Pennsylvania

1
Pennsylvanias Tributary Strategy

• New Program Initiatives
• Program Coordination

2
PA Chesapeake Bay Drainage
Over 50 of the land in PA drains to the
Chesapeake Bay The Susquehanna River is the
largest tributary of the Chesapeake Bay,
providing 90 of the freshwater flow to the upper
bay and ½ the total flow into the Bay PAs
Potomac provides an additional 2 of the Bays
freshwater flow
New York
Pennsylvania
Maryland
Delaware
West Virginia
District of Columbia
Chesapeake Bay Watershed Boundary
Virginia
3
PA Chesapeake Basin Projected Nutrient Source
LoadsBased on Reported 2002 Implementation
Nitrogen
Phosphorus
Landuse
7
4
PA Goals
Cap Goal 1985 2004 Reduc-tions
TN (Mill. Lbs.) 71.9 120.1 106.6 34.7
TP (Mill. Lbs.) 2.46 4.4 3.61 11.5
Sed. (Mill. Tons) 1.0 1.24 1.14 0.14
5
How will PA reach its goals?

• Two Main Elements
• Point source reductions 14 N and 22 P
• Sewage Treatment Plants and Industry.
• Nonpoint source reductions 86 N and 78 P
• Agricultural and urban BMPs

6
Point Source Tributary Strategy

• All existing point sources gt 2000 gpd will be
  allocated annual TN and TP cap loads.
• Significant Facilities Cap Load Allocation
  based on 2010 Flow Projection at 8 mg/l TN and 1
  mg/l TP
• Nonsignificant Cap Load Allocation based on
  Design Flow Projection at existing mg/l TN and
  mg/l TP
• Zero reserve TN or TP loads are available for
  new facilities or new land development
  discharging to existing facilities. These new
  loads must be offset.
• The aggregate load from all industrial discharges
  will be held to no more than existing, measured
  loading plus a 10 reserve.
• After August 2005, nutrient limits to be included
  in NPDES permits as they come up for renewal.

7
Chesapeake Bay Tributary Strategy Steering
Committee

• Established in response to General Assembly
  Resolutions to impose a 9 month moratorium on
  implementing PA Chesapeake Bay Tributary Strategy
• House 12/14/05 Senate 1/3/06
• Five meetings since January 2006
• Six Workgroups also meeting to feed issues to
  Steering Committee
• Nutrient Trading
• Point Source
• Agriculture
• Legacy Sediment
• Stormwater
• Development

8
Alternate Point Source Proposal

• Significant Facilities Cap Load Allocation
  based on Design Flow at 6 mg/l TN and 0.8 mg/l TP
• 3-phase 10 year strategy
• Cap load met in first 5 year phase. 60 plants
• Phase 2 (50 plants) 3 (70 plants) to maintain
  the cap load into the future as systems approach
  design capacity
• Nonsignificant Cap Load Allocation based on
  Design Flow at 8 mg/l TN and 1 mg/l TP
• 0.2 mgd to 0.4 mgd first

9
Bond Money for Sewer Infrastructure and Nutrient
Reduction Technology

• Act 218 -- 2004 provides 250 million in new bond
  money for sewer and water infrastructure
• 200 million directed to upgrade, rehabilitate,
  and expand wastewater and water supply systems
  connected to economic development projects with
  priority to brownfields
• 50 million in grant funds to finance Nutrient
  Reduction Technology installation and to address
  combined Sewer Overflows and Sanitary Sewer
  Overflows.
• March 2006 Awards for Act 218 bond money and
  low-interest PENNVEST loans
• 12 communities receive 32.6 million for nutrient
  reduction technology activities
• Growing Greener Innovative Technology Grants 5
  million/year
• Growing Greener II funding

10
Nonpoint Source Reductions

• How do we address the remaining Nonpoint source
  reductions 86 N and 78 P ?

11
Nonpoint Source Reductions
12
Nonpoint Source Reductions
13
Nonpoint Source Reductions
14
Conservation Leadership Team Meetings

• WHO? DEP, State Conservation Commission, PA
  Association of Conservation Districts, PA NRCS
• WHEN? Monthly Meetings
• WHAT?
• NRCS Work Load Analysis Coordinate staffing
  between Agency and Conservation District
• Engineering Resources Re-allocation
• Conservation District Financial Assistance
  Program Agricultural Conservation Technicians
• New BMP Development
• GIS Coordination/ EPA NEIN Grant/ BMP Tracking

15
County Implementation Plans

• Counties encouraged to develop Implementation
  Plans to support PA Tributary Strategy to be
  eligible for CBP Implementation Grant BMP funds.
• Guidance provided for priority BMPs including
  Cover Crops, No-Till, Precision Ag, etc.
• Process replaces the BMP Allocation Committee
  dominated by Conservation Districts which favored
  expensive manure storages.
• Funding sources to support the Plan not limited
  to CBP funds. Include other programs such as
  EQIP, CREP, and Growing Greener.
• Priority for Growing Greener and other grant
  programs given to applications supported by a
  County Implementation Plan.

