F2F Technical Session #1
March 31, 2010
- Michael Collins briefing to the group on current ideas for Auction and OEE model.
- Discussion started with OEE model…
- Model renders expenditures we previously thought were just “good ideas” into tangible benefits
- Thoughts on revenue generation
- Many types of revenue in a watershed
- Base rates
- Revenue impact fees
- Conservation rates
- Revenue streams not just from base rates
- Declining and inclining block rates
- Revenue proposed is for “non-normal” expenditure?
- How complicated is necessary for revenue piece of model? Perhaps real issue is just dollars.
- Not building a commercial platform
- Getting revenue for sediment possible, harder for nutrients and baseflow is very tricky
- Isn’t the goal here “efficiency of environmental expenditure”?
- Thoughts on translation of revenue into environmental management
- MEASURES does account for differences in pollutant load from flat vs. steep topography, i.e., it allows comparisons between biophysically different areas
- Run of river water systems…they would also have a need for this model but might be more in the arena of flow, although there can be sediment problems here as well.
- Philosophy of the project…
- This is a shift in thinking that is being proposed here – market-based systems such as the one under discussion replacing government.
- Market-oriented projects such as the F2F augments government, not replace it.
- Be careful about terms like “command and control”.
- Enrollment of people and organizations about this philosophy…
- How will this be done?
- Isn’t it needed before “auction”?
- The Auction…
- May not want to call this an auction
- Consider the term “watershed marketplace”
- RFP is another term some folks know
- Be transparent – need to let bidders know what they will be evaluated on – not just price but potential sediment/nutrient reductions
- It would be great if we could build that into the bidder’s knowledge – work MEASURES into the bidding?
- Instead of prioritization up front, prioritize at the back – to get more participants
- Consider how Albemarle County does bidding process.
- Where project ends…
- The essence of the project is revenue $ to lbs. pollution
- The essence of the project is revenue $ to gallon potable H2O