HomeMy WebLinkAbout20150636 Ver 1_MBISigned_20151006AGREEMENT TO ESTABLISH THE NEVILLE FARMS MITIGATION BANKING
INSTRUMENT FOR RIPARIAN BUFFER MITIGATION AND NUTRIENT OFFSET
CREDITS PURSUANT TO THE JORDAN WATER SUPPLY NUTRIENT STRATEGY
TABLE OF CONTENTS FIL
I- PREAMBLE ............................................................ ..............................2
11- LOCATION AND GEOGRAPHIC SERVICE AREA ........... ..............................2
III- AUTHORITIES ........................................................ ..............................3
IV - ESTABLISHMENT OF NEVILLE FARMS BANK PARCEL (S) ...........................3
V - PRE- CONSTRUCTION DOCUMENTATION ................... ..............................4
VI - POST - CONTRUCTION DOCUMENTATION ................... ..............................6
VII - CALCULATION OF MITIGATION CREDITS ................... .............................10
VIII - CREDIT RELEASE SCHEDULE .................................... .............................12
IX - PROCEDURE FOR DEBITING AND CREDITING MITIGATION CREDITS .......... 12
X- BANK PARCEL CLOSURE .................................. ............................... ...14
XI - GENERAL PROVISIONS ............................................ .............................15
ATTACHMENTS Il U I U
A— Division of Water Resources Authority document S E P 0 9 2015 i
B — Rule Text 15A NCAC 02B .0240 f
C — Rule Text 15A NCAC 02B .0295 (Effective October 24, 2014) DENR -WATER RESOURCES
401 & SUFFER PERMITTING
D — Jordan Buffer Ledger Template
E — Jordan Nutrient Offset Ledger Template
AGREEMENT TO ESTABLISH THE NEVILLE FARMS MITIGATION BANKING
INSTRUMENT FOR RIPARIAN BUFFER MITIGATION AND NUTRIENT OFFSET
CREDITS PURSUANT TO THE JORDAN WATER SUPPLY NUTRIENT STRATEGY
L PREAMBLE
This Mitigation Banking Instrument ( "Instrument ") regarding the establishment, use,
operation, and maintenance of the Neville Farms Nutrient and Buffer Mitigation Bank Parcel
(`Bank Parcel ") to provide Jordan Lake Riparian Buffer Mitigation Units ( "Riparian Buffer
Credits ") and Jordan Lake nutrient load reduction credit ( "Nutrient Offset Credits ") is made
and entered into by and among Watershed Investments NC, LLC, acting as the Bank Sponsor
( "Sponsor "), and the North Carolina Department of Environment and Natural Resources —
Division of Water Resources ( "DWR "). This Instrument is in accordance with 15A NCAC
02B .0240 (see Attachment B), and the temporary Consolidated Mitigation Rule 15A NCAC
02B .0295 (see Attachment C), which became effective on October 24, 2014.
The purpose of the Bank is:
A. To improve water quality in Neville Creek and downstream waters through the
restoration and preservation of riparian buffer habitat and adjacent riparian areas; and
B. To provide mitigation and sell Riparian Buffer Credits and Nutrient Offset Credits,
nitrogen and/or phosphorous, to third parties in the Upper New Hope Sub - watershed for
development (both existing and proposed) requiring such mitigation.
II. LOCATION AND GEOGRAPHIC SERVICE AREA
A. The Geographic Service Area ( "GSA ") is the designated area wherein a
Bank can reasonably be expected to sell Riparian Buffer Credits and/or
Nutrient Offset Credits for impacts due to development activities.
B. The Bank Parcel is comprised of two rural tracts (Tract 1 and Tract 2) in
Orange County, South of Chapel Hill, North Carolina and in the 14 -digit
Hydrologic Unit Code 03030002060070 of the Upper New Hope Sub -
watershed of Jordan Lake. Tract 1 is accessed from a right -of -way
entrance at 1426 Old Greensboro Highway. Tract 2 is accessed from
Stansbury Rd which intersects Bowden Rd. The Site's longitude and
latitude in decimal degrees are - 79.129 W and 35.892 N, respectively.
C. The land uses on Tract 1 of this Bank Parcel comprise of agriculture, and
the land uses on Tract 2 of this Bank Parcel comprise of managed grass
lawn.
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D. Neville Creek is the receiving body of water for stormwater runoff from
these two parcels.
E. The GSA for this Instrument is limited to the Upper New Hope Sub -
watershed of Jordan Lake as defined in rule 15A NCAC 02B .0262.
F. Sale or transfer of credits shall be limited to the Upper New Hope Sub -
watershed of the Jordan Lake watershed, as defined in Rule 15A NCAC
02B .0262.
IILAUTHORITIES
A. The Bank Parcel 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 new
approved North Carolina ( "State ") statutes and rules for the Jordan Lake
Nutrient Sensitive Waters Management Strategy.
C. All activities, including the sale of mitigation credits, shall be consistent
with approved North Carolina statutes and rules for the Jordan Lake
Nutrient Sensitive Waters Management Strategy.
IV. ESTABLISHMENT OF NEVILLE FARMS BANK PARCEL(S)
A. The Bank Parcel proposed for inclusion under this Instrument shall require
a Bank Parcel Development Package ( "BPDP ") be submitted to, and
approved by, the DWR prior to use of the Bank Parcel for mitigation
purposes or sale or transfer of any associated credits. The contents of the
BPDP are provided in Section (V).
B. The BPDP will be placed on public notice and made available for public
commenting for 15 calendar days.
C. Riparian Buffer Credit may be achieved through restoration and
preservation of the DWR riparian buffers, as defined in 15A NCAC 02B
.0267 and other riparian areas as allowed per 15A NCAC 02B .0295.
D. The Bank Parcel is expected to provide Jordan Riparian Buffer mitigation
as follows:
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1. Planting hardwood trees and shrubs on a Restoration Site, as
defined in 15A NCAC 02B .0295 (b) and per 15A NCAC 02B
.0295 (i), along Neville Creek.
2. Maintaining a Preservation Site, as defined in 15A NCAC 02B
.0295 (b) and per 15A NCAC 02B .0295 (m) along Neville
Creek.
E. Nutrient Offset Credit may be achieved through restoration of the riparian
area adjacent to Neville Creek, which is a perennial stream and is subject
to the buffer protection rule 15A NCAC 02B .0267. The width of the
restoration area begins at the most landward limit of the top of bank or the
rooted herbaceous vegetation and extends landward a maximum distance
of 200 feet on all sides of the surface water.
F. The Bank Parcel is expected to provide Nutrient Offsets as follows:
1. Planting hardwood trees and shrubs on a Restoration Site, as
defined in 15A NCAC 02B .0295 (b) and per 15A NCAC 02B
.0295 (i) (4), along Neville Creek. Land uses on the Restoration
Sites are hay /wheat cultivation on Tract 1 and managed grassed
lawn on Tract 2.
G. The total area of mitigation on the Bank Parcel is expected to be less than
10 acres.
V. PRE- CONSTRUCTION DOCUMENTATION
Bank Parcel Development Package
A. The Neville Farms Bank Parcel Development Package (BPDP) shall
include detailed information consistent with the sections below
concerning: 1) site location (14 -digit HUC is required); 2) existing land
use conditions; 3) proposed buffer mitigation and/or nutrient offset
activities including a detailed vegetation plan; 4) monitoring and
maintenance plans; 5) financial assurances; 6) associated buffer
mitigation/nutrient credit calculations, which shall include credit
generation, delivery factors, service area, and accounting as appropriate
for each regulatory authority; 7) stream buffer determination letter from
DWR (where applicable); (8) cost analysis; and (9) site viability letter
from DWR.
B. The Sponsor will obtain all applicable federal, state, and local
documentation, permits, or authorizations needed to construct and
S
maintain the Bank Parcel. This Instrument does not qualify as, or
substitute for, such documentation, permit or authorization.
C. The restoration and preservation of riparian buffers and other riparian
areas on the Bank Parcel to produce Riparian Buffer Credit or Nutrient
Offset Credit must be approved by DWR prior to construction or
renovation.
D. Requests for deviation from the approved BPDP must be submitted to the
DWR in writing. Written approval from the DWR must be received prior
to implementing any deviation from the approved BPDP.
Property Disposition & Lone Term Manaeement
E. Prior to the release of any credits, the Sponsor shall acquire a permanent
conservation easement(s) at the County Register of Deed's office that is
sufficient to ensure protection, operation and maintenance of restored
riparian buffers and other riparian areas for the duration specified in the
approved BPDP.
