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HomeMy WebLinkAboutAgenda - 06-01-2010 - 7aORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 1, 2010 Action Agenda Item No. —] - CA SUBJECT: Draft Comments - Proposed Falls Lake Nutrient Management Rules DEPARTMENT: Planning PUBLIC HEARING: (Y /N) No Environment, Agriculture, Parks & Recreation (DEAPR) ATTACHMENT(S): Draft Letter to EMC Proposed Rules Summary Ag Preservation Board Comments INFORMATION CONTACT: David Stancil, DEAPR, 245 -2522 Tom Davis, DEAPR, 960 -3878 Craig Benedict, Planning, 245 -2592 Terry Hackett, Planning, 245 -2588 Gail Hughes, DEAPR- Soil & Water 245 -2753 Tom Konsler, Environmental Health, 245 -2370 PURPOSE: To consider draft comments for submittal to the N.C. Environmental Management Commission on the proposed Falls Lake Nutrient Management Rules, which are to be presented for public comment this summer. BACKGROUND: On March 16, the Board received a presentation on the Triangle Mayors and Chairs "Consensus Principles" regarding the proposed Nutrient Management Strategy for the Falls of the Neuse Reservoir (Falls Lake) watershed. The draft Nutrient Management Strategy (usually referred to as the "Falls Lake Rules ") was forwarded to the Environmental Management Commission (EMC) in March. A summary of an earlier version of the Falls Lake Rules prepared by the North Carolina Division of Water Quality is attached. The summary includes discussion of the rules development process. This document, dated January 2010, summarizes an earlier set of rules which are slightly different from the current set of draft rules. Based on recent conversations with the Division of Water Quality (DWQ) staff, the EMC is likely to authorize the DWQ to publish the proposed Falls Lake Rules in the June 2010 State register, which will in turn initiate a 60 -day "window" for the public to comment on the draft rules. This 60- day period is likely to begin on or about June 15 and end circa August 15. The 60 -day public comment period may include public hearings in Raleigh and Durham. The Falls Lake rules are expected to go into effect in February 2011, initially as "temporary rules ", and then later as permanent rules once they are approved by the Rules Review Commission and the North Carolina General Assembly. 2 The entire Falls Lake watershed was previously designated by DWQ as a Nutrient Sensitive Water as a result of elevated chlorophyll -a (a species of algae that is an indicator of excessive nutrient levels) and turbidity levels in the Lake. The draft rules are intended to address these nutrient levels and achieve water quality standards in Falls Lake by reducing the nitrogen and phosphorus loading reaching the Lake. A staged approach to nutrient reduction is included in the draft rules with the intent of reaching water quality targets in the watershed by 2036, such that the Lake will achieve water quality standards by 2041 at the latest. To address nutrient management in the upper portion of the watershed, which includes Orange County, DWQ proposes to implement rules designed to yield reductions in nitrogen loading by 40% and phosphorus loading by 77 %. The measures needed to accomplish these reductions will be significant in terms of cost and other resources for many jurisdictions, especially those areas that are more densely developed. In Orange County's case, the ramifications are different but no less significant. From and since the mid- 1970's, when Orange County became the first County in the state to adopt an erosion control ordinance and the Board of Health adopted more stringent rules governing septic systems, to 1981, when Orange became the first local government to implement watershed protection zoning, and through the present -day, the County has instituted progressive non- structural measures to address stormwater runoff and watershed protection via land use controls. These controls include significant and protective stream buffer requirements, on -site infiltration of runoff, increased lot sizes, stringent impervious surface limitations and floodplain protection. In addition, in 2001, the County's Lands Legacy Program began acquiring critical natural and cultural resource lands that include watershed riparian buffers and farmland within water supply watersheds. However, many of these progressive measures that have already served to lower nutrient loading from the County's jurisdiction are essentially unrecognized by the proposed rules, which would treat all activity prior to the 2006 "baseline year" as "existing development" and still require a 40% reduction in nitrogen and 77% for phosphorus from the baseline loading which originated in the County in 2006. Furthermore, the remaining agricultural operations in the affected area of the County have already reduced nutrient loads as a result of the Neuse Basin Rules which became permanent in 2000, making it difficult at this time to effect further reductions from already lowered current agricultural loading rates. The County's Agricultural Preservation Board has prepared comments, which are included in an attachment, specifically addressing the agriculture section of the draft Falls Lake Rules. In the County's case, it may be difficult to implement a percentage -based nutrient reduction when baseline loading levels are already projected to be