DEQ-CFW_00070264

Re: Cape Fear Reclassification (15A NCAC 02B .0311)
S
Subject: Re: Cape Fear Reclassification (15A NCAC 02B .0311)
From: Nancy Pate <[e-mail]>
Date: Thu, 17 Jul 2008 17:36:41 -0400
To: "Crumbley, William" <[e-mail]>
CC: Elizabeth Kountis <Elizabeth. Kountis@ncmail. net>, Doug Lewis <[e-mail]>
Hi Will,
I've attached the information which I have. Elizabeth and Doug, if you have anything additional to add,
please do so.
Nancy
Crumbley, William wrote:
Hi Nancy,
I was wondering if I could take a look at the impact analysis DENR created for the Cape Fear
reclassification that was published in the 7/15 register. I am impressed that so much information was
included in the "Reason for proposed action" section. I'd like to know a little more about the area and
potential impacts (which is hopefully in the analysis).
Thanks!
Will
Please note my new email address below'*
Will Crumbley
Economic Analyst
NC Office of State Budget and Management
william.cnnnbleyaa osbm.nc.gov
919-807-4740
Nancy Pate <nancy.pate(cDncmail.net>
APA Coordinator
NCDENR
Office of General Counsel
Content -Type: application/msword
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Division/Section lWater Quality/Planning
Prepared by
Elizabeth Kountis
Phone no.:733-5083 x369
Email:[e-mail]
Phone no.:
Email:
Subject of Rules I Reclassification of Cape Fear Kiver segments to vv�-iv ana vv">-iv um
Admin. Code Citationj 15A NCAC 2B .0311 101 Log Number
of Impact
None
Local Government
State Government
DOT
Federal Government
Types of Impact, cont.
x Private Sector
Fee Increase
Substantial (>$3,000,000
OSBM: Not Significant
OSBM: Significant
Fiscal Impact (Round to nearest $100)
FY 09-10
$ -
Local Government Impact
$ -
State Government Impact
$ -
Federal Government Impact
$ -
Private Sector Impact
$ -
Totallmpact
Cost- Net Present Value (NPV)
Local Government Impact $
State Government Impact
$ td
Federal Government Impact
Not Applicable
Private Sector Impact
Totallmpact
$ -
FY 10-11 FY 11-12 FY 12-13
FY 13-14
$ - $ - $ - $
$ - $ - $ - $
Cost- Annualized NPV
#VALUE!
#VALUE!
Benefit- Net Present Value (NPV) Benefit- Annualized NPV
Local Government Impact $ - $ -
State Government Impact $ - $ -
Federal Government Impact Not Applicable #VALUE!
Private Sector Impact $ - $ -
Total lmpact $ I #VALUE!
Discount rate = 7% and 20 year time horizon
Division of Budget, Planning, and Analysis Review
Signature Date Approved
Director, BPA Denied
OSBM Review
Signature Date Approved
OSBM Designee Denied
WE
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FISCAL NOTE
Rule Citation Number: 15A NCAC 2B .0311 Cape Fear River Basin
General Rule Topic Matter: Reclassification of Cape Fear River segments to Class Water
Supply -IV (WS-IV) and Class WS-IV Critical Area (CA)
DENR Division: Division of Water Quality
Staff Contact: Elizabeth Kountis, 733-5083 extension 369
Screening Analysis: This rule does NOT
• require a federal certification statement under NCGS 150B-21(fl)
• meet the criterion of Federal Exemption found in NCGS 150B-21.4(b1)
• meet the criteria listed in NCGS 150B-21 relating to Temporary Rules
• meet the criteria for a Technical Correction laid out in NCGS 150B-21.5
• meet any of the criteria cited in the Help file list of a series of situations which may render a
rule obsolete
INTRODUCTION (Purpose, Benefits)
All surface waters in North Carolina are assigned a primary classification by the Division of
Water Quality with the intent of protecting their designated best use. Numeric and narrative
Water Quality Standards are associated with each classification. The most common and basic
classification for freshwater is Class C, which protects for secondary recreation, fishing, wildlife,
fish and aquatic life propagation and survival, and agriculture. Secondary recreation includes
wading, boating, and other uses involving human body contact with water where such activities
take place in an infrequent, unorganized, or incidental manner. Other primary classifications are
assigned to protect waters for such uses as shellfishing (Class SA), drinking water supply (WS-I
through WS-V), and primary recreation (B). Primary recreational activities include activities
such as swimming, skin diving, water skiing, and similar uses involving human body contact
with water where such activities take place in an organized manner or on a frequent basis.
