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HomeMy WebLinkAboutAgenda - 03-12-2013 - 2ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: March 12, 2013 Action Agenda Item No. 2 SUBJECT: Upper Neuse River Basin Association /Falls Lake Watershed Rules DEPARTMENT: Environment, Agriculture, Parks and Recreation (DEAPR) ATTACHMENT(S): A. Falls Lake Watershed Map B. List of Recommended Future Monitoring Studies C. The Consensus Principles D. UNRBA Funding Spreadsheets PUBLIC HEARING: (Y /N) No INFORMATION CONTACT: David Stancil, 245 -2510 Tom Davis, 245 -2510 Gail Hughes, 245 -2753 1 PURPOSE: To inform the Board of current and planned activities of the Upper Neuse River Basin Association ( UNRBA). BACKGROUND: The Falls Lake Nutrient Management Strategy (Falls Lake Rules) became effective in January 2011. These rules require significant reductions in the amounts of nitrogen and phosphorus entering Falls Lake from sources in the watershed including agriculture, wastewater treatment plants, State and Federal facilities, and existing and future development (Attachment A). Compliance with these rules is projected to be extremely expensive, with the majority of the expense anticipated to be borne by local governments in the Falls Lake watershed, mainly to comply with the regulations involving wastewater treatment plants and existing development (urban stormwater). Considerable expenditures will be needed during Stage II of the nutrient reduction process (2021 -2036) to meet the overall reduction goals established in the rules — 40% reduction in nitrogen and 77% reduction in phosphorus runoff. The members of the UNRBA, including Orange County, remain committed to the protection of the Falls Lake water supply for the City of Raleigh. However, the fiscal analysis prepared by the North Carolina Division of Water Quality (DWQ) during the development of the Falls Lake Rules estimated the total cost to comply with the rules as written would be approximately $1.5 billion dollars. In addition, many people consider the required nutrient reductions unattainable at nearly any expense. The Falls Lake Rules include provisions for the Environmental Management Commission (EMC) to consider additional information starting in 2020 for the re- examination of Stage II of the rules. In 2011 the UNRBA hired a consultant "for the development of methods by which the regulatory framework associated with the recently adopted Falls Lake Nutrient Management Rules can be evaluated ". This consultant, CardnoEntrix, recently completed four technical reports to begin the process of analyzing available means for altering Stage II of the Falls Lake Rules. These reports, completed during the initial phase of what has been termed "The Path Forward" process, are as follows: 1. Develop Framework for a Re- examination of Stage II of the Falls Nutrient Strategy 2. Review Existing Data and Reports for Falls Lake and the Watershed 3. Estimation of Nutrient Loading to Falls Lake 4. Review of Existing Models and Recommendations for Future Studies These reports summarize existing water quality information for Falls Lake and the surrounding watershed, evaluate the lake modeling that DWQ completed during the development of the Falls Lake Rules, assess other available models for representing the lake and watershed, investigate the regulatory "framework" that guides water quality issues in North Carolina, and detail a "roadmap" for the UNRBA to pursue in order to modify Stage II of the Falls Lake Rules. As a result of this process, CardnoEntrix has provided the UNRBA a draft list of studies that are recommended for completion in order to gain necessary information for incorporation into the re- examination process (Attachment B). The ultimate goal of The Path Forward process is to lower the nutrient reduction requirements of Stage II of the Falls Lake Nutrient Management Strategy, while preserving the water supply of the City of Raleigh. In addition, the UNRBA is interested in increasing the number of Best Management Practices (BMPs) that have nutrient reduction credits established by DWQ for their use. The UNRBA is beginning to work on determining nutrient reduction credits for a large number of BMPs that should prove to be very helpful for both the agricultural community as well as more developed urban areas to use in meeting their required nutrient reductions. Without this work, urban areas would have only a few