NCC000001_Modification of Permit_20061229

• ��F Mr Michael F.Easley,Governor
State of North Carolina
William G.Ross,Jr.,Secretary
Department of Environment and Natural Resources
pAlan W.Klimek,P.E.,Director
Division of Water Quality
December 29,2006
Mr.Haywood Phthisic III,President
The Neuse River Compliance Association
PO Box 2263
Smithfield,North Carolina 27577
Subject: Modification of Permit No.NCC000001
Neuse River Compliance Association
Dear Mr.Phthisic:
The Division has reviewed the Association's August 28,2006 letter requesting modification of its
NPDES permit for calendar year 2007;and Mr.Glenn Dunn's December 29 letter regarding the
Town of Clayton's allocation.We are enclosing the modified pages of the permit(cover sheet and
Appendix A)for your records.Please substitute these for the corresponding pages in your current
permit.
The new Appendix A reflects the changes that were made in its members'individual NPDES
permits in 2006,as follows:
• transfer of allocation from the Jones Dairy Farm WWTP(formerly NC0064149)to the Smith
Creek WWTP(NC0030759), as the result of Jones'connection to the Smith Creek system and its
subsequent permit rescission.
• transfer of ownership of the Town of Zebulon's Little River WWTP(NC0079316)to the City of
Raleigh.
• transfer of ownership of the Town of Butner WWTP(NC0026824)from the NC Department of
Health and Human Services(DHHS)to the South Granville Water and Sewer Authority
(SGWASA).
• transfer of reserve allocation from SGWASA to the Town of Clayton for its Little Creek WWTP
(NC0025453).
The appendix also makes note of the remaining allocation that SGWASA still holds in reserve.
With these adjustments,the Association's Estuary TN Allocation increases by 1,618 lb/yr,from
1,137,171 to 1,138,7891b/yr for calendar year 2007.SGWASA and Clayton hold an additional 6,113
lb/yr of estuary allocation in reserve.
Clayton Allocation
The Association makes the case that,to be consistent with the wastewater discharger rule,the
group's aggregate allocation should include Clayton's reserve.However,the Division has decided
1617 Mail Service Center,Raleigh,North Carolina 27699-1617 Telephone[phone] FAX[phone] -Pool,
;0oe Calc, a
512 N.Salisbury Street,Raleigh,North Carolina 27604 On the Intemet at http://h2o.enr.state.rr—us/ IPol, }�
An Equal Opportunity/Affirmative Action Employer d 1'u uy

Mr.Haywood Phthisic III,President
Modification of Permit No.NCC000001
December 29,2006
for 2007 to list the reserve allocation separately in a footnote of Appendix A and not include it in the
aggregate allocation.
As we all continue to discover,the Neuse rule does not address a number of unforeseen issues,and
we must use our best judgment in interpreting the rule.We collectively made one such
interpretation in the 2005 permit negotiations among the Association,the Division,and the Neuse
River Foundation.The parties agreed that any future changes in the members'nitrogen limits would
first be made in the members'individual permits and that the Association permit would merely
reflect the limits found in those individual permits.This approach ensures that(1)the Division
considers localized water quality impacts(so-called"hot spots")before modifying nitrogen limits,as
required in the rule,and (2)its decision is subject to the same public scrutiny as similar permitting
actions elsewhere.The rule is silent on the details of modifying individual and group limits,and this
approach seemed a reasonable way to address the parties'concerns and move the program forward.
By addressing substantive issues through the individual permits,this approach also allows us to
treat such modifications of the Association's permit as"minor mods."
When Clayton purchased a portion of SGWASA's reserve allocation in 2006,it chose to hold its new
allocation in reserve and did not ask for an increase in its nitrogen limit.Thus,the transfer has not
undergone the substantive review we agreed would precede changes in the group permit.The Town
must obtain a permit modification,including public review,in order to"activate"the reserve
allocation.Until that time,the Division believes it would be contrary to the 2005 agreement to treat
the allocation as active in any permit.
Another consideration is that Clayton's new allocation was originally part of the allocation DHHS
purchased in 2003 from the Bay River MSD,and that allocation has,in effect,been held in reserve
since it was purchased.If we now add Clayton's reserve to the Association's aggregate allocation,it
only follows that we should do the same with SGWASA's reserve.But that reserve has been left out
of the group permit altogether,pending the results of the Falls Lake study.Adding one or both of
these reserves as active allocation would,again,run counter to the 2005 agreement.
The Division agrees that the distinction between"reserve"and"active"allocations is a new and
significant issue in implementing the Neuse nutrient strategy.None of us foresaw the issue when
the strategy was first developed(or for several years after,for that matter),and the wastewater
discharger rule makes no reference to it.Nonetheless,the distinction exists,and we must all address
it as best we can while remaining within the bounds of the larger strategy and state and federal
permitting requirements.The Division believes the changes in Appendix A are reasonable and do
the Association no harm for 2007.And we look forward to a more satisfactory discussion and
resolution of this issue(and others)as part of next year's permit renewal.
Other Terms and Conditions
All other terms and conditions contained in the original permit remain unchanged and in full effect.
This permit modification is issued under the requirements of North Carolina General Statutes 143-
215.1 and the Memorandum of Agreement between North Carolina and the U.S.Environmental
Protection Agency.
2

