Date: 01/25/2012
Final
Proposed Nutrient Water Quality Standard
COMMITTEE ON JOINT AGRICULTURE AND NATURAL RESOURCES
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07:35 AM -- Proposed Nutrient Water Quality Standard
Dr. Chris Urbina, Executive Director, Colorado Department of Public Health and Environment (CDPHE) announced that the Water Quality Control Commission (WQCC) will consider the adoption of revisions to the Basic Standards and Methodologies for Surface Water, Regulation #31 (5 CCR 1002-31) and the adoption of a new Nutrients Management Control Regulation, Regulation #85 on Monday, March 12, 2012 at the CDPHE's Denver Office. For more information about this hearing go to http://www.cdphe.state.co.us/op/wqcc/Hearings/Rulemaking/31_85nutrients/Nutrients.html
07:36 AM
Steve Gunderson, Director, Water Quality Control Division (WQCD), described the proposed rule making process for the nutrient standard (Attachment A). He explained that Pursuant to House Joint Resolution 11-1025, the Water Quality Control Division is encouraged to present its strategy to address nutrient regulations to a joint meeting of the Senate Agriculture, Natural Resources, and Energy Committee and the House Agriculture, Livestock, and Natural Resources Committee no later than January 31, 2012. According to HJR 11-1025, the presentation should address how the division's proposal: complies with Executive Order D 2011-005; reflects active stakeholder participation; fully considers a cost benefit study commissioned by the WQCD; is structured to avoid unnecessary regulation and minimize the fiscal impact to state agencies and local governments; and is designed to address basin-specific conditions.
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07:40 AM
Mr. Gunderson explained that high levels of nitrogen and phosphorus in waters can produce harmful algal blooms. These blooms can produce "dead zones" in water bodies where dissolved oxygen levels are so low that most aquatic life cannot survive. This condition in water bodies is referred to as hypoxia. He identified areas of the state that have elevated nutrient levels including the Denver Metro area. He described the WQCD proposed nutrients management control regulation that seeks to protect sensitive water supplies using technology based limits. The proposed regulation will affect 131 of state's 391 domestic wastewater treatment systems in Colorado. In general, the proposed regulation will affect the largest dischargers of nutrients in the state.
07:53 AM
Mr. Gunderson responded to questions from the committee about the location of wastewater treatment plants affected by the proposed regulations and identified other sources of nutrients that will not be addressed by the proposed regulations including stormwater discharges and agricultural runoff.
07:56 AM
Mr. Gunderson identified potential dischargers that would be exempt from the regulation including small dischargers and facilities that serve disadvantaged communities. He also described the effect of proposed regulation on industrial dischargers and identified stakeholders that have been involved in the rulemaking process.
08:04 AM
Dave Akers, WQCD, responded to questions from the committee about the number of industrial dischargers that may be affected by the nutrient standard. He explained that WQCD commissioned a cost benefit study to assess the potential impact of the nutrient standard on dischargers and affected communities. The final report was issued on December 9. The 354-page report, called Cost Benefit Study of the Impacts of Potential Nutrient Controls for Colorado Point Source Discharges, and appendices are available at www.cwrpda.com. The study cost $400,000 to prepare and was paid by the Colorado Water Resources and Power Development Authority. The study estimated that the total cost of complying with the proposed regulations would be approximately $2.4 billion statewide or approximately $.80 in benefits per $1.00 in compliance cost.
08:13 AM
Mr. Ackers responded to questions about the proposed Tier 1 nutrient standard and facilities that would be affected by it. He also described the use of a narrative standard as part of proposed regulation and explained that the improvements to water treatment systems needed to comply with the proposed regulation likely would be paid through increased user fees.
08:16 AM
Michael Brod, Executive Director, Colorado Water Resources and Power Development Authority, described the Water Pollution Control Revolving Fund that provides low interest loans for public wastewater projects. He also identified projects that are on the project eligibility list for the revolving loans that is approved annually by the General Assembly in a resolution. He also identified other potential sources of money to pay for the improvements to wastewater treatments systems including severance tax moneys that are allocated to local governments and U.S.Department of Agriculture grants and loans.
08:22 AM
Mr. Ackers responded to questions about the method used to determined the cost and benefits of the proposed nutrient standard and discussed potential federal regulations that may require states to regulate nutrients.
08:25 AM
Mr. Gunderson responded to questions about the scientific studies used to determine the proposed nutrient standard and whether these studies considered Colorado's unique hydrologic and other conditions. He also identified federal funds that are available for farmers to help reduce agricultural runoff and financial incentives that may cause farmers to voluntarily reduce the application of fertilizer.
08:44 AM
Mr. Gunderson explained how the results of the cost benefit study will be used to develop the nutrient regulations. He also explained how the rule would comply with the Governor's Executive Order D 2011-005, dated January 11, 2011. According to this order, no state agency may promulgate any regulation unless it is specifically mandated by law, and only then in consultation with local governments, and if funding is provided to comply with the mandate. He explained that the proposed nutrient regulation is consistent with the Governor's order because it would implement a federal policy.
08:54 AM
Senator Schwartz invited the WQCD to meet again with the Senate Agriculture, Natural Resources, and Energy Committee and the House Agriculture, Livestock, and Natural Resources Committee to continue the discussion on the proposed nutrient regulation. The meeting is tentatively scheduled for Wednesday, February 1, at 8:00 a.m. in House Committee Room 0107.
08:56 AM
The meeting adjourned.