Loading...
HomeMy WebLinkAboutAgenda - 08-30-2011 - 1bORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: August 30, 2011 Action Agenda Item No. .~. ' b SUBJECT: Regional Nutrient Management Rules DEPARTMENT: Environment, Agriculture, PUBLfC HEARING: {Y/N) No Parks and Recreation (DEAPR), including Soi!-and Water Conservation District, Planning and Inspections ATTACHMENTS: (INFORMATION CONTACTS: 1. Falls Lake Watershed Map 2. Jordan Lake Watershed Map 3. Regional Nutrient Management Rules: Summary and Implications for Orange County 4. Estimated Costs of Stage 1 of Nutrient Management Rules -David Stancil, 245-2510 Craig Benedict, 245-2592 Thomas Davis, 245-2513 Terry Hackett, 245-2388 Gait Hughes, 245-2753 Kenny Ray, 245-2752 Todd Roberts, 245-2754 PURPOSE: To update the Board on recent developments concerning the State's Nutrient Management Rules for two regional watersheds which comprise much of Orange County's land area, including potential implications for the County. BACI4GROUND: The Falls Lake Nutrient Management Strategy (Falls Rules) became effective in January 2011. The goal of the Falls Rules is to reduce nutrient loading from the Falls Lake watershed such that Falls Lake complies with state water quality standards by 2041. The fiscal analysis prepared by the NC Division of Water Quality (DWQ) estimated the cost of compliance with these rules to be $1.5 billion, with the majority of the expense anticipated to be borne by local governments located- in the upper Falls Lake watershed. The Falls Lake watershed is primarily in the northern, central and east-central portions of Orange County and includes the Eno, Little River and Flat River watersheds in Orange County and comprises nearly half of the County land area (see Attachment 1). The Jordan Lake Nutrient Management Rules (Jordan Rules) were finalized in 2009. The total cost of complying with the Jordan Rules is estimated to be $750 million, with the majority of this cast again to be borne by local governments in the watershed. The goal of the Jordan Lake Rules is to "reduce nutrient over-enrichment in Jordan Lake and restore it to full use." The Jordan Lake watershed includes nearly half of the County land area and contains the portion of the Cape Fear River basin in southern and western Orange County, including Chapel Hill, Carrboro and the New Hope Creek, Morgan Creek (University Lake), Cane Creek, Haw Creek and Back Creek watersheds (see Attachment 2). Both sets of rules require lame reductions in the amounts of nitrogen and phosphorus entering -Falls and Jordan Lakes, nutrlent-loading- which modeling shows to be mainly from wastewater treatment plants, agriculture, State- and Federal facilities, and existing and future development activities. Attachment 3 is a summary of the Falls Lake and Jordan Lake Nutrient Management Rules, with discussion of some of the potential implications for Orange County. Attachment 4 is a summary of estimated costs for Orange County and additional affECted parties to comply wi#h Stage 1 of both- Nutrient Management Rules. Given the cost for all parties to comply with these rules, in addition to questions regarding the modeling that was used to justify- the nutrient reduction goals, the -pursuit of additional information geared at modifying Stage II of the Falls Lake Rules, the -state of the economy in North Carolina and elsewhere, and recent shifts in State-level environmental regulations in North Carolina, the long-term outlook for full implementation of these specific sets of rules may be questionable. Nevertheless, the Rules as written have serious implications for the County. fINANCIAL IMPACT: The-impact of the Falls Lake and Jordan Lake Nutrient Management Rules on the urbanized areas of both watersheds could be very significant. -The-projected total cost of implementation of the rules is $1.5 billion for- Falls Lake and $750 million for Jordan Lake. It is expected that mare-urban jurisdictions, with structural stormwater systems and more built environment, and jurisdictions with wastewater treatment plants, may bear the bulk of these costs. Less developed areas, such as the rural portions of Orange County, will be impacted to a lesser degree. Nevertheless, even in rural Orange County, agricultural operations and developers could face significant costs to comply with both sets of rules as discussed in the attachment. County stormwater and Soil and Water Conservation staff are also likely to experience significant increases in work loads as a result of these rules. Environmental Health staff are required by these rules to complete an inventory of septic tanks in the Fails Lake watershed and document their functionality. Modeling completed by DWQ indicated that septic tanks may be a significant source of nutrients to Falls Lake; however, this has been disputed by health professionals at the state and local level. More stringent design and setback regulations in the Orange County septic system rules and the relatively small number of state permitted sand filter systems, which are monitored by the County, could minimize the impact of these systems on surface waters. Nevertheless, larger setbacks, system upgrades, monitoring, and regular maintenance could be required in the future. Homeowners could face additional costs related to home construction as a result of these nutrient management rules, including upgrades to septic systems, and professionally prepared site plans 'and stormwater calculations. RECOMMENDATION(S): The Manager .recommends that the Board consider and discuss the information presented. PERSON C~"~LL i~o~i ~ ~4 ~ ~ ' c A ~ .` rwf 111 ~ /~ ~Rp,~~E -~ ~~ ,: ~I~%r.~i~ q 7 a~-~7 °a ~~ r ,~,~tt.kitdan~es°rw°r RANaOts'~ f. ``'` , ~ Id=235275 w~ s~+ ~urat~j~ ~~ ylrc-P~'~~ 2~ ~ ,obb 1_c02~'6f'g0a0b&gro ,fir sum ~ ,~,er pro~~` cu'rre~ _5~8b2001'Sd'19-4C8b wit _.~ :1ord~ ~,,,,~ar _ . ~„ot file? u~ld ~~ ,~ . +~- ~n A. 8 $~ i _------" wwsE~° t G~~~ ~ ti M 1 _L-- 1 1 1 1 t 1 i 1 V 1 i 1 1 F( ~!^~ ;,.9 •a 1 1 I 1 , , , , , ~~ , CRAN,GE w~~xed gsils~ 5 ~~, Bow' , ~unieipelitiea Fau Ms-'~`~°aent ~~ ~~P4eTFalls ~~~d Tshed ' yowetF~~ ', gytic+~ Vyt Sv-Pp°rt /"~..~ S~,,pot~ ~', /'~.~ Imps'ted d~~ILL~ ~-~ ~o~ata ~', VP~~ , , , , , z __, ,~ , ;_ . .~4ba9-9d85-g873~ ~uuid-4~a2c80_514f ..._-„n,~aet file . ..