Nutrient Assimilation Services for Water Quality Credit Trading Programs: A Comparative Analysis with Nonpoint Source Credits

Abstract

Water quality trading programs allow regulated point sources to meet some nutrient control requirements by buying nutrient reduction credits from other pollutant sources. Reduction credits can be created when agricultural land managers implement best management practices and regulators predict that those practices will result in water quality conditions equivalent to controlling discharges at the regulated source. However, natural variability in runoff combines with model and data limitations to make predictions of water quality equivalence uncertain. Nutrient assimilation credits can be created by increasing the capacity of the ecosystem to assimilate nutrients through investments in aquatic plant biomass creation and harvest, shellfish aquaculture, stream restoration, and wetlands restoration and creation. Nutrient assimilation credits and agricultural nonpoint source reduction credits are evaluated based on a number of water quality criteria including service quantification certainty, temporal matching, additionality, and leakage. Nutrient assimilation credits can provide greater certainty than agricultural best management practices in producing equivalent water quality outcomes and should be an option in trading programs.