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Pledge Agreement and Letter of SupportCity of Dubuque City Council Meeting Action Items # 3. Copyrighted August 16, 2021 ITEM TITLE: Pledge Agreement and Letter of Support SUMMARY: City Manager recommending approval of a Pledge Agreement and Letter of Support for inclusion in the Minnesota Board of Water and Soil Resources' application for a USDA Natural Resources Conservation Service Conservation Innovation Grant. SUGGESTED Suggested Disposition: Receive and File; Approve DISPOSITION: ATTACHMENTS: Description Type Pledge Agreement and Letter of Support-MVM Memo City Manager Memo Staff Memo Staff Memo Pledge Letter Supporting Documentation Conservation Innovation Grant Proposal Supporting Documentation THE CITY OF DUB E Masterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Pledge Agreement and Letter of Support DATE: August 10, 2021 Dubuque All-A�a�ip qq �� :; �� 2007.2012.2013 zoi�*Zoi9 Water and Resource Recovery Center Manager Willie O'Brien recommends City Council approval of a Pledge Agreement and Letter of Support for inclusion in the Minnesota Board of Water and Soil Resources' application for a USDA Natural Resources Conservation Service Conservation Innovation Grant. The City of Dubuque has established a memorandum of understanding with the Iowa Department of Natural Resources to reduce nitrogen and phosphorus in wastewater discharge by 66% and 75%, respectively. The need for the reductions is driven by Clean Water Act permit compliance. Alongside this nutrient reduction effort, the city, county, and soil and water conservation district have been collaborating on efforts to implement conservation that will mitigate flood damages experienced across Dubuque County. The partners have already made substantial progress by completing watershed planning efforts that target locations and methods best suited to address water quantity and quality issues, utilizing the Agricultural Conservation Planning Framework (ACPF) and the Prioritize, Target, and Measure Application (PTMApp). This project will identify constructable climate -smart water storage and treatment practices that can be utilized for water quality offsets to the City of Dubuque's nutrient reduction requirements, while also providing opportunities to address flooding issues. The project will also investigate innovative financial approaches for accelerating the implementation of identified practices. City of Dubuque financial support for the project includes $45,000.00 in kind, over the three-year project. This funding was previously budgeted to support watershed activities identified under the 28E agreement with Dubuque County and the Dubuque Soil and Water Conservation District. I concur with the recommendation and respectfully request Mayor and City Council approval. Mic ael C. Van Milligen MCVM:jh Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager William O'Brien, Water and Resource Recovery Center Manager THE CITY OF DUB E Masterpiece on the Mississippi TO: Michael C. Van Milligen, City Manager FROM: William O'Brien, W&RRC Manager SUBJECT: Pledge Agreement and Letter of Support DATE: August 10, 2021 Dubuque All•p�aeriea 6ity Y,9��NiAL[]Vlf� I F,4 i F 1��®r zao�•zoiz�zois zoi�*zoi9 INTRODUCTION: The purpose of this memo is to provide additional information regarding City of Dubuque support of the Minnesota Board of Water and Soil Resources' application for a USDA Natural Resources Conservation Service (NRCS) Conservation Innovation Grant. BACKGROUND: In May of 2012, the City Council adopted Resolution 124-12 authorizing the execution of a 28E Agreement with the County, the District, and the cities of Asbury, Peosta, and Centralia for the establishment of a Catfish Creek Watershed Management Authority (CCWMA). The CCWMA facilitates collaboration on reducing flood risks, improving water quality, providing information to help empower residents, and oversee the implementation of improvements. The 2013 Iowa Nutrient Reduction Strategy called for the Iowa Department of Natural Resources and the Iowa department of Land Stewardship to work with partners to establish and implement voluntary market -based approaches to nutrient reduction. Key stakeholders advised on the development of a strategy focused on Water Quality Credit Trading programs which would improve collaboration between sectors to improve water quality in Iowa. To help develop a Nutrient Reduction exchange framework the Iowa League of Cities received aUSDA-NRCS Conservation Innovation Grant, in fall 2015, to help develop a water quality credit trading program, along with the Iowa Department of Natural Resources, the City of Dubuque, the City of Storm Lake, University of Iowa, Iowa State University, Nyemaster Goode, P.C., Kieser &Associates, LLC, and Troutman Sanders, LLP. The framework was completed in late 2018 and then transferred to IDNR for implementation. Work on this project resulted in modifications to National Pollutant Discharge Elimination System (NPDES) permits, allowing point source discharges (e.g. City of Dubuque) to evaluate and propose to implement practices within the watershed that may achieve greater reductions in nitrogen or phosphorus than the preferred methods) alone. In early 2019 the City of Dubuque began working with the Sand County Foundation to establish a Memorandum of Understanding between the City of Dubuque and the Iowa Department of Natural Resources. The agreement was signed on April 6t", 2020, and provides a legal mechanism, whereby nutrient reductions made in the watershed may be applied toward meeting the nutrient reduction requirements of the City's NPDES permit. In 2019, the City hired Houston Engineering to complete a hydrologically conditioned Digital Elevation Conservation Planning model, complete ACPF model, and to prepare Implementation Profiles and Targeted Conservation Portfolios for the Catfish Creek Watershed (3 HUC-12 watersheds) in addition to the remaining 27 HUC-12 watersheds within Dubuque County. In September of 2020, the City Council adopted Resolution 283-20 authorizing the execution of a 28E Agreement with Dubuque County and the Dubuque Soil and Water Conservation District to collaborate on stormwater, flooding, and water quality issues throughout the County. This new 28E agreement replaces the existing 28E agreement with Dubuque County, and the Dubuque Soil and Water Conservation District. In July 2021, the City was invited to take part, as a project affiliate, in the Minnesota Board of Water and Soil Resources' application for a USDA Natural Resources Conservation Service (NRCS) Conservation Innovation Grant. This project includes three innovative approaches for tackling these challenges; 1) develop pathways for identifying constructable climate -smart water storage and treatment practices that reduce and store runoff while providing water quality and habitat benefits, 2) establish regionally impactful water quality offset plans that pinpoint opportunities to invest in nutrient reduction practices within regulatory frameworks for water quality trading, 3) demonstrate how our innovations help to attract additional funding, such as private capital pay -for -performance programs and philanthropic contributions, thus accelerating the adoption of climate -smart practices. DISCUSSION: The City of Dubuque has established a memorandum of understanding with the Iowa Department of Natural Resources to reduce nitrogen and phosphorus in wastewater discharge by 66% and 75%, respectively. The need for the reductions is driven by Clean Water Act permit compliance. Alongside this nutrient reduction effort, the city, county, and soil and water conservation district have been collaborating on efforts to implement conservation that will mitigate flood damages experienced across Dubuque County. The partners have already made substantial progress by completing watershed planning efforts that target locations and methods best suited to address water quantity and quality issues, utilizing the Agricultural Conservation Planning Framework (ACPF) and the Prioritize, Target, and Measure Application (PTMApp). This project will identify constructable climate -smart water storage and treatment practices that can be utilized for water quality offsets to the City of Dubuque's nutrient reduction requirements, while also providing opportunities to address flooding issues. The project will also investigate innovative financial approaches for accelerating the implementation of identified practices. City of Dubuque financial support for the project includes $45,000.00 in kind, over the three-year project. This funding was previously budgeted to support watershed activities identified under the 28E agreement with Dubuque County and the Dubuque Soil and Water Conservation District. I recommend approval of the attached Pledge Agreement and Letter of Support, for inclusion in the Minnesota Board of Water and Soil Resources' application for a USDA Natural Resources Conservation Service (NRCS) Conservation Innovation Grant. BUDGET IMPACT: The project leverages previously budgeted funds and incurs no additional expense to the City. ACTION REQUIRED: Please review and approve as a consent item for the August 16t" 2021 City Council Meeting agenda. Cc: Gus Psihoyos, City Engineer Deron Muehring, Civil Engineer Teri Goodman, Director of Strategic Partnerships Enc: Pledge Agreement and Letter of Support MN Board of Water and Soil Resources CIG Proposal THE CITY OF Dub E Masterpiece on the Mississippi Pledge Agreement and Letter of Support Organization: City of Dubuque 50 West 13t" Street Dubuque, IA 52001 Applicant Organization: Minnesota Board of Soil and Water Resources Dubuque All•pmerisa City WSfICYvILCP'N:I �-.v.