HomeMy WebLinkAbout20171122 Ver 2_RS GUC revised MBI track_20191107ID#* 20171122
Select Reviewer:*
Katie Merritt
Initial Review Completed Date 11/07/2019
Mitigation Project Submittal-11/7/2019
Version* 2
Is this a Prospectus, Technical Proposal or a New Site?*
Type of Mitigation Project:*
r Stream r Wetlands lF Buffer fJ Nutrient Offset
(Select all that apply)
Project Contact Information
Contact Name:*
Raymond Holz
Project Information
...................................................................................
ID#:* 20171122
Existing IDr
Project Type:
Project Name:
County:
r DMS r Mitigation Bank
GUC
Pitt
Document Information
r Yes r No
Email Address:*
rholz@restorationsystems.com
Version:*2
Existing Version
Mitigation Document Type:*
Mitigation Bank Instrument
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omments11-07-
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otice11-07-
RS GUC MBI For Public Notice-1 1-07-
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2019CLEAN_.pdf
RS GUC MBI For Public Notice-1 1-07
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2019REDLINE_. pdf
GUC BPDP NCDWR 2017-1122v2 For Public
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GUC BPDP NCDWR 2017-1122v2 For Public
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Rease upload only one RDF of the complete file that needs to be
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Signature
Print Name:* Raymond Holz
Signature:*
AGREEMENT TO ESTABLISH THE RESTORATION SYSTEMS' GUC MITIGATION
BANKING INSTRUMENT IN THE TAR-PAMLICO RIVER BASIN FOR NUTRIENT
OFFSET AND RIPARIAN BUFFER MITIGATION CREDITS PURSUANT TO THE
TAR-PAMLICO NUTRIENT MANAGEMENT STRATEGY
TABLE OF CONTENTS
I.
PREAMBLE.......................................................................................................................................I
IL
LOCATION AND GEOGRAPHIC SERVICE AREA......................................................................I
III.
AUTHORITIES..................................................................................................................................2
IV.
ESTABLISHMENT OF BANK A-PARCEL.....................................................................................2
V.
BANK PARCEL DEVELOPMENT PACKAGE..............................................................................4
VI.
POST CONSTRUCTION DOCUMENTATION FOR THE BANK PARCEL................................6
VIL
CALCULATION OF CREDITS FOR THE BANK PARCEL..........................................................9
VIII.
CREDIT RELEASE SCHEDULE....................................................................................................I I
IX.
PROCEDURE FOR DEBITING AND CREDITING 1.rr TRJFNT OFFSET CREDITS 12
X.
BANK PARCEL CLOSURE............................................................................................................14
XI.
GENERAL PROVISIONS FOR THE BANK PARCEL.................................................................14
ATTACHMENTS
A — Division of Water Resources Authority Document
B — Rule Text 15A NCAC 02B .0240
C — Rule Text 15A NCAC 02B .0295 (Effective November 1, 2015)
D — Ledger Templates
L PREAMBLE
This Restoration Systems iva`� GUC Mitigation
Banking Instrument ("Instrument') regarding the establishment, use, operation, and
maintenance of the GUC Nutrient Offset and Buffer Mitigation Bank Parcel (`Bank Parcel"),
D' further identified in Section II, is to provide Ta�Tar-Pamlico Riparian
Buffer mitigation credits ("Riparian Buffer Credits") and Tar -Pamlico Nutrient Strategy
nutrient load reduction credits (`Nutrient Offset Credits"), is made and entered into by and
among Restoration Systems, LLC (RS) as the Bank Sponsor ("Sponsor"), and the North
Carolina Department of Environmental Quality —Division of Water Resources ("DWR" ). This
Instrument is in accordance with 15A NCAC 02B .0240 (Attachment B) and 15A NCAC 02B
.0295 (Attachment C). Thi,; ;^,'^„"ont ;, F r *-.o nc' -oa ! 149 Pan-k 12ar-eel (P v
The purpose of the Bank Parcel is:
A. To restore and preserve riparian vegetation adjacent to streams an&of agricultural ditches
with the intent to improve water quality within the Tar -Pamlico River Basin. The B
B. To convert agricultural land uses within riparian areas adjacent to streams and eF
agricultural ditches into a dense, hardwood vegetated state with the intent to significantly
reduce nutrient loadings associated with agricultural practices into streams and ditches.
C. To provide mitigation and sell any resulting Riparian Buffer Credits an&OF Nutrient Offset
Credits to third parties in the Tar -Pamlico- River Basin, for developments and or permit
obligations requiring such mitigation.
IL LOCATION AND GEOGRAPHIC SERVICE AREA
A. The Geographic Service Area ("GSA") is the designated area wherein a Bank can
reasonably be expected to i4fli;zo. and sell Riparian Buffer Credits and, of Nutrient Offset
Credits for impacts requiring such mitigation or offset.
B. The GSA for this instrument is limited to the Tar -Pamlico -River Basin in the State of North
Carolina, United States Geological Survey ("USGS") 8-digit Hydrologic Unit Code
("HUC") 03020103, unless o#4@n4so ,,., oa l ., the DIALR..
C. Sale or transfer of Riparian Buffer Credits shall be limited to the
(the 8-digit HUC 03020103) in the Tar -Pamlico River Basin, unless otherwise authorized
by the DWR or delegated local government in accordance with 15A NCAC 02B .0295.
