12SW-A Modification Public Hearing Overview (7/24/18) General - - PowerPoint PPT Presentation

Maryland Department of the Environment

12SW-A Modification

Public Hearing Overview (7/24/18) General Permit for Discharges of Stormwater Associated with Industrial Activity (12-SW-A / MDR00)

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12SW-A Modification

Background

The modification: (1) authorizes trading as an option for meeting restoration requirements; (2) extends opportunity for generating marketable credits to those facilities who

• therwise have no restoration requirements;

(3) includes specific reporting requirements when trading is occurring; and (4) extends deadline for restoration requirements to December 31, 2020.

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12SW-A Modification

Trading as an Option

Multiple Stakeholders were involved in development of a trading program. To support trading, trading regulations have promulgated (COMAR 26.08.11). Effective Date: July 16, 2018

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12SW-A Modification

What is trading?

Water Quality Trading is a form

• f exchange (buying & selling) of nitrogen,

phosphorus or sediment reduction credits. These credits have a monetary value that may be paid to the seller for reducing point source (wastewater & industrial process water) or nonpoint source (stormwater, septic agriculture) pollution to the bay, after meeting appropriate permitted load reduction or restoration requirements.

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12SW-A Modification

Why would I want to buy credits?

If you are not able to complete your restoration activity on-site, you can fulfill the restoration requirement through a trade with either

• another facility,
• with a WWTP that has credits for sale,
• with the agricultural sector, or
• through some combination of the above

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12SW-A Modification

Where do I find trading partners?

The tool used for trading is found at this website: mdnutrienttrading.com

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12SW-A Modification

How much are credits?

The market will determine the price. The providers will base their price on demand and on costs to create the credit. The buyers will chose the most cost effective approach. These competing forces will determine the price.

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12SW-A Modification

Generating Marketable Credits

Eligible to trade 1) if you have installed more than the required 20% restoration (for those subject to the 12SW restoration requirements), or 2) if you are a non-restoration facility and have installed any restoration.

The resulting nutrient and sediment reductions may be traded to other permittees who have restoration requirements, or to industrial or WWTP plants who require reductions. Creates an incentive to perform Restoration.

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12SW-A Modification

Who does this impact?

• 300 facilities that are subject to restoration

requirements.

• 720 smaller facilities not subject to

restoration.

• Any of these would be able to participate in

trading, either generating or pursuing nutrient loads.

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12SW-A Modification

Reporting Requirements

• Appendix G

Contains reporting requirements if you are buying credits.

• When buying

credits, you must do so annually going forward.

• Appendix G also

Contains reporting requirements if you are selling credits.

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12SW-A Modification

Restoration Completion

• No Later than December 31, 2020.
• In order to gain additional time (beyond

12/31/2018) to complete restoration you will have to comply with additional requirements, i.e.: –Additional Reporting –Must Trade to come into Compliance with Permit.

• Those who have already completed restoration (by

12/31/2018) have no additional requirements,

• ther than to continue with any non-structural

practices and maintain structural ones.

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12SW-A Modification

Today’s Hearing

Comments on the modification can be provided today or up to 5:00 PM on Wednesday, September 19, 2018. Questions or comments on the actual trading program can be sent at any time.