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HomeMy WebLinkAboutNCC000001_Fact Sheet 2002_20030101 A7lcir419AFact Sheet - NPDES Permit NCDENR Neuse River Compliance Association No1RM CAROLINA DEPA,RMENT of ENVIRONMENT AND NATURAL RESOURCES NPDES No. NCC000001 FINAL ACTION The Neuse River Compliance Association and its member dischargers have applied for a new NPDES permit to govern the group's discharge of Total Nitrogen to the Neuse River and its tributaries.The group made application on June 28,2002.It modified its application on October 1,and again on December 18,2002 to reflect changes in membership. The Division found the Association's application to be acceptable and made a tentative determination to issue the permit. The Division published a notice of this determination in the principle newspaper for each county in the river basin on or about October 23,2002,and accepted comments on the draft permit for 30 days following publication. The Division considered all significant comments,made certain revisions in the permit in response to those comments,and has made its final determination to issue the permit with revisions. INTRODUCTION The Neuse River Basin is classified as Nutrient Sensitive Waters (NSW),due to long-term nutrient impacts on the river's estuary from point,nonpoint,and natural sources of pollution. In December 1997, the Environmental Management Commission adopted the Neuse River Basin Nutrient Sensitive Waters (NSW)Management Strategy,a rules package designed to address these nutrient impacts and restore water quality in the basin.The Strategy required that Total Nitrogen(TN) loads to the estuary(1995 baseline)be reduced by 30 percent by the year 2003. The basin has also been listed on the state's 303(d)list of impaired waters because of the nutrient impacts.The Division developed Total Nitrogen TMDLs for the basin,based upon the NSW Management Strategy,and the USEPA approved the TMDLs in 1999(Phase I) and 2002 (Phase II).The 2000 303(d)list again includes the basin,now noting that the TMDLs have been approved and are being implemented. One portion of the NSW Management Strategy,the Wastewater Discharge Requirements rule (T15A NCAC 2B .0234),establishes specific nutrient control requirements for the point source dischargers in the basin. 1) The rule sets forth a system of Total Nitrogen allocations to achieve the stated 30 percent reduction in point source loads to the estuary. Toward this end,it: 1) sets a wasteload allocation of 1.64 million pounds TN per year(at the estuary)for all point source dischargers in the basin. 2) further divides this allocation among the existing dischargers. 3) requires that large facilities(those with permitted flows equal to or greater than 500,000 gallons per day)meet their individual TN allocations,effective in 2003. 4) prescribes what allocations are required for new and expanding dischargers as well as how they will be handled when permitted facilities consolidate(regionalize)their wastewater discharges. 5) provides that interested dischargers can form a group compliance association and work together to meet their combined TN allocation. Under this option,the individual • FACT SHEET Neuse River Compliance Association FINAL NPDES PERMIT NPDES No. NCC000001 dischargers are subject to TN limits in a group compliance NPDES permit in lieu of the TN limits in their individual NPDES permits. 2) The rule also prescribes Total Phosphorus limits for the most significant dischargers in the basin. The proposed permit is a group compliance permit as described above and is the first of its kind to be developed under the Strategy's Wastewater Discharge rule. PERMIT OVERVIEW Co-Permittees The Neuse River Compliance Association("NRCA,"or the"Association")is a not-for-profit corporation established in North Carolina.The purpose of the Association is to function as a"group compliance association"as provided in the Wastewater Discharge rule. , The Association's members include both public and private entities,all of which discharge treated wastewater in the Neuse River basin under existing individual NPDES permits. The Association and each of its members will be co-permittees under the proposed permit.In general, the Association will serve as the contact between the Division and its co-permittee members in matters pertaining to this permit. Scope of the Permit The proposed group compliance permit will govern the combined discharge of Total Nitrogen from the co-permittees to the estuary. Requirements in this permit will supplement those in the co-permittee members'individual NPDES permits but will not replace the requirements in the individual permits except where specifically stated. Each member's individual NPDES permit will remain in effect and will continue to govern the other parameters of concern for that discharge. PROPOSED EFFLUENT LIMITATIONS AND MONITORING REQUIREMENTS The Division has developed effluent limitations,monitoring requirements,and special conditions for the proposed permit based on the Neuse River Basin Nutrient Management Strategy,the approved TN TMDLs,and extensive deliberations with the USEPA Region 4 and with the affected dischargers. Effluent Limitations Group and Individual TN Limitations Appendix A of the permit contains the definitive list of(1)Co-Permittee Members in the Association,(2) the discharge and equivalent estuary TN allocations for