NC Department of Environment and Natural Resources
Water Quality - Nutrient Offset Payments
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Offset Payment Process(link to a diagram of the non-governmental payment process) In nutrient strategy watersheds, before a developer can receive final site-plan approval from a local government, the annual exported load (i.e. pounds) of nitrogen and, where applicable, phosphorus, is calculated by the developer and verified with the local government. If the loading exceeds levels allowed by rule or law, then the excess loading must be offset by the developer. Developers can offset the required nutrient loads themselves (either onsite or offsite) or seek a third-party mitigation provider such as the NC Ecosystem Enhancement Program (EEP) or a nutrient bank to meet nutrient loading requirements. If the third party provider option is pursued by the developer, then the local government confirms with the developer the amount of offset required for the project and watershed in which it is located. The developer, in turn, seeks a third-party provider of nutrient offset credits. For developers seeking to use a third party provider, one must be selected in accordance with rule 15A NCAC 0.2B .0240 and Session Laws 2009-337 and 2011-343. These statutes direct all non-government entities to first seek nutrient offsets through an approved private nutrient bank within the watershed or service area where the loading is taking place. As defined in SL 2011-343, non-governmental entities include all local governments except Raleigh, Greensboro, and Charlotte. In areas without available credit from approved private banks and for state and federal governmental entities, seekers of nutrient offsets are eligible to participate in EEP’s Nutrient Offset Program. Information on the availability of private banks can be found at DWQ’s Surface Water Protection Web site. Once payment is made to the approved third-party nutrient offset provider, a receipt is issued documenting the amount of offset credit purchased. In turn, that receipt is provided to the local government to demonstrate the developer's compliance with nutrient requirements for the development site. The developer may then begin work on the project (provided he/she has met all other regulatory requirements). In some instances, a developer seeking nutrient offset credits may not find a willing third-party provider of those credits. If that occurs, the developer remains obligated to meet the loading requirements for the project either through increased on site measures or through their own approved off-site nutrient reduction measures. Payment Process Links
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