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HomeMy WebLinkAboutAttachment B - DRAFT RIA - Yadkin and S. Yadkin Water Supply Page 1 of 10 Regulatory Impact Analysis Rule Citation: 15A NCAC 02B .0309 Rule Title: Yadkin-Pee Dee River Basin DEQ Division: Division of Water Resources (DWR) Staff Contacts: Elizabeth Liebig, Classifications Coordinator, DWR Elizabeth.Liebig@deq.nc.gov (919) 707-3674 Paul Wojoski, Classifications and Standards Branch Chief, DWR Paul.Wojoski@deq.nc.gov (919) 707-3676 Impact Summary: Federal government: No State government: Yes NC DOT: No Local government: Yes Substantial Impact: No 1. Necessity for Rule Change Salisbury-Rowan Utilities (SRU) has requested the reclassification of the Yadkin River, South Yadkin River, and associated tributaries in Rowan, Davie, and Davidson Counties to Class Water Supply IV (WS-IV) Critical Area (CA), Class WS-IV Protected Area (PA), and Class Water Supply V (WS-V) so these waters can be used as a source of drinking water supply. Pursuant to 15A NCAC 18C .0202, “any surface water which is to receive treatment for removal of dissolved matter or suspended matter in order to be used for a public water system shall be obtained from a source that meets the WS-I, WS-II, WS-III, WS-IV or WS-V stream classification standards established by the Environmental Management Commission codified in 15A NCAC 02B.” 2. Background 2.1 Water Supply Classification Water Supply (WS) is a primary classification assigned to surface waters that are sources of water supply for drinking, culinary, or food processing purposes. There are five WS classifications (WS-I through WS-V) that generally reflect varying levels of development in the watersheds, with WS-I located in undeveloped watersheds. Each classification has water quality standards to protect and maintain the water supply use. Water supply watersheds are divided into two areas: the Critical Area (CA) and the Protected Area (PA). The critical area is the area nearest to the water supply intake in which the risk of pollutants Page 2 of 10 to the water supply is the greatest. The CA is defined as the lands and waters within 0.5 miles upstream of, and draining to, a water intake or reservoir. The protected area is the area upstream of, and adjoining, the critical area where protections are required. The PA is defined as the lands and waters which are not included in the CA but are 10 miles upstream of, and draining to, a water intake, or 5 miles upstream of, and draining to, a reservoir. The upstream miles are measured in a “run-of-the-river” manner. Critical and protected area boundaries can extend a different distance from the reservoir or intake as adopted by the North Carolina Environmental Management Commission (EMC) during the reclassification.1 2.2 Water Supply Reclassification of Yadkin River, South Yadkin River, and Associated Tributaries Salisbury-Rowan Utilities (SRU) plans to relocate their existing pump station and raw water intake approximately 2,100 ft downstream of the current intake, below the confluence of the Yadkin and South Yadkin Rivers and approximately 125 ft downstream of the confluence with Deals Creek. The existing intake is drawing water from the Yadkin River; therefore, CA and PA have been established along the Yadkin River. The proposed intake would draw water from a location further downstream which would encompass flows from not only the Yadkin River, but also the South Yadkin River and associated tributaries. Therefore, this reclassification will result in changes to the current CA and PA. This reclassification will remove the current CA and establish a new CA 0.5 miles linearly upstream and draining to the new intake. In addition, this reclassification will expand the current PA to also include the lands and waters from the South Yadkin River, Deals Creek, and associated tributaries extending approximately ten miles from the new intake. The existing portion of the PA will be shifted to the south slightly, since the new proposed intake is 2,100 ft further downstream. A full list of the surface waters affected by this rulemaking with the current and proposed classifications is shown in Table 1. 