                                 CODE OF VIRGINIA

NUTRIENT ALLOCATION COMPLIANCE AND REPORTING (§ 62.1-44.19:18)

A. Each permitted facility shall be in compliance with its individual waste load
allocations if: (i) its annual mass load is less than the applicable waste load
allocation assigned to the facility in the general permit; (ii) the permitted
facility acquires sufficient point source nitrogen or phosphorus credits in
accordance with subdivision 1; or (iii) in the event it is unable to meet the
individual waste load allocation pursuant to clauses (i) or (ii), the permitted
facility acquires sufficient nitrogen or phosphorus credits through payments
made in accordance with subdivision 2, provided, however, that the acquisition
of nitrogen or phosphorus credits pursuant to this section shall not alter or
otherwise affect the individual waste load allocations for each permitted
facility.

   1. A permittee may acquire point source nitrogen or phosphorus credits from
   one or more permitted facilities only if (i) the credits are generated and
   applied to a compliance obligation in the same calendar year, (ii) the credits
   are generated by one or more permitted facilities in the same tributary,
   except that permitted facilities in the Eastern Coastal Basin may also acquire
   credits from permitted facilities in the Potomac and Rappahannock tributaries,
   (iii) the credits are acquired no later than June 1 immediately following the
   calendar year in which the credits are applied, and (iv) no later than June 1
   immediately following the calendar year in which the credits are applied, the
   permittee certifies on a form supplied by the Department that he has acquired
   sufficient credits to satisfy his compliance obligations.

   2. A permittee may acquire nitrogen or phosphorus credits through payments
   made into the Nutrient Offset Fund established in &#xA7; 10.1-2128.2 only if,
   no later than June 1 immediately following the calendar year in which the
   credits are applied, the permittee certifies on a form supplied by the
   Department that he has diligently sought, but has been unable to acquire,
   sufficient credits to satisfy his compliance obligations through the
   acquisition of point source nitrogen or phosphorus credits with other
   permitted facilities in the same tributary, and that he has acquired
   sufficient credits to satisfy his compliance obligations through one or more
   payments made in accordance with the terms of the general permit.

B. Until such time as the Director finds that no credits are reasonably
available in an individual tributary, the general permit shall provide for the
acquisition of nitrogen and phosphorus credits through payments into the
Nutrient Offset Fund in accordance with subdivision A 2. Such payments shall be
promptly applied to achieve equivalent point or nonpoint source reductions in
the same tributary beyond those reductions already required by or funded under
federal or state law, or the Virginia Chesapeake Bay TMDL Watershed
Implementation Plan. The general permit shall base the cost of each nitrogen or
phosphorus credit on the average cost of reducing one pound of nitrogen or
phosphorus from Virginia publicly owned wastewater treatment facilities for each
credit acquired. Upon each reissuance of the general permit, the Board may
adjust the cost of each nitrogen and phosphorus credit based on (i) the current
average cost of reducing a pound of nitrogen or phosphorus from Virginia
publicly owned wastewater treatment facilities for each credit acquired and (ii)
any additional incentives reasonably necessary to ensure that there is timely
and continuing progress toward attaining and maintaining each tributary&#8217;s
combined waste load allocation.

C. On or before February 1, annually, each permittee shall file a discharge
monitoring report with the Department identifying the annual mass load of total
nitrogen and the annual mass load of total phosphorus discharged by each
permitted facility during the previous calendar year. The report shall contain
the certification required by federal and state law and be signed by each
permittee for each of the permittee&#8217;s facilities covered by the general
permit.

D. On or before April 1, annually, the Department shall prepare a report
containing the annual mass load of total nitrogen and annual mass load of total
phosphorus discharged by each permitted facility, the number of point source
nitrogen and phosphorus credits for the previous calendar year generated or
required by each such facility, and to the extent there are insufficient point
source credits available for exchange to provide for full compliance by every
permittee, the number of credits to be purchased pursuant to this section. Upon
completion of the report, the Department shall promptly publish notice of the
report and make the report available to any person requesting it.

E. On or before July 1, annually, the Department shall publish notice of all
nitrogen and phosphorus credit exchanges and purchases for the previous calendar
year and make all documents relating to the exchanges and purchases available to
any person requesting them.

HISTORY: 2005, cc. 708, 710; 2010, c. 11; 2011, c. 524; 2012, cc. 748, 808.