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Work Session - Nutrient TradingCopyrighted February 10, 2020 City of Dubuque Work Session - Bottom # 2. IT E M T I T L E:Nutrient Trading Update S UM M ARY:City staff will conduct a work session with the City Council on the status of the Nutrient Trading Program. S UG G E S T E D D I S P O S I T I O N: AT TAC H ME N TS: Description Type Nutrient Trading Background Material-MV M Memo City Manager Memo Nutrient Trading Update-MV M Memo Supporting Documentation Staff Memo Supporting Documentation US E PA Memo Supporting Documentation Nutrient Trading Reduction Strategy Supporting Documentation Nutrient Reduction Strategy Factsheet Supporting Documentation Masterpiece on the Mississippi Dubuque Ci t \LU\T.I li4 1111' 2007.2012.2013 2017*2019 Why consider a memorandum of understanding (MOU) with the Iowa Department of Natural Resources (IDNR) regarding the City's nutrient reduction strategy? • Federal Clean Water Act Requires that the City obtain a permit to discharge wastewater into "waters of the United States" such as the Mississippi. • The permitting authority was delegated to the Iowa Department of Natural Resources (IDNR). • The City's permit from the IDNR specifies the levels of pollutants, such as nitrogen and phosphorus, that the City can discharge into the Mississippi. • In addition, the City's permit requires the development of a strategy to try and reduce the discharge of nitrogen and phosphorus by 66% and 75% respectively. This "nutrient reduction strategy" is to be in place by 2032. • The City completed a feasibility study in 2016 which determined that for an investment of roughly $10 million, the City could approach those reduction goals. But because the. City had just expended more than $64 million to modernize and upgrade its wastewater treatment facility, the nutrient reduction improvements were not deemed feasible in the short term. Instead, the IDNR required a second feasibility study, due by the end of 2021, to revisit the issue. • The MOU allows the City to consider nutrient reduction improvements in the various watersheds throughout the county as part of its nutrient reduction strategy. So that depending on the effectiveness and number of these improvements that the City helps make a reality, the nutrient reduction required at the City's treatment facility could be lessened. It may be possible to reduce nutrients throughout the county such that the treatment facility upgrades required at the City's treatment facility would cost less than the improvements currently estimated at $10 million. • Improvements in the watershed are typically more cost effective at reducing the discharge of nutrients into receiving streams. They can also provide additional benefits such as soil health, flood mitigation, and stream restoration. • The MOU is voluntary. It can be terminated by the City. • Without the MOU, without nutrient reductions in the watershed, the City will be required to achieve the specified nutrient reduction goals through $10 million in improvements at the treatment plant alone, all at the City's cost. Memorandum of Understanding — a "discussion style" contract Purpose: "to establish a framework for the City to engage in watershed management within its HUC 8 and credit quantifiable nutrient reductions in that watershed for the benefit of the City's nutrient reduction targets through NPDES permitting. The City may use this framework to achieve compliance with current requirements arising from the NRS and potential future nutrient requirements." Definitions — for clarity. Background — for context and legal authority. Pages 2 - 7 - key points: EPA issued a formal Memo confirming its desire for offset / trading programs as part of permit compliance; The offset program is based on and considered within Iowa's Nutrient Reduction Strategy, The City will be using tools developed by the EPA, League of Cities, Army Corps of Engineers, and the DNR, specifically the "NTT" or Nutrient Tracking Tool - an Iowa -normalized environmental model; and the "NRE", or Nutrient Reduction Exchange — a tool for quantification of watershed practices]. The contract (starting on p. 8) 5. The goal — regulatory certainty by using watershed approach. 6A. The city can use watershed work, as modeled through the NTT and registered in the NRE. By using a pre -approved modeling approach, the City gains certainty for offsets. 6C. The city gets credit for practices it implements, even if in conjunction with other groups. It just needs to prove pre -practice status, register the practice, and run the NTT. 6D. To reward early adoption and leadership, practices implemented that are later mandated will still be credited towards the permit (unless prohibited by the law mandating practices). 7A. The city must prepare a watershed plan, to identify the watershed(s) at issue, how the city plans to use BMPs to reduce nutrients, estimates on load reductions over time, how the city will maintain permanent practices, a basic schedule for implementation, and how the City will monitor/track the effectiveness. 