Nature of Activity: The Blue Plains Waste Water Treatment Plant (a POTW in Washington, DC) and the State of Virginia have agreed in principle to an interstate purchase of effluent reductions in order to help Virginia meet its Chesapeake Bay goals for the year 2000. A few POTWs in Virginia are slightly behind schedule in upgrading facilities to meet the Chesapeake Bay goals. Blue Plains currently employs biological nutrient reduction (BNR) on approximately half of its flow. Virginia will pay Blue Plains to implement BNR for the remainder of its flow so as to achieve more nutrient reduction than is required of Blue Plains. Virginia will pay the cost associated with the additional BNR. Since Blue Plains already has some BNR in place, it is easier for the DC plant to expand BNR than for the Virginia plants to install BNR de novo. The duration of the purchase would be until the Virginia POTWs upgrade their own systems.

Environmental Problem: Eutrophication of the Potomac River and the Chesapeake Bay.

Pollutant(s) / Pollution Type(s): Nitrogen

Trade Types: Point/point.

Stage of Implementation: As of late 1999, the agreement is near finalization. The costs of the additional nitrogen reduction are being evaluated by a consulting firm. Virginia has set aside money for the purchase of the credits that may be used beginning January 1, 2000. Virginia’s POTWs are expected to be upgraded by 2003.

Relation to TMDL: There is no direct relation to the Chesapeake Bay TMDL

Number of Potential Participants: The State of Virginia, several POTWs, the District of Columbia, and the Blue Plains WWTP.

Trading Ratios: 1:1

Estimated Cost Savings: Virginia has set aside $3.35 million through the Water Quality Improvement Fund for purchasing reductions at Blue Plains. It has been estimated that every mg/L reduction in nitrogen concentration from the Blue Plains flow reduces approximately one million lbs. of nitrogen loadings to the Potomac. If payment of $3.35 million over two years achieves six million lbs. of reduction (going from 7.5 mg/L to 4.5 mg/L for two years), the resulting cost would be $0.58/lb. reduced, a very inexpensive reduction. The Virginia POTWs would not have been able to achieve the reductions themselves by 2000.

Available Written Information: The Annual Report of the Water Quality Improvement Fund (1/99), Annual Report of Nutrient Reduction Strategies for Virginia’s Tributaries to the Chesapeake Bay (11/98), and a forthcoming report by a consulting firm (DMG Maximus) on the costs of additional nitrogen removal.

Innovative Aspects: The trade would be an interstate trade.

Obstacles: The trade must be approved by the U.S. EPA. With Virginia paying for additional reductions, Blue Plains will meet a 4.5 mg/L standard. Once VA no longer needs the credits, DC will meet a 7.5 mg/L standard, thus Blue Plains is concerned about potential violation of anti-backsliding requirements.

Web Sites: Washington, DC: http://www.epa.gov/surf2/states/DC/

Contacts: Walter Bailey, DC Water and Sewer Authority (202) 645-6299.

John Kennedy, Virginia DEQ . (804) 698-4312, jmkennedy@deq.va.state.us