4462793 Environment, District Department of the - Notice of Final Rulemaking - Stormwater Fee Discount Program
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DISTRICT DEPARTMENT OF THE ENVIRONMENT
NOTICE OF FINAL RULEMAKING
Stormwater Fee Discount Program
The Acting Director of the District Department of the Environment (DDOE or the Department), hereby gives notice of the amendment of Title 21 (Water and Sanitation), Chapter 5 (Water Quality and Pollution), of the District of Columbia Municipal Regulations (DCMR) to establish a stormwater fee discount program by the adoption of final rules.
The authority for the rulemaking is set forth in the District Department of the Environment Establishment Act of 2005, effective February 15, 2006, as amended (D.C. Law 16-51; D.C. Official Code §§ 8-151.01 et seq. (2008 Repl. & 2012 Supp.)); the Comprehensive Stormwater Management Enhancement Amendment Act of 2008, effective March 25, 2009, as amended (D.C. Law 17-371; D.C. Official Code §§ 8‑152.01 et seq. (2008 Repl. & 2012 Supp.)); the Water Pollution Control Act of 1984, effective March 16, 1985, as amended (D.C. Law 5-188; D.C. Official Code §§ 8‑103.01 et seq. (2008 Repl. & 2012 Supp.)); and Mayor’s Order 2006-61, dated June 14, 2006.
The rules, which follow, are final and are effective immediately on the date of publication of this notice in the D.C. Register. As Section 4 of D.C. Law 17-371 requires, prior to the issuance of a Notice of Final Rulemaking, this rulemaking was submitted to the Council of the District of Columbia (Council) for a review period of up to forty-five (45) days, excluding weekends, holidays, and days of Council recess. No Council comments affecting adoption as final were received.
Summary of the Final Rulemaking
The final rules amend 21 DCMR (Water and Sanitation), Chapter 5 (Water Quality and Pollution) by adding Sections 557 through 563 and changing and adding definitions to Section 599.
The Department initially proposed rules to establish a stormwater fee discount program in the D.C. Register at 58 DCR 6428 (July 29, 2011). The Department received detailed comments from eleven (11) stakeholder organizations and individuals. In response to comments, the Department changed the rules and proposed them for comment a second time in the D.C. Register at 59 DCR 11569 (October 5, 2012). For the second proposed rules, the Department extended the comment period, upon request, until November 19, 2012 (59 DCR 12895 (November 9, 2012)).
In response to the second proposed rulemaking, the Department received comments from seven (7) stakeholder organizations and individuals. The Department reviewed and carefully considered all of the submitted comments.
No substantial changes were made to the second proposed rulemaking. However, based on the comments received, the Department has made seven (7) clarifying changes. In addition to the clarifying changes, the Department has made some edits to the rulemaking to conform to the style of the District of Columbia’s publisher of the D.C. Register, the Office of Documents and Administrative Issuances (ODAI). The edits include inserting parentheticals in each section to indicate acronyms or shorter terms, as well as adding and removing commas. The Department has determined to adopt the following rules as final without a further comment period.
Clarifying Changes and Response to Comments for the Final Rules
DDOE received seven (7) comments during the public review and comment period. Several of the comments addressed changes that would clarify the Department’s original intent or eliminate redundancy in the rulemaking. A copy of the written comments and the Department’s responses is available for review at the Department’s headquarters and on the Department’s website as follows: Go to http://ddoe.dc.gov/; click on “Regulation & Law”; and then choose from the pull-down menu “Water Quality Regulations.”
Each of the seven (7) changes responds to the comments directly or comes from the careful review that the comments occasioned. In each case, the change clarifies DDOE’s original intent. These changes, and the Department’s rationale for them, are described in the following paragraphs:
Change 1 [Adds 558.7(a)]: This change eliminates an ambiguity. DDOE thought that the regulatory scheme presented was logically obvious – a person would seek approval for a discount, and then, if the compliant Best Management Practice (BMP) had been in place before these rules became effective, the person could also seek a discount for the period of time the BMP had been in place (retroactive discount). DDOE had placed the retroactivity section before the general compliance section because it seemed to make sense from a chronological perspective.
