[From the U.S. Government Printing Office, www.gpo.gov]







                U.S. Department of Commerce                                               U.S. Environmental Protection Agency
                National Oceanic and Atmospheric Mministration                           Office of Water
                Washington. DC 20235                                             Washington, DC 20460






                COASTAL NONPOINT POLLUTION
                CONTROL PROGRAM


                Program Development and
                Approval Guidance





                January 1993














      TD
      423
    C632
  1993












































































     
     
                                                                                                                 841 -B-93-003
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                           FOREWORD




       As part of the Coastal Zone Act Reauthorization Amendments of 1990, Congress
       enacted a new Section 6217 entitled "Protecting Coastal Waters". This provision requires
       states with coastal zone management programs that have received Federal approval
       under section 306 of the Coastal Zone Management Act (CZMA), to develop and
       implement Coastal Nonpoint Pollution Control Programs. These coastal nonpoint
       programs are to be used to control sources of nonpoint pollution which impact coastal
       water quality.

       Section 6217 requires coastal states to submit their coastal nonpoint programs to the
       National Oceanic and Atmospheric Administration (NOAA) and the Environmental
       Protection Agency (EPA) for approval. Failure to submit an approvable program will
       result in a state losing a portion of its Federal funding under section 306 of the CZMA
       and section 319 of the Clean Water Act.


       This document, developed by NOAA and EPA, contains guidance for states in
       developing and implementing their coastal nonpoint programs. It describes the
       requirements that must be met, including: the geographic scope of the program; the
       pollutant sources to be addressed; the types of management measures used; the
       establishment of critical areas; technical assistance, public participation, and
       administrative coordination; and, the process for program submission and Federal
       approval. The document also contains the criteria by which NOAA and EPA will review
       the states' submissions.


       This document should be used in conjunction with the Guidance Specifying Management
       Measures for Sources of Nonpoint Pollution in Coastal Waters published by EPA in
       January 1993. Copies of that document can be obtained from EPA, 401 M ST, SW,
       Washington D.C. 20460.






          Trudy C                     Robert H.KNa-y-land, III
          Director                    Director
          Office of Ocean and         Office of Wetlands, Oceans
           Coastal Resource Management and Watersheds
          NOAA                        EPA


   C"
   C"
   cro          LIBRARy
               NOAA/cCEH
 A           1990 HOBSON AVE.
 i-          CHAS. SC 29408-2623








                                                      TABLE OF CONTENTS



                                                                                                                            Page



                 ED03CUTIVE SUMMARY             ..........................................................                      v



                 L        PURPOSE AND RnRoDucnoN                  .............................................                 I


                 IL       OVERVIEW OF STATUTORY REQUIREMENTS AND PROGRAM
                          PROGRAM APPROVAL PROCESS                  ............................................                4


                          AL       Statutory Requirements     ................................................                  4

                          B.       Section 6217(g) Management Measures Guidance         .............................           6

                          C.       Procedures for Program Development and Approval         ...........................          6

                          D.       Federal Support for Coastal Nonpoint Programs       ..............................           7


                 IEL      SPECIFIC COASTAL NONPOINT PROGRAM REQUIREMENTS                             ....................       9

                          A.       Coordination with Existing Programs      ......................................              9

                          B.       Coastal Zone Boundaries and 6217 Management Area           .........................         9

                          C.       Implementation of Management Measures In
                                    Conformity With Section 6217(g) Guidance        ...............................             12

                                   1. Identification of Sources to be Addressed    ................................             13
                                   2. Identification of Management Measures to be Implemented         ..................        15
                                   3. Description of the Implementation Process       ..............................            20


                          D.       Requirements for Implementation of Additional
                                    Management Measures       ...............................................                   22

                                   1. Identification of Coastal Waters Not Maintaining
                                       or Attaining Water Quality Standards      .................................              23
                                   2. Identification of Land Uses Causing or
                                      Threatening Water Quality Impairments      .................................              24
                                   3. Identification of Critical Coastal Areas  ..................................              25
                                   4. Process to Implement Additional Management Measures           ....................        27
                                   5. Selection of Additional Management Measures        ...........................            28
                                   6. Using Innovative Pollutant Trading Techniques      ...........................            30

                          E.       Technical Assistance   ..................................................                    31

                          F.       Public Participation  ...................................................                    32









                      G.      Administrative Coordination  ............................................          33


                      H.      Enforceable Policies and Mechanisms  .....................................         34


                              1. Regulatory Approaches    .............................................          36
                              2. Non-regulatory Approaches   ..........................................          38

              IV.     PROGRAM SUBMISSION, APPROVAL AND IMPLEMENTATION                      ..................    41

                      A. Program Submission and NOAA/EPA Review        ..................................        41

                      B. Threshold Review    .......................................................             41

                      C. Conditional Approvals   ....................................................            43

                      D. Schedule for Implementation   ...............................................           44

                      E. Final Program Approval Standards and Penalties   ................................       46



              APPENDIX A.
               Section 6217 of the Coastal Zone Act Reauthorization Amendments of 1990


              APPENDIX B:
               National Pollutant Discharge Elimination System

              APPENDIX Q
               List of Section 6217(g) Management Measures

              APPENDIX D:
               List of States and Territories with Approved Coastal Zone Management Program

              APPENDIX E.-
               Overview of Existing National Efforts to Control Nonpoint Source Pollution

              APPENDIX F.-
               Designated Uses and Support Levels

              APPENDIX G.
               State Coastal Nonpoint Program Submission

              APPENDIX It
               Demonstrated Benefits of Trading












                                                               iv









                                             EX-ECUTIVE SUMMARY



                This document is the National Oceanic and Atmospheric Administration's (NOAA) and
                the Environmental Protection Agency's (EPA) Coastal Nonpoint Pollution Control
                Program: Program Development and Approval Guidance for state Coastal Nonpoint
                Pollution Control Programs (coastal nonpoint programs) developed under section 6217 of
                the Coastal Zone Act Reauthorization Amendments of 1990 (CZARA). This document
                should be read in conjunction with EPA!s Guidance Speciffing Management Measures for
                Sources of Nonpoint Pollution in Coastal Waters, which is discussed below.

                Section 6217 requires states to establish coastal nonpoint programs, which must be
                approved by both NOAA and EPA. Once approved, the coastal nonpoint programs will
                be implemented through changes to the state nonpoint source pollution program
                approved by EPA under section 319 of the Clean Water Act (CWA) and through
                changes to the state coastal zone management program approved by NOAA under
                section 306 of the Coastal Zone Management Act (CZMA). Beginning in fiscal year
                1996, states that fail to submit an approvable coastal nonpoint program to NOAA and
                EPA face statutory reductions in Federal funds awarded under both section 306 of the
                CZMA and section 319 of the CWA.

                The statute and legislative history indicate that the central purpose of section 6217
                is to strengthen the links between Federal and state coastal zone management and water
                quality programs in order to enhance state and local efforts to manage land use
                activities that degrade coastal waters and coastal habitats. This is to be accomplished
                primarily through the implementation of. (1) management measures in conformity with
                guidance published by EPA under section 6217(g) of CZARA, and (2) additional state-
                developed management measures as necessary to achieve and maintain applicable water
                quality standards.

                This Program Development and Approval Guidance sets forth NOAA's and EPA's
                interpretation of the statutory requirements for the state coastal nonpoint programs, and
                is intended to assist states in developing approvable programs. The document first
                provides an overview of the legislative goals and requirements of section 6217. It then
                provides a description of the criteria that NOAA and EPA will use when reviewing
                coastal nonpoint programs for approval based on NOAA!s and EPA's interpretation of
                CZARA's requirements. Finally, it discusses the program approval process established
                by NOAA and EPA. A decision by NOAA and EPA to approve or disapprove a state's
                program will be made on the basis of the applicable laws and regulations as applied to
                the specific facts presented by the program.






                                                             v






              Coastal Nonpoint Program



              The following is a summary of the requirements for state coastal nonpoint programs.


              6217(g) Guidance Management Measures and Addhional Management
              Measures

              M statute requires state pWams to provide for the implementation of management
              measures in conformity with EPA's (g) guidance and for additional management measures
              for land uses and critical coastal arm adjacent to unpaved or threatened coastal waters
              ImPlefnentation of diese additional management measures in combination with the basic (g)
              management measures must be designed so as to attain and maintain applicable water
              quak standards undff section 303 of the CWA inchulingprotecting designated uses.
              (Section 6217(b)(1) and (2)).

              In order to meet these requirements, states will need to include the following elements in
              their coastal nonpoint programs.

              6217(g) Guidance Management Measures

                ï¿½    An identification of those nonpoint source categories and subcategories that
                     impact coastal waters for which applicable (g) guidance management measures
                     will be implemented. States must include a description of and justification for any
                     exclusions from (g) guidance measures. These exclusions are limited to sources
                     within a category (e.g., agriculture) or subcategory (e.g., confined animal facilities)
                     which, individually or cumulatively, do not significantly impact coastal waters.

                ï¿½    A description of the (g) guidance management measures to be implemented, and
                     the technical documentation for any alternative measures selected by the state for
                     implementation in lieu of those in the (g) guidance.

                ï¿½    A description of the procedures that the state will use to ensure implementation
                     of the management measures, including operation and maintenance practices,
                     inspection procedures, certification procedures, and monitoring.

              Additional Management Measures

                0    An identification of land uses and critical coastal areas that will require additional
                     management measures.

                0    A description of state-developed additional management measures to be
                     implemented to meet water quality standards and protect designated uses.





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                                                      Program Development and Approval Guidance



            Implementation of All Management Measures

              ï¿½    A description of a state program that ensures implementation of both the (g)
                   guidance management measures and the additional management measures,
                   including: designation of a lead state agency for each source category and/or
                   subcategory, a description of the legal authorities to implement the management
                   measures (i.e., enforceable policies and mechanisms), and a description of how the
                   lead agency will implement the program.

              ï¿½    A schedule for full implementation of the (g) guidance management measures
                   within three years of Federal approval and full implementation of additional
                   management measures within eight years of Federal approval. The latter includes
                   a two year period for evaluating the implementation of the (g) measures, and
                   three years to implement the necessary additional measures. New activities will be
                   subject to the applicable management measure requirements at the time of
                   Federal approval.


            6217 Management Area and Coastal Zone Boundary Modification

            7he statute requires each state to include a proposal to modify its coastal zone boundary as
            the coastal management agency deems necessary to implement NOAA's boundary
            recommendation.


            NOAA has conducted its initial review of each state's coastal boundary. Based on this
            review, NOAA will make its recommendation to the states on the area to be included in
            the coastal nonpoint program (i.e., the section 6217 management area) in early 1993.
            NOAA and EPA expect that states will respond either by modifying the coastal zone
            boundary to implement NOAXs recommendation or by identifying other authorities that
            exist or will be established, as necessary, to implement the coastal nonpoint program
            outside the state's current coastal zone boundary but within the 6217 management area.



            Enforceable Policies and Mechanisms


            Section 306(d)(16) of the CZAL4 requires state coastal zone management programs to
            contain enforceable policies and mechanimu to implement the applicable requirements of
            the coastal nonpoint programs.

            In order to satisfy this requirement, states will need to adopt, at a minimum, enforceable
            policies and mechanisms to implement the (g) guidance management measures and the
            additional management measures. These enforceable policies and mechanisms may be




                                                      vii






             Coastal Nonpoint Program



             state and local regulatory controls, and/or non-regulatory incentive programs combined
             with state enforcement authority.


             Program Coordination

             7he statute requires the coastal nonpointprograms to be coordinated closely with edsting
             Clean Water Act programs and with approved state coastal zone management plans In
             addition, the statute requires the establishment of coordination mechanums among state
             agencies and between state and local ofjkials responsible for land use programs and
             pemduing, water qualify permitting and enforremen4 habitat protection, and public health
             and safety.

             NOAA and EPA expect state coastal nonpoint programs to be well coordinated with all
             relevant Federal, state and local programs including those administered by EPA, NOAA
             and U.S. Department of Agriculture (USDA). In addition, states should establish
             mechanisms to coordinate the relevant state and local programs through joint project
             reviews, memoranda of agreement, or other mechanisms. Where possible, these
             mechanisms should build upon existing coordination procedures.


             Tecbnical Amistance


             7he statute requires states to provide technical and other amistance to local governments and
             the public for irnplernenting the additional management measures.

             NOAA and EPA expect states to identify those portions of the coastal nonpoint
             programs that are to be implemented by local governments and to include a program to
             provide technical and other assistance to local governments and the public in the state
             coastal nonpoint program.


             Public Participation

             7he statute requires states to provide opponunities for public participation in all aspects of
             the coastal nonpointprogram.

             NOAA and EPA expect that the public will be involved early in the process of
             developing the coastal nonpoint program. The state must also provide an opportunity
             for public comment on the final coastal nonpoint program prior to submission of the
             program to NOAA and EPA, and an opportunity to participate in the implementation of
             the program.





                                                       viii






                                                     Program Development and Approval Guidance



           Program Submission and Approval

           States must submit their coastal nonpoint programs to NOAA and EPA for approval
           within 30 months of the publication of final management measures guidance (i.e., July
           1995). When a state coastal nonpoint program receives final Federal approval, it will
           be incorporated automatically into the state's coastal management and nonpoint
           programs. NOAA and EPA have established a voluntary threshold review process to
           assist states in the development of their programs.


           Federal Support for State Coastal Nonpoint Programs

           NOAA is authorized under section 6217(f) of CZARA to provide funds to state coastal
           management agencies to develop coastal nonpoint programs. In addition, funds may be
           available under section 319 of the CWA to implement coastal nonpoint programs.
           NOAA and EPA will also work with the states to identify other sources of funds to
           develop and implement the state programs.






























                                                      ix






                                                                 Program Development and Approval Guidance



                     PROGRAM DEVELOPMENT AND APPROVAL GUIDANCE



              L PURPOSE AND EVI'RODUMON

              Water quality remains one of the most important environmental problems facing the
              United States. In coastal areas, beach closures, prohibitions on harvesting shellfish, and
              loss of biological productivity in coastal habitats are evidence of water quality
              impairment. Based on an assessment of 75% of United States estuarine waters, current
              best estimates are that 35% of these waters are impaired and 10% are threatened.

              Coastal waters are affected by both point and nonpoint sources of pollution, with the
              latter a significant and, in many cases, the dominant form of pollution in a given water
              body. While great strides in controlling point sources of pollution have been made since
              the passage of the Federal Water Pollution Control Act in 1972, nonpoint source
              pollution remains a major problem in many coastal areas. The leading nonpoint
              contributors to estuarine waters are urban runoff (including certain construction activities
              and onsite disposal systems) and agriculture. Other significant nonpoint contributors in
              some coastal watersheds include silviculture, marinas, and hydromodification. In
              addition, the loss and degradation of wetlands and riparian areas has adversely impacted
              coastal water quality.

              Congress enacted section 6217 of the Coastal Zone Act Reauthorization Amendments of
              1990 (CZARA) in November 1990 to help address the problem of nonpoint source
              pollution in coastal waters! (A copy of this statute is found in Appendix A.) Section
              6217 requires that coastal states with federally approved coastal management programs
              develop Coastal Nonpoint Pollution Control Programs (hereafter, coastal nonpoint
                           2
              programs). The legislative history indicates that the central purpose of section 6217 is
              to strengthen the links between Federal and state coastal zone management and water
              quality programs in order to enhance state and local efforts to manage land use activities
              that degrade coastal waters and coastal habitats.       3  The state coastal zone management
              agency designated under section 306 of the Coastal Zone Management Act (CZNLA,) and
              nonpoint source management agency designated under section 319 of the Clean Water
              Act (CWA) will have a dual and co-equal role and responsibility in developing and
              implementing the coastal nonpoint program.



                  1   Section 6217 does not amend the CWA or the CZMA, but rather contains independent provisions.
                  2   The term "state" refers to states, territories and commonwealths having coastal management programs
                      approved under section 306 of the Coastal Zone Management Act.
                  3   As defined in section 304 (10) of CZARA and used in this guidance, "land use" includes water uses.



                                                                  1






                Coastal Nonpoint Program



                Although nonpoint source pollution is a significant source of pollution in coastal waters,
                the legislative history states that "the new program will not and ought not bear the full
                burden of restoring and maintaining coastal water quality, but will operate instead in
                conjunction with controls on point sources established under the Clean Water Act and
                associated programs." Therefore, state coastal nonpoint programs under section 6217 are
                required only to address nonpoint source pollution, and are expected to address, at a
                                                                                                                   4
                minimum, the major sources of nonpoint pollution specified in the (g) guidance.

                Thus, a state does not need to provide in its coastal nonpoint program for the
                implementation of the management measures developed by EPA under section 6217(g)
                                                                                                                5
                of CZARA for activities that are clearly regulated as point source discharges.
                However, in the interest of consistency and comprehensiveness, each state may choose to
                apply the (g) management measures to both point and nonpoint sources throughout the
                state's section 6217 management area, as long as the specific NPDES requirements are
                also met for those sources subject to NPDES permitting requirements.

                Section 6217 envisions a two-tiered management approach for the control of nonpoint
                sources of pollution. To receive Federal approval, the state coastal nonpoint program
                must ensure: (1) the implementation, at a minimum, of management measures in
                conformity with the guidance developed under section 6217(g) by EPA, in consultation
                with NOAA and other Federal agencies, to protect coastal waters generally, and (2) the
                implementation of additional management measures applicable to land and water uses
                and critical coastal areas identified by the state pursuant to section 6217(b)(1) and (2) so
                as to attain and maintain applicable water quality standards under section 303 of the
                CWA and to protect designated uses.           6

                The purpose of the first tier is to protect coastal waters generally, and therefore, is not
                tied to specific water quality problems. The state must provide for the implementation



                   4    Historically, there have been overlaps and ambiguities among programs addressing nonpoint and point
                        sources of pollution. Some of these overlaps, such as those which occur with the National Pollution
                        Discharge Elimination System (NPDES) stormwater permit program (under section 402(p) of the
                        CWA), are discussed in more detail in Appendix B. Many of the techniques and practices used to
                        control point sources, such as channelized urban stormwater, are equally applicable to nonpoint
                        sources, and vice versa. Nevertheless, the programs do not have identical requirements. Certain
                        NPDES requirements may go beyond the management measures specified in the (g) guidance.
                   5    For simplicity, the guidance containing these management measures, which was published by EPA in
                        January, 1993, will be referred to as the "(g) guidance" in this document. A list of the management
                        measures included in this guidance is provided as Appendix C.
                   6    In addition to addressing the contribution of pollution through runoff from the land, the state coastal
                        nonpoint program should also consider the infiltration of pollutants into ground water which can
                        result in the pollution of surface waters.




                                                                      2






                                                           Program Development and Approval Guidance



            of these management measures in conformity with the (g) guidance which          includes
            management measures for the following categories of nonpoint pollution sources:
            agricultural runoff-, urban runoff-, silvicultural runoff; hydromodification, shoreline erosion,
            and dams; and marinas. In addition, the (g) guidance includes management measures for
            wetlands protection, riparian areas, and vegetated filter strips, which are effective for
            several different source categories.

            If the general level of protection provided by the first management tier is insufficient to
            enable coastal waters to meet water quality standards and protect designated uses, then
            the state must implement the second tier which consists of additional     .management
            measures. The purpose of the second tier is to restore coastal waters and, in the case of
            the critical areas, to protect against future pollution problems.

            This document, developed by the National Oceanic and Atmospheric Administration
            (NOAA) and the Environmental Protection Agency (EPA), contains guidance for
            developing and implementing coastal nonpoint programs. The first section of this
            guidance introduces the coastal nonpoint program. The second section provides an
            overview of the statute's requirements. The third section discusses the specific program
            requirements, including requirements for coordination with other programs; the
            geographic scope of the coastal nonpoint program and coastal zone boundary review;
            implementation of management measures in conformity with EPA's (g) guidance and
            additional state-developed management measures; technical assistance; public
            participation; administrative coordination; and enforceable policies and mechanisms. The
            final section describes EPXs and NOAA's process for review and approval of coastal
            nonpoint programs submitted by the states, and the schedule for state implementation of
            the program.





















