The document discusses nutrient trading and how the Chesapeake Bay Total Maximum Daily Load (TMDL) establishes pollution limits for the Chesapeake Bay watershed. It provides background on the Bay, sources of nitrogen and phosphorus pollution, and the modeling tools used to determine pollution reductions required from different sectors. Watershed Implementation Plans require states to identify strategies to meet sector-specific allocations. The Chesapeake Bay Nutrient Trading Tool can help farmers understand their baseline pollution contributions and quantify additional reductions from best management practices to generate credits that can be sold through nutrient trading programs.

1. 11
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

2. 2
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
people move 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. 5

6. Nitrogen Delivery By Sector
66

7. Regional Delivered Nitrogen
77

8. Phosphorous Delivery By Sector
88

9. Regional Delivered Phosphorous
99

10. 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
AIRQUALITY
BACTERIOLOGICAL
BENTHIC
BIRDS
CLIMATOLOGICAL
FISHERIES
GROUNDWATER
METEOROLOGY
OBSERVING
SYSTEM
PHYTOPLANKTON
POINTSOURCE
RADIOLOGICAL
SAV
SHELLFISH
TOXICS-SEDIMENT
TOXICS-TISSUE
TOXICS-WATER
WATERQUALITY
WILDLIFE
ZOOPLANKTON

11. Chesapeake Bay Model
1111

12. Chesapeake Bay Partnership Modeling Tools

13. 13
Atmosphere
Fertilizer
Manure
Runoff
Load reductions attributed to
upland benefit employing
“efficiencies”
• Efficiencies can vary by hydro-
geomorphic region
Non-Point Source Practices and Programs
Practices With Nutrient and Sediment Reduction Efficiencies
BMP

16. Water Quality
1616
Habitats/Lower Food Web
Bay Measures
Reducing Pollution

17. 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,
17

18. 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
8.2
5.0
3.5 3.6 4.1 3.5 2.9 2.9 2.9 3.5
2.4 2.4
81.1
59.1
58.1 56.7 57.7 56.9 56.2 53.7 53.2 54.8
37.1 37.3
7.5
7.7
7.3 7.1 6.8 6.6 6.6
6.7 6.7 6.6
4.8 4.7
90.5
79.0
78.4 77.8 75.4
74.4 73.1 73.9 73.8 71.9
52.1 51.4
5.9
5.5
5.1 5.0 4.9
4.9 4.8 4.6 4.6 4.5
3.0 2.9
175
17 13
0
50
100
150
200
250
300
350
400
1985 2000 2001 2002 2003 2004 2005 2006 2007 2008 Strategy State
Cap
Goal
millionlbs./year
NY PA DC MD WV VA DE
333.9
289.9
281.1
270.2
175
266.3
277.7 275.1
262.9 261.9 260.7
184.4 183.1
Phase 4.3 Data

19. 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

24. EPA
TMDL
MD
TMDL
Watershed
TMDL
County
Watershed
TMDL
Co
WIP II
Sectors
Agriculture
Storm
water
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)CBNT
T=$$$
Septic

25. Buyer
Seller
Nutrient
Credits
Compensation ($)
New CBNTT Tool: Agricultural Nutrient Trading
in Maryland

27. Nutrient Trading Baseline and Credit Calculation Example

28. 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.

29. 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

30. 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:

31. 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

32. 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.

33. Potential BMP’s Load Reductions (N Lb/Ac/Yr)
Continuous No‐Till ` 4.61
Riparian Forest Buffers 27.28
Riparian Grass Buffers 16.92
Wetland Restoration 27.28
Tree Planting 13.57
Cover Crops 9.48
Off – Stream Watering w/Fencing 6.79
Off – Stream Watering w/o Fencing 3.40
Animal Waste M.S.: Livestock 531.00
Animal Waste M.S.: Poultry 210.00
Barnyard Runoff Control/Loafing Lot
Management 69.00
Agricultural Non-Point Source Credit Potential

34. Early Howard County MDNTT
Results:MDNTT Howard County Results*
Farm Baseline Met? N Red EOS N Red to Bay
Bay 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

35. 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.

36. 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.

37. 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!
Science
Where we need to be
Policy

38. CBNTT Demonstration

39. QUESTIONS ?

40. 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