| Action | Amend the regulations to change the statewide permit fee schedule in accordance with Chapter 2 of the 2024 Special Session I Acts of Assembly |
| Stage | Proposed |
| Comment Period | Ended on 10/10/2025 |
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5 comments
The City of Virginia Beach has failed to enforce VESM locality ordinances subject to state laws concerning land disturbances over 2500 ft and has given itself unlawful exceptions related to a 13 acre wetlands project that is using a natural park on the Lynnhven for a mitigation bank. THe activities there have violated state laws under VESM.
9VAC25-20-50. B.1 Exemptions below – to whom does this apply?
Section B. 1
B. No permit maintenance fees will be assessed to:
1. VPDES and VPA facilities operating under a general permit.
Article 1
Definitions
9VAC25-875-850. Definitions.
"Facility or activity" means any VPDES point source or treatment works treating domestic sewage or any other facility or activity, including land or appurtenances thereto, that is subject to regulation under the VPDES program.
Facilities designated as MS4 Operators are required to obtain an MS4 General Permit. The MS4 General Permit is derived from the EPA NPDES and also State VPDES Program. MS4s are VPDES Point Source facilities meeting the definition of "Facility and activity" in 9VAC25-875-850 above. These VPDES MS4 General Permits are issued pursuant to 9VAC25-890-40 not 9VAC25-875. 9VAC25-875 is only applicable to those localities electing to be a VESCP or VESMP, otherwise it is not entirely applicable.
State Water Control Law authorizes DEQ to implement a variety of laws and regulations pertaining to water quality and water supply to improve and protect Virginia's streams, rivers, bays, wetlands and ground water for aquatic life, human health and other beneficial water use.
The U.S. Environmental Protection Agency (EPA) under the federal Clean Water Act enables states to implement certain EPA responsibilities. EPA has authorized Virginia to issue National Pollutant Discharge Elimination System permits under the Virginia Pollutant Discharge Elimination System Permit (VPDES) Program. These permits carry the weight of federal and state laws and regulations, and are enforceable under state and federal authority.
The State Water Control Board promulgates Virginia's water regulations, including permits, permit fees, ground water management areas, ground water withdrawals and petroleum storage tanks. A report on specific regulations can be obtained from the following link to the Legislative Information System database, for each of the pertinent chapters listed in the Virginia Administrative Code. Summaries to federal requirements can be found at EPA water regulations.
The proposed fee increases are out of step with the Construction General Permit and MS4 permit issuance. The Department should propose and then implement fee increases at the time of permit issuance.
The proposed increases, if implemented, will require municipalities to update ordinances that were just revised as part of the ESC and SWM consolidation effort less than 18 months ago. Additional ordinance revisions to incorporate the newly proposed fee schedule mid-permit cycle will be a hardship to local municipal staff.
The fee increases should not be evaluated at the current time and should be implemented as part of the next permit issuance.
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.
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.
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.
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.
The Virginia Association for Commercial Real Estate (VACRE) and the Home Builders Association of Virginia (HBAV) submit the following comment regarding the Department of Environmental Quality’s (DEQ) proposed permit fee increases. Both organizations recognize and support the General Assembly’s directive to the Department to improve cost recovery through permit fees and reduce reliance on general fund appropriations. Ensuring adequate funding for timely, thorough permit reviews is critical to maintaining program quality, protecting natural resources, and providing predictable timelines for the regulated community.
The Department’s permitting programs have faced longstanding resource constraints that have affected review timelines and staff capacity. Over the past several years, the Department has made notable progress in improving permitting efficiency through process enhancements and other initiatives. The revised fee structures will further build on this progress by sustaining adequate staffing, expanding technical expertise, and supporting continued improvements that advance both environmental protection and regulatory performance. Revised fee structures will allow the agency to maintain appropriate staffing, enhance technical expertise, and implement process improvements that strengthen environmental protection and regulatory efficiency. Adequate resources are essential for the Department to fulfill its responsibility to protect Virginia’s natural resources while providing timely, reliable services that critical support economic development projects
We do, however, share the concerns expressed by the Hampton Roads Sanitation District (HRSD) regarding automatic annual fee adjustments tied to the Consumer Price Index(CPI). Codifying automatic CPI-based adjustments could limit future agency and stakeholder review and may increase fees at a pace that exceeds actual program needs. The VACRE and HBAV respectfully request the Department consider alternatives or provide for periodic reassessments of whether the fee structure continues to meet program needs and whether the CPI adjustment produces appropriate results.
Our members would hope this significant increase could support the program for a reasonable period of time at which time the facts and dollars generated can be considered and reevaluated.
Sincerely,
Philip Abraham
Legislative Counsel, Virginia Assoication for Commercial Real Estate
Director and General Counsel, Vectre Corporation
Andrew Clark
Vice President of Government Affairs
Home Builders Association of Virginia