                                                            3






             Coastal Nonpoint Program



             H. OVERVIEW OF STATUTORY REOUIREMENTS AND PROGRAM
                 APPROVAL PROCESS

             Congress enacted CZARA section 6217, entitled "Protecting Coastal Waters," to address
                                                                               7
             the impacts of nonpoint source pollution on coastal water quality. Section 6217(a)
             requires each state with a federally approved coastal zone management program under
             section 306 of the CZMA to develop and submit to NOAA and EPA a coastal nonpoint
             program for approval. The statute states that the purpose of this new state program
             "shall be to develop and implement management measures for nonpoint source pollution
             to restore and protect coastal waters, working in close conjunction with other State and
             local authorities."


             NOAA and EPA do not expect states to develop and implement stand-alone coastal
             nonpoint programs, but rather expect that states will develop and implement the coastal
             nonpoint program through changes to the approved state nonpoint source management
             program and to the approved state coastal zone management program developed under
             section 306 of the CZMA, as amended.

             All states and territories have EPA-approved nonpoint source management programs or
             portions of programs and are currently receiving section 319 grants to assist them in
             implementing the approved programs. Currently, there are 29 federally approved state
             and territorial coastal zone management programs developed and approved pursuant to
             the CZNIA (see Appendix D).


             HA Statutory Requirements

             Under section 6217, coastal nonpoint programs must contain a number of elements in
             order to be approvable by NOAA and EPA. The state programs must:

                1.  be closely coordinated with existing state and local water quality plans and
                    programs developed pursuant to sections 208, 303, 319 and 320 of the CWA, and
                    with state coastal zone management programs.

                2.  provide for the implementation, at a minimum, of management measures in
                    conformity with the guidance published under section 6217(g) to protect coastal
                    waters generally (discussed in section II.B).

                3.  provide for the implementation and continuing revision from time to time of
                    additional management measures that are necessary to attain and maintain
                    applicable water quality standards and protect designated uses with respect to:


                7   This section has been codified at 16 U.S.C. ï¿½ 1455b.



                                                          4






                                                           Program Development and Approval Guidance



                     a.    land uses which, individually or cumulatively, may cause or contribute
                           significantly to a degradation of (a) coastal waters not presently attaining or
                           maintaining applicable water quality standards or protecting designated
                           uses, or (b) coastal waters that are threatened by reasonably foreseeable
                           increases in pollution loadings from new or expanding sources; and

                     b.    critical coastal areas adjacent to coastal waters which are failing to attain or
                           maintain water quality standards or which are threatened by reasonably
                           foreseeable increases in pollution loadings.

              4.    provide for technical and other assistance to local governments and the public to
                    implement additional management measures.

              5.    provide opportunities for public participation in all aspects of the program.

              6.    establish mechanisms to improve coordination among state agencies and between
                    state and local officials responsible for land use programs and permitting,
                    water quality permitting and enforcement, habitat protection, and public health
                    and safety.

              7.    propose to modify state coastal zone boundaries as the state determines is
                    necessary to implement NOAA recommendations under section 6217(e), which
                    are based on findings that modifications to the inland boundary of a state coastal
                    zone are necessary to more effectively manage land and water uses to protect
                    coastal waters.


             This guidance discusses these requirements in greater detail in section III and explains
             NOAA's and EPXs expectations for state coastal nonpoint programs.

             In addition to the provisions of section 6217, CZARA amended section 306 of the
             CZMA to require that, before approving a coastal zone management program submitted
             by a coastal state, NOAA shall find that, "...the management program contains
             enforceable policies and mechanisms to implement the applicable requirements of the
             Coastal Nonpoint Pollution Control Program of the State required by section 6217 .... 11
             (section 306(d)(16)). States with federally approved coastal management programs must
             demonstrate compliance with section 306(d)(16) in order to receive final approval of
             their coastal nonpoint programs.

             The statute requires that states submit their coastal nonpoint programs to NOAA and
             EPA 30 months after EPA publishes final (g) guidance. The final (g) guidance was
             published in January 1993; therefore, coastal states must submit their coastal nonpoint
             programs to NOAA and EPA for approval in July 1995.





                                                           5






            Coastal Nonpoint Program



            II.B. Section 6217(g) Management Measures Guidance

            Section 6217(g) requires that EPA, in consultation with NOAA, the U.S. Fish and
            Wildlife Service, and other Federal agencies publish "guidance for specifying management
            measures for sources of nonpoint pollution in coastal waters." Management measures
            are defined in section 6217(g)(5) as:

                   "economically achievable measures for the control of the addition of pollutants from
                   etisting and new categories and classes of nonpoint sources of pollution, which reflect
                   the greatest degree of pollutant reduction achievable through the application of the
                   best available nonpoint pollution control practices, technologies, processes, siting
                   criteria, operating methods, or other alternatives. "

            As provided by section 6217(g)(2), the management measures guidance includes:

                   (A) "a description of a range of methods, measures, or practices, including
                   structural and nonstructural controls and operation and maintenance procedures,
                   that constitute each measure;

                   (B) a description of the categories and subcategories of activities and locations
                   for which each measure may be suitable;

                   (C) an identification of the individual pollutants or categories or classes of
                   pollutants that may be controlled by the measures and the water quality effects
                   of the measures;

                   (D) quantitative estimates of the pollution reduction effects and costs of
                   the measures;

                   (E) a description of the factors which should be taken into account in adapting
                   the measures to specific sites or locations; and

                   (F) any necessary monitoring techniques to accompany the measures to assess
                   over time the success of the measures in reducing pollution loads and improving
                   water quality."

            The (g) guidance provides a basis for the state coastal nonpoint programs.


            H.C. Procedures for Program Development and Approval

            NOAA and EPA have prepared this program development and approval guidance to
            assist states in developing approvable coastal nonpoint programs. The states are




                                                        6






                                                         Program Development and Approval Guidance



            encouraged to consult with NOAA and EPA as they develop specific program elements.
            NOAA and EPA have established a voluntary threshold review process to assist states
            in the development of their programs. This process is discussed in more detail in
            section IV.B.


            NOAA and EPA will jointly review the state program within six months after submission.
            Because of the inseparable nature of the land use and water quality portions of the
            coastal nonpoint programs in achieving the statutory goals, NOAA and EPA have
            determined as a matter of policy that neither agency will grant approval to a state's
            coastal nonpoint program until the program meets the Federal approval requirements as
            determined by both agencies.

            If a coastal state fails to submit an approvable program within 30 months after
            publication of the (g) guidance, NOAA and EPA will reduce Federal grant dollars to the
            state under the coastal zone management and nonpoint source management programs as
            required by section 6217(c)(3) and (4). The penalty provisions begin in Fiscal Year 1996
            with a 10% reduction in funding under both programs, increasing to 15% in FY 1997,
            20% in FY 1998, and 30% in FY 1999 and each fiscal year thereafter. In the case of the
            coastal zone management program, the penalty is based upon the grants otherwise
            available to a state in the current fiscal year. In the case of the section 319 nonpoint
            source management program, the penalty is based on the grant amount awarded to the
            state for the preceding fiscal year.

            Under certain limited circumstances, a state may request a conditional approval of its
            coastal nonpoint program. If a state is granted conditional approval of its program, the
            penalty provisions of section 6217 will be suspended during the conditional approval
            period if the state continues to make progress on the workplan and to meet the
            milestones agreed to with NOAA and EPA as part of the conditional approval. (See
            discussion of conditional approval in section W.C.)


            H.D. Federal Support for State Coastal Nonpoint Programs

            NOAA is authorized under section 6217(f) of the CZARA to provide funds to the
            designated state coastal management agency to develop its coastal nonpoint program.
            The Federal funds may not exceed 50% of the cost of developing the program, and the
            state share of costs must be paid from non-Federal sources. NOAA has published
            separate guidance on application procedures and allocations. Since funds will be limited,
            state coastal agencies are encouraged to work closely with state nonpoint source agencies
            and other appropriate Federal, state, regional and local agencies to develop their coastal
            nonpoint programs. Funds under section 319(h) of the CWA are available for program
            implementation.





                                                          7






              Coastal Nonpoint Program



              NOAA and EPA will consider using additional financial incentives and/or disincentives to
              encourage states to develop effective coastal nonpoint programs within the statutory
              deadline.




























































                                                          8






                                                       Program Development and Approval Guidance



            III. SPECIFIC COASTAL NONPOINT PROGRAM REQUIREMENTS

            State coastal nonpoint pollution programs must contain a number of components
            mandated by section 6217. The following section discusses these statutory requirements
            and the minimum criteria that the state coastal nonpoint program needs to meet to
            obtain Federal approval.


            MA Coordination with Existmg State Program

            The statute requires that state coastal nonpoint programs be closely coordinated with
            state and local water quality plans and programs under sections 208, 303, 319, and 320
            of the CWA, and with state coastal zone programs. (Section 6217(a)(2)). Some of
            these programs are discussed in Appendix E. This requirement is necessary to ensure
            that the new coastal nonpoint program can be integrated into existing state programs
            upon approval.

            During the program development process, NOAA and EPA expect state coastal zone
            management and nonpoint source agencies to involve the relevant Federal, state, regional
            and local programs. A number of states already closely coordinate the activities of these
            programs through their existing coastal zone management and state nonpoint programs.
            States should develop their coastal nonpoint programs to complement and strengthen
            existing coastal management and nonpoint source authorities, while minimizing
            unnecessary duplication or conflicts at the Federal, state or local levels. Components of
            existing programs that meet the requirements of section 6217 should be incorporated into
            the states' coastal nonpoint programs.


            HI.B. Coastal Zone Boundaries and 6217 Management Area

            As directed by section 6217(a), the geographic scope of each coastal nonpoint program
            must be sufficient to ensure implementation of management measures to "restore and
            protect coastal waters." Section 6217(e), which requires NOAA to conduct a review of
            each state's coastal zone boundary, refines the focus to require NOAA to determine the
            geographic area encompassing the land and water uses having a "significant" impact on a
            state's coastal waters. A significant impact can occur from both the individual and
            cumulative effects of land and water uses. NOAA and EPA will not approve a state
            coastal nonpoint program whose geographic scope does not encompass such uses because
            a program that does not control the significant land and water uses cannot be expected
            to "restore and prOtect coastal waters".

            Section 6217(e) requires that NOAA, in consultation with EPA, review each state's
            existing state coastal zone boundary established under the CZMA, and recommend any




                                                        9






              Coastal Nonpoint Program



              modification to that boundary needed to effectively manage land and water uses to
              protect coastal waters. Specifically, the statute directs NOAA, in consultation with EPA,
              to evaluate whether each state coastal zone boundary extends inland to the extent
              necessary to control nonpoint source pollution from land and water uses that have a
              significant impact on a state's coastal waters. See section 6217(e)(1). If NOAA, in
              consultation with EPA, finds that boundary modifications are necessary for a state to
              more effectively manage land and water uses to protect coastal waters, then NOAA shall
              recommend appropriate modifications. See section 6217(e)(2).

              Although expressed in terms of a recommendation that a state modify its coastal zone
              boundary, NOAA's recommendation also defines what NOAA and EPA believe should
              be the geographic scope of that state's coastal nonpoint program, i.e., "the 6217
              management area". A state program need not adopt the exact 6217 management area
              recommended by NOAA if the state can demonstrate that a smaller geographic area
              would be adequate to restore and protect coastal waters. Absent such a demonstration,
              however, NOAA and EPA expect the geographic scope of the coastal nonpoint program
              to correspond to NOAA's recommendation.

              To provide a basis for its recommendation, NOAA conducted a review of states' existing
              coastal zone boundaries and provided each state with an analysis of its boundary. In
              conducting this review, NOAA, in consultation with EPA, compared indicators of
              nonpoint source pollution potential within coastal zone boundaries, and within coastal
              watersheds. Coastal watersheds were selected because watersheds provide a logical
              physical unit when dealing with nonpoint source pollution. To provide a uniform
              framework for evaluation, the review was based on the national hydrologic unit
              classification system developed by the U.S. Geological Survey (USGS). For purposes of
              this review, coastal watersheds were defined as the USGS Cataloging Units adjacent to
              the shore and extending inland along estuaries to include the USGS Cataloging Units
              that encompass the head of tide.

              Within each state, NOAA evaluated each watershed that drains into coastal waters,
              whether or not that watershed is encompassed within a state's existing coastal zone.
              Based on nationally available data, NOAA determined for each watershed whether
              significant indicators of nonpoint pollution potential were present within four analysis
              areas: (1) the existing coastal zone, (2) the coastal watershed, (3) the area inland of
              the coastal watershed within the state's borders, and (4) the area beyond the state
              borders that drain into coastal waters. . NOAA has focused on significant indicators
              of nonpoint source pollution in compliance with section 6217(e) which directs NOAA to
              evaluate whether the coastal zone extends inland "to the extent necessary to control
              land and water uses that have a significant impact on coastal waters of the State."
              (Section 6217(e)(1)).






                                                           10







                                                       Program Development and Approval Guidance



            Based on the review of each coastal watershed, NOAA will develop a preliminary
            assessment of the appropriate geographic scope of the state's program, i.e., the 6217
            management area, and will make a corresponding recommendation for modification to
            the state's coastal zone boundary. Where the coastal watershed appears to capture most
            of the significant indicators of nonpoint pollution potential, NOAA will recommend the
            coastal watershed as the 6217 management area. Where significant indicators of
            nonpoint source pollution are present inland of the coastal watershed, NOAA will
            recommend that the 6217 management area extend inland of the coastal watershed.8

            Finally, in coastal watersheds where an area less than the coastal watershed captures
            most of the significant indicators of nonpoint source pollution, especially where the
            existing coastal boundary closely aligns with the coastal watershed, NOAA will
            recommend that lesser area as the 6217 management area. In no case will NOAA
            recommend an area less than the existing coastal zone as the 6217 management area.

            The geographic scope of the coastal nonpoint program must be based on the impact
            of land and water uses on coastal waters. NOAA's boundary recommendation will
            specify a 6217 management area to guide states during program development.9 In
            response to this recommendation, states are encouraged to undertake their own analysis
            of their coastal watersheds. At the time of program submission, a state may propose
            an alternative 6217 management area, in which case the state must demonstrate to
            NOAA's and EPA's satisfaction that the management area extends as far as necessary
            to control sources of nonpoint pollution that, individually or cumulatively, significantly
            impact the state's coastal waters. NOAA and EPA will evaluate the adequacy of the
            state's proposed 6217 management area as part of the program review and approval
            process. Specific criteria for this evaluation are being developed by NOAA and will be
            published separately.

            A state is expected to demonstrate authority to manage the final 6217 management area
            in one of two ways. First, a state may demonstrate that its coastal zone boundary has
            been modified to encompass the entire 6217 management area. If the state coastal zone
            management agency lacks authority to modify the boundary, the coastal nonpoint
            program must contain recommendations to the appropriate state authority for changes to
            the coastal zone boundary. Because there is no assurance that the coastal zone boundary
            will be modified as proposed, NOAA and EPA also expect a state to demonstrate that it



               .8  The nature of the underlying data makes it infeasible for NOAA to recommend a specific distance
                   beyond the coastal watershed. States will be expected to examine these watersheds during program
                   development to analyze indicators of nonpoint pollution and to determine the inland extent of the
                   6217 management area.
                9  Section 6217(b)(7) requires that each state program contain a proposed or recommended coastal zone
                   boundary modification as necessary to implement the NOAA recommendation.







             Coastal Nonpoint Program



             has the necessary authorities, including enforceable policies and mechanisms, to ensure
             implementation of the coastal nonpoint program within the 6217 management area.

             Second, because the modification of a state's coastal zone boundary necessarily has
             other implications besides nonpoint source pollution control, a state may choose not
             to alter its coastal zone boundary. Areas outside the coastal zone, but within the
             6217 management area, would be managed with other state authorities networked into
             the coastal nonpoint program. Although changing the coastal zone boundary to address
             NOAA's recommendation may be preferable because it would provide the clearest
             delineation of the geographic scope of the coastal nonpoint program, the statute does
             not make this a prerequisite for Federal approval. If the state's 6217 management area
             extends beyond the state's existing coastal zone boundary, the state must also show
             that it has the necessary authorities, including enforceable policies and mechanisms,
             to ensure the implementation of the program's management measures with the 6217
             management area.'O


             IR.C. Implementation of Management Measures In Conformity with Section 6217(g)
                     Guidance


             For program approval, each coastal nonpoint program must "provide for the
             implementation, at a minimum, of management measures in conformity with the
             guidance published under subsection (g), to protect coastal waters generally..."(section
             6217(b)). In developing the (g) guidance, EPA focused on the significant categories and
             sources of nonpoint pollution identified in state section 319 nonpoint source assessments.
             The categories of nonpoint sources addressed in the (g) guidance are: agricultural
             runoff; urban runoff (including developing and developed areas); silvicultural (forestry)
             runoff; hydromodification, including shoreline erosion, and dams; and marinas. In
             addition, the (g) guidance includes management measures for wetlands protection,
             riparian areas and vegetated filter strips, which apply to a number of sources. A number
             of specific source subcategories are also discussed in detail in the (g) guidance.

             In order to satisfy the statutory requirement to provide for implementation of
             management measures in conformity with the (g) guidance, state programs must:

                    1.     Identify nonpoint source categories or subcategories that will be addressed;
                    2.     Identify management measures to be implemented for those categories and
                           subcategories; and,
                    3.     Describe the process by which the state will ensure the implementation of
                           the management measures.



                10 In addition, a state may choose to utilize a combination of the two approaches described above.



                                                        12






                                                         Program Development and Approval Guidance



             These elements are discussed in more detail in the following sections.

             In its coastal nonpoint program document, a state must respond to each of the (g)
             management measures by either: (1) providing for the implementation of that measure or
             an alternative as effective as the (g) measure; or (2) justifying why the management
             measure is not included in the program. This justification must be based on the
             exclusion of certain nonpoint categories or subcategories using the process described in
             section III.C.1.



                    ]EII.C.1. Identification of sources to be addressed


             For program approval, states must provide for the implementation of management
             measures for each of the nonpoint source categories (e.g., agriculture) and subcategories
             (e.g., confined animal facilities) identified in the (g) guidance to protect coastal waters
             generally. States must also provide for the implementation of management measures
             specified for wetlands and riparian area protection. In addition, a state may include
             management measures for sources not identified in the (g) guidance (e.g., mining
             operations not subject to permitting under section 402 of the CWA), if the state
             determines such management measures are necessary to protect coastal waters generally.

             NOAA and EPA may allow a state to exclude some categories, subcategories or sources
             from the requirements of its coastal nonpoint program. An exclusion may occur under
             two scenarios: (1) if a nonpoint source category or subcategory is neither present nor
             reasonably anticipated in the 6217 management area, or (2) if a state can demonstrate
             that a category, subcategory or particular source of nonpoint pollution does not and is
             not reasonably expected to, individually or cumulatively, present significant adverse
             effects to living coastal resources or human health.

             Under the first scenario, a state can exclude one or more nonpoint source categories or
             subcategories in coastal watersheds or parts of coastal watersheds. To do so, a state
             must clearly demonstrate that each of those nonpoint source categories or subcategories
             is neither present nor reasonably anticipated in such areas. If such a demonstration is
             made, the state need not develop and provide for the implementation of management
             measures for those nonpoint source categories or subcategories. For example, if a state
             does not have and does not foresee the establishment of an animal feeding operation in
             the 6217 management area, it need not develop a program to control such operations. It
             should be noted, however, that when the exclusion applies only to a portion of the area
             or a particular coastal watershed, the state must still provide for the implementation of
             the management measures in all other portions of the 6217 management area where the
             categories or subcategories are present or anticipated.