BMPs available to use in meeting the nutrient reduction targets. The agricultural community has even fewer BMPs approved for use at this time. Developing additional BMPs could prove to be extremely beneficial to the agricultural producers in the Falls Lake watershed. Given the amount of data that should be collected in pursuit of altering Stage II of the rules, it is likely that the UNRBA will need to complete multiple studies of Falls Lake and the surrounding watershed in the next five to ten years. At this time, the Path Forward Committee of the UNRBA recommends that the studies listed on Attachment 2 under the objectives entitled "Lake Response Modeling, Support of Regulatory Options and then Source /Jurisdictional Loading" be completed. The Falls Lake Rules specify that a minimum of three years of data must be collected to even be considered by the EMC during the re- examination process. This fact, coupled with the volume of information that is in need of collection, as well as the 2020 deadline for submitting data, underline the need to initiate water quality monitoring in the near future. During the development of the Falls Lake Rules, the majority of local governments in the Falls Lake watershed adopted a document entitled Consensus Principles to Guide Falls Lake K Nutrient Management Strategy (Attachment C). These principles anticipated that local governments would share the costs of re- examining Stage II of the rules. Item 10 of the Consensus Principles includes the following: "The limited resources available to DWQ and DENR for the implementation of the nutrient management strategy and the need for a robust and active sampling and monitoring program, as well as additional modeling, make it desirable for the affected local governments to share resources and undertake these important activities, and other activities associated with re- examination of the Nutrient Management Strategy, collectively. The affected local governments should share resources and assist with funding for the examination of the Nutrient Management Strategy" The Consensus Principles were adopted unanimously by the Board of County Commissioners on March 16, 2010. FINANCIAL IMPACT: During FY 2011 -2012, UNRBA dues were doubled for all members. Orange County's share was increased to $27,546.81. UNRBA dues are apportioned according to a three -part funding formula (Attachment D). Starting in FY 2013 -14, activities undertaken by the UNRBA over the next five to ten years to alter Stage II of the Falls Lake Rules will require substantial funding. As a result, Orange County is being asked to pay dues and special assessment fees of $68,341.06 for FY 2013 -14. It is likely that even higher fees will be necessary during FY 2014 -15 since 12 months of water quality monitoring is planned for that time, while only a partial year of monitoring is anticipated for FY 2013 -14. Staff anticipates that elevated fees and dues will continue to be requested from each member of the UNRBA over a period of five to ten years. While the County and the agricultural community will certainly have to undertake measures to reduce runoff to Falls Lake, if the Stage II nutrient reduction targets are not reduced and instead remain as they are currently written, both parties will undoubtedly face greater expenditures than if changes in the nutrient reduction rules are made. Similarly, increasing the number of Best Management Practices (BMPs) available to regulated parties, including the agricultural community and urban areas, is also expected to ease compliance with the Falls Lake Rules. RECOMMENDATION(S): The Manager recommends that the Board consider and discuss the information presented concerning UNRBA activities related to the Falls Lake Nutrient Management Strategy. ATTACHMENT A P.ILt..4? aLV 15'AtEttanEif 1 OFalls Lake Watershed Felrberc r ` PERSON Q County Boundaries r G4 }..� Municipalities CASWELL i ���• FalllakeMaregementAreas I� -� t Upper Falls Watershed i Lower Falls Watershed Use Support Rating Supporting GRANVILLE Impaired i - - - -, - - - - - -- } - -- - ;- - - - - -- - - - - - -- - - e� � � �s Na Data VANCE air_ p e+ whr..r ` UPHAM m °rp c'. mmo FRANKLI _ �C1eck � ri'��' it �•� ,� ��" `.z� \� � �• -- - �I acs. �. i l ORANGE EY xw yt»nern - ,ya G I LNLI 1l R�gh . Falls Lake Watershed. m Study 0 rn c CL C V d = O N �+ � O C O H C ?