Pennsylvania Code
Title 25 - ENVIRONMENTAL PROTECTION
Part I - Department of Environmental Protection
Subpart C - Protection of Natural Resources
Article II - Water Resources
Chapter 96 - WATER QUALITY STANDARDS IMPLEMENTATION
Section 96.8 - Use of offsets and tradable credits from pollution reduction activities in the Chesapeake Bay Watershed
Current through Register Vol. 55, No. 13, March 29, 2025
(a) Definitions. The following words and terms, when used in this section, have the following meanings, unless the context indicates otherwise:
Aggregator-A person that arranges for the sale of credits generated by another person, or arranges for the credits to be certified, verified and registered.
Agricultural operation-The management and use of farming resources for the production of crops, livestock or poultry, or for equine activity.
Baseline-
BMP-Best management practice-
Certification-Written approval by the Department of a proposed pollutant reduction activity to generate credits before the credits are verified and registered to be used to comply with NPDES permit effluent limitations.
Credit-The tradable unit of compliance that corresponds with a unit of reduction of a pollutant as recognized by the Department which, when certified, verified and registered, may be used to comply with NPDES permit effluent limitations.
Credit reserve-Credits set aside by the Department to address pollutant reduction failures and uncertainty.
DMR-Discharge monitoring report-The Department or EPA supplied forms for reporting of self-monitoring results by the permittee.
Delivery ratio-A ratio that compensates for the natural attenuation of a pollutant as it travels in water before it reaches a defined compliance point.
Edge of segment ratio-A ratio that identifies the amount of a pollutant expected to reach the surface waters at the boundary of a Chesapeake Bay Watershed Model segment through surface runoff and groundwater flows from a pollutant source within a watershed segment.
Nutrient-Nitrogen or phosphorus.
Offset-The pollutant load reduction measured in pounds that is created by an action, activity or technology which when approved by the Department may be used to comply with NPDES permit effluent limitations, conditions and stipulations under Chapter 92a (relating to National Pollutant Discharge Elimination System permitting, monitoring and compliance). The offset may only be used by the NPDES permittee that the Department determines is associated with the load reduction achieved by the action, activity or technology.
Pollutant-Nutrient or sediment.
Pollutant reduction activity-An activity, such as a BMP or effluent control, that is implemented to prevent or reduce a pollutant load to surface waters of this Commonwealth.
Registration-An accounting mechanism used by the Department to track certified and verified credits before they may be used to comply with NPDES permit effluent limitations.
Reserve ratio-A 10% ratio that is applied to the pollutant reductions generated, which establishes the credits to be set aside for the Department's credit reserve.
Threshold-Activities and performance standards beyond baseline compliance which are required under subsection (d)(3) before credits may be certified.
Tradable load-The amount of nonpoint source pollutant reduction determined to be the projected future pollutant load that is the difference between the total reduction theoretically possible from maximum implementation of pollutant reduction activities, and the reduction associated with a level of pollutant reduction activities identified by the Department as reasonably attainable.
Trade-A transaction that involves the sale or other exchange, through a contractual agreement, of credits that have been certified, verified and registered.
Trading ratio-A ratio applied to adjust a pollutant reduction when calculating credits for a pollutant reduction activity. A trading ratio is used to address uncertainty, water quality, reduction failures or other considerations. The term will include a delivery ratio, an edge of segment ratio and a reserve ratio.
Verification-Assurance that the verification plan contained in a certification, permit or other approval issued by the Department under this section has been implemented. Verification is required prior to registration of the credits for use in an NPDES permit to comply with NPDES permit effluent limitations.
(b) Chesapeake Bay water quality.
(c) Methodology.
(d) Eligibility requirements for the Chesapeake Bay.
(e) Certification requirements for the Chesapeake Bay.
(f) Verification requirements for the Chesapeake Bay.
(g) Registration requirements for the Chesapeake Bay.
(h) Use of credits and offsets to meet NPDES permit requirements related to the Chesapeake Bay.
(i) Water quality and TMDLs.
(j) Public participation. The Department will publish a notice in the Pennsylvania Bulletin of the receipt of administratively complete requests for certifications of a pollutant reduction activity to generate credits. The notice will provide an opportunity for informal comments. This notice is not required to follow the requirements of § 92a.82 (relating to public notice of permit applications and draft permits). The Department will also publish notice in the Pennsylvania Bulletin of its final certification determination.
(k) Use of credits and offsets generally. Nothing in this section precludes the Department from allowing the use of credits and offsets to be used to meet permit limits other than those established for restoration, protection and maintenance related to the water quality of the Chesapeake Bay.
The provisions of this § 96.8 issued under sections 5(b), 202, 307, and 402 of The Clean Streams Law (35 P. S. §§ 691.5(b), 691.202, 691.307, and 691.402).