                                                         13






             Coastal Nonpoint Program



             Under the second scenario, states may exclude certain sources within retained categories
             and subcategories. To do so, the state must adequately demonstrate that those sources,
             individually and cumulatively, do not and are not reasonably expected to present
             significant adverse effects to living coastal resources or human health. Factors that may
             be considered to exclude such sources include, but are not limited to:

                     0     pollutant loadings or estimates of loadings from the sources;
                     0     intensity of land use; and
                     0     ecological and human health risk associated with the source.

             In general, this second type of exclusion is designed to exclude sources that are present
             in the 6217 management area but that, individually or cumulatively, do not and are not
             reasonably expected to cause significant adverse effects to living coastal resources or
             human health. In determining the significance of adverse effects, states should consider
             both direct and indirect adverse effects. An example of a source that may be excluded
             under this approach could include an on-site disposal system located a considerable
             distance from surface coastal waters and above the groundwater table.

             NOAA and EPA wish to emphasize the limited applicability of this second type of
             exclusion. For this reason, NOAA and EPA have expressly placed the burden upon
             the states to demonstrate that any excluded sources will not and are not reasonably
             expected to present adverse effects to living coastal resources or human health, and
             that the application of the (g) measures to the remaining sources will protect coastal
             waters generally.

             For either type of exclusion, states must submit a description and documentation of the
             data and rationale relied upon for excluding the sources. The documentation should
             include information contained in existing state water quality assessments (including those
             developed under sections 305(b) and 319 of the CWA), other information sources listed
             in Section III.D., and existing data (or modelling results) that indicate the
             insignificance of the loadings or hydrologic impacts caused by sources that the state
             proposes to exclude.

             EPA and NOAA will review the states' submissions, including the adequacy of the
             assessments, to determine whether the category or subcategory needs to be addressed by
             the coastal nonpoint program. The issue of assessment adequacy may be discussed
             through the threshold review process. In addition, NOAA and EPA will, at a state's
             request, consider proposed exclusions during the threshold review process discussed in
             section W.B.


             In the "Applicability" section of many management measures in the (g) guidance, EPA
             has already established minimum sizes below which the measures do not apply (e.g.,
             marinas with less than 10 slips) based on economic achievability analysis. In such cases,




                                                          14






                                                          Program Development and Approval Guidance



             state programs should address all sources above those minimum levels, except where a
             state can document, as described above, that a less stringent level in a particular
             geographic area will still allow protection of coastal waters generally.

             It should be noted that sources excluded from the (g) measures implementation
             nevertheless may be subject to additional management measures discussed in
             section III.D.



                    DIC2. Identification of management measures to be implemented

             For program approval, states must specify the management measures that will be
             implemented to address each category or subcategory of sources identified through
             the process in section III.C.1 of this guidance document. Section 6217(b) requires
             state management measures to be in conformity with those measures specified in the
             (g) guidance. A state management measure is "in conformity with" those specified in
             the (g) guidance if it is identical to, or is demonstrated to be as effective as, the
             (g) guidance measures.

             In order to accommodate variabilities relating to source, location and climate, or other
             local conditions that could affect the implementation of the (g) guidance management
             measures, the (g) guidance also lists a number of practices that can be used to
             implement each management measure. States have considerable flexibility in choosing
             management practices to achieve the management measures and are not restricted to
             specifying or implementing the practices described in the (g) guidance. The practices or
             system of practices chosen, however, must ensure the effective implementation of the
             management measures. For program approval, the coastal nonpoint program must
             describe the process the state will use to select practices that will result in the effective
             implementation of the (g) guidance management measures.


             Selection of Alternative Management Measures

             In developing management measures in conformity with the (g) guidance, states may
             select "alternative management measures" under two conditions: (1) states have
             conditions that make the 6217(g) measures inapplicable or unsuitable, or (2) other
             measures that equal or exceed the effectiveness of the 6217(g) measures already exist or
             are scheduled to be implemented under existing state laws or programs. The use of
             alternative management measures in these situations is supported not only by the statute,
             which acknowledges that the (g) measures may be adapted to specific sites or locations
             (section 6217(g)(2)(E)), but also by the legislative history which directs NOAA and EPA
             to accord states flexibility in selecting management measures.





                                                          15






            Coastal Nonpoint Program



            States may use these alternative measures instead of the (g) measures in their coastal
            nonpoint programs only if they can demonstrate that such alternatives are as effective in
            controlling nonpoint pollution as the measures specified in the (g) guidance. For
            program approval, a state electing to specify an alternative management measure for
            implementation will need to demonstrate that the alternative is at least as effective as the
            (g) guidance management measure it intends to replace. States should use the best
            available information to make this showing.

            Management measure effectiveness can be evaluated or described in many ways:
            pollutant loading, pollutant loading reductions, pollutant concentration in discharge, peak
            concentration reductions, mean concentration reductions, habitat impacts (including
            impacts resulting from changes in flow), impacts to fisheries, impacts to
            macroinvertebrates, wildlife impacts, effects on support of designated uses, direct impacts
            to the water resource of concern, the extent to which the source is actively managed, or
            other factors. States may use any combination of these factors to demonstrate the
            effectiveness of alternative management measures.

            For approval of an alternative management measure, the state will need to demonstrate
            that the alternative management measure (or a combination of measures or a series of
            measures applied over time) is as effective as the measure set forth in the (g) guidance
            when applied in the specific state or local area. For example, when management
            measures in the (g) guidance specify certain storm events, design criteria or pollutant
            reduction levels, the alternative management measures must specify similar storm events,
            design criteria or pollutant reduction levels. In addition, the state will need to
            demonstrate that the operation and maintenance procedures for the alternative are
            feasible and adequate to maintain a level of pollution control as effective as the (g)
            guidance measure over the lifetime of the measure. In choosing an alternative
            management measure, states should take into account possible adverse impacts of these
            alternative measures on other coastal resources such as ground water or wetlands.

            In support of its alternative management measure, a state will need to identify the
            procedures used to evaluate the measure and the results of that evaluation, and provide
            specific technical documentation of the evaluation as part of their coastal nonpoint
            programs. In general, information used to document that an alternative management
            measure is as effective as a (g) guidance measure should be comparable in scope and
            depth to that provided in EPA'S (g) guidance. States must support the evaluation of
            alternative management measures with appropriate technical documentation. Although
            sources such as "refereed" technical journals are preferred, other publications, such as
            Federal and state technical guides, are acceptable. Fliers, fact sheets, and other general
            public materials generally are not adequate sources of information without additional
            supporting information.






                                                         16






                                                           Program Development and Approval Guidance



             In addition, or as an alternative to relying on written studies, the state may wish to
             convene a technical review group consisting of experts knowledgeable in the subject area
             covered by the management measure. This may be especially useful where the state is
             interested in pursuing innovative approaches. The technical review group should provide
             a report describing the evaluation procedure that was used to assess the effectiveness of
             the alternative management measure. The report should be submitted to NOAA and
             EPA as part of the program review process. EPA and NOAA will, at the state's
             request, consider proposed alternative management measures during the threshold review
             process and/or approval process discussed in section IV.


             Innovative Market-Oriented Incentive Mechanisms

             EPA and NOAA are interested in encouraging states to propose innovative market-
             oriented incentive mechanisms to implement the (g) measures or alternative management
             measures at lower costs. An important example of incentive mechanisms that could
             serve to lower substantially the costs of obtaining a given level of loadings reductions is
             the trading of pollution reduction credits.

             Trading programs are proving to be a successful and cost-effective approach under
             the Clean Air Act for reducing air pollutant emissions. Several case studies in
             North Carolina, Colorado, and Wisconsin show that the trading of pollution credits
             holds considerable promise for reducing water pollutant loadings as well, particularly
             nutrients. See Appendix H for short descriptions of these cases. Appendix H also
             presents several brief summaries of relevant technical publications. These publications
             indicate that pollutant trading programs may hold potential for achieving substantial
             cost savings while attaining pollution reductions equivalent to those established by the
             (g) measures guidance.

             Conceptually, sources with low control costs would make trading arrangements directly
             with sources facing high control costs. The low-cost sources would undertake additional
             abatement efforts in exchange for financial compensation from the high-cost sources.
             Sources with higher abatement costs would undertake less control efforts, while acquiring
             additional reductions from other lower cost sources. Increased loadings from the high-
             cost sources would be offset by the additional abatement efforts of low-cost sources, so
             that the total loadings would be the same as if no trading occurred. In this manner, the
             private incentives of polluters would be harnessed for public purposes. Thus, more
             pollution abatement would be undertaken where it was cheapest, and less would be
             undertaken where it was costly, reducing the overall cost while achieving the same overall
             level of control. Such a trading scheme can minimize the total cost of achieving the
             required reduction in loadings.






                                                           17






             Coastal Nonpoint Program



             EPA and NOAA encourage states to propose innovative approaches such as the
             theoretical case outlined above and as described in Appendix H. Any such proposal, of
             course, must be consistent with the requirements of CZARA. At a minimum, in order
             for EPA and NOAA to approve a market-based proposal as achieving implementation of
             particular (g) measures, states would need to demonstrate that the proposal would result
             in expected pollutant reductions equalling or exceeding those that otherwise would be
             achieved in the same watershed if each participant separately implemented the (g)
             measures. Finally, as with the implementation of any management measure, a trading
             program would also need to meet the requirements for enforceable policies and
             mechanisms described in section III.H.

             States may consider trading schemes which involve trading of pollution credits among
             nonpoint and point sources as well as among nonpoint sources alone. States may also
             consider trading among sources inside and outside of the geographic area subject to the
             (g) measures guidance, as long as such sources are within the same watershed. States
             may also consider trading arrangements involving different pollutants (such as nutrients)
             with similar environmental effects, to the extent that the state demonstrates that any net
             environmental benefit is expected to result from the trading program. However, these
             trading schemes should take into account uncertainties such as those associated with
             measurements or predictions of pollutant loadings of a pollutant from the array of
             sources involved. States should consider whether trading ratios should be established to
             account for such uncertainties.


             The likelihood of success of trading programs can be increased if states carefully define
             the responsibilities of sources involved. Trading programs should provide assurance that
             the validity of trading agreements will be preserved. Trades between sources are most
             promising if they shift the responsibility for the agreed-to controls entirely from the buyer
             to the seller, who would then be subject to the enforceable policies and mechanisms
             referenced above. If buyers are required to adopt additional controls when sellers fail to
             implement agreed-to controls, then trading programs are less likely to succeed. Similarly,
             trades are most promising if they are based only on the validity of the agreement, and
             not on the success of the controls agreed to by the seller. Otherwise, the risks to buyers
             of trading -- that is, having to pay twice -- may prevent many trades and undermine the
             effectiveness of a trading program.

             EPA and NOAA encourage states to focus on minimizing the costs of transacting trades.
             Delays and uncertainty in arranging specific trades, as well as direct application fees, can
             serve to raise the costs of transacting trades, to hinder trades, and to lower the likelihood
             that such trades will reduce compliance costs. Similarly, arbitrary requirements that
             trades substantially reduce net expected pollutant loadings can serve to raise transaction
             costs and deter trades. Finally, states should establish guidelines for sources to follow in
             arranging trades. Such guidelines should help reduce unnecessary delays, avoid any later





                                                       18






                                                          Program Development and Approval Guidance



            invalidation of trades, and lower transaction costs by increasing the likelihood that trades
            will be approved in advance.

            When proposing a trading program to control nonpoint sources, a state would need to
            determine from EPA's (g) measures guidance and other sources the pollutant loading
            reductions that must be achieved from a group of sources within a watershed over a
            specified period, such as a season or a year. This establishes the baseline that the trade
            would need to achieve. For example, implementing the (g) guidance control measures
            on a dairy farm of given characteristics could be expected to reduce nutrient loadings by
            a certain amount. Each source would be required to reduce loadings by the necessary
            amount, by implementing controls on-site, or off-site through appropriate trading
            arrangements. Sources that believe their costs of achieving the necessary loading
            reductions are high could finance incremental controls at other sources with lower costs,
            expecting such trades to be approved. Compliance would be ascertained through
            demonstration that the necessary loadings reductions are achieved either on-site by
            implementing control measures, or off-site through appropriate trading arrangements,
            consistent with enforceable policies and mechanisms established elsewhere by the state in
            its coastal nonpoint program.


            Multiple Management Measures

            Section 6217(g)(5) of CZARA requires that management measures be economically
            achievable. In its economic achievability analysis, EPA estimated costs of selected
            combinations of multiple management measures applicable to sources. EPA focused its
            analysis on those cases which it believes are most likely to occur. Multiple measures
            which EPA concluded are economically achievable include (1) erosion control, confined
            animal feedlots, and grazing management measures, (2) combination of all forestry
            measures, (3) new development requirements such as stormwater, erosion and sediment
            control, and septic tanks, (4) all marina requirements; and (5) municipality requirements
            such as stormwater, erosion and sediment control, bridge maintenance, salt storage, street
            sweeping, wetlands protection, stream stabilization, and dam-related expenses.

            EPA and NOAA recognize that it is impossible to determine economic achievability for
            all possible combinations of management measures. For example, a dairy farm might be
            responsible for control of discharge from animal feedlots, grazing, erosion, streambank
            stabilization, and wetlands preservation. In this case, EPA has found that a combination
            of management measures for erosion, feedlots and grazing are economically achievable,
            but not in combination with wetlands protection and streambank stabilization. In
            situations where EPA has not considered a specific combination of management
            measures in its economic achievability analysis, states may be granted flexibility to re-
            examine whether a particular combination of multiple management measures is
            economically achievable for a group of sources. If, in its program submission or in




                                                          19






             Coastal Nonpoint Program



             subsequent revisions, a state finds that EPA did not consider the economic achievability
             of multiple management measures that apply to a group of sources when added together,
             the state may propose a fresh determination of management measures applicable to that
             group of sources. When making these determinations, states will need to meet the
             requirements of CZARA, including section 6217(g), which defines management measures
             as reflecting the greatest degree of pollutant reduction economically achievable. States
             may take into account direct and indirect costs and may consider incremental costs
             relative to incremental reductions in loadings.


                   III.C.3. Description of the implementation process and authorities

             For program approval, the state will need to provide detailed information on how it will
             ensure implementation of the management measures in conformity with the (g) guidance.
             This information should be provided for each nonpoint source category or subcategory as
             identified in section III.C.1.


             At a minimum, for each category and subcategory, the state coastal nonpoint
             program will:

                   a. Describe the scope, structure, and coverage of the state implementation
                   program.

                   b. Describe the organization, structure and authorities of the state or local agency
                   or agencies that will have responsibility for administering the implementation
                   program, including:

                          L an identification of the designated lead agency for the program
                          addressing each category or subcategory. If the designated lead agency is
                          not the section 319 or coastal zone management agency, the description
                          must specify how the lead agency and its authorities have been
                          incorporated into the coastal nonpoint program.

                          I a description of how the lead agency expects to implement the program
                          including, for example, the number of staff and general responsibilities, cost
                          of the program and potential funding sources.

                   c. Include a schedule for each nonpoint source category or subcategory with
                   milestones for achieving full implementation of the management measures within
                   three years as described in section IV.D.

                   d. Identify enforceable policies and mechanisms to ensure that each management
                   measure identified in the coastal nonpoint program is implemented in accordance




                                                       20






                                                      Program Development and Approval Guidance



                  with section III.H. of this guidance. States must submit copies of the appropriate
                  legislative and administrative documents to demonstrate that authorities exist to
                  support implementation of the management measures. Furthermore, if the
                  enforcement authority will not be exercised directly by the state coastal zone
                  management or section 319 agency, the state coastal nonpoint program must
                  include provisions to ensure that the governmental body with the statutory
                  authority exercises that authority as set forth in the state's coastal nonpoint
                  program. States must submit documentation such as memoranda of
                  understanding, executive orders or administrative directives which embody
                  agreements to ensure this conformity. These authorities must be incorporated
                  into the coastal nonpoint program.

                  e. Describe mechanisms to improve coordination among state agencies and
                  among state and local officials responsible for land use programs and permitting,
                  water quality permitting and enforcement, habitat protection, and public health
                  and safety as required by section 6217(b)(6). States will need to include copies of
                  any memoranda of agreement or provisions for joint project review.
                  (See discussion in section III.G.)

                  E Describe a process to identify practices to achieve the management measures.

                  g. Describe activities to ensure continuing performance and long term
                  effectiveness of the measure through proper operation and maintenance. States
                  should follow the operation and maintenance programs described in the (g)
                  guidance or, where the state has developed its own measures, describe the
                  operation and maintenance requirements for the alternative measures. Activities
                  to monitor implementation and enforcement should include a program for the
                  comprehensive survey of sources that are required to implement the management
                  measure, and a program for periodic inspections of sources.

                  h. Describe state activities to monitor the effectiveness of the (g) measures based
                  on accepted water quality monitoring protocols such as those described in Chapter
                  8 of the (g) guidance.

           States may meet any of these requirements by: (1) identifying existing program activities
           currently being implemented effectively under state coastal zone management programs,
           state nonpoint source management programs, or by other state programs; (2) providing
           the information discussed above for the existing programs; (3) developing new
           enforceable policies, as necessary; and (4) incorporating these programs into the new
           coastal nonpoint program.







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              Coastal Nonpoint Program



              III.D. Requirements for Implementation of Additional Management Measures

              For program approval, state coastal nonpoint programs must provide for the
              implementation of "additional management measures" where coastal water quality is
              impaired or threatened even after the implementation of the management measures
              specified in the (g) guidance. See Section 6217(b)." These additional measures apply
              both to existing land and water uses that are found to cause or contribute to water
              quality impairment and to new or substantially expanding land uses within critical coastal
              areas adjacent to impaired or threatened coastal waters. Specific statutory requirements
              for implementation of additional management measures can be found in sections
              6217(b)(1), (2) and (3) of CZARA.

              As described by the amendment's sponsor in a floor statement on CZARA the
              additional management measures provide a "second tier of pollution control efforts" and
              "are targeted to those coastal land uses that are recognized to cause or contribute to
              water quality problems generally." See 136 Cong. Rec. E. 3590, October 27, 1990. In
              addition, the legislative history describes the additional management measures provision
              as also requiring "the identification of important coastal areas as contrasted to
              individual land uses under paragraph (1) [section 6217(b)(1)]    that need additional
              measures to protect against anticipated pollution problems. Unlike paragraph (1), the
              imposition of additional measures are not contingent upon identified water quality
              problems, and are to be established as a preventative step to avoid water quality
              problems that might otherwise develop." Id.

              For program approval, states will need to do the following:

                     1. identify coastal waters that are not attaining or maintaining applicable
                     water quality standards or protecting designated uses, or that are threatened
                     by reasonably foreseeable increases in pollution loadings from new or
                     expanding sources;

                     2. identify land uses that individually or cumulatively cause or threaten water
                     quality impairments in those coastal waters;

                     3. identify critical coastal areas;

                     4. develop a process for determining whether additional measures are necessary
                     to attain or maintain water quality standards in the waters identified above;




                     For purposes of section 6217(b), the definitions for water quality standards and designated uses are
                     those found in section 303 of the Clean Water Act and in 40 C.F.R. Part 131.





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                                                        Program Development and Approval Guidance



                   5. describe the additional management measures the state will apply to the
                   identified land uses and critical coastal areas; and,

                   6. develop a program to ensure implementation of the additional management
                   measures within the time frame described in section IV.D.


            These elements are discussed in greater detail in the following sections.


                   IH.D.1. Identification of coastal waters that are not attaining or         9
                            water quality standards

            For program approval, states must, at a minimum, identify the following as threatened or
            impaired waters:

                   a. coastal waters identified in a state's most recent report under section
                   305(b) of the CWA as "partially meeting" or "not meeting" designated uses or
                   as "threatened";

                   b. coastal waters listed by a state in accordance with the requirements of section
                   303(d)(1)(a) of the CWA requiring Total Maximum Daily Load calculations if
                   listing is due at least in part to nonpoint sources;

                   c. coastal waters listed by a state under CWA section 304(l) as impaired by
                   nonpoint source pollution;

                   d. coastal waters identified by a state as impaired or threatened by nonpoint
                   source pollution in an assessment submitted to EPA under section 319 of the
                   CWA or in any updates of the assessment.

