The Neuse River, the Tar River and their estuarine systems all too frequently have experienced fish kills and other environmental harm as a result of high levels of nutrients in their waters. The nutrients come from wastewater treatment plant discharges into rivers and from stormwater runoff that carries nutrients from agricultural and developed lands.

To address the nutrient loading problems in the Neuse and Tar river basins, the General Assembly has set goals for the reduction of nutrients in both river systems.

The goals must be met through a combination of limits on wastewater discharges and stormwater controls for development activities. Rules adopted by the Environmental Management Commission (EMC) allow for exceptions to the nutrient control standards if the applicant asking for the exception can provide mitigation for loss of the nutrient control.

PLEASE CLICK ON ANY QUESTION BELOW FOR MORE INFORMATION

Who administers the program in North Carolina?
What is EEP’s role?
How does EEP accomplish nutrient offset?
What other options are available to developers?
Where must the nutrient reduction projects be implemented?
What does EEP do with payments made for nutrient offset?
What are the current fees for nutrient offset?
What information does EEP need in order to accept a payment and issue a receipt?
How do I make a payment to EEP?

Links:

• House Bill 859
• 2007 RTI International study for the N.C. General Assembly on costs associated with providing nutrient controls for point and nonpoint source discharges
• N.C. Division of Water Quality Nonpoint Source Management Program.

Who administers the program in North Carolina?

The Nutrient Offset Program is administered by the N.C Department of Environment and Natural Resources (NCDENR) Division of Water Quality (DWQ), and is implemented by those local governments that approve site-development plans within their corporate limits. It is a voluntary program that was established by the EMC to give wastewater dischargers and developers who needed mitigation an option of paying a specified fee, or “buying down” their nutrient requirements instead of constructing a mitigation project themselves.

What is EEP’s role?

One mitigation option available to offset nutrients is to pay a fee into the Riparian Buffer Restoration Fund, which is managed by EEP. EEP uses these funds to construct nutrient-reduction projects in the Neuse and Tar-Pamlico river basins to achieve the needed nutrient reductions.

How does EEP accomplish nutrient offset?

With fees collected and accumulated in the two river basins, EEP builds buffer restoration sites or other facilities to offset the required amounts of identified nutrients – nitrogen in the Neuse basin, and both nitrogen and phosphorus in the Tar basin – before they can enter the rivers.

Before a developer can receive final site-plan approval, the anticipated nutrient reduction requirement for nitrogen or phosphorus in pounds above a certain threshold over a 30-year period is calculated by the developer and verified by the local government. The calculated amount of nutrient reduction must then be offset by the developer.

The developer may opt to pay a fee to EEP based on the amount of nitrogen or phosphorus needing to be offset over the 30-year period. If the developer chooses to pay a fee to the EEP, the developer makes the payment, and is then issued a receipt by EEP which allows the developer to receive final approval from the local government. Upon receiving the payment, EEP assumes the responsibility for the mitigation requirement including mitigation site construction and monitoring for success.

What other options are available to developers?

In addition to the EEP option, developers have two mitigation options available to comply with nutrient-reduction requirements:

1. Construct an adequately sized on-site device or series of devices, often called Best Management Practices (BMP’s). Examples of BMP’s include retention ponds and stormwater wetlands.

2. Purchase approved reduction credits from a private entity not affiliated with NCDENR.

Where must the nutrient reduction projects be implemented?

Through Aug. 31, 2007, projects that provide nutrient reduction are only required to be located in the same river basin as the runoff. Recent state legislation (House Bill 859, ratified Aug. 1, 2007 and effective Sept. 1, 2007) now requires nutrient- reduction projects to be in the same 8-digit Cataloging Unit (CU), as designated by the U.S. Geological Survey, in which the associated nutrient runoff takes place (use this online guide to learn more about North Carolina’s CU’s).

What does EEP do with payments made for nutrient offset?

All payments made to EEP to buy down nitrogen and/or phosphorus generated in excess of the established limits are used by EEP to implement projects within the same portion of the river basin that the pollution occurred. EEP is uniquely positioned to carry out high-quality, cost-effective projects for watershed improvement and protection, with a goal of restoring and maintaining ecosystem functions such as water quality and habitat throughout North Carolina.

By accepting payments as part of the Nutrient Offset Program, EEP assumes the applicant’s responsibility for a certain amount of nutrient reduction. EEP reports compliance with regulatory requirements in its annual reports and as requested by the N.C. Division of Water Quality. Payments made to EEP are based on a fee schedule established by the EMC.

What are the current fees for nutrient offset?

House Bill 859 establishes the following revised fee schedule for nutrient offset payments to EEP:

The per pound rate in the table above is multiplied by the total number of pounds of offset required for the total area of the development for a 30-year period.

In the Tar-Pamlico basin, if a development project has both nitrogen and phosphorus reduction requirements, the offset-requirement and payment-amount calculations are performed for both nutrients, and only the higher amount is required to be paid.

Also, House Bill 859 now allows a developer to fulfill the nutrient-runoff requirement through nutrient-offset projects provided by organizations and parties not affiliated with NCDENR. Guidance to such organizations or parties (typically private mitigation bankers) is under consideration by NCDENR, which has stated that such sites shall be consistent with rules adopted by the EMC.

What information does EEP need in order to accept a payment and issue a receipt?

Effective Sept. 1, 2007, all letters issued to developers by local governments specifying the amount of the payment to be made by the developer to EEP must include the following information in order for EEP to accept the payment and issue a receipt (payments based on letters not including this information will not be accepted):

• Project name and transaction number assigned by the local government.
• The specific nutrient involved (nitrogen or phosphorus).
• This equation: Number of pounds/acre/year to be offset x Acres in development x 30 years = Total number of pounds of nitrogen or phosphorus to be offset. (Example: .75 lbs. nitrogen/acre/year x 10 acres x 30 years = 225 total lbs. nitrogen to be offset. Note that letters of verification from local governments should not specify a rate.)
• The eight-digit CU where the development is located

EEP will soon make available an interactive mapping program to provide assistance with determining in which eight-digit CU a particular development project is located. Until that mapping program is available, local governments and applicants may continue to contact EEP In-Lieu Fee Program Coordinator Kelly Williams (Kelly.williams@ncmail.net) or (919) 716-1921 for assistance.

How do I make a payment to EEP?

BY MAIL
Payments may be mailed to:
NCEEP
1652 Mail Service Center
Raleigh, NC 27699-1652

IN PERSON
Applicants may also pay in person by coming to EEP’s Raleigh offices.
Walk-in payments are accepted Monday-Friday from 9 a.m. to 4 p.m. (state holidays excepted) and at other times by appointment. All applicants are advised to call EEP’s front desk (919) 715-0476 to ensure appropriate staff will be present to accept payments and issue receipts. Please bring along your copy of the letter from the
local government verifying the payment amount.

EEP offices are located at:
2728 Capital Boulevard, Suite 1H 103
Raleigh, NC 27604

CLICK HERE FOR DIRECTIONS TO EEP