�3 ��®� zao�•zoiz•zois zo1�*zo19 Project Title: An Innovative Approach to Climate Resiliency, Water Quality Trading, and Financing Conservation Practices in the Upper Midwest Attn: NRCS CIG Team Description of Match Contribution: The City of Dubuque maintains amulti-jurisdictional agreement with Dubuque County and the Dubuque Soil &Water Conservation District aimed at enhancing the "beneficial collaboration among Dubuque County citizens and governmental entities related to conservation planning and farming operations." The City of Dubuque is committing to allocate up to $45,000, in -kind, for staff time and resources currently supporting the multijurisdictional agreement. We believe the City's current watershed efforts will match closely and enhance the goals and outcomes of the project and support our partnerships' ability to transfer the results of this innovative project to other parts of the Upper Midwest and to regions outside of the Upper Midwest. Pledge Statement: City of Dubuque pledges to make this contribution over the USDA NRCS 2021 Conservation innovation Grants funding period as an in -kind match, in the form of existing budgeted funds for staff time, to USDA NRCS CIG grant funds awarded to the Minnesota Board of Water and Soil Resources for the Innovative Conservation project, An Innovative Approach to Climate Resiliency, Water Quality Trading, and Financing Conservation Practices in the Upper Midwest. Authorized Representative: /��y' "�'` �wh ichael C. Van Milligen City Manager City of Dubuque, Iowa An Innovative Approach to Climate Resiliency, Water Quality Trading, and Conservation Finance, Upper Midwest - -New - 2021 - MN Board of Water and Soil Resources -Submitted Cover Page Applicant Entity Name: MN Board of Water and Soil Resources Project Title: An Innovative Approach to Climate Resiliency, Water Quality Trading, and Conservation Finance, Upper Midwest Project Duration: 3 Amount of Federal Funding Requested: $937,392.97 Amount of Non -Federal Contributions Committed: $1,285,112.82 Technical Contact Name: Rita Technical Contact Phone: 651-769-5292 Technical Contact Email: rita.weaver@state.mn.us Admistrative Contact Name: Suzanne Admistrative Contact Phone: 612-875-1345 Admistrative Contact Email: suzanne.rhees@state.mn.us Geographic Location of the Project: MN, IA;MN National Priority: Water Resources and Increased Resilience Sub Priority: Competing for Historically Underserved Set Aside: No Page 1 of 20 An Innovative Approach to Climate Resiliency, Water Quality Trading, and Conservation Finance, Upper Midwest - -New - 2021 - MN Board of Water and Soil Resources -Submitted Project Information Tab General Project Information: Project Title Applicant Legal Name An Innovative Approach to Climate Resiliency, Water MN Board of Water and Soil Resources Quality Trading, and Conservation Finance, Upper Midwest Organizational Unit -Department Name MN Board of Water and Soil Res Applicant Type State Government Address 1 Board of Water and Soil Resources City St Paul Zip Code 55155 Lead State MN Proposed Start Date Tue Feb O1 00:00:00 GMT 2022 Proposed End Date Fri Jan 31 00:00:00 GMT 2025 Contact Information: Contact Title Special Projects Coordinator Middle Name Contact Email suzanne.rhees@state.mn.us Authorized Representative: Authorized Official Title Assistant Director Authorized Official Middle Name Authorized Official Email david.weirens@state.mn.us Authorized Official Phone 651-297-3432 Organizational Unit -Division Name MN Board of Water and Soil Res Application Type New Address 2 520 Lafayette Rd. N State MN Project Priority Water Resources and Increased Resilience States Involved IA;MN Project Duration (In Years) 3 First Name Suzanne Last Name Rhees Contact Phone 6128751345 Authorized Official First Name David Authorized Official Last Name Weirens Authorized Official Secondary Email suzanne.rhees@state.mn.us Organizational Affiliation BWSR Page 2 of 20 An Innovative Approach to Climate Resiliency, Water Quality Trading, and Conservation Finance, Upper Midwest - -New - 2021 - MN Board of Water and Soil Resources -Submitted Technical Lead Contact Information: Technical Lead Title Chief Engineer Technical Lead Middle Name Technical Lead Email rita.weaver@state.mn.us Organizational Affiliation BWSR Administrative Lead Contact Information: Administrative Lead Title Special Projects Coordinator Administrative Middle Name Administrative Lead Email suzanne.rhees@state.mn.us Organizational Affiliation BWSR Additional Information: SAM.gov registration date of expiration Wed Sep 15 00:00:00 GMT 2021 Organizational DUNS Number 947589040 Congressional District -Applicant MN-004 Is the Applicant Delinquent On Any Federal Debt? No Technical Lead First Name Rita Technical Lead Last Name Weaver Technical Lead Phone 651-769-5292 Administrative Lead First Name Suzanne Administrative Lead Last Name Rhees Administrative Lead Phone 612-875-1345 Employer/Taxpayer Identification Number (EIN/TIN) #41-6007162 Congressional Districts) -Project MN-001, MN-002, MN-004, MN-006, MN-007, MN008 IA-001 Has this project team submitted this proposal or a similar proposal to any other funding opportunities? Does this project relate to an NRCS practice standard? No Number of participating producers Historically Underserved: Does this project involve Historically Underserved producers? Estimated HU Participants No Is this team applying for the Historically Underserved set aside? Type of Qualifying Entity No Page 3 of 20 An Innovative Approach to Climate Resiliency, Water Quality Trading, and Conservation Finance, Upper Midwest - -New - 2021 - MN Board of Water and Soil Resources -Submitted Abstract: Abstract Climate change is creating storm events and precipitation trends that damage streams, lakes, drainage systems and agricultural lands. These trends also worsen water resource issues associated with excess nutrients. While traditional conservation practices are still needed, innovative approaches are crucial to addressing the climate resiliency of our water resources and reducing the nutrients lost from agricultural lands. This project includes three innovative approaches for tackling these challenges; 1) develop pathways for identifying constructable climate -smart water storage and treatment practices that reduce and store runoff while providing water quality and habitat benefits, 2) establish regionally impactful water quality offset plans that pinpoint opportunities to invest in nutrient reduction practices within regulatory frameworks for water quality trading, 3) demonstrate how our innovations help to attract additional funding, such as private capital pay -for -performance programs and philanthropic contributions, thus accelerating the adoption of climate -smart practices. Page 4 of 20 An Innovative Approach to Climate Resiliency, Water Quality Trading, and Conservation Finance, Upper Midwest - -New - 2021 - MN Board of Water and Soil Resources -Submitted Project Affiliates: Organization Name Title of Main Contact Name of Main Contact In Kind Cash Document Name Red River Watershed Executive Director Robert L. Sip 10000.00 0.00 CIG Pledge Letter - RRWMB.docx Management Board Sauk River Watershed SRWD Scott 30000.00 55000.00 2021.07.12 -Memo -Letter of Support District Administrator Henderson Match Contribution -Sauk RWD.pdf City of Dubuque City Manager Michael C. Van Milligen 45000.00 0.00 PledgeLetter_dbq.pdf Red River Basin Executive Director Ted M. 40000.00 0.00 RRBC-NRCS pledge letter.pdf Commission Preister Freshwater TNC CIG Support Letter for The Nature Conservancy Conservation Rich Biske 10000.00 0.00 BWSR.pdf Prog. MN Board of Water and Assistant Director David Weirens 129712.82 960000.00 BWSR Pledge Letter_signed.docx Soil Resources Yellow Medicine River District Michelle Watershed District Administrator Overholser Project Narrative Information: Project Goal (150 words max) Goal 1—Develop local government and citizen capacity to identify constructable climate -smart water storage and treatment practices that provide increased climatic resiliency within three years. Construct demonstration water storage projects in Minnesota that will be used to inform the practice selection process. Goa12 —Establish regional plans that enable water quality trades to be executed within three years. Goa13 —Identify innovative financing mechanisms for implementing conservation through pay -for -performance and philanthropic models that generate credits for water quality trading programs and increase climate resiliency within 3 