Exploring Trading to Reduce Impacts of Acid Mine Drainage: Cheat River, West Virginia Evan Hansen:...
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Transcript of Exploring Trading to Reduce Impacts of Acid Mine Drainage: Cheat River, West Virginia Evan Hansen:...
Exploring Trading to Reduce Impacts of Acid Mine Drainage:
Cheat River, West Virginia
Evan Hansen: Downstream Strategies, LLC Paul Ziemkiewicz, Jerry Fletcher, Todd Petty: W. Va.
UniversityGordon Hester: EPRI
Martin Christ, Rick Herd
The Cheat TMDL
Acid mine drainage: acidity and metals Abandoned and active coal mines 55 segments of Cheat and tributaries
on 303(d) list TMDL finalized in 2001 Few steps taken toward
implementation
Difficulties in implementing the Cheat TMDL Point sources
Lack of agency experience writing coal NPDES permits with WQBELs
Nonpoint sources Reductions often huge, difficult,
expensive Funding is scarce No implementation plan
A Cheat trading framework
Help implement the Cheat TMDL Reproducible for:
acid mine drainage other pollution problems due to orphan
sites Useful as West Virginia develops a
trading program
Goals and Objectives
Make TMDL implementation an effective, self-sustaining, locally-driven process
Develop an approach with: clear watershed remediation objectives funds for management and remediation
projects minimized friction among parties focused effort on prioritized watershed
remediation needs
The Crux Poor fit between remediation and
regulatory strategies Most investment toward fraction of the
problem Millions for construction, pennies for
management Need higher lever level of organization
and management to coordinate the many funding and program opportunities
Management takes professionals and they cost money
Regulation vs. remediation The cost of removing a ton of acid
load from acid mine drainage increases as the discharge is cleaned up: ~90% of AMD comes from orphan sites The TMDL requires tightening of NPDES
discharge limits (and reductions as orphan sites)
May cost a permittee thousands of dollars to remove 1 ton of acid load
The same money spent on an orphan site may remove 50 tons
Managing Investments in Watershed Improvement
Investments can be fit into a single watershed plan
Investments can be compared: Environmental benefits: Tons of
pollutant removed Ecological benefits: Stream miles with
recovered aquatic life Trading can play a role
Challenge Solution
Few permitted coal discharges remain in watershed; most already meet TMDL WLAs.
Allow cross-pollutant trades.
Need common currency to evaluate cross-pollutant trades.
Use “ecounits” to ensure that cross-pollutant trades result in net ecological benefit.
Difficult to perform ecological analyses
Establish Watershed Mgt. Authority to lower transaction costs and guide trading investments toward priorities.
Challenge Solution
Hard to ensure that purchased credits resulted in real, measurable improvements
Allow purchase of credits banked from public AMD remediation investments.
Proposed def’n of ecounits
WV Stream Condition Index (benthic macroinvertebrates, 0-100)
X
Stream segment area (length x width)
How to calculate the cost of an ecounit?1. Calculate how impaired the watershed is
now (how many ecounits are recoverable)
2. Calculate cost to fully remediate AMD3. Divide to get average cost of recovering
an ecounit
AVERAGE COST IS IMPORTANT
Watershed Management Authority Develop and implement the plan Coordinate public remediation
investments Solicit and evaluate trades Recommend trades to state
regulatory agency Build, operate, and maintain
remediation projects Manage trust fund and credit bank
Funding the Process Trust fund will accept cash paid for
credits Portion of trust fund available to
develop and update the plan, pay staff, and for other professional services
Most spent on additional remediation to generate more credits
How trading might work for the Cheat Authority develops plan for TMDL
implementation: remove about 11,000 tpy acid load from lower Cheat
Current public AMD remediation projects generate credits: Friends of the Cheat Army Corps Clean Water Act 319
The Albright Power Plant Thermal pollution variance may not
be renewed Thermal pollution affects about one
mile of the Cheat during low flow periods in late summer
Without variance, the utility must close the plant, install cooling towers, or negotiate a trade
Cost of cooling towers in multiple $10m
First cross-pollutant trade? In return for variance, utility would
make payment Amount based on:
Ensuring net ecological benefit (ecounits)
Trading ratio Authority would use funds to
remediate AMD and generate more credits
Summary: Key aspects of Cheat trading program Integrated into Watershed Management
Authority Watershed management plan guides
investments Trades are one of many types of investments Cross-pollutant trades, with net ecological
benefits and appropriate ratios Credit bank, capitalized by public investments