Nutrient Trading

On June 28, 2012, in accordance with Chapters 748 (HB176 - Delegate Knight) and 808 (SB77 - Senator Watkins) of the 2012 Virginia Acts of Assembly, the Soil and Water Conservation Board authorized DCR to prepare and submit a NOIRA to solicit recommendations regarding the development of new proposed Nutrient Trading Certification Regulations for the Board's consideration.

Nutrient trading is a form of exchange (buying & selling) of nutrient reduction credits. These credits have a monetary value that may be paid to the seller for installing Best Management Practices (BMPs) to reduce nitrogen or phosphorous. In general, water quality trading utilizes a market-based approach that allows one source to maintain its regulatory obligations by using pollution reductions created by another source. As a market-based approach, increased efficiency and cost-effectiveness are achieved by letting the market determine costs. To achieve a desired load reduction, trades can take place between point sources (usually wastewater treatment plants), between point and nonpoint sources (a wastewater treatment plant and a farming operation) or between nonpoint sources (such as agriculture and urban stormwater sites or systems).

• Nutrient Trading - NOIRA/Proposed, 2012

DCR has formed a Regulatory Advisory Panel (RAP) to provide recommendations to the department, on behalf of the Board, regarding the development of the proposed regulations. Additional information regarding the work of the RAP is posted below.

Nutrient Trading Regulatory Advisory Panel Meeting #1, Nov. 14, 2012

• Meeting Agenda
• Presentation: Nonpoint Source Nutrient Bank Permitting in Virginia
• Presentation: The Use of Nutrient Credits in Virginia
• Regulatory Action Overview, Regulatory Timeline, and Committee Charge
• RAP Membership Roster
• Notes from Meeting 1
• Top Issues Identified
• Meeting Minutes

Nutrient Trading Regulatory Advisory Panel Meeting #2, Dec. 13, 2012

• Meeting Agenda
• Draft Outline for Regulations
• Draft Definition Section for Consideration
• Possible Elements – Nutrient Credit Certification Process
• Mitigation Bank Information
• Mitigation Bank Location Guidelines
• Prospectus Checklist for Mitigation Bank
• Link to DEQ’s Nutrient Trading Programs
• Notes from Meeting 2
• Meeting Minutes

Nutrient Trading Regulatory Advisory Panel Meeting #3, Feb. 22, 2013

• Meeting Agenda
• Draft Workplan
• Draft Outline for Regulations
• BMP Presentation
• DOF Presentation
• Meeting Minutes

Nutrient Trading Regulatory Advisory Panel Meeting # 4 (March 20, 2013)

• Meeting Agenda
• Quantifying Agricultural Nutrient Reductions Presentation
• Quantitative Nutrient Reduction Estimates and WSI's Nutrient Load Estimator Presentation
• Part I
• Part II
• Part III
• Part IV
• Meeting Minutes

Nutrient Trading Regulatory Advisory Panel Meeting # 5 (April 15, 2013)

• Meeting Agenda
• Discussion Draft
• Resource Management Plan Presentation

Nutrient Trading Regulatory Advisory Panel Meeting # 6 (May 21, 2013)

• Meeting Agenda
• Discussion Draft
• Revised Workplan