1. Regulatory Reform Act (SL 2013-413) Periodic review and expiration of existing rules NC Environmental Management Commission Water Quality Committee May 7, 2014 Kelly Williams Ecosystem Enhancement Program

2. Request For Subchapter 02R To go to EMC in July for approval to proceed to public comment with rules review Return to WQC in November with update Return to EMC in January for approval on Final Report to the RRC

3. In-lieu Fee Mitigation Programs EEP ILF FAQ

4. EEP Services Statewide Stream & Wetland ILF Program NCDOT Stream & Wetland ILF Program Riparian Buffer Mitigation Program Nutrient Offset Program

5. EEP Services Statewide Stream & Wetland ILF Program

6. EEP ILF FAQ In-lieu Fee Mitigation Programs Solutions for the development community

7. EEP Customers ABC, Ace Hardware, Advance Auto Parts, Agri Supply, Aldi, Applebee’s, Apple, AT&T, Auto Zone, Bank of America, BB&T, BellSouth, Bojangle’s, Carabba’s, Coastal Mini Storage, Cook- Out, Costco, Crescent State Bank, CVS, Dollar General, Dunkin Donuts, Duty Tire, East Carolina Bank, Embassy Suites, Fairfield Inn, FedEx, Gregory Poole, Hampton Inn, Hendrick Cadillac, Holiday Inn, Hyatt Hotel, IBM, Ingles, KFC, Lowe’s Home Improvements, Lowe’s Foods, Martin Marietta, McDonalds, Microtel, News and Observer, North Hills East, North State Bank, Olive Garden, Outback Steakhouse, Pepsi, Piedmont Town Center, Pizza Hut, Piedmont Natural Gas, Polo Ralph Lauren, Precision Tune, Quarles Petroleum, Quintiles, State Employees Credit Union, Sheetz, Sleep Inn, Stanley Steamer, Steak N’ Shake, Super Express Lube, TGI Fridays, Triangle Town Centre, Umstead Hotel, US Fleet Fueling, Verizon, Vulcan, Waffle House, Walgreen’s, Wendy’s, WalMart, Wilco Hess

8. EEP ILF FAQ In-lieu Fee Mitigation Programs Solutions for the development community Watershed planning process Collaborate with partners and stakeholders

9. Support environmentally responsible economic development Provide compensatory mitigation for stream, wetland, buffer and nutrient offsets Focus mitigation projects where greatest environmental returns will be realized Maximize mitigation investments to the benefit of the state’s natural resources EEP Roles NCEEP’s mission: to provide cost-effective mitigation alternatives that improve the state's water resources.

10. EEP Status Projects nearly 600 projects statewide Credits mitigation credits in advance: ~ 800,000 Stream ~10,000 Wetland (over 85% beyond construction phase) Success wetland & stream program > 98%

11. 15A NCAC 02R.0100 Purpose & Definitions.0200 Basinwide Restoration Plans.0300 Compensatory Mitigation.0400 Ecosystem Restoration Fund

12. RRC Report Example

13. 15A NCAC 02R Rule CitationRule TitleProposed Initial Determination 15A NCAC 02REcosystem Enhancement Program Necessary with substantive public interest

14. Public Comment Website http://rulesreview.ncdenr.gov

15. 02R Rules Review Schedule May 2014- Initial determinations approved by WQC July 2014- Seek approval from EMC July - September 2014- Public comment period November 2014- Status update to the WQC January 2015- Seek final approval from EMC March 15, 2015- Report due to RRC April 2015- RRC Approval After that- Final determinations effective after APO consultation Then- Re-adopt rules in accordance with APA

16. Contact Information Kelly Williams ILF Program Coordinator Ecosystem Enhancement Program, DENR kelly.williams@ncdenr.gov Or Jim Stanfill Asset Management and Reporting Supervisor Ecosystem Enhancement Program, DENR jim.stanfill@ncdenr.gov EEP Main #: 919-707-8976 http://portal.ncdenr.org/web/eep

18. Review Process 1. Agency determination Initial determination and public comment period 2. Rules Review Commission (RRC) review Reviews agency’s report and makes final determination 3. Administrative Procedure Oversight (APO) Committee consultation Opportunity to review final determination

19. Step 1-Agency’s Determination  Initial Determination Necessary with substantive public interest ○ Received public comments within past 2 years ○ Affects property interest of regulated public ○ Agency knows or suspects of objection to the rule Necessary without substantive public interest ○ No public comment within past 2 years ○ Includes rules that just identifies information (address, phone number) Unnecessary ○ Obsolete, redundant or otherwise not needed  Public interest is defined Any written comments objecting to the rule, in whole or in part from any member of the public (includes associations or organizations)

20. Step 1 Continued  Public Comment For at least 60 days ○ Comments on determination and rules ○ Comments submitted on the web  Agency reviews and responds  Agency submits report to RRC Initial determination All comments received Response to comments

21. Steps 2 and 3  Step 2 RRC review Reviews report and public comments to determine if rule has been classified correctly Submits final determination report to APO Committee  Step 3 APO consultation Final determination does not become effective until APO consultation Have 60 days to review

22. Determinations Unnecessary Rule will expire and be removed from code Necessary without substantive public interest Rule will remain in effect without further action Necessary with substantive public interest Rule shall be readopted as if it was new in accordance with APA