Substitute House Bill No. 6624

Special Act No. 99-6

An Act Concerning Nitrogen Permitting and Trading Within the Water Discharge Regulation Programs of the Department of Environmental Protection.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

(a) On or before February 1, 2000, the Commissioner of Environmental Protection shall, within available appropriations, develop a plan for (1) a general permit specifying effluent limits for nitrogen in discharges to the waters of the state in accordance with the Comprehensive Conservation and Management Plan adopted by the states of Connecticut and New York and the federal Environmental Protection Agency for such discharges, and (2) a nitrogen credit exchange program and associated rules and procedures to facilitate the purchase and sale of nitrogen reduction credits between sources regulated under such general permit.

(b) Such plan shall specify: (1) A state-wide nitrogen load limit for discharges to the waters of the state; (2) the total maximum daily load for nitrogen in targeted areas of concern; (3) how effluent limits and other conditions will be established for each discharging entity covered by the general permit; (4) monitoring requirements which may be imposed on discharging entities and the circumstances under which such requirements will be imposed; (5) how the purchase and sale of nitrogen reduction credits from regulated sources participating in the nitrogen credit exchange will be conducted; (6) how annual credit values will be established, what the criteria for such valuation will be and the rationale for such criteria; (7) how new facilities will be integrated into the nitrogen credit exchange as they may be permitted to discharge nitrogen; (8) how the use of nitrogen credits will meet the state-wide nitrogen load limit for this state; (9) how and under what circumstances the sale of credits may be prohibited to protect local water quality; (10) how equivalency values for nitrogen credits will be established for use in trades between regulated sources; (11) the compliance and enforcement procedures that will be established for regulated sources participating in the nitrogen credit exchange; (12) any procedures that will be established to trade between point and nonpoint regulated sources; (13) any procedures that will be established to trade with industrial regulated sources discharging under National Pollution Discharge Elimination System authorities; (14) any procedures that will be established or changes that may be made to the exchange system to address nitrogen discharges occurring as a result of growth in this state; and (15) how the costs for the establishment, administration and management of the nitrogen credit exchange will be paid.

Approved May 27, 1999

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