years. Project Objectives (400 words max) Objective 1—Climate-Smart Framework: Deliver a framework for identifying constructable climate -smart water storage and treatment practices within 1 year. Objective 2 —Water Quality Offset Framework: Deliver a framework for enabling successful water quality trades withing 1 year. Objective 3 —Advisory Panel: Organize amulti-sector advisory panel that will provide input on the overarching frameworks and final reports. Objective 4 —Pilot Feasibility Studies: Pilot the frameworks in the Red River Basin, Sauk River Watershed, Dubuque County, and Yellow Medicine Watershed to deliver feasibility studies that identify constructable opportunities for climate -smart practices and water quality trades within 2 years. Objective 5 —Demonstration Projects: Construct climate -smart structural water storage projects using information gathered and processes developed in the first four objectives; along with other previous studies on water storage placement. Objective 6 —Climate-Smart Report: Use the results of the pilot studies and the demonstration projects to deliver a scalable report on pathways for identifying constructable, climate -smart, water storage and treatment practices within 3 years. Objective 7 —Water Quality Offset Report: Use the pilot results to deliver a report on the conditions needed to enable water quality trades that are consistent with frameworks established under the Clean Water Act within three years. Objective 8 —Innovative Finance Memorandum: Deliver a memorandum that describes how private capital pay -for -performance programs and philanthropic contributions can be used to accelerate the delivery of climate -smart practices that support water management, nutrient reductions, and habitat improvements within three years. Statement of Innovation (100 words max) Page 5 of 20 An Innovative Approach to Climate Resiliency, Water Quality Trading, and Conservation Finance, Upper Midwest - -New - 2021 - MN Board of Water and Soil Resources -Submitted This project will focus on three innovations; 1) development of local government and citizen capacity to identify and build climate -smart water storage and treatment practices, 2) develop and foster interest in efficient water quality trading plans that reduce nutrient impacts to water resources and that can accelerate conservation adoption, 3) documentation of how private equity and philanthropically -based financial programs can accelerate conservation adoption, and how these financial models can be adapted and transferred to other areas. Keywords (50 words max) Climate Resiliency, Structural Practices, Water Storage and Treatment, Water Quality Trading, Innovative Finance Project Background (1,200 words max) The upper Midwest, is experiencing larger storm events which create excess runoff that damages agricultural lands and aquatic ecosystems, causes flooding, and worsening nutrient loss to water bodies. These climate driven storms are, at times, bookended with extended dry periods that can result in a single farm field experiencing crop damages from both excess water and drought within the same growing season. These climate -driven impacts require innovative conservation approaches to mitigate wet season impacts, while simultaneously exploring options to retain sufficient water to support agricultural productivity during dry seasons. Ongoing watershed planning efforts in the upper Midwest have begun to identify broad goals and opportunities for implementing climate -smart water storage and treatment practices that can address these climate -driven issues. However, there are often gaps between the broad goals and opportunities shown in watershed plans and identification of constructable conservation practices. This project will develop pathways for moving from broad water planning goals to identifying constructable opportunities for water storage and treatment practices that can manage excess flow during wet seasons and provide opportunities to retain water for agricultural production during dry seasons. In addition, we will explore how these constructable practices can be stacked with water quality treatment and habitat enhancements that enhance their benefits. Examples of successful efforts to identify and implement climate -smart water storage and treatment practices include the practices that have been constructed in Dobbins Creek Subwatershed within the Cedar River Watershed in Southeastern Minnesota (hops://www.cedarriverwd.org/capital-improvement-plan/). However, innovative approaches are needed to transfer these success stories into a scalable framework that can be applied across the upper Midwest. Watershed based approaches to planning efforts that have been completed in Minnesota (e.g. http://bwsr.state.mn.us/one-watershed-one-plan) and Iowa(https://iowawatershedapproach.org/) provide broad goals and opportunities needed to move onto defining scalable pathways for identifying constructable climate -smart water quality storage and treatment practices. Specifically, the Red River Valley of the North, the Sauk River Watershed within the Upper Mississippi Headwaters, and Dubuque County, Iowa, provide three different scales and geographies where this scalable concept can be developed. Many states in the upper Midwest are also working towards nutrient reduction goals (e.g., hops://www.pca.state.mn.us/water/nutrient-reduction-strategy, http://www.nutrientstrategy.iastate.edu/) alongside emerging Clean Water Act water quality standards (e.g., hops://www.pca.state.mn.us/sites/default/files/wq-wwprm2-15.pdf) that are creating a demand for opportunities for water quality trading. Both Minnesota (hops://www.pca.state.mn.us/water/water-quality-trading) and Iowa have developed broad frameworks and guidelines for conducting water quality trades. However, there is a gap between these broad frameworks and the identification of specific investment opportunities in conservation that can be used within regulatory settings to accomplish trades. This gap restricts the ability of interested communities and organizations to plan and evaluate investments in conservation practices that would improve nutrient management, while also generating opportunities for water quality trading. Innovative approaches are needed to demonstrate where investments can be made that are aligned with Clean Water Act regulatory requirements for water quality trading. Both Minnesota and Iowa have a handful of water quality trades that have been implemented, generally associated with pollutant discharge permitting requirements. The Environmental Trading Network identifies the trading programs in both states as "Under Development" (http://www.envtn.org/water-quality-trading/state-programs) with a few success stories. This project will deploy innovative science -based tools and planning approaches that fill the resource gaps between broad state frameworks and the identification of constructible conservation practices that can be implemented as part of water quality trading through Clean Water Act regulatory programs. In addition, climate -smart water storage and treatment practices will be given special consideration within this assessment to identify how water quality benefits can be stacked into the identified constructable practices. Whether working towards climate resiliency or deploying water quality trades, it is broadly acknowledged that there are insufficient resources available to achieve climate and water quality goals set in federal, regional, state, and local planning efforts. New and innovative sources of conservation financing, alongside traditional programs, will be needed to help close these resource gaps. As part of this effort we will document how ongoing private capital pay -for -performance programs and philanthropic contributions can contribute to climate -smart water storage and treatment practices as well as efforts to establish water quality trading. Page 6 of 20 An Innovative Approach to Climate Resiliency, Water Quality Trading, and Conservation Finance, Upper Midwest - -New - 2021 - MN Board of Water and Soil Resources -Submitted The remainder of this section provides background information on the specific geographies where our project will be completed. Red River Basin The Red River begins near Wahpeton, ND and drains much of Northwestern Minnesota, Eastern North Dakota, and Southern Manitoba, while meandering for about 450 river miles. The river passes through serval major municipalities, including Fargo/Moorhead, Grand Forks, and Winnipeg before emptying into Lake Winnipeg. Lake Winnipeg has experienced extreme eutrophication driven by nutrient -rich algae blooms resulting from excess phosphorus within the Lake. The Minnesota Nutrient Reduction Strategy establishes goals for reducing the average phosphorus load to the Lake Winnipeg Basin from the Minnesota drainage area by an estimated 1,100 metric tons per year. Apart of this ambitious goal will come from reductions in phosphorus concentrations at point source discharges, such as wastewater treatment plants. The Minnesota Pollution Control Agency has issued permits that will require