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 N.C. General Statute
( "G.S. ") 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.
I. In the event that 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.
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Financial Assurance
J. Following approval of the BPDP, the Sponsor shall provide a
Performance/Maintenance Bond from a surety company that is rated no
less than an "A -" as rated by A.M. Best. The Performance Bond amount
shall be 100% of the estimated cost for implementation of the mitigation
activities of the Bank Parcels described in the approved BPDP. No bond
shall be less than $50,000 to cover construction costs.
K. Alternatively, in lieu of posting the Performance Bond, the Sponsor may
elect to construct the project prior to the first credit release.
L. The Sponsor must provide cost analyses in the BPDP as part of the review
and acceptance of the amount of the performance bond, and must include
all reasonably potential contingency costs associated with the
establishment of the Bank.
M. If the Bank Parcel does not meet all of the criteria set out in items 1
through 4 below, then the Bank Sponsor must provide a minimum
performance /maintenance bond of $150,000 to cover construction costs:
1. Bank Parcel is primarily a buffer /nutrient offset riparian
restoration project with only a small area of buffer preservation;
2. The area proposed for mitigation within the Bank Parcel is 10
acres or less, as will be shown in a survey performed and sealed
by a professional surveyor registered in North Carolina;
3. The area proposed for mitigation within the Bank Parcel does not
require fencing as part of the approval;
4. The area proposed for mitigation within the Bank Parcel is not
part of a larger mitigation area that includes stream or wetland
mitigation.
N. Once DWR has released all credits for completion of Task 2 according to
the credit release schedule in Section VIII., and the DWR has received and
approved the As -Built Report as described in Section VI, the Bank
Sponsor can be released from its performance obligations under the
performance bond required in "J" of this Section.
VI. POST CONSTRUCTION DOCUMENTATION
As -Built Report
A. The Sponsor agrees to perform all necessary work, in accordance with the
provisions of this Instrument, to establish, maintain, and monitor Jordan
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Lake Riparian Buffers or other riparian areas until Items B (1) and (2) of
Section X have been satisfied.
B. The Sponsor will submit an as -built plan and report for the Bank Parcel
within 30 calendar days after completing the establishment of the buffer
area and nutrient offset area. The as -built report will describe any
deviation from the approved BPDP and will document the following:
1. Buffer restoration: planting details, invasive species control,
monitoring device locations, vegetation plot locations, photo point
locations, surface and groundwater elevations, as appropriate.
2. Boundary Survey signed and sealed by a licensed surveyor, of the
conservation easement area including an enumeration of the final
mitigation area for Riparian Buffer and /or Nutrient Offset Credits
in square feet and /or acres.
3. As -Built aerial map of the mitigation area showing where
restoration and preservation were performed.
4. Aerial map of the mitigation area that was included in the
approved Bank Parcel Development Package.
5. Cost Analysis of Monitoring and Maintenance.
Financial Assurance
C. After completion of the restoration/construction, a separate
Performance /Maintenance Bond will be secured for 100% of the estimated
cost to implement the monitoring and maintenance plan as described in the
approved BPDP. A Performance /Maintenance Bond shall be secured each
year for a minimum of five years, and until DWR has released all
mitigation credits to the Bank Sponsor. Upon DWR approval, the bond
may be lowered each year based on the adjusted cost to complete the
monitoring. No bond shall be less than $25,000 to cover monitoring and
maintenance costs.
D. The Sponsor must provide cost analyses in the As -Built report for
monitoring and maintenance, as part of the review and acceptance of the
amount of the performance bonds, and must include all reasonably
potential contingency costs associated with the establishment of the Bank.
E. If the Bank Parcel does not meet all of the criteria set out in items 1
through 4 below, then the Bank Sponsor must provide a minimum
performance /maintenance bond of $100,000 to cover monitoring and
maintenance costs, respectively:
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1. Bank Parcel is primarily a buffer /nutrient offset riparian
restoration project with only a small area of buffer preservation;
2. The area proposed for mitigation within the Bank Parcel is 10
acres or less, as will be shown in a survey performed and sealed
by a professional surveyor registered in North Carolina;
3. The area proposed for mitigation within the Bank Parcel does not
require fencing as part of the approval;
4. The area proposed for mitigation within the Bank Parcel is not
part of a larger mitigation area that includes stream or wetland
mitigation.
F. Once DWR has released all credits for completion of Tasks 1 -9 according
to the credit release schedule in Section VIII., the Bank Sponsor can be
released from its performance obligations under the performance bond
required in "C" of this Section.
Monitorine & Maintenance Reports
G. The Sponsor shall monitor and maintain the Bank Parcel 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.
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 percent 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 Restoration and Preservation Sites:
Reporting criteria of the riparian buffer restoration shall be based on the
Carolina Vegetation Survey ( "CVS ") - EEP Protocol for Recording
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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 to the DWR 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. 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:
A U.S. Geological Survey map and an aerial map showing the
location of the Bank Parcel;
2. A detailed narrative summarizing the current condition of the Bank
Parcel along with any maintenance or remediation performed
during 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 (not required on the Preservation Sites) 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
Contingencv Plans/Remedial Actions
L. In the event the Bank Parcel fails to achieve the performance standards
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.
This space left back intentionally. Do not write in this space.
VII. CALCULATION OF MITIGATION CREDITS
Riparian Buffer Credits
A. All Riparian Buffer Credits shall be determined based on the ratios and
percentages provided in 15A NCAC 02B .0295 (h) and (i).
B. Riparian buffer restoration on the Bank Parcel, as defined in 15A NCAC
02B .0295 may be used for either Riparian Buffer Credit or Nutrient
Offset Credit, but not both.
C. Riparian buffer preservation, as described in 15A NCAC 02B .0295 (m)
can only be used for Riparian Buffer Credit. These credits are not
transferrable into Nutrient Offset Credits.
D. Riparian Buffer Credit is defined as one (1) buffer credit per one square
foot or 43,560 buffer credits per one acre.
Nutrient Offset Credits
E. All Nutrient Offset Credits will be determined by including the applicable
ratio as provided in 15A NCAC 02B .0295 (h).
F. The Nutrient Abatement of Restored Riparian Area on Agricultural Lands
versus Residential- Managed Grass lawns: The Sponsor and DWR agree to
the following:
1. Pursuant to the Jordan Trading Rule Item 15A NCAC 02B
.0273(2)(a), load reductions eligible for credit are only those that
exceed reduction needs calculated by applying the strategy sub -
watershed percentage reduction goals as provided in 15A NCAC
02B .0262 (5). For this Bank Parcel's location in the Upper New
Hope, this requirement results in a reduction of credits yielded
per acre of restored riparian buffers on agricultural land when
compared with the credits given for agricultural lands in other
river basins. The nutrient offset credit generation for riparian
restoration of agricultural land on Tract 1 of this Bank Parcel is
depicted in Table 1.0 below.
2. The nutrient offset credit generation for riparian restoration of
residential - managed grass lawn on Tract 2 of this Bank Parcel is
depicted in Table 2.0, and is derived by using the Jordan Falls
Lake Stormwater Nutrient Load Accounting Tool (JFSAT)
Version 3.0 to calculate nutrient load reductions for nutrient
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offset credit where the land use is residential - managed grass
lawn.
Table 1.0 Generated credit yields for riparian restoration of Agricultural land
ICredit Generated (pounds /30 year /acre)
Jordan Sub -
watershed Nitrogen Phosphorus
Upper New Hope 2,169.26 143.81
Table 2.0 Generated credit yields for Tract 2 of Neville Farms.
Credit Generated (pounds/30 year /acre)
Jordan Sub -
watershed Nitrogen Phosphorus
I Upper New Hope 1,091.10 243.00
G. As required under Jordan Trading Rule Item 15A NCAC 02B .0273
(2)(d)(i), the party seeking to sell credits must account for differences in
instream nutrient losses between the location of the reduction need and
excess loading reduction being delivered to the affected arm of Jordan
lake.
1. Delivered credits are calculated by applying the delivery factors
to the generated credit yields from Tables 1.0 and 2.0 above.
Specific delivery factors for Total Nitrogen (TN) and Total
Phosphorus (TP) will be included in the BPDP.
2. The Bank Sponsor shall report the pounds of nitrogen and
phosphorus credit per acre of restored riparian areas in their
BPDP` for both credits generated at the site of the nutrient
reduction activity and the credits delivered to Jordan Lake.
