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PROGRAM NARRATIVE 107BF02:WQ_NARRTV ___ Agency Request _ X _ Governor’s Recommended ____ Legislatively Adopted Budget Page _____ 5-3 SOURCES OF WATER POLLUTION

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PROGRAM NARRATIVE

107BF02:WQ_NARRTV ___ Agency Request _ X_ Governor’s Recommended ____ Legislatively Adopted Budget Page _____ 5-3

SOURCES OF WATER POLLUTION

PROGRAM NARRATIVE

107BF02:WQ_NARRTV ___ Agency Request _ X_ Governor’s Recommended ____ Legislatively Adopted Budget Page _____ 5-4

I. OVERVIEW OF WATER QUALITY A. OREGON’S WATER RESOURCES Oregon ranks as the tenth largest state with 96,981 square miles. Oregon has over 100,000 miles of rivers, over 6,200 lakes (including many pure lakes in the High Cascade Mountain region), nine major estuaries, and over 360 coastal miles. Groundwater is a less visible resource, but no less important. More than 90 percent of the available freshwater in the state resides underground in aquifers. As of 1995, groundwater uses accounted for 13 percent of all water used in Oregon. 70 percent of all Oregonians and over 90 percent of rural residents rely on groundwater as their primary or secondary drinking water source. Groundwater also supplies the base flow for the state’s rivers and streams.

Topic Value State surface area, square miles 96,981Number of surface water bodies (1:100,000 scale) 37,600Total miles of rivers and streams (EPA 1:100,000 scale)

- Miles of perennial rivers/streams - Miles of intermittent (non-perennial) streams - Miles of ditches and canals - Border miles of shared rivers/streams

51,69559,2993,829

649

Number of lakes/reservoirs/ponds (DEQ 1:24,000 scale) 6,223Number of significant publicly owned lakes/reservoirs/ponds 203

Acres of lakes/reservoirs/ponds (DEQ 1:24,000 scale) 618,934Acres of significant publicly owned lakes/reservoirs/ponds 491,518

Square miles of estuaries/harbors/bays 206Miles of ocean coast 362Acres of freshwater wetlands 1,200,000Acres of tidal wetlands 55,600Number of groundwater wells installed for drinking water supply 202,000

PROGRAM NARRATIVE

107BF02:WQ_NARRTV ___ Agency Request _ X_ Governor’s Recommended ____ Legislatively Adopted Budget Page _____ 5-5

B. PROTECTING WATER QUALITY Since 1938, Oregon has been a leader in the United States in protecting and restoring water quality. DEQ is responsible for assuring that the state’s waters are drinkable, fishable and swimmable. In partnership with other natural resource agencies, DEQ is working to preserve and protect watershed health and to restore salmon populations. DEQ plays an important part in protecting water quality in Oregon by:

• Requiring that the discharge of pollutants into public waters be minimized, and that the impact of human activities generally on water quality be minimized.

• Setting water quality standards necessary to support all beneficial uses, including protection of public health, recreational activities, aquatic life, and water supplies.

• Assessing water quality in surface waters to determine if standards are met for protection of public health, fish and other aquatic life, and other uses.

• Where water quality is not acceptable, developing corrective actions and implementing them. • Re-assessing water quality, and as necessary developing and implementing additional corrective actions.

Water quality protection is based upon the protection of recognized beneficial uses. The major beneficial uses include domestic and industrial water supply, fisheries, aquatic life, wildlife, agriculture, navigation, hydroelectric power, recreation, and aesthetics.

Oregon’s Instream Water Quality Standards

Pollutant Most Sensitive Beneficial Uses Protected Dissolved Oxygen Salmonids, Other Fish & Aquatic Life Bacteria Water Contact Recreation & Shellfish HarvestingpH Salmonids, Other Fish & Aquatic Life Turbidity Salmonids, Other Fish & Aquatic Life Total Dissolved Gas Salmonids, Other Fish & Aquatic Life Total Dissolved Solids Drinking Water SuppliesToxic Compounds Drinking Water Supplies and Salmonids, Other Fish & Aquatic Life Temperature Salmonids, Other Fish & Aquatic Life Chlorophyll-a Recreation, Drinking Water Supplies, Salmonids, Other Fish & Aquatic Life

PROGRAM NARRATIVE

107BF02:WQ_NARRTV ___ Agency Request _ X_ Governor’s Recommended ____ Legislatively Adopted Budget Page _____ 5-6

C. CLEAN WATER ACT AND STATE WATER QUALITY LAWS 1. Key Federal Requirements

The federal Clean Water Act requires that either the U.S. EPA or states perform activities to protect water quality in rivers, streams, lakes, and estuaries. In Oregon, the State carries out delegated authority by implementing mandatory requirements of the Clean Water Act. Many DEQ programs are referred to by the section number in the Clean Water Act, which provides regulatory authority or requires the activity, such as the 303(d) list or the 319 Program.

Key Sections in the Clean Water Act Section 303: Water Quality Standards, Water Quality Limited Streams,

Total Maximum Daily Loads Section 305: Water Quality Inventory Section 314: Clean Lakes Program Section 319: Nonpoint Source Program (examples of nonpoint pollution

are runoff from urban areas and farms) Section 320: National Estuary Program Section 401: Certification of Fill & Removal and Hydroelectric Projects

Section 402: National Pollutant Discharge Elimination System (NPDES) Permits for Industrial, Domestic and Stormwater Discharges

Section 405: Disposal of Biosolids

Title VI: State Revolving Loan Fund

PROGRAM NARRATIVE

107BF02:WQ_NARRTV ___ Agency Request _ X_ Governor’s Recommended ____ Legislatively Adopted Budget Page _____ 5-7

303(d) List Section 303(d) of the Clean Water Act requires states to develop a list of waterbodies that do not meet the State’s water quality standards. DEQ uses existing scientific data from a variety of sources (after reviewing it for Quality Assurance) to assess water quality and determine which waterbodies should be listed. Once a list is developed, DEQ must prioritize the list and submit it to EPA for approval. DEQ submitted a 2004/2006 Section 303(d) list to EPA and is waiting for approval. About 3%, 1,117 of approximately 37,600 water bodies in Oregon, are on the list for at least one pollutant. Not all water bodies have existing data to assess. It is important to remember that while the 303(d)list identifies stream segments that fail to meet water quality standards, it does not comprehensively represent the condition of Oregon’s waters. That is assessed by the water monitoring program, which includes long-term trend sites and randomly selected sites for status assessment.

901

175

164

95

56

36

35

20

17

14

3

1

1

0 100 200 300 400 500 600 700 800 900 1000

Number of water bodies based on 2004/2006 303(d) List

Temperature

Bacteria

Toxic - Inorganic

Dissolved Oxygen

Sedimentation

pH

Toxic - Organic

Chlorophyll a

Biological Criteria

Aquatic Weeds Or Algae

Turbidity

Phosphorus

Total Dissolved Gas

Figure 1: Impaired Water Bodies Needing a TMDL

PROGRAM NARRATIVE

107BF02:WQ_NARRTV ___ Agency Request _ X_ Governor’s Recommended ____ Legislatively Adopted Budget Page _____ 5-8

Total Maximum Daily Loads (TMDLs) and Water Quality Management Plans

Once a waterbody is placed on the 303(d) list, the federal Clean Water Act requires States to develop a management plan to meet water quality standards. This plan is called a Total Maximum Daily Load (TMDL). TMDLs describe the maximum amount of pollutants from municipal, industrial, commercial and surface runoff sources, including natural background, which can enter the river or stream without violating water quality standards. Oregon’s 303(d) list and TMDL process were the subject of lawsuits brought by environmental groups. Under a consent order signed in 2000, EPA has agreed to a timeline that will ensure Oregon will complete all applicable TMDLs for waterbodies listed on the by the end of 2010. This schedule is further memorialized in a Memorandum of Agreement between DEQ and EPA signed in 2000.

