S-EPA
            United States
            Environmental Protection
            Agency
             Office Of Water
             (4203)
EPA 833-R-96-007
March 1994
NPDES Permit Issuance
Flexibility Policy In
Watershed Permitting

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                   UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
                                  WASHINGTON, D.C. 20460
                                              MAR  1 3 J996
                                                                              OFFICE OF
                                                                               WATER
 MEMORANDUM
 SUBJECT:

 FROM:


 TO:-
NPDES Permit Issuance Flexibility policy in Watershed Permitting
Michael B. Cook, Director
Office of Wastewater Management

Regional Water Program Directors (Region 1-10)
 Purpose

       The purpose of this memorandum is to follow-up on the NPDES Watershed Strategy..
 issued on March 21, 1994, and to address one of the major watershed permitting implementation
 issues raised by Regions and States.  Permitting authorities have expressed a need for flexibility in
 meeting permit issuance requirements during the transition to a watershed approach. EPA
 Headquarters recognizes the challenge involved in such an undertaking and has developed an
 outline of measures designed to help facilitate a smooth transition to a watershed permitting
 system.

 Background

       Currently, many permitting authorities issue major and minor NPDES permits on a five
 year cycle with priority afforded to individual permits, independent of the goals and priorities for
 the watershed in which it is located.  In many cases, major permits must be given priority for time
 and resource commitments over minor permits simply because of their designation as majors,
 without regard to their relative environmental impact or importance.  The NPDES Watershed
 Strategy emphasizes the  need to revise the current implementation system and recognizes the
 importance of issuing permits within the context of a  watershed management framework.
 Decisions about point source controls should be based on an overall assessment of environmental
 priorities and concerns within a basin. States accomplish this goal by developing a basin
 management plan  and by assuring that permits are issued in accordance with the priorities and
management strategies described in the plan.  This type of permitting system emphasizes permit
development for both major and minor permits that pose a significant environmental threat to a
basin or watersheds within the basin.  Also, it allows States to place the permitting program
within the context of an overall statewide watershed management framework by coordinating
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  permitting with other key water management programs. In order to facilitate this process, many.
  permitting authorities choose to synchronize permit reissuance dates by basin such that all'
  NPDES permits within a basin are reissued at approximately the same time.

  Issue

        EPA recognizes that many States will implement the NPDES Watershed Strategy in an
  incremental fashion.  This process will require identifying and assessing all basins, setting goals
  and priorities for each basin, and developing and implementing management strategies designed to
  restore and protect water resources and meet the goals set for each basin. EPA recognizes that
  not all basins will receive the same level of attention, and that resources will be allocated based
  upon the needs of each  basin.  The time to move through an entire cycle of identification,
 assessment, priority setting, and management strategy development for each basin will vary from
  State to State. Therefore, the time required to develop a permit issuance system with
 synchronized permitting will vary from State to State.  EPA expects that permit issuance backlogs
 will increase in the short term as permitting authorities administratively extend some expired
 permits to allow their reissuance dates to coincide with  those of other permits in the same basin
 but this backlog should  decrease after the permitting authorities adopt and implement a watershed
 approach.
        A permit issuance backlog for both major and minor permits will be acceptable in
 situations where the permitting authority shows demonstrated progress toward implementing a
 watershed permitting approach. A demonstration of progress will include:

        (1)    Established Statewide geographic  management units (i.e., major basins and
              watersheds or sub-basins nested within the major basins);

        (2)    A cycle of activities for basins (e.g., monitoring,  assessment, prioritization,
              management strategy development) and a schedule for implementation by basin,
              and

       (3)    A plan and schedule for synchronized permit issuance or reissuance.

       EPA expects that there will be some initial backlog while setting up and implementm« a
plan and schedule for synchronized permit issuance, but the permitting authority's plan and  "
schedule must address and eliminate the initial permit backlog in a reasonable time period  In no
case should this period exceed 10 years. The pian and schedule  should be established in
consultation with the respective EPA  Regional office and should become part of the State EPA
Partnership Agreements.

       EPA recognizes that the amount of backlog attributable to the initial years of
implementing a watershed permitting system will vary from State to State since there are many

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 State-specific and site-specific factors that will affect this new approach to permitting.  Therefore,
 we are not prescribing a specific percentage for allowable backlog. Rather, discussions of
 allowable backlog should be part of Partnership Agreements between each State and their
 respective EPA Regional office.

 Minimizing and Reducing Backlog

        In developing their permit issuance plans and schedules, permitting authorities should
 recognize that some permits may not need major revisions at time of reissuance. Also,  there may
 be opportunities to develop and use general permits to relieve some of the permit issuance burden.
 Permitting authorities should include these opportunities in their basin plans and permit issuance
 schedules where appropriate.

       New dischargers will need to be permitted within the synchronization system and,
 therefore, their first permit issuance may require a permit term considerably less than five'years.
 In addition,  some of the initial permit backlog associated with synchronizing permits may be
 relieved by reissuing some, existing permits for less than a five year term. For example,  some
 States have chosen to synchronize permits within a basin through a combination of short-term
 permit issuance (three to five years) and administrative extensions of less than three years.

       EPA sent an earlier, draft version of this policy to Regional watershed permitting contacts
 for review and comment. They, in turn, provided copies to some States for review. Comments
 received from Regional and State personnel have been addressed in this final policy. - Please share
 this policy with your States to make them aware of the continued emphasis on issuing permits in
the context of a watershed management framework.  The Permits Division at EPA Headquarters
continues to  work on guidance to assist you with integrating the NPDES program into an overall
watershed management framework. Should you have any questions, please contact Deborah
Nagle of my staff at 202-260-2656.

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