Ohio River Basin Water Quality Trading Project

ORB WQT Stakeholder EngagementCollaborators:

Electric Power Research Institute

American Farmland Trust

Ohio Farm Bureau Federation

ORSANCO

Tennessee Valley Authority

American Electric Power

Hoosier Energy

Duke Energy

Exelon

Troutman Sanders

Kieser & Associates

UC Santa Barbara

Agencies:

USEPA

USDA

States:

Ohio

Indiana

Kentucky

Steering Committees:

WWTP

Agriculture

Power Plants

Environmental Groups

Steering Committees - Agriculture• Indiana State Department of Agriculture; • Kentucky Division of Conservation; • Ohio Department of Natural Resources; • USDA, ARS; USDA NRCS; • Kentucky, Ohio, and Indiana Farm Bureaus; • Illinois and Indiana State Conservationists; • National Pork Producers; • West Virginia Conservation Agency; • Kentucky Corn Growers Association• NC Department of Agriculture and Consumer Services; • Land Stewards, LLC.

Steering Committees• WWTP – National Association of Clean Water Agencies

(NACWA) host EPRI via their WQT working group• Power Companies – Duke, AEP, TVA, Hoosier, Exelon• Environmental Groups:

– The Nature Conservancy OH – Sierra Club OH & IN– OH Environmental Council – Environmental Law and Policy Center– MN Center for Env’t Advocacy– KY Waterways Alliance– Kentucky Resources Council– Environmental Defense Fund

Pilot Trading Plan Amendments• Stewardship Credits• Eligibility for inducements for early involvement in trading• Use of credits for SEPs• Farm specific variables rather than default values for

modeling• Use of ODNR Load Reduction Spreadsheet to determine

reductions from improved milkhouse waste handling

• Amendments will be signed all the signatories of the Pilot Trading Plan 1.0 for the Ohio River Basin Interstate Water Quality Trading Project

Contract Flow

All Credits “Certified” by State Permitting Authority

Evaluation Criteria for Cost-share• Primary Considerations

– Cost per pound for a 5 year credit

• Additional Considerations– A range of practices to gain max knowledge– SWCD and state priority concerns are addressed– Ancillary benefits addressed (habitat, rare species,

air quality, social, Highly Erodible Lands, Ag viability)

– Outreach potential

Upper Ohio

Middle Ohio

Pilot Trade LocationsPilot Trades (2013-2015)

25-30 farmer contracts

66,000 lbs N/yr

30,000 lb P/yr

Focus on KY, IN, OH

Water Quality Trades Summary

County BMPEstimated Total Project Cost Farmer Cost Share EPRI Cost Share EPRI Cost Share %

TN Credits (5 years)

TP Credits (5 years) TN + TP Progress

IN Ripley hay conversion $ 1,400 $ 350 $ 1,050 75% 315 320 635 in progressIN Ripley hay conversion $ 1,000 $ 250 $ 750 75% 115 235 350 in progressIN Ripley HUAP (Heavy use area protection $ 43,514 $ 33,514 $ 10,000 23% 4040 910 4950 in progress

IN Ripley HUAP $ 18,051 $ 9,051 $ 9,000 50% 1805 405 2210 completeinstallled but not verified

IN Dearborn HUAP $ 13,710 $ 3,710 $ 10,000 73% 3770 850 4620 completeinstallled but not verified

IN Ohio HUAP $ 6,548 $ 1,637 $ 4,911 75% 1440 325 1765 completeinstallled but not verified

IN Ohio HUAP $ 11,284 $ 2,821 $ 8,463 75% 3115 700 3815 in progress

IN Ohio HUAP $ 11,152 $ 2,788 $ 8,364 75% 2440 550 2990 completeinstallled but not verified

IN Wayne Cover Crop $ 21,420 $ 11,420 $ 10,000 47% 5055 2525 7580 completeinstallled but not verified

IN Wayne Cover Crop $ 16,000 $ 6,000 $ 10,000 63% 5040 2520 7560 completeinstallled but not verified

IN Switzerland Cover Crop $ 18,375 $ 8,375 $ 10,000 54% 1035 520 1555 in progressTotal $ 162,454 $ 79,916 $ 82,538 28,170 9,860 38,030

OH Mahoning Feedlot Runoff Controls $ 18,924 $ 8,924 $ 10,000 53% 2,745 655 3,400 startingOH Mahoning Feedlot Runoff Controls $ 32,680 $ 22,680 $ 10,000 31% 1,750 395 2,145 startingOH Columbiana Milkhouse Waste System $ 14,000 $ 4,000 $ 10,000 71% 2,535 1,260 3,795 startingOH Columbiana Milkhouse Waste System $ 14,000 $ 4,000 $ 10,000 71% 2,110 1,050 3,160 starting

Total $ 79,604 $ 39,604 $ 40,000 9,140 3,360 12,500

KY 5-7 applications in next 2 weeks

Cost per pound reduction: $1.32-$4.66

Heavy Use Area Protection (HUAP)Before

Runoff, erosion, sedimentation.

After

No erosion, no sedimentation, easier manure management,

proud farmer.

Project Documentation Credit CreationAffidavit of EligibilityFarmer ContractsSWCD Installation

CertificationBMP Verification ReportCredit Certification

Report

Credit TransactionsCredit Release LetterCredit Suspension NoticeCredit Cancellation noticeBuyer Contract

Credit Trading Registry Now Operational!

Example Purchase Summary

Transfer Details:Target Account Name: DEMO ORB SWCD ACCOUNT Transfer Date: 2013-09-16 00:00:00Comments: Transaction of Stewardship credits  Vintage Year: 2014   Quantity: 20.00000   Credit Type: TN lbs/year   Watershed (HUC4): Scioto   Sub Watershed (HUC10): Headwaters Scioto River

Best Management Practice : Cover Crops & Buffer StripsAncillary Benefits : Carbon Sequestration, Pollinator Habitat

Why buy pilot credits?

• Develop comfort • Public recognition for leadership• Flexible NPDES compliance schedule• Inclusion in Corporate Sustainability Reports• Application, and agency preference, towards

Supplemental Environmental Project (SEP) obligations

Outside Interest

• National Association of Regulatory Utility Commissioners – Resolution ORB WQT

• Upper Mississippi River Basin Authority• Mississippi River Cities Initiatives• Louisiana Department of Environmental

Quality

Next Steps

• Trading Plan amended in October 2013• Verification of credits by end of 2013• Credits will be sold in early 2014• Expect a press release in March 2014