Nature of Activity: A watershed-wide pilot trading project is being developed in the Fox and Wolf Basins as part of the State of Wisconsin’s program to investigate trading. Trading in the Fox-Wolf Basin would aim to reduce phosphorus loadings to Green Bay. As a result of a 1988 Remedial Action Plan for the Basin, point source dischargers were required to meet a 1 mg/L phosphorus limit. Further, a level of 0.3 mg/L was set as a goal for the future. A study of the potential economic advantages of trading in the Fox-Wolf was recently released. The study’s conclusions are: 1) the lower Fox Basin appears to be ripe for trading because further nonpoint source reductions may be less expensive to achieve than further point source reductions; 2) the Upper Fox Basin may not be an appropriate locus for trading since further point source reductions may be more cost-effective than further nonpoint source reductions; and 3) trading on the Wolf may be contingent on future discharge limits faced by WWTPs.

Environmental Problem: Dissolved oxygen and eutrophication in Green Bay.

Pollutant(s) / Pollution Type(s): Phosphorus.

Trade Types: Both point/point and point/nonpoint trades are being discussed.

Stage of Implementation: The project was chosen as a pilot in a State-wide study in 1997/1998. One potential trade has been identified. The project will have a pilot project status for two years. If trades occur, the contract period can be no longer than five years.

Relation to TMDL: TMDLs will be developed for segments of the basin. It is expected that TMDL development will encourage investigation of trading opportunities for pollutants other than phosphorus. Modeling and monitoring efforts are already complete.

Number of Potential Participants: There are potentially hundreds of participants in a very large area. A team of partners examining trading includes Fox-Wolf Basin 2000, Inc. (a not-for-profit organization that acts as the lead agency for the trading program), and many stakeholders from governmental, academic, environmental and corporate entities.

Trading Ratios: Trading ratios are among the topics being discussed.

Estimated Cost Savings: The study found that BMPs can reduce phosphorus from nonpoint sources at an average cost of $26/lb., while further reductions from point sources would cost an average of $73/lb. The expected average cost savings would therefore be $47/lb (though the range of control costs for both point and nonpoint reductions is quite large).

Available Written Information: The first and second annual reports to the Governor from the Wisconsin DNR are available. A brief description is available from the Great Lakes Trading Network. Fox-Wolf 2000 publishes a quarterly newsletter and has several reports available on their web site. A full report by Resource Strategies, Inc. was recently published by Fox-Wolf 2000 and the Water Environment Research Foundation.

Innovative Aspects: The program is part of a State-wide project to evaluate trading (discussed in this report).

Obstacles: Many municipal dischargers have already installed phosphorus controls to meet an international agreement to reduce loadings to the Great Lakes and may not need further reductions, thus the pool of potential buyers may be limited.

Web Sites: Fox River: http://www.epa.gov/surf2/ahr/14/

Wolf: http://www.epa.gov/surf2/hucs/04030202/

Contacts: Mary Anne Lowndes, WI DNR, (608) 261-6420, lowndm@dnr.state.wi.us

Jim Pinkham, Bruce Johnson, Fox-Wolf Basin 2000, (920) 738-7025, jpinkham@athenet.net , foxwolf@athenet.net