2024_2025 DMS Annual Report-FINAL_LF

DMS-WIDE
DMS-WIDE
Appendices
APPENDICES
Riparian BUFFER MITIGATION ILFPROGRAM
RIPARIAN BUFFER
MITIGATION ILF
PROGRAM
NUTRIENT OFFSET ILF PROGRAM
NUTRIENT OFFSET
ILF PROGRAM
NCDOT STREAM WETLAND ILFPROGRAM
NCDOT STREAM &
WETLAND ILF
PROGRAM
STATEWIDE STREAM Wetland ILFPROGRAM
STATEWIDE STREAM &
WETLAND ILF
PROGRAM
Regulatory Addendum
REGULATORY
ADDENDUM
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MISSION: To provide cost-effective mitigation alternatives that improve the state's water resources.
Flood Mitigation and Planning
FLOOD MITIGATION
AND PLANNING
Executive Summary
In fiscal year (FY) 2024-2025, the NC Division of Mitigation Services (DMS):
▪Assisted the North Carolina Department of Transportation (NCDOT) in obtaining permits for 65 transportation
projects by providing 39,659.000 stream mitigation credits and 36.611 wetland mitigation credits.
▪Assisted customers with 189 development projects in the Statewide Stream and Wetland, Riparian Buffer, and
Nutrient Offset In-Lieu Fee (ILF) Programs by providing:
▪37,040.000 stream credits
▪36.813 wetland credits
▪7,453,468.500 credits of buffer mitigation (equivalent to 171 acres of buffer restoration)
▪10,322.805 pounds of nitrogen reduction
▪5,969.540 pounds of phosphorus reduction (another increase over previous years)
▪Natural Infrastructure Flood Mitigation Program (NIFMP):
▪Completed hydrologic and hydraulic modeling of the Stoney Creek watershed (Neuse River basin). Modeling shows existing
conditions and future conditions after implementation of flood mitigation projects.
▪First two projects in the Stoney Creek Pilot Project are underway.
▪Completed project to map and model Carolina Bays to determine flood mitigation potential.
▪Statewide Flood Resiliency Blueprint:
▪Released a beta version of NC Flood Resiliency Blueprint Tool (Blueprint Tool) and held technical trainings for partners and
contractors working on the Blueprint. A more refined Blueprint Tool is scheduled for release in Fall 2025.
▪Phase III is underway to develop River Basin Action Strategies (RBAS) in five additional river basins (Cape Fear, French Broad,
Lumber Tar-Pamlico, and White Oak River basins).
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Division of Mitigation Services
2024-2025 Annual Report
DMS Program-Wide
The FY 2024-2025 DMS annual report fulfills statutory and regulatory
reporting requirements as detailed in the 2010 NCDEQ – DMS In-Lieu Fee
(ILF) Instrument governing in-lieu fee programs for stream & wetland
mitigation and the Federal Rules in 33 CFR Parts 325 and 332 & 40 CFR Part
230, and North Carolina G.S. §143-214.13.
DMS operates four ILF programs:
▪NC DOT Statewide Stream and Wetland ILF
▪Statewide Stream and Wetland ILF
▪Riparian Buffer ILF
▪Nutrient Offset ILF Program
DMS also implements Flood Mitigation and Planning.
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Division of Mitigation Services
2024-2025 Annual Report
▪During FY 2024-2025, the State Property Office closed 36
conservation easement transactions totaling 662.187 acres
associated with DMS’s projects.
▪All properties that closed during FY 2024-2025 are shown in
Appendix A-1.
▪A full inventory of all properties associated with DMS
projects acquired to date is presented in Appendix A-2.
▪More than 81,795 acres of conservation land or
conservation easements have been acquired by DMS and
partners to date.
▪Full lists of DMS projects are in Appendices A-3, A-4,
A-5, and A-6.
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Division of Mitigation Services
2024-2025 Annual Report
Recent credit costs were summarized by analyzing full delivery contracts and mitigation
bank purchases awarded over the last three fiscal years. The data includes project
contracts, administrative costs, overhead, and other costs required to complete these
projects. The program rates for the last three years are also summarized.
