Main

Background

Pennsylvania’s Major Watersheds

Section 96.8 - Trading Regulation

Credit Generation Process

Offset Generation Process

Request for Certification

Calculations

Use of Credits and Offsets

Certified Projects

Contract/Trade Information

Verification Information

Registration Information

Nutrient Credit Clearinghouse

NutrientNet

Cost-effective Review Examples

Fact Sheet

Questions

• A permittee will only be authorized to use credits and offsets through the provisions of its NPDES permit. The permit conditions will require appropriate terms, such as recordkeeping, monitoring and tracking, and reporting in DMRs.
• Effective March 1, 2012, the Department clarifies that offsets cannot count toward credit generation. Unlike credits, offsets are not tradable and may only be used to comply with the permitted cap loads. This clarification of Department policy impacts only those certification letters dated after March 1, 2012.
• Only credits and offsets generated from activities located within the Chesapeake Bay Watershed may be used to meet NPDES permit requirements related to the Chesapeake Bay. Credits generated in either the Susquehanna or Potomac basin may only be used in the basin in which they were generated, unless otherwise approved by the Department.
• A permittee shall ensure that the credits that the permittee applies to its permit for compliance purposes are certified, verified and registered, and that the offsets it applies to its permit for compliance purposes are approved in writing by DEP, for the compliance period in which the credits or offsets are used.
• The Department may authorize a period of 60 days or less following the completion of the annual compliance period in an NPDES permit, for a permittee to come into compliance through the application of credits and offsets to the permit, provided that the credits were registered and offsets were approved for use during that compliance period.
• A permittee relying on credits to demonstrate compliance with its permit effluent limitations, conditions and stipulations under Chapter 92a shall attain and maintain compliance with its permit. A permittee is responsible for enforcing the terms of its trade contract, when needed to ensure compliance with its permit. The Department may waive this requirement where the pollutant reduction activity fails due to uncontrollable or unforeseeable circumstances such as extreme weather conditions, and timely notice is provided to the Department, if the following apply:
  • The failure is not due to negligence or willfulness on the part of the permittee.
  • The Department determines that replacement credits will be available.
  • The Department determines that the requirements for restoration, protection and maintenance of the water quality of the Chesapeake Bay will be met due to the requirements of this section, which may include the type of methodologies used when certifying credits, the existence of an approved legal mechanism that is enforceable by the Department, and the use of a credit reserve.
• A permittee shall document the use of credits and offsets in DMR forms, which the permittee shall submit at the end of each compliance year or as otherwise provided or required in the permit. Credits may only be used to meet permit effluent limits for the compliance period for which they are certified, verified and registered by the Department, and offsets may only be used to meet permit effluent limits for the compliance period for which they are approved by the Department.

Reporting the use of Credits and Offsets

If a permittee is using credits towards meeting effluent limitations, then the registration numbers, provided by PADEP, will be reported on the Chesapeake Bay Supplemental Report Monthly Nitrogen Budget form and Chesapeake Bay Supplemental Report Monthly Phosphorus Budget form. Approved offsets will also be reported on these monthly budget forms. Credits and offsets will also need to be recorded on the Chesapeake Bay Supplemental Annual Nutrient Summary form.

If credits are purchased during the true-up period (October 1st - November 28th), then the registration numbers will be reported on a separate Chesapeake Bay Supplemental Report Monthly Nitrogen/Phosphorus Budget form and, in lieu of listing a specific month, should be listed as “Oct 1 – Nov 28, 2011”or “2011 Truing Period”, for example.

If credits are sold or purchased and reported as being sold or purchased on Chesapeake Bay Supplemental Report Monthly Nitrogen/Phosphorus Budget forms without registry numbers, then when the registry number is provided by PADEP each Chesapeake Bay Supplemental Report Monthly Nitrogen/Phosphorus Budget form will need to be revised and re-submitted.

To report nutrient loads, including the application of credits and offsets, three Chesapeake Bay supplemental forms are required to be attached to the monthly Discharge Monitoring Report (DMR) that is submitted to DEP, due 28 days following the end of the monitoring period:

• Nutrient Monitoring form (3800-FM-BPNPSM0444) (Word document);
• Monthly Nitrogen Budget form (3800-FM-BPNPSM0445) (Word document); and
• Monthly Phosphorus Budget form (3800-FM-BPNPSM0446) (Word document).

These 3 forms contain all of the approved calculations for nutrient loads. It is recommended that all permittees use the spreadsheet version of these forms, and use of the spreadsheet is required for requests to DEP for certification or verification.

Annual DMRs must be submitted to report annual loads. Annual DMRs cover the period October 1 – September 30, and are due November 28. Annual DMRs must include at least one attachment:

• Annual Nutrient Summary form (3800-FM-BPNPSM0447) (Word document) (Excel)

If credits or sold or applied or if offsets are applied during the Truing Period (October 1 – November 28), then the Monthly Nitrogen/Phosphorus Budget forms must also be attached to the Annual DMR.

All four of the forms can also be downloaded from www.elibrary.dep.state.pa.us.