16
DEP Regional Office Reorganization

• New Watershed Assessment and Planning Program
  established. Provides coordination for Nonpoint
  Source Programs.
• Watershed Managers review grant applications for
  consistency with PA Tributary Strategy and County
  Implementation Plans.
• Funding Programs CBP Implementation Grant
  Growing Greener, 319 Nonpoint Source Grant,
  National Fish Wildlife Foundation Chesapeake
  Bay Watershed Grants. Applicants directed to
  most appropriate program.

17
Growing Greener II

• Since 2000, Growing Greener has provided funding
  to preserve farmland and protect open space
  cleanup abandoned mines and restore watersheds
  and provide new upgraded water and sewer systems.
• To date 439 projects and over 55 million have
  been funded in PAs portion of the Bay watershed.
• On July 13, 2005, Governor Rendell signed Growing
  Greener II, a voter-approved plan that invests
  625 million over 6 years.
• Plan is financed by permanently extending the
  4.25 already paid in current Growing Greener
  tipping fees on each ton of waste deposited in
  Pennsylvania landfills. An additional 2 tipping
  fee to finance recycling programs remains in
  place through 2008.

18
Growing Greener II

• 230 million to DEP to clean up rivers and
  streams address environmental problems at
  abandoned mines and contaminated industrial
  sites and finance the development and deployment
  of advanced energy projects.
• 217.5 million to DCNR to preserve natural areas
  and open spaces improve state parks and enhance
  local recreational needs.
• 80 million to the PDA to protect working farms.
• 50 million to the DCED to revitalize communities
  through investments in housing and mixed-use
  redevelopment projects.
• 27.5 million to the PFBC to repair fish
  hatcheries and aging dams.
• 20 million to the PGC for habitat-related
  facility upgrades and repairs.

19
Conservation Reserve Enhancement Program (CREP)

• PA expanded CREP to all counties in Bay watershed
  in 2003
• With expansion of CREP to the Ohio River basin in
  2004, PA has the largest CREP program in the
  nation, covering 265,000 acres in 59 of 67
  counties
• Pennsylvania spent 132 million in state funds to
  leverage another 54 million since 2001. That's
  close to 200 million in five years.
• PA targets DEP cost-share funding to riparian
  forest buffers, wetlands and natural revegetative
  buffers.

20
Conservation Easement For Riparian Buffers

• Riparian buffers are an important component of
  PAs Tributary Strategy 10,000 miles
• PA is developing a Conservation Easement Program
  to protect riparian buffers in perpetuity
• DEP worked with DCNR and the Pennsylvania Land
  Trust Association to develop a model easement
  with guiding commentary for forest riparian
  buffers

21
Agriculture, Communities Rural Environment
(ACRE)

• In 2004 Governor Rendell proposed a new farm
  management initiative that is broader than
  federal regulations. ACRE legislation signed
  July 6, 2005.
• Farming operations required to implement nutrient
  management will increase from 810 to 5210
• Will increase permitted CAFOs from 160 to 340
• Requires farms importing manure to have nutrient
  balance sheets written agreements with
  exporters
• Focuses on water quality problems in
  agriculturally impaired watersheds
• Mandatory 100 ft. manure application setback or
  35 ft. vegetative buffer along streams for CAOs,
  CAFOs their import sites
• New and expanding CAFOs and CAOs to implement
  BMPs to relieve odor problems
• Up to 13 million in new and existing resources

22
Energy Harvest Grant Program

• Program funds clean and renewable energy and
  projects that improve air quality, protect
  watersheds and preserve land
• Eligible proposals include renewable energy
  development, biomass energy projects, waste coal
  reclamation for energy, demonstration of
  innovative energy technologies, manure digesters
  and other clean or distributed generation
  projects
• Since 2003, the Program has awarded 10 million
  and leveraged 26.7 million in private funds
• Example projects include 360,000 for a truck
  stop electrification project, 25,500 for an
  anaerobic digester in Punxsutawney and 326,000
  for an anaerobic digester in Perry County.