*DMS did not purchase any Freshwater Wetland (Non-riparian) mitigation credits from mitigation banks.
**DMS did not implement any Coastal Marsh wetland projects in the last three fiscal years or purchase any Coastal
Marsh wetland mitigation credits from mitigation banks. Mitigation banks did not offer Coastal Marsh wetland
mitigation credits in the annual submittal.
***Program rates are set using the Actual Cost Method, which is a full cost accounting method and may result in
premium rates in higher-cost watersheds. The program rates above were in effect for SFY 2024 – 2025.
Program Costs
Division of Mitigation Services
2024-2025 Annual Report
Mitigation Credit Type Range of Recent Mitigation Credit
Purchases Costs Per Credit Program Rates***
Stream $665.00 to $725.00 $738.84
Freshwater Wetland (Riparian)$53,786.92 - $120,000.00 $76,838.45 to $157,232.90
Freshwater Wetland (Non-riparian)$0.00*$76,838.45 to $157,232.90
Coastal Marsh Wetland $0.00**$757,898.35**
Riparian Buffer $0.89 to $4.25 $1.30 to $6.01
Nutrient Offset Nitrogen $19.00 $11.97 to $149.97
Nutrient Offset Phosphorus $170.00 $181.15 to $345.84
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Reporting requirements of G.S. §143 214.13 require DMS to compare project costs with
private mitigation bank rates. For this analysis, DMS used the actual submitted prices for
mitigation bank credits from requests for bids in the last fiscal year. A complete list of
purchased bank credits during 2024-2025 are listed in Appendix B.
MITIGATION TYPE RANGE OF BANK PRICES PER CREDIT
Stream Mitigation Credits $480.25 to $850.00
Freshwater Wetland (Riparian) Mitigation Credits $43,500.00 to $133,554.22
Freshwater Wetland (Non-Riparian) Mitigation Credits $43,500.00 to $105,000.00
Coastal Marsh Mitigation Credits None Submitted
Riparian Buffer Mitigation Credits $0.89 to $7.75
Nitrogen Offset Credits $9.57 to $377.19
Phosphorus Offset Credits $135.00 to $615.00
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Cost Analysis
of Private Mitigation Banks
Division of Mitigation Services
2024-2025 Annual Report
Advance Credits
DMS’s ILF mitigation instrument allocated
advance credits by river basin and eight-
digit cataloging units. Pursuant to this
operating agreement, this annual report
includes a summary of the status and use
of “Advance Credits” as defined by federal
rules in Appendix C.
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Division of Mitigation Services
2024-2025 Annual Report
Mitigation Losses and Gains
G.S. §143-214.13 requires DMS to document statewide wetland losses and gains and
compensatory mitigation performed under G.S. §143-214.8 through G.S. §143-214.12. The
data below have been provided by the Division of Water Resources (DWR*) and reflect
permitting by the Department of Environmental Quality (DEQ). The remainder of this report
documents DMS compensatory mitigation. Complete lists of DMS mitigation requirements
and assets are provided in the Regulatory Addendum.
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DWR Fiscal Year 7/1/2024 through 6/30/2025
Streams (Linear Feet)YTD
Lost from permitting 49,012
Gained from permitting (mitigation)21,288
Wetlands (Acres)YTD
Lost from permitting 95,75
Gained from permitting (mitigation)63.12
Riparian Buffers (Acres)YTD
Lost from permitting 75.14
Gained from permitting (mitigation)33.85
Division of Mitigation Services
2024-2025 Annual Report
* The above data is from the DWR database only. Due to permit processes, mitigation and impacts may not (usually do not) occu r in the same reporting period. Data may include
impacts to resources that do not require mitigation (under required thresholds, for example). Due to versions and revisions, different versions of the same project may occur in the
same reporting period causing a double calculation of impacts. As of May 4, 2017, the stream mitigation threshold requirements changed. Only impacts 300 lf or greater of
perennial stream require mitigation. As of June 15, 2020, the wetland mitigation threshold requirements changed. Impacts 0.10 acre or greater of wetlands require mitigation.
Mitigation required by U. S. Army Corps of Engineers (USACE) applicable to permitted impacts is not tracked by DWR.