H. The Sponsor and DWR agree that the methodology and calculations for
determining nitrogen and total phosphorous reduction, including delivery
factors, associated with the restoration of riparian areas, shall be fixed as
part of the approval of the MBI and corresponding BPDP, with the fixed
amount not changing during the development of or credit release schedule
for the Bank Parcel.
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VIII. CREDIT RELEASE SCHEDULE
A. Credit Release: Upon submittal of all appropriate documentation by the
Sponsor, and subsequent approval by DWR, it is agreed that the mitigation
credits associated with the Bank Parcel will become available for sale to a
third party in accordance with the following credit release schedule:
Table 3.0 - Credit Release Schedule for Riparian Buffer and Nutrient Offset Credits
% Credit
Available for
Task Proiect Milestone Sale
MBI and BPDP Approved by DWR, Conservation Easement Recorded* and
1 Financial Assurance Posted
20
Mitigation Site Earthwork, Planting and Installation of Monitoring Devices
1
2 Completed
20
3 Monitoring Financial Assurance Posted and Approval of As -Built Report
10
4 Monitoring Report #1: Approved by the DWR **
10
5 Monitoring Report #2: Approved by the DWR **
10
6 Monitoring Report #3: Approved by the DWR ** I
10
Item B (1) of Section X in this Instrument has been completed and approved by
7 DWR.
5
No remaining credits will be released until Task 7 has been satisfied
8 Monitoring Report #4: Approved by the DWR ** 5
Monitoring Report #5: Approved by the DWR ** and final site visit by DWR has
9 been conducted 10
Total 100%
* For specification, please see Section V in this Instrument
** DWR Approval provided upon a determination that the site is meeting performance standards contained
within the approved BPDP
B. 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.
IX. PROCEDURE FOR DEBITING AND CREDITING MITIGATION CREDITS
Credit Ledgers
A. The Bank Sponsor shall maintain four (4) credit ledgers for the Bank
Parcel under this Instrument: one accounting for buffer restoration credits
in square feet and acres, one accounting for buffer preservation credits in
square feet and acres, one accounting for nitrogen offset credits in pounds
and acres, and one accounting for phosphorus offset credits in pounds and
acres.
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B. Each credit ledger shall be submitted on a separate 8 ' /2in X 11 in
spreadsheet with legible font style and font size. All ledgers shall be
submitted using the templates provided in Attachment D and E of this
Instrument or any updated versions to these templates as provided by
DWR.
Credit Processing
C. Riparian Buffer and Nutrient Offset credits generated on this Bank Parcel
can only be provided to offset buffer impacts within the Upper New Hope
Sub - watershed of Jordan Lake, as defined in 15A NCAC 0213.0262.
D. Available mitigation credits (credits that have been released by DWR but
not sold by the Sponsor) that are generated from riparian restoration, as
defined in 15A NCAC 02B .0295 (b) and described in 15A NCAC 02B
.0295 (i), can be converted and transferred from Riparian Buffer Credits to
Nutrient Offset Credits and from Nutrient Offset Credits to Riparian
Buffer Credits upon written approval from DWR. Ratios and percentages
of full credit will be applied to Riparian Buffer Credits according to 15A
NCAC 02B .0295 (h) and (i) and ratios will be applied to Nutrient Offset
Credits according to 15A NCAC 02B .0295 (h).
E. Riparian buffer preservation credits are not transferrable into nutrient
offset credits.
F. The Bank Sponsor shall obtain written verification of buffer mitigation
required from the delegated local government in the Upper New Hope
Sub - watershed or DWR prior to debiting Riparian Buffer Credits from the
Bank Parcel.
G. The Bank Sponsor shall obtain written verification of nutrient offset need
from a designated local government in the Upper New Hope Sub -
watershed prior to debiting Nutrient Offset Credits from the Bank Parcel.
H. All credit and debit transactions for each Bank Parcel under this
Instrument shall be accurately depicted in the credit ledgers. DWR shall
be notified of each credit sale within thirty (30) calendar days by
electronically submitting an updated credit ledger to DWR. At a
minimum, DWR shall receive a hard copy of updated credit ledgers along
with the corresponding Mitigation Credit Transfer Certificates and all
corresponding letters from the designated local governments twice a year.
Notification of all credit sales shall be provided to DWR until all credits
that have been released have been sold.
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Mitigation Credit Transfer Certificates
I. All credit sales will include a Mitigation Credit Transfer Certificates
( "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) sponsor Name, (2) name of the approved
banking instrument as it appears on the instrument document, (3)
bank parcel name as it appears on the BPDP, (4) DWR project
number for the BPDP.
2. Credit Details: (1) date of receipt, (2) identify if full or partial
payment, (3 — when applicable) amount of nitrogen credits
purchased in pounds and confirmation from the designated local
government of the amount required, (4 — when applicable)
amount of phosphorous credits purchased in pounds and
confirmation from the designated local government of the
amount required, and (5 — when applicable) amount of Riparian
Buffer Credits purchased in square feet and the confirmation
from DWR or the local government of the amount required.
3. Project Details: (1) project name as it appears on DWR or local
government permits and /or certifications, (2) 14 -digit HUC and
the sub - watershed for the Jordan Lake Nutrient Strategy), (4)
nutrient strategy applicable to the project, (5 — when applicable)
designated local government requiring Nutrient Offset Credits,
and/or (6) DWR Authorization or Variance number or delegated
local government requiring Riparian Buffer Credits for this
project.
J. If the DWR determines that the Bank is operating at a deficit (e.g. the
Sponsor is closing on sales and/or transferring credit that is not available),
or the Bank is selling credits out of compliance with statutes, rules or this
Agreement, the sale /transfer of credits 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
mitigation credits left to sell.
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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.
3. All credits have been released and debited and updated ledgers
showing a zero credit balance have been submitted and approved
by DWR.
XI. GENERAL PROVISIONS
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, or an authorized representative of the Director of DWR
to enter the property containing the Bank Parcel(s).
B. Amendments: This Banking Instrument may be amended or modified only
with written approval of all signatory parties.
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 Bank Parcel Closure, 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 Bank Parcel Closure, the Sponsor shall
take remedial action to restore the property to its condition prior to the
event, in a manner sufficient to provide adequate mitigation 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:
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I . Site visits.
2. BPDP review and approval of items listed in Section V of this
instrument.
3. Monitoring Report review and approval of items listed in Section
VI of this instrument.
4. As -Built Report review and approval of items listed in Section
VI of this instrument.
5. Credit Ledger review and approval of items listed in Section IX
of this instrument.
6. Certificate review of items listed in Section IX of this instrument
and cross analysis to credit ledgers.
7. 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.
G. Validity of the Banking Instrument: This Instrument will become valid on
the date of the last party'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.
I. 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 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.
This space left back intentionally. Do not write in this space.
16
If to Bank Sponsor Watershed Investments, NC, LLC
1630 Weatherford Circle
Raleigh, NC 27604
If to DWR: NC Division of Water Resources
Attn: 401 & Buffer Permitting Unit
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.