Supplemental classifications are sometimes added to ensure additional protections, such as for
Nutrient Sensitive Waters (NSW) or High Quality Waters (HQW).
Five Water Supply Classifications are in effect based on the Water Supply Watershed Protection
Act (North Carolina General Statute 143-214.5) mandates. This legislation required the
Environmental Management Commission to adopt rules to protect the state's surface drinking
water supply watersheds. The five Water Supply Classifications, WS-1, WS-II, WS-III, WS-IV,
and WS-V are intended to reflect the variability in the types of water supply watersheds across
the state.
The Lower Cape Fear Water and Sewer Authority ("the Authority") has requested that portions
of the Cape River in Bladen and Cumberland Counties (Cape Fear River Basin) be reclassified
from Class C to WS-IV CA and WS-IV (PA). The reason for the reclassification is to allow a
new intake structure to be placed in the river in order to supply initially Smithfield Packing
Company, and in the future, potentially several southern coastal plain municipalities with an
additional source of potable water.
In October 2004, the Environmental Management Commission (EMC), the Division of Water
Resources, and the Lumber River Council of Governments (COG) entered into a Cooperative
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Agreement to assure that area groundwater resources are monitored and "a regional plan for
long-range, sustainable water supply sources is developed" that would include Smithfield's
participation and investigation of additional water sources, including surface water sources. A
regional plan was developed, the Authority was formed to include representation of several
municipalities, and this proposed reclassification is an outgrowth of that plan.
Bladen and Cumberland Counties are the only local governments with jurisdiction in the
reclassification area. Bladen County supports the reclassification, and Cumberland County does
not object to the proposal. In addition, the Division of Water Resources does not object to the
proposal at this time, given that the requestor has stated that nearly all water to be removed from
the Cape Fear River will be returned to it. Furthermore, the Division of Environmental Health
does not object to the proposed reclassification, and the waters to be reclassified meet water
supply water standards according to 2007 DWQ studies.
For a proposed riverine WS-IV intake, the area that is within 10 miles and draining to the intake
is known as the Protected Area (PA), and the area within 0.5 mile and draining to the river intake
is known as the Critical Area (CA). The proposed CA would extend along the river from the
proposed intake, which is to be placed approximately 2 miles upstream of County Road 1316, to
a point approximately 0.5 miles upstream of the proposed intake. There are no named tributaries
to the Cape Fear River in the proposed CA. The proposed PA would extend along the river from
the proposed CA to a point approximately 1 mile upstream of Grays Creek. The proposed PA
includes several entire named tributaries, as well as the lower portions of many named
tributaries, to the Cape Fear River; most of these waters are presently classified C, and the
remaining waters carry the B classification. Approximately 160 acres of land and 30,628 acres of
land will be included in the new CA and PA, respectively.
If reclassified, development and discharge restrictions will apply. There are several animal
operations and one NPDES wastewater discharger, Dupont Fayetteville Works, in the proposed
water supply watershed; the above -mentioned animal operations and discharger most likely will
not be impacted by current regulations associated with this reclassification. There are not any
known planned dischargers and developments in the entire proposed reclassification area
according to DWQ staff in the Fayetteville Regional Office and local government staff. The
proposed area is rural in character, with primarily forested lands, row crops, and residences.
Bladen County and Cumberland County are the local governments with jurisdiction in the
reclassification area, and these local governments would need to modify water supply watershed
protection ordinances within 270 days after the reclassification effective date.
