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CITY COUNCIL AGENDA REPORT
City of Anaheim
DEPARTMENT OF PUBLIC WORKS
DATE: JUNE 13, 2023
FROM: DEPARTMENT OF PUBLIC WORKS
SUBJECT: ORDINANCE ADDING CHAPTER 10.13 (STORMWATER CREDIT PROGRAM) TO TITLE 10 (PUBLIC SERVICES AND UTILITIES)
OF THE ANAHEIM MUNICIPAL CODE ESTABLISHING A
STORMWATER CREDIT PROGRAM
ATTACHMENT (Y/N): YES ITEM
# 26
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the City Council, by Motion, introduce an Ordinance adding Chapter 10.13 (Stormwater Credit Program) to Title 10 (Public Services and Utilities) of the Anaheim Municipal Code establishing a Stormwater Credit Program; adopt the Stormwater Credit Program; and determine that the adoption of the Program is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the State CEQA Guidelines.
DISCUSSION:
The City is subject to the Municipal Separate Stormwater Sewer System (MS4) National Pollutant Discharge Elimination System (NPDES) Permit (Permit) issued by the Santa Ana Regional Water Quality Control Board (Regional Board) which requires, among other things, new development and redevelopment projects implement best management practices (BMPs) to reduce stormwater pollution. This currently involves capturing and treating stormwater on-site, once it is developed, prior to discharge to the City Storm Drain.
The City
has developed a Stormwater Credit Program (Program) (Attachment 2) which will provide public and private projects the opportunity to purchase stormwater credits (Credits) to allow for offsite treatment, rather than treating stormwater on site. To accomplish this, the City proposes to construct, own, and operate regional retention facilities (Credit Generators), which will provide multiple benefits, including:
a) Reducing
stormwater pollutants in greater volumes and more effectively than site by site efforts,
b) Supplementing local water supply by infiltrating water into the aquifer, c) Enhancing the City’s flood control capabilities,
d) Improving water quality immediately, rather than waiting until each project comes “online” to capture pollutants on a site-by-site basis, and Ordinance Adding Chapter 10.13 (Stormwater Credit Program) To Title 10 (Public Services and Utilities) of the Anaheim Municipal Code Establishing a Stormwater Credit Program
June 13, 2023
e) Lowering costs, increasing certainty of regulatory compliance for development projects.
The draft Program received written support from OC Coastkeeper, Orange County Public Works, the Orange County Water District, and the Construction Industry Coalition on Water Quality, among others. City staff has coordinated with the Regional Board for the last two years for review and comment on the Program in order to obtain the required approval to allow for implementation.
On April 3, 2023, the Executive Officer of the Regional Board provided this approval of the Program in an Authorization Letter (Attachment 3).
Participating in the Program is voluntary. The Credit user may purchase Credits or construct a stormwater capture and treatment system on the parcel(s) they are developing or redeveloping, or simply capture and treat stormwater onsite as is currently required and not purchase Credits.
The City will be responsible for the operations and maintenance of the Credit Generators, and the accounting of the Program. Currently, the City has two facilities that are constructed and in operation: Modjeska Park facility (Anaheim Bay Watershed) and La Palma/Richfield facility (Santa Ana River Watershed).
The Credit Price will be adopted at a later date. It has been developed based on the cost of planning, design, construction, and operations & maintenance of the two existing Credit Generators. The revenue from the Program will be used to operate and maintain existing facilities, administer the Program, and develop future Credit Generators.
ENVIRONMENTAL DETERMINATION:
Staff recommends that the City Council determine that the proposed Ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the State CEQA Guidelines. This determination is based on the fact the proposed fees will not result in a direct or reasonably foreseeable indirect physical change in the environment and it is not a project as defined in Section 15378.
IMPACT ON BUDGET:
Revenue from the Program will be included in a Public Works Department Stormwater Credit Program Fund.
Respectfully submitted,
Rudy Emami
Public Works Director
Attachments:
1. Ordinance
2. Anaheim Stormwater Credit Program
3. Authorization to Proceed
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
ANAHEIM ADDING CHAPTER 10.13 (STORMWATER CREDIT
PROGRAM) OF TITLE 10 (PUBLIC SERVICES AND
UTILITIES) TO THE ANAHEIM MUNICIPAL CODE
ESTABLISHING A STORMWATER CREDIT PROGRAM AND
BASED UPON THE FINDING AND DETERMINATION THAT
SAID ORDINANCE IS NOT SUBJECT TO THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT (CEQA) PURSUANT TO
SECTIONS 15060(C)(2) AND 15060(C)(3) OF THE STATE CEQA
GUIDELINES.
WHEREAS, the City of Anaheim (“City”) is regulated by the Santa Ana Regional Water Quality Control Board through a National Pollutant Discharge Elimination System and Municipal Separate Storm Sewer System Permit that requires the City to reduce the discharge of pollutants in urban stormwater runoff to receiving waters to the maximum extent practicable; and
WHEREAS, as a condition of the permit, the City requires certain development projects to manage a required amount of stormwater onsite to the extent feasible; and
WHEREAS, if the development project meets specified conditions, the project may consider an alternative compliance program established by the City and approved by the Santa Ana Regional Water Quality Control Board; and
WHEREAS, the City has developed an alternative compliance program approved by the Santa Ana Regional Water Quality Control Board where the City has constructed, and intends to construct, regional storm water capture facilities that will capture, treat, infiltrate, and/or beneficially use stormwater from their tributary area; and
WHEREAS, the Credit Program will allow the City to generate Credits to be purchased by an eligible development project as an alternative to the development project’s management of stormwater onsite; and
WHEREAS, the program would allow development projects the volunt ary option to purchase Credits generated by the stormwater capture facilities for use within the same watershed to satisfy onsite stormwater management requirements and offset pollutant discharges; and
WHEREAS, as part of the alternative compliance program, the City has further developed a Credit accounting system to monitor and track Credits generated by stormwater capture facilities and sold to eligible development projects; and
WHEREAS, pursuant to t he City’s police power, as granted broadly under Article XI, Section 7 of the California Constitution, the City Council of the City of Anaheim ("City Council") has the authority to enact and enforce ordinances and regulations for the public peace, morals and welfare of the City and its residents; and
WHEREAS, pursuant to the California Environmental Quality Act (Public Resources Code Section 21000 et seq.; herein referred to as “CEQA”) and the State of California Guidelines for Implementation of the California Environmental Quality Act (commencing with Section 15000 of Title 14 of the California Code of Regulations; herein referred to as the "State CEQA Guidelines"), the City is the "lead agency" for the preparation and consideration of environmental documents for this ordinance; and
WHEREAS, the Cit y Council finds and determines that this ordinance is not subject to CEQA pursuant to Sections 15060(c)(2) and 15060(c)(3) of the State CEQA Guidelines because it will not result in a direct or reasonably foreseeable indirect physical change in the environ ment and is not a project as defined in Section 15378 of the CEQA Guidelines; and
WHEREAS, the City Council determines that this ordinance is in accord with the public purposes and provisions of applicable State and local laws and requirements.
NOW, THEREFORE, THE CITY OF COUNCIL OF THE CITY OF ANAHEIM DOES ORDAIN AS FOLLOWS:
SECTION 1.
That a new Chapter 10.13 (Stormwater Credit Program) is hereby added to Title 10 (Public Service and Utilities) of the Anaheim Municipal Code to read in full as follows:
“Chapter 10.13 STORMWATER CREDIT PROGRAM
Sections:
10.13.010 Establishment of a Stormwater Credit Program.
10.13.020 Definitions.
10.13.020 Purpose of Stormwater Credit Program.
10.13.040 Stormwater Credit Program Implementation.
10.13.050 City Reservations.
10.13.010 ESTABLISHMENT OF A STORMWATER CREDIT PROGRAM
A Stormwater Credit Program is hereby established in the City of Anaheim. The Stormwater Credit Program and its associated documents, as such documents may be amended from time to time, are on file in the Department of Public Works and Office of the City Clerk.
10.13.020 DEFINITIONS
Any words, terms, or phrases used herein shall have the meaning set forth in Anaheim Municipal Code Chapte r 10.09 (National Pollution Discharge Elimination System )(NPDES)) or the Stormwater Credit Program.
10.13.030 PURPOSE OF STORMWATER CREDIT PROGRAM
.010 The Stormwater Credit Program is designed to achieve the following purposes:
.0101 Incentivize regional stormwater treatment and supply projects (e.g., capture, treatment, infiltration, beneficial use projects) through the generation and sale of Credits;
.0102 Accelerate water quality, watershed improvement, and improved hydrologic function;
.0103 Improve effectiveness and efficiency of stormwater capture by replacing on -site privately managed stormwater management systems with publicly managed regional stormwater retention that provides better pollutant removal, more rigorous and closely monitored structural treatment control, reduces the number of structural treatment controls requiring compliance oversight including design review, inspection, and maintenance confirmation, and provides more cost-effective maintenance;
.0104 Promotes capture of stormwater as a resource through regional stormwater capture and groundwater recharge or beneficial use, reduces local hydrologic and flood risks, and leverages multi -source funding for implementation of multi-benefit projects;
.0105 Complies with current stormwater regulations including, the NPDES Permit and Orange County’s Model Water Quality Management Plan, and aligns with state and county integrated water management approaches; and
.0106 Helps implement the City’s NPDES program an d achieves a net environmental benefit by reducing overall pollutant load by watershed.
10.13.040 STORMWATER CREDIT PROGRAM IMPLEMENTATION
.010 Authority. The Director of Public Works is hereby granted the authority to implement the Stormwater Credit Program consistent with NPDES Permit and Anaheim Municipal Code, including, but not limited to, the development and execution of necessary contracts and other documents in furtherance of the Program. The Director of Public Works is authorized to make mod ifications to the Program as necessary and in accordance with all applicable federal, state, local laws and MS4 Permit requirements.
.020 Credit Accounting System. The City will establish an accounting system to monitor and implement the Stormwater Credit Program. Such accounting system will include, but not be limited to, a Credit account to receive, hold, and disperse funds from the sale of Credits, and a data management system to track Credits generated and sold, Credit adjustments, Credit Price , and other Credit-related information of the Credit Program. The City shall provide relevant credit system information to the Santa Ana Regional Water Quality Control Board and conduct an audit of the Credit accounting system on a periodic basis.
.030 Credit Generators. The City has constructed, and intends to construct, regional City-owned facilities designed to capture and retain stormwater for the Stormwater Credit Program. Upon the construction and verification of a Credit Generator by the City, the Credit Generator will generate Credits for purchase by eligible Credit Users. The City will operate and maintain the Credit Generator(s) in accordance with the Stormwater Credit Program.
.040 Credit Price. The City will establish a Credit Price by watershed, which will be adjusted periodically. The Credit Price will be based on: 1) the design, construction, operation, monitoring, and maintenance costs of existing and future Credit Generators; 2) costs to administer the Credit Program; and 3) such other reasonable costs that affect the operation of the Credit Program.
.050 Credit Users. Upon the establishment of the Credit Program, an eligible Credit User may purchase and use available Credits, on a voluntary basis, to satisfy some or all of the onsite stormwater management requirements of the NPDES Permit. A Credit User shall comply with all terms and conditions of the Stormwater Credit Program and conditions imposed by the Director, including execution of an agreement and other documents with the City.
10.13.050 CITY RESERVATIONS
The City reserves the right to: 1) determ ine the availability of Credits ; 2) determine the need for future Credit Generators; or, 3) temporarily discontinue or terminate the Program at any time for future Credit Users.”
SECTION 2. SEVERABILITY.
The City Council of the City of Anaheim hereby declares that should any section, paragraph, sentence, phrase, term or word of this ordinance be declared for any reason to be invalid, it is the intent of the City Council that it would have adopted all other portions of this ordinance independent of the elimination herefrom of any such portion as may be declared invalid.
