Vol. 23, No. 2 April 16, 2015

DEQ Proposes Major Changes to Wetland Permits

Major changes are on the horizon for the Virginia Water Protection (VWP) Permit regulations. Wetland Studies and Solutions, Inc. (WSSI) staff have been involved in the revision process and are prepared to guide you and your projects through the changes that the Virginia Department of Environmental Quality (DEQ) proposed to the State Water Control Board (SWCB) on March 30, 2015. DEQ staff obtained approval from the SWCB to proceed to Notice of Public Comment and a hearing on the proposed amendments to the main regulation and associated General Permit regulations:

Regulation

Proposed Changes

Virginia Water Protection Permit Program Regulation

Regulation text

Table of changes

WP1: VWP General Permit for Impacts Less Than One-Half Acre

Regulation text

Table of changes

WP2: VWP General Permit for Utility Line Activities

Regulation text

Table of changes

WP3: VWP General Permit for Linear Transportation Projects

Regulation text

Table of changes

WP4: VWP General Permit for Development and Certain Mining Activities

Regulation text

Table of changes

Timing
Five Notices of Intended Regulatory Action (NOIRAs) were published May 13, 2014 (Main Regulation, WP1, WP2, WP3, WP4). DEQ solicited public comments, then formed a Citizen Advisory Group (CAG) to offer insight during the revision process. The proposed changes will now follow the standard state review process with the Department of Planning and Budget, the Governor’s office, and public comment:

The Regulatory Change Process

DEQ published the five NOIRAs, then solicited public comments and formed a CAG. On March 30, DEQ presented the proposed changes to the State Water Control Board. Now Virginia’s Department of Planning and Budget (DPB) will prepare an Economic Impact Analysis (EIA), and DEQ will respond to that analysis.

The proposed changes, the DPB EIA, and DEQ’s response will be published in the Virginia Register, kicking off a 60 day public comment period. DEQ may change the proposed regulations based on comments received at that time. After that, the proposed final regulation will be published in the Virginia Register. The Governor may review the final regulation. If the Governor has concerns, the Governor may formally object or may suspend the effective date of some or all of the regulation until the end of the next General Assembly session. If the Governor does not act, after a 30 day waiting period the regulation will become effective.

Gubernatorial actions may also result in an additional 30 day public comment period on the changes. In addition, DEQ can suspend this process for 30 days upon request from 25 or more individuals requesting DEQ solicit additional comment (uness DEQ determines the changes have minor or inconsequential impact).

This process can take 6-24 months. DEQ anticipates that the process will last ±12 months, and has indicated that if new GPs cannot be adopted and in place before August 1, 2016, then DEQ will reauthorize the existing GPs with new expiration dates and thereby eliminate any time gap in the GPs. The IPs will remain in place during this process.

Stakeholder Involvement
The current General Permit (GP) regulations are effective through August 1, 2016. In 2014 DEQ convened the VWP Permit CAG, which met from August 2014 to January 2015. Three WSSI staff were involved in that process: Mike Rolband, Dan Lucey, and Beth Silverman Sprenkle; our September 2014 Field Notes article outlined the goals of this regulation review process.

The CAG, which included representatives of local, state, and federal government agencies; business interest groups; consultants; and non-profit organizations, extended its original number of planned meetings from five (ending in October) to nine (ending in January) to provide additional time for revisions and review, and to include more stakeholders as changes to the surface water withdrawal provisions became significant. Two of the meetings were dedicated to surface water withdrawal alone. The CAG reached consensus on many topics, but at times the consensus was on a position that was different from the position held by DEQ. At other times, lack of input from the CAG may have been viewed as consensus between the few who voiced opinions. As an example, surface water withdrawal topics did not solicit much comment or involvement from the CAG members who were not frequent practitioners, and the lack of discussion may have been interpreted as consensus.

There is some concern among the regulated public that this regulatory revision process strayed from the May 2014 NOIRAs. The public perception is that the NOIRAs did not provide a comprehensive scope of anticipated changes, particularly the proposed changes to surface water regulations (including controversial definitions). Interested parties who did not seek appointment to the CAG had relied on the scope of the NOIRA to determine their anticipated level of involvement. Therefore there has been some public concern that the CAG could not adequately address surface water withdrawal issues.

Immediate Outcome: Change in Expiration Dates for Current GPs
As an offshoot of the discussions at CAG meetings with the agency, DEQ legal staff and the Attorney General’s office recently revised the general permit authorization expiration date options.

Major Change: GP Timeframes Extended but with a Fixed Expiration Date
One of the most significant impacts of these changes is the alteration of the wetland GP expiration timelines. DEQ proposes for all GPs to expire on August 1, 2031. This means that all of the work under WP1, WP2, WP3, and WP4 would have to stop on that date and could not resume until DEQ authorizes the work anew unless DEQ has already adopted new GPs with transition language prior to August 1, 2031, which DEQ has verbally committed to do.

