DEQ Awards $19 Million in Grants to Reduce Water Pollution in the Chesapeake Bay

Nine innovative projects will reduce nearly 580,000 pounds of nitrogen pollution; Conservation Innovation Fund receives $2.66 million award

RICHMOND, Va. — The Virginia Department of Environmental Quality (DEQ) has announced $19 million in awards for nine innovative projects as part of the Pay-For-Outcomes Nonpoint Source Pollution Reduction grant program. Nonpoint pollution sources do not usually come from one place like a pipe but instead run off from larger areas and are the largest manageable sources of pollution entering the Chesapeake Bay. This pilot program provides payments based on the amount of pollution directly removed or prevented from entering the Bay.

"Under Governor Youngkin’s leadership, Virginia continues to accelerate progress towards meeting our Chesapeake Bay goals by implementing innovative and cost-effective solutions in a transparent manner" said Secretary of Natural and Historic Resources Stefanie Taillon. “This Pay-for-Outcomes pilot program allows the Commonwealth to explore new strategies for nutrient reduction while maintaining a commitment to voluntary incentive-based approaches."

"The Pay-For-Outcomes program is a great example of what can be accomplished when a diverse range of stakeholders work together to restore one of our nation’s great treasures – the Chesapeake Bay," said Delegate David Bulova. "This program will not only achieve pollutant reductions in a cost-effective manner but is designed to spark innovation and ensure that pollutant reductions are sustainable. While I was proud to sponsor the budget amendment establishing the program, this was truly a team effort. Special thanks to the Chesapeake Bay Commission, Chesapeake Bay Foundation, Virginia Farm Bureau, and Virginia Municipal Stormwater Association for getting the ball rolling and to DEQ for designing a program that makes Virginia a leader in this area."

"This innovative Pay-For-Outcomes program empowers Virginia's restoration experts to lead the charge in Bay restoration," said Joe Wood, Virginia Senior Scientist at the Chesapeake Bay Foundation. "By rewarding tangible outcomes associated with pollution reductions, we're unlocking the ingenuity of partners to develop and implement the most effective solutions for a healthier Chesapeake Bay. Linking payments directly to environmental outcomes ensures that our investments yield the greatest possible benefit for water quality, offering a clear pathway to cleaner streams, rivers, and Chesapeake Bay.”

This program will remove approximately 580,000 pounds of nitrogen from the Chesapeake Bay at an average cost of $32.73 per pound. This is the equivalent of one-year’s run-off from over 52,000 acres of parking lots, roads and rooftops. Awardees were selected using a rigorous scoring method to calculate expected impacts to pollution. Thirty applications were scored based on the confidence of the project’s success, environmental benefits, readiness to proceed, and local government involvement.

“These projects push the envelope of what’s possible for the Bay, and at the lowest possible cost for nonpoint source projects,” said DEQ Director Michael Rolband.

The award recipients, in alphabetical order, are:

The Conservation Innovation Fund (Augusta and Rockingham counties; $2.66 million) will convert 706 acres of corn and soybean fields into a sterile form of giant miscanthus. This tall, perennial grass requires no nitrogen fertilizer and, in fact, fixes nitrogen in the soil. As a result, the project will stop approximately 172,200 pounds of nitrogen from reaching the Bay over 10 years.

The Hampton Roads Sanitation District (Gloucester County; $1.18 million) will disconnect private septic systems and connect those homes to the public sewer system. As a result, the project will stop approximately 71,200 pounds of nitrogen from reaching the Bay. This project will offer incentives to homeowners who volunteer to participate.

Keystone Streams (Albemarle, Augusta, Rappahannock, and Richmond counties; $588,500) will restore 44 acres of native forest to current agricultural lands by removing invasive species and planting native trees. The project will stop approximately 29,200 pounds of nitrogen from reaching the Bay.

LIXIL Americas (Gloucester and Mathews counties; $499,800) will integrate proprietary Urine Diverting Flush Toilets to enhance nitrogen removal within onsite sewage systems. The project will stop approximately 10,700 pounds of nitrogen from reaching the Bay.

MOVA Technologies (Shenandoah Valley; $1.3 million) will filter and collect ammonia gas, a source of nitrogen that falls on lands and waters near poultry houses, preventing its release into the environment. This project will stop an amount of ammonia equivalent to approximately 47,100 pounds of nitrogen from reaching the Bay.

Oyster Company of Virginia (Severn River; $6.8 million) will restore approximately 57 acres of oyster reef near the mouth of the Severn River. The reefs will be constructed using alternative substrate and will cultivate around 200 oysters per square meter. The surrounding area of 59 acres will also be protected, serving as a buffer zone of “oyster support.” Over the five-year project duration, the project will stop approximately 74,200 pounds of nitrogen from reaching the Bay.

Resource Environment Solutions, LLC. – First award (Accomack County; $500,000) will directly sell existing nutrient credits from the Qualen Woods Nutrient Bank to DEQ. A nutrient credit bank is an entity that generates and sells these credits by implementing practices that reduce nutrient runoff. Credits are sold to offset the impacts of development on water quality. The nutrient bank was established in 2017 by converting 28 acres of cropland to forest. By removing these credits from the market, approximately 16,000 pounds of nitrogen will be prevented from reaching the Bay.

Resource Environment Solutions, LLC. – Second award (Northumberland County; $1.25 million) will permanently convert 85 acres of active agricultural land into forest by planting native grasses and hardwood trees. The project will stop approximately 43,800 pounds of nitrogen from reaching the Bay.

Virginia Dairyman's Association (Amelia, Augusta, Fauquier, and Rockingham counties; $4.2 million) will prevent the release of approximately 115,600 pounds of nitrogen from at least seven farms. This will be achieved by adopting nitrogen reduction practices tailored to specific farms. These practices may include changes to feed management, manure handling, and fertilizer application.

View more information about the Pay-for-Outcomes grant program on DEQ’s website.

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About DEQ

The Department of Environmental Quality protects and enhances Virginia's environment and promotes the health and well being of the citizens of the Commonwealth. We are committed to cleaner water, improved air quality, and the productive re-use of contaminated land.

For more information, please visit www.DEQ.Virginia.gov.