If any section, subdivision, paragraph, sentence, clause or phrase of this Ordinance is for any reason held to be invalid or unconstitution al, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance, and each section, subdivision, paragraph, sentence, clause and phrase thereof, irrespective of the fact that any one (or more) section, subdivision, paragraph, sentence, clause or phrase had been declared invalid or unconstitutional.
SECTION 3. CERTIFICATION
The City Clerk shall certify to the passage of this ordinance and shall cause the same to be printed once within fifteen (15) days after its adoption in the Anaheim Bulletin, a newspaper of general circulation, published and circulated in the City of Anaheim.
SECTION 4. EFFECTIVE DATE
This ordinance shall take effect and be in full force thirty (30) days from and after its final passage.
THE FOREGOING ORDINANCE was introduced at a regular meeting of the City Council of the City of Anaheim held on the ___day of ___________________ 2023, and thereafter passed and adopted at a regular meeting of said City Council held on the ____ day of ______________, 2023, by the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
CITY OF ANAHEIM
_______________________________________
MAYOR OF THE CITY OF ANAHEIM
ATTEST:
___________________________________________
CITY CLERK OF THE CITY OF ANAHEIM
148346/bmorley
City of Anaheim
Stormwater Credit Program March 30, 2023
STORMWATER
CREDIT PROGRAM
City of Anaheim
Public Works Department
City of Anaheim
Stormwater Credit Program March 30, 2023
EXECUTIVE SUMMARY
Introduction
The City of Anaheim’s Stormwater Credit Program (Credit Program) establishes the mechanisms, tracking and controls that allow City-owned regional retention projects (Credit Generators) to generate “Credits” that can be purchased, by “New and Re -development” projects, to satisfy the BMP requirements of the New Development Program. The Credit Program provides the following benefits:
• Incentivizes Stormwater Treatment and Water Supply Projects. Incentivizes implementation of new regional stormwater retention (capture, treatment, and infiltration) and water supply projects through the generation and sale of Credits.
• Accelerates Water Quality Improvement. Accelerates water quality, watershed improvement, and improved hydrologic function versus on -site best management practices (BMPs) at redevelopment projects.
• Improves BMP Effectiveness. Improves effectiveness and efficiency of BMPs by replacing on -site privately managed flow -through treatment systems with publicly managed regional stormwater retention that provides better pollutant removal, ensures far more rigorous and closely monitored BMPs, reduces the number of BMPs requiring compliance oversight including design review, inspection, and maintenance confirmation, and provides more cost-effective maintenance. • Improves Water Supply. Promotes capture of stormwater as a resource through regional stormwater capture, groundwater recharge, reducing local hydrologic/ flood control risks, and leveraging multi- source funding for implementation of multi-benefit projects. • Complies with MS4 Permit. Complies with current stormwater regulations including the MS4 Permit and Orange County’s Model Water Quality Management Plan (WQMP) and aligns with State and County integrated water management approaches.
City of Anaheim
Stormwater Credit Program March 30, 2023
Credit Program Eligibility
City-owned regional retention projects that meet eligibility requirements of the Credit Program can generate Credits (Credit Generators) that are available for acquisition by eligible New and Re -development projects (Credit Users ) located within the same watershed. The Credit Program Watersheds are defined as the watersheds within City boundaries, specifically the Santa Ana River Watershed, the Anaheim Bay -Huntington Harbour Watershed, and the San Gabriel-Coyote Creek Watershed.
Only City-owned projects are eligible to generate Credits. To use Credits, projects must:
• Show that on-site stormwater capture and retention is infeasible per Orange County’s Technical Guidance Document (TGD).
• Prepare a Water Quality Management Plant (WQMP) and implement appropriate on-site source control and site design BMPs.
Net Watershed Benefit
To ensure there is net water quality benefit to watersheds where Credits are generated and used, the City has performed a comprehensive pollutant load analys is, developed Pollutant Load Multipliers (PLMs), and incorporated several safety/resiliency factors. Factors are built into the Credit Program to ensure more pollutants of concern are removed than would have otherwise been treated on -site by Credit Users. A Stormwater Credit Generation Report (SCGR) will be prepared by the City for each Credit Generator that shows the hydrologic studies completed to measure the amount of runoff treated and the reductions in available Credits to account for uncertainties and factors of safety. Final verification that the Credit Generator was constructed in accordance with design plans and is operational will take place prior to generating Credits for use. Credits Users will be required to purchase Credits equal to or greater than the portion of the Design Control Volume (DCV) they are not providing treatment for onsite. The amount of Credits to be purchased by a Credit User is based on a Pollutant Load Multiplier (P LM) that accounts for differences in pollutants generated by a Credit User land use and pollutants captured by a Credit Generator.
Program Administration and Oversight
The City has incorporated a rigorous and transparent process to provide consistent and e ffective administration and oversight of the Credit Program, including the review, approval, O&M, and verification of both Credit Generators and Credit Users. For Credit Generators, Credit generation and O&M information will be documented in the SCGR and f or Credit Users, a modified WQMP will be completed to document Credit use. The City will perform periodic inspections to confirm Credit Generators are in place and functional and will also inspect Credit Users to confirm source control and site design BMPs are in place and operational. Periodic inspections will evaluate if a Credit Generator is performing in accordance with the design, and Credit adjustments will be made, as necessary, should inspections show diminished capacity.
A Credit Bank Tracking Data Management System will be used to manage and account for the Credits generated and used within the City, including tracking of Credit adjustments. The Credit Bank will consist of a Credit Bank Tracking Data Management System that will be used to track information regarding the Credit Generator, the Credits generated by the project and available for use, the applicable watershed, and an accounting of Credit Users within the watershed. The City will perform annual audits to review important program implementation elements (i.e., program eligibility, inspections, O&M), Credit tracking, and financial components such as Credit pricing and fund disbursement. The City will use funds generated through the Credit Program for ongoing O&M costs and to supplement future regional stormwater retention projects.
City of Anaheim
Stormwater Credit Program i March 30, 2023
Contents
Contents ............................................................................................................................................. i Glossary of Key Terms ....................................................................................................................... iii 1 Introduction ............................................................................................................................... 1
1.1 Pilot Phase .................................................................................................................................................... 1
1.2 Credit Program Overview ............................................................................................................................. 1
1.3 Regulatory Framework ................................................................................................................................. 2
1.4 Program Need .............................................................................................................................................. 5
1.5 Process for Credit Program Development/Establishment ........................................................................... 6
1.6 Program Administration and Oversight ........................................................................................................ 6
1.7 Use and Availability of the Document .......................................................................................................... 7 2 Eligibility Requirements .............................................................................................................. 8
2.1 Credit Program Watersheds ......................................................................................................................... 8
2.2 Credit Generator Specifications ................................................................................................................. 10
2.3 Stormwater Credit Generation Report ....................................................................................................... 10
2.4 Credit Adjustments ..................................................................................................................................... 10
2.4.1 Funding Source Credit Adjustments................................................................................................ 11
2.4.2 Credit Reduction ............................................................................................................................. 12
2.4.3 Credit Retention .............................................................................................................................. 12
2.4.4 Future PDPs Constructed Credit Generator Watershed ................................................................. 13
2.5 Credit User Specifications ........................................................................................................................... 14
2.6 Credit Generation and Use Scenarios ......................................................................................................... 16 3 Credit Generator and User Oversight ......................................................................................... 18
3.1 Review, Approval, O&M, and Verification of Credit Generator ................................................................. 18
3.2 Verification Monitoring .............................................................................................................................. 19
3.3 Revocation of Credits ................................................................................................................................. 20
3.4 Transfer of Ownership for Credit Generators ............................................................................................ 20 4 Credit Use & Tracking ............................................................................................................... 21
4.1 Pricing and Selling of Credits ...................................................................................................................... 21
4.2 Timing for Use of Credits ............................................................................................................................ 21
4.3 Credit Bank ................................................................................................................................................. 21
4.4 Reporting .................................................................................................................................................... 22
4.5 Enforcement ............................................................................................................................................... 22 5 Tracking Tools........................................................................................................................... 23 6 Program Training, Coordination, and Integration ....................................................................... 23
6.1 Program Training and Outreach ................................................................................................................. 23
6.2 Program Coordination ................................................................................................................................ 23
6.3 Program Integration ................................................................................................................................... 23 7 References ............................................................................................................................... 25
City of Anaheim
Stormwater Credit Program ii March 30, 2023
Tables
Table 1: Credit Program Roles and Responsibilities ................................................................................ 7 Figures
Figure 1: Credit Program Overview .......................................................................................................... 2 Figure 2: Treated Area of Potential Regional versus Traditional Development Projects ......................... 6 Figure 3: Credit Program Watershed Delineation and Receiving Water Impairments ............................ 9 Figure 4: Credit Generator Flow Chart ................................................................................................... 10 Figure 5: Initial Credit Adjustment ......................................................................................................... 11 Figure 6: Watershed Credit Adjustment for Diminished Capacity ......................................................... 13 Figure 7: Potential Future PDP Adjustment ........................................................................................... 14 Figure 8: Credit User Flow Chart ............................................................................................................ 15 Figure 9: Depiction of Credit Generator and Credit User within Watershed ......................................... 16 Figure 10: Review, Approval, and Oversight Inspection Flow Chart ........................................................ 19
City of Anaheim
Stormwater Credit Program iii March 30, 2023
Glossary of Key Terms
The following is provided to explain the intent and meaning of various key terms used in the Stormwater Credit Program (Credit Program) document.
303(d) List of Impaired Waters: The term "303(d) list" or “list” is short for a state’s list of impaired and threatened waters (e.g. , stream/river segments, lakes). States are required to submit their list for USEPA approval every two years. For each water body on the list, the state identifies the pollutant causing the impairment, when known. In addition, the state assigns a priority fo r development of Total Maximum Daily Loads (TMDL) based on the severity of the pollution and the sensitivity of the uses to be made of the waters, among other factors (40 C.F.R. §130.7(b)(4)).
BMP Cost: The Best Management Practice ( BMP) Cost represents the costs for designing, constructing, and maintaining the credit generating BMP (Credit Generator) and is the baseline for determining the Credit Price.
City-Owned Project: A City-Owned Project is a project partially or entirely in the City’s Right-of-Way or on a City-owned property. A City-Owned Project may partially reside on other Public Agency properties (e.g., Orange County Water District, Orange County Sanitation District, School District, Orange County Public Works, etc.) or utilize their infrastructure, provided the City has long -term agreements for portions of the project on other Agency property/infrastructure, including long term management rights to assure operational requirements of the BMP are met (as documented in the SCGR, verified during the verification inspections, and tracked in the periodic O&M Inspections) , and the project is undertaken, managed and monitored by the City as the lead agency with enjoys full cooperation/participation by other public agency(ies).
Stormwater Credit (Credit): A Credit is the unit of measure of this program and is expressed as a unit of volume (in cubic feet, cf) and is generated by a Credit Generat or for use by Credit Users within the same watershed.
To generate or use Credits, a project must meet defined Credit Generator or Credit User eligibility requirements as further elaborated in Section 2.
Credit Account: The Credit Account is the financial mechanism established by the City to receive, hold, and disburse funds associated with the purchase of Credits by a Credit User from a Credit Generator. Accounts may be previously established accounts associated with a Credit Generator (i.e., a specific Department within the City) or an account established to receive funds dedicated to the ongoing O&M of a Credit Generator.
Credit Bank: The Credit Bank is the term established for the process to hold and track Credits generated and used through the Credit Program. The Credit Bank “holds” Credits generated by Credit Generators for each watershed and tracks all Credit transactions , including established Credit prices, associated with the Credit Program. For the purposes of the City’s Credit Program, a Credit Bank Tracking Data Management System will be used as the tracking mechanism for credit related information.