However, DDOE received a comment which reads the two provisions as potentially independent of each other – that a person might establish retroactive eligibility without showing that a BMP was, in general, the type of BMP eligible for a discount. This interpretation would read the rule as grandfathering otherwise ineligible installations. Such grandfathering is not uncommon in rulemaking.
But, such grandfathering was not DDOE’s intent. Rather, DDOE’s intent, and the careful reading of the rules, requires any BMP to first demonstrate eligibility for a discount. Only upon such a demonstration can retroactivity be assessed. The change simply clarifies this issue.
Therefore, DDOE has added a phrase to clarify that, in order to receive a retroactive discount, a customer must have been eligible for a discount pursuant to Subsection 558.9. DDOE’s intent has always been that a person must show eligibility for a discount and, only thereafter, eligibility to secure the discount retroactively.
The change is indicated by underlining for additions:
558.7 To receive a Retroactive Discount, the customer must:
(a) Be otherwise eligible to receive a discount;
(b) Provide documentation verifying the date of installation;
(c) Prove that the practice installed is still functional;
(d) Allow the Department to inspect each BMP identified on the application; and
(e) Apply no later than one (1) year from the date on which the customer has the right to apply.
Changes 2 and 3 [Edits to 558.9]:
Change 2 [Edits to 558.9(c)]: This change eliminates a misunderstanding. A comment asked what evidence DDOE will require of property owners to demonstrate construction code approval. It seemed, said a comment, that DDOE was setting itself up as building code enforcer in addition to the District of Columbia Department of Consumer and Regulatory Affairs (DCRA).
This was not DDOE’s intent. Rather, DDOE simply wanted to communicate that construction work required for a BMP should comply with the construction code. There are many ways for the agency administratively to determine this. One option, presently under consideration, is simply to ask the applicant to verify compliance with the construction code by signing a form.
DDOE’s intent has always been to streamline the process; not to add layers of certifications.
Therefore, DDOE has reworded subparagraph “(c)” to require a BMP to meet construction codes. This clarifies that DDOE is not requiring a person to apply for construction permits and submit them to DDOE. A person can obtain a construction permit at DCRA’s Permit Center. The reason for the change is to avoid confusion in the discount process that would come from repeated and potentially unnecessary DCRA applications.
Change 3 [Edits to 558.9(e)(2)]: This change clarifies the word “guidelines.” A commenter asked DDOE what set of guidelines it had in mind as the reference for BMP construction. Because there is only one such set of Department guidelines specifically for stormwater management, DDOE has clarified the term by substituting the name of the guidelines that it originally intended to reference, the Department’s Stormwater Management Guidebook (Guidebook). The Guidebook can be found at DDOE’s website, http://ddoe.dc.gov by typing the term “Stormwater Guidebook” into the search box. DDOE’s proposed update of the Guidebook, addressed in another rulemaking, is found at http://ddoe.dc.gov/draftstormwaterguidebook.
Changes 2 and 3 are shown by strikethrough for deletions and underlining for additions:
558.9 A BMP shall, in order to be eligible for the discount:
(a) Be fully installed and functioning;
(b) Retain or infiltrate stormwater runoff;
(c)
Have received required construction codes approvalComply with all applicable construction codes;(d) Be properly sized and located;
(e) Be designed and functioning in accordance with:
(1) Applicable industry and professional standards and specifications in effect at the time of installation; and
(2)
Department guidelinesThe Department’s Stormwater Management Guidebook; and(f) Be subject to inspection by the Department.
Changes 4 and 5 [Edits to 558.11(c)]:
Change 4: This change corrects confusing language. A commenter proposed that DDOE strike the line “The property is sold or transferred to a new owner” and asked what was meant by “transferred.” On reflection, DDOE has determined that the sentence is confusing, because a sale is but one means to transfer property. DDOE’s intent was to address transfers in general and, because the bulk of them are sales, refer to sales specifically.
Therefore, DDOE has inserted the word “otherwise” as a clarification of the sentence’s original wording. Now the phrase recognizes that a sale is but one method of a transfer to a new owner.