DEQ develops TMDLs on a basin or subbasin scale (generally on a 3rd field US Geological Survey Hydrologic Unit Code). All 303(d) listed pollutants are included in these assessments using a comprehensive approach. By the end of 2006, DEQ will have completed over 800 TMDLs in 33 sub-basins. Based on DEQ’s progress, we remain on track for meeting the 2010 timeframe.

Implementing a TMDL often includes revising industrial and municipal wastewater permits to incorporate revised permit limits. On agricultural land these implementation plans are developed through the Oregon Department of Agriculture’s SB1010 process. On state and private forestlands, the Department of Forestry has the lead in providing water quality protection through the Forest Practices Act and long range management plans. In the urban landscape, local governments will take a lead in developing TMDL Implementation plans. The U.S. Forest Service and the Bureau of Land Management are responsible for developing water quality restoration plans for lands under their jurisdiction.

Under most circumstances, TMDL implementation plans for improved water quality rely on cooperation among landowners and land managers within a river basin. Local watershed councils, Soil and Water Conservation Districts or other organizations will serve as community-based coordination points for these united efforts. Agencies and municipalities with jurisdiction over sources of nonpoint source pollution are required to submit TMDL implementation plans to DEQ. These plans describe actions that will be taken to reduce their contribution to Water Quality problems.

PROGRAM NARRATIVE

107BF02:WQ_NARRTV ___ Agency Request _ X_ Governor’s Recommended ____ Legislatively Adopted Budget Page _____ 5-9

Walla Walla

UpperGrande Ronde

LowerSnake- Asotin

Snake- Hel ls Canyon

BrownleeReservoir

Willow- Malheur

MiddleSnake-Payette

MiddleSnake-Succor

UpperCrooked Beaver-

SouthFork

Sandy

Molalla-Pudding

SouthSantiam

North Fork John Day

Lower Willamette

Middle Willamette

Coast Fork Willamette

South Umpqua

ChetcoApplegate

Smith

Middle Rogue

Thousand-Virgin

Harney- Malheur Lake

Middle Owyhee

East LittleOwyhee

UpperKlamath Lake

Necanicum

LowerColumbia-Youngs

WesternHood

LittleRiver

#LobsterCreek

#South ForkCoquille

#

LowerSucker Creek

South ForkOwyhee

Umatilla

Silver

Lost

Summer Lake

Powder

Burnt

Silvies

Lower John Day

Sprague

Umpqua

Upper Malheur

Alvord LakeGuano, NevadaIllinois

Lower OwyheeCoos

McKenzie

Trout

Williamson

Willow

Upper John Day

Lower Deschutes

Coquille

Upper Deschutes

Bully

Alsea

Warner Lakes

Upper Rogue

Lower Crooked

ImnahaWallowa

Upper Willamette

Yamhill

Siuslaw

Lake Abert

Nehalem

Jordan

North Umpqua

Tualatin

Sixes

Clackamas

Middle Fork Willamette

Crooked-Rattlesnake

Lower Rogue

Little Deschutes

Middle Columbia-Hood

Lower Malheur

Goose Lake

Lower Grande Ronde

North SantiamSiletz-Yaquina

Wilson-Trask-Nestucca

Middle Fork John Day

Donner und Blitzen

Middle Columbia-Lake Wallula

Upper Quinn

Upper Klamath

Lower Columbia-Clastsk.

Siltcoos

Butte

Target Year20062007200820092010

EPA Approved

0 50 100 150 200 Miles

N

EW

S

Target Dates for Completion of TMDLs for 303(d) Listed Waters

PROGRAM NARRATIVE

107BF02:WQ_NARRTV ___ Agency Request _ X_ Governor’s Recommended ____ Legislatively Adopted Budget Page ____ 5-10

2. Key State Requirements Oregon’s clean water laws are found in Chapter 468B of the Oregon Revised Statues. These laws provide DEQ with the authority to implement federal requirements. Federal requirements are primarily concerned with water pollution that flow directly into surface water, with a few exceptions. In order to regulate wastewater that is discharged onto land or underground, the State has adopted laws and rules covering land-applied wastewater, septic systems and groundwater.

D. MEASURING RESULTS

1. Oregon Water Quality Index

The DEQ Laboratory develops methods for measuring environmental results. One principle indicator of water quality trends is the Oregon Water Quality Index. This index is developed from data collected from a long term, statewide ambient river-monitoring network. The Oregon Water Quality Index (OWQI) is a single number that expresses water quality by integrating measurements of eight water quality parameters (temperature, dissolved oxygen, biochemical oxygen demand, pH, ammonia + nitrate nitrogen, total phosphates, total solids, and fecal coliform). OWQI provides a simple and concise method for expressing ambient water quality that describes cumulative impacts from point and nonpoint sources of pollution in a variety of conditions. The index allows users to easily interpret data and relate overall water quality variation to variations in specific parameters or locations. The OWQI can also identify problem areas and trends. This index generally shows there has been an improvement in water quality throughout the state. The most significant gains are at monitoring sites downstream of significant point sources, and in areas where water quality management plans have been implemented. 2. Biological Condition Indexes In addition to the OWQI, which assesses water chemistry, DEQ has developed indexes that assess the biological health of Oregon’s streams. These indexes look at fish and macroinvertebrate assemblages, and directly measure if waters support aquatic life beneficial uses. Because biological indices reflect the effects of multiple stressors across time, they are particularly responsive to non-point sources of pollution that traditional chemical monitoring can miss. Most biological monitoring has been sampled using a random site or probabilistic sampling design and has focused on wadeable sized streams (1st through 3rd order).

PROGRAM NARRATIVE

107BF02:WQ_NARRTV ___ Agency Request _ X_ Governor’s Recommended ____ Legislatively Adopted Budget Page ____ 5-11

Table 1. Comparison of Calculated and Target Surface Water Quality Benchmarks

BENCHMARK

1990

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2010

Percentage of monitored stream sites with significantly

increasing trends in water quality

8% 21% 32% 52% 70% 64% 70% 51% N/A 32% 24% 14% 25%

Percentage of monitored stream sites with significantly

decreasing trends in water quality

20% 8% 2% 0% 1% 1% 1% 5% 4% 6% 10% 14% 0%

Percentage of monitored stream sites with good to

excellent water quality condition

27% 28% 35% 32% 37% 41% 42% 46% 46% 48% 49% 51% 55%

PROGRAM NARRATIVE

107BF02:WQ_NARRTV ___ Agency Request _ X_ Governor’s Recommended ____ Legislatively Adopted Budget Page ____ 5-12

II. WATER QUALITY PROGRAMS AND ACTIVITIES

The Water Quality Program’s primary functions, program activities have been grouped into seven major categories:

