1. James A. Klang, PE Senior Project Engineer Kieser & Associates, LLC 536 E. Michigan Ave., Suite 300 Kalamazoo, MI 49007 America’s Ag Water Management Summit October 12, 2011 Session 6: Future

2. Producer voluntarily provides trading credits for: Can also create habitat  Wastewater Treatment Plant compliance: ◦ Total phosphorus ◦ Total nitrogen  Urban Stormwater compliance: ◦ Total phosphorus ◦ Total nitrogen ◦ Sediment ◦ Flow; reductions in volume and peaks

3.  Lake, river and stream nutrient criteria  Total phosphorus  Total nitrogen; or nitrite + nitrates  Total Maximum Daily Loads for:  Turbidity or sediment  Eutrophication  Biotic impairments  New discharge limits drive costly upgrades  Trading offers cost-effective alternative

4.  Operational benefits/challenges for producers  Cost competitiveness of credits  Demand for credits  Science/regulatory questions  Transaction fees  Scale (ability to supply credits)

5.  Regulate dischargers on a watershed basis ◦ Allows for pooled funding for Ag BMPs at scale  Provide Ag more time/fewer restrictions  Address cost barriers by providing:  Credit estimation tools  Shared monitoring  Funding for field technical staff  Leveraged cost-share funding  Credit stacking  Options for producers to “profit” from trading