RD416 - Chesapeake Bay and Virginia Waters Clean-Up Plan - Progress Report - January 2012


Executive Summary:
This report was developed to comply with consolidated water quality reporting requirements stipulated in § 62.1-44.118. This section requires the Secretary of Natural Resources to submit a progress report on implementing the impaired waters clean-up plan as described in § 62.1-44.117. This consolidated report also includes the “Annual Report on the Water Quality Improvement Fund” by the Department of Conservation and Recreation and Department of Environmental Quality in §10.1-2134 and incorporates the “Cooperative Nonpoint Source Pollution Programs” in subsection D of § 10.1-2127. The report also encompasses the “Annual Funding Needs for Effective Implementation of Agricultural Best Management Practices” in subsection C of §10.1-2128.1 by the Department of Conservation and Recreation.

Water Quality Improvement Fund and Cooperative Nonpoint Source Pollution Programs

During FY11, the Department of Conservation and Recreation contracted $7.1 million to local soil and water conservation districts to cost-share the installation of best management practices with farmers. The entire amount of funding for FY11 was generated from recordation fees on land transfers since there was no deposit for nonpoint sources to the WQIF during FY11. Practices installed on farms during FY11 will result in estimated edge of field nitrogen reductions of 2.8 million pounds, phosphorus reductions of almost 700,000 pounds and sediment reductions of 500,000 tons. Utilizing funds remaining after closing a number of previous grant projects, the Department of Conservation and Recreation awarded $2,652,550 in grants to nonpoint source water quality improvement projects in response to the 2010 Virginia Water Quality Improvement Fund Request for Proposals. The Department of Environmental Quality currently has 57 signed WQIF agreements which obligated $657 million in state grants ranging from 35% to 90% cost-share, for design and installation of nutrient reduction technology at Bay watershed point source discharges.

Funding Needs for Effective Implementation of Agricultural Best Management Practices

Projected funding needs from state and federal sources for statewide agricultural BMPs and their associated technical assistance are estimated at $85.0 million for FY13 and $90.5 million for FY14 to fully fund the state and federal portion of BMP costs. Funding projections for the Chesapeake Bay were based on a detailed analysis of practices in the Chesapeake Bay Watershed Implementation Plan as well as the Southern Rivers, and technical assistance needs projections based on the funding split prescribed in the Natural Resources Commitment Fund. A summary of total projected cost-share and technical assistance needs from all funding sources is included in Figure 2-2. Actual funding that should be appropriated is less than the amounts presented above for two key reasons. First, the Secretary of Natural Resources, as directed by §2.2-220.3, is developing a procedure to track BMPs that some farmers install voluntarily without cost-share assistance if farmers are willing to report the practices. This report assumes all BMPs would need to be cost-shared; therefore any voluntary installations that can be included in the pollution reduction goals at no cost to the state will reduce costs. Secondly, the extent of farmer demand to utilize BMP cost-share funding at levels much greater than historical appropriations, while uncertain, is unlikely to result in state and federal expenditures that approach the levels needed to fully achieve water quality goals. For these reasons, an appropriate strategy is to increase agricultural BMP funding to levels greater than historical amounts in order to test farmer demand for the BMP cost-share practices. DCR suggests allocating a total of $24.0 million in FY13 and $16.7 million in FY14 of WQIF for agricultural BMPs and technical assistance to further test farmer demand for cost-shared BMPs. By utilizing WQIF balances, a portion of the FY11 WQIF deposit, and estimated revenues from dedicated recordation fees, a budget request may be needed in FY14 to supplement the existing and expected funds in order to implement the program.

Chesapeake Bay and Virginia Waters Clean-up Plan Report

During FY11, many strategies were implemented to reduce pollutants entering the Chesapeake Bay tributaries and Southern Rivers basins. Significant progress was made in reducing point source discharges from sewage treatment plants, installing agricultural best management practices, reducing the phosphorus content of poultry litter through effective dietary management of poultry, enhanced compliance with state erosion and sediment control regulations, and the adoption of revised Stormwater Management Regulations. Most notable during the period was the development of Virginia’s Phase I Watershed Implementation Plan, in response to the Chesapeake Bay TMDL, which was approved by EPA in December, 2010. Since several of the goals and objectives identified in the initial Chesapeake Bay and Virginia Waters Clean-up Plan have been essentially achieved, the agencies will consider revising the plan during FY12.