Great Miami River Watershed Water Quality Credit Trading Program - - PowerPoint PPT Presentation

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Great Miami River Watershed Water Quality Credit Trading Program - - PowerPoint PPT Presentation

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Stewards of the Great Miami River Watershed Great Miami River Watershed Water Quality Credit Trading Program Minnesota Water Quality Pollutant Trading Advisory Committee April 17, 2007 Douglas Dusty Hall Sarah Hippensteel The Miami

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Stewards of the Great Miami River Watershed

Great Miami River Watershed

Water Quality Credit Trading Program Minnesota Water Quality Pollutant Trading Advisory Committee

April 17, 2007

Douglas “Dusty” Hall Sarah Hippensteel The Miami Conservancy District Dayton, Ohio

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Stewards of the Great Miami River Watershed

Overview

  • The Miami Conservancy District
  • The Great Miami River Watershed
  • Great Miami River Watershed Water

Quality Credit Trading Program

– Drivers – Partners & development process – Design

  • Program status
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Stewards of the Great Miami River Watershed

The Miami Conservancy District

  • Great flood of 1913
  • Ohio Conservancy Act

– Signed into law in 1914 – Watershed-based political subdivision – Broad authority primarily for water-related purposes

  • MCD established 1915
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Stewards of the Great Miami River Watershed

The Miami Conservancy District

  • Protecting people and property from flooding

√ Five dry dams and levees √ Floodplain preservation

  • Preserving the quantity and quality of water

√ Aquifer protection √ Stormwater collaboration √ Water quality credit trading

  • Promoting the enjoyment of waterways

√ Land and water trails √ Parks and preserves

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Stewards of the Great Miami River Watershed

Great Miami River Watershed

  • 4,000 mi²
  • Major tributaries:

– Stillwater River – Mad River

  • 1.5 million residents
  • Dayton is largest city
  • Agriculture is dominant

land use

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Stewards of the Great Miami River Watershed

Great Miami River Watershed

  • Rural areas upstream
  • Urban areas downstream
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Stewards of the Great Miami River Watershed

Great Miami River Watershed

  • Are we meeting water

quality goals?

– Yes = 59% – Partial = 20% – No = 21%

  • Sources of impairment

– Hydromodification – Sediment – Nutrients (TP)

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Stewards of the Great Miami River Watershed

Great Miami River Watershed

Great Miami River Watershed

Average peak season* total nitrogen loading per unit area on the lower Ohio tributaries

10 20 30 40 50

S c i

  • t
  • L

i t t l e M i a m i L i c k i n g G r e a t M i a m i K e n t u c k y S a l t G r e e n W a b a s h S a l i n e T r a d e w a t e r C u m b e r l a n d T e n n e s s e e

Load (lbs/day/sq.mi)

ESTIMATOR ORSANCO

*March – May 1998 and November 1998 – March 1999

#Value for Green River incorrect due to typographical error in ORSANCO report

#

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Stewards of the Great Miami River Watershed

Trading driver -regulation

  • New TN and TP restrictions
  • n horizon for WWTPs
  • Agriculture is mostly

unregulated

  • Ohio EPA says TP is problem
  • USEPA wants TN reduced
  • Ohio EPA will promulgate TN and TP criteria
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Stewards of the Great Miami River Watershed

Trading driver – economics

  • WWTPs can reduce

TP and TN with $$$$ treatment

  • Agricultural producers can

reduce TP and TN for a fraction of the cost

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Stewards of the Great Miami River Watershed

Trading driver - economics

Preliminary Economic Analysis

  • f Water Quality Trading

Opportunities in the Great Miami River Watershed, Ohio

July 23, 2004

Prepared by: Kieser & Associates 536 E. Michigan Ave., Suite 300 Kalamazoo, Michigan 49007

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Stewards of the Great Miami River Watershed

20-Year economic projection

  • WWTP upgrades = $422.5

million

  • Trading = $46.5 million

– Ag. practices = $37.8 million – Data collection & transaction costs = $8.7 million

  • Citizens save $376 million
  • Better environmental results!
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Stewards of the Great Miami River Watershed

Trading driver - environmental results

Yes No Assimilative capacity Yes No Floodplain Yes No Wetland Yes No Velocity Yes No Stream bank Yes No Canopy Yes No Habitat Yes ? Other pollutants Yes Yes Pollutant of concern

  • Ag. Practices

WWTP Upgrade

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Stewards of the Great Miami River Watershed

Partnership and program development

  • More than 100 meetings – 2003/2005

– Cities/counties with WWTPs – County soil and water conservation districts (SWCDs) – Agricultural producers – Ohio EPA and USEPA – Ohio Department of Natural Resources – Ohio Farm Bureau Federation – Chambers of commerce – USDA’s Natural Resource Conservation Service – Ohio Environmental Council

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Stewards of the Great Miami River Watershed

Program design

  • Responsive
  • Sensible
  • Results oriented
  • Manages liability
  • Minimizes uncertainty
  • Adaptable
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Stewards of the Great Miami River Watershed

Responsive

County SWCDs

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Stewards of the Great Miami River Watershed

Sensible

  • Minimum new bureaucracy
  • Existing SWCD staff

– Identify and submit projects – Quantify nutrient reductions with standardized approach – Validate project completion and ongoing implementation – Identify “failed” practices

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Stewards of the Great Miami River Watershed

Sensible

  • The “straight face test”

– Credits must be generated upstream from the WWTP that is using the credits for compliance

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Stewards of the Great Miami River Watershed

Results oriented

  • What actions generate credits for WWTPs?

