Presentation: Great Miami River Watershed WQ Trading Program · • MCD established 1915. Stewards...
Transcript of Presentation: Great Miami River Watershed WQ Trading Program · • MCD established 1915. Stewards...
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Stewards of the Great Miami River Watershed
Great Miami River WatershedWater Quality Credit Trading Program
Minnesota Water Quality Pollutant Trading Advisory Committee
April 17, 2007
Douglas “Dusty” HallSarah Hippensteel
The Miami Conservancy DistrictDayton, Ohio
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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
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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
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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
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Stewards of the Great Miami River Watershed
Great MiamiRiver Watershed• 4,000 mi²• Major tributaries:
– Stillwater River– Mad River
• 1.5 million residents• Dayton is largest city• Agriculture is dominant
land use
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Stewards of the Great Miami River Watershed
Great Miami River Watershed
• Rural areas upstream• Urban areas downstream
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Stewards of the Great Miami River Watershed
Great MiamiRiver Watershed
• Are we meeting water quality goals?– Yes = 59%– Partial = 20%– No = 21%
• Sources of impairment– Hydromodification– Sediment– Nutrients (TP)
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Stewards of the Great Miami River Watershed
Great MiamiRiver Watershed
Great Miami River Watershed
Average peak season* total nitrogen loadingper unit area on the lower Ohio tributaries
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Little
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iami
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ater
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dTen
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d (l
bs/d
ay/s
q.m
i) ESTIMATORORSANCO
*March – May 1998 and November 1998 – March 1999
#Value for Green River incorrect due to typographical error in ORSANCO report#
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Stewards of the Great Miami River Watershed
Trading driver -regulation
• New TN and TP restrictions on horizon for WWTPs
• Agriculture is mostly unregulated
• Ohio EPA says TP is problem• USEPA wants TN reduced• Ohio EPA will promulgate TN and TP criteria
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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
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Stewards of the Great Miami River Watershed
Trading driver - economics
Preliminary Economic Analysis of Water Quality Trading
Opportunities in the Great Miami River
Watershed, OhioJuly 23, 2004
Prepared by:Kieser & Associates
536 E. Michigan Ave., Suite 300Kalamazoo, Michigan 49007
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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!
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Stewards of the Great Miami River Watershed
Trading driver -environmental results
YesNoAssimilative capacityYesNoFloodplainYesNoWetlandYesNoVelocityYesNoStream bankYesNoCanopyYesNoHabitatYes?Other pollutantsYesYesPollutant of concern
Ag. PracticesWWTP Upgrade
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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
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Stewards of the Great Miami River Watershed
Program design
• Responsive• Sensible• Results oriented• Manages liability• Minimizes uncertainty• Adaptable
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Stewards of the Great Miami River Watershed
Responsive
County SWCDs
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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
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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
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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
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Stewards of the Great Miami River Watershed
Results oriented
Goal
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Stewards of the Great Miami River Watershed
Continuous flow andnutrient monitoring5 to 10%
monitoring
Results oriented
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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
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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!!
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Stewards of the Great Miami River Watershed
Water Quality Monitoring
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Stewards of the Great Miami River Watershed
Water Quality Monitoring
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Stewards of the Great Miami River Watershed
Results oriented
6,380,721 to 10,865,700
4,475,978TN
1,349,207 to 2,253,222
904,015TP
Trading (lbs.)
Traditional Approach
(lbs.)
Nutrient
Estimated* impact of trading ratios
*Kieser & Associates, 2004
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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
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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
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Stewards of the Great Miami River Watershed
Minimizing uncertainty
• Ohio EPA – Rulemaking• Pilot projects critical• Market instability???• Legislative support for
“grandfathering”
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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.
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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
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Stewards of the Great Miami River Watershed
Adaptable
CapitalizeProject Fund
RFP
Select projects
Contract/implement projects
Inventory/allocate credits
Adapt
Collect dataWWTPs
CIG
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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
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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
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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.