each member,and(3) the transport factor for each.These values are taken from allocation method in the Wastewater Discharge rule. The appendix also includes the sum total of the member's estuary allocations,which represents the Association Estuary TN Allocation.All TN allocations are expressed in terms of pounds of TN per year and apply to a calendar year period. The permit establishes TN limits for the Association and,under certain conditions,for the individual co-permittee members.Any group or individual TN limit in this permit is equal to the corresponding estuary TN allocation in Appendix A. The Association will be subject to an estuary TN limit(equal to its Estuary TN Allocation)throughout the term of this permit. Individual members of the Association will be subject to individual TN limits only in those years in which the Association exceeds its limit.In that case,each co-permittee member is subject to its -2- • FACT SHEET Neuse River Compliance Association FINAL NPDES PERMIT NPDES No. NCC000001 individual TN limit from Appendix A. If the Association as a whole complies with its limit,the member dischargers are not subject to individual limits for that calendar year. Changes in Membership or TN Allocations The TN allocations of the co-permittee members can change as the result of purchases,sales,trades, leases,and other transactions.These changes,in turn,affect the Association's TN allocation.Changes in membership also affect the Association's allocation due to the addition or subtraction of the discharger's allocation from the group total. Whenever changes in the allocations or the membership occur,Appendix A of the permit must be modified in order to formally incorporate those changes and adjust the enforceable limits in the permit. The TN allocations and limits are expressed as calendar year values;therefore,any adjustments can become effective only at the beginning of the calendar year(January 1)following the transaction or membership change.The Association will notify the Division each year of proposed changes in Appendix A(see Reporting Requirements,below). Initial Co-Permittee Members The Association is currently comprised of the following co-permittee members and facilities: Co-Permittee Member Facility 1. Town of Apex Middle Creek WWTP 2. Town of Benson Benson WWTP 3. Town of Cary North WWTP South WWTP 4. Johnston County Central Johnston County WWTP White Oak Plantation WWTP Buffalo Creek WWTP 5. Town of Clayton Little Creek WWTP 6. Contentnea MSD Contentnea MSD WWTP 7. NC DHHS Butner WWTP 8. Town of Farmville Farmville WWTP 9. City of Goldsboro Goldsboro WWTP 10. Town of Kenly Kenly Regional WWTP 11. City of Kinston Peachtree WWTP Northside WWTP 12. Town of La Grange La Grange WWTP 13. City of New Bern New Bern WWTP 14. City of Raleigh Neuse River WWTP 15. Town of Wake Forest Wake Forest WWTP 16. City of Wilson Wilson WWTP 17. Town of Zebulon Little Creek WWTP The TN allocation for each member is included in Appendix A of the permit.These allocations include the original allocation assigned to the facility in the Wastewater Discharge rule plus any allocation acquired through regionalization or other transactions. At this permit is released for public review,several additional dischargers are attempting to complete the process of joining the Association.The Division proposes to include any such facilities as co- permittees under this permit if the Association provides a revised permit application prior to the end of the public comment period.The facilities and their TN allocations would be added to the list in Appendix A and the Association TN allocation would be adjusted as already described to reflect those additional facilities. -3- • FACT SHEET Neuse River Compliance Association FINAL NPDES PERMIT NPDES No. NCC000001 The Association also holds the TN allocation originally assigned to Burlington Industries(formerly NC0001376),which the industry deeded to the Association. Monitoring Requirements All members of the Association are required under the individual NPDES permits to monitor TN on a regular basis and report the results in their Discharge Monitoring Reports(DMRs).The group compliance permit does not duplicate these monitoring requirements or require additional TN monitoring. Instream monitoring is not required under this permit.However,it is required of the co-permittee members through their individual NPDES permits and,for most,is conducted by the Lower Neuse Basin Association,a coalition of dischargers that,by agreement with the Division,conducts instream monitoring for its members. Reporting Requirements Each member will continue to report its TN monitoring results on its individual DMRs.The Association is not required to duplicate these detailed reports. The Association will submit year-end,mid-year,and 5-year reports on its activities to the Division.The year-end report(due February 28 of each year)will include an accounting of the Association's and its members'TN discharges for the previous calendar year for compliance purposes.It will also include a list of transactions during that period affecting TN allocations,an assessment of progress made,and planned activities for the coming year.The mid-year report(due August 31 of each year)will include an updated accounting of TN discharges for informational purposes.It will also identify any changes in TN allocations or in membership for the