– Agricultural practices funded by the Trading Program Project Fund - YES – Agricultural practices under contract with existing state & federal conservation incentive programs - NO – Any other required agricultural practice - NO

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Stewards of the Great Miami River Watershed

Results oriented

Goal

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Stewards of the Great Miami River Watershed

Continuous flow and nutrient monitoring 5 to 10% monitoring

Results oriented

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Stewards of the Great Miami River Watershed

Results Oriented

  • Stillwater Subwatershed

– TMDL says too much TP – Proposed reduction = 977,000 lbs./year – Agriculture is source of > 90% – TMDL seeks 75% voluntary reduction by agriculture

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Stewards of the Great Miami River Watershed

Results oriented

  • TMDL TP load est. = 1,446,000 lbs.
  • Measured load 357,000 lbs. TP
  • EPA’s discharge estimate too high

by 400%

  • EPA’s ag. reduction target too high
  • Measured load is less than EPA’s

TMDL goal!!

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Stewards of the Great Miami River Watershed

Water Quality Monitoring

500 1000 1500 2000 2500 7/12/2005 7/19/2005 7/26/2005 8/2/2005 8/9/2005 8/16/2005 8/23/2005 8/30/2005 9/6/2005 9/13/2005 9/20/2005 9/27/2005 Flow (cfs) 0.1 0.2 0.3 0.4 0.5 0.6 Concentration (mg/l) FLOW TP SRP

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Stewards of the Great Miami River Watershed

Water Quality Monitoring

0.00 0.10 0.20 0.30 0.40 0.50 0.60 12-Jul-05 19-Jul-05 26-Jul-05 02-Aug-05 09-Aug-05 16-Aug-05 23-Aug-05 30-Aug-05 06-Sep-05 13-Sep-05 20-Sep-05 27-Sep-05 Concentration (mg/l) 0.5 1 1.5 2 2.5 3 3.5 4 Daily Precipitation (in) SRP TP PRECIP

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Stewards of the Great Miami River Watershed

Results oriented

6,380,721 to 10,865,700 4,475,978 TN 1,349,207 to 2,253,222 904,015 TP Trading (lbs.) Traditional Approach (lbs.) Nutrient

Estimated* impact of trading ratios

*Kieser & Associates, 2004

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Stewards of the Great Miami River Watershed

Manages liability

  • Insurance Pool

– Provides “back-up” credits for WWTPs if a practice fails – Credits generated via ratios

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Stewards of the Great Miami River Watershed

Minimizing uncertainty

Addresses USEPA Trading Policy

√ Consistent with Clean Water Act √ Trade only within a watershed √ No net increase in pollutant or impairment (no “hot spots”) √ Consideration of uncertainty of agricultural practices √ Public participation √ Ancillary environmental benefit

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Stewards of the Great Miami River Watershed

Minimizing uncertainty

  • Ohio EPA – Rulemaking
  • Pilot projects critical
  • Market instability???
  • Legislative support for

“grandfathering”

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Stewards of the Great Miami River Watershed

Final Ohio rules

(D) For any water quality trading activities in effect prior to the effective date of this rule, a water quality trading management plan shall be submitted to the director as follows:

(1) For the great Miami river watershed water quality credit trading program, not later than ten years after effective date of this rule.

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Stewards of the Great Miami River Watershed

Adaptable

  • Load Reduction Workgroup

– Ohio DNR – Ohio EPA – USDA/NRCS

  • Adaptive implementation

– Collect data – Improve Load Reduction Spreadsheet – Update the Trading Program

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Stewards of the Great Miami River Watershed

Adaptable

Capitalize Project Fund RFP Select projects Contract/implement projects Inventory/allocate credits Adapt Collect data WWTPs CIG

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Stewards of the Great Miami River Watershed

Program status

  • Three-year pilot project

funded

$1,200,000 WWTPs $ 937,000 USDA/NRCS $2,137,000 total

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Stewards of the Great Miami River Watershed

Program status

  • Two rounds of projects

– Applications = 120+ – Projects funded = 34 – Nutrient reductions = 165 tons – Payments approved = $409,719

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Stewards of the Great Miami River Watershed

MCD’s VISION

Thriving communities, a healthy watershed, and a higher quality of life, sustained by well-managed water resources throughout the watershed.