October 10, 2025

April Rhodes

1111 East Main Street, Suite 1400

P.O. Box 1105

Richmond, VA 23218

april.rhodes@deq.virginia.gov

RE:      Virginia Erosion and Stormwater Management Regulation – Amend the Regulations to Change the Statewide Permit Fee Schedule in Accordance with Chapter 2 of the 2024 Special Session I Acts of Assembly        

Dear Ms. Rhodes:

The Hampton Roads Planning District Commission (HRPDC) appreciates the opportunity to provide comments on the proposed changes to the statewide permit fee schedule for the municipal separate storm sewer system (MS4) permits and construction general permits (CGP).   The Department of Environmental Quality (DEQ) has proposed two major amendments to the existing fee schedule: 1) an initial fee increase designed to collect between 60 and 62 percent of their estimated FY2024 costs to administer the MS4 and CGP programs and 2) a fee calculation to adjust the MS4 and CGP fees annually based on the Consumer Price Index (CPI).   

While increasing the statewide permit fee schedule by approximately 60 percent across-the-board in a single year is a significant lift, HRPDC recognizes that the fees have remained static for 15 years and increases were anticipated. 

However, HRPDC has the following concerns with the proposed fee calculation in 9VAC25-875-1375:   1) adjusting the fee schedule annually is unnecessary and burdensome and 2) fee increases should not be based on the CPI.  HRPDC respectfully requests DEQ’s consideration of the following comments and the recommended alternative for future fee adjustments.     

1. Annual Adjustments to the Fee Schedule are Too Frequent  

Adjusting the statewide permit fee schedule on an annual basis is too frequent and burdensome for localities.  First, many localities have the fee schedule embedded in their local ordinances, and it is not an efficient use of resources to initiate ordinance updates each year, when each round can take several months to complete.  Second, local Authorities would have an added responsibility of communicating the frequent changes in CGP fees to the development community and ensuring the most current fee schedule is used.   We understand that DEQ does not want to go another 15 years without adjusting the statewide permit fee schedule; however, an annual adjustment creates a continuous cycle of changes.  HRPDC encourages DEQ to adopt the recommended frequency of once every five years to coincide with the CGP reissuance. 

2. Fee Adjustments Should Not Be Based on the CPI

It is inappropriate to recalculate the statewide permit fee schedule based on the CPI.  The CPI is too variable from year-to-year, which creates uncertainty in budgeting processes for MS4 permit fees and for local projects covered under CGPs. Localities need to know what their MS4 permit maintenance fees will be a year in advance to avoid budget amendments.

Additionally, the proposed text does not indicate whether DEQ would publish a new permit fee schedule each year. There are concerns that rather than establish a statewide permit fee schedule, each locality could end up with slightly different results using the CPI calculation.  

3. Recommendation: Evaluate the Fee Schedule During CGP Reissuance Regulatory Process

To address the concerns above and for DEQ to meet the directive from the General Assembly, HRPDC recommends a simplified approach.  The regulations should be revised to include an approximate 60 percent across-the-board increase to the statewide permit fee schedule as proposed.  Then, the statewide permit fee schedule should remain consistent for calendar years 2026, 2027, and 2028, which will allow localities and the development community to avoid continuous changes in fees, while still providing significant additional revenue for DEQ. 

During the 2029 CGP reissuance regulatory process, DEQ should evaluate whether the initial increase in fees covered between 60 to 62 percent of their administrative costs for the MS4 and CGP programs.  If the evaluation indicates that it does not meet those criteria, changes to the statewide permit fee schedule should be proposed through regulatory action at that time.   DEQ should then reevaluate the fee schedule and their administrative costs every five years in conjunction with subsequent CGP reissuance cycles.  This approach avoids unpredictable yearly increases and still provides for a significant increase in revenue for DEQ to administer the stormwater programs.    

HRPDC appreciates your consideration of these comments and those submitted by VAMSA, of which many of our localities are members.