Change 5: This change affirms DDOE’s intent for a streamlined new property owner application process. The same commenter that initiated Change 4 also suggested that DDOE change the subsection so that new owners could automatically continue to use the earlier owner’s discount. The commenter offered that DDOE’s inspection rights allowed it to ensure that a new owner would understand and maintain a BMP in such a way as to continue to qualify for the discount.
While, per Change 4, DDOE is clarifying the transfer/sale wording, DDOE has declined to remove the proposed rules’ new application requirement for the new owner. DDOE’s intent was to put the burden on the new owner to promise compliance and show the compliance; not to put the burden on DDOE inspectors to learn of the transfer, find the new owner or management staff, and inspect. On the other hand, DDOE did not intend the new application to be cumbersome.
DDOE intended to make relatively simple the process for securing a new owner’s discount. The change, which embodies that intent, explains that the new owner may incorporate by reference documents already in DDOE’s files and direct the Department to use the technical information from the earlier approved application in support of the new discount.
Changes 4 and 5 are indicated by underlining for the additions:
558.11 An approved discount shall expire on the first of:
(a) The end of the stormwater fee discount period provided in this chapter;
(b) The property or BMP is no longer eligible for the discount; or
(c) The property is sold or otherwise transferred to a new owner, except that the new owner may direct the Department to use the technical information from the earlier approved application in support of the new discount.
Change 6 [Deleted 559.7]: This change eliminates surplus wording. In its proofreading, DDOE found that Subsection 559.7 required the same thing as had an earlier Subsection, 559.6 – that the simplified application calculation be consistent with the more rigorous standard application calculation of Subsection 559.2. But, this is clear from reading the steps to be taken for Subsection 559.6, which details the simplified calculation. The Subsection 559.6 wording makes Section 559.7 redundant. Therefore, DDOE has deleted as redundant Subsection 559.7.
Change 7 [Edits to 560.2]: This change clarifies a vague term and formats it properly. A commenter proposed that DDOE remove from Subsection 560.2 the terms “customer”, “tenant”, and “manager” from the list of people who can provide an inspector access to the property. This change, if adopted, could present substantial uncertainty, confusion, and unnecessary friction when inspecting BMPs. DDOE is not accepting the commenter’s proposal, but it is clarifying what was intended in the proposed rules: that persons onsite who have authority in fact to allow entry, or whose position provides a reasonable appearance of that authority, could allow entry.
Therefore, DDOE has clarified the list of persons who can permit an inspector to enter the site by rewriting a phrase and structuring it into the outline format that ODAI urges as more readable. The reason for the change is that (1) the structure of the relevant phrase, in a single, non-outlined sentence, was confusing, and (2) the term “appropriate person” was vague and confusing, inadequately communicating the intended concept of an owner or owner’s agent who could give permission to enter.
The change is shown by strikethrough for deletions and underlining for additions:
560.2 In order to secure access to a property to inspect a BMP, the Department shall seek permission from
an appropriate person, including the owner, a customer, a tenant, or a managerthe owner, or the owner’s agent, including:(a) The customer identified in the District of Columbia Water and Sewer Authority’s records;
(b) A tenant; or
(c) The property manager.
Final Action
The Department analyzed all comments received and determined that no substantial changes were needed to the proposed rules. The Department is making only clarifications and a few typographical edits. Consequently, the Department is taking the action stated in the instant Notice and adopting the following as final rules:
Title 21, WATER AND SANITATION, Chapter 5, WATER QUALITY AND POLLUTION, of the DCMR is amended by adding Sections 557 through 563, as follows:
557 Stormwater fee discount program: PURPOSE
557.1 The purposes of Sections 557 through 563 are to:
(a) Implement the District Department of the Environment’s stormwater fee discount program;
(b) Reduce the volume of stormwater runoff from properties in the District of Columbia; and
(c) Comply with the requirements of the Comprehensive Stormwater Management Enhancement Amendment Act of 2008, effective March 25, 2009, as amended (D.C. Law 17-371; D.C. Official Code §§ 8-152.01 et seq.).
558 STORMWATER FEE DISCOUNT PROGRAM: ELIGIBILITY
558.1 The stormwater fee discount program shall apply to each retail District of Columbia Water and Sewer Authority (DC Water) customer that pays the stormwater fee described in § 556 of this chapter.