1 15A NCAC 02B .0202 Page 3 of 10 Table 1: List of Surface Waters for Reclassification Waterbody Area Description Current Surface Water Classification Proposed Surface Water Classification Portion of Yadkin River From the mouth of the South Yadkin River to a point 125 ft downstream of Deals Creek confluence WS-V WS-IV CA From a point 0.7 mi upstream of the mouth of the South Yadkin River to a point 0.2 mi upstream of the mouth of the South Yadkin River WS-IV CA WS-IV2 From a point 1.0 mi upstream of the mouth of Dutchman Creek to Dutchman Creek WS-IV WS-V Deals Creek From its source to a point 0.7 mi upstream of the mouth of the Yadkin River C WS-IV From a point 0.7 mi upstream of the mouth of the Yadkin River to the Yadkin River C WS-IV CA Portion of Second Creek From Highway 70 crossing to the mouth of the South Yadkin River C WS-IV Portion of Beaverdam Creek From NC 801 crossing to the mouth of Second Creek C WS-IV Portion of Walnut Branch From Highway 70 crossing to the mouth of Second Creek C WS-IV Portion of Setman Branch From Highway 70 crossing to the mouth of Walnut Branch C WS-IV Portion of Fourth Creek From NC 801 crossing to the mouth of the South Yadkin River C WS-IV Portion of South Yadkin River From NC 801 crossing to a point 0.2 mi upstream of the Yadkin River confluence C WS-IV From a point 0.2 mi upstream of the mouth of the Yadkin River to the Yadkin River C WS-IV CA Portion of Peeler Creek From Davie County SR 1802 to NC 801 crossing WS-IV WS-V Portion of Cody Creek From a point 0.3 mile upstream of NC 801 to NC 801 crossing WS-IV WS-V 2 By default, waters that are classified as WS-IV without the “CA” designation are within the PA. There is no “PA” suffix in the classification schedule. Page 4 of 10 Table 1: List of Surface Waters for Reclassification (continued) Waterbody Area Description Current Surface Water Classification Proposed Surface Water Classification Portion of Dutchman Creek From a point 0.9 mile upstream of the confluence with the Yadkin River to the Yadkin River WS-IV WS-V Portion of Humpy Creek From a point 0.3 mile upstream of the mouth of Dutchman Creek to Dutchman Creek WS-IV WS-V 2.3 Use and Value Demonstration – Water Reclassification Study A “Use and Value” Demonstration (UVD) study is required by 40 CFR 131.10 and 15A NCAC 02B .0101. The purpose of the study is to evaluate and measure the physical and chemical composition of the waters to be reclassified as WS to ensure they can attain the rule criteria associated with the water supply classification. The scope of this study included surface waters to the west of the existing PA (South Yadkin River, Second Creek, and Deals Creek) and south of the existing intake (at the proposed intake location). A map of the proposed Critical and Protected Areas, as well as the UVD study monitoring locations is shown in Figure 1. The UVD study concluded that the waters in the designated study area met the WS-IV classification requirements and are appropriate to be reclassified to water supply waters. Page 5 of 10 Figure 1: Proposed WS-IV CA/PA and UVD Monitoring Locations Page 6 of 10 3. Impact Analysis The reclassification is a requirement for SRU to construct a new surface water intake in the Yadkin River approximately 2,100 ft downstream of the current intake. The relocated intake will provide resilience against future flooding events and excessive sedimentation that is impacting the current intake at its present location. If reclassified, regulations affecting new landfills, sites that land apply sludge and residuals, development density, and industrial process wastewater discharges would apply. In addition, agricultural activities are subject to a vegetative setback in the CA, though no land within the CA are currently zoned for agriculture. Based on zoning and current conditions in the area, the reclassification is anticipated to have no effect on forestry and farming practices. 3.1 Regulatory Baseline To understand the impact of the proposed rule change, it is necessary to establish a regulatory baseline for comparison. For purpose of this analysis, the baseline is comprised of: • The current version of Rule 15A NCAC 02B .0309 (Yadkin-Pee Dee River Basin). Under the current rule, the Yadkin River is classified as WS-IV and WS-V and the South Yadkin River, Deals Creek, and associated tributaries are classified as Class C. Once reclassified, additional rules would apply in the critical and protected areas as a result. The following regulatory requirements would apply: • Rule 15A NCAC 02B .0216 (Fresh Surface Water Quality Standards for Class WS-IV Waters). The water quality standards in 15A NCAC 02B .0216(3) for Class WS-IV waters are the same as for Class WS-IV CA waters; as such, they will not change as a result of the proposed reclassification and there will be no economic impact. • Rules 15A NCAC 02B .0620 through .0624 (Water Supply Watershed Protection Program3). These rule requirements associated with a WS-IV already apply to a portion of the subject watershed area along the Yadkin River. As a result of the rulemaking, these requirements will apply to the additional protected area. This area includes portions of the South Yadkin River, Deals Creek, and associated tributaries. • Critical Area. The rulemaking will also result in the dissolution of the current critical area and the establishment of a new critical area. For the portions that are reclassified to WS-IV CA, the following more stringent land development requirements will apply. However, in Class WS-IV watersheds, these density and setback rules only apply to new development projects that require an Erosion and Sedimentation Control Plan. o The low-density built-upon area limit for a new single-family residential development will be 2 dwelling units per acre or 20,000 square foot lot (excluding roadway right-of-way) or 24% built-upon area. For non-residential and residential 3 A plain-language explanation of the water supply watershed rule requirements are available on the program’s website: NC DEQ Water Supply Watershed Program Page 7 of 10 developments other than single-family, the limit will be 24% built-upon area. Low- density projects require a 30-foot vegetative setback from perennial waterbodies. o The built-upon area limit for a new high-density development project will be 50%. High-density projects require a 100-foot vegetative setback from perennial waterbodies. o Agricultural activities require a 10-foot vegetative setback (or equivalent non-point source controls) in the Critical Area. In addition, upon reclassification to the more protective critical area classification, portions of these watershed areas will be subject to additional wastewater discharge and land use requirements per 15A NCAC 02B .0216(4), as follows: o New industrial discharges of treated wastewater in the critical area will be required to meet provisions related to treatment design for emergencies (e.g., stand-by power capability); volume of treated wastewater (not to exceed 50% of the total instream flow under 7Q10 conditions); and safety factors for toxic substances. No new industrial wastewater discharges are planned or anticipated in the proposed Critical Area; as such, there is no anticipated economic impact. o New landfills and new permitted sites for land application of residuals or petroleum- contaminated soils will not be allowed in the proposed Critical Areas. No new landfills or land application sites are planned or anticipated in the Critical Areas; as such, there is no anticipated economic impact. o Rule 15A NCAC 02H .1017 (NPDES MS4 and Urbanizing Areas: Post-Construction Requirements). NPDES stormwater control requirements, which includes a 24% built-upon area limit on low-density development, will apply to the proposed CA. This is equivalent to the requirements in Rules 15A NCAC 02B .0620 through .0624 noted above. • Protected Area. The rulemaking will also result in the establishment of a new larger protected area. For the PA, the following more stringent land development requirements will apply. However, in Class WS-IV watersheds, these density and setback rules only apply to new development projects that require an Erosion and Sedimentation Control Plan. o The low-density built-upon area limit for a new single-family residential development will be 2 dwelling units per acre or 20,000 square foot lot (excluding right-of-way) or 24% built-upon area; or 3 dwelling units per acre or 36% built-upon area without curb system. For non-residential and residential developments other than single-family, the limit will be 24% built-upon area or 36% built-upon area without curb and gutter system. Low-density projects require a 30-foot vegetative setback from perennial waterbodies. Page 8 of 10 o The built-upon area limit for a new high-density development project will be 70%. High-density projects require a 100-foot vegetative setback from perennial waterbodies. o Agricultural activities require a 10-foot vegetative setback (or equivalent non-point source controls) in the Critical Area. Local government ordinances will need to be amended to reflect the land use requirements in the subject watershed areas. The rules provide local governments with considerable flexibility (such as density averaging) when implementing these ordinances4. The rules also provide local governments the authority to approve rule variances if there are difficulties or hardships in compliance with the implementing ordinances5. 