Nutrient Offset Fees- Legislative Review (2007)

                                                                                                                  

                                                                                                                                              Fish sores can be one indication      

                                                                                                                                               of an ecosystem out of balance

In a surprise last minute bill, (H859); the General Assembly updated the fees developers must pay to offset their nutrient impact via polluted runoff. Under Tar-Pamlico and Neuse River rules, new development must limit the amount of Nitrogen and Phosphorus (Tar-Pam only) runoff to local streams. They can either implement practices on-site to reduce their loads, or pay into a state fund in which the money goes to fund restoration projects in other parts of the basin.                  

In March 2006, the Department of Environment and Natural Resources passed a ruling to increase the offset fee from $11/pound of nitrogen to $57/pound. DENR found that the original offset fee of $11 was not sustainable and in fact meant that the state was subsidizing the program. Late opposition from the Home Builders Association, got the General Assembly to keep the $11/pound for an additional year, while also funding a study to determine the costs. From the consultant report, the new bill will require developers to pay $21.67/lb of Nitrogen and $28.62/tenth of lb of Phosphorus. This is still a woefully inadequate fee, but the bill also calls for a change in the offset program which will be battled out in the Environmental Management Commission in the coming two years.

PTRF will continue to work on this issue in 2008-2009 to insure the passing of adequate fees to truly offset the nutrient impact by development.