following year and will serve as a request to modify Appendix A to incorporate those changes.The 5-year report(due July 1,2007)is intended to ensure that the Division and the Association agree on the group and individual allocations at the end of the permit term. Compliance The Association is required by rule to make offset payments to the Wetlands Restoration Fund for any calendar year in which it exceeds its TN limit.In addition,the Division may take appropriate enforcement action against the Association or its co-permittee members or both in the event that they exceed applicable TN limits in the permit. OTHER SPECIAL CONDITIONS Total Nitrogen. The permit includes a special condition describing how Total Nitrogen mass loads are to be calculated. PUBLIC COMMENT ON DRAFT PERMIT The Division solicited public comment on the draft permit. Public notices were published once in each of the following newspapers during the period of October 19-23,2002,and comments were accepted through November 22: Newspaper County Daily Reflector Pitt Franklin Times Franklin News&Observer Wake Oxford Public Ledger Granville Pamlico News Pamlico Smithfield Herald Johnston Wilson Times Wilson -4- • FACT SHEET Neuse River Compliance Association FINAL NPDES PERMIT NPDES No.NCC000001 Newspaper County Washington Daily News Beaufort Courier Times Person Durham Morning Herald Durham Rocky Mount Telegram Nash The Division received two responses during the comment period,from the Permittee and from the USEPA Region 4,and the Response to Comments is attached.The following is a summary of significant permit changes made in response to those comments: Reference to Minor Permit Modifications. Condition A.(2.)(b.)(iv.)of the draft permit,which refers to certain permit modifications as"minor,'is inconsistent with federal NPDES regulations and has been removed from the permit. Addition of Appendix B. The final permit includes a new Appendix B,which contains a complete list of facilities that were assigned a TN allocation under the State's nutrient management rule for wastewater dischargers in the Neuse River Basin.The new appendix also specifies the aggregate TN allocation for these point sources,as established in the State rule and in the approved TN TMDL for the Neuse River estuary. Description of Applicability of Standard Permit Conditions. The standard conditions in Parts II and III of the permit were developed for and intended to apply to permittees that own or operate treatment facilities.The Association is a governing body and neither owns nor operates any such facilities;and the Co-Permittees are subject to the same conditions through their individual NPDES permits.Thus,many of the conditions are not applicable.The final permit retains Parts H and III in their entirety. In addition, it includes a new condition(at the beginning of Part II)which defines the applicability and enforceability of these standard conditions. In addition,the Association requested a change in the list of Co-Permittee Members on December 18, 2002. Revisions to Appendix A.The Association's Board voted at its December meeting to delay admission of USMC Cherry Point Air Station until certain concerns are resolved.The issue appears to be the facility's inability,as a federal installation,to agree to monetary penalties under specific conditions,as expected of all Association members. The issue is unprecedented in North Carolina's permitting experience.The Division agrees that it is the Association's prerogative to accept or deny admission under these circumstances.The roster and allocations in Appendix A have been modified to delete Cherry Point,with the understanding that it can be restored once the issue is resolved.This means, however,that Cherry Point's membership cannot become effective until 2004. -end- -5- RESPONSE TO COMMENTS Neuse River Group Compliance Association NPDES No.NCC000001 December 30,2002 The Neuse River Compliance Association and its member dischargers applied on October 1,2002, for a new NPDES permit to govern the group's discharge of Total Nitrogen to the Neuse River and its tributaries.The Division solicited public comment on the draft permit.Public notices were published once in each of the following newspapers during the period of October 19-23,2002,and comments were accepted through November 22(the last were received on November 21): Newspaper County Daily Reflector Pitt Franklin Times Franklin News&Observer Wake Oxford Public Ledger Granville Pamlico News Pamlico Smithfield Herald Johnston Wilson Times Wilson Washington Daily News Beaufort Courier Times Person Durham Morning Herald Durham Rocky Mount Telegram Nash The Division received two responses during the comment period,from the Permittee and from the USEPA Region 4,and those are attached for reference.The comments and the Division's responses are presented below. Definition of Minor Modification Comment: The EPA objected to language in Condition A.(2.)(b.)(iii.),which declares that changes in the TN Allocations in Appendix A as the result of transactions or changes in membership will be considered to be"minor"permit modifications. They note that such changes would be considered a"major"modification in accordance with 40 CFR§122.62 and would be subject to public notice and review. Response: Comment noted. Action Taken: The Division has deleted Condition A. (2.)(b.)