many municipalities in the Minnesota part of the Red River Basin to reduce phosphorus concentrations in their wastewater discharges. Sauk River Watershed The GUS PLUS (Getchell, Unnamed and Stony Creeks) Management Unit has the highest percentage of restorable wetlands within the Sauk River Watershed. The Draft Sauk River Watershed Comprehensive Watershed Management Plan has set a 10-year water storage goal of 1,383 acre-feet of storage. The Sauk River Watershed District and its partners have already begun targeting water storage and treatment practices within the Getchell Creek portion of the management unit, utilizing a multi -sector project team approach. This multi -sector team has already identified and begun implementing conservation practices utilizing private, public, and philanthropic sources of funding. This project will build upon those efforts and provide an ideal location to test pathways for identifying constructable climate -smart water storage and treatment practices. Dubuque City and County This City of Dubuque has established a memorandum of understanding with the Iowa Department of Natural Resources to reduce nitrogen and phosphorus in wastewater discharge by 66%and 75%, respectively. The need for the reductions is driven by Clean Water Act permit compliance. Alongside this nutrient reduction effort, the city, county, and soil and water conservation district have been collaborating on efforts to implement conservation that will mitigate flood damages experienced across Dubuque County. The partners have already made substantial progress by completing watershed planning efforts that target locations and methods best suited to address water quantity and quality issues, utilizing the Agricultural Conservation Planning Framework (ACPF) and the Prioritize, Target, and Measure Application (PTMApp) This project will identify constructable climate -smart water storage and treatment practices that can be utilized for water quality offsets to the City of Dubuque's nutrient reduction requirements, while also providing opportunities to address flooding issues. It will also investigate innovative financial approaches for accelerating the implementation of identified practices. Yellow Medicine River Watershed The Yellow Medicine River Watershed Comprehensive Watershed Management Plan has set water storage goals and Page 7 of 20 An Innovative Approach to Climate Resiliency, Water Quality Trading, and Conservation Finance, Upper Midwest - -New - 2021 - MN Board of Water and Soil Resources -Submitted identified priority subwatersheds to make progress towards these goals. While partners are finding success implementing traditional, EQIP-based, conservation practices, there is a need to identify opportunities for the larger climate -smart water storage and treatment structural practices needed to achieve their water resource management goals. Outcomes &Benefits (1,200 words max) Outcome 1 —Water Quality offset report for the Red River Valley: this project will deliver a plan identifying opportunities to invest in conservation practices that can be used for water quality trading. The plan will be developed for the entire Minnesota portion of the Red River Valley and will identify how practices will benefit Lake Winnipeg in Canada. Outcome 2 —Feasibility study to identify water storage and treatment practices and opportunities for water quality trading in the GUS PLUS (Getchell, Unnamed and Stony Creeks) Management Unit of the Sauk River Watershed. These three main tributaries, particularly Stony and Unnamed Creeks, have massive stream bank failures resulting from altered hydrology, particularly wetland drainage, which increases the rate and volume of runoff into the streams and causes the stream banks to fail. This study will pinpoint constructable practices that will address climate resiliency within the Management Unit. The Sauk River Watershed District plans to continue its progress towards design, permitting, and construction of identified practices. Outcome 3: Feasibility study to identify multi -purpose water storage and treatment practices, opportunities for water quality trading, and innovative finance approaches to accelerate practice adoption in Dubuque City and County Iowa. This study will identify constructable climate -smart water storage and treatment practices upstream of the City of Dubuque that will be targeted to address damaging floods. These practices will also be assessed for their potential to be used as part of water quality trading efforts within the Iowa Nutrient Reduction Exchange and explore innovative financing pathways for implementing the identified practices. Outcome 4: Construction ofmulti-benefit climate -smart structural water storage practices in Minnesota. Locations will be selected using the methods developed in the pilot feasibility studies, supplemented by previous watershed plans and studies (due to the grant time period). These projects will serve to refine the pathways for storage selection so this work can be scaled statewide, or regionwide. The organizations selected to receive funds to construct these projects will be included in the advisory process and asked to shape the outcomes of the framework and final reports. Outcome 5: A scalable approach for identifying opportunities to invest in conservation for water quality trading. This project will provide a scalable approach that can be used to identify opportunities for water quality trading in areas where Clean Water Act regulatory authorities have established policies that enable water quality trades. Both Minnesota and Iowa have established policy frameworks for enabling water quality trades. Outcome 6: Pathways for identifying constructable climate -smart water storage and treatment practices. The feasibility study results will be used to document scalable pathways for moving from a broad watershed plan to the identification of constructable climate -smart water storage and treatment practices. The identification of these practices will include water quantity, water quality, and habitat benefits potential. Outcome 7: Utilizing Innovative Financing Mechanisms to Accelerate the Implementation of Conservation Practices: Benefit —The climate -smart water storage and treatment practices and opportunities for water quality trades identified through this project will provide immediate opportunities to implement conservation practices that improve water resource and nutrient management. The demonstration projects that are constructed will help refine the approach for identifying storage and help to develop reasonable, measurable outcomes for these practices. Once implemented, these practices and future practices will supply meaningful progress towards local, state, federal, regional, and international water resource and water quality management goals. This will include progress towards international goals, such as the reduction of phosphorus delivery to Lake Winnipeg, as well as local resource management issues, such as the reduction of phosphorus to the nutrient impaired Lake Osakis. The outcomes, once implemented, will also benefit farmers by providing financial opportunities on less productive acres to implement conservation practices, opportunities to sell water quality credits through trades, increased stability of drainage during wet seasons, and the possibility of irrigation water during dry seasons. This should provide farmers with a range of options that help support financial returns within their operations, while also finding opportunities for improved environmental outcomes. Lasting Impact —This project will deliver afirst-of--its-kind roadmap for identifying regional scale opportunities for investments in conservation practices that can be utilized for water quality trades. The results should be transferable to other basins where Clean Water Act authorities have established enabling frameworks for water quality trades. Page 8 of 20 An Innovative Approach to Climate Resiliency, Water Quality Trading, and Conservation Finance, Upper Midwest - -New - 2021 - MN Board of Water and Soil Resources -Submitted In addition, this project will lay out a pathway for going from watershed plans to the identification of constructable climate -smart water storage and treatment practices, going beyond standard EQIP practices. The pathways for identifying practices should be applicable across the nation where farmers and conservation professionals are dealing with climate -driven damaging wet and dry seasons. Audience —The audience for this project is farmers and conservation professionals as a whole (i.e., local conservation, professionals, state and federal agencies, and international partners in Canada). Farmers will have opportunities identified Page 9 of 20 An Innovative Approach to Climate Resiliency, Water Quality Trading, and Conservation Finance, Upper Midwest - -New - 2021 - MN Board of Water and Soil Resources -Submitted that may help to offset the financial impacts of damaging wet and dry seasons, as well as opportunities to implement conservation as part of water quality trades. Conservation professionals will receive