Ohio River Basin Water Quality Trading Project. ACES 2012 December 12, 2012
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1 Ohio River Basin Water Quality Trading Project ACES 2012 December 12, 2012
2 The Trading Plan is Signed! August 9 th, 2012 in Cincinnati Ohio June 22: A nutrient pollution article in The Economist mentions EPRI's Water Quality Trading Program. 2
3 WQT in Context Clean Water Act Water Quality Standards Monitoring Assessment (d) TMDLs NPDES Permits CAFOs Wastewater WQT Stormwater COE wetland banking Section 319 & 208 USDA Farm Bill NRCS FSA Fish & Wildlife Forest Service EQIP CIG WRP CRP CREP Swamp Buster Technical assistance Non-governmental State and County rules: Landuse Districts Cost share Septic systems Erosion ordinances Drainage authorities NGOs Implementation Land retirement Education Challenges 3
4 Nutrient Criteria are Coming Currently, point sources are in compliance with NPDES permit limits for TN and TP. Anticipate more stringent nutrient criteria for P and N. Want to test trading program ahead of regulatory need. The EPA and many states concerned over nutrient impaired water bodies such as the Gulf of Mexico 4
5 ORB WQT Stakeholder Engagement Organizations: Electric Power Research Institute American Farmland Trust Ohio Farm Bureau Federation ORSANCO Tennessee Valley Authority American Electric Power Hoosier Energy Duke Energy Hunton & Williams Kieser & Associates UC Santa Barbara Markit Environmental Agencies: USEPA USDA Steering Committees: WWTP Agriculture Power Plants Environmental Groups States: Ohio Indiana Kentucky 5
6 ORB WQT Project Objectives & Approach Overall Objective: Demonstrate how WQT can be used for cost-effective permit compliance and provide ecological co-benefits. Approach: Test case: Reduce overall loading of nutrients within the Ohio River Basin using water quality trading. Pilot Study Objectives Collaboration Strong Science Defensible Rules Address Key WQT Issues Ancillary Benefits (ex., Ecosystem Services, Social) Driver: Coal-fired power plants release nutrients and are facing more stringent nutrient NPDES permit limits. 6
7 Pilot Trades ( ) 30 farmer contracts 45,000-60,000 lbs N/yr 15,000-20,000 lb P/yr Focus on KY, IN, OH 7
8 Details of Pilot Program Location of Pilot Trades Overall Credit Process Watershed Model Agricultural Baselines Reserve/Insurance Pool Incentives for Early Buyers Adaptive Management Pilot Program Plan can be downloaded at: 8
9 Watershed Model 9
10 Credit Trading Registry 10
11 Credit Stacking EPRI-MSU N2O Offsets Protocol -- "Quantifying N2O Emissions Reductions in US Agricultural Crops through N Fertilizer Rate Reduction Focus on stacking water quality and GHG credits associated with reduced fertilizer use on farms. Jessica Fox, Royal Gardner, Todd Maki. Feb Environmental Law Reporter. 11
12 Project Schedule Signed Trading Plan August 9, 2012 BMPs: Begin in Spring 2013 Transition to Long-term program Lesson Learned Pilot Trades Program Framework Steering Committees Agency funding Collaboration Formed Project Identification Oct
13 Contacts & Questions Jessica Fox
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