A. The Oregon Plan for Salmon and Watersheds B. Water Quality Standards and Assessment C. Wastewater Control Industrial and Domestic Permitting Pretreatment Biosolids

Underground Injection Control 401 Certification Operator Certification

Onsite Sewage Systems Compliance and Enforcement Wastewater Reuse

D. Financial and Technical Assistance State Revolving Loan Fund Nonpoint Source Program

E. Groundwater F. Safe Drinking Water Act G. Water Quality Monitoring

PROGRAM NARRATIVE

107BF02:WQ_NARRTV ___ Agency Request _ X_ Governor’s Recommended ____ Legislatively Adopted Budget Page ____ 5-13

A. THE OREGON PLAN FOR SALMON AND WATERSHEDS

The Oregon Plan for Salmon and Watersheds is designed to restore the healthy function of Oregon’s natural aquatic systems. It represents commitments on behalf of government, interest groups, and private citizens from all sectors and communities in Oregon. The plan originated as an effort to address declining populations of coastal coho salmon. The Department of Environmental Quality has two primary roles: 1) to cooperatively develop Total Maximum Daily Loads (TMDLs) and obtain EPA approval of the TMDLs, and 2) assess the condition of streams where fish populations are at risk to identify key limiting factors and determine water quality trends. DEQ collaborates with other state and federal agencies to collect and interpret water quality monitoring data. Local agencies and watershed councils have a key role in developing solutions and DEQ provides needed scientific information for understanding water quality problems and developing successful management plans and TMDLs. DEQ also has the responsibility to provide feedback through on-going monitoring on whether Oregon is making progress towards restoring healthy watersheds.

DEQ’s Major Contributions to The Oregon Plan

Coordinate with other agencies to monitor water quality throughout the state and conduct intensive monitoring studies.

Establish water quality standards that are protective of salmonids.

Regulate discharges from industry and municipalities including permitting, monitoring, compliance assistance, technical assistance, and enforcement when necessary.

Regulate stormwater runoff from urban areas and construction sites.

Coordinate comprehensive nonpoint source pollution prevention programs under federal Clean Water Act.

Develop Total Maximum Daily Loads (TMDLs) to bring water bodies into compliance with state standards.

Provide technical assistance to watershed councils, municipalities, industries, government agencies and others.

PROGRAM NARRATIVE

107BF02:WQ_NARRTV ___ Agency Request _ X_ Governor’s Recommended ____ Legislatively Adopted Budget Page ____ 5-14

B. Water Quality Standards and Assessment Establishing water quality standards for surfacewater is at the core of DEQ’s water quality activities. Standards are established to protect beneficial uses of water, such as drinking, aquatic life, and recreation. The Water Quality Program then acts to protect and restore water to the standards that allow those uses. The staff who work on standards perform the following activities:

• conduct standards reviews and rule revisions to establish and update scientifically based water quality standards; • identify waterbodies not meeting water quality standards; and, • develop standards application policy and procedures documents (internal management directives).

C. WASTEWATER CONTROL

1. Industrial and Domestic Wastewater Permitting

DEQ’s wastewater management program regulates and minimizes adverse impacts of pollution on Oregon’s waters from point sources of pollution. The term “point source” generally refers to wastewater discharged into water or onto land though a pipe or a discernible channel. These point sources operate under the terms of a federal National Pollutant Discharge Elimination System (NPDES) or state Water Pollution Control Facilities (WPCF) wastewater discharge permit issued by DEQ. DEQ has had authority for NPDES permit issuance since 1974. As an EPA authorized program, DEQ’s NPDES permitting activities are subject to EPA oversight. Effective implementation of the program is required for continued authorization of the water quality program and is essential to the continued receipt of federal funds. To effectively protect water quality, DEQ must carry out four activities:

• Issue discharge permits that adequately evaluate and limit pollution to prevent an impact on receiving waters and the beneficial uses of those waters (drinking, swimming, fishing, aquatic habitat, etc.);

• Inspect facilities and review monitoring results; • Take prompt and appropriate enforcement actions when violations occur; and • Provide essential technical assistance for facility owners and operators to help assure ongoing compliance at minimum

expense to permit holders. DEQ currently manages about 4,650 water quality permits including 4,200 federal National Pollutant Discharge Elimination System (NPDES) permits and 450 state Water Pollution Control Facilities (WPCF) permits. As of June 30, 2006, the backlog for NPDES major sources was 26%, for all individual permits 22%, and all general permits 17%. Additionally, during the 2004-2006 biennium, DEQ conducted 427 inspections.

PROGRAM NARRATIVE

107BF02:WQ_NARRTV ___ Agency Request _ X_ Governor’s Recommended ____ Legislatively Adopted Budget Page ____ 5-15

2. Pretreatment Program

DEQ requires communities with a large industrial base or those that serve certain types of industries to develop and implement a management plan for controlling wastewater discharged from industries into publicly owned treatment works. The purpose is to prevent discharging of toxic wastes or wastes that could upset, inhibit, pass through without treatment, or otherwise adversely affect the wastewater treatment system.

3. Biosolids Program

The biosolids program regulates wastewater solids and domestic septage that have undergone sufficient treatment to allow its beneficial use as a soil amendment or fertilizer through land application. Biosolids and domestic septage are regulated through NPDES or WPCF water quality permits issued by DEQ. DEQ also reviews and approves biosolids management plans and issues site authorization letters. Additionally, DEQ works with domestic wastewater treatment facilities to assure biosolids are adequately stabilized and land application operations and management meet federal and state regulations. Monitoring and reporting of a wastewater treatment facility’s biosolids activities are required.

4. Underground Injection Control The Underground Injection Control (UIC) program protects drinking water sources and aquifers by providing oversight on the use of injection systems (dry wells, sumps, large onsite sewage systems, etc.) that discharge to the subsurface and may endanger groundwater quality. Federal regulation requires DEQ to keep an updated inventory of all injection wells and report them to the EPA. In Oregon the majority of injection systems are associated with storm water discharge and industrial process/wastewater. Injection systems qualify as rule authorized, are exempt from requirements, or are required to acquire a WPCF permit.

5. 401 Certification Section 401 of the federal Clean Water Act requires that any federal license or permit to conduct an activity that may result in a discharge to waters of the Nation must receive a water quality certification from the State where the activity will occur. In Oregon, DEQ is responsible for reviewing proposed projects under this requirement. Nearly all such federal licenses or permits come from either the US Army Corps of Engineers (USACE) for dredge and fill activities, or from the Federal Energy Regulatory Commission (FERC) for hydroelectric projects. Between June 2005 and June 2006, DEQ issued 98 dredge and fill 401 water quality certifications. These certifications included Port of Portland, coastal ports and small marina maintenance dredging projects, removal of Savage Rapids dam on the Rogue River,

PROGRAM NARRATIVE

107BF02:WQ_NARRTV ___ Agency Request _ X_ Governor’s Recommended ____ Legislatively Adopted Budget Page ____ 5-16

multiple commercial and residential developments, various Oregon Department of Transportation projects including roads and bridges, the State Programmatic General Permit, numerous wetland and stream restoration projects and sand and gravel mining. Since 2005, the 401 program participated in the relicensing/reauthorization processes for the following hydroelectric projects: Clackamas River, Hells Canyon Complex (Snake River) and Klamath River. The program also began review of 401 certification applications for Dorena Dam, Prospect and Klamath hydroelectric projects and continued oversight of implementation of 401 certification conditions for North Umpqua, Willamette Falls, Pelton Round Butte, Powerdale, and Bull Run.