(iii.)from the final permit. (See the following comments concerning Appendix A.) Appendix A Comment: As a possible solution to the above objections,EPA suggested that the permit be expanded to include two appendices: one to list all permitted dischargers that have been assigned a Total Nitrogen allocation,a second(currently entitled -1- Response to Comments (cont.) Neuse River Compliance Association,NCC000001 "Appendix A")to list only the Co-Permittee Members of the Association. In this approach,the first appendix would define"all possible known loading scenarios" in the permit,so that the EPA could consider changes in membership to be changes in ownership,which are defined as minor permit modifications under 40 CFR§122.63. Response: The approach suggested by the EPA is workable under North Carolina's group compliance concept with one provision that EPA,the Association,and the Division agreed to at our October meeting in Raleigh:that it will be acceptable to the EPA for the new appendix to specify only the aggregate TN allocation for the point sources and not the individual allocations for each discharger.As we explained,including the individual allocations in this appendix would create an inordinate administrative burden for the Division,because a change in any discharger's allocation would require a modification of this appendix. Action Taken: The final permit includes two appendices. Appendix A is unchanged and contains the list of Co-Permittee Members and their individual TN allocations,as in the draft permit.A new Appendix B lists all permitted dischargers holding a TN allocation in the Neuse River Basin and notes their combined estuary allocation.This allocation is currently 1.64 million pounds TN per year, consistent with the state's nutrient management rule and the Phase II TN TMDL approved by the EPA. Applicable TN Limits for Co-Permittee Members of the Association Comment: The EPA asked for clarification of the intent of Condition A.(6.)(c.).Specifically, they asked whether Co-Permittee Members will be subject to their individual limits in the Association permit or to the TN limits in their individual permits, when and if the Association exceeds its allocation.They requested that the condition be changed to reflect the latter. Response: There is a certain hierarchy of TN limits under the group compliance approach, which can be summarized as follows: • Any discharger that is not a member of the Association is subject to the TN limit (if any)in its individual NPDES permit. • Any discharger that is a Co-Permittee Member of the Association shall be subject to limits specified in the Association's permit. o The Association,as the governing body,is subject at all times to the aggregate Estuary TN Allocation of its Co-Permittee Members;that allocation is given in Appendix A of the permit. o When the Association is in compliance with its Estuary TN Allocation(its TN limit)for a given year,all Co-Permittee Members are by definition in compliance,regardless of whether they met the individual allocations listed in Appendix A. o If the Association is not in compliance for the year,the Co-Permittee Members are subject to their respective TN allocations in Appendix A. • If a Co-Permittee Member leaves the Association for any reason,it once again becomes subject to the TN limits specified in its individual permit. In this approach,a Co-Permittee Member is subject only to the TN requirements in the Association permit so long as the discharger remains a member.The -2- Response to Comments(cont) Neuse River Compliance Association,NCC000001 discharger is not subject to the TN limits in its individual permit until it leaves the Association. Action Taken: No change in the Condition is necessary. Process for Modifying TN Limits in Individual NPDES Permits Comment: The EPA noted that any transactions among the Co-Permittee Members that resulted in a change in their individual TN allocations could also affect the TN limits in their individual NPDES permits.They asked for clarification on the process by which individual permits will be modified. Response: Consistent with the approach described in an earlier response(above),the Division will modify the TN limits in individual NPDES permits(1)when it is critical that those limits accurately reflect the discharger's actual TN allocation; or(2)if not critical,at renewal or when the permit is re-opened for other reasons. The affected dischargers are subject to one individual TN limit in any given calendar year.They are subject to the TN limits in their individual permits unless they are Members of a Compliance Association.Members are subject to the aggregate and,under certain conditions,individual TN limits in Appendix A of the Association's permit. Association Members are not subject to the TN limits in their individual NPDES permits. It is critical that each discharger's applicable TN limit accurately reflect its current allocation and that the governing permit(whether the Association's or an individual discharger's)be modified in a timely fashion to reflect any changes in allocation that occur. If a Member's allocation changes,Appendix A of the Association permit must be modified to incorporate the change.The Association is required to notify the Division each mid-year of any adjustments that are needed so that there is ample time to modify the permit. (Changes in allocations/ limits become effective only on the January 