8A. Models using "best management practices" (consideration practices) through the NTT shall be at the field scale. This focuses the work on actual practices that will make a difference. 8B. The City documents the practices, uploads them into the NRE using the NTT tool. Iowa State verifies the validity of the City's application of the model and sends it to Iowa DNR. Iowa DNR then has thirty days to comment and issue a letter establishing the validity of the credits claimed or request modifications. If the DNR does not respond the credits are deemed approved. 8C. The City is committing to meeting the long term N and P goals in the Nutrient Reduction Strategy. These will be broken down into a series of short term steps set out in the 5 year permit terms. 8D. The City commits to achieving its portion of the NRS goals by 2032 (12 years). This is something the City's wastewater team determined was feasible through technology alone. 8E. By entering into this Agreement, the City gains further support from the DNR that, unless required to do so by a new law, the DNR will not impose any additional nutrient reduction requirements during this implementation period. 8F. The City gets credit for the voluntary work in the watershed it has done from 2013 to date as long as it can be modeled in the NTT (showing preexisting practice and changes since implementation). 9. Termination by either party 180 days in advance of the expiration of a permit term, with the termination of the offset program to conclude at the end of the following permit. In other words, you get a 5 year + 180 day notice of the end of the watershed offset credit program. TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Nutrient Trading Work Session Background Material DATE: February 6, 2020 Attached are the materials from the September 3, 2019 City Council meeting on nutrient trading, which provides background information for the February 10, 2020 work session. _____________________________________ Michael C. Van Milligen MCVM:as Attachment cc: Crenna Brumwell, City Attorney Teri Goodmann, Assistant City Manager Cori Burbach, Assistant City Manager TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Nutrient Trading Update DATE: August 27, 2019 Assistant City Manager Teri Goodmann is transmitting information on the status of the Nutrient Trading Program first initiated by the Iowa League of Cities CIG grant and the timeline of events leading to this and future Nutrient Trading discussions. _____________________________________ Michael C. Van Milligen MCVM:jh Attachment cc: Crenna Brumwell, City Attorney Teri Goodmann, Assistant City Manager Cori Burbach, Assistant City Manager TO: Michael C. Van Milligen, City Manager FROM: Teri Goodmann, Assistant City Manager SUBJECT: Nutrient Trading Update DATE: August 27, 2019 INTRODUCTION The purpose of this memo is to update you on the status of the Nutrient Trading Program first initiated by the Iowa League of Cities CIG grant and the timeline of events leading to this and future Nutrient Trading discussions. CATFISH CREEK AUTHORITY BOARD The Catfish Creek Watershed Authority (CCWMA) was created in 2012 from a 28e agreement. It comprises of the Soil and Water Conservation District, Dubuque County, and the Cities of Dubuque, Asbury, Peosta, and Centralia. The CCWMA is tasked with looking for ways to reduce flooding and improve water quality across the watershed and making recommendations to the political jurisdictions it serves. Currently, in addition to the IPC grant outlined below, the CCWMA is currently installing conservation practices within the watershed through an SRF sponsorship grant (Bee Branch Phase II). These practices include but are not limited to the following: • Grass waterways • Cover crops • Grade Stabilization Structures • Soil quality restoration • Native prairie • Bio-swales, bio-cells, rain gardens IOWA PARTNERS FOR CONSERVATION (IPC) GRANT In 2007, the Dubuque Soil and Water Conservation District (SWCD) initiated the Catfish Creek Watershed project, which began as a small 9,000 acre project focused on utilizing urban and agricultural conservation practices to reduce sediment runoff to a treasured local cold water trout stream. After experiencing success with both conservation project implementation and a new county-wide stormwater policy; the District, County and City continued working with NRCS and other local stakeholders to expand the project to cover the entire 46,000 acre, HUC 10 watershed. In 2012, the need to further target and coordinate work in the watershed and the opportunity to utilize Iowa’s novel and innovative Watershed Management Authority structure, project leaders approached and partnered with four neighboring cities to develop and implement a comprehensive watershed plan. 2 In 2018, the City of Dubuque was successfully awarded a $326,712.00 NRCS grant for the purposes to build on the solid foundation of watershed work in the agricultural areas of the Catfish creek watershed by (1) hiring a watershed coordinator to implement conservation projects and develop a farmer leadership team for the watershed, (2) Utilize the Agricultural Conservation Program Framework (ACPF) GIS