Credit Bank Tracking Data Management System: A spreadsheet or database that tracks the Credits generated and sold, credit adjustments, credit price, and/or other associated components of the Credit Program.
Credit Generator: A City-Owned Project that was constructed, operational, and verified for the purpose of generating Credits (SCGR prepared as part of the design process for the project) subsequent to the approval of the Stormwater Credit Program by the Santa Ana Water Board Executive Officer (EO) and maintains the Credits through monitoring, operation, and maintenance. City-owned projects eligible to be Credit Generators include New Credit Generator Projects, Retrofit Projects, and Enhanced Priority Development Projects, but do not include Existing Projects. Credit Generators criteria include the preparation and approval by the City of a draft and final SCGR in conjunction with the design and construction of the project.
City of Anaheim
Stormwater Credit Program iv March 30, 2023
Credit Generator Tributary Area: The upstream drainage area directly tributary and contributing stormwater runoff to the Credit Generator BMP.
Credit Price: Credit Price is used to describe the cost per Credit calculated for Credit Generators. The Credit Price will be established to reimburse a portion of the Credi t Generator’s costs related to design and construction, as well as on-going O&M of the Credit Generating BMP. The Credit Price for each Credit Generator will be used to establish or adjust the Watershed Credit Price for each of the three Credit Program Watersheds.
Credit User: A Credit User is a PDP that meets eligibility requirements (see Section 2.5) and is utilizing Credits generated by a Credit Generator within the same Credit Program Watershed. A Credit User can acquire Credits to meet New Development/ Redevelopment Program requirements for on-site retention or biofiltration of the Design Capture Volume (DCV) if on-site retention is not feasible.
Credit Reduction: The Credit Program has incorporated an automatic 10% Credit Reduction for each Credit Generator to ensure a net stormwater quality benefit to Credit Program Watersheds is provided. See Section
2.4.2 for additional details related to the reduction of Credits.
Credit Retention: The Credit Program requires the retention of 10% of the Credits generated for each Credit Generator, as a factor of safety and to build program resiliency for potential unforeseen BMP maintenance or operational issues associated with the Credit Generator. Section 2.4.3 includes additional details related to retention of Credits.
Credit Program Watersheds: Credit Program Watersheds are defined as one of the three watersheds within City boundaries, specifically the Santa Ana River Watershed, the Anaheim Bay-Huntington Harbour Watershed, and the San Gabriel-Coyote Creek Watershed.
DCV – Design Capture Volume (DCV): The volume of stormwater runoff resulting from the design capture storm depth. DCV as used on this document is consistent with existing Orange County guidance documents, including the TGD.
Enhanced Priority Development Project (PDP) : A PDP subject to Water Quality Management Plan requirements that expands a BMP design to receive addi tional runoff volume from existing, off -site tributary area that is not already treated by an on-site BMP.
Existing Project: A project that was constructed and operational prior to the approval of the Stormwater Credit Program by the Santa Ana Water Board Executive Officer (EO) or a project that was scoped, designed, and constructed with the express intent to generate Credits for this Program, and verification was initiated upon completion of construction, and verification was not completed prior to approval of the Credit Program by the EO.1
Green Streets: Green Street design within the City is primarily applicable to projects within the City’s Right-of- Way including streets, roads, highways, and freeways with 5,000 square feet or more of paved/impervious surfaces. These Projects must implement the United States Environmental Protection Agency (USEPA) guidance, “Managing Wet Weather with Green Infrastructure: Green Streets” in a manner consistent with the Maximum Extent Practicable (MEP) standard . Green Streets refers to a wide variety of design elements including street trees, permeable pavements, bioretention, and swales.
1 For the purposes of the City’s Credit Program, only the Modjeska Park and La Palma Richfield projects were scoped, designed, and constructed with the express intent to generated Credits.
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Stormwater Credit Program v March 30, 2023
Integrated Regional Water Management (IRWM) and the OC Plan: The OC Plan was prepared in March 2018 to identify and implement water management solutions on a regional scale. The OC Plan updates and combines two existing IRWM plans that were prepared by the County of Orange to address regional watershed management issues for two WMAs in North Orange County. The previous two WMA IRWM Plans are the NOC Plan (completed in 2011) and the Central OC Plan (completed in 2012).
Operation and Maintenance (O&M): For the purposes of the Credit Program , O&M describes the activities performed by the Credit Generator to maintain the function and capacity of the BMP installed at the project site and approved to generate Credits. Periodic O&M Inspections will be performed by the City to confirm the Credit Generator has been properly maintained and is operational or if the Credit Generator needs repair, replacement and/or monitoring . This inspection will be integrated as part of the City’s existing WQMP inspection program for City BMPs to allow for periodic oversight and tracking of the Credit Generator.
Pollutant Load Multiplier (PLM): The ratio of pollutants generated by a Credit User to the pollutants captured by a Credit Generator within a watershed. Th e PLM is used to increase the number of C redits a Credit Us er must purchase to account for differences in pollutants generated by a Credit User and pollutants captured by a Credit Generator in a watershed.
Priority Development Project (PDP): A New Development/ Redevelopment project meeting the thresholds described in Section 7.II- 1.2 of Orange County’s Model WQMP which requires BMPs to be incorporated in accordance with a WQMP.
Retrofit Credit Generating Project: An Existing Project that was modified subsequent to the approval of EO with the express intent of the modification functioning for the purpose of generating Stormwater Credits, including preparing a SCGR as part of the design process for the retrofit project. Only the capacity increase of the existing facility would be eligible for credit, not the capacity of the Existing Project. This modification would typically include expanding or upsizing an existing facility, routing new flow into a facility that has capacity that is not being utilized or establishing or increasing the infiltration rate of an existing facility.
Right-of-Way: "Right-of-way" shall mean land which by deed, conveyance, agreement, easement, dedication, usage or process of law which has been conveyed, reserved or irrevocably offered for dedication to the City of Anaheim or the general public for street, highway, alley, public utility, or pedestrian walkway purposes whether or not said land has been improved or accepted for maintenance by the City. "Public right-of-way" includes but is not limited to, streets, roadways, planter strips and sidewalks as designated or annotated on the City’s GIS Mapping System. Because the public right -of-way typically includes both public and private utility systems, projects within the public right -of-way typically involve several City departments including Public Works, Utilities, Development Services, etc.
Stormwater Credit Program ( Credit Program ): This document outlines the components of the City of Anaheim’s Credit Program. This program was developed by the City of Anaheim, with coordination and review from several interested stakeholders, to support the City’s New Development/Redevelopment Program and provide incentives for regional stormwater retention projects within the City.
Stormwater Credit Generation Report ( SCGR): The SCG R provides the documentation of the stormwater Credits generated by a Credit Generator and includes the BMP design and sizing calculations, Credit generation details, including Credit adjustments, and the O&M plan for the Credit Generator. This document is designed for use by all Credit Generators and will be provided to the Santa Ana Water Board for approval. For Credit Generators subject to WQMP requirements, the SCGR will be appended to the WQMP.
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Total Maximum Daily Load (TMDL): Regulatory term in the U.S. Clean Water Act, describing a plan for restoring impaired waters that identifies the maximum amount of a pollutant that a body of water can receive while still meeting water quality standards.
Watershed Improvement Projects: The County’s Watershed Improvement Project Subcommittee (WIPS) is a strategic initiative to identify and evaluate watershed improvement projects within the four North Orange County watersheds, including the three Credit Program Watersheds within the City.
Watershed Management Area (WMA): The City of Anaheim falls within the North Orange County Watershed Management Area ( NOC WMA) which encompasses 241,000 acres (376 square miles) in Northern Orange County. The NOC WMA is bordered by Los Angeles County to the North and We st and to the East by San Bernardino County. The three watersheds in this area are the San Gabriel River/Coyote Creek, Anaheim Bay - Huntington Harbour, and the Santa Ana River.
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City of Anaheim
Stormwater Credit Program
1 Introduction
The following sections provide an overview of the City of Anaheim’s Stormwater Credit Program (Credit Program or Program), the Credit Program benefits and needs, and the administration and oversight of the program. The Credit Program establishes a prescriptive and transparent process to allow for the generation and use of Stormwater Credits (Credits) by the City.
1.1 Pilot Phase
At the request of the Santa Ana Regional Water Quality Control Board (Santa Ana Water Board), the City has developed a Pilot Phase for the Credit Program. During this phase only City-Owned Projects will be allowed to purchase Credits. Private Projects will only be allowed to purchase Credit following the Pilot Phase. The Pilot Phase will be limited to one year from the date of Executive Officer approval and will provide Santa Ana Water Board Staff the opportunity to observe, review, inquire and investigate the functionality of the Program. During the Pilot Phase, the City will coordinate regularly (monthly to start) with the Santa Ana Water Board to discuss implementation progress, status, Program tracking metrics, evaluate functionality and any other components of the Program requested. The purpose of this effort is to ensure and demonstrate that the Program functions properly, both in the Pilot Phase as well as in full implementation. The success of this Program is a goal of both the Santa Ana Water Board and the City and both agencies have agreed to cooperate in this mutual effort.
Santa Ana Water Board Staff have committed to making themselves available to attend meetings and perform review to the extent they believe is necessary. Furthermore, City Staff h ave committed to provide all information requested in a reasonable timeframe. At the conclusion of the Pilot Phase, provided the Santa Ana Water Board does not find any “fatal flaws” that would result in the Program’s failure to function properly, AND provided reasonable program modifications requested by Santa Ana Water Board Staff are made by the City, the Program will become fully approved and will be allowed to offer and sell Credits to private Projects.
1.2 Credit Program Overview
The Credit Program is intended to provide a streamlined approach to promote both the implementation of new regional stormwater retention projects and provide incentives to maximize the areas managed by post- construction BMPs associated with the New Development/ Redevelopment Program.
The City is evaluating and pursuing numerous regional stormwater retention projects that will serve as Credit Generators while also managing large -scale capital improvement projects (CIPs) and an extensive infill/ re - development program. The C ity envisions the Credit Program as a mechanism to promote design and installation of retention based BMPs in a more efficient and cost -effective manner City- wide. The City will prioritize the viability of these projects based on the benefits described in Section 1.3.1, as well as the overall project costs and constructability. To ensure the Credit Program provides short- and long-term regional water quality benefits, the City also reviewed and incorporated land-use based pollutant loading analysis consistent with the San Diego Water Quality Equivalency Program Guidance approved by the San Diego Regional Water Quality Control Board.
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The Credit Program is for the generation and use of Credits associated with meeting the Design Capture Volume (DCV) (MS4 Permit Section XII.C.2) requirements for development sites and not associated with meeting Hydrologic Conditions of Concern (HCOC) (MS4 Permit Section XII.D) for developments sites where HCOCs exist. Development sites where HCOCs exist will need to meet those requirements onsite. The Program requires Credit Users purchase Credits equal to or greater than the DCV required to be managed under the Permit.
As shown in the conceptual flow-chart below, projects meeting eligibility requirements of the Credit Program (Credit Generators) can generate Credits that are available for future acquisition by eligible Credit Users located within the same watershed. When Credits ar e purchased for use within the watershed, those funds can be used to both supplement ongoing operation and maintenance (O&M) of the Credit Generator, as well as supplement future regional stormwater retention projects.
Figure 1: Credit Program Overview
1.3 Regulatory Framework
The Credit Program was developed in accordance with Santa Ana Water Board Order No. R8 -2009-0030, as amended by Order R8 -2010-0062 (MS4 Permit), the Orange County Model Water Quality Management Plan (WQMP) developed by Orange County Public Works and approved by the Santa Ana Water Board. The Credit Program has been developed to be consistent with the following sections of the current MS4 Permit. • Section XII.C.2: Requires priority development projects to retain the Design Capture Volume (DCV) on- site to the extent feasible.
