Processing Nutrient Offset Credit Sales_Katie

How to process requests for Nutrient Offset Credits AFTER Permit is issued.
(key documents shown in red font)
Situation:
A developer wants to build a car dealership in North Durham, which is located in the Neuse River Basin, 8-digit Hydrologic Unit Code (HUC)
03020201 and inside the Falls Lake Watershed (use the map resources on DWR's website to find the HUC information). The developer is told by
their stormwater engineer, that the City of Durham (the Delegated Local Government who implements the storm water management rules for
nutrients) won't approve the stormwater management plan for the car dealership until they have shown how they will treat their stormwater
onsite. Based on the engineer's calculations and the SNAP Tool, it is determined that the developer will have to buy 350 pounds of Nitrogen
nutrient offset credits to meet the stormwatermanagement requirements. The engin eerprepares the storm water management plan and submits
it to the City of Durham for their review and approval. The City of Durham approves the stormwater management plan requiring 350 pounds of
Nitrogen nutrient offset credits to be purchased from a Provider (Private Bank or DMS) located in the Neuse 03020201, inside of the Falls Lake
Watershed (use the map resources on DWR's website to locate a nutrient offset bank). The developer now has their stormwater management
plan, which does not authorize construction of the car dealership until they have purchased 350 pounds of Nitrogen nutrient offset credits. The
developer FIRST reaches out to a private bank Sponsor (contact information is provided on the DWR website) about their availability of riparian
buffer credits. If no private bank has nutrient offset credits, then the developer can contact the Division of Mitigation Services for credit
availability.
Next Steps for Provider:
1) Ask the developer to send you a copy of the approved stormwater management plan letter on City of Durham's letterhead that identifies
HOW MANY Nitrogen offset credits they need, what UNITS those credits are defined in, and from WHERE (what service area) the credits
have to come from. If the letter doesn't have this information, then there is likely a form referred to as "Nutrient Reporting Form" that
should be attached to the approval letter. This form will have all the necessary information needed to process this request. The provider
can proceed with Step 2. For the situation above, the developerneeds 350 pounds of Nitrogen nutrient offset credits from a Private Bank
located in the Falls Lake Watershed.
2) Once the developer pays the Provider in Full for the 350 pounds of Nitrogen nutrient offset credits from a bank site in the Falls Lake
Watershed, the Provider issues a Mitigation Credit Transfer Certificate (MCTC) to the developer, using the template provided by DWR, to
document the sale. The MCTC should be sent to the City of Durham and the developer for their records. If the developer constructs

Request the stormwater management
plan approval letter issued by the Local
Gov't (not DWR)
(may need Nutrient Reporting Form too)
Provider documents the sale
on the Nitrogen or
phosphorus credit ledge
date must match the MCTC)
Flow chart for processing nutrient offset credit sales
Which nutrient is
needed? Nitrogen
and/or Phosphorus
If selling Ibs, then Provider'
provides a Mitigation Credit
Transfer Certificate using th
template not for permaneno
:redits and sends to customer
& Local Gov't to document
Receipt of sale
What are the units of the credits
being required?
Pounds (Ibs) or Pounds per Year
(Ibs/yr)
are aka "permanent credits"
If selling Ibs/yr, then
Provider provides a
Mitigation CreditTransfer
Certificate using the
Permanent Credit template
and sends to customer &
Local Gov't to document
llReceipt of sale
Determine which.1
bank the nutrient
offset credits need
to come from
based on servi
area in MBI
Receive payment
for the credits