23
Clean Energy Portfolio Standard

• Enacted in 2004, PAs Alternate Energy Portfolio
  Standard ensures that in 15 years, 18 percent of
  all energy in PA comes from clean, efficient
  sources
• As proposed would annually avoid about 21
  thousand tons of nitrogen oxides.
• Promotes small scale local projects, such as farm
  bio-digesters, which can provide an return of
  investment for the owners.
• Can work in concert with existing BMPs to reduce
  discharges to local waterways.

24
First Industries Fund

• The Agriculture Program provides 100 million for
  grants and loans to businesses and non-profit
  organizations for projects that promote and
  develop agriculture.
• Eligible projects include Energy-related
  activities impacting production agriculture or
  agribusiness and Best Management Practices
  related to agricultural waste, waste products and
  byproducts, or fertilizer. 
• Grants up to 250,000 to fund predevelopment and
  feasibility studies.  Loans up to 500,000 for
  costs associated with agriculture and
  agriculture-related projects.  Loan guarantees up
  to 2.5 million or 50 percent of their
  outstanding project costs, whichever is less.
• PDA coordinates with DEP to ensure projects are
  not duplicated or lack merit.

25
Nonpoint Source Funding

• In 2004 alone, the total funding of these
  programs was approximately 75 million
• CREP
• Growing Greener I and II
• DEP Stream Bank Fencing Program
• DEP Stream Improvement Program
• DEP Chesapeake Bay Financial Assistance Funding
• DEP Stormwater Management Program
• EPA Chesapeake Bay Small Watershed Grants
• EPA Chesapeake Bay Implementation Grant
• EPA Nonpoint Source 319 Program
• USDA Environmental Quality Incentives Program
• USDA Conservation Resource Program
• Ducks Unlimited Partnership Program

26
2005 State Funding to support Agriculture Water
Quality Initiatives

• PA Nutrient Management Act
• BMPs 1,345,000
• Cons. District Tech. Assistance 2,290,000
• CBP Implementation Grant State Match
• Cons. District Technical Eng.
  Assist. 2,060,000
• Cons. District Staff Support
• Biosolids Tech. Assist. 140,000
• Agricultural Conservation Technicians
  750,000
• Ag Land Preservation 388,000
• Growing Greener and Energy Harvest 13,164,473
• Section 319 State Match 184,000
• Cons. District Watershed Specialists
  988,988
• TOTAL 19,020,471

27
2005 Conservation Innovation Grants

• Precision Dairy Feeding to Reduce Nutrient
  Pollution In Pennsylvanias Waters and the
  Chesapeake Bay
• 440,616 grant to PA Chesapeake Bay Foundation
• Environmentally Sensitive Maintenance on Ag
  Access Roads to Eliminate Nutrient and Sediment
  Pollution in the Kishacoquillas Valley Watershed
• 215,433 grant to Mifflin County Conservation
  District
• Horse Drawn No-Till Planter for Plain Sect
  Farmers
• 10,700 grant to Chester County Conservation
  District
• Planting Alternative Dairy Forages
• 9,265 grant to Brian Brake

28
2005 Chesapeake Bay Small Watershed Grants PA
1.1 million

• Community Legacy Grants
• CBF, Lower Susq. Watershed Partnership,
  South-Central PA, 100,000. Partner
  Contributions 664,447
• ClearWater Conservancy, McCoy-Linn Dam Removal,
  Habitat Restoration and Public Access, Centre
  County, 100,000. Partner Contributions
  223,6000
• American Farmland Trust, Conservation Incentives
  for Enhanced Nutrient Management, Lancaster and
  Blair Counties, 85,000. Partner Contributions
  85,300
• Chesapeake Bay Small Watershed Grants - PA
• 848,000 for 27 grants leveraging 3.4 million in
  Partner Contributions

29
2006 Chesapeake Bay Targeted Watershed Grant

• Regional Nutrient Use Efficiency in the Lower
  Susquehanna River Basin
• 582,500 grant to Environmental Defense
• Partner contributions 260,600
• Reduce annual nitrogen loads by 2 million lbs.
  from 42,000 acres
• Park the Plow for Profit A Continuous No-Till
  Transition Program
• 800,000 grant to PA DEP
• Partner Contributions 847,5000
• Reduce annual nitrogen load by 99,000 lbs. from
  12,750 acres
• Paxton Creek Watershed Stormwater Management
  for PA Communities
• 725,000 grant to Susquehanna River Basin
  Commission
• Partner Contributions 735,800
• Treat runoff from over 30 acres and restore 4,000
  ft. of stream corridor

