Nature of Activity: A watershed-wide pilot trading project is being developed in the Red Cedar River watershed as part of the State of Wisconsin’s program to investigate trading. Prior to the State legislation, local groups had already performed significant modeling and monitoring. Of the eighteen municipalities in the watershed, the City of Cumberland has gone the farthest toward implementing a trade. The City’s POTW is faced with a phosphorus discharge limit of 1 mg/L, but the City would prefer to obtain an equivalent reduction at lower cost by funding offsets from nonpoint sources. A reduction of 4,400 pounds of phosphorus per year would need to be obtained from lands that drain to the Hay River. Other municipalities in the watershed, including the Village of Colfax, are beginning to pursue similar strategies in order to meet the same 1 mg/L effluent limit.

Environmental Problem: Algal blooms, macrophytes, and low dissolved oxygen concentrations in Tainter Lake.

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

Trade Types: If implemented, both the Cumberland and Colfax efforts would be point/nonpoint trades. Approximately 80% of the phosphorus loadings to the watershed are from nonpoint sources, thus the POTWs are seeking to contract with landowners to implement BMPs.

Stage of Implementation: The Red Cedar project started in 1994. A basin water quality model that assigns approximate loading rates to different land uses was developed. The watershed was chosen as a pilot for the Wisconsin program in 1997/1998. Cumberland is surveying nonpoint sources, evaluating BMPs, and pursuing trades with landowners. The city has submitted a report on its proposed trading project to the Wisconsin Department of Natural Resources but has not yet contracted with any landowners. Colfax is investigating trading and will submit a proposal to the Wisconsin DNR similar to the Cumberland proposal.

Relation to TMDL: TMDL development will begin within two years based on past and ongoing modeling.

Number of Potential Participants: The City of Cumberland and the Village of Colfax, their respective county Land Conservation Departments, and multiple nonpoint sources.

Trading Ratios: 2:1. Cumberland must reduce watershed phosphorus loads by an amount equal to twice what they would need to abate in the absence of trading.

Estimated Cost Savings: The economics of the trading program are being investigated and administrative costs are being tracked separately.

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.

Innovative Aspects: The project is part of a State-wide project to evaluate trading (discussed in this report). The City of Cumberland’s permit requires that the City either commit to trading or implement controls at the plant to achieve the 1 mg/L standard. A detailed agreement between the WI DNR and the City pursuant to the permit subsequently established many specifications for the trading program, including dates by which the City must obtain commitments for the trades (October 1, 2000) and must implement the trades (October 1, 2001). The City may discontinue this trading agreement at any time, but if so, it must construct phosphorus removal facilities at the treatment plant during the following construction year.

Obstacles: Lack of substantial interest on the part of farmers, many of whom are wary of entering into long term agreements.

Web Sites: Red Cedar: http://www.epa.gov/surf2/hucs/07050007/

Lowe Chippewa: http://www.epa.gov/surf3/hucs/07050005/

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