ME

ME
Sweat Lodge, Accokeek MD

Tuesday, September 21, 2010

Nutrient Trading is in the new Chesapeake Bay Program

Sen Benjamin Cardin (D, Md.) of the Sen. Environment and Public Works Committee introduced a bill to establish nutrient trading a system (S. 1816, “To amend the Federal Water Pollution Control Act to improve and reauthorize the Chesapeake Bay Program).”

It will establish a private market (modeled on the sulfur credits that are used to control acid rain) and will allow private contracts between say farmers, factories, municipalities, and others to take low cost conservation measures. A municipal wastewater system or factory could simply pay a farmer to make the desired reduction in nutrients if it finds that doing so is cheaper.



The amendment says:


"Facilitation of trading.--In order to attract
market participants and facilitate the cost-effective 
                achievement of water-quality goals, the Administrator 
                shall ensure that the trading program established under 
                this paragraph--
                            ``(i) includes measures to mitigate credit 
                        buyer risk;
                            ``(ii) makes use of the best available 
                        science in order to minimize uncertainty and 
                        related transaction costs to traders, including 
                        the Administrator, in consultation with the 
                        Secretary of Agriculture, supporting research 
                        and other activities that increase the 
                        scientific understanding of nonpoint nutrient 
                        pollutant loading and the ability of various 
                        structural and nonstructural alternatives to 
                        reduce the loads;
                            ``(iii) eliminates unnecessary or 
                        duplicative administrative processes; and
                            ``(iv) incorporates a permitting approach 
                        under the national pollutant discharge 
                        elimination system established under section 
                        402 that allows trading to occur without 
                        requiring the reopening or reissuance of 
                        permits to incorporate individual trades.

‘‘(vii) ensure that private contracts

between credit buyers and credit sellers

contain adequate provisions to ensure en-

forceability under applicable law;"




Ace

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