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Attachment 2. Excerpts from October 14, 2014 UNRBA Agenda Abstract BACKGROUND: The Falls Lake Nutrient Management Strategy (Falls Lake Rules) require local governments, the NCDOT, the agricultural community, and other regulated parties located in the Falls Lake watershed (Attachment 1) to reduce nitrogen and phosphorus nutrient loading to the lake by 40% and 77% respectively by 2036. Regulated parties anticipate significant financial and technical difficulties with meeting the mandated nutrient reduction targets. The fiscal note prepared by the State at the time the Falls Lake Rules were developed estimated the cost of compliance with the rules to be at least $1.5 billion. Many affected parties believe the phosphorus reduction goal of 77% is not attainable at any cost. As a result of the challenges with meeting the goals of the Falls Lake Rules, the Upper Neuse River Basin Association (UNRBA), of which Orange County is a member, is working to revise Stage II of the Falls Lake Rules. The activities of the UNRBA are guided by the Consensus Principles, which have been adopted by nearly all of the jurisdictions in the Falls Lake watershed, including the Orange County BOCC on March 16, 2010 (Attachment 2). The Consensus Principles emphasize the protection of Falls Lake as a water supply for the City of Raleigh, while also stating the need for re- examination of Stage II of the Falls Lake Rules. Consensus Principles Consensus Principle #9 includes the following with regard to the development of the Falls Lake Rules: "...relied on a limited data base which will be substantially enhanced by a more rigorous program of sampling, monitoring and analysis." Furthermore: "The EMC [Environmental Management Commission] should therefore begin a re- examination of its nutrient management strategy for Falls Lake by January 1, 2018. The re- examination should consider, among other things, (/) the physical, chemical, and biological conditions of the Lake with a focus on nutrient loading impacts and the potential for achieving the Stage 1 goal by 2021 as well as the feasibility of both achieving the Stage 2 reduction goals and meeting the water quality standard for chlorophyll -a in the Upper Lake, (h) the cost of achieving, or attempting to achieve, the Stage 2 reduction goals and meeting the water quality standard for chlorophyll -a in the Upper Lake, (iii) the existing uses in the Upper Lake and whether alternative water quality standards would be sufficient to protect those existing uses...". Consensus Principle 10 states: "The limited resources available to DWQ [Division of Water Quality, now Division of Water Resources - DWR] and DENR [Department of Environment and Natural Resources] for the implementation of the nutrient management strategy and the need for a robust and active sampling and monitoring program, as well as additional modeling, make it desirable for the affected local governments to share resources and undertake these important activities, and other activities associated with the re- examination of the Nutrient Management Strategy, collectively. The affected local governments should share resources and assist with funding for the examination of the Nutrient Management Strategy."