Nature of Activity: New York City is implementing a pilot program to allow new or expanding wastewater treatment plants with surface water discharges to obtain offsets so as to allow new phosphorus discharges in phosphorus-restricted basins.

Environmental Problem: Eutrophication and related problems in the municipal drinking water supply reservoirs.

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

Trade Types: Point/nonpoint.

Stage of Implementation: The watershed protection agreement (which allows the offset program) was signed in January, 1997; guidance for the pilot phosphorus offset program was published in March, 1997; the rules and regulations for watershed protection (which established the program) were published in May, 1997. A maximum of three pilot projects in the East of the Hudson River Watershed, with a total volume of 150,000 gallons per day, as well as three pilots in the West of the Hudson Watershed, with a total flow of 100,000 GPD, may be included in the pilot program. Three conceptual offset plans were accepted and two are now in the final, detailed planning stages. Once implemented, these projects will serve as the basis for deciding whether to implement a permanent program.

Relation to TMDL: Phased TMDLs (i.e., with interim targets) are being developed for the East of Hudson and West of Hudson regions. The TMDLs make expansion or new discharge very difficult without an offset.

Number of Potential Participants: The pilot stage is limited to three projects on each side of the Hudson. There were five applicants from the east of the Hudson River region, three of which were accepted. One of the approvals was later revoked when the applicant failed to secure the necessary approval from the town or county to participate in the program. There were no applications from the west of the Hudson region. New York City, New York State, the U.S. EPA, eight counties, nearly 70 localities and several environmental organizations were party to the watershed protection agreement.

Trading Ratios: 3:1

Estimated Cost Savings: Unknown.

Available Written Information: The published watershed regulations, program guidance and participant selection criteria are available from NYC DEP.

Innovative Aspects: Three offsets have been allowed and two are proceeding: two retrofits of storm water controls and one street cleaning program. The NYC DEP requested conceptual rather than detailed offset proposals in the first stage of application review so as to minimize the preparation costs and encourage proposals.

Obstacles: The program was negotiated as part of a very broad agreement between New York City, New York State, U.S. EPA and dozens of localities to protect New York City’s 2,000 square mile drinking water supply watershed.

Web Sites: Lower Hudson: http://www.epa.gov/surf2/hucs/02030101/

Contact: James Benson, New York City Department of Environmental Protection. (914) 742-2034,

Jbenson@valgis.dep.nyc.ny.us.