Great Lakes Trading
Network
Summary of the November 8, 2000
Conference Call
DRAFT
The call began at 11:00 am EST. Mark Kieser, Mark Crimmins, Jim Klang, Linda Stoll, Jim Pinkham,
Patricia Zurita and Allison Wiedeman participated. The call was chaired by Dave Batchelor.
The summary of the October 11 conference call has been
finalized (attached).
Program Updates:
WRI Nutrient Net
Patricia reported
that the prototype test went well. Eighteen
people participated and 'trading was active'.
Paul told me that almost cornered the market. Staff from WRI and Texas A&M tested the model for user-friendliness
and simulated phosphorus trading. PS/NPS trading was conducted at a 2:1 trading ratio with agricultural
reduction costs of about $6.00 per pound. The control cost for point sources was at or
above $15.00 per pound. Around
13,000 credits were traded at an average of $5.63/credit. WRI will be updating the model based on feedback from the test.
Another test is being planned for the first two weeks of December.
Patricia will send
members of the GLTN a summary of the test sometime next week. WRI is exploring opportunities for partnerships
with larger firms to obtain better technology and expand the Nutrient-Net.
Patricia reminded
folks of the need to finalize the MOUs for Minnesota, Chesapeake Bay,
Michigan and the Lower Boise.
Water Quality Trading and Green House Gas Reductions
The group spent some
time talking about the relationship and opportunities for changes in agricultural
practices to be traded in local water quality and regional air emission
markets. Carbon dioxide and nitrous
oxide are two of the most potent green house gases. Studies and presentations that will be given
at the Hague next week will show that changes in agricultural practices
that incorporate more carbon in the soil and reduce evaporative loss of
nitrous oxide can provide significant benefits to both air and water quality.
Jim Klang pointed
out that in Minnesota much of the agricultural land is tiled and that
implementation of cropping/tillage practices that incorporate more nitrogen
in the soil can result in higher nitrate levels in ground water and tile
discharges to surface waters. Jim
also shared Minnesota's "additionally" policy with the group. Minnesota's policy does not allow required
reductions to be tradable. This
would affect trading in multiple markets in Minnesota and other programs
with similar provisions.
EPA Final Regulations
Jim Pinkham brought
up the fact that EPA has intentionally not included provisions for trading
in final regulations. Jim prepared
the attached document in which he extracted references that EPA made to
trading in the final TMDL rule. This
is very interesting and may be of some help to those in the group that
are trying to figure out how trading can occur in the context of TMDLs.
GLTN Dedicated Website:
Mike Crimmins has the dedicated GLTN website up and running.
He is finalizing links and adding material to the Programs, Links
and Conferences pages. Mike invited the group to provide him with
comments on the existing site. The
group was also asked to provide program updates for us to add to the website
so we can keep it current.
The website address is
http://www.gltn.org.
Check this site out, it is really cool.
The GLTN
There was some discussion on the relationship of the
GLTN to WRI's Nutrient-Net and how these two entities could be used to
work for the benefit of the programs and projects represented on the GLTN.
Representatives of the Fox Wolf Basin 2000 expressed
an interest to participate with WRI and the Nutrient Net.
While both the GLTN and WRI Nutrient Net are providers
of information, the GLTN has focused more on policy and program content
while the Nutrient Net is seen as more of a tool to facilitate trading
once markets are established by individual programs.
The group was given a question as to how a collaborative effort between the GLTN, WRI and individual projects on the GLTN could be developed to secure additional funding. Additional discussions on this will follow on subsequent calls.
Next Steps
I am working with folks on the GLTN to prepare a 'planning grant' proposal in conjunction with seeking funds for administering or passing grants through to trading projects and brokering trades. If all goes well this will be completed for discussion at the next call.
Next Call
The next call will be held on December 19, 2000 at 11:00 am EST. The call will last 1 hour. I will be providing an agenda in about 2 weeks.
If you have a project or program update or other topic of interest,
please let me know.
