ohio river basin water quality trading project · 2019. 5. 10. · oh, in, and ky sign trading...

Jessica Fox

Program Manager, EPRI

Ohio River Basin

Water Quality Trading Project

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

What is WQT Trading?


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…


Project Due Diligence

Phase I: Due Diligence (EPRI Funded)

2007 – Scoping of Project Concept

2008 – Feasibility Study and Business

Case for Power Company

Participation

Phase II: Implementation

2009 – Received $2M in Funding

(EPA, USDA, private)

2010 -2012 – Outreach, planning,

interstate collaborations

2012 – Signed Trading Plan

2013 – Execute pilot trades

Overall Funding

$1M EPA

$2.3M USDA

$4M Private Funding


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


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


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


OH, IN, and KY Sign Trading Plan!

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


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


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.


Baselines


Crediting Equation: Attenuation Factors

In-stream

Assimilation

Edge of

Field

Edge of

River

Credit Equivalence

Margin of Safety

Credit = (Ffield x Friver x Finstream x Fequivalence x Fsafety) Load Reduction


Watershed Model


Attenuation Factors

TRADE RATIO: 1.64 to 1


Credit Trading Registry


Upper Ohio

Middle Ohio

Pilot Trade Locations

Pilot Trades (2013-2015)

25-30 farmer contracts

66,000 lbs N/yr

30,000 lb P/yr

Focus on KY, IN, OH


Project Schedule

Pro

ject Id

en

tificatio

n

Co

llab

ora

tion

Fo

rmed

Tra

din

g P

lan

Sig

ned

Sta

te E

ng

ag

em

en

t

Tra

nsitio

n to

Lo

ng

-term

pro

gra

m

Ag

en

cy fu

nd

ing

2007 Oct. 2009 2010 2011 2015

Pilo

t Tra

des

2012 2014 S

teerin

g C

om

mitte

es

2008

•Signed Trading Plan – August 2012

•RFP for BMPs – March – July 2013

•BMPs: Begin in Spring 2013


Contacts & Questions

Jessica Fox

[email protected]

650-855-2138

http://wqt.epri.com
mailto:[email protected]

ohio river basin water quality trading project · 2019. 5. 10. · oh, in, and ky sign trading...

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