Water Quality Trading for Temperature & Nutrient Compliance: A Turn-key Solution
Alex Johnson, Ecosystem Credit Programs Director Idaho Operators Conference, May 19, 2014
Title of the slide hereWater Trends: United States
Impaired Waters in the United Statesunder Section 303(d) of the Clean Water Act
Percentage of assessed rivers and streams reported to EPA as “impaired” or “threatened” water quality.
SOURCE: http://www.epa.gov/waters/ir/
Existing Conditions
Æ CONSERVATION REACTS to environmental challenges at a small scale (fish, wildlife, water quality, etc.), after degradation
Æ REGULATORY DRIVERS are present on small percent of overall impacts
Æ TECHNOLOGICAL SOLUTIONS employed by regulated entities are appropriate for some, but not all, new parameters
Need New Approaches to Meet NPS Challenge
SOURCE: http://www.deq.state.or.us
Point Source
Non-Point Source
86%
14%
Thermal impacts of non-point vs point sources,
Willamette River TMDL
For restoration to be viable compliance alternative...
CLEAR AUTHORITY: Æ Regulators must adopt and promote required
rules
CLEAR FRAMEWORK: Æ Approved standards and protocols for
measuring ecosystem services and implementing credit generating projects
CLEAR ROLES: Æ Third parties (such as The Freshwater Trust)
willing to assure delivery of compliance-grade credits with secure, turn-key projects
Three Keys for Restoration to Work
Crediting Protocol
Idaho, Oregon, and Washington water quality agencies (with technical oversight from U.S. EPA Region 10) working together on joint regional statement that defines recommendations for implementing water quality trading Facilitated by the Willamette Partnership and The Freshwater Trust
Title of the slide here
Æ Modeling regulatory policy outcomes
Æ Permitting calculations & projections
Æ Natural alternatives to end of pipe
Æ Program costs
Æ Implementation & billing schedules
Æ Logistics & supply chain
Æ Building compliance portfolios
Calculations & Quantification
Required Traditional Restoration vs. Required Compliance-Grade Credits
Traditional Restoration Steps Compliance-Grade Credit Generation Steps
Identify project site Identify project site
Fundraising Financing
Negotiate 20+ year contract with landowner
Collect pre-project data
Project design Project design
Estimated credit values
Implement Implement
Verification that implementation meets standards
Certification that credits meet accounting protocols
Credit registration
Monitoring and maintenance (Years 1 – 3) Monitoring and maintenance (Years 1 – 3)
Monitoring and maintenance (Years 4 – 20)
Annual payments to landowners (20+ years)
= Local Project Managers = The Freshwater Trust
Local RestorationPartners(e.g. Watershed Council)
Regulated Entity Projected to be Out of Compliance (e.g. Wastewater Facility)
Contracted Stream RestorationOrganization(e.g. Non-Profit)
Completed Project/Credit Generation(Uplift for ecosystem services through restoring streams)
Verified,Certified andRegistered Credits (Completed by a third-party)
Regulated Entity Purchases Credits to Meet Compliance
VERIFIED
CERTIFIED
REGISTERED
Local Nurseries
Local Contractors
Local Landowners
Local HeavyEquipmentOperators
Restoration Alternative Transaction Process
Project Funding & Recruitment
Credit Calculation
Verification,Certification
& Credit Registration
Project Implementation
Credit Sale
Local RestorationPartners(e.g. Watershed Council)
Regulated Entity Projected to be Out of Compliance (e.g. Wastewater Facility)
Contracted Stream RestorationOrganization(e.g. Non-Profit)
Completed Project/Credit Generation(Uplift for ecosystem services through restoring streams)
Verified,Certified andRegistered Credits (Completed by a third-party)
Regulated Entity Purchases Credits to Meet Compliance
VERIFIED
CERTIFIED
REGISTERED
Local Nurseries
Local Contractors
Local Landowners
Local HeavyEquipmentOperators
Restoration Alternative Transaction Process
Project Funding & Recruitment
Local RestorationPartners(e.g. Watershed Council)
Regulated Entity Projected to be Out of Compliance (e.g. Wastewater Facility)
Contracted Stream RestorationOrganization(e.g. Non-Profit)
Completed Project/Credit Generation(Uplift for ecosystem services through restoring streams)