558.2 The District Department of the Environment (Department) shall grant a stormwater fee discount to a customer that has installed an eligible Best Management Practice (BMP) on its property.
558.3 A customer shall have the right to apply for the stormwater fee discount beginning on the effective date of this section; except that, for a Simplified Application, the customer shall have the right to apply no earlier than one (1) year after the effective date of this section.
558.4 The Department shall calculate the discount to be applied to the customer’s DC Water bill:
(a) As a recurring credit to the stormwater fee billed pursuant to § 556;
(b) Beginning to accrue with the billing period that follows the Department’s receipt of a complete discount application; and
(c) For the stormwater fee discount period which this chapter sets.
558.5 Notwithstanding any other provision of this section, if the customer installed an eligible BMP on its property before the effective date of this section, the discount shall begin to accrue as a Retroactive Discount on the later of:
(a) The eligible BMP’s installation date; or
(b) May 1, 2009.
558.6 The Department shall calculate the Retroactive Discount that is to be applied to the customer’s DC Water bill as an offset to the stormwater fee until the Retroactive Discount is zero (0).
558.7 To receive a Retroactive Discount, the customer must:
(a) Be otherwise eligible to receive a discount;
(b) Provide documentation verifying the date of installation;
(c) Prove that the practice installed is still functional;
(d) Allow the Department to inspect each BMP identified on the application; and
(e) Apply no later than one (1) year from the date on which the customer has the right to apply.
558.8 A customer seeking a stormwater fee discount shall, in order to be eligible for the discount:
(a) Be current on all billed stormwater fee payments;
(b) Submit a complete application to the Department, in a manner prescribed by the Department; and
(c) Unless applying via a Simplified Application, accurately describe in the application the design and performance of the BMP by referencing or submitting:
(1) The final stormwater management plan approval notice issued by the Department; or
(2) All of the following:
(A) Designs;
(B) Technical specifications; and
(C) Calculation of stormwater retention volume.
558.9 A BMP shall, in order to be eligible for the discount:
(a) Be fully installed and functioning;
(b) Retain or infiltrate stormwater runoff;
(c) Comply with all applicable construction codes;
(d) Be properly sized and located;
(e) Be designed and functioning in accordance with:
(1) Applicable industry and professional standards and specifications in effect at the time of installation; and
(2) The Department’s Stormwater Management Guidebook; and
(f) Be subject to inspection by the Department.
558.10 As a requirement of continued eligibility, the customer shall:
(a) Properly maintain the BMP so that it continues to function as designed and approved; and
(b) Continue to allow the Department access to the property to inspect the BMP.
558.11 An approved discount shall expire on the first of:
(a) The end of the stormwater fee discount period provided in this chapter;
(b) The property or BMP is no longer eligible for the discount; or
(c) The property is sold or otherwise transferred to a new owner; except that the new owner may direct the Department to use the technical information from the earlier approved application in support of the new discount.
559 Stormwater Fee Discount Program: DISCOUNT CALCULATION
559.1 No stormwater fee discount shall exceed the maximum allowable discount, which shall be fifty-five percent (55%) of the otherwise chargeable stormwater fee.
559.2 The stormwater fee discount shall be calculated as follows:
(a) Determine, in gallons, the maximum volume of stormwater runoff retained by the eligible Best Management Practice (BMP) during a one and two-tenths-inch (1.2 in.) rainfall event;
(b) Divide the step “(a)” result by seven hundred ten and seventy-five hundredths gallons (710.75 gal.) per Equivalent Residential Unit (ERU) (the number of gallons of stormwater runoff per ERU that would be generated by a one and two-tenths-inch (1.2 in.) rainfall event);
(c) Multiply the step “(b)” result by the maximum allowable discount percentage; and
(d) Multiply the step “(c)” result by the stormwater charge per ERU specified in § 556.
559.3 The calculated stormwater fee discount shall be applied to each month’s obligation of the stormwater fee.
559.4 The stormwater fee discount will appear on the customer’s District of Columbia Water and Sewer Authority bill beginning with the billing period that follows the District Department of the Environment’s (Department’s) receipt and processing of a complete application, which processing will include transmittal to DC Water to incorporate the discount in the customer’s billing calculation.
