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

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

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

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

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

Stewards of the Great Miami River Watershed Great Miami River Watershed • 4,000 mi ² • Major tributaries: – Stillwater River – Mad River • 1.5 million residents • Dayton is largest city • Agriculture is dominant land use

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

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)

Stewards of the Great Miami River Watershed Great Miami River Watershed Average peak season * total nitrogen loading per unit area on the lower Ohio tributaries Great Miami River Watershed 50 ESTIMATOR Load (lbs/day/sq.mi) 40 ORSANCO 30 20 10 0 # d r i g i y t h o m m n e l e n e n k s n t a e t a e o i a a a c S e i a k l s i b l i i u r a w r s c M c M t G a e e S i S n e n L W b d e t e m n a a l K e t r e u T t r T i C L G # Value for Green River incorrect due to typographical error in ORSANCO report * March – May 1998 and November 1998 – March 1999

Stewards of the Great Miami River Watershed Trading driver -regulation • Ohio EPA says TP is problem • USEPA wants TN reduced • Ohio EPA will promulgate TN and TP criteria • New TN and TP restrictions on horizon for WWTPs • Agriculture is mostly unregulated

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

Stewards of the Great Miami River Watershed Trading driver - economics Preliminary Economic Analysis of 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

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!

Stewards of the Great Miami River Watershed Trading driver - environmental results WWTP Upgrade Ag. Practices Pollutant of concern Yes Yes Other pollutants ? Yes Habitat No Yes Canopy No Yes Stream bank No Yes Velocity No Yes Wetland No Yes Floodplain No Yes Assimilative capacity No Yes

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

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

Stewards of the Great Miami River Watershed Responsive County SWCDs

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

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

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

Stewards of the Great Miami River Watershed Results oriented Goal

Stewards of the Great Miami River Watershed Results oriented Continuous flow and nutrient monitoring 5 to 10% monitoring

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

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!!

Flow (cfs) Water Quality Monitoring 1000 1500 2000 2500 500 0 7/12/2005 7/19/2005 7/26/2005 8/2/2005 8/9/2005 8/16/2005 8/23/2005 8/30/2005 Stewards of the Great Miami River Watershed 9/6/2005 9/13/2005 9/20/2005 9/27/2005 0 0.1 0.2 0.3 0.4 0.5 0.6 Concentration (mg/l) SRP TP FLOW

Concentration (mg/l) 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 Stewards of the Great Miami River Watershed 06-Sep-05 13-Sep-05 20-Sep-05 27-Sep-05 0 0.5 1 1.5 2 2.5 3 3.5 4 Daily Precipitation (in) PRECIP TP SRP

Stewards of the Great Miami River Watershed Results oriented Estimated* impact of trading ratios Nutrient Traditional Trading Approach (lbs.) (lbs.) TP 904,015 1,349,207 to 2,253,222 TN 4,475,978 6,380,721 to 10,865,700 *Kieser & Associates, 2004

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

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

Stewards of the Great Miami River Watershed Minimizing uncertainty • Ohio EPA – Rulemaking • Pilot projects critical • Market instability??? • Legislative support for “grandfathering”

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.

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

Stewards of the Great Miami River Watershed Adaptable Capitalize Project Fund Adapt RFP WWTPs Collect data CIG Select projects Inventory/allocate Contract/implement credits projects

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

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

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.