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Principal Investigators Dr. Jon Bartholic The Institute of Water Research & Dr. Sandra S. Batie

Restoring Great Lakes Basin Water Through the Use of Conservation Credits and an Integrated Water Balance Analysis System. Funding Source: The Great Lakes Protection Fund Total Grant Amount: $540,000 Project Duration: 24 months Starting Date: January 2005. Principal Investigators

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Principal Investigators Dr. Jon Bartholic The Institute of Water Research & Dr. Sandra S. Batie

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  1. Restoring Great Lakes Basin Water Through the Use of Conservation Credits and an Integrated Water Balance Analysis System Funding Source: The Great Lakes Protection Fund Total Grant Amount: $540,000 Project Duration: 24 months Starting Date: January 2005 Principal Investigators Dr. Jon Bartholic The Institute of Water Research & Dr. Sandra S. Batie Dept. of Agricultural Economics Michigan State University

  2. Institutional Context • Annex 2001---Regional Water Policy Framework • Water Legacy---Michigan • TMDLs/ Other Conservation Policies • Watershed Management Framework

  3. Project Goals 1. Provide a “road-map” for informed public decisions with respect to the permitting of water withdrawals to create a “market” for water conservation credits which: • Rewards existing land owners for water conservation efforts • Results in protection and restoration of vulnerable water ecosystems • Minimizes litigation costs

  4. Project Goal (continued) 2. Select an actual vulnerable area in a watershed to demonstrate, hypothetically, an actual water conservation credit system

  5. A Vulnerable Area is an area where any increases of water withdrawal may impact the aquifer and the ecological functions that groundwater provides

  6. Expected Outcomes & Associated Products • A road map to help implement a Water Conservation Credits Market • Water Conservation Credits System--- a watershed for project demonstration • Watershed Balance Analysis System--- water resources information system to support decision making • A User Assistance Interface and a Water Credit Transaction Web-Site--- end water users/decision makers • Advisory Team --- representatives from large public& private water use groups/conservation groups/state government agencies.

  7. Study Process • Gathering Inputs for Development & Improvement Inputs from Advisory Team Members • Developing a Decision Support System Water Balance Analysis System – integration of three hydrologic models • Developing a “Conservation Credits System” Laws &regulations, institutions,policy development, credit assignment and practices, education monitoring, dispute resolution mechanisms, and interaction with policy makers • Developing a User Assistance Interface and a Web Site Central data base for decision support system • Implementing a Conservation Credits System Vulnerability Mapping, Site Selection, a Hypothetical Demonstration Project

  8. Inputs from Advisory Team Comprised of Reps. From: • Environmental/Conservation Organization • Business/Industry/Utilities • Agriculture • State Planners • State government • Citizens User Assistance Interface Web-Site for Transactions Water Conservation Credits Implementation Process Gathering Inputs forDevelopment & Improvement Developing a Decision Support System “Water Balance Analysis System” Developing a “Conservation Credits System” • Law, regulations, and institutions • System development • Credits assignment vs. • Water conservation practices • Monitoring • Dispute Resolution • Education/interaction with policymaker Surface Hydrology Model Aquifer Model Aquatic Ecosystem Model Database Integration Implementing a Water Conservation Credits System Developing a Web Site for Transactions Developing a User Assistance Interface User Assistance Interface Site Selection Vulnerability Mapping Conservation Credits System Implementation (A Hypothetical Demonstration Project) Central Tracking Database

  9. New Water Users (Large Water Withdrawal) Or/and Existing Water Users (Large Increased Withdrawal) • Existing Water Users • Farmers • land owners • Industries • Business Vulnerable Area Potential Credit Seeker Potential Credit Provider Water Conservation Practices (BMPs) Willingness to purchase water credits to “Offset” an increment of water use Willingness to reduce water use to “Offset” an increment of water use Center for exchanging “Offset” credits UAI/Website

  10. Current Advisory Team MembersRepresentatives from:

  11. What we do… Our project is to provide an information based decision support system to inform policy decisions related to the Implementation of a Water Conservation Credits System. What We don’t do… Support any activities of water user groups in withdrawing water in a specific watershed or transferring outside the Great Lakes Basin.

  12. For more information about the project.. Visit our web-site at… http://www.iwr.msu.edu/research/projects.html

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