Nutrient Trading

Nutrient Trading Background

The Pennsylvania Department of Environmental Protection has developed a policy and guidelines that provides for trading of nutrient and sediment reduction credits within the Chesapeake Bay Watershed to help meet the water quality goals of the Chesapeake Bay Tributary Strategy.

Nutrient and sediment trading is one approach to maintain and improve water quality using market mechanisms to produce nutrient reductions at lower costs. The voluntary trading program is an option for point and non-point sources that exceed their environmental obligations to generate credits that may be traded to others who are seeking nutrient reduction credits.

Although the nutrient trading program in Pennsylvania is in its infancy, conservation districts are uniquely positioned to become an integral part of the process. Conservation districts could play a number of different roles now and in the future. Conservation districts are uniquely positioned because they have a history of working with farmers to implement conservation best management practices that reduce nonpoint source pollution, and have established local relationships with point source dischargers and others in the local community. Conservation districts are able to determine if farmers are in compliance with applicable regulations and can verify that agricultural best management practices have been properly installed and functioning and that these practices will result in nutrient reductions.

As a service to its member conservation districts, the PACD has received a grant to assist conservation districts in nutrient trading. The PACD will serve as a nutrient trading credit aggregator for conservation districts and seek potential buyers of nutrient credits. In addition, the PACD will provide additional information and services to conservation districts that will assist them in their local nutrient trading activities.

PACD Opportunities for Conservation Districts Currently Participating in Revolving Fund or Strawman
Nutrient Trading Activities

• Click here for Word document
• Click here for PDF

Nitrogen Calculation Spreadsheet Link

This spreadsheet is a tool that can be used to help with the calculation of credits that could be generated through the implementation of BMPs. Note, that this is a tool and it may be updated and corrected as needed so please check the websites (DEP's Nutrient Trading webpage or WRI's NutrientNet website) or contact DEP to ensure you are using the most up to date version.

Link to DEP's Nutrient Trading Webpage
http://www.dep.state.pa.us/river/Nutrient%20Trading.htm

Link to WRI's NutrientNet Webpage
http://www.nutrientnet.org