1. Pennsylvania’s 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
PA’s Potomac provides an additional 2% of the Bay’s freshwater flow
New York
Pennsylvania
About half of the water volume in the Bay is salt water from the Atlantic Ocean. The other half drains into the Bay from an enormous 64,000 square mile drainage basin or watershed.
Ninety percent of this fresh water is delivered from five major rivers: the Susquehanna (which is responsible for about 50% just by itself), the Potomac, the James, the Rappahannock and the York.
The Bay's watershed includes parts of six states: Delaware, Maryland, New York, Pennsylvania, Virginia and West Virginia, as well as the entire District of Columbia.
If you are one of the 15 million people who live in the watershed, then the Bay starts in your backyard!
Everyone in the watershed lives just a few minutes from one of the more than 100,000 streams and rivers that drain into the Bay. Each of these tributaries can be considered a pipeline from your community into the Bay and its rivers.
Because things on land are easily washed into streams and rivers, our actions on land ultimately affect the Bay. These activities even include using cars, fertilizers, pesticides, toilets, water, and electricity.
To restore the Bay, we have to be concerned about what we do in our own communities, homes, and backyards.
The landscape which comprises the Bay watershed is made up of many interconnected basins, or watersheds. Within each watershed, all water runs to the lowest point - a stream, river or the Bay. On its way, water travels over the surface and across farm fields, forest land, suburban lawns, and city streets, or it seeps into the soil and travels as ground water. Large watersheds like the Chesapeake Bay are made up of many smaller watersheds across several states.
Maryland
Delaware
West
Virginia
District of Columbia
Chesapeake Bay Watershed Boundary
Virginia

3. PA Chesapeake Basin Projected Nutrient Source Loads Based on Reported 2002 Implementation
Nitrogen
Phosphorus
Landuse 7%

4. PA Goals Cap Goal 1985 2004 Reduc-tions TN 71.9 120.1 106.6 34.7 TP
(Mill. Lbs.)
71.9
120.1
106.6
34.7 TP
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 > 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 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 BMP’s 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 PA’s 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 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 PA’s 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 CAFO’s 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 CAO’s, CAFO’s & 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, PA’s 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 Pennsylvania’s 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 Requires land development to implement permanent stormwater BMP’s 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 BMP’s 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, 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 2:1 ratio until 60% reduction achieved, then trades occur at a 1:1 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
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 Awards TOTAL: $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 – F&M 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”: Proposals: Trades:
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.