• Section XII.C.5: Allows for regional or sub-watershed management approaches based on constraining factors of a site. The Credit Program proposes that for sites where it is infeasible to meet the retention of the DCV on -site, a constraining factor, that a regional approach be used to meet the retention of the DCV with a regional credit generating facility in the same watershed.
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• Section XII.E.3: Identifies that the goal of the WQMP is to develop and implement practicable programs and policies to minimize the effects of urbanization on site hydrology, urban runoff flow rates, velocities and pollutant loads and that this goal may be achieved through watershed-based structural treatment controls, in combination with site-specific BMPs. The Credit Program proposes watershed- based struct ural treatment controls as regional Credit Generators, as well as requiring Priority Development Projects (PDPs) using Credits to implement site designs and source controls on -site, which are site-specific BMPs.
• Finding L.63: References the development of the Model Water Quality Management Plan (WQMP).
The Credit Program has been developed to be consistent with Section 7.II.2.4.3.2 of the Orange County Model WQMP, that covers LID Practices Implemented on a Regional or Sub-Regional Basis. This section requires the following.
• The sub -regional/regional BMPs is located such that the project would drain to the BMP prior to discharge to a water of the US, the net pollutant removal load within the watershed is equivalent to what would be accomplished on-site, or would not impair the beneficial use of Waters of the US. The Credit Program has developed comprehensive pollutant load modeling to show the net pollutant removal load within each Credit Program watershed is greater than what would be accomplished on- site and provides a greater benefit in an expedited timeframe to the watershed. • The sub-regional/regional BMP is sufficiently sized to treat stormwater runoff from its tributary area.
The credit generating facilities are planned to be sufficiently sized to treat stormwater runoff from their tributary area.
• Sub-regional/regional BMPs are sited and designed such that they will provide equal or greater overall benefit than would be achieved by LID BMPs . The Credit Program has developed com prehensive pollutant load modeling to identify that program provides a greater benefit to the watershed than would be achieved by on-site LID BMPs.
• Sub-regional/regional BMP will be adequately maintained for the life of the project and the sub- regional/regional BMP will be constructed and operational to serve the project once the project is complete. The Credit Program requires that all Credit Generators be adequately maintained for the life of the facility. Additionally, Credit Generators are required to b e constructed and verified before Credits are available for use.
• The sub-regional or regional facility is constructed to remove pollutants from those new development projects within the watershed in a timely manner. The Credit Program requires all Credit Generators be constructed and verified by the City before Credits are available for use.
More detailed information and references regarding the regulatory framework can be found in the Technical Basis Document: Regulatory Framework developed to support the program. When the Santa Ana Water Board adopts subsequent MS4 Permits, the Credit Program will be modified, as appropriate, to incorporate new MS4 Permit requirements. The modified Credit Program will be submitted to the Santa Ana Water Board for review and approval. After adoption of a subsequent MS4 Permit and during the review and approval process, the Program as previously approved, will remain functional and in place while awaiting Santa Ana Water Board approval.
1.3.1 Credit Program Benefits
The City is proactively identifying potential regional projects that can provide multiple benefits, with a primary purpose of providing local flood risk reduction, surface water quality improvement, and local water supply benefits. Credit Generators, in addition to removing pollutants from the watershed, provide a water supply benefit through aquifer recharge, direct capture and use of stormwater, and diversions to sanitary sewer where
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the stormwater will be used as recycled wastewater or treated by OCWD’ s Groundwater Replenishment System (GWRS). As described in Section 2.2, Credit Generators will be limited to City-Owned Projects meeting specific eligibility and stormwater retention requirements. Additional benefits associated with implementation of the Credit Program include the following.
• Provide an expedited timeline for water quality improvement. The Credit Program requires a regional project be constructed and operational prior to generating Credits that are available for Credit Users (i.e., New Development/Redevelopment projects). This leads to achieving improved hydrologic function and water quality benefits sooner than traditional distributed development/redevelopment projects, where redevelopment of the watershed could take upwards of 200 years (based on an average redevelopment growth rate of 0.5%) for completion of redevelopment that meet the N ew Development/ Redevelopment MS4 permit requirements.
• Generation of funding for new regional projects allowing further achievement of an expedited timeline for improved hydrologic function and water quality benefits. • Consolidated oversight and implementation of O&M activities (i.e., inspection, maintenance, monitoring) for regional retention projects over distributed BMPs throughout the City. • Provide flexibility and efficiency in meeting WQMP requirements and provides more retention within the City than would be achieved without the Credit Program. • Utilize stormwater as a valuable resource through regional groundwater recharge and direct stormwater capture for future water supply.
• The Stormwater Credit Program helps to achieve integrated water resource management and incentivizes participation in stormwater capture projects by other water sectors providing long- term local water supplies in North Orange County.
• Assist in alleviating local hydrologic/ flood control risks. • Leveraging funding from multiple sources for multi-benefit projects. • Potential for improved aesthetics and recreational opportunities for public facilities/lands when retention systems include above-ground features or multi-benefit projects include retention elements. • Other potential benefits associated with certain green infrastructure projects if implemented as part of the program, including habitat creation, air quality improvement, reduction in the heat island effect, aesthetics, recreational benefits, sound reduction, traffic calming and safety, education, reduction in drainage and flood control infrastructure, and increased land values. • Incorporation of pollutant loading multipliers based on land use and watershed impairments to provide a net benefit to the water quality and reduce potential for formation of “hot spots” from the implementation of the Credit Program
The Credit Program also promotes several positive community and social outcomes, including:
• The program was designed to remove more pollutants than would otherwise have been removed under the ex isting new/ redevelopment program, thereby providing an overall benefit to all communities.
• Investing in capturing stormwater with the intent of increasing the local community’s water supply is an investment in the community and provides a sustainable, affordable future water supply. In addition to increasing water availability, it may reduce costs for customers. • Capturing stormwater and allowing it to infiltrate into the aquifer assists with flood control and reduces community flooding, which lowers proper ty ownership costs, homeowner’s insurance
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rates, and increases property values. Within the City, communities with higher flooding potential are typically in lower income areas.
• As exhibited by the Modjeska Park project the investment in the local community allows for the improvement of parkland, and the placement of interpretive signage is an important part of the public message promoting the environment.
• The City’s planning process takes into consideration a range of socio -economic factors including environmental justice, inclusion, and equity. While the Credit Program does not explicitly require the siting of projects in areas such as disadvantaged communities, the majority of projects will be in part grant funded. Most grant funding incentivizes or ranks more highly projects that benefit such communities. In the development of siting protocols for future stormwater retention projects one of the considerations will include the pollutant loads in the tributary drainage areas of potential future stormwater retention project locations. • Utilizing regional stormwater capture projects rather than distributed treat and release BMPs is more cost effective and will ultimately reduce overall compliance costs for residential projects, promoting affordable housing.
• The City of Anaheim is also creating an Environmental Justice Element that includes a focus on reduction of pollution exposure and will become a part of the City’s General Plan.
Environmental Justice Element | Anaheim, CA - Official Website.
1.4 Program Need
As mentioned above , regional storm water retention projects will provide expedited water quality improvement and improved hydrologic function over traditional redevelopment projects. It may take several decades up to hundreds of years for existing development within a watershed to redevelop and integrate stormwater retention BMPs for compliance with the WQMP requirements. The Credit Program endeavors to speed up that timetable through incentivizing implementation of regional stormwater retention projects or other types of projects that retain stormwater (e.g., green street proje cts), which will provide improvement related to both stormwater quality and hydrologic functions in a watershed. To better understand the potential benefits of creating a Credit Program to promote regional stormwater retention projects, the City comp iled data on PDPs approved and constructed within the City over the past five years (City-Owned and Non -City Owned) including areas tributary to retention BMPs . This data was compared to several potential future regional project concepts the City is evaluating and could potentially benefit from funds generated through the Credit Program. While these projects are hypothetical, they were used to better understand watershed water quality benefits of the Credit Program. Based on this analysis, it would take approximately 33 years (Non-City Owned) and greater than 400 years (City -Owned) of new and redevelopment to occur that implements retention-based BMPs to meet the equivalent area treated by the potential future regional projects in the City (see Figure 2 below).
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Figure 2: Treated Area of Potential Regional versus Traditional Development Projects
1.5 Process for Credit Program Development/Establishment The Credit P rogram was developed based on research/review of other programs and guidance developed around the United States, as well as review of provisions in the current MS4 Permit, draft MS4 Permit language, the TGD and Model WQMP , and coordination with various City Departments and interested stakeholders.
Several supporting documents were prepared during the development of the Credit Program to support the technical basis for selection of components of the Credit Program. Technical basis documents were developed for the Credit Program r egulatory framework, watersheds, pollutant load effects on treatment efficacy, and on-site feasibility analysis and are available upon request.
Following approval of the Credit Program by the Executive Officer (EO) of the Santa Ana Water Board, the City will officially establish the Program through adoption and establishment an ordinance, as well as a resolution and fee (i.e., Credit Price) by the City Council.
1.6 Program Administration and Oversight
An important component of Credit Program implementation is to provide consistent and effective administration and oversight of the Credit Program. The following City Departments (and consultants overseen by the City) will be responsible for implementing the identified components of the Credit Program. The results of the inspections and audits performed as part of the Program will be used by the City to evaluate the effectiveness of the Program and address deficiencies noted or improvements recommended, if any.
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Table 1: Credit Program Roles and Responsibilities
Department/Entity Credit Program Roles/Responsibilities City Capital
Projects Staff
(Public Works,
Utilities, Parks)
• Identify Credit Program project eligibility.
• For Credit Generators, prepare Stormwater Credit Generation Reports (SCGRs) (including Credit generation information, O&M Plan , and Monitoring Plan) for review and approval.
• For Credit Users, p repare WQMP modified for use with the Credit Program for review and approval.
City Public Works
Department
• Review, comment, and approve Credit Generator SCGRs and Credit Generator and Credit User WQMPs modified for use with the Credit Program. • Review, approve, document, track and allocate Credits. This includes review and approval of the Credit Generator Credit values for consistency with established internal city procedures.
• Contracting and oversight of third-party inspectors performing construction- phase and final verification inspections.
• Performing periodic O&M inspections.
• Performing regular reviews/audits of financial aspects of the Credit Program. • Reporting and enforcement related to the Credit Program (Sections 4.4 and 4.5).
Finance Division of
Public Works
• Receive, hold, and di sburse funds associated with sale and transfer of Credits between Credit Generators and Users. The movement of funds will only occur after approval by the Public Works Department.
• Review and implement third-party financial auditor findings and recommendations, if any.
Qualified Program
Auditors
• Perform regular review of the following program elements:
• Financial statement (credit purchase, valuation, and general program accounting)
• Credit tracking (review of the Credit Bank Tracking DMS for both Credit Generators and Credit Uses in each Credit Program watershed) • Credit User WQMPs
• Credit Generator SCGRs
Third-Party
Inspectors
• Perform construction-phase, final verification, and periodic O&M inspections (see Sections 3.1 and 3.2). Inspection report findings will be provided to the Public Works Department for review and follow-up, as necessary.
1.7 Use and Availability of the Document
This document serves as guidance for implementation of the City’s Credit Program and allows for consistent and transparent implementatio n. As the Credit Program evolves, t his document will be modified to reflect improvements and modifications to the program and incorporate other guidance documents and resources necessary for Credit Program implementation. Substantive changes to core components of the Credit Program, other than inconsequential grammatical corrections or technical changes, will be submitted to the Santa Ana Water Board EO for approval.
Once approved by the Santa Ana Water Board EO, general information on the Credit Program information and this Credit Program document will be posted and publicly available on the City’s website. Other supporting documents for the Credit Program will be available upon request.
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2 Eligibility Requirements
This section provides information , guidance and examples related to the eligibility requirements and implementation of the Credit Program for Credit Generators and Credit Users. It also defines what measures will be required to be implemented on-site for a PDP when proposing to use Credits from a Credit Generator.