tool and Prioritized Target and Measure Application (PTMApp) modeling program to target conservation practice implementation and (3) Establish a county-wide soil health policy focused on a cover crop/buffer initiative that is locally funded. Partners for this proposal include the Dubuque SWCD, NRCS, Dubuque County, and the Catfish Creek W atershed Authority Board (CCWMA). Measurable outcomes will be the development of an online publicly accessible database detailing pollutant load contributions/deductions, structural and non-structural conservation project implementation and mapping, and a locally funded cover crop program. The ACPF approach is grounded in "precision conservation"; the idea of not only selecting the right conservation practice, but also putting it where it will be most effective. The framework is essentially a pyramid, with cover cropping and other soil management practices that every farmer should be using at its base. ACPF identifies the prime spots for conservation practices at the edge of fields (nutrient removal) and lastly, the prospects for preventing both surface and subsurface losses of nutrients and sediments along stream and river corridors. PTMApp will then be used in conjunction with ACPF to further determine cost-analysis of BMPs and to build an on-line database for this project. The need for CCWMA administration and developing a farmer led collaboration to more successfully and effectively reach agricultural producers in the watershed for long term success is essential. The support and need for a county-wide, local led cover crop / buffer initiative exists and has been discussed with elected officials. Dubuque County, the City of Dubuque and the Dubuque SWCD intend to work together to create a long-term sustainable policy that not only expands the use of cover crops and no-till systems, but also ensures long-term permanent adoption of these practices. These models will be used in conjunction with the Iowa Nutrient Tracking Tool (NTT) which will be the recognized model the Iowa Department of Natural Resources (IDNR) will accept to receive “credit” towards nutrient reduction. In 2019, Houston Engineering was hired to complete the hydrologically conditioned Digital Elevation Conservation Planning model, complete ACPF model, and to prepare Implementation Profiles and Targeted Conservation Portfolios for the Catfish Creek Watershed (3 HUC-12 watersheds). This work should conclude in summer of 2020. Also in the spring of 2019, an agricultural watershed coordinator was hired by the Catfish Creek Watershed Authority Board (CCWMA) to begin working with farmers on potential BMP locations, coordinate with NRCS, and promote a soil health program throughout Dubuque County. Eric Nie will be under contract for approximately 4 years. 3 LEAGUE OF CITIES In October of 2015, the Iowa League of Cities received $715,000 in a three-year Conservation Innovation Grant (CIG) for the purposes of developing a nutrient trading model for the State of Iowa. Dubuque and Storm Lake were partners in the grant and both cities used the implementation of conservation projects as cost share matches for the grant. The CIG grant implementation was also informed by a stakeholder’s group which included the Iowa League of Cities, Iowa Department of Natural Resources, Iowa Environmental Council, Iowa Soybean Association, Iowa Corn Growers, Iowa Farm Bureau, Iowa Natural Heritage Foundation, Iowa Chapter of The Nature Conservancy, Iowa Environmental Law and Policy Center, and the Iowa Agriculture Water Alliance. At the end of the three years, the grant deliverable was a registry in which cities and other participants could place constructed conservation projects for potential use in a future State of Iowa nutrient trading program. In October of 2018, the grant was extended for one year and the League of Cities officially transferred the draft registry to the Iowa Department of Natural Resources (IDNR) for further development. The next step in this process would be to codify the registry in the State Code of Iowa and to develop “regulatory certainty” for Publicly Owned Treatment Works (POTW) for future permits in which nutrient reduction standards are included. This would allow for POTW’s to use conservation projects installed in the watershed as a method of nutrient reduction in addition to treatment plant upgrades for nitrogen and phosphorus removal. This would most likely take place between the IDNR and the POTW through a Memorandum of Understanding (MoU). WASTEWATER TREATMENT PLANT AND FUTURE PERMITS The Mississippi River/Gulf of Mexico Watershed Nutrient Task Force was established in the fall of 1997 to understand the causes and effects of eutrophication in the Gulf of Mexico. In 2001, the Task Force released the 2001 Action Plan, a national strategy to reduce Gulf hypoxia based on the science of a significant effort called the Integrated Assessment that was led by the White House Committee on Environment and Natural Resources. The Task Force released a revised action plan in 2008. The revised action plan called for, and led to, the development of the Iowa Nutrient Reduction