6. Operator Certification

In 1987, the Oregon legislature adopted a law requiring that domestic sewage facilities be operated under the supervision of a certified wastewater operator. DEQ determines requirements for certification, prepares and conducts exams and issues certificates. Fees cover all costs of implementing this program.

7. Onsite Sewage Disposal

Raw sewage from households and businesses is treated and disposed by connection to an area-wide sewer system or by installation of an individual onsite (septic) system. Sewage that is not properly treated and disposed is a threat to human health and the environment. Approximately 30% of Oregon households rely on septic systems and the number of new septic system installations is increasing. Siting and installation of septic systems is regulated by DEQ. DEQ directly manages the program in 14 counties, referred to as “direct service” counties. Twenty-two counties manage the program under contract with DEQ, referred to as “contract” counties. The goal of the program is to ensure that systems are sited and installed to protect land, water and public health. Fees cover all the costs of administering the program. Since 2005 the program has:

• Processed approximately 1,200 site evaluations and issued approximately 2000 construction and repair permits in the 14 counties where DEQ provides direct service.

• Provided technical assistance and oversight to the staff of 22 local governments that contract with DEQ to conduct the on-site program within their jurisdictions including site visits and assessments on difficult parcels, report reviews, rule interpretation and guidance, and compliance assistance.

• Completed annual license renewals for approximately 1,100 on-site system installers and sewage system pumpers. Revised and updated the septage management plans for over 300 licensed pumpers.

PROGRAM NARRATIVE

107BF02:WQ_NARRTV ___ Agency Request _ X_ Governor’s Recommended ____ Legislatively Adopted Budget Page ____ 5-17

• Implemented a statewide database that is used by all DEQ-administered programs. The database allows for easier tracking of applications and performance measures and also enables DEQ to issue permits directly from the database. This database is not required for contract counties but has been made available to them.

• Responded to complaints of violations such as failing onsite systems and illegal installations of septic systems. Some of these complaints resulted in formal enforcement and the others were resolved with cooperation from the violator.

• Based on recommendations of the Onsite Program Improvement Advisory Committee DEQ’s onsite rules have undergone comprehensive revisions to more effectively allow new treatment technologies to be used in Oregon, provide third-party certification for onsite system installers and service providers, establish a statewide operation and maintenance program, and switch from an annual to a multi-year licensing process for sewage disposal businesses. These rule changes also support DEQ’s focus on enhancing programs that directly affect small businesses and individuals to provide better customer service and make it easier to do business with DEQ. This is an example of program efficiency improvement that the water quality program has worked on. These rule changes were adopted on December 10, 2004, and were implemented on March 1, 2005.

8. Compliance and Enforcement

It is important for DEQ to make sure permittees comply with permit conditions and illegal activities be stopped. DEQ periodically inspects permitted sources and responds to complaints about spills or dumping into waters of the State. When a permit violation occurs, appropriate enforcement actions are initiated. 9. Wastewater Reuse Water reuse for non-potable purposes allows municipalities and industrial facilities an option for managing treated effluent. State regulations require a water quality permit for this option and allow treated effluent to be used for beneficial purposes, most of which occurs through land application to crops and on golf courses. DEQ works with the Department of Human Services - Health Services Division and Water Resources Department on the permitting of this practice. DEQ staff also work with municipal and industrial facilities to ensure proper operation and management of wastewater treatment facilities that pursue water reuse. Management plans for water reuse are required by a facility’s permit. During the 2003 session, Senate Bill 820 was passed into law directing DEQ to foster and encourage water reuse in urban areas as a means of conserving potable water and of achieving water quality objectives. The Urban Reuse Task Force was established and with DEQ prepared a Report to the Interim Natural Resources Committee of the Legislature on opportunities and barriers associated with water reuse in urban areas. Based on recommendations in that report, DEQ began a rulemaking process to review and amend administrative rules (OAR chapter 340, division 55) that will encourage further water reuse in a manner that continues to protect public health and the environment.

PROGRAM NARRATIVE

107BF02:WQ_NARRTV ___ Agency Request _ X_ Governor’s Recommended ____ Legislatively Adopted Budget Page ____ 5-18

D. FINANCIAL AND TECHNICAL ASSISTANCE 1. Clean Water State Revolving Loan Fund (CWSRF) DEQ administers the Clean Water State Revolving Loan Fund which is capitalized through federal appropriations. The CWSRF program assists local government in solving water quality problems and applying for financial assistance. DEQ issued its first CWSRF loan in 1991, and since that time has loaned over $595 million to 113 Oregon communities. At present, the Fund has a priority list of 63 projects from 49 communities for a total of over $189 million in requested funding. For 2007, DEQ has approximately $47 million available to loan for eligible projects. 2. Nonpoint Source Pollution Control Section 319 of the federal Clean Water Act requires states to have nonpoint source (NPS) management programs based on assessments of the amounts and origins of NPS pollution in the state. Nonpoint source pollution comes from numerous diffuse sources such as runoff from roads, farms and construction sites. This type of pollution is understood to be the largest source of water quality impairment in Oregon, as well as the rest of the United States. Federal grants cover the majority of cost for Oregon’s NPS program, which protects and restores both surface water and groundwater. DEQ provides grant money to local organizations for nonpoint source projects such as public education and watershed restoration. DEQ’s NPS program also includes staff, which performs the following activities:

• Characterization of NPS problems/concerns • Monitoring • Best management practices development/implementation • Coordination between stakeholders • Restoration activities • Public education

E. GROUNDWATER PROGRAM Over ninety percent of Oregon’s available fresh water is stored beneath the earth’s surface as groundwater. This groundwater is an integral part of every watershed, providing base flow for Oregon’s rivers as well as providing domestic, irrigation, and industrial water for Oregonians. Seventy percent of Oregon’s people depend on groundwater for their daily water needs via private, public, and industrial water wells. Groundwater travels very slowly, and once contaminated, can be very difficult or nearly impossible to clean up. As a result contaminated groundwater may persist for tens, hundreds, or even thousands of years and may affect groundwater uses far from the

PROGRAM NARRATIVE

107BF02:WQ_NARRTV ___ Agency Request _ X_ Governor’s Recommended ____ Legislatively Adopted Budget Page ____ 5-19

origin of the contamination. This contamination affects not only the immediate uses of groundwater, such as drinking water supplies, but may also have pronounced effects on surface water quality. Oregon’s Groundwater Quality Protection Act of 1989 along with the federal Safe Drinking Water Act establish the critical elements for enhancing and protecting Oregon’s groundwater resource for its many beneficial uses. These critical elements include:

• Implementation of Groundwater Management Areas where the water quality has been degraded, beneficial uses are seriously impaired, and public health may be at risk in part from nonpoint source groundwater pollution;

• Statewide groundwater assessment; and • Technical assistance to communities and watershed councils engaged in groundwater pollution prevention efforts.