DMS Program Fiscal Summary
FY 2024-2025 fund status detail for each of the DMS ILF programs.
NCDOT
Stream &
Wetland ILF
Program
Statewide
Stream &
Wetland ILF
Program
Riparian
Buffer ILF
Program
Nutrient
Offset ILF
Program
Flood
Resiliency
Blueprint
Natural
Infrastructure
Flood
Mitigation
Program
Beginning Cash $6,293,236.23 $122,825,573.62 $13,610,434.04 $10,174,547.54 $17,004,734.09 $7,783,850.42
Revenues $21,428,505.40 $38,418,047.76 $10,725,420.18 $3,189,764.89 $14,757,301.00 $0
Expenditures $24,014,819.22 $26,914,283.94 $ 2,656,123.62 $1,469,315.92 $30,403,841.72 $595,771.70
Ending Cash $3,706,922.41 $134,329,337.44 $21,679,730.60 $11,894,996.51 $1,358,193.37 $7,188,078.72
Equity Index Fund $0 $2,158,558.17 $0 $1,323,271.98 $0 $0
Bond Index Fund $0 $722,270.73 $0 $442,974.46 $0 $0
Ending Cash and
Cash Equivalents $3,706,922.41 $137,210,166.34 $21,679,730.60 13,661,242.95 $1,358,193.37 $7,188,078.72
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Division of Mitigation Services
2024-2025 Annual Report
Flood Mitigation and Planning
DMS’ newest mission is to identify and reduce flood risks through flood
resiliency planning and the implementation of natural infrastructure projects.
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Division of Mitigation Services
2024-2025 Annual Report
NIFMP FUND STATUS
NIFMP
FUND STATUS
BLUEPRINT FUND STATUS
BLUEPRINT
FUND STATUS
Flood Resiliency BluePrint
FLOOD RESILIENCY BLUEPRINT
Natural Infrastructure Flood Mitigation program
NATURAL INFRASTRUCTURE
FLOOD MITIGATION PROGRAM
Natural Infrastructure Flood Mitigation Program (NIFMP)
•The NIFMP seeks to mitigate flooding using natural infrastructure and constructed systems that mimic
natural processes. These systems can include strategies like building wetlands and restoring streams.
•The hydrologic and hydraulic model project was completed by Ecosystem Planning and Restoration (EPR)
to quantify the effect of buffer, stream, and wetland restoration on flood attenuation in the Stoney Creek
watershed (Neuse River basin). This work will be used to evaluate projects for performance and for project
selection in the project procurement process in SFY 2026.
•Construction started on the first flood mitigation project (a stormwater wetland and detention basin) within
the Stoney Creek Pilot Project at Wayne Community College. The design for a second project, a 6.60
acres detention pond is underway.
•DMS completed a research project with Resource Environmental Solutions (RES) to inventory, map, and
model Carolina Bay wetland areas for restoration and flood mitigation potential. The results will be
incorporated into watershed planning for use in future flood mitigation Request for Proposals (RFPs)
•DMS is working to expand procurement of flood mitigation projects to other flood-prone river basins with an
upcoming RFP. This unique RFP will be advertised in SFY 2026.
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Division of Mitigation Services
2024-2025 Annual Report
Flood Mitigation and Planning
Flood Mitigation and Planning
Natural Infrastructure Flood Mitigation Program
(Fund 205601)
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Division of Mitigation Services
2024-2025 Annual Report
Beginning Cash $7,783,850.42
Revenues $ 0.00
Expenditures $ 595,771.70
Ending Cash Balance $ 7,188,078.72
Appendix E provides a full listing of expenditures by fund.
NC Flood Resiliency Blueprint
•The 2021 Appropriations Act provided $20 million for DMS to develop North Carolina’s first Flood Resiliency
Blueprint. The blueprint is a statewide watershed planning effort to establish a framework and tools to assist
local communities in decision-making related to reducing flood risk and increasing resilience.
Progress:
•Phase I – Complete: Research, Recommendations (deliverables), and the Gap Analysis.
•Phase II – Ongoing: Development of the NC Flood Resiliency Blueprint Tool. The Blueprint Tool was
publicly released in April 2025 with a series of technical trainings for partners and contractors working on
the Blueprint. Development and improvements of the Blueprint Tool continue based on feedback received.
