HomeMy WebLinkAbout20051457 Ver 1_FW DWR MEETING.msg_20120229Strickland, Bev
From: Reeder, Tom [tom.reeder @ncdenr.gov]
Sent: Wednesday, February 29, 2012 2:56 PM
To: Setzer, Britt
Subject: FW: DWR MEETING
Attachments: HB- 609 — Fact — Sheet- 8.pdf; SL 2001- 374.pdf
Britt — Fyi. Regarding our meeting in Cleveland County on the 14th. Just let me know if you have any thoughts on this.
Thanks.
Tom Reeder
Director, NC Division of Water Resources
Phone: 919 - 707 -9027
email: tom.reeder @ncdenr.gov
E -mail correspondence to and from this address may be subject to the North Carolina Public Records Law and may be disclosed to
third parties.
From: Tom Reeder <tom.reeder @ncdenr.gov>
Date: Wed, 29 Feb 2012 13:56:15 -0500
To: CCSD Manager <manager @ccsdwater.com>
Cc: Robin Smith <robin.w.smith @ncdenr.gov >, Kari Barsness <kari.barsness @ncdenr.gov >, "Peele, Linwood"
<linwood.peele @ncdenr.gov >, "Ramsey, Dennis R" <dennis.ramsey @ncdenr.gov >, "Spencer, Lee G"
<lee.spencer @ncdenr.gov>
Subject: Re: DWR MEETING
Butch — Thanks for your e -mail. We will be discussing the resolution that the Board sent to us and I will be briefing the Board
on the statutory procedures that govern the DENR assistance process in Session Law 2011 -374 (House Bill 609). If the Board is
interested in any material to help prepare for this presentation, I would suggest that they consider reading the attached Fact
Sheet, which the Department prepared for HB 609, and Part I of the Session Law. I have also attached the Session Law. Part I
of this Session Law sets out the procedures that the General Assembly adopted to govern DENR's assistance to local
governments in developing new water supplies. Just let me know if you need anything else. See you on the 14th. Thanks.
Tom Reeder
Director, NC Division of Water Resources
Phone: 919 - 707 -9027
email: tom.reeder @ncdenr.gov
E -mail correspondence to and from this address may be subject to the North Carolina Public Records Law and may be disclosed to
third parties.
From: CCSD Manager <manager @ccsdwater.com>
Reply -To: CCSD Manager <manager @ccsdwater.com>
Date: Wed, 29 Feb 2012 13:15:38 -0500
To: Tom Reeder <tom.reeder @ncdenr.gov>
Subject: DWR MEETING
Dear Tom, I am preparing to send out the agenda for the March meeting for the Board.
What does DWR want to discuss on the 14th about the Reservoir?
To same time I can provide the Board with available info for the meeting.
Thanks
Butch
PEI
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSI ON 2011
SESSION LAW 2011 -374
HOUSE BILL 609
AN ACT TO PROMOTE THE DEVELOPMENT OF WATER SUPPLY RESERVOIRS AND
OTHER WATER SUPPLY RESOURCES, TO PROVIDE THAT FUNDS FROM THE
CLEAN WATER MANAGEMENT TRUST FUND MAY BE USED TO PRESERVE
LANDS FOR THE DEVELOPMENT OF WATER SUPPLY RESERVOIRS, AND TO
IMPROVE THE EFFICIENCY OF USE OF NORTH CAROLINA'S WATER
RESOURCES.
Whereas, S.L. 2007 -518 directed the Environmental Review Commission to study
the allocation of surface water resources and their availability and maintenance in the State; and
Whereas, pursuant to this directive, the Environmental Review Commission
commissioned a study and report on water allocation issues and policy options; and
Whereas, the resulting water allocation report included a recommendation that the
State create an expedited regulatory process for the construction of new water supply
reservoirs; and
Whereas, the resulting water allocation report found that certain areas of the State,
including the Piedmont, are expected to experience significant population growth over the next
30 years and do not have adequate water supplies to support the expected growth; Now,
therefore,
The General Assembly of North Carolina enacts:
PART I. PROMOTE THE DEVELOPMENT OF WATER SUPPLY RESERVOIRS
AND OTHER WATER SUPPLY RESOURCES
SECTION 1.1. G.S. 143- 355(b) is amended by adding two new subdivisions to
read:
"(b) Functions to Be Performed. — The Department shall:
16 Cooperate with units of local government in the identification of water
supply needs and appropriate water supply sources and water storage
projects to meet those needs. By agreement with a unit of local government,
the Department may do any of the following:
a. Assist in the assessment of alternatives for meeting water supply
needs; the conduct of engineering studies, hydraulic computations,
and hydrographic surveys; and the development of a plan of study for
purposes of obtaining necessarypermits.
b. For budget and planning purposes, develop estimates of the costs of
the proposed new water supply project.
