RD816 - FY 2023 Chesapeake Bay and Virginia Waters Clean-Up Plan


Executive Summary:

The Commonwealth’s Progress on Federal Planning Targets

The Commonwealth has made significant and substantial progress towards meeting the Chesapeake Bay Total Maximum Daily Load (TMDL). Virginia's reported pollution controls achieved 100% of the 2025 federal planning target reduction goal for sediment, 84% of the reduction goal for nitrogen, and 70% of the reduction goal for phosphorous according to a press release from the Chesapeake Bay Program highlighting modeled pollution load estimates generated through the 2019 version of the Chesapeake Assessment Scenario Tool (CAST-19) of the Watershed Model. Furthermore, modeled pollution load estimates for phosphorous will be even lower once the model is adjusted to account for 2011 legislation (HB 1831 and SB 1055, 2011 Va. Acts Chs. 341 and 353) that limited the sale, distribution, and use of lawn fertilizer containing phosphorous in Virginia after December 31, 2013. Based on evaluation by the Department of Environmental Quality (DEQ), the modeled pollution load reduction for phosphorous in Virginia could be on the order of 100% of the federal planning target when adjusted for the reductions achieved by the 2011 law change and 2010 WIP requirement to eliminate phosphorous in most lawn fertilizers. The 2023 version of CAST (CAST-23) is currently under development by the Environmental Protection Agency, but is unlikely to be updated to reflect these modeled pollution load reductions for phosphorus until after 2025. Modeled phosphorus reductions under CAST-23 will account for a variety of factors such as land use changes and previously unaccounted loads; therefore, future modeled progress may vary from DEQ’s estimate.

Chesapeake Bay and Virginia Waters Clean-Up Plan Report

The Chesapeake Bay and Virginia Waters Clean-Up Plan Report articulates Fiscal Year (FY) 2023 activities and progress on implementing the impaired waters clean-up plan, including progress outlined under Virginia’s Chesapeake Bay Watershed Implementation Plan. During FY 2023, many strategies were implemented in the Commonwealth to reduce pollutants entering the Chesapeake Bay tributaries and Southern Rivers basins. Significant progress was made in reducing point source pollutant discharges from sewage treatment plants, installing agricultural best management practices (BMPs) with a continuing focus on livestock exclusion practices, the reissuance of administratively continued Phase 1 Municipal Separate Storm Sewer System (MS4) permits, and implementing revised Stormwater Management Regulations. Virginia agencies submitted progress reports demonstrating progress in the Chesapeake Bay Clean-Up for the 2022-2023 Watershed Implementation Plan (WIP) milestones period.

In FY 2023, DEQ made significant progress on the development of Total Maximum Daily Load (TMDL) equations in complex watersheds addressing polychlorinated biphenyls (PCBs), sediment, and nutrients and completed one Implementation Plan covering 13 waterbody impairments. BMP data reported by the Nonpoint Source (NPS) program is delayed by one fiscal year due to the limited availability of BMP data at the time of the Clean-Up Plan reporting deadline. In FY 2022, a total of 225 small TMDL Implementation Watersheds saw BMP activity resulting in over 3,600 BMPs installed.

Water Quality Improvement Fund and Cooperative Nonpoint Source Pollution Programs

For FY 2023 (the period July 1, 2022 – June 30, 2023), the Virginia Soil and Water Conservation Board allocated $116.3 million in agricultural cost-share and $15.1 million in technical assistance funds to Soil and Water Conservation Districts (SWCDs or Districts). An additional $6.6 million, and the associated technical assistance funds, were set aside for SWCDs that implemented the Whole Farm Approach. For FY 2023 and FY 2024, $6 million is available for the Conservation Reserve Enhancement Program (CREP) cost-share funds for disbursement to Districts as state match for new projects. Practices installed on farms during FY 2023 will result in estimated edge-of-field nitrogen reductions of approximately 11.5 million pounds, phosphorus reductions of approximately 3.9 million pounds, and sediment reductions of approximately 1,000,000 tons.

Under the Water Quality Improvement Fund (WQIF) Point Source Program, since 1998, 101 point source WQIF grant agreements obligating $1.03 billion have been signed. The construction project grants range from 35% to 95% cost-share for the design and installation of nutrient reduction technology at Chesapeake Bay watershed point source discharges. WQIF point source grants provide critical support for compliance with the nutrient discharge control regulations and achieving Chesapeake Bay nitrogen and phosphorus wasteload allocations (WLAs). Ninety-two of the projects have been completed and are operational. For calendar year 2022, facilities registered under the Chesapeake Bay Watershed Nutrient Discharge General Permit reported discharged loads that, in the aggregate, were significantly below the total WLAs currently in effect for all Chesapeake Bay tributary basins. Tables of discharged and delivered loads for each individual facility and basin totals are available online from DEQ.

With nonpoint source funding made available through the WQIF, along with matching funds, DEQ has worked with local government and state agency partners to implement a wide range of actions to reduce nonpoint source pollution that contributes to water quality problems.

Although there has been no additional WQIF Nonpoint Source Program funding since 2016, implementation activities continue under a Request for Assistance (RFA) made available to local government (cities, towns, counties, SWCDs, and Planning District Commissions (PDCs)) and state agency applicants. DEQ continues to manage projects awarded through the $3.4 million RFA. These nonpoint source pollution implementation projects are at various stages of completion.

Within the Chesapeake Bay watershed, projects that maximize the reduction of nitrogen, phosphorous, or sediment were a funding priority. Projects with the highest pollution reduction relative to dollars requested were given priority. These projects implement pollution control actions that will have a significant and lasting impact on local and state water quality. Overall, pollution reductions are expected to be in line with original reduction estimates.

Funding Needs for Effective Implementation of Agricultural Best Management Practices

The funding projections for the effective implementation of best management plans were determined using a revised formula for FY 2022 and were updated for inflation in FY 2023. These projections for the Chesapeake Bay were developed based on a detailed analysis of practices identified in the Chesapeake Bay Phase III WIP. This included a review of progress made in implementing the WIP through 2022 and assumes the practices included in the WIP are implemented.

A FY 2023 estimate of over $2.7 billion may be required from state and federal funds as well as farmer financial contributions to meet water quality goals. Approximately 38.5% of this total (slightly over $1.0 billion) could be needed from state sources, the vast majority of which is direct funding of the Virginia Agricultural Cost-Share (VACS) Program and support for Soil and Water Conservation Districts that implement the VACS program.

Actual FY 2023 allocations from state sources for implementation of agricultural BMPs had the following breakdown:

FY 2023 (Program Name – amount):

VACS Cost-Share program funding - $116.3 million

District Technical Assistance - $15.1 million

District Financial Assistance - $9.8 million

FY 2023 support figures exclude engineering support via DCR staff, IT support, and training assistance (e.g., Conservation Planning Certification). These have been itemized separately.

Projected funding needs from state sources for implementation of agricultural BMPs through FY 2023-2030 are estimated in the 2023 Agricultural Needs Assessment Table on page 72. A comprehensive review of the VACS Program that began in 2019 has led to improved program efficiency, increased flexibility in agricultural practice standards and specifications, and other significant programmatic revisions. Additional efforts are focused on methods to improve tracking of voluntarily installed practices and bundling several practices into one VACS application.