D. Sale or transfer of Nutrient Offset Credits shall be limited to the
(8-digit HUC 03020103 in the Tar -Pamlico River Basin), unless otherwise authorized by
the DWR or delegated local government in accordance with 15A NCAC 02B .0240.
D--In accordance with Session Law 2019-86 of House Bill 812, NCGS 143-214.26 may allow
Nutrient Offset Credits to be sold from this Bank Parcel to offset NPDES-permitted
wastewater nutrient sources within the 8-digit HUC 03020103 of the Tar -Pamlico River
Basin. Additionally, if this Bank Parcel is located downstream from the NPDES-permitted
wastewater facility's nutrient source and is upstream from the water body identified for
restoration under the applicable TMDL or Tar -Pamlico Nutrient Management Strategy,
then this Bank Parcel may be allowed to sell Nutrient Offset Credits to offset the NPDES-
permitted wastewater nutrient sources.
E. Table 1 provides site -specific details of the Bank Parcel proposed under this Instrument.
Table 1.0 — Site -specific Details
Bank
448-Digit USGS
DWR
Project
Named
Primary Laud
Parcel
County
Hydrologic Unit
ID #
Location
Receiving
Use/s
Name
Code
Stream
GUC
Pitt
030201039;!9030
2017-TarBiosolid
Greenville
Tar River
Application
& Agriculturl Crops
IILAUTHORITIES
A. The Bank will be used to provide Riparian Buffer Credit and Nutrient Offset Credit in
accordance with the requirements in the DWR Authority document referenced herein as
"Attachment A" and attached to this Instrument.
B. Projects eligible for utilization of the credits are those requiring authorization under the
requirements of Attachment A and any newRe a44i @Ra4y approved North Carolina
("r�*�General Sstatutes (NCGS) and rules for the Tar -Pamlico Nutrient Management
Strategy.
C. The selling of mitigation credits generated from the Bank Parcel approved under this
Instrument, shall be consistent with approved North Carolina ("State") statutes and rules
for the Tar -Pamlico Nutrient Management Strategy.
D. Mitigation activities proposed under this Instrument and corresponding Bank Parcel
Development Package (BPDP) to generate Riparian Buffer Credits and Nutrient Offset
Credits shall be consistent with North Carolina ("State") statutes and rules for the TafV
Tar -Pamlico Management Strategy that are in place at the time a complete BPDP is
submitted to DWR.
IV. ESTABLISHMENT OF BANK A -PARCEL
A. In accordance with 15A NCAC 02B .0295 and 15A NCAC 02B .0240, DWR has provided
a "Site Viability Letter" for the Bank Parcel proposed under this Instrument. The site
viability letter is not an approval of the site to generate Riparian Buffer Credits and Nutrient
Offset Credits, but is a preliminary review of the Bank Parcel that details and confirms
existing land -use conditions, defines the riparian zone sites (Enhancement, Preservation,
or Restoration), and identifies features (streams, ditches, ponds, etc.) that meet general
criteria to be suitable to generate Riparian Buffer Credits and Nutrient Offset Credits.
Table 2.0 below outlines when the* Site Viability Letters wereas issued by NCDWR:
Table 2.0 — Site Viability Letter Details
Bank Parcel
NC DWR Site Visit
Viability Letter
Viability Letter
Received
Expiration Date
GUC
November 14, 2017
May 29, 2019
March 25, 2021
GUC
November 14, 2017
March 25, 2019
March 13, 2021
B. A valid Site Viability Letter is required prior to submittal of the BPDP. Site Viability
Letters will either expire on the dates listed above or upon the submittal of an individual
As -Built Report to the DWR, whichever comes first. If a Site Viability Letter expires prior
to submittal of a complete BPDP as described in Section V to DWR, then the Sponsor must
submit a formal request to DWR for a new Site Viability Letter for that Bank Parcel.
C. The Bank Parcel proposed for inclusion under this Instrument shall require a del
P eye1....,,wat 12aekage ("BV44X ` BPDP be submitted to, and approved by, the DWR prior
to use of the individual Bank Parcel for vipa-Fi^^ BUffeF CF04 S ^^a 1. tl#i^..+ 093
gFe4itsmitigation purposes or for- any or transfer of any associated credits. The
contents of the BPDP are provided in Section V.
D. The Bank Parcel can be proposed as two separate phases with each phase described in
detail in the BPDP.
GE. No mitigation activities approved in the BPDP, shall be performed in any areas that are
directly or indirectly affected by the installation of above -ground and/or underground
utilities, until, compliance of all applicable permits or authorizations associated with the
utilities has been achieved. The Bank Sponsor shall receive verification of compliance
from DWR prior to conducting activities related to generating Riparian Buffer Credits or
Nutrient Offset Credits in areas.
D-F. The BPDP submitted under this instrument will be placed on public notice and made
available for public commenting for 15 calendar days.
IG. In general, the Bank Sponsor expects all Riparian Buffer Credits and Nutrient Offset
Credits to be generated through either riparian restoration FOstoFat^^ ^r riparian
preservation. D;.. w "D^ + +; 1 "D ^ +; q 1^+. ^a gi 1 5A
44 a c na-rG P7 „^,1 444; s 1 ,sk4 .Ae4 Riparian Buffer Credits are only attainable if the width
- Commented [MK1]: There were two viability letters issued to
RS. Please add to table
Commented [B]2R1]: Added Adjusted earlier sentence as
well.