scalable pathways for identifying opportunities for climate -smart water storage and treatment practices and opportunities for water quality trading. Project Design and Methods (1,200 words max) Objective 1 —Climate-Smart Framework During the 1st year of the project, a framework will be developed that lays out processes that can be followed to identify climate -smart water storage and treatment practices. This framework will systematically guide local practitioners through the process of moving from a watershed plan to establishing project goals and priority areas, utilizing a project team, and identifying sites for constructable projects. The project team process is a formal process by which stakeholders (e.g., farmers, non -profits, local agencies, state agencies, federal agencies, community members) are engaged in considering the need for climate smart water storage and treatment practices. The figure below provides an outline of this process that has already been tested in the Sauk River Watershed. The project staff team will revise this outline into a framework document that is scalable to other areas. The Advisory Group formed in Objective 3 will be engaged to review and recommend the final form of the framework (see attachment: Flowchart 1). Objective 2 —Water Quality Offset Framework Similar to Objective 1, a framework will be developed during the 1st year of the project to lay out a process for identifying investment opportunities that can be used as part of water quality trades. The process will provide a "playbook" for identifying conservation practice opportunities that could be implemented to offset permit requirements driven by the Clean Water Act. The Framework will be developed to align with guidance from Clean Water Act permitting authorities in Minnesota and Iowa, with the intent that the final report developed in Objective 6 will be scalable to other parts of the United States. The figure below outlines the process that will be used to develop the Water Quality Offset Framework. The Advisory Panel from Objective 3 will be engaged to review and provide recommendations on the structure of the final framework (see attachment: Flowchart 2) Objective 3 —Advisory Panel At the start of the project, amulti-sector advisory panel will be formed to provide feedback on the development of the frameworks in Objective 1 and Objective 2, to review the results of the feasibility study, and to provide feedback on the final project reports developed in Objective 6 and Objective 7. The Advisory Panel will be made up of representatives of local, state, and federal agencies, non -profits, science and engineering professionals, as well as farmers and community members. The purpose of the Advisory Panel will be to ensure that the project results are science -based, provide local value to communities, and are scalable to other parts of the nation. Objective 4 —Pilot Feasibility Studies Beginning in the 1 st year of the project and finishing by the end of year 2, we will conduct feasibility studies in the Red River Basin, Sauk River Watershed, Yellow Medicine Watershed and Dubuque County. The Red River Basin will be used to test the Water Quality Offset Framework, the Sauk River and Yellow Medicine Watersheds will be used to test the Climate -Smart Framework, and Dubuque City/County will be used to test both Frameworks. This will provide an independent test of each framework, as well as a combined test to see how climate -smart water storage and treatment practices can fit within a water quality offset framework. We've also chosen these geographies to represent a variety of landscapes and geopolitical settings. The pilot feasibility studies are intended to identify of conservation practices that are ready to be implemented and can be put in place to address climate resiliency issues through water storage and treatment, water quality trades through Clean Water Act permits, or a combination of both. Objective 5 —Demonstration Projects: The structural water storage projects to be constructed under BWSR's grant program will demonstrate the application of information gathered and processes developed under the first four objective, along with other previous studies on water storage placement. Projects will be developed in partnership with local entities receiving grants, so their placement is yet to be determined. However, projects will provide sites for field days, on -site training, and other educational opportunities. Local partners will be included in the Advisory Panel (Objective 3). Project results, such as changes in peak flows and water quality, will inform subsequent water storage practices and guidance. Objective 6 —Climate-Smart Report The results of the feasibility studies and the Climate -Smart Framework will be used to draft a final project report that describes the process for identifying constructable water storage and treatment practices that provide opportunities for wet season and dry season water resource management. In addition, the Climate -Smart Report will layout science -based processes for assessing how these practices can also provide water quality and habitat benefits. Objective 7 —Water Quality Offset Report The results of the feasibility studies and the Water Quality Offset Framework will be used to draft a final project report that Page 10 of 20 An Innovative Approach to Climate Resiliency, Water Quality Trading, and Conservation Finance, Upper Midwest - -New - 2021 - MN Board of Water and Soil Resources -Submitted describes how to identify opportunities to invest in conservation that can be used for water quality regulatory trades. This report will layout the process for how to identify opportunities for conservation, the range of science -based tools that can be used to assess the benefits of the conservation opportunities, and the process for implementing conservation that can be used in regulatory water quality trades. We envision that the process for identifying conservation investment opportunities in this report will also be compatible with emerging marketplaces such as the Ecosystem Services Market Consortium. Objective 8 —Innovative Finance Memorandum The Climate -Smart Report and Water Quality Offset Report will identify opportunities for constructable conservation practices. However, there are often resource shortages for implementing conservation practices. Our multi -sector project partnership will document different financial packages that can be pursued to implement conservation practices that might not fit traditional EQIP cost -share within a region. We will document pathways, focused on the investment opportunities Page 11 of 20 An Innovative Approach to Climate Resiliency, Water Quality Trading, and Conservation Finance, Upper Midwest - -New - 2021 - MN Board of Water and Soil Resources -Submitted identified in the project feasibility studies in Objective 4, for building financial packages that can provide the resources needed to implement and accelerate rates of conservation practice implementation. Specifically, we will focus on laying out pathways for pay -for -performance and philanthropic support of conservation implementation efforts. Project Deliverables/Products (400 words max) • Proof of concept feasibility studies in four different geographies. • Climate -Smart Report on the pathways for identifying constructable water storage and treatment practices. • Water Quality Offset Report on the process of identifying conservation investment opportunities that can be implemented to as part of regulatory water quality trades. • Innovative Finance Memorandum that lays out financial packages that can be used to accelerate the implementation of conservation. • Present the results of the Climate -Smart Report and feasibility studies at regional and national conferences. We plan for 2 conference presentations. • Present the results of the Water Quality Offset Report and feasibility studies at regional and national conference. We plan for two conference presentations. • Present the results of the Innovative Finance Memorandum at regional and national conferences. We plan for two conference presentations. • Develop a final project Fact Sheet at the conclusion of the project. • Host a close out webinar for all project stakeholders at the end of the project to share project results. • Host at least two field days spotlighting demonstration structural water storage projects. Geographic Location and Size of Project Area (300 words max) There are four project area locations chosen for this grant. They include the Red River Basin in the State of Minnesota, Stony and Unnamed Creek in the GUS Plus Management District within the Sauk River Watershed, the Upper and North Branch of the Yellow Medicine River, and Dubuque City and County. The Red River Basin includes around 11,315,679 acres and is mostly rural farmland. With an estimated population of 83,332 and median income of $54,764 for the region, this flat basin is largely composed of cultivated lands with several municipalities. Stony Creek and Unnamed Creek Watersheds are about 21,955 acres in size and are mostly farm and pasture