3.2 Local Government Rowan, Davie, and Davidson Counties are the local governments with land use jurisdiction in the proposed reclassification areas. Within 270 days after the effective date of the reclassification, their Unified Development Ordinances and watershed maps will need to be updated to reflect the new CA and PA and the applicable land use requirements. All entities support the proposed reclassification and have submitted resolutions which are part of the reclassification process. • Rowan County Planning Unified Development Ordinance. The Rowan County ordinance does not require stream buffers and stormwater controls that meet the Class WS-IV requirements; as such, the proposed reclassification would result in additional buffer or stormwater control requirements. • Davie County Planning Unified Development Ordinance. The Davie County ordinance does not require stream buffers and stormwater controls that meet the Class WS-IV requirements; as such, the proposed reclassification would result in additional buffer or stormwater control requirements. • Davidson County Planning Unified Development Ordinance. The Davidson County ordinance does not require stream buffers and stormwater controls that meet the Class WS-IV requirements; as such, the proposed reclassification would result in additional buffer or stormwater control requirements. The Rowan County Planning Department estimated that their one-time cost will be approximately $2,350. This cost is associated with the required rezoning and ordinance text amendments. This includes an assumed staff time taking approximately 20 hours which includes report writing, letters, mapping, mailing, board meetings, etc. for the overlay amendment. In addition, this includes two half-page ads in the Salisbury Post at $831 each and letters to adjoining property owners outside the Salisbury Post circulation area assuming general cost of postage and letters. 4 15A NCAC 02b .0264(7) 5 15A NCAC 02b .0263(5) Page 9 of 10 Comparable work is needed in both Davie and Davidson Counties. Therefore, the estimated cost of $2,350 from Rowan County is also expected in Davie and Davidson Counties. 3.2 State Government NC Department of Environmental Quality (DEQ) DWR staff estimate that the one-time cost to the State will be approximately $2,000. This cost is associated with the notification of Rowan, Davie, and Davidson Counties, review, and approval of changes to their local ordinances, and updating the DEQ water supply watershed map. NC Department of Transportation (DOT) According to Cabarrus-Rowan Metropolitan Planning Organization (CRMPO), aside from potential bridge replacements, there are no current or future planned DOT projects in the area to be reclassified. Therefore, there are no anticipated costs for DOT. 3.4 Regulated Community Because the areas within the proposed CA are not developed, local zoning already limits development density, and a large area is in conservation by Three Rivers Land Trust, there will be no economic impact from the addition of the CA rule requirements. Additionally: • No new industrial discharges are anticipated or planned, and • No new landfills or land application sites are anticipated or planned. 3.5 Water Users The citizens of the City of Salisbury and the Rowan County communities served by SRU should benefit from the reclassification of the Yadkin River, South Yadkin River, and associated tributaries as the reclassification is a necessary step for establishing resiliency of their water supply intake. 3.6 Impact Summary As measured from the baseline conditions, there will be a one-time cost to Rowan, Davie, and Davidson Counties of approximately $7,050 to amend their Unified Development Ordinances and complete the associated rezoning. There will also be a one-time cost to DEQ of approximately $2,000 associated with program administration and technical assistance upon reclassification. These costs are budgeted for and will not require additional expenditure. Water users should benefit in that the reclassification is a necessary step before portions of the Yadkin River, South Yadkin River, and associated tributaries can be used as a source of public drinking water. We do not expect that there will be any new impacts on the regulated community because of the reclassification. Page 10 of 10 The proposed rulemaking will not meet or exceed the $1,000,000 threshold for substantial economic impact as defined in G.S. 150B-21.4.