C.. Apply for State and federal permits for the development of regional
water supplies.
17 Be the principal State agency to cooperate with other State agencies, the
United States Army Corps of Engineers, and all other federal agencies or
instrumentalities in the planning and development of water supply sources
and water storage projects for the State."
SECTION 1.2. Article 38 of Chapter 143 of the General Statutes is amended by
adding two new sections to read:
1 143 - 355.7. Water supply development; State -local cooperation.
(a) At the request of one or more units of local government, the Department may assist
the local government in identifying the preferred water supply alternative that alone or in
d in the local water supply plan and meet all of the following criteria:
Are economically and practically feasible.
Make maximum, practical beneficial use of reclaimed wastewater and
stormwater.
Comply with water quality classifications and standards.
Avoid or mitigate impacts to threatened or endangered species to the extent
such species are protected by State or federal law.
Maintain downstream flows necessary to protect downstream users.
Do not have significant adverse impacts on other water withdrawals or
wastewater discharges.
Avoid or mitigate water quality impacts consistent with the requirements of
rules adopted by the Environmental Management Commission to implement
33 U.S.C. § 1341.
During the alternatives analysis, the Department shall request relevant information
the potential alternatives, including the establishment or expansion of the water
supply reservoir or other water supply resources, from other State agencies with jurisdiction
over any natural resources that will be impacted under the alternatives identified by the
Department. Unless the local government aLyrees to an extension of time. the Department shall
determine the preferred alternative within two years of the execution of a contract with the
reauestinLy local government for the costs of the analysis. The determination of the preferred
further evaluation during its review of any State or federal permit applications for the project
that another preferred alternative should be selected in light of additional information brought
Environmental Policy Act and any State permit or authorization that requires identification and
assessment of alternatives, including, but not limited to, a request for an interbasin transfer
_pursuant to G.S. 143- 215.22L.
The Department may provide technical assistance to a unit of local government in
obtaining federal permits for the preferred water supply alternative identified pursuant to
subsection (a) of this section. For purposes of providing technical assistance and conducting
studies in support of a proposed water supply project under this section, the Department may
enter into an agreement with one or more units of local government to conduct studies or
modeling. The agreement shall specify the allocation of costs for any studies or modeling
prepared by the Department in support of the project.
(e) When the Department has identified the most practicable alternative, a regional
water supply system may request that the Department become a co- applicant for all required
federal approvals for the alternative identified by the Department. The Department may
become a co- applicant when all of the following conditions are met:
The regional water supply system has acquired or will acquire the property
necessary for construction of the water supply reservoir or other water
supply resource.
The local water supply plan shows that the regional water supply system has
implemented appropriate conservation measures similar in effect to the
measures in comparably sized North Carolina regional water supply systems.
The regional water supply system has developed and is implementing
measures to replace existing leaking eaking infrastructure that is similar in effect to
the measures being implemented by comparably sized North Carolina
regional water systems.
The regional water supply system has entered into a contractual agreement
to pay the expenses incurred by the Department as a co- applicant for the
project approval.
(f ) Nothing in this section shall be construed to limit the authority of the Department to
require environmental permits or to apply and enforce environmental standards pursuant to
State law.
1 143 - 355.8. Regional water supply planning organizations
Page 2 Session Law 2011 -374 SL2011 -0374
ka) One or more water systems may establish a water supply planning organization to
plan for and coordinate water resource supply and demand on a regional basis. A water supply
nlanninLy organization may include representatives of local Lyovernment water systems. water
authorities, nongovernmental water systems, and registered water wi
A regional water supply planning organization may do an
M Identify sources of raw water supply for regional systems.