Verified,Certified andRegistered Credits (Completed by a third-party)
Regulated Entity Purchases Credits to Meet Compliance
VERIFIED
CERTIFIED
REGISTERED
Local Nurseries
Local Contractors
Local Landowners
Local HeavyEquipmentOperators
Restoration Alternative Transaction Process
Project Implementation
Local RestorationPartners(e.g. Watershed Council)
Regulated Entity Projected to be Out of Compliance (e.g. Wastewater Facility)
Contracted Stream RestorationOrganization(e.g. Non-Profit)
Completed Project/Credit Generation(Uplift for ecosystem services through restoring streams)
Verified,Certified andRegistered Credits (Completed by a third-party)
Regulated Entity Purchases Credits to Meet Compliance
VERIFIED
CERTIFIED
REGISTERED
Local Nurseries
Local Contractors
Local Landowners
Local HeavyEquipmentOperators
Restoration Alternative Transaction Process
Credit Calculation
Verification,Certification
& Credit Registration
Credit Sale
Title of the slide here
Æ Program design and site prioritization
Æ Local & ecological priorities
Æ Contracting leases with public & private owners
Æ Site design based on reference conditions & quality standards & best professional judgement
Prioritization, Design & Contracting
Ken Denman Wildlife Area Riparian Planting
Pre-Planting Aerial View
Post-Planting Aerial ViewCottonwood/Alder Planting
Willow Planting
Title of the slide herePre-Project Conditions: February 2012
Photo Point 1B Photo Point 2A Photo Point 3A
Title of the slide hereAs Built Conditions: May 2012
Camera Point 1B Camera Point 2A Camera Point 3A
Year 1 Conditions: September 2012
Camera Point 1B Camera Point 2A Camera Point 3A
Year 2 Conditions: September 2013
Camera Point 1B Camera Point 2A Camera Point 3A
Verification & Registration
Calculating Credits
Credit Type Pre-project Post-Restoration Reduction
Temperature (kCals/day)
56,246,205 41,726,475 14,519,730
Phosphorus(lbs/year)
6 1 5
Nitrogen(lbs/year)
103 12 91
Sediment(lbs/year)
8,243 3,331 4,912
Title of the slide here
Æ Projects have pre-project data and are monitored annually
Æ Monitoring data is collected and stored by the StreamBank web platform, providing a searchable/reportable database of project results that can also be ported to other databases
StreamBank® app
Monitoring: Performance & Transparency
Case Study: City of Medford
Buyer: City of Medford (population 170,000)
Seller: 20+ landowners in Rogue River Basin
Broker: The Freshwater Trust
Driver: Projected excess heat under TMDL limits: 300 million kcals/day in 10 years
Options: Æ Giant holding pond to store water for 1 month
of each year: $16 Million Æ 10-15 miles of native riparian vegetation
restored and maintained for 20 years: $6.5 Million
Money Stays in Local Economy: Æ Money pays local restoration contractors Æ Farmers get annual lease payments Æ Restoration = 20 jobs per $1 Million spent
Rogue River Basin
Degraded Conditions
Degraded Conditions
Degraded Conditions
Implementation Actions
Implementation Actions
Implementation Actions
Four Keys for Communities
Restoration prevails on the four factors that matter...
Æ ECONOMIC: Restoration compliance generally far less expensive than technological solutions, spread over many years
Æ SOCIAL: Restoration keeps funding in the local community, creating jobs
Æ ECOLOGICAL: The restoration solution converts point-source investment into non-point source projects, with multiple environmental benefits
Æ TURN-KEY: Cities only pay for certified credits
Æ Roughly $10M in thermal credits currently contracted in Oregon with 5 buyers
Æ Contracted first nutrient credit demonstration program in Klamath Basin
Æ Quantified conservation analysis for Idaho Power Co. in support of Hells Canyon Complex FERC relicensing
Æ Developing metrics for Eugene source water protection program
Æ Active consulting throughout Northwest
Æ Regulatory clarity ÆCommunication asset development Æ FERC relicensing analysis ÆCredit program development
Active Programs
Water Quality Trading for Temperature & Nutrient Compliance: A Turn-key Solution
Alex Johnson, Ecosystem Credit Programs Director Idaho Operators Conference, May 19, 2014
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