Idaho Watershed Solutions, Inc. Dave Tuthill November 29, 2012

1. Idaho Water Users Association 29th Annual Water Law and Resource Issues Seminar Water Quality Trading -- Pipe Dream or Reality? A Business Case for Agriculture to Lead Water Quality Trading Idaho Watershed Solutions, Inc. Dave Tuthill November 29, 2012

2. Topics • Additionality • Opportunities • Water Quality Trading • The Business Case • Where we go from Here

3. Water Delivery Organization Board Member Charge, In Priority Order • Deliver the water without problems • Do not increase costs • Maintain the system • Improve the system where cost-effective

4. Additionality Additionality is a notional measurement of an intervention (i.e., doing something), when the intervention is compared to a baseline, status quo metric (i.e., doing nothing).* Stated another way, this refers to improvements over and above the baseline * This is a Wikipedia definition. Webster’s Dictionary (even the online version) does not contain this word 

5. Two Major Opportunities for Water Delivery Organizations • Credit for Managed Recharge • Credit for Water Quality Improvement

6. Water Quality Trading Water quality trading is an innovative approach to achieve water quality goals more efficiently. Trading is based on the fact that sources in a watershed can face very different costs to control the same pollutant. Trading programs allow facilities facing higher pollution control costs to meet their regulatory obligations by purchasing environmentally equivalent (or superior) pollution reductions from another source at lower cost, thus achieving the same water quality improvement at lower overall cost.

7. So, how is a Watershed Approach to be Implemented? Via a newly formed non-profit corporation, Idaho Watershed Solutions, Inc. Improving Water Quality Using a Watershed Approach

8. Idaho Watershed Solutions, Inc. Technical Team • Mr. Hal Anderson – Water Resource Planning • Dr. Mark Ankeny – Soil Science • Mr. Doug Jones – Precision Agriculture • Mr. Mark Masarik – EPA Programs • Mr. Bob Haynes – Northern Idaho • Mr. Ernie Carlsen – Eastern Idaho • Mr. Phil Rassier – Water Law and Rules. • Dr. Rob Tiedemann – Wetlands and Ecology • Mr. Jeff Reeder – Water Resource Engineering • Mr. Michael Schulz – Engineering Intern • Mr. Steve Pollack – Government Relations • Dr. Dave Tuthill – Water Administration

9. Willamette Partnership Work with EPA and DEQs to establish trading policies In the Northwest and beyond The Freshwater Trust Idaho Watershed Solutions, Inc.

10. Watershed Advisory Group (WAG) Idaho Watershed Solutions, Inc. Idaho Water Resources Research Institute

11. Boise River Today Upper reaches are beautiful Lower reaches need help Photo by Ken Miracle Aug 29, 2012

12. Problem • Nutrients, sediments and temperature are impacting rivers and streams • In many basins nonpoint sources are major contributors • A watershed approach is attractive, but it is difficult to achieve

13. Opportunities for a Watershed Approach Automation of Irrigation Delivery Systems Reuse of Ag and Municipal Water Precision Agriculture Riparian Activities

14. Automation Objective: Take only what you need – leave the rest in the River and Reservoirs

15. Reuse Objective: Use nutrient laden water for Irrigation before it returns to the river Twin Falls Canal Company – Photo by Brian Olmstead, Manager

16. Precision Agriculture Objective: Apply the correct amounts and types of nutrients in the right places

17. Riparian Activities Objective: Create wetlands to remove sediment, nutrients and lower temperatures Photo by Dr. Rob Tiedemann

18. Slide prepared by Larry Bennett, Bennett Engineering November, 2012

19. Source: The Willamette Partnership

20. The Business Case • On one hand, non-point sources (like agricultural drains) are not presently controlled by the Clean Water Act • On the other hand, via water quality trading agriculture can voluntarily implement improvements in water quality and receive credits • These actions can meet the goals of water delivery organizations • Leadership has risk, but so does following

21. Potential Impact of Additionality on a Water Delivery Organization • Deliver the water without problems – more water available to deliver. • Do not increase costs – income to the organization. • Maintain the system – new income offsets maintenance costs. • Improve the system where cost-effective – new income funds improved facilities.

22. Challenges • Examples of successful water quality trading are just emerging in Idaho (Twin Falls Canal Company), and nationally • Regulators need to be convinced of benefits – via measurement of results • Documenting baseline levels is important

23. Opportunities • Agriculture can receive additionality credit by participating in water quality improvement projects • Idaho can become one of the first areas where agriculture is a leader in implementing a watershed approach (such as with Twin Falls Canal Company) • This is an area of community benefit – where agriculture, municipalities and the environmental entities all win

24. Next Steps • Work with Agriculture to partner in WQ Improvement efforts • Academic and regulatory agencies – will have a critical role • Forecasting • Modeling • Analyzing alternatives • Vizualizing • Integrating hard science facts with social science values • Encourage regulated and conservation communities to invest in programs and projects in partnership with agriculture.

25. Thank You