-- 8~~ 60dc&grOUpld 3836 1b Regional Nutrient Management Rules: Summary and Implications fox Orange County August 2011 I. Executive Summary Local governments upstream of Jordan and Falls Lakes are faced with new State requirements for significan_#ly reducing nutrient loading to these important drinking-water reservoirs. As a result, activities that have been identified by the NC Division of Water Quality (DWQ) to cause nutrient-loading. are required to reduce their nutrient loading. O-range County~vill be required to achieve nutrient reductions from agricultural operations and from stormwater emanating from existing and new development. Since the County does-not open-ate a wastewater treatment plant, nutrient reduction rules related to this do not apply to the County -but will apply for the Town of Hitlsborough and OWASA, which have treatment plants in Orange County. Many uncertainties -r-emain regarding the implementation of the -adopted rules, and as a result, there are also numerous questions concerning the impacts of the rules. Despite-these unknowns, it is certain that development and agricultural practices in the County wi11 be affected by these rules. Agricultural operations will be required to create buffer zones and instal.I-exclusion fencing along streams. New development will be forced to meet strict stormwater runoff targets. Depending-on the outcome of nutrient loading calculations that cannot be completed at this time, stormwater- from existing development in both watersheds -may require the installation of retrofits. The majority of the costs for complying with these rules will be borne by local governments, with additional financial impacts to developers and the agricultural community. Loading from malfunctioning septic systems must also-be addressed-possibly impacting private homeowners. The new stormwater rules also appear to have implications for the County's Economic Development Districts, all of which are in the Falls -Lake watershed, which will be subject to the strictest runoff requirements in Orange County. Finally,the nutrient management rules discussed herein are likely to have considerable impact on the work load for County staff involved with stormwater control and soil and water conservation. 11. Introduction The recent development of nutrient management rules for two drinking water reservoirs in the Research Triangle Area is projected to have significant impacts on local governments in the region. The Jordan Water Supply Nutrient Strategy (often referred to as the "Jordan Rules") became effective August 11, 2009 as a result of repeated water quality (chlorophyll-a and pH) violations in B. Everett Jordan Reservoir (Jordan Lake). The Falls Lake Water Supply Nutrient Strategy (the "Falls Rules") became effective January 15, 2011 as a result of repeated water quality (chlorophyll-a and Regional Nutrient Management Rules 6 August 2011 turbidity) violations in Falls Lake. Each-set of nutrient management rules requires enormous reductions in the quantities of total nitrogen (N) and-total phosphorus (P), together referred to as nutrients, reaching Falls and Jordan Lakes. Figure 1 illustrates the Jordan Lake watershed while Figure 2 depicts the Falls Lake watershed.. Orange County is nearly equally split between the Falls and Jordan take watersheds, with a small portion in the northwest corner of the county located in the Roanoke River basin. Both sets of nutrient management rules require nutrient reductions from: • Existing development • New development • Agriculture • Wastewater treatment plants • St-ate and Federal facilities, including the NC Department of Transportation This document lists-the requirements for each set of nutrient management rules and details some-of the anticipated implications for Orange County=associated with the implementation of the rules. 111. Purpose and Scope A. Requirements The Jordan Rules (http://portal.ncdenr.org/web/jordanlake/7) were established to reduce the amount of nutrients reaching Jordan Lake. The Jordan Rules divide the Jordan Lake watershed into three main "arms" (Figure 1). Different nutrient reductions are required within-the sub-watersheds associated with each arm of the lake in comparison to the baseline years of 1997-2001, as follows: • Upper New Hope arm (Carrboro, Chapel Hill and New Hope Creek area) must reduce N loading to Jordan Lake by 35 percent and P loading by 5 percent. • Haw River arm (Mebane and Cane Creek area) must reduce N loading to Jordan Lake by 8 percent and P loading by 5 percent. • Lower New Hope arm- (Cary and Morrisville area) must maintain N and P loading at their current levels. Most of the Jordan Rules require reductions to be met within nine years or less, with the exception of the Existing Development rules, which require local governments to propose timelines for meeting the required nutrient reductions. The Falls Rules (http://portal.ncdenr.org/web/wg/ps/nps/fallslake) require the "attainment of nutrient-related water quality standards in Falls Lake by 2041" through reductions in nutrient loading reaching the lake of 40% N and 77% P as measured against a 2006 baseline. Staged (adaptive) implementation of the Falls Rules requires: Regional Nutrient Management Rules 7 August 2011 • Stage I (2011 - 2021) nutrient reduction measures (20% N and 40% P) must be implemented-throughout the entire Falls Lake watershed. • Stage If (2021 - 201) additional nutrient reduction measures (total reductions of 40% N and 77% P) are required in the Upper Falls Lake watershed (upstream of NC Highway 50 in Wake-and Granville counties, which includes Orange County). The Jordan Rules require DWQ to: • Monitor water quality in Jordan Lake and report the initial results of.this monitoring in March 2014. Subseq-cent reports shall be issued every three years until the lake is no longer impaired by nutrients. • Evaluate the effectivene-ss of the ,tordan Rules after at least 10 years-and periodically thereafter. The Falls Rules require DWQ to: • Monitor water quality in Falls Lake to estimate reductions in nutrient -loading reaching the Lake. •- Report to the Environmental Management Commission (EMC) in 2016 and then every five years regarding the progress of the Rules, as well as: o The results of any studies- documenting instream nutrient loading changes due to implementation of the Rules o Results of additional studies evaluating nutrient loading from septic systems and discharging sand filters o Information concerning atmospheric deposition of N and additional related topics The requirements for DWQ to evaluate additional infor-mation reflect some of the perceived shortcomings and related uncertainties with the information used in the modeling performed during the development of the Falls Rules. In 2025, DWQ must also provide a report to the EMC providing additional information concerning the status of Falls Lake as well as the "feasibility of achieving the Stage II objective; and the estimated costs and benefits of achieving -the Stage II objective." At that