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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