State Innovation Grant Program Wyoming: Watershed-based NPDES Permitting for the Powder River Basin The EPA State Innovation Grant Program was established in 2002 to help strengthen EPA's innovation partnerships with States and Tribes and is a direct result of the Agency's innovation strategy, Innovating for Better Environmental Results: A Strategy to Guide the Next Generation of Innovation at EPA (http://www.epa.gov/innovation/strategy). To support the Innovation Strategy, the 2002 grant program focused its efforts on projects that related to one of four priority issues: reducing greenhouse gases, reducing smog, improving water quality, and reducing the cost of drinking water or wastewater infrastructure. In addition, EPA sought projects that test incentives that motivate "beyond-compliance" environmental performance, or move whole sectors toward improved environmental performance. This series of fact sheets features the State projects selected for funding under the Grant Program. Contacts: Dan Hengel Wyoming Department of Environmental Quality, Herschler Building, 4th Floor West, 122 West 25* Street, Cheyenne , WY 82002, dhenge@state.wy.us Whitney Trulove-Cranor US EPA Region 8; Denver, CO, trulove- cranor.whitney@epa.gov Amanda Bassow US EPA National Center for Environmental Innovation, Washington, DC, 202-566-2240, bassow.amanda@epa.gov Background The Wyoming Department of Environmental Quality, Water Quality Division (WDEQ/WQD) issues individual National Pollutant Discharge Elimination System (NPDES) permits for discharges into the Powder River Basin (PRB) in northeastern Wyoming for a variety of industrial and municipal point sources. The industrial point sources range from coal mining to oil and gas treaters to coal bed methane development. In an area the size of the PRB, approximately 9000 square miles in Wyoming, the potential impacts to water quality from industrial point source discharges is significant. The WDEQ/WQD, with stakeholder involvement, has therefore decided to streamline and strengthen the NPDES permitting process for the Powder River Basin. NCEI NATIONAL CENTER FOR ENVIRONMENTAL INNOVATION ------- Project Description WDEQ/WQD proposes to implement a watershed- based NPDES permitting approach for the Powder River Basin within Wyoming. The primary goals of the strategy are the consideration of cumulative impacts to water quality over an entire watershed and development of an efficient permitting methodology. Secondary goals include developing a template for watershed-based NPDES permitting that will be transferable to other watersheds in Wyoming and potentially to other states with similar permitting issues and watersheds. Ultimately, implementation of a watershed-based NPDES permitting process for northeast Wyoming should streamline the NPDES permit application sequence and strengthen the NPDES regulatory mechanism to maintain compliance with established water quality standards. The watershed-based permitting project is designed first to achieve and demonstrate results in the short-term (1 year), and then to transfer the project methodology to other watersheds and other States. An example of a potential benefit from the implementation of a watershed-based permitting approach for the Powder River Basin would involve the coalbed methane (CBM) industry. WDEQ/WQD anticipates a dramatic increase in NPDES permit applications for CBM effluent discharges in the next decade. A watershed- based permitting approach, relative to CBM development, may allow for an overall reduction in CBM constituent loading to the Powder River through a "reallocation" program at the sub-watershed level (e.g. higher quality CBM effluent discharged at a higher rate into LX Bar Creek to compensate for lower quality CBM effluent discharged at a lower rate into Pumpkin Creek). Benefits of the Project The implementation of a watershed-based NPDES permitting process for northeast Wyoming will streamline the NPDES permit application sequence and strengthen the WDEQ/WQD regulatory mechanism to maintain compliance with established water quality standards. The watershed-based permitting approach aims to improve WDEQ/WQD administrative efficiency (reduction in time needed to review permit applications), increase public involvement opportunities (better informed stakeholders), and potentially reduce permit applicants' costs (potentially fewer permit applications). The watershed-based approach differs from the current permitting method by looking at a cumulative assessment of the potential impacts to water quality in the basin. The watershed-based approach builds on lessons learned from the overwhelming number of NPDES permit applications received by WDEQ/ WQD involving CBM in the late 1990s. Implementing a watershed-based permitting approach will result in measurable improvements in water quality for the Powder River Basin. Improvements in administrative efficiency will include quicker turn-around time from receipt of permit application to submission for public notice and reduced operational costs since fewer personnel hours would be required per permit application. Costs for the permit applicants will be lower because there will be fewer required permits per watershed resulting in reduced in expenses for permit application development. Project Plan This is a 12 month project. United States Environmental Protection Age ncy Oftice of Policy, Economics and Innovation (1807T) January 2005 EPA-100-F-05-009 ------- |