##### U.S. Geological Survey  Open-File Report 03-79  Version 1.0

### **Preliminary Preview   for a Geographic and Monitoring Program Project: A Review of Point Source–Nonpoint   Source Effluent Trading/Offset Systems in Watersheds***By*Alexander Wood   and Richard Bernknopf 

|   | **ABSTRACT**

Watershed-based trading         and offset systems are being developed to improve policy-maker’s         and regulator’s ability to assess nonpoint source impacts in watersheds         and to evaluate the efficacy of using market-incentive programs for preserving         environmental quality. An overview of the history of successful and failed         trading programs throughout the United States suggests that certain political,         economic, and scientific conditions within a temporal and spatial setting         help meet water quality standards. The current lack of spontaneous trading         among dischargers does not mean that a marketable permit trading system         is an inherently inefficient regulatory approach. Rather, its infrequent         use is the result of institutional and informational barriers. Improving         and refining the earth science information and technologies may help determine         whether trading is a suitable policy for improving water quality. However,         it is debatable whether or not environmental information is the limiting         factor. This paper reviews additional factors affecting the potential         for instituting a trading policy.

        The motivation for investigating and reviewing the history of offsets         and trading was inspired by a project in the preliminary stages being         developed by U.S. Geological Survey Western Geographic Science Center         and the Environmental Protection Agency Region IX. An offset feasibility         study will be an integrated, map-based approach that incorporates environmental,         economic, and statistical information to investigate the potential for         using offsets to meet mercury Total Maximum Daily Loads in the Sacramento         River watershed. A regional water-quality offset program is being studied         that may help known point sources reduce mercury loading more cost effectively         by the remediation of abandoned mines or other diffuse sources as opposed         to more costly treatment at their own sites. An efficient offset program         requires both a scientific basis and methods to translate that science         into a regulatory decision framework. |   |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

Download   this report as a single PDF file (406 KB)

Download   free PDF Reader software and to learn more about Adobe Acrobat Reader 

Download   a Microsoft Word version of the report (299 KB)

For questions about the   scientific content of this report, contact Alexander   Wood 

----

 This report   is only available on the web

----

[an error occurred while processing this directive]