Figure 4 (Credit Generator Flow Chart) and Figure 8 (Credit User Flow Chart) depict the process associated with Credit Generation and Use for the Credit Program.
2.1 Credit Program Watersheds
Credits can be used anywhere in the watershed where they are generated. The Credit Program Watersheds are defined as the three watersheds within City boundaries , specifically the Santa Ana River Watershed, the Anaheim Bay-Huntington Harbour Watershed, and the San Gabriel-Coyote Creek Watershed (see Figure 3). The Credit Program Watersheds were selected to be consistent with the watersheds described in the current MS4 Permit, but the City acknowledges that watersheds could be modified based on changes to MS4 Permit language or appropriate technical justification and approval. In such a case, the City C redit Program may be modified as necessary to match adjusted watershed definitions.
The Credit Program allows for generation and use of Credits anywhere within a watershed, regardless of whether the Credit User is directly tributary to the Credit Generator. When considering overall water quality benefit of a project for Credit generation, it is important to consider the impairments within the larger watershed, including established downstream Total Maximum Daily Loads (TMDLs) and receiving water/water body impairments . It should be noted that there are no impaired receiving water s/water body segments identified within the City of Anaheim boundary
2. While there are no impairments within the City of Anaheim boundary, downstream water body impairments and TMDLs were also reviewed in the development of the Credit Program and incorporated into the land-use based pollutant loading analysis performed to establish the Pollutant Load Multiplier (PLM) described in Section 2.4.2 . Figure 3 below includes a depiction of the three applicable watersheds (showing the larger watersheds and the affected portions within the City boundary) and the downstream impairments associated with each. Analysis shows that implementation of the Credit Program will provide a net benefit to the Credit Program Watersheds over traditional redevelopment.
Additional discussion related to the basis for selecting the Credit Program Watersheds is included in the Technical Basis Document: Credit Program Watersheds prepared by the City to support development of the Credit Program.
2 SWRCB 2014/16 303(d) Listings. https://www.waterboards.ca.gov/water_issues/programs/tmdl/integrated2014_2016.shtml
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Figure 3: Credit Program Watershed Delineation and Receiving Water Impairments
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2.2 Credit Generator Specifications
The Credit Program limits Credit Generation to City -Owned Projects. Figure 4 below provides a flow chart depicting the Credit Generator process, from initial evaluation of eligibility to approval of Credits and addition to the Credit Bank. City-owned projects eligible to be Credit Generators include new Credit Generator projects, Retrofit Projects , and Enhanced Priority Development Projects but do es not include Existing Projects (see Glossary of Terms) . Credit Generator criteria also includes the preparation and approval of a draft and final SCGR in conjunction with the design and construction of the project. The SCGR for a Credit Generator will not be finalized until the verification process described in Section 3.2 is complete.
Figure 4: Credit Generator Flow Chart
2.3 Stormwater Credit Generation Report
For Credit Generators, the City will require a SCGR to document Credit Program eligibility and the number of Credits created by the project . The SCGR will document the volume of stormwater eligible for Credit generation, the number of Credits generated, Credit adjustments as described in Section 2.4, as well as other project related information including, Preliminary Design Report, Design Drawings and Specifications , an Operation and Maintenance (O &M) plan, a Monitoring Plan, and design considerations consistent with the Model WQMP (Section 4 of Model WQMP) and TGD (Section 7 of TGD). The SCGR will also document capital costs related to design and construction of the Credit Generator that will be used in the establishment of the Credit price. The Credits generated by a Credit Generator will be limited to the DCV, and in no case will Credits be generated for stormwater captured beyond the DCV. The City has prepared an SCGR Template to provide a streamlined and consistent method to document, review, and approve Credit Generator projects. The SCGR and associated project related information will be available in searchable electronic format.
2.4 Credit Adjustments
In addition to limiting Credit Generators to City-Owned Projects, the City has built additional risk management features into the Credit Program, consistent with strategies summarized by the National Network on Water Quality Trading3. To further reduce the risks related to future loss or failure of a Credit Generator or potential
3 Building a Water Quality Trading Program: Options and Considerations. June 2015. National Network on Water Quality Trading.
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reduced capacity of infiltration/ retention BMPs over time, the City has built additional resiliency into the Credit Program through establishing a process for retention of a certain percentage of Credits gen erated in each watershed. This Credit Retention is consistent with the concept of “Set-Aside Ratios” discussed by the National Network on Water Quality Trading and is further discussed in Section 2.4.2.
In addition to Credit Retention for each Credit Generator, the City has incorporated an automatic reduction in Credits for each Credit Generator. This approach will provide a net stormwater quality benefit by permanently removing a certain percentage of Credits available for use in each watershed. This is consistent with the “Reductive Ratio” concept established by the National Network on Water Quality Trading and is further described in Section 2.4.2.
The City has incorporated additional Credit adjustment s based on potential limitations or restrictions associated with the funding source of the Credit Generating BMP (see Section 2.4.1). The Credits available for purchase will also be adjusted to account for PDPs present within the Credit Generator drainage area. The PDPs with retention BMPs in the drainage area will either reduce the Design C apture Volume (DCV) of a regional retention system, or if the regional retention system DCV does not account for upstream PDP retention in the hydrologic analysis, a reduction of the number of Credits available for sale from the regional retention system will be incorporated and tracked in the Credit Bank Tracking Data Management System. PDPs with flow through treatment BMPs in the Credit Generator drainage area will also reduce the amount of Credits available for sale from a regional stormwater retention system. Figure 5 below depicts the Credit adjustment process that will be followed by the City. Credit adjustments associated with future PDPs constructed within the drainage area of a Credit Generator are discussed in Section 2.4.4.
Figure 5: Initial Credit Adjustment
2.4.1 Funding Source Credit Adjustments
Credit adjustments may be necessary based on the capital funding sources associated with the Credit Generator. Credit Generators, such as regional capture and infiltration projects, are often partially funded by State or other Grant funding agencies that may include limitations with respect to the use Grant funds for permit compliance purposes. A detailed analysis of capital funding sources for each Credit Generator project will be performed to identify any restrictions or limitations (e.g., restriction on the use of grant funds to meet MS4 Permit compliance) on the use of funds from the distinct capital funding sources. If restrictions or limitations are identified that would prevent the use of those funds in the generation of Credits, the proportionate Credits generated from the use of the “restricted” source of capital funding will be removed from the total Credits generated by the Credit Generator. As discussed in Section 4, the City is developing Credit
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valuation guidance that will incorporate the methodology and guidance when evaluating funding sources and adjusting Credits.
2.4.2 Credit Reduction
The City has incorporated a minimum 10% Credit Reduction for each Credit Generator that will be applied after funding source Credit adjustments . This reduction in Credits generated for each Credit Generator applies a conservative and simple metric to each project to avoid concerns over decreases in overall stormwater quality from use of Credits in a watershed and to assure a net increase in retention/ infiltrati on volume for each watershed as a result of the Credit Program. The number of Credits reduced for each Credit Generator will be documented in the SCGR and Credit Bank Tracking Data Management System and will not be available for use within the watershed. Credits reduced as part of the Credit Reduction will be separate from those C redits retained as part of the Credit Retention identified in Section 2.4.3.
2.4.2.1 Land Use and Pollutant Load Analysis
To confirm the Credit reduction metrics properly account for land-use variations, are protective of downstream receiving water quality, and provide a net pollutant removal for the watershed, modeling of land-use factors, consistent with guidance developed in the SDWQE, was performed for the Credit Program watersheds within the City of Anaheim. The analysis was based on the distribution of land uses within each Credit Program Watershed, pollutant generatin g potential for each land use, downstream receiving water and water body impairments, and the land uses associated with Credit Users.
The ratio of pollutant removal capacity of a Credit Generator, based on the average land uses in a watershed area within the City, to the pollutant removal capacity of a flow-through bio-treatment system constructed on potential Credit User land uses was calculated (the Land Use Factor [LUF]).4 The Pollutant Load Multiplier (PLM) is the inverse of the LUF. A Credit User is required to purchase credits equal to the portion of the DCV they are not treating onsite times the PLM. Tables of PLMs were generated for each land use in each watershed and for each pollutant. The pollutant with the highest PLM for which there is a downstream impairment will be the PLM the Credit User uses to calculate the number of credits they need to purchase. If a Credit User is developing more than one land use on a project, an area weighted average of pollutant loads from the Credit User’s parcels is calculated to calculate a multi-land use PLM. Details and tables of PLMs are presented in the Technical Basis Document: Pollutant Load Multipliers for Credit Users . Based on the results of the an alysis and potential pollutant loading from agricultural land uses , the City has excluded agricultural land uses from purchase of Credits (see Figure 8).
To provide a greater benefit to water quality, the Program ensures the PLM will always be 1.0 or higher.
Therefore, the respective volume of water captured in the Credit Generator, as determined by the Credit purchased for each Priority Development Project, will always be greater than or equal to the volume required by the current MS4 NPDES Permit.
While the analysis establishes the Pollutant Load Multiplier for each Credit User to address site specific pollutant loading, the City chose to incorporate the automatic 10% Credit Reduction as an additional factor of safety. Based on the analysis, the City has excluded agricultural land uses from Credit purchase.
2.4.3 Credit Retention
After applying the 10% Credit Reduction described above, the City will require the retention of a minimum of 10% of the remaining Credits for each Credit Generator, as a factor of safety and to build program resiliency
4 If on-site retention is infeasible at a PDP, a flow-through bio-treatment BMP would be installed. Therefore, the comparison of pollutant removal is between regional retention and on -site flow-through bio-treatment.
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for potential Credit loss from a Credit Generator due to BMP O&M issues or unforeseen causes (i.e., natural disaster). The City will retain a minimum of 10% of the Credits for each new Credit Generator until the total watershed retention is equivalent to 110% of the largest Credit Generator within the watershed. The intent is to have sufficient Credit retention in the Credit Bank to cover a potential catastrophic failure or loss of the largest BMP (based on Credits generated) in the watershed. Once retention within the watershed is equivalent to 110% of the largest Credit Generator (based on volume retained), the automatic 10% retention will not be applied to new Credit Generators within the watershed. However, the 10% reduction (as mentioned previously in Section 2.4.2) will continue to be applied to all new Credit Generators within a watershed , regardless of whether the watershed has met the 110% retention threshold.
If maintenance related issues cause diminished capacity (retention volume) of a Credit Generator, the retained Credits within the Credit Bank for the Credit Generator’s watershed will provide a buffer while maintenance related issues are being addressed. Credits associated with diminished capacity will be temporarily removed from total watershed Credit retention and documented in the Credit Bank Tracking Data Management System.
If the diminished capacity cannot be addressed through periodic maintenance consistent with the O&M Plan for the Credit Generator, or for more significant issues identified within one year of the deficiency being quantified, the temporarily removed Credits (equivalent to the diminished capacity) will then be removed from the available Credits for sale in the Credit Bank. This process is depicted in Figure 6 below.
Figure 6: Watershed Credit Adjustment for Diminished Capacity
2.4.4 Future PDPs Constructed Credit Generator Watershed If a future PDP within the tributary watershed of a Credit Generator selects not to purchase Credits and instead installs structural BMPs to comply with New D evelopment/Redevelopment requirement s, the City has incorporated an additional Credit adjustment. Credits, equivalent to the DCV associated with the PDP, will be removed and documented in the Credit Bank Tracking Data Management System upon approval of the Credit transaction as depicted in Figure 7.
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Figure 7: Potential Future PDP Adjustment
2.5 Credit User Specifications
Credits generated as described above can be used by eligible Projects (see Glossary of Terms). When on-site structural retention/ infiltration controls are infeasible5, these projects can opt to purchase C redits to meet New Development/Redevelopment Program requirements when there are sufficient Credits available within the same watershed. As shown in Figure 8, a stepwise process has been developed to properly quantify Credits being utilized and the proper documentation that must be completed. The Technical Basis Document: On-Site Feasibility was p repared by the City and describes the basis for the on -site feasibility considerations incorporated into the Credit Program.