Oregon currently has three Groundwater Management Areas (GWMAs); the Lower Umatilla Basin, Northern Malheur County, and, the Southern Willamette Valley. Since 2005, the Groundwater Program has:

• Declared a Groundwater Management Area in the Southern Willamette Valley to primarily address nitrate contamination to groundwater. Worked with stakeholders to develop an Action Plan to help mitigate contamination and prevent future nitrate pollution issues.

• Continued bimonthly groundwater monitoring and evaluation of groundwater quality trends in the Groundwater Management Areas (GWMAs) in Northern Malheur County and the Lower Umatilla Basin.

• Worked with stakeholders to evaluate the success of the Action Plan for the Lower Umatilla Basin GWMA and determined next steps needed to achieve groundwater improvements in the basin.

• Sampled groundwater in 100 wells in the Upper Southern Willamette Valley areas for pesticides and other contaminants and evaluated data in preparation for determining whether pesticides were a concern and a Groundwater Management Area should be declared.

• Completed analysis of nitrate trends in Lower Umatilla Basin Groundwater Management area. Analysis indicated most wells show increasing concentrations of nitrate.

• In partnership with OSU Extension, screened more then 500 residential well water samples for nitrate. • Conducted sampling survey of approximately 136 wells in Lower Umatilla GWMA. Results indicated widespread groundwater

contamination with perchlorate in addition to the previously identified nitrate contamination.

PROGRAM NARRATIVE

107BF02:WQ_NARRTV ___ Agency Request _ X_ Governor’s Recommended ____ Legislatively Adopted Budget Page ____ 5-20

F. SAFE DRINKING WATER ACT IMPLEMENTATION The 1996 amendments to the federal Safe Drinking Water Act (SDWA) included funding for public drinking water supply system improvements to meet existing and future human health standards. Funding was also included to enable public drinking water supply source areas to be identified and possible contamination sources inventoried in order to reduce the risk of pollution and/or loss of public water systems. DEQ receives federal funds through the Oregon Department of Human Services, Health Services, to conduct the source water assessments and provide technical services associated with protecting the source areas in Oregon. The assessment reports identify potential sources of contamination and provide the basis for communities to develop plans for protection of their drinking water sources. As part of the assessments, DEQ also completed 546 inventories detailing the potential sources of contamination for public water systems using groundwater.

G. WATER QUALITY MONITORING Water quality monitoring and assessment provides the foundation for water quality management. Water quality monitoring programs provide information on the status and trends of water quality in Oregon. Monitoring is conducted to determine if water quality supports beneficial uses and if standards are met. Streams that do not meet water quality standards are placed on the 303d list and will have TMDLs developed for them. In order to develop TMDLs, studies must be conducted to determine the sources and loads of pollutants affecting the water body and how those vary over time and space. DEQ is engaged in several other types of monitoring studies, including the following:

• Studies to determine the relationship between water quality, habitat conditions and biological condition. • Compliance monitoring studies to determine compliance with permit conditions. • Studies to determine threats to human and ecological health from persistent and/or bioaccumulating toxic compounds.

The Laboratory also collects water samples and analyzes the results to support other DEQ programs and respond to inquiries from the public. In addition, the Laboratory certifies drinking water labs in cooperation with the Health Division and works with other agencies to monitor Oregon’s progress under the Oregon Plan for Salmon and Watersheds. Water quality monitoring is necessary to understand how well Oregon is protecting the uses of its water. DEQ monitors water quality by collecting and analyzing water samples, and then performing statistical analysis of the resulting data. The Water Quality Program is responsible for monitoring and assessing Oregon’s 114,000 miles of rivers, 400,000 acres of lakes, 56,000 acres of tidal wetlands, 360 miles of coastal ocean and 206 square miles of estuaries, harbors and bays. DEQ augments its water quality data by using monitoring

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data from a wide variety of sources, including watershed councils and federal agencies. However, all data must first be reviewed to ensure proper quality control protocols were used. In 2005 DEQ completed a new statewide water quality monitoring strategy. The strategy identifies monitoring priorities, both currently funded and unfunded. Since 2000, state and federal budget reductions have resulted in approximately a 25% cut in DEQ’s monitoring program. This has resulted in cutting two-thirds of the Oregon Plan sampling sites, dropping metals analysis from the suite of water chemistry parameters, less intensive data collection for TMDL development, and less staff time available for data analysis and technical assistance. Since 2005, the monitoring program has:

• Collected annually approximately 840 water samples and conducted approximately 16,000 analyses on water samples from the

ambient river network of 144 fixed sites. Analyzed data for trends over 10 years and found 32% of sites had improving water quality trends, 6% declining and the rest with no change. Due to budget reductions, the number of samples collected and the number of analyses ran on each sample was reduced from previous biennia.

• Sampled over 300 stream sites statewide to determine overall aquatic ecological integrity. Sampling included fish, macroinvertebrates, habitat and water quality. Intensive studies were completed for urban streams in the Willamette Valley, and large river segments in the Willamette Basin. Assessment reports were completed for the Oregon Coast range, Lower Columbia River, John Day, and Grande Ronde river basins. DEQ coordinates data collection with ODFW to help assess health of salmonid populations and worked with other Oregon Plan agencies to complete an evaluation of the effectiveness of the Oregon Plan activities for restoring populations of Coastal Coho Salmon.

• Provided training to watershed councils in monitoring techniques for stream assessments. III. IMPORTANT WATER QUALITY BASE BUDGET ISSUES

A. IMPROVEMENTS TO THE WASTEWATER MANAGEMENT PROGRAM DEQ’s wastewater permitting program oversees more than 4,500 facilities in Oregon that discharge wastewater into the environment. Each of these facilities needs a permit under state and federal rules. In the years since the permitting program was created by the Clean Water Act, the scope of responsibilities for the program has expanded greatly. As a result, DEQ’s permitting program had a 45% backlog of individual permits in 2003. DEQ announced a focused effort to reduce the wastewater permitting backlog. To accomplish this, the agency centered efforts on backlog reduction and DEQ convened a “Blue Ribbon Committee” (BRC) to develop recommendations for systemic changes that would improve delivery of the wastewater program. They include the following:

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1. Make specific program improvements to improve functioning of the permitting program; 2. Implement new accountability standards; and, 3. Ensure stable, ongoing funding.

To implement the BRC recommendations, DEQ proposed legislation and a budget request, which were approved by the 2005 Legislature. With the additional resources, DEQ was able to restore 4 full-time equivalent (FTE) positions that were unaffordable and add 1.25 FTE to work on implementation of improvements to the compliance program with an improved data system to track discharges by permit holders. DEQ is proposing a budget request for the 2007-09 biennium that includes an additional 2.5 FTE to deliver up-to-date and consistent permits and conduct more timely enforcement actions. Since July of 2004, the wastewater program has:

• Finalized, after public input, an Internal Management Directive addressing how toxics should be evaluated when issuing an individual NPDES permit.

• Worked with a stakeholder group to finalize an Internal Management Directive on water quality pollution trading. • Finalized, after public input, an Internal Management Directive on evaluating and establishing mixing zones in an individual

NPDES permit. • Developed guidance and began implementing the antidegradation policy, which protects existing water quality from being

degraded by additional permitted sources unless specific circumstances apply (including waters that equal or exceed water quality criteria).