30
Stormwater Management

• PA DEP adopted the Comprehensive Stormwater
  Management policy in October 2002. Requires land
  development to implement permanent stormwater
  BMPs as part of NPDES permit. Policy links Act
  167 stormwater management planning program with
  federal NPDES MS4 program.
• Revised NPDES permit forms require reporting of
  post-construction stormwater BMPs for all land
  development greater than 1 acre.
• Stormwater management BMP manual to be completed
  in 2006 will include LID BMPs and address
  impediments at the local level.  
• New Stormwater Model Ordinance under development.

31
Stormwater Management Act of 1978 (Act 167)

• Requires counties to adopt a watershed stormwater
  management plan for each watershed located in the
  county in consultation with the municipalities
  located in each watershed
• Municipalities required to adopt ordinances to
  implement the plan.
• DEP reimburses 75 of costs to county and
  municipality
• 1.2 million annual appropriation

32
Act 167 Progress in Bay Watershed

• 398 of 1189 Municipalities are involved in 18 Act
  167 watershed plans
• 14 counties interested in completing county-wide
  Act 167 projects.
• 693 Municipalities after Projected County-Wide
  Plans (60)
• 21 more Act 167 watershed plans are on the
  extended forecast
• 36 of 43 counties are involved in at least one
  Act 167 watershed plan
• 1985 2006 308,700 acres covered by Act 167
  plans reported to Bay Watershed Model

33
Act 167 Compliance and Enforcement Priorities

• 189 Municipalities are past due to enact
  ordinances
• Compliance and Enforcement Policy
• DEP helps resolve issues with ordinances (if any)
• Coordination with Regions has begun
• Watersheds / Counties
• Past due submission after public hearing
• Priorities will be established for watersheds and
  counties

34
NPDES MS4 Permitting

• Now in the third year of program
• In Chesapeake Watershed
• 277 Municipalities are designated MS4s
• 255 have MS4 Permits (or waivers)
• Enforcement is in progress
• DEP Reviews
• Applications, Annual Reports, MS4 Ordinances
• PENNDOT and PA Turnpike Commission have
  state-wide permits.
• Development of 2008 permit is in progress
• Improve structure / content
• Expect to see requirements for improvement of
  storm water quality

35
Nutrient Trading Policy

• October 1, 2005 - A Nutrient and Sediment
  Reduction Credit Trading Interim Final Policy and
  Guidelines published in the Pennsylvania
  Bulletin.
• This interim policy may be used to initiate
  trades and will be issued final after
  consideration of public comments.
• Comments were collected until December 31st.
• A comment-response document will be drafted and a
  revised final trading policy will be issued.
  Timeframe for this however will depend on the
  work of the various workgroups.

36
What is Nutrient and Sediment Trading?

• Nutrient and sediment trading is an approach to
  improve water quality using market mechanisms to
  produce pollutant reductions at lower costs.
• The voluntary trading program is an option for
  point or non-point sources that exceed their
  environmental obligations to earn credits that
  may be sold to others who desire nutrient
  reduction credits.
• The program may be used by
• point sources to comply with a new permitted
  nutrient limit
• nonpoint sources to implement additional BMPs
  that help reduce nutrient loadings

37
The program may be used by

• Point sources to comply with a new permitted
  nutrient limit
• Nonpoint sources to implement additional BMPs
  that help reduce nutrient loadings or
• Third parties that need to meet nutrient limits.

38
Trading and Usage of Credits Must be Consistent
with

• Clean Water Act
• Clean Streams Law
• All Federal and State laws
• Local Laws and Regulations

39
What May Be Traded?

• Total phosphorous and/or total nitrogen reduction
  credits
• Sediment reduction credits
• All trading must involve comparable credits
  (nitrogen for nitrogen)

40
Where Trading May Occur

• Defined Watershed (e.g. Susquehanna or Potomac)
• Defined area with TMDL approval
• And / or other DEP-approved areas resulting from
  commitments such as the Chesapeake Bay Agreement

41
Thresholds of Eligibility For Credit Generation

• Point Source
• Discharge loading limit expressed in an NPDES
  Permit.
• Nonpoint Source
• Policy
• (1) An approved and implemented nutrient
  management budget for nitrogen and phosphorous
• And,
• (2) A minimum of a 100 foot set back for manure
  application or (minimum) 35 foot vegetative
  buffer

42
Thresholds of Eligibility For Credit Generation
(Continued)

• Nonpoint Source
• New (being considered)
• Must be in baseline compliance (applicable
  nutrient management requirements) and have
  implemented 20 additional reductions. Trades
  occur at a 21 ratio until 60 reduction
  achieved, then trades occur at a 11 ratio.
• For a non-CAO or non-CAFO farm, must be beyond
  baseline, by either a 20 reduction in nutrients
  OR the establishment of a 35 buffer.

