Definitions, General Requirements, Waters and Pollutants Subject to Trading, Use of Credits and Credit Tracking, Program Evaluation
DEPARTMENT OF ENVIRONMENTAL PROTECTION
Rule No.: RULE TITLE
62-306.200: Definitions
62-306.300: General Requirements
62-306.400: Waters and Pollutants Subject to Trading
62-306.600: Use of Credits and Credit Tracking
62-306.800: Program EvaluationNOTICE OF CHANGE
Notice is hereby given that the following changes have been made to the proposed rule in accordance with subparagraph 120.54(3)(d)1., F.S., published in Vol. 36, No. 14, April 9, 2010 issue of the Florida Administrative Weekly.
In addition, notice is given that the Notice of Correction published in Vol. 36, No. 17, April 30, 2010 issue of the Florida Administrative Weekly incorrectly included two rules in the index that do not exist in Chapter 62-306, F.A.C. The Notice stated that technical corrections were being made to Rules 62-306.310 and 62-306.320, F.A.C.; however, those Rules were included in error. The only rules that exist within Chapter 62-306, F.A.C., are correctly listed above.
62-306.200 Definitions.
(1) through (7) No change.
(8) “Location Factors” (LFs) means the WBID-specific numbers, as listed in the LSJR BMAP Tables 22 and 23, that are used to ensure that trades do not result in localized impacts on the river. Location Factors representing the relative impact a given unit of nitrogen or phosphorus discharged at a WBID has on water quality in the worst case WBID compared to the same amount of nitrogen or phosphorus discharged directly to the worst case WBID. LFs are used in trades to provide reasonable assurance that the seller’s credits are functionally equivalent in protecting the water quality of the water body or water segment.
(9) through (17) No change.
(18) “Technology-Based Effluent Limitation” (TBEL) means a minimum waste treatment requirement established by the Department based on treatment technolgy.
(19)(18) “Uncertainty Factor” (UF) means the ratio of the estimated number of pounds or kilograms of reduction by a nonpoint source to the number of pounds or kilograms of credit that will be authorized. The UF reflects the uncertainty associated with estimates of nonpoint source pollutant reductions.
(20)(19) “Water Quality Credit Trading” means the exchange of credits between point and nonpoint sources in the LSJR Basin to achieve or maintain the TMDL.
(21)(20) “WBID” means the unique waterbody identification number that was used to divide the Lower St. Johns River Basin into water assessment polygons, as shown in LSJR BMAP Figure 1.
(22)(21) “Worst case WBIDs” means the WBIDs in the marine and freshwater portions of the river where adverse impacts due to nutrient loadings were greatest, and which controlled the maximum allowable nutrient loading to the LSJR.
Rulemaking Authority 403.067(9) FS. Law Implemented 403.067(8)-(10) FS. History–New ________.
62-306.300 General Requirements.
(1) The generation and trading of water quality credits must be consistent with federal law and regulation.
(1)(2) To be eligible to generate and trade credits between point and nonpoint sources, the following must be met:
(a) No change.
(b) Credits generated by a nonpoint source can either be measured where treatment methods allow influent and effluent water quality to be measured, or can be estimated for the type of operation. However, if credits are estimated, the applicant must provide reasonable assurance, using peer reviewed literature-based estimates of removal efficiency, that the estimate is scientifically defensible, and any applicable uncertainty factor shall be applied.
(c) At least one of the trading parties must have an individual wastewater or stormwater permit. The activities necessary to generate credits must be authorized under the appropriate point source stormwater or wastewater NPDES permit. The permit application shall describe how the activities necessary to achieve provide the Department with reasonable assurance that the load reductions required to generate the credits will be implemented and monitored.
(d) through (f) No change.
(2)(3) No facility or activity may generate or use water quality credits until such time as all required permits have been obtained. Facilities that meet their TMDL obligations via trading must demonstrate provide reasonable assurance that their discharge, including any trades, will not cause or contribute to violations of water quality standards. Credits generated under this part shall not be used to offset violations of a discharge permit or to comply with any applicable technology-based effluent limits (TBELs).
(3)(4) No change.
(4)(5) No change.
Rulemaking Authority 403.067(9) FS. Law Implemented 403.067(8)-(10) FS. History–New ________.