Identify areas suitable for the development of new regional water sources.
Identify opportunities for purchase and sale of water between water systems
to meet regional water supply needs.
Prepare joint water supply plans.
Enter into agreements with the Department for technical assistance in
identifying_ practical alternatives to meet regional water supply needs
pursuant to G.S. 143 -355.7 or to provide studies in sunnort of a nronosed
regional water supply project.
Support cooperative arrangements between water systems for purchase and
sale of water by providing technical assistance and voluntary mediation of
disputes concerning water supply.
(c) Nothing in this section shall be construed to alter the requirements for obtaining a
certificate for an interbasin transfer."
PART II. PROVIDE THAT FUNDS FROM THE CLEAN WATER MANAGEMENT
TRUST FUND MAY BE USED TO PRESERVE LANDS FOR THE DEVELOPMENT
OF WATER SUPPLY RESERVOIRS
SECTION 2.1. G.S. 113A -251 reads as rewritten:
"§ 113A -251. Purpose
The General Assembly recognizes that a critical need exists in this State to clean up
pollution in the State's surface waters and to fit—protect, preserve, and conserve those
waters that are not yet polluted. The task of cleaning up polluted waters and protecting and
enhancing the State's water resources is multifaceted and requires different approaches,
including innovative pilot projects, that take into account the problems, the type of pollution,
the geographical area, and the recognition that the hydrological and ecological values of each
resource sought to be upgraded, conserved, and protected are unique.
It is the intent of the General Assembly that moneys from the Fund created under this
Article shall be used to help finance projects that specifically address water pollution problems
and focus on upgrading surface waters, eliminating pollution, and pig protecting,
preserving, and conserving unpolluted surface waters, including enhancement or development
of ,,drinking water supplies. It is the further intent of the General Assembly that moneys
from the Fund also be used to build a network of riparian buffers and greenways for
environmental, educational, and recreational benefits. It is lastly the intent of the General
Assembly that moneys from the Fund also be used to preserve lands that could be used for
water supply reservoirs. While the purpose of this Article is to focus on the cleanup and
prevention of pollution of the State's surface .=waters, the establishment of a network
of riparian buffers and greenways, and the preservation of property for establishing clean water
supplies, the General Assembly believes that the results of these efforts will also be beneficial
to wildlife and marine fisheries habitats."
SECTION 2.2. G.S. 113A -253 reads as rewritten:
"§ 113A -253. Clean Water M anagement Trust Fund.
(a) Fund Established. — The Clean Water Management Trust Fund is established as a
special revenue fund. The Fund receives revenue from the following sources and may receive
revenue from other sources:
(1) Annual appropriations under G.S. 143 - 15.313.
(2) Scenic River special registration plates under G.S. 20- 81.12.
(b) Fund Earnings, Assets, and Balances. — The State Treasurer shall hold the Fund
separate and apart from all other moneys, funds, and accounts. Investment earnings credited to
the assets of the Fund shall become part of the Fund. Any balance remaining in the Fund at the
end of any fiscal year shall be carried forward in the Fund for the next succeeding fiscal year.
Payments from the Fund shall be made on the warrant of the Chair of the Board of Trustees.
(c) Fund Purposes. — Moneys from the Fund are appropriated annually to finance
projects to clean up or prevent surface water pollution and for land preservation in accordance
with this Article. Revenue in the Fund may be used for any of the following purposes:
SL2011 -0374 Session Law 2011 -374 Page 3
(1) To acquire land for riparian buffers for the purposes of providing
environmental protection for surface waters and urban drinking water
supplies and establishing a network of riparian greenways for environmental,
educational, and recreational uses and to retire debt incurred for this purpose
under Article 9 of Chapter 142 of the General Statutes.
(2) To acquire conservation easements or other interests in real property for the
purpose of protecting and conserving surface waters and enhancing „
drinking water s"pli€ - supplies, including the development of water supply
reservoirs, and to retire debt incurred for this purpose under Article 9 of
Chapter 142 of the General Statutes.
(3) To coordinate with other public programs involved with lands adjoining
water bodies to gain the most public benefit while protecting and improving
water quality and to retire debt incurred for this purpose under Article 9 of
Chapter 142 of the General Statutes.
