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MESERB Nutrient Trading Committee

In 2003, the MPCA developed a Total Maximum Daily Load (TMDL) for phosphorus to address dissolved oxygen sags in the Minnesota River near Jordan during summer drought conditions.  MESERB participated in the 45-member Advisory Committee that reviewed modeling done by Tetra Tech EM, Inc., and offered input on implementation strategies.  The final TMDL report and responses to public comments may be viewed on the MPCA website at www.pca.state.mn.us/water/tmdl/index.html.

 

In response to concerns about the TMDL’s technical basis and implementation plan, a core group of 11 cities and one business formed the Minnesota River Basin Nutrient Trading Committee to negotiate an interim nutrient reduction target with the MPCA, to be achieved on a group basis through 2009 by point-point trading.  At that time, additional information will be available from MESERB’s Phosphorus Initiative, an update of the 1985 WLA, a turbidity TMDL for the Minnesota River, and a TMDL for Lake Pepin to inform what additional phosphorus reductions (if any) may be necessary.  In the meantime, however, point sources can achieve phosphorus reductions without delay by using a proven, cost-effective technique.

 

How Trading Works

With MESERB’s guidance, the Committee is negotiating an interim (five-year) nutrient reduction target with the MPCA, which will eventually be enshrined in a watershed NPDES permit.  Once this is completed, the participants will agree on a price or set of prices per pound of phosphorus removed from wastewater effluent.  Facilities with high removal costs may benefit from buying credits at a lower price; facilities with low removal costs may benefit from selling credits to help cover their costs.  See the Nutrient Trading Fact Sheet for more information.

 

Who May Trade

All municipal and industrial point sources in the Minnesota River Basin are welcome to participate in the trading program; however, MESERB is targeting in particular those point sources that received a phosphorus wasteload allocation under the TMDL as they may receive the most benefit from trading.  Point sources must join MESERB as either a Joint Powers Board or associate member to participate.  Facilities that do not anticipate community growth or facility expansion in the next 10-15 years might not find trading beneficial.

 

How to Participate

Participants in MESERB’s nutrient trading program must be MESERB regular or associate members.  Cities joining both MESERB and the Nutrient Trading Committee receive a first-year discount on their MESERB dues of $0.15 per wastewater/water billing account.

 

1.  Join MESERB as a Joint Powers Board or associate member.  Information on how to join is available on MESERB’s Membership Information page.  Cities joining both MESERB and the Nutrient Trading Committee pay only $0.60 per wastewater/water billing account for their MESERB membership in the first year.

 

2. Click here for Nutrient Trading Committee participation.  Membership forms are available for governmental units and businesses.  The annual cost for MESERB regular members is $0.25 per wastewater/water billing account, prorated to the month joined; the cost for MESERB associates is $50 per pound of TMDL wasteload allocation (See Table 6.6 on pages 41-42 of the Lower Minnesota River TMDL report available online: www.pca.state.mn.us/publications/reports/tmdl-final-lowermn-doreport.pdf).  If you do not have a TMDL wasteload allocation but want to participate, please contact MESERB for more information.

 

3. Nutrient Trading Committee participants are responsible for a portion of the program’s start-up costs.  This one-time fee varies by the facility’s size but is roughly about $1,000 - $1,500.  Please contact MESERB for more information about this fee.

 
MESERB Services MESERB Accomplishments Membership information Phosphorus Initiative  Nutrient Trading Committee  Contact MESERB

06 February 2007 01:31 PM

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