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N.C. Department of Environment and Natural Resources

NC Department of Environment and Natural Resources
Water Quality - Nutrient Offset Information

Water Quality
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Introduction

Rules provide for the use of nutrient offset payments in the Neuse and Tar-Pamlico basins along with the Falls and Jordan watersheds as an option to meet nutrient reduction requirements for new development and redevelopment. While rules vary by watershed they allow developers not meeting the nutrient requirements on their site to have the option of offsetting nutrient loading through payment to a third-party mitigation provider such as the Ecosystem Enhancement Program (EEP) or a compensatory mitigation bank to “buy down” their nutrient loads to where they meet targets for nutrient export. 

When developers choose the nutrient offset option, payments are used to transfer the responsibility for offsetting increases in nutrient load from the developer to EEP or other third party provider. These payments are then used to fund implementation of nutrient-reducing projects in the same hydrologic area as where the impact occurred. Third party nutrient offset providers, in turn, report compliance with regulatory requirements in annual reports and as requested to DWQ.   

The nutrient offset option, therefore, allows development projects not meeting on-site treatment thresholds to proceed under the assurance that associated increases in nutrient loads will be at least equally offset by nutrient reducing activities elsewhere in the watershed.  

Effective September 2010, 15A NCAC 02B .0240 addresses procedural requirements for offset payments, including:

  • Narrows geographic scope of offsets to within the same 8-digit USGS cataloguing unit or to smaller watersheds as required by the Jordan and Falls nutrient strategies, and generally encourages locating projects within 10-digit hydrologic units where loading increases are concentrated.
  • Sets out standards for offset project approval.
  • Clarifies that use of EEP in a given watershed is contingent upon EEP’s ability to accept payments there.
  • Requires payment for both nitrogen and phosphorus reductions when needed by a purchaser.  

Specific rules governing use of nutrient offset option on stormwater from new development projects can be found at the following web sites: 

Nutrient Offset Rule Links

Tar-Pamlico Basin 

Neuse River Basin 

Jordan Lake Watershed 

Falls Lake Watershed 

15A NCAC 02B .0240 Payment Procedures for Nutrient Offset 

 
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