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

2. Wherever there’s water, there’s Clean Water.. Why is Clean Water Services interested in “markets” 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

3. Wherever there’s water, there’s Clean Water.. 2001 Temperature TMDL, Current vs. Allocated i.e. the “System Potential” Temperature differential Current WLA WQ Std

4. Wherever there’s water, there’s Clean Water.. Temperature Reduction Options Reduce influent wastewater temperature Remove discharge from Tualatin River Mechanical Cooling/Refrigeration of discharge Trade Heat Load for Flow Augmentation and Increased Shading

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

6. Wherever there’s water, there’s Clean Water.. Thermal Load WQ Credit Trading 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

7. Wherever there’s water, there’s Clean Water.. Shade Credit Calculation Potential Solar Load for a Stream Reach = Width Reach X Length Reach x 480 kcal/ft2/day Solar Load shaded = potential solar load X effective shade Shade Credit = W x L x 480 x % eff. shade

8. Wherever there’s water, there’s Clean Water.. How is Clean Water Services Achieving the Riparian Shading? 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

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

10. Wherever there’s water, there’s Clean Water.. In Summary, over the 5-yr term of permit, CWS will… 1.release 30 cfs/d stored water in July and August 2.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

11. Wherever there’s water, there’s Clean Water.. What are Clean Water Services interested in doing next 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

12. Wherever there’s water, there’s Clean Water.. The “key” watershed messages.. Think outside the conventional regulatory framework Look for “non-traditional” partnership opportunities Spend the resources where they do the greatest good

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

14. Wherever there’s water, there’s Clean Water.. QUESTIONS ??? Charles Logue 503-681-3604 loguec@cleanwaterservices.org loguec@cleanwaterservices.org www.cleanwaterservices.org