lands. The area is largely rural with a few small towns, with an estimated population of 2,219 and median income of $59,527. In the Yellow Medicine watershed, the pilot area covers about 111,573 acres in the Upper and North branches of the river. This area is also mostly rural with 79% of the area being crop land and estimated population of around 11,933 and median income of $56,081. Dubuque County is bordered on the east by the Mississippi River and is made up primarily of a mixture of urban and agricultural land uses. Covering about 394,577 acres, Dubuque County is about 12%developed land use, largely within the City of Dubuque, with the majority of the rest of the county in cultivated and pastureland. Dubuque County has an estimated population of around 97,311 with a median income of around $63,031. The estimated population of the City of Dubuque is 57,882, with a median income of $54,234. Project Action Plan and Timeline (600 words max) Page 12 of 20 An Innovative Approach to Climate Resiliency, Water Quality Trading, and Conservation Finance, Upper Midwest - -New - 2021 - MN Board of Water and Soil Resources -Submitted Phase 1 —Establish Frameworks for Feasibility Studies (months 0-12) • Activity 0 —Attend in -person awardee orientation with NRCS staff (months 0-2) • Activity 1 —Form advisory groups and host project kick-off (months 0-2) • Activity 2a —Draft Climate Smart Framework (months 0-4) • Activity 2b —Draft Water Quality Offset Framework (months 0-4) • Activity 3 —Convene Advisory Committee (months 5-6) • Activity 4 (Project Milestone) —Finish draft Climate -Smart Framework (months 6-8) • Activity 5 (Project Milestone) —Finish Draft Water Quality Offset Framework (months 6-8) Phase 2 —Complete Feasibility Pilot Studies (Months 4-24) • Activity 7 —Convene project team for Red River Basin Water Quality Offset Plan and host kick-off meeting (Month 4) • Activity 8 —Conduct analysis and draft water quality offset plan for the Red River Basin (months 5-20) • Activity 9 —Convene project team to provide input on Red River Basin Water Quality Offset plan, quarterly (months 5-20) • Activity 10 (Project Milestone) —Finish Red River Basin Water Quality Offset Plan (months 21-24) • Activity 11 —Convene project team for Sauk River Climate -Smart Feasibility Study and host kick-off meeting (Month 4) • Activity 12 —Conduct analysis and draft climate -smart feasibility study for Sauk River Watershed (months 5-20) • Activity 13 —Convene project team to provide input on Climate -Smart Sauk River Watershed feasibility study, quarterly (months 5-20) • Activity 14 (Project Milestone) —Finish Climate -Smart Sauk River Watershed feasibility study (months 21-24) • Activity 15 —Convene project team for a Dubuque City/County Climate -Smart and water quality offset feasibility study and host kick-off meeting (Month 4) • Activity 16 —Conduct analysis and draft climate -smart and water quality offset feasibility study for Dubuque City/County (months 5-20) • Activity 17 —Convene project team to provide input on climate -smart and water quality offset feasibility study, quarterly (months 5-20) • Activity 18 (Project Milestone) —Finish climate -smart and water quality offset feasibility study for Dubuque City/County (months 21-24) • Activity 19 —Convene project team for a Yellow Medicine climate -smart feasibility study and host kick-off meeting (Month 4) • Activity 20 —Conduct analysis and draft climate -smart feasibility study for Yellow Medicine Watershed (months 5-20) • Activity 21 —Convene project team to provide input on climate -smart feasibility study, quarterly (months 5-20) • Activity 22 (Project Milestone) —Finish climate -smart feasibility study for Yellow Medicine Watershed (months 21-24) • Activity 23 —Attend regional and national conferences to present feasibility results (months 20-24) • Activity 24 —Review and select locations for demonstration projects (Months 12-18). Phase 3 —Complete Final Project Reports and Demonstration Projects (Months 18 — 36) • Activity 25 —Construct demonstration projects and incorporate feedback into feasibility studies. (Months 18-36) • Activity 26 —Convene advisory group to explore options for innovative conservation finance options that align with investment opportunities found in Phase 2 feasibility studies (Months 18-22) • Activity 27 —Draft memorandum on innovative approaches to financing conservation practices that includes pay -for -performance and philanthropic pathways • Activity 28 -Convene advisory groups to review the results of the feasibility studies from Phase 2 (months 20 - 24) • Activity 29 —Draft Climate -Smart Report (months 25-30) • Activity 30 —Draft Water Quality Offset Report (months 25-30) • Activity 31 —Convene advisory group to review the three final project reports (i.e., innovative finance, climate -smart, and water quality offsets; months 30-32) • Activity 32 — (Project Milestone) finalize all three project reports based upon advisory panel feedback (months 33-36) • Activity 33 —Develop project factsheet for NRCS (months 34-35) • Activity 34 —Attend regional and national conferences to present project results (months 30-36) • Activity 35 —host two field days at demonstration project sites (months 33-36) • Activity 36 — host a project close out webinar far all project partners to share project results (months 35-36) Technology Transfer (300 words max) Page 13 of 20 An Innovative Approach to Climate Resiliency, Water Quality Trading, and Conservation Finance, Upper Midwest - -New - 2021 - MN Board of Water and Soil Resources -Submitted During the project feasibility studies, producers and stakeholders will be directly involved in this project through a project team process. Producers and stakeholders will give direct input into project purpose and need, practice alternatives, and recommendations on practices to move forward towards implementation. Our intent is that this project team process that involves local producers and stakeholders will part of the innovative deliverables of this project that will be repeated in future work. After the project is complete, we plan to use the final project reports to reach broader stakeholder audiences (e.g. state and federal agencies) through our regional and national presentations outlined in our project deliverables. The demonstration projects will also be used as field visit sites. In addition, BWSR and other state agencies will use these reports as guidance for establishing future water storage and water quality trading programs and initiatives. Project Management (400 words max) BWSR will be the lead in managing the day to day operations of the project, convening technical advisory groups and project partners, tracking project deliverables and financials, coordinating education and outreach efforts, and reporting back project outcomes to USDA NRCS. BWSR will utilize existing project management protocols and processes that have been developed by BWSR to implement multi -year, multi partner efforts. BWSR staff that will be involved with this project have previous experience working with USD NRCS CIG and RCPP grant implementation and reporting. Team Qualifications (1,200 words max) Project Management Roles and Responsibilities Rita Weaver, P.E., MN BWSR, Chief Engineer. Civil Engineer with 17 years of experience of watershed modeling and water resource project design. Managed approximately 4 million dollars of FEMA grants for the State of Minnesota. Role: Project Manager Henry Van Offelen, MN BWSR, Clean Water Specialist. 30 years of experience engaging water managers, local governments, and citizens in watershed monitoring, planning, and project development. Lead staff representing MN DNR and BWSR in watershed Red River Basin project teams for 20 years. Role: Assist with project oversight and project advisor Suzanne Rhees, MN BWSR, Special Projects Coordinator. Over 30 years of contract and project management, writing, editing and report production; 11 years with the State of Minnesota; manage BWSR's interagency climate initiatives. Role: Assist with project management and report writing, editing and production Matt Drewitz, MN BWSR, Measures and Outcomes Coordinator. 