US
EPA has recently released a Water Quality Trading Policy
that promotes pollutant/nutrient/water quality trading as
a means to: 1) preserve good water quality by offsetting
new or increased discharges of pollutants to unimpaired
waters, 2) achieve earlier pollutant reductions and progress
towards water quality standards pending the development
of a TMDL for impaired waters, and 3) reduce the cost of
achieving reductions established by a Total Maximum Daily
Load (TMDL). A trading policy provides profitable opportunities
for sources with low treatment costs to reduce their loading
beyond legal requirements, generate a credit, and sell these
credits to dischargers with high treatment costs. This flexibility
produces a less expensive outcome overall while achieving
the desired environmental target. In addition to the economic
benefits, a “point-nonpoint” source trading
program also provides ancillary effects such as wetland
restoration or the implementation of management practices
that improve wildlife habitat in addition to improving water
quality.
The
goal of this project is to identify potential water quality
trading opportunities within the Raritan River Basin, New
Jersey, that are both scientifically and economically feasible
for total phosphorus. The focus of the trading opportunities
shall be in areas where TMDLs have already been prepared
or are pending. Since “point-nonpoint” trading
opportunities can potentially yield the largest economic
and wildlife habitat benefits, especially in areas where
agricultural land use is significant, this project will
focus on these opportunities. If New Jersey plans to successfully
meet its goals to improve and preserve water quality, water
quality trading will have to play a significant role in
obtaining cost-effective reductions.
For an in-depth summary of the water
quality issues, work to date, and capabilities associated
with Water Quality Trading, click
here.
Project lead:
Christopher C. Obropta
Assistant Extension Specialist, Water Resources Program
Rutgers Cooperative Research & Extension
14 College Farm Road
New Brunswick, New Jersey 08901-8551
Phone: 732-932-9800 x 6209
Fax: 732-932-8644
obropta@envsci.rutgers.edu
http://www.water.rutgers.edu
