Validation: Brent Fults and CBNLT recognized by Virginia Governor and EPA Administrator as water quality trading pioneers in the bay

Governor McAuliffe introduces Brent Fults at 5:20 

Baltimore Sun-Times

Ecosystem Marketplace

RS is positively thrilled by our Virginia partner Brent Fults’ and the Chesapeake Bay Nutrient Land Trust’s (CBNLT) participation this morning in an unprecedented high-profile event touting water quality markets. Introducing Brent today was the Governor of Virginia Terry McAuliffe [!]. If that were not enough, also speaking were USEPA Administrator Gina McCarthy — and U.S. Secretary of Agriculture Tom Vilsack. In attendance were watershed policy chiefs from the Chesapeake Bay and nationwide.

gov and brentUSDA Sec. Vilsak, Governor McAuliffe and CBNLT’s Brent Fults at the press conference 

gina mccarthy epa water quality trading conf

USEPA Administrator Gina McCarthy gives shout-out to WQ trading 

The road to widely accepted “retail” water quality trading is a long and tortured one. Here is a 2011 RS blog post describing the challenge of realizing and utilizing these long discussed markets and water quality products in Virginia. At the time of the post we were three years into a process which culminated today — four years later — in the full throated public endorsement of water quality credits by the federal government and a regulated state.

Brent Fults, Scott Reed, Casey Jensen, and all the gang at CBNLT, should enjoy today’s validation of their long-standing and very personal struggle to make regulated market-based retail credit sales for water quality off-sets in Virginia a reality.

I have said many times that the cost of the coffee and doughnuts at seminars discussing water quality trading exceeds the dollar volume of the trades. I may need to put that cute line away. These markets are taking off in a big way, because Fult’s and friends walked the walk — when others just talked that talk.

In (the very few) watersheds nationwide where “non-point to non-point” WQ trading is embraced, as today in parts of Virginia and North Carolina, nearly every development over a single lot is regulated by an MS4 stormwater permit and uses some degree of WQ off-sets to achieve no-net-contribution to water quality pollution. This captures most all development (what an industry) and leads to better compliance and more affordable regulatory outcomes for permittees than old, failed approaches.

Only another 2258 river basins to go!


New Department of Agriculture video featuring CBNLT’s work

CLICK BELOW to hear Brent Fult’s statement at the event:

Federal Agencies Support Virginia’s Innovative Market-based Approach to Improving Water Quality in Chesapeake Bay

Virginia program to serve as model for similar programs across the country

WASHINGTON, Dec. 16, 2014 – U.S. Environmental Protection Agency (EPA) Administrator Gina McCarthy today joined U.S. Department of Agriculture Secretary (USDA) Tom Vilsack, Mike Boots of the White House Council on Environmental Quality (CEQ), Commonwealth of Virginia Governor Terry McAuliffe, a private investor and an Appomattox, VA farmer to recognize an innovative, market-based nutrient trading program run by Virginia to improve the water quality of Chesapeake Bay.

At the McConnell Safety Transportation Operation Center, in Fairfax, Va., EPA, USDA, and CEQ highlighted the cost-effective program that has saved the Commonwealth more than $1 million, demonstrating an innovative means of meeting Clean Water Act stormwater requirements and Virginia state water quality goals for the Bay. The program encourages economic investment while reducing phosphorus pollution to local waterways in order to meet water quality goals for the Chesapeake Bay. It is expected similar programs will be established around the nation to provide new revenue sources for agricultural producers while reducing soil erosion and runoff.

“Virginia’s nutrient trading program is a strong example of how to create economic opportunity and new income for rural America while protecting and improving local waterways and the Chesapeake Bay,” said EPA Administrator Gina McCarthy. “The program is a win for the environment and our economy and we encourage states to look at Virginia as a model and a resource as they adopt similar programs.”

“USDA applauds the Commonwealth of Virginia for showing tremendous leadership on this issue,” said Agriculture Secretary Tom Vilsack. “Efforts like these provide new and additional income streams for farmers and ranchers, while improving water quality and saving Virginia money. I am hopeful this initiative can be replicated across the nation.”‎

“The Chesapeake Bay faces numerous challenges, and the Commonwealth of Virginia is responding with innovative thinking and collaboration across sectors,” said Mike Boots, who leads the White House Council on Environmental Quality. “Not only do creative approaches like these provide new markets for private investors and generate new revenue for farmers, they also bolster the strength of our natural resources, improving their resilience to threats posed by a changing climate and other stressors.”

“I am glad the federal government has chosen to recognize this innovative, pro-business program,” said Virginia Governor Terry McAuliffe. “Our nutrient credit trading system is building the New Virginia Economy by protecting our environment and controlling costs for the private sector and the Virginia taxpayer.”‎

Virginia’s Department of Environmental Quality has created a demand and supply market for land conservation projects that are protective of water quality for future generations. The agency’s stormwater program requires reductions of phosphorus runoff from certain types of road construction projects that can be achieved by purchasing phosphorus credits from state-certified credit banks. Credits purchased are generated by Virginia farmers in the Potomac and James River watersheds, whose farming practices have permanently reduced the amount of phosphorus flowing into those rivers and, ultimately, the Chesapeake Bay. The farm practices are certified by the state as “nutrient credit banks” and come solely from private investors, reducing reliance on public funds and generating a new revenue stream for participating farmers. These credits cost VDOT approximately 50 percent less than other, more traditional engineered pollution reduction practices,

such as detention ponds, and underground filters. In addition, these banks advance other goals such as wildlife habitat, stream buffers and land preservation.‎

USDA video of the Virginia program was highlighted in today’s event: http://youtu.be/ucBFVeq-vdsThis is an external link or third-party site outside of the United States Department of Agriculture (USDA) website.

By advancing the goals of improving the health and regional economy of the Chesapeake Bay as laid out in President Obama’s 2009 Executive Order, nutrient trading is giving farmers additional income opportunities that help keep agricultural lands in production and stretch limited budgets by tapping private sector investments.

EPA and USDA are working together to implement and coordinate policies and programs that encourage water quality trading and will release a web-based water quality trading roadmap tool in early 2015. As part of a joint memorandum of understanding to support trading and environmental markets, the two agencies are centralizing information for buyers and sellers to utilize water quality trading. This resource library will be searchable and help users find information specific to their needs. Both agencies will sponsor a national conference in 2015 for stakeholders to share experiences and move forward with trading as a valuable tool for driving environmental improvement.

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USDA is an equal opportunity provider and employer.

WHEN:             Tuesday, December 16, 2014

9:30 a.m. EST

WHO:               Gina McCarthy, U.S. Environmental Protection Agency Administrator

Tom Vilsack, U.S. Department of Agriculture Secretary

Mike Boots, White House Council on Environmental Quality

Terry McAuliffe, Commonwealth of Virginia Governor

John Harrison, Appomattox farmer raising cattle, managing hay and timber lands

Brent Fults, founder of Chesapeake Bay Nutrient Land Trust, LLC

WHERE:           McConnell Public Safety Transportation Operation Center

4890 Alliance Drive, Fairfax, VA 22030

RSVP:            Media who would like to attend the event should contact press@epa.gov 

***NOTE: Media will need to check-in upon arrival at the secure facility. Please plan to arrive at least 20 minutes before the start of the event.  

Nutrient Credit Trading Event – Handout by Restoration Systems, LLC

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