(4) To restore previously degraded lands to reestablish their ability to protect
water quality and to retire debt incurred for this purpose under Article 9 of
Chapter 142 of the General Statutes.
(5) To repair failing wastewater collection systems and wastewater treatment
works if the repair is a reasonable remedy for resolving an existing waste
treatment problem and the repair is not for the purpose of expanding the
system to accommodate future anticipated growth of a community.
(6) To repair and eliminate failing septic tank systems, to eliminate illegal
drainage connections, and to expand a wastewater collection system or
wastewater treatment works if the expansion eliminates failing septic tank
systems or illegal drainage connections.
(7) To finance stormwater quality projects.
(8) To facilitate planning that targets reductions in surface water pollution.
(8a) To finance innovative efforts, including pilot projects, to improve
stormwater management, to reduce pollutants entering the State's waterways,
to improve water quality, and to research alternative solutions to the State's
water quality problems.
(9) To fund operating expenses of the Board of Trustees and its staff.
(d) Limit on Operating and Administrative Expenses. — No more than two percent (2 %)
of the annual balance of the Fund on 1 July or a total sum of one million two hundred fifty
thousand dollars ($1,250,000), whichever is greater, may be used each fiscal year for
administrative and operating expenses of the Board of Trustees and its staff."
SECTION 2.3. G.S. 113A -253.1 reads as rewritten:
"§ 113A- 253.1. T he C lean Water Management Trust Fund; appropriation.
(a) The General Assembly finds that, due to the critical need in this State to clean up
pollution in the State's surface v� waters, to protect and conserve those waters that are
not yet polluted, and to preserve lands that may be used for water supply reservoirs, it is
imperative that the State provide a minimum of one hundred million dollars ($100,000,000)
each calendar year to the Clean Water Management Trust Fund; therefore, there is annually
appropriated from the General Fund to the Clean Water Management Trust Fund the sum of
one hundred million dollars ($100,000,000).
(b) The funds in the Clean Water Management Trust Fund shall be used only in
accordance with this Article."
SECTION 2.4. G.S. 113A -256 reads as rewritten:
"§ 113A -256. Clean Water Management Trust Fund Board of Trustees powers and
duties
(a) Allocate Grant Funds. — The Trustees shall allocate moneys from the Fund as
grants. A grant may be awarded only for a project or activity that satisfies the criteria and
furthers the purposes of this Article.
(b) Develop Grant Criteria. — The Trustees shall develop criteria for awarding grants
under this Article. The criteria developed shall include consideration of the following:
(1) The significant enhancement and conservation of water quality in the State.
(2) The objectives of the basinwide management plans for the State's river
basins and watersheds.
Page 4 Session Law 2011 -374 SL2011 -0374
(3) The promotion of regional integrated ecological networks insofar as they
affect water quality.
(4) The specific areas targeted as being environmentally sensitive.
(5) The geographic distribution of funds as appropriate.
(6) The preservation of water resources with significant recreational or
economic value and uses.
(7) The development of a network of riparian buffer - greenways bordering and
connecting the State's waterways that will serve environmental, educational,
and recreational uses.
Water supply availability and the public's need for resources adequate to
meet demand for essential water uses. Criteria developed pursuant to this
subdivision may include consideration of the likelihood of a proposed water
supply project ultimately being permitted and built.
(c) Develop Additional Guidelines. — The Trustees may develop guidelines in addition
to the grant criteria consistent with and as necessary to implement this Article.
(d) Acquisition of Land. — The Trustees may acquire land by purchase, negotiation, gift,
or devise. Any acquisition of land by the Trustees must be reviewed and approved by the
Council of State and the deed for the land subject to approval of the Attorney General before
the acquisition can become effective. In determining whether to acquire land as permitted by
this Article, the Trustees shall consider whether the acquisition furthers the purposes of this
Article and may also consider recommendations from the Council. Nothing in this section shall
allow the Trustees to acquire land under the right of eminent domain.
(e) Exchange of Land. — The Trustees may exchange any land they acquire in carrying
out the powers conferred on the Trustees by this Article.
(f) Land Management. — The Trustees may designate managers or managing agencies
of the lands acquired under this Article.
