EPA Unveils Water Quality Trading Policy

Mondaq Business Briefing, October, 2002

On May 15, 2002, the U.S. Environmental Protection Agency (EPA) released a proposed Water Quality Trading Policy (the policy). This new initiative may benefit a wide range of municipal and commercial parties with the opportunity to apply common-sense, lower-cost and innovative solutions to water quality problems in their regions. While the focus is on nutrients and sediment, the policy also discusses the potential for trading other pollutant reductions under certain circumstances. The EPA received comments through July 15, 2002, on this proposal.

The new policy would strengthen and expand the EPA's support for watershed-based trading set forth in the EPA's May 1996 Draft Framework for Watershed-Based Trading. EPA officials believe that most trading will occur as...