very low — in large part due to County - implemented programs of the last 30 years. Staff estimates that the nutrient reductions which may be eventually required may be close to background levels. Accurate determination of the County's current and baseline nutrient loads are not possible at this time as DWQ has not released the accounting tool which will be used to determine the nutrient loads from different land cover types. Since the public hearing period may close before the Board returns from summer break, the attached draft letter to the EMC is written for potential submittal to the EMC. The letter is based on the approach taken by the County (under very similar circumstances and timing) for the Jordan Lake Watershed rules in 2007, and discusses these issues and also provides information concerning the County's strong history of watershed protection. The letter includes the following highlights: • The reduction measures proposed are not performance- based, but are in fact a "one size fits all" set of regulations, and may not be equitable, with flexibility needed for more rural areas where local governments have previously instituted progressive watershed protection and minimized nutrient loading. • There is less agriculture in the watershed within County jurisdiction than the model may assume, and the agricultural operations that do remain have already made significant reductions in nutrient loading as a result of the earlier Neuse Basin Rules and changes to no -till agriculture - making any required further nutrient reductions difficult to achieve for the agricultural community. • The burden of cost for implementing these measures would fall in large part on local governments. Water quality issues in Falls Lake have been long- predicted and are regional in nature. State funding assistance would be appropriate in addressing this larger regional problem, especially for a jurisdiction with a proven history of watershed protection — voluntary protection which has also come at cost to the County. • Uncertainty exists regarding some of the input parameters used in the modeling. • Finally, the timing of the public comment period over the summer months is not conducive to stakeholder and public participation. As the County proposed for the similar Jordan Lake Rules public comment period in summer 2007, an extension to allow a fuller discussion and dialogue would be desirable. FINANCIAL IMPACT: There is no financial impact associated with the conveyance of these comments. However, promulgation and implementation of the Falls Lake rules that have been proposed will have significant financial impacts for local governments for an extended period of time. The cost of implementing reduction measures will not be known until the accounting tool is made available. Some jurisdictions (with more urbanized areas and expensive retrofit options) have estimated the cost of complying with the draft rules to be in excess of $500 million dollars. RECOMMENDATION(S): The Manager recommends that the Board consider and discuss the attached draft public comments letter and authorize the submittal of the letter to the EMC during the public hearing period, with such changes as deemed necessary. 4 May 18, 2010 Mr. Stephen T. Smith, Chair Environmental Management Commission 1617 Mail Service Center Raleigh, NC 27699 -1617 RE: Comments on the draft Falls Lake Nutrient Management Strategy 15A NCAC 02B.0275-.0283 Dear Mr. Smith: Orange County is pleased to be able to provide comments on the draft Falls Lake Nutrient Management Strategy, which is intended to reduce nutrient loading to Falls of the Neuse Reservoir (Falls Lake). The County appreciates the work that the Environmental Management Commission (EMC, the Commission) and the North Carolina Division of Water Quality (DWQ) have undertaken to tackle the issue of reducing the nutrient loading to this important public water body. At a local level, this work is supported by the history of watershed protection that has been a cornerstone of Orange County policies and regulations since the 1970's. The nutrient reduction measures and regulations which the county has already addressed were the first of their kind in North Carolina. These include the implementation of an Erosion Control Ordinance in 1975 as well as the adoption of a Land Use Plan and associated Zoning Ordinance and Subdivision Regulations in 1981. Since then, Orange County has continued to enforce and update regulations and procedures to ensure that the water supply watersheds in the county are protected, including obtaining local delegated authority in 2001 to enforce the Neuse River Basin rules. It has long been the policy of the county to rely on land use measures and non- structural methods of protecting water quality — to treat protection at the source as much as possible. Stream buffer regulations in Orange County have long exceeded the minimums established by the State. Other regulations which serve to protect the quality of water in Orange County include extremely restrictive flood damage prevention standards and impervious cover restrictions. For example, the county's designated Upper Eno critical watershed area, which is Falls Lake Draft Rules Comments 5 Page 2 within the Falls Lake watershed, exceeds the state designated critical area almost six -fold. Elected officials in Orange County have consistently supported the fundamental idea that concentrating on limiting nutrient loading at the source is greatly preferred over relying on structural stormwater controls to remove nutrients after they have been generated. These measures are indicative of the level of commitment given to protecting water quality in Orange County. Given this proactive history of working to protect watersheds in the county, Orange County believes it has a somewhat - unique perspective on the proposed Falls Lake Nutrient Management Strategy (Falls Lake Rules). The County believes that there are several areas of concern with the draft Falls Lake Rules which are important for the Commission to consider, including the following: 1. The "one size fits all" approach of the draft regulations. 