The Blueprint Tool will be fully deployed in late fall 2025 to support the six targeted river basins as part of
the river basin action strategy development.
•Phase III – Ongoing: Development of River Basin Action Strategies (RBAS) for six priority river basins are
underway. This includes local capacity assessments and detailed vulnerability assessments to support
local communities in the development and evaluation of resilience actions.
•72 projects funded through partnerships with state agencies and local governments. Project types include
flood risk reduction, stormwater infrastructure improvements, stream debris removal, floodplain / wetland
restoration, stream restoration, and nature-based constructed stormwater wetlands.
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Division of Mitigation Services
2024-2025 Annual Report
Flood Mitigation and Planning
Flood Mitigation and Planning
NC Flood Resiliency Blueprint
Current Project Locations
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Division of Mitigation Services
2024-2025 Annual Report
Flood Mitigation and Planning
NC Flood Resiliency Blueprint
(Fund 205600)
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Division of Mitigation Services
2024-2025 Annual Report
Beginning Cash $17,004,734.09
Revenues $14,757,301.00
Expenditures $ 30,403,841.72
Ending Cash and Cash Equivalents Balance $1,358,193.37
Appendix E provides a full listing of expenditures by fund.
DMS ILF Programs
Each of the four DMS ILF programs are financially independent funds that
operate solely on receipts and do not receive any appropriations from the North
Carolina General Assembly.
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NCDOT ILF Stream Wetland
NCDOT
ILF Stream
& Wetland
Statewide ILF Stream Wetland
Statewide
ILF Stream
& Wetland
Riparian Buffer ILF
Riparian
Buffer ILF
Nutrient Offset ILF
Nutrient
Offset ILF
Division of Mitigation Services
2024-2025 Annual Report
NCDOT Stream & Wetland ILF
COMPLIANCE
INVENTORY
FUND STATUS
FUND STATUS
EXPENDITURES
EXPENDITURES
REQUIREMENTS
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Division of Mitigation Services
2024-2025 Annual Report
NCDOT Stream & Wetland ILF
Requirements
❖The goal of this program is to produce mitigation credits to offset anticipated
impacts associated with the implementation of the development portion of
the NCDOT State Transportation Improvement Program (STIP). Anticipated
impacts are provided to DMS by the NCDOT Natural Environment Unit.
❖In fiscal year 2024-2025 DMS provided mitigation for 65 NCDOT
transportation permitted projects requiring stream and/or wetland mitigation.
❖For these NCDOT projects, DMS is providing 39,659.000 stream mitigation
credits, 36.611 wetland mitigation credits, and 5,212,035.000 riparian buffer
credits (equivalent to 119.650 acres).
❖Appendix D-1 provides NCDOT Stream and Wetland Program permitted
requirements for fiscal year 2024-2025.
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Division of Mitigation Services
2024-2025 Annual Report
NCDOT Stream & Wetland ILF
Fund Status
(205454, 205454-1609310, 205454-1609841)
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Division of Mitigation Services
2024-2025 Annual Report
Beginning Cash $ 6,293,236.23
Revenues $ 21,428,505.40
Expenditures $ 24,014,819.22
Ending Cash Balance $ 3,706,922.41
This figure summarizes the expenditures by payment type for the NCDOT Stream
and Wetland ILF Program. Appendix E provides a full listing of the expenditures by
fund.
Admin Operating, 1.0%
Admin Salaries, 11.9%
Construction, 10.9%
Design, 9.5%Feasibility, 1.9%
ILF Payment, 28.5%
Intraprogram Credit Transaction, 5.0%
Long Term Management, 3.4%
Maintenance, 0.0%Mitigation Bank Credit
Purchase, 6.2%Monitoring, 15.9%
Property Acquisition, 5.8%
$ 24.014 Million Total in 2024 -2025
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NCDOT Stream & Wetland ILF
Expenditures
Division of Mitigation Services
2024-2025 Annual Report
NCDOT Stream & Wetland ILF
Compliance
The DMS Stream and Wetland ILF Program for the NCDOT is a national leader in producing
compensatory mitigation in advance of unavoidable environmental impacts associated with road
improvement projects. Since 2003, the agreements between NCDOT, NCDEQ, and the USACE
have allowed the NCDOT to move forward with more than $35 billion in road development projects
without delay associated with compensatory mitigation. Regulatory Addendum IV provides a
detailed compliance action strategy by cataloging unit.
