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, 80% of the reduction goal for nitrogen, and 62% of the reduction goal for phosphorous according to a news 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 pollutant 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 pollutant 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 However, the modeling tools utilized by the Environmental Protection Agency (EPA) Chesapeake Bay Program will not be updated to reflect the phosphorus load reductions from Virginia’s legislative fertilizer restrictions until the next round of modeling updates which are currently scheduled to be released in 2028.

Chesapeake Bay and Virginia Waters Clean-Up Plan Report

The Chesapeake Bay and Virginia Waters Clean-Up Plan Report articulates Fiscal Year (FY) 2024 activities and progress on implementing the impaired waters clean-up plan, including progress outlined under Virginia’s Chesapeake Bay Watershed Implementation Plan (WIP). During FY 2024, 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 2022-2023 final progress reports demonstrating progress in the Chesapeake Bay Clean-Up for the WIP milestones period and drafted 2024-2025 WIP milestones for EPA review.

In FY 2024, 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 is in the process of obtaining EPA approval on 16 new TMDL equations. DEQ completed TMDL implementation plans covering 16 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 2023, a total of 234 small implementation watersheds saw BMP activity resulting in over 4,300 BMPs installed.

Water Quality Improvement Fund and Cooperative Nonpoint Source Pollution Programs

For FY 2024 (the period July 1, 2023 – June 30, 2024), the Virginia Soil and Water Conservation Board allocated $124.6 million in agricultural cost-share and $16.2 million in technical assistance funds to Soil and Water Conservation Districts (SWCDs or Districts). An additional $6.6 million, and associated technical assistance funds, were set aside for Districts that implemented the Whole Farm Approach. For FY 2023 and FY 2024, $6 million was 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 2024 will result in an estimated edge-of-field nitrogen reduction of approximately 10.5 million pounds, phosphorus reduction of approximately 3.7 million pounds, and sediment reduction of approximately 850,000 tons.

Under the Water Quality Improvement Fund (WQIF) Point Source Program, since 1998, 104 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 and wastewater conveyance infrastructure 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 2023, 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.

In 2023, DEQ engaged wastewater treatment plants to pursue a performance-based incentive program through the Virginia Nutrient Credit Exchange (Exchange) to facilitate additional nitrogen and phosphorous reductions through the wastewater sector. The Pay for Demonstrated Performance Pilot was initiated to develop innovative approaches to help tthe Commonwealth of Virginia meet the nitrogen and phosphorus milestone goals for the Chesapeake Bay.

The program provided cost effective reductions of nitrogen and phosphorous by offsetting the operational cost (chemical, electrical, and other similar expenses) of those reductions for facilities that choose to participate in the program. The program avoided any disproportional impact to rate payers within the service area of a participating facility, while achieving a higher nutrient reduction for the Chesapeake Bay.

Fourteen facilities participated in the pilot year of the program, which was implemented using funds appropriated in the state budget. The program resulted in a reduction of 118,433 pounds of nitrogen reductions beyond the historical baseline at a cost of $8.44 per pound of nitrogen. This was the first time an incentive-based grant for beyond compliance point source reductions was used in Virginia. The cost per pound of pollutant reduction was more economically efficient than the equivalent NPS nutrient reductions and can be measured and reported with confidence.

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 2024 and were updated for inflation in FY 2024. 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 2023 and assumes the practices included in the WIP are implemented.

For FY 2024-2030 a revised estimate of over $2.9 billion may be required from state and federal funds as well as farmer financial contributions to meet water quality goals. Approximately 45% of this total (slightly over $1.3 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 Districts that implement the VACS program.

Actual FY 2024 allocations from state sources for implementation of agricultural BMPs had the following breakdown:

FY 2024 (Program Name – amount):

VACS Program - $124.6 million

District Technical Assistance - $16.2 million

District Financial Assistance - $9.8 million

FY 2024 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 2024-2030 are estimated in the 2024 Agricultural Needs Assessment Table on page 71. 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.