20051457 Ver 1_EcoLINC September 17 2013.msg_20130917

Strickland, Bev
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EcoLINC [EcoLINC @mailings.nclm.org]
Tuesday, September 17, 2013 3:54 PM
tom.reeder @ncdenr.gov
EcoLINC: September 17, 2013
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No. 20 1 NCLM.orq I September 17, 2013
IN H E:
E _ : September 17,
• NCLM News & Political Report
• State, Feds Solicit Input on Water Quality Standards
• NCLM Legal Memos Explain Specifics of Reg Reform, 811 Bills
• Budget Contains Significant Infrastructure Financing Changes
• State Regulators Return to Drawing Board with Nutrient Criteria Plan
• Board Proposes Slew of Hydraulic Fracturing Rules
• League Fakes Final Arguments in Duke Rate Case, Awaits NCUC Final Order
• Recent EPA TMDL, (d) List Documents Include "How -to" Guides
• Regulatory Briefs
• NCLM and State Government Environmental Meetings & Events
NCB / Nees & Political Report
Coinciding with the coming of fall, the state's top decision - makers are turning over a new leaf with
new appointees filling key regulatory and legislative environment positions.
Environmental Management Commission
Meeting for the first time since the state budget reduced the number of commissioners and
directed new appointments to each of the fifteen seats on the N.C. Env• Management

Steve Keen, Kevin Martin, Clyde "Butch" Smith, and Steve Tedder. Governor McCrory must still
appoint the last two commission members, one who is a licensed physician and another at -large
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To go Tong with the DWR reorganization, the Division is undertaking a systematic review of its
programs. This review includes input from an Outside Involvement Committee on which the
League participates as a stakeholder. Division Director Tom Reeder also stated that the following
three subjects will receive priority for an overhaul via legislation or rulemaking:
• Buffer rules (consolidate existing state rules)
• Isolated wetlands rules
• CA (shellfish) water classification
^ Back to Top
State, Fels Solicit input on Water Quality ty Sean
Both the state and federal government moved forward on actions related to surface water quality
standards this month. League members prioritized changes to the state's water quality standards
are one of their top regulatory areas of interest.
Most immediately, the N.C. Division of Water Resources (DWR) received approval last week from
the N.C. Environmental Management Commission (EMC) to hold a public hearing on the state's
current water quality standards (more detail in the presentation in Action Item 1).
While the state has undertaken an extensive review of these standards since 2009 as part of the
federally- mandated "triennial review," this public hearing would not be held to gather feedback on
that proposal. Instead, according to state regulators, the state would solicit feedback from the
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hearing would satisfy a federal requirement to hold a public hearing on a state's surface water
quality standards every three years
While the state undertakes this comment - gathering effort, the proposed triennial review package
would be placed on hold. In presenting this idea to the EIVIC, DWR regulators stressed that the
triennial review rule package needed further work to (1) identify actual costs and benefits of the
rules, and (2) comply with additional legislative requirements placed on fiscal notes. The state
planned to refine the triennial review rule package in light of comment received at the as -yet
unscheduled public hearing.
next year. Read a recent status report on the triennial review and the effects of changes to water
While EPA will accept comment through December 3, it also planned to hold educational webinars
for the public throughout the comment period, on Sept. 24 and Nov. 14. To register for a webinar,
^ Back to Top
NCLM Legal Memos Explain Specifies of Reg Re'
form 8ii
Bills
Attorneys on the League staff have produced a series of legal memos to explain nuances of
certain complex new laws passed in this legislative session. Importantly for municipal staff running
water, wastewater, and stormwater programs, the memos cover the many provisions included in

dig" laws in HB 476 Rewrite Underground Damage Prevention Act, and the expansion of project
Public A . • A Methods/DB/P3.
contracting to include design-build in HB 857
You may access these memos on the League website:
• Regulatory Reform Act of 2013
• Underground Damage Prevention Act
• Design -Build & Public- Private Partnerships
^ Back to Top
Budget Contains Significant infrastructure Financing
Changes
Perhaps most importantly, the budget created the State Water Infrastructure Authority (CWIA), a
politically appointed board that will now be tasked with administering loans and grants from the
Clean Water State Revolving Fund (CWCRF), the Drinking Water State Revolving Fund (DWCRF),
the Wastewater Reserve, and the Drinking Water Reserve.