1 following the modification.)It is usually not critical in these situations to modify the Members'individual permits,because those TN limits are not applicable.These modifications can just as well be made when the permit is renewed or reopened for more pressing reasons. If a Member leaves the Association,it is critical that both the Association's and the ex-Member's permits be modified. As mentioned earlier,the Association is required to notify the Division in its mid-year report of such changes. In addition,the Association is required to submit a report,concurrent with its application for renewal,summarizing the individual allocations for all of its Co- Permittee Members and all TN transactions for the previous five years.This report will ensure that the Division and the Association maintain a complete and accurate accounting of the Members'TN allocations. Action Taken: None required. -3- • Response to Comments (cont.) Neuse River Compliance Association,NCC000001 Linkage to Individual NPDES Permits Comment: The EPA noted that every Co-Permittee's individual NPDES permit should have language referencing membership in the Association and requested a schedule for addition of such language to the Co-Permittee's permits. Response: The Division has provided Region 4 with a draft of such language,for review and comment.Permits in the Neuse River basin are up for renewal beginning in January 2003,and the agreed-upon language will be incorporated into all of the permits at that time. Action Taken: No change in the Association permit is necessary. Standard Permit Conditions Comment: Both the EPA and the Association commented on the applicability of Parts II and III,Standard Conditions for NPDES Permits,in the new permit.They pointed out that these conditions pertain to the operation of and the discharge from individual treatment facilities.Each of the Association's members owns and/or operates treatment facilities and is already subject to the same standard conditions in its individual NPDES permit.The Association,on the other hand, is simply the governing body for this group of dischargers and should not be subject to all of the standard conditions for dischargers. The EPA indicated that it is appropriate to include the standard conditions in this permit but that many(identified in their comments)should not apply to the Association. The Association proposed that an introductory paragraph be included in Part II in order to clarify the intent of the permit and the applicability of the Standard Conditions in this case. Response: The Division agrees that many of the Part II and III Standard Conditions are not applicable to the Association.The conditions may be of some value if left in the Association permit,as a reminder of the conditions in the individual permits,so long as it is clear that the Association will not be held accountable for actions by its members that are properly addressed through their individual permits. Action Taken: The final permit retains Parts II and III,Standard Conditions,in their entirety. In addition,the Division has added a new condition to Part II specifying which of these conditions(the same as in EPA's comments)do not all apply to the Association and are not enforceable through this permit. Allocation for Regionalized Facilities Comment: The Association expressed concern that its members were not receiving proper credit upon regionalizing certain treatment facilities.They noted that the difference between the expected and the actual transfers of TN allocation would amount to several million dollars if purchased from the Wetlands Restoration Fund.They are willing to accept the reduced allocations but expect full credit in the future. Response: Group TN allocations have changed little since the EMC adopted temporary rule changes in 2000;and individual allocations for the large dischargers have not changed since that time. However,the individual allocations of most or all of the small dischargers have shifted. -4- • Response to Comments (cont.) Neuse River Compliance Association,NCC000001 The Division made a diligent effort to correct the mistakes originally found in the allocations.Still,we continued to find errors in the flow values used to calculate the individual allocations.In most cases,the values we used were low because they did not reflect"phased" flows that were allowed in the 1995 permits. As we corrected these flows,the total permitted flow for the small discharger group increased,but the group's TN allocation remained fixed.Consequently,the dischargers'individual allocations varied as their proportion of the group's permitted flow changed. The Division submitted final nutrient rules to the Environmental Management Commission at its October 2002 meeting.With the rule package we provided a detailed list of each individual TN allocation as defined under the rule.We also provided that reference list to the Association.To the best of our knowledge,the list contains the corrected allocations for every discharger.We consider this to be the definitive list of allocations for the Neuse point sources. Action Taken: The Division will refer to the new allocations list when transferring TN allocations in response to regionalizations or other transactions.The Division will also update the Co-Permittee Members'individual TN allocations in Appendix A to reflect the values in the master list. -end- -5-