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Nutrient Trading Inventories: How Farmers Can Better Understand the Chesapeake Bay TMDL & Can Find

“Value” In Nutrient Trading Tool Inventory

Dana York, Green Earth Connection, Bob Ensor, Howard SCD

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The Chesapeake Bay• For more than 300 years, the Bay and its tributaries have sustained the region’s economy and defined its traditions and culture.

• It is 64,000 Square Miles and the largest most biologically diverse estuary in North America and the third largest in the world.

• Land‐to‐water ratio is 14:1; largest of any coastal water body in the world. Average depth of 21 feet. 

• Supports more than 3,600 species of plants, fish and animals

• The Bay watershed is home to almost 17 million people. About 150,000 new peoplemove into the watershed each year.   

• Tens of thousands of streams, creeks, and rivers are resources for communities throughout the watershed. 

• 77,000 principally family farms.

5

Nitrogen Delivery By Sector

66

Regional Delivered Nitrogen

77

Phosphorous Delivery By Sector

88

Regional Delivered Phosphorous

99

295 Monitoring Programs by subject areas in the Chesapeake Bay (June 2009)

NUMBER OF MONITORING PROGRAMS BY SUBJECT AREA

0

20

40

60

80

100

120

AIR

QU

ALI

TY

BA

CTE

RIO

LOG

ICA

L

BEN

THIC

BIR

DS

CLI

MA

TOLO

GIC

AL

FISH

ERIE

S

GR

OU

ND

WA

TER

MET

EOR

OLO

GY

OB

SER

VIN

GSY

STEM

PHYT

OPL

AN

KTO

N

POIN

T SO

UR

CE

RA

DIO

LOG

ICA

L

SAV

SHEL

LFIS

H

TOXI

CS-

SED

IMEN

T

TOXI

CS-

TISS

UE

TOXI

CS-

WA

TER

WA

TER

QU

ALI

TY

WIL

DLI

FE

ZOO

PLA

NK

TON

Chesapeake Bay Model

1111

Chesapeake Bay Partnership Modeling Tools

13

Atmosphere FertilizerManure

Runoff

Load reductions attributed to upland benefit employing

“efficiencies”• Efficiencies can vary by hydro-

geomorphic region

Non-Point Source Practices and ProgramsPractices With Nutrient and Sediment Reduction Efficiencies

BMP

Water Quality

1616

Habitats/Lower Food WebBay Measures

Reducing Pollution

What is the Chesapeake Bay TMDL?• Referred to as a “pollution diet” for the Chesapeake Bay, TMDL is the Total 

Maximum Daily Load of nutrients and sediment that can enter the Bay while still achieving water quality standards.

– Established by the EPA under authority of the federal Clean Water Act of 1972.– Responds to consent decrees in federal court cases due to insufficient progress and poor water 

quality in the Bay, despite extensive restoration efforts over the past 25 years.– The Chesapeake Bay TMDL identifies pollution reductions for the entire Bay watershed, including 

part of six states (Delaware, Maryland, New York, Pennsylvania, Virginia and West Virginia) and the District of Columbia. Adopted in 2010, it is the largest TMDL ever developed by the EPA.

– The plan requires full implementation by 2025, with at least 60 percent of actions completed by 2017.

– Two year milestones to measure incremental progress.– The EPA established specific watershed‐wide pollution reduction goals for the Bay:

• 25 percent reduction in nitrogen. • 24 percent reduction in phosphorus.• 20 percent reduction in sediment.

– The Bay TMDL is comprised of 92 smaller TMDLs for individual segments,

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Nitrogen Loads Delivered to the Chesapeake Bay By Jurisdiction Point source loads reflect measured discharges while 

nonpoint source loads are based on an average‐hydrology year

20.7 18.9 18.8 18.2 17.8 17.1 16.8 16.8 16.5 13.6

120.0 114.7 109.8 109.2 108.4 106.6 105.7 104.4 103.9 102.8

71.4 71.9

8.25.0

3.5 3.6 4.1 3.5 2.9 2.9 2.9 3.5

2.4 2.4

81.1

59.158.1 56.7 57.7 56.9 56.2 53.7 53.2 54.8

37.1 37.3

7.5

7.77.3 7.1 6.8 6.6 6.6 6.7 6.7 6.6

4.8 4.7

90.5

79.078.4 77.8 75.4 74.4 73.1 73.9 73.8 71.9

52.1 51.4

5.9

5.55.1 5.0 4.9 4.9 4.8 4.6 4.6 4.5

3.0 2.9

175

17 130

50

100

150

200

250

300

350

400

1985 2000 2001 2002 2003 2004 2005 2006 2007 2008 Strategy StateCap

Goal

mill

ion

lbs.

/yea

r

NY PA DC MD WV VA DE

333.9

289.9 281.1270.2

175

266.3277.7 275.1

262.9 261.9 260.7

184.4 183.1

Phase 4.3 Data

Watershed Implementation Plans• The Bay TMDL requires all states in the Chesapeake Bay 

region to develop Watershed Implementation Plans (WIP) to meet specific pollution reduction goals.

– The WIP details how and when the states will meet pollution allocations for each sector in each waterway segment.

– The Watershed Implementation Plan includes specific strategies for each of the major sources of pollution in the Chesapeake Bay Watershed. Four major sectors are:• Wastewater treatment plants. • Agricultural runoff. • Urban/suburban storm water runoff. • Onsite wastewater/septic systems.

