Point Source Credit Buyers

221 views

Published on

Published in: Technology, Business
  • Be the first to comment

  • Be the first to like this

Point Source Credit Buyers

  1. 1. National Roundtable on Water Quality Trading Perspective of Point Source Credit Buyers Dave Taylor Director of Special Projects Madison Metropolitan Sewerage District Phone: 608-222-1201, ext. 276 Email: davet@madsewer.org
  2. 2. Background • Traditional regulatory focus is on point sources • New and/or increasingly stringent regulatory requirements • Potential limitations with “brick and mortar” approaches • Limited financial resources • Holistic, watershed based approaches needed • Trading needs to be in the toolbox
  3. 3. Phosphorus  Current MMSD effluent: 0.30 mg/l  New TP regs in 2010: 0.075 mg/l  Target design criterion: 0.05 mg/l  Filtration required: $124 M Increasing Regulatory Pressure
  4. 4. Water Quality Trading  Potential for lower cost  Engages multiple sources  Watershed focus  Potential for improved environmental outcomes  Value added  Without trading, some WQS may not be affordable or attainable
  5. 5. What Do Point Sources Need?  Market certainty  Stable, reliable market-market certainty!  Long term-we plan in 20+ year increments  Verifiable credits  Broker  Regulatory certainty  Includes legal framework  Regulatory flexibility  Time needed to see real water quality improvements can be lengthy and project/location specific  Example-longer permit cycles or compliance schedules  Watershed based permitting
  6. 6. What Do Point Sources Need? Barriers Minimized  Trade ratios that don’t remove economic incentive  Explicit + “hidden”  Trade ratios that are based on sound science and consider ancillary benefits  Baselines driven by regulatory requirements  Geographic scope that isn’t artificially constrained  Credit lifespan not artificially constrained PI = 10 PI = 4 Ag Performance Standard (PI = 6) Baseline example
  7. 7. Some Closing Thoughts  POTWs will only support WQT markets that are environmentally- effective  POTWs need permit assurances-”risky” to rely on a 3rd party  Watershed-based permitting approaches help achieve goals  Outcomes matter  Need for standards, based on science, that can be applied universally  Policies need to remain flexible to cater to the unique needs and characteristics of each market and watershed

×