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Ann Swanson, Executive Director ACES and Ecosystems Markets...
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Ann Swanson, Executive Director Chesapeake Bay Commission ACES and Ecosystems Markets 2012 December 12, 2012
Transcript of Ann Swanson, Executive Director ACES and Ecosystems Markets...
Ann Swanson, Executive Director Chesapeake Bay Commission
ACES and Ecosystems Markets 2012 December 12, 2012
Central Question #1
Our Story
1. The Bay Commission
2. The Bay
3. The TMDL
4. The Study
5. The Future
Policy for the Bay (1980)
Tri-State Legislative Commission
PA, MD, VA
Established by state law (3)
7 Members Each State (21 total) 2 Senate
3 House
1 Cabinet-level
1 Citizen at Large
It’s productive!
BIG & DIVERSE! The Chesapeake Bay supports more than 3,600 species of plants, fish and animals, including 348 kinds of finfish, 173 kinds of
shellfish, and over 2,700 plants.
Bay tidal waters do not meet water quality standards based on designated uses. Nitrogen, Phosphorus and Sediment Under the federal Clean Water Act, a TMDL must be developed.
1999 Citizen’s Suit Settlement agreement
created May 2011 deadline
Chesapeake 2000 Agreement by Executive Council (EC) Voluntary2010 Tributary
Strategy deadline
2008 EC Recognition of Impairment
2010 Citizen’s Suit December 31, 2010 deadline
1983 Agreement 1987 Agreement
Voluntary Nutrient reduction goal of 40% by 2000
1992 Amendments No river is created equal Look for reductions at
tributary level Adopted allocation loads,
state by state No deadline for achievement
1999 Listed on 303(d) list
It is a number
It is a “pollution diet”
It is accountable (60% 2017/100% 2025)
It requires transparency
It requires verification
No later than 2025
And it must assure, with reasonable assurance that it will be achieved.
A Voluntary/Cooperative Approach
A Game Changer
1992 2010
The TMDL triggered NUTRIENT TRADING PROGRAMS
4 STATES Maryland Virginia Pennsylvania West Virginia
PURPOSE: To promote pollution reduction at reduced cost
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State Authorities VA state law and regulations PA state regulations MD trading policy
State variations MD requires upgrades to ENR before trading VA allows Point Sources to exchange credits to meet permit limits & PS to
buy NPS offsets at 2:1 ratio to accommodate growth PA allows PS to purchase PS or NPS credits to meet existing permit load
limits
Trading areas MD: Potomac, Patuxent, “Everywhere Else” PA : Potomac, Susquehanna VA: Bay Tributaries and Eastern Shore
Project Development & Funding
Economics Analysis & Modeling
Policy & Technical Expertise
Transparency, Accuracy & Applicability Economics of Trading Advisory Council
Baseline for Agriculture (TMDL implementation)
Baseline for Significant Point Sources (TMDL WLA or 2010 load)
Protection of Local Water Quality (Trades limited to 9M lbs.. Nitrogen ; 200,000 lbs.. Phosphorus)
Trading Ratio (2:1)
Transaction Costs (38%)
Maintain Productive Farmland (maximum 25% retirement)
Geography
scenarios
In-Basin-State
In-State
In-Basin
Watershed-wide
Sources
short term scenarios
SigPS-Only
SigPS-AgrNPS
SigPS-AgrNPS-Urban
long term scenario
Offset-Only
Summary of Findings
• Legal Challenges • Verification • Local Water Quality • Trust in the Credits • Trust in the Model • Adaptability vs.
Predictability • Rigid Cap = Demand
Any questions?
Ann Swanson Executive Director
Chesapeake Bay Commission 60 West Street
Annapolis, MD 21403 410-263-3420
Chesapeake Bay Commission Policy for the Bay
