The overall goal of the Clean Water Act is to "restore and maintain the chemical, physical, and biological integrity of the Nation’s waters." In 1999, EPA proposed changes to Section 303(d), to establish Total Maximum Daily Loads (TMDLs) for watersheds that do not meet this goal. The TMDL is the highest amount of a given pollutant that is permissible in that body of water over a given period of time. TMDLs include both waste load allocation (WLA) for point sources and load allocations for non-point sources. In Appalachia, acid mine drainage (AMD) is the single most damaging non-point source. There is also particular concern of the atmospheric deposition of airborne sulfur, nitrogen, and mercury compounds. States are currently in the process of developing comprehensive lists of impaired waters and establishing TMDLs for those waters. EPA has recently proposed a final rule that will require states to develop TMDLs and implement plans for improving water quality within the next 10 years. Under the new rule, TMDL credits could be traded within a watershed.

Working in collaboration with the EPA, industry, state and local agencies and watershed groups NETL has initiated a project that integrates water quality improvements and carbon sequestration with mine land reclamation. The project will demonstrate the multiple benefits of mine land reclamation in terms of reducing TMDL pollutants from acid mine drainage and atmospheric deposition and enhancing natural carbon sinks, as well as providing a prototype model to understand watershed pollutant distribution before and after reclamation.

Carbon Storage
Over half of the electricity generated in the U.S. comes from coal-fired boilers and that fraction is projected to remain through the year 2020. Global coal use is expected to double in that same time period. The continuing demand on fossil-fuel-based power and the associated rise in carbon dioxide emissions will require that we find innovative ways for reduction through the capture and storage of carbon.

Vegetation and soils are natural carbon sinks. Although the amount of carbon that can be stored in natural ecosystems is limited, it is estimated that enhancing the natural storage could sequester half of the projected carbon dioxide excess. For example, land reclamation and reforestation programs can be integrated with energy production activities by amending the soils with coal combustion byproducts, agricultural waste, and/or biosolids.

Trading Framework
Trading systems have been proposed as methods for mitigating greenhouse gas emissions and improving water quality. Multi-pollutant trading systems are often touted as "win-win" situations. Industries are allowed flexibility in finding innovative solutions. Innovative solutions can lead to profits associated with environmental credits. Trading systems result in overall improved ecosystem health. Part of this project will explore a multi-pollutant trading system that includes TMDL and carbon credits.

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