Strategy. The strategy was developed through collaboration amongst the Iowa Department of Agriculture and Land Stewardship, the Iowa Department of Natural Resources, and the Iowa State University College of Agriculture and Life Sciences. On November 19, 2012, the strategy was released for public comment. The final version of the strategy was released May 29, 2013. Iowa Administrative Code 567-62.8(5) provides the legal authority to impose technology- based effluent limits, on a regulated discharge (covered under the NPDES program), for a pollutant not covered by federal effluent standards. These limits are based on the effect of the pollutant in water and the feasibility and reasonableness of treating such pollutant. Upon finalization of the Iowa Nutrient Reduction Strategy, NPDES permit renewals for municipal and industrial NPDES permits with existing biological treatment systems require evaluating the feasibility for nutrient removal and the development of a schedule for process implementation. 4 On October 1, 2013, the City of Dubuque Water & Resource Recovery Center’s current NPDES Permit was issued. The permit required the preparation and submission of a report, by October 1, 2015, that evaluates the feasibility and reasonableness of reducing the amounts of nitrogen and phosphorus discharged into surface water. The City hired Strand Associates, of Madison, Wisconsin, to conduct the study, which was completed and submitted to the Iowa Department of Natural Resources (IDNR) on September 21, 2015. Per the Permit Rationale, dated December 16, 2016, IDNR determined meeting the goals of the Nutrient Reduction Strategy was feasible, but, due to high expenses of recent improvements at the WRRC, was not considered reasonable at that time. IDNR proposed to amend the City’s permit to require submittal of a new nutrient reduction feasibility study in five years, stating by that time, other options for nutrient removal or nutrient credit trading may become available. The City’s permit was subsequently amended on January 1, 2017. The amended permit requires the submission of a new feasibility study, as an addendum to the original, no later than January 1, 2022. The study shall evaluate the feasibility and reasonableness of reducing the amounts of nitrogen and phosphorus discharged, by the POTW, into surface water by 66% and 75% respectively. The report must include a description of progress made on short-term recommendations, a description and evaluation of new or additional technologies not previously considered, such as the phosphorus recovery pilot project, conducted in 2016, and must update the preferred methods for reducing total nitrogen and total phosphorus. In addition to selecting operational changes or additional treatment technologies, the City may evaluate and propose to implement practices within the watershed that may achieve greater reductions in nitrogen and phosphorus than the preferred method(s) alone. For each treatment technology, the report shall assess its feasibility, reasonableness, practicability, availability of equipment, capital costs, annual operating costs, impact on user rates, and any non-water quality environmental impacts. A major goal of the study would be to determine whether it would be more cost effective to meet nutrient reduction goals solely with modifications to the POTW, or with a combination of modifications to the POTW in addition to investing in conservation projects in the watershed or surrounding areas. Once nutrient reduction is considered reasonable, through facility improvements, or watershed practices, or a combination of the two, an implementation schedule will be incorporated into the City’s NPDES permit by amendment. Effluent discharge limits will be based on a minimum of one full year of operating data after implementation of the operational changes or completion of plant modifications and a six-month optimization period. NUTRIENT TRADING CURRENTLY City staff member Dean Mattoon recently spoke with Adam Kiel, Operations Manager in the Environmental Programs and Services Divisions of the Iowa Soybean Association. 5 Adam is working closely with the City of Cedar Rapids on their feasibility study and is one of the many partners and technical advisory committee members in the original CIG grant. Adam indicated that Cedar Rapids may build facility upgrades initially and reserve any watershed projects for increases in population or the addition of a new industry to the POTW capacity. City staff member Dean Mattoon also spoke with Rick Robinson, the Environmental Policy Advisor for the Iowa Farm Bureau Federation. Rick indicated that they are excited about nutrient trading and would like to move forward with the MoU approach, provided there would be some credit given to farmers in the effort to reach the EPA required State Nutrient Reduction Strategy goals. The Sand County Foundation of Wisconsin recently received grant funding from the Walton Foundation to explore and expand the work of Wisconsin’s Adaptive Management Approach, which uses an MoU to achieve nutrient reduction goals, into Iowa and Illinois. Bartlett Durand, an