Water Quality Trading Policy
In 2003, EPA issued its Water Quality Trading Policy ("policy") to provide guidance to states, interstate agencies and tribes to assist them in developing trading programs. The policy discusses Clean Water Act (CWA) requirements that are relevant to water quality trading including:
- requirements to obtain permits,
- antibacksliding provisions,
- development of water quality standards including antidegradation policy,
- NPDES permit regulations,
- total maximum daily loads (TMDLs), and
- water quality management plans.
EPA's policy supports trading of nutrients (e.g., total phosphorus, total nitrogen) and sediment load reductions. The policy recognizes the potential for environmental benefits from trading of pollutants other than nutrients and sediments but states that these trades may warrant more scrutiny.
Since the issuance of the policy, EPA has also seen a number of effective temperature trades. The policy does not support any trading activity that would cause a toxic effect, exceed a human health criterion or cause an impairment of water quality. EPA does not support trading of persistent bioaccumulative toxic pollutants at this time.