• Reduced the permit backlog for NPDES major sources to 26%, all individual permits to 22%, and all general permits to 17%. • Issued or reissued 155 individual permits, 45 permit modifications, 3558 general permits to ensure discharges were protective of

water quality, and conducted more than 427 inspections of permitted facilities. • Issued 403 notices of noncompliance, 76 warning letters, 14 pre-enforcement notices, 4 notices of permit violations, 13 mutual

agreement and orders, and over $1,573,630 in civil penalties for violations of water quality permits and regulations. • Renewed all general permits pertaining to storm water run off from construction sites, industrial activities, sand and gravel mining

and activities in the Columbia Slough. • Developed a public notice process for storm water general permit applications and management plans. • Annualized and simplified the permit fee table. • Developed and adopted general permits related to mining activities. • Conducted 16 comprehensive audits of existing pretreatment programs, de-listed the City of Coos Bay as an approved program,

and, authorized the City of Troutdale as an approved pretreatment program. • Worked with the municipalities who are required to have a Phase II permit for municipal separated storm sewer system; these

permits are scheduled to be issued in June 2007.

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• Completed the first phase of the Discharge Monitoring System and began reviewing Discharge Monitoring Reports for most individual facilities within 30 days of receipt. This is an example of program efficiency improvement that the water quality program has worked on.

B. UNDERGROUND INJECTION CONTROL PROGRAM Funding levels for the state’s Underground Injection Control Program have been inadequate since the revised Oregon rules came into effect in 2001. In 2001, the UIC Program was comprised of 2.28 FTE that was a mix of federal funds from EPA and general funds. In the 07- 09 biennium, we expect that EPA funding will pay for 0.85 FTE. This level of funding is inadequate to run a statewide program. There are currently 48,889 registered underground injection wells and more than 60,000 unregistered in Oregon. There is a backlog of 60 to 90 days for approving systems that require DEQ’s authorization in order for development to proceed. DEQ has not been able to develop key program implementation policy, including best management practices, operation and maintenance guidance, monitoring guidance, guidance for closing UIC systems, and permit templates. Without these essential program elements, DEQ is unable to provide guidance to the regulated community on the proper monitoring of UIC systems, set clear approval processes for the construction and engineering of UIC systems, or efficiently issue and enforce permits for UIC systems. With the exception of the City of Portland, which provided funding to DEQ for one staff person to issue the city’s UIC permit, DEQ has not been able to issue permits to municipalities that have submitted permit applications or develop general permits for UICs that do not meet requirements for rule authorization. Additionally, DEQ has not been able to conduct any compliance or enforcement activities for UIC’s in Oregon. DEQ is proposing a legislative concept to establish additional statutory authority to charge fees for administering the UIC program. If the statutory authority is granted, DEQ will develop a fee structure to restore 0.15 existing FTE and add 5.5 new FTE that we cannot currently afford. If this package is not approved, DEQ will relinquish primacy of the UIC program to EPA.

C. LABORATORY COSTS Package #172 maintains an adequate state environmental laboratory to monitor and analyze the condition of Oregon’s environment. Data generated by the DEQ Laboratory provide the scientific foundation for agency decision-making. The water quality program relies on the laboratory to provide monitoring and analytical information that is crucial to assess water quality compliance with the federal Clean Water Act, and to determine the effectiveness of State pollution control programs. The 2003 Legislature authorized the Dept. of Administrative Services (DAS) to purchase a building for relocation of both the DEQ and Oregon Health Services Laboratory. Relocation of the Laboratory resulted in cost increases to DEQ's programs. The 2005 Legislature

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allocated General Funds to DEQ for the relocation and the increased cost of rent for the last six months of the biennium. In 2007, the programs will need to pay the increased rent costs for the new facility for all 24 months of the biennium which will exceed the amount allocated during the 2005 session, thus additional funds are needed to fund the increased rent costs. The Water Quality Division’s portion of the Lab rent increase is $503,718. D. WATER QUALITY STANDARDS PROGRAM The workload of the standards and assessment program has increased over the last 10 years and a backlog of standards work has developed. With three staff, this program cannot review standards on the legally mandated 3 year schedule or update assessment of statewide water quality on the mandated 2 year schedule. There is a growing backlog of standards that need to be updated. Adding to the workload of the standards program are Endangered Species Act requirements, increased litigation over standards, increased complexity of criteria and beneficial use designations. DEQ is proposing a policy package (#129) that outlines what is needed for a minimally adequate standards and assessment program. Without additional funding the choices will be to stop this work and rely on EPA to promulgate standards for Oregon in response to third party litigation, or stop doing other work in order to fund standards work. The proposal includes staff for Assessment (303(d)) list work and for base Standards program (beneficial use designations, standards reviews, and Use Attainability Analysis) work. E. 401 WATER QUALITY CERTIFICATION PROGRAM While the number and type of dredge and fill projects has remained similar over time, the work associated with the 401 program has increased. This is due to additional listings under the federal Endangered Species Act, greater complexity of water quality regulations, increased federal regulatory requirements for stormwater runoff, requirements from other DEQ programs (e.g the Total Maximum Daily Load program). In addition to participation in streamlining groups, requests for technical assistance, participation in pre-application meetings, and site visits have also increased. The existing staff level is inadequate to run a statewide 401 program. DEQ has not been able to develop key program implementation policy, including best management practices, monitoring guidance, guidelines for incorporating stormwater or TMDL requirements into projects; nor guidance on how to design projects to ensure water quality standards will be met. In addition, DEQ has not been able to conduct any compliance or enforcement activities or participate in all pre-application meetings or site visits when requested. DEQ is requesting approval in policy package #127 to alter the fee schedule that was approved by the Environmental Quality Commission in 2004. DEQ proposes to change the fee structure to restore 0.3 existing FTE that we cannot currently afford and add 1.00 FTE. Without

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additional funding, the 401 Program will be unable to develop guidance documents, attend many of the requested pre-application meetings and site visits, and provide technical help to applicants. Additionally, DEQ will increase the number of 401 certifications that are waived. F. STORMWATER PROGRAM To date DEQ has not had adequate resources to implement the stormwater permitting program or develop a coordinated strategy or integrated approach for all of DEQ’s programs that deal with stormwater. DEQ has not been able to provide engineering review of each stormwater management plan, review monitoring information, or conduct regular inspections. In addition, federal and state stormwater permitting programs have been the subject of a number of legal challenges. The result has been an increased work load without any increase in resources DEQ is proposing a budget request (#122) for 5 limited duration FTE and 13.5 FTE to fully implement Oregon’s stormwater permit program. This proposal will allow DEQ to develop a strategy to integrate and streamline the programs that deal with stormwater, identify non-regulatory opportunities, and develop potential incentives and other innovative solutions to managing stormwater pollution. Without additional funding, DEQ will not be able to develop an integrated, coordinated approach towards reducing stormwater pollution. Specifically this means that construction activities in many areas will continue to be subject to inefficient dual regulation. DEQ will also not be able to provide engineering review of all management plans, conduct regular inspections or provide adequate assistance to permitted sources. G. GROUNDWATER PROTECTION PROGRAM In the 17 years since the passage of the Groundwater Quality Protection Act, the work associated with the program has increased due to the establishment of the three GWMAs while the funding for the program has decreased. In the early 1990’s, DEQ had 12 staff dedicated to the Groundwater program, and currently has five. This is because of the decrease in both federal and state funds and over the years, increase in costs, and DEQ shifting resources into high priority work, such as the wastewater permitting and Total Maximum Daily Load programs. As a result, the Groundwater program has eroded over the years, and is only minimally adequate with a staff of five. Currently, the groundwater protection activities have been reduced to statewide coordination, minimal technical assistance, and the implementation of groundwater monitoring and restoration activities in the three groundwater management areas. DEQ is no longer able to conduct assessments around Oregon to identify other areas that have groundwater pollution problems. DEQ is proposing to restore 2.5 FTE, in policy package #124, in the groundwater program that we cannot afford during 07-09. These FTE are existing positions that conduct monitoring to determine if best management practices are effective in the groundwater management areas, and provide statewide coordination and technical assistance. Without additional funding, DEQ will have to reduce monitoring in each of the three GWMAs by 50%. This would mean that all communities in each GWMA would not have updated information about the groundwater pollution and the status of impacts to drinking water, irrigation, and monitoring wells in those areas.

