Nature of Activity: The Wisconsin Department of Natural Resources is developing rules for a State-wide trading program. The State legislature authorized local pilot trading programs in order to study and evaluate the prospect of a broad State-wide program. There are currently three pilot programs at various stages of development. The three pilot programs are reviewed in this report: Fox-Wolf Basin, Red Cedar River and Rock River Basin.

Environmental Problem: If established, a trading program could address various water quality problems across the State.

Pollutant(s) / Pollution Type(s): The program could potentially include multiple pollutants, but the pilot programs are focusing on phosphorus.

Trade Types: Point/point, point/nonpoint and nonpoint/nonpoint are all being considered.

Stage of Implementation: The Wisconsin legislature passed Act 27 authorizing the pilots in 1997. Three pilots are now under way. Modeling and design and implementation of the trades are at different stages of completion. The goal is to have a State-wide trading program in place by the end of 2000.

Relation to TMDL: The trading pilots are taking place in advance of planned TMDLs for each of the three pilot water bodies. Modeling and monitoring efforts completed during the pilots will be used in the development of the eventual TMDLs.

Number of Potential Participants: The program would be a State-wide program. Each of the three pilot programs has established a local advisory committee consisting of a variety of stakeholders.

Trading Ratios: The trading ratios are under consideration. One of the pilots will employ a 2:1 ratio.

Estimated Cost Savings: One of the aims of the pilot programs is to determine the range of economic benefits of a trading program.

Available Written Information: Three brief pilot program reports are available from the WI DNR as part of the annual report to the Governor. A report on the Fox-Wolf Basin has recently been published by the Water Environment Research Foundation. The Wisconsin DNR’s second annual report to the Governor on the Wisconsin pilot programs was published in September, 1999.

Innovative Aspects: The State legislature passed an act authorizing pilots and provided a budget of $100,000 for supporting the pilots. The legislation specifies that there must be a local advisory committee for each pilot.

Obstacles: Unknown.

Web Sites: Wisconsin: http://www.epa.gov/surf2/states/WI/

Contact: Mary Anne Lowndes, WI DNR (608) 261-6420, lowndm@dnr.state.wi.us