River Basin Center: Nutrient Trading

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research
a framework for trading phosphorus credits in the lake allatoona watershed

This project integrates research, education and extension activities to develop a framework for trading phosphorus (P) credits between point and nonpoint sources in the Lake Allatoona watershed in north Georgia. This watershed is an ideal site for applied research for several reasons. First, according to the EPA Allatoona Phase 1 Clean Lakes Diagnostic Feasibility Study, unless measures are taken to control nonpoint sources of sediment and P in the watershed, Lake Allatoona will ultimately be unfit for drinking or recreational purposes. Second, P loading restrictions are now in place for Lake Allatoona and EPA and Georgia EPD have committed to developing a nutrient TMDL for the lake in 2004. Finally, we have in place a strong partnership between the University of Georgia and the governmental bodies and major stakeholders within the watershed. Using the Lake Allatoona watershed as a case study, we plan to work with stakeholders to develop a management program that is based on the premise of trading P credits, recognizing that nonpoint source management practices that reduce P are also likely to reduce sediment and FC loads.

The overall objective is to establish a framework for trading P credits between point sources (there are eight wastewater treatment plants) and agricultural/forestry non-point sources in the Lake Allatoona watershed. To accomplish our objective we will perform the following tasks:

Estimate the annual using load of P, sediment, and FC entering Lake Allatoona using historical stream and water quality data and data collected as part of this project. We will use upstream and downstream sampling around common agricultural operations to develop region-specific estimates of pollutant loads.
Calibrate a semi-distributed watershed mode (Hydrological Simulation Program - Fortran, HSPF) using the monitoring data and use it to identify the spatial distribution of the current point and nonpoint sources of P, sediment, and FC entering Lake Allatoona.
Develop scientifically-based trading ratios using uncertainty analysis of the model for all of the best management practices that are likely to be used by agricultural and forestry nonpoint sources. These ratios will vary spatially in that best management practices implemented in the upper reaches of the watershed are likely to require a higher trading ratio than practices implemented near the lake.
Perform a cost analysis to see if trading between point and nonpoint sources is likely to occur. We will do this by comparing the cost that a point source would incur through a direct reduction in P load (by upgrading water treatment, for example) compared to the cost of buying credits from a nonpoint source.
Investigate different frameworks for trading ranging from unregulated trading between individual parties to a supervised fund from which trading credits can be purchased and best management practices funded.
Establish an advisory council consisting of stakeholders and all of the potential trading partners within the watershed. This council will meet regularly and we will help the UGA research team develop and present our findings regarding the water quality status of the lake, probable sources of pollutants, and how a trading program could work to improve water quality.
Sponsor a pollutant trading conference and workshop in the last year of the study.

Proposal: A Framework for Trading Phosphorus Credits in the Lake Allatoona Watershed (PDF)

Powerpoint Presentations (in Adobe PDF format):

Introduction to Water Quality Trading, Nanette Nelson, June 14, 2005

State of the Watershed, David Radcliffe, June 14, 2005 (1.38 MB)

(For these presentations in MS Powerpoint, please contact Nanette Nelson at nanetteATuga.edu)

Visit Our Partners:

	Alliance for Quality Growth
	Center for Community Design & Preservation
	Georgia Museum of Natural History
	NARSAL

University of Georgia - Eugene P. Odum School of Ecology

UGA River Basin Center
110 Riverbend Road, Room 101
Athens, GA 30602-1510 USA
Phone: (706) 583-0463
Fax: (706) 583-0612

C. Ronald Carroll, Co-Director for Science - rcarroll@uga.edu
Laurie Fowler, Co-Director for Policy - lfowler@uga.edu

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