best path not clear • Staff seeking full public input • Point to Nonpoint Trading Ratios – Options for comment • 2 to 1* • 1.77 to 1* • 1.2 to 1 • TBD by Commission (Something between 2 & 1.2) • * = Case-specific data or direct monitoring may reduce to 1.2 to 1

7. Summary of Revisions Neuse & Tar-Pamlico New Development Stormwater Rules Department of Environmental Quality Local Government Requirements • Adds communities – 16 Neuse / 3 Tar-Pamlico • Criteria for adding new communities • Evaluated area in watershed, population & population growth rate • Area ~20% of jurisdiction in watershed • Population (> 20,000 County or > 5,000 Municipality) • Annual population growth (> 200 people / year) • Also considered if already implementing post-construction stormwater • Implementing Phase II post-construction; or • Already Implementing nutrient stormwater requirements in portion of jurisdiction • Dropped retrofit ID reporting requirement

8. Summary of Revisions (Continued) Neuse & Tar-Pamlico New Development Rules Neuse Tar-Pamlico Department of Environmental Quality

9. Summary of Revisions (Continued) Neuse & Tar-Pamlico New Development Rules Department of Environmental Quality Project Requirements • Same basic requirements • Uses most recently approved accounting tool • Ensures accounting tool used based on most recent data • Simplifies implementation – same tool across strategies • Refers to SCM and density requirements in 02H .1003 • Replaces offsite thresholds with minimum onsite treatment requirements matching 2H rules

10. Summary of Revisions (Continued) Neuse & Tar-Pamlico New Development Rules Department of Environmental Quality Project Requirements • Clarifies ways to meet runoff requirements • Export targets • Volume match per definition in 15A NCAC 02H .1002 • Nutrient offset option • Updates Tar-Pam export target for TP: 0.8 lbs/ac/yr • Exempts individual SFR lot projects meeting criteria: • Not part of larger common plan of development • < 5% BUA or on lot > 5 acres

11. Summary of Revisions(Continued) Neuse, Tar-Pamlico Agriculture Rules Department of Environmental Quality • Agriculture Rules • Retains same design - updates text to reflect actual implementation • Accounting: Adjust to account for Ag land lost to development • BMP Standards: Adds practice standards for Ag BMPs • Annual Reporting: Annual reports to be submitted to Division

12. Summary of Revisions (cont’d) Tar-Pamlico Wastewater Rule New and expanding dischargers - • Updated limits to current limits of technology (3 vs 6 mg/l TN, .5 vs 1.0 mg/l TP) • Retained offset requirements for: • All new loads • All expanding discharges > .5 MGD • Updated offset process – tie into Offset rule: • Provider options vs. pay DWR • Cost set by providers vs. fixed BMP formula • Broadened from non-Association dischargers to any new or expanding facility – Reflects actual practice • No impact to Tar-Pam Basin Association

13. Action Item Request Department of Environmental Quality Proceed with rulemaking process including the development of the fiscal note for the proposed amendments to Nutrient Strategy Rules 15A NCAC 02B .0229 through .0258 and proposed adoption of new rules 15A NCAC 02B .0701, Definitions and 15A NCAC 02B .0730, Tar-Pam Purpose & Scope.

14. QUESTIONS John Huisman Environmental Program Consultant N.C. Dept. Of Environmental Quality Division of Water Resources 919-807-6436 john.huisman@ncdenr.gov Department of Environmental Quality

15. Slides in Reserve Department of Environmental Quality Slides in Reserve

16. Proposed Neuse Wastewater Rule – Staff Recommendations 15A NCAC .0713 Department of Environmental Quality • Key Staff Concerns w/ Proposed Neuse WW Rule (.0713) • Uncertainty ratios below range proposed for comment in Nutrient Offset Rule • Removes nutrient limits for ‘intermediate discharge’ facilities • Other Problematic text changes • Recommend .0713 move forward as part of rule package • Fiscal Analysis should be performed for NM strategy as a whole • Logical connections to Nutrient Offset Rule & uncertainty options • Public Input on uncertainty ratios is important

17. Regulatory Context / Authority Overview Department of Environmental Quality Nutrient Management Strategy Rules • Federal Clean Water Act (1972) • Requires state to identify impaired waters & develop TMDL • NC Clean Water Responsibility Act (1997) • Enacted through several NC statutes • Charges EMC w/ responsibility to protect & restore water quality • Requires setting goals for nutrient sensitive waters • Requiresall sources reduce “fair, reasonable, proportionate” Rules Readotpion • G.S. 150B-21.3A G.S (2014) • Requires Division to readopt its rules

18. Neuse / Tar-Pamlico / Randleman Stakeholder Meeting Stakeholder Meeting Overview • Attendees (65+) • Local Governments • Stormwater Consultants • Agriculture Interest • Wastewater Plants • Private Nutrient Offset Bankers • Environmental Groups • State Agencies October 18, 2017 Wilson County Presentations posted online at: https://deq.nc.gov/nps Department of Environmental Quality