North Carolina § 143-214 - 26. Nutrient offset credits.

§ 143-214. 26. Nutrient offset credits.

Nutrient offset credits may be purchased to offset nutrient loadings to surface waters as required by the Environmental Management Commission. Nutrient offset credits shall be effective for the duration of the nutrient offset project unless the Department of Environmental Quality finds the credits are effective for a limited time period. Nutrient offset projects authorized under this section shall be consistent with rules adopted by the Commission for implementation of nutrient management strategies. A government entity, as defined in G.S. 143-214.11, may purchase nutrient offset credits through either: Participation in a nutrient offset bank that has been approved by the Department if the Department approves the use of the bank for the required nutrient offsets. Payment of a nutrient offset fee established by the Department into the Riparian Buffer Restoration Fund established in G.S. 143-214.21. A party other than a government entity, as defined in G.S. 143-214.11, may purchase nutrient offset credits through either: Participation in a nutrient offset bank that has been approved by the Department if the Department approves the use of the bank for the required nutrient offsets. Payment of a nutrient offset fee established by the Department into the Riparian Buffer Restoration Fund established in G.S. 143-214.21. This option is only available to an applicant who demonstrates that the option under subdivision (1) of this subsection is not available. To offset NPDES-permitted wastewater nutrient sources, credits may only be acquired from nutrient offset projects located in either of the following areas: The same hydrologic area. For purposes of this subdivision, "hydrologic area" means an eight-digit cataloging unit designated by the United States Geological Survey. A location that is downstream from the source and upstream from the water body identified for restoration under the applicable TMDL or nutrient management strategy. To offset stormwater or other nutrient sources, credits may only be acquired from an offset project located within the same hydrologic area, as defined in G.S. 143-214.11. The permissible credit sources identified in subsections (d) and (e) of this section may be further limited by rule as necessary to achieve nutrient strategy objectives. History (2009-337, s. 4(a)-(c); 2019-86, s. 1.) Editor's Note. - Session Laws 2009-337, s. 4(a)-(c) was codified as this section at the direction of the Revisor of Statutes, effective July 24, 2009. Session Laws 2019-86, s. 2, made the amendments to this section by Session Laws 2019-84, s. 1, effective July 8, 2019, and applicable to nutrient offset credits purchased on or after that date. Session Laws 2020-18, s. 15(a)-(d), provides: "(a) Notwithstanding 15A NCAC 02B .0701 (Nutrient Strategies Definitions), 15A NCAC 02B .0703 (Nutrient Offset Credit Trading), and 15A NCAC 02B .0713 (Neuse Nutrient Strategy: Wastewater Discharge Requirements), nutrient offset credits shall be applied to a wastewater permit by applying the TMDL transport factor to the permitted wastewater discharge and to the nutrient offset credits. "(b) Subsection (a) of this section applies only to wastewater discharge permit applications for a local government located in the Neuse River Basin with a customer base of fewer than 15,000 connections. "(c) No later than August 1, 2020, the Department of Environmental Quality, in conjunction with affected parties, shall begin the modeling necessary to determine new transport zones and delivery factors for the Neuse River Basin for point source discharges and nutrient offset credits. Once the Department has completed the modeling, the Environmental Management Commission shall use the modeling and other information provided during the public comment period to adopt new transport zones and delivery factors by rule. The Environmental Management Commission may adopt temporary rules to implement this section. "(d) This section is effective when it becomes law. Subsections (a) and (b) of this section shall expire when the rule required by subsection (c) of this section becomes effective." Session Laws 2020-18, s. 16(a), is a severability clause. Effect of Amendments. - Session Laws 2019-86, s. 1, rewrote subsection (a); and added subsections (d) through (f). For effective date and applicability, see editor's note.