Restoring Great Lakes Basin Water Through the Use of Conservation Credits and an Integrated Water Ba

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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
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Institutional Context

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

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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

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Project Goal (continued)
2. Select an actual vulnerable area in a
watershed to demonstrate, hypothetically, an
actual water conservation credit system
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A Vulnerable Area is an area where any increases
of water withdrawal may impact the aquifer and
the ecological functions that groundwater
provides
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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.

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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

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Water Conservation Credits Implementation Process
Gathering Inputs for Development Improvement
Developing a Conservation Credits System
Developing a Decision Support System Water
Balance Analysis 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
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New Water Users (Large Water Withdrawal) Or/and Ex
isting 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
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Current Advisory Team Members Representatives
from
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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 dont do Support any activities
of water user groups in withdrawing water in a
specific watershed or transferring outside the
Great Lakes Basin.
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• For more information about the project..
• Visit our web-site at
• http//www.iwr.msu.edu/research/projects.html