May 1999 Pilot Status Updates

The report describes the progress and status of each pilot project in achieving water quality goals and coordinating state and local efforts to improve water quality through trading.

In 1997, the Legislature enacted Wisconsin Act 27 to provide regulated facilities an additional tool to achieve water quality. The Department of Natural Resources is directed by s. 283.84 Wis. Stats., to "administer at least one pilot project to evaluate the trading of water pollution credits". Under this law, a permitted source of water pollution can discharge pollutants at levels above what would otherwise be authorized in the WPDES discharge permit, while another entity removes additional pollutants. This is allowed provided certain agreements are reached with the other discharger, the Department or other units of government.

Department staff have been meeting with a variety of stakeholders to address the issues associated with watershed based trading. Progress has been made on developing local participation, identification of sideboards as well as a framework for the trading process, evaluation of the costs and associated phosphorus loading reductions of best management practices, distribution of funding, and modification of existing permits that qualify for delays in the NR 217 Wis. Adm. Code compliance schedules for phosphorus removal. Currently, the program has identified three project areas for exploration of the issues associated with pollutant trading. They are, the Red Cedar River, the Fox-Wolf Basin, and the Rock River.

In addition, the state has a two-year budget of $100,000 to be used for general studies in water pollution credit trading. Region V EPA staff are acting in an advisory role to the state and are encouraging the development of new approaches. The state is developing a statewide framework for trading and is watching the progress of each pilot project.

Red Cedar River Project

The Red Cedar River Sub-Basin drains approximately 1,500 square miles in northwest Wisconsin, north of Eau Claire. Excessive phosphorus loading from the Red Cedar River results in severe algal blooms in Tainter Lake and Lake Menomin. Point Sources account for 7% of the total phosphorus loading. The predominant non-point sources are cropland runoff, excessive manure spreading, and fertilizer application. Water quality objectives for phosphorus reduction have already been established for the entire Red Cedar system. Modeling has been done, but a TMDL has not yet been completed for phosphorus. The partnership group that is operating for trading has been in existence for a number of years to address other water quality problems in the basin. A trading framework has been established for the City of Cumberland and they are currently investigating the feasibility of trading, over in-plant improvements, to meet their phosphorus limit.

Fox Wolf Basin Project

The Fox-Wolf River Basin drains approximately 6600 square miles in the southeast part of the state between Green Bay and Fond du Lac. Dissolved oxygen violations occur in Green Bay due to phosphorus loading from the forty watersheds of the Fox-Wolf Basin. Nonpoint sources, mostly cropland runoff, account for 76% of the phosphorus loading. Point sources account for 24%. A load estimation study by Fox-Wolf Basin 2000, a nonprofit group, has indicated twelve of the forty watersheds contribute nearly 85% of the total phosphorus load reaching Green Bay. Trading will be targeted to these watersheds. As recommended by the Green Bay Remedial Action Plan, the targeted reduction in phosphorus loading to the Bay is 50%. The Fox-Wolf Basin 2000 group has begun collecting money to fund the project and is acting as the coordinator of a partnership group for this basin.

Rock River Basin Project

The Rock River Basin drains approximately 3,300 square miles near Madison. This 3000 square mile basin is diamond shaped and covers and area roughly bound by the Horicon Marsh to the North, the City of Beloit to the South, the City of Madison to the West and the City of Oconomowoc to the East. Heavy phosphorus loads from point sources and agricultural and urban runoff impact the Rock River, its tributaries, lakes and impoundments in the basin. A study is underway to estimate total phosphorus load from all sources and to establish water quality objectives for the basin. Point sources have formed a partnership and have raised $300,000 to begin modeling and monitoring. The state has provided $80,000 from an U.S. EPA grant to the Rock River Project for use in modeling. County agencies are being encouraged to help facilitate trades by contacting landowners. Of the three Wisconsin projects, the Rock River has the most active partnership organization and is attempting to develop a trading framework for the entire basin.

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Last Revised: Friday August 15 2008