Panel backs temporary use of point-source nutrient credits for industrial stormwater

Virginia House Subcommittee (Environmental/Coastal) · February 9, 2026

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Summary

A substitute to HB 952 would allow industrial stormwater permittees to use point-source nutrient credits for two years while DEQ convenes a work group to evaluate practices; the subcommittee reported the Title 1 substitute after wide stakeholder input supporting a temporary compromise to reduce compliance costs.

The subcommittee adopted a compromise substitute for HB 9 52 that allows selected industrial stormwater permittees to use point-source nutrient credits for up to two years while DEQ leads an informal work group to evaluate the practice and make recommendations for future years.

Delegate Lopez presented the substitute as a negotiated solution between industry and environmental groups designed to prevent costly and impractical on‑site retrofits at some wastewater and industrial facilities. "After a great deal of work with industry and environmental communities, the substitute creates a section 1 bill that allows use of point source credits for 2 years while an informal work group led by DEQ evaluates the practice," the delegate said.

Supporters including municipal wastewater agencies, Chesapeake Bay stakeholders and agribusiness praised the compromise as pragmatic; opponents were not strongly represented in committee. The substitute also requires DEQ to prioritize enforcement for noncompliant industrial stormwater permittees and convene a stakeholder group to make implementation recommendations.

The subcommittee reported the substitute (recorded vote reported as 9-0). DEQ and stakeholder groups will participate in the follow-up work group to refine trading rules and equity questions.