� y 1.2 -�j C O C E O y> O •� O) O M 0. Q a1 Lu C c�6 W-0 O O Y� 'a3U 20 fAJ JcL U J U C CoO Jurisdictional monitoring X X Areal loading rates X Internal Lake Loading X X X Nutrient Fate and Transport X X Lake bathymetry and flow data X X Tributary monitoring X X Storm event sampling X In -lake processes X X Lag time X X BMP implementation tracking X X Diurnal pH and DO monitoring with water quality sampling X X Fish monitoring with water quality sampling X X Terrestrial and avian species monitoring X X Recreational data and water quality sampling X X Event based water quality sampling X X Estimation of loading from onsite wastewater treatment systems X X Streambank erosion and nutrient loading X X Tracking BMP inspections and repairs X X ATTACHMENT C CONSENSUS PRINCIPLES TO GUIDE FALLS LAKE NUTRIENT MANAGEMENT STRATEGY Falls Lake is currently classified by the North Carolina Environmental Management Commission (EMC) as WS -IV, B: NSW, CA. Pursuant to this classification, the designated uses of Falls Lake include aquatic life propagation and biological integrity (including fishing and fish), wildlife, primary and secondary recreation, agriculture, and water supply. Falls Lake serves as a water supply for the City of Raleigh (Raleigh) and six other municipalities in Wake County. 2. The EMC has established a water quality standard for chlorophyll -a of 40 ug/L to protect the designated uses of all waters in the state, including Falls Lake. 3. Since the time it was constructed, portions of Falls Lake have experienced nutrient conditions that have contributed to monitored exceedances of the chlorophyll -a standard. In 2005, the General Assembly directed the EMC to develop a nutrient management strategy for Falls Lake. The legislation was amended so that the nutrient management strategy and implementing rules are to be established no later than January 15, 2011. 4. In 2008, the Division of Water Quality (DWQ) found that the chlorophyll -a levels at certain locations in Falls Lake exceeded the water quality standard. The EMC found, in the 2009 Neuse Basin Plan, that new nutrient management measures were needed to address nutrient - related problems in Falls Lake. 5. The level of nutrient loading reductions necessary to protect and improve water quality in Falls Lake make it appropriate to establish a two -stage nutrient management strategy — the first stage (Stage 1) designed to achieve the water quality standard for chlorophyll -a in the lower lake below Highway 50 (Lower Lake), where the water supply intake is located, and to improve water quality in the upper lake above Highway 50 (Upper Lake), and the second stage (Stage 2) designed to further address water quality in the Upper Lake. 6. The first stage of nutrient loading reductions and protection measures for Falls Lake, as described below, are designed to achieve sufficient improvements in water quality to result in the removal of the Lower Lake from the 303(d)' list of impaired waters by 2021. 7. The Stage 1 management measures should include reductions in loading from all major categories of sources including point sources, agriculture and other fertilizer using activities, new development, and existing development. a Under Section 303(d) of the U.S. Clean Water Act, waters of the state that have water quality violations resulting in the failure to meet the designated and protected uses are designated as "impaired ". 7 Consensus Principles February 9, 2010 Page 2 of 4 a. Point Sources: Large point sources as a group should be required to achieve by 2016 a 20% reduction in 2006 nitrogen loads and a 40% reduction in 2006 phosphorus loads. The allowable mass load for these point sources should be allocated among them based on 110% of current flows.Z Smaller point sources should be required to meet limits of technology by 2016. b. New Development: As soon as is reasonably feasible, and no later than eighteen months after adoption of rules by the EMC, new development throughout the Falls watershed should be required to meet a nitrogen annual loading limit of 2.2 pounds per acre and a phosphorus annual loading limit of 0.33 pounds per acre, a portion of which may be achieved through offset payments. c. Existing Development: No later than three years after adoption of the rules by the EMC, all jurisdictions throughout the Falls watershed should be required to begin and continuously implement a program to reduce existing development nutrient loads to 2006 levels within ten years from adoption of the rules by the EMC. 1. Where septic systems account for more than 20% of the nitrogen loading in the portion of a subwatershed of Falls Lake within a jurisdiction (according to DWQ's watershed model), that jurisdiction should be required, as a part of its Stage 1 existing development program, to begin and continuously implement a program to reduce loading from septic systems, discharging into waters of the State within that jurisdiction and subwatershed, which accounted any part for nutrient loading for the jurisdiction. 