(g) Tax Credit Certification. — The Trustees shall develop guidelines to determine
whether land donated for a tax credit under G.S. 105- 130.34 or G.S. 105- 151.12 are suitable for
one of the purposes under this Article and may be certified for a tax credit.
(h) Rule - making Authority. — The Trustees may adopt rules to implement this Article.
Chapter 150B of the General Statutes applies to the adoption of rules by the Trustees.
(i) Repealed by Session Laws 1999 -237, s. 15.11, effective July 1, 1999.
0) Debt. — Of the funds credited annually to the Fund, the Trustees may authorize
expenditure of a portion to reimburse the General Fund for debt service on special indebtedness
to be issued or incurred under Article 9 of Chapter 142 of the General Statutes for the purposes
provided in G.S. 113A- 253(c)(1) through (4). In order to authorize expenditure of funds for
debt service reimbursement, the Trustees must identify to the State Treasurer and the
Department of Administration the specific capital projects for which they would like special
indebtedness to be issued or incurred and the annual amount they intend to make available, and
request the State Treasurer to issue or incur the indebtedness. After special indebtedness has
been issued or incurred for a capital project requested by the Trustees, the Trustees must direct
the State Treasurer to credit to the General Fund each year the actual aggregate principal and
interest payments to be made in that year on the special indebtedness, as identified by the State
Treasurer."
PART III. IMPROVE THE EFFICIENCY OF USE OF NORTH CAROLINA'S WATER
RESOURCES
SECTI ON 3.1. G.S. 143 - 355(1) reads as rewritten:
"(1) Local Water Supply Plans. — Each unit of local government that provides public
water service or that plans to provide public water service and each large community water
system shall, either individually or together with other units of local government and large
community water systems, prepare a local water supply plan and submit it to the Department
for approval. The Department shall provide technical assistance with the preparation of plans to
units of local government and large community water systems upon request and to the extent
that the Department has resources available to provide assistance. At a minimum, each unit of
local government and large community water system shall include in local water supply plans
all information that is readily available to it. Plans shall include present and projected
population, industrial development, and water use within the service area; present and future
water supplies; an estimate of the technical assistance that may be needed at the local level to
address projected water needs; current and future water conservation and water reuse pr-egfan4s;
SL2011 -0374 Session Law 2011 -374 Page 5
programs, including a plan for the reduction of long-term per capita demand for potable water;
a description of how the local government or large community water system will respond to
drought and other water shortage emergencies and continue to meet essential public water
supply needs during the emergency; and any other related information as the Department may
require in the preparation of a State water supply plan. A unit of local government or large
community water system shall submit a revised plan that specifies how the water system
intends to address foreseeable future water needs when eighty percent (80 %) of the water
system's available water supply based on calendar year average daily demand has been
allocated to current or prospective water users or the seasonal demand exceeds ninety percent
(90 %). Local plans shall be revised to reflect changes in relevant data and projections at least
once each five years unless the Department requests more frequent revisions. The revised plan
shall include the current and anticipated reliance by the local government unit or large
community water system on surface water transfers as defined by G.S. 143- 215.22G. Local
plans and revised plans shall be submitted to the Department once they have been approved by
each unit of local government and large community water system that participated in the
preparation of the plan."
SECTI ON 3.2. G.S. 143- 355.4(b) reads as rewritten:
"(b) To be eligible for State water infrastructure funds from the Drinking Water State
Revolving Fund or the Drinking Water Reserve or any other grant or loan of funds allocated by
the General Assembly whether the allocation of funds is to a State agency or to a nonprofit
organization for the purpose of extending waterlines or expanding water treatment capacity, a
local government or large community water system must demonstrate that the system:
(7) Has implemented a consumer education program that emphasizes the
importance of water ^^nsef :,v tie .conservation and that includes information
on measures that residential customers may implement to reduce water
consumption."
SECTI ON 3.3. G.S. 159 -52(a) reads as rewritten:
"(a) In determining whether a proposed bond issue shall be approved, the Commission
may consider:
13 If the proposed bond issue is for a water system as described in
G.S. 159- 48(b)(21). whether a unit has brebared a local water subbly blan in
SECTION 3.4. The Department of Environment and Natural Resources shall
provide statewide outreach and technical assistance as needed regarding water efficiency,
which shall include the development of best management practices for community water
efficiency and conservation. These best management practices shall address at least all of the
following practices:
(1) Integrating water efficiency and conservation into water supply plans.
