Nonpoint Source Pollution Nonpoint Source Pollution Reductions – Estimating a Reductions – Estimating a Tradable CommodityTradable Commodity

Allen R. DedrickAssociate Deputy AdministratorNatural Resources & Sustainable Agricultural SystemsAgricultural Research ServiceU. S. Department of Agriculture

Research Support for Research Support for Environmental Credit Environmental Credit TradingTrading

Allen R. DedrickAssociate Deputy AdministratorNatural Resources & Sustainable Agricultural SystemsAgricultural Research ServiceU. S. Department of Agriculture

Environmental credit Environmental credit trading programstrading programs

Market-based Market-based mechanisms for mechanisms for allocating pollutant allocating pollutant reductions among reductions among different sourcesdifferent sources

Offer the lowest-cost Offer the lowest-cost methods to reduce net methods to reduce net emissionsemissions

Role of agricultural science Role of agricultural science in developing trading in developing trading systemssystems

Water quality and quantity Water quality and quantity included among goalsincluded among goals

Market-based solutions Market-based solutions should be developedshould be developed

USDA Secretary Ann USDA Secretary Ann Veneman's vision for Veneman's vision for achieving conservation achieving conservation goalsgoals

Role of agricultural science Role of agricultural science in developing trading in developing trading systemssystems

Producers need voluntary Producers need voluntary conservation opportunitiesconservation opportunities

Comprehensive conservation benefits Comprehensive conservation benefits index to assess value of all projectsindex to assess value of all projects Needs to be risk-based for objective Needs to be risk-based for objective

scoringscoring Contracts awarded based on the greatest Contracts awarded based on the greatest

benefit/cost advantagesbenefit/cost advantages

USDA Secretary Ann USDA Secretary Ann Veneman's vision for Veneman's vision for achieving conservation achieving conservation goalsgoals

Objectives include trading credits in ways that Objectives include trading credits in ways that achieve ancillary environmental benefits achieve ancillary environmental benefits beyond the required reductions in pollutant beyond the required reductions in pollutant loads, e.g., creation and restoration of loads, e.g., creation and restoration of wetlands, floodplains, and wildlife habitatwetlands, floodplains, and wildlife habitat

Need technical tools for making site-specific Need technical tools for making site-specific determinations of nonpoint source reductions determinations of nonpoint source reductions in pollutantsin pollutants

Role of agricultural science Role of agricultural science in developing trading in developing trading systemssystems

EPA's Water Quality Trading PolicyEPA's Water Quality Trading Policy

Trading works best when…..Trading works best when…..

The problem occurs The problem occurs over a large areaover a large area

There are many There are many sources responsible sources responsible for the problemfor the problem

The cost of controls The cost of controls varies from one varies from one source to anothersource to another

Emissions can be Emissions can be consistently and consistently and accurately measuredaccurately measured

Major contributions from Major contributions from research organizationsresearch organizations

Developing methods for Developing methods for quantifying emissions and quantifying emissions and reductions under different reductions under different conditions and at different conditions and at different scales (time and space)scales (time and space)

Comparing methods for Comparing methods for efficiencyefficiency

Developing and improving Developing and improving ways to reduce nonpoint ways to reduce nonpoint source pollutantssource pollutants

Major contributions from Major contributions from research organizationsresearch organizations

Incorporating ancillary Incorporating ancillary benefits whenever benefits whenever possiblepossible

Developing Developing environmental benefits environmental benefits indices that are risk-indices that are risk-based, are quantifiable, based, are quantifiable, and can be assigned and can be assigned monetary valuemonetary value

Research is an important Research is an important part of USDA’s missionpart of USDA’s mission

““Practical and scientific experiments” since Practical and scientific experiments” since 1862.1862.

By World War II, USDA received about 40% of By World War II, USDA received about 40% of all Federal research funds.all Federal research funds.

Agricultural Research Administration created Agricultural Research Administration created during World War II.during World War II.

Agricultural Research Service created in 1953.Agricultural Research Service created in 1953.

ARSCSREES

ERSNASS

Agriculture in U.S. EconomyAgriculture in U.S. Economy

16% of the $9 16% of the $9 trillion U.S. gross trillion U.S. gross domestic productdomestic product

17% of employed17% of employed 8% of U.S. exports 8% of U.S. exports

in 1999in 1999 <2% U.S. <2% U.S.

workforce on workforce on farmsfarms

100% of the 100% of the citizens are userscitizens are users

ARS improves the way America ARS improves the way America produces and uses food and produces and uses food and fiber.fiber.

Quality and nutritional valueQuality and nutritional value Sustainability of natural resources and Sustainability of natural resources and

environmental qualityenvironmental quality Economic value for producers, Economic value for producers,

consumers, and communitiesconsumers, and communities

104 Locations, ~70 in 104 Locations, ~70 in Natural ResourcesNatural Resources

$1 billion annual $1 billion annual budget (FY03), ~budget (FY03), ~$175 $175 million annually in NRmillion annually in NR

~2,000 scientists~2,000 scientists

1,000+ research 1,000+ research projectsprojects

ARS Laboratory LocationsARS Laboratory Locations

Examples of ARS research products Examples of ARS research products that support development of that support development of environmental credit trading programsenvironmental credit trading programs

Measurement Measurement technologies for technologies for nutrients and sediments nutrients and sediments in waterin water

Models to estimate Models to estimate nutrients and sediments nutrients and sediments in water on different in water on different geographic scalesgeographic scales

