Ohio River Basin Water Quality Trading Project · 2012. 12. 11. · ACES 2012 December 12, 2012 Ohio River Basin Water Quality Trading Project

ACES 2012

December 12, 2012

Ohio River Basin

Water Quality Trading Project

2 © 2012 Electric Power Research Institute, Inc. All rights reserved.

The Trading Plan is Signed!

August 9th, 2012 in Cincinnati Ohio

June 22: A nutrient pollution article in The Economist mentions EPRI's Water Quality

Trading Program.

http://www.economist.com/node/21557365?fsrc=rss|ust

3 © 2012 Electric Power Research Institute, Inc. All rights reserved.

Clean Water Act

– Water Quality

Standards

– Monitoring

– Assessment

• 301

• 303(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

WQT in Context…

4 © 2012 Electric Power Research Institute, Inc. All rights reserved.

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

5 © 2012 Electric Power Research Institute, Inc. All rights reserved.

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

States: Ohio

Indiana

Kentucky

Agencies: USEPA

USDA

Steering Committees: WWTP

Agriculture

Power Plants

Environmental Groups

6 © 2012 Electric Power Research Institute, Inc. All rights reserved.

ORB WQT Project Objectives & Approach

Overall Objective:

Demonstrate how WQT can be

used for cost-effective permit

compliance and provide

ecological co-benefits.

Pilot Study Objectives

– Collaboration

– Strong Science

– Defensible Rules

– Address Key WQT Issues

– Ancillary Benefits (ex.,

Ecosystem Services, Social)

Approach:

Test case: Reduce overall

loading of nutrients within the

Ohio River Basin using water

quality trading.

Driver:

Coal-fired power plants release

nutrients and are facing more

stringent nutrient NPDES permit

limits.

7 © 2012 Electric Power Research Institute, Inc. All rights reserved.

Pilot Trades (2012-2015)

30 farmer contracts

45,000-60,000 lbs N/yr

15,000-20,000 lb P/yr

Focus on KY, IN, OH

8 © 2012 Electric Power Research Institute, Inc. All rights reserved.

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:

www.epri.com/ohiorivertrading

9 © 2012 Electric Power Research Institute, Inc. All rights reserved.

Watershed Model

10 © 2012 Electric Power Research Institute, Inc. All rights reserved.

Credit Trading Registry

11 © 2012 Electric Power Research Institute, Inc. All rights reserved.

Credit Stacking

Jessica Fox, Royal Gardner, Todd Maki.

Feb 2011. Environmental Law Reporter.

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.

12 © 2012 Electric Power Research Institute, Inc. All rights reserved.

Project Schedule

Pro

ject Id

en

tificatio

n

Co

llab

ora

tion

Fo

rmed

Pilo

t Tra

des

Pro

gra

m F

ram

ew

ork

Tra

nsitio

n to

Lo

ng

-term

pro

gra

m

Ag

en

cy fu

nd

ing

2007 Oct. 2009 2010 2011 2015

Le

sso

n L

earn

ed

2012 2014 S

teerin

g C

om

mitte

es

2008

•Signed Trading Plan – August 9, 2012

•BMPs: Begin in Spring 2013

13 © 2012 Electric Power Research Institute, Inc. All rights reserved.

Contacts & Questions

Jessica Fox

[email protected]

650-855-2138

www.epri.com/ohiorivertrading