Ohio River Basin Water Quality Trading Project. Jessica Fox Program Manager, EPRI

Transcription

1 Ohio River Basin Water Quality Trading Project Jessica Fox Program Manager, EPRI

2 What is WQT Trading? 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

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5 Project Due Diligence Phase I: Due Diligence (EPRI Funded) 2007 Scoping of Project Concept 2008 Feasibility Study and Business Case for Power Company Participation Overall Funding $1M EPA $2.3M USDA $4M Private Funding Phase II: Implementation 2009 Received $2M in Funding (EPA, USDA, private) Outreach, planning, interstate collaborations 2012 Signed Trading Plan 2013 Execute pilot trades 5

6 ORB WQT Stakeholder Engagement Collaborators: Electric Power Research Institute American Farmland Trust Ohio Farm Bureau Federation ORSANCO Tennessee Valley Authority American Electric Power Hoosier Energy Duke Energy Exelon Hunton & Williams Kieser & Associates UC Santa Barbara Agencies: USEPA USDA States: Ohio Indiana Kentucky Steering Committees: WWTP Agriculture Power Plants Environmental Groups 6

7 Steering Committees - Agriculture IN: John Hardin, National Pork Producers; Don Villwock, INFB; Tara Henry, ISDA; Jane Hardisty, State Conservationist; Darrell Nicholson, NRCS (filling in) OH: Norm Fausey, USDA ARS; Chad Amos, OH DNR; Mark Wilson, CCA; Larry Antosch, OFBF KY: Kim Richardson, KY DOC; Joe Cain, KYFB; Laura Knoth, KY Corn Growers; David Rowlett and Jeff Rice, KACD; Kevin Jeffries, KY NACD; Karen Woodrich, State Conservationist; Tony Nott, Asst. State Conservationist WV: Carolyn Hefner, WV Conservation Agency IL: Ivan Dozier, Illinois State Conservationist 7

8 Steering Committees WWTP National Association of Clean Water Agencies (NACWA) host EPRI via their WQT working group Power Companies Duke, AEP, TVA, Hoosier, Exelon Environmental Groups: The Nature Conservancy OH Sierra Club OH & IN OH Environmental Council Environmental Law and Policy Center MN Center for Env t Advocacy KY Waterways Alliance Kentucky Resources Council Environmental Defense Fund 8

9 OH, IN, and KY Sign Trading Plan! August 9 th, 2012 in Cincinnati Ohio June 22: A nutrient pollution article in The Economist mentions EPRI's Water Quality Trading Program. 9

10 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: http//wqt.epri.com 10

11 Opportunities for Conservation BMP Examples: Cattle Exclusion Fencing, Nutrient Management, Cover Crops, Buffer Strips, Grass Waterways, Heavy Use Pads, Manure Pits Enhance Ecosystem Services: carbon sequestration, native plants, habitat, etc. 11

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13 Baselines 13

14 Crediting Equation: Attenuation Factors Credit = (F field x F river x F instream x F equivalence x F safety ) Load Reduction Margin of Safety Edge of Field Edge of River In-stream Assimilation Credit Equivalence 14

15 Watershed Model 15

16 Attenuation Factors TRADE RATIO: 1.64 to 1 16

17 Credit Trading Registry 17

18 Pilot Trade Locations Pilot Trades ( ) farmer contracts 66,000 lbs N/yr 30,000 lb P/yr Focus on KY, IN, OH Upper Ohio Middle Ohio 18

19 Project Schedule Signed Trading Plan August 2012 RFP for BMPs March July 2013 BMPs: Begin in Spring 2013 Transition to Long-term program Pilot Trades Trading Plan Signed State Engagement Steering Committees Agency funding Collaboration Formed Project Identification Oct

20 Contacts & Questions Jessica Fox