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USDA Announces Funding for Water Quality Markets, Seeks Proposals for Projects:

$10 Million Available for Projects Nationally

TOLLAND, CT – Jay T. Mar, Connecticut State Conservationist for the Natural Resources Conservation Service (NRCS), today announced a funding opportunity that will bring states, USDA and other stakeholders together to enhance the effectiveness of water quality credit trading. NRCS is providing up to $10 million in Conservation Innovation Grants (CIG) for these projects. Proposals for projects are due March 2, 2012.

“For the first time USDA has offered funding specifically for water quality trading,” said Mar. “The goal is to help partners develop strong and meaningful markets; and to demonstrate that markets are a cost-effective way to improve water quality. Agricultural producers are critical to the function of these markets,” he said.

Water quality credit trading is a market-based approach to lowering the costs of reducing pollution, and has the potential to engage more farmers and ranchers in water quality improvement efforts through the implementation of more conservation practices on agricultural lands. Through this approach, a producer who implements conservation practices to reduce water quality pollutants can also benefit by generating water quality market credits that could be sold in an open market – reducing the cost of implementing and maintaining the conservation practices.

NRCS is looking for proposals for projects that:

  • Support the completion of state water quality market rules and infrastructure needed to carry out water quality trading between point and non-point sources
  • Deploy and test tools and metrics needed for crediting and verifying the effectiveness of conservation practices on agricultural lands
  • Establish certification, registry, and reporting systems
  • Educate and reach out to agriculture and other sectors

CIG funds will be awarded through a competitive grants process. At least 50% of the total cost must come from non-federal matching funds, including cash and in-kind contributions provided by the grant recipient. Projects must involve producers who are eligible for the NRCS Environmental Quality Incentives Program.

To apply electronically, visit Grants.gov or contact Nancy Ferlow at (860) 871-4049.

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