The General Assembly has set goals for nutrient reduction in particular river basins and watersheds in the state. These nutrient reduction goals must be met through a combination of management strategies, including requirements for stormwater controls for development activities. Rules adopted by the Environmental Management Commission provide options for how developers meet these nutrient control standards.

The Ecosystem Enhancement Program’s Nutrient Offset Program was developed to provide a mechanism to assist developers in meeting their nutrient loading requirements. More information on nutrient management strategies in the state can be found at the N.C. Division of Water Quality’s web site: DWQ Web site.

Before a developer can receive final site-plan approval from a local government, the anticipated nutrient loading for nitrogen and/or phosphorus where applicable in pounds over a 30-year period is calculated by the developer and verified by the local government. If the loading exceeds the allowable threshold established by rule or law, then the excess loading must be offset by the developer. Developers can offset nutrient loading on site or choose a third-party mitigation provider such as the EEP or a compensatory mitigation bank to “buy down” their loading requirements to meet the thresholds established for nutrient loading

What is EEP’s role in nutrient offset?

One option available to some developers to mitigate for nutrient loading is to pay a fee to the EEP Nutrient Offset Program. When developers choose this option, payment is made to EEP and the developer’s responsibility for offsetting the nutrients associated with that payment are transferred to the program. EEP uses these funds to construct nutrient-reduction projects to meet nutrient offset requirements. EEP reports compliance with regulatory requirements in its annual reports and as requested by DWQ.

Who can use EEP’s Nutrient Offset Program?

Access to the EEP Nutrient Offset Program is governed by legislative action. Effective July 24, 2009 all non-government entities must comply with the restrictions outlined in Session Law 2009-337 and are not eligible to participate in the EEP Nutrient Offset Program if credits are available for purchase from an approved compensatory-mitigation bank within the hydrologic area where the loading is taking place. Government entities can choose to meet their reduction requirements by paying EEP or purchasing credits from a mitigation bank. Information on mitigation banks can be found at the DWQ Web site.

What are the current fees for nutrient offset?

Effective September 1, 2010, the Ecosystem Enhancement Program is implementing an actual cost approach to setting payment rates in compliance with Session Law 2007-438. Payments made on or after September 1, 2010 are subject to the following rates:

These rates will be updated per 15A 2B .0274 at least annually.

To determine the total payment, 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.

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

All verification letters issued to developers by local governments specifying the amount of nutrient buy down 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 cannot be accepted):

• Project name and transaction number assigned by the local government.
• The specific nutrient involved (nitrogen and/or phosphorus). If both nitrogen and phosphorus are in excess of loading requirements in the Tar-Pamlico basin and Falls Lake watershed, letters must specify the total amounts of each.
• Total number of pounds of nitrogen and phosphorus to be offset.
• The eight-digit CU where the development is located (see online interactive map). Letters for nutrient offset in the Falls Lake watershed must indicate that the loading is taking place in the Falls Lake watershed.
• The ten-digit CU or address of the development site (note: 15A NCAC 02B .0240 (b) (2) requires mitigation providers to use this information to locate offset projects)
• All letters must reference the applicant’s responsibility to comply with Session Law 2009-337.
  Note: letters of verification from local governments should not specify a rate, since the rate is subject to change prior to payment and rates vary among mitigation providers.

How do I make a payment to EEP?

The EEP Nutrient Offset Program is a voluntary program. Applicants wishing to access the EEP’s nutrient offset program must complete the nutrient offset payment request form . All requests to make a payment must be accompanied by a copy of the letter from the local government verifying the buy-down requirements, as well as a signed statement of compliance with SL 2009-337 . Before accepting any nutrient payment, consideration is given to the financial, temporal and technical ability of the program to satisfy the mitigation request. Once EEP has agreed to accept payment, applicants will be notified by EEP's In-Lieu Fee Program Coordinator. Checks payable to NCEEP can be sent as follows:

Payments may be mailed via US Postal Service to:
NCEEP
1652 Mail Service Center
Raleigh, NC 27699-1652

or via other delivery method to:
NCEEP
2728 Capital Boulevard, Suite 1H 103
Raleigh, NC 27604

Walk-in payments at NCEEP’s Raleigh office are accepted by appointment only Monday-Friday from 9 a.m. to 4 p.m. (state holidays excepted).
EEP offices are located at:
2728 Capital Boulevard, Suite 1H 103
Raleigh, NC 27604
CLICK HERE FOR DIRECTIONS TO EEP
Please contact EEP In-Lieu Fee Coordinator Kelly Williams at (919) 716-1921 or e-mail Kelly.Williams@ncdenr.gov.

How does EEP accomplish nutrient reductions?

All payments made to EEP to reduce nitrogen and/or phosphorus are used by the program to implement projects within the same area of the river basin where the excess loading occurred. EEP restores riparian buffers or implements other projects such as stormwater wetlands to reduce the required amounts of particular nutrients. 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. EEP has successfully partnered with several local governments to construct nutrient reduction projects in local government jurisdictions.

Where are the nutrient reduction projects implemented?

Prior to Sept. 1, 2007, all nutrient- reduction projects were required to be within the same river basin as the nutrient loading. As of Sept. 1, 2007, all new nutrient-reduction projects are required to be located in the same eight-digit Cataloging Unit (CU), as designated by the U.S. Geological Survey, in which the associated nutrient loading takes place (use EEP's online interactive map to learn more about North Carolina’s CUs). In addition projects offsetting nutrient loading in the Falls Lake area must be located in the Falls Lake watershed, also known as the Upper Neuse Basin which is a portion of the Neuse 03020201 CU. Projects offsetting nutrient loading in the Jordan Lake watershed must be located in the specific subwatershed where the loading is taking place.

Links:

• Rule changes affecting the Nutrient Offset Program – Sept. 1, 2010
• Information on the Actual Cost Method (coming soon!)
• NCEEP Nutrient Offset Payment Data
• N.C. Division of Water Quality Nonpoint Source Management Program.
• Session Law 2007-438
• Session Law 2009-337
• Session Law 2009-484, extending the expiration of the Nutrient Offset Program fee schedule to Sept. 1, 2010 (amending Session Law 2007-438)
• DENR Implementation of Session Law 2009-337(7/29/09)