559.5 A customer shall have the right to apply with a Simplified Application for a property with a BMP, or multiple BMPs, that manages a cumulative impervious area of two thousand square feet (2,000 sq. ft.) or less.
559.6 The Department shall calculate the discount eligible for use of the Simplified Application as follows:
(a) Determine the total area that the BMP(s) manages, in square feet;
(b) Divide the step “(a)” result by the original total area of impervious surface, and express the quotient as a percentage;
(c) Multiply the step “(b)” result by the maximum allowable discount;
(d) Multiply the percentage result from step “(c)” by the stormwater charge per ERU specified in § 556; and
(e) Add the product of 0.13 ERU per rain barrel installed multiplied by the stormwater charge per ERU specified in § 556.
560 Stormwater Fee Discount Program: Inspection
560.1 The District Department of the Environment (Department) shall have the right to inspect a property, for which a customer has applied or is receiving a stormwater fee discount, in order for the Department to determine whether the Best Management Practice (BMP) retains the stormwater runoff volume:
(a) Described on the discount application; or
(b) Previously approved for a discount.
560.2 In order to secure access to a property to inspect a BMP, the Department shall seek permission from the owner, or the owner’s agent, including:
(a) The customer identified in the District of Columbia Water and Sewer Authority’s records;
(b) A tenant; or
(c) The property manager.
560.3 A customer’s refusal or knowing failure to provide the Department with access to inspect the BMP shall constitute grounds to deny or revoke the discount, effective the date of the unsuccessful inspection attempt.
561 Stormwater Fee Discount Program: APPROVAL Period; REAPPROVAL
561.1 A stormwater fee discount shall be approved for a discount period of three (3) years, running ordinarily from the date of approval.
561.2 In order to receive approval for an additional stormwater fee discount period, a customer must submit an application to the District Department of the Environment (Department).
561.3 In order to avoid a lapse in a discount while the Department reviews an application for approval of an additional discount period, a customer must submit the application by sixty (60) days before the expiration of the current stormwater fee discount period.
561.4 The application shall be submitted on such forms, and in hard copy or electronically, as the Department may designate.
561.5 Upon receipt of an application for approval of an additional discount period, the Department may perform an inspection to verify that the Best Management Practice (BMP) remains eligible for the discount.
561.6 The Department may deny or approve an application for approval of an additional discount period, in whole or in part.
561.7 If the Department approves the application, the stormwater fee discount shall be approved for an additional discount period running from the earlier of:
(a) The date of the approval; or
(b) The expiration of the preceding approval period.
561.8 An eligible BMP may be approved for more than one (1) period.
562 Stormwater Fee Discount Program: Denial, Reduction, or Revocation of Stormwater Fee Discount
562.1 The District Department of the Environment (Department) may make a decision to:
(a) Deny an application for a discount or discount period, in whole or in part; and
(b) Reduce or revoke a discount for a Best Management Practice’s nonperformance, its failure to retain the stormwater runoff volume for which a discount was approved.
562.2 The Department shall provide to the customer a notice of a decision, stating the basis for the decision and the customer’s right to dispute the Department’s decision, which may include a statement of:
(a) Each deficiency;
(b) Corrective action necessary;
(c) Deadline, if any;
(d) The proposed denial, reduction, or revocation of a discount;
(e) The requirement, if any, for an inspection or re-inspection; and
(f) The customer’s right to appeal, as provided in this chapter.
562.3 The Department may extend the period for corrective action for good cause shown.
563 ADMINISTRATIVE APPEALS AND JUDICIAL REVIEW
563.1 With respect to a matter governed by Sections 557 through 562 of this chapter, a person adversely affected or aggrieved by an action of the District Department of the Environment (Department) shall exhaust administrative remedies by timely filing an administrative appeal with, and requesting a hearing before, the Office of Administrative Hearings (OAH), established pursuant to the Office of Administrative Hearings Establishment Act of 2001, effective March 6, 2002, as amended (D.C. Law 14-76; D.C. Official Code, §§ 2‑1831.01 et seq.), or OAH’s successor.
