Ecosystem Service Tradeoffs in the Implementation of the Bay TMDL

Similar documents
Setting the Context: Ecosystem Service Analysis

Optimization Applied to Strategies for Achieving the Chesapeake Bay TMDL

Tradeoffs among Ecosystem Services, Performance Certainty, and Costefficiency in Implementation of the Chesapeake Bay Total Maximum Daily Load

for the Chesapeake Bay

Cost Efficiency and Other

Evaluating the ecosystem service benefits & social efficiency of Chesapeake Bay restoration

Statewide Results (Final Target)

Center for Nutrient Solutions (CNS) Nutrient Solution Scenarios Concept Paper September 5, 2014 Draft

Nutrient Trading as an Incentive to Achieve Agricultural Baseline Compliance for the Chesapeake Bay TMDL

Sustaining Our Water Resources Public Health. April 27, 2011

Maryland Phase II WIP Strategies. MONTGOMERY Agriculture - Annual Practices

How Nutrient Trading Can Help Restore the Chesapeake Bay

Use of Market and Voluntary Approaches for Reducing Nonpoint Source Pollution in the Chesapeake Bay Watershed

Chesapeake Bay Updates. Agricultural Advisory Board June 18, 2014 Andy Zemba Interstate Waters Office

PROTECTING OUR WATERWAYS: STORMWATER POLLUTION REDUCTION EFFORTS

Bringing Economic Principles to the Practical Measurement of Ecosystem Services Future Midwestern Landscape Case Study

Fact Sheet Commonwealth of Pennsylvania Department of Environmental Protection

Chesapeake Bay Maryland Phase I WIP Strategy Key Concepts: Septics and Stormwater June 13 th, 2011

The Relationship of Agriculture, Water and the Environment

Phase III Watershed Implementation Plans

Fact Sheet. Chesapeake Bay Water Quality

Chesapeake Bay s Problems

Modeling the Urban Stormwater (and the rest of the watershed) Katherine Antos, Coordinator Water Quality Team U.S. EPA Chesapeake Bay Program Office

June 15, 2010 Public Meeting. Byron Petrauskas Blue Ridge Environmental Solutions, Inc.

Chesapeake Bay Program in Pennsylvania. Karl G. Brown Executive Secretary PA State Conservation Commission

May 4, 2010 Public Meeting. Byron Petrauskas Blue Ridge Environmental Solutions, Inc.

BMP Verification: What is it and How Will it Impact Pennsylvania?

Lake Creek Watershed Management Plan Public Meeting. Arrowhead Lake May 3, :00 PM

Fact Sheet. Pennsylvania s Chesapeake Bay Tributary Strategy Goals for Nutrient and Sediment Reduction and Habitat Restoration

Funding, Progress, and Other Issues Regarding Agricultural Nonpoint Source Pollution

Land Conservation & Chesapeake Restoration

Anthony Moore Assistant Secretary for Chesapeake Bay Restoration

WORKING PAPER How Baywide Nutrient Trading Could Benefit Pennsylvania Farms

Virginia s Chesapeake Bay Strategy

Clean Water Optimization Tool Case Study: Kent County

CHESAPEAKE BAY TMDL PHASE III WIP NORTHERN VIRGINIA OPENING STAKEHOLDER MEETING AUGUST 17, 2018 NORMAND GOULET NVRC

WORKING PAPER How Baywide Nutrient Trading Could Benefit Virginia Farms

Pennsylvania s Phase III Watershed Implementation Plan

Climate Change Impacts of Most Concern for CB Agreement Goal & Outcome Attainment

Chesapeake Bay Program Watershed Modeling. Gary Shenk, Lewis Linker, Rich Batiuk Presentation to STAC 3/22/2011

How Nutrient Trading Can Help Restore the Chesapeake Bay

Proposed Approach to Developing Maryland s Phase III WIP

Building a Phase III WIP for Wastewater, Stormwater & Septic Systems

Lag-Times in the Watershed and their Influence on Chesapeake Bay Restoration. STAC Workshop October 16-17, 2012 Annapolis, MD

Chesapeake Bay TMDL and Maryland s Watershed Implementation Plan. Robert M. Summers, Ph.D. Acting Secretary Maryland Department of the Environment