            States should also consider the results of water quality monitoring associated with
            assessing the effectiveness of the (g) measures in attaining and maintaining water quality
            standards when identifying impaired or threatened waters.

            States should also identify coastal waters for which existing dilution calculations or
            predictive models indicate nonattainment of water quality standards. Other organizations
            and groups should be actively solicited for research they may be conducting or reporting.
            For example, volunteer monitoring organizations, university researchers, the USDA,
            NOAX USGS, and the U.S. Fish and Wildlife Services and a wide variety of state
            agencies can be good sources of field data. In addition, states should examine waters for
            which coastal water quality problems have been reported to the state by local, state or
            Federal agencies, members of the public, or academic institutions.





                                                        23






              Coastal Nonpoint Program



              States should use the most current data available, including information generated in
              evaluating the effectiveness of the (g) measures, and must describe the validity of the
              data used to determine threatened or impaired waters. States should consider the
              following in evaluating the validity of the data:

                    a. whether the assessments are based on monitored or evaluated data;

                    b. the limit!*on the availability of water quality information for coastal wetlands,
                    estuaries and groundwater resources that affect coastal waters; and,

                    c. the difference between each coastal waterbody's current condition and the
                    condition needed to support the designated uses that the state has identified in its
                    water quality standards. (See Appendix F for examples of designated uses and
                    support levels).

              NOAA and EPA require each state to identify its impaired and threatened coastal waters
              in order to evaluate both the adequacy of the state's identification of land uses required
              by section 6217(b)(1) and the critical coastal areas required by section 6217(b)(2), and
              the adequacy of its determination that additional management measures need to be
              implemented. As part of the threshold review process (see section MR), NOAA and
              EPA will work with the state to evaluate the state's water quality information. If the
              information is incomplete, the state may be asked to develop reasonable additional
              information on water quality impairments. States are encouraged to complete water
              quality assessments for coastal waters and estuaries. In addition, states are encouraged
              to adopt water quality standards for marine waters and for common nonpoint source
              pollutants such as nutrients.


                    IH.D.2- Identification of land uses causing or threatening water
                             quality impairments

              Once threatened and impaired coastal waters have been identified, as described in
              section III.D.1, states must then identify those land uses that individually or cumulatively
              cause or contribute to coastal water quality impairments. The land uses should include
              the general nonpoint sources categories and subcategories described in the (g) guidance
              and other land uses not mentioned in the (g) guidance that are or may be sources of
              runoff and infiltration to coastal waters such as landfills and certain mining operations.
              States should use the most current land use information available (local and state land
              use maps, Geographic Information Systems, etc.) to identify these land uses. NOAA and
              EPA encourage states to use maps to display identified land uses.

              Water quality impacts may occur where a land use involves: (1) substantial disturbance to
              the land or water resource; (2) substantial treatment, introduction, or creation of a




                                                        24







                                                        Program Development and Approval Guidance



            nonpoint source pollutant; or (3) a substantial temporary or permanent change to the
            hydrology or other natural characteristics of a land area or water resource.

            Once general land use patterns and potential water quality impacts have been identified,
            states should consider more specific land use characteristics to help determine whether
            current or future uses are likely to cause or contribute to water quality impairments.
            State should consider the biological and physical impacts of these land uses within the
            watershed adjacent to the impaired or threatened waterbody or segment. States should
            consider physical characteristics such as: topography/slope; soil characteristics
            (erodibility, etc.); shoreline erosion characteristics; hydrology, in particular groundwater
            linkages to coastal waters and high water tables; and the presence of forest and other
            vegetated areas that may provide natural buffers or nutrient sinks. States should also
            consider habitat and other biological impacts that may be caused by specific land uses.

            The preferred source of information on the relationship between land uses and water
            quality is "refereed" technical journals. However, other sources often will be needed
            to fill gaps caused by a shortage of information relating land use to nonpoint source
            impacts. Additional sources could include Federal and state publications, generally
            accepted models (e.g., loading coefficients), and similar information. Sources used
            by the state in identifying and evaluating the land uses should be cited in its coastal
            nonpoint program.


                   DELD.3. Identification of critical coastal areas


            For program approval, a state must also identify and map critical coastal areas -- as
            contrasted to individual uses identified under paragraph (1) of section 6217(b) -- that
            need additional measures to protect against current and anticipated nonpoint pollution
            problems. See section 6217(b)(2). The establishment of critical coastal areas should
            focus on those areas in which new or substantially expanding land uses may cause or
            contribute to the impairment of coastal water quality.

            States have flexibility in their approach to delineating critical coastal areas.
            The following two examples illustrate approaches for the establishment of critical
            coastal areas.


            Under the first approach, a state could establish the critical coastal area as a strip of land
            along the portion(s) of the shoreline adjacent to threatened or impaired coastal waters.
            Some states have programs that specify a land area along the shoreline of a waterbody
            and that extend inland a uniform distance from the shoreline or from landward
            boundaries of wetlands or heads of tides. Within this area, special controls such as
            setbacks and low density zoning can be employed to protect coastal waters.





                                                        25







              Coastal Nonpoint Program



              In establishing a critical coastal area along the shoreline, a state may omit areas where
              recent water quality assessments demonstrate that the coastal waterbody is neither
              impaired nor threatened, and where a state can demonstrate that new land uses or
              expansions of existing land uses will not contribute to a future threat or impairment of
              the waterbody. For example, shoreline segments could be omitted if- (1) a state can
              demonstrate that its coastal area is predominantly in Federal or state conservancy, the
              use of which will not threaten coastal water quality, and that changing or expanding land
              uses are not a concern; or (2) existing ordinances for an adjacent area effectively manage
              new or expanding land uses (e.g., by controlling the extent of impervious surfaces and/or
              the density of development along the coastal waters).

              Under a second approach, a state could rely on site specific evaluations to determine the
              extent of a critical coastal area. The critical coastal area could be established on an
              ecosystem basis for the impaired or threatened coastal waters.12 Under this approach,
              states may include broader geographic areas in the critical area designation, starting with
              shoreline segments adjacent to threatened or impaired coastal waters, and extending
              inland to encompass significant coastal features or resources further inland. These
              broader areas may include entire watersheds or portions of watersheds adjacent to
              coastal waters, and may encompass significant biological features such as wetlands.

              In selecting an approach, states should consider the following factors:

                     0      The nature of the coastal water quality problem(s) caused by
                            nonpoint sources.

                     M      The extent to which the nonpoint sources are located adjacent to the
                            waterbodies as opposed to further inland.

                     0      The physical and biological characteristics of the adjacent lands, such as
                            those described in the previous section on land use, that will affect the
                            extent to which uses of these lands will cause nonpoint source pollution
                            problems. (See section III.D.2.).

                     0      Important biological features that should be included as a whole in critical
                            coastal areas, e.g. wetlands.

                     N      The type(s), density and characteristics of the new or expanding land uses
                            that are anticipated and their expected effect(s) on water quality.





                 12 Ecosystem is defined as a biological community whose environment functions as an ecological unit.



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                                                            Program Development and Approval Guidance



                      0     The extent to which the above effects can be prevented or reduced by
                            implementation of (g) management measures and/or the additional
                            management measures for land uses.

              NOAA and EPA also encourage states to consider including other previously designated
              areas within the critical coastal areas under this program. Such areas may include: areas
              of particular concern designated as part of state coastal zone management programs;
              National Estuarine Research Reserves; National Marine Sanctuaries; and, significant
              watershed areas within National Estuaries designated by EPA under section 320 of the
              CWA. NOAA and EPA expect that this approach will help to fully integrate and
              coordinate this new coastal nonpoint program with other existing programs.


                      IH.D.4. Process to implement additional management measures

              Once the land uses and critical coastal areas, described above, have been identified,
              states must describe additional management measures applicable to those land uses and
              areas in order to address the sources of nonpoint pollution. See section 6217(b)(3).
              States will also need to develop a continuing process, including milestones, for
              implementing, evaluating and, as necessary, revising the additional measures.

              NOAA and EPA expect that it may be necessary for a state to provide for the
              implementation of some additional management measures immediately and others only if
              implementation of the (g) measures are shown to be insufficient to protect and restore
              water quality. The two categories of additional management measures are:

                      1. Immediate Implementation: For the waterbodies identified in section III.D.1.,
                      states should evaluate the relative contributions from point and nonpoint sources.
                      Where a threat or impairment of a particular water or waterbody segment is due
                      to nonpoint sources, the state should determine whether existing pollution
                      prevention activities and/or the implementation of the (g) measures will be
                      adequate to address the threat or impairment. If existing information indicates
                      that the implementation of the (g) measures will not be adequate to attain or
                      maintain water quality standards of the coastal waters or waterbody segment due
                      to contributions from nonpoint sources, then the state program must specify, at
                      the time of program submission, additional management measures applicable to
                      the appropriate land uses and critical coastal areas. Implementation of these
                      additional measures should begin at the time program approval is granted. Two
                      instances where additional management measures are most likely to be needed
                      immediately are: (1) where the (g) measures (or their equivalents) are already
                      being implemented under existing nonpoint source programs but water quality is
                      still impaired due to identifiable nonpoint sources; and (2) where states have
                      identified critical coastal areas pursuant to the description in III.D.3. because new




                                                            27






            Coastal Nonpoint Program



                   or expanding land uses threaten or impair coastal waters notwithstanding existing
                   nonpoint source controls.

                   2. Implementation based on performance of (g) measures: States should also
                   specify a continuing process for identifying, implementing, and revising, as
                   necessary, additional management measures after the program's (g) measures have
                   been implemented. As the (g) measures are implemented, the states should
                   monitor their effectiveness and should verify whether water quality standards are
                   being attained or maintained and designated uses protected. If a state determines
                   that nonpoint sources contribute in whole or in part to water quality impairment
                   even after implementation of the (g) measures, then the state will need to provide
                   for the implementation of additional management measures. As discussed in
                   section IV.D. (Schedule for Program Implementation), additional measures under
                   these circumstances must be fully implemented within eight years of Federal
                   approval of the coastal nonpoint program. The additional management measures
                   also must be monitored to assess their effectiveness in attaining and maintaining
                   water quality standards and protecting designated uses. Further refinements to
                   these management measures, the use of other additional measures, or
                   enforcement action may be necessary if water quality goals are still not met.


                   III.D.5. Selection of additional management measures

            Having determined the need for additional management measures under III.D.4., states
            will then need to select the additional measures to be implemented. Like the (g)
            measures, these measures can include a broad range of structural and nonstructural
            nonpoint source controls. Unlike the (g) measures, the additional measures need not
            apply to all similar land uses throughout the 6217 management area. Rather, the
            additional management measures apply only to those identified land uses and critical
            coastal areas where further nonpoint source controls are necessary to ensure that coastal
            water quality standards are attained or maintained and designated uses are protected.

            For program approval, states are expected to provide the following information on the
            additional management measures that will be implemented:

                   a. a discussion of the measure and the land uses and pollutants it is designed
                   to address;

                   b. evidence of the anticipated effectiveness of the measure in reducing nonpoint
                   pollution to meet water quality standards; and,







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                                                                     Program Development and Approval Guidance



                         c. a process for evaluating the effectiveness of the measures once they are
                         implemented, and a schedule for revising such measures, as necessary, to meet
                         water quality standards.    13

                A number of alternatives are available to states in selecting the additional
                management measures.

                         m States can select management measures not specified in the (g) guidance.
                         Under this, alternative, states or local governments could develop very specific
                         additional management measures that could include buffer zones, low density
                         zoning, cluster development ordinances, conservation zoning, or other land use
                         measures best developed at the local level.

                         n States can apply the measures specified in the (g) guidance more
                         intensively (e.g., require a wider stream-side management area for certain
                         forestry operations than that necessary to achieve the (g) guidance measures
                         for stream-side management).

                         m States can apply the measure specified in the (g) guidance more stringently
                         (e.g., require a higher removal rate for suspended solids for new urban
                         development than that specified in the (g) guidance measure).

                         n States can provide management measures for land and water uses not
                         identified in the (g) guidance, or for sources excluded under the process
                         described in section III.C.1.


                         n States can employ innovative approaches as additional management measures.
                         For example, where there is adequate information, states could consider the use of
                         pollution trading for discharges from nonpoint and point sources or among
                         nonpoint sources in watersheds in order to attain or maintain water quality
                         standards in coastal waters and to protect designated uses.

                Given the focused nature of additional management measures and the opportunity
                to tailor the measures to local conditions, the requirement provides an excellent
                opportunity to use local land use measures to control nonpoint source pollution. Thus
                states are encouraged to work closely with local governments to develop and implement
                these measures.




                    13 EPA and NOAA will establish a schedule for evaluating the need for management measures revision,
                         which may be tied to 305(b) biennial water quality assessments. If these assessments indicate that
                         water quality is not improving, the additional management measures already in place will need to be
                         revised.






                                                                     29






             Coastal Nonpoint Program



                    M.D.6. Using Innovative Pollutant Trading Techniques

             One innovative approach that states could consider as they develop additional
             management measures is pollutant trading. Pollutant trading is a concept that
             enables one or more sources to meet less stringent treatment levels in exchange for
             other sources meeting more stringent treatment levels than the levels they would
             otherwise be required to meet. In appropriate situations, trading can result in more
             cost-effective pollutant control.

             There are two types of nonpoint source trades that are possible:

                    (1) Point-nonpoint source trading. A point source that has complied with its
                    technology-based requirements may be able to avoid or lessen more stringent
                    water-quality-based treatment requirements by obtaining the requisite (water-
                    quality driven) reductions from nonpoint sources.

                    (2) Nonpoint-nonpoint source trading. A nonpoint source may apply more
                    stringent treatment than another one, and together the sources obtain the
                    requisite reductions.

             Pollutant trading, to date, has been used only sparingly under the Clean Water Act.
             Point-nonpoint trades have been approved in the Dillon Reservoir, Colorado (for
             phosphorus) and for North Carolina's Tar-Pamlico watershed (for nitrogen).

             The following factors, developed at a recent EPA conference on pollutant trading, should
             be considered before considering the use of trading techniques  14:

                    1. Trading is a potentially valuable tool, but its usefulness has not been
                    fully demonstrated.

                    2. Trading cannot be applied uniformly nationwide; it is site-specific and
                    local in nature.


                    3. Cause and effect water quality data, improved predictive modeling, and
                    definitive information on nonpoint source control effectiveness are all crucial
                    technical elements for trading.

                    4. Education and monitoring are both essential to the success of any
                    trading program.



               14   A summary of that conference, "Administrator's Point/Nonpoint Source Trading Initiative Meetingn
                    (August 1992) is available from EPA.




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                                                             Program Development and Approval Guidance



               Despite the formidable technical and administrative difficulties, EPA and NOAA
               continue to believe that trading offers some potential water quality benefits and will work
               to help state and local governments identify opportunities for beneficial trades and to
               implement such trades.


               1H.E. Technical Assistance

               For program approval, state coastal nonpoint programs will be required to provide for
               technical and other assistance to local governments and the public for implementing the
               additional management measures (section 6217(b)(4)). This may include "assistance in
               developing ordinances and regulations, technical guidance, and modeling to predict and
               assess the effectiveness of such measures, training, financial incentives, demonstration
               projects, and other innovations to protect coastal water quality and designated uses."
               States are also encouraged to provide assistance to local governments and the public on
               the implementation of the (g) measures.

               In order to tailor the type and scale of their technical assistance activities, states should
               identify those aspects of the program requiring implementation at the regional or local
               level and the situations where regional entities or localities may need additional expertise
               and/or experience. In designing the assistance program, NOAA and EPA expect that
               states will consult with regional and local governments regarding their concerns about
               implementation, and with the public about its needs and concerns. For certain
               management measures, training sessions and certification programs conducted by the
               state for regional and local officials may be appropriate. For others the financing of
               demonstration projects may be an effective means of enhancing implementation. NOAA
               and EPA will provide support to states in the implementation of this technical assistance,
               as requested.

               The statute states that technical and other assistance shall be provided to the public as
               well as to local governments. 'ne technical assistance to the public should include help
               in solving individual problems and information on how citizen groups can participate in
               the development and implementation of state programs (e.g., monitoring).

               At a minimum, the state coastal nonpoint program should discuss the types of technical
               assistance that will be provided to support implementation of additional management
               measures for each of the major land use categories identified in a state's program. States
               should identify the agency that will provide the technical assistance, the intended
               recipients of the assistance, and a schedule of when such assistance will be available.

               NOAA and EPA are committed to providing technical assistance to the states in the
               development and implementation of their coastal nonpoint programs. EPA has
               assembled a great deal of technical information during development of the (g) guidance,




                                                             31






             Coastal Nonpoint Program



             and is continuing to add to this collection. This information will be available to the states
             in a variety of formats, including bibliographies and summaries, both in hard copy and by
             electronic bulletin board. NOAA and EPA will hold a series of national and regional
             meetings with state and local officials to discuss their technical assistance needs.
             Throughout the development and implementation of the coastal nonpoint programs,
             NOAA and EPA will maintain a dialogue with the states and will provide technical
             assistance whenever possible. NOAA and EPA will also work with other Federal
             agencies and will encourage them to use their expertise to assist the states in the
             development and implementation of the state programs.


             M.F. Public Participation

             For program approval, states must provide opportunities for public participation in all
             aspects of the program (section 6217(b)(5)). Congress intended the public to have the
             opportunity to be extensively involved in the development and implementation of the
             state coastal nonpoint programs, calling not only for public participation, but also for
             public education.

             As an integral part of the coastal nonpoint program, the goals of the public involvement
             and education program should be defined by the state before it begin's to develop its
             coastal nonpoint program. The public will need to be involved as early as possible in the
             development and implementation of the coastal nonpoint program, and the process
             should seek to promote and maintain the public's long-term commitment to the program.
             Each state must demonstrate that its coastal nonpoint program has undergone public
             review and comment prior to submittal to NOAA and EPA. Specifically, a state will
             need to demonstrate that it has provided opportunities for public comment prior to
             determining which management measures will be used, what enforceable policies and
             mechanisms should be employed to ensure implementation of the identified measures,
             the geographic scope of the coastal nonpoint program, the identification of land uses and
             critical coastal areas, and the selection and implementation of additional management
             measures. Depending on the type of threshold review a state selects, there may also
             need to be public participation as part of that process (see section W.B.).

             The public involvement and education program should include a schedule for initial
             public contact and education activities, and milestones for further involvement throughout
             the development and implementation of the coastal nonpoint program. These milestones
             will need to address public participation, particularly in the development phase, and
             public education, particularly in the implementation phase. The coastal nonpoint
             program should also describe how the state expects to fund the public involvement and
             education programs, including both program development and implementation activities
             (e.g., Federal funds, state and local funds, or the innovative use of private sector dollars).





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                                                         Program Development and Approval Guidance



              As part of the public participation and education programs, states should describe how
              they will periodically evaluate the effectiveness of these programs.

              Public education programs are expected to target several types of audiences, including
              those regulated or affected by the program (e.g., farmers, building contractors, and
              marina operators) and those that can assist with program implementation (e.g.,
              conservation organizations and county extension agents). In the implementation phase of
              the coastal nonpoint program, volunteers may be a very valuable source of assistance.
              For example, Federal and state funds often are limited for water quality monitoring
              programs, but volunteers can help to fill the gap. While clearly supplemental to
              professional data collection, a number of states have successfully used volunteers in their
              programs. Although costs will be incurred for training volunteers and supporting staff
              time to coordinate the volunteer efforts, studies and reports demonstrate that volunteers
              can effectively provide accurate, useful long-term water quality monitoring data.


              HI.G. Administrative Coordination


              For program approval, the coastal nonpoint program must include administrative
              coordination mechanisms (section 6217(b)(6)). At a minimum, the coastal nonpoint
              program must include a list of state, regional and local agencies that will play a role in
              developing and implementing the state nonpoint program. The list should describe the
              mission, structure and operation of the agencies as they relate to nonpoint source
              pollution control, and identify the specific role to be played by each agency in the coastal
              nonpoint program.