The state's effective date of the reclassification is expected to be May 1, 2009.
PERSONS IMPACTED BY THE PROPOSED RULE AND THEIR RESULTING
EXPENDITURES
(1) Regulated Parties
(a) Wastewater Dischargers
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There is one existing discharger in the proposed water supply watershed that most likely will not
be impacted by this reclassification according to DWQ NPDES Program staff. In addition, there
are not any known planned discharges into the proposed waters.
Cost/savings = $0.
(b) New Development
There are not any known planned developments in the area to be affected by the reclassification.
Cost/savings = $0.
(c) Local Governments
As mentioned above, Bladen and Cumberland Counties are the only potentially affected local
governments, and these govermments have existing water supply watershed ordinances. These
governments will be required to modify their water supply watershed ordinances within 270 days
after the effective date of the proposed rule in order to reflect the changes in surface waters
classifications, and resulting changes in land management requirements.
There is a one-time cost to local governments associated with the modification of their water
supply watershed ordinances. This expenditure includes costs for revising water supply
watershed protection language in the ordinance as well as the water supply boundary on maps,
plus administrative costs and public notification and hearing costs. Many factors make predicting
these costs very difficult, i.e. these responsibilities may be carried out by a hired consultant
and/or local government staff, may be a part of other projects undertaken by a local government,
or may be combined with regional efforts. If local government staff are capable of handling
these responsibilities, these tasks would be covered under their normal duties.
Value = Not Measureable
(d) Department of Transportation (DOT)
There are no known proposed DOT activities to take place in the area to be affected by the
reclassification.
Cost/savings = $0.
(2) Implementiniz Agencies
(a) Division of Water Quality (DWQ)
The NC Division of Water Quality (DWQ) Central office and regional staff will oversee the
processing of the proposed rule as well as the implementation and enforcement of the
requirements of the proposed rule. DWQ staff will handle the administrative procedures and
provide educational and technical assistance and rule/policy evaluations. In addition, there are
DWQ staff who will specifically oversee and assist local governments with watershed planning
and ordinances. The Division has staff who issue permits as well as conduct inspections and take
enforcement actions. DWQ monitors and keep records of compliance associated with their
inspections and enforcement activities which are based on discharge limits, permits, and other
regulations invoked by the reclassification.
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Any rule/regulatory development, monitoring, record keeping, permitting, inspections,
enforcement, or other activities required as a result of the reclassification and for which DWQ is
responsible will be incorporated into work loads of existing staff.
Cost/savings=$0
(3) Public Beneficiaries
(a) Humans
The benefit to the public is that these reclassified waters will be able to be used as a public water
supply source, and any users of this water supply source will benefit. Reclassifying the waters
will help protect the water supply for human consumption by decreasing the risk of
contamination of this drinking water supply via invocation of wastewater discharge and
stormwater management requirements along with water supply water quality standards. The
benefit to human health from this rule is not measurable; it would not be possible to associate
any specific savings with the above -mentioned benefits.
Value = Not Measurable
(b) Environment/Ecosystem
The restrictions on land use which protect the water quality through stormwater management
strategies and other narrative and numeric water quality standards benefit human health as well
as ecosystem health and environmental assets. The protective management criteria will help to
mitigate impacts from new development, and will also benefit fish and wildlife. More
specifically, portions of the area proposed to be reclassified may experience lower levels of
development density as well as decreased pollution, which may increase and improve habitat and
in turn propagation and survival of aquatic life including wildlife and fish. DWQ currently does
not have adequate data and models to quantify the potential savings associated with the increase
in wildlife habitat or reduction of pollution that may be realized as a result of this rule.
Value = Not Measurable
THRESHOLD DECISION AFTER PRELIMINARY RULE EVALUTION
The analysis of the proposed rule DOES NOT show an estimated annual economic impact of $3
million or more. The analytical support for the threshold decision is that it was determined that
costs will not exceed $3,000,000.
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