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Welcome to the Webinar. On the Draft EEP Instrument Hosted by EEP, USACE and EPA December 16, 2009. Background. Federal Mitigation Rule issued in April 2008 ILF Programs required to be compliant in June 2010 IRT and EEP have been working on development of new EEP instrument for over a year

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welcome to the webinar

Welcome to the Webinar

On the Draft EEP Instrument

Hosted by EEP, USACE and EPA

December 16, 2009

background
Background
  • Federal Mitigation Rule issued in April 2008
  • ILF Programs required to be compliant in June 2010
  • IRT and EEP have been working on development of new EEP instrument for over a year
  • Hosted Liaison Council meeting in July 2009 to update interested parties on status of EEP compliance
purpose of webinar
Purpose of Webinar
  • To review the draft instrument in advance of the formal notice and public comment period
  • To provide an opportunity for interested parties to ask questions
  • To allow for feedback in advance of the formal public comment process
introductions
Introductions
  • Webinar Hosts
    • EEP staff: Suzanne Klimek, Jim Stanfill, Nancy Daly and Eric Ellis
      • with support from Tad Boggs, David Robinson and Kelly Williams
    • USACE – Todd Tugwell, Scott McLendon and Justin McCorcle
    • EPA – Kathy Matthews
  • Webinar Participants
    • 109 individual registrations
    • 7 states and the District of Columbia represented
    • Variety of groups represented
      • Private companies – environmental consulting firms, mitigation banking companies, construction contractors
      • State agencies – NCDOT, NCWRC
      • Federal agencies – USACE, EPA
      • Non-profit environmental organizations – TNC, ELI
meeting protocols
Meeting Protocols
  • Focus on the topic
  • Submit questions using the “chat” feature
    • We will answer as many as we can
    • We may take short breaks to capture and pass questions to the appropriate people
    • We will follow-up with an email to participants that summarizes all questions and answers - including those we don’t get to today
    • Technical questions can be submitted using chat - let us know if you are having any problems with the meeting technology
    • Full screen toggle
slide6
Please take this time to submit any questionson how the Webinar will work or on any of the information offered thus far
review of draft intro and general provisions
Review of Draft - Intro and General Provisions
  • Instrument replaces two existing agreements
    • NCDOT-DENR-USACE (Tri-Party)
    • DENR-USACE (Two-party governing traditional ILF operations)
  • Purpose - fashioned after language from existing agreements
  • Two triggers for liability transfer
    • Traditional ILF - upon payment from customers
    • NCDOT - upon permit issuance
  • Role of Interagency Review Team
  • Authorities
review of draft funding provisions
Review of Draft - Funding Provisions
  • Describes two major sources of funding for EEP mitigation
    • Traditional ILF - payments from customers
    • NCDOT - references agreement between NCDOT and DENR regarding business operations
  • Includes language consistent with rule regarding how funds can be used
review of draft operational provisions
Review of Draft - Operational Provisions
  • Geographic Service Area
    • 8-digit CU
    • Exceptions allowed with IRT approval (like Catawba 03)
  • Compensation Planning Framework
    • Captures existing watershed planning processes
    • EEP will continue to target watersheds within 8-digit CUs and develop LWPs
review of draft operational provisions11
Review of Draft - Operational Provisions
  • CPF continued
    • Describes how existing processes address elements prescribed in the mitigation rule
    • Includes a decision tree for LWP development
      • Rely on existing plans when available (including those developed by others if they meet EEP criteria)
      • Invest in a new LWP when:
        • Substantial mitigation needs are predicted
        • The timing of mitigation needs allows for the development of a detailed watershed plan
slide12
Please take this time to submit any questions on Geographic Service Area or Compensation Planning Framework
review of draft operational provisions13
Review of Draft - Operational Provisions
  • Permit Decisions
    • USACE
      • Describes existing procedures
      • Describes what will be included in conditions
    • NCDENR
      • Recognizes DWQ and DCM permitting authorities
review of draft operational provisions14
Review of Draft - Operational Provisions
  • Advance Credits
    • Allocated allowance to accept new mitigation requirements
    • Tracked and reported for total program by river basin and broad mitigation type
    • Instrument includes initial allocation that can be updated by the IRT over time
    • Numbers derived based on anticipated NCDOT mitigation needs and historical ILF data
review of draft operational provisions15
Review of Draft - Operational Provisions
  • Advance Credits Calculation
  • Based on EEP projected mitigation needs for next 5 years
    • Calculated by River Basin
      • NCDOT:
        • 5 Year NCDOT Forecast of Mitigation Need
      • MOU ILF:
        • Calculated Annual Average of Payments over 7 years * 5 Years
    • Calculations rounded up to nearest 5000 or 5 acre wetland
    • Minimum 4,000 stream & 5 wetland credits per year per basin
review of draft operational provisions16
Review of Draft - Operational Provisions
  • Advance Credits
    • Cape Fear Example Calculation for Stream Mitigation