WATERSHED INVESTMENTS NC, LLC
By: Michael Herrmann (Print)
(Signature)
Title:
Date:
NORTH CAROLINA DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES
DIVISION OF WATER RESOURCES
By: Jay Zimmerman
Title: Director =Division of Water Resources
Date:
17
(Print)
- (Signature)
Updated
Nutrient Offset Program & Buffer Mitigation Program 09/15/2015
MBI Authorities for Watershed Investments, NC, LLC
ATTACHMENT A
Authorities pertaining to the Neville Farms Mitigation Banking Instrument
All Basins
General Statutes:
G.S. § 143- 214.11 Ecosystem Enhancement Program
G.S. § 143 - 214.26 Nutrient Offset Credits
G.S. § 143- 214.20 -24 Riparian Buffer Protection Program
G.S. § 143 -214.7 Stormwater runoff rules and programs
G.S. § 143- 215.8B Basinwide Water Quality Management Plans
Session Laws
S.L. 2015 -246
S.L. 2015 -149
S.L. 2014 -90
S.L. 2014 -120
S.L. 2013 -413
S.L. 2013 -121
S.L. 2013 -265
S.L. 2012 -200 (Amendment to G.S. §143- 214.23 and G.S. §143- 215.1)
S.L. 2011 -343 (Amendment to G.S. §143- 214.11)
S.L. 2009- 337 (Amendment to G.S. §143- 214.11)
Administrative Rules:
15A NCAC 02B .0202 Definitions
15A NCAC 02B .0223 Nutrient Sensitive Waters
15A NCAC 02B .0237 Best Management Practice Cost - Effectiveness Rate
15A NCAC 02B .0240 Nutrient Offset Payments
15A NCAC 02B .0295 Mitigation Program Requirements for Protection and Maintenance of Riparian Buffers
Jordan Buffer and Jordan Water Suanly Nutrient Strategy,
General Statutes and Session Laws:
G.S. §143 -214.5 Water Supply Watershed Protection)
S.L. 2013 -395
S.L. 2012 -201
S.L. 2012- 200S.L.2012 -187
S.L. 2009 -216
S.L. 2009 -484
S.L. 2006 -259 (Section 31(a))
S.L. 2005 -190
S.L. 1999 -329 (part of G.S. 143B -282)
Administrative Rules:
15A NCAC 2B .0262 Purpose and Scope
15A NCAC 2B .0263 Definitions
15A NCAC 2B .0264 Agriculture
15A NCAC 2B .0265 Stormwater Management for New Development
15A NCAC 2B .0267 Jordan Water Supply Nutrient Strategy: Protection of Existing Riparian Buffers
15A NCAC 2B .0270 Wastewater Discharge Requirements
15A NCAC 2B .0271 Stormwater Requirements for State and Federal Entities
15A NCAC 2B .0272 Fertilizer Management
15A NCAC 2B .0273 Options for Offsetting Nutrient Loads
ATTACHMENT B
15A NCAC 02B.0240 NUTRIENT OFFSET PAYMENTS
(a) The purpose of this Rule is to establish procedures for the optional payment of nutrient offset fees to the NC
Ecosystem Enhancement Program, subsequently referred to as the Program, or to other public or private parties where the
Program or such parties implement projects for nutrient offset purposes and accept payments for those purposes, and
where either of the following applies:
(1) The following rules of this Section allow offsee options or nutrient offset payments toward fulfillment
or maintenance of nutrient reduction requirements:
(A) .0234 and .0235 of the Neuse nutrient strategy,
(B) .0258 of the Tar - Pamlico nutrient strategy, and
(C) applicable rules of the Jordan nutrient strategy, which is described in Rule .0262; and
(2) Other rules adopted by the Commission allow this option toward fulfillment of nutrient load reduction
requirements.
(b) Offset fees paid pursuant to this Rule shall be used to achieve nutrient load reductions subject to the following
geographic restrictions:
(1) Load reductions shall be located within the same 8 -digit cataloguing unit, as designated by the US
Geological Survey, as the loading activity that is being offset;
(2) The Division shall track impacts by 10 -digit watershed, as designated by the US Geological Survey
and providers shall locate projects proportional to the location of impacts to the extent that the projects
would meet the least cost alternative criterion per S.L. 2007 -438. The location of load reduction
projects shall be reviewed during the approval process described in Paragraph (c) of this Rule;
(3) Impacts that occur in the watershed of Falls Lake in the upper Neuse River Basin may be offset only
by load reductions in the same watershed; Impacts in the Neuse 01 8 -digit cataloguing unit below the
Falls watershed, as designated by the US Geological Survey, may be offset only by load reductions in
that same lower watershed;
(4) Restrictions established in the Jordan nutrient strategy, which is described in Rule 15A NCAC 02B
.0262; and
(5) Any further restrictions established by the Commission through rulemaking.
(c) The Program and other parties shall obtain Division approval of proposed nutrient offset projects prior to
construction. Other parties shall sell credits in compliance with approved credit release schedules and with the
requirements of this Rule. Project approval shall be based on the following standards:
(1) Load reductions eligible for credit shall not include reductions used to satisfy other requirements under
the same nutrient strategy;
(2) The Program and other parties shall agree to provide adequate financial assurance to protect and
maintain load reductions for the stated duration, including for maintenance, repair and renovation of
the proposed measure;
(3) The Program and other parties shall agree that once credits are established for a measure and until they
are exhausted, they shall provide a credit/debit ledger to the Division at regular intervals;
(4) The Program and other parties shall agree that the party responsible for a measure shall allow the
Division access to it throughout its lifetime for compliance inspection purposes;
(5) The Program or other party seeking approval shall obtain a site review from Division staff prior to
Division approval to verify site conditions suitable to achieve the proposed load reductions through the
proposed measure; and
(6) The Program shall submit a proposal, and other parties shall submit a proposal or a draft banking
instrument, addressing the following items regarding a proposed load- reducing measure:
(A) Identify the location and site boundaries of the proposed measure, the geographic area to be
served by credits in compliance with the requirements of Paragraph (b) of this Rule, existing
conditions in the contributing drainage area and location of the measure, and the nature of the
proposed measure with sufficient detail to support estimates of load reduction required in this
Paragraph;
(B) Provide calculations of the annual magnitudes of load reductions and identify final credit
values incorporating any delivery factors or other adjustments required under rules identified
in Paragraph (a) of this Rule;
(C) Define the duration of load reductions, and provide a conservation easement or similar legal
mechanism to be recorded with the County Register of Deeds and that is sufficient to ensure
protection and maintenance of load reductions for the stated duration;
(D) Identify the property owner and parties responsible for obtaining all permits and other
authorizations needed to establish the proposed measure, for constructing and ensuring initial
performance of the proposed measure, for reporting on and successfully completing the
measure, for holding and enforcing the conservation easement, and for ensuring protection
and maintenance of functions for its stated duration;
(E) Provide a plan for implementing the proposed measure, including a timeline, a commitment
to provide an as -built plan and report upon establishment of the measure, elements to be
included in the as-built plan and report, a commitment to provide a bond or other financial
assurance sufficient to cover all aspects of establishment and initial performance prior to the
release of any credits, and criteria for successful completion; and
(F) Provide a monitoring and maintenance plan designed to achieve successful completion, that
commits to annual reporting to the Division until success is achieved, that recognizes the
Division's authority to require extension or re- initiation of monitoring depending on progress
toward success, and that commits to a final report upon completion. The final report shall
reaffirm the party that shall hold and enforce the conservation easement or other legal
instrument.
(d) The Program shall establish and revise nutrient offset rates as set out in Rule .0274 of this Section. Offset payments
accepted by the Program shall be placed into the Riparian Buffer Restoration Fund administered by the Department
pursuant to G.S. 143- 214.21
(e) Persons who seek to pay nutrient offset fees under rules of this Section shall do so in compliance with such rules, the
requirements of Paragraph (b) of this Rule, and the following:
(1) A non - governmental entity shall purchase nutrient offset credit from a party other than the Program if
such credit is available in compliance with the criteria of this Rule at the time credit is sought, and
shall otherwise demonstrate to the permitting authority that such credit is not available before seeking
to make payment to the Program;
(2) Offset payments made to the Program shall be contingent upon acceptance of the payment by the
Program. The financial, temporal and technical ability of the Program to satisfy the mitigation request
will be considered to determine whether the Program will accept or deny the request;
(3) Where persons seek to offset more than one nutrient type, they shall make payment to address each
type;
(4) The offset payment shall be an amount sufficient to fund 30 years of nutrient reduction.
(5) Persons who seek offsets to meet new development stormwater permitting requirements shall provide
proof of offset credit purchase to the permitting authority pri or to approval of the development plan;
and
(6) A wastewater discharger that elects to purchase offset credits for the purpose of fulfilling or
maintaining nutrient reduction requirements shall submit proof of offset credit acquisition or a letter of
commitment from the Program or third party provider with its request for permit modification.
Issuance of a permit that applies credits to nutrient limits shall be contingent on receipt of proof of
offset credit acquisition. A discharger may propose to make incremental payments for additional
nutrient allocations, contingent upon receiving a letter of commitment from the Program or third party
provider to provide the offset credit needed for permit issuance. In that event the Division may issue
or modify that permit accordingly, and shall condition any flow increase associated with that
incremental purchase on payment in full for the additional allocation. Offset responsibility for nutrient
increases covered under this Paragraph shall be transferred to the Program or third party provider
when it has received the entire payment.
(f) Credits associated with load reducing activities funded under this Rule shall be awarded exclusively to the person,
municipality, discharger, or group of dischargers who paid the offset fee.
History Note: Authority G.S. 143 - 214.1; 143 - 214.20; 143 - 214.21; S.L. 1995, c. 572; S.L. 2007, c. 438; S.L. 2009, c.
337; S.L. 2009, c. 484; S.L. 2009, c. 486;
Eff. August 1, 1998;
Amended Eff. August 1, 2006;
Amended Eff. September 1, 2010.
