Cy Jones


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Cy Jones

  1. 1. Regional Nitrogen and Phosphorus Trading in the Chesapeake B W t h d Ch k Bay Watershed Cy Jones World Resources Institute Building New Clean Water Networks in China Nanjing University, Nanjing, China January 14, 2010 1
  2. 2. Pennsylvania Maryland West Virginia Delaware Virginia New York Washington, D.C.
  3. 3. Water Quality Problems High Nitrogen, Phosphorus, and Sediment Loads Low Dissolved Oxygen Water Clarity Ecological Health E l i lH lh Algae Blooms, Including HAB
  4. 4. 2009 Hampton Roads Virginia Roads, 2007 Potomac River Harmful Algae Bloom Fish Kill
  5. 5. Sources of Nitrogen and Nit d Phosphorus
  6. 6. Wastewater Treatment Plants Urban stormwater Agriculture Atmospheric Deposition
  7. 7. Chesapeake Bay
  8. 8. Nitrogen and Phosphorus Ph h Loadings and Reduction Goals
  9. 9. Nitrogen Loads Million Pounds per Year 300 283.7 283 7 42.1 250 14.7 200 200 51.8 Goal Other 150 44.3 SepticSystems Wastewater Urban Runoff 100 Agriculture 130.8 50 0 1 2008 Load Goal 2
  10. 10. Phosphorus Loads Million Pounds per Year 18 16.4 16 2.1 15 14 3.4 12 Goal 10 3.1 Other Wastewater 8 Urban Runoff Agriculture 6 4 7.8 2 0 20081Load 2 Goal
  11. 11. Bay TMDL Development Process Plans What total loading What is an How should the state/basin for f equitable it bl load b l d be sub-allocated to: b ll t dt nitrogen, phospho distribution of the individual point sources, non- rus, and sediment watershed-wide point source sectors, and can the Bay loadings to the sub-watersheds sub watersheds or counties? assimilate? states/basins? 13
  12. 12. U. S Government Non-government g President of the United States NGOs U.S. Congress Environmental Advocacy Federal Agencies Conservation Environmental Protection Agency Academic Community Department of Agriculture Businesses Many Others Citizens States Governors Legislatures State Agencies Environmental Protection Natural Resources Local Governments Public Schools
  13. 13. Costs
  14. 14. Cost of Nitrogen Reduction Dollars per pound of annual nitrogen reduction Average dollars per pound of annual nitrogen load 200 - 600 reduction Differential Costs in Per Pound Reductions Diff i lC i P P dR d i Create Trading Opportunities 92.40 92 40 Stormwater WWTP 47.40 Agriculture New Practices 21.90 15.80 7.00 6.60 4.70 3.30 3.20 3.20 3.10 1.50 1.20 Stormwater Stormwater WWTP Enhanced WWTP Native oyster Algal turf Cover Land Cons. Grassed Forest Restored or Forest retrofits mgmt for new upgrades NMP upgrades aquaculture scrubbing crops retirement buffers constructed tillage buffers harvest development wetlands -High- -Low- BMPs Average Cost of Selected Nitrogen Reduction Measures (D ll per pound of annual nitrogen reduction) A C t f S l t d Nit R d ti M Dollars d f l it d ti )
  15. 15. Nitrogen Control Cost Curve Nit C t lC tC Cost of nitrogen reduction Municipal ($/lb/yr) Reduction Goal Incremental nitrogen reduced (lb/year) Improve fertilizer p Manure efficiency Management Urban SW BMPs NOx Scrubbers Septic Upgrades Expand Cover WWTP denitrification WWTP denitrification WWTP denitrification riparian buffers Crops (8 mg/L) (5 mg/L) (3 mg/L) by 20%
  16. 16. Nutrient Trading Wastewater treatment plants buy and sell each p y other nitrogen and phosphorus credits or emission allowances. Wastewater treatment plants buy nitrogen and phosphorus load reductions from nonpoint sources, such as farmers. p ,
  17. 17. Nutrient Trading Lower cost Accommodate growth and development
  18. 18. Intrastate Trading (Current Situation) State Trading Programs St t T di P 11 Separate Trading Areas Pennsylvania 2 Maryland 3 Patuxent Virginia 5 West Virginia 1
  19. 19. Intrastate Trading (Current Situation) One Market •Allow more efficient matching of credit supply to credit demand; •Make the cheapest credits in the Bay p y watershed available to all buyers, not just those in a restricted geographical area; •Increase competition among credit sellers, leading to lower credit prices; •Preclude credit monopolies or artificially restricted supplies; artificially-restricted •Give credit suppliers access to many more potential buyers, thereby creating Patuxent incentives for the creation of credits; •Create additional opportunities for generating credits; and •Produce a more stable and reliable supply of credits; and
  20. 20. Cy Jones Senior Associate World Resources Institute 10 G. Street, NE, Suite 800 Washington, DC 20002 (202) 729-7899 g