              A variety of mechanisms can be used to improve coordination among the agencies
              involved in the coastal nonpoint program and to ensure that the various programs are
              fulfilling their responsibilities to implement the applicable provisions of the program.
              These mechanisms include, but are not limited to:

                       n   Memoranda of Agreement/Understanding describing specific agency roles
                           and points of coordination

                       m   Joint permitting processes

                       m   Formal interagency comments during other agencies' permitting processes

                       m   Cross training of staff in other agencies' programs

                       n   Temporary assignment of staff to other agencies, e.g., Intergovernmental
                           Personnel Agreements





                                                         33






           Coastal Nonpoint Program



                    ï¿½   Interagency task forces (e.g., those associated with national
                        estuary programs)

                    ï¿½   Interagency advisory committees

                    ï¿½   Regularly scheduled interagency staff meetings

                    ï¿½   State statutes/regulations describing expectations for interagency
                        cooperation and coordination

           The mechanisms selected to ensure coordination among participating agencies should be
           in place when the coastal nonpoint program is submitted to NOAA and EPA for review
           and approval. The coastal nonpoint program should also explain how the state will
           measure the effectiveness of program coordination and should provide a schedule for
           periodic evaluation and reporting of the results to NOAA and EPA.

           NOAA and EPA will work with other Federal agencies at the national level to ensure
           .their understanding and cooperation in the development of the coastal nonpoint
           programs. NOAA and EPA will also work to assist in resolving conflicts that may occur
           between states and Federal agencies during the development and implementation of the
           state coastal nonpoint program.


           lH.H. Enforceable Policies and Mechanisms


           Section 306(d)(16) of the CZMA states that, "[b]efore approving a management
           program submitted by a coastal state, the Secretary shall find the following: ... [t]he
           management program contains enforceable policies and mechanisms to implement the
           applicable requirements of the Coastal Nonpoint Pollution Control Program of the
           State required by section 6217 of the Coastal Zone Act Reauthorization Amendments
           of 1990." The Act further provides that, "[e]ach State which submits a management
           program for approval under section 306 of the Coastal Zone Management Act of
           1972, as amended by this subtitle (including a State which submitted a program before
           the date of enactment of this Act), shall demonstrate to the Secretary -- ... that the
           program complies with section 306(d)(16) of that Act by not later than 30 months
           after the date of publication of final guidance under section 6217(g) of this Act."

           The statute includes a definition of "enforceable policy" in section 304(6a) of the
           CZMA: "[t]he term "enforceable policy" means State policies which are legally binding
           through constitutional provisions, laws, regulations, land use plans, ordinances, or
           judicial or administrative decisions, by which a State exerts control over private and
           public land and water uses and natural resources in the coastal zone."





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                                                     Program Development and Approval Guidance



            NOAA interprets the term "applicable requirements" in section 306(d)(16) of the
            CZNIA to include the implementation, at a minimum, of. (1) management measures
            in conformity with the guidance developed under section 6217(g) in order to protect
            coastal waters generally, and (2) such additional management measures applicable to
            land uses and critical areas identified in the program as are necessary to maintain or
            restore coastal water quality and protect designated uses.

            States can design a coastal nonpoint program that uses a variety of effective regulatory
            and/or non-regulatory approaches in order to meet the requirement for enforceable
            policies and mechanisms. Non-regulatory approaches must be backed by enforceable
            state authority which ensures that the management measures will be implemented.
            States are expected to demonstrate that they have the authority to take enforcement
            actions where incentive or other programs do not result in implementation of
            management measures, or where significant harm to coastal waters is found or
            threatened. The selection and design of enforceable policies can be tailored to
            specific state or local circumstances. The approaches states choose should take into
            account the nature of the activity and existing institutions and authorities. States may
            also want to evaluate the costs and benefits of various approaches. States may include
            existing and/or new enforceable polices and mechanisms in their coastal nonpoint
            programs. Whatever enforceable policies and mechanisms a state uses, they must
            meet the threshold test in section 306(d)(16) of ensuring implementation of the
            applicable requirements, (e.g., management measures as described above).

            Enforceable policies may be established through state, regional or local authorities.
            Where implementation occurs at the regional or local levels, the state must be able to
            exert or retain authority to ensure local implementation in accordance with the
            federally approved coastal nonpoint program.

            As reflected in the section 6217(g) management measures guidance, a state may need
            to develop different approaches or requirements for new and existing sources. For
            "ample, the (g) guidance spe*cifies separate management measures for the installation
            of new onsite disposal systems and for the operation of existing onsite disposal
            systems. States may want to consider these differences in designing enforceable
            policies and mechanisms for implementing the various management measures to
            restore and protect coastal waters.

            To ensure the effective implementation of the enforceable policies and mechanisms,
            states should educate the public about the importance of the m--n-agement measures
            and should provide technical assistance to local governments and the affected
            interests. While public education and technical assistance programs alone may not be
            used to fulfill the requirement for enforceable policies and mechanisms (except as
            noted below), these programs can enhance the success of both regulatory and
            non-regulatory programs.




                                                   35






             Coastal Nonpoint Program



             Although the (g) guidance includes educational programs as practices under a number
             of management measures, only the measures for urban pollution prevention and
             marina public education require educational programs as part of the management
             measures itself. For these measures, a demonstration that the state will conduct
             educational activities will be adequate, and, therefore the state programs need not
             include enforceable policies and mechanisms for these two measures.

             Similarly, the guidance contains management measures which call for the state to
             promote the restoration of wetlands and riparian areas, and the use of engineered
             vegetated treatment systems such as constructed wetlands or filter strips. A
             demonstration that the state will promote these efforts will be adequate to respond,
             and the state will not be required to include enforceable policies and mechanisms in
             its coastal nonpoint program for these two measures.

             The next two subsections describe examples of the various approaches that a state
             might consider in developing enforceable policies and mechanisms. The presence in a
             state coastal nonpoint program of enforceable policies and mechanisms identical to
             the examples does not necessarily guarantee approval of these approaches because
             NOAA and EPA will need to evaluate a state's enforceable policies and mechanisms
             in the context of that state's complete coastal nonpoint program.


                    IH.H.I. Regulatory approaches

             One way to implement the requirement for enforceable policies and mechanisms in
             the coastal nonpoint program is the traditional regulatory approach. Examples of
             regulatory approaches include permit programs, local zoning, or direct requirements
             contained in state statutes.


             Permit program

             If a state chooses a permitting approach, it has flexibility in the type of permits it
             uses: individual and general. An individual permit is written for a specific entity.
             For example, states and localities can issue individual permits for onsite sewage
             disposal systems prior to home construction. These permits can require
             implementation of the management measures related to the siting, design, installation,
             operation, inspection, and maintenance of new systems. These permits also may be
             renewed periodically to ensure that the system continues to operate properly and/or is
             pumped out at specified intervals. Implementation of the management measures for
             the operation of onsite sewage disposal systems can be accomplished through these
             permit renewals. Other types of individual permits such as coastal development,
             building, or grading permits can be used to ensure that a number of the urban
             management measures are implemented.




                                                       36






                                                        Program Development and Approval Guidance



            A state can also issue general permits for specific source categories. These permits
            prescribe management measures that must be adopted by all entities that meet the
            category definition. The state would conduct an education program to notify the
            targeted entities that they must comply with the conditions of the general permit.
            Individual permits may be issued or penalties imposed for non-compliance.

            For example, a general permit can require farmers to adopt management measures
            for various facets of their operation: e.g., nutrient management, pesticide
            management, and livestock management. Farmers would choose site-specific
            management practices from technical guidance provided by the state.

            In another example, general permits are currently allowed for certain storm water
            discharges under section 402(p), e.g., construction activities. Persons engaged in
            construction activities would have to undertake certain sediment and erosion control
            practices as conditions of a general permit. If recipients of a general permit fail to
            meet conditions of the permit by not adopting the management measures, they may
            face enforcement actions or could be required to apply for an individual permit
            containing more detailed. management, reporting, and inspection requirements.

            Local zoning

            Many local governments already use zoning ordinances to set conditions on
            development. For example, local zoning ordinances may restrict the siting of marinas
            to protect sensitive areas such as shellfish beds, and could, therefore, be used to
            implement the management measures for marina siting. States could provide
            oversight of these local decisions by setting the standards by which the zoning
            ordinances are adopted and by retaining appeal of local decisions if they do not meet
            the state standards. In addition, local zoning may be an effective mechanism to
            implement additional management measures. For example, a state may direct local
            governments to adopt provisions restricting land uses in critical coastal areas to protect
            and restore water quality.

            Direct state statutory requirements

            A state may adopt laws that directly require or prohibit certain activities in certain
            areas as a way to implement some of the management measures. While not requiring
            a permit per se, state forest practices acts can require forest operators to maintain
            streamside management areas as part of their plans of operation. This mechanism
            could provide a way to implement a number of forestry management measures.








                                                      37






            Coastal Nonpoint Program



            Enforcement of Regulatory Approaches

            Enforcement under the regulatory approach could be triggered for failure to obtain or
            comply with a permit, zoning ordinance, or direct statutory requirement. Enforcement
            actions may include cease and desist orders, administrative orders, fines, or in certain
            cases, criminal penalties. Fines can be punitive or can be based on the economic
            benefit an entity gained from not implementing the management measures or the cost
            of restoring the environment from harm caused by the noncompliance. Enforcement
            may be triggered when inspections or monitoring programs show that operators are
            failing to implement the (g) measures or the additional management measures.


                   M.H.2. Non-regulatory approaches

            Although regulatory approaches may be well suited for certain nonpoint sources, they
            may be difficult to design and implement for other sources. In addition, efforts to
            control some nonpoint sources historically have relied almost solely on non-regulatory
            programs. Accordingly, a state has the flexibility to employ economic incentive,
            disincentive, or innovative approaches to address these types of sources, provided that
            the state can ensure such approaches will result in the necessary implementation of
            the (g) management measures and additional management measures. States will have
            to include back-up enforcement authority for voluntary programs. Such back-up
            authority could include sunset provisions for incentive programs. For example, a state
            could provide that if too few operators participate in a tax incentive program, the state
            would develop additional incentives or mandatory requirements to achieve the
            necessary implementation of management measures.

            Non-regulatory approaches may use financial mechanisms to encourage or discourage
            certain behaviors. State tax credits, tax deductions, tax rebates, cost-share programs,
            performance bonds, or loan programs are economic incentives that are often used to
            encourage changes in behavior. Economic disincentives include increased taxes, fees,
            or pricing structures. There are a variety of economic tools that states can use;
            however, each state should analyze the relative effectiveness of the tools in
            implementing the management measures before applying them in a given situation.

            Economic incentives


            State economic incentives can be used to provide financial support to guarantee
            implementation of some management measures. For example, as a condition of the
            receipt of state agricultural cost-share funds, farmers can be required to fully
            implement specific management measures (e.g., sediment and erosion control, nutrient
            management, pesticide management). Cost-share funds can also be used to ensure





                                                     38






                                                        Program Development and Approval Guidance



             that some of the forestry management measures are implemented (e.g., road
             construction/reconstruction, road management, revegetation of disturbed areas).

             State tax credits, deductions, or rebates could be granted or pricing structures created
             to encourage the adoption of water efficiency measures to implement urban
             management measures for onsite disposal systems (e.g., marginal cost water pricing to
             encourage conservation of water, installation of low-flow plumbing fixtures). States
             could set up grant or low interest loan programs to help individuals finance capital
             expenditures associated with management measures such as replacing failing onsite
             disposal systems, installing animal waste controls, stabilizing eroding shorelines using
             vegetative methods, or constructing pumpout facilities for marinas.

             Although economic incentive programs can be very effective in many cases, states
             should recognize their limitations. Incentive programs can be very expensive for a
             state to administer and implement, and state revenues will be required to support
             them. In addition, if such approaches are used alone, it may be difficult to establish
             the rate of cost-share or tax credits at a level that guarantees widespread adoption of
             the management measures. As a state raises the level of financial support, the costs
             of the incentive program will increase.

             Economic disincentives


             States can also develop economic disincentive programs to implement some
             management measures. Fees, taxes, or price increases on specific items can be used
             to reach the level specified in the management measures. For example, increased
             prices may be used to stimulate water conservation (or modifications to pricing
             structures that inadvertently encourage high consumption). Similarly, taxes or fees
             may be levied on products to discourage their inefficient use.

             States also should recognize the limitations on the effectiveness of disincentive
             programs. The success of these approaches depends on the level of the tax or fee
             relative to the price of the good. If a tax or fee is too high, it may change behavior
             more than is necessary to meet the management measure. If a tax or fee is too low, it
             may not change behavior sufficiently to adequately implement the management
             measures. However, a fee could be supplemented by other approaches to meet the
             measure. Despite these limitations, the use of mechanisms such as taxes and fees has
             the advantage of generating program revenues.

             Other innovative approaches

             States also may use more innovative approaches to encourage management measure
             implementation. Trading of pollution control requirements among point and nonpoint





                                                      39






           Coastal Nonpoint Program



           sources or among nonpoint sources may be a useful tool in implementing additional
           management measures to meet water quality standards in a particular waterbody.
           (See discussion in section III.D.6.)

           States may require that performance bonds be posted before an entity engages in an
           activity requiring management measure implementation. For example, prior to
           authorizing a channelization project, a state could require a developer to post a bond
           to ensure that proper design and construction activities occur. When the developer
           complies with the practices, the bond will be returned. If not, the bond will be
           forfeited to the state. Bonds can also be used to ensure that proper operation and
           maintenance activities occur.


           As mentioned earlier, states may enhance the success of these non-regulatory
           approaches through education programs. For example, as part of an existing pesticide
           applicators' licensing program, states may require that applicators be educated on
           management measures and appropriate practices and may require certification of
           course attendance.

           In conclusion, NOAA and EPA expect that states will employ a range of approaches
           in crafting enforceable policies and mechanisms to implement the (g) management
           measures and additional management measures. A state coastal nonpoint program
           should indicate clearly what approaches and authorities the state will rely on to meet
           the requirement for enforceable policies and mechanisms and should describe how the
           approaches will ensure the necessary implementation of the management measures.























                                                    40






                                                           Program Development and Approval Guidance



              IV. PROGRAM SUBMNSION, APPROVAL AND IMPLEMENTATION

              The legislative history of section 6217 states that "coastal nonpoint pollution control
              programs are not intended to supplant existing coastal zone management programs
              and nonpoint source management programs. Rather, they are to serve as an update
              and expansion of existing programs." Id. See also section 6217(a)(2). The legislative
              history indicates that the central purpose of section 6217 is to strengthen the links
              between Federal and state coastal zone management and water quality programs and
              to enhance state and local efforts to manage land use activities that degrade coastal
              waters and coastal habitats.

              The sections below describe several aspects of the approval process. States may elect
              to undertake "threshold reviews" with NOAA and EPA. Under certain circumstances,
              NOAA and EPA may grant "conditional approvals" for state coastal nonpoint
              programs. The last step in the process is "final approval" by NOAA and EPA. When
              a state coastal nonpoint program receives final approval, it will automatically be
              incorporated into the state's coastal management and nonpoint source programs.


              IVA Program Submission and NOAA/EPA Review

              Within 30 months after the publication of EPA's (g) guidance, states must submit their
              coastal nonpoint programs to NOAA and EPA for approval. Appendix G contains a
              listing of the information that needs to be included in the state's submission.

              The statute requires the Secretary of Commerce to make a determination whether
              the portions of the state's program under the Secretary's authority meet the
              requirements of section 6217, and likewise, the Administrator of the EPA must make
              a determination whether the portions under the Administrator's authority meet the
              requirements of section 6217. If both officials determine that the requirements
              of section 6217 have been met and each agency official concurs with the other's
              determination, then the program will be approved. As stated previously, NOAA
              and EPA have determined as a matter of policy that neither agency will approve a
              state's coastal nonpoint program until the program meets all the Federal approval
              requirements as determined by both agencies. NOAA and EPA (including both
              headquarters and regional offices) will coordinate their review of the coastal
              nonpoint program.


              IV.B. Threshold Review


              A state may request that NOAA and EPA conduct a threshold review of its proposed
              coastal nonpoint program. The threshold review is an initial review by NOAA and




                                                         41






            Coastal Nonpoint Program



            EPA of a state's approach to specific elements of its coastal nonpoint program. The
            review would address key issues and decision points (e.g., identification of sources,
            geographic scope, alternative management measures) that a state may wish to discuss
            prior to drafting its coastal nonpoint program. The intent of this early review is
            twofold. First, the process would allow the state, NOAA and EPA to discuss the
            state's approach to certain program elements before the state invests substantial
            resources in program development. Second, it would help states set priorities and
            focus early on the final program, particularly on elements, such as enforceable policies
            and mechanisms, that may take time to adopt. Threshold reviews may take the form
            of informal consultations or a more formal process. The requirements for each type
            of review are discussed below.


            Informal Review


            The first type of threshold review would be an informal consultation between a state
            and NOAA and EPA. The informal threshold review should occur as early in the
            program development process as is practical.

            A state would initiate the threshold review by developing a threshold review package
            that briefly describes how it expects to address the requirements for the coastal
            nonpoint program. NOAA and EPA will provide additional information for states to
            use in preparing for the threshold review.

            NOAA and EPA will review the information and will work with the state coastal and
            nonpoint agencies to refine the state's approach, as necessary. Public participation in
            an informal threshold review is not required; however, states may decide to involve the
            public in some aspects of the process.

            Formal Review


            States may wish to undertake a more formal review of specific program elements prior
            to submitting their final program. NOAA and EPA may issue preliminary findings on
            the approvability of elements of the program. The purpose of these findings would be
            to increase the predictability of the final review process, although these findings would
            still be subject to the outcome of review of the program in its entirety.

            As with the informal review, a more formal review is optional. However, if a state
            wishes to take advantage of this form of threshold review, it should submit, at 81
            minimum, the following information: a description of the portion(s) of the coastal
            nonpoint program which the state wishes to have reviewed, an analysis of how that
            portion(s) meets the program requirements, the specific management measures
            addressed by that portion(s) of the program, a description of opportunities for public





                                                      42






                                                         Program Development and Approval Guidance



             review and comment, and to the extent possible, how that portion(s) would fit in with
             and relate to the remainder of the program.

             Unlike the informal threshold review, the formal review process must include
             opportunities for public participation and review. Prior to seeking formal review, the
             state must provide a minimum period of 30 days in which the public is given the
             opportunity to review and comment upon all portions of the program being submitted
             to NOAA and EPA for their preliminary findings. The public notice for the review
             period must indicate that the state is seeking such findings from the Federal agencies
             on the specific portions of its coastal nonpoint program. It must also include a
             description of the submitted portions and how they address the 6217 requirements.
             NOAA and EPA also expect the state to consider any comments received prior to
             finalizing the submitted portion(s) of the program.

             NOAA and EPA will review the submissions and determine, as a preliminary matter,
             whether they meet the specified program requirements. NOAA and EPA will provide
             the state with written preliminary findings. Elements that have received preliminary
             findings would still be subject to the final approval process, including public
             participation, as part of the state's submission of its final coastal nonpoint program.


             W.C. Conditional Approvals

             States are expected to submit a coastal nonpoint pollution control program that meets
             all the requirements of section 6217 at the time of the statutory deadline for program
             submission. However, NOAA and EPA recognize that in limited situations, a state
             might submit a program for which all state enforceable policies and mechanisms
             necessary to implement the applicable program requirements are in place, but that will
             require further development of state, regional, or local authorities, or administrative
             mechanisms, to ensure close coordination with existing plans and,programs as required
             by 6217(a)(2). In other cases, a state might have a substantial majority of the required
             state enforceable policies and mechanisms in place, but need additional time to
             develop other state enforceable policies and mechanisms to ensure implementation of
             all applicable program requirements.