5 Evaluation of on-site feasibility has been integrated into the Credit Program to be consistent with the current MS4 Permit requirements, however if the on-site feasibility analysis is removed from the next MS4 Permit (preference of the City), the feasibility analysis could be removed from the Credit User specifications providing a more streamlined approach to realize the benefits of the use of regional BMPs.
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Figure 8: Credit User Flow Chart
When on-site structural retention/ infiltration is infeasible, Credit Users will have the ability to purchase Credits to meet DCV obligations rather than implement on -site biofiltration, biotreatment, or treatment controls.
Credit Users will still be required to implement on -site source control and site de sign BMPs, as defined in Section 7.II-2.4.4 and 2.4.6 of the Model WQMP, to qualify for Credit use, provided the DCV for the project is offset by Credits purchased and the Credit User in is the same watershed as the Credits available for purchase.
For PDPs utilizing Credits to meet the entire DCV for the project, the WQMP will include a description of the Credits used to meet the DCV requirements for the project. The Credit User is required to incorporate and properly document applicable source control and site design BMPs for the project in the WQMP. To provide for consistency in the preparation of WQMPs by eligible Credit Users and streamline City review, the City will develop a Credit User WQMP Template, as well as a Credit User WQMP Review Checklist once the Credit Program receives Executive Officer approval.
For PDPs utilizing C redits to meet a portion of the required DCV, the WQMP will include appropriate documentation of on -site structural retention/ infiltration controls or biofiltration contr ols implemented to meet the portion of the DCV not utilizing C redits as well as documentation of Credits purchased to meet the remainder of the DCV.
The City Public Works Department will review the WQMP and associated Credit purchase information to verify Credit User eligibility and ensure accuracy and completeness . A typical Credit generation and use scenario is explored in more detail below. Once the Credits are purchased by a Credit User, the purchase and associated reduction in available Credits will be documented in the Credit Bank Tracking Data Management System (Section 4.3).
City of Anaheim
Stormwater Credit Program 16 March 30, 2023
2.6 Credit Generation and Use Scenarios
The following provides a brief overview of typical Credit Generator and Credit User scenarios that would be covered under the Credit Program.
Example Credit Generator and Use Scenario
Example 1: Regional Stormwater Retrofit Project
Credit Generator: The City ’s Public Works
Department retrofits a park within the Bolsa
Chica/Huntington Harbour Watershed to
capture and infiltrate stormwater from the
upstream tributary area (primarily existing
residential and commercial land use s). The
project is not a PDP and is designed to capture
and infiltrate approximately 250 ,000 cf 6 from
the park and upstream tributary area . After
applying Credit Reduction and R etention,
202,500 cf of DCV will be eligible to generate
Credit. A SCGR will be prepared to document the
BMP sizing, Credits generated, and O&M Plan for
the Credit Generator.
Credit User: A City capital project is a PDP subject
to WQMP requirements. The WQMP identifies a
DCV of 45,000 cf and the project is located within
the same watershed as the Regional Stormwater
Retrofit Project. Retention/ infiltration has been
deemed infeasible based on space and utility
corridor constraints and t he City Maintenance
Division intends to purchase Credits from the Public Works Department for the entire DCV of capital project rather than implementing biofiltration/biotreatment controls. A project WQMP is completed that incorporates Credit use requirements for review and approval by the City. Once project documents are reviewed and approved by the City, 45,000 Credits would be subtracted from the 202,500 Credits available, reducing the available Credits in the watershed to 157,500 in the Credit Bank Tracking Data Management System.
Example 2: Enhanced PDP
Credit Generator: The City’s Utilities Department is redeveloping an above-ground water storage and treatment tank and expanding the public Right-of-Way access road to the facility. The project is within the Santa Ana River Watershed and qualifies as a PDP because it is changing the original line and grade of the facility and disturbs an area of native soil greater than 5,000 square feet. Due to the high infiltrating soils within the area, and an adjacent commercial land use that drains onto the project property, the Utilities Department has increased the capacity from the required DCV of 100,000 cf of capacity per the 85th percentile storm event, to 200,000 cf by diverting additional drainage area from adjacent commercial development to the project’s infiltration BMP. Credits for the portion of the DCV that goes beyond what is required by the PDP are eligible
6 The capture/infiltration volume for the project is equal to the DCV ( 85th percentile storm event) Figure 9: Depiction of Credit Generator and Credit User within Watershed
City of Anaheim
Stormwater Credit Program 17 March 30, 2023
for Credit generation and will be documented in a SCGR and referenced in the project WQMP. After applying Credit Reduction and Retention, 81,000 cf of the portion of DCV that goes beyond what is required by the PDP will be eligible to generate Credits.
Credit User: The Credit User is a privately-owned commercial development project that is a PDP subject to WQMP requirements. The project has a DCV of 5,000 cf and is located within Santa Ana River Watershed . A technical feasibility analysis has identified that on-site retention/infiltration of the DCV is not feasible and the private developer intends to purchase Credits for the entire DCV of the project rather than implementing on- site biotreatment controls. A WQMP, incorporating Credits proposed for use, will be completed for review and approval by the City. Based on the process outlined in the Technical Basis Document: Pollutant Load Multipliers for Credit Users and potential pollutant loading associated with a commercial development project in the Santa Ana River Watershed, the project will be required to purchase 2.16 Credits for each cf of Credit needed, for a total of 10,800 Credits. Once project documents are reviewed and approved by the City, the 10,800 Credits needed would be subtracted from the 81,000 Credits available in the watershed.
City of Anaheim
Stormwater Credit Program 18 March 30, 2023
3 Credit Generator and User Oversight
This section identifies the review, approval, and verification process (Figure 10) that will be implemented as part of the Credit Program.
3.1 Review, Approval, O&M, and Verification of Credit Generator The City Public Works Department will be responsible for project review and approval before Credits can be generated or used , in accordance with the criteria established in this Credit Program. The City intends to contract with a third- party to assist in the review and verification process but will manage on-going functionality and maintenance of the Credit Generat ors internally. The approval process for both the Credit Generator and Credit User will require acknowledgement of the conditions associated with the design and on- going O&M of the Credit Generator and will be documented in the SCGR.
O&M Plan requirements incorporated into the SCGR will be consistent with Model WQMP and TGD requirements and the current MS4 Permit requirements for maintenance of structural treatment BMPs.
The City Public Works Department will perform the following:
• Construction-Phase Inspections: Performed during construction of Credit Generator projects to confirm the projects are constructed in accordance with the design plans and the approved SCGR.
These inspection s will be performed and documented at various stages of construction of the retention BMPs to confirm proper construction.
• Final Construction Inspection: A final construction inspection will be completed to confirm the Credit Generator construction is complete and consistent with design/construction plans. • Verification Inspections/ Final Verification: Multiple verification inspections, including monitoring, will be completed after construction is complete to confirm the Credit Generator is operating as designed and to establish the appropriate O&M procedures. Additional details on the verification process are included in Section 3.2. Final SCGR Approval: Based on the results of the final ver ification and development/refinement of O&M procedures, the SCGR will be modified/adjusted as needed and approved by the City , and will be the guiding document for the management , operation, and maintenance of the Credit Generator.
• Periodic O&M Inspections: Performed, at a minimum annually, to confirm Credit Generator has been properly maintained and is operational. This will include a form of te sting and/or inspection during operation to confirm the system functions as designed, both with respect to the flow routing, pre - treatment, capture volume, and infiltration/drawdown. The inspection and O&M frequenc ies, response trigger points, and detailed testing and maintenance protocols for each Credit Generator will be documented in the SCGR and incorporated into the O&M inspection procedures.
In the event the Credit Generator O&M inspection identifies that the capacity of a C redit Generator is diminished, an estimate of the diminished volume will be calculated. If the diminished capacity cannot be addressed through maintenance, a portion of the retained credits (see Section 2.4.3) will be permanently removed from the Credit Bank Tracking Data Managemen t System and documented . The City’s review, approval and oversight inspection process is shown in Figure 10.
City of Anaheim
Stormwater Credit Program 19 March 30, 2023
3.2 Verification Monitoring
The City has incorporated a rigorous verification process for each anticipated Credit Generator. The verification process is an important step in confirming the Credit Generator is functioning as designed and is used to establish the initial number of Credit generated, as well as the appropriate level operation and maintenance (O&M) for the Credit Generator.
• Storm event monitoring to ensure stormwater capture is occurring as designed. The City anticipates that monitoring will be performed for at least one to wet seasons to gather appropriate data on the capture and infiltration capacity of the Credit Generator. Monitoring will include the use of flow meters, level sensors, or other sensor(s) with the ability to confirm flow volumes into the system, as well as loss from the system through infiltration.
• Pretreatment is functioning effectively. The Credit Generator will be inspected to evaluate the effectiveness of the stormwater pretreatment in reducing trash, debris, and sediment into the system. Data generated from the monitoring system will be utilized when evaluating pretreatment effectiveness and potential loss of infiltration capacity due to clogging.
Figure 10: Review, Approval, and Oversight Inspection Flow Chart
City of Anaheim
Stormwater Credit Program 20 March 30, 2023
• Flow paths are maintained during and after storm events. During and/or post storm event inspections will be u tilized, in conjunction with monitoring data, to assess whether the system is operating as designed.
• Infiltration rates and drawdown are functioning properly. As described above, data f rom the monitoring systems will be used to calculate infiltration rates and assess the operation of the Credit Generator. Modifications may be made to the system (i.e., pretreatment, flow routing, etc.) to enhance infiltration rates during the verification process. • Vector related issues are identified and properly addressed in the O&M plan incorporated in the SCGR for the Credit Generator. If there are potential vector related issues identified, such as unanticipated, extended periods with standing water in the system, the City will address those issues during the verification process.
• Assessment of O&M impacts on performance. The verification and monitoring of the system will provide feedback on the appropriate O&M for each Credit Generator to enhance performance.
The O&M Plan in the SCGR for each Credit Generator will be updated and finalized based on the results of the verification process.
The number of credits a Credit Generator creates, as documented in the SCGR, will be updated based on the results of the verification process.
3.3 Revocation of Credits
While the City will be responsible for the long-term O&M of the Credit Generator and does not anticipate a scenario where a City maintained Credit Generator will be abandoned, the City has established a procedure to retain a portion Credits generated in each watershed and allow for the permanent removal of Credits from the Credit Bank Tracking Data Management System should the need arise (see Section 2.4.3).
3.4 Transfer of Ownership for Credit Generators
To ensure that Credit Generators are properly maintained, it is preferred and anticipated that Credit Generators remain owned by the City. If transfer of ownership is necessary, the requirements for maintaining the Credit Generator and preventing removal of the BMP generating Credits shall be recorded with the County Recorder’s office by the Credit Generator or any successive owner/assignee to ensure that these requirements are at tached by Deed to the Property . This requirement is similar to WQMP requirements that a local jurisdiction may require terms, conditions and requirements be recorded with the County Recorder’s office by the property owner or any successive owner as authorized by the Water Quality Ordinance.
City of Anaheim
Stormwater Credit Program 21 March 30, 2023
4 Credit Use & Tracking
This section identifies the mechanism to track and account for Credits. The funds generated from the purchase of Credits will be used for ongoing O&M costs and to supplement future regional stormwater retention projects.
4.1 Pricing and Selling of Credits
The City is developing internal guidance related to development and administration of the financial aspects of the Credit Program, including the Credit Price, transaction accounting, and fund disbursement.
The City will price Credits based on the cost of planning, permitting, designing, and constructing (capital costs), and operating, monitoring, maintaining, and administering (operations and maintenance [O&M] costs) Credit Generators. Separate prices will be calculated per watershed based on the total Capital and O&M costs of all Credit Generators in that watershed. As new Credit Generators are brought online within a watershed, the Credit Price will be adjusted based on changes in total Capital and O&M costs for all Credit Generators in that watershed and total credits available for sale in that watershed.
