Agenda - 03-26-2009 - 4a7 - Laserfiche WebLink

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4a-68 PROPOSED JORDAN LAKE NUTRIENT MANAGEMENT RULES -March 20, 2009 PURPOSE: To provide updated information to Orange County's elected leaders about the likely impacts of the Jordan Lake Nutrient Management Rules on Orange Water and Sewer Authority (OWASA). CURRENT STATUS: The Jordan Lake Rules were adopted by the NC Environmental Management Commission (EMC) in May 2008. The NC Rules Review Commission (RRC) approved the Rules with some modifications in November 2008, but because the RRC received at least 10 public objection letters, the Rules are now under review by the NC General Assembly during the 2009 Session. If the General Assembly does not revise/disapprove of the rules during the Session, they will automatically go into effect in the summer of 2009. Legislation has been introduced to the NC House/Senate opposing the Rules in total (sponsors include legislators representing Alamance, Iredell, Surry, Yadkin, Guilford, Rockingham, Cherokee, Graham, Clay, Macon, Caswell, Orange, Halifax, Nash, Mecklenburg, Franklin, Anson and Union Counties). DISCUSSION: The OWASA Board submitted comments on the EMC's proposed rules in July 2007 (attached). The main points of that letter, and what, if any, changes were subsequently made to the proposed Rules in response to those comments are listed below. Also provided is any substantive information that has changed since OWASA's comments were submitted in July 2007. • OWASA noted the substantial scientific uncertainty underlying the rules and recommended that the nutrient reduction goals be revisited at regular intervals of not more than 5 years. The currently proposed Rules require a review of the Jordan Lake strategy "after at least 10 years following the effective date. " • OWASA recommended that the unnecessarily stringent, one-size-fits-all chlorophyll a water quality standard be re-evaluated as part of the rules development process. No action has been taken on this. • OWASA did not believe that any additional capital improvements would be needed to meet the Rules' requirements before wastewater flows at OWASA's Mason Farm Wastewater Treatment Plant (WWTP) reach its current rated capacity (14.5 million gallons per day [MGD] maximum month flow, or average daily flow of 12 MGD). It is now believed that additional capital improvements maybe required when average daily flows reach 10 MGD (during the past four years average flows have been approximately 7.5 MGD). The timing and estimated costs for any required capital improvements will be determined during a WWTP Capacity Analysis that OWASA intends to conduct in Fiscal Year 2010. • OWASA anticipated operating costs would increase by about $500,000/year once the Total Nitrogen (TN) limit goes into effect. However, based on recent chemical price increases, OWASA now estimates the initial annual cost increase will be about $825,000/year (with other yet to be determined cost increases associated with increased energy usage and biosolids management requirements). • OWASA supports nutrient reduction trading opportunities allowed by the Rules, but more recent information indicates that it is unlikely that nutrient trading and offset arrangements will provide any benefits to point source dischargers in Jordan Lake's Upper New Hope Arm. • OWASA supported a 2016 compliance date for point source TN reduction. The proposed rules are currently written to require compliance by 2014. CONCLUSION: OWASA supports any practical initiative that promotes water quality protection, but notes that implementation of the currently proposed Rules will have two major impacts on all OWASA customers: 1. Capital and annual operations and maintenance costs associated with additional wastewater treatment mandated by the Rules will require significant and sustained increases in future sewer rates and fees. 2. OWASA's WWTP will likely not be able to achieve the stringent nitrogen limits at average daily flows of more than 14.5 MGD without major breakthroughs in treatment technology. Future compliance may only be possible through some combination of severe limits on new connections to the system; severe reduction/elimination in the volume of septage (septic tank waste) accepted for treatment; and/or increased diversion of wastewater effluent via non-discharge strategies.