NC0020591_Renewal Application_20180124

tateOnQ
CITY of 11
eRECEIVED/DENR/DWR
NORTH CAROLINA APR 24 2018
Larry Pressley, City Manager Water Resources
ces
Section
P.O. Box 1111
Statesville, North Carolina 28687
[phone]
April 19, 2018
Ms. Julie Gryzb
North Carolina Division of Water Resources
1617 Mail Service Center
Raleigh,North Carolina 27699-1617
RE: NPDES Permit No.NC0020591 Renewal
Third Creek Wastewater Treatment Plant(WWTP)
City of Statesville,North Carolina
Dear Ms. Gryzb:
The City of Statesville is requesting DWR to complete its renewal of the Third Crek
WWTP NPDES permit to adjust the compliance dates for Phase II nutrient limits. As you know,
the City submitted its renewal request in October 2013, in compliance with the current (expired)
permit. The City and its representatives have had numerous contacts with DWR since that
submittal to communicate the critical need to revise the compliance schedule in the permit
relative to future nutrient reduction efforts. Specifically, the City of Statesville submitted to the
Division letters dated August 12, 2014 and December 9, 2014 outlying the need to revise the
Phase II nutrient limits compliance schedule for our Third Creek WWTP. Following this
correspondence, the City by direct communication and through its consultant, McGill Associates,
has initiated email communication and discussions with the Division concerning this permit
renewal and the importance of a schedule revision.
In accordance with our permit, the City previously completed a major upgrade of the
Third Creek WWTP in 2015. The upgrade included increased biochemical oxygen demand
treatment, biological nutrient reduction capability, and expanded the facility's discharge
capacity. This plant upgrade and the associated nutrient reduction capability was a requirement
of the current (expired) permit and compliance schedule. The permit calls for, in section A. (6),
compliance with Phase I limitations by June 1, 2016. As noted, the City completed its upgrade
well in advance of the compliance date.

Ms.Julie Gryzb
April 18,2018
Page 2
As we have noted and discussed with the Division, the Phase II component of the
permit's compliance schedule calls for another upgrade of the plant to achieve additional nutrient
reduction by October 1, 2019. However, this schedule component includes the following
statement:
"Any nutrient control strategy or TMDL developed for High Rock Lake will override the
Phase II Final Limits (Section A.(3.)) and the final nutrient effluent discharge limitations
and the time schedule will be adjusted to reflect the results and allocations determined by
such strategy or TMDL."
During the negotiation process for the current (expired) permit, it was made very clear
that the objective of the Phase II requirements was to reflect the completion of the High Rock
Lake nutrient management program. Due to the current status of the Division's effort to develop
a Nutrient Control Strategy or TMDL for High Rock Lake, the current schedule for Phase II is
not reasonable or realistic and must be revised now for the renewal permit to reflect the expected
timeline for developing a final nutrient control approach for High Rock Lake. Revision of the
Phase II schedule at this time is appropriate because it properly reflects the intent of the current
permit language and does not represent a water quality issue.
As noted in the previous correspondence and discussions, there are several compelling
reasons for a revised schedule. Primary is the fact that implementation of the Division's EPA
approved Nutrient Criteria Development Plan (NCDP) is still proceeding for High Rock Lake.
That Plan includes the State's commitment to the completion of an assessment of High Rock
Lake and the development of an appropriate nutrient control program as needed to address any
eutrophication issues with the Lake. The NCDP's Scientific Advisory Council (SAC) has not
completed its work on High Rock, nor has the Criteria Implementation Committee (CIC)
weighed in on the provisions of the application of specific criteria. While the schedule for
completion of the High Rock Lake effort was included in the NCDP, progress on that effort has
been delayed. Even when there is a decision on the basis of the strategy and its provision, the
process must involve the CIC, and many public review and stakeholder steps must be completed
before a strategy is finalized. Extensive stakeholder involvement is planned, and the
consideration and evaluation of any final strategy will require Environmental Management
Commission action. Rule-making is likely to follow these processes and there are many ways
that the process may be delayed. The NCDP notes that these associated processes represent
significant effort and could impact the schedule as it appears in the NCDP. Because the timing
of the Division's completion of a nutrient management strategy for High Rock Lake is central to
the Third Creek WWTP's final effluent limitations, the permit's compliance schedule should be
revised to reflect this uncertainty and the significant efforts and costs related to funding,
designing and construction of any plant upgrade.