             In either situation, NOAA and EPA may elect to exercise their discretion and grant
             conditional approval of the state coastal nonpoint program. Final approval of the
             program would be conditioned upon the state's ability to demonstrate that all
             necessary enforceable policies and mechanisms are in place. It should be noted,
             however, that a conditional approval will not postpone the date by which NOAA and
             EPA expect full implementation of the (g) measures. As discussed in section IV.D.
             below, these measures are to be fully implemented within three years of the first
             Federal approval action regardless of whether that approval is final or conditional.




                                                       43






             Coastal Nonpoint Program



             Conditional approval of the program will be granted only in situations where the state
             can demonstrate its ability to ensure adoption of the necessary regulations or local
             ordinances or obtain state authorities for the remaining portions of the program.
             NOAA and EPA will consider the following factors in evaluating a state's submittal for
             conditional approval:

             N     Scope and significance of nonpoint sources addressed and the geographic
                   coverage for the enforceable policies and mechanisms already in place;

             0     Status of efforts to date to obtain the remaining enforceable policies and
                   mechanisms;

             0     The state's plan and reasonable timetable for obtaining the remaining
                   enforceable policies and mechanisms; and,

             0     The presence, in the submitted program, of enforceable policies and
                   mechanisms for additional management measures to be implemented
                   immediately to protect and improve coastal water quality.

             In cases in which NOAA and EPA grant conditional approval of a state's program, the
             state and local enforceable policies or mechanisms necessary to satisfy the conditions
             will be required to be adopted within one year from the date of conditional approval.
             Under very limited circumstances, NOAA and EPA may grant a state an additional
             year to obtain the required enforceable policies and mechanisms. If the state is able
             to satisfy the conditions within the required period, final approval of the program will
             be granted. Conditional approval does not alter the program implementation schedule
             described in section IV.D. below.


             If NOAA and EPA find that a state fails to submit an approvable program or fails to
             meet the conditions for full approval, both section 319 and section 306 funds will be
             withheld according to the schedule described below.


             IV.D. Schedule for Program Implementation

             NOAA and EPA expect states to fully implement management measures, including
             alternative measures in conformity with the measures specified in the (g) guidance,
             within three years of Federal approval of the program and to fully implement
             additional measures within eight years of that Federal approval.'5 That is, if state


               15  "Federal approval" as used in this section means the first Federal approval action, whether final or
                   conditional. For states receiving conditional approval, the implementation schedule begins to run at
                   the time that conditional, rather than final, approval is granted.




                                                      44






                                                         Program Development and Approval Guidance



            programs are submitted in July, 1995 and approved by NOAA and EPA in January,
            1996, the (g) measures must be fully implemented by January, 1999 and the additional
            measures by January, 2004. The period for implementation of additional measures
            includes a two year period for evaluating the implementation of the (g) measures and
            a three year period for implementing the additional management measures.

            Under the statute, the purpose of the states' coastal nonpoint programs is to protect
            and restore coastal waters. This purpose is advanced by establishing a schedule that
            requires management measure implementation as soon as possible. In addition,
            NOAA and EPA believe that states should begin implementing certain additional
            management measures at the time of program approval to ensure that the statutory
            goal of attaining and maintaining coastal water quality standards is achieved.
            However, it is recognized that it may be necessary to defer implementation of other
            additional management measures until the (g) measures are in place and their
            effectiveness is monitored. The statute also requires continuing revision of the
            additional management measures to ensure that water quality standards are met.

            For new sources, NOAA and EPA interpret full implementation to mean that new
            sources within each identified nonpoint source category or subcategory would be
            subject to the management measures at the time of Federal approval. Full
            implementation of management measures for existing sources (e.g., existing
            agricultural operations or existing urban development) means that each identified
            category and subcategory of existing sources is expected to implement the
            management measures to which they are subject not later than three years after
            Federal approval.

            The state coastal nonpoint program should include milestones established at
            appropriate intervals within the three year implementation period, by which progress
            toward full implementation can be assessed in terms of management measures in
            place and water quality protection achieved, This schedule should ensure that sources
            having the most significant impact on coastal waters are addressed first. NOAA and
            EPA will monitor progress of state implementation as part of program and grant
            reporting requirements under section 319 of the CWA, section 306 of the CZMA, and
            regular program evaluations under section 312 of the CZNIA. States not making
            satisfactory progress in meeting their milestones may be subject to loss of funds
            awarded under section 319, as well as to sanctions imposed under section 312 of
            the CZMA.


            State coastal nonpoint programs must also include a schedule and milestones for
            implementation of additional measures. Implementation of additional management
            measures for critical areas and for those land uses (sources) for which state authorities
            already require management measures in conformity with the (g) management





                                                        45






             Coastal Nonpoint Program



             measures but where coastal water quality is still threatened or impaired, should begin
             at the time of Federal approval.


             IVR Program Approval Standards, Implementation and Penalties

             Both EPA and NOAA will base their review of a state's coastal nonpoint program on
             whether the state has met the requirements of the statute. NOAA and EPA will
             perform their review consistent with the interpretation set forth in this guidance.
             NOAA and EPA will consult with the states during the six month review period above.
             The states will have an opportunity to amend their submission, if necessary, subject to
             the public participation requirements and time constraints.

             If either NOAA or EPA determines that a state has failed to submit an approvable
             coastal nonpoint program, the relevant penalties will be levied both on section 306
             coastal management grants and section 319 nonpoint source grants. The penalties
             start at 10% in fiscal year 1996, and increase to 15% in FY 1997, 20% in FY 1998,
             and 30% in FY 1999 and each fiscal year thereafter. In the case of the coastal zone
             management program, the penalty is based upon the grants otherwise available to a
             state in the current fiscal year. In the case of the section 319 nonpoint source
             management program, the penalty is based on the grant amount awarded to the state
             for the preceding fiscal year. Given the joint approval process, no state will
             experience penalties to only one program. Funds withheld by NOAA and EPA will be
             made available to states with approved coastal nonpoint programs.






















                                                      46









                                      APPENDICES





          APPENDIX A.-
           Section 6217 of the Coastal Zone Act Reauthorization Amendments of 1990


          APPENDIX B:
           National Pollutant Discharge Elimination System

          APPENDIX C:
           list of Section 6217(g) Management Measures

          APPENDIX D:
           Ilst of States and Territories with Approved Coastal Zone Management Programs

          APPENDIX E:
           Overview of Existing. National Efforts to Control Nonpoint Source Pollution

          APPENDIX F:
           Designated Uses and Support Uvels

          APPENDIX G:
           State Coastal Nonpoint Program Submission

          APPENDIX H:
           Demonstrated Benefits of Trading










              APPENDIX A.- Section 6217 of the Coastal Zone Act Reauthorization
                                    Amendments of 1990



              P.L. 101-508



              SEC. 6217. PROTECTING COASTAL WATERS.


                 (a) IN GENERAL.-
                       (1) PROGRAM DEVELOPMENT.-Not later than 30 months after the date of the
                     publication of final guidance under subsection (g), each State for which a
                     management program has been approved pursuant to section 306 of the Coastal
                     Zone Management Act of 1972 shall prepare and submit to the Secretary and the
                     Administrator a Coastal Nonpoint Pollution Control Program for approval pursuant
                     to this section. The purpose of the program shall be to develop and implement
                     management measures for nonpoint source pollution to restore and protect coastal
                     waters, working in close conjunction with other State and local authorities.
                       (2) PROGRAM COORDINATION.-A State program under this section shall be
                     coordinated closely with State and local water quality plans and programs developed
                     pursuant to sections 208, 303, 319, and 320 of the Federal Water Pollution Control
                     Act (33 U.S.C. 1288, 1313, 1329, and 1330) and with State plans developed pursuant
                     to the Coastal Zone Management Act of 1972, as amended by this Act. The program
                     shall serve as an update and expansion of the State nonpoint source management
                     program developed under section 319 of the Federal Water Pollution Control Act,
                     as the program under that section relates to land and water uses affecting coastal
                     waters.
                (b) PROGRAM CONTENTS.-Each State program under this section shall provide for
              the implementation, at a minimum, of management measures in conformity with the
              guidance published under subsection (g), to protect coastal waters generally, and shall also
              contain the following:
                       (1) IDENTIFYING LAND USES.-The identification of, and a continuing process
                     for identifying, land uses which, individually or cumulatively, may cause or contribute
                     significantly to a degradation of-
                              (A) those coastal waters where there is a failure to attain or maintain
                            applicable water quality standards or protect designated uses, as determined
                            by the State pursuant to its water quality planning processes; or
                              (B) those coastal waters that are threatened by reasonably foreseeable
                            increases in pollution loadings from new or expanding sources.
                       (2) IDENTIFYING CRITICAL COASTAL AREAS.-The identification of, and a
                     continuing process for identifying, critical coastal areas adjacent to coastal waters
                     referred to in paragraph (1)(A) and (B), within which any new land uses or
                     substantial expansion of existing land uses shall be subject to management measures
                     in addition to those provided for in subsection (g).
                       (3) MANAGEMENT MEASURES.-The implementation and continuing revision
                     from time to time of additional management measures applicable to the land uses







              Appendix A



                     and areas identified pursuant to paragraphs (1) and (2) that are necessary to achieve
                     and maintain applicable water quality standards under section 303 of the Federal
                     Water Pollution Control Act (33 U.S.C. 1313) and protect designated uses.
                       (4) TECHNICAL ASSISTANCE.-The provision of technical and other assistance
                     to local governments and the public for implementing the measures referred to in
                     paragraph (3), which may include assistance in developing ordinances and regulations,
                     technical guidance, and modeling to predict and assess the effectiveness of such
                     measures, training, financial incentives, demonstration projects, and other innovations
                     to protect coastal water quality and designated uses.
                       (5) PUBLIC PARTICIPATION.-Opportunities for public participation in all
                     aspects of the program, including the use of public notices and opportunities for
                     comment, nomination procedures, public hearings, technical and financial assistance,
                     public education, and other means.
                       (6) ADMINISTRATIVE COORDINATION.-The establishment of mechanisms to
                     improve coordination among State agencies and between State and local officials
                     responsible for land use programs and permitting, water quality permitting and
                     enforcement, habitat protection, and public health and safety, through the use of joint
                     project review, memoranda of agreement, or other mechanisms.
                       (7) STATE COASTAL ZONE BOUNDARY MODIFICATION.-A proposal to
                     modify the boundaries of the State coastal zone as the coastal management agency
                     of the State determines is necessary to implement the recommendations made
                     pursuant to subsection (e). If the coastal management agency does not have the
                     authority to modify such boundaries, the program shall include recommendations for
                     such modifications to the appropriate State authority.
                (c) PROGRAM SUBMISSION, APPROVAL, AND IMPLEMENTATION.-
                       (1) REVIEW AND APPROVAL.-Within 6 months after the date of submission by
                     a State of a program pursuant to this section, the Secretary and the Administrator
                     shall jointly review the program. The program shall be approved if-
                              (A) the Secretary determines that the portions of the program under the
                            authority of the Secretary meet the requirements of this section and the
                            Administrator concurs with that determination; and
                              (B) the Administrator determines that the portions of the program under the
                            authority of the Administrator meet the requirements of this section and the
                            Secretary concurs with that determination.
                       (2) IMPLEMENTATION OF APPROVED PROGRAM.-If the program of a State
                     is approved in accordance with paragraph (1), the State shall implement the program,
                     including the management measures included in the program pursuant to subsection
                     (b), through-
                              (A) changes to the State plan for control of nonpoint source pollution
                            approved under section 319 of the Federal Water Pollution Control Act; and
                              (B) changes to the State coastal zone management program developed under
                            section 306 of the Coastal Zone Management Act of 1972, as amended by this
                            Act.
                       (3) WITHHOLDING COASTAL MANAGEMENT ASSISTANCE.-If the
                     Secretary finds that a coastal State has failed to submit an approvable program as
                     required by this section, the Secretary shall withhold for each fiscal year until such







                                                                                                   AppendLir A



                      a program is submitted a portion of grants otherwise available to the State for the
                      fiscal year under section 306 of the Coastal Zone Management Act of 1972, as
                      follows:
                               (A) 10 percent for fiscal year 1996.
                               (B) 15 percent for fiscal year 1997.
                               (C) 20 percent for fiscal year 1998.
                               (D) 30 percent for fiscal year 1999 and each fiscal year thereafter.
                      The Secretary shall make amounts withheld under this paragraph available to coastal
                      States having programs approved under this section.
                       (4) WITHHOLDING WATER POLLUTION CONTROL ASSISTANCE.-If the
                      Administrator finds that a coastal State has failed to submit an approvable program
                      as required by this section, the Administrator shall withhold from grants available to
                      the State under section 319 of the Federal Water Pollution Control Act, for each
                      fiscal year until such a program is submitted, an amount equal to a percentage of the
                      grants awarded to the State for the preceding fiscal year under that section, as
                      follows:
                               (A) For fiscal year 1996, 10 percent of the amount awarded for
                             fiscal year 1995.
                               (B) For fiscal year 1997, 15 percent of the amount awarded for
                             fiscal year 1996.
                               (C) For fiscal year 1998, 20 percent of the amount awarded for
                             fiscal year 1997.
                               (D) For fiscal year 1999 and each fiscal year thereafter, 30 percent of the
                             amount awarded for fiscal year 1998 or other preceding fiscal year.
                      The Administrator shall make amounts withheld under this paragraph available to
                      States having programs approved pursuant to this subsection.
                 (d) TECHNICAL ASSISTANCE.-The Secretary and the Administrator shall provide
              technical assistance to coastal States and local governments in developing and implementing
              programs under this section. Such assistance shall include-
                       (1) methods for assessing water quality impacts associated with coastal land uses;
                       (2) methods for assessing the cumulative water quality effects of coastal
                      development;
                       (3) maintaining and from time to time revising an inventory of model ordinances,
                      and providing other assistance to coastal States and local governments in identifying,
                      developing, and implementing pollution control measures; and
                       (4) methods to predict and assess the effects of coastal land use management
                      measures on coastal water quality and designated uses.
                 (e) INLAND COASTAL ZONE BOUNDARIES.-
                       (1) REVIEW.-The Secretary, in consultation with the Administrator of the
                      Environmental Protection Agency, shall, within 18 months after the effective date of
                      this title, review the inland coastal zone boundary of each coastal State program
                      which has been approved or is proposed for approval under section 306 of the
                      Coastal Zone Management Act of 1972, and evaluate whether the State's coastal
                      zone boundary extends inland to the extent necessary to control the land and water
                      uses that have a significant impact on coastal waters of the State.
                       (2) RECOMMENDATION.-If the Secretary, in consultation with the







              Appendix A



                     Administrator, finds that modifications to the inland boundaries of a State's coastal
                     zone are necessary for that State to more effectively manage land and water uses to
                     protect coastal waters, the Secretary, in consultation with the Administrator, shall
                     recommend appropriate modifications in writing to the affected State.
                (f) FINANCIAL ASSISTANCE.-
                       (1) IN GENERAL.-Upon request of a State having a program approved under
                     section 306 of the Coastal Zone Management Act of 1972, the Secretary, in
                     consultation with the Administrator, may provide grants to the State for use for
                     developing a State program under this section.
                       (2) AMOUNT.-The total amount of grants to a State under this subsection shall
                     not exceed 50 percent of the total cost to the State of developing a program under
                     this section.
                       (3) STATE SHARE.-The State share of the cost of an activity carried out with a
                     grant under this subsection shall be paid from amounts from non-Federal sources.
                       (4) ALLOCATION.-Amounts available for grants under this subsection shall be
                     allocated among States in accordance with regulations issued pursuant to section
                     306(c) of the Coastal Zone Management Act of 1972, except that the Secretary may
                     use not more than 25 percent of amounts available for such grants to assist States
                     which the Secretary, in consultation with the Administrator, determines are making
                     exemplary progress in preparing a State program under this section or have extreme
                     needs with respect to coastal water quality.
                (g) GUIDANCE FOR COASTAL NONPOINT SOURCE POLLUTION CONTROL.-
                       (1) IN GENERAL.-The Administrator, in consultation with the Secretary and the
                     Director of the United States Fish and Wildlife Service and other Federal agencies,
                     shall publish (and periodically revise thereafter) guidance for specifying management
                     measures for sources of nonpoint pollution in coastal waters.
                       (2) CONTENT.-Guidance under this subsection shall include, at a minimum-
                              (A) a description of a range of methods, measures, or practices, including
                            structural and nonstructural controls and operation and maintenance
                            procedures, that constitute each measure;
                              (B) a description of the categories and subcategories of activities and
                            locations for which each measure may be suitable;
                              (C) an identification of the individual pollutants or categories or classes of
                            pollutants that may be controlled by the measures and the water quality
                            effects of the measures;
                              (D) quantitative estimates of the pollution reduction effects and costs of the
                            measures;
                              (E) a description of the factors which should be taken into account in
                            adapting the measures to specific sites or locations; and
                              (F) any necessary monitoring techniques to accompany the measures to
                            assess over time the success of the measures in reducing pollution loads and
                            improving water quality.
                       (3) PUBLICATION.-The Administrator, in consultation with the Secretary, shall
                     publish-
                              (A) proposed guidance pursuant to this subsection not later than 6 months
                            after the date of the enactment of this Act; and






                                                                                                Append& A



                              (B) final guidance pursuant to this subsection not later than 18 months after
                             such effective date.
                       (4) NOTICE AND COMMENT.-The Administrator shall provide to coastal States
                      and other interested persons an opportunity to provide written comments on
                      proposed guidance under this subsection.
                       (5) MANAGEMENT MEASURES.-For purposes of this subsection, the term
                      11management measures" means economically achievable measures for the control of
                      the addition of pollutants from existing and new categories and classes of nonpoint
                      sources of pollution, which reflect the greatest degree of pollutant reduction
                      achievable through the application of the best available nonpoint pollution control
                      practices, technologies, processes, siting criteria, operating methods, or other
                      alternatives.
                 (h) AUTHORIZATIONS OF APPROPRIATIONS.-
                       (1) ADMINISTRATOR.-There is authorized to be appropriated to the
                      Administrator for use for carrying out this section not more than $1,000,000 for each
                      of fiscal years 1992, 1993, and 1994.
                       (2) SECRETARY.-(A) Of amounts appropriated to the Secretary for a fiscal year
                      under section 318(a)(4) of the Coastal Zone Management Act of 1972, as amended
                      by this Act, not more than $1,000,000 shall be available for use by the Secretary for
                      carrying out this section for that fiscal year, other than for providing in the form of
                      grants under subsection (f).
                               (B) There is authorized to be appropriated to the Secretary for use for
                             providing in the form of grants under subsection (f) not more than-
                                    (i) $6,000,000 for fiscal year 1992;
                                    (ii) $12,000,000 for fiscal year 1993;
                                    (iii) $12,000,000 for fiscal year 1994; and
                                    (iv) $12,000,000 for fiscal year 1995.
                 (i) DEFINITIONS.-In this section-
                       (1) the term "Administrator" means the Administrator of the Environmental
                      Protection Agency;
                       (2) the term "coastal State" has the meaning given the term "coastal state" under
                      section 304 of the Coastal Zone Management Act of 1972 (16 U.S.C. 1453);
                       (3) each of the terms "coastal waters", and "coastal zone" has the meaning that
                      term has in the Coastal Management Act of 1972;
                       (4) the term' "coastal management agency" means a State agency designated
                      pursuant to section 306(d)(6) of the Coastal Zone Management Act of 1972;
                       (5) the term "land use" includes a use of waters adjacent to coastal waters; and
                       (6) the term "Secretary" means the Secretary of Commerce.








             APPENDDC B: National Pollutant Discharge Elimination System



             A. Urban Runoff


             Historically, there have always been overlaps and ambiguity between programs designed
             to control urban runoff nonpoint sources and those designed to control urban stormwater
             point sources. For "ample, runoff may often originate as a nonpoint source but
             ultimately be channelized and become a point source. Two statutory requirements have
             resulted in additional confusion about program applicability. Section 402(p) of the Clean
             Water Act, establishes permit requirements for certain municipal and industrial storm
             water discharges, and Section 6217 of CZARA, which requires EPA to promulgate and
             States to implement management measures to control nonpoint pollution in- coastal
             waters. The discussion below is intended to clarify the relationship between these two
             programs and describe the scope and applicability of the coastal nonpoint program to
             urban runoff in coastal areas.