Commented [MK3]: This term is not stated in rule 0240.
Therefore, I am not understanding why RS is requesting to "lease"
credits. Please explain or remove "lease" from the document here
and anywhere else it is mentioned.
Commented [B14R3]: Removed "lease"
Commented [MKS]: We don't allow Nutrient offsets to be
generated on preservation sites. Other parts of tbis statement are
already cited in later sections of the MBI
Commented [B36RS]: ok
of the festeiatien iparian area is is at least 20 feet from top of
bank.
IiH. The Bank Parcel is intended to provide Riparian Buffer Credit as follows:
1. IPlantingl hardwood trees or trees and shrubs on a Restoration Site as defined in 15A commented [M K71: Planting what?
NCAC 02B .0295 (b) adjacent to streams and primary ditches where agriculture has
been determined to be the predominant land -use.' ^es en ^ v^sto40t;^.; e;t^ ^,; aea,
F;^^a
in 15n NCAC 02B 0295(b)
2. Diffused flow will be maintained onsite to the maximum extent iracticable. The Buffer Commented [MKS]: where it can't, what will Rs ao?want to
Interpretation/Clarification Memo #2008-019 may be applied where maintenance of cite the clarification memo?
diffuse flow onsite is unattainable.
3. Maintaining a Preservation Site of existing Ripa4ia4, R„FF r as defined in 15A NCAC
02B .0295(be) by placing a perpetual conservation easement around riparian areas.
CAI. Nutrient Offset Credit may be achieved on the Bank Parcel through restoration of
the riparian areas where agriculture is the predominant land use. Nutrient Offset Credits
are only attainable if the width of the restored riparian areas are at least fifty
(50) feet as measured perpendicular from tops of stream and ditch banks. The width of the
restoration _Ara erh,.r,., m_ei . area begins at the most landward limit of the top of bank or
the rooted herbaceous vegetation and extends landward a minimum of 50 feet' and a
maximum of 200 feet on all sides of the surface waters.
I4-J. The Bank Parcel is expected to provide Nutrient Offset Credits in accordance with 15A
NCAC 02B .0240 and is expected to provide Nutrient Offset Credit as follows:
Converting agricultural land uses within riparian areas to non-agricultural land
uses.
Planting hardwood trees or trees and shrubs on a Restoration Site as defined in 15A
NCAC 02B .0295 (b) adjacent to streams and primary ditches where agriculture
has been determined to be the predominant land -use.
F. The CMG Bank Parcel submitted for review under this Instrument axis anticipated to
begin construction of proposed riparian ^�^^ �^�^:^ti^^ activities after approval of this
Baiiking Instrument and the —r-elattedcorresponding
V. BANK PARCEL DEVELOPMENT PACKAGE
A. The BPDP submitted under this Instrument shall be submitted to DWR for review and must
be approved by DWR prior to any construction on the Bank Parcel. The BPDP will
describe specifics related to any phasing of the Bank Parcel. The BPDP must describe any
changes that have occurred to the site between the date of the Site Viability Letter and the
date the BPDP is submitted to DWR. The BPDP shall include detailed information
consistent with the sections below concerning; 1) site location (8-digit I UC is required);
2) existing conditions with current photos; 3) proposed buffer mitigation and proposed
nutrient offset activities including a detailed vegetation plan; 4) monitoring and
Commented [MK9]: I didn't see any riparian enhancement
mentioned in the BPDP, but RS mentions Enhancement in other
parts of the Instrument, so I edited to add it here. If RS has no
enhancement proposed in the BPDP please remove "enhancement"
from all parts of the Instrument.
Commented [B110R9]: No enhancement
Commented [MK11]: We do not put a timeline in the
Instrument because it could take a while for the BPDP to be
approved. It is more appropriate to suggest timelines in the BPDP
Commented [BIUR11]: ok
maintenance plans; 5) financial assurances; 6) associated buffer/nutrient credit
calculations, which shall include credit generation, service area, and accounting as
appropriate for each regulatory authority; 7) stream determination letter from DWR;; axd
8) Site Viability Letter from DWR, aFA 9) service area figure for each mitigation type; and
10) all pertinent information regarding permitting, bank stabilization, culvert removal, and
installation of utilities indirectly or directly affecting the Bank Parcel.
B. The Sponsor will obtain all applicable federal, state, and local documentation, permits, or
authorizations needed to construct and maintain the Bank Parcel. This Instrument does not
qualify as, or substitute for, such documentation, permit, or authorization.
C. Any restoration ^r e- 1,AMPe-,.,,o^* activities or proposed construction within the riparian
buffers and other riparian areas on the Bank Parcel to produce Riparian Buffer Credit
and/or Nutrient Offset Credit must be approved by DWR in writing prior to
implementation. The failure of the Sponsor to comply with this requirement may result in
a revised or reduced credit release schedule for the Bank Parcel.
D. Requests for deviation from the approved BPDP must be submitted to DWR in writing.
Written approval from the DWR must be received prior to implementing any deviation
from the approved BPDP.