62-306.400 Eligibility for Generation of Credits.
(1) No change.
(2) Activities that are eligible to generate credits include:
(a) through (d) No change.
(e) Other similar pollution controls or management practices with a demonstrated ability to reduce the load of nutrients discharged approved by the Department.
(3) No change.
Rulemaking Authority 403.067(9) FS. Law Implemented 403.067(8)-(10) FS. History–New ________.
62-306.600 Use of Credits and Credit Adjustments.
(1) Wastewater Facilities.
(a) The use of credits must be authorized in the buyer’s permit. At the time of permit application, the buyer must submit an affidavit, signed by the buyer and seller, disclosing the term of the trade, the number of credits traded, the date when the credits will be generated, the unit price, and the amount of any state funding used to generate the credits traded. The affidavit used by the Department for Water Quality Credit Trading, Form 62-306, “Water Quality Credit Trading Affidavit” [Effective Date], is hereby adopted and incorporated. Copies of the form may be obtained from the Department’s internet site at http://www.dep.state.fl.us/water/tmdl, the Northeast District Office, or by writing to the Florida Department of Environmental Protection, Bureau of Assessment and Restoration Support, 2600 Blair Stone Road (MS3560), Tallahassee, FL 32399.
(b) The Fact Sheet or Statement of Basis for the buyer’s permit shall note that the permit authorizes a trade and identify the source of the credits purchased.
(c) If the buyer subsequently decides to change the source of credits during the permit cycle, the buyer must submit a new Water Quality Credit Trading Aaffidavit pursuant to paragraph (1)(a) and apply for a permit revision. The Department will evaluate the permit revision and determine whether there is reasonable assurance that the seller has credits available in accordance with Rules 62-306.300, 62-306.400, and 62-306.500, F.A.C.
(2) Municipal Separate Storm Sewer Systems (MS4s) and Nonpoint Sources.
(a) The buyer must submit an Water Quality Credit Trading Aaffidavit, signed by the buyer and seller, disclosing the term of the trade, the number of credits traded, the date when the credits will be generated, the unit price, and the amount of any state funding used to generate the credits traded. The Department will determine whether there is reasonable assurance that the seller has credits available. The Department shall notify the buyer within thirty days if the buyer has not provided reasonable assurance that the seller has credits available.
(b) If the buyer subsequently decides to change the source of credits, the buyer must submit a new Water Quality Credit Trading Aaffidavit pursuant to paragraph (2)(a) so that the Department can evaluate whether the buyer has provided reasonable assurance that the seller has credits available. The Department shall notify the NPS within thirty days if the NPS has not provided reasonable assurance that the seller has credits available.
(3) through (5) No change.
Rulemaking Authority 403.067(9) FS. Law Implemented 403.067(8)-(10) FS. History–New ________.
62-306.800 Compliance with Trade Provisions.
(1) If the credits traded are measured credits, the permittee shall report to the Department the quantity of the Total Nitrogen or Total Phosphorus discharged on a monthly basis on Discharge Monitoring Report (DMR) form, incorporated in subsection 62-620.910(10), F.A.C., to demonstrate compliance with the effluent limitations, and monitoring and reporting requirements specified in their NPDES permit. Permittees may use the precoded Discharge Monitoring Report form provided by the permitting office to the permit holder at the time of permit issuance to report the amount of Total Nitrogen or Total Phosphorus discharged DMR forms and instructions may be obtained from the Department’s internet website at http://www.dep.state.fl.us/water/wastewater/forms.htm or at the Department District Offices.
(2) No change.
(3) Liability.
(a) No change.
(b) Buyers of water quality credits are responsible for complying with all terms of their permit. In the event that credits purchased are determined to be invalid, but the buyer otherwise meets its applicable permit limit, the invalidation of credits shall not be a violation of the buyer’s permit. In such cases, the Department shall re-open the permit and issue an Administrative Order requiring the buyer, within a reasonable amount of time, to obtain credits from another source, increase treatment, or otherwise reduce the discharged load to meet its baseline load the invalidation of credits shall be addressed pursuant to paragraph 403.067(8)(g), F.S.
Rulemaking Authority 403.067(9) FS. Law Implemented 403.067(8)-(10) FS. History–New _______.
