SENATE PROPOSAL OF AMENDMENT 2004 H.785 Page 1 H.785 AN ACT RELATING TO STORMWATER DISCHARGE The Senate proposes to the House to amend the bill as follows: First: In Sec. 2, in 10 V.S.A. § 1264a by striking out subsections (d) and (e) in their entirety and inserting in lieu thereof new subsections (d) and (e) to read as follows: (d)(1) A stormwater impact fee due under subsection (c) of this section shall be $30,000.00 per acre of impervious surface. An individual discharger can reduce the stormwater impact fee through compliance with the engineering feasibility analysis under the agency procedure provided for in subsection (g) of this section. After an individual discharger of regulated stormwater completes the relevant impact fee and offset charge analysis under the agency procedure provided for in subsection (g) of this section, the discharger shall submit to the secretary of natural resources a proposed stormwater impact fee, a proposed offset charge, and documentation of the calculation of the fee and the offset charge. The secretary shall approve or disapprove of the proposed stormwater impact fee and offset charge. (2) If the secretary of natural resources approves of a proposed stormwater impact fee and offset charge under subdivision (1) of this subsection, the secretary shall notify the applicant and shall: www.leg.state.vt.us SENATE PROPOSAL OF AMENDMENT 2004 H.785 Page 2 (A) Certify the offset charge that will mitigate the uncontrolled sediment load or hydrologic impact of the proposed discharge; (B) Assign the offset charge to an offset permitted under subsection (e) of this section possessing sufficient offset charge capacity to accommodate the offset charge. Offset charges for discharges allowed under subdivision (b)(1)(A) of this section shall be assigned only to an offset for which a permit has been issued pursuant to subsection (e) of this section and that will be completed prior to initiation of the discharge; and (C) Certify the stormwater impact fee and require, as a condition of a discharge permit, payment in full of said fee to the stormwater-impaired waters restoration fund upon issuance of a local zoning or building permit authorizing construction of the discharge. (3) No construction or discharge shall be initiated under a discharge permit until the offset charge for a proposed discharge has been assigned to an offset project under subdivision (2) of this subsection. (4) If a watershed lacks an offset with sufficient capacity to accommodate a proposed offset charge, the secretary shall assign an offset charge when offset capacity becomes available and in the order of the secretary’s determination that the discharge permit application is technically complete. www.leg.state.vt.us SENATE PROPOSAL OF AMENDMENT 2004 H.785 Page 3 (e)(1) The secretary of natural resources may issue a permit for an offset project under this section. Application shall be made on a form prescribed by the secretary of natural resources. An applicant shall pay an application fee in accordance with section 2822 of Title 3. The secretary may issue such permits for the following activities or projects: (A) Stormwater treatment of any discharge of regulated stormwater runoff initiated prior to 1978; (B) Stormwater treatment of any discharge of regulated stormwater runoff initiated after 1978 when the secretary did not previously issue or require a stormwater discharge permit or temporary pollution permit for the discharge; (C) Conversion of land use to reduce sediment load or hydrologic impact, especially in riparian areas; (D) Restoration of an eroding or unstable stream bank where supported by a geomorphic assessment; (E) Replacement of existing undersized or deteriorated culverts that have an impact on stream channel stability; or (F) Other stream restoration or stormwater treatment projects that the secretary deems necessary or appropriate to reduce sediment load or reduce hydrologic impact in a stormwater-impaired water. www.leg.state.vt.us SENATE PROPOSAL OF AMENDMENT 2004 H.785 Page 4 (2)(A) The secretary shall provide notice of each application for an individual offset permit to the public and any appropriate officials of another state and the federal government, including the administrator of the United States Environmental Protection Agency, and shall provide an opportunity for written comments or a public hearing, or both, on the application before making a final ruling on the application. (B) Prior to issuing an offset general permit, the secretary shall give notice as provided in this subsection and provide for written comments or a public hearing, or both, as provided in this subsection. When applying for coverage under an offset general permit, the applicant shall provide notice on a form