DOT
Program
Type
Requirements
Due (credits)
Requirements
Met (credits)
Requirements
Not Met
(credits)
Compliance
(credits)
Advance
Credits
Applied
Total
Advanced
Mitigation*
(unassigned)
Stream 1,221,962.200 1,221,962.200 0.000 100.00%41,166.123 435,296.585
Wetlands 2,727.855 2,727.855 0.000 100.00%42.483 8,427.048
*Includes surplus credits developed by NCDOT and managed by DMS
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Division of Mitigation Services
2024-2025 Annual Report
NCDOT Stream & Wetland ILF
Inventory
The NCDOT Stream and Wetland ILF Program’s gross inventory* totaled 1,658,900.000 stream
credits and 11,172.000 wetland credits. A large portion of these credits are unapplied and
available for future permit requirements as projected in the State Transportation Improvement
Program (STIP). Detailed information about the NCDOT Stream and Wetland ILF Program Gross
and Net inventories can be found in Appendices F-1 and F-2 (for non HQP), and F-3 and F-4 (for
HQP).
1,182,438,
71%
476,463,
29%
Stream Inventory
fiscal 2024 -25
Applied Credits (71%)Unassigned Credits (29%)
2,703,
24%
8,470,
76%
Wetland Inventory
fiscal 2024 -25
Applied Credits (24%)Unassigned Credits (76%)
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*Includes surplus credits developed by NCDOT and managed by DMS.
Unassigned credits are available for use on future development projects.Division of Mitigation Services
2024-2025 Annual Report
REQUIREMENTS
FUND STATUS
EXPENDITURES
EXPENDITURES
Statewide Stream & Wetland ILF
COMPLIANCE
INVENTORY
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Division of Mitigation Services
2024-2025 Annual Report
Statewide Stream & Wetland ILF
Requirements
❖In fiscal year 2024-2025, DMS accepted 112 new customer ILF payments
into the Statewide Stream and Wetland ILF Program, totaling $30,569,938.
❖These 112 customer payments represent 90 development projects,
37,040.000 stream credits and 36.813 wetland credits.
❖The stream and wetland requirements received into DMS during the year
represent a normal annual intake.
❖Appendix D-2 provides Statewide Stream and Wetland ILF Program fiscal
year 2024-2025 receipts and requirements.
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Division of Mitigation Services
2024-2025 Annual Report
Statewide Stream & Wetland ILF
Fund Status
(205451, 205451-1609811, 205451-1609818, 205201)
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Division of Mitigation Services
2024-2025 Annual Report
Beginning Cash $122,825,573.62
Revenues $38,418,047.76
Expenditures $26,914,283.94
Ending Cash Balance $134,329,337.44
Equity Index Fund $2,158,558.17
Bond Index Fund $722,270.73
Ending Cash and Cash Equivalents Balance $137,210,166.34
Admin Operating, 0.4%
Admin Salaries, 2.3%Construction, 10.4%
Design, 22.1%
Feasibility, 3.3%
Intraprogram Credit
Transaction, 19.5%
Long Term Management, 2.4%
Maintenance, 0.0%Mitigation Bank Credit Purchase, 5.8%
Monitoring, 4.0%
Property Acquisition, 28.9%
Repair, 0.8%
$26.08 Million Total Fiscal 2024 -2025
Statewide Stream & Wetland ILF
Expenditures
This figure summarizes the expenditures by payment type for the Statewide Stream and Wetland
ILF Program. Appendix E provides a full listing of the expenditures by fund.
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Division of Mitigation Services
2024-2025 Annual Report
Statewide Stream & Wetland ILF
Compliance
For fiscal year 2024-2025, the Statewide Stream and Wetland ILF Program has satisfied 100
percent of all stream requirements and 100 percent of all wetland requirements. DMS
continues to implement projects to address all its permit requirements. Regulatory Addendum
IV provides a detailed compliance action strategy by cataloging unit.