20 years of contract and project management experience with the State of Minnesota regarding agricultural and water quality issues. Lead staff for Prioritize, Target and Measure Application (PTMApp), and for CIG Project Award #NR183A750008G011, "Measuring Soil Health in the Upper Midwest to Improve Water Quality" Role: Assist with project oversight and project advisor Dr. Drew Kessler, Senior Scientist, Houston Engineering, Inc. Leads HEI research activities specific to agricultural issues, with recent completion of several projects with the Minnesota Soybean Research and Promotion Council. Doctoral research focused on interrelationship between hydrology and sediment transport /stream stability issues within the Minnesota River Basin. Lead PTMApp prototype development. Role: Project technical advisor and liaison to local project affiliates Project Evaluation (1,200 words max) Page 14 of 20 An Innovative Approach to Climate Resiliency, Water Quality Trading, and Conservation Finance, Upper Midwest - -New - 2021 - MN Board of Water and Soil Resources -Submitted A range of science -based tools are available to use within the Geographic Areas Selected. Our project team will have access to different combinations of Prioritize, Target, and Measure Application (PTMApp; https://ptmapp.bwsr.state.mn.us/; Houston Engineering, Inc., 2016), the Hydrologic Simulation Program -FORTRAN (HSPF) Scenario Application Manager (SAM), and the Agricultural Conservation Planning Framework (ACPF; Tomer, et al., 2015a; Tomer, et al., 2015b) to evaluate the water quality treatment of the potential practices identified within the feasibility studies. These science -based tools will be utilized to quantify the water quality benefits that would be realized from implementing the potential practices identified in the feasibility studies and evaluate the study results. The potential habitat benefits of potential climate -smart water storage and treatment practices will be evaluated using a science -based wetland functional assessment (http://bwsr.state.mn.us/wetland-functional-assessment) that will support an evaluation of design options that can allow for multiple benefits. This functional assessment provides a method that allows for sound management decisions for establishing wetland functions (Gilbert et al., 2006). A range of hydrology and hydraulic models are available within the study regions. Houston Engineering, Inc., with financial support from the Minnesota Soybean Research and Promotion Council, developed a program on top of PTMApp data that allows for GIS based design -storm hydrology calculations to be performed (Houston Engineering Inc., 2018). This tool will be further refined and leveraged to help support analysis of opportunities for climate -smart water storage and treatment practices. In addition, this study will utilize traditional hydrology and hydraulic modeling techniques, such as HEC-HMS (https://www.heausace.army.mil/software/hec-hms/; e.g., U.S. Army Corps of Engineers, 2015) and HEC-RAS (https://www.hec.usace.army.mil/software/hec-ras/; Brunner, 1995) to evaluate the water resource management benefits of opportunities for climate -smart water storage and treatment practices that have been constructed and will be constructed from the feasibility studies. Assessment of Environmental Impact (800 words max) The project includes construction of several climate -smart water storage demonstration projects under a grant program authorized by the Minnesota Legislature. These projects will go through the State of Minnesota's required evaluation for impact to the environment. Special care will be taken to avoid impacts to groundwater resources or other environmentally sensitive areas. Declaration of Previous Conservation Innovation Grants (800 words max) BWSR is currently a partner with the University of Minnesota regarding the USDA NRCS CIG Project Award #NR183A750008G011 entitled "Measuring Soil Health in the Upper Midwest to Improve Water Quality". The University of Minnesota Water Resources Center is the overall project manager and grant holder, but BWSR is major contributor of project match, serves as a direct project advisor, and assists with project oversight. This project is currently underway. Two years of on -farm data have been collected to inform baseline expectations of soil health indicators across the state. Rainfall simulations and infiltration measurements will help to connect these indicators with climate change and water quality outcomes. An online database is under development to share this, and other regional data, with farm managers and decision -makers to inform soil health management. Though Covid-19 slowed outreach efforts, case studies and 2021 field events will help farmers and agricultural advisors meet and learn from other farmers who have experience with soil health practices (https: //mosh.umn. edu/mosh-prof ects/measuring-soil-health-upper-midwest-cig-project). Historically Underserved Narrative (800 words max) Producer Involvement (300 words max) Specific EQIP-eligible producers will be identified as part of the local feasibility studies conducted as part of Objective 4 of this project. Each local feasibility study will make use of a Project Team process that will include a range of stakeholders, including EQIP-eligible producers from within the pilot study areas. The project match funding includes easement and construction of the demonstration projects on private land. The location of these demonstration projects is expected to be on land owned by EQIP-eligible producers. These producers will be selected using previous hydrologic and hydraulic studies and the outcomes of this study to identify the locations for storage that result in the greatest benefits for water volume or flow rate reduction. References (4,000 words max) Page 15 of 20 An Innovative Approach to Climate Resiliency, Water Quality Trading, and Conservation Finance, Upper Midwest - -New - 2021 - MN Board of Water and Soil Resources -Submitted Brunner, G.W. 1995. HEC-RAS River Analysis System. Hydraulic Reference Manual. Version 1.0. US Army Corps of Engineers. Houston Engineering, Inc. 2016. (PTMAPP): Theory and Development Documentation. Available online: https://ptmapp.bwsr. state.mn.us/files/04052016_PTMA_Theory_Report.pdf Houston Engineering, Inc. 2018. Managing excess water and sustainable productive agriculture. A report for the Minnesota Soybean Research and Promotion Council. Gilbert, M.C., Whited, P.M., Clairain, E.J., and Smith R.D. 2006. A regional guidebook for applying the hydrogeomorphic approach to assessing wetland functions of prairie potholes. ERDC/EL TR-06-5. Tomer, M.D., Porter, S.A., Boomer, K.M.B., James, D.E., Kostel, J.A., Helmers, M.J., Isenhart, T.M., and McLellan, E.. 2015a. Agricultural conservation planning framework: 1. Developing multi -practice watershed planning scenarios and assessing nutrient reduction potential. J. Environ. Qual. doi: https://doi.org/10.2134/jeg2014.09.0386 Tomer, M., Boomer, K.M.B., Porter, S.A., Gelder, B.K., James, D.E., and McLellan, E.. 2015b. Agricultural conservation planning framework: 2. Classification of riparian buffer design types with application to assess and map stream corridors. J. Environ. Qual. 44: 768— 779. doi: U.S. Army Corps of Engineers. Hydrologic Modeling System (HEC-HMS) Application Guide: Version 4.0; Institute for Water Resources, Hydrologic Engineering Center: Devis, CA, USA, 2015 Page 16 of 20 An Innovative Approach to Climate Resiliency, Water Quality Trading, and Conservation Finance, Upper Midwest - -New - 2021 - MN Board of Water and Soil Resources -Submitted Budget Information Tab Funding Summary Total Federal Budget: $937,392.97 Total Non Federal Budget: $1,285,112.82 Total Project Funding: $2,222,505.79 Federal Budget Description Yearl Year2 Year3 Total Personnel $19,436.94 $19,826.32 $19,826.32 $59,089.58 Rita Weaver, PM $10,173.61 $10,377.51 $10,377.51 $30,928.63 Suzanne Rhees $9,263.33 $9,448.81 $9,448.81 $28,160.95 Fringe $11,415.35 $11,644.02 $11,644.02 $34,703.39 Fringe $11,415.35 $11,644.02 $11,644.02 $34,703.39 Travel $3,600.00 $0.00 $0.00 $3,600.00 Orientation $3,000.00 $0.00 $0.00 $3,000.00 Kick-off Meetings with $600.00 $0.00 $0.00 $600.00 Partners Contractual $205,000.00 $525,000.00 $110,000.00 $840,000.00 Red River Basin Commission $100,000.00 $300,000.00 $50,000.00 $450,000.00 Yellow Medicine Watershed $35,000.00 $90,000.00 $0.00 $125,000.00 District Sauk River Watershed $30,000.00 $55,000.00 $0.00 $85,000.00 District $20,000.00 $30,000.00 Dubuque City/County $0.00 $50,000.00 The Nature Conservancy $20,000.00 $50,000.00 $60,000.00 $130,000.00 Federal Total $239,452.29 $556,470.34 $141,470.34 $937,392.97 Non Federal Budget Page 17 of 20 An Innovative Approach to Climate Resiliency, Water Quality Trading, and Conservation Finance, Upper Midwest - -New - 2021 - MN Board of Water and Soil Resources -Submitted Description Yearl Year2 Year3 Total Personnel $26,875.75 $27,421.66 $27,421.66 $81,719.07 Rita Weaver, PM $10,173.61 $10,377.51 $10,377.51 $30,928.63 Henry Van Offelen $7,487.48 $7,637.44 $7,637.44 $22,762.36 Matt Drewitz $9,214.66 $9,406.71 $9,406.71 $28,028.08 Fringe $15,784.17 $16,104.79 $16,104.79 $47,993.75 Fringe $15,784.17 $16,104.79 $16,104.79 $47,993.75 Travel $1,800.00 $1,800.00 $1,800.00 $5,400.00 Site Visits and Field Days $1,800.00 $1,800.00 $1,800.00 $5,400.00 Contractual $50,000.00 $597,500.00 $502,500.00 $1,150,000.00 BWSR contracts with $0.00 $450,000.00 $450,000.00 $900,000.00 organizations Red River Basin Commission $10,000.00 $20,000.00 $10,000.00 $40,000.00 Sauk River Watershed $20,000.00 $40,000.00 $25,000.00 $85,000.00 District City of Dubuque $15,000.00 $20,000.00 $10,000.00 $45,000.00 Red River Watershed $2,500.00 $5,000.00 $2,500.00 $10,000.00 Management Board Vendor contract for services $0.00 $60,000.00 $0.00 $60,000.00 (PTMApp) $2,500.00 $94,459.92 $5,000.00 $10,000.00 The Nature Conservancy $2,500.00 Non Federal $642,826.45 $547,826.45 $1,285,112.82 Total Federal Budget Narrative: 1. Personnel Rita Weaver, Project Manager, 20%time, about 50%paid by