Water quality credit trading as an incentive for ag water management bmps what s needed
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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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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


Ag water management bmps
Ag Water Management BMPs 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


New reduction requirements
New Reduction Requirements Management BMPs:

  • 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


Trading barriers for bmps
Trading Barriers for BMPs Management BMPs:

  • Operational benefits/challenges for producers

  • Cost competitiveness of credits

  • Demand for credits

  • Science/regulatory questions

  • Transaction fees

  • Scale (ability to supply credits)


What needs to change
What needs to change… Management BMPs:

  • 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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