ATTACHMENT C
15A NCAC 02B .0295 MITIGATION PROGRAM REQUIREMENTS FOR PROTECTION AND MAINTENANCE
OF RIPARIAN BUFFERS
(a) PURPOSE. The purpose of this Rule is to set forth the mitigation requirements that apply to applicants listed in
Subparagraphs (1) and (2) of this Paragraph and to set forth requirements for buffer mitigation providers. Buffer
mitigation is required when one of the following applies:
(1) The applicant has received an authorization certificate for impacts that cannot be avoided or
practicably minimized pursuant to Rules .0233, .0243, .0250, .0259, .0267 or .0607 of this Subchapter, or
(2) The applicant has received a variance pursuant to Rules .0233, .0243, .0250, .0259, .0267 or .0607ofthis
Subchapter and is required to perform mitigation as a condition of a variance approval.
(b) DEFINITIONS. For the purpose of this Rule, these terms shall be defined as follows:
(1) "Authority" means either the Division or a local government that has been delegated or designated
pursuant to Rules .0233, .0243, .0250, .0259, .0267 or .0607 of this Subchapter to implement the riparian
buffer program
(2) "Division" means the Division of Water Resources of the North Carolina Department of Environment
and Natural Resources.
(3) "Enhancement Site" means a riparian zone site characterized by conditions between that of a
restoration site and a preservation site such that the establishment of woody stems (i.e., treeorshrub
species) will maximize nutrient removal and other buffer functions.
(4) "Hydrologic Area" means the Watershed Boundary Dataset (WBD), located at
http:// data .nconermp.com /geoportal/catalog/ search / resource /details .page ?uuid= 116A42F31 -6DC7-
4EC3- 88A9- 03E6B7D55653) using the eight -digit Hydrologic Unit Code (HUC) prepared bythe United
States Geological Survey.
(5) "Locational Ratio" means the mitigation ratio applied to the mitigation requirements based on the
location of the mitigation site relative to the impact site as set forth in Paragraph (f).
(6) "Monitoring period" means the length of time specified in the approved mitigation plan duringwhich
monitoring of vegetation success and other anticipated benefits to the adjacent water as listed inthe
authorization certification is done.
(7) "Non- wasting endowment" means a fund that generates enough interest to cover the cost ofthelong
term monitoring and maintenance.
(8) "Outer Coastal Plain" mans the portion of the state shown as the Middle Atlantic CoastalPlain(63)on
Griffith, et al. (2002) "Ecoregions of North and South Carolina." Reston, VA, United States Geological
Survey available at no cost at http: / /www.epa.gov /wed /pages /ecoregions /ncsc_eco.htm.
(9) "Preservation Site" mans riparian zone sites that are characterized by a natural forest consisting ofthe
forest strata and diversity of species appropriate for the Omemik Level III ecoregion.
(10) "Restoration Site" mans riparian zone sites that are characterized by an absence oftreesandbyalack
of dense growth of smaller woody stems (i.e., shrubs or saplings) or sites that are characterized by
scattered individual trees such that the tree canopy is less than 25 percent of the coverandbyalackof
dense growth of smaller woody stems (i.e., shrubs or saplings).
(11) "Riparian buffer mitigation unit" mans a unit representing a credit of riparian buffer mitigation that
offsets one square foot of riparian buffer impact.
(12) "Riparian wetland" mans a wetland that is found in one or more of the following landscapepositions:
(A) in a geomorphic floodplain;
(B) in a natural topographic crenulation;
(C) contiguous with an open water equal to or greater than 20 acres in size; or
(D) subject to tidal flow regimes excluding salt /brackish marsh wetlands.
(13) "Urban" mans an area that is designated as an urbanized area under the most recent federaldecermial
census available at no cost at http: / /www.census.gov/ or within the corporate limits of a municipality.
(14) "Zonal Ratio" mans the mitigation ratio applied to impact amounts in the respective zones of the
riparian buffer as set forth in Paragraph (e) of this Rule.
(c) APPLICATION REQUIREMENTS, MITIGATION SITE REQUIREMENTS AND MITIGATION OPTIONS. Any
applicant who seeks approval to impact riparian buffers covered under this Rule who is required by Paragraph (a) shall
submit to the Division a written mitigation proposal that calculates the required area of mitigation and describes thearea
and location of each type of proposed mitigation. The applicant shall not impact buffers until the Division approves the
mitigation plan and issues written authorization. For all options except payment of a fee under Paragraphs 6)or(k)ofthis
Rule, the proposal shall include a commitment to provide:
(1) a perpetual conservation easement or similar legal protection mechanism to ensure perpetual
stewardship that protects the mitigation site's nutrient removal and other water quality functions;
(2) a comnitment to provide a non - wasting endowment or other financial mechanism for perpetual
stewardship and protection; and
(3) a commitment to provide a completion bond that is payable to the Division sufficient to ensure that
land or easement purchase, construction, monitoring, and maintenance are completed.
For each mitigation site, the Division shall identify functional criteria to measure the anticipated benefits ofthemrtigation
to the adjacent water. The Division shall issue a mitigation determination that specifies the area, type, and location of
mitigation and the water quality benefits to be provided by the mitigation site. The mitigation determination issued
according to this Rule shall be included as an attachment to the authorization certification. The applicant may propose
any of the following types of mitigation and shall provide a written demonstration of practicality that takes into account
the relative cost and availability of potential options, as well as information addressing all requirements associatedwith
the option proposed:
(1) Applicant- provided riparian buffer restoration or enhancement pursuant to Paragraph (i) of this Rule;
(2) Payment of compensatory mitigation fee to a mitigation bank if buffer credits are avaiiablepursuantto
Paragraph 6) of this Rule or payment of a compensatory mitigation fee to the Riparian Buffer
Restoration Fund pursuant to Paragraph (k) of this Rule. Payment shall conform to therequi errents of
G.S. 143 - 214.20;
(3) Donation of real property or of an interest in real property pursuant to Paragraph (1) of this Rule; or
(4) Alternative buffer mitigation options pursuant to Paragraph (m) of this Rule.
(d) AREA OF IMPACT. The authority shall determine the area of impact in square feet to each zone of the proposed
riparian buffer impact by adding the following:
(1) The area of the footprint of the use impacting the riparian buffer;
(2) The area of the boundary of any clearing and grading activities within the riparian buffer necessary to
accommodate the use; and
(3) The area of any ongoing maintenance corridors within the riparian buffer associated with the use.
The authority shall deduct fromthis total the area of any wetlands that are subject to and compliant with riparianwetland
mitigation requirements under 15A NCAC 02H.0506 and are located within the proposed riparian buffer impact area.
(e) AREA OF MITIGATION REQUIRED ON ZONAL MITIGATION RATIOS. The authority shall deterniretherequired
area of mitigation for each zone by applying each of the following ratios to the area of impact calculated underParagraph
(d) of this Rule:
Basin /Watershed
Zone 1 Ratio Zone 2 Ratio
Neuse River Basin (15A NCAC 0213.0233)
3:1
Catawba River Basin (15A NCAC 02B.0243)
2:1
Randleman Lake Watershed (15A NCAC 02B.0250)
3:1
Tar - Pamlico River Basin (15A NCAC 02B.0259)
3:1
Jordan Lake Watershed (15A NCAC 02B.0267)
3:1
Goose Creek Watershed (15A NCAC 02B.0607)
A The Goose Creek Watershed does not have a Zone 1 and Zone 2.
Creek Watershed is 3:1 for the entire buffer.
1.5:1
1.5:1
1.5:1
1.5:1
1.5:1
3:1A I
The mitigation ratio in the Goose
(f) AREA OF MITIGATION REQUIRED ON LOCATIONAL MITIGATION RATIOS. The applicant shall use the
following locational ratios as applicable based on location of the proposed mitigation site relative to that oftheproposed
impact site. Locational ratios shall be as follows:
Location
Within the 12 -digit HUCA
Within the eight -digit HUO
In the adjacent eight -digit HUC ,c
A Except within the Randleman Lake Watershed
Ratio
0.75:1
1:1
2:1
Within the Randleman Lake Watershed the
ratio is 1:1.
B. Except as provided in Paragraph (g) of this Rule.
c To use mitigation in the adjacent eight -digit HUC, the applicant shall describe why buffer
mitigation within the eight -digit HUC is not practical for the project.