provided by the secretary to the municipal clerk of the municipality in which the offset is located at the time the application is filed with the secretary, and the secretary shall provide an opportunity for written comment regarding whether the application complies with the terms and conditions of the offset general permit for ten days following receipt of the application. (C) The secretary may require any applicant to submit any additional information which the secretary considers necessary and may refuse to grant an offset permit until the information is furnished and evaluated. (3) If the secretary determines that a proposed offset will not violate any applicable provisions of state or federal law or regulation, the secretary shall issue an offset permit containing terms and conditions as may be necessary to www.leg.state.vt.us SENATE PROPOSAL OF AMENDMENT 2004 H.785 Page 5 carry out the purposes of this chapter and of applicable law. Those terms and conditions may include but shall not be limited to providing for specific best management practices, effluent limitations, and levels of treatment technology; monitoring, recording, and reporting standards; entry and inspection authority for state and, as determined by the secretary, federal officials; and reporting of substantial changes in the character or nature of permitted activities on waters of the state. (4) An offset permit issued pursuant to this subsection: (A) Shall include the requirement that any discharge that an offset is mitigating be located in the same watershed of the stormwater-impaired water in which the offset is located; (B) Shall be allocated an offset charge capacity; (C) Shall identify the party or parties responsible for performance of the offset; (D) Shall, for an offset that will be completed after initiation of the discharge, include a schedule of construction reasonably designed to ensure completion of the offset within two years of issuance; (E) Shall be completed after April 1, 2004; (F) May include a requirement to provide financial security in the form of an authorized surety bond, cash deposit or cash equivalent, or an www.leg.state.vt.us SENATE PROPOSAL OF AMENDMENT 2004 H.785 Page 6 irrevocable letter of credit issued by a qualified financial institution to ensure adequate construction and maintenance of the offset; and (G) Shall include a plan for the operation and maintenance of the offset. (5) The secretary shall establish and maintain an accounting system or ledger documenting all amounts of sediment load or hydrologic impact mitigated by offset projects and all discharges which make use of those offsets in order to attain the discharge standards. (6) The secretary shall not assign an offset charge to an offset that will be completed after initiation of the discharge unless the associated offset permit is issued in accordance with the requirements of subsection 1258(b) of this title. (7) An offset permit may be issued in conjunction with a discharge permit when the applicant for a discharge permit seeks to construct an offset that will exceed the sediment load or hydrologic impact that the discharger must mitigate to meet the discharge standard for the proposed discharge. The offset charge capacity allocated to an offset permit shall not include the sediment load or hydrologic impact that a discharge permittee is required to mitigate in order to meet the discharge standard for a permit issued under subdivision (b)(1) of this section. www.leg.state.vt.us SENATE PROPOSAL OF AMENDMENT 2004 H.785 Page 7 Second: In Sec. 8, by striking out subsection (b), and inserting in lieu thereof the following: (b) The secretary of administration shall transfer $200,000.00 of the general funds set aside in Sec. 7 of No. 7 of the Acts of 2003 to the agency of natural resources for the completion and implementation of the total maximum daily loads (TMDLs) and water quality remediation plans required by subdivision 1264(f)(3) of Title 10 for the stormwater-impaired waters of the state. Third: In Sec. 8, subsection (c), by striking out “$225,000.00” and inserting in lieu thereof $200,700.00 Fourth: In Sec. 8, by striking out subsection (d) in its entirety and inserting in lieu thereof the following: (d) The sum of $120,000.00 from the funds appropriated to the agency of natural resources under Sec. 10(a) of H.767 of 2004 (Natural Resources) shall be transferred to the state treasurer for deposit in the local community implementation fund for the administrative and management needs of municipalities in developing total maximum daily load plans and water quality remediation plans for stormwater-impaired waters of the state. Fifth: In Sec. 9, by striking out “1264a(e)(5)(E)” and inserting in lieu thereof 1264a(e)(4)(E) www.leg.state.vt.us