Statewide
Program
Type
Requirements
Due (credits)
Requirements
Met (credits)
Requirements
Not Met
(credits)
Compliance
(credits)
Advance
Credits
Applied
Total
Advanced
Mitigation
(Unassigned)
Stream 874,230.715 874,230.715 0.000 100.00%235,209.775 23,857.006
Wetlands 1,714.652 1,714.652 0.000 100.00%239.693 110.519
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Division of Mitigation Services
2024-2025 Annual Report
Statewide Stream & Wetland
ILF Program Inventory
The Statewide Stream and Wetland ILF Program’s gross inventory totaled 898,591.385
stream credits and 1,827.758 wetland credits. Detailed information about the Statewide
Stream and Wetland ILF Program Gross and Net Inventories can be found in Appendices
F-5 and F-6.
639,525
71%
259,067
29%
Stream Inventory
Fiscal 2024 -25
Applied Credits Unassigned Credits
1,477.55
81%
350.21
19%
Wetland Inventory
Fiscal 2024 -25
Applied Credits Unassigned Credits
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Division of Mitigation Services
2024-2025 Annual Report
Unassigned credits are available for use on future development projects.
Riparian Buffer Mitigation ILF
COMPLIANCE &
INVENTORY
FUND STATUS
FUND STATUS
EXPENDITURES
EXPENDITURES
Requirements
REQUIREMENTS
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Division of Mitigation Services
2024-2025 Annual Report
Riparian Buffer Mitigation ILF
Requirements
❖In fiscal year 2024-2025, DMS received 36 new customer payments into the Riparian
Buffer Mitigation Program, totaling $9,832,683.
❖These 36 customer payments represent 7,453,468.500 credits of buffer mitigation –
equivalent to 171.11 acres of buffer restoration.
❖Approximately 71.25 percent of the fiscal 2024-25 requirements came from twenty
NCDOT / Government related projects.
❖The total amount of riparian buffer mitigation paid into DMS in the past year increased
significantly due to several large NCDOT / Government payments.
❖Appendix D-3 provides Riparian Buffer Program fiscal year 2024-2025 receipts and
requirements.
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Division of Mitigation Services
2024-2025 Annual Report
Riparian Buffer ILF
Fund Status
(205456, 205457, 205458, 205459, 205460)
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Division of Mitigation Services
2024-2025 Annual Report
This table summarizes the finances of all five riparian buffer river basin funds. Riparian buffer impacts and associated
mitigation requirements are regulated by the NCDWR in portions of the Cape Fear, Catawba, and Yadkin River basins,
and the entire Neuse and Tar-Pamlico River basins.
Beginning Cash $ 13,610,434.04
Revenues $2,160,281.36
Expenditures $5,156,034.70
Ending Cash and Cash Equivalents Balance $ 21,679,730.60
Riparian Buffer ILF
Expenditures
This figure summarizes the expenditures by payment type for the Riparian Buffer Mitigation
ILF Program. Appendix E provides a full listing of the expenditures by fund.
Admin Operating, 0.0%
Design, 4.3%
Feasibility, 1.1%
Intraprogram Credit Transaction, 3.2%
Long Term Management, 26.4%
Maintenance, 0.0%
Mitigation Bank Credit
Purchase, 30.8%Monitoring, 34.1%
Property Acquisition, 0.0%
$2.656 Million Total Fiscal 2024 -25
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Division of Mitigation Services
2024-2025 Annual Report
Riparian Buffer ILF
Compliance and Inventory
Detailed information about the Riparian Buffer ILF Program’s compliance action strategy
can be found in Regulatory Addendum IV and about the program’s gross and net
Inventories can be found in Appendices F-7 and F-8.
