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Nutrient trading inventories
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Nutrient Trading Inventories: How Farmers Can Better Understand the Chesapeake Bay TMDL & Can Find
“Value” In Nutrient Trading Tool Inventory
Dana York, Green Earth Connection, Bob Ensor, Howard SCD
2
The Chesapeake Bay• For more than 300 years, the Bay and its tributaries have sustained the region’s economy and defined its traditions and culture.
• It is 64,000 Square Miles and the largest most biologically diverse estuary in North America and the third largest in the world.
• Land‐to‐water ratio is 14:1; largest of any coastal water body in the world. Average depth of 21 feet.
• Supports more than 3,600 species of plants, fish and animals
• The Bay watershed is home to almost 17 million people. About 150,000 new peoplemove into the watershed each year.
• Tens of thousands of streams, creeks, and rivers are resources for communities throughout the watershed.
• 77,000 principally family farms.
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Nitrogen Delivery By Sector
66
Regional Delivered Nitrogen
77
Phosphorous Delivery By Sector
88
Regional Delivered Phosphorous
99
295 Monitoring Programs by subject areas in the Chesapeake Bay (June 2009)
NUMBER OF MONITORING PROGRAMS BY SUBJECT AREA
0
20
40
60
80
100
120
AIR
QU
ALI
TY
BA
CTE
RIO
LOG
ICA
L
BEN
THIC
BIR
DS
CLI
MA
TOLO
GIC
AL
FISH
ERIE
S
GR
OU
ND
WA
TER
MET
EOR
OLO
GY
OB
SER
VIN
GSY
STEM
PHYT
OPL
AN
KTO
N
POIN
T SO
UR
CE
RA
DIO
LOG
ICA
L
SAV
SHEL
LFIS
H
TOXI
CS-
SED
IMEN
T
TOXI
CS-
TISS
UE
TOXI
CS-
WA
TER
WA
TER
QU
ALI
TY
WIL
DLI
FE
ZOO
PLA
NK
TON
Chesapeake Bay Model
1111
Chesapeake Bay Partnership Modeling Tools
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Atmosphere FertilizerManure
Runoff
Load reductions attributed to upland benefit employing
“efficiencies”• Efficiencies can vary by hydro-
geomorphic region
Non-Point Source Practices and ProgramsPractices With Nutrient and Sediment Reduction Efficiencies
BMP
Water Quality
1616
Habitats/Lower Food WebBay Measures
Reducing Pollution
What is the Chesapeake Bay TMDL?• Referred to as a “pollution diet” for the Chesapeake Bay, TMDL is the Total
Maximum Daily Load of nutrients and sediment that can enter the Bay while still achieving water quality standards.
– Established by the EPA under authority of the federal Clean Water Act of 1972.– Responds to consent decrees in federal court cases due to insufficient progress and poor water
quality in the Bay, despite extensive restoration efforts over the past 25 years.– The Chesapeake Bay TMDL identifies pollution reductions for the entire Bay watershed, including
part of six states (Delaware, Maryland, New York, Pennsylvania, Virginia and West Virginia) and the District of Columbia. Adopted in 2010, it is the largest TMDL ever developed by the EPA.
– The plan requires full implementation by 2025, with at least 60 percent of actions completed by 2017.
– Two year milestones to measure incremental progress.– The EPA established specific watershed‐wide pollution reduction goals for the Bay:
• 25 percent reduction in nitrogen. • 24 percent reduction in phosphorus.• 20 percent reduction in sediment.
– The Bay TMDL is comprised of 92 smaller TMDLs for individual segments,
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Nitrogen Loads Delivered to the Chesapeake Bay By Jurisdiction Point source loads reflect measured discharges while
nonpoint source loads are based on an average‐hydrology year
20.7 18.9 18.8 18.2 17.8 17.1 16.8 16.8 16.5 13.6
120.0 114.7 109.8 109.2 108.4 106.6 105.7 104.4 103.9 102.8
71.4 71.9
8.25.0
3.5 3.6 4.1 3.5 2.9 2.9 2.9 3.5
2.4 2.4
81.1
59.158.1 56.7 57.7 56.9 56.2 53.7 53.2 54.8
37.1 37.3
7.5
7.77.3 7.1 6.8 6.6 6.6 6.7 6.7 6.6
4.8 4.7
90.5
79.078.4 77.8 75.4 74.4 73.1 73.9 73.8 71.9
52.1 51.4
5.9
5.55.1 5.0 4.9 4.9 4.8 4.6 4.6 4.5
3.0 2.9
175
17 130
50
100
150
200
250
300
350
400
1985 2000 2001 2002 2003 2004 2005 2006 2007 2008 Strategy StateCap
Goal
mill
ion
lbs.
/yea
r
NY PA DC MD WV VA DE
333.9
289.9 281.1270.2
175
266.3277.7 275.1
262.9 261.9 260.7
184.4 183.1
Phase 4.3 Data
Watershed Implementation Plans• The Bay TMDL requires all states in the Chesapeake Bay
region to develop Watershed Implementation Plans (WIP) to meet specific pollution reduction goals.
– The WIP details how and when the states will meet pollution allocations for each sector in each waterway segment.
– The Watershed Implementation Plan includes specific strategies for each of the major sources of pollution in the Chesapeake Bay Watershed. Four major sectors are:• Wastewater treatment plants. • Agricultural runoff. • Urban/suburban storm water runoff. • Onsite wastewater/septic systems.