             B. The Storm Water Permit Program

             The storm water permits program is a two-phased program enacted by Congress in 1987
             under section 402(p) of the Clean Water Act. Under Phase I, National Pollutant
             Discharge Elimination System (NPDES) permits are required to be issued for municipal
             separate storm sewers serving large or medium-sized populations (greater than 250,000
             or 100,000 people, respectively), and for storm water discharges associated with industrial
             activity. Permits are also to be issued, on a case-by-case basis, if EPA or a State
             determines that a storm water discharge contributes to a violation of a water quality
             standard or is a significant contributor of pollutants to waters of the United States. EPA
             published a rule implementing Phase I on November 16, 1990.

             Under Phase 11, EPA is to prepare two reports to Congress which assess remaining storm
             water discharges; determine, to the maximum extent practicable, the nature and extent of
             pollutants in such discharges; and establish procedures and methods to control storm
             water discharges to the extent necessary to mitigate impacts on water quality. Then,
             EPA is to issue regulations which designate storm water discharges, in addition to those
             addressed in Phase I, to be regulated to protect water quality, and EPA is to establish a
             comprehensive program to regulate those designated sources. The program is required
             to establish (A) priorities, (B) requirements for State storm water management programs,
             and (C) expeditious deadlines.

             These regulations were to have been issued by EPA not later than October 1, 1992.
             However, due to the numerous discharges to be covered by the studies and regulations,
             EPA has not yet issued these regulations.






            Appendix B



            C. Scope of Urban Runoff in Coastal Nonpoint Pollution Control Programs

            As discussed above, Congress enacted section 6217 of CZARA in late 1990 to require
            that States develop coastal nonpoint pollution control programs that are in conformity
            with the management measures guidance published by EPA. Although EPA's
            management measures guidance includes measures to address certain urban runoff, EPA
            is excluding from coverage under this Section 6217(g) guidance all storm water discharges
            that are covered by Phase I of the NPDES storm water permit program. Thus EPA is
            excluding any discharge from a municipal separate storm sewer systems serving a
            population of 100,000 or more; any point source discharge associated with a permitted
            industrial activity; any discharge which has already been permitted; and any discharge for
            which EPA or the State makes a determination that the storm water discharge
            contributes to a violation of a water quality standard or is a significant contributor of
            pollutants to waters of the United States. All of these activities are clearly addressed by
            the storm water permit program and thus are excluded from the coastal nonpoint
            pollution control program.

            EPA is adopting a different approach with respect to other (non-Phase I) storm water
            discharges. At present, EPA has not yet promulgated its regulations that would designate
            additional storm water discharges, beyond those regulated in Phase 1, that will be
            required to be regulated in Phase II. It is thus not possible to determine at this point
            which additional storm water discharges may be regulated by the NPDES program and
            which will not. Furthermore, due to the great number of such discharges, it is likely that
            it would take many years to permit all of these discharges, even if EPA allows for
            relatively expeditious State permitting approaches such as the use of general permits.

            Therefore, to give effect to Congressional intent that coastal waters receive special and
            expeditious attention from EPA, NOAA, and the States, discharges that potentially may
            be ultimately covered by Phase II of the storm water permits program are covered by the
            management measures guidance and will be addressed by the coastal nonpoint pollution
            control programs. Any storm water discharge that ultimately is issued an NPDES permit
            will become exempt from this guidance and from the coastal nonpoint pollution control
            program at the time that the permit is issued.

            In addition, we note that some other activities are exempt from the NPDES permit
            requirements and thus are covered by the coastal nonpoint pollution control program.
            Most important, construction activities on sites less than five acres, which are not
            currently covered by the NPDES Phase I stormwater application requirements, are
            covered by the coastal nonpoint pollution control program.' Similarly, discharges from
            wholesale, retail, service or commercial activities, including gas stations, which are not
            covered by Phase I of the NPDES stormwater program, are covered instead by the


                  The provision exempting construction activities on sites less than five acres from the NPDES
                  permit requirements is currently being reviewed by EPA in response to a recent court decision.






                                                                                              AppendIr B



             coastal nonpoint pollution control program. Further, on-site disposal systems, which are
             generally not covered by the stormwater permit program, are covered by the coastal
             nonpoint pollution control program.

             Finally, EPA emphasizes that while different legal authorities may apply to different
             situations, the goals of the NPDES and CZARA programs are complementary. Many of
             the techniques and practices used to control urban runoff are equally applicable to both
             programs. Yet, the programs do not work identically. In the interest of consistency and
             comprehensiveness, States have the option to implement the CZARA section 6217(g)
             management measures throughout the State's coastal zone, including Phase I stormwater
             areas, as long as the NPDES requirements are met for areas subject to NPDES
             requirements. In general, States are encouraged to develop consistent approaches to
             addressing urban runoff throughout their coastal zones.


             D. Marinas


             Another specific overlap between the stormwater program and this coastal nonpoint
             source program occurs in the case of marinas. EPA intends that the management
             measures guidance for marinas and recreational boating apply only to sources that are
             not currently required to apply for and receive an NPDES permit. In the (g) guidance,
             EPA has attempted to avoid addressing marina activities that are clearly regulated point
             source discharges. Any stormwater discharge that is ultimately issued an NPDES permit
             will become exempt from this guidance and from the coastal nonpoint pollution control
             program at the time that the permit is issued.

             Marinas contributing stormwater runoff to municipal sewer systems serving a population
             of 100,000 or more are a part of the municipal NPDES permit and are not covered by
             the coastal nonpoint source program. Marinas are also required to obtain permits for
             those portions of the marina that are involved in vehicle maintenance (including vehicle
             rehabilitation, mechanical repairs, painting, fueling, and lubrication) and equipment
             cleaning operations. However, many marinas are not currently required to apply for and
             receive NPDES permits. The (g) management measures are applicable to marinas and
             the parts of marinas that are not required to apply for NPDES permits.


             E. Other Point Sources

             Overlapping areas between the point source and nonpoint source programs occur in
             addition to storm water and marinas. For example, concentrated animal feeding
             operations that meet particular size or other criteria are defined and regulated as point
             sources under the section 402 permit program, while other confined animal feeding
             operations are not currently regulated as point sources. Overlaps may occur with respect
             to aspects of mining operations, oil and gas extraction, land disposal, and other activities.






             Append& B



             EPA intends that the coastal nonpoint pollution control programs to be developed by the
             States apply only to sources that are not currently required to apply for and receive an
             NPDES permit, and that the management measures similarly apply only to sources that'
             are not required to apply for and receive an NPDES permit. In the (g) guidance, EPA
             has attempted to avoid addressing activities that are regulated point source discharges.








                  APPENDDC C: Ust of Section 6217(g) Management Measures



                  .. ... . ...... .. . .. ...
                                           ..... . ... ...                               .......           ......
                    . . ....... ........... ... .                        ... . .......     ..... . ......
                     ...............................         ..... .. . .... ..
                  ................... ..... ................... ........ .. .. .... .. ..
                                                        ....... ......
                  .. . ........................I. ... ..                                  .. . ...... . .
                                                 . .... ............                        . .....         ... ... . .
                  .. ...............  . ... . . .. .... .. ... ........ .. .....       .. ........         . ... ..
                         anaffement M                  fbfAgn
                                                                                               ..........
                                                   .... ....... .                      . .. ..... .. . .. .. .                     . ... ......
                                                           . ...... ....
                                                                                               ..... .. .. ... .. ...
                                                   . ......... .........                .. ..... ........ .... .. . ... .. .. ... ... . ...

                           Erosion and Sediment Control Management Measure

                           Management Measure for Facility Wastewater and Runoff from Confined Animal
                           Facility Management (Large Units)

                           Management Measure for Facility Wastewater and Runoff from Confined Animal
                           Facility Management (Small Units)

                           Nutrient Management Measure

                           Pesticide Management Measure

                           Grazing Management Measure

                           Irrigation Water Management


                               .. . . .. ..... .
                         anagement Measures: f6f For
                   . .... . . .. . ......
                  .... .. .. ..
                   .. ... . .........
                  ... .. ... . .
                           . .. ....... .. ... .. ... .. .. . ...          . . . .....              ... .. .
                   . ...... ... ...... ..                                                                                           .... ..
                         . . ..... ... ... . . .... . ... .. ..
                                             ... . . ........ ......                                                                  ......-

                           Preharvest Planning Management Measure

                           Strearnside Management Areas (SMAs)

                           Road Construction/Reconstruction Management Measure

                           Road Management

                           Timber Harvesting

                           Site Preparation and Forest Regeneration Management Measure

                           Fire Management

                           Revegetation of Disturbed Areas

                           Forest Chemical Management

                           Wetlands Forest






                    Appendix C


                                   - !- .                           .. ... ''.. ,
                               .... .. . ..                          ....................              .......... ................. ................. ...
                                 ..........                                                                .......-............. ......................-.......... . ... ...
                                                                        .............................  ..........
                                                          . ............................................. .................
                                                                                              .........  ... ........... ............ .. .... ...............
                                                                                                                                                 ...........
                                                                                    ... ..................  ......-................... . . . .....  ......
                     ::@@@Alana             measures:::1 r.:!Urban..Are':A9
                                                                              ........... ..... .................... ............
                                                                                               ..........             .........                   ..........
                                                                                                           ............            ................
                                                                                                                           ...........-.......... ........ ..........
                     ............ .. . .....
                                                                                         ................


                               New Development Management Measures

                               Watershed Protection Management Measure

                               Site Development Management Measure

                               Construction Site Erosion and Sediment Control Management Measure

                               Construction Site Chemical Control Management Measure

                               Existing Development Management Measure

                               New Onsite Disposal Systems Management Measure

                               Operating Onsite Disposal Systems Management Measure

                               Pollution Prevention Management Measure

                               Management Measure for Planning, Siting and Developing Roads and Highways

                               Management Measure for Bridges

                               Management Measure for Construction Projects

                               Management Measure for Construction Site Chemical Control

                               Management Measure for Operation and Maintenance

                               Management Measure for Road, Highway, and Bridge Runoff Systems



                                                                     .. .... .............   .... .. .   ........
                                                                              ... ........ ..   .......
                       Management M                  res for Mariffias::'and Recreatiol

                                                                              . ....... . .. . ..... .. .... ... ......
                                                                                                       ..........
                                                                              ....... ....     ......-   ..... I'll -..........
                                                                            .. .........               ...... ..... -- ...... . .

                               Marina Flushing Management Measure

                               Water Quality Assessment Management Measure

                               Habitat Assessment Management Measure






                                                                                Appendix C



                Shoreline Stabilization Management Measure

                Storm Water Runoff Management Measure

                Fueling Station Design Management Measure

                Sewage Facility Management Measure

                Solid Waste Management Measure

                Fish Waste Management Measure

                Liquid Material Management Measure

                Petroleum Control Management Measure

                Boat Cleaning Management Measure

                Public Education Management Measure

                Maintenance of Sewage Facilities Management Measure

                Boat Operation Management Measure


           Management M       resIor Hydidmodification: ChAnnelii4fion:@and Ch el
           Modification, Dams, and Streambafiks and Shoreline Erosion


                Management Measure for Physical and Chemical Characteristics of Surface
                Waters


                Instrearn and Riparian Habitat Restoration Management Measure

                Management Measure for Erosion and Sediment Control

                Management Measure for Chemical and Pollutant Control

                Management Measure for Protection of Surface Water Quality and Instrearn and
                Riparian Habitat

                Management Measure for Eroding Streambanks and Shorelines






                   Append& C





                                                                  .. . ... .... . . ... . .. . ......            .. .....
                                                                                        ............
                                                         ..............          ........ ...................... ......... .........-...... ..
                                 ...              . . ..................... ... ......     ........................... ......... . ................. .. ...
                                                                  .............. --- .....
                                                                               ... ...........................
                              .... ...                                           ......... ...............
                             .....                .. ..... ... ............. ................ .......
                                                                                       .............
                                                      . ........................
                                                                                              ...........
                                                                               .... .......... . ''::::: .. . ........          .......... . .... ....
                                                                                                                         ...........
                                                                                                                            ..........
                                                                                                                            ......I...........-
                                                                                                                   ... .......  -- .........-.......... . ...
                                                       flor:  e                 nan Ak and V* tat
                                                                             pa: ....                                       ..... . . .  .....
                                                                                             .............          .. ....-......... ............
                                                                    ....... ................. ... ...-................ ......
                                                          .......... ...... . ..................... .... ..... ................... .......
                                                                                             .... ................
                                                                                                .................
                                                                              ..........
                                                                     ....................... ... ..... ......
                                                                   ...... ................        ...... .........
                                                                                                         ........ ..

                                                      ............. ............ .......................... ........  ............................ ................ .- ... ........ ....... ........
                                                      .................................................................................................. ..........-.... ............ ............ ...

                             Management Measure for Protection of Wetlands and Riparian Areas

                             Management Measure for Restoration of Wetland and Riparian Areas

                             Management Measure for Vegetated Treatment Systems








       APPENDDC D: Ust of States and Territories with Approved Coastal Zone
                     Management Programs



                  ALABAMA                    NEW HAMPSHIRE

                   ALASKA                      NEW JERSEY

               AMERICAN SAMOA                  NEW YORK

                 CALIFORNIA                 NORTH CAROLINA

                 CONNECTICUT           NORTHERN MARIANA ISLANDS

                  DELAWARE                      OREGON

                   FLORIDA                   PENNSYLVANIA

                    GUAM                      PUERTO RICO

                   HAWAII                     RHODE ISLAND

                  LOUISIANA                 SOUTH CAROLINA

                    MAINE                    VIRGIN ISLANDS

                  MARYLAND                      VIRGINIA

                MASSACHUSETTS                 WASHINGTON

                  MICHIGAN                     WISCONSIN

                  MISSISSIPPI








            APPENDIX E: Overview of Fidsting National Efforts to Control Nonpoint
                               Source Pollution




            Section III.G of this document describes the statutory requirement for administrative
            coordination. It also describes EPA's and NOAA's expectation that state coastal
            nonpoint source programs build on and complement, rather than duplicate and conflict
            with, other Federal statutory requirements and state-implemented programs. The
            following section describes several existing and on-going efforts to control nonpoint
            source pollution. State coastal zone and nonpoint source agencies are encouraged to
            work with these programs in implementing their coastal nonpoint programs.


            EPA Programs

            1. Clean Water Act Section 319 - Nonpoint Source Program

            A number of local, state and Federal programs have been implemented over time to
            address nonpoint source pollution. However, the first national program to authorize
            Federal funding for the control of nonpoint sources began in 1987 when Congress passed
            the Water Quality Act of 1987, enacting section 319 of the Clean Water Act, which
            established a national program to control nonpoint sources of water pollution. Section
            319 requires that, in order to be eligible for federal funding, states develop an assessment
            report detailing the extent of nonpoint pollution, and a management program specifying
            nonpoint source controls. Section 319 authorizes EPA to issue grants to states to assist
            them in implementing their nonpoint source management programs or portions of
            management programs that have been approved by EPA.

            As of August 1992, all states and territories had approved nonpoint source assessments
            and management programs or portions of management programs. Congress
            appropriated $40 million in section 319 FY 1990 and $51 million in FY 1991 funds to
            assist States in implementing their management program.

            2- Clean Water Act Section 320 - National Estuary Program

            EPA also administers the National Estuary Program under section 320 of the Clean
            Water Act. This program focuses on point and nonpoint pollution in geographically
            targeted, high-priority estuarine waters. Under this program, EPA assists state, regional
            and local governments in developing estuary-specific comprehensive conservation and
            management plans that recommend corrective actions to restore and maintain estuarine
            water quality and to protect fish populations and other designated uses of these targeted
            waters. To date, seventeen estuaries have been designated as part of the National
            Estuary Program.







              Appendix E



              3. Near Coastal Waters Program

              The Near Coastal Waters (NCW) Program serves as a primary vehicle for implementing
              environmental protection in coastal areas under a variety of programs and authorities. It
              is also the framework for coastal regions for carrying out Agency directives, strategic
              themes, and other initiatives not specifically related to distinct program issues. Examples
              of these cross-cutting themes include geographic targeting for management attention;
              pollution prevention; and setting priorities based on the expected efficacy of preventive
              measures as well as the magnitude of ecological or human health risks. Specific
              objectives include:

                     0     directing and focusing EPA's coastal activities within priority geographic
                           areas;

                     0     promoting linkages among programs;

                     0     encouraging a comprehensive approach to problem assessment and
                           management; and

                     0     maximizing environmental results.

              The NCW Program is implemented through two basic components: specific national
              activities which provide direction, support, and oversight; and Regional development of
              NCW Strategies that serve to implement the Program within EPA's Regions and that are
              carried out through activities described in annual work-plans.

              4. Ground Water Protection Programs

              EPA has a number of programs, in addition to section 319, to control nonpoint source
              pollution of ground water. Since at least 1984, ground water protection programs have
              provided technical and financial assistance to states for the development of state ground-
              water strategies and, more recently, Ground Water Protection Programs. Under the Safe
              Drinking Water Act, EPA may designate sole source aquifers. These are aquifers that
              are the sole or principal of drinking water source for an area. At EPA's discretion, no
              commitment for federal funds can be made for projects that will contaminate these
              aquifers. In addition, the 1986 amendments to the Safe Drinking Water Act established
              a Wellhead Protection program. This program was created to protect ground waters that
              supply wells and wellfields that contribute to public drinking water supply systems.
              USDA and EPA are also cooperating under a program to assess private drinking water
              wells on farmsteads.






                                                                                               Appendix E



            5. Pesticides Program

            EPA's pesticides program under the Federal Insecticide, Fungicide, and Rodenticide Act
            addresses some forms of nonpoint pollution. Among other things, this statute authorizes
            EPA to control pesticides that may threaten ground water and surface waters. In
            determining the appropriate regulatory approach for specific pesticides, EPA uses the
            following step-by-step approach:

            1) EPA determines the pesticide's potential for leaching into ground and surface water;
            2) if there is such potential, EPA considers whether establishing national label restrictions
            (enforceable under FIFRA) would adequately address leaching concerns (included in
            these restrictions can be classification of the pesticide as "restricted-use," which requires
            application by a trained, certified applicator; requirements for certain methods of
            application, safe handling, storage, and disposal; etc); 3) if these restrictions are not
            adequate to address the potential problem, EPA will determine whether providing states
            with the opportunity to develop Pesticide State Management Plans for the chemical will
            effectively address the unreasonable risk from pesticide contamination. In the event that
            Pesticide State Management Plans could not sufficiently reduce the risks to human health
            and the environment (i.e., an unreasonable risk remains), then EPA would resort to
            national cancellation of the pesticide.

            Pesticide State Management Plans will be developed by state agriculture,
            water/environment, and health agencies and will prescribe pesticide application measures
            to protect ground water that is vulnerable to pesticide contamination. Required
            components of these Plans will include: state philosophy and goals, state roles and
            responsibilities, legal authority, resources, assessment and planning, monitoring,
            prevention, response, enforcement, public awareness and participation, information
            dissemination, and records and reporting.

            Since areas to be managed under State Pesticides Management programs and coastal
            nonpoint programs may overlap in developing the coastal nonpoint programs'
            management measures for agricultural pesticides, state coastal zone and nonpoint source
            agencies should work with the State Lead Agency for Pesticides (or the state agency that
            has a lead role in developing and implementing the State Management Plan). Such
            coordination is necessary to ensure that program efforts and pesticide management
            measures and practices to protect ground and surface water, complement and are not in
            conflict with the pesticide label and with requirements in the Pesticide State Management
            Plans. (For instance, if a Pesticide State Management Plan prescribes a moratorium on
            pesticide use in one are, the coastal nonpoint program should not allow pesticide use in
            that area). In states where Pesticide State Management Plans have not been developed,
            planning efforts for the two programs should be closely coordinated.






