This project builds on Kalamazoo River and Michigan-based trading experiences to develop, test and implement "model" tools and infrastructure necessary to enable functioning water quality trading markets. Funding will support agricultural BMPs to achieve load allocation goals in an EPA-approved Lake Allegan/Kalamazoo River phosphorus TMDL. Reductions will be used to test marketplace instruments and apply agricultural participation and credit banking schemes. Trading approaches will be instituted that allow for voluntary participation, insulate producers from NPDES permit liability and can be delivered consistently through traditional programs. Transferable marketplace and regulatory instruments developed here will: facilitate access to trading programs; minimize transaction and administrative costs; connect buyers and sellers; facilitate decision-making, and; quantify and track reductions. Tools will be integrated with existing regulatory programs to foster active markets.The Gun Lake Tribe is working with Kieser & Associates, the World Resources Institute and local partners to:
- Develop tools needed for nutrient trading to occur on a watershed basis.
- Advance the implementation of EPA Trading Policy at the watershed level through the direct application and development of trading instruments and markets in an actual TMDL setting that can readily accommodate such tools.
- Create a model on-line watershed-based trading registry building on existing tools such as NutrientNet, the Kalamazoo River Point Source Tracking system and a TMDL-established trading framework.
- Integrate into NutrientNet and test model quantification protocols for agricultural and urban storm water BMPs and other NPSs using Michigan's Trading Rules and other EPA methodologies.
- Test these tools within the Kalamazoo River TMDL via the direct use by point and non-point source stakeholders required to make phosphorus reductions.
- Develop the State of Michigan's on-line water quality trading registry per Michigan rules.
- Review trading instruments, tools and applications through a national perspective via the Environmental Trading Network.
