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Project Activities: Field Trials Much research nutrient assimilative processes from native oysters has been based on laboratory experiments or computer simulation modeling. This project will document and report on nutrient assimilative processes at operating commercial oyster aquaculture facilities.
Project Activities: Financial Analysis  Without the opportunity to sell nutrient assimilation credits, an oyster enterprise only can receive revenue in the market for oyster meat. Expanding investments in oyster aquaculture may occur only if there are revenues from both assimilation credits and oyster meat sales. A financial analysis program is being constructed to estimate the rates of return to oyster facility investment. The user supplies information on meat prices, costs, growth rates, and mortality. The possible sale of nutrient assimilation credits can then be considered as a revenue source. The model calculates the nutrient assimilation credit price that would be needed to achieve a target rate of return. This price can be compared to costs to achieve a similar reduction in nutrients through conventional point and nonpoint source control practices.Project Activities: Nutrient Assimilation Credit Policy Analysis There must be a price offered for nutrient assimilation credits or new investments in oyster aquaculture may not be made. The project team is exploring ways that the demand for credits could be secured from regulated sources within existing and emerging nutrient management programs in Virginia and Maryland. As one possible application, point sources in the Chesapeake Bay region facing regulatory nutrient load caps could be allowed to establish nutrient assimilation credit “banks” as a risk management strategy against infrequent exceedences of nutrient load limits or might be allowed to purchase assimilation credits through a dedicated fund. Increasingly, land developers are facing similar nutrient offset requirements and nutrient assimilation credits may be considered a feasible compliance option. Also, government programs could use their authority and available funds to become “purchasers” of waste assimilation credits, as a complement to the way many agencies now “purchase” nutrient reductions by cost sharing installation of BMPs.
A nutrient assimilation credit is the unit of account (expressed in pounds of nutrients harvested per year) for possible use within existing programs and policies. To provide confidence in the quality of the assimilation credits to be sold, procedures will be developed for defining credits, including baseline and verification protocols. Based on the field trials simple, but not simplistic, measurement protocols for program implementation will be designed. The quality assurance that can be secured for oyster assimilation credits over time will be compared to assurances required when credit is given for nonpoint source BMP adoption. |