              Appendix E



              6. Wetlands Protection Program

              EPA's wetlands program also has undertaken a number of projects to increase awareness
              of the relationship between the protection and restoration of wetlands and nonpoint
              source control. In 1990, the agency developed guidance to encourage coordination of
              nonpoint sources and wetlands programs, both within EPA and the states, to attain water
              quality goals shared by the two programs. In addition, EPA has released guidance on
              how to ensure effective application of water quality standards to wetlands. Projects in
              this area include:


              Efforts with other Federal Agencies: The Wetlands Division is working with several
              agencies to develop methods and transfer information on protecting and restoring
              wetlands in ways which can be expected to provide nonpoint source abatement benefits:

              0      The Wetlands Division is working with members of the Interagency Task Force
                     on Floodplain Management and the Association of State Floodplain Managers
                     to better protect and enhance the natural and beneficial values of the Nation's
                     floodplain by promoting the concept of comprehensive or multi-objective river
                     corridor management. Managing river corridors for multiple uses provides the
                     opportunity for communities to simultaneously address nonpoint source
                     pollution, water quality, flooding, recreation, habitat and any number of needs
                     and challenges.

              E      The Wetlands Division is initiating a pilot project with USDA, the Fish and
                     Wildlife Service, and non-profit groups to encourage landowner participation in
                     USDA's Wetland Reserve Program. By working cooperatively, these groups will
                     help landowners identify wetland restoration sites that will improve water quality
                     as well as enhance other wetland values.


              Development of technical and outreach materials: The Wetlands Division has worked
              with a number of other EPA offices and regions to develop materials that can increase
              awareness of the important role wetlands play in improving water quality.

              0      Publications include: "Livestock Grazing on Western Riparian Areas"; "Summary
                     of Section 319(h) Wetlands and Riparian Projects for Fiscal Years 1990 and
                     1991"; and "Beyond the Estuary: The Importance of Upstream Wetlands to
                     Estuarine Processes" which focuses on the beneficial effects that upstream
                     wetlands have on the downstream water quality in estuaries.

              0      EPA has released technical guidance to States on how to ensure effective
                     application of water quality standards to wetlands. The development of standards
                     provides the foundation of a broad range of water quality management activities
                     including, but not limited to, monitoring under Section 305(b), permitting under






                                                                                            Append& E



                   Sections 402 and 404, water quality certification under Section 401, and control of
                   nonpoint pollution under Section 319.

            E      The Wetlands Division is developing a manual on best management practices to
                   protect wetlands from excessive stormwater runoff and to avoid overloading their
                   water quality improvement functions.

            Criteria to address nonpoint source pollution: EPA is providing support for the
            development of criteria to address the many types of nonpoint source pollutants including
            nutrients, clean sediment, and organic contaminants (gg., pesticides). The Wetlands
            Division is assisting in the development of wildlife criteria applicable to all waterbody
            types and biological criteria for wetlands.

            Wetlands Regional Contacts: For more information regarding regional or state
            initiatives, contact the EPA regional wetlands coordinator.

            Region 1             (617) 565-4422
            Region 11            (212) 264-5170
            Region 111           (215) 597-9302
            Region IV            (404) 347-2126
            Region V             (312) 886-0243
            Region VI            (214) 655-2263
            Region VII           (913) 551-7573
            Region VIII          (303) 293-1570
            Region IX            (415) 744-1971
            Region X             (206) 553-1412


            NOAA Programs

            Coastal Zone Management Program

            The Coastal Zone Management Act of 1972 established a program for states and
            territories to voluntarily develop comprehensive programs to protect and manage coastal
            resources. In order to receive Federal approval and implementation funding, states and
            territories must demonstrate that they have programs, including enforceable policies that
            are sufficiently comprehensive and specific to regulate land uses, water uses, and coastal
            development; and to resolve conflicts among competing uses. In addition, they must
            have the authority to implement the enforceable policies. The programs operates within
            a coastal zone bound any which includes coastal waters and those which have a direct
            one significant impact on coastal waters.

            There are currently 29 federally approved state and territorial programs. Despite
            institutional differences, each program must protect and manage important coastal






               Appendix E



               resources, including: wetlands, estuaries, beaches, dunes, barrier islands, coral reefs, and
               fish and wildlife and their habitats. Resource management and protection is
               accomplished in a number of ways through state laws, regulations, permits, and local
               plans and zoning ordinances.

               While water quality protection is integral to the management of many coastal resources,
               it was not specifically cited as a purpose or policy of the original statute. The Coastal
               Zone Act Reauthorization Amendments of 1990 specifically charged state coastal
               programs, as well as state nonpoint source programs, with addressing nonpoint source
               pollution affecting coastal water quality.


               USDA Program

               The U.S. Department of Agriculture's Agricultural Stabilization and Conservation Service
               (ASCS), Soil Conservation Service (SCS) and Extension Service administer a number of
               programs that contribute to reducing 4onpoint pollution from agricultural production.

               Agricultural Conservation Program

               The Agricultural Conservation Program, administered by ASCS, provides cost-share funds
               to farmers and ranchers to install conservation practices. The program has several goals
               including: conserving soil and water, improving water quality, protecting and maintaining
               productive farm and ranch land, and preserving and developing wildlife habitat.

               ASCS also administers the Conservation Reserve Program (CRP), designed to protect
               the nation's most highly erodible land and to protect and improve water quality. Under
               the CRP, farmers are reimbursed for retiring highly erodible and environmentally
               sensitive croplands from production under ten year contracts. Water quality
               improvements occur as lands are taken out of production because of lower fertilizer and
               pesticide applications and because reductions in soil erosion decrease sediment loadings
               to water. Land enrolled in the reserve program also provides habitat and other
               environmental benefits.


               Criteria for the conservation reserve program have been expanded to include
               environmentally sensitive lands such as filter strips, wetlands and wellhead
               protection areas.

               Soil Conservation Service

               The Soil Conservation Services (SCS) is the technical arm of USDA. SCS provides
               technical assistance to conservation districts throughout the U.S. Under the President's
               Water Quality Initiative, started in 1989, SCS is focusing some of its technical assistance
               on a number of demonstration projects to address water quality problems. SCS staff are







                                                                                      Appendix E



          also located in many of EPA's Regional Offices to provide technical assistance and
          support to the States and EPA. SCS is also providing accelerated technical assistance
          to multi-state, regional projects such as the Chesapeake Bay Program, the Gulf of
          Mexico, the Great Lakes National Program, Land and Water 201, and the National
          Estuary Program.

          Nonpoint Source Hydrologic Unit Areas

          In selected agricultural watersheds and aquifer recharge areas, SCS, Extension Service,
          and cooperating federal, state and local agencies will provide technical assistance and
          conservation planning to help farmers and ranchers meet state water quality goals
          without undue economic hardship. These hydrologic units are selected based on:
          significance of the agricultural sources of pollution, relative predominance of pollutants
          such as pesticides, nutrients, and animal wastes, and conformance with other water
          quality efforts. Findings on the water quality effects of selected conservation practices
          will provide a basis for expanding applications of such practices to other areas with
          similar water quality problems.

          Forest Service


          The Forest Service managers 191 million acres of public forest and range land for
          multiple use purposes. These lands comprise the National Forest System. EPA and the
          Forest Service held a joint technical workshop in Oregon this past winter on sediment
          and water quality. This meeting reflects the increased concern regarding the potential
          impacts of sediment production from forest management activities on water quality and
          aquatic life.

          President's Water Quality 1nitiative

          In 1989, President Bush launched an initiative to protect ground and surface water from
          contamination of fertilizers and pesticides. Congress has funded the initiative in the past
          several years. USDA, EPA, USGS, and NOAA are all working together on this initiative
          through a series of work groups. Through this initiative, a number of watershed projects
          have begun to address fertilizer and pesticides problems. The agencies are tracking the
          implementation progress in these watersheds.

          U.S. Geological Survey

          EPA and the U.S. Geological Survey have signed a memorandum of understanding
          (MOU) pledging cooperation and collaboration on water quality monitoring and
          assessment activities. Both agencies expend much effort on monitoring and assessment
          activities and the MOU is a tool to coordinate these efforts.








              APPENDDC F Designated Uses and Support Levels



                                                                      . . . .... .... .             ... .......
                              ............. ..... ..                                         .... .. . 11-1.1-1 .........
                     ......... .......           ....... .........
                                                                                                     ............
                                                                  ...................             ...... ...... ...  .......... - -...... .
                                             ..............        ..... .... ...........................
                                                                        ...... ......................              .. ....
                                                                              .......................         .........
                                                                                                      ....... ... . ...... .
                                                           .. ..........................
                                                                  .................
                               ........ ..........  ....... ...... ......................... ...      ....
                            .. ......... .................. .. .................            ... ....... . .
                             ................. . . ......                   ...... .................... . ........... ..... ....
                                                                         ...........
                             ...............
                       .. .....            ... ..                                        . . . . ......
                                                                       ... ............................ .... . .

              Wildlife                           Fish and wildlife


              Fishery                            Warmwater Fishery
                                                 Coldwater Fishery

              Shellfishery              Shellfish protection

              Drinking water                     Domestic water supply

              Agriculture               Agriculture
                                                 Irrigation
                                                 Livestock watering

              Industry                           Industrial

              Recreation                Recreation
                                                 Primary contact
                                                 Secondary contact
                                                 Noncontact


              Navigation                Navigation

              High Quality              High Quality Nondegradation



                                                                                 . . .. ..... .... ... . .....
                            ....... .....
                             ............... .. .
                                                                                         . ...... .......
                                                         . ..... ..........         .... ... . .. .-..... ..
                                                    ........ .......... ...                                 . .. ...... ...
                SUPPORTLEVELS..
                                                      . . .. ....... .... .. .
                                                                                               ..........              . ......
                            ................ ........ ...                                                              . ..... ....

                                                                           ................-......... .
                                                                                              .......... ... .............. .. ....-

              Fully Supported           =  all uses supported

              Partial Support           =  one use not Supported

              Non-support               =  2 or more uses not supported

              Threatened                = all uses supported, but one or more uses may not be fully supported
                                        in the future (unless additional management measures are
                                        implemented) because of anticipated new or expanded sources








          APPENDIX G: State Coastal Nonpoint Program Submission


          1.     DESCRIBE PROGRAM GOAI S AND OBJEC17VES


                 The introduction should include a description of the magnitude and distribution of
                 sources of nonpoint pollution in the 6217 management area.

          2.     DESCRIBE OVERALL PROGRAM COMPONENTS


                 a.     *6217 Management Area
                        Respond to NOAA's boundary recommendation.
                        [ï¿½6217(b)(7); Program Guidance, p.9]

                 b.     Coordination Mechanisms
                        Describe the mechanisms which have been established to coordinate among
                        the state, regional, and local agencies responsible for implementing portions
                        of the program. [ï¿½6217(b)(6); Program Guidance, p.33]

                 C.     Public Participation
                        Describe the process used to ensure full public participation in the
                        development and implementation of the program. [ï¿½6217(b)(5); Program
                        Guidance, p.32]

                 d.     Technical Assistance
                        Describe the state program for technical assistance to localities and the
                        public. [ï¿½6217(b)(4); Program Guidance, p.31]

                 e.     Water Quality Monitoring
                        Describe activities to monitor the effectiveness of management measures
                        (see Chapter 8 of the (g) Guidance). States may choose to design specific
                        monitoring programs for individual source categories.

          3.     DESCRIBE MANAGEMENT MEASURES "in conformity with" (g) GUIDANCE

                 State programs should address each management measure identified in the (g)
                 Guidance for the six source categories: agriculture, forestry, urban, marinas,
                 hydromodification, wetlands and riparian areas. The following information should
                 cover each management measure, but may be provided by source category,
                 subcategory, or individual management measure.

                 a.     Covered Sources
                        Identify nonpoint source categories and subcategories in the 6217
                        management area. Identify the categories or subcategories specified in the
                        (g) Guidance which 1) do not exist in the 6217 management area or 2) may
                        be excluded based on Program Guidance criteria, p.13.






                Appendix G



                        b.     Management Measures
                               Identify the (g) Guidance measure or alternative measure to be
                               implemented. Alternative measure must include technical documentation.
                               [Program Guidance, p.15]

                        C.     Management Practices
                               Describe state practices to implement measure or the process for selecting
                               practices to meet site-specific conditions. Include operation and
                               maintenance practices where appropriate.

                        d.     I"d Agency
                               Identify the lead agency and cooperating agencies responsible for
                               implementation of the management measure. Identify available resources
                               (staff, funding, etc.)

                        e.     Enforceable Policies and Mechanisms
                               Cite state and local authority to ensure implementation of the management
                               measure, including inspection and monitoring provisions. If the program
                               relies on local or regional authorities, cite state oversight authority to
                               ensure implementation. [ï¿½306(d)(16); Program Guidance, p.34]

                        L      Schedule
                               Describe schedule, including milestones, to ensure implementation of
                               management measures for existing sources within three years of program
                               approval or conditional approval. New sources are subject to management
                               measures at time of program approval. [Program Guidance, p.44]

                4.      DESCRIBE ADDITIONAL MANAGEMENT MEASURES


                        Describe the implementation of additional management measures including the
                        following information:

                        a.     Impaired and Threatened Coastal Waters
                               Identify impaired and threatened coastal waters using existing water quality
                               assessments. [ï¿½6217(b)(1)(a); Program Guidance, p.231

                        b.     Land Uses
                               Identify land uses in the 6217 management area which individually or
                               cumulatively may cause or contribute to a degradation of coastal waters.
                               Use(g) Guidance source categories as a starting point and add others
                               appropriate to state conditions. [ï¿½6217(b)(1); Program Guidance, p.24]






                                                                                      Appendix G




                 C.     Critical Coastal Areas
                        Identify and map, critical areas adjacent to impaired and threatened coastal
                        waters. [ï¿½6217(b)(2); Program Guidance, p.25]

                 d.     Additional Management Measures
                        Describe measures that will be implemented at time of program approval
                        1) in critical areas and 2) in cases where (g) Guidance measures (or their
                        equivalent) are fully implemented for certain source categories or
                        subcategories, but water quality threats or impairments persist.

                        Describe process for determining the need for additional measures to meet
                        water quality standards even after implementation of (g) Guidance
                        measures. Describe process for revising measures.

                 e.     Enforceable Policies and Mechanisms
                        Cite state and local authority to ensure implementation of the management
                        measure, including inspection and monitoring provisions. [ï¿½306(d)(16);
                        Program Guidance, p.34]

                 L      Schedule
                        Describe schedule, including milestones, to ensure implementation of
                        management measures for existing sources within three years of program
                        approval or conditional approval. [Program Guidance, p.44]







            Appendix H: Demonstrated Benefits of Trading



            1.     SIGNIFICANT TECIMCAL DOCUMENTS


                   A-     Emissions Trading: An Exercise in Rgkrm
                                                                          Pollution Rgh
                                                                                            1985. T-111.
                          Tietenberg.

                   In Emissions Trading: An Exercise in Reforming Pollution PQft, Tietenberg
                   references studies that show that trading may be used in lieu of command-and-
                   control approaches to limit biological oxygen demand in water. The studies
                   demonstrate that trading can lower costs by factors of 1.12 to 3.13 without
                   affecting benefits. Tietenberg also discusses a variety of air emission studies that
                   illustrate that trading can lower the costs of achieving environmental objectives by
                   factors ranging from 1.07 to 22.

                   B.     "Financial Cost Effectiveness of Point and Nonpoint Source Nutrient
                          Reduction Technologies in the Chesapeake Bay Basin," 1991. R. Camacho.

                   Trading can offer very large cost savings to sources while achieving quality goals.
                   In order to offer gains to all market participants, incremental costs of pollution
                   control must differ between sources. Camacho demonstrates this in "Financial
                   Cost Effectiveness of Point and Nonpoint Source Nutrient Reduction Technologies
                   in the Chesapeake Bay Basin." The article states that for nitrogen and
                   phosphorus, the cost effectiveness of controls differs by as much as a factor ten.
                   This differential provides the necessary economic incentive for trading to be
                   effective.


                   C.     The Private Use of Public Interes 1975. C. Schultze

                   Schultze presents trading programs as a means of harnessing the private incentives
                   of polluters for public purpose in The Private Use of Public Interest. Trading
                   programs allow sources with low control costs to undertake additional abatement
                   efforts in exchange for compensation from high-cost sources. More pollution
                   abatement is therefore undertaken where it is cheapest, and less is undertaken
                   where it is costly. Such a trading scheme minimizes the total cost of achieving
                   loading reductions.

                   D.     "Incentive Analysis for Clean Water Act Reauthorization: Point
                          Source/Nonpoint Source Trading For Nutrient Discharge Reductions,"
                          1992. USEPA.


                   "Incentive Analysis for Clean Water Act Reauthorization: Point Source/Nonpoint
                   Source Trading For Nutrient Discharge Reductions" provides an assessment of
                   trading potential for nutrient discharges to surface waters. The,report states that






              Appendix H



                     over 900 water quality-limited waterbodies could potentially benefit from trading
                     under current conditions, and that the best opportunities are for trading nutrient
                     allocations.


                     E.     "Point Nonpoint Source Trading of Pollution Abatement: Choosing the
                            Right Trading Ratio," 1992. A. MaHL

                     The question of the right trading ratio for trades between point sources and
                     nonpoint sources has been addressed by Malik et. al. in "Point Nonpoint Source
                     Trading of Pollution Abatement: Choosing the Right Trading Ratio." Two types
                     of uncertainty are recognized: the effectiveness of nonpoint source controls, and
                     NPS loadings reductions attributable to weather. Uncertainty in the effectiveness
                     of nonpoint source controls would justify higher trading ratios, which imply
                     expected net reductions in loadings. The uncertainty attributable to weather,
                     however, may justify lower ratios.


               H.    NOTABLE CASE STUDIES


                     A@,    Dillon Reservoir, Colorado

                     The Dillon Water Quality Management Plan established the nation's first
                     point/nonpoint source phosphorus trading program. The program is driven by the
                     reservoir's phosphorus limit and a perceived need to offset new nonpoint sources
                     of phosphorus with phosphorus removals elsewhere in the watershed. A 2:1
                     trading ratio was established in which point sources received a credit of one
                     additional pound of phosphorus above their allocation for every 2 pounds of
                     phosphorus removed from a nonpoint source that existed before 1984. This ratio
                     establishes a safety margin and has also been used in two trades to offset
                     increased loadings from new nonpoint source discharges to the reservoir.

                     B.     Tar-Pamlico, North Carolina

                     A point/nonpoint source trading program was developed as part of the overall
                     nutrient management strategy of the Tar-Pamlico River Basin. Under the
                     established rules of this trading program, it is anticipated that trading will achieve
                     equivalent or better water quality than would have been achieved under originally
                     proposed effluent limits. The trading program allows a coalition of point source
                     discharges (the Basin Association) to fund less expensive nonpoint source controls,
                     thus avoiding high compliance costs associated with major facility upgrades.
                     Monies generated by trading go into a fund where they are subsequently allocated
                     by the Division of Soil and Water Conservation for nonpoint source control
                     implementation.






                                                                                      Appendix H



                 C.     Cherry Creek, Colorado

                 Several years ago, the citizens of Cherry Creek Reservoir in Colorado anticipated
                 a significant population increase as a result of development pressure. It was
                 determined that this growth would result in an exceedance of the reservoir's
                 phosphorus budget by 1990. The Cherry Creek trading program will allow the
                 reservoir to accommodate growth by permitting municipal wastewater treatment
                 plants to gain waste load allocation credits in exchange for the implementation of
                 nonpoint source controls. Because the greatest amount of phosphorus loading
                 comes from nonpoint sources, the trading program will go into effect only after
                 urban nonpoint sources reduce their loading by 50 percent.















































































































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