Trading in Nutrient Markets
Policy, Administration, and Market Mechanics
Brent L. Fults – Founder 1999
CBNLT (Chesapeake Bay Nutrient Land Trust) & ESS (EarthSource Solutions)
POLICY or MARKET ?
CLEAN WATER IN THE BAY…
CBNLT entrenched itself as a
stakeholder in 2008. Participating in
2009, 2010, 2011 & 2012 Legislation.
CBNLT follows the “First Step” model
developed as a Bay Cleanup Strategy
Covering VIRGINIA Bay watersheds:
James, York Rappahannock, potomac
Policy created a market, markets
FIRST STEP M ODEL
Complexity in the navigation and coordination of public
programs, agricultural landowners, regulatory agencies,
permit process, financial assurance placement, credit
Timeline expectations of credit providers, landowners and
Policy – Education of all sectors has created interest and
concerns by the “just say no” groups.
DEQ – Agency support is broad, permit opportunities
Locality opposition to trading: It’s the Law folks.
WHO WILL STEP FORWARD: DEQ or Stakeholders
and resolve the stand off.
This is a Big Question
Efficiency of Credits
Land use variations
Goals of credit program / landowners
Market Demand (nonpoint) VA VSMP
Allowable triggers resolved with
100% privately funded – NO GRANTS
Water quality improvements are REAL
Future of Nutrient Credit
Credits used for VA DEQ VSMP: Gas station, parking lot,
condos, failing BMP, and compliance actions thru
Users – Private / VDOT/ Public MS4 programs soon to
create a buy down of point and non point credits
Policy / EPA – Federal support in Virginia
Policy/ DEQ- State support incredible
Changing Certification regulations in 2014: Get your bank
soon, its real complicated.
Growing demands: VSMP, VDOT, MS4 buydown, failing
Improvements to Bay are working. Trades are occuring. 12
facilities, 4 watershed, and 40 trades in last 9 months.
Nonpoint VSMP is the Market:
9860 +- Active permits.