MAST Training Webinar for Federal Partners

A Guide for Forestry Practices in the Chesapeake TMDL Phase III WIPs

New Hampshire s Impaired Waterbodies and BMP s for Treating Nitrogen and Phosphorus

Reducing Nitrogen, Phosphorus and Sediment Pollution Progress Update. Jeff Corbin, Senior Advisor to the EPA Administrator

MARYLAND TRADING and OFFSET POLICY and GUIDANCE MANUAL CHESAPEAKE BAY WATERSHED

FieldDoc.io User Guide For 2016 NFWF Chesapeake Bay Stewardship Fund Applicants

Stream and Watershed Restoration Design and Quantitative Benefits. Kelly Gutshall, RLA and Mike LaSala

Council of Governments

Hickory Creek 319 grant project City of Denton

CHESAPEAKE BAY COMPREHENSIVE WATER RESOURCES AND RESTORATION PLAN. Habitat GIT Meeting 9 May 2017

FieldDoc.org User Guide For 2017 NFWF Chesapeake Bay Stewardship Fund Applicants. Background 2. Step 1: Register for a FieldDoc account 3

Countywide Action Plans

NWQI and Beyond: NRCS s Focused Watershed Approach

New Development Stormwater Nutrient Control Requirements in North Carolina

U.S. Environmental Protection Agency s Interim Expectations for the Phase III Watershed Implementation Plans

FieldDoc.org User Guide - for 2018 NFWF Chesapeake Bay Stewardship Fund Applicants -

Water Resources Functional Master Plan

FREQUENTLY ASKED QUESTIONS: URBAN STREAM RESTORATION BMP. David Wood Chesapeake Stormwater Network. Lisa Fraley-McNeal Center for Watershed Protection

Protecting & Restoring Local Waters and the Chesapeake Bay

Water Quality Trading and Offsets in the Chesapeake Bay Watershed. Beth McGee Chesapeake Bay Foundation

Chesapeake Bay Program Indicator Analysis and Methods Document Reducing Pollution Indicators Updated May 2018

Meeting the Chesapeake Bay TMDL

Restoring the Chesapeake Bay Challenges & Opportunities

Ecosystem Services BUCK KLINE AND VIJAY A SATYAL

Riparian Buffer Nutrient Credit Yield. Subcommittee Meeting May 4, 2009

SOMERSET COUNTY WATERSHED IMPLEMENTATION PLAN PHASE II

E3 Model Scenario Purpose and Definitions

Current Progress and Next Steps in Implementing Maryland s Blueprint for Bay Restoration

CONSERVATION RESERVE ENHANCEMENT PROGRAM

Ecosystem Services in the Greater Houston Region. A case study analysis and recommendations for policy initiatives

Pennsylvania s Phase III Watershed Implementation Plan. Kick-Off & Listening Session June 5, 2017

Eutrophication: Tracing Nutrient Pollution Back to Penns Creek

Background What is the Integrated Report (IR)? CWA Background

WORKING PAPER How Baywide Nutrient Trading Could Benefit Maryland Farms

Countywide Action Plans

Clean Water Optimization Tool Case Study: Queen Anne s County

CBP Implementation Plan

Maryland WIP Webinar May 23, 2012

Riparian Buffers and Stream Restoration

Riparian Forest Buffer Panel (Bay Area Incentive Programs)

URBAN STREAM RESTORATION BMP

Chesapeake Bay Foundation 101. Robert Jennings

Dustin Miller. Water Quality Trading in Iowa: Forming Partnerships for Success. September 15, 2016 Des Moines Annual Conference

Getting Demand Right for Valuing Urban Ecosystem Services in the Pacific Northwest

Isle of Wight County Chesapeake Bay TMDL Action Plan. May 2015

Chesapeake Bay TMDL Phase III Watershed Implementation Plan (WIP) Russ Baxter Deputy Secretary of Natural Resources

Water Quality Ecosystem Services in the Urban Environment

Application of SLAMM to Estimate N removal services in tidal wetlands

Chesapeake Bay TMDL 2017 Mid-Point Assessment

U.S. Environmental Protection Agency s Interim Expectations for the Phase III Watershed Implementation Plans

APPENDIX A. Nutrient Trading Criteria Specific for the Chesapeake Bay Watershed

Healthy Watersheds Forest/TMDL Project. Chesapeake Bay Maintain Healthy Watersheds GIT Presentation March 29 th, 2016