2. A jurisdiction that includes any part of a subwatershed of Falls Lake in which chlorophyll a levels have exceeded 40 ug/L in more than 75% of the monitoring events in any calendar year should be required, as a part of its Stage 1 existing development program, to begin and continuously implement a program to reduce nutrient loading into waters of the State within that jurisdiction and subwatershed. However, the total amount of nutrient loading reductions in Stage 1 is not increased for local jurisdictions by the requirement to add specific program components to address septic loading or high nutrient loading levels. d. State and Federal Agencies: State and federal agencies, including but not limited to DOT, shall be required to reduce nitrogen and phosphorus loading from new and existing development to a similar degree and within a similar time schedule as local governments. z The Consensus Principles rely on, and do not seek any change from, the apportionment of load allocations as proposed by DWQ in the draft rules issued on January 14, 2010 Consensus Principles February 9, 2010 Page 3 of 4 8. Stage 2 management measures should be designed to achieve water quality standards in the Upper Lake and to maintain water quality in the Lower Lake. The compliance date for achieving all additional reductions from point sources and agriculture should be no earlier than 2036. Additional existing development reductions, as determined pursuant to paragraph 9 should begin in 2021 and should be continuously implemented according to timelines proposed by each local government in plans periodically submitted to and approved by the EMC, subject to the limitations on the EMC's authority regarding existing development criteria contained in the Jordan Lake legislation. 9. The process by which the proposed regulatory scheme has been developed relied on a limited data base which will be substantially enhanced by a more rigorous program of sampling, monitoring and analysis. In addition, it may not be feasible to attain all currently designated uses in the Upper Lake and attempting to do so may result in substantial and widespread economic and social impact. The EMC should therefore begin a re- examination of its nutrient management strategy for Falls Lake by January 1, 2018. The re- examination should consider, among other things, (i) the physical, chemical, and biological conditions of the Lake with a focus on nutrient loading impacts and the potential for achieving the Stage 1 goal by 2021 as well as the feasibility of both achieving the Stage 2 reduction goals and meeting the water quality standard for chlorophyll -a in the Upper Lake, (ii) the cost of achieving, or attempting to achieve, the Stage 2 reduction goals and the water quality standard in the Upper Lake, (iii) the existing uses in the Upper Lake and whether alternative water quality standards would be sufficient to protect those existing uses, and (iv) the impact of the management of Falls Lake on water quality in the Upper Lake. As the first step in the re- examination, a Scientific Advisory Board should analyze and review the information identified above along with the additional monitoring and modeling data compiled since the model was approved and should present its recommendations for changes in the Nutrient Management Strategy and its implementing rules to DWQ and the EMC by ' Session Law 2009 -216 (the Jordan Lake legislation), at Section 3(d)(2)(f), sets the following limitations on the authority of the Environmental Management Commission for its review and approval of local government programs to control nutrient loading from existing development: "The Commission shall approve the program if it meets the requirements of this subdivision, unless the Commission finds that the local government can, through the implementation of reasonable and cost - effective measures not included in the proposed