1919

EPA TMDL

MDTMDL

Watershed TMDL

County Watershed 

TMDLCo 

WIP II

Sectors

Agriculture

Stormwater

WWTP

State,Districts

State, Counties

Farm Cropland Acres in Watershed TMDL 

Inventory

Cost Shared BMPs and…

• Non Cost Shared Voluntary BMPs meeting NRCS Specs

• Resource Improvement Practices (Farmer Funded)

• Out of contract lifespan, still functional practices

Aggregate  and Run through Bay Model at all political levels

Is TMDL Met?

What More Needs to be done?

Arms Length Verification

Potential Nutrient Credits (N, P, Carbon, Sediment)CBNTT=$$$

Septic

Buyer

Seller

NutrientCredits

Compensation ($)

New CBNTT Tool: Agricultural Nutrient Tradingin Maryland

Nutrient Trading Baseline and Credit Calculation Example

MDA uses the CB Nutrient Trading Tool for Agricultural Nutrient Trading Assessments

• The CBNTT is developed by the World Resources Institute. It is used to complete the baseline and future trading scenarios.

• The MDA program was created to provide Maryland farmers payments for conservation practices on their farms.

• These practices provide offsets to address new or increased loads associated with a growing population.

Assessing Credit Generation Potential

Who May Sell Agricultural Credits?● Any generator of agricultural non-point source loads:

○ Farm owners, landowners○ Renter or lessee that can demonstrate

permission by the owner to Sell credits● Aggregators● Maryland state entities● Parties who remove agricultural nutrients from the environment

Eligibility of Agricultural Generators to Sell Credits

A current nutrient management plan,

An updated Soil and Water Conservation Plan,

Including, if applicable, a Waste Management System Plan for the entire farm operation.

In order to sell nutrient credits as part of this program, agricultural credit generators must meet the following requirements:

Key Principle #1: Must meet Baseline first. Key Principle #2: Must comply with all laws and regulations.Key Principle #3: BMP’s funded by federal or state cost-share can not be used to generate credits during their contract life.Key Principle #4: No loss of productive farmland through conversion.Key Principle #5: Trades must result in a net decrease in loads (10% retirement factor). Key Principle #6: Practices only count once they are installed & verified.

6 Key Trading Principles

Annual Verification and Inspection

Trading contracts will require annual verification and reporting.

Credits generated by annual practices, such as cover crops, will require inspection twice during the annual life.

Structural BMP’s inspections are required once a year.

The Maryland Department of Agriculture (or its designee) will perform annual spot checks on a minimum of 10% of all traded Agricultural credits.

Potential BMP’s Load Reductions                  (N Lb/Ac/Yr)Continuous No‐Till ` 4.61Riparian Forest Buffers    27.28Riparian Grass Buffers    16.92Wetland Restoration       27.28Tree Planting       13.57Cover Crops     9.48Off – Stream Watering w/Fencing    6.79Off – Stream Watering w/o Fencing  3.40Animal Waste M.S.: Livestock     531.00Animal Waste M.S.: Poultry      210.00Barnyard Runoff Control/Loafing Lot 

Management      69.00

Agricultural Non-Point Source Credit Potential

Early Howard County MDNTT Results:

MDNTT Howard County Results* 

Farm  Baseline Met? N Red EOS N Red to BayBay N Credits Generated P Red EOS P Red Bay

P Credits Generated

Farmer 1 N Only 21.9 2.6 3 0 0 0

Farmer 2 Yes 42.6 35.8 36 7.5 5.4 5

Farmer 3 Yes 10.3 1.2 1 4.7 3.4 3

Farmer 4 Yes 48.1 5.8 6 10.3 7.4 7

Farmer 5 N Only 9.4 7.9 8 0 0 0

Farmer 6 Yes 443.1 367.8 368 16.4 15.6 16

Farmer 7 Yes 42.2 35.5 35 18.2 13.1 13

Farmer 8 N Only 76.3 9.2 9 0 0 0

Farmer 9 Yes 304.9 36.6 37 20.3 14.6 15

Farmer 10 Yes 217.1 26.1 26 2 1.4 1

Farmer 11 N Only 485 58.2 58 0 0 0

Farmer 12 Yes 173 20.8 21 7.5 5.4 5

SUBTOTAL 1873.9 607.5 608 86.9 66.3 65

*Version 2 MDNTT

If Maryland Counties are going to Meet the Requirements of the TMDL and allow Continued Growth—Agricultural Offsets can Be the Answer!

• Trading will give developers hope that if they can meet part of the need (80‐90%)‐‐ then through purchase of Agricultural offsets they will be able to complete the project (State Implementation Strategy TBD by 2014?)

• Agricultural offsets can provide funding to help farmers continue to keep conservation practices on the ground to meet the TMDL and potentially help install additional conservation practices on their land.

Early CBNTT Results in PA and VA

• Virginia‐ Trading Policy and Tool is Not Finalized – Currently they are Implementing a Resource Management Plan policy‐ Calibration of CBNTT was done using the RMP Guidelines and a TMDL Baseline.  Results were mixed.

• Pennsylvania‐ In process of developing a new Trading Policy and looking at CBNTT.– Early Calibration runs in Lancaster County would say 

none of farms using Manure could meet the TMDL.

Model Calibration VS Policy Reactions

When new tools first start they require data to calibrate the tool.  Data provides accuracy but also affects policy decisions.  We need science and policy to meet in the middle!

ScienceWhere we need to be

Policy

CBNTT Demonstration

QUESTIONS ?

For Information Contact:

Dana York- Green Earth Connection-dyork818@yahoo.com, 410-708-6794

Robert Ensor- HSCD- District Manager-rensor@howardcountymd.gov, 410-489-7987