time, the Rules also require the EMC "to consult with and consider information submitted by local governments and other persons with an interest in Falls Reservoir." The EMC must evaluate the information it obtains and determine if changes to the Stage If Rules are warranted. B. Implications The fiscal analysis prepared by the Planning Section of DWQ estimated the total cost to comply with the Jordan -Rules to be more than $750 million in 2007 dollars, with most of this cost borne by local governments. The most significant costs to area local governments are forecast to be associated with the stormwater rules for existing Regional Nutrient Management Rules $ August 2011 development as well as the necessary upgrades to the wastewater treatment plants in the watershed. The wastewater rules will not involve Orange County. The fiscal analysis prepared by the Planning Section of DWQ estimated the total cost to comply with the-Falls Rules to be more than $1.5 billion in 2010 dollars, with most of this cost borne by Focal-governments in the Upper Ideuse watershed. The most significant costs are forecast to be associated with the Stormwater rules for existing development, as well as for the upgrades to wastewater treatment plants that will be required. Given the projected-total cost for compliance with the Falls Rules, there is interest from -local governments within the watershed in modifying the Rules.. The Upper Neuse River Basin Association {UNRBA); of which Orange County is-a member, is preparing to build on the regional consensus achieved during the development of the Falls Lake Consensus Principles {previously ad-opted by Orange County and others) and pursue a strategy intended to consider possible revisTOns to the .Falls Lake Rules. Currently, the UNRBA is working to select an environmental consultant of national stature to conduct an evaluation of the Falls Lake Nutrient 1Vlanagement Strategy and associated water quality legislation. This evaluation, which is intended to determine options for changing the existing Falls Lake-RuleS, is likely to take several years, involve the collection of a considerable amount of water quality information, and require a substantial amount of money to complete. ~if successful, this process would likely result in a reduction of the currently mandated nutrient reductions listed above. Possible means of achieving this outcome could include revising the nutrient based water quality standards for Falls Lake, completing a Use Attainability Analysis for the lake, developing site specific water quality standards for the lake, or possibly pursuing a variance from water quality standards for the lake. This evaluation of the lake and regulatory options is also likely to determine nutrient loading to Falls Lake from each jurisdiction in the Upper watershed. Individual sections of both sets of nutrient management rules are discussed in more detail below. IV. Existing Development Stormwater A. Jordan Lake Stage I Requirements As required, in 2009 Orange County submitted a Stage (Existing-Development Stormwater Program to DWQ that included the following elements: • A public education program • A program to map stormwater outfalls, municipal separate stormwater systems, and waters of the US • An illegal discharge detection and elimination program Regional Nutrient Management Rules 9 August 2011 • A program to identify existing development retrofit opportunities • A program to ensure stormwater best management practices (BMPs) maintenance The program elements listed above are similar to those that are already being implemented in those areas of Orange County included in the Neuse Basin. stormwater program. The County's Jordan Lake Stage I program was submitted to DWQ in 2009, approved by the EMC and implementation by the County began in August 2010... Annual reports documenting implementation of this program must be submitted to DWQ. The first such report was_submitted to-DWQ in August 2011. B. Falls Lake Stage F Requirements All local governments with land in the Falls Lake Watersh-ed must implement a Stage Load Reduction Program by 2fl14. This program must include plans for reducing nutrient. loading increases from lands that were. developed. after the. baseline of 2006 and before the implementation of the New Development stormwater rules in 2012 as cutlinect below. The required nutrient loading. reductions must be accomplished -by 2020 and are calculated as the difference between the nutrient loading from a parcel "_praor to development" and-the current ("developed") nutrient loading rate. Stage I (and II) Load Reduction Programs must: • "$egin and continuously implement a program to reduce loading from discharging sand filters and malfunctioning septic systems" • "Begin and continuously implement a program to reduce nutrient loading into the waters of the State" To facilitate development of the initial Load Reduction Program, by January 2013 Orange County--must "develop inventories and characterize load reduction potential" from: • wastewater collection systems • discharging sand filter systems • properly functioning. and malfunctioning septic sys#ems + restoration opportunities in utility corridors • fertilizer managementplansfnr local government owned lands • structural stormwater practices, including the potential for greater nutrien# control • wetland and riparian buffers Nutrient loading from onsite wastewater systems must be factored into the total loading from existing development. The Load Reduction Program is also required to include information regarding how a local government plans to reduce loading from existing development, as well as a timetable detailing the progress that will be made. DWQ will review submitted Load Reduction Programs and forward them to the EMC for approval Regional Nutrient Management Rules ~ ~ August 2011 C. Jordan Lake Stage I tmplications The Stage I Existing Development Stormwater Program prepared and submitted by Orange County has been approved by the EMC and implementation by the County began_August 2010. Staff estimates that full implementation of the Stage I Existing Development Stormwater Program wial require approximately 1-,200 man hours annually. As a result, staff is evaluating the feasibility of the County rejoining the Clean Water Education Partnership (CWEP). CWE.P members obtain credit toward at least a portion ofi the public education program required by the Jordan Rules. D. -FaNs Lake S-cage i-Implications Local governments will use the information listed above to deter-mine the 2006 baseline nutrientloading levels in-addition to the amount of current loading. The difference between the two levels