Water quality trading opportunities in two sub-watersheds in the northern Lake Okeechobee watershed.

For decades, the increase of nutrient enrichment has threatened the ecological integrity and economic sustainability of many rivers, lakes, and coastal waters, including Lake Okeechobee, the second largest freshwater lake in the contiguous United States. Water quality trading programs have been an area of active development to both, reduce nutrient pollution and minimize abatement costs. The objective of this study was to apply a comprehensive modeling framework, integrating a hydrologic-water quality model with an economic model, to assess and compare the cost-effectiveness of a water quality trading program over a command-and-control approach in order to reduce phosphorus loadings to Lake Okeechobee. The Upper Kissimmee (UK) and Taylor Creek/Nubbin Slough (TCNS) sub-watersheds, identified as major sources of total phosphorus (TP) loadings to the lake, were selected for this analysis. The effect of different caps on the market potential was assessed while considering four factors: the least-cost abatement solutions, credit prices, potential cost savings, and credit supply and demand. Hypothetical trading scenarios were also developed, using the optimal caps selected for the two sub-watersheds. In both sub-watersheds, a phosphorus credit trading program was less expensive than the conventional command-and-control approach. While attaining cost-effectiveness, keeping optimal credit prices, and fostering market competition, phosphorus reduction targets of 46% and 32% were selected as the most appropriate caps in the UK and TCNS sub-watersheds, respectively. Wastewater treatment facilities and urban areas in the UK, and concentrated animal feeding operations in the TCNS sub-watershed were identified as potential credit buyers, whereas improved pastures were identified as the major credit sellers in both sub-watersheds. The estimated net cost savings resulting from implementing a phosphorus trading program in the UK and TCNS sub-watersheds were 76% ($ 34.9 million per year) and 45% ($ 3.2 million per year), respectively. It is important to note that the realization of the environmental and economic benefits of this market-based alternative is also contingent on other important factors, such as the market structure, the specific program rules, the risk perception, and the education and outreach to develop trusted relationships among regulatory agencies, the public sector, and other stakeholders. Nevertheless, this research provided the foundation for stakeholders to better understand whether water quality trading has the potential to work in the Lake Okeechobee watershed and to facilitate the development of a pilot program.

Modeling a phosphorus credit trading program in an agricultural watershed.

Water quality and economic models were linked to assess the economic and environmental benefits of implementing a phosphorus credit trading program in an agricultural sub-basin of Lake Okeechobee watershed, Florida, United States. The water quality model determined the effects of rainfall, land use type, and agricultural management practices on the amount of total phosphorus (TP) discharged. TP loadings generated at the farm level, reaching the nearby streams, and attenuated to the sub-basin outlet from all sources within the sub-basin, were estimated at 106.4, 91, and 85 mtons yr(-)(1), respectively. Almost 95% of the TP loadings reaching the nearby streams were attributed to agriculture sources, and only 1.2% originated from urban areas, accounting for a combined TP load of 87.9 mtons yr(-)(1). In order to compare a Least-Cost Abatement approach to a Command-and-Control approach, the most cost effective cap of 30% TP reduction was selected, and the individual allocation was set at a TP load target of 1.6 kg ha(-1) yr(-1) (at the nearby stream level). The Least-Cost Abatement approach generated a potential cost savings of 27% ($1.3 million per year), based on an optimal credit price of $179. Dairies (major buyer), ornamentals, row crops, and sod farms were identified as potential credit buyers, whereas citrus, improved pastures (major seller), and urban areas were identified as potential credit sellers. Almost 81% of the TP credits available for trading were exchanged. The methodology presented here can be adapted to deal with different forms of trading sources, contaminants, or other technologies and management practices.

Sulfate threshold target to control methylmercury levels in wetland ecosystems.

Sulfate contamination has a significant environmental implication through the stimulation of toxic hydrogen sulfide and methylmercury (MeHg) production. High levels of MeHg are a serious problem in many wetland ecosystems worldwide. In the Florida Everglades, it has been demonstrated that increasing MeHg occurrence is due to a sulfate contamination problem. A promising strategy of lowering the MeHg occurrence is to reduce the amount of sulfate entering the ecosystem. High surface water sulfate concentrations in the Everglades are mainly due to discharges from the Everglades Agricultural Area (EAA) canals. Water and total sulfur mass balances indicated that total sulfur released by soil oxidation, Lake Okeechobee and agricultural application were the major sources contributing 49,169, 35,217 and 11,775mtonsyear(-1), respectively. Total sulfur loads from groundwater, levees, and atmospheric deposition contributed to a lesser extent: 4055; 5858 and 4229mtonsyear(-1), respectively. Total sulfur leaving the EAA into Water Conservation Areas (WCAs) through canal discharge was estimated at 116,360mtonsyear(-1), and total sulfur removed by sugarcane harvest accounted for 23,182mtonsyear(-1). Furthermore, a rise in the mineral content and pH of the EAA soil over time, suggested that the current rates of sulfur application would increase as the buffer capacity of the soil increases. Therefore, a site specific numeric criterion for sulfate of 1mgL(-1) was recommended for the protection of the Everglades; above this level, mercury methylation is enhanced. In parallel, sulfide concentrations in the EAA exceeded the 2µgL(-1) criterion for surface water already established by the U.S. Environmental Protection Agency (EPA).