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DEQ would also significantly reduce existing work with state and local agencies and communities to evaluate the effectiveness of best management practices, and reduce public outreach and education activities. H. TMDL AND MONITORING POSITIONS Reductions in federal funds result in DEQ not being able to afford two positions during the 07-09 biennium, one in the TMDL program and one in the water quality monitoring program. DEQ is proposing to restore these 2 existing positions in policy package # 128. Without additional funding, DEQ will need to further reduce the pollutants analyzed from water quality samples. This will mean eliminating the analysis for certain pollutants including total nitrogen, total organic carbon and chemical oxygen demand from all routine water monitoring work. Understanding the levels of these pollutants helps us determine the health of Oregon’s lakes, rivers, and streams. Additionally, DEQ will only be able to provide minimal assistance to cities, counties, irrigation districts, agricultural and forestry communities, in developing plans to improve water quality and meet the requirements of the TMDLs in the Rogue Basin. IV. WATER QUALITY 2007-2009 EXPECTED RESULTS In addition to ongoing program efforts, numerous specific accomplishments are already slated for implementation or completion during the 07-09 biennium. Several of these are described below. Additional objectives will be defined as work plan development continues through the remainder of this biennium and into the next. Clean Water State Revolving Fund:

• Through the Clean Water State Revolving Fund program, provide $100 million in loans during the 07-09 biennium to assist communities with improvements to their wastewater treatment systems and to mitigate non point source (runoff) pollution impacting Oregon’s rivers.

Groundwater Program:

• Finalize an action plan to reduce concentrations of contaminants in groundwater for the Southern Willamette Valley Groundwater Management Area and begin implementation of the plan with the numerous GWMA partners.

• Continue groundwater monitoring efforts and evaluation of the effects of best management practices in Northern Malheur County, Lower Umatilla Basin, and Southern Willamette Valley Groundwater Management Areas.

Drinking Water Protection Program:

• Map the locations, delineate the source areas, and inventory contaminant sources of 95 new community water systems added since 1999.

• Complete assessment reports detailing the potential sources of contamination within the delineated drinking water protection

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areas for community water systems using surface water and groundwater. • Provide technical assistance for the development of local community-based drinking water protection plans for 150 public

water systems. • Provide technical assistance to communities and public water systems to help them protect their drinking water by providing

information about potential drinking water contamination and tools to prevent degradation or loss of their system. Standards and Assessment Program:

• Conduct strategic planning for the next triennial standards review. Obtain public input on a standards review project plan in 2008.

• Develop a project plan for reviewing the human health criteria for toxic pollutants, including a review of the fish consumption rates used in establishing the criteria.

• Provide technical support for defense of water quality standards in Northwest Environmental Advocates v. EPA et al (2006). DEQ has intervened in this litigation.

• Submit a description of DEQ’s current process for addressing nutrient control to EPA. • Conduct the next water quality assessment of Oregon water bodies in preparation for completing the 2008 Integrated Water

Quality Assessment Report. Wastewater Permitting Program:

• Ensure that 90% of the WPCF (non-onsite) and NPDES permits are current by the end of calendar year 2007. • Ensure that 95% of the permits are issued on the watershed cycle by 2010. • Inspect 100% of the majors and all minor permits within the targeted basins. • Review monthly DMRs within 30 days of receipt. • Assign general permits within 30 days of receipt of application. For stormwater general permits, the target is to assign the

permit 30 days after the close of the public comment period. • Conduct pre-permit application conferences in preparation for permit renewal planned for watershed basins scheduled two

years in the future. • Respond to noncompliance situations in a timely manner.

Total Maximum Daily Load Program:

• Submit, at minimum, the John Day and Rogue basin TMDLs to EPA for approval. Continue working on TMDLs and implementation plans in the Willamette basin, Umpqua basin, Willow Creek, Tenmile Lake sub-basin, Klamath River, Malheur

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basin, Yamhill basin, and Molalla- Pudding basin. • Complete implementation plans throughout Willamette Basin that guide management practices and pollutant controls to meet

load allocations in TMDLs. • Complete characterization of mercury sources in Willamette Basin and collect data required for final monitoring.

Water Quality Monitoring:

• Continue to input data into the Oregon Water Quality Index (OWQI) as the key indicator for WQ monitoring using data collected from the 140 sites of the ambient monitoring network.

• Prepare periodic reports on water quality trends and indicators, including supporting the 303(d) assessment process. • Collect water quality data to support TMDL development

Nonpoint Source Program:

• Distribute $4 million in 319 grants to fund project proposals to Oregon’s priority basins based on TMDL development and implementation, and Groundwater Management Areas.

• Prepare an annual report of nonpoint source program accomplishments.

V. WATER QUALITY PROGRAM OPTION PACKAGES Summary of Program Option Packages # 120 Enhance Wastewater Program

This package continues the Blue Ribbon Committee (BRC) recommendations to enhance the wastewater program. The BRC recommended a second fee increase (5% revenue) and General Fund increase for the 2007-09 biennium. The revenue increase will support 2.5 FTE including 1 position in the laboratory to assist permit writers with permit-related analyses, such as Whole Effluent Toxicity (WET) tests; 0.5 FTE position to address compliance and enforcement issues and ensure timely response to Discharge Monitoring Report issues; and 1 position to deal in a more focused manner with continuing policy and technical issues such as incorporating water quality based effluent limits into permits. With these resources we expect the following results: reduce the backlog of expired individual wastewater permits to 10% by the end of 2007; continue to issue permits by watershed, resulting in improved emphasis on key water quality problems and more holistic watershed based solutions; ensure quicker permit issuance through a reinvigorated permit program infrastructure including identifying and resolving complex policy and technical issues through internal management directives and other consistent guidance and

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decision making; and, quicker review of compliance data, increased compliance inspections and timely response to noncompliance.

#121 Watershed-based Toxics Monitoring

DEQ is proposing to establish a targeted watershed-based toxic pollutant monitoring and evaluation program. DEQ will coordinate this work with state, federal and local agencies and tribal governments, the regulated community, and other groups and organizations, to leverage existing toxic pollutant monitoring data and information, and avoid duplication of resources. DEQ is also proposing to develop a web-based tool for internal and external use to access information about industrial and municipal discharges throughout Oregon and data from monitoring conducted throughout the state. DEQ proposes to start this work in the Willamette River watershed. This program will allow us to identify where toxic pollutants are coming from, determine where toxic levels present the greatest risk to human health or fish, and determine what pollution reduction strategies may be necessary to reduce toxic pollutants. This package funds 7.26 FTE during the 07-09 biennium and 9.5 FTE thereafter to establish and maintain this program.

