RD63 - Annual Report on the Water Quality Improvement Fund Point Source Pollution Control


Executive Summary:
[This summary was modified on 3/20/06 by adding the last paragraph.]

This is the ninth submission to the Governor and the General Assembly in response to the statutory requirement (see Appendix A) under § 10.1-2134 of the Virginia Water Quality Improvement Act of 1997 (the “Act”; Virginia Code, Chapter 21.1 of Title 10.1) for an annual report on the implementation of the Virginia Water Quality Improvement Fund (WQIF).  The DEQ Director is responsible for reporting annually on the point source component of the WQIF.  The report contains a review of program activities, which have continued implementation of the WQIF in Virginia, through calendar year 2005.  This includes an update of ongoing projects from 1997 through the grant applications processed for FY 2006 funding; an update to the Request for Proposals for Technical Assistance Grants; general information on current solicitations; and update to the Procedural Guidelines issued by the Secretary of Natural Resources.  

As specifically required by § 10.1-2134 of the Act, this report also lists the recipients and amounts of grants awarded from the WQIF and projections for the amount of continued funding required for the upcoming fiscal year under all executed grant agreements.  For any new/future project, the specific and measurable reductions in nutrient loads to state waters anticipated once each funded project is constructed and placed into operation will be provided in a subsequent report.  Highlights contained in this report are:

1. Since its inception, the WQIF has provided grants for installation of nutrient removal technology at twenty-five facilities, which will result in the estimated annual point source reduction of 13.7 million pounds of nitrogen and 240,000 pounds of phosphorus to the waters of the Commonwealth when fully implemented (compared to a 1985 baseline).
2. Of the twenty projects now operating their nutrient reduction systems, all but one has achieved the concentration-based performance requirements of their WQIF grant agreement.
3. To date, approximately $98.3 million in State cost share for point source projects has been obligated through signed grant agreements.
4. Technical Assistance (TA) grants have been drafted for 26 facilities with another potential 19 facilities to be covered by TA grants. 
5. Subsequent to the State Water Control Board adopting waste load allocations in September 2005 for the Shenandoah-Potomac, Rappahannock, and Eastern Shore basins, DEQ solicited point source grant applications in accordance with revised Guidelines issued by the Secretary of Natural Resources.  As of the December 5, 2005 deadline, 42 applications totaling almost $382 million were received by DEQ, and are under review for eligibility and cost share determinations.  An additional solicitation for the York and James River basins is underway with applications due January 27, 2006.   
6. The current estimate of the total capital cost to fully implement the point source components of the Tributary Strategy Plans is estimated to be approximately $1.2 billion, and will likely be financed through a combination of WQIF cost share grants, local funds, low interest loans from the State Revolving Fund, and other sources.

This annual report, as well as the updated status of the WQIF, is available online from DEQ via the Chesapeake Bay Program link ( http://www.deq.virginia.gov/bay/wqifdown.html) , and the General Assembly Reports link ( http://www.deq.virginia.gov/regulations/reports.html).
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[Note: Because no new point source grants were awarded for construction of nutrient reduction projects using 2004 appropriations as of the date of this report, this report does not address projections for new approved projects as required by item 388 D.2 of the Appropriations Act (Special Session 1, 2004)].