Ms.Julie Gryzb
April 18,2018
Page 3
In addition to the primary basis for a schedule revision, there are other important
considerations in renewing the permit. The City included these points in the 2014 letters, but
they are reiterated below for your reference:
• One basis for the Division's inclusion of Phase II limits is the EPA's stated policy of"not
allowing an increase in current pollutant loading directly related to a 303(d) listing when
facility is expanding its capacity". The completion of the Phase I upgrade has resulted in
the reduction of nutrients discharged by the Third Creek WWTP over the loading that
existed prior to the upgrade. In essence, the City, in meeting Phase I limits at current
(and future)plant flows, assures that the plant will not increase loading over the level that
existed before the upgrade.
• The City invested a large amount of wastewater management and financial resources to
upgrade the plant (completed in 2015). The undertaking of this major project represented
extensive planning, coordination, and cost to the City. An additional upgrade project is
an unreasonable and unjustified burden considering that at this point no decision has been
made on a final nutrient strategy for High Rock Lake. There is no water quality
justification for the Phase II limits in the current permit.
• The completed Third Creek upgrade project represents the most aggressive "on the
ground" nutrient management effort in the High Rock Lake watershed. The major
municipal WWTPs in the watershed (and perhaps smaller systems as well) will be
required to develop a compliance schedule to meet reduction levels based on their ability
to fund, develop, construct, and put in operation an upgraded WWTP after a nutrient
management program is in place and in effect. Further upgrade of what is essentially a
"new" WWTP at Third Creek before other facilities are required to plan their upgrades is
clearly not equitable.
On the basis of the justification provided in this letter and the discussions that we have
had with you, the City requests that the following revision be made to our existing compliance
schedule for Phase II:
A. (7) COMPLIANCE SCHEDULE FOR PHASE II — FINAL NUTRIENT
PERMIT LIMITATIONS AT 6 AND 8 MGD
The permittee has already complied with the Phase I Interim effluent limitations listed in
Part I, Section A.(2.)
The permittee will comply with the Phase II (6 MGD) Final Nutrient effluent limitations
listed in Part I, Section A.(3) by October 1, 2029. This timeframe provides for the
addition of treatment components for improved nutrient removal.

Ms Julie Gryzb
April 18,2018
Page 4
Any nutrient control strategy or TMDL developed for High Rock Lake will override the
6 MGD and 8 MGD final nutrient effluent discharge limitations (Sections A.(3.) and A.
(4.)), and the time schedule will be adjusted to reflect the results and allocations
determined by such a strategy or TMDL. The permit may be reopened and modified
accordingly.
The proposed revision shifts the timeline to an appropriate compliance date considering
that our earlier letter and recommendation was submitted more than three years ago. As noted
above, because of the reopener language in this condition, the Division has the flexibility to
implement the provisions of the NCDP whenever that nutrient management strategy is
completed.
The City appreciates your consideration of this revision. We request that this
modification be done as quickly as possible and the Third Creek WWTP permit renewal issued.
Please contact me if you have any questions concerning this request. Thank you for your time.
Sincerely,
CITYF STATESVILLE
1`r
Larry Pr•ssley, PE
City Manager
Cc: Linda Culpepper, Director of DWR
Jim Gregson, Deputy Director DWR
Jeff Poupart, DWR
Lynn Smyth, City of Statesville
Chuck Smith, City of Statesville
Forrest Westall, PE, McGill Associates
Joel Whitford, PE, McGill Associates
Enclosed