Water Quality Trading in Ohio

1
Water Quality Trading in Ohio
WV Potomac Water Quality Bank and Trade
Program Steering Committee Meeting May 1,
2007 Gary Stuhlfauth Ohio EPA Division of
Surface Water gary.stuhlfauth_at_epa.state.oh.us (614
) 644-2026
2
Upper Little Miami River Provisions allowing
trading to meet Phase 2 phosphorus reductions are
included in the NPDES permits for POTWs.
3
Sugar Creek The most significant sources of
aquatic life impairment are habitat alteration,
sediments/siltation, and nutrient enrichment.
Alpine Cheese will fund nonpoint source projects
to generate phosphorus credits. SWCD will act as
third party broker.
4
Great Miami River Basin
The Miami Conservancy District is acting as a
third party broker. POTWs will fund nonpoint
source projects in the Stillwater River sub-basin
to generate phosphorus reduction credits.
www.miamiconservancy.org/water/quality_credit.asp
5
Rules for Water Quality Trading Ohio
Administrative Code Chapter 3745-5 (Effective
January 1, 2007)
Where can trading occur? Trading can occur in a
watershed, in a TMDL area, or in any other area
designated by the director. What pollutants can
be traded? Trading of bioaccumulative chemicals
of concern is prohibited. This includes mercury.
Other pollutants can be traded, provided loading
reductions can be quantified and expressed in
clearly defined units.
6
What are baselines and how are they set? A
baseline is the level of pollutant reduction that
must be achieved before water quality credits can
be generated. For a point source, the baseline
could be the wasteload allocation from a TMDL, an
existing water quality based effluent limit, a
technology-based performance standard, or the
existing discharge level, whichever is lower.
For a nonpoint source, the baseline is the
pollutant load associated with existing land uses
and management practices. Existing management
practices must comply with any federal, state or
local requirements.
7
Can nonpoint source load reductions funded by
grant dollars be used to generate credits? No.
Reductions funded under a federal grant program
can only generate credits in proportion to the
percent local contribution. 319 projects can
not generate credits. How are credits generated?
Credits are generated by pollutant reductions
that are in excess of baseline requirements, that
occur within a specified period of time, and that
are greater than those necessary to meet a
regulatory requirement. How are NPS loading
reductions quantified? The rules specify using a
load reduction spreadsheet maintained by Ohio
DNR. Other methods may be used if acceptable to
the director. Monitoring data can be used if it
is available.
8
What are trading ratios and how are they set? The
rules specify trading ratios but allow the
director to set alternate ratios. For PS/PS
trade, the ratio is 11. For PS/NPS trade, the
ratio is 21 where there is not an approved TMDL,
and 31 when there is an approved TMDL . Is
monitoring required? Yes. Monitoring is required
to evaluate the effectiveness of BMPs and to
determine impacts to ambient water quality.
Level 2 data requirements of the Credible Data
Rule provide guidance on study plans and
laboratory quality assurance.
9
Whos going to do all of this work? The rules
are voluntary. They define a role for qualified
soil and water conservation professionals in
trading programs that involve nonpoint source
BMPs. How is the liability of NPDES permit
holders addressed? The rules require a permit
holder to notify the director upon discovering
that its credits are insufficient to achieve
compliance with a permit limit. Within 90 days,
the permit holder must either obtain replacement
credits or reduce its discharge. Trading plans
are required to have a mechanism for addressing
this situation.