attorney working with the Sand County Foundation has met with City staff and is eager to work with Dubuque, using the Walton Foundation grant, to ensure that the City’s best interests are met when developing an MoU with the State for nutrient trading. With your approval, City staff will continue to work closely with State partners and the Sand County Foundation, through the Water and Resource Recovery Center feasibility study, to explore the MoU and determine whether this approach would reduce the cost to users while still achieving the nutrient reduction goals that the WRRC’s upcoming permit will require. ACTION TO BE TAKEN We respectfully request permission to continue to work with partners and with the Sand County Foundation on Nutrient Trading. Attach. Prepared by Dean Mattoon cc: Gus Psihoyos, City Engineer Dean Mattoon, Engineering Technician Eric Schmechel, Urban Conservationist Willie O’Brien, WRRC Plant Manager Internet Address (~L) • http://www.epa.gov Recycled/Recyclable. Printed with Vegetable Oil Based Inks on 100% Postconsurner, Process Chlorine Free Recycled Paper UNITED STATES ENVIRONMENTAL PROTECTION AGENCY WASHINGTON, D.C. 20460 MAR 1 6 2.011 OFFICE OF WATER MEMORANDUM SUBJECT: Working in Partnership with States to Address Phosphorus and Nitrogen Pollution through Use of a Framework for State Nutrient Reductions FROM: Nancy K. Stoner Acting Assistant Administrato TO: Regional Administrators, Regions 1-10 This memorandum reaffirms EPA's commitment to partnering with states and collaborating with stakeholders to make greater progress in accelerating the reduction of nitrogen and phosphorus loadings to our nation's waters. The memorandum synthesizes key principles that are guiding and that have guided Agency technical assistance and collaboration with states and urges the Regions to place new emphasis on working with states to achieve near-term reductions in nutrient loadings. Over the last 50 years, as you know, the amount of nitrogen and phosphorus pollution entering our waters has escalated dramatically. The degradation of drinking and environmental water quality associated with excess levels of nitrogen and phosphorus in our nation's water has been studied and documented extensively, including in a recent joint report by a Task Group of senior state and EPA water quality and drinking water officials and managers. I As the Task Group report outlines, with U.S. population growth, nitrogen and phosphorus pollution from urban storm water runoff, municipal wastewater discharges, air deposition, and agricultural livestock activities and row crop runoff is expected to grow as well. Nitrogen and phosphorus pollution has the potential to become one of the costliest and the most challenging environmental problems we face. A few examples of this trend include the following: 1) 50 percent of U.S. streams have medium to high levels of nitrogen and phosphorus. 2) 78 percent of assessed coastal waters exhibit eutrophication. 3) Nitrate drinking water violations have doubled in eight years. 1 An Urgent Call to Action: Report of the State-EPA Nutrients Innovations Task Group, August 2009. r 4) A 2010 USGS report on nutrients in ground and surface water reported that nitrates exceeded background concentrations in 64% of shallow monitoring wells in agriculture and urban areas, and exceeded EPA's Maximum Contaminant Levels for nitrates in 7% or 2,388 of sampled domestic wells? 5) Algal blooms are steadily on the rise; related toxins have potentially serious health and ecological effects. States, EPA and stakeholders, working in partnership, must make greater progress in accelerating the reduction of nitrogen and phosphorus loadings to our nation's waters. While EPA has a number of regulatory tools at its disposal, our resources can best be employed by catalyzing and supporting action by states that want to protect their waters from nitrogen and phosphorus pollution. Where states are willing to step forward, we can most effectively encourage progress through on-the-ground technical assistance and dialogue with state officials and stakeholders, coupled with cooperative efforts with agencies like USDA with expertise and financial resources to spur improvement in best practices by agriculture and other important sectors. States need room to innovate and respond to local water quality needs, so a one-size-fits- all solution to nitrogen and phosphorus pollution is neither desirable nor necessary. Nonetheless, our prior work with states points toward a framework of key elements that state programs should incorporate to maximize progress. Thus, the Office of Water is providing the attached "Recommended Elements of a State Nutrients Framework" as a tool to guide ongoing collaboration between EPA Regions and states in their joint effort to make progress on reducing nitrogen and phosphorus pollution. I am asking that each Region use this framework as the basis for discussions with interested and willing states. The goal of these discussions should be to tailor the framework to particular state circumstances, taking into account existing tools and innovative approaches, available