Virginia Administrative Code › Title 9 - ENVIRONMENT › Agency 25 - STATE WATER CONTROL BOARD › Chapter 900 - CERTIFICATION OF NONPOINT SOURCE NUTRIENT CREDITS › Part VI - Financial Assurance › Section 9VAC25-900-230 - Financial assurance applicability

Current through Register Vol. 40, No. 24, July 15, 2024
A. An owner of a
				  nutrient credit-generating project that utilizes structural BMPs for the
				  generation of perpetual credits shall submit and maintain financial assurance
				  in accordance with this part. The financial assurance mechanism shall be
				  submitted to and approved by the department prior to the release of
				  credits.
B. An owner of a nutrient
				  credit-generating project that utilizes structural BMPs for the generation of
				  term credits with terms that exceed one year shall submit and maintain
				  financial assurance in accordance with this part. However, an owner of a
				  nutrient credit-generating project that utilizes structural BMPs for the
				  generation of term credits with terms that exceed one year shall not be
				  required to submit and maintain financial assurance in accordance with this
				  part, provided that the department annually approves the generation of the term
				  nutrient credits prior to release of the credits. In accordance with
				  9VAC25-900-90
				  B, the financial assurance mechanism shall be submitted to and approved by the
				  department prior to the release of credits. For the purposes of this part, term
				  credit shall refer to credit with a term greater than one year but not
				  perpetual.
C. An owner of a
				  nutrient credit-generating project using proposed new wetland or stream
				  restoration practices not subject to
				  33 CFR
				  332.8 and § 62.1-44.15:23 of the Code of
				  Virginia for the generation of perpetual credits shall be required to submit
				  and maintain financial assurance in accordance with this chapter. In accordance
				  with
				  9VAC25-900-90
				  B, the financial assurance mechanism shall be submitted to and approved by the
				  department prior to the release of credits. The following financial assurances
				  shall be provided for these new wetland or stream restoration projects:
1. A monitoring plan financial assurance
				  mechanism shall be established to ensure implementation of the monitoring plan
				  pursuant to
				  9VAC25-900-120
				  for any nutrient credits generated from wetland or stream restoration. When the
				  owner conducts the required monitoring and submits a complete monitoring report
				  as specified in the monitoring plan and report requirements, then the owner may
				  request a reduction of the required financial assurance amount equivalent to
				  the cost of one year of monitoring, subject to department approval. If any
				  funds remain in the financial assurance mechanism after the monitoring period,
				  the mechanism shall be maintained until the final monitoring report is
				  submitted and approved, at which point the mechanism shall be released by the
				  department;
2. A long-term
				  management fund financial assurance mechanism shall be established in support
				  of required long-term management plan tasks pursuant to
				  9VAC25-900-120
				  for any nutrient credits generated from wetland or stream restoration.
				  Long-term management funds shall be placed in a separate interest bearing trust
				  account in an appropriate financial institution and may be funded from a
				  sufficient percentage of all credit sale proceeds, a single lump sum payment,
				  or an approved schedule of payments, subject to department approval. No
				  long-term management funds shall be used to finance any expense or activity
				  other than those specified in the long-term management plan unless approved by
				  the department. Responsibility for and access to the long-term management fund
				  is given to the owner or long-term steward and may be transferred to any new
				  long-term steward that is designated by the owner and approved by the
				  department; and
3. In lieu of the
				  long-term management fund trust account for stream restoration projects
				  established in subdivision 2 of this subsection, a third-party long-term
				  steward approved by the department, such as a public agency, nongovernmental
				  organization, or private land manager, may hold long-term management funds in a
				  separate interest-bearing account to be used only for the long-term management
				  of the stream restoration project.