Property Disposition & Long Term Management for the Bank Parcel
E. Prior to the release of any credits, the Sponsor shall record permanent conservation
easements at the Pitt County Register of Deed's office 4 t4@ eoRvAy 4 ' ^' 41�e a^^'
n,,,.^-4 is located --that is sufficient to ensure protection, operation and maintenance of
restored riparian buffers and other riparian areas
F. The form of the conservation easement shall be consistent with the standards employed by
the State of North Carolina in the protection of restored riparian buffers and riparian areas
and shall be approved by the DWR prior to the release of any credits.
G. The Sponsor shall not grant additional easements, right of ways, or any other property
interest in or to the project areas, without prior approval from the DWR.
H. The Sponsor agrees to transfer or assign the conservation easement and its interests in
perpetuity to a qualified holder under NC General Statute ("GS") 121-34 et seq. and 170(h)
of the Internal Revenue Code prior to the submittal of the Year 4 Monitoring Report. The
holder shall be a land trust or stewardship program that will hold and enforce the
conservation easement and the interests in perpetuity. The Sponsor shall choose a land trust
or stewardship program that is accredited by the Land Trust Accreditation Commission
and/or has been approved by DWR prior to the end of the fourth year monitoring period.
A land trust must be certified under 501(c)(3) of the Internal Revenue Code.
Commented [M K13]: Is RS intending on proposing sometting
other than a perpetual conservation easement? I'm not clear as to
why RS inserted this language.
Commented [MUM]: Perpetual Easement, nothing
different.
I. In the event the Sponsor is also the owner of the underlying fee interest in the property, the
conveyance of the conservation easement to a land trust or stewardship fund must be
arranged at the outset of the approved BPDP.
Financial Assurances for the Bank Parcel
J. Following approval of the BPDP, the Sponsor shall provide a Performance/Maintenance
Bonds from a surety company that is rated no less than an "A-" as rated by A.M. Best, to
construct tlw--the Bank Parcel, in its entirety, including all phases sites -according to the
approved BPDP&. If necessary, RS may elect to acquire a separate bond for each phase of
the Bank Parcel as described in the BPDP. It is the Sponsor's responsibility to confirm
that the surety company is rated no less than an "A-" with each annual bond renewal.
K. The amount of the Performance Bond(sl shall be 100% of the estimated cost for
implementation of the �`T��'-�ie� parian mitigation activities and construction
4etivities of the Bank Parcel as described in the approved BPDP. No bond shall be less
than $150,000.00 to cover construction costs.
L. Alternatively, in lieu of posting Performance Bonds, the Sponsor may elect to construct
the pPe@sts-Bank Parcel, in its entirety, including all phases prior to the first credit release-,.
M. Once DWR has released all credits for completion of all the items listed below for each
phase of the Bank Parcel, then the Bank Sponsor will be released from its performance
obligations under the performance bond/s required in Item J and K of this section:
Instrument and BPDP Approved by DWR, Conservation Easement Recorded,
Financial Assurance Posted;
Site Earthwork, an4-Planting and Installation of Monitoring Devices Completed;
As -Built Report as described in Section VI has been received by DWR; and
DWR has submitted a written approval of the As -Built Report
N. To comply with this section, DWR must be the Obligee on all performance bonds.
VI. POST CONSTRUCTION DOCUMENTATION FOR THE BANK PARCEL
As -Built Report
A. The Sponsor agrees to perform all necessary work, in accordance with the provisions of
this Instrument and corresponding BPDP, to establish, maintain, and monitor Riparian
Buffers or other riparian areas until Item B (1) and (2) of Section X have been satisfied.
B. When all FestoFation-apdriparian mitigation @n , neeff o..* activities and construction have
been completed for the Bank Parcel, in its entirety, including all phases, the Sponsor will
submit an as -built plan and report FT eac,4 p4ase ^Ffor the Bank Parcel within 30 calendar
days after completing the establishment of the 4HA�� riparian buffer and nutrient offset
areas. If necessary, RS may elect to submit a separate As -Built Report for each phase of
Commented [MK15]: I'm not sure if RS intends to use one or
two bonds for the Bank Parcel. J
Commented [MK16]: The BPDP submitted with this instrument
shows both buffer & nutrient offset generated on the parcel.
However, in many sections of the Instrument, RS just references
Nutrient offset, like in this item. Is this intentional or just
accidental?
Commented [B117R16]: Accidental
the Bank Parcel as described in the BPDP. The As -built Report will be submitted to DWR
and describe any deviation from the approved BPDP and will document the following:
1. Riparian restoration and planting details, invasive species control, confirmation of
fence installation if applicable, cattle exclusions if applicable, monitoring device
locations, vegetation plot locations, and photo point locations, as appropriate.
2. Boundary Survey of the conservation easement area, signed and sealed by a
licensed surveyor, including an inventory of the final riparian buffer mitigation
an&oF nutrient offset areas -f r ..,,.no... o _M_et ,.,.oa;.; in both square feet and acres.
3. As -built map of the R„FF a^a N„' ieat nFF o*mitigated areas showing where
riparian restoration nd preservation were performed and any
deviations to the Bank Parcel from what was approved in the BPDP.
4. Aerial map of the restoration and preservation areas ~e'��approved in the
BPDP.
4.5.Confirmation from DWR that all permits and authorizations directly or indirectly
associated with the Bank Parcel, including those affiliated with the installation of
above -ground and underground utilities, are all in compliance with applicable
permit conditions.