will determine the amount of nutrient reduction that must be achieved during Stage I of the-Rules (by 2020). Alternatively, DWQ provides -local governments the option- of assuming uniform pre-development-loading rates of 2.89 Ibs/acre/yr N and 0:63 Ibs/acre/yr P for existing developed lands. If the analysis of existing developed lands in the watershed, which must be completed by County staff, demonstrates that the averages concentration-of nutrients in the runoff generated by developed lands in the County is less than these threshold- values, the-County well have met the Stage I reduction goal for existing developed lands. Initial estimates completed by staff indicate that the County- may be below these threshold values. However, final calculation of these values will not be possible until the North Carolina Nutrient Scientific Advisory Board issues the necessary accounting took for Falls Lake. This Board has already developed a separate accounting tool for calculating nutrient concentrations in runoff from new development. Until loading rates from existing developed lands can be determined, it is not possible to estimate the potential cost for complying with these regulations_ At this time, it is known that County staff hours will be needed to collect and analyze the required data. Staff will also have to develop recommendations for meeting the required nutrient-reductions, possibly through the installation of stormwater retrofits. A survey of failing acrd operating septic systems must also be undertaken by staff for the portion of the County in the Falls Lake watershed. E. Jordan Lake Stage II Requirements If the Existing Development measures implemented in Stage I do not reduce water quality violations in each arm of Jordan Lake adequately, then Stage II Existing Development Programs must. be developed according to the following schedule: • If the water quality monitoring indicates continued impairment of the Upper New Hope arm in the March 2014 report, then upstream communities, including Orange County, must prepare a Stage II Existing Development Stormwater Program. If needed, the Stage II Program for the Upper New Hope Creek sub- Regional Nutrient Management Ru-les 1 1 August 2011 watershed must be developed by September 2014 and implemen#ed by Au-gust 20-15. If the-March 201-8 report for the Haw River arm indicates continued impairment in t-his arm of the reserv~'rr, then. Orange ~ountymust develop a Stage If Existing Development Stormwater Prograan for this sub-watershed_ This Program- would need to be developed by September 2018 a-nd implemented by August 2019. The most recent data-collected-from within Jordan Lake is available in the 2010-DWQ water quality monitoring report-for Jordan Lake. This data documents significant water quality violations at aN three of the lake sampling locations in the Upper New Hope- arm of the lake, and lesser violations atone- of the three sampling locations in the Haw River arm of Jordan Lake. The ultimate goal of any required ~5tage II Existing Development Program for Jordan Lake wilfbe to achieve N reductions of 8 percent and P reductions of 5 percent fr-om existing-developed lands relative to the baseline values determined from existing development in 1997-2001. More-significantly, if the March-2023- DWQ monitoring report indicates that the Upper New Hope Ar-m continues to violate water quality standards, then Stage II Programs in this sub-watershed must be modified to achieve N reductions of 35 percent. F. Falls Lake Stage II Requirements Each local government located in the Upper Falls Lake watershed must develop a Stage II Existing Development Load-Reduction Program to be submitted in-2021 and then be updated every 5 years until the required-reductions in loading of 40% for N and 77% for P axe reached. If the Stage I nutrient reduction goal is met by a local government, then further nutrient reductions in Stage II must be achieved annually from existing development which are greater than or equal to the average annual reductions achieved in the last seven years of Stage I, or "provide for an annual expenditure that equals or exceeds the average annual amount the local government has spent to achieve nutrient reductions from existing development during the last seven years of Stage I." If the Stage. I goal were not met, then the local government's initial Stage II program must either achieve annual nutrient reductions from existing development greater than or equal to average annual additional reductions achieved in the highest three years of Stage I implementation, or provide for an annual expenditure that equals or exceeds the average annual amount the local government has spent to achieve nutrient reductions from existing development during the highest three years of implementation of Stage I. Regional Nutrient Management Rules 12 August 2011 A timetable for complying- with the nutrient reduction goals of 40% Nred-action and 77% P reduction must be proposed by each- local government for approvaC by-DWQ. Annual progress reports must be submitted to DWQ. G. _,1or-dan Lake Stage II Implications The ramifications of failing to meet the Stage I Existing Development rule are difficult to predict at this point in time. Expensive stormwater retrofits of existing -developed lands may be needed to meet the required reduction goals. Given the larger reductions mandated in the Upper- New Hope sub-watershed than in the Haw River sub-watershed, it seems logical that the use of retrofits is more lik-ely to occur in the Upper"New Hope sub-watershed than in the Haw River sub-watershed- The completion of retrofits could be financed by the-establishment~f a stormwater utility fee, similar to what many urbanized areas (including-Chapel Hill-and Durham) have-been collecting for some time for this very purpose. H: Falls- Lake Stage II Implicattions The implications of failing to meet the Stage 11 Existing Development target in the Falls Lake watershed are similar to those spelled out in the Jordan Lake section above. Given the much fiarger reductions that are required in the Falls Lake watershed; it sums even more likely that expensive retrofits will be needed in the Falls Lake watershed to meet the required nutrient reductions from existing development. IV. view Deveiopmen# stormwater The stormwater requirements fornew development in both Jordan -Lake and Falls Lake are similar in scope. Local governments must revise their stormwater ordinances to meet: the requirements and submit this information to DWQ for approval. In anticipation of the Falls Lake and Jordan Lake requirements, the stormwater regulations from Orange County's Neuse basin