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Paying In-Lieu Fee

You can pay In-Lieu Fee (ILF) to DOEE to satisfy your Off-Site Retention Volume (Offv). However, DOEE recommends that projects use Stormwater Retention Credits (SRCs) instead of paying ILF.

One SRC achieves one gallon of Offv compliance for one year. An ILF payment of $4.57 also achieves one gallon of Offv for one year (based on the ILF rate effective August 1, 2023) but costs significantly more than the 2022 average SRC price of $1.45. The ILF is effectively the price ceiling in the SRC market, meaning that SRC should always be cheaper than the ILF price.

If you choose to pay ILF, you must submit your payment 4 weeks prior to the project’s Final Construction Inspection. To reduce cost, you can switch to using SRCs in later years. You can also satisfy the Offv obligation for multiple years at a time by paying sufficient ILF or by using SRCs. For example, a project with a 5,000 gallon Offv could pay ILF for 3 years up front or purchase and use 15,000 SRCs to satisfy the Offv obligation for 3 years.

If you choose to pay ILF, you must submit a Notification of ILF Payment to DOEE through the Surface and Groundwater System. Send a check with ILF payment to:

Regulatory Review Division/Offv
Department of Energy and Environment
1200 First Street NE, 5th Floor
Washington, DC 20002

DOEE uses ILF payments to install and maintain GI. The ILF price, which is DOEE’s cost to provide one gallon of retention for one year, is adjusted annually for inflation.

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