1. Water Bureau Antidegradation Review of Bustorf Dairy NPDES Permit Application Michigan Department of Environmental Quality 2009

2. Applicant Information NPDES Application received September 2008. This application followed a previous application that was denied, based on the applicant not meeting the requirements of Rule 323.1098, Antidegradation. New Concentrated Animal Feeding Operation Dairy farm – 2,260 head dairy cattle Manure storage facilities designed to contain 100 year 24 hour storm Site Location: –Leonidas Township, St. Joseph County –St. Joseph River Watershed –Lake Michigan Basin

3. NE Corner - Leonidas Township St. Joseph County Bustorf Dairy – CAFO St. Joseph River Watershed Facility Location

4. Applicable State Requirements Michigan Water Quality Standards Rule 323.1098 Subrule (4) requires… the applicant demonstrate that the discharge is exempt or provide a demonstration identifying the social or economic development and benefits that will be foregone to the area in which the waters are located if the lowering in water quality is not allowed.

5. Antidegradation Demonstration Summary of assertions made in the applicant’s Antidegradation Demonstration to show important social and/or economic benefits 1.Creation of 26 on-farm jobs, resulting in$770,880 total wages per year, plus bonuses and benefits. 2.Creation or support of 85-115 indirect jobs, veterinarians, trucking, cattle haulers, custom crop harvesters, animal service technicians, sales and supply, farm consultants, and fuel suppliers. 3.Local silage purchase of approximately $2,250,000 per year. 4.Miscellaneous other items such as annual milk sales of $11,000,000, fertilizer cost savings due to manure utilization, and property taxes of $150,000 per year.

6. Public Participation Key Dates September 19, 2008 Public Notice of application, antidegradation demonstration, draft permit, and public hearing October 20, 2008 Public Hearing held

7. Public Comments Numerous written and verbal comments received during the public comment period, both in support and opposition to the permit Strong support for the proposed dairy was voiced by the local and state agricultural community Less rigorous comments were provided by the local unit of government (Leonidas Township), primarily questions on application clarifications

8. Response to Public Comments The NPDES permit was revised to add additional requirements that will provide for greater environmental protection. These revisions include: –Increased waste storage design, DEQ approval, and verification of the design. Failure to verify proper design will result in herd size reduction. –Increased operational requirement for the storage structure. Failure to maintain a proper margin of safety in the storage structure will result in herd size reduction. –Increased oversight of land application fields including a requirement to prohibit the use of fields where illegal discharges occur.

9. Conclusion The DEQ determined the applicant successfully showed there will be important social and economic development in the area as the result of the new dairy. The NPDES permit was issued March 10, 2009.

10. Closing Comment What is different this time that resulted in issuance of an NPDES permit for Bustorf Dairy? This decision on the application follows a denial of a previous application. That denial based on rebuttals provided by Leonidas Township, local residents, and other organizations to the statements contained in the Antidegradation demonstration, which failed to show how the potential lowering in water quality was necessary to support important social and economic development in the area. The new application included a much-improved Antidegradation demonstration with extensive supporting documentation which withstood rebuttals and successfully showed there would be important social and economic development in the area as a result of the new dairy. The Antidegradtion Demonstration submitted with the first application was typical of many demonstrations. It was brief and included very limited supporting documentation. The second application was lengthy, detailed, and included supporting documentation. The second application also included increased waste storage capacity.