As part of the Commonwealth’s enduring commitment to restoring the Chesapeake Bay, DEQ has announced the innovative $20 million Pay-For-Outcomes Nonpoint Source Pollution Reduction grant program. This one-year pilot program will provide payments based on the number of pounds of pollution actually removed or prevented. DEQ intends that the Pay-For-Outcomes program will help identify cost-effective means of reducing nonpoint source pollution and encourage innovation. In doing so, Virginia will continue its commitment to improving the environmental quality of the Chesapeake Bay.

Any business, nonprofit, government entity, or individual may apply for grants ranging from $100,000 to $7.5 million to reduce the amount of nitrogen and phosphorus pollution entering Virginia’s Chesapeake Bay watershed. The proposals may rely on Best Management Practices already commonly used in Virginia or may offer novel technologies based on sound science. The applicants will offer a price per pound of pollution reduced, and payments will be based on actual reductions. A panel of scientific experts will review the proposals and rank each primarily on cost per pound of pollution reduction but with consideration to habitat and resilience benefits, readiness to proceed, and other factors.

Pay-For-Outcomes Pre-Application Conference webinar
The password for the webinar is Webinar1
Jan. 6, 2025

Pre-application webinar
Oct. 1, 2024

Pilot Program Awardees are Announced!

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.

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.

You can view the scoring guide DEQ used to make award decisions here. 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.

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