HomeMy WebLinkAboutWPO201700026 Agreement - Nutrient Credits WPO - Nutrient Credit Agreement 2019-01-14C OMMON WEALTH of ' VIRGIMA
DEPARTMENT OF ENVIRONMENTAL QUALITY
January 14, 2019
NONPOINT NUTRIENT CREDIT GENERATION CERTIFICATION
Certificate No. James-044
I. Project Name:
Ivy Creek Nutrient Bank
2. Sponsor: Ivy Creek Nutrient Bank, LLC
405 Ivy Farm Drive
Charlottesville, VA 22901
3. Authorized Nutrient
Offset Broker
4. Transmitted Electronically:
5. Location of Project Site:
6. Project Description:
Ecosystem Services, LLC
1739 Allied St., Suite A
Charlottesville, VA 22902
david(%�.fermataenergy. com
on rz)ecosystemservices.us
kip( ecosystemservices.us
The property is located at the end of Lamb's Road, approximately
1.5 miles west of its intersection with Hydraulic Road (SR 743).
The Sponsor (Ivy Creek Nutrient Bank, LLC) has completed approximately 1,658 linear feet of stream
restoration on four unnamed tributaries of Ivy Creek for the Ivy Creek Nutrient Bank (ICNB) received
December 11, 2017. 'These credit generating activities will generate a total of 340.73 pounds of nitrogen
reduction, 221.66 pounds of phosphorus reduction, and 69,900 pounds of sediment reduction.
The nutrient reductions resulting from these activities will generate nonpoint source offsets transferable
to those entities requi*-,ng offsets in accordance with the Chesapeake Bay Watershed Nutrient Credit
Exchange Program ('r A Code § 62.1-44.19:14 et seq). These offsets are also transferable in accordance
with the Virginia stormwater offset program (VA Code § 62.1-44.15:35) and the Virginia Soil and
Water Conservation Board's Guidance Document on Stormwater Nonpoint Nutrient Offsets approved
on July 23, 2009, to those rLgulated entities qualifying for nutrient offsets.
NONPOINT NUTRIENT CREDIT GENERATION CERTIFICATION
Ivy Creek Nutrient Bank
January 14, 2019
Page 2 of 3
7. Findings:
The site inspection conducted on October 4, 2018 found stream restoration activities and planting of
riparian buffer had been completed at Ivy Creek property. The newly constructed stream met the design
set that was submitted and was functioning as intended, however establishment of the herbaceous layer
appeared to be buried in areas and will likely need replanting.
In order to provide for the long term viability of the credits, the Sponsor will provided financial
assurance for the stream restoration activity in the form of a Trust Agreement to provide security for (1)
short-term maintenance and monitoring and (2) long-term management.
1. The short -tern- maintenance and monitoring escrow account will be funded by 4% of gross
revenues from each credit sale and will be capped at $60,000. The fund balance will be returned
to the bank sponsor once all of the monitoring has been completed.
2. The long-term management escrow account will be funded by 4% of gross revenue from
each credit sale for long-term management and will be capped at $61,000.
In addition, DEQ requires perpetual credit generating activities to be protected through an enforceable
land use restriction in perpetuity.
Accordingly, the ICNB is approved and will be authorized to transfer 50% of credits generated from the
stream restoration activit, once DEQ has received the recorded Deed of Restrictions and Financial
Assurances. These activities have generated t 70.37 pounds of nitrogen, 110.83 pounds of phosphorus,
and 34,950 pounds of sediment reductions.
Upon receipt and review of annual monitoring reports, an additional 25% of the credits generated by the
stream restoration activity may be released if all performance standards are met, the channel is stable,
and evidence is presented that a bankfull event occurred within the monitoring year. If a bankfull event
did not occur, but performance standards are met and the channel is stable, 10% of the credits may be
released. No additional credits will be released after the fourth monitoring year until a bankfull event has
occurred. After the fourth monitoring year, if a bankfull event occurs, the channel is stable, and all
performance standards are met, 25% of the credits may be released that monitoring year, not to exceed
the remaining credits available.
Monitoring reports shall be submitted by July 1 It summarizing stream restoration geomorphic data
including cross -sections and pattern and profile data as stated in the monitoring plan. Monitoring
reports shall also include vegetation plot sampling methodology, woody stem density, percent of
invasive species per plot, and any corrective actions needed for meeting 400 stems per acre and
maintaining less than 5% invasive species stems. Annual reports shall also include any updates to the
Soil Conservation Plan and Nutrient Management Plan needed to meet baseline requirements within the
FSA tract boundaries.
NONPOTNT NUTRIENT CREDIT GENERATION CERTIFICATION
Ivy Creek Nutrient Bank
January 14, 2019
Page 3 of 3
Affidavits of offset sales and the most current offset transfer ledgers shall be provided to DEQ within 30
days of offset transfer. Transfer ledgers shall be provided to DEQ quarterly by January I Oth, April I Oth,
July I Oth, and October I Oth of each year if no sales were made during the previous quarter.
8. Agency Contact: DEQ: Brock Reggi (804) 698-4243
9. Approval by:
Melanie D. Davenport
Department of Environmental Quality
Water Permitting Di--,. ision Director
Sia—t Date
igna ure