resources, and the need to engage all sectors and parties in order to achieve effective and sustained progress. While the Framework recognizes the need to provide flexibility in key areas, EPA believes that certain minimum building blocks are necessary for effective programs to manage nitrogen and phosphorus pollution. Of most importance is prioritizing watersheds on a state-wide basis, setting load-reduction goals for these watersheds based on available water quality information, and then reducing loadings through a combination of strengthened permits for point-sources and reduction measures for nonpoint sources and other point sources of stormwater not designated for regulation. Our experience in almost 40 years of Clean Water Act implementation demonstrates that motivated states, using tools available under federal and state law and relying on good science and local expertise, can mobilize local governments and stakeholders to achieve significant results. It has long been EPA's position that numeric nutrient criteria targeted at different categories of water bodies and informed by scientific understanding of the relationship between nutrient loadings and water quality impairment are ultimately necessary for effective state 2 Nutrients in the Nation's Streams and Groundwater: National Findings and Implications, US Geological Survey, 2010. 2 programs. Our support for numeric standards has been expressed on several occasions, including a June 1998 National Strategy for Development of Regional Nutrient Criteria, a November 2001 national action plan for the development and establishment of numeric nutrient criteria, and a May 2007 memo from the Assistant Administrator for Water calling for accelerated progress towards the development of numeric nutrient water quality standards. As explained in that memo, numeric standards will facilitate more effective program implementation and are more efficient than site-specific application of narrative water quality standards. We believe that a substantial body of scientific data, augmented by state-specific water quality information, can be brought to bear to develop such criteria in a technically sound and cost-effective manner. EP A's focus for nonpoint runoff of nitrogen and phosphorus pollution is on promoting proven land stewardship practices that improve water quality. EPA recognizes that the best approaches will entail States, federal agencies, conservation districts, private landowners and other stakeholders working collaboratively to develop watershed-scale plans that target the most effective practices to the acres that need it most. In addition, our efforts promote innovative approaches to accelerate implementation of agricultural practices, including through targeted stewardship incentives, certainty agreements for producers that adopt a suite of practices, and nutrient credit trading markets. We encourage federal and state agencies to work with NGOs and private sector partners to leverage resources and target those resources where they will yield the greatest outcomes. We should actively apply approaches that are succeeding in watersheds across the country . . USDA and State Departments of Agriculture are vital partners in this effort. Ifwe are to make real progress, it is imperative that EPA and USDA continue to work together but also strengthen and broaden partnerships at both the national and state level. The key elements to success in BMP implementation continue to be sound watershed and on-farm conservation planning, sound technical assistance, appropriate and targeted financial assistance and effective monitoring. Important opportunities for collaboration include EPA monitoring support for USDA's Mississippi River Basin Initiative as well as broader efforts to use EPA section 319 funds (and other funds, as available) in coordination with USDA programs to engage creatively in work with communities and watersheds to achieve improvements in water quality. Accordingly the attached framework envisions that as states develop numeric nutrient criteria and related schedules, they will also develop watershed scale plans for targeting adoption of the most effective agricultural practices and other appropriate loading reduction measures in areas where they are most needed. The timetable reflected in a State's criteria development schedule can be a flexible one provided the state is making meaningful near-term reductions in nutrient loadings to state waters while numeric criteria are being developed. The attached framework is offered as a planning tool, intended to initiate conversation with states, tribes, other partners and stakeholders on how best to proceed to achieve near-and long-term reductions in nitrogen and phosphorus pollution in our nation's waters. We hope that the framework will encourage development and implementation of effective state strategies for managing nitrogen and phosphorus pollution. EPA will support states that follow the framework but, at the same time, will retain all its authorities under the Clean Water Act. 3 With your hard work, in partnership with the states, USDA and other partners and