This is a major stumbling block that the public has encountered with Virginia stormwater permits and with the U.S. Army Corps of Engineers’ Nationwide Permits. In 2001, the stakeholders worked with DEQ to craft a solution to prevent such a glitch. The simple and elegant solution – issue project approvals that last a specified length of time from issuance (i.e., three years, five years, or seven years) combined with the review and renewal of the regulations every five to seven years – allowed projects to complete their impacts, compensation, and monitoring under one permit. It worked very well and was unanimously promoted by the CAG during this process.

While it is good in the short term that the timeframes for completing work under a GP have increased, it could be a major detriment that all GP-authorized work might come to a halt if new GPs are not adopted and in place before August 1, 2031 - and cause financing difficulties for projects starting in the last year or two prior to August 1, 2031. DEQ has indicated that this is not a problem because projects anticipating the need for permit continuity in that time frame could instead apply for an Individual Permit. The IP process, however, is lengthy and consumes a significant amount of public and DEQ staff time, and is unnecessarily cumbersome for the smaller impacts for which GPs are designed. Additionally, those projects wishing to use a GP could be subject to new DEQ regulations, which could be considerably different.

Other Proposed Changes
The revisions are numerous, but many reflect the evolving nature of wetland permitting over the last 15 years. While they do not substantively change the VWP Permit program, they do alter some important aspects of the permits. We’ve summarized the additional key proposed changes here. WSSI staff are prepared to interpret what these DEQ-recommended changes can mean for your projects. DEQ’s memo to the SWCB provides a guide to the proposed changes and DEQ’s interpretation of the CAG process and input.

Regulation Reorganization
Main regulation reorganized to gather all of the surface water provisions in one place
GPs made consistent and streamlined with the main regulation, in some cases referring back to the main regulation rather than repeating it
Surface Water Withdrawal Provisions
Revision of the term “public surface water supply withdrawal” to “public water supply” to characterize the use of the water type rather than the withdrawal type.
Inclusion of the term “Public Water Supply Safe Yield,” which was formerly defined in the Virginia Department of Health’s regulations. This term generated a great deal of discussion from CAG members and interested parties, and subsequent dissention.
Clarification of the 2 million gallon per day exclusion of tidal surface water for consumptive use.
Updated and clarified information required for a complete application, with removal of the distinction between minor and major withdrawals
Established criteria for major and minor permit modifications
Impact Compensation
Updated compensation hierarchy for consistency with the federal compensation guidelines established in the 2008 Mitigation Rule and for consistency with guidance DEQ issued on March 19, 2009.
Impacts to typical farm ponds will no longer need compensation. Only those ponds that have been formed by the natural solution of limestone in the karst regions of the Commonwealth may require compensation.
As long as no net loss of wetland acreage occurs, DEQ has the discretion to accept some preservation as compensation for wetland impacts (when the preservation includes the necessary land protection mechanisms).
Wetland functional assessments will be more sparingly required. Now DEQ will have the discretion to require those studies when impacts are an acre or more; or the proposed compensation does not comply with the standard ratios (2:1 for forested, 1:1.5 for scrub-shrub, and 1:1 for emergent wetlands); or permittee-responsible mitigation is proposed.
Permit Logistics
An IP minor modification can be processed when impacts do not exceed 1 acre or 1,500 linear feet, or 10 percent of the originally permitted impacts.
Necessary application materials will include GIS shapefiles and U.S Army Corps of Engineers-approved Jurisdictional Determinations whenever possible.
Introduced administrative continuance provision so an IP can extend past its original expiration date when DEQ cannot process a new permit or modification. (This is consistent with other DEQ water program regulations.)
Land Protection
Land protection mechanisms must be recorded before permitted impacts can be taken, rather than within 120 days of permit issuance.
Monitoring and Reporting
Impact site construction monitoring will shift to on-site record maintenance, much like stormwater permitting. Monitoring will include pre-construction photographs, thorough monthly site inspections when impacts are occurring, and a construction status update that will be submitted to DEQ twice each year. The change reflects DEQ’s efforts to improve permit process efficiency while maintaining sufficient data for each project.
DEQ Effort
This process was challenging for DEQ and the stakeholders, given the changes that the wetlands permitting paradigm has experienced since 2000. DEQ staff put in extraordinary time and effort to understand the variety of stakeholder perspectives and ultimately find middle ground with functional and effective program adjustments
Public Comment
Anyone wishing to submit comments on the proposed regulation revisions should register with the Virginia Regulatory Town Hall. The Virginia Regulatory Town Hall comment forum for each regulation will be open as soon as the proposed changes are published in the Virginia Register of Regulations. If you sign up for the Town Hall email notification service, you will be notified when the 60 day public comment period opens.