2. Uncertainties regarding parameters utilized in the development of the watershed model. 3. Concerns about further nutrient reductions being required from agricultural lands - which have already reduced nutrient runoff by implementing the buffers required as a result of the Neuse Rules (which became permanent in 2000). 4. Uncertainty as to whether the nutrient reductions required by these Rules will actually achieve what appears to be necessary, and uncertainty as to the length of time it will take the lake to respond to reductions in nutrient loading. 5. Calls by some for an opportunity to include a "re- examination" of the modeling done by DWQ indicate that uncertainty and doubt concerning the original modeling effort seems to exist. 6. The uncertainty surrounding what reductions will be required and the likely tremendous cost to be borne by local governments. 7. The timeframe of the public comment period may inadvertently serve to suppress public and local government comment. The following paragraphs provide further details about each of these areas of concern. 1. While the legislation governing the creation of these rules calls for a set of rules that are "fair, reasonable and proportionate," it does not seem certain that these characteristics can be used to describe a "one size fits all" set of rules which is intended to be applied to densely developed urban areas as well as rural areas which have been covered by regulations protecting water quality for many years. It appears certain that the nutrient loads emanating from urban areas are much greater than the load originating in rural areas, as evidenced by the preponderance of "impaired" streams in the more urban areas of the Falls Lake watershed versus the lack of such water bodies in the more rural areas of the watershed, such as in Orange County. Falls Lake Draft Rules Comments 6 Page 3 Given the relatively low nutrient load originating in sparsely developed, rural areas such as Orange County, a percentage -based reduction target - such as is proposed in the draft rules - will not likely result in any significant reduction in nutrient loading at Falls Lake from rural areas alone. The same percentage - based reduction in a more urban environment will likely result in a more significant reduction in nutrient loading at Falls Lake as a result of the much higher loading rates of these areas. Instead, if all entities were to meet certain nutrient loading targets, larger sources of nutrients would need to enact larger reductions than smaller sources in order to meet the target. This would seem to be more "fair, reasonable and proportionate." If such regulations were enacted, local governments which have acted to protect water quality over the years, possibly by limiting development impacts, would in fact be essentially rewarded for these past practices. Areas that have over the years promoted development with less regard to corresponding water quality impacts would likely (some may say, appropriately) have larger reductions to make in order to meet nutrient loading targets, but they would also likely have a larger tax base to pay for the required reductions. Enacting a "one size fits all" set of regulations certainly does not reward areas which in the past have enacted land use controls and development density parameters to address watershed protection. 2. Considerable concern exists about some of the parameters used in the development of the watershed model. Most significantly, we feel that the contributions of nutrients included from septic systems and sand discharge filters in the Eno and Little River subwatersheds were likely highly overestimated in the watershed model. Durham County contains approximately 3,000 sand discharge filters, while Orange County contains less than 300 of these devices. Septic systems (with sand discharge filters added in) were determined to be the main source of Total Nitrogen in the entire Eno River subwatershed by the watershed model. If this is true, this indicates that, in fact, the main source of nitrogen in these two subwatersheds is most likely not in Orange County. Furthermore, no local studies have assessed the actual rate of nutrient export to surface waters attributable to ground absorption septic systems. No local data appears to exist to support the idea that ground absorption septic systems are a significant source of nitrogen in surface waters. For these reasons, Orange County does not believe that on -site wastewater systems in Orange County represent a significant source of nutrients to Falls Lake. It should also be noted that the land cover information included in the watershed model report indicated that the majority of the land in both the Eno and Little River subwatersheds was in fact forestland, with only 17% of the Eno subwatershed and less than 10% of the Little River subwatershed even developed. Given historical development trends and policies, it is likely that these subwatersheds are more rural in Orange County than in Durham County. Falls Lake Draft Rules Comments 7 Page 4 These facts make the claim of these areas as significant sources of nitrogen from septic systems even more doubtful. 