•Mr.Hood Phthisic III,President
Modification of Permit No.NCC000001
December 29,2006
If any parts,measurement frequencies or sampling requirements contained in this permit
modification are unacceptable to you,you have the right to an adjudicatory hearing upon written
request within thirty(30)days following receipt of this letter. This request must be a written
petition conforming to Chapter 150B of the North Carolina General Statutes,filed with the Office of
Administrative Hearings(6714 Mail Service Center,Raleigh,North Carolina 27699-6714). Unless
such demand is made,this decision shall be final and binding.
If you have any questions concerning the draft permit,please call Mike Templeton at(919)733-5083,
extension 541,or contact him by e-mail at mike.templeton®ncmail.net.
Sincerely,
�k&
(' ,Alan W.Klimek, E.
Enclosure(s): Modified Cover Sheet&Appendix A,NPDES Permit NCC000001
cc(w/enclosures): Cindy Finan,Executive Officer,NRCA
Glenn Dunn,Poyner&Spruill,PO Box 10096,Raleigh,NC 27605-0096
H.Dale Crisp,Raleigh Public Utilities Director,P.O.Box 590,Raleigh,NC 27602
Lindsay Mize,SGWASA,211 West C St.,Butner,NC 27509
Steve Biggs,Clayton Town Manager,P.O.Box 879,Clayton,NC 27520
Dean Naujoks,Upper Neuse Riverkeeper,112 Blount St.,Raleigh,NC 27601
Roosevelt Childress,EPA Region 4
Raleigh and Washington Regional Offices
Basinwide Planning Unit
"ES Unit Files
Central Files
3

Permit No.N�-'C000001
STATE OF NORTH CAROLINA
DEPARTNUNT OF ENVIRONMENT AND NATURAL RESOURCES
DIVISION OF WATER QUALITY
PERMIT
TO DISCHARGE WASTEWATER UNDER THE
NATIONAL POLLUTANT DISCHARGE EL.IlVIINATION SYSTEM
In compliance with the provisions of North Carolina General Statute 143-215.1,other lawful standards
and regulations promulgated and adopted by the North Carolina Environmental Management
Commission,and the Federal Water Pollution Control Act,as amended,
The Neuse River Compliance Association
and Its Co-Permittee Members
are hereby authorized to discharge Total Nitrogen from the Co-Permittee Member treatment facilities
listed herein to receiving waters in the Neuse River Basin in accordance with effluent limitations,
monitoring requirements,and other conditions set forth in this Permit.
This Permit shall become effective ...............................................................................................January 1,2007
This Permit and the authorization to discharge shall expire at midnight on ..................December 31,2007
Signedthis day..........................................................................................................................December 29,2006
Alan W\Klimek,P.E.,Director
Division of Water Quality
By Authority of the Environmental Management Commission
Issued December 30,2002
Modified February 28,2003;January 20,2004;
December 30,2004; May 26,2005;
December 29,2005;December 29,2006.

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THE NEUSE RIVER COMPLIANCE ASSOCIA'T'ION r1
POST OFFICE BOX 1562
APEX, NORTH CAROLINA 27502 i l
_J
August 28,2006
Mr.Alan Klimek,P.E.,Director
Division of Water Quality
North Carolina Department of Environment and Natural Resources SEP Q a 20
1617 Mail Service Center
Raleigh, North Carolina 27699-1617 ON.OF WATER QUALITY
DgWORS OM-1=
Re: NPDES Permit No.NCC000001
Permit Modification Request
Dear Mr. Klimek:
In accordance with the NPDES Permit No.NCC000001, issued to the Neuse River Compliance
Association,we would like to request several permit modifications to address changes in the allocations of
several of our members in 2006.
There have been no additions to the membership of the NRCA. The City of Raleigh has accepted the flow
from Jones Dairy Farm W WTP when it was taken out of service and has added this flow to the Smith
Creek Plant. Jones Dairy Farm was operating under NPDES Permit No.NCO064149 at.16 MGD. The
nitrogen allocation associated with this plant was 3,235 lbs at the discharge, 1,618 lbs at the estuary with a
transport factor of 50%.
We would anticipate that the association's permit for 2007 would reflect the following changes regarding
the City of Raleigh's Smith Creek W WTP:
1) The allocation for Jones Dairy Farm(NC0064149)should be added to the allocation for the
Smith Creek WWTP,for a total of 70,814 lbs at the discharge and 35,407 lbs at the estuary.
In addition,the Town of Clayton,which operates under NPDES Permit No.NC0025453,was successful in
acquiring 3,668(estuary) lbs/yr of Total Nitrogen from South Granville Water and Sewer Authority. It is
our understanding that the Division and the Town of Clayton have several options for how to reflect this
acquisition in the Town of Clayton's individual NPDES permit. We would respectfully request that this
additional allocation be reflected in their permit in such a way that would allow this allocation to be added
to the NRCA permit as well.
We would anticipate that the association's permit for 2007 would reflect the following changes regarding
the recent acquisition of this nitrogen by the Town of Clayton.
1) The addition of the purchased allocation of 3,668 pounds per year of Total Nitrogen to the
total combined allocation of the NRCA.
Finally,the Town of Zebulon's NPDES permit,NC0079316,will change ownership to the City of Raleigh,
with a projected effective date of Oct.2,2006. If this change of ownership is processed in time to be
reflected in the NRCA permit,we would request this change as well.
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We realize that these individual permits mentioned above,may still be subject to public notice and
comment. We would ask that these modifications be made to the NRCA permit contingent upon the
individual permits being modified. If you have any questions about these revisions,please do not hesitate
to contact me at 919/209-8333 or Cindy Finan,our Executive Director at 919/387-3478.
Z III-
Chairman
IIChairman
Cc: Dale Crisp,City of Raleigh
Dan McLawhorn,City of Raleigh
H.Glenn Dunn,Poyner and Spruill