MS4 and Trading Considerations LGAC September 29, 2016

Outline MS4 Permitting Water Quality Elements Local Water Quality 2/132 MS4 Permitting Water Quality Elements Local Water Quality Pollutants of Concern Effected Waters Outline

Regulates discharges from collection system and land that drains to them Technology Based Public Education Public Involvement Illicit Discharge Detection and Elimination Construction Site Stormwater control Post-Construction Stormwater management Pollution Prevention/Good Housekeeping Basic Program 1srt Generation Focus – Now in 3+ generations Compliance Rate is Low MS4 Permitting

Water Quality Elements NPDES Permits Must Also Contain WQBEL Early generation permits technology orientated Chesapeake Bay changed focus General Approach Develop Plans to Meet WLA for state approval Plan – Specified Controls and multi-term Implementation Schedule Bay Plans and Local TMDL Plans Pace of Implementation is determined by MEP Consider Financial and Technical Capability Permit Writers Determination Water Quality Elements

ComParison Bay Reductions – N, P, S 16%-40% Reduction Pace determined in WIP: 2025 Timeframe Local WLA – Pathogens, Metals, P, S (Volume issue) 80%+ Reduction Multiple permit terms to achieve Laid out in TMDL Implementation Plans General Approach taken by the states: Restore local hydrology Address local impairments you address the Bay targets ComParison

Can You Meet Your Local Allocations by Meeting the Bay Allocation? Depends Can You Meet Your Local Allocations by Meeting the Bay Allocation?

What are The Constraints? Pollutants Percent Reduction Location What are The Constraints?

Pollutant Trading ConSiderations What if the pollutants are different? Perhaps No Limitations on Trading Need to Consider whether Controls have multi-pollutant benefit What if some of the pollutants are the same? How does trading effect the restoration of local water? Multi-Pollutant Benefit Delay in Restoration Local Water Quality Implications Pollutant Trading ConSiderations

Location: Case 1 What is effect of Local Water Quality? Buyer Seller Buyer Seller Location: Case 1 What is effect of Local Water Quality?

Location: Case 2 What is effect of Water Quality? Buyer Seller Location: Case 2 What is effect of Water Quality?

Location: Case 3 What is effect of Local Water Quality? Seller Buyer Buyer Seller Location: Case 3 What is effect of Local Water Quality?

MS4 Trading Most Difficult of the Trading Scenarios Rate of controls determined by MEP What effect does trading have upon MEP What effect does trading have upon local water quality restoration How does this handle the volume issue Needs to be revisited each permit term Mechanism is Restoration Plans submitted with Application Restrictions need to included in permit Subject to EPA Review Subject to Public Comment MS4 Trading

Restoration Plans and Incorporation of Trading Comprehensive Restoration Plans Key to Implementation Explain the impairments being addressed Inter-relationship of pollutants and controls available Proposed level of Trading and BMPs to be installed Where the credits will be obtained What is impact upon local water quality and pace of restoration How will this change in future permits Permit Writer reviews MEP is met Water quality restoration as soon as possible Restoration Plans and Incorporation of Trading

MS4 Trading: Other Considerations Most progress is measured at the end of the permit term Trading allows the possibility of obtaining reduction credits throughout the permit term, addressing impairments early Trading May offer a more economical approach: MEP may require a faster rate of local water quality restoration due to potentially more economic approach. Prerequisites Acceptable Trading Regulations and/or Technical Guidance Permits constructed so as to allow trading MS4 Trading: Other Considerations