Total Maximum Daily Load Development for Unnamed Tributary to Pitts Creek. Public Meeting March 26, Why Are We Here

Maryland Phase I Watershed Implementation Plan Executive Summary Submitted Final 12/03/10 EXECUTIVE SUMMARY

Lake of the Pines. Watershed TMDL. Depressed DO conditions in 3,700 acres of upper reservoir; declining

Transcription:

Ecosystem Service Tradeoffs in the Implementation of the Bay TMDL Lisa A. Wainger 1 and Jay Messer 2 1 University of Maryland Center for Environmental Science 2 Retired; formerly of US EPA Office of Research and Development ACES, December 12, 2012

Major Project Contributors EPA ORD Jay Messer, Rob Wolcott, Andy Almeter, Rick Linthurst RTI George Van Houtven, Ross Loomis, Robert Beach, Marion Deerhake, Dallas Wood Abt Associates Isabelle Morin, Viktoria Zoltay

3 Issue Statement 1. TMDLs for tidal waterbodies are being developed throughout the US 2. Efforts in tidal waterbodies require substantial pollution reduction efforts and states are seeking to manage costs 3. Potential to leverage water quality goals to produce multiple ecosystem services - if policies can be aligned.

Chesapeake Bay TMDL in a Nutshell Total Maximum Daily Load (TMDL) developed to restore aquatic habitat in estuary Roughly 40% reduction in nitrogen, phosphorus & sediment from 1985 loads States distribute load allowances to source sectors

Gray vs. Green Options and the Provision of Ecosystem Service Co-Benefits Gray options Wastewater treatment plants Stormwater detention ponds Ecosystem Service Indicators Reductions in nutrient and sediment inputs Benefits to Stakeholders Improved recreational opportunities and aesthetics Septic upgrades Green options Wetland restoration Reforestation Riparian buffers Bioretention Water storage* Freshwater fish habitat* Animal habitat* Waterfowl habitat* GHG mitigation* * Bonus Ecosystem Services Flood and drought mitigation Hunting, fishing and birding Reduced risk of climate change

Most Cost-Effective N reductions Reasons to consider co-benefits Locations far from the waterbody have some of the more cost-effective BMPs Ecosystem service analysis can help to integrate local priorities and clarify beneficiaries

Optimization Framework to Examine Costs & Benefits of Policy Options Available Projects (gray + green) Costs & Performance by project* Ecosystem Services Quantification & Valuation by project Constraints TMDL target loads by basin Scenario-specific constraints MILP Optimization Model Set of Reduction Practices Costs of Compliance Monetized Ecosystem Services Quantified Ecosystem Services

Ecosystem Services by BMP

Annual Costs and Load Reductions for Agricultural BMPs Costs include: Installation and operation & maintenance (O&M) Land costs (county-level avg. rental rates) Nutrient/sediment removals - CBWM and other sources BMP Total Annual Cost per BMP Acre ($/acre/yr) Total Nitrogen Removal Efficiencies (%) Total Phosphorous Total Suspended Solids Forest Buffers $163 291 19 65% 30 45% 40 60% Grass Buffers $99 226 13 46% 30 45% 40 60% Wetland Restoration $236 364 7 25% 12 50% 4 15% Livestock Exclusion $81 117 9 11% 24% 30% Cover Crops $31 34 45% 15% 20% No-till $14 10 15% 20 40% 70% Reduced Fertilizer Application $37 15% 0% 0%

Value of Reduced Greenhouse Gas Emissions and Carbon Sequestration Services from BMP Application ($/ac/year) Annualized Value a, $ BMP Application From Cropland From Pasture To Forest $31.98 $60.39 $29.71 $44.50 To Wetland $36.55 $49.67 $36.55 $36.57 To Grass Buffer $3.52 $16.64 $0 $0.02 To Natural Revegetation $27.23 $49.21 $28.88 $39.88 To No-Till $1.59 NA To Reduced Fertilizer Application $0.53 $2.50 NA a 90-year period; 3% discount rate Based on Adams et al. 1996 (FASOM), IPCC 2006

Policy Scenarios Unconstrained Base Case BMP use and trading are unrestricted (except N,P and sediment targets to tidal waters must be met) 1:1 NPS:PS trading ratios and no baselines Standard rental rates represent the opportunity cost of agricultural land 10% transaction cost is applied to any PS-NPS trades.

