The Tar-Pamlico Nutrient Trading Program-was adopted in 1989 by the North
Carolina Division of Environmental Management as an innovative approach to
managing nutrient inputs from both point sources and
premise of the program is that cost-sharing for agricultural best management
practices is more cost-effective in reducing nutrient loading than controlling
nutrients from point sources. The initial phase of the program, which ended in
1994, is currently being evaluated to determine changes warranted for Phase II.
During Phase of the program, formal trading (transfer of funds) has not occurred
because point source loadings have not exceeded the basinwide limits.
Nevertheless, Phase I has largely been the subject of praise from governmental
agencies, dischargers, and environmental groups because of the conceptual and
institutional framework that it established.
The goal of this report is to provide accurate and up-to-date info&nation on which
decisions can be based concerning nutrient trading payments in Phase II of the
Tar-Pamlico Nutrient Trading Program. Specifically, this report presents
per kilogram of nutrient load reduced) for cost-shared
in the Tar-Pamlico basin. This study has endeavored to obtain and
present the most recent and geographically relevant cost and effectiveness
information available. Preference was given to data collected within the
Pamlico basin. When data were not available from within the basin, results were
used from studies conducted in similar geographic provinces or ecoregions.
It should be emphasized that the inherent variability associated with both BMP
costs and effectiveness introduces substantial uncertainty into the development
and use of cost-effectiveness values. It is a goal of this report to fully document
the assumptions and limitations associated with the development and use of the
cost-effectiveness values that.are presented. Chapter 3 discusses specific
uncertainties and the resulting need for a safety factor.