Financial Assurance for the Bank Parcel
C. After completion of the riparian mitigation FesteFationactivities and /construction on €ash
was€ of the Bank Parcel—, in its entirety, including all phases, a separate
Performance/Maintenance Bond/s will be secured for 100% of the estimated cost to
implement the monitoring and maintenance plan as described in the approved BPDP and
As -Built Report for the site. If necessary, RS may elect to acquire a separate bond for each
phase of the Bank Parcel as described in the BPDP. The Bond/s must be from a surety
company that is rated no less than an "A °' as rated by A.M. Best, and it is the Sponsor's
responsibility to confirm that the surety company is rated no less than an "A" with annual
bond renewal.
D. EachA Performance/Maintenance Bond shall be secured each year for a minimum of five
years, and until DWR has released all Riparian Buffer Credits and Nutrient Offset Csredits
to the Bank Sponsor. Upon DWR approval, the bond/s may be lowered each year based on
the adjusted cost to complete the monitoring. No bond shall be less than $100,000 to cover
monitoring and maintenance costs.
E. Once DWR has released 100% of all credits for completion of all Bank Parcel milestones
described in Table 3 of Section VIII and in the corresponding BPDP, the Bank Sponsor
will be released from its performance obligations under the performance bond/s required
in "C-D" of this Section.
F. To comply with this section, DWR must be the Obligee on all performance bonds.
Monitoring and Maintenance Reports
G. The Sponsor shall monitor the Bank Parcel, in its entirety, including all phases as described
in the BPDP until such time as DWR determines that the performance standards described
below have been met. The monitoring period shall be a minimum of five consecutive years
for each phase of the Bank Parcel.
H. Performance Standards for Vegetation: Native hardwood trees or native hardwood tree
and shrub species should be planted at a density sufficient to provide 260 stems per acre
after five years. A minimum of four (4) native hardwood trees or four (4) native hardwood
tree and shrub species must be planted. No one species shall be greater than 50% of the
planted stems. A list of species for planting will be detailed in the BPDP for approval.
Native hardwood tree volunteer species may be included to meet performance standards as
determined by the DWR.
I. A "stem" means a woody seedling, sapling, shrub or tree, no less than 10 centimeters in
height.
J. If the performance standards of the vegetation are not met, supplemental plantings may be
required. Supplemental plantings will be utilized until the required densities have been
achieved and maintained for five years. Bank Parcel maintenance, such as ensuring diffuse
flow, managing invasive species, and pest control will be included in the BPDP.
K. Monitoring Reports for Riparian Buffer Credit and/or Nutrient Offset Credit:
Reporting criteria of the vegetation shall be based on the Carolina Vegetation Survey
(CVS) — EEP Protocol for Recording Vegetation Level 2 Plot Sampling only version 4.0
or any updated versions of this protocol in place at the date of acceptance of the BPDP.
The Sponsor shall submit an annual monitoring report no later than December 31 of each
year for a minimum of five consecutive years after the first full growing season. If
necessary, RS may elect to submit a separate monitoring report for each phase of the Bank
Parcel as described in the BPDP. This report will describe the conditions of the Bank
Parcel, including an evaluation of the performance standards of the vegetation contained
within the approved BPDP. Reports shall contain the following:
1. A U.S. Geological Survey map showing location of the Bank Parcel;
2. A detailed narrative with supporting photos summarizing the condition of the Bank
Parcel along with any maintenance or remediation performed that year, and
3. A map, survey, or other figure showing locations of sampling plots, permanent
photo points, location of transects, etc.; and
4. Monitoring data, including specific vegetative counts showing that the trees or tree
and shrub species planted are meeting performance standards and updated
photographs; and
5. A copy of the most recent Bank credit/debit ledgers; and
6. Corresponding verification letters from designated local governments upon request;
and
7. Corresponding Mitigation Transfer Certificates upon request.
8. Proof of performance bond renewal to cover the next monitoring year (if
applicable)
Contingency Plans/Remedial Actions
L. In the event the Bank Parcel fails to achieve the performance criteria described in this
Instrument and the approved BPDP, the Bank Sponsor shall develop necessary contingency
plans in coordination with the DWR and implement appropriate remedial actions for the
Bank Parcel and the Bank. Depending on the degree of remedial actions required, the DWR
may modify the monitoring period.
VIL CALCULATION OF RIPARIAN BUFFER CREDITS AND NUTRIENT OFFSET
CREDITS FOR THE BANK PARCEL
Riparian Buffer Credits
A. All Riparian Buffer Credits shall be determined based on the ratios and percentages
provided in 15A NCAC 02B .0295 (m) and (n).
B. Riparian buffer restoration on the Bank Parcel, as described in 15A NCAC 02B. 0295 (n),
and defined in 15A NCAC 02B .0295 (b) that is performed on agriculture lands within the
Bank Parcel, may be used for either Riparian Buffer Credit or nutrient offset Credit, but
not both.
C. Riparian buffer preservation on the Bank Parcel, as described in 15A NCAC 02B .0295
(off), and defined in 15A NCAC 02B .0295 (b)is
^.F ,...,^a onagr-ieu4uF@'^^a,; *.41;in 4 e Paffk n,,,-,.^i can only be used for ^; hp,
Riparian Buffer Credit
D. Riparian Buffer Credit is defined as one (1) buffer credit per one square foot or 43,560
buffer credits per one acre.
