Water Quality Trading Pilot Project Design

Categorized Under: Environment



ICF assisted in the identification of a potential Water Quality Trading (WQT) pilot project focused on nitrogen that would involve electric utilities.

This project involved identifying and assessing the potential of three possible projects:

  1. Developing and applying pilot project selection criteria
  2. Assessing strengths and weaknesses of each pilot
  3. Presenting the analysis to EPRI and members of the EPRI watershed advisory committee

A project in the Ohio River Basin was selected as the program with the greatest opportunity for success among the three evaluated. The second phase of the project involved performing research on the pilot project to define the project area, developing a business case for power company involvement in development of a WQT pilot, characterizing the potential demand for trading among point sources, and identifying key phases and potential funding sources for program development and implementation. The market analysis involved calculating relative costs of reducing nitrogen discharges by different point and nonpoint sources and estimating the quantity of credits based on several discharge-limit scenarios.

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Insight Details

Client: Electric Power Research Institute (EPRI)
Location: Palo Alto, Washington

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