563.2 For the purposes of Sections 557 through 562 of this chapter, an action of the Department taken with respect to a person shall include:
(a) Signed settlement of a decision;
(b) Approval;
(c) Denial;
(d) Determination; or
(e) Other action of the Department which constitutes the consummation of the Department’s decision-making process and is determinative of a person’s rights.
563.3 A person aggrieved by an action of the Department shall file a written appeal with OAH within the following time period:
(a) Fifteen (15) calendar days of service of the notice of the action; or
(b) Another period of time stated specifically in this section for an identified Department action.
563.4 An action of the Department identified in this section shall become the final, unappealable, and unreviewable action of the Department unless a person has filed a timely administrative appeal with OAH within fifteen (15) days of the action.
563.5 Notwithstanding another provision of this section, the Department may, for good cause shown, extend a period for filing an administrative appeal with OAH if it does so explicitly in writing before the period expires.
563.6 OAH shall:
(a) Resolve an appeal by:
(1) Affirming, modifying, or setting aside the Department’s action complained of, in whole or in part;
(2) Remanding for Department action or further proceedings, consistent with OAH’s order; or
(3) Providing such other relief as the governing statutes, regulations, and rules support;
(b) Act with the same jurisdiction, power, and authority as the Department may have for the matter currently before OAH; and
(c) By its final decision render a final agency action that will be subject to judicial review.
563.7 The filing of an administrative appeal shall not in itself stay enforcement of an action, except that a person may request a stay according to the rules of OAH.
563.8 The burden of proof in an appeal of an action of the Department shall be allocated to the person who appeals the action, except the Department shall bear the ultimate burden of proof when it denies a right.
563.9 The burden of production in an appeal of an action of the Department shall be allocated to the person who appeals the action, except that it shall be allocated:
(a) To the Department when a party challenges the Department’s suspension, revocation, or termination of a:
(1) License;
(2) Permit;
(3) Continuation of an approval; or
(4) Other right;
(b) To the party who asserts an affirmative defense; and
(c) To the party who asserts an exception to the requirements or prohibitions of a statute or rule.
563.10 The final OAH decision on an administrative appeal shall thereafter constitute the final, reviewable action of the Department and shall be subject to the applicable statutes and rules of judicial review for OAH final orders.
563.11 An action for judicial review of a final OAH decision shall not be a de novo review but shall be a review of the administrative record alone and not duplicate agency proceedings or hear additional evidence.
563.12 Nothing in this chapter shall be interpreted to:
(a) Provide that a filing of a petition for judicial review stays enforcement of an action; or
(b) Prohibit a person from requesting a stay according to the rules of the court.
563.13 If a term in a provision of this section conflicts with a provision in another section of this chapter, the term in the provision of this section controls.
Section 599, DEFINITIONS, is amended to change and add the following definitions, and these additional definitions shall be inserted in the correct alphabetical order:
Best Management Practice (BMP) – Structural or nonstructural practice that minimizes the impact of stormwater runoff on receiving water bodies and other environmental resources, especially by reducing runoff volume and the pollutant loads carried in that runoff.
Construction Codes – The District of Columbia’s Construction Codes administered by the District of Columbia Department of Consumer and Regulatory Affairs, and ordinarily consisting of the Building Code, Residential Code, Electrical Code, Fuel Gas Code, Mechanical Code, Plumbing Code, Property Maintenance Code, Fire Safety Code, Energy Conservation Code, and waivers thereto authorized and duly granted by the District of Columbia’s code official.
DC Water – The District of Columbia Water and Sewer Authority.
Department – The District Department of the Environment, except that the term “department” shall simply mean the word “department” when the context clearly shows that the term is so used in the title of a statute or a publication.
Department of Consumer and Regulatory Affairs (DCRA) – The District of Columbia Department of Consumer and Regulatory Affairs.
Stormwater – Flow of water that results from runoff, snow melt runoff, and surface runoff and drainage.
Stormwater Management – A system to control stormwater runoff with structural and nonstructural Best Management Practices, including: (a) quantitative control of volume and rate of surface runoff; and (b) qualitative control to reduce or eliminate pollutants in runoff.