Buffer
Program Type
Requirements Due
(credits)
Mitigation Applied
Required (credits)
Requirements Not
Met (credits)Compliance
Total Advance
Mitigation
(Unassigned*)
Cape Fear 13,431,909.510 12,352,391.839 1,079,517.671 91.96%32,066.869
Catawba 355,359.000 355,359.000 0.000 100.00%135,004.000
Neuse 37,517,294.830 37,517,294.830 0.000 100.00%3,133,480.694
Tar-Pamlico 6,096,958.910 6,096,958.910 0.000 100.00%5,433.884
Yadkin 824,746.000 824,746.000 0.000 100.00%38.433
Grand Total 58,226,268.250 57,146,750.579 1,079,517.671 98.15%3,306,023.880
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Division of Mitigation Services
2024-2025 Annual Report
*Unassigned credits are available for future use on development projects.
Nutrient Offset ILF Program
COMPLIANCE &
INVENTORY
FUND STATUS
FUND STATUS
EXPENDITURES
REQUIREMENTS
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Division of Mitigation Services
2024-2025 Annual Report
Nutrient Offset ILF Requirements
❖Nutrient Offset ILF accepts requirements from regulated portions of the Cape Fear River
basin, and throughout the Neuse and Tar -Pamlico River basins.
❖In fiscal year 2024-2025, DMS received 73 customer payments into the Nutrient Offset ILF
Program, totaling $2,089,308.21.
❖These 73 customer payments represent reductions of 10,322.805 pounds of nitrogen and
5,969.540 pounds of phosphorus. Nitrogen offset increased substantially from last year and
Phosphorus offset demand continues to increase from previous fiscal years.
❖Phosphorus offset demand continues to progressively increase, especially in the Falls Lake
watershed of the Neuse River basin.
❖Nitrogen offset demand also increased by more than 800% from the previous fiscal year.
❖Appendix D-4 provides Nutrient Offset Program fiscal year 2024-2025 receipts and
requirements.
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Division of Mitigation Services
2024-2025 Annual Report
Nutrient Offset ILF
Fund Status
(205452-1609829)
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Division of Mitigation Services
2024-2025 Annual Report
Beginning Cash $10,174,547.54
Revenues $3,189,764.89
Expenditures $1,469,315.92
Ending Cash Balance $11,894,996.51
Equity Index Fund $1,323,271.98
Bond Index Fund $442,974.46
Ending Cash and Cash Equivalents Balance $13,661,242.95
Nutrient Offset ILF
Expenditures
This figure summarizes the expenditures by payment type for the Nutrient Offset ILF
Program. Appendix E provides a full listing of the expenditures by fund.
Admin Operating, 6.9%
Admin Salaries, 7.0%
Long Term Management, 7.9%
Mitigation Bank Credit
Purchase, 20.2%
Monitoring, 7.5%
Property Acquisition, 50.4%
$0.919 Million Total Fiscal 2024 -25
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Division of Mitigation Services
2024-2025 Annual Report
Nutrient Offset ILF
Compliance and Inventory
DMS accepts payments for nitrogen reduction in the Neuse basin and nitrogen and phosphorus
reductions in the Tar-Pamlico basin, the Falls Lake watershed and in the Jordan Lake watershed.
Detailed information about the Nutrient Offset ILF Program’s gross and net inventories can be found in
Appendices F-9 and F-10, and the program’s compliance action strategies can be found in Regulatory
Addendum IV.
Nutrient Offset
Program Type
Requirements
Due (credits)
Requirements
Met (credits)
Requirements
Not Met
(credits)
Compliance
(credits)
Total Advanced
Mitigation
(Unassigned*)
Falls Nitrogen 15,516.980 15,516.980 0.000 100.00%91,047.713
Falls Phosphorus 14,111.372 6,624.192 7,487.180 53.06%0.000
Jordan Nitrogen 54,035.350 45,215.300 8,820.050 82.29%0.000
Jordan Phosphorus 18.670 6.440 12.230 34.49%1,542.740
Neuse Nitrogen 1,508,324.671 1,508,324.671 0.000 100.00%118,990.443
Tar Pamlico Nitrogen 156,361.810 156,361.810 0.000 100.00%32,975.048
Tar Pamlico Phosphorus 12,929.439 12,929,439 0.000 100.00%553.375
Grand Total 1,762,242.062 1,742,791.569 19,450.493 98.896%245,109,319
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Division of Mitigation Services
2024-2025 Annual Report
*Unassigned credits are generated for use on future development projects.