(g) GEOGRAPHIC RESTRICTIONS ON LOCATION OF MITIGATION. Mitigation shall be performed in the sameriver
basin where the impact is located with the following additional specifications:
(1) In the following cases, mitigation shall be performed in the same watershed in which the impact is
located:
(A) Falls Lake Watershed, as defined in Rule .0275 of this Section;
(B) Goose Creek Watershed, as defined in Rule .0601 of this Subchapter;
(C) Randleman Lake Water Supply Watershed, as defined in Rule .0248 of this Section;
(D) Each subwatershed of the Jordan Lake watershed, as defined in Rule .0262 of this Section;
and
(E) Other watersheds as specified in riparian buffer protection rules adopted by theComrission.
(2) Buffer mitigation for impacts within watersheds with riparian buffer rules that also have federally listed
threatened or endangered aquatic species may be done within other watersheds with the same federally
listed threatened or endangered aquatic species as long as the impacts are in the same riverbasin and
same Orremik Level III ecoregion available at no cost at
http:/ /www.epa.gov /wed /pages /ecoregions /level_ iii_iv.htm as the mitigation site.
(h) RIPARIAN BUFFER MITIGATION UNITS. Mitigation activities shall generate riparian buffer mitigation units as
follows:
Mitigation Activity I Square Feet of
Mitigation Buffer
I Restoration I
1
Enhancement
2
Preservation on Non - Subject Urban Strearns
3
Preservation on Subject Urban Streams
3
Preservation on Non - Subject Rural Streams
5
Preservation on Subject Rural Streams
10
Riparian Buffer
Mitigation Units Generated
(i) RIPARIAN BUFFER RESTORATION OR ENHANCEMENT. Division staff shall make an on -site determination as to
whether a potential mitigation site qualifies as a restoration or enhancement site as defined in Paragraph (b) ofthis Rule.
Riparian buffer restoration or enhancement sites shall meet the following requirements:
(1) Buffer restoration or enhancement may be proposed as follows:
Urban Areas
Proposed
Buffer width (ft) Percentage
of Full Credit
Less than 20 0%
Non -Urban Areas
Proposed
Buffer width (ft) Percentage
of Full Credit
Less than 20 0%
20-29 75% 20-29 0%
30-100 100% 30-100 100%
101 -200 A 50 %" 101 -200" 50 %"
" The area of the mitigation site beyond 100 linear feet fromthe top of bank shall comprise no more than
10 percent of the total area of mitigation.
(2) The location of the restoration or enhancement shall comply with the requirements of Paragraphs (e),
(0, and (g) of this Rule. In the Catawba watershed, buffer mitigation may be done along the lake
shoreline as well as along intermittent and perennial stream channels throughout the watershed.
(3) Diffuse flow of runoff shall be maintained in the riparian buffer. Any existing impervious cover or
stormwater conveyances such as ditches, pipes, or drain tiles shall be eliminated and the flow
converted to diffuse flow. If elimination of existing stormwater conveyances is not feasible, thenthe
applicant or mitigation provider shall provide a delineation of the watershed draining tothestomavater
outfall and the percentage of the total drainage treated by the riparian buffer for Division approval; the
Division may reduce credit proportionally.
(4) The applicant or mitigation provider shall submit to the Authority a restoration or enhancement plan
for written approval by the Division. The restoration or enhancement plan shall demonstrate
compliance with the requirements of Subparagraphs (1) through (3) of this Paragraph andshallcontain
the following in addition to the elements required in Paragraph (c) of this Rule:
(A) A map of the proposed restoration or enhancement site;
(B) A vegetation plan that shall include a minimum of four native hardwood tree species orfour
native hardwood tree and native shrub species, where no one species is greater than 50
percent of established stems, established at a density sufficient to provide 260sterrsperacre
at the completion of monitoring. Native volunteer species may be included to meet
performance standards. The Division may approve alternative vegetation plans upon
consideration of factors, including site wetness and plant availability to meet the
requirements of this Part;
(C) A grading plan (if applicable). The site shall be graded in a manner to ensure diffuse flow
through the entire riparian buffer;
(D) A schedule for implementation, including a fertilization and herbicide plan if applicable; and
(E) A monitoring plan, including monitoring of vegetative success and other anticipated benefits
to the adjacent water as listed in the authorization certification.
(5) Within one year after the Division has approved the restoration or enhancement plan, the applicantor
mitigation provider shall present documentation to the Division that the riparian buffer has been
restored or enhanced unless the Division agrees in writing to a longer time period due tothenecessity
for a longer construction period.
(6) The mitigation area shall be placed under a perpetual conservation easement or similar legalprotection
mechanism to provide for protection of the property's nutrient removal and other water quality
functions.
() The applicant or mitigation provider shall submit written annual reports for a period of five years after
the restoration or enhancement has been conducted showing that the trees or tree and shrub species
planted are meeting success criteria and that diffuse flow through the riparian buffer has been
maintained. The applicant or mitigation provider shall replace trees or shrubs and restoredifluseflowif
needed during that five -year period. Additional years of monitoring may be required if the objectives
under Paragraph (i) have not been achieved at the end of the five -year monitoring period.
(8) The mitigation provider shall provide a site specific credit /debit ledger to the Division at regular
intervals once credits are established and until they are exhausted.
(9) The mitigation provider shall provide a completion bond that is payable to the Division sufficient to
ensure that land purchase, construction, monitoring, and maintenance are completed. A non - wasting
endowment or other financial mechanism for perpetual maintenance and protection shall be provided.
0) PURCHASE OF BUFFER MITIGATION CREDITS FROM A PRIVATE OR PUBLIC MITIGATION BANK Applicants
who choose to satisfy some or all of their mitigation by purchasing mitigation credits from private or public mitigation
bank shall meet the following requirements:
(1) The mitigation bank from which credits are purchased is listed on the Division's webpage
(httpJ /poital.ncdenr.org /web /wq /swp /ws /401) and has available riparian buffer credits;
(2) The mitigation bank from which credits are purchased shall be located as described in Paragraphs (el
(f), and (g) of this Rule; and
(3) After receiving a mitigation acceptance letter from the mitigation provider, proof of payment for the
credits shall be provided to the Division prior to any activity that results in the removal ordegradation
of the protected riparian buffer.
(k) PAYMENT TO THE RIPARIAN BUFFER RESTORATION FUND. Applicants who choose to satisfy some or allof
their mitigation determination by paying a compensatory mitigation fee to the Riparian Buffer Restoration Fund shallm:et
the requirements of Rule .0269 of this Section. Payment made to the NC Ecosystem Enhancement Program (the Program)
shall be contingent upon acceptance of the payment by the Program. The Program shall consider their fnancial,tenporal,
and technical ability to satisfy the mitigation request to determine whether they shall accept or deny the request.
(1) DONATION OF PROPERTY. Applicants who choose to satisfy their mitigation determination by donating real
property or an interest in real property to fully or partially offset an approved payment into the Riparian Buffer
Restoration Fund pursuant to Paragraph (k) of this Rule shall meet the following requirements:
(1) The value of the property interest shall be determined by an appraisal performed in accordance with
Part (1)(4)(D) of this Rule. The donation shall satisfy the mitigation determination if the appraisedvalue
of the donated property interest is equal to or greater than the required fee. If the appraised valueof
the donated property interest is less than the required fee calculated pursuant to Rule .0269 of this
Section, the applicant shall pay the remaining balance due.
(2) The donation of real property interests shall be granted in perpetuity.
(3) Donation of real property interests to satisfy the full or partial payments under Paragraph (k) shallbe
accepted only if such property meets the following requirements:
(A) The property shall be suitable for restoration or enhancement to successfully produceviable
riparian buffer compensatory mitigation credits in accordance with Paragraph (i) of this Rule
or the property shall be suitable for preservation to successfully produce viable riparian
buffer compensatory mitigation credits in accordance with Part (m)(2)(C) of this Rule;
(B) The property shall be located in an area where the Program may reasonably utiliathecredits,
based on historical or projected use, to offset compensatory mitigation requirements;
(C) The estimated cost of restoring or enhancing and maintaining the property shall not exceed
the projected mitigation credit value of the property minus land acquisition costs, except
where the applicant supplies additional funds acceptable to the Program for restoration or
enhancement and maintenance of the buffer;
(D) The property shall not contain any building, structure, object, site, or district that is listedin
the National Register of Historic Places established pursuant to Public Law 89 -665, 16U.S.C.
