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![Page 1: Nutrient Trading Framework in the Coosa Basin Alabama Water Resources Conference September 6, 2012 A Feasibility Study of Nutrient Trading in Support of.](https://reader030.fdocuments.in/reader030/viewer/2022032702/56649ca35503460f9496364e/html5/thumbnails/1.jpg)
Nutrient Trading Frameworkin the Coosa Basin
Alabama Water Resources Conference
September 6, 2012
A Feasibility Study of Nutrient Trading in Support of the Weiss Lake TMDL
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Brown and Caldwell 2
Since 2000 the Partnership has been:
• Diverse – Comprised of water with-drawal permit holders, local governments, and other advocacy entities with interest in water issues
• Collaborative – Formed voluntarily, membership by choice
• Largely self-funded• River Basin Centered - Geographic
boundaries nearly coincide with the Coosa Basin
Introduction – North Georgia Water Resources Partnership
Drought Years of the late 1990s Highlighted Need for:• Regional Planning• Integrated Planning for Water Supply, Wastewater
Treatment, and Stormwater Management
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3
• The Coosa Basin to Weiss Lake• Drainage area over 5,200 square miles• Majority of the watershed in Georgia
Focus Area - Coosa River Basin to Weiss Lake
Source: USEPA 2008Brown and Caldwell
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• Lake Weiss TMDL completed in 2008• In order to meet Alabama Chlorophyll a
standards, total phosphorus (TP) reduction targets set
• 30% phosphorus load reduction goal at the Georgia/Alabama state line.
• GAEPD considering TP permit limits for NPDES discharges of 1.0 mg/L (major) and 8.34 lbs/day (minor)
• Georgia can meet 30% TP reduction “in any number of ways” (point and/or non-point measures)
• The TMDL acknowledges that non-point sources are major contributors to the phosphorus loading
Background
Brown and Caldwell
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Point Sources930 kg/day29%
Non-Point Sources2,280 kg/day71%
Source: USEPA Weiss Lake TMDL (2008)
• Growing Season Median TP Loads to Weiss Lake
Brown and Caldwell
Model Results for Existing Conditions
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What is Water Quality Trading?
• An approach to meet water quality standards in a more efficient method.
• Based on the fact that sources in a watershed can face very different costs to control the same pollutant.
• Trading programs allow facilities facing higher pollution control costs to meet their regulatory obligations by purchasing environmentally equivalent pollution reductions from another source at lower cost
• Thus achieving the same water quality improvement at lower overall cost
• A credit is a tradable unit of pollutant reduction (i.e. pound of TP)
Brown and Caldwell
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Water Quality Trading Programs
Source: USEPABrown and Caldwell
• Programs in the US (as tracked by EPA)
• 48 with at least one trade
• Includes a range parameters and trading frameworks
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• Identify and Evaluate potential Nutrient Trading Frameworks
• Evaluate Existing Phosphorus Loads within the Coosa River Basin
• Identify and Evaluate Alternatives/Reduction Strategies
• Set Up Pilot Point to Non-Point Trade
Coosa Basin Tasks
Brown and Caldwell
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Brown and Caldwell 9
• Type of Trading• NPDES Approach• Administration• Trading Factors
Key Framework Considerations
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• One point source to one point source trading
• Multiple facility point source trading
• Point Source Exchange Credits
Types of Trading Point Source – Point Source
Brown and Caldwell
One to one trading
Multiple Facilities
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• One point source to one non-point source trade
• One point source to multiple non-point source trades
• Non-point source credit exchange
Types of TradingPoint Source – Non-point Source
Brown and Caldwell
One to one trading
Credit Exchange
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Brown and Caldwell | Footer | Date 12
• Individual Permit – trades would generally be executed through contracts between trading parties, and then documented in NPDES permits
• Watershed Permit - A similar alternative is the issuance of a group NPDES permit (or “general watershed permit”) that represents the aggregate wasteload allocation (WLA) for all participating sources. Typically, a point source can attain compliance by staying under its individual WLA or purchasing credits under the general watershed permit.
NPDES Approach
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Brown and Caldwell | Footer | Date 13
• Agreement between individual parties – trades arranged through direct negotiation between buying and selling sources
• Credit exchange – administered by:• a coalition of dischargers• the state• private third-party broker
Administration
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Brown and Caldwell | Footer | Date 14
• The factors modify the rate from something other than a one-to-one ratio between credits needed at point A and reductions achieved at point B.
• Generally, the magnitudes for different locations within the watersheds estimated from models.
Trading Factors
• Many trading frameworks have included the use of factors to adjust the credit exchange rate.
Example of USGS SPARROW ModelPhosphorus delivery for the Flint River in Northern
Alabama
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Proposed Coosa BasinNutrient Trading Framework Elements
• Type of Trading• Point Source – Non-point source
• NPDES Approach• Individual Permit
• Administration• Individual Negotiations
• Trading Factor• Proposed 1:1 ratio
Trades between individual parties
EPD review & approve trading framework and modify NPDES
permits
Public participation
Develop basic trading guidance
Brown and Caldwell
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• Definition of the units of trade.• Definition of the manner in which credits
would be calculated for point and nonpoint source load reduction projects.
• A procedure for verifying BMPs or nutrient load reductions.
• Templates for trading agreements between parties
• Common language for incorporation into NPDES permits.
Brown and Caldwell
Trading Guidance
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Brown and Caldwell | Footer | Date 17
• This step is currently underway
• Gathering available models and studies to understand phosphorus loads
• Identify high phosphorus load subwatersheds
• Identify potential point source partners
• Identify potential non-point source partners
Evaluate Phosphorus Loads
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Identify and Evaluate Alternatives and Pilot Trade
• Identify potential point to non-point source trade
• Identify BMPs to reduce TP (type, size, number)
• Identify potential sites for BMP implementation
• Conduct site visit of potential BMP sites
• Develop concept plan for BMP
Brown and Caldwell
Lower Boise Wetland Concept
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• Nutrient Trading is a cost effective solution for meeting water quality requirements that is supported by the EPA and Georgia EPD.
• The North Georgia Water Resources Partnership is currently investigating the feasibility of developing a nutrient trading framework and pilot trade for the Coosa Basin.
Summary
Brown and Caldwell
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Brown and Caldwell | Footer | Date 20
Questions?
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Questions?
Acknowledgements:
• North Georgia Water Resources Partnership• Laurie Hawks and Clifton Bell, Brown and
Caldwell