(2) Conducting regular water audits to identify revenue and nonrevenue water
and water losses.
(3) Adopting water loss abatement programs.
(4) Metering and submetering of existing multiunit residential, commercial, and
industrial complexes.
(5) Retrofitting fixtures, equipment, and irrigation systems to make them more
water efficient.
(6) Landscaping in a manner that conserves water use and is regionally
appropriate.
(7) Employing water reuse practices that include harvesting rainwater and using
grey water.
(8) Pricing water to achieve comprehensive conservation and adopting full -cost
accounting in line with the recommendation approved by the State Water
Infrastructure Commission in November 2010.
SECTI ON 3.5. Nothing in Sections 3.1 through 3.4 of this act shall be construed to
authorize the adoption of rules to implement those sections. Nothing in Sections 3.1 through
3.4 of this act shall be construed or implemented in a way so as to negatively impact economic
development.
Page 6 Session Law 2011 -374 SL2011 -0374
SECTION 4. Sections 3.1 through 3.5 of this act become effective October 1,
2011. All other sections of this act are effective when this act becomes law.
In the General Assembly read three times and ratified this the 17th day of June,
2011.
s/ Walter H. Dalton
President of the Senate
s/ Thom Tillis
Speaker of the House of Representatives
s/ Beverly E. Perdue
Governor
Approved 1:00 p.m. this 27th day of June, 2011
SL2011 -0374 Session Law 2011 -374 Page 7
Session Law 2011 -374 Authorizes State -Local Partnerships for New Water Supplies
Overview: The recently enacted Session Law (SL) 2011 -374 (House Bill 609) has the potential
to significantly alter the way local governments pursue new water supply sources to support
economic expansion and expected population growth. Under the auspices of SL 2011 -374, local
governments will now have the opportunity to form a partnership with the Department of
Environment and Natural Resources (DENR). Under this partnership arrangement, DENR will
be capable of providing the following assistance to local governments. The Department will:
• Cooperate in the identification of water supply needs and appropriate water supply
sources and water storage projects.
• Assist in the assessment of alternatives for meeting the water supply needs of a local
government.
• Develop estimates of the costs of the proposed new water supply.
• Apply for state and federal permits for the development of regional water supplies.
• Act as the principal state agency to cooperate with other state agencies, the U.S. Army
Corps of Engineers and all other federal agencies involved in the planning and
development of water supply and water storage projects.
State Assistance in Identifying Water Supply Alternatives: A local government can request
that the Department assist in identifying a preferred water supply alternative that will meet the
community's long -term water supply needs as documented in the local water supply plan. To
start the process, the local government needs to send a written request to the Department. The
Department can then enter into a formal agreement with the local government to provide
assistance with the alternatives analysis; under the law, the local government is required to
reimburse the department for the costs of the analysis. The Department must complete the
alternatives analysis within two years after executing the agreement. The Session Law sets out
specific criteria for identifying the preferred water supply alternative. The preferred alternative
identified by the Department will be binding on all state agencies for purposes of any alternatives
analysis required under the North Carolina Environmental Policy Act and any state permit that
requires identification and assessment of alternatives.
Federal Permitting Assistance: The Department may also help the local government apply for
federal permits needed for construction of the preferred water supply alternative. The
Department can only assist in seeking permits for the water supply alternative that the
Department identified as meeting the criteria set out in the law. Permitting assistance may take
the form of technical assistance, including conducting required studies or modeling. The
allocation of the costs associated with these activities will be negotiated between the Department
and the local government. A qualified regional water supply system can also request that the
Department become a co- applicant for all required federal approvals necessary to implement the
preferred alternative.
For Further Information: A copy of the Session Law is available at:
http: / /www.ncleg.net/Sessions/ 2011 /Bills /House/PDF /H609v6.pdf.
For information on requesting state assistance please contact Tom Reeder, the Director of the
Division of Water Resources, at (919) 715 -3045, or at tom.reeder(amcdenngov. .