470 as amended;
(E) The property shall not contain any hazardous substance or solid waste such that water
quality may be adversely impacted, unless the hazardous substance or solid waste can be
properly remediated before the interest is transferred;
(F) The property shall not contain structures or materials that present health or safety concems
to the general public. If wells, septic, water, or sewer connections exist, they shall be filled,
remediated or closed at owner's expense in accordance with state and local health andsafety
regulations before the interest is transferred. Sewer connections in Zone 2 maybeallowed for
projects in accordance with Part (m)(2)(E) of this Rule;
(G) The property and adjacent properties shall not have prior, current, or known future landuse
that may jeopardize the functions of the compensatory mitigation;
(H) The property shall not have any encumbrances or conditions that are inconsistent with the
requirements of this Rule or purposes of Rules .02339 .0243, .0250, .0259, .0267 or .0607ofthis
Subchapter;
(1) Fee simple title to the property or a perpetual conservation easement on the property shallbe
donated to the State of North Carolina, a local government, or a qualified holder under N.C.
General Statute 121 -34 et seq. and 26 USC 170(h) of the Internal Revenue Code as approved
by the Department and the donee; and
(J) The donation shall be accompanied by a non - wasting endowment or other financial
mechanism for perpetual maintenance and protection sufficient to ensure perpetuallong4emr
monitoring and maintenance. However, when a local government has donated a perpetual
conservation easement and entered into a binding intergovernmental agreement with the
Program to manage and protect the property consistent with the terms of the perpetual
conservation easement, that local government shall not be required to provide anon- wastfiig
endowment.
(4) At the expense of the applicant or donor, the following information shall be submitted to the Program
with any proposal for donations or dedications of interest in real property:
(A) Documentation that the property meets the requirements of Subparagraph (1)(3) of this Rule;
(B) A US Geological Survey 1:24,000 (7.5 minute) scale topographic map, county taxrrap,USDA
Natural Resource Conservation Service County Soil Survey Map, and county road map
showing the location of the property to be donated, along with information on eadsting site
conditions, vegetation types, presence of eksting structures, and easements;
(C) A current property survey performed in accordance with the procedures oftheNorth(brufna
Department of Administration, State Property Office as identified by the State Board of
Registration for Professional Engineers and Land Surveyors as set forth in 21NCAC56.1600.
(D) A current appraisal of the value of the property performed in accordance with theprocedures
of the North Carolina Department of Administration, State Property Office as idenf6edbythe
Appraisal Board as set forth in 21 NCAC 57A .0501; and
(E) A complete attorney's report on title with a title commitment for policy in thenarrrofthe State
of North Carolina in the dollar amount of the appraised value.
(m) ALTERNATIVE BUFFER MITIGATION OPTIONS. Some or all of a buffer mitigation requirement may be met
through any of the alternative mitigation options described in this Paragraph. Any proposal for alternative mitigation
shall meet the requirements of Paragraphs (c), (e), (fl, and (g) of this Rule, the requirements set out in the named
Subparagraph addressing that option, and the following requirements:
(1) Any proposal for alternative mitigation shall be provided in writing to the Division and shall neetthe
following content and procedural requirements for approval by the Division:
(A) Projects that have been constructed and are within the required monitoring period on the
effective date of this Rule are eligible for use as alternative buffer mitigation. Projects that
have corrlpleted monitoring and released by the Division on or before the effective date o f
this Rule are eligible for use as alternative buffer mitigation for a period of 10 years fromthe
effective date of this Rule;
(B) The mitigation area shall be placed under a perpetual conservation easement or similar legal
protection mechanism to provide for protection of the property's nutrient removal and other
water quality functions; and
(C) A completion bond payable to the Division sufficient to ensure that land purchase,
construction, monitoring, and maintenance are completed.
(D) A non - wasting endowment or other financial mechanism for perpetual maintenance and
protection shall be provided.
(2) ALTERNATIVE BUFFER MITIGATION — NON - STRUCTURAL, VEGETATIVE OPTIONS
(A) Coastal Headwater Stream Mitigation. Wooded buffers planted along Outer Coastal Plain
headwater stream mitigation sites may be approved as riparian buffer mitigationas bngas the
site meets all applicable requirements of Paragraph (i) of this Rule. In addition, all success
criteria including woody species, stem density, diffuse flow, and stream success criteria
specified by the Division in any required written approval of the site shall be met.Theareaof
the buffer shall be measured perpendicular to the length of the valley being restored. The
area within the proposed buffer mitigation shall not also be used as wetland mitigation. The
mitigation provider shall monitor the site for at least five years from the date of planting by
providing annual reports for written Division approval.
(B) Buffer Restoration and Enhancement on Non - Subject Streams. Restoration or enhancement
of buffers may be conducted on intermittent or perennial streams that are not subject to
riparian buffer rules. These streams shall be confirmed as intermittent or perennial streansby
Division staff using the Division publication, Methodology for Identification of Intermitent
and Perennial Streams and Their Origins (v.4.11, 2010) available at no cost at
http: / /portal.ncdenr.org/ web /wq /swp /ws/ 401 / waterresources /streanAetemfmations. The
proposal shall meet all applicable requirements of Paragraph (i) of this Rule.
(C) Preservation of Buffer on Non - subject streams. Preservation of buffers on intermittent or
perennial streams that are not subject to riparian buffer rules may be proposed in order to
permanently protect the buffer from cutting, clearing, filling, grading, and sim ilaractivities that
would affect the functioning of the buffer. These streams shall be confirmed as intceri tentor
perennial streams by Division staff using the Division publication, Methodology for
Identification of Intermittent and Perennial Streams and Their Origins (v.4.11, 2010). The
preservation site shall meet the requirements of Subparagraphs (i)(1), (i)(3), (i)(6) and Parts
(1)(3)(D), (E), (F), (H) and (J) of this Rule. Preservation shall be proposed only when
restoration or enhancement with an area at least equal to the footprint of thebufleri rpacthas
been proposed.
(D) Preservation of Buffers on Subject Stream. Buffer preservation may be proposed inorderto
permanently protect the buffer from cutting, clearing, filling, grading, and sirribractivities that
would affect the functioning of the buffer beyond the protection afforded by the existing
bufferrules on sites that meet the definition of preservation site along stream, estuaries, or
ponds that are subject to buffer rules. The preservation site shall meet the requirements of
Subparagraphs (i)(1), (i)(3), (i)(6) and Parts (1)(3)(D), (E), (F), (H) and (J) of this Rule.
Preservation shall be proposed only when restoration or enhancement of an area at least
equal to the footprint of the buffer impact has been proposed.
(E) Sewer easement within the buffer. If the proposed mitigation site contains a sewereaserrent
in Zone 1, that portion of the sewer easement within Zone 1 is not suitable for buffer
mitigation. If the proposed mitigation site contains a sewer easement in ZoneZtheportionof
the sewer easement in Zone 2 may be suitable for buffer mitigation if:
(i) the applicant or mitigation provider restores or enhances the forested bufferinZone
1 adjacent to the sewer easement;
(ii) the sewer easement is at least 30 feet wide;
(iii) the sewer easement is required to be maintained in a condition that meets the
vegetative requirements of the collection system permit; and
(iv) diffuse flow is provided across the entire buffer width.
The proposal shall meet all applicable requirements of Paragraph (i) of this Rule forrestoration
or enhancement. The proposal shall meet all applicable requirements of Part (m)(2)(Qofthis
Rule for preservation.
(F) Enhancement of grazing areas adjacent to stream. Buffer credit at a 2:1 ratio shall be
available for an applicant or mitigation provider who proposes permanent exclusionofgrazsrg
livestock that otherwise degrade the stream and riparian zone through trampling, grazing,or
waste deposition by fencing the livestock out of the stream and its adjacent buffer. The
applicant or mitigation provider shall provide an enhancement plan as set forth in Paragraph
(i). The applicant or mitigation provider shall demonstrate that grazing was the predominant
land use since the effective date of the applicable buffer rule.
(G) Mitigation on ephemeral channels. For purposes of riparian buffer mitigation as describedin
this Part, an "ephemeral channel' is defined as a natural channel exhibiting discemiblebanks
within a topographic crenulation (V- shaped contour lines) indicative of natural drainage on
the 1:24,000 scale (7.5 minute) quadrangle topographic map prepared by the U.S. Geologic
Survey, or as seen on digital elevation models with contours developed from the mostreoent
available LiDAR data. Ephemeral channels only flow for a short period of time after
precipitation in the immediate area and do not have periods of base flow sustained by
groundwater discharge. The applicant or mitigation provider shall provide a delineation of
the watershed draining to the ephemeral channel. The entire area proposed for mitigation
shall be within the contributing drainage area to the ephemeral channel. The ephemeral
channel shall be directly connected to an intermittent or perennial stream and contiguous with
the rest of the mitigation site protected under a perpetual conservation easement.The area of
the mitigation site on ephemeral channels shall comprise no more than 25 percent ofthetotal
area of mitigation. The proposal shall meet all applicable requirements o f Paragraph (i)ofthis
Rule for restoration or enhancement. The proposal shall meet all applicable requirements of
Part (m)(2)(C) of this Rule for preservation.