Appendices
F-1. NCDOT Gross
Assets (no HQP)
F-2. NCDOT Net
Assets (no HQP)
F-3. NCDOT Gross
Assets (HQP)
F-4. NCDOT Net
Assets (HQP)
F-5. Statewide
Gross Assets
F-6. Statewide Net
Assets
F-7. Riparian Buffer
Gross Assets
F-8.Riparian Buffer
Net Assets
F-9. Nutrient Offset
Program Gross
Assets
F-10. Nutrient Offset
Program Net Assets
Regulatory
Addendum
Appendix F -
Inventory
F-1. NCDOT Gross
Assets (no HQP)
F-2. NCDOT Net
Assets (no HQP)
F-3. NCDOT Gross
Assets (HQP)
F-4. NCDOT Net
Assets (HQP)
F-5. Statewide
Gross Assets
F-6. Statewide Net
Assets
F-7. Riparian Buffer
Gross Assets
F-8. Riparian Buffer
Net Assets
F-9. Nutrient Offset
Program Gross
Assets
F-10. Nutrient Offset
Program Net Assets
Regulatory
Addendum
A-1. Closed Fiscal
Year
A-2. Cumulative
Properties
A-3. Non-HQP Site
List
A-4. HQP Site List
A-5. Riparian Buffer
ILF Projects
A-6. Nutrient Offset
ILF Projects
C. Advance Credit
Summary
D-1. NCDOT FY
Requirements
D-2. Statewide FY
Requirements
D-3. Riparian Buffer
FY Requirements
D-4. Nutrient Offset
Requirements
Appendix E -
Expenditures
Appendix B -
Mitigation Bank
Costs
Appendix A –
Property /
Mitigation Sites
A-1. Closed Fiscal
Year
A-2. Cumulative
Properties
A-3. Non-HQP Site
List
A-4. HQP Site List
A-5. Riparian Buffer
ILF Projects
A-6. Nutrient Offset
ILF Projects
Appendix C –
Advance Credits
C. Advance Credit
Summary
Appendix D – FY
Requirements
D-1. NCDOT FY
Requirements
D-2. Statewide FY
Requirements
D-3. Riparian Buffer
FY Requirements
D-4. Nutrient Offset
Requirements
Appendix E -
Expenditures
Appendix B -
Mitigation Bank
Costs
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click on each to download, or here for All Appendices Division of Mitigation Services
2024-2025 Annual Report
click on each to download, or here for Full Addendum
I-A. NCDOT Program–
Requirement Ledger
I-B. Statewide Program
– Requirement Ledger
I-C. Riparian Buffer
Program – Requirement
Ledger
I-D. Nutrient Offset
Program – Requirement
Ledger
Addendum I. -
Requirement Ledgers
I-A. NCDOT Program–
Requirement Ledger
I-B. Statewide Program
– Requirement Ledger
I-C. Riparian Buffer
Program – Requirement
Ledger
I-D. Nutrient Offset
Program – Requirement
Ledger
Addendum III.– Advance
Credit Ledger
Addendum IV. – Action
Strategies
Addendum V. – River
Basin Map
Addendum VI. –
Ecoregions Map
Addendum III.– Advance
Credit Ledger
Addendum IV. – Action
Strategies
Addendum V. – River
Basin Map
Addendum VI. –
Ecoregions Map
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II-A1. NCDOT Stream
and Wetland Program –
Asset Ledger (Non-HQP )
II-A2. Statewide Stream
and Wetland Program –
Asset Ledger
II-B. NCDOT Program –
(HQP) Asset Ledger
II-C. Riparian Buffer
Program – Asset Ledger
II-D. Nutrient Offset
Program – Asset Ledger
Addendum II. – Asset
Ledgers
II-A1. NCDOT Stream
and Wetland Program –
Asset Ledger (Non-HQP)
II-A2. Statewide Stream
and Wetland Program –
Asset Ledger
II-B. NCDOT Program –
(HQP) Asset Ledger
II-C. Riparian Buffer
Program – Asset Ledger
II-D. Nutrient Offset
Program – Asset Ledger
Regulatory Addendum
Division of Mitigation Services
2024-2025 Annual Report