43
Quantification and Application of Credits

• Point Source
• Credits calculated through
• Monitoring requirements in NPDES permit
• If not listed in NPDES permit, contact DEP
• Nonpoint Source
• Credits calculated through
• Mass balance methods (preferred)
• Information from sources such as Chesapeake Bay
  Model
• Other measurement methods acceptable to the DEP
  (e.g. monitoring)

44
Trading Ratios

• When calculating credits, trading ratios must be
  considered and used as appropriate.
• Ensure trading is providing desired level of
  pollutant reduction and other water quality
  benefits.

45
Application of Credits

• DEP may elect to establish a reserve pool of
  credits that would be available to compensate for
  unanticipated shortfalls in quantity of credits
  that are actually maintained.

46
DEP will be responsible for

• Oversight and management of the Pennsylvania
  nutrient and sediment reduction credit program.
• Policy Decisions on issues such as
• Eligibility
• Credit certification
• Verification
• Compliance (monitoring and enforcement)
• May elect to delegate responsibility to Third
  Parties (audits and credit verification).

47
Recent Trading Grant AwardsTOTAL 1.8 MILLION

• Strawman Project Implementation - 225,000
  Dauphin, Bradford and Chester Districts
• To implement the Strawman process for assembling
  and certifying nutrient load reductions for
  initial credits sold through DEPs exchange
• 75,000 grants - 25,000 for assembling and
  certifying load reductions and 50,000 for a
  credit generating BMP implementation revolving
  fund. Income from credit sales will be used in
  part to replenish the fund.

48
Recent Trading Grant Awards

• Local Trading Project Initiatives - 350,000
  Lancaster and Cumberland Districts
• To support development and implementation of
  locally initiated trading project proposals.
• Lancaster - 150,000 Mt. Joy Borough has proposed
  a local project that will generate nutrient load
  reductions through implementation of BMPs of area
  farms and other community projects to offset
  treatment requirements at the Borough STP.
• Cumberland - 200,000 The Cumberland County
  Planning Commission has proposed a local trading
  initiative to implement BMPs on county ag land
  preserved farms to generate credits that will be
  available to point source dischargers and
  developers in the county who need them.

49
Recent Trading Grant Awards

• Credit Generating BMP Implementation Revolving
  Fund Grants - 450,000 9 Districts
• To initiate revolving funds in conservation
  districts for implementation of credit generating
  BMPs. Credit income will be used in part to
  replenish the funds. Credits may be sold through
  the DEP exchange or directly by the districts.
• Grants range from 37,500 to 61,500

50
Recent Trading Grant Awards

• ACRE Ag Compliance Projects - 775,000 21
  Districts
• For district projects to improve agricultural
  compliance rates with environmental program
  requirements. This is in response to the ACRE
  commitment to do more to assure compliance with
  existing requirements. Each district has
  developed its own approach to improving
  agricultural compliance in their county. These
  projects will help to identify and build
  understanding of compliance requirements while
  identifying operations that could participate in
  trading opportunities.
• Districts received a maximum of 50,000 to
  support development and implementation of their
  projects. One grant is to a group of districts
  that will result in standard tools to help
  farmers understand and comply with the
  requirements.

51
Recent Trading Grant Awards

• Legacy Sediment Research - 130,000 FM College
  
• Priming the Pump With Nutrient Credits
  Generated From Chesapeake Bay Stream Bank Fencing
  Projects
• 300,000 provided per year
• Bay Field Reps offer Landowner Trading agreements
  to SBF landowners and report executed contracts
  to the Trading Coordinator

52
Key Issues

• Agriculture Baseline, Threshold and
  Quantification
• Point Source Allocation Strategy and 537 Issues
• Process and flow of the Program

53
Recent Activities

• Priming the Pump
• Grant recipients are beginning to go out and get
  land owners under agreement for the sale of their
  reduction credits generated from implemented
  BMPs.
• Proposals
• 7 proposals have been submitted to DEP looking to
  generate credits.
• These are still currently being reviewed.
• Trades
• There have been no trades as of today.