Request Approval of the Tar-Pamlico Phase IV Agreement Environmental Management Commission July 9, 2015 John Huisman DWR Nonpoint Source Planning Branch

Agreement Basics Nutrient control Agreement for Tar-Pam point sources Initiated 1990 in response to Tar-Pam NSW designation “Association” of point sources formed Novel cost-effective option to reduce collective discharge Collective annual end of pipe N&P caps based on performance goals: 30% Reduction N No increase in P Relative to 1991 Baseline Association funds Ag Cost Share BMPs if cap exceeded Current Offset Rate $13.15/lb N

Agreement Performance Association remains successfully below caps to date Loads as of 2014 73% of Nitrogen Cap 57% of Phosphorus Cap Agreement part of overall management strategy Initial voluntary NPS strategy adopted in rules effective 2000.

Parties to the Agreement Phase I Parties Association, Division, EMC, DSWC, Enviros Phase IV Parties Association, Division, EMC, DSWC Enviros (PTRF & EDF) declined to sign on to Phase IV Allocation Concerns Evaluation of Progress All parties will continue to remain engaged in process

Tar-Pam Basin Association Members (Phase IV) Belhaven Bunn Enfield Franklin W&S Authority Greenville Utilities Louisburg Oxford Pinetops Robersonville Rocky Mount Scotland Neck Spring Hope Tarboro Warrenton Washington Creedmoor

Phase IV Agreement Phase IV timespan = 10 years May 2015 - May 2025 Big Change: Incorporated individual allocation / limits Response to EPA Group and individual permits Individual limits enforceable if group cap exceeded Also added Creedmoor Joined Association in 2014 Remains serviced by SGWASA (Neuse Basin) Over the course of Phase III DWR met with parties to address refining the Agreement.

Phase IV Agreement Resolved how banked credit can be used Ag BMP banked credits always available as offsets Gage credit used toward just 10% of any offset Established Process to update N and set P rate Based on total actual costs of BMPs Offset rates updated by 2017 Revised Non-Association Recommendations Refers to ongoing rules re-adoption process Over the course of Phase III DWR met with parties to address refining the Agreement.

Phase IV Agreement Evaluation of Progress Section - Advisory Points to Basin Plan “Action Plan” for specifics Rules re-adoption implements some Action Plan items Revised Termination of Agreement Members subject to permit nutrient requirements DWR to evaluate need for point source rulemaking Over the course of Phase III DWR met with parties to address refining the Agreement.

Action Requested Staff requests the approval of the Phase IV Agreement

Questions?