#122 Stormwater Control

DEQ is proposing a budget request for 2.5 limited duration FTE and 13.5 permanent FTE to better implement Oregon’s stormwater permit program; develop a strategy to integrate and streamline the programs that deal with stormwater; and identify non-regulatory opportunities. The budget request includes $80,000 to develop an online tool to provide technical assistance to applicants to develop erosion control plans, stormwater management plans and best management practices. DEQ is proposing to fund the limited duration positions with General Funds, and fund the permanent positions 40% on General Funds and 60% on permit fee revenue. The fee increase will occur through rulemaking following legislative approval. Approval of this package will allow Oregon to deliver a minimally adequate stormwater permit program. In addition, by providing resources to focus on permit needs, the funding will allow existing stormwater staff to develop an integrated and streamlined stormwater strategy including evaluating ways to eliminate dual regulation of construction activities, whether permits are the best tool for all situations, and potential incentives and other innovative approaches to addressing stormwater pollution.

#123 Drinking Water Protection This package continues three federally funded limited duration positions and adds three federally funded limited duration positions to assist communities with protecting their public drinking water supplies. This work is done in partnership with the Department of Human Services. Assistance will be achieved through the use of the site-specific information derived from the assessment process, the development of outreach programs and tools, the integration of drinking water protection with other agency programs (such as emergency response and cleanup of hazardous waste sites), and working with county and community officials to integrate drinking water protection strategies into local planning and decisions. DEQ will directly assist 50 public water systems a year, and indirectly assist all 2656 public water systems during the biennium through policy and statewide implementation strategies.

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#124 Restore Groundwater Protection (Note: This package was proposed by the Department, but not included in the Governor’s Recommended Budget)

This package proposes to restore 2.5 FTE in the groundwater program that we cannot afford during 07-09. These FTE are existing positions that conduct monitoring to determine if best management practices are effective in the groundwater management areas, and provide statewide coordination and technical assistance.

#125 Enhance Onsite Septic System Program

DEQ is proposing a budget request to add 3.0 FTE in the 07-09 biennium. Two of these staff will focus on conducting regularly scheduled audits of contract county programs and provide counties with guidance to help them understand and implement the rules, which will greatly improve statewide consistency. The other position will provide support to the program, including filing, copy and database work, which will allow existing staff to focus on the technical work. This work would be funded by increasing the surcharge by $15, from $40 to $55 which will be paid by each customer that submits an application. This surcharge increase would go through rulemaking after the legislative session.

#126 Coastal Beach Bacteria Monitoring

This package would continue one limited duration position at DEQ to coordinate with the Department of Human Services (DHS) and conduct the monitoring and analysis of Oregon’s coastal beaches for bacteria. DEQ works cooperatively with DHS to implement this program, with DHS providing public health functions and DEQ conducting water quality monitoring and analysis of the beaches that are more heavily used and/or have more exceedences of the bacteria standard. DEQ is responsible to: conduct annual review of monitoring network and make modifications as necessary in cooperation with DHS and local stakeholders; collect samples according to the sampling plan; conduct analytical quality assurance program; analyze samples; report data to DHS and EPA; prepare annual summary of monitoring results; and provide technical assistance.

#127 Water Quality 401 Project Certification

This package proposes to raise revenue to restore 0.3 existing FTE that we cannot currently afford and add 1.00 FTE. The current fee structure is expected to raise approximately $125,000 in revenues during the 05-07 biennium and $145,000 in the 07-09 biennium. The proposed fee changes would increase revenues by approximately $228,000. Approval of this request will enable Oregon to deliver a minimally adequate 401 dredge and fill program to: review all proposed projects requested for a 401 certification in a timely manner; participate in pre-application meetings when requested; develop guidance documents; participate in the state streamlining efforts; develop a coordinated strategy to integrate requirements from other DEQ programs when appropriate; and increase compliance and enforcement.

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#128 Restore Water Quality Monitoring and TMDL Positions In recent years, state and federal funding for DEQ’s clean water work has declined, both in real dollars and in what those dollars buy. The funding decline, combined with the growing complexity of federal Clean Water Act requirements and costly third party litigation, has eroded DEQ’s resources for the work that we do, including conducting water quality monitoring and developing and implementing clean water plans (i.e. Total Maximum Daily Loads). Reductions in federal funds result in DEQ not being able to afford two positions during the 07-09 biennium, one in the TMDL program and one in the water quality monitoring program. With the restoration of these positions, DEQ will be able to continue assessing water samples around Oregon for pollutants that provide important information for use in DEQ’s water quality programs. DEQ will also be able to help communities in the Rogue Basin develop, implement, and monitor plans and projects to improve water quality.

#129 Water Quality Standards (Note: This package was proposed by the Department, but not included in the Governor’s Recommended Budget)

The purpose of this proposal is to fund a State water quality standards and assessment program that can complete core work within reasonable time frames and meet minimum federal requirements. DEQ has a backlog of standards and assessment work that has built up over many years of inadequate resources combined with new work and increasing demands on the program. DEQ is requesting 5.5 additional staff to support our standards and assessment work. Four staff would focus on standards work and 1.5 would focus on assessments. In addition, we are requesting funds for legal services to respond to increased standards litigation, and for assistance with the fiscal and economic analyses that would be needed to update standards, review requests for Use Attainability Analyses or Site Specific Criteria, and conduct antidegradation reviews.

#160 Underground Injection Control Program

This package will establish new UIC fees to restore 0.15 existing FTE and add 5.5 new FTE that we cannot currently afford to deliver a minimally adequate UIC program and retain primacy of the program. DEQ has proposed statutory changes (LC 821) to authorize the establishment of new UIC fees. With the additional fee revenue we expect the following results: faster reviews and approvals on UIC applications; expedited plan reviews; develop and issue a general permit(s) for UICs that do not meet the present rule authorization requirements; guidance documents, training classes, and implementation of outreach to assure UICs are registered and approved by DEQ prior to issuing building permits; DEQ will enter the registration and application data into the UIC database, and track UIC registrations, authorizations, permits, facility inspections and enforcement actions; conduct UIC facility inspections and work with owners and operators to determine compliance and help bring existing UICs into compliance; and respond to and resolve complaints and take enforcement actions when necessary.

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#161 TMDL Program Funding Shift (Note: This package was proposed by the Department, but not included in the Governor’s Recommended Budget)

This package is proposed for the purpose of meeting the Governor’s goal of shifting the funding for DEQ’s Total Maximum Daily Load (TMDL) program from Measure 66 operations Lottery Funds to General Fund, provided there is sufficient General Fund to accommodate this request. If not, funding should remain on Measure 66 operations Lottery Funds.

#172 Water Quality Lab Rent Increase

This package combined with packages #171 and #173 for Air Quality and Land Quality respectively, requests $864,993 in General Fund to cover a portion of program cost increases that will occur following relocation of DEQ’s Laboratory. Specifically, the General Fund request will cover the cost increases residing on Other and Federal Fund sources not accompanied by additional revenue increases on those sources and replaces budgeted Lottery Funds with General Funds.