RD322 - Virginia Water Quality Improvement Fund and the Cooperative Nonpoint Source Pollution Program - November 2010


Executive Summary:
The Virginia Water Quality Improvement Act (WQIA) was passed during the 1997 legislative session of the Virginia General Assembly and signed into law on March 20, 1997. The Act established the Water Quality Improvement Fund (WQIF) to provide funding for water quality improvements throughout the Commonwealth. The fund is the principal source of state cost-share money to implement the nutrient and sediment reduction “Tributary Strategies” prepared pursuant to the Chesapeake Bay 2000 Agreement and the Code of Virginia. The fund also provides grants for on the ground practices to control nonpoint source pollution in watersheds in Virginia that drain to waters other than the Chesapeake Bay, called the “Southern Rivers”. In 2008 the General Assembly created a sub-fund of the WQIF called the Virginia Natural Resources Commitment Fund (VNRCF, §10.1-2128.1) that is to be used for agricultural best management practices and associated technical assistance. Section 10.1-104.1 of the Code of Virginia states that DCR shall have the lead responsibility for the Commonwealth’s nonpoint source pollution management program. This section also assigns responsibility for the distribution of assigned funds, identification and establishment of priorities of nonpoint source related water quality problems, description of the WQIF interest and the administration of a statewide nonpoint source advisory committee.

This report fulfills the Department of Conservation and Recreation’s (DCR) legislative requirement under § 10.1–2134 of the Virginia Water Quality Improvement Act of 1997 (WQIA). This report describes the water quality improvement activities undertaken by DCR during 2008 and 2009. Chapter 21.1 of Title 10.1 of the Code of Virginia requires that an annual report be submitted to the Governor and the General Assembly specifying the amounts and recipients of grants made from the Water Quality Improvement Fund (WQIF) and pollution reduction achievements from these grants. WQIF grants awarded to date are provided along with available date on pollutant reductions achieved and estimated pollutant reductions to be achieved from recently funded grant projects.

There were no deposits to the Water Quality Improvement Fund (WQIF) for fiscal years 2002, 2003, and 2004. In fiscal year 2005, a deposit of $9,417,500 was made to the fund. Additional funding became available through WQIF for nonpoint source implementation in FY 2006. The General Assembly's amended budget included $7,500,000 and a General Assembly 2005 action allocated an additional $22,661,600 for a total of $30,161,600. The General Assembly allocated another $39,608,800 in FY 2006. In fiscal year 2007, a deposit of $3,800,000 was made to the fund plus a $400,000 WQIF interest appropriation. In fiscal year 2008, a $562,000 interest appropriation was made for two specific projects. No deposit was made to the WQIF in 2008. In fiscal year 2009, $1,112,300 was allocated for two specific projects. An additional General Assembly action in 2009 allocated $20,000,000 to the Virginia Natural Resources Commitment Fund (VNRCF), a sub-fund of WQIF.

The majority of available WQIF implementation funds administered by DCR are being directed to the Agricultural BMP (best management practice) cost share program. Implementation funds are also being used to support the Conservation Reserve Enhancement Program and strategic nonpoint source water quality initiatives with the Virginia Department of Forestry. WQIF implementation funds were also distributed via several competitive Requests for Proposals (RFP) for both strategic water quality and cooperative nonpoint projects. WQIF Interest monies are being used to fund the Friends of the Shenandoah River monitoring effort and an update of the agricultural BMP tracking program. VNRCF implementation funds are being directed to the Agricultural BMP cost-share program as well as providing funds to VDOF for water quality initiatives.