Water Quality Trading in Oregon’s Tualatin River Watershed

1. Water Quality Trading in Oregon’s Tualatin River Watershed Charles Logue, PE Director, Regulatory Affairs Dept. Conservation Markets Roundtable – May 5, 2006

2. Pollution control alone is not going to achieve restoration of our watershed We are implementing an Integrated Water Resources Management (IWRM) approach We are interested in cost-effective, partnering opportunities to go beyond regulatory mandates Why is Clean Water Services interested in “markets”

3. 2001 Temperature TMDL, Current vs. Allocatedi.e. the “System Potential” Current WQ Std WLA Temperature differential

4. Reduce influent wastewater temperature Remove discharge from Tualatin River Mechanical Cooling/Refrigeration of discharge Trade Heat Load for Flow Augmentation and Increased Shading Temperature Reduction Options

5. February, 2004 – Watershed-based NPDES permit issued Allows for WQ trading Thermal load – temperature Oxygen load – biochemical and nitrogenous OD What Clean Water Services has done to date

6. Thermal Load (kcal/day) from WWTP’s Trade cooling credits of instream flow augmentation released from Hagg Lake Reservoir Trade riparian stream surface shading improvements Effluent Reuse in lieu of irrigation withdrawals Thermal Load WQ Credit Trading

7. Potential Solar Load for a Stream Reach = WidthReach X LengthReach x 480 kcal/ft2/day Solar Load shaded = potential solar load X effective shade Shade Credit = W x L x 480 x % eff. shade Shade Credit Calculation

8. Market-value based Used stakeholder workgroup to develop program Developed an Enhanced CREP program Increased $ incentives to rural landowners Leverage of existing Federal and State programs Incentive payments to Soil & Water Conservation District Acting as agents of Clean Water Services How is Clean Water Services Achieving the Riparian Shading?

9. Five-year program cost estimate: $2.2 million Clean Water Services share: $820,000 (37%) Partners share:$1.38million (63%) Note: A mechanical solution (effluent refrigeration) would have cost $50+ million plus $2 million/yr O&M costs Enhanced CREP cost breakdown

10. release 30 cfs/d stored water in July and August shade roughly 35 miles of tributary riparian area Shading requirement is based on a 2:1 trading ratio To date, have over 9 ½ miles planted In Summary, over the 5-yr term of permit, CWS will…

11. Supporting the efforts to expand WQ trading activities to other watersheds Supporting the development and expansion of conservation markets in Oregon Supporting the concept of collaborative conservation Breaking down the institutional barriers that currently is impeding progress What are Clean Water Services interested in doing next

12. Think outside the conventional regulatory framework Look for “non-traditional” partnership opportunities Spend the resources where they do the greatest good The “key” watershed messages..

13. What is the best approach to get the resource agencies in alignment with this approach? What is the best approach to limit the 3rd party litigation under the CWA when undertaking innovative approaches? What is the best approach to minimize the political parochial behaviors? Questions I have

14. QUESTIONS ??? Charles Logue503-681-3604loguec@cleanwaterservices.org www.cleanwaterservices.org