1919
EPA TMDL
MDTMDL
Watershed TMDL
County Watershed
TMDLCo
WIP II
Sectors
Agriculture
Stormwater
WWTP
State,Districts
State, Counties
Farm Cropland Acres in Watershed TMDL
Inventory
Cost Shared BMPs and…
• Non Cost Shared Voluntary BMPs meeting NRCS Specs
• Resource Improvement Practices (Farmer Funded)
• Out of contract lifespan, still functional practices
Aggregate and Run through Bay Model at all political levels
Is TMDL Met?
What More Needs to be done?
Arms Length Verification
Potential Nutrient Credits (N, P, Carbon, Sediment)CBNTT=$$$
Septic
Buyer
Seller
NutrientCredits
Compensation ($)
New CBNTT Tool: Agricultural Nutrient Tradingin Maryland
Nutrient Trading Baseline and Credit Calculation Example
MDA uses the CB Nutrient Trading Tool for Agricultural Nutrient Trading Assessments
• The CBNTT is developed by the World Resources Institute. It is used to complete the baseline and future trading scenarios.
• The MDA program was created to provide Maryland farmers payments for conservation practices on their farms.
• These practices provide offsets to address new or increased loads associated with a growing population.
Assessing Credit Generation Potential
Who May Sell Agricultural Credits?● Any generator of agricultural non-point source loads:
○ Farm owners, landowners○ Renter or lessee that can demonstrate
permission by the owner to Sell credits● Aggregators● Maryland state entities● Parties who remove agricultural nutrients from the environment
Eligibility of Agricultural Generators to Sell Credits
A current nutrient management plan,
An updated Soil and Water Conservation Plan,
Including, if applicable, a Waste Management System Plan for the entire farm operation.
In order to sell nutrient credits as part of this program, agricultural credit generators must meet the following requirements:
Key Principle #1: Must meet Baseline first. Key Principle #2: Must comply with all laws and regulations.Key Principle #3: BMP’s funded by federal or state cost-share can not be used to generate credits during their contract life.Key Principle #4: No loss of productive farmland through conversion.Key Principle #5: Trades must result in a net decrease in loads (10% retirement factor). Key Principle #6: Practices only count once they are installed & verified.
6 Key Trading Principles
Annual Verification and Inspection
Trading contracts will require annual verification and reporting.
Credits generated by annual practices, such as cover crops, will require inspection twice during the annual life.
Structural BMP’s inspections are required once a year.
The Maryland Department of Agriculture (or its designee) will perform annual spot checks on a minimum of 10% of all traded Agricultural credits.
Potential BMP’s Load Reductions (N Lb/Ac/Yr)Continuous No‐Till ` 4.61Riparian Forest Buffers 27.28Riparian Grass Buffers 16.92Wetland Restoration 27.28Tree Planting 13.57Cover Crops 9.48Off – Stream Watering w/Fencing 6.79Off – Stream Watering w/o Fencing 3.40Animal Waste M.S.: Livestock 531.00Animal Waste M.S.: Poultry 210.00Barnyard Runoff Control/Loafing Lot
Management 69.00
Agricultural Non-Point Source Credit Potential
Early Howard County MDNTT Results:
MDNTT Howard County Results*
Farm Baseline Met? N Red EOS N Red to BayBay N Credits Generated P Red EOS P Red Bay
P Credits Generated
Farmer 1 N Only 21.9 2.6 3 0 0 0
Farmer 2 Yes 42.6 35.8 36 7.5 5.4 5
Farmer 3 Yes 10.3 1.2 1 4.7 3.4 3
Farmer 4 Yes 48.1 5.8 6 10.3 7.4 7
Farmer 5 N Only 9.4 7.9 8 0 0 0
Farmer 6 Yes 443.1 367.8 368 16.4 15.6 16
Farmer 7 Yes 42.2 35.5 35 18.2 13.1 13
Farmer 8 N Only 76.3 9.2 9 0 0 0
Farmer 9 Yes 304.9 36.6 37 20.3 14.6 15
Farmer 10 Yes 217.1 26.1 26 2 1.4 1
Farmer 11 N Only 485 58.2 58 0 0 0
Farmer 12 Yes 173 20.8 21 7.5 5.4 5
SUBTOTAL 1873.9 607.5 608 86.9 66.3 65
*Version 2 MDNTT
If Maryland Counties are going to Meet the Requirements of the TMDL and allow Continued Growth—Agricultural Offsets can Be the Answer!
• Trading will give developers hope that if they can meet part of the need (80‐90%)‐‐ then through purchase of Agricultural offsets they will be able to complete the project (State Implementation Strategy TBD by 2014?)
• Agricultural offsets can provide funding to help farmers continue to keep conservation practices on the ground to meet the TMDL and potentially help install additional conservation practices on their land.
Early CBNTT Results in PA and VA
• Virginia‐ Trading Policy and Tool is Not Finalized – Currently they are Implementing a Resource Management Plan policy‐ Calibration of CBNTT was done using the RMP Guidelines and a TMDL Baseline. Results were mixed.
• Pennsylvania‐ In process of developing a new Trading Policy and looking at CBNTT.– Early Calibration runs in Lancaster County would say
none of farms using Manure could meet the TMDL.
Model Calibration VS Policy Reactions
When new tools first start they require data to calibrate the tool. Data provides accuracy but also affects policy decisions. We need science and policy to meet in the middle!
ScienceWhere we need to be
Policy
CBNTT Demonstration
QUESTIONS ?
For Information Contact:
Dana York- Green Earth [email protected], 410-708-6794
Robert Ensor- HSCD- District [email protected], 410-489-7987