rules as well as the water supply watershed- rules were combined into a single section of the recently adopted Unified Development Ordinance (UDO). This was partially done to facilitate updating stormwater requirements for the Falls Lake and Jordan Lake Rules. Orange County will maintain one set of stormwater regulations in the UDO but will enforce somewhat different stormwater requirements applicable for each watershed. Orange Count submitted a draft Falls Lake new development program to DWQ prior to the August 10t deadline. The draft Jordan Lake new development program must be submitted to DWQ by September 10, 2011. Once DWQ approves these- drafts, Orange County will then have 6 months to update the ordinance. An estimated schedule was included with the program submittals. The ordinance approval process will include public hearings and BOCC review. Draft program documents were not previously provided to the BOCC since DWQ may revise the earlier submittals. Following DWQ Regional Nutrient Management Rules 13 August 201.1 review and BOCG approval, staff estimates the new stormwater requirements may become effective in July 2D12. A. Jordan L-ake Requirements The primary new development requirement concerns the control of nutrients in stormwater runoff. stormwater control, and as a result a reduction.-in the ~oracentration of nutrients- leaving the site, is accomplished through the construction of stormwater BMPs, such as bioretention devices or stormwater wetlands. Currently, BMPs are required on some development projects in Orange County-. Table 1 and Figure 3 compare the nutrient loading r-equirernents and disturbance threshold values for the Falls Lake watershed and each of the Jordan Lake sub-watersi~eds, as included in the nutrient management ales. Staff is proposing tv enforce the different loading targets and disturbance thresholds fog eaach of the different sub-watersheds as shown in the table. Table 1. Comparison of Falls Lake and- Jordan Lake New Development stormwater Rules iVitrogen Phosphorus Disturbance Watershed Loading-Target Loading Target Threshold (Ibs/ac/yr) (Ibs/ac/yr) Upper New Hope 2 2 0 82 Comm./Indus. - 0.5 acre Arm of Jordan Lake Residential - 1 acre Haw R-fiver Arm of 3 B 43 1 Comm./Indusr- 0.5 acre Jordan Lake . Residential - 1 acre Entire Falls Lake 2 2 33 0 Comm./Indus. -12,000 sq ft Watershed . Residential - 0.5 acre In addition to the nutrient loading restrictions, new development must adhere to the following additional stormwater s#andards: • No net increase in peak flow leaving the site for the 1-year, 24-hour storm-event, when compared to predevelopment conditions. • Must aaso control the first inch of stormwater runoff. Alternatively, proposed new development may satisfy the requirements by meeting the post-development hydrologic criteria included in Chapter 2 of the most recent version of the North Carolina Low Impact Development Guidebook. The Jordan Rules also allow developers to meet a portion of their nutrient reductions off-site, once a minimum specified reduction is met on-site. For residential development, the project must be designed such that runoff leaving the site does not exceed 4 Ibs/acre/year N prior to using off-site offset sources to meet the remaining Regional Nutrient Management Rules 14 August 2011 nutrient reduction requirements, while other development, such as industrial/ commercial, must meet the targEt of 8 Ibslacre/year N on-site prPOr to using off-site sources to meet the remaining nutrient reductions. The Jordan Lake new_development rules also require the development of a stormwater BMP operation and maintenance program to ensure long-term effectiveness o~ BMPs. A BMP inspection program must also be adopted by local governments. B. Falls Lake Requirements As shown in Table 1 above, the Falls Lake -new development stormwater requirements -are -more restrictive than those in the Jordan Rules. Both the nutrient bading rates and the threshold values included in the -Falls-Rules are-lower than the similar-val-ues included in the Jordan Rules. The-Falls-Rules also require control of the first inch- of stormwater runoff and no difference in pre- or post-development peak flow is allowed. The requirements for off-site nutrient offsets in the Falls Rules are also more restrictive than those included-in the Jordan R-ales. Under the Falls Rules, new development projects less than one acre in size must include at least 30% of needed nutrient reduction on-site while larger projects must include at least ~0% of the needed nutrient reduction on-site. The remaining nutrient-reductions can be achieved in the form of -off- site buy down credits. C. New Deveiopmerrt Implications The Jordan Lake New Development stormwater Program is-under development by staff and will be submitted to DVa/Q in September 2011 as required. As described above, the County intends to enforce sub-watershed-specific stormwater loading rates and development thresholds rather than adopting one uniform set of values for the entire County. Since most development in Orange County within the Jordan Lake watershed is residential and stormwater regula#ions require one acre of disturbance before they apply, it is expected that most new single-lot residential development will not be subject to the new development stormwater rules and as a result not need to develop a stormwater management plan. In the Haw River sub-watershed of Jordan Lake, the nutrient loading targets for- new development are high enough that most new development should be able to meet stormwater runoff targets though current Orange County open space requirements. However, staff- is estimating that some new development in the Upper New Hope arm of Jordan Lake that does meet the County's current impervious surface limits may not be able to avoid the use of engineered stormwater controls to meet the new stormwater targets. Since the runoff targets and disturbance thresholds are strictest in the Falls Lake watershed, most new development, including single family residences, in this watershed is likely to need stormwater BMPs to meet the nutrient requirements. Regional Nutrient Management Rules ~ 5 August 2011 When engineered BMPs are installed, County erosion control/stormwater staff will be required to inspect them periodically and document that they are operating as designed. Lower nutrient loading threshold values will make it more difficult for some proposed development projects to meet the stormwater requirements solely through the preservation of open-space. Staff will also be requi-red to review more stormwater control plans during the-development review process than -previously. The biggest