In addition, the legislature made changes to another source of water and wastewater infrastructure
funding that could reduce the overall amount of funds going toward those purposes. To replace
grant programs formally administered by the N.C. Rural Economic Development Center, funding
for water and wastewater projects is now available through the new Rural Economic Development
Division in the Department of Commerce. However, these funds are also available for any rural
economic development project and are not earmarked for utilities.
now opened up to purposes beyond water and wastewater infrastructure.

North Carolina is a state without numeric nutrient criteria, though the state has regulated the
nutrient content in waters for decades using other measures such as chlorophyll -a, a parameter
that can indicate biological impairment of aquatic life in the waters. In the original NCDP, Forth
Carolina proposed to continue basing certain nutrient management strategies on chlorophyll -a, a
tactic that EPA said must be scientifically supported by the plan before EPA would approve it.
state remained committed to addressing EPA's concerns with the initial NCDP. In addition to

NCDP would also honor EPA's requirement to spell out steps for writing numeric nutrient criteria
Before seeking find EPA approval of the NCDP, expected in 2014, Reid said the agency would
ask for FINK approval of the plan. That approval, expected in early 2014, was important because
the FINK would ultimately promulgate any rules to write numeric nutrient criteria into the state's
water quality standards and any other related rulemakings that implemented the NCDP.
coLINC articles:
EPA Support for Criteria Development
Since 2011, EPA committed to assisting states in developing numeric nutrient criteria. That year,

without numeric nutrient criteria in place: "While EPA has a number of regulatory tads at its
disposal, our resources can best be employed by catalyzing and supporting actions by states that
want to protect their waters from nitrogen and phosphorus pollution."
^ Back to Top
Board Proposes Slew of Hydraulic Fracturing Rules
19 IMEMAN ..
methods of frocking fluid waste disposal earlier this month, with committee members
reiterating their preference for reuse of the fluids over injection into coastal aquifers or treatment by