program, meet the reductions in nutrient loading established by the Department pursuant to sub - subdivision b. of this subdivision by a date earlier than that proposed by the local government. ...In determining whether additional or alternative load reduction measures are reasonable and cost effective, the Commission shall consider factors including, but not limited to, the increase in the per capita cost of a local government's stormwater management program that would be required to implement such measures and the cost per pound of nitrogen and phosphorus removed by such measures. The Commission shall not require additional or alternative measures that would require a local government to: 1. Install or require installation of a new stormwater collection system in an area of existing development unless the area is being redeveloped. 2. Acquire developed private property. 3. Reduce or require the reduction of impervious surfaces within an area of existing development unless the area is being redeveloped." 9 Consensus Principles February 9, 2010 Page 4 of 4 January 1, 2019. In light of the report from the Science Advisory Board, the EMC should direct the DWQ to prepare proposed rule revisions, if any, and an updated fiscal note on Stage 2 by August 1, 2019. In its development of any proposed rule revisions, DWQ shall consult with the local governments and other interested parties. Except to the extent that management measures identified as a part of Stage 2 are required to achieve the Stage 1 goal, local governments should not be required to begin implementing Stage 2 management measures without a determination by the EMC of whether alternative goals and/or standards should be established for the Upper Lake. 10. Annual monitoring of chlorophyll -a in Falls Lake should be funded and implemented through a collective effort by all jurisdictions partially or wholly within the Falls Lake watershed. The limited resources available to DWQ and DENR for the implementation of the nutrient management strategy and the need for a robust and active sampling and monitoring program, as well as additional modeling, make it desirable for the affected local governments to share resources and undertake these important activities, and other activities associated with the re- examination of the Nutrient Management Strategy, collectively. The affected local governments should share resources and assist with funding for the examination of the Nutrient Management Strategy. The affected local governments created the Upper Neuse River Basin Association, among other reasons, as a means to more effectively perform functions related to Falls Lake and the Upper Neuse River Basin. The Association with an expanded mission and authority, or some similar organization, should be considered for expanded duties that the local governments may agree to assume consistent with this paragraph and paragraph 11 of this document. The results of the additional monitoring and modeling and other relevant information gathered by the collective efforts of the local governments should be shared on a regular basis with DWQ and made available to the Scientific Advisory Board and the EMC in connection with the review described in Paragraph 9. 11 A robust and innovative trading program among all regulated sources is critical to the success of the nutrient management strategy for Falls Lake. In addition, local governments should be able to use any combination of point and nonpoint control/reduction strategies, including land preservation, within their respective jurisdictions to meet their overall obligations under the nutrient management strategy. Nothing in these principles is intended to imply that the EMC is precluded from complying with the requirements of federal law. ATTACHMENT D UNRBA Revenue Summary FY 2013 -14 Date: 2/19/13 Member Membership Dues FY 2013 -14 Monitoring Assessment FY 2013 -14 Total Amount Due FY 2013 -14 FY 2012 -13 Membership Dues Paid Town of Butner $ 2,054.55 $ 7,158.72 $ 9,213.27 $ 3,838.00 City of Creedmoor 1,387.01 4,832.80 6,219.81 2,614.00 City of Durham 33,392.50 116,350.17 149,742.67 59,616.00 Durham County 12,776.99 44,519.12 57,296.11 23,091.00 Franklin County 1,641.66 5,720.07 7,361.73 3,096.00 Granville County 9,429.83 32,856.55 42,286.38 17,105.00 Town of Hillsborough 2,558.02 8,912.96 11,470.98 4,670.00 Orange County 15,240.00 53,101.06 68,341.06 27,578.00 Person County 10,496.73 