stakeholders, I am confident we can make meaningful and measurable near-term reductions in nitrogen and phosphorus pollution. As part of an ongoing collaborative process, I look forward to receiving feedback from each Region, interested states and tribes, and stakeholders. Attachinent Cc: Directors, State Water Programs Directors, Great Water Body Programs Directors, Authorized Tribal Water Quality Standards Programs Interstate Water Pollution Control Administrators 4 Recommended Elements of a State Framework for Managing Nitrogen and Phosphorus Pollution 1. Prioritize watersheds on a statewide basis for nitrogen and phosphorus loading reductions A. Use best available information to estimate Nitrogen (N) & Phosphorus (P) loadings delivered to rivers, streams, lakes, reservoirs, etc. in all major watersheds across the state on a Hydrologic Unit Code (HUC) 8 watershed scale or smaller watershed (or a comparable basis.) B. Identify major watersheds that individually or collectively account for a substantial portion of loads (e.g. 80 percent) delivered from urban and/or agriculture sources to waters in a state or directly delivered to multi-jurisdictional waters. C. Within each major watershed that has been identified as accounting for the substantial portion of the load, identify targeted/priority sub-watersheds on a HUC 12 or similar scale to implement targeted N & P load reduction activities. Prioritization of sub-watersheds should reflect an evaluation of receiving water problems, public and private drinking water supply impacts, N & P loadings, opportunity to address high-risk N & P problems, or other related factors. 2. Set watershed load reduction goals based upon best available information Establish numeric goals for loading reductions for each targeted/priority sub-watershed (HUC 12 or similar scale) that will collectively reduce the majority ofN & P loads from the HUC 8 major watersheds. Goals should be based upon best available physical, chemical, biological, and treatment/control information from local, state, and federal monitoring, guidance, and assistance activities including implementation of agriculture conservation practices, source water assessment evaluations, watershed planning activities, water quality assessment activities, Total Maximum Daily Loads (TMDL) implementation, and National Pollutant Discharge Elimination System (NPDES) permitting reviews. 3. Ensure effectiveness of point source permits in targeted/priority sub-watersheds for: A. Municipal and Industrial Wastewater Treatment Facilities that contribute to significant measurable N & P loadings; B. All Concentrated Animal Feeding Operations (CAFOs) that discharge or propose to discharge; and/or C. Urban Stormwater sources that discharge into N & P-impaired waters or are otherwise identified as a significant source. 4. Agricultural Areas In partnership with Federal and State Agricultural partners, NGOs, private sector partners, landowners, and other stakeholders, develop watershed-scale plans that target the most effective practices where they are needed most. Look for opportunities to include innovative approaches, such as targeted stewardship incentives, certainty agreements, and N & P markets, to accelerate adoption of agricultural conservation practices. Also, incorporate lessons learned from other successful agricultural initiatives in other parts ofthe country. 5. Storm water and Septic systems Identify how the State will use state, county and local government tools to assure Nand P reductions from developed communities not covered by the Municipal Separate Storm Sewer Systems (MS4) program, including an evaluation of minimum criteria for septic systems, use of low impact development/ green infrastructure approaches, and/or limits on phosphorus in detergents and lawn fertilizers. 6. Accountability and verification measures A. Identify where and how each of the tools identified in sections 3, 4 and 5will be used within targeted/priority sub-watersheds to assure reductions will occur. B. Verify that load reduction practices are in place. C. To assess/demonstrate progress in implementing and maintaining management activities and achieving load reductions goals: establish a baseline of existing N & P loads and current Best Management Practices (BMP) implementation in each targeted/priority sub-watershed, conduct ongoing sampling and analysis to provide regular seasonal measurements ofN & P loads leaving the watershed, and provide a description and confirmation of the degree of additional BMP implementation and maintenance activities. 7. Annual public reporting of implementation activities and biannual reporting of load reductions and environmental impacts associated with each management activity in targeted watersheds A. Establish a process to annually report for each targeted/priority sub-watershed: status, challenges, and progress toward meeting N & P loading reduction goals, as well as specific activities the state has implemented to reduce N & P loads such as: reducing identified practices that result in excess N & P runoff and documenting and verifying implementation and maintenance of source-specific best management practices. B. Share annual report publically on the state's website with request for comments and feedback for an adaptive management approach to improve implementation, strengthen collaborative local, county, state, and federal partnerships, and identifY additional opportunities for accelerating cost- effective N & P load reductions. 