3. Significant reductions in nutrient loading from agricultural lands were already achieved in Orange County as a result of the existing Neuse Rules, as well as the advent of "no -till' agriculture in the recent decades. Further reductions in nutrient loading from the dwindling number of agricultural operations in the county may not be feasible. Additional reductions in croplands and pastures as a result of buffer and livestock exclusion requirements may force more agricultural operations out of business, likely having the detrimental affect of increasing urban -style development within rural areas, counter to the County's Comprehensive Plan. Any such increase in developed lands is likely to result in an increase in nutrient -laden runoff. 4. While there is little doubt that measures are required to reduce the nutrients entering Falls Lake, little information seems to be available as to what the proposed nutrient reductions described in the draft rules will actually accomplish to this end. Will the proposed reductions actually result in Falls Lake no longer being "impaired "? How long will it take for reductions in nutrient levels in the lake to be seen, based on reductions in nutrient loading in the watershed? Is it even feasible to continue to maintain all designated uses of Falls Lake? Are there alternative water quality standards which would be sufficient to protect the main uses of Falls Lake and which would not be so difficult to achieve? Unfortunately, answers to these important questions likely do not exist at this time. It may be worthwhile to have an independent organization examine these issues, and others, once Stage I of the Nutrient Reduction Strategy is underway - if for no other purpose than to give support to the further reductions that are called for under Stage II. Given the enormous nutrient load reductions called for in Stage II of the draft rules, and since the technology that several area wastewater treatment plants will depend upon to meet the reduction goals does not exist, a review of the progress to date seems like an excellent idea. 5. The Triangle Chairs and Mayors Group published a set of Consensus Principles earlier this year concerning the draft Nutrient Management Strategy. While these principles supported many of the draft rules, contained within the list of principles was a desire for the proposed rules to include a "re- examination" of the rules after they have been in effect for several years, prior to Stage II of the rules (which calls for even more drastic reductions in nutrient loading than mandated in Stage 1). The Consensus Principles state that the rules development process "relied on a limited data base which will be substantially enhanced by a more rigorous program of sampling, monitoring and analysis." This limited data base included lake samples collected during the extraordinarily dry year of 2007. Falls Lake Draft Rules Comments 8 Page 5 There seems to be considerable uncertainty concerning the accuracy and reliability of the modeling which was completed in support of the rules development process, as supported by the concept of the need for a "re- examination" of the nutrient management strategy, which otherwise would not be needed. Such a re- evaluation is likely to be a good idea, as the true impact of Stage I of the draft rules is not known. It is hoped that any future "re- examination" of the nutrient management strategy includes outside experts and that it results in a more - accurate representation of the Falls Lake watershed. Thus, it seems logical to include a provision for examining the impact of the rules after they have been in place for some time, given the length of time that the draft rules are likely to impact the subwatershed, as well as the likely cost and the numerous uncertainties associated with the implementation of the rules. Ongoing evaluation and modeling of the lake appear to be worthy efforts, given what is involved in this effort and what is at stake. 