The City will price Credits based on Capital and O&M costs of Credit Generators, not to raise revenue for any other purposes. Costs for each Credit Generator proj ect will be analyzed to separate out costs that are not specifically related to the Credit Generator infrastructure or to restore any infrastructure that had to be temporarily removed for installation of the Credit Generator infrastructure. Multiple benefi t projects will be analyzed to identify specific Credit Generator costs and other costs not specifically for the Credit Generator elements. Only specific Credit Generator costs will be included in the credit price calculation.
When the City receives grant funds that are not to be repaid after completion of a Credit Generator project, those grant funds received will be subtracted from the total Credit Generator capital costs for the purpose of calculating credit price. The evaluation of grant funds received for each Credit Generator will be summarized in the SCGR, including the adjustment to overall capital costs used in the establishment of the Credit Price.
To establish the Credit Price, the City will prepare a resolution and proposed fee (Credit Price based on Credit pricing procedures) for City Council approval. The approved Credit Price, by watershed, will be included in the City approved Fee Schedule.
The City will track all C redit transactions, including the Credit Price within a watershed . The final price and terms of the transaction will be documented by the City and tracked as part of the Credit Bank Tracking Data Management System.
4.2 Timing for Use of Credits
A Credit Generator must be constructed , operational, and approved by the City (verification inspection complete and associated Credits approved) before Credits will be included in the Credit Bank (Section 4.3) and available for use. Once the Credits are approved and have been added to the Credit Bank, fund transfers will be managed by the City’s Public Works Finance Division.
4.3 Credit Bank
The Credit Bank is the term established for the process to hold and track Credits generated and used through the Credit Program. For the purposes of the City’s Credit Program, a Credit Bank Tracking Data Management System will be used as the tracking mechanism for C redit related information. The Credit Bank Tracking Data Management System is the spreadsheet or database that tracks the Credits generated and sold, the applicable
City of Anaheim
Stormwater Credit Program 22 March 30, 2023
watershed, credit adjustments, credit price, as other associated components of the Credit Program. This information will be consistent with Credit information documented in the SC GR/WQMP developed for each Credit Generator/User. If a PDP is constructed within the tributary area of a Credit Generator after initial construction and approval, the Credit Bank Tracking Data Management System will be updated to reflect any additional Cre dit adjustments, if necessary , upon approval of the WQMP through the final verification inspection for the PDP . The Credit Bank Tracking Data Management System will summarize the available Credits in each watershed for use when evaluating Credit User eligibility. If the Credit Generator (i.e., a specific City Department) has specifically designated the Credits for their own department’s future use, the Credits will be shown as generated but not available for purchase.
The Credit Bank Tracking Data Management System will be updated within 30 days of the approval of any new Credit Generator fully verified and approved by the City for the sale of any Credits for a C redit Program watershed.
The Credit Bank Tracking Data Management System will also be used to track the Credit price and manage and track the transfer of funds for Credit purchases by Credit Users within each watershed. The City’s Public Works Finance Division will be responsible for disbursement of money associated with Credit transactions to the appropriate account.
4.4 Reporting
The City will track the progress and status of the Credit Program. The City will provide the Santa Ana Water Board a summary status report on a semi-annual basis (May 15 and November 15). The City will also provide supporting information such as SCGRs and Credit User WQMPs, upon request. While specific reporting obligations to the Santa Ana Water Board are not established in the MS4 Permit, the City will report program metrics from the past 6 months (i.e., summary of the Credit Generators and Credit User purchases approved, Credits reduced and retained in the Credit Bank for each watershed, and locations of Credit Generators and Credit Users). Much of this information will be included in the Credit Bank Tracking Data Management System, which will also be provided to the Santa Ana Water Board.
4.5 Enforcement
The primary mechanism to oversee and enforce the provisions of the Credit Program will be through periodic inspections of Credit Generators (see Section 3.1), periodic audits of the Credit Program (including the Credit Bank and financial aspects of the Credit Program ), and internal documentation of corrective actions taken if O&M deficiencies are identified during inspections. As described above, the City has built in program resiliency and mechanisms to address the removal and retention of Credits from the Credit P rogram should there be a deficiency that cannot be addressed.
City of Anaheim
Stormwater Credit Program 23 March 30, 2023
5 Tracking Tools
As described in Section 4.3, Credit gener ation and use will be tracked on a Credit Bank Tracking Data Management System. Modifications to Program tracking tools will be submitted to the Santa Ana Water Board for review, and approval if required.
6 Program Training, Coordination, and Integration
The Credit Program will be coordinated internally in the City and externally with the County, the Santa Ana Water Board and potentially others. The City will also provide training to appropriate City staff and the public through development and roll-out of procedural documents related to the Credit Program . Additionally, the City will develop a process to integrate evaluation of City CIPs with the Credit Program to identify potential Credit Generators that will be the most beneficial for the CIP Program as well as potential integration with other regional initiatives, if appropriate.
6.1 Program Training and Outreach
Upon program approval, the City will provide staff training through development and roll-out of procedural documents related to the Credit Program document, including but not limited to checklists, a Credit User WQMP template, procedures, fact sheets, etc. Through the City’s website, the public will be able to access this Credit Program document, Credit pricing information, and contact information to obtain additional information on the Credit Program. Outreach will also be provided at regional seminars, meetings, and conferences for the development and regulated communities.
6.2 Program Coordination
The process for development of the Credit Program included coordination with both internal City Departments and external organizations. External coordination included presentations, meetings, and program review by the County of Orange , other interested Copermittees and agencies (i.e., Ora nge County Water District ), the Construction Industry Coalition on Water Quality, and environmental groups (i.e., Orange County Coastkeeper, California Coastkeeper Alliance, and Natural Resources Defense Council). Input received from the County and other interested parties was reviewed, considered, and incorporated into the Credit Program as appropriate.
Once approved by the Santa Ana Water Board, the City intends to continue to coordinate and share information with interested parties as the Credit Program is implemented.
6.3 Program Integration
The Credit Program will be integrated into City programs, including the integration of the Credit Program into the New Development/ Redevelopment Program and the City’s CIP. Integration into the CIP process will include review of the CIP plan to identify where CIP projects will be located over the timeframe of the CIP plan to identify potential opportunities for Credit Generators. The process for the identification of potential Credit Generators will also use regional tools developed such as the Watershed Infiltration and Hydromodification Management Plans (WIHMPs) that identified potential locations for regional BMPs. These tools coupled with a desktop GIS exercise will help to identify potential locations of Credit Generators, which could then be field verified, investigated further with constraints analysis such as geotechnical studies and utilities investigations, and development of concept designs.
City of Anaheim
Stormwater Credit Program 24 March 30, 2023
The program will also be integrated with other regional programs such as the North Orange County Watershed Improvement Projects Subcommittee (WIPS) efforts led by the County of Orange to identify and evaluate watershed improvement projects (regional BMPs) in the four north Orange County watersheds . Locations identified for potential watershed improvement projects through the WIPS efforts could also be used to identify potential locations for Credit Generators.
Because the Credit Program promotes regional stormwater retention projects, there is an inherent connection between the WIPS efforts for the watersheds that encompass the City of Anaheim and the Credit Program. The Credit Program also helps to restore the impacts fr om existing development by implementing regional stormwater quality improvement projects ahead of when typical redevelopment would occur, which speeds up restoration of the impacts of existing development. The WIPS efforts include the development of watershed models to understand the water quality, water quantity, and water supply benefits of the potential watershed improvement projects.
The intent of the WIPS effort is to improve water quality and overall watershed health over time. The Credit Program can assist in speeding up the timeframe of improving water quality and overall watershed health in a watershed, benefitting the overall WIPS efforts.
City of Anaheim
Stormwater Credit Program 25 March 30, 2023
7 References
Building a Water Quality Trading Program: Options and Considerations. June 2015. National Network on Water Quality Trading.
https://willamettepartnership.org/wp-content/uploads/2015/06/BuildingaWQTProgram-NNWQT.pdf.
Drainage Area Management Plan (DAMP), Exhibit 7.II, Model Water Quality Management Plan (WQMP).
County of Orange. May 19, 2011.
DAMP, Exhibit 7.III, Technical Guidance Document (TGD) for the Preparation of Conceptual/ Preliminary and/or Project Water Quality Management Plans. County of Orange. December 20, 2013.
Water Quality Equivalency Guidance Document for Participation in Jurisdictional Alternative Compliance Programs under California RWQCB, San Diego Region MS4 Permit. Copermittees. May 2018. http://www.projectcleanwater.org/download/2018-wqe/.
State Water Resources Control. 2014/2016 303(d) Listings. https://www.waterboards.ca.gov/water_issues/programs/tmdl/integrated2014_2016.shtml.
Order No. R8-2009-0030, NPDES No. CAS618030, As Amended by Order No. R8-2010-0062, Waste Discharge Requirements for the County of Orange, Orange County Flood Control District and the Incorporated Cities of Orange County within the Santa Ana Region. SARWQCB.
Draft Order No. R8-2016-0001, NPDES No. CAS618030, Waste Discharge Requirements for the County of Orange, Orange County Flood Control District and the Incorporated Cities of Orange County within the Santa Ana Region. SARWQCB.
Response to Comments for Draft Order No. R8 -2016-0001, NPDES No. CA S618030, Waste Discharge Requirements for the County of Orange, Orange County Flood Control District and the Incorporated Cities of Orange County within the Santa Ana Region. August 24,2016. SARWQCB.
Storm Water Retention Credit Program. Government of the District of Columbia, Department of Energy and Environmental.
“Stormwater Credit Trading Program Architecture” December 5, 2017. Vaikko Allen, Derek Berg, and Jacob Dorman; www.ForesterNetwork.com.
The OC Plan, County of Orange, March 2018,
http://prg.ocpublicworks.com/DocmgmtInternet/Download.aspx?id=1489.
Model MS4 Alternative Compliance Program Benefit Cost Analysis for Orange County, California. December 2016. Haimann Engineering, Inc, Construction Industry Coalition on Water Quality.
Santa Ana Regional Water Quality Control Board
April 3, 2023
Keith Linker
Principal Civil Engineer
City of Anaheim Public Works Department
200 South Anaheim Boulevard
Anaheim, CA 92805
AUTHORIZATION TO PROCEED WITH THE PROPOSED CITY OF ANAHEIM
STORMWATER CREDIT PROGRAM
Dear Mr. Linker:
This letter is in response to a request made by the City of Anaheim (City) for consideration of a proposed City-wide Stormwater Credit Program (Program), dated December 15, 2022. The Program would establish mechanisms, tracking, and controls to allow City- owned regional retention projects to generat e credits that can be purchased by certain new development/significant re-development projects to satisfy the requirements of NDPES Permit and Waste Discharge Requir ements for Areawide Urban Stormwater Runoff within Orange County, Order No. R8-2009-0030 (NPDES No. CAS618030), as amended by Order No. R8-2010-006 (Order). Pursuant to Sections XII.E.4 and XII.C.7 of the Order, permittees may establish a water quality credit system for new development/significant re-dev elopment projects where si te conditions do not permit infiltration, harvesting and re-use, and/or eva potranspiration, and/or bio treatment of the 85th percentile design capture volume.
The proposed Program underwent a 30-day public review and comment period, which ended on February 16, 2023. The Santa Ana Regional Water Quality Control Board (Santa Ana Water Board) has reviewed the proposed Program and all comments received during the public comment period. Written responses to the comments received have been prepared and are released concurrently with this letter (Attachment).
After careful consideration, I find that the proposed Program does not conflict and is consistent with the requirements of the Order . Pursuant to Sections XII.E.4 and XII.C.7 of the Order, I hereby authorize the City to proceed with the proposed Program.