single difference between the Jordan Lake and- the _Fai1s Lake new development rules is the applicability thresholds, as shown in Table 1. -Residential development in the Falls Lake watershed that disturbs just one-half acre or -more will be required to submit a site plan, stormwater runoff calculations and possibly a stormwater management plan. The Jordan Rules require similar efforts for residential- development thatdisturbs more than one acre of iand_ Since much-of the County is platted far large lot residential development, construction of-new single family residences anywhere m the County is likely to have to comply with the applicable stormwater rules and staff will have to devote time to reviewing more stormwater management documents and inspecting BMPs. Finally, i± is expected that the Falls Rules may impact the three designated Economi-c Development Districts (EDDs) in Orange County. The Eno, Hillsborough and Buckhorn EDDs are all located in the Falls Lake watershed. Further development in these areas will require strict stormwater controls. Planning staff has already begun working to identify areas in each EDD that may be utilized as-regional stormwater solutions under the new development requirements. County stormwater staff have had discussions with DWQ personnel in an effort to determine if regional stormwater management may meet the definition of "on-site" stormwater treatment. Off-site stormwater credits may also be needed- for further development of the EDDs. The Falls Rules require that all off-site nutrient offsets be located in the Falls Lake watershed. Currently, no such offset locations have been identified or established. -County-staff is also working to identify sui#able locatians for off-site stormwater projects. V. Agriculture A. Jordan Lake Requirements Stage I of the Jordan Rules relies on voluntary measures to reduce nutrient loading from agricultural lands, rather than requiring specific actions by individuals or. operations. Agriculture, for the purposes of this Rule, and the Falls Rules, is defined as: • The commercial production of crops and horticultural products other than trees • Research activities in support of commercial- production • Production or management of livestock in excess of certain threshold numbers: 5 or more horses 20 or more cattle Regional Nutrient Management Rules 16 August 2011 ^ 20 or more swine, not kept in a feedlot, or ^ 150 or more swine kept in a feedlot ^ 120 or more sheep ^ 130 or mote goats- ^ 6-50 or more turkeys ^ 3,500 or more-chickens ^ Any single species, or any combination of species, of livestock or poultry that exceeds 20,000 five pourds of live weight at any time. The Jordan Rules established a Watershed Oversight Committee (WOC). By 2012, the WOC is tasked with determining the ex#ent to which the N-contribution from agriculture has been reduced since-the baseline years of 1997-2001 through the implementation of various BMPs. If this nutrient reduction goad-(35~percent N-for Upper New Hope arm and 8 percent_ N fior Haw River arm) is not reachEd, then a Local Advisory Committee (LACE must be formed in each-county for each sub-watershed not meeting its goal -and all- agricultural operations are required to register_their farm with the LAC. In addition, each LAC wiN be given the task of "developing local strategies to guide irriplementation." Beginning in 2012, the LAC would also be-required to also start registering agricultural operations in-the watershed. By 201-5, the EMC will require additional -BMPs in watersheds that have not reached their N reduction targets as-well as their P reduction targets (5 percent for both the Upper New Hope and Haw River arms). Br Jordan Lake Implications The Jordan Lake WOC continues to work on figuring out the practical issues of how to actually implement the rules. The WOC submitted an accoLnting tool that was approved by the EMC's Water Quality Committee. Staff must now begin collecting information and determining the baseline n-utrient loading ftom each watershed. Using the information that will be submitted by-staff, in 2012 the WOC will announce which watersheds, if any, have not met their nutrient reduction goals. The WOC is also working to determine how much nutrient reduction credit will be gained for BMPs used in an agricultural setting. Registration of farm operations may also be required. If registration is required, staff is presently unsure how-all types of .agricultural operations (as defined in the rules) would be identified so that this requirement could be completed. Significant nutrient reductions are required from the Upper New Hope Creek sub-watershed, yet limited agricultural operations remain in this sub-watershed. Compliance with the needed nutrient reductions from the few remaining operations in this watershed may be difficult. In addition, information presented by DWQ at a recent WOC meeting seems to indicate that the additional buffers that could be required in the Jordan Rules may not produce the required nutrient reductions in the Upper New Hope Creek sub-watershed. Regional Nutrient Management Rules 17 August 2011 C. Falls Lake Stage ~ Requirements T ire definition of agriculture under the Falls Rules is the same as under the Jordan Rules. During Stage I of the Falls Rules, all affected persons are- required to register their operations with their-Local Advisory Committee (LA~)_ by January-2012. Currently, staff is working to contact producers to inform them of the need to register with the NC Division of Soil and- Water Conservation by the January 2012 deadline. _ Agriculture must collectively reduce N loading by 20% and P loading by 40% from their lands during Stage t of the Falls Rules (bv 2D2~). Similarly to the Jordan Rules, Stage I- of the Falls Rules relies on voluntary measures-to reduce nutrient loading from agricultural lands, rather than requiring specific actions by individuals or operations. The Watershed Oversight Committee (1fVOC) and-Local Advisory Committee (LACE are tasked with working cooperatively to implement the-rules in- each county. By January 2013 the WOC must determine the extent to which= agricultural oper-ations have achieved the N and P goals as a result of activities completed-since the 2006 baseline year. The WOC must also develop a nutrient accounting methodology. D. Falls Lake Stage I Implications Staff is uncertain how to identify and contact ali of the_agricultural operations as defined in the Rules. Registratizm of alt operations is also likely to be problematic, given that there is no apparent penalty involved, and the expected reluctance of individuals-to register as a result of the earlier