Examples of ARS research products Examples of ARS research products that support development of that support development of environmental credit trading programsenvironmental credit trading programs

Models linking Models linking pollutants, pollutant pollutants, pollutant reductions, and reductions, and “downstream” impacts “downstream” impacts

Information linking Information linking management practices management practices to nutrients and to nutrients and sediments in watersediments in water

Measurement technologies for Measurement technologies for nutrients and sediments in nutrients and sediments in waterwater Acoustic, radar, and Acoustic, radar, and

visible light visible light technologies for technologies for measuring sediment measuring sediment loads in waterloads in water

Automated stream Automated stream samplingsampling

Models to estimate nutrients and Models to estimate nutrients and sediments in water on different sediments in water on different geographic scalesgeographic scales Revised Universal Soil Loss Equation Revised Universal Soil Loss Equation

(RUSLE)(RUSLE) – an updated version of USLE that – an updated version of USLE that estimates soil erosion by raindrop impact estimates soil erosion by raindrop impact and surface runoff, which then contributes and surface runoff, which then contributes to sediments in surface waters. to sediments in surface waters.

Soil Water Assessment Tool (SWAT)Soil Water Assessment Tool (SWAT) - - widely accepted by government agencies widely accepted by government agencies for estimating loading and transport of for estimating loading and transport of sediments and nutrients in river basins.sediments and nutrients in river basins.

Models to estimate nutrients and Models to estimate nutrients and sediments in water on different sediments in water on different geographic scalesgeographic scales

HUMUS (Hydrologic Unit Model for the United States) is based on SWAT and a GIS interface

Models linking pollutants, pollutant Models linking pollutants, pollutant reductions, and “downstream” reductions, and “downstream” impactsimpacts Agricultural Non-Point Source Agricultural Non-Point Source

Pollution Model (AGNPS)Pollution Model (AGNPS) - - predicts non-point source predicts non-point source pollutant loadings within pollutant loadings within agricultural watersheds, assists agricultural watersheds, assists with determining Best with determining Best Management Practices, Total Management Practices, Total Maximum Daily Loads, risks to Maximum Daily Loads, risks to environmental resources, and environmental resources, and cost-benefit analysescost-benefit analyses

1982 1983 1984 1985 1986 1987 1988 1989 1990 1991YEAR

0

200

400

600

800

1000

1200

RU

NO

FF

(m

m)

Measured Runoff

Simulated Runoff

GOODW IN CREEK W ATERSHEDAnnAGNPS SIMULATED & MEASURED RUNOFFSTATION #1 1982-1991

Information linking management Information linking management practices to nutrients and practices to nutrients and sediments in watersediments in water

Impacts of riparian buffers, Impacts of riparian buffers, tillage systems, and other tillage systems, and other management practices on management practices on surface runoffsurface runoff

Reducing nitrogen fertilizer Reducing nitrogen fertilizer movement into surface and movement into surface and ground watersground waters

Information linking management Information linking management practices to nutrients and practices to nutrients and sediments in watersediments in water

Development of national Development of national phosphorus index to phosphorus index to minimize nutrient losses minimize nutrient losses into surface and into surface and groundwatergroundwater

Applications of precision Applications of precision farming for environmental farming for environmental benefitsbenefits

Research opportunitiesResearch opportunities

Conduct modeling, field Conduct modeling, field experiments, and case experiments, and case studies to determine which studies to determine which Farm Bill conservation Farm Bill conservation practices promote an practices promote an optimum combination of optimum combination of pollutant load reduction, or pollutant load reduction, or carbon sequestration, versus carbon sequestration, versus intended or ancillary benefits. intended or ancillary benefits.

Research opportunitiesResearch opportunities

Develop models that can Develop models that can integrate prediction of integrate prediction of non-point source nutrient non-point source nutrient loading along with carbon loading along with carbon sequestration, to examine sequestration, to examine total environmental total environmental benefits of programs and benefits of programs and practices practices

Conservation Effects Assessment Conservation Effects Assessment Project (CEAP)Project (CEAP)

The principal focus of the CEAP effort The principal focus of the CEAP effort is to produce an assessment of is to produce an assessment of environmental benefits derived from environmental benefits derived from implementing USDA conservation implementing USDA conservation programs. programs.

The project has two major The project has two major components and reporting scales: components and reporting scales:

National Assessment National Assessment

Watershed AssessmentWatershed Assessment

CEAP--Conservation practices that CEAP--Conservation practices that will be emphasized include…will be emphasized include…

conservation buffersconservation buffers nutrient managementnutrient management pest managementpest management tillage managementtillage management pest managementpest management irrigation managementirrigation management

ARS Research Watershed ARS Research Watershed NetworkNetwork

Research is an important Research is an important foundation for any environmental foundation for any environmental credit trading programcredit trading program Existing tools may need Existing tools may need

modification for estimating modification for estimating nonpoint source pollutants nonpoint source pollutants and reductions on a large and reductions on a large geographic scale.geographic scale.

Monitoring tools and Monitoring tools and methods must be rapid methods must be rapid and inexpensive for wide and inexpensive for wide application.application.

Research is an important Research is an important foundation for any environmental foundation for any environmental credit trading programcredit trading program New conservation practices New conservation practices

must be developed and must be developed and tested under different tested under different conditions for reliability.conditions for reliability.

Research reduces Research reduces uncertainties in estimating uncertainties in estimating pollutant reductions, thus pollutant reductions, thus contributing to their contributing to their increased economic value.increased economic value.