Lake Erie Water Quality Market

Paul Bohn, Esq.

Back in July 2015, I wrote a blog discussing a joint effort between Great Lakes states and Canadian provinces to address the dangerous levels phosphorous and nitrogen runoff that are causing massive algae blooms in Lake Erie. While the Great Lakes Commission (GLC) pledged a 40% reduction of algae blooms in Lake Erie by 2025, they did not discuss how they would achieve this.

Well, good news. The GLC has developed a plan to achieve their algae bloom reduction goal. The initiative will provide what’s called a water quality trading system. It is a market-based approach to pollution reduction, in which the government sets an overall water pollution reduction requirement and then provides water quality credits that can be earned by entities for reducing pollution.

If properly implemented, a supply and demand for these credits will be created. Industries that are engaging in pollution reduction will stock-pile the credits, and then sell them to those who have high pollution reduction costs.

The proposed trading system will include most pollution sources contributing to runoff into Lake Erie. This includes farmers, sewage treatment plants, power plants, and factories. It is a great alternative to traditional pollution reduction methods that force each pollution source to install expensive new technology to reduce their own emissions.

Now, pollution sources will be able to determine if they are best served by becoming a buyer or seller of credits, based on their ability to adhere to the new regulatory requirements. The GLC believes this innovative approach will significantly reduce pollution runoff and thereby improve water quality in Lake Erie, what do you think?

Lake Erie Water Quality Issues

Paul F. Bohn, Esq.

Not long ago on our Firm’s Facebook page, I posted a link directing folks to a website where they can keep up-to-date on beach closings in and around the southern Great Lakes (myBeachCast).   As some of you have noticed, last summer we saw another record year of beach closings in Lake St. Clair and southern Lake Erie, as well as an emergency shutdown of drinking water intakes in Toledo and other Lake Erie metropolitan areas, which helped focus national attention on this water quality issue. 

Two recent initiatives should help address these growing Lake Erie water quality concerns.  Recently, the 4R Nutrient Council voted to certify three Ohio businesses in 4R’s fertilizer reduction approach.  On the same day, the Environmental Defense Fund (“EDF”) announced an effort to eliminate and reduce fertilizer pollution in surface waters nationwide.  The 4R certified businesses serve landowners who own a combined 180,000 acres of tilled land, most of which drains into Lake Erie.  An overabundance of phosphorus flowing into Lake Erie’s western basin has helped feed the annual algae bloom and the recent 2014 summer mega-bloom, which shut down Toledo’s water supply system.  4R approach is directed at reducing phosphorus from entering both surface and groundwater.  The EDF initiative is aimed at supporting national fertilizer retailers, suppliers, agribusinesses and farmers’ efforts to maximize fertilizer efficiency and reduce phosphorus runoff.

In addition to reducing water pollution caused by the introduction of too much phosphorus, fertilizer optimization is expected to significantly reduce greenhouse gas emissions from agricultural activities as well.