registration that was required under the Neuse Basin rules in 1993. Many farmers and other individuals arm greatly concerned that the Stage I nutrient reduction goals will not be attainable in the Falis Lake watershed. The agricultural community was successful in meeting- the nutrient reductions that were required as a result of the earlier-Neuse Basin rules. The additional- nutrient reductions required by the Falls Rules will necessitate the completion of additional buffer zones and exclusion fencing, further reducing the amount of land available foragricultural production. The expected reluctance of some of the agricultural community to register under these rules may also- reduce the potential for meeting the Stage I goal. E. Falls Lake Stage II Requirements If the reduction goals required in Stage I of the Falls Rules are not met voluntarily by 2021-,_then the LAC in each county will be given the task of developing local strategies to guide uniform individual implementation of a minimum 20-foot vegetated riparian buffer on cropland and vegetated livestock exclusion buffers in pastures. by 2036. Regardless or whether the Stage I reduction goals are met, which seems unlikely, the Stage II requirements remain unchanged. Ultimately, agriculture must meet the Stage II goal of reductions of 40% N and 77% P loading by 2036. Regional Nutrient Management Rules 1 $ August 2011 F. Falls Lake Stage II Implications The nutrient reductions required from agriculture under the Falls Rules are historic in scope, massive and larger than- any that have occurred in any watershed in North Carolina. These reductions are being mandated shortly after similar, smaller reductions were reached under the previous Neuse Rules_ As a result of applied research, some soil scientists in the state have- stated that it will not be possible to -meet the reductions required by the Fafls Rules. Agriculture in Orange County is likely to be greatly impacted by the Falls Rules. The requirements for larger buffers will reduce the amount~of productive land available. Producers that rent land for- pasture -or cropland may be unwilling to make the investments needed to comply with these rules on land-that they do not own. Much of the agricultural land in Orange County in the Falls watershed is currently owned by older or absentee landowners; individuals who-may be unable or unwilling t~ invest in the-BMP_s needed to meet the goals of the Rules. Cost-share funds from State and Federal agencies: have historically been available to assist farmers with the installation of BMPs such as those needed to meet the goals of the Falls Rules. Unfortunately, these funding sources have been greatly reduced over- the past few years, and the outlook for an increase in funding does not appear to be positive. Even if sufficient-cost share funds become available to assist farmers with the. improvements that are needed to meet the reduction goals, landowners will remain responsible for approximately 25 percent of the-cost of each BMP implemented through these programs. This is likely to represent an additional financial burden on an agricultural community that is already financially stressed. The end result of the Falls Rules could be the loss of productive agricultural lands and operations, and ultimately the transfer of these lands to non-agricultural purposes, including development. VI. Nutrient Offsets and Trading According to the DWQ Web site: Rules provide for the use of nutrient offset payments in the Neuse and Tar-Pamlico basins along with the Falls and Jordan watersheds as an option to meet nutrient reduction requirements for new development and redevelopment. While rules vary by watershed, they allow developers not meeting the nutrient requirements on their site to have the option of offsetting nutrient loading through payment to a third-party mitigation provider such as the Ecosystem Enhancement Program (EEP) or a compensatory mitigation bank to "buy down" their nutrient loads to where they meet targets for nutrient export. When developers choose the nutrient offset option, payments are used to transfer the responsibility for offsetting increases in nutrient load from the Regional Nutrient Management Rules 1 9 August 2011 developer to EEP or other third party provider. These payments are then used to fund implementation a#nutrient-reducing projects in the same hydrologic area as where the impact occurred. Third party nutrient offset providers, in turn, report compliance with- regulatory requirements in annual reports and as requested to DWQ. The nutrient offset option, therefore, allows development projects not meeting on-site treatment thresholds to proceed under the assurance that associated increases in nutrient loads will be at least equally offset by nutrient reducing activities elsewhere in the_watershecL Examples of "nutrient reducing activities" include stream restoration, stream buffer establishment or re-planting, and the installation- of livestock exclusi-on fencing. A. Jordan Lake Requirements Agriculture must meet their Stage I nutrient reduction goals before credits obtained from agricultural lands can be used for nutrienttrading. if th-e Stage I reduction goal is reached; nutrient trading-credits may be available from agricultural lands as well as from new development. The Jordan WOC must establish a credit trading system in the Jordan Lake watershed, and trades must take place wi#hin the-samesub-watershed. New development must meet_certain on-site targets prior to using off-site credits obtained through nutrient trading, to meet their requirements. B. Falls take Requirements The Falls Lake WOC must get DWQ approval to establish a-nutrient trading program, which. must-also comply-with 15A NCAC 02B .0240. -Local governments will be able to combine their nutrient reduction needs from NPDES (wastewater treatment plants) discharges and existing development (including loads from functioning and malfunctioning septic systems) into one reduction requirement. The agricultural. community must meet their voluntary Stage I nutrient reduction goal before trading credits can be obtained from agricultural lands. Parties subject to the Rules are permitted to seek and obtain more cost-effective nutrient reductions through credits from offsite reduction sources or private sellers via a market based framework. Minim-um onsite nutrient reductions must be met prior to utilizing offsite credits. The Rules require local governments in the Upper Falls watershed to obtain credit for nutrient trades that are conducted only within the Upper watershed, while governments located in the Lower watershed -may utilize trading sites in