Agenda Item 13b

Update: Ohio River Basin Water Quality Trading Project

2© 2012 Electric Power Research Institute, Inc. All rights reserved.

The Trading Plan is Signed!

August 9th, 2012 in Cincinnati Ohio

June 22: A nutrient pollution article in The Economist mentions EPRI's Water Quality Trading Program.

3© 2012 Electric Power Research Institute, Inc. All rights reserved.

On the Ohio River•Peter Tennant, ORSANCO•Harris Sherman, Undersecretary, USDA•Jessica Fox, EPRI•Bob Perciasepe, Deputy Administrator, EPA

4© 2012 Electric Power Research Institute, Inc. All rights reserved.

Water Quality Trading Signing Ceremony

Media Advisory and Press Release Coordinated with State and Federal Offices and Agricultural Community

• Extensive Coverage in Daily Newspapers and National Energy and Agricultural Trade Publications

5© 2012 Electric Power Research Institute, Inc. All rights reserved.

Upper Ohio

Lower MuskingumMiddle Ohio

GreatMiami

Pilot Trade Locations

6© 2012 Electric Power Research Institute, Inc. All rights reserved.

Details of Pilot Program

• Location of Pilot Trades• Overall Credit Process• Watershed Model• Agricultural Baselines• Reserve/Insurance Pool• Incentives for Early Buyers• Adaptive Management

7© 2012 Electric Power Research Institute, Inc. All rights reserved.

EPRI Gets $1,000,000 For Registry

A Credit Registry for the Ohio Basin WQT Program• The purpose of this project is to deploy an innovative,

secure and proven market infrastructure for pilot testing in the Ohio River Basin WQT Program.

• $1M of funding • Matching with $1M.

– Ohio Environmental Protection Agency

– Indiana Department of Environmental Management

– Kentucky Dept. of Environmental Protection

– Ohio River Valley Water Sanitation Commission (ORSANCO)

– American Farmland Trust

– Hunton & Williams

8© 2012 Electric Power Research Institute, Inc. All rights reserved.

Credit Trading Registry

9© 2012 Electric Power Research Institute, Inc. All rights reserved.

Next Steps and Schedule

• Contracts with States• RFP to Farmers• BMPs on the ground• Credits Come to Market• Transactions!

• Anticipate first transactions in early 2013.• Total Pilot period 2012-1015• In 2015, EPRI will transition management to another party.

10© 2012 Electric Power Research Institute, Inc. All rights reserved.

Ohio River Trading Project Website www.epri.com/ohiorivertrading