(H) Restoration and Enhancement on Ditches. For purposes of riparian buffer mitigation as
described in this Part, a "ditch" is defined as a man -made channel other than a modified
natural streamthat was constructed for drainage purposes. To be used for mitigation aditch
shall meet all of the following criteria:
(i) be directly connected with and draining towards an intermittent or perennialstream
(ii) be contiguous with the rest of the mitigation site protected under a perpetual
conservation easement;
(iii) stormwater runoff from overland flow shall drain towards the ditch;
(iv) be between one and three feet in depth; and
(v) the entire length of the ditch shall have been in place prior to the effective date of
the applicable buffer rule.
The width of the restored or enhanced area shall not be less than 30 feet and shallnotexceed
50 feet for crediting purposes. The applicant or mitigation provider shall provide adefneation
of the watershed draining to the ditch. The watershed draining to the ditch shall be at least
four times larger than the restored or enhanced area along the ditch. The perpetual
conservation easement shall include the ditch and the confluence of the ditch with the
intermittent or perennial stream, and provide language that prohibits future maintenance of
the ditch. The proposal shall meet all applicable requirements of Paragraph (i) ofthis R lefor
restoration or enhancement.
(3) ALTERNATWE BUFFER STORMWATER TREATMENT OPTIONS.
(A) For all structural options: Riparian buffer restoration or enhancement is required with an area
at least equal to the footprint of the buffer impact, and the remaining mitigation resulting from
the multipliers may be met through structural options;
(B) Structural measures already required by other local, state or federal rule or permit cannotbe
used as alternative buffer mitigation, except to the extent such measure(s) exceed the
requirements of such rule or permit. Stormwater Best Management Practices (BMPs),
including bioretention facilities, constructed wetlands, infiltration devices and sand filterare
all potentially approvable (BMPs) for alternative buffer mitigation. Other BMPs may be
approved only if they meet the nutrient removal levels outlined in Part (3)(C) of this
Subparagraph. Existing or planned BMPs for a local, state, or federal rule or permit may be
retrofitted or expanded to improve their nutrient removal if this level of treatmeritwouldnotbe
required by other local, state, or federal rules. In this case, the predicted increase in nutrient
removal may be counted toward alternative buffer mitigation;
(C) Minimum treatment levels: Any structural BMP shall provide at least 30 percent total
nitrogen and 35 percent total phosphorus removal as demonstrated by a scientific and
engineering literature review as approved by the Division. The mitigation proposal shall
demonstrate that the proposed alternative removes an equal or greater annual mass load of
nutrients to surface waters as the buffer impact authorized in the authorization certificate or
variance, following the calculation of impact and mitigation areas pursuant to Paragraphs (dj
(e), and (f) of this Rule. To estimate the rate of nutrient removal of the impacted buffer, the
applicant or mitigation provider shall use a method previously approved by theDivision.The
applicant or mitigation provider may propose an alternative method of estimating the rateof
nutrient removal for consideration and review by the Division;
(D) All proposed structural BMPs shall follow the Division's 2009 Stormwater Best Managemmt
Practice Design Manual available at no cost at httpJ /portal.ncdenr.org /web /Ir /brrp- nmual.lf
a specific proposed structural BMP is not addressed in this Manual, the applicant or
mitigation provider shall follow Chapter 20 in this Manual for approval;
(E) All structural options are required to have Division approved operation and maintenance
plans;
(F) All structural options are required to have continuous and perpetual maintenance and shall
follow the Division's 2009 Storrnwater Best Management Practice Design Manual;
(G ) Upon completion of construction, the designer for the type of BMP installed shance*diat
the system was inspected during construction and that the BMP was constructed in
substantial conformity with plans and specifications approved by the Division;
(H) Removal and replacement of structural options: If a structural option is proposed to be
removed and cannot be replaced on -site, then a structural or non-structural measureofequal
or better nutrient removal capacity in a location as specified by Paragraph (f) and (g) of this
Rule shall be constructed as a replacement;
(I) Renovation or repair of structural options: If a structural option must be renovated or
repaired, it shall be renovated to provide equal or better nutrient removal capacity than as
originally designed;
(J) Structural options as well as their operation and maintenance are the responsibility of the
landowner or easement holder unless the Division gives written approval for another
responsible party to operate and maintain them Structural options shall be located in
recorded drainage easements for the purposes of operation and maintenance and shallhave
recorded access easements to the nearest public right -of -way. These easements shall be
granted in favor of the party responsible for operating and maintaining the structure, witha
note that operation and maintenance is the responsibility of the landowner, easementholder
or other responsible party; and
(K) Bonding and endowment. A completion bond payable to the Division sufficient to ensure
that land purchase, construction, monitoring, and maintenance are completed and a non -
wasting endowment or other financial mechanism for perpetual maintenance and protection
shall be provided.
(4) OTHER ALTERNATIVE BUFFER MITIGATION OPTIONS. Other riparian buffer mitigation options
may be considered by the Division on a case -by -case basis after 30 -day public notice through the
Division's Water Quality Certification Mailing List in accordance with 15A NCAC 02H .0503asbngas
the options otherwise meet the requirements of this Rule. Division staff shall present recom mdations
to the Environmental Management Commission for a final decision with respect to any proposal for
alternative buffer mitigation options not specified in this Rule.
(n) ACCOUNTING FOR BUFFER CREDIT, NUTRIENT OFFSET CREDIT AND STREAM MITIGATION ClIDTT.Buffer
mitigation credit, nutrient offset credit, wetland mitigation credit, and stream mitigation credit shall be accounted for in
accordance with the following:
(1) Buffer mitigation used for buffer mitigation credit shall not be used for nutrient offset credits;
(2) Buffer mitigation or nutrient offset credit shall not be generated within wetlands that provide wetland
mitigation credit required by 15A NCAC 02H .0506; and
(3) Either buffer mitigation or nutrient offset credit may be generated on stream mitigation sites as long as
the width of the restored or enhanced riparian buffer meets the requirements of Subparagraph (i)(1).
History Note: Authority 143- 214.1; 143 - 214.5; 143- 214.7; 143 - 214.20; 143- 215.3(a)(1); 143- 215.6A; 143 -
215.6B; 143- 215.6C; 143- 215.8A; 143- 215.8B; 143- 282(c); 143B- 282(d); S.L. 1998 221; S.L 1999-
329, s. 7.1; S.L. 2001 -418, s. 4.(a); S.L. 2003 -340, s. 5; S.L. 2005 -190; S.L. 2006 -259; S.L 2009-337,-
S.L. 2009 -486, S.L. 2014 -95;
Temporary Adoption Eff. October 24, 2014.
AT T MgN'T D
uMBl, BPD
p and ps_ Built.
the ent Namel
credits approved by Ledger
Name g, lnstrum Credit
for mitlgatll lSponsor Bu { {er
onl`l e w f HuC 0) dated:
shown below are `parcel Nam pate Cast,,
pWg Bank parcel project a
*Credits
-total Credits Relea5ed
To pate=
acne or %
of
N
purh3.,t Reese
7?,ewase ale) cre
Date
project wl 1,40 igit HUC
Credits
Releasedlpvailable to
Bank�—
Acres
Square Feet
Sold
Credits Debited)
From Bank –
�- Acres
Square Feet
-- Cocal Gov't
Buffer Credit Balance
Square Acres
Feet
ATTACHMENT E
*Credits shown below are only for mitigation credits approved by the UMBI, BPDP, and As- Built.
(Sponsor Name & Instrument Name)
(Parcel Name w/ HUC #) Nitrogen or Phosphorus Credit Ledger
Date Last Updated:
DWR Bank Parcel Project #:
As -Built Credit Total:
Delivery Factor: %N
Sale /Release Purchaser Name or 14 -digit HUC of Credits Released /Available to Credits Debited/Sold From
Project Name Project Bank Bank
Date % of Credit Release
Generated Delivered Generated
Nitrogen (ibs) Nitrogen (lbs) Nitrogen (Ibs)
Delivered
Nutrient Credit Balance
Generated Delivered
Nitrogen (Ibs) Nitrogen (Ibs) Nitrogen (Ibs)
Local Gov't
Requiring