either the Upper or Lower watersheds. C. Plutrient Trading Implications for Orange County Many questions remain concerning the specifics of nutrient trading under these rules. Orange County may need to purchase nutrient reduction credits from private companies Regional Nutrient Management Rules 20 August 2011 or the DENR Ecosystem Enhancement Program (EEP) in order to meet required nutrient reductions. Any such credits required in the-Falls Lake basin must be obtained from projects-located in the Upper Falls Lake watershed. Similarly, other local governments located throughout the entire Falls Lake watershed may also need to obtain offsite nutrient reduction credits. Orange County may end up -in a position to- potentially benefit from the trading needs of other local governments. Possible benefits of trading could include the preservation of open space through- purchases and conservation easements, as well as through the completion of stream restoration projects._ The nutrient trading implications for the agricultural. community are difficult to -predict at the current time since both sets of rules require minimum reductions to be -met by the agricultural community before trading of agricultural-creziits-can then occur. There are concerns that trading could result in the loss of productive agricultural lands as a result of expanded stream buffers or open space preservation. VII:. Riparian_Buffer Protection and Mitigation The Jordan Rules require regulations to protect riparian buffers on all surface waters. County staff submitted information to DWQ in 2010 documenting_that existing County regulations exceed these requirements and informing DWQ that enhanced buffer regulations would be included in the recently adopted Orange County UDO. VI11. Fertilizer Management By August 2012, for all parcels greater than 5 acres in size, the Jordan Rules require fertilizer applicators to complete nutrient management training or apply fertilizer according to a nutrient management plan. Staff is workingto identify all parcels in Orange County within t1~e Jordan Lake watershed -that are greater than 5 acres in size. Staff esfiimates there are approximately 1,500 such parcels in the County. More than 10,000 such parcels may be present in the eight counties within the-entire Jordan Lake watershed. No fertilizer management requirements were included in the Falls Rules. IX. Wastewater Significant reductions in nutrient loading from area wastewater treatment plants will be required. There are no requirements associated with these rules for Orange County. OWASA and the Town of Hillsborough are likely to have to invest in new infrastructure to meet the required reductions in nutrient loading. X. Stormwater from State and Federal Facilities There are no requirements associated with this section of either set of nutrient management rules for Orange County to implement. Jordan Lake and Falls Lake Rules State Required Nutrient Loading Rates for New Development 'Ya:: 1~ ~ ~:: { .' ..4 i ...~.,.. -.{ Y .~ ~, -. 1 ~~ ~- u ~~ ~~ FaIIs.Lake (Uppe~r~ se)'~, '~ ~ \ v `~ ' Nitrogen - 2.2 Ibs/ac/yr '~~~ Phosphorous - 0.33 Ibs/ac/yr ~ ; ` ,~ - ~: ,~ .._x. ,~, ~ - ~~ ~ ~~~C -~ ~~ -~ . ~~r ~" i~~~ ~' ~~ ~- = ,, t ±r ~,~ ~~ h ~~ ~ +y7 ~ ~FeQ [' Haw~River Arm i t .r t 'Q Nitrogen ~~3~~8 Ibs/aclyr Phosphorous' 1 43 Ibs/ac/yr ;;;. -,_- ," ~~ S ~ ~ ~ ~ ~ z ra ,~ ,~ 3 T s ~: ~~Upper New'Hope`Creek Arm ~ fl ~,~~~z-'s - ~ ~" ~;~ ~ ', Nitroger - 2.2 Ibslac/yr -:,. ,~~.~ w ~ ti ; `Phosphorous 0 82 Ibs/ac/yr s ~ ~ ,.'~, %~, -~a --.~ r'f ~- ~ ;r ~ 7j ~, r`~~ ~ ~ f Falls Lake Watershed - Economic Development Districts Jordan Lake Watershed 21 N °••. July 5, 2011 ' aY ' ~fifi'~lanagement Rules 2 2 August 2011 Figures ~~~ts L hed ---~P~'El~ NEL1S~ ~[VER. $ASIN ___ a Au9usR2~ s e ionai Nutrient Man 9 11 R9 _------ d 1 ~~bwatershe ~- ~~ j Ha`"~ !~_ ~a • / ~ -= ~. o ~~ ~ w _.. ~, , ~.~~ , P ~ 1 i..,jl t 1 £ ` '.i\. ~ ~ l k~ f S L ~ .' il~- ~~y""" v~ ~~'- ,~. ~~. a~~ ~.. . w~~ U peer New sh ,..~Su ater ~Wer eW oPe SugWatersh~ Shed, orlon Lake hells ~"arms,~~ .! FigUret ree sum waters shov~tin9 Attachment 4 -Summary and Estimated Costs of Nutrient Management Rules -Stage 1 Stage 1 Estimated Annual Cost* Program Status Imblications Developers/Far/ners/ County Homeowners • Watershed Oversight Committee (WOC) established • Farm registration may be required Cost of voluntary Agriculture • By 2012, WOC is to determine nutrient load • Attainability uncertain in Upper New measures will vary $30,000 ~ contribution, accounting tool recently developed Hope arm from site to site. • Voluntary measures to meet Stage 1 goals • Increased County staff time a~ • Program approved by state in 200 • Increased County staff time and ~; • Implementation by County began August 2010 resources $50,000 ~ Existing Development • Annual report submitted August 2011 p. • Reinstate CWEP membersfli 7 None to 'a • Program includes education, illegal dischaPge, • Noretro-fits required, but are $350,000 mapping, BMP inspection recommended • Draft new development program and proposed • Increased cost to development for UDO amendments to be submitted to state Sep. BMPs $2Q0,000 $50,000 New 2011 • Increased County staff review to to . Development • Public hearing(s) early 2012, BOCC adoption July • County staff must inspect BMPs $650,000 $100,000 2012 • Register operations with Local Advisory Committee • Farm registration required Cost of voluntary Agriculture by January 2012 • Attainability in watershed uncertain mea cures will vary $30,000 • Accounting tool under development • Increased County staff time from site to site. • County must reduce nutrient load to 2006 Baseline • May require costly retro-fits or 2.89 Ibs/ac/yr TN • More County staff time and • County may be below 2.89 based on preliminary resources including septic inventory $75,000 $210,000 ~ Existing Development calculations • Reinstate CWEP membership? to to • Actual loading rate TBD and must include septic $250,000 $860,000 ~ contribution, if any ~ • Stage 1 Program under development by state = • Draft new development program and proposed • Single family lots may require fgrmal -i UDO amendments submitted to state Aug. 2011 site plan, Calculations, and BMPs • Public hearing(s) early 2012, BOCC adoption July • Centralized stormwater BMPs may ~ $300,000 $50,000 New 2012 be needed for development in EI~Ds to to Development • Increased cost to development for $900,000 100,000 BMPs • Increased County staff review time • County s~aff must inspect BMPs L N *Annual cost estimates County include staff time and possible retro-fits; Developers/Farmers/homeowners cost includes cost for septic, new BMPsr etc. .A