NCDOT 5 Yr Forecast 101,062

MOU ILF Avg * 5 yrs 64,835

Subtotal 165,897

Rounded to nearest 5000

Grand Total Cape Fear Basin 170,000

slide17
Review of Draft – Operational Provisions

Cape Fear - Advanced Credits, Total Project Credits, & Released Credits

Advanced Available

Advanced Credits Applied Annually

Total Project Credits

Total Released Credits

250,000

238,000

Total Project Credits

200,000

Advanced Available

170,000

150,000

Credits

100,000

Total Released Credits

66,300

50,000

Advanced Credits Applied Annually

0

Year 0

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

-50,000

Time

review of draft operational provisions19
Review of Draft - Operational Provisions
  • Small Impacts
    • Provides mechanism for request to IRT in situations where cumulative requirements in a service area < 1,000 linear feet of stream or < 3 acres of wetlands
  • Project Delivery
    • Mitigation Sites
      • Provides for project implementation, mitigation plan development, annual monitoring reports, preservation project descriptions
      • Requires maintenance of existing Web site for sharing project information
review of draft operational provisions20
Review of Draft - Operational Provisions
  • Project Delivery continued
    • Review of New Projects
      • Cites rule requirements
      • Allows the expenditure of some funds prior to formal approval
      • Relies on permit process for formal approval
    • Timing of Project Delivery
      • Maintains advancement level currently in place for NCDOT mitigation
      • Incorporates requirement from mitigation rule regarding minimum time to construction
review of draft operational provisions21
Review of Draft - Operational Provisions
  • Project Delivery continued
    • Perpetual Protection/Real Estate Provisions
      • Standard protocols for long-term disposition of mitigation properties
    • Financial Assurance Procedures
      • DENR to provide letter that will be an appendix to document
      • Consistent with 33 CFR Part 332.3(n)
review of draft operational provisions22
Review of Draft - Operational Provisions
  • Project Delivery continued
    • Project Establishment and Operation
      • Credit generation
        • Relies on district guidance
        • Requires specification in mitigation plan
      • Credit release schedules
        • Specified in mitigation plan
        • Will mirror what is prescribed for banks
      • Credit release approval
        • Initial allocation triggered by construction and permit authorization
review of draft operational provisions23
Review of Draft - Operational Provisions
  • Project Delivery continued
    • Project Establishment and Operation continued
      • Mitigation Types
        • Streams - cool, cold, warm
        • Wetlands - Riparian Riverine, Riparian Nonriverine, Nonriparian, Coastal
      • Monitoring
      • Project Closure
      • Maintenance
      • Contingency

Consistent with Standard Protocols

review of draft operational provisions25
Review of Draft - Operational Provisions
  • Program Reporting Protocols
    • Annual Report
      • Financial
      • Permit related
      • Advance and released credits
    • Debit ledger
      • Relates mitigation sites to permit requirements
      • Compliance status report
    • Case-by-case requests
review of draft operational provisions26
Review of Draft - Operational Provisions
  • Program Review
    • By DE and IRT
    • Expectation that recommended course corrections will be made
  • Default and Closure
  • Grandfathering
  • Miscellaneous
review of draft
Review of Draft
  • Appendices
    • Compensation Planning Framework
    • 12 Elements of Mitigation Plans
    • Financial Assurances Letter of Commitment
slide29
Conclusion of Presentation on Instrument Components

Please take this time to submit any additional questions on anything covered thus far

next steps
Next Steps
  • Comments received from Webinar participants - through December 23, 2009 - submit to [email protected]
  • Questions and answers compiled and distributed to participants by January 15, 2010
  • USACE continues to solicit comments from IRT on draft instrument - through January 2010
  • Public notice and comment – ~ January 2010
  • Instrument finalized and submitted to USACE - late February 2010
  • Instrument revised and executed - April 2010
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