A Summary of U.S. Effluent Trading and Offset Projects
U.S. Environmental Protection Agency, Office of Water, November, 1999
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CHESAPEAKE BAY WATERSHED NUTRIENT TRADING PROGRAM (MULTI-STATE)

Nature of Activity: The Chesapeake Bay Program Office of the U.S. EPA is developing a multi-stakeholder, multi-state, watershed-wide nutrient trading program.

Environmental Problem: Eutrophication of the Bay and tributaries.

Pollutant(s) / Pollution Type(s): Nitrogen and Phosphorus.

Trade Types: All types of trades are up for discussion.

Stage of Implementation: The program is in the early stages of discussion and planning. The Chesapeake Bay Agreement was signed in 1987 and the Tributary Strategies Agreement in 1992. A Chesapeake Bay Program workshop on trading was held in December, 1998. The target completion date for the final program is late 2000.

Relation to TMDL: Many Chesapeake Bay waters are on states’ lists of waters not meeting water quality standards and for which TMDLs must be developed (the 303(d) lists) for nutrient related impairments. A Bay-wide TMDL is under development.

Number of Potential Participants: 40 members of the Chesapeake Bay Program’s Nutrient Trading Negotiation Team, representing affected stakeholders.

Trading Ratios: All up for discussion.

Estimated Cost Savings: Will be explored.

Available Written Information: Various Chesapeake Bay Program documents, none specifically on trading.

Innovative Aspects: The effort is the most ambitious trading program thus far, in that it is a multi-state effort covering a very large watershed. The program could eventually involve inter-state and intra-basin or inter-basin trades. Developing a trading program by a negotiation process involving all affected stakeholders is itself innovative.

Obstacles: It is difficult to balance the interests of so many stakeholders and to develop a program for such a large water body.

Web Sites: Chester-Sassafras: http://www.epa.gov/surf2/hucs/02060002/

Gunpowder-Patapsco: http://www.epa.gov/surf2/hucs/02060003/

Severn: http://www.epa.gov/surf2/hucs/02060004/

Choptank: http://www.epa.gov/surf2/hucs/02060005/

Pocomoke: http://www.epa.gov/surf2/hucs/02060009/

Lynnhaven-Poquoson: http://www.epa.gov/surf2/hucs/02080108/

Western Lower Delmarva: http://www.epa.gov/surf2/hucs/02080109/

Chesapeake Bay Program: http://www.chesapeakebay.net/

Contact: Allison Wiedeman, U.S. EPA Chesapeake Bay Program Office, (410) 267-5733, wiedeman.allison@epa.gov