Federal funds, will manage the project team and lead the project. Rita will represent the MN Board of Soil and Water Resources (BWSR) in guiding the multiple local feasibility studies to align with the broader project outcomes. Rita will also lead the development of a framework for climate -smart water storage and treatment projects as well as the development of a final project report on climate -smart water storage and treatment projects that utilizing the lessons learned from the local feasibility studies and demonstration projects. Year 1: $10,173.61 Year 2: $10,377.51 Year 3: $10,377.51 Suzanne Rhees, special projects leader, part time, about 20%paid by Federal funds, will support the execution of this project and alignment with federal contracting procedures. Year 1: $9,263.33 Year 2: $9,448.81 Year 3: $9,488.81 2. Fringe benefits 37% fringe benefits paid by Federal funds. Fringe benefits rates are 37%for agency staff. Total Fringe Benefits: Year 1: $11,415.35 Year 2: $11,644.02 Year 3: $11,644.02 3. Travel Funds are requested to support travel for NRCS Project Orientation and kick-off meetings with partners. Year 1: $3,600 4. Supplies -none 5. Contractual Five separate contractors will be used to execute this project: Contract with Red River Basin Commission ($450,000) Page 18 of 20 An Innovative Approach to Climate Resiliency, Water Quality Trading, and Conservation Finance, Upper Midwest - -New - 2021 - MN Board of Water and Soil Resources -Submitted The Red River Basin Commission will develop the water quality offset framework, conduct a pilot study for the entire red river basin to identify opportunities for water quality offsets, and develop the final project report on water quality offsets. In addition, the Red River Basin Commission will explore how climate -smart water quality storage and treatment practices fit into water quality offset opportunities. Contract with Sauk River Watershed District ($85,000) The Sauk River Watershed District will lead a local feasibility study to identify opportunities for climate -smart water storage and treatment projects within the GUS PLUS Management District. This feasibility study will align with the project framework and inform final reporting. The federal funds will cover approximately 50% of the resources needed to complete this local feasibility study. Contract with Yellow Medicine River Watershed District ($125,000) The Yellow Medicine River Watershed will lead a local feasibility study to identify opportunities for climate -smart water storage and treatment projects within Upper and North branches of the watershed. This feasibility study will align with the project framework and inform final reporting. The federal funds will cover approximately 90% of the resources needed to complete this local feasibility study. Contract with the City of Dubuque ($50,000) The City of Dubuque will lead a local feasibility study to evaluate the water quality trade potential of climate -smart water storage and treatment practices. In addition, the identified practices will be evaluated for innovative financial approaches for implementation. This feasibility study will align with the project frameworks and final reporting for climate -smart water storage and treatment, water quality trading, and innovative financing. The federal funds will cover approximately 50% of the resources needed to complete this local feasibility study. Contract with The Nature Conservancy ($130,000) The Nature Conservancy (TNC) will prepare and deliver a memorandum that describes how private capital pay -for -performance programs and philanthropic contributions can be used to accelerate the delivery of climate -smart practices that support water management, nutrient reductions, and habitat improvements within three years. TNC will coordinate this effort with its Ecosystem Services Market Consortium project underway in Minnesota and supported by USDA NRCS and many other partners. Total Contractual: Year 1: $205,000.00 Year 2: $525,00.00 Year 3: $110,00.00 6. Construction —None requested 7. Other -none 8. Indirect Costs — no indirect costs Non -Federal Budget Narrative: 1. Personnel Rita Weaver, Project Manager, 20%time, about 50%paid by Federal funds, will manage the project team and lead the project. Rita will represent the MN Board of Soil and Water Resources (BWSR) in guiding the multiple local feasibility studies to align with the broader project outcomes. Rita will also lead the development of a framework for climate -smart water storage and treatment projects as well as the development of a final project report on climate -smart water storage and treatment projects that utilizing the lessons learned from the local feasibility studies and demonstration projects. Year 1: $10,173.61 Year 2: $10,377.51 Year 3: $10,377.51 Henry Van Offelen, project specialist, part time, 100%paid by non-federal funds, will support efforts to develop aclimate-smart water storage and treatment framework. He will also serve as a connection to local feasibility efforts to align studies with the overall framework. Year 1: $7,487.48 Year 2: $7,637.44 Year 3: $7,637.44 Matt Drewitz, PTMApp lead(https://ptmapp.bwsr.state.mn.us/), part time, 100% paid by non-federal funds, will lead efforts to align hydrology and water quality tools needed to support climate smart water storage and treatment projects with Minnesota's PTMApp system. Year 1: $9,214.66 Year 2: $9,406.71 Year 3: $9,406.71 Total Personnel: Year 1: $26,875.75 Year 2: $27,416.66 Year 3: 27,416.66 2. Fringe benefits 37% fringe benefits paid by non -Federal funds. Fringe benefits rates are 37% for agency staff. Total Fringe Benefits: Year 1: $19,250 Year 2: $20,300 Year 3: $21,700 Page 19 of 20 An Innovative Approach to Climate Resiliency, Water Quality Trading, and Conservation Finance, Upper Midwest - -New - 2021 - MN Board of Water and Soil Resources -Submitted 3. Equipment -none 4. Supplies —none 5. Contractual Contract with organizations ($900,000): BWSR will be contracting with local government partnerships and organizations to implement demonstration water storage and treatment projects under a grant program authorized by the Minnesota Legislature in 2021. These demonstration projects will be aligned with the framework and feasibility studies conducted for this proposal and serve as on -the -ground proofs of concept. The awarded organizations will participate in the advisory process for this CIG project. Year 1: $0 Year 2: $450,000 Year 3: $450,000 Contract with the Red River Basin Commission ($40,000) The Red River Basin Commission is contributing staff time to lead efforts on the water quality offset framework, feasibility study in the Red River Basin, and final reporting for the water quality offset studies. Year 1: $10,000 Year 2: $20,000 Year 3: $10,000 Contract with the Sauk River Watershed District ($85,000) The Sauk River Watershed District is contributing staff time and cash to complete a local feasibility study in the Sauk River Watershed to identifying opportunities for climate -smart water storage and treatment practices. Year 1: $20,000 Year 2: $40,0000 Year 3: $25,000 Contract with the City of Dubuque ($45,000) The City of Dubuque has committed in -kind staff time to lead efforts to develop a local feasibility study within Dubuque County that evaluates conservation practice opportunities, including climate -smart water storage and treatment practices, for there potential to provide water quality trading offsets as well as innovative financing approaches for accelerating implementation of the projects. Year 1: $15,000 Year 2: $20,000 Year 3: $10,000 Contract with the Red River Watershed Management Board ($10,000) The Red River Watershed Management Board has made an initial commitment of match of $10,000 which could grow substantially depending up a Board decision on July 20, 2021. This commitment is to secure new LiDAR for the entire Minnesota portion of the Red River Basin. This foundational data will support efforts to identify opportunities for conservation practices and quantify the water quality benefits of identified practices. Year 1: $2,500 Year 2: $5,000 Year 3: $2,500 Contract with the Vendor for Services ($60,000) BWSR will use standard state procurement processes to contract a vendor to develop a hydrology module for (hops://ptmapp.bwsr.state.mn.us�. This module will be publicly available through the PTMApp system and support the planning level assessments needed to identify opportunities for climate -smart water storage and treatment practices. Year 1: $0 Year 2: $60,000 Year 3: $0 Contract with The Nature Conservancy ($10,000) The Nature Conservancy has committed in -kind staff time to serve on the Project Advisory Panel, coordinate with partners to support demonstration projects, develop new financing mechanisms and communicate results beyond the project with conservation and industry stakeholders across the Midwest. Year 1: $2,500 Year 2: 2,500 Year 3: $5,000 Total Contractual: Year 1: $50,000 Year 2: $597,500 Year 3: $502,500 6. Construction —None requested 7. Other Costs —None requested 8. Indirect Costs —None requested Page 20 of 20