°YR • 1 ml,
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Iwo
In addition to formulating the setbacks rule discussed above, the M C Environmental Standards
Committee also approved a draft rule on baseline testing of water supplies earlier this summer.
The rule also received approval by the M C Rules Committee, a group that reviews all proposed
rules to ensure conformity between different rule sets as well as conformity with other state and
federal laws.
drilling activities began, and it applied to all water supplies within 5,000 feet of a proposed oil or
gas well. Under the proposal, a permittee must test wells on the following schedule:
0 Initial testing: No earlier than 12 months and no later than 30 days prior to the
commencement of drilling
0 Subsequent testing: between six and twelve months after production has
commenced, and again 24 months after production has commenced until all permitted
wells have been completed on a well pad
0 Additional te.stin : as required by the N.C. Department of Environment and Natural
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substance in comparison with previous tests
Importantly for any water supply owners, the rule contained a provision to allow them to request
sampling of their water supply by the permittee, if they suspected contamination as a result of
drilling activities.
Local Government Regulation Report
Overall, the report recommended that local governments maintain their authority as appropriate,
but should not be used exclusively to prohibit oil or gas operations within the local government's
jurisdiction. It contained more specific recommendations for rules or legislation on the following
topics:
While the report did not recommend expansion of local government authority in any of these areas,
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recommendations in more detail. Both the summary and the full report will be submitted to the N.C.
General Assembly by October 1, as required by C.L. 2012 -143.
^ Back to Top
League Makes Fin al Arguments in Duke eats Case, Awaits
NCUC Final Order
The League submitted a post - hearing brief last month to make find arguments and solidify
positions litigated at the July Duke Energy Carolinas rate increase hearing before the North
Carolina Utilities Commission (NCUC). In that brief, the League focused on a request for lower
rates, specifically for water and wastewater facilities and LED street lights. Those arguments will
be considered by the NCUC as it issues its Final Order in the case, expected perhaps by the end
of this month. The Final Order will set the new Duke rate schedules and contain other rate and
utility- management directives for Duke to pursue.
this July EcoLINC article and other efforts supported by this group in this June EcoLINC article
Lower Rates for Water, Wastewater Facilities
In its post - hearing brief, the League reinforced its argument to include a lower electric rate for
water and wastewater facilities if Duke proceeded with a re- design of the OPT rates as proposed
in its stipulation agreement. The League *s argument involved a request to consolidate two rates,
OPT-[ and OPT-G. If Duke redesigned the rate as requested by the League, water and wastewater
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was based on voltage or load factor. In addition, the League *s brief included a request for more
time -of -use options for utilities. If allowed by the NCUC, time -of -use options would assist utilities in
managing their energy costs by rewarding utilities for shifting their intense energy use to off -peak
times.
Also in its post - hearing brief, the League requested that the NCUC order expressly require Duke to
work with League representatives in developing an Lit rate schedule that was economically
fusible for municipal customers. This would create an opportunity for cities in the Duke service
area to make the most efficient use of electricity and achieve swings that result from Lit use.
^ Back to Top
Recent EPA TMDL, 30 List Documents include "Flow-
'to" Guides
In the midst of forth Carolina's activities to develop its next list of impaired water bodies, the U.S.
states in this aspect of their federal Clem Water Act (CWA) -based programs.
One document updated the federal agency's "vision" for the impaired waters clean -up plan
program and included instructions to states on how to implement that vision. The other document
described specific procedures for states to follow when developing their impaired water body lists,
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il ' THI. •� •
Earlier this summer, EPA published an updated draft of the vision document. In it, the agency
clarified the six tenets of the TMDL program it encouraged states to follow: prioritization,
assessment, protection, alternatives, engagement, and integration. And for the first time, this
document included guidance to states on how to implement these six priorities of the program,
including timelines for specific action steps.
Importantly for the regulated community affected by Tit/ DLs, the new program direction contained
in the vision document emphasized measuring improvements eats to water bodies rather than
counting the number of clean -up plans completed. It also encouraged states to explore alternate
clean -up strategies and to take actions that would protect high - quality waters.
enforcement actions. Mill, the document served as a guide to EPA's overall Tel DL program
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I Back to Top
%.eg - fs
1ula to ry Brie
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wastewater treatment facilities, land application sites, sewer collection systems, and permitted
stormwater programs... EPA revoked part of Arkansas' delegated water permitting program last
month in response to state legislation that left the state agency unable to issue permits in
compliance with the Clem Water Act criteria for minerals ... DWR released its combined Neus a
Cape Fear hydrologic model and will offer training sessions on how to run the model... Industry
groups lost the first round of their legal challenge to the Chesapeake Bay TMDL, with the federal
judge finding EPA was entitled to establish load allocations for nonpoint source discharges, such
as those from agricultural lands, and apply them in states bordering those with the targeted
impaired water bodies...
NCB / and State Government _ ent Meetings &
Events
Coates Local Government Center
Training Center at Jordan Lake, Chapel Dill
• Ecological Flows Science Advisory Board, September 25, 3:30 am, Stan Adams
Training Center at Jordan Lake, Chapel Dill
• Mininq & Energy Commission committee meetings, September 26, 3:30 am, Archdale
Building Ground Floor Dearing Room, Raleigh
• Mininq & Energy Commission, September 27, 9:00 am, Archdale Building Ground
Floor Dearing Room, Raleigh
• NCLM Planninq & Environment Legislative Action Committee, October 2, 10:00 am,
Albert Coates Local Government Center
I • •
Library, 133 East Main Street, Albemarle
-. - • •
NO
Coates Local Government Center
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Community College--Salisbury Campus, 1333 Jake Alexander Boulevard South,
MMM
College--Cheraw Campus, 1201 Chesterfield Highway, Cheraw, SC
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