E. Pursuant to 15A NCAC 02B .0295 (1)(6)(B), `Buffer mitigation credit shall not be
generated within wetlands that provide mitigation credit required by 15A NCAC 02H
.0506"
Nutrient Offset Credits
9
Commented [MK18]: We do not currently allow nutrient offsets
to be generated on preservation sites.
t-F. The acreage of Nutrient Offset Credits on the Bank Parcel submitted under this
Instrument is determined by applying the applicable ratio as provided in 15A NCAC 002B
.0295 (m) for a Restoration Site. All riparian areas proposed for Nutrient Offset Credits
must be a minimum of fifty (50) feet from the top of the s4ea-rrbank along streams and
ditches adjacent to land noted in the Site Viability Letter as agriculture.
B-G. Nutrient Offset Credits cannot be achieved through the preservation activities
performed on the Bank Parcel.
GH. Nutrient Abatement of Restored Riparian Area/Buffers on Agricultural lands: The
Sponsor and DWR agree to the following:
The pounds of nitrogen offset per acre of restored riparian areas/buffers shall be
2,273.02 pounds per acre,
The pounds of phosphorus offset per acre of restored riparian areas/buffers shall be
146.40 pounds per acre,
I}I. The Sponsor and DWR agree that the methodology and calculations for determining
nitrogen and total phosphorus reduction, associated with restoration of
riparian areas on this Bank Parcel as demset bed in Se-,Gbi .., Al Of this i^A,,,. ORI shall be
fixed as part of the approval of this Instrument, with the fixed amount not changing during
the Bank Parcel Development or credit release schedule for the Bank Parcel unless the
viability letter for that Bank Parcel has expired.
This space left blank intentionally, do not add text to this space.
10
Commented [MK19]: Why is this cited and where did this
number come from? RS may need to add a separate item to this
section describing the amounts and for what purpose they are
intending to use these in a calculation.
Commented [B120R19]: Removed This is for the new rules,
not yet finalized...
Commented [MK21]: Why is this cited and where did this
number come from? RS may need to add a separate item to this
section describing the amounts and for what purpose they are
intending to use these in a calculation.
Commented [B]22R21]: Removed. This is for the new rules
VIIL CREDIT RELEASE SCHEDULE
A. Upon submittal of all appropriate documentation by the Sponsor, and subsequent approval
by DWR, it is agreed that Riparian Buffer Credits and Nutrient Offset Csredits associated
with ^'4�the Bank Parcel, in its entirety and including all phases, will become
available for use, sale-,4€aw or transfer b onsoFto a third party in accordance with
in Rraar-�the Credit Release Schedule in Table 3.0—
A B. If necessary, RS may elect to have a separate Credit Release Schedule for each phase
of the Bank Parcel. All phases will be subject to the same schedule as provided in Table
3.0 below:
Table 3.0 - Credit Release Schedule for Riparian Buffer and Nutrient Offset Credits
% Credit
Task
Project Milestone
Available for
Sale
Instrument and BPDP Approved by DWR, Conservation Easement
t
Recorded*,-aad Financial Assurance Posted, and all utilities installed and in
20
compliance with state issuedpermits/authorizations where applicable
2
Site Earthwork, Planting and Installation of
20
Monitoring Devices Completed and all applicable permits obtained
3
Monitoring Financial Assurance Posted and Approval of As -Built Report
10
4
Monitoring Report 91: Approved by the DWR** & financial assurances
10
renewed
5
Monitoring Report 92: Approved by the DWR** & financial assurances
10
renewed
6
Monitoring Report 93: Approved by the DWR** & financial assurances
10
renewed
7
Item B (1) of Section X in this Instrument has been completed and
5
approved by DWR.
No remaining credits will be released until the conservation easement has
been assigned to an approved land trust or stewardship
8
Monitoring Report #4: Approved by the DWR** & financial assurances
5
renewed
9
Monitoring Report 95: Approved by the DWR** and final site visit by
10
DWR has been conducted
Total
100%
* For specification, please see Section V in this Instrument
HE
** DWR Approval provided upon a determination that the site is meeting success criteria contained within the
approved BPDP
I}C. DWR may modify the credit release schedule based on the information submitted or
the order in which required information is received. DWR will notify the Sponsor of any
modification to the credit release schedule.) commented [MK23]: Make sure these remain on the same page
as the Credit Release schedule, even if adjusting the formatting is
needed.
IX. PROCEDURE FOR DEBITING AND CREDITING
Credit Ledgers
A. The Bank Sponsor shall maintain a credit ledger for each mitigation type for each phase of
the Bank Parcel under this Instrument: Credit ledgers shall provide the accounting for
Riparian Buffer Credits in square feet and acres, and Nutrient Offset Credits in pounds and
acres.
B. Each credit ledger shall be submitted on a separate 8 `/,in X 11-in spreadsheet with legible
font style and font size. All ledgers shall be submitted using the templates provided in
(Attachments D aR4-E-�f this Instrument or any updated versions to these templates as commented [MK24]: Make sure these references are accurate
provided by DWR. on final draft
Credit Processing
C. Riparian Buffer Credits generated on this Bank Parcel will be used to provide mitigation
for authorized buffer impacts within the Tar -Pamlico -River Basin according to 15A NCAC
02B .0295 (f) and (g).
