MARKET-LIKE PAYMENT FOR WATER QUALITYSERVICES PROGRAMS OFFER OPPORTUNITIES TO IMPLEMENT LOW COST WAYS TO ADVANCE ENVIRONMENTAL RESTORATION GOALS AND TO CREATE INCENTIVES FOR LANDOWNERS AND AGRICULTURAL OPERATORS TO ALIGN ECONOMIC WITH ENVIRONMENTAL OBJECTIVES. MARKET-LIKE INCENTIVES IDEALLY CONDITION FINANICAL COMPENSATION ON THE LEVEL OF SERVICE PROVIDED RATHER THAN THE INSTALLATION OF A TECHNOLOGY OR PRACTICE. MOST AGRICULTURAL PAYMENT FOR SERVICE PROGRAMS, HOWEVER, ARE BASED ON PAYMENTS TO INSTALL AGRICULTURAL MANAGEMENT PRACTICES. PAYMENTS FOR DEMONSTRATED PERFORMANCE (PDP) (OR MEASURED LOAD REDUCTIONS), HOWEVER, ARE RARE DUE TO THE IMPLEMENTATION CHALLENGES ASSOCIATED WITH AGRICULTURE NONPOINT SOURCE DISCHARGE.THE OVERALLOBJECTIVE OF THIS PROJECTIS TO DESIGN AND EVALUATE MARKET-LIKE PAYMENT FOR SERVICE SYSTEMS THAT COMPENSATE AGRICULTURAL/RURAL LANDOWNERS FOR THE ACTUAL QUANTITY OF NITROGEN REMOVED (DIRECT MEASUREMENT) FROM AMBIENT WATERS.THE PROJECT WILLDESIGN AND TEST PDP NITROGEN REDUCTION CONTRACTS BETWEEN BUYERS OF NUTRIENT REDUCTIONS AND AGRICULTURAL LANDOWNERS FOR AN INNOVATIVE TECHNOLOGY, DENITRIFYING BIOREACTORS, TO REDUCE LEGACY NITROGEN FROM EMERGING GROUNDWATER (SPRINGS). THE PROJECT WILL DEVELOP AND EVALUATE QUANTIFICATION PROTOCOLS TO DIRECTLY MONITOR AND MEASURE NITROGEN REMOVAL AT PROJECT TEST SITES. THE PROJECT WILL DEVELOP PDP CONTRACTS THAT COMPENSATE LANDOWNERS ON OBSERVED NUTRIENT REDUCTION REMOVAL SUCCESS AND CREATEINCENTIVES TO ACTIVELY MANAGE BIOREACTORS TO MAXIMIZE REMOVAL PERFORMANCE AND LOWER COSTS. PDP INCENTIVE PROGRAMS TO ADDRESS LEGACY NUTRIENTS OFFERS A COMPELLING OPPORTUNITY TO ADVANCE THE DESIGN OF MARKET-LIKE INCENTIVE SYSTEMS, REMOVE LARGE QUANTITIES OF NITROGEN IN A SINGLE TREATMENT, INCREASE CERTAINTY IN ACHIEVEMENT OF WATER QUALITY OUTCOMES, AND PROVIDE LOW COST OPTIONS FOR POTENTIAL BUYERS OF NUTRIENT REDUCTIONS.