6. It is extremely difficult to comment on the proposed existing development rules without knowing the details of the accounting tool which remains unavailable as of this writing. As a result, it is difficult to estimate the cost associated with implementing the existing development portions of the draft rules, but these costs are expected to be very significant. In an effort to quantify nutrient loading rates from existing development in advance of the availability of the future accounting tool, our staff has estimated impervious surface and land cover data from available high - resolution aerial photography. Nutrient loading rates were then calculated using the current methodologies which are in place for both the existing Neuse and Tar - Pamlico rules. Using the Neuse methodology, estimated nitrogen loading from developed lands within Orange County was only 1.46 pounds per acre per year (Ibs /ac /yr). Using the Tar - Pamlico methodology, estimated nitrogen loading was calculated to be only 1.30 Ibs /ac /yr and phosphorus loading was calculated to be 0.30 Ibs /ac /yr. These numbers clearly demonstrate that the existing watershed protection measures previously implemented by Orange County have significantly limited nutrient loading from developed lands within the county. In addition, these calculations also make evident that developed land within Orange County is already well below the baseline target for nitrogen included in Stage 1 of the draft rules (2.89 Ibs /ac /yr). The numbers calculated using the Neuse and Tar - Pamlico methodologies described above also further support point #1 in this document, the concept of using loading targets rather than a "one -size fits all" approach to achieve the proposed nutrient reductions. Otherwise, in order to meet the proposed reductions of 40% for nitrogen and 77% for phosphorus, Orange County would have to reduce loading rates from developed lands to 0.78 Ibs /ac /yr for nitrogen Falls Lake Draft Rules Comments 9 Page 6 and 0.07 Ibs /ac /yr for phosphorus. These potential loading rates equate to what would be considered "background" loading rates for this area (natural loading from undeveloped land). Other developed areas in the subwatershed with substantially higher loading rates will continue to contribute considerably higher loads of nitrogen and phosphorus to Falls Lake than development in Orange County contributes, even after loading has been reduced by 40% and 77 %, as proposed. In the absence of an accounting tool or a financial note for the draft rules, our staff also estimated the cost to reduced nutrient loading from developed lands within Orange County to the essentially "background" concentration levels as explained above. This was done by utilizing the established fee schedule to offset nitrogen loading which is utilized by the North Carolina Ecosystem Enhancement Program (EEP). The in -lieu fee to offset one pound of nitrogen under this program is currently $28.35 per year. Using the estimated loading rate for nitrogen listed above, Orange County would need to offset 0.52 Ibs /ac /yr (from an already very low background loading rate) in order to achieve the proposed 40% reduction. This equates to a reduction of 63,700 pounds of nitrogen at a cost of $1,800.000 annually. Furthermore, this cost only includes the needed nitrogen reduction from stormwater nutrient loading. The ultimate costs could be even higher, depending on the reductions in loading which could also be required from septic systems. Given these projected costs, and the regional scope of this issue, we believe that State funding should be made available to assist with this clean -up effort. Falls Lake nutrient management is a regional problem that cuts across many local governments and some state and federal facilities. In addition, the vast majority of costs associated with the Falls Lake rules could be borne by local governments that will not benefit from the nutrient reductions in Falls Lake. Local governments will also be required to implement, administer and enforce many of the provisions of the draft rules, and the costs of these activities will be significant and problematic for local governments, most of which are already in difficult financial situations at the current time. We certainly acknowledge that this same financial scenario exists for the State. 7. Finally, given the enormous potential ramifications of the proposed Rules, it would seem reasonable to conduct the Public Comment period beyond the summer recess months, as this would provide greater opportunity for our citizens and elected officials to provide input on these important regulations. This is similar to the situation that occurred in 2008 with the Jordan Lake rules. Unfortunately, it is extremely difficult for some citizens and elected officials to devote the time and effort necessary to this effort if the comment period occurs over the summer, when many people are on summer break or vacation or may be traveling and unavailable. Many local elected boards do not meet precisely during the proposed public comment period. A fuller and more robust dialogue Falls Lake Draft Rules Comments 10 Page 7 about the rules would likely occur by extension of the public comment period into September. In closing, we believe it is important to point out that Orange County is a headwaters county with many watersheds, such that the net result of the water quality regulations adopted and enforced by the County essentially protect and enhance the drinking water resources of our neighbors. Falls Lake, the Little River Reservoir, Lake Michie, Graham- Mebane Reservoir and Jordan Lake all benefit from the water protection regulations in place in Orange County. As a result of watershed standards which have been in place for some time in Orange County, the amount of impervious surface in water supply watersheds in the county is already less than 4 percent. It seems appropriate that local governments that have been longtime water quality stewards, and that have enacted effective regulations to protect the water