Mr. Keith Linker, City of Anaheim - 2 - April 3, 2023
If you have any further questions, plea se contact Nam Nguyen via email at [email protected] or via phone at (951) 321-4582 or Adam Fischer via email at [email protected] or via phone at (951) 320-6363.
Sincerely,
Jayne E. Joy, P.E.
Executive Officer
Santa Ana Regional Water Quality Control Board
Attachment: Stormwater Credit Program – Response to Comments cc: Recupero & Associates – Michael Recupero
GSI Environmental – Matthew Lentz
Haimann Engineering – Richard Haimann
Olaunu – Daniel Apt
Orange County Coastkeeper – Garry Brown
Orange County Water District – Michael Markus
Jayne Joy
Digitally signed by
Jayne Joy
Date: 2023.04.03
11:19:59 -07'00'
Stormwater Credit Program – Response to Comments
April 3, 2023
Response
Number
Commenter and Date Comment Response
1 Orange County
Coastkeeper (February
21, 2023)
Coastkeeper has conceptually supported the proposed
Program since at least 2020. Over the years, the City
has engaged Coastkeeper via meetings and site walks to
explain Program attributes and goals. Coastkeeper has
long reiterated that our support for a final credit program would require detailed consideration of a variety of
issues including long term maintenance requirements,
pollutant load multipliers for credit users, and ongoing liability for ensuring that the projects remain in operation as designed.
Coastkeeper continues to support the
Program and ultimately encourages Board staff to
approve it.
Comment noted.
2 Orange County
Coastkeeper (February
21, 2023)
What are the credit lifetimes? Lifetimes should be limited to best serve local water quali
ty goals.
Purchased credits have no expiration. Credits that have not yet been sold may be temporarily withheld or permanently expire, as described in Section 2.4.3. This is dependent
on the performance of the facility and if
performance can be maintained or restored through operation and maintenance
. The Santa Ana Water Board’s approval of the Program
does not grant a vested right to discharge waste to waters of the State, consistent with Water Code section 13263(g).
3 Orange County
Coastkeeper (February
21, 2023)
Though Coastkeeper appreciates additional information
will be provided in forthc oming Stormwater Credit
Generation Reports (SCGRs), Coastkeeper is concerned
about the lack of detail regarding O&M in sections
3.1 and
3.2. This concern is heightened by the fact that the
periodic inspections discussed in section 3.1 will be “[t]he primary mechanism to oversee and enforce the provisions of the Credit Program.”
The Stormwater Credit Program specifies that periodic operations and maintenance (O&M) inspections will be performed “at a minimum annually” (p. 18). The inspection frequency is consistent with the inspection frequencies required in Sections IX, X.2. and XII.I.5. of Order R8-2009-0030.
4 Orange County
Coastkeeper (February
21, 2023)
Will the public have an opportunity to comment on
SCGRs? How frequently will O&M inspections occur
beyond the minimum annual inspection and how will this
frequency be determined? Will the Regional Board and
public have a
role in verifying diminished volume
determinations and/or calculations?
SCGRs and related determinations and calculations will be part of a project Water Quality Management Plan (WQMP) (p.15 and p. 20).
SCGRs will also be made available upon request (p. 22). SCGRs are public records and will therefore be available for public review, though they will not be formally released for public comment by the Santa Ana Water Board. Project WQMPs are reviewed and approved by the Stormwater Credit Program – Response to Comments April 3, 2023 2 permittees under the Municipal Separate Storm Sewer System (MS4) Permit and subject to audit by the Santa Ana Water Board. See Response No. 3 regarding inspection frequencies. The Santa Ana Water Board does not expect to have a role in verifying diminished volume determinations and calculations except as part of
programmatic audits or
inspections for compliance with the MS4 Permit.
5 Orange County
Coastkeeper (February
21, 2
023)
Coastkeeper is concerned about the contemplated
transfer of ownership in section 3.4. Coastkeeper
appreciates the City anticipates retaining ownership of Credit Generators and recognizes the record notice
requirements outlined in the Program, but questions what circumstances would result in private ownership of Credit Generators? How would that affect the City’s MS4
obligations/compliance?
The Santa Ana Water Board does not have any direct role in the transfer of ownership of Credit Generators. The City has obligations to: 1) maintain adequate legal authority under Section VI of Order R8-2009- 0030; 2) control the construction and operation of post-construction structural treatment controls under Sections XII.B.3., XII.G., XII.F., XII.I. of the Order; and 3) track facilities under Section XII.H. These obligations are not affected by the Stormwater Credit Program.
6 Orange County
Coastkeeper (February
21, 2023)
As the City hopes to see the on-site feasibility analysis removed from the next MS4 Permit (see page 14, footnote 5), how would the Pollutant Load Multiplier (PLM) be
modified to account for the pollutant removal capacity of on
-site retention for Credit Users where feasible? How
else would the Program be modified to ensure a net
benefit to the watershed?
The Stormwater Credit Program is a mechanism to comply with the requirement for inclusion of BMPs for the implementation of LID principles in the new development and significant redevelopment under Section XII.C.2. and for structural treatment controls under Section XII.B.3. of Order R8-2009-0030. The sizing of structural treatment controls is regulated by numeric criteria for the volume and flow under Section XII.B.4. The PLM does not reduce the treatment volumes or flows that must be treated and does not conflict with these provisions.
Pollutant removal capacity of a facility may be a function of the need to attain a waste load allocation or water quality objectives. The City may modify the PLM to support attainment of a waste load allocation or water quality objectives at the City outfall or in the receiving water. 7 Orange County
Coastkeeper (February
21, 2023)
Coastkeeper notes that Figur e 3, the receiving water
impairments, and narrative statements regarding the
same in section 2.1 may need to be updated for the
forthcoming, updated Integrated Report as the same is
finalized and adopted.
The commenter is correct that the forthcoming 2024 Integrated Report may add new pollutant-waterbody combinations to the 303(d) List that may need to be incorporated into the Stormwater Credit Program. 8 Orange County
Coastkeeper (February
21, 2023)
To the extent there are no downstream impairments for a particular pollutant, how will the Credit User decide which PLM to use to calculate the number of credits to
purchase? Who will verify that selection and how?
If there are no downstream impairments or TMDLs, the City will have the discretion to set PLMs. The use of PLMs is discussed in the Technical Basis Document: Pollutant Load Multipliers for Credit Users, referenced in Section 2.4.2.1. The Stormwater Credit Program has been edited to make it clearer that PLMs do not allow the purchase of credits that are Stormwater Credit Program – Response to Comments April 3, 2023 3 less than the design capture volume required by the MS4 Permit. See also Response 4.
9 Orange County
Coastkeeper (February
21, 2023)
Coastkeeper requests Board staff strike the parenthetical on page 14, footnote 5, as the Program is not the
appropriate place for the City to provide comments on the forthcoming revised draft MS4 permit.
Approval of the Stormwater Credit Program does not indicate that the Santa Ana Water Board agrees with any opinions expressed by the City regarding any future regulatory actions.
Striking the City’s comment is not
necessary.
10 Orange County
Coastkeeper (February
21, 2023)
Coastkeeper underscores and appreciates the City’s
commitment to prohibit trading across watersheds, a
crucial element for local water quality. By the same token, Coastkeeper would strongly prefer Credit Users be
tributary to Credit Generato rs and would like to see the Program and section 2.1 be modified accordingly.
The Stormwater Credit Program relies on voluntary transactions between the Credit Users and Generators. If the Generator could only work with Users in the tributary area of a facility, parties who decline to participate would have negative impacts on its operational funding. Allowing parties who are in the same watershed, but not tributary to a facility to participate can mitigate these negative impacts while protecting the quality of the receiving water.
11 Orange County Water
District (February 16,
2023)
After reviewing Anaheim's Stormwater Credit Program, it is OCWD's understanding that only city -owned projects
can generate stormwater credits. If the pilot program is successful, stormwater credits will be made available for sale to qualifying public and private projects. Stormwater credits will be the portion of the project des ign capture volume remaining after credit retentions and reductions.
Remaining stormwater credits will be made available for sale to projects within the same sub-watershed they have been created. Anaheim will regularly monitor and perform maintenance on the stormwater credit generating facility.
If capacity has been determined to be unrecoverable then the equivalent volume will be reduced from the amount for sale to public projects. To be eligible to purchase
stormwater credits, stormwater infiltration must be
deemed infeasible at the project location and the project is still required to develop a Water Quality Management Plan (WQMP) to document source controls and on-site
structural BMPs. The ultima te amount of stormwater
credits needed by a project will be determined by using a conservative land-use based pollutant loading multiplier.
Funds generated by the City of Anaheim from the sale of the stormwater credits will be used to supplement ongoing Comment noted. This understanding does not conflict with the Santa Ana Water Board’s understanding of the Stormwater Credit Program.
Stormwater Credit Program – Response to Comments April 3, 2023 4 monitoring and maintenance of the stormwater generating projects in perpetuity and may fund future regional
stormwater capture projects.
12 Orange County Water
District (February 16,
2023)
From OCWD's perspective, as the groundwater basin
manager, Anaheim's Stor mwater Credit Program will
more rapidly expand the volume of stormwater captured
within the City of Anaheim than if the program was not
adopted. This in turn will incrementally decrease
stormwater flows lost to the ocean, thereby increase
groundwater stored in the underlying groundwater basin.
Simultaneously, this program provides a funding source
for Anaheim's stormwater cred it generating facilities and requires them to be routinely monitored, managed, and
maintained in perpetuity.
Comment noted.
13 Orange County Water
District (February 16,
2023)
In providing comments on previous draft versions of
NPDES Permits and Waste Discharge Requirements for
Areawide Urban Stormwater Runoff within Orange
County, OCWD has commented on our concern about
implementation of required maintenance of infiltration
facilities constructed at private development and
redevelopment sites to comply with the permits. OCWD
implements a large system of recharge facilities, including wells and surface recharge basins. All recharge facilities clog due to accumulation of sediment and other material as water flows through them, causing their infiltration rate to decline through time. OCWD has been concerned that
infiltration systems at private development or
redevelopment projects will not be properly maintained
due to changes in land ownership, infiltrations systems being 'out of sight, out of mind', and other factors.
Accordingly, OCWD supports regional systems that
benefit from economy of scale and other factors
associated with active management by public agencies,
like the City of Anaheim.
Comment noted. Approval of the Stormwater Credit Program does not indicate that the Santa Ana Water Board agrees or disagrees with any opinions expressed by the Orange County Water District regarding any future regulatory actions.
Stormwater Credit Program – Response to Comments April 3, 2023 5 14 Orange County Water
District (February 16,
202
3)
Anaheim's Stormwater Credi t Program will benefit our
region by increasing accountability and assurance of long- term operation and maintenance of stormwater infiltration facilities installed to comply with the permit requirements.
Additionally, the funds generated by the sale of
stormwater credits may allow Anaheim to expand its
network of regional stormwat er capture projects. Lastly, by developing larger regional projects, the program may allow for more cost -effective stormwater ca pture and
treatment solutions, which provide benefit to the region.
Comment noted. The principal purpose of the Stormwater Credit Program is to comply with requirements for LID structural treatment controls for priority projects under Order R8
-2009-0030 in a manner that reduces
pollution in stormwater runoff to the maximum extent practicable. 15 Orange County Water
District (February 16,
2023)
The City of Anaheim has been an exceptional partner in
the stormwater infiltration space. OCWD would like to
commend the City of Anaheim for its forward -thinking
stormwater credit program and look forward to continued coordination on stormwater credit generating projects to ensure they are appropriately located away from existing soil, soil vapor and groundwater contamination, to the
extent required, and have the appropriate structural and non
-structural BMPs and pretreatment necessary to
ensure infiltrated stormwater is protective of groundwater quality.
Comment noted.