D. Nutrient Offset Credits generated on this Bank Parcel will be used to offset nitrogen and
phosphorus nutrient loads within the 8-digit HUC 03020103 of the Tar -Pamlico River
R4*er-Basin in accordance with 15A NCAC 02B4.0240.
I}E. Nutrient Offset Credits generated on this Bank Parcel may also be used to offset
nitrogen and phosphorus nutrient loads for NPDES-permitted wastewater facilities in
accordance with NCGS 143-214.26 through Session Law 2019-86, House Bill 812.
Commented [MK25]: This is our new policy for new banks.
Our rules don't actually require DWR to offer converting of credit
F. Available Riparian Buffer Credits (credits that have been released by DWR but not sold by the
types... we just have allowed it through policy in the NMI.
Sponsor) that meet criteria for nutrient offset credits as outlined in Section VII of this Instrument,
However, the constant converting and transferring has become an
the Site Viability Letter and the corresponding BPDP can be converted and transferred from
unnecessary burden & DWR is unable to accept back and forth
conversions.
Riparian Buffer Credits to Nutrient Offset Credits upon written approval from DWR. Once a credit
commented [B]26R25]: okay
has been converted to another credit type, the transaction is permanent and the credit cannot be
Commented [MK27]: DWR is recommending that providers
converted agalnl.
- remove anything but a 1:1 and 100% option from conversion
potential. Otherwise, you get into having to apply other ratios and
%reductions that add complications to credit accuracy during
G. Available Nutrient Offset Credits (credits that have been released by DWR but not sold by the
conversions. Thoughts?
Sponsor) that are generated within 0-I100' from tops of banks and meet criteria for riparian buffer
commented [B]28R27]: Okay
credits as outlined in Section VII of this Instrument, the Site Viability Letter, 15A NCAC 02B
.02951
Commented [MK29]:
12
and the corresponding BPDP can be converted from Nutrient Offset Credits to Riparian Buffer
Credits upon written approval from DWR. Once a credit has been converted to another credit
type, the transaction is permanent and the credit cannot be converted again.
4 c n NC n C 0213.0295 (b) and .hoI;nrihRd
H. The Bank Sponsor shall obtain written verification of nutrient offset need from a designated
local government within the 8-digit HUC 03020103 of OF ^��*m hoFAy-4n-the Tar -Pamlico
River Basin, prior to debiting Nutrient Offset Credits from the Bank Parcel.
F: For NPDES-permitted wastewater nutrient sources, the Bank Sponsor shall obtain
verification of nutrient offset need as well as written DWR approval authorizing this Bank
Parcel to meet the applicable NPDES permit requirements, prior to debiting Nutrient Offset
Credits from the Bank Parcel.
G-1. The Bank Sponsor shall obtain written verification of buffer mitigation required from
the delegated local government in the Tar -Pamlico -River Basin or DWR prior to debiting
Riparian Buffer Credits from the Bank Parcel.
ICJ. All credit and debit transactions for the Bank Parcel under this Instrument shall be
accurately depicted in the credit ledgers. The Bank Sponsor shall provide DWR up-to-date
credit ledgers for the Bank Parcel by the tenth (10') of each month. At a minimum and
upon request, DWR shall receive a hard copy of updated credit ledgers along with the
corresponding Mitigation Credit Transfer Certificates ("Certificate") and all corresponding
letters from the designated local governments or DWR where applicable, once a year.
Notification of all credit sales shall be provided to DWR until all credits that have been
released have been sold.
Certificates
K. All credit sales, leas@s ^r #m4s will include a Mitigation Credit Transfer Certificate
("Certificate") that is required to be provided to the buyer of Riparian Buffer and/or
Nutrient Offset credits, that will include, at a minimum, the following information:
1. Bank Details: (1) Bank Ssponsor Name, (2) bank parcel as it appears in this
Instrument, (3) DWR project number for the BPDP as it appears in Table 1.0
2. Credit Details: (1) date of receipt, (2) identify if full or partial payment, (3-when
applicable)) -amount of nitrogen Nutrient Offset Credits purchased in pounds and
confirmation from the designated local government or DWR of the amount
required, and (4-when applicable) amount of a phosphorus Nutrient Offset
Coredits puFehased,leased m: *�^^ F �oain pounds purchased in pounds and
confirmation from the designated local government or DWR of the amount
13
Commented [MK30]: Throughout this document, it references
"Tar River Basin" instead of "Far -Pamlico River Basin". RS needs
to correct this through the entire document
Commented
Commented [MK32]: Not sure why RS is wanting to provide
suggested language here. Banks are all help to the same
requirements, and MCTC's are required for all sales. DWR is
unsure of the term "lease" here.
Commented [B]33R32]:Okay. Lease refers to new rule
scenario. Removed
required, (54) amount of Riparian Buffer Credits purchased in square feet and the
confirmation from DWR or the local government of the amount required.