quality of both their own and neighboring jurisdiction's water sources should be rewarded for these practices. Thank you for the opportunity to comment on the draft Falls Lake Rules. As always, Orange County remains dedicated to protecting water quality and is eager to implement fair and reasonable regulations directed at reducing nutrient loading to Falls Lake. If we can further assist with this process in any way, feel free to contact staff in our Department of Environment, Agriculture, Parks and Recreation, Planning or Health departments. Thank you for your consideration of these comments. Sincerely, Valerie P. Foushee Chair Orange County Board of Commissioners CC: Orange County Board of Commissioners Frank W. Clifton, County Manager Gwen Harvey, Assistant County Manager John Huisman, NCDWQ, Nonpoint Sources Planning Unit 11 Attachment for June 1 BOCC meeting EMC Requests for Public Comments on Certain Provisions of the Draft Falls Lake Nutrient Management Rules May 17, 2010 An updated set of draft Falls Lake Nutrient Management Strategy rules which includes requests by the EMC for comments regarding several important issues was received on Friday May 14th. This attachment summarizes these requests. • The EMC is asking for public comments on the idea of reducing Stage 1 to 7 years instead of the previously proposed 10 years. • The EMC is also including language seeking input on the idea of reviewing the results /progress of Stage 1 prior to setting the limits of Stage II. • The EMC is also asking for comments on the idea of developing regulations for "hobby farms ", which are not covered under the existing draft rules as they are not commercial enterprises. Should they include "large gardens" ( >1 acre) and dog kennels which have more than a certain number of dogs per square foot? And also, if any of these should be regulated, what should the regulations be? • And finally, the EMC is asking for comments on the idea of including land acquisition and conservation as an option for achieving nutrient reduction credits. A -1 Falls Lake Nutrient Management Strategy Development Process January 2010 EMC The Environmental Management Commission faces a tremendous challenge in the months ahead in developing nutrient rules to protect and restore Falls Lake. Nutrient management rules will be drafted by March 2010 with the goal of achieving unprecedented nutrient reductions in the watershed. This document provides background information, rule concepts currently being reviewed by stakeholders, a rulemaking timeline, and an outline of the strategy report that staff will provide the Commission in March. In 2005 the NC General Assembly passed SL 2005 -190 (5981), which includes a requirement for the Commission to adopt a nutrient strategy for Falls Lake. The 2009 regular session produced Senate Bill 1020, a bill devoted to water quality improvements in Falls Lake. This bill revises the EMC adoption deadline to January 15, 2011 and adds certain requirements aimed at water quality improvement in the watershed. The bill was ratified and signed into law on August 26, 2009. A stakeholder meeting process begun in late 2008 is now providing input on draft rule language and will meet to review revised draft rules on January 21, 2010. Staff plans to request EMC approval to take rules to public comment in March 2010. Lake Background: Following questions in 2004 over the condition of Falls Lake, DWQ began more intensive sampling for use support assessment. A Falls Lake Technical Advisory Committee (TAC) was formed in July 2005 to assist DWQ with the review and modification of the monitoring strategy and developing levels of confidence for decision making associated with the monitoring and lake modeling activities. The field study was completed in fall 2007. Based on water quality data collected between 2002 and 2006, Falls Lake was listed as impaired for chlorophyll a on the draft NC 2008 303(d) list. The portion of the lake above I -85 was also listed as impaired for turbidity. Stakeholder Process: A watershed and lake model were completed by DWQ staff in November 2008 and February 2009 respectively and presented to the TAC for their review. A stakeholder process conducted through a joint effort between the Triangle J Council of Governments (TJCOG) and DWQ began meeting in August 2008 to provide stakeholders an opportunity for input on development of a nutrient strategy for the lake. The stakeholder group has convened eight times over the past year. The group has gained an understanding of lake issues, modeling basics and results, and has begun to grapple with strategy design issues and options. Presentations and meeting summaries are posted to a Falls Lake stakeholder website hosted by TJCOG. An online discussion forum, known as a "wiki ", was also created to provide stakeholders an open forum to raise questions and exchange information between meetings. Stakeholder Subcommittee Meetings: The stakeholder group broke into four smaller subcommittees that held a total of twelve meetings between September 17th and December 7th , 2009 to work on detailed nutrient reduction rule ideas by source type and provide input on the fiscal impacts of the strategy between. In late November and early December draft rules addressing new development stormwater, existing development, agriculture, and point