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Water Quality Credit Trading as an Incentive for Ag Water Management BMPs: What’s needed?

Water Quality Credit Trading as an Incentive for Ag Water Management BMPs: What’s needed?. James A. Klang, PE Senior Project Engineer Kieser & Associates, LLC 536 E. Michigan Ave., Suite 300 Kalamazoo, MI 49007. America’s Ag Water Management Summit October 12, 2011 Session 6: Future.

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Water Quality Credit Trading as an Incentive for Ag Water Management BMPs: What’s needed?

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  1. Water Quality Credit Trading as an Incentive for Ag Water Management BMPs: What’s needed? James A. Klang, PE Senior Project Engineer Kieser & Associates, LLC 536 E. Michigan Ave., Suite 300 Kalamazoo, MI 49007 America’s Ag Water Management Summit October 12, 2011 Session 6: Future

  2. Ag Water Management BMPs • Wastewater Treatment Plant compliance: • Total phosphorus • Total nitrogen • Urban Stormwater compliance: • Total phosphorus • Total nitrogen • Sediment • Flow; reductions in volume and peaks Producer voluntarily provides trading credits for: Can also create habitat

  3. New Reduction Requirements • Lake, river and stream nutrient criteria • Total phosphorus • Total nitrogen; or nitrite + nitrates • Total Maximum Daily Loads for: • Turbidity or sediment • Eutrophication • Biotic impairments • New discharge limits drive costly upgrades • Trading offers cost-effective alternative

  4. Trading Barriers for BMPs • Operational benefits/challenges for producers • Cost competitiveness of credits • Demand for credits • Science/regulatory questions • Transaction fees • Scale (ability to supply credits)

  5. What needs to change… • Regulate dischargers on a watershed basis • Allows for pooled funding for Ag BMPs at scale • Provide Ag more time/fewer restrictions • Address cost barriers by providing: • Credit estimation tools • Shared monitoring • Funding for field technical staff • Leveraged cost-share funding • Credit stacking • Options for producers to “profit” from trading

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