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university property, and road rights-of--way, none of which could be used by local governments for locating BMPs (FA Appendix B, table B-2, p.B-7). Because the land values for those property are lower than average, the weighted average of $78,000 is likely to be lower than the land costs faced by local governments in implementing this rule, despite the use of "true" land values described in note 2 (FA Appendix B, note 2, p.B-2). d. The fiscal analysis calculates the total lifetime cost for all BMPs needed to achieve nutrient reductions based on a proportion of different BMPs. The proportions of different BMPs is based primarily on relative cost effectiveness, with the weighting adjusted somewhat based on local government input (FA Chapter 5, p.60). The selection of BMPs implemented has a very large effect on the total cost of implementing this rule. We will not know what the likely selection of BMPs will be until local governments have completed their feasibility studies and implementation plans. Therefore, we will not have abetter idea of total cost until three years after this rule has been adopted. e. The fiscal analysis states that "reduction needs for one nutrient will overtreat for the other by some amount" (FA Chapter 5, p.61). More specifically, the analysis assumes that "significant excess phosphorus reduction would be achieved in meeting nitrogen needs." The analysis then calculates a "total revenue potential in meeting baseline reduction needs as approximately $7.6 million." The Jordan Lake nutrient strategy requires significant reductions in both Total Nitrogen and Total Phosphorus. Because nonpoint sources must achieve reductions in Total Nitrogen, BMPs to reduce nitrogen must be implemented. BMPs that reduce nitrogen would also reduce phosphorus, but credit for one nutrient cannot be traded for a needed reduction in the other nutrient. Phosphorus credits only have value if there are buyers. The assumption of phosphorus over-treatment resulting in $7.6 million of revenue potential is questionable. f. One cost entirely missing from the fiscal analysis is the loss of tax revenue to local governments. The cost calculation for installing BMPs includes the cost of purchasing land, but not the cost of the lost tax revenue once the land becomes public property. Local governments will lose those tax revenue streams forever. Calculating the net present value of the lost tax revenues could result in a significant cost. 5. Protection of Existing Riparian Buffers a. The list of affected local governments (FA Chapter 6, p.86) does not include the municipalities of Ossipee and Swepsonville identified in the rule, .0262 (6)(a). b. The pay rate of $36/hour (FA Chapter 6, p.87) used to quantify the cost of local governments contracting assistance in preparing ordinances seems rather low. 6. Offsetting Nutrient Loads -The rules for new development (.0265 (3)(a)(vi)), new wastewater dischargers (.0270 (6)(a)(ii)), expanding wastewater dischargers (.0270 (7)(a)(ii)), wastewater discharge group compliance associations (.0270 (9)(h)), new development by non-NCDOT state and federal entities (.0271 (3)(a)(vi)), and new development by NCDOT (.0270 (4)(c)) allow for payments to the NC Ecosystem Enhancement Program as provided in Rule 15A NCAC 2B .0240 to partially offset their nitrogen and phosphorus loads. The NC Ecosystem Enhancement Program is a statewide organization. Any projects paid for with offset payments from a given Jordan Lake subwatershed, but are implemented by the NC Ecosystem Enhancement Program outside of