Utilities Department January 26, 2010

1. Orange County Board of County CommissionersUpdate on USEPA Rulemaking for Numeric Nutrient Criteria Utilities Department January 26, 2010

2. Presentation Outline • Background • Proposed Water Quality Standards • Potential Impacts to OCU • FWEA Utility Council Legal Challenge • Requested Action

3. Presentation Outline • Background • Proposed Water Quality Standards • Potential Impacts to OCU • FWEA Utility Council Legal Challenge • Requested Action

4. Background • EPA is proposing more stringent standards for surface waters in the State of Florida • Numeric Nutrient Criteria (NNC) are proposed water quality standards that set numeric limits for the amount of nitrogen and phosphorus allowed in surface waters • Nutrient pollution comes from stormwater runoff, fertilizer, livestock, septic tanks, detergents, municipal wastewater treatment and burning of fossil fuels

5. Background The EPA’s proposed NNC Rule is intended to replace Florida’s current “narrative” nutrient criteria Florida’s narrative nutrient criterion provides, “in no case shall nutrient concentrations of a body of water be altered so as to cause an imbalance in natural population of flora or fauna” The FDEP implements the “narrative” criterion through site-specific biological assessments together with outreach to stakeholders

6. Background • December 2001, the FDEP began developing NNC to complement its narrative criterion • July 2008, Coalition of environmental groups filed suit against the EPA for failing to set numeric standards in Florida as required by the Clean Water Act • August 2009, EPA reached settlement with environmental groups by agreeing to adopt NNC only in Florida • January 2009, EPA declares NNC necessary for Florida to be in compliance with the Clean Water Act and sets deadlines • September 2009, FDEP puts NNC rulemaking on hold • January 14, 2010, EPA signed proposed NNC Rule for publication

7. Presentation Outline • Background • Proposed Water Quality Standards • Potential Impacts to OCU • FWEA Utility Council Legal Challenge • Requested Action

8. Proposed Water Quality Standards • Current Advanced Wastewater Treatment (AWT) removes approximately 90% of the nitrogen and phosphorus in wastewater • The proposed NNC will require removal of approximately 98% of the nitrogen and phosphorus in reclaimed water that flows to surface waters • EPA rulemaking schedule: • February 17, 2010 – EPA Public hearing in Orlando • October 15, 2010 – EPA deadline for adopting NNC for inland waters

9. Proposed Water Quality Standards - Issues Proposed NNC are not based on biological responses to nutrients and are “one-size-fits-all” The established Total Maximum Daily Load (TMDL) provides site specific criteria and is technically and scientifically more defensible

10. Proposed Water Quality Standards - Issues Florida is the only state singled out for the new rule at this time Does not have targeted goals that provide for the clean-up of the most critical surface waters first Compliance schedule for wastewater facilities is unclear

11. Proposed Water Quality Standards - Issues Use of reclaimed water for irrigation and groundwater recharge near water bodies may be affected Municipal stormwater discharge permittees must also meet the new nitrogen and phosphorus limits

12. Presentation Outline • Background • Proposed Water Quality Standards • Potential Impacts to OCU • FWEA Utility Council Legal Challenge • Requested Action

13. Potential Impacts to Orange County Utilities • OCU operates three regional water reclamation facilities providing advanced treatment with a total capacity of 70 million gallons per day (MGD) • Constructed wetlands provide additional treatment of up to 9.2 MGD for surface water flows

14. Potential Impacts to Orange County Utilities • Facility upgrades will be needed to provide a higher removal of nitrogen and phosphorus for surface flows • Microfiltration / reverse osmosis • Chemical coagulation and precipitation • Cost of facility upgrades is $147 million • Additional operational cost is $17 million per year • Additional $200 per customer connection per year • 34% increase to the average wastewater bill

15. Presentation Outline • Background • Proposed Water Quality Standards • Potential Impacts to OCU • FWEA Utility Council Legal Challenge • Requested Action

16. FWEA Utility Council Legal Challenge • The Florida Water Environment Association Utility Council’s (FWEAUC) mission is to assist its members to achieve sound public health and environmental goals for the millions of users they serve in an efficient and cost-effective manner and work for the reduction and elimination of water pollution in Florida • FWEAUC members provide wastewater service to over 7 million people in the State of Florida

17. FWEA Utility Council Legal Challenge FWEAUC has initiated a rulemaking challenge FWEAUC has requested members to share in the cost of the challenge OCU’s share of the anticipated cost is $9,360

18. Requested Action Approval for Orange County Utilities to provide financial support in the amount of $9,360 to the Florida Water Environment Association Utility Council’s legal challenge to the U.S. Environmental Protection Agency’s proposed Numeric Nutrient Water Quality Criteria (NNC) rule for the State of Florida