3. Permitted Project Details: (1) project name as it appears on DWR or local
government permits and/or certifications, (2) 8-digit HUC, (3) river basin, (4)
nutrient strategy applicable to the project, (5 — when applicable) designated local
government or DWR requiring Nutrient Offset Credits, and/or (6 — when
applicable) DWR authorization number or delegated local government requiring
Riparian Buffer Credits for this project
-J-L.If the DWR determines that the Bank is operating at a deficit (e.g. the Sponsor is utilizing,
selling, leasing or transferring credits that are not available), or the Bank is out of
compliance with statutes, rules or this Agreement, the „soOf Ssale/transfer will
immediately cease, and the DWR, in consultation with the Sponsor, will determine what
remedial actions are necessary.
X. BANK PARCEL CLOSURE
A. Bank Parcel Closure shall be identified as the event when the Sponsor is relieved of all of
its responsibilities to the Bank Parcel and there are no Riparian Buffer Credits or Nutrient
Offset Csredits left to sell.
B. Bank Parcel Closure shall commence only after all of the following events have occurred:
1. Transfer or assign the conservation easement and all of its interests, in perpetuity,
to a land trust or stewardship program as described in Section V of this Instrument.
2. All five years of monitoring completed and all monitoring reports submitted and
approved by DWR.
-2-3.All credits have been released and debited and updated ledgers showing zero credit
balances have been submitted and approved by DWR.
XI. GENERAL PROVISIONS FOR THE BANK PARCEL
A. Upon the presentation of proper credentials, and during normal business hours, the Sponsor
and the landowner shall grant permission to the Director of DWR, and/or an authorized
representative of the Director of DWR, to enter the property containing the Bank Parcel.
B. Amendments: This Banking Instrument may be amended or modified only with written
approval of all signatory parties.
14
C. Any transfer of the Sponsor's rights or obligations outlined in this Instrument or any other
agreement referenced in this Instrument to a third party must be approved by DWR prior
to the transfer.
D. Force Majeure: After 100% of all of the credits have been released according to the credit
release schedule in�'in Section VIII and confirmation has been received by the
DWR that the Conservation Easement has been successfully assigned in compliance with
Item H of Section V, the Sponsor will not be responsible for Bank failure that is attributed
to natural catastrophes including but not limited to flood, drought, disease, regional pest
infestation, etc. that are beyond the control of the Sponsor.
E. However, if an event occurs before 100% of all of the credits have been released according to
the credit release schedule in Section VIII, the Sponsor shall take remedial action to restore
the property to its condition prior to the event, in a manner sufficient to provide adequate
offset and mitigation Nu#ienl Offset to cover credits that were sold prior to the occurrence
of the event. Such remedial action shall be taken by the Sponsor only to the extent
necessary and appropriate, as determined by DWR and the Sponsor.
DWR must concur in writing that a force majeure event has occurred for this provision to apply.
F. Oversight: Actions taken by DWR may include, but are not limited to, the following:
1. Site visits,
2. Mitigation determinations/mitigation viability assessments
-2-3.Issuance of Site Viability Letters,
-3-4.BPDP review and approval of items listed in Section V of this Instrument,
4.5.As-Built Report review and approval of items listed in Section VI of this
Instrument,
-5-6.Monitoring Report review and approval of items listed in Section VI of this
Instrument,
6-7.Credit Ledger review and approval of items listed in Section IX of this Instrument,
-7-8.Certificate review of items listed in Section IX of this Instrument and cross analysis
to credit ledgers and,
8-9.Information requests, file reviews and audits
Reports, ledgers, files and other information shall be made available to DWR upon request, unless
otherwise specified in this or any other document.
15
G. Validity of the Banking Instrument: This Instrument will become valid on the date of the
lastparty's signature.
H. Specific Language of Banking Instrument Shall Be Controlling: To the extent that specific
language in this document changes, modifies, or deletes terms and conditions contained in
those documents that are incorporated into the Instrument by reference, and that are not
legally binding, the specific language within the Instrument shall be controlling.
L Any disputes over decisions regarding this Instrument, shall be referred to the Director of
DWR for a decision. The Director's decision is subject to review as provided in Articles
3 and 4 of G.S. 150B.
J. This Agreement shall be binding upon the parties and is entered into knowingly,
intelligently, and voluntarily.
K. Notices: All notices and other communications which may be or are required to be given
or made by any party to the other shall be in writing and shall be deemed to have been
properly given and received on the date delivered in person, received via electronic mail,
or deposited in the United States mail, registered or certified, return receipt requested, to
the addresses set out below, or at such other addresses as specified by written notice
delivered in accordance herewith.
If to Bank Sponsor: Restoration Systems
Attn: Barrett Jenkins
1101 Haynes Street, Suite 211
Raleigh, NC 27605
If to DWR: NC Division of Water Resources — 401 & Buffer Permitting Branch
Attn: Nutrient Offset Banking Coordinator
1617 Mail Service Center
Raleigh, NC 27699-1617
L. Applicable Law: This Agreement shall be construed under the laws of the State of North
Carolina.
RESTORATION SYSTEMS, LLC
By:
Title:
16
(Print)
(Signature)
Date:
NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL QUALITY -DIVISION OF
WATER RESOURCES
By: (Print)
Title:
Date:
17
(Signature)
ATTACHMENT
A — Division of Water Resources Authority Document
ATTACHMENT
B — Rule Text 15A NCAC 02B .0240
ATTACHMENT
C — Rule Text 15A NCAC 02B .0295 (Effective November 1, 2015)
ATTACHMENT
D — Ledger Templates