sources were provided to stakeholders for their review and review with comment. DWQ plans to reconvene the full stakeholder group on January 21 st to review revised drafts of the rules before 12 taking the package to the Environmental Management Commission for approval to go out to public comment in March 2010. Draft Nutrient Management Strategy Approach The following is an outline of the rule concepts that have been developed with input from the stakeholders and incorporated in draft rule text provided to the stakeholder subcommittees for review. Strategy Goal Meet chlorophyll -a standard lake -wide via reductions in nitrogen and phosphorus loading to surface waters by 30% and 70 %, respectively which equates to a 40% and 77% reduction from the 2006 baseline by all regulated sources. Staged Approach Given the large reduction needs, DWQ proposes an adaptive / staged approach: • Stage l: Initial reductions watershed -wide to ensure the chlorophyll -a standard is met in the lower lake. 10 years. • Stage 2: Additional reductions in upper watershed (above NC 50) to ultimately achieve the chl a standard lake -wide. Additional 15 years. • Stage 3: Additional reductions from existing development as needed and feasible up to 40% TN and 77% TP. Lake Water Quality Monitoring • Use support assessment every 2 years on Integrated Report cycle • Data window = 5 years preceding assessment • Example: 2016 -2020 data => 2021 assessment (for 2022 IR) Rule Stages by Source Type New Development Stormwater • Applies to all local governments • Achieve nutrient export rate targets: 2.2 lbs /ac /yr TN and 0.33 lbs /ac /yr TP o Based on 40% TN and 77% TP reductions from acreage weighted average export rate from buildable land in watershed Greatest reasonable level of nutrient control onsite, remaining achieved offsite Staged approach does not apply to New Development Rule Existing Development • Each local government achieves load reduction goals from existing developed lands • Stage 1 • Reduce existing development load to 2006 baseline levels • By 2021 (10 yrs) Stage 2 o Possible options: 2 rN 13 A -3 • Local government proposes compliance timeframe, plan shall meet explicit criteria; or • At least half of reductions by 2036 ( +15 yrs) before implementing a Stage 3 load reduction program Stage 3 o Local government proposes compliance timeframe to achieve the remainder of reductions up to the 40% TN and 77% TP goal, plan shall meet explicit criteria Point Sources Each nutrient - producing point source achieves reductions in load • Waste load allocations for large facilities ( >O.1 MGD) • Small facilities ( <O.1 MGD) implement O &M measures to get reductions Stage 1 • Mass allocations for large facilities in upper watershed based on 20% TN / 40% TP reductions using equivalent concentrations at current flow + 10% • Implement Biological Nutrient Removal (BNR) technologies at large package plants in lower watershed. • Achieve by 2016 (5 years) • Stage 2 • Mass allocations for large facilities in upper watershed based on 40% TN / 77% TP reductions using equivalent concentrations at full permitted flow • Achieve by 2031 ( +15 years) Agriculture • Stage 1 • Achieve collective N & P reduction goals of 20% TN and 40% TP • Residuals application uses RYE N rates and run, comply with PLAT • Achieve by 2021 (10 years) • Stage 2 (if Stage 1 goals achieved) • Achieve collective N & P reduction goals of 40% TN, 77% TP • Achieve by 2036 ( +15 years) • Stage 2 (if Stage 1 goals not achieved) • Buffer all cropland and buffers and exclusion on all pasture, and • Achieve collective N & P reduction goals of 40% TN, 77% TP • Achieve by 2036 ( +15 years) State and Federal Entities • Similar approach as used in Jordan requirements Nutrient Trading • Similar approach as used in Jordan to provide overarching open trading across all sources Buffer • No new rules - Existing Neuse Buffer Rules continue to apply 14 A -4 Next Steps in Rule Makinz Timeline m Final Stakeholder meeting to review draft rule text January 21, 2010 Submit Fiscal Analysis to OSBM January 31, 2010 (target) W C / EMC approval to take draft rules to public comment March 2010 Public comment period TBD Hearing Officers deliberate public comments TBD W C / EMC approval of final rules January 15, 2011 Falls Lake Rules go into effect as "temporary rules" February 1, 2011 Rules Review Commission reviews rule language I February 2011 - TBD Rules may o to N.C. General Assembly May 2012 TBD =To be determined based in large part on the fiscal note approval process. The note must be approved by the Office of State Budget Management before public hearings can be held. Falls Lake Nutrient Management Report The models developed and used in developing the strategy will be documented in a report that is currently under development. Staff plans to provide this document to the WQC and EMC in March 2010 in support of the draft rules that will be provided then. An outline of the report is provided below. I. Background a. Nutrient Problems i. Map of Violations ii. Graph of Historical Chl -a data b. TAC & Stakeholder Process II. Modeling & Model Application a. Two Models i. Serial vs. Parallel Approach ii. Data used by both models iii. Watershed Model loading estimates iv. Loads used by Lake Model b. Lake Model Scenario Run i. 2006 Baseline discussion ii. Use ofNEU13B as "compliance area" iii. Upper vs. Lower lake iv. Development of "The Curve" III. Decision on Strategy Development a. General Decisions i. Decision on use of 30/70 reduction combination ii. Process to adjust to 40/77 reduction iii. Stage 1 / Stage 2 discussion iv. Trading 4 15 A -5 v.T ransport factors b. Source - specific decisions made based on stakeholder input i. What we decided to do ii. What we decided not to do iii. Others Links to More Information Draft Falls Lake Rules littp: / /fall slakestakeholder .wikispaces.com/Draft +Ru les Senate Bill 1020 http: / /www.nclei,z. net / Sessions /2009 /Bills /Senate/PDF /Sl02Ov4 pdf Session Law 2005 -190 http: /hvww.ncle,.net/ Sessions /2005 /Bills /Senate /PDF /S981v5 pdf Falls Lake Stakeholder Website http://-vN,ww.fallslakestakeholder.org Falls Lake Stakeholder Online Wiki http:// fallsiakestakeholder .wikispaces.com Watershed Model Report http: //h2o.enr.state.nc.us /tmdl/ documents/ JuIY09DraftFallsLak-eWatershedModelReport pdf Lake Model Report http: / /h2o.enr. state. nc. us /tmdl/ documents /F`al]sLak-eDrafflReport8 full pdf 16 17 Orange County Agricultural Preservation Board TO: Board of County Commissioners FROM: Orange County Agricultural Preservation Board DATE: May 21, 2010 RE: Falls Lake Nutrient Management Strategy Draft Rules At its May 19th meeting, the Agricultural Preservation Board (APB) received a PowerPoint presentation on the Falls Lake Nutrient Management Strategy Draft Rules from Tom Davis and Gail Hughes (Department of Environment, Agriculture, Parks and Recreation). While the Board of County Commissioners (BOCC) is scheduled to hear a similar presentation on June 1 ", the focus of our presentation and subsequent discussion was the potential impact of the forthcoming state regulations on local farmers. The APB wishes to convey the following key points from its meeting to aid in the BOCC's discussion of the topic and to offer items of potential inclusion should the Board wish to prepare written remarks during the proposed regulation comment period. The nutrient management strategy outlines a two- staged approach to reduce the levels of nutrients entering Falls Lake by the year 2036: a 40% reduction of Nitrogen and a 77% reduction of Phosphorus measured against the baseline year of 2006. This is a substantial reduction, much more than what was required by the Jordan Lake Rules. Orange County farmers have been working steadily to reduce nutrient levels in the Neuse River Basin since the introduction of new watershed regulations in 2000. Using 2006 as the base line for data collection disregards local efforts to substantially reduce nutrient levels during 2000 -2006 Much of the data supporting the proposed rules appear to be based on modeling rather than actual sample testing from the Division of Water Quality (DWQ). The most nutrient heavy drainageways, as shown on Figure VI -1 of DWQ's materials, are in the vicinity of Ellerbe Creek in Durham. Reading through the proposed rules, Orange County residents, farmers and non farmers alike, are at risk of being held responsible for reducing nutrient levels that are occurring down stream. Will the proposed new rules be able to account for the specific locations within the watershed where nutrient levels are actually increasing? In other words, if input levels are reduced in Orange County but increase elsewhere downstream, will the proposed rules be able to balance the requirements? The APB recommends that regularsampling occur at the Eno River, Flat River and Little River at or near the point where these rivers flow out of Orange County and into Durham County. Furthermore, the proposed rules overlook the impact of fertilizers for residential lawns and garden care. Is there any data to account for the nutrient levels through residential storm water run -off? Most brands of grass seed and top soil sold at home improvement stores come prepackaged with fertilizer. The APB encourages the County begin a dialogue with our municipal and regional partners, local stores and local consumers to discuss the unintended 18 consequences of using these products The APB would welcome the opportunity to work with the Commission for the Environment to consider embarking on such an informational campaign. Considering these factors, the APB questions how much more the local agricultural sector can reduce nutrient levels? Soils in some areas of Orange County have high levels of Phosphorus, occurring naturally. It will be very difficult to demonstrate any reduction in these communities since farmers have reduced the use of Phosphorus as part of their fertilizer mix now. In addition, the proposed rules do not speak to organic farming practices, which are increasing in popularity in Orange County. The accounting tool should including references to organic practices where appropriate. Part of the APB's mission is to advise the BOCC on matters pertaining to local farming. It is our understanding that the BOCC may have an opportunity to submit comments on this program in the coming weeks. We hope you will consider incorporating our concerns into your broader remarks on potential impact of these regulations on all local residents. Thank you for the opportunity to submit comments on behalf of the agricultural community. If we may offer any additional information please let us know. 2