PENNVEST

The Pennsylvania Infrastructure Investment Authority (PENNVEST), a public agency that provides low-cost financing of sewer, stormwater, and drinking water projects throughout the Commonwealth, is in the process of developing a Nutrient Credit Trading (NCT) program to help meet Pennsylvania’s innovative Chesapeake Bay Tributary Strategy. PENNVEST will serve as a Counterparty Clearinghouse for NCT transactions to encourage the trading of nutrient credits in the Susquehanna and Potomac watersheds within Pennsylvania. PENNVEST’s overall goals are to leverage existing systems (i.e., those internal to the Commonwealth and externally hosted by third-party providers) to facilitate the NCT, minimize initial capital investment, and avoid developing an entirely new system.

PENNVEST engaged Delta to assist with the development of a Request for Proposal (RFP) for an electronic trading system. The project required research, analysis, facilitation, and development of an RFP document. Delta reviewed existing documentation on the NCT from PENNVEST and the Chicago Climate Exchange. Utilizing this analysis, Delta led facilitated sessions to identify and prioritize the necessary functionality for the NCT system:

• Business functions

• Data collection requirements

• Points of intersection (i.e., existing systems that should interface with any new product)

Additionally, Delta researched existing trading programs for both public and private utilization. Delta conducted phone interviews with providers and users of existing systems to gather additional information (e.g., pricing, service-level agreements) and best practices (e.g., what went well, what trouble areas were encountered).

Delta developed an RFP document utilizing the detailed functional and technical requirements, best practice research, and Commonwealth procurement procedures. This process helped PENNVEST rapidly streamline the RFP development and selection process.