8. Develop work plan and schedule for numeric criteria development Establish a work plan and phased schedule for N and P criteria development for classes of waters (e.g., lakes and reservoirs, or rivers and streams). The work plan and schedule should contain interim milestones including but not limited to data collection, data analysis, criteria proposal, and criteria adoption consistent with the Clean Water Act. A reasonable timetable would include developing numeric N and P criteria for at least one class of waters within the state (e.g., lakes and reservoirs, or rivers and streams) within 3-5 years (reflecting water quality and permit review cycles), and completion of criteria development in accordance with a robust, state-specific workplan and phased schedule. 2 Nutrient Reduction Strategy For Wastewater Treatment Plants IoWa DePaRTmeNT oF NaTuRal ReSouRceS T he Iowa Nutrient Reduction Strategy is a science- and technology-based approach to assess and reduce nutrients delivered to Iowa waterways and the Gulf of Mexico. The strategy outlines efforts to reduce nutrients in surface water from point sources, such as municipal and industrial wastewater treatment plants, and nonpoint sources, including farm fields and urban areas, in a scientific, reasonable and cost-effective manner. The Iowa strategy was developed in 2013 in response to the 2008 Gulf Hypoxia Action Plan, which calls for the 12 states along the Mississippi River to craft strategies to reduce nutrients reaching the Gulf of Mexico. In addition to impacting the Gulf, excessive amounts of nutrients can also negatively afffect local Iowa streams. Nutrient reduction by wastewater dischargers will protect and improve water quality in those streams, especially during low stream flow periods when point sources have the greatest impact. The Iowa strategy follows the recommended framework provided by the U.S. EPA in 2011. The DNR is working with wastewater facilities statewide with a goal of reducing the amounts discharged by point sources by at least 11,000 tons of nitrogen and 2,170 tons of phosphorus per year. This represents a reduction in the estimated statewide amounts of nutrients discharged to Iowa waters from point and nonpoint sources by 4% for nitrogen and 16% reduction in phosphorus. What facilities are affected? •All major municipal wastewater facilities, major industrial facilities and minor industrial facilities that utilize biological treatment. •Minor municipal wastewater facilities (less than 1 million million gallons per day) are required to evaluate nutrient reduction prior to constructing new or expanded facilities. •Minor industrial facilities that do not utilize biological treatment are required to evaluate nutrient reduction if proposing to discharge higher amounts of nutrients. WHAT REDUCTIONS WILL FACILITIES BE EXPECTED TO ACHIEVE? •Total nitrogen effluent concentrations of 10 mg/L or 66% removal hoW Will NUTRIENTS BE REDUCED? • Once a facility can be expected to achieve the nutrient removal goals, technology-based nutrient limits will be established in thier permit. • WHEN WILL THIS BE IMPLEMENTED? •When a facility’s NPDES permit is renewed, the permit will require a 2 year study to document current nutrient discharge levels, establish baselines and evaluate the feasibility and reasonableness of installing nutrient removal. •The study must also include a schedule for construction and implementation of new technology. Once the schedule is approved by the DNR, it will become a requirement of the facility's permit. •Schedules for implementation of practices or completing construction will vary from months to many years depending on the extent of needed changes and financial considerations. hoW AND WHEN ARE LIMITS SET? •Annual progress reports can be accessed at: http://www.nutrientstrategy.iastate.edu/documents General questions Adam Schnieders, DNR: 515-725-8403 or adam.schnieders@dnr.iowa.gov municipal questions Ben Hucka, DNR: 515-725-8406 or ben.hucka@dnr.iowa.gov industrial questions Wendy Hieb, DNR: 515-725-8405 or wendy.hieb@dnr.iowa.gov www.iowadnr.gov www.nutrientstrategy.iastate.edu •Total phosphorus effluent concentrations of 1 mg/L or 75% removal Biological nutrient removal is the most common means for reducing nutrients but the Strategy does not dictate what process or combination of processes are utilized. Chemical phosphorus removal, operational changes and changes to industrial processes are other alternatives likely to be considered.WHAT PROGRESS HAS BEEN MADE? • Limits will be based on 12 months of demonstrated plant performance and will be established after 6 months of plant optimization. Nitrogen and phosphorus limits will be expressed as annual averages rather than monthly averages and daily maximums. •