Investigating the cost-effectiveness of nutrient credit use as an option for stormwater permitting requirements.
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2014-07-01
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Abstract:The purpose of this study was to determine the feasibility of the Virginia Department of Transportation (VDOT) ; participating in water quality trading (WQT) in lieu of constructing onsite structural best management practices (BMPs) to ; achieve compliance with Virginia water quality standards for stormwater runoff for linear development projects. The objectives ; of the study were (1) to assess the potential credit demand for VDOT projects, focusing on the James River watershed as a case ; study; and (2) to compare the costs to VDOT of constructing BMPs and participating in WQT. ; Data, including a database of existing BMPs, construction plans, and detailed cost estimates, were provided by VDOT. ; To assess the potential credit demand, details of existing BMPs were reviewed for eligibility to participate in WQT. For the cost ; comparison, a cost estimate for select linear development projects with BMPs was calculated and then compared to credit costs. ; Based on 19 years of historical data, VDOT could have used between 1 and 63 pounds of phosphorous credits per year ; and a median of 11 pounds of phosphorous credits per year for the James River watershed if current WQT guidelines had been in ; place over this period of time. In the hypothetical scenario where VDOT’s participation in the WQT program was allowed in lieu ; of VDOT’s construction of nine BMPs, VDOT would have realized a cost savings of 5% to 75%, with an average cost savings of ; 51%. These results suggest that participating in WQT at current market rates in lieu of constructing onsite structural BMPs is an ; economically feasible solution for VDOT to manage stormwater quality. It should be noted that market rates for phosphorus ; credits may change in the future. ; VDOT’s Location and Design Division should continue purchasing stormwater credits for those projects that are eligible ; for WQT.
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Main Document Checksum:urn:sha256:6880372b1ceaa79c7a330f0740f710473fba57928d06fc36563c01e85fdd8ac3