36,573.97 47,070.70 18,996.00 City of Raleigh 39,976.49 139,290.92 179,267.41 72,550.00 SGWASA 4,068.28 14,175.18 18,243.46 7,811.00 Town of Stem 1,084.05 3,777.19 4,861.24 2,095.00 Wake County 8,278.44 28,844.74 37,123.18 14,170.00 Town of Wake Forest 1,115.44 3,886.57 5,002.01 2,151.00 Total $ 143,499.99 $ 500,000.02 $ 643,500.01 $ 259,381.00 10 UNRBA Membership Dues Calculation for FY 2013 -14 $ 143,500.00 Projected Revenue Date; 2119/13 Member Base Rate (10 %) 2012 Raw Water Demands (50 %) Jurisdiction's Land Area (40 %) FY 2013 -14 Dues $ 14,350.00 Member's Sub- Share of Cost 2012 Average Raw Water Demand (MGD) $ 71,750.00 (%) Member's Sub -Share Cost Jurisdiction's Acres Within Watershed $ 57,400.00 (%) Member's Sub -Share Cost Total Membership Dues Town of Butner $ 1,025.00 NA 8,822 1.8 $ 1,029.55 $ 2,054.55 City of Creedmoor 1,025.00 NA 3,102 0.6 362.01 1,387.01 City of Durham 1,025.00 28.410 40.1 $ 28,781.45 30,728 6.2 3,586.05 33,392.50 Durham County 1,025.00 NA 100,700 20.5 11,751.99 12,776.99 Franklin County 1,025.00 NA 5,284 1.1 516.66 1,641.66 Granville County 1,025.00 NA 72,019 14.6 8,404.83 9,429.83 Town of Hillsborough 1,025.00 1.090 1.5 1,104.25 3,674 0.7 428.77 2,558.02 Orange County 1,025.00 NA 121,805 24.8 14,215.00 15,240.00 Person County 1,025.00 NA 81,161 16.5 9,471.73 10,496.73 City of Raleigh 1,025.00 38.320 54.1 38,821.02 1,118 0.2 130.47 39,976.49 SGWASA 1,025.00 3.004 4.2 3,043.28 NA - 4,068.28 Town of Stem 1,025.00 NA 506 0.1 59.05 1,084.05 Wake County 1,025.00 NA 62,153 12.6 7,253.44 8,278.44 Town of Wake Forest 1,025.00 NA 775 0.2 90.44 1,115.44 Total 1 $ 14,350.00 70.824 1 99.9 $ 71,750.00 491,847 99.9 1 $ 57,399.99 $ 143,499.99 Notes; * Cost Allocation = 10% by uniform participation; 50% by raw water demands; and 40% by jurisdictional land area in UNRB, ** 2012 annual daily average raw water demand reported by user systems. * ** Jurisdictional areas obtained from members, January, 2013. Percentages are calculated based on total basin acres. The towns of Mebane and Franklin have a few acres but not enough to affect percentages. Municipal acreages do NOT include ETJs (although some municipalities may have some planning jurisdiction in ETJs, they do not collect tax revenue from these properties). SGWASA- and OAWS -owned acreages are included in their respective jurisdictional areas and are not calculated separately. UNRBA Monitoring Assessment Calculation for FY 2013 -14 500,000.00 Projected Revenue Date: 2/19113 Member Base Rate (10 %) 2012 Raw Water Demands (50 %) Jurisdiction's Land Area (40 %) FY 2013 -14 Dues $ 50,000.00 Member's Sub- Share of Cost 2012 Average Raw Water Demand (MGD) $ 250,000.00 (%) Members Sub -Share Cost Jurisdiction's Acres Within Watershed $ 200,000.00 N Member's Sub -Share Cost Total Membership Dues Town of Butner $ 3,571.43 NA 8,822 1.8 $ 3,587.29 $ 7,158.72 City of Creedmoor 3,571.43 NA 3,102 0.6 1,261.37 4,832.80 City of Durham 3,571.43 28.410 40.1 $ 100,283.80 30,728 6.2 12,494.94 116,350.17 Durham County 3,571.43 NA 100,700 20.5 40,947.69 44,519.12 Franklin County 3,571.43 NA 5,284 1.1 2,148.64 5,720.07 Granville County 3,571.43 NA 72,019 14.6 29,285.12 32,856.55 Town of Hillsborough 3,571.43 1.090 1.5 3,847.57 3,674 0.7 1,493.96 8,912.96 Orange County 3,571.43 NA 121,805 24.8 49,529.63 53,101.06 Person County 3,571.43 NA 81,161 16.5 33,002.54 36,573.97 City of Raleigh 3,571.43 38.320 54.1 135,264.88 1,118 0.2 454.61 139,290.92 SGWASA 3,571.43 3.004 4.2 10,603.75 NA - 14,175.18 Town of Stem 3,571.43 NA 506 0.1 205.76 3,777.19 Wake County 3,571.43 NA 62,153 12.6 25,273.31 28,844.74 Town of Wake Forest 3,571.43 NA 775 0.2 315.14 3,886.57 Total $ 50,000.02 70.824 1 99.9 $ 250,000.00 1 491,847 99.9 $ 200,000.00 $ 500,000.02 Notes: * Cost Allocation =10% by uniform participation; 50% by raw water demands; and 40% by jurisdictional land area in UNRB. ** 2012 annual daily average raw water demand reported by user systems. * ** Jurisdictional areas obtained from members, January, 2013, Percentages are calculated based on total basin acres. The towns of Mebane and Franklin have a few acres but not enough to affect percentages. Municipal acreages do NOT include ETJs (although some municipalities may have some planning jurisdiction in ETJs, they do not collect tax revenue from these properties). SGWASA- and OAWS -owned acreages are included in their respective jurisdictional areas and are not calculated separately. N