Policy Scenarios (cont.) Selected Trading-Related Policies Precaution in NPS-PS trading Higher trading ratios Higher transaction costs (e.g., from higher monitoring costs) Agricultural policies No agricultural land conversion beyond a 100-ft stream buffer Higher opportunity costs of agricultural land (higher rental payments)

Two Ways to Optimize 1. Least Cost = Minimize Costs of Meeting TMDL 2. Least Net Cost = Minimize Net* Costs of Meeting TMDL ($Project Implementation) ($Ecosystem Service Co-Benefits) * Does not include $ benefits for estuarine water quality improvements

Marginal Cost Curve for N in the Susquehanna Basin Cost ($/lb) $5.00 $4.50 $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 0 10 20 30 N Reduction (millions of lbs) US EPA 2011 EPA/600/R-11/001 Ag Urban Point

Total Costs and ES Co-Benefits for Least-Cost Solution Sensitivity to BMP Costs and BMP Effectiveness 1,400 $1.4B 277 1,200 BONUS ECOSYSTEM SERVICES $ millions $ Millions 1,000 800 600 COSTS - Urban Stormwater BMPs COSTS - Agricultural BMPs COSTS - Point Sources 851 400 200 $205M 127 $233M 153 329 287 0 74 91 80 87 Base 25% transaction costs 2:1 NPS:PS No Constraints 25% BMP Transaction Cost 2:1 Credit Ratio

Acres of Agricultural & Urban SW BMPs for Least-Cost Solution Sensitivity to BMP Costs and BMP Effectiveness 8,000 8,000 7,000 479 Thousand Acres Thousand Acres 6,000 5,000 4,000 3,000 Urban Stormwater BMPs Ag Working Land BMPs Ag Land Conversion BMPs 796 817 6,712 2,000 1,000 2,090 1,991 0 Base 25% transaction costs 2:1 NPS:PS No Constraints 25% BMP Transaction Cost 2:1 Credit Ratio

Total Costs and Bonus ES for Least-NET-cost Solution Sensitivity to BMP Costs and BMP Effectiveness Compared to same scenario of Least Cost solution: Base case: Costs increase by 42%; bonus ES increase by 187% 2:1 credit ratio: Costs increase by 2%; bonus ES increase by 14% $ Millions $ millions 1,600 1,400 1,200 1,000 800 600 400 BONUS ECOSYSTEM SERVICES COSTS - Urban Stormwater BMPs COSTS - Agricultural BMPs COSTS - Point Sources $290M $305M $1.5 B 278 889 200 0 229 239 252 61 66 No Constraints 25% BMP Transaction Cost 2:1 Credit Ratio Base 214 25% transaction costs 320 329 2:1 NPS:PS

Monetized Ecosystem Services by Scenario Least Cost vs. Max Benefits (Potomac Basin) $60 $50 Least Cost Max Benefits Air Quality $Million $40 $30 $20 Duck Hunting Non-Waterfowl Hunting $10 $0 Base Case LC Restricted NPS LC Base Restricted Case LNC NPS LNC Carbon Sequestration & Reduced GHG Emissions

Quantified Ecosystem Services by Scenario Least Cost vs. Max Benefits (Potomac Basin) Miles or 100 acre-feet 350 300 250 200 150 100 50 Least Cost Max Benefits Brook Trout Stream Segments Improved (Stream Miles) Water Storage in Rural Wetlands w/ High Flood Prevention (100s acrefeet) Water Storage Urban Wetlands (100s acrefeet) 0 Base Case LC Restricted NPS LC Base Restricted Case LNC NPS LNC

Conclusions Achieving ES Co-Benefits in TMDLs 1. Substantial ES benefits & cost saving from promoting offsets by agriculture 2. Urban green BMPs produce valued co-benefits, but capacity to offset grey options appears limited 3. Precautionary trading ratios generate mixed results Increase costs and co-benefits if trading occurs. 4. Maximizing net benefits is often equivalent to minimizing costs produces same benefits for no increase in costs 5. When costs do increase - they are relatively modest and